10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

Or

¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to _______________

Commission File No. 001-35621

GLOBUS MEDICAL, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	04-3744954
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2560 General Armistead Avenue, Audubon, PA 19403	(610) 930-1800
(Address of principal executive offices) (Zip Code)	(Registrant’s telephone number, including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:

Yes x   No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files):

Yes x   No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company (as defined in Rule 12b-2 of the Exchange Act):

Large Accelerated Filer   x	Accelerated Filer   ¨
Non-accelerated Filer  ¨ (Do not check if a smaller reporting company)	Smaller Reporting Company  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

 Yes ¨  No x

The number of shares outstanding of the issuer’s common stock (par value $0.001 per share) as of April 20, 2015 was 94,908,608shares.

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets
	March 31, 2015 (Unaudited) and December 31, 2014	3
	Consolidated Statements of Income (Unaudited)
	Three months ended March 31, 2015 and March 31, 2014	4
	Consolidated Statements of Comprehensive Income (Unaudited)
	Three months ended March 31, 2015 and March 31, 2014	5
	Consolidated Statements of Cash Flows (Unaudited)
	Three months ended March 31, 2015 and March 31, 2014	6
	Notes to Consolidated Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29
PART II.	OTHER INFORMATION	31
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	31
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	32
	SIGNATURES	33
	Exhibit Index	34

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)	March 31, 2015			December 31, 2014
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	75,006		$	82,265
Restricted cash	23,370			23,370
Short-term marketable securities	138,274			146,439
Accounts receivable, net of allowances of $1,567 and $1,647, respectively	73,174			75,430
Inventories	98,947			90,945
Prepaid expenses and other current assets	5,054			5,742
Income taxes receivable	529			5,772
Deferred income taxes	41,341			40,062
Total current assets	455,695			470,025
Property and equipment, net of accumulated depreciation of $123,430 and $118,544, respectively	87,916			69,475
Long-term marketable securities	71,513			75,347
Intangible assets, net	34,342			34,529
Goodwill	93,573			53,196
Other assets	1,090			975
Total assets	$	744,129		$	703,547
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	19,384		$	15,904
Accounts payable to related-party	—			5,359
Accrued expenses	57,817			61,499
Income taxes payable	9,557			569
Business acquisition liabilities, current	6,553			6,081
Total current liabilities	93,311			89,412
Business acquisition liabilities, net of current portion	25,802			20,195
Deferred income taxes	7,520			5,166
Other liabilities	3,332			3,320
Total liabilities	129,965			118,093
Commitments and contingencies (Note 12)
Equity:
Class A common stock; $0.001 par value. Authorized 500,000 shares; issued and outstanding 71,022 and 70,828 shares at March 31, 2015 and December 31, 2014, respectively	71			71
Class B common stock; $0.001 par value. Authorized 275,000 shares; issued and outstanding 23,878 at March 31, 2015 and December 31, 2014, respectively	24			24
Additional paid-in capital	179,482			175,242
Accumulated other comprehensive loss	(1,835		)	(1,657		)
Retained earnings	436,422			411,774
Total equity	614,164			585,454
Total liabilities and equity	$	744,129		$	703,547

See accompanying notes to consolidated financial statements.

3

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended
(In thousands, except per share amounts)	March 31, 2015			March 31, 2014
Sales	$	131,604		$	114,210
Cost of goods sold	32,107			25,312
Gross profit	99,497			88,898
Operating expenses:
Research and development	8,656			7,443
Selling, general and administrative	52,289			46,678
Provision for litigation	32			2,535
Total operating expenses	60,977			56,656
Operating income	38,520			32,242
Other income/(expense), net
Interest income, net	278			201
Foreign currency transaction loss	(677		)	(30		)
Other income	52			74
Total other income/(expense), net	(347		)	245
Income before income taxes	38,173			32,487
Income tax provision	13,525			11,348
Net income	$	24,648		$	21,139
Earnings per share:
Basic	$	0.26		$	0.23
Diluted	$	0.26		$	0.22
Weighted average shares outstanding:
Basic	94,788			93,715
Dilutive stock options	1,117			1,457
Diluted	95,905			95,172
Anti-dilutive stock equivalents excluded from weighted average calculation	2,721			1,235

See accompanying notes to consolidated financial statements.

4

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended
(In thousands)	March 31, 2015			March 31, 2014
Net income	$	24,648		$	21,139
Other comprehensive income/(loss):
Unrealized gain on marketable securities, net of tax	65			1
Foreign currency translation loss	(243		)	(3		)
Total other comprehensive loss	(178		)	(2		)
Comprehensive income	$	24,470		$	21,137

See accompanying notes to consolidated financial statements.

5

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended
(In thousands)	March 31, 2015			March 31, 2014
Cash flows from operating activities:
Net income	$	24,648		$	21,139
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,674			5,297
Amortization of premium on marketable securities	640			801
Provision for excess and obsolete inventories	2,529			1,813
Stock-based compensation	2,131			1,927
Allowance for doubtful accounts	47			89
Change in deferred income taxes	(2,217		)	(2,415		)
(Increase)/decrease in:
Accounts receivable	1,888			(812		)
Inventories	(7,361		)	(3,993		)
Prepaid expenses and other assets	896			(562		)
Increase/(decrease) in:
Accounts payable	835			(1,096		)
Accounts payable to related-party	(5,359		)	1,184
Accrued expenses and other liabilities	(3,904		)	(2,015		)
Income taxes payable/receivable	14,223			7,875
Net cash provided by operating activities	34,670			29,232
Cash flows from investing activities:
Purchases of marketable securities	(72,874		)	(75,343		)
Maturities of marketable securities	64,574			46,250
Sales of marketable securities	19,764			14,280
Purchases of property and equipment	(7,228		)	(6,164		)
Acquisition of businesses, net of cash acquired	(48,015		)	—
Net cash used in investing activities	(43,779		)	(20,977		)
Cash flows from financing activities:
Payment of business acquisition liabilities	(300		)	(200		)
Proceeds from issuance of common stock	1,425			3,855
Excess tax benefit related to nonqualified stock options	684			2,786
Net cash provided by financing activities	1,809			6,441
Effect of foreign exchange rate on cash	41			(56		)
Net increase/(decrease) in cash and cash equivalents	(7,259		)	14,640
Cash and cash equivalents, beginning of period	82,265			89,962
Cash and cash equivalents, end of period	$	75,006		$	104,602
Supplemental disclosures of cash flow information:
Interest paid	—			13
Income taxes paid	$	509		$	3,168

See accompanying notes to consolidated financial statements.

6

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) The Company

Globus Medical, Inc., together with its subsidiaries, is a medical device company focused on the design, development and commercialization of musculoskeletal implants. We are currently focused on implants that promote healing in patients with spine disorders. We are an engineering-driven company with a history of rapidly developing and commercializing advanced products and procedures that assist surgeons in effectively treating their patients, respond to evolving surgeon needs and address new treatment options. Since our inception in 2003, we have launched over 130 products and offer a product portfolio addressing a broad array of spinal pathologies.

We are headquartered in Audubon, Pennsylvania, and market and sell our products through our exclusive sales force in the United States, as well as within North, Central & South America, Europe, Asia, Africa and Australia. Our sales force consists of direct sales representatives and distributor sales representatives employed by exclusive independent distributors.

The terms “the Company,” “Globus,” “we,” “us” and “our” refer to Globus Medical, Inc. and, where applicable, our consolidated subsidiaries.

(b) Basis of Presentation

The accompanying interim unaudited condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in complete financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2014.

In the opinion of management, the statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of our financial position and of the results for the three-month periods presented. The results of operations for any interim period are not indicative of results for the full year. Certain reclassifications have been made to prior period statements to conform to the current year presentation.

(c) Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Globus and its wholly-owned subsidiaries. Our consolidation policy requires the consolidation of entities where a controlling financial interest is held. All intercompany balances and transactions are eliminated in consolidation.

(d) Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates, in part, on

7

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

historical experience that management believes to be reasonable under the circumstances. Actual results could differ materially from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary.

Significant areas that require management’s estimates include intangible assets, contingent payment liabilities, allowance for doubtful accounts, stock-based compensation, provision for excess and obsolete inventory, useful lives of assets, the outcome of litigation, and income taxes. We are subject to risks and uncertainties due to changes in the healthcare environment, regulatory oversight, competition, and legislation that may cause actual results to differ from estimated results.

(e) Restricted Cash

In December 2014, we set aside $23.4 million in cash for the payment of a portion of the Synthes and Bianco litigations. We classified this cash as restricted, as the amount was placed in escrow to be used for payment of the litigation obligations, should we not be successful with our appeals. See “Note 12. Commitments and Contingencies” below for more details regarding these litigations.

(f) Marketable Securities

Our marketable securities include municipal bonds, corporate debt securities, commercial paper, securities of U.S. government-sponsored agencies and asset-backed securities, and are classified as available-for-sale as of March 31, 2015. Available-for-sale securities are recorded at fair value in both short-term and long-term marketable securities on our consolidated balance sheets. The change in fair value for available-for-sale securities is recorded, net of taxes, as a component of accumulated other comprehensive income on our consolidated balance sheets. Premiums and discounts are recognized over the life of the related security as an adjustment to yield using the straight-line method. Realized gains or losses from the sale of our marketable securities are determined on a specific identification basis. Realized gains and losses, along with interest income and the amortization/accretion of premiums/discounts are included as a component of other income, net, on our consolidated statements of income. Interest receivable is recorded as a component of prepaid expenses and other current assets on our consolidated balance sheets.

We maintain a portfolio of various holdings, types and maturities, though most of the securities in our portfolio could be liquidated at minimal cost at any time. We invest in securities that meet or exceed standards as defined in our investment policy. Our policy also limits the amount of credit exposure to any one issue, issuer or type of security. We review our securities for other-than-temporary impairment at each reporting period. If an unrealized loss for any security is considered to be other-than-temporary, the loss will be recognized in our consolidated statement of income in the period the determination is made.

(g) Inventories

Inventories are stated at the lower of cost or market. Cost is determined on a first-in, first-out basis. The majority of our inventories are finished goods as we mainly utilize third-party suppliers to source our products. We periodically evaluate the carrying value of our inventories in relation to our estimated forecast of product demand, which takes into consideration the estimated life cycle of product releases. When quantities on hand exceed estimated sales forecasts, we record a reserve for such excess inventories.

8

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(h) Revenue Recognition

Revenue is recognized when persuasive evidence of an arrangement exists, product delivery has occurred, pricing is fixed or determinable, and collection is reasonably assured. A significant portion of our revenue is generated from consigned inventory maintained at hospitals or with sales representatives. For these products, revenue is recognized at the time the product is used or implanted. For all other transactions, we recognize revenue when title to the goods and risk of loss transfer to customers, provided there are no remaining performance obligations that will affect the customer’s final acceptance of the sale. Our policy is to classify shipping and handling costs billed to customers as sales and the related expenses as cost of goods sold.

NOTE 2. ACQUISITIONS

On February 25, 2015, we entered into an agreement to acquire Branch Medical Group, Inc. (“BMG”), a related-party manufacturer of high precision medical devices located in Audubon, PA. We closed this acquisition on March 11, 2015, for $57.0 million in cash, $5.3 million in deferred consideration, and an estimated $0.9 million payable upon finalization of closing adjustments. The amount payable to BMG on the date of acquisition of $5.2 million was also settled in connection with the acquisition.

As previously disclosed in our definitive proxy statement, BMG had been a related-party supplier since 2005. As of February 24, 2015, David C. Paul's wife, David D. Davidar's wife, and David M. Demski collectively owned approximately 49% of the outstanding stock of BMG. In addition, since February 2010, Mr. Paul's wife and Mr. Davidar's wife had served as directors of BMG. Prior to the acquisition, we purchased products and services from BMG pursuant to a standard Supplier Quality Agreement entered into in September 2010.

We accounted for the acquisition under the purchase method of accounting, and as a result, recorded preliminary goodwill of $40.6 million. The results of operations of BMG have been included in our results of operations from the date of acquisition. Amounts recognized for assets acquired and liabilities assumed are based on preliminary purchase price allocations and on certain management judgments. These preliminary allocations are based on an analysis of the estimated fair values of assets acquired and liabilities assumed, including identifiable tangible assets, and estimates of the useful lives of tangible assets. The final purchase price allocations will be completed after we finalize our third-party appraisal, review all available data, and complete our own internal assessments. We expect to complete our final purchase price allocations by the end of June 2015. Any additional adjustments resulting from finalization of the purchase price allocations for BMG will affect the amount assigned to goodwill. The goodwill from this acquisition is not deductible for tax purposes.

9

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

As of March 31, 2015, we recorded the following purchase price allocation for the identifiable tangible and intangible assets and liabilities of BMG:

(In thousands)
Consideration:
Cash paid at closing	$	57,042
Deferred consideration	5,290
Estimated closing adjustments payable	948
Fair value of consideration	$	63,280
Identifiable assets acquired and liabilities assumed:
Cash acquired	$	9,027
Accounts receivable	88
Inventory	3,156
Other assets	444
Property and equipment	14,862
Accounts payable and accrued expenses	(1,581		)
Deferred tax liability, net	(3,293		)
Total identifiable net assets	22,703
Goodwill	40,577
Total allocated purchase price	$	63,280

The following unaudited pro forma information is based on historical data, and gives effect to our acquisition of BMG as if the acquisition had occurred on January 1, 2014. These unaudited pro forma results include adjustments having a continuing impact on our consolidated statements of income. These adjustments consist of: elimination of intercompany sales/purchase transactions and the related profit, adjustments to depreciation for the fair value and depreciable lives of property and equipment, adjustments in the capitalization of overhead costs and adjustments to tax expense based on consolidated pro forma results. These results have been prepared using assumptions our management believes are reasonable, are not necessarily indicative of the actual results that would have occurred if the acquisition had occurred on January 1, 2014, and are not necessarily indicative of the results that may be achieved in the future, including but not limited to operating synergies that we may realize as a result of the acquisition.

	Three Months Ended
(In thousands)	March 31, 2015		March 31, 2014
	(unaudited pro forma)
Net sales	$	131,702	$	114,314
Net income	24,608		21,105
Earnings per share:
Basic	$	0.26	$	0.23
Diluted	$	0.26	$	0.22

10

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

On October 23, 2014, we entered into an equity interest purchase agreement with Transplant Technologies of Texas, Ltd. (“TTOT”), an allograft tissue processor located in San Antonio, Texas, pursuant to which we acquired 100% of the equity interests for $36.1 million. In addition to the initial purchase price, we may be obligated to make milestone payments of up to $15.0 million over the next three years based primarily on sales thresholds from the product lines we acquired. We accounted for the acquisition under the purchase method of accounting in the fourth quarter of 2014. We completed our final purchase price allocation during March 2015 and the final purchase price adjustments subsequent to December 31, 2014 were not material.

NOTE 3. INTANGIBLE ASSETS

A summary of intangible assets is presented below:

		March 31, 2015
(In thousands)	Weighted Average Amortization Period (in years)	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, net
In-process research & development	—	$	24,560	$	—		$	24,560
Supplier network	10.0	4,000		(167		)	3,833
Customer relationships & other intangibles	7.3	5,525		(1,616		)	3,909
Patents	17.0	2,420		(380		)	2,040
Total intangible assets		$	36,505	$	(2,163	)	$	34,342

		December 31, 2014
(In thousands)	Weighted Average Amortization Period (in years)	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, net
In-process research & development	—	$	24,560	$	—		$	24,560
Supplier network	10.0	3,800		(88		)	3,712
Customer relationships & other intangibles	7.3	5,525		(1,344		)	4,181
Patents	17.0	2,420		(344		)	2,076
Total intangible assets		$	36,305	$	(1,776	)	$	34,529

11

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

NOTE 4. MARKETABLE SECURITIES

The composition of our short-term and long-term marketable securities is as follows:

		March 31, 2015
(In thousands)	Contractual Maturity (in years)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term:
Municipal bonds	Less than 1	$	38,065	$	6	$	(11	)	$	38,060
Corporate debt securities	Less than 1	57,622		18		(13		)	57,627
Commercial paper	Less than 1	37,420		9		—			37,429
Securities of U.S. government-sponsored agencies	Less than 1	2,999		1		—			3,000
Asset-backed securities	Less than 1	2,159		—		(1		)	2,158
Total short-term marketable securities		$	138,265	$	34	$	(25	)	$	138,274
Long-term:
Municipal bonds	1-2	$	27,150	$	4	$	(35	)	$	27,119
Corporate debt securities	1-2	16,863		13		(2		)	16,874
Asset-backed securities	1-2	19,921		9		(3		)	19,927
Securities of U.S. government-sponsored agencies	1-2	7,586		7		—			7,593
Total long-term marketable securities		$	71,520	$	33	$	(40	)	$	71,513

		December 31, 2014
(In thousands)	Contractual Maturity (in years)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term:
Municipal bonds	Less than 1	$	28,684	$	2	$	(3	)	$	28,683
Corporate debt securities	Less than 1	73,066		7		(42		)	73,031
Commercial paper	Less than 1	44,663		8		—			44,671
Asset-backed securities	Less than 1	54		—		—			54
Total short-term marketable securities		$	146,467	$	17	$	(45	)	$	146,439
Long-term:
Municipal bonds	1-2	$	26,005	$	3	$	(36	)	$	25,972
Corporate debt securities	1-2	19,617		3		(22		)	19,598
Asset-backed securities	1-2	21,236		1		(8		)	21,229
Securities of U.S. government-sponsored agencies	1-2	8,564		—		(16		)	8,548
Total long-term marketable securities		$	75,422	$	7	$	(82	)	$	75,347

NOTE 5. FAIR VALUE MEASUREMENTS

Under the accounting for fair value measurements and disclosures, fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most

12

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

advantageous market for the asset or the liability in an orderly transaction between market participants on the measurement date. Additionally, a fair value hierarchy was established that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Our assets and liabilities measured at fair value on a recurring basis are classified and disclosed in one of the following three categories:

Level 1—quoted prices (unadjusted) in active markets for identical assets and liabilities;

Level 2—observable inputs other than quoted prices in active markets for identical assets and liabilities; and

Level 3—unobservable inputs in which there is little or no market data available, which require the reporting entity to use significant unobservable inputs or valuation techniques.

The fair value of our assets and liabilities measured at fair value on a recurring basis was as follows:

	Balance at
(In thousands)	March 31, 2015		Level 1		Level 2		Level 3
Assets
Cash equivalents	$	12,475	$	375	$	12,100	$	—
Municipal bonds	65,179		—		65,179		—
Corporate debt securities	74,501		—		74,501		—
Commercial paper	37,429		—		37,429		—
Asset-backed securities	22,085		—		22,085		—
Securities of U.S. government-sponsored agencies	10,593		—		10,593		—
Liabilities
Contingent consideration	24,843		—		—		24,843

	Balance at
(In thousands)	December 31, 2014		Level 1		Level 2		Level 3
Assets
Cash equivalents	$	9,802	$	1,302	$	8,500	$	—
Municipal bonds	54,655		—		54,655		—
Corporate debt securities	92,629		—		92,629		—
Commercial paper	44,671		—		44,671		—
Asset-backed securities	21,283		—		21,283		—
Securities of U.S. government-sponsored agencies	8,548		—		8,548		—
Liabilities
Contingent consideration	24,335		—		—		24,335

13

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Contingent consideration represents our contingent milestone, performance and revenue-sharing payment obligations related to our acquisitions and is measured at fair value, based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The valuation of contingent consideration uses assumptions we believe would be made by a market participant. We assess these estimates on an ongoing basis as additional data impacting the assumptions is obtained. Changes in the fair value of contingent consideration related to updated assumptions and estimates are recognized within research and development and selling, general and administrative expenses in the consolidated statements of income.

NOTE 6. INVENTORIES

(In thousands)	March 31, 2015		December 31, 2014
Raw materials	$	10,514	$	8,847
Work in process	5,452		2,490
Finished goods	82,981		79,608
Total inventories	$	98,947	$	90,945

NOTE 7. ACCRUED EXPENSES

(In thousands)	March 31, 2015		December 31, 2014
Compensation and other employee-related costs	$	14,756	$	19,933
Legal and other settlements and expenses	27,042		27,686
Accrued non-income taxes	5,236		4,720
Other	10,783		9,160
Total accrued expenses	$	57,817	$	61,499

NOTE 8. DEBT

Line of Credit

In May 2011, we entered into a credit agreement with Wells Fargo Bank related to a revolving credit facility that provided for borrowings up to $50.0 million. At our request, and with the approval of the bank, the amount of borrowings available under the revolving credit facility can be increased to $75.0 million. The revolving credit facility includes up to a $25.0 million sub-limit for letters of credit. Cash advances bear interest at our option either at a fluctuating rate per annum equal to the daily LIBOR in effect for a one-month period plus 0.75%, or a fixed rate for a one- or three-month period equal to LIBOR plus 0.75%. The credit agreement governing the revolving credit facility also subjects us to various restrictive covenants, including the requirement to maintain maximum consolidated leverage. The covenants also include limitations on our ability to repurchase shares, to pay cash dividends or to enter into a sale transaction. As of March 31, 2015, we were in compliance with all covenants under the credit agreement, there were no outstanding borrowings under the revolving credit facility and available borrowings were $50.0 million. We may terminate the credit agreement at any time on ten days’ notice without premium or penalty.

Subsequent to March 31, 2015, we amended the above credit agreement with Wells Fargo Bank, extending the term of the revolving credit facility from May 2015 to May 2016. No other terms were modified.

14

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

NOTE 9. EQUITY

Our amended and restated Certificate of Incorporation provides for a total of 785,000,000 authorized shares of common stock. Of the authorized number of shares of common stock, 500,000,000 shares are designated as Class A common stock (“Class A Common”), 275,000,000 shares are designated as Class B common stock (“Class B Common”) and 10,000,000 shares are designated as Class C common stock (“Class C Common”).

Our issued and outstanding common shares by Class were as follows:

(Shares)	Class A Common	Class B Common	Total
March 31, 2015	71,022,427	23,877,556	94,899,983
December 31, 2014	70,828,187	23,877,556	94,705,743

The following table summarizes changes in total equity:

	Three Months Ended
(In thousands)	March 31, 2015
Total equity, beginning of period	$	585,454
Net income	24,648
Stock-based compensation	2,131
Exercise of stock options	1,425
Excess tax benefit of nonqualified stock options	684
Other comprehensive loss	(178		)
Total equity, end of period	$	614,164

The tables below present the changes in each component of accumulated other comprehensive income/(loss), including current period other comprehensive income/(loss) and reclassifications out of accumulated other comprehensive income/(loss):

(In thousands)	Unrealized gain/(loss) on marketable securities, net of tax			Foreign currency translation adjustments			Accumulated other comprehensive loss
Accumulated other comprehensive loss, net of tax, at December 31, 2014	$	(64	)	$	(1,593	)	$	(1,657	)
Other comprehensive income/(loss) before reclassifications	64			(243		)	(179		)
Amounts reclassified from accumulated other comprehensive income, net of tax	1			—			1
Other comprehensive income/(loss), net of tax	65			(243		)	(178		)
Accumulated other comprehensive income/(loss), net of tax, at March 31, 2015	$	1		$	(1,836	)	$	(1,835	)

15

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(In thousands)	Unrealized gain/(loss) on marketable securities, net of tax			Foreign currency translation adjustments			Accumulated other comprehensive loss
Accumulated other comprehensive income/(loss), net of tax, at December 31, 2013	$	32		$	(1,041	)	$	(1,009	)
Other comprehensive loss before reclassifications	(5		)	(3		)	(8		)
Amounts reclassified from accumulated other comprehensive loss, net of tax	6			—			6
Other comprehensive income/(loss), net of tax	1			(3		)	(2		)
Accumulated other comprehensive income/(loss), net of tax, at March 31, 2014	$	33		$	(1,044	)	$	(1,011	)

NOTE 10. STOCK-BASED COMPENSATION

We have three stock plans: our Amended and Restated 2003 Stock Plan, our 2008 Stock Plan, and our 2012 Equity Incentive Plan (the “2012 Plan”).  The 2012 Plan is the only remaining active stock plan. The purpose of these stock plans was, and the 2012 Plan is, to provide incentive to employees, directors, and consultants of Globus.  The Plans are administered by the Board of Directors of Globus (the “Board”) or its delegates. The number, type of option, exercise price, and vesting terms are determined by the Board or its delegates in accordance with the terms of the Plans. The options granted expire on a date specified by the Board, but generally not more than ten years from the grant date. Option grants to employees generally vest in varying installments over a four-year period.

The 2012 Plan was approved by our Board in March 2012, and by our stockholders in June 2012. Under the 2012 Plan, the aggregate number of shares of Class A Common stock that may be issued subject to options and other awards is equal to the sum of (i) 3,076,923 shares, (ii) any shares available for issuance under the 2008 Plan as of March 13, 2012, (iii) any shares underlying awards outstanding under the 2008 Plan as of March 13, 2012 that, on or after that date, are forfeited, terminated, expired or lapse for any reason, or are settled for cash without delivery of shares and (iv) starting January 1, 2013, an annual increase in the number of shares available under the 2012 Plan equal to up to 3% of the number of shares of our common and preferred stock outstanding at the end of the previous year, as determined by our Board. The number of shares that may be issued or transferred pursuant to incentive stock options under the 2012 Plan is limited to 10,769,230 shares. The shares of Class A Common stock covered by the 2012 Plan are authorized but unissued shares, treasury shares or shares of common stock purchased on the open market.

As of March 31, 2015, there were 4,958,899 shares of Class A Common stock available for future grants under the 2012 Plan.

The weighted average grant date per share fair values of the options awarded to employees were as follows:

	Three Months Ended
	March 31, 2015		March 31, 2014
Weighted average grant date per share fair value	$	9.42	$	10.34

16

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

Stock option activity during the three months ended March 31, 2015 is summarized as follows:  

	Option Shares(thousands)		Weighted average exercise price		Weighted average remaining contractual life (years)	Aggregate intrinsic value (thousands)
Outstanding at December 31, 2014	4,854		$	14.50
Granted	1,159		23.98
Exercised	(194	)	7.34
Forfeited	(98	)	16.23
Outstanding at March 31, 2015	5,721		$	16.63	7.6	$	49,236
Exercisable at March 31, 2015	2,569		$	10.77	5.7	$	37,164
Expected to vest at March 31, 2015	3,152		$	21.41	9.1	$	12,073

Compensation expense related to stock options granted to employees and non-employees under our stock plans and the intrinsic value of stock options exercised was as follows:

	Three Months Ended
(In thousands)	March 31, 2015		March 31, 2014
Compensation expense related to stock options	$	2,131	$	1,927
Intrinsic value of stock options exercised	3,260		11,283

As of March 31, 2015, there was $24.2 million of unrecognized compensation expense related to unvested employee stock options that are expected to vest over a weighted average period of three years.

NOTE 11. INCOME TAXES

In computing our income tax provision, we make certain estimates and management judgments, such as estimated annual taxable income or loss, annual effective tax rate, the nature and timing of permanent and temporary differences between taxable income for financial reporting and tax reporting, and the recoverability of deferred tax assets. Our estimates and assumptions may change as new events occur, additional information is obtained, or as the tax environment changes. Should facts and circumstances change during a quarter causing a material change to the estimated effective income tax rate, a cumulative adjustment is recorded.

	Three Months Ended
	March 31, 2015		March 31, 2014
Effective income tax rate	35.4	%	34.9	%

The nominal change in the effective income tax rate between the current year and prior year periods is due primarily to changes in the components of taxable income.

NOTE 12. COMMITMENTS AND CONTINGENCIES

We are involved in a number of proceedings, legal actions, and claims. Such matters are subject to many uncertainties, and the outcomes of these matters are not within our control and may not be known for prolonged periods of time. In some actions, the claimants seek damages, as well as other relief, including injunctions prohibiting us from engaging in certain activities, which, if granted, could require significant

17

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

expenditures and/or result in lost revenues. We record a liability in the consolidated financial statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. While it is not possible to predict the outcome for most of the matters discussed, we believe it is possible that costs associated with them could have a material adverse impact on our consolidated earnings, financial position or cash flows.

N-Spine, Synthes and DePuy Synthes Litigation

In April 2010, N-Spine, Inc. and Synthes USA Sales, LLC filed suit against us in the U.S. District Court for the District of Delaware for patent infringement. N-Spine, the patent owner, and Synthes USA, a licensee of the subject patent, allege that we infringe one or more claims of the patent by making, using, offering for sale or selling our TRANSITION^® stabilization system product. N-Spine and Synthes USA seek injunctive relief and an unspecified amount in damages. We intend to defend our rights vigorously. This matter was stayed on July 14, 2011 pending the resolution of an inter partes reexamination on the asserted patent granted by the U.S. Patent and Trademark Office (“USPTO”) in February 2011. In December 2011, the examiner withdrew the original grounds of rejection of the asserted patent and we have appealed the examiner’s decision. In January 2014, the USPTO ruled on the appeal finding certain claims rejected in view of the prior art and affirming certain other claims. The probable outcome of this litigation cannot be determined, nor can we estimate a range of potential loss. Therefore, in accordance with authoritative guidance on the evaluation of loss contingencies, we have not recorded an accrual related to this litigation.

In a related matter, on January 8, 2014, Depuy Synthes Products, LLC (“Depuy Synthes”) filed suit against us in the U.S. District Court for the District of Delaware for patent infringement. Depuy Synthes alleges that we infringe one or more claims of the asserted patent by making, using, offering for sale or selling our TRANSITION^® stabilization system product. Depuy Synthes seeks injunctive relief and an unspecified amount in damages. We intend to defend our rights vigorously. The probable outcome of this litigation cannot be determined, nor can we estimate a range of potential loss. Therefore, in accordance with authoritative guidance on the evaluation of loss contingencies, we have not recorded an accrual related to this litigation.

Synthes USA, LLC, Synthes USA Products, LLC and Synthes USA Sales, LLC Litigation

In July 2011, Synthes USA, LLC, Synthes USA Products, LLC and Synthes USA Sales, LLC filed suit against us in the U.S. District Court for the District of Delaware for patent infringement. Synthes USA LLC, the patent owner, Synthes USA Products, LLC, a licensee to manufacture products of the subject patents, and Synthes USA Sales LLC, a licensee to sell products of the subject patents, allege that we infringed one or more claims of three patents by making, using, offering for sale or selling our COALITION^®, INDEPENDENCE^® and INTERCONTINENTAL^® products. As a result of the acquisition of Synthes, Inc. by Johnson & Johnson, a motion was filed to change the plaintiff in this matter to DePuy Synthes in February 2013. On June 14, 2013, the jury in this case returned a verdict, finding that prior versions of the three products we previously sold did infringe on DePuy Synthes’ patents and awarding monetary damages in the amount of $16.0 million. The jury also upheld the validity of DePuy Synthes’ patents. There was no finding of willful infringement by Globus.

18

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

This verdict does not impact our ability to conduct our business or have any material impact on our future revenues. As this lawsuit involved only three products that are no longer part of our product portfolio, this verdict is not expected to impair our ability to sell any of our future products.

We believe the facts and the law do not support the jury’s findings of infringement and patent validity and are seeking to overturn the verdict through the appeals process.

For the year ended December 31, 2013, we recorded $19.5 million in damages and other litigation-related costs related to this case, of which $1.3 million was included in provision for litigation - cost of goods sold (due to a write off of certain inventory which will not be sold due to the verdict) and $18.2 million was included in provision for litigation (operating expense). During the year ended December 31, 2014, we accrued an additional $0.6 million in interest included in provision for litigation related to this litigation.

L5 Litigation

In December 2009, we filed suit in the Court of Common Pleas of Montgomery County, Pennsylvania against our former exclusive independent distributor L5 Surgical, LLC and its principals, seeking an injunction and declaratory judgment concerning certain restrictive covenants made to L5 by its sales representatives. L5 brought counterclaims against us alleging tortious interference, unfair competition and conspiracy. The injunction phase was resolved in September 2010, and this matter is now in the discovery phase of litigation on the underlying damages claims. We intend to defend our rights vigorously. The probable outcome of this litigation cannot be determined, nor can we estimate a range of potential loss. Therefore, in accordance with authoritative guidance on the evaluation of loss contingencies, we have not recorded an accrual related to this litigation.

NuVasive Litigation

In October 2010, NuVasive, Inc. filed suit against us in the U.S. District Court for the District of Delaware for patent infringement. NuVasive, the patent owner, alleges that we infringe one or more claims of three patents by making, using, offering for sale or selling our MARS 3V^™ retractor for use in certain lateral fusion procedures. NuVasive sought injunctive relief and an unspecified amount in damages. This matter was settled on February 12, 2015 for an undisclosed amount that was not material.

NuVasive Employee Litigation

We have hired several employees who were formerly employed by NuVasive, Inc. In July 2011, NuVasive filed suit against us in the District Court of Travis County, Texas alleging that our hiring of one named former employee and other unnamed former employees constitutes tortious interference with its contracts with those employees, and with prospective business relationships, as well as aiding and abetting the breach of fiduciary duty. NuVasive sought compensatory damages, permanent injunction, punitive damages and attorneys’ fees. This matter was settled on February 12, 2015 for an undisclosed amount that was not material.

Bianco Litigation

On March 21, 2012, Sabatino Bianco filed suit against us in the Federal District Court for the Eastern District of Texas claiming that we misappropriated his trade secret and confidential information and improperly utilized it in developing our CALIBER^® product. Bianco alleges that we engaged in misappropriation of trade secrets, breach of contract, unfair competition, fraud and theft and seeks correction of inventorship, injunctive relief and exemplary damages. On April 20, 2012, Bianco filed a motion for a

19

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

preliminary injunction, seeking to enjoin us from making, using, selling, importing or offering for sale our CALIBER^® product. On November 15, 2012, the court denied Bianco’s motion for preliminary injunction. On October 1, 2013, Bianco amended his complaint to claim that his trade secrets and confidential information were also used improperly in developing our RISE^® and CALIBER-L^® products.

On January 17, 2014, the jury in this case returned a verdict in favor of Bianco on a claim of misappropriation of trade secret. We accrued the verdict amount of $4.3 million as of December 31, 2013. The jury found against Bianco on the claims of breach of contract and disgorgement of profits. The court granted our motion for judgment as a matter of law and dismissed Bianco’s claims for unfair competition, fraud, and exemplary damages, and Bianco abandoned the claim of misappropriation of confidential information. Bianco’s claims of correction of inventorship, unjust enrichment, and permanent injunctive relief were not submitted to the jury. On March 7, 2014, the court denied Bianco’s claim for correction of inventorship and ruled he is not entitled to be named as a co-inventor on any of the patents at issue, and also denied his claim for unjust enrichment. On March 17, 2014, the court denied Bianco’s claim for permanent injunctive relief. On July 2, 2014, the court awarded Bianco an ongoing royalty of 5% of the net sales of the CALIBER^®, CALIBER^®-L, and RISE^® products, or products that are not colorably different from those products, for a fifteen year period on sales starting on January 18, 2014. The court entered final judgment on the jury verdict on July 17, 2014. Post-trial motions were denied on October 27, 2014 and the matter is currently on appeal.

We do not expect the verdict to impact our ability to conduct our business or to have any material impact on our future revenues. We believe the facts and the law do not support the jury’s findings of misappropriation of trade secret and are seeking to overturn the verdict through the appeals process.

Altus Partners, LLC Litigation

On February 20, 2013, Altus Partners, LLC filed suit against us in the U.S. District Court for the Eastern District of Pennsylvania for patent infringement. On April 7, 2014, we settled the litigation with Altus Partners and recognized a provision for litigation of $2.0 million.

Bonutti Skeletal Innovations, LLC Litigation

On November 19, 2014, Bonutti Skeletal Innovations, LLC filed suit against us in the U.S. District Court for the Eastern District of Pennsylvania for patent infringement. Bonutti Skeletal, a non-practicing entity, alleges that Globus willfully infringes one or more claims of six patents by making, using, offering for sale or selling the CALIBER^®, CALIBER^®-L, COALITION^®, CONTINENTAL^®, FORGE^®, FORTIFY^®, INDEPENDENCE^®, INTERCONTINENTAL^®, MONUMENT^®, NIKO^®, RISE^®, SIGNATURE^®, SUSTAIN^®, and TRANSCONTINENTAL^® products. Bonutti Skeletal seeks an unspecified amount in damages and injunctive relief. The probable outcome of this litigation cannot be determined, nor can we estimate a range of potential loss. Therefore, in accordance with authoritative guidance on the evaluation of loss contingencies, we have not recorded an accrual related to this litigation.

Flexuspine, Inc. Litigation

On March 11, 2015, Flexuspine, Inc. filed suit against us in the U.S. District Court for the Eastern District of Texas for patent infringement. Flexuspine, Inc. alleges that Globus willfully infringes one or more claims of five patents by making, using, offering for sale or selling the CALIBER^®, CALIBER^®-L, RISE^®, RISE^®-L, RISE^® INTRALIF^®, and ALTERA^® products. Flexuspine seeks an unspecified amount in damages and injunctive relief. The probable outcome of this litigation cannot be determined, nor can we estimate a

20

GLOBUS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

range of potential loss. Therefore, in accordance with authoritative guidance on the evaluation of loss contingencies, we have not recorded an accrual related to this litigation.

In addition, we are subject to legal proceedings arising in the ordinary course of business.

NOTE 13. RELATED-PARTY TRANSACTIONS

Prior to March 11, 2015, we had contracted with BMG, which at the time was a related-party manufacturer. We have purchased the following amounts of products and services from BMG:

	Period Ended		Three Months Ended
(In thousands)	March 11, 2015		March 31, 2014
Purchases from related-party supplier	$	5,304	$	4,850

On March 11, 2015, BMG was acquired by Globus, and therefore as of March 31, 2015, there are no further amounts payable to BMG. As of December 31, 2014, we had $5.4 million of accounts payable due to BMG. The amount payable to BMG on the date of acquisition of $5.2 million was settled in connection with the acquisition.

NOTE 14. SEGMENT AND GEOGRAPHIC INFORMATION

Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. We globally manage the business within one reportable segment. Segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. Products are sold principally in the United States.

The following table represents total sales by geographic area, based on the location of the customer:

	Three Months Ended
(In thousands)	March 31, 2015		March 31, 2014
United States	$	119,983	$	101,705
International	11,621		12,505
Total sales	$	131,604	$	114,210

We classify our products into two categories: innovative fusion products and disruptive technology products. The following table represents total sales by product category:

	Three Months Ended
(In thousands)	March 31, 2015		March 31, 2014
Innovative Fusion	$	70,370	$	66,770
Disruptive Technology	61,234		47,440
Total sales	$	131,604	$	114,210

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited interim consolidated financial statements and related notes included elsewhere in this report.

Unless otherwise noted, the figures in the following discussions are unaudited.

Overview

We are a medical device company focused on the design, development and commercialization of musculoskeletal implants. We are currently focused on implants that promote healing in patients with spine disorders. We are an engineering-driven company with a history of rapidly developing and commercializing advanced products and procedures that assist surgeons in effectively treating their patients, respond to evolving surgeon needs and address new treatment options. Since our inception in 2003, we have launched over 130 products and offer a comprehensive product portfolio of innovative and differentiated products addressing a broad array of spinal pathologies, anatomies and surgical approaches.

We sell implants and related disposables to our customers, primarily hospitals, for use by surgeons to treat spine disorders. All of our products fall into one of two categories: Innovative Fusion or Disruptive Technologies. Spinal fusion is a surgical procedure to correct problems with the individual vertebrae, the interlocking bones making up the spine, by preventing movement of the affected bones. Our Innovative Fusion products are used in cervical, thoracolumbar, sacral, and interbody/corpectomy fusion procedures to treat degenerative, deformity, tumor, and trauma conditions.

We define Disruptive Technologies as those that represent a significant shift in the treatment of spine disorders by allowing for novel surgical procedures, improvements to existing surgical procedures, the treatment of spine disorders by new physician specialties, and surgical intervention earlier in the continuum of care. Our current portfolio of approved and pipeline products includes a variety of Disruptive Technology products, which we believe offer material improvements to fusion procedures, such as minimally invasive surgical techniques, as well as new treatment alternatives including motion preservation technologies, such as dynamic stabilization, total disc replacement and interspinous process spacer products, and advanced biomaterials technologies, as well as interventional pain management solutions, including treatments for vertebral compression fractures.

To date, the primary market for our products has been the United States, where we sell our products through a combination of direct sales representatives employed by us and distributor sales representatives employed by our exclusive independent distributors, who distribute our products on our behalf for a commission that is generally based on a percentage of sales. We believe there is significant opportunity to strengthen our position in the U.S. market by increasing the size of our U.S. sales force and we intend to continue to add additional direct and distributor sales representatives in the future.

During the three months ended March 31, 2015, our international sales accounted for approximately 8.8% of our total sales. We sell our products in 33 countries outside the United States through a combination of direct sales representatives employed by us and international distributors. We believe there are significant opportunities for us to increase our presence in both existing and new international markets through the continued expansion of our direct and distributor sales forces and the commercialization of additional products.

On February 25, 2015, we entered into an agreement to acquire Branch Medical Group, Inc. (“BMG”), a related-party manufacturer of high precision medical devices located in Audubon, PA. We closed this

22

acquisition on March 11, 2015, for $57.0 million in cash, $5.3 million in deferred consideration, and an estimated $0.9 million payable upon finalization of closing adjustments.

Results of Operations

Three Months Ended March 31, 2015 Compared to the Three Months Ended March 31, 2014

Sales

The following tables set forth, for the periods indicated, our sales by product category and geography expressed as dollar amounts and the changes in sales between the specified periods expressed in dollar amounts and as percentages:

	Three Months Ended				Change
(In thousands, except percentages)	March 31, 2015		March 31, 2014		$		%
Innovative Fusion	$	70,370	$	66,770	$	3,600	5.4	%
Disruptive Technology	61,234		47,440		13,794		29.1	%
Total sales	$	131,604	$	114,210	$	17,394	15.2	%

Product launches continue to be a driving force in our sales growth, particularly from products launched during the last three years. The growth in Disruptive Technology of $13.8 million was due primarily to sales of minimally invasive, biologic, artificial disc and interventional pain management products launched during the past three years in addition to the sales from TTOT since the acquisition in late 2014. Innovative Fusion sales increased by $3.6 million due primarily to strong sales of legacy and new pedicle screw systems.

	Three Months Ended				Change
(In thousands, except percentages)	March 31, 2015		March 31, 2014		$			%
United States	$	119,983	$	101,705	$	18,278		18.0	%
International	11,621		12,505		(884		)	(7.1	%)
Total sales	$	131,604	$	114,210	$	17,394		15.2	%

In the United States, the increase in sales of $18.3 million was due primarily to expansion into new territories and increased penetration in existing territories. We saw strong sales in both Disruptive Technology and Innovative Fusion products, led by sales of legacy and new pedicle screw systems and our expandable interbody products.

Internationally, the decrease in sales of $0.9 million was due primarily to changes in exchange rates. Though in US dollar terms our sales declined in the three-month period ended March 31, 2015, we expanded our footprint into five new countries since the corresponding period in 2014.

Cost of Goods Sold

	Three Months Ended						Change
(In thousands, except percentages)	March 31, 2015			March 31, 2014			$		%
Cost of goods sold	$	32,107		$	25,312		$	6,795	26.8	%
Percentage of sales	24.4		%	22.2		%

The increase in cost of goods sold was due primarily to an increase of $4.4 million from increased sales volume and mix, including costs for TTOT, an increase of $0.9 million for royalties, an increase of $0.7

23

million in freight costs, and an increase of $0.6 million for inventory reserves and write-offs.

Research and Development Expenses

	Three Months Ended						Change
(In thousands, except percentages)	March 31, 2015			March 31, 2014			$		%
Research and development	$	8,656		$	7,443		$	1,213	16.3	%
Percentage of sales	6.6		%	6.5		%

The increase in research and development expenses was due primarily to an increase of $0.9 million related to employee compensation and an increase of $0.4 million of project and clinical trial costs.

Selling, General and Administrative Expenses

	Three Months Ended						Change
(In thousands, except percentages)	March 31, 2015			March 31, 2014			$		%
Selling, general and administrative	$	52,289		$	46,678		$	5,611	12	%
Percentage of sales	39.7		%	40.9		%

The increase in selling, general and administrative expenses was due primarily to an increase of $3.8 million related to increased compensation costs in the United States to support increased sales volume and company growth, and an increase of $1.8 million in acquisition-related expenses, meeting and training expenses, legal expenses and other selling, general and administrative costs.

Provision for Litigation

	Three Months Ended						Change
(In thousands, except percentages)	March 31, 2015			March 31, 2014			$			%
Provision for litigation	$	32		$	2,535		$	(2,503	)	(98.7	)%
Percentage of sales	—		%	2.2		%

The provision for litigation, which includes settlement and verdict costs, was nominal in the current quarter. In the prior year quarter, we recognized the Altus settlement and an adjustment for interest expense relating to the DePuy Synthes litigation.

Other Income/(Expense), Net

	Three Months Ended						Change
(In thousands, except percentages)	March 31, 2015			March 31, 2014			$			%
Other income/(expense), net	$	(347	)	$	245		$	(592	)	(241.6	)%
Percentage of sales	(0.3		)%	0.2		%

The change in other expense, net is primarily attributable to increases in foreign exchange transaction losses, partially offset by increases in interest income.

24

Income Tax Provision

	Three Months Ended						Change
(In thousands, except percentages)	March 31, 2015			March 31, 2014			$		%
Income tax provision	$	13,525		$	11,348		$	2,177	19.2	%
Effective income tax rate	35.4		%	34.9		%

Our tax provision for the three months ended March 31, 2015 was higher than the prior year period due primarily to the changes in the components of pre-tax income.

Non-GAAP Financial Measures

To supplement our financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), management uses certain non-GAAP financial measures. For example, Adjusted EBITDA, which represents net income before interest income, net and other non-operating expenses, provision for income taxes, depreciation and amortization, stock-based compensation, changes in the fair value of contingent consideration in connection with business acquisitions and other acquisition related costs, and provision for litigation, is useful as an additional measure of operating performance, and particularly as a measure of comparative operating performance from period to period, as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance, and it removes the effect of our capital structure, asset base, income taxes and interest income and expense. Our management also uses Adjusted EBITDA for planning purposes, including the preparation of our annual operating budget and financial projections.

The following is a reconciliation of Adjusted EBITDA to net income for the periods presented:

	Three Months Ended
(In thousands, except percentages)	March 31, 2015			March 31, 2014
Net Income	$	24,648		$	21,139
Interest income, net	(278		)	(201		)
Provision for income taxes	13,525			11,348
Depreciation and amortization	5,674			5,297
EBITDA	43,569			37,583
Stock-based compensation	2,131			1,927
Provision for litigation	32			2,535
Change in fair value of contingent consideration and other acquisition related costs	584			10
Adjusted EBITDA	$	46,316		$	42,055
Adjusted EBITDA as a percentage of sales	35.2		%	36.8		%

In addition, for the period ended March 31, 2015 and for other comparative periods, we are presenting a non-GAAP measure of Diluted Earnings Per Share, which represents diluted earnings per share before provision for litigation, which is net of the tax effects of such provision. We believe this non-GAAP measure is also a useful indicator of our operating performance, and particularly as an additional measure of comparative operating performance from period to period as it removes the effects of litigation, which we believe is not reflective of underlying business trends.

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The following is a reconciliation of non-GAAP Diluted Earnings Per Share to Diluted Earnings Per Share as computed in accordance with U.S. GAAP for the periods presented.

	Three Months Ended
(Per share amounts)	March 31, 2015		March 31, 2014
Diluted earnings per share, as reported	$	0.26	$	0.22
Provision for litigation (net of taxes)	—		0.02
Non-GAAP diluted earnings per share	$	0.26	$	0.24

We also define the non-GAAP measure of Free Cash Flow as the net cash provided by operating activities, adjusted for the impact of restricted cash, less the cash impact of purchases of property and equipment. We believe that this financial measure provides meaningful information for evaluating our overall financial performance for comparative periods as it facilitates an assessment of funds available to satisfy current and future obligations and fund acquisitions. Below is a reconciliation of Free Cash Flow to net cash provided by operating activities as computed in accordance with U.S. GAAP for the periods presented.

	Three Months Ended
(In thousands)	March 31, 2015			March 31, 2014
Net cash provided by operating activities	$	34,670		$	29,232
Purchases of property and equipment	(7,228		)	(6,164		)
Free cash flow	$	27,442		$	23,068

Adjusted EBITDA, non-GAAP Diluted Earnings Per Share and Free Cash Flow are not calculated in conformity with U.S. GAAP within the meaning of Item 10 of Regulation S-K. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial measures prepared in accordance with U.S. GAAP. These measures do not include certain expenses that may be necessary to evaluate our liquidity or operating results. Our definitions of Adjusted EBITDA, non-GAAP Diluted Earnings Per Share and Free Cash Flow may differ from that of other companies and therefore may not be comparable.

Cash Flows

The following table summarizes, for the periods indicated, cash flows from operating, investing and financing activities:

	Three Months Ended						Change
(In thousands)	March 31, 2015			March 31, 2014			$
Net cash provided by operating activities	$	34,670		$	29,232		$	5,438
Net cash used in investing activities	(43,779		)	(20,977		)	(22,802		)
Net cash provided by financing activities	1,809			6,441			(4,632		)
Effect of foreign exchange rate changes on cash	41			(56		)	97
Increase/(decrease) in cash and cash equivalents	$	(7,259	)	$	14,640		$	(21,899	)

During the three months ended March 31, 2015, our cash and cash equivalents decreased due primarily to the acquisition of BMG for $48.0 million, net of cash acquired.

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Cash Provided by Operating Activities

The increase in net cash provided by operating activities of $5.4 million was due primarily to the $2.7 million increase in the change in accounts receivable, the $2.7 million decrease in income tax payments over the prior year period, the $1.9 million increase in adjusted net income (excluding $1.6 million change in provision for litigation from the corresponding period in 2014, net of taxes), partially offset by a $3.4 million increase in the change in inventories, and the $4.6 million net decrease in the change in accounts payable and accounts payable to related parties.

Cash Used in Investing Activities

The increase in net cash used in investing activities of $22.8 million was due primarily to the BMG acquisition, offset partially by the $26.3 million decrease in the amount of cash invested in marketable securities in the three-month period ended March 31, 2015 compared to the prior period. During the three- month period ended March 31, 2015, we had a net inflow of $11.5 million of cash from maturities and sales exceeding purchases, whereas in the corresponding period in 2014, we had a net cash outflow of $14.8 million as purchases of marketable securities exceeded maturities and sales.

Cash Provided by Financing Activities

The decrease in cash provided by financing activities of $4.6 million was due primarily to the decrease in the proceeds from the exercise of stock options of $2.4 million, along with the decrease in the related excess tax benefit of $2.1 million.

Liquidity and Capital Resources

The following table highlights certain information related to our liquidity and capital resources:

(In thousands)	March 31, 2015		December 31, 2014
Cash and cash equivalents	$	75,006	$	82,265
Short-term marketable securities	138,274		146,439
Long-term marketable securities	71,513		75,347
Total cash, cash equivalents and marketable securities	$	284,793	$	304,051
Available borrowing capacity under revolving credit facility	50,000		50,000
Working capital	$	362,384	$	380,613

In May 2011, we entered into a credit agreement with Wells Fargo Bank related to a revolving credit facility that provided for borrowings up to $50.0 million. At our request, and with the approval of the bank, the amount of borrowings available under the revolving credit facility can be increased to $75.0 million. The revolving credit facility includes up to a $25.0 million sub-limit for letters of credit. Cash advances bear interest at our option either at a fluctuating rate per annum equal to the daily LIBOR in effect for a one-month period plus 0.75%, or a fixed rate for a one- or three-month period equal to LIBOR plus 0.75%. The credit agreement governing the revolving credit facility also subjects us to various restrictive covenants, including the requirement to maintain maximum consolidated leverage. The covenants also include limitations on our ability to repurchase shares, to pay cash dividends or to enter into a sale transaction. As of March 31, 2015, we were in compliance with all covenants under the credit agreement, there were no outstanding borrowings under the revolving credit facility and available borrowings were $50.0 million. We may terminate the credit agreement at any time on ten days’ notice without premium or penalty.

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Subsequent to March 31, 2015, we amended the above credit agreement with Wells Fargo Bank, extending the term of the revolving credit facility from May 2015 to May 2016. No other terms were modified.

On February 25, 2015, we entered into an agreement to acquire BMG, a related-party manufacturer of high precision medical devices located in Audubon, PA. We closed this acquisition on March 11, 2015, for $57.0 million in cash, $5.3 million in deferred consideration, and an estimated $0.9 million payable upon finalization of closing adjustments. For additional information regarding this transaction, please refer to “Part I; Item 1. Financial Statements; Notes to Consolidated Financial Statements; Note 2. Acquisitions” above.

In addition to our existing cash and marketable securities balances, our principal sources of liquidity are our cash flows from operating activities and our revolving credit facility, which was fully available as of March 31, 2015. We believe these sources will provide sufficient liquidity for us to meet our liquidity requirements for the foreseeable future. Our principal liquidity requirements are to meet our working capital, research and development, including clinical trials, capital expenditure needs, principally for our surgical sets required to maintain and expand our business, and potential future business or intellectual property acquisitions. We expect to continue to make investments in surgical sets as we launch new products, increase the size of our U.S. sales force, and expand into international markets. We may, however, require additional liquidity as we continue to execute our business strategy. Our liquidity may be negatively impacted as a result of a decline in sales of our products, including declines due to changes in our customers’ ability to obtain third-party coverage and reimbursement for procedures that use our products; increased pricing pressures resulting from intensifying competition, cost increases and slower product development cycles resulting from a changing regulatory environment; and unfavorable results from litigation which will affect our cash flow. We anticipate that to the extent that we require additional liquidity, it will be funded through the incurrence of indebtedness, additional equity financings or a combination of these potential sources of liquidity. The sale of additional equity may result in dilution to our stockholders. There is no assurance that we will be able to secure such additional funding on terms acceptable to us, or at all.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Seasonality and Backlog

Our business is generally not seasonal in nature. However, our sales may be influenced by summer vacation and winter holiday periods during which we have experienced fewer spine surgeries taking place. Our sales generally consist of products that are in stock in our warehouse facilities or maintained at hospitals or with our sales representatives. Accordingly, we do not have a backlog of sales orders.

Cautionary Note Concerning Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical fact are forward-looking statements. We have tried to identify forward-looking statements by using words such as “believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan” and similar words. These forward-looking statements are based on our current assumptions, expectations and estimates of future events and trends. Forward-looking statements are only predictions and are subject to many risks, uncertainties and other factors that may affect our businesses and operations and could cause actual results to differ materially

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from those predicted. These risks and uncertainties include, but are not limited to, factors affecting our quarterly results, our ability to manage our growth, our ability to sustain our profitability, demand for our products, our ability to compete successfully (including without limitation our ability to convince surgeons to use our products and our ability to attract and retain sales and other personnel), our ability to rapidly develop and introduce new products, our ability to develop and execute on successful business strategies, our ability to comply with changes and applicable laws and regulations that are applicable to our businesses, our ability to safeguard our intellectual property, our success in defending legal proceedings brought against us, trends in the medical device industry, and general economic conditions, and other risks set forth throughout our Annual Report on Form 10-K for the year ended December 31, 2014 (the “Form 10-K”), particularly those set forth under “Item 1A, Risk Factors” of the Form 10-K, and those discussed in other documents we file with the Securities and Exchange Commission (the “SEC”). Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for us to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Given these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements contained in this Quarterly Report speak only as of the date of this Quarterly Report. We undertake no obligation to update any forward-looking statements as a result of new information, events or circumstances or other factors arising or coming to our attention after the date hereof.

Item 3. Quantitative and Qualitative Disclosure About Market Risk

We have evaluated the information required under this item that was disclosed under Item 7A in our Annual Report on Form 10-K and there have been no significant changes to this information.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer (“CEO”) and our Chief Operating Officer (“COO”), evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2015. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Based on their evaluation of our disclosure controls and procedures as of March 31, 2015, our CEO and COO concluded that, as of such date, our disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the three months ended March 31, 2015 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including our CEO and COO, believes that our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of achieving their objectives and are effective at the reasonable assurance level. However, our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only

29

reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. For example, these inherent limitations include the realities that judgments in decision making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are involved in a number of proceedings, legal actions and claims.  Such matters are subject to many uncertainties, and the outcomes of these matters are not within our control and may not be known for prolonged periods of time.  In some actions, the claimants seek damages, as well as other relief, including injunctions prohibiting us from engaging in certain activities, which, if granted, could require significant expenditures and/or result in lost revenues.  For further details on the material legal proceedings to which we are currently a party, please refer to “Part I; Item 1. Financial Statements; Notes to Consolidated Financial Statements; Note 12. Commitments and Contingencies” above.

In addition, we are subject to legal proceedings arising in the ordinary course of business.

Item 1A. Risk Factors

We are affected by risks specific to us as well as factors that affect all businesses operating in a global market. For a discussion of the specific risks that could materially adversely affect our business, financial condition or operation results, please see our Form 10-K under the heading “Part I; Item 1A. Risk Factors.” There has been no material change to our risk factors disclosed in our Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

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Item 6. Exhibits

The following is a list of exhibits filed as part of this Quarterly Report on Form 10-Q.  Where so indicated, exhibits that were previously filed are incorporated by reference.  For exhibits incorporated by reference, the location of the exhibit in the previous filing is indicated in parentheses.

Exhibit No.	Item
10.1*	Executive Employment Agreement, dated June 26, 2014 by and between Globus Medical, Inc. and Anthony L. Williams.
10.2	Agreement and Plan of Merger, dated as of February 24, 2015, by and among Branch Medical Group, Inc., Globus Medical, Inc., BM Acquisition, Inc. and Spine Therapy Technologies, Inc. (incorporated by reference to Exhibit 2.1 of Globus Medical, Inc.'s Current Report on Form 8-K filed on March 2, 2015)
31.1*	Certification by Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification by Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32**	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
*	Filed herewith.
**	Furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		GLOBUS MEDICAL, INC.
Dated:	May 5, 2015	/s/ DAVID C. PAUL
		David C. Paul
		Chairman
		Chief Executive Officer
		(Principal Executive Officer)
Dated:	May 5, 2015	/s/ DAVID D. DEMSKI
		David D. Demski
		President
		Chief Operating Officer
		(Principal Financial Officer)

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EXHIBIT INDEX

Exhibit No.	Item
10.1*	Executive Employment Agreement, dated June 26, 2014 by and between Globus Medical, Inc. and Anthony L. Williams.
10.2	Agreement and Plan of Merger, dated as of February 24, 2015, by and among Branch Medical Group, Inc., Globus Medical, Inc., BM Acquisition, Inc. and Spine Therapy Technologies, Inc. (incorporated by reference to Exhibit 2.1 of Globus Medical, Inc.'s Current Report on Form 8-K filed on March 2, 2015)
31.1*	Certification by Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification by Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32**	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
*	Filed herewith.
**	Furnished herewith.

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EX-10.1

Exhibit 10.1

EXECUTIVE EMPLOYMENT AGREEMENT

THIS EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into this 26^th day of June 2014, and effective May 1, 2014 (the “Effective Date”), by and between Globus Medical, Inc., a Delaware corporation with its principal office in Montgomery County, Pennsylvania (the “Company”), and Anthony L. Williams, a resident of Pennsylvania (“Executive”), hereinafter collectively referred to as “the Parties”.

WITNESSETH:

WHEREAS, the Company desires to promote Executive to the position of Senior Vice President and General Counsel; and

WHEREAS, the Company and the Executive desire to enter into this Agreement to set forth the terms and conditions of the employment relationship between the Company and Executive;

NOW, THEREFORE, in consideration of the mutual promises in this Agreement, and other good and valuable consideration, including but not limited to the employment of Executive by the Company and the compensation received by Executive from the Company from time to time, and in particular the issuance of an option to purchase 40,000 shares of common stock in the Company, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

1.     EMPLOYMENT. The Company hereby employs Executive as the Company’s Senior Vice President and General Counsel, and Executive hereby accepts such employment, upon the terms and conditions hereinafter set forth.

2.     TERM. The term (“Term”) of this Agreement shall begin on the Effective Date and shall continue until terminated in accordance with the provisions of Section 6 hereof.

3.     EMPLOYMENT AT WILL. The Parties acknowledge and agree that Executive’s employment with the Company is, and shall remain at all times, “employment at-will”. Either party shall have the right to terminate the employment relationship at any time, for any reason, with or without cause or prior notice.

4.     DUTIES; EXCLUSIVE SERVICES; CONFLICTS OF INTEREST. Executive shall faithfully discharge his responsibilities and perform all duties as generally performed by the Senior Vice President or General Counsel of a comparable entity, including any duties set forth in the Bylaws of the Company related to the position and those duties prescribed from time to time by the President or his designee. Executive agrees to devote his best efforts, time, skill and attention to the performance of his duties and responsibilities on behalf of the Company and in furtherance of its best interests. Executive shall not become involved in any personal investment or business that would likely adversely affect the business of the Company or its affiliates. Executive also agrees that he shall not, without the written consent of the President or his designee, take personal advantage of any business opportunities that arise during his employment with the Company and which may benefit the Company. All material facts supporting such opportunities shall be promptly reported

1

to the President for consideration by the Company. Executive agrees to comply with all policies, standards and regulations of the Company now existing or hereafter promulgated. Subject to the terms and conditions of this Agreement (including, without limitation, Executive’s right to resign for Good Reason pursuant to Section 6(e)), Executive may be reassigned or transferred to another management position, as designated by and in the discretion of the President or his designee which may or may not provide the same level of responsibility as the initial assignment, and Executive shall perform these duties. Upon execution of this Agreement, Executive agrees to immediately resign from the board of directors of any entity that engages in any business that competes with or represents a conflict with the business of the Company as determined in the discretion of the Board of Directors of the Company.

5.     COMPENSATION. During the Term of this Agreement, Executive’s compensation shall be determined and paid as follows.

(a)    BASE SALARY. Executive shall receive as compensation an initial base salary at the rate of $304,000 annually, which annual rate may be increased during Executive’s employment from time to time in the sole discretion of the Company (the “Base Salary”). The Base Salary shall be paid on the Company’s regularly scheduled paydays, less federal, state and local payroll taxes and other withholdings legally required or properly requested by Executive, in accordance with the Company’s regular payroll practices and procedures.

(b)    INCENTIVE BONUS. Subject to the Company’s financial ability, it will establish an incentive bonus plan (“Bonus Plan”) that Executive shall be eligible to participate in. Under the terms of the Bonus Plan, Executive will be able to earn approximately an additional $192,500 annually (“Target Bonus”) by meeting certain Company and individual performance targets, which amount may be increased from time to time in the sole discretion of the Company.

(c)    STOCK OPTION GRANTS. In addition to other stock options held by Executive, within 60 days following the Effective Date, the Company shall grant to Executive an option to purchase 40,000 shares of common stock of the Company vesting over a period of four years (vesting commences after one year of service), with an exercise price equal to the fair market value at the time of grant, and conditioned on approval by the Company’s Board of Directors and execution of the Globus Stock Option Agreement and related documents. Options shall vest 100% upon acquisition of Company by another entity.

(d)    BENEFITS. Executive shall be eligible to participate in such other benefits as are provided from time to time to other executive-level employees of the Company. Such benefits will be provided and administered in accordance with the terms of any such benefit plans. All Company benefits are subject to termination or amendment by the Company without advance notice to or consent from Executive.

(e)    VACATION. Executive shall be entitled to four (4) weeks of paid vacation per calendar year, to be accrued and used in accordance with the vacation policy of the Company.

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(f)    BUSINESS EXPENSES. The Company will pay all reasonable expenses incurred by Executive directly related to conduct of the business of the Company, including a monthly car allowance in the amount of $700.00, provided that Executive complies with the policies for reimbursement or advance of business expenses established by the Company. Executive will also receive the usual and customary benefits allotted to Company executives including, but not limited to, mobile PDA and laptop computer.

6.     TERMINATION. Executive’s employment hereunder may be terminated as follows.

(a)     VOLUNTARY RESIGNATION BY EXECUTIVE. Executive may terminate his employment by delivery of written notice to the Company.

(b)     TERMINATION BY THE COMPANY WITHOUT CAUSE. The Company may terminate Executive’s employment by delivery of written notice to Executive.

(c)     TERMINATION BY THE COMPANY FOR CAUSE. While Executive is employed by the Company, the Company may terminate Executive’s employment “for cause,” as hereinafter defined, immediately upon written notice to Executive. “Cause” shall be decided by a majority vote of the Board of Directors of the Company other than Executive and shall mean:

(i)     Any material breach of the terms of this Agreement by Executive which breach, if curable, is not cured within fifteen (15) days after written notice of such breach has been given to Executive; or

(ii)     The failure of Executive to comply with the policies and/or directives of the Company and/or Board of Directors, which failure, if curable, is not cured within fifteen (15) days after written notice of such failure has been given to Executive; or

(iii)     Any act of gross negligence or willful misconduct with respect to the Company, including, without limitation fraud, embezzlement, theft or proven dishonesty in the course of his employment; or

(iv)     Any failure by Executive to fully disclose any material conflict of interest he may have with the Company in a transaction involving the Company which conflict is materially detrimental to the interest of the Company; or

(v)     Any adverse act or omission that would be required to be disclosed pursuant to securities laws or that would limit the ability of the Company or any entity affiliated with the Company to sell securities under any federal or state law or that would disqualify the Company or any affiliated entity from any exemption otherwise available to it, all of which are deemed for purposes of this Agreement to be materially detrimental to the interests and well-being of the Company.

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(d)     OTHER TERMINATION BY THE COMPANY. While the Company employs Executive, the Company may immediately terminate this Agreement upon the occurrence of any of the following events:

(i)     This Agreement and Executive’s employment hereunder shall immediately terminate without notice in the event of death of the Executive. Such termination shall not prejudice any benefits payable to Executive or Executive’s beneficiaries that are fully vested or accrued as of the date of death; however, Executive’s estate will not be entitled to any other compensation under this Agreement.

(ii)     This Agreement and Executive’s employment hereunder shall immediately terminate upon written notice to Executive if Executive is unable, due to a disability, to perform the essential functions of his job, with or without a reasonable accommodation, for a period of sixty (60) continuous days. Such termination shall not prejudice any benefits payable to Executive or Executive’s beneficiaries that are fully vested or accrued as of the termination date; however, the Company shall have no further obligation or liability to Executive under this Agreement.

(iii)     This Agreement shall terminate in the event of the liquidation, dissolution or discontinuance of business by the Company or the filing of any petition by or against the Company under any federal or state bankruptcy or insolvency laws, which petition shall not be dismissed within sixty (60) days after filing.

(e)     TERMINATION BY EXECUTIVE FOR GOOD REASON. During the Term of this Agreement, Executive may terminate his employment under this Agreement at any time for “Good Reason.” For purposes of this Agreement, “Good Reason” means:

(i)     Any materially adverse change or material diminution in the office, title, duties, powers, authority or responsibilities of Executive; or

(ii)     Failure of the Company to pay Executive any Base Salary or bonus that has become due and payable; or

(iii)     A material reduction in Base Salary; or

(iv)     A relocation of Executive’s principal worksite of more than 25 miles unless such relocation reduces Executive’s commute to such worksite; or

(v)     Any material breach of the terms of this Agreement by the Company.

However, none of the foregoing events or conditions will constitute Good Reason unless Executive provides the Company with written objection to the event or condition within 90 days following the occurrence thereof, the Company does not reverse or otherwise cure the event or condition

4

within thirty (30) days of receiving that written objection, and Executive resigns his employment within thirty (30) days following the expiration of that cure period.

(f)     TERMINATION FOLLOWING CHANGE IN CONTROL. If (i) all or substantially all of the assets of the Company are sold, liquidated or distributed or (ii) the Company is party to a merger or consolidation, or (iii) a person or entity or related persons or entities acquire a majority of the total voting power of the Company’s then-outstanding equity securities (each, a “Change in Control”), the Company may terminate the Executive’s employment without cause or the Executive may resign his employment with the Company under circumstances establishing Good Reason.

(g)     RESIGNATION AS OFFICER AND DIRECTOR. It is understood that if Executive has been, or at any time hereafter is, appointed to the Board of Directors of the Company, upon termination of this Agreement and Executive’s employment hereunder for any reason, unless otherwise agree between the Company and Executive, Executive shall also be deemed to have resigned as a member, if applicable at such time, of the Company’s Board of Directors, as well as any and all positions Executive may hold as an officer of the Company.

7.     PAYMENTS ON TERMINATION. Upon termination of this Agreement and Executive’s employment hereunder for any reason, all salary and benefits accrued and unreimbursed expenses due as of the date of termination shall be paid to Executive on the Company’s next regular payday.

(a)     Termination Without Severance Benefits. If this Agreement and Executive’s employment hereunder is terminated (i) by Executive for any reason other than Good Reason, including but not limited to termination pursuant to Subsection 6(d) above, or (ii) pursuant to Subsection 6(a) (voluntary resignation), or Subsection 6(c) (by the Company for “Cause”), no other payment or severance benefit will be payable to Executive by the Company.

(b)     Termination with Severance Benefits. If Executive’s employment is terminated pursuant to Subsection 6(b) (by the Company without “Cause”), 6(e) (for “Good Reason”) or 6(f) (“Change in Control”), then Executive shall be entitled to receive: (i) a severance equal to the Base Salary paid in equal installments each month over a period of twelve (12) months; and (ii) reimbursement for monthly premiums paid by Executive for his (and, if applicable, his spouse’s and dependents’) continued coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) under the group health, dental and/or vision plans sponsored by the Company (or any of its affiliates) for a period of twelve (12) months. In addition, if Executive’s employment is terminated pursuant to Subsection 6(b), 6(e) or 6(f) on or before the first anniversary of the Effective Date, then 1/48th of the shares subject to the stock option granted pursuant to Section 5(c) hereof shall vest at the end of each full calendar month beginning on the Effective Date and ending on the date of Executive’s termination.

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Notwithstanding the foregoing, no amount shall be payable to Executive under this Section 7 unless at the time of resignation or termination, Executive has been employed by Company for more than three (3) months from the Effective Date.

Further, notwithstanding the foregoing, the severance benefits described in the preceding paragraph are conditioned on Executive’s execution and delivery to the Company and the expiration of all applicable statutory revocation periods, by the 60th day following the effective date of his cessation of employment, of a general release of claims against the Company substantially in the form attached hereto as Exhibit A (the “Release”). Subject to the following paragraph, the severance benefits described in the preceding paragraph will be begin to be paid or provided as soon as administratively practicable after the Release becomes irrevocable, provided that if the 60-day period described above begins in one taxable year and ends in a second taxable year such payments or benefits shall not commence until the second taxable year.

Notwithstanding anything to the contrary in this Agreement, no portion of the benefits or payments to be made under Section 7(b) hereof will be payable until Executive has a “separation from service” from the Company within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). In addition, to the extent compliance with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application of an additional tax under Section 409A of the Code to payments due to Executive upon or following his “separation from service”, then notwithstanding any other provision of this Agreement (or any otherwise applicable plan, policy, agreement or arrangement), any such payments that are otherwise due within six months following Executive’s “separation from service” (taking into account the preceding sentence of this paragraph) will be deferred without interest and paid to Executive in a lump sum immediately following that six month period. This paragraph should not be construed to prevent the application of Treas. Reg. § 1.409A-1(b)(9)(iii) (or any successor provision) to amounts payable hereunder. For purposes of the application of Section 409A of the Code, each payment in a series of payments will be deemed a separate payment.

8.     WITHHOLDING FROM AND OFFSET OF SEVERANCE BENEFITS. The obligation of the Company to make any payment pursuant to Section 7 of this Agreement shall be subject to the following:

(a)     Taxes. The Company shall withhold all applicable federal, state and local taxes as required by relevant law and regulation then in effect including, without limitation FICA and other taxes.

(b)     Debts and Liabilities of Executive. The Company may withhold from or offset against its payment(s) to Executive any liabilities or debts of Executive to the Company.

9.     Section 409A.

(a)     Notwithstanding anything herein to the contrary or otherwise, except to the extent any expense, reimbursement or in-kind benefit provided to Executive does not constitute a “deferral of compensation” within the meaning of Section 409A of the Code,

6

and its implementing regulations and guidance, (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to Executive during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to Executive in any other calendar year, (ii) the reimbursements for expenses for which Executive is entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred and (iii) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.

(b)     Anything to the contrary herein notwithstanding, all benefits or payments provided by the Company to Executive that would be deemed to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code are intended to comply with Section 409A of the Code. Notwithstanding anything in this Agreement to the contrary, distributions may only be made under this Agreement upon an event and in a manner permitted by Section 409A of the Code or an applicable exemption.

(c)     If the application of Section 409A impacts Company’s tax liability, then Executive agrees to reimburse Company in the amount of the liability incurred.

10.     RESERVED.

11.     EXECUTIVE REPRESENTATIONS. Executive warrants and represents as follows:

(a)     Executive represents that his performance of all of the terms of this Agreement does not and will not breach any arrangement to keep in confidence information acquired by Executive in confidence or in trust prior to Executive’s employment by the Company. Executive represents that he has not entered into, and agrees not to enter into, any agreement either oral or written in conflict herewith.

(b)     Executive understands as part of the consideration for this Agreement and for Executive’s employment or continued employment by the Company, that Executive has not brought and will not bring with Executive to the Company, or use in the performance of Executive’s duties and responsibilities for the Company or otherwise on its behalf, any materials or documents of a former employer or other owner that are generally not available to the public, unless Executive has obtained written authorization from the former employer or other owner for their possession and use and has provided the Company with a copy thereof.

(c)     Executive understands that during his employment for the Company he is not to breach any obligation of confidentiality that Executive has to a former employer or any other person or entity and agrees to comply with such understanding.

12.     RECORDS. All notes, data, tapes, reference materials, sketches, drawings, memoranda, models and records in any way relating to any of the proprietary information or to the Company’s business shall belong exclusively to the Company, and Executive agrees to turn over to the Company all such materials and all copies and reproduction capabilities concerning such

7

materials or compilations of information therefrom in his possession or then under his control at the request of the Company or, in the absence of such request, upon the termination of Executive’s employment with the Company.

13.     WAIVER. No waiver of any provision of this Agreement shall be valid unless the same is in writing and signed by the party against whom such waiver is sought to be enforced. Failure or delay of the Company at any time to insist upon strict compliance with any of the terms, covenants or conditions hereof, or to exercise any of its powers, rights or remedies with respect to any term or provision of this Agreement or any other aspect of Executive’s conduct or employment, shall not be deemed a waiver of such terms, covenants, conditions, powers, rights or remedies, nor shall any waiver or relinquishment of any right or power granted hereunder at any particular time be deemed a waiver or relinquishment of such rights or power at any other time or times.

14.     RESERVED.

15.     SEVERABILITY. The provisions of this Agreement shall be deemed severable, and the invalidity or unenforceability of any provision (or part thereof) of this Agreement shall in no way affect the validity or enforceability of any other provision (or remaining part thereof) or the enforceability thereof under different circumstances.

16.     GOVERNING LAW; VENUE. This Agreement shall be governed by and construed according to the laws of the Commonwealth of Pennsylvania, without reference to the choice of law or conflict of law provisions of such laws, provided that federal law shall govern copyright, patent and trademark issues. The Parties further agree that the Court of Common Pleas of Montgomery County, Pennsylvania or the United States District Court for the Eastern District of Pennsylvania in Philadelphia, Pennsylvania shall adjudicate any disputes related to this Agreement. The parties hereto consent to the personal jurisdiction of such courts.

17.     NOTICES. Any notice required to be given hereunder shall be sufficient if in writing and sent by certified or registered United States mail, return receipt requested, first-class postage prepaid, in the case of Executive, to the last known address as shown on the Company’s records, and in the case of the Company, to its principal office in the Commonwealth of Pennsylvania.

18.     BENEFIT. This Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto, and to their respective heirs, representatives, successors and permitted assigns. Executive may not assign any of his rights or delegate any of his duties under this Agreement.

19.     ENTIRE AGREEMENT. This Agreement and the No Competition and Non-Disclosure Agreement between the Company and Executive effective as of March 1, 2011 (the “NCND Agreement”) contain the entire agreement and understandings by and between the Company and Executive with respect to the covenants herein and therein described, and no representations, promises, agreements or understandings, written or oral, not herein or therein contained shall be of any force or effect. The NCND Agreement shall remain in full force and effect following the execution of this Agreement. No change or modification hereof shall be valid or binding unless the same is in writing and signed by the Parties hereto. Executive represents and agrees that he fully understands his right to discuss all aspects of this Agreement with counsel of his choice, that to the

8

extent he desired, he availed himself of this right, that he has carefully read and fully understands the meaning, intent and consequences of all provisions of this entire Agreement, that he is competent to execute this Agreement, that his decision to execute this Agreement has not been obtained by any duress, and that he freely and voluntarily enters into this Agreement.

20.     CAPTIONS. The captions in this Agreement are for convenience only and in no way define, bind or describe the scope or intent of this Agreement.

21.     SURVIVAL. The provisions set forth in Sections 7 through 20 hereof shall survive the termination of this Agreement and any period of applicability stated therein shall be extended to the extent of any period of time during which the Executive is in violation thereof.

IN WITNESS WHEREOF, the parties have executed this Executive Employment Agreement effective as of the day and year first above written.

GLOBUS MEDICAL, INC.

By: /s/ David C. Paul                

Name: David C. Paul                

Title:     CEO                    

EXECUTIVE

/s/ Anthony L. Williams            

Anthony L. Williams

9

EXHIBIT A

Form of Release

1

SEPARATION AGREEMENT AND GENERAL RELEASE

In consideration of a payment of: (1) __________ representing a severance payment of ________ salary which I will receive from Globus Medical, Inc. (“Globus”) by check (less appropriate payroll taxes which will be withheld); and (2) __________ representing the cost of extending my medical and health benefits for __________ months, both payments to be sent within __________ (__________) calendar days after Globus receives a signed copy of this Agreement, I, __________, intending to be legally bound by this Separation Agreement and General Release (“Agreement”), hereby agree to release Globus from all claims, demands, actions or liabilities I may have against Globus of whatever kind, known or unknown, including but not limited to those which arise out of or are related to my employment with Globus or the separation or termination of that employment. I agree that this also releases from liability Globus’ subsidiaries, successors, operating units, assigns, affiliates, related corporations and entities, and all of their present and future partners, principals, shareholders, employees, officers, directors, agents, attorneys, divisions, and any person or entity which can be held jointly and severably liable with any of them (hereinafter, “those associated with Globus”).

I agree that I have voluntarily executed this release on my own behalf, and also on behalf of any heirs, agents and representatives that I may have now or in the future. I knowingly and voluntarily waive any and all claims under any and all laws which provide legal restrictions on Globus’ or the rights of those associated with Globus to terminate my employment or to affect the terms and conditions of my employment, including but not limited to claims under any federal, state, or other governmental statute, regulation or ordinance, including, without limitation: (1) Title VII of the Civil Rights Act of 1964 and the Civil Rights Act of 1991; (2) the Americans With Disabilities Act;

1

(3) the Pennsylvania Human Relations Act; (4) the Age Discrimination in Employment Act (“ADEA”); (5) the Older Workers Benefit Protection Act; (6) The Family and Medical Leave Act (“FMLA”); (7) Sections 1981 through 1988 of Title 42 of the United States Code; (8) the Employee Retirement Income Security Act of 1974 (“ERISA”); (9) the federal Food Drug and Cosmetic Act; (10) the Occupational Safety and Health Act; (11) all other federal, state or local laws of a similar nature to any of the foregoing enumerated laws and any amendments to the foregoing statutes.

I also waive any other common law or statutory claims against Globus and those associated with Globus, including but not limited to any claim for personal injury, wrongful discharge, public policy, negligence, infliction of emotional distress, whistleblower, retaliation, negligent hiring or retention, or any form of tort, whether negligent, reckless or intentional, or any claims based on theories of contract, including any claims for legal fees or costs, or any other form of action.

I understand that I am not waiving any rights or claims under the ADEA that may arise after the date this waiver is executed, but does waive any claims pertaining to my separation from employment as provided for by this Agreement. I also understand that I am not waiving any rights or claims which cannot legally be waived by this Agreement, including without limitation, unemployment compensation claims, workers’ compensation claims or the ability to file certain administrative claims.

I understand that nothing in this Agreement shall interfere with my right to file a charge with, cooperate with, or participate in an investigation or proceeding conducted by the Equal Employment Opportunity Commission or other federal or state regulatory or law enforcement agency. However, I agree that, with the exception of unemployment and worker’s compensation claims, the

2

consideration provided to me in this Agreement shall be the sole relief provided for the claims that are released by me herein and I understand that I will not be entitled to recover and agree to waive any monetary benefits or economic recovery or equitable relief recovery against Globus or those associated with Globus in connection with any such claim, charge or proceeding without regard to who has brought such complaint or charge.

Subject to all of the foregoing, this Agreement shall operate as a general release of any and all claims to the fullest extent of applicable law.

I further acknowledge and agree that:

1.     The payment as described above constitutes consideration for this release, in that it is a payment or other accommodation to which I would not have been entitled under any Globus policy, procedure or plan had I not signed this release.

2.     As of the date set forth below, payment has been made in full for all hours worked and that I am not owed or entitled to any additional compensation in the form of salary, wages, overtime, vacation pay, fringe benefits or otherwise, related to any employment with Globus or those associated with Globus.

3.     I have been given the opportunity to take a period of at least twenty-one (21) days to consider this release (“Consideration Period”), I have not been pressured or coerced to waive this Consideration Period, and I have been given the opportunity to discuss it with counsel of my choice.

4.     I have carefully read this release, have had a reasonable time to review it, and have signed it voluntarily, without coercion and with knowledge of the nature and consequences thereof. 

3

5.     This release does not waive any claims I may have which arise after the date I sign this release.

6.     I have not relied on any representations or promises of any kind made to me in connection with my voluntary decision to sign this release except for those set forth in this release.

7.     I will keep the terms of this release, including the payment and accommodations made hereunder, in strict confidence, and will not make public or disclose the terms or payment to any person except for my spouse, my attorneys or accountants or governmental authorities as may be required by law.

8.     I shall not make or publish any statement (orally or in writing) or instigate, assist or participate in the making or publication of any statement which shall tend to disparage or demean Globus, or any of its present or former employees, officers and directors.

9.     If Globus receives any requests for references concerning my employment, Globus will only disclose my position and dates of employment.

10.     I agree not to seek employment or be employed with Globus or those associated with Globus, and forever waive and relinquish all rights to assert any claim for recall, reemployment, or tenure with Globus or those associated with Globus. I agree that Globus and those associated with Globus need not accept or consider any application for employment from me, may deny employment to me based upon this provision, and I hereby release Globus and those associated with Globus from any liability for failure to hire or rehire me in the future. If I should apply for employment or reemployment with Globus or those associated with Globus in the future, this Agreement shall

4

constitute my irrevocable request that such application be withdrawn and not considered and, if already hired, shall constitute my irrevocable resignation.

11.     I agree I will never institute or be a party to a claim of any kind against Globus or those associated with Globus regarding the subject matter of this release. If I violate this release by instituting a claim against Globus or those associated with Globus, I agree I will pay all costs Globus or those associated with Globus incur in defending against the claim, including reasonable attorneys’ fees.

12.     I agree to timely pay any taxes due on sums paid pursuant to this Agreement and hereby indemnify and holds harmless Globus for any taxes and penalties assessed on account of sums paid pursuant to this Agreement.

13.     I understand that the sums paid pursuant to this Agreement will not be included in compensation for purposes of calculating the benefits to which I am entitled under any 401(k), pension or other retirement plan.

14.     I agree to execute any documents and to take any other actions necessary to implement the terms of this Agreement.

15.     I understand that this Agreement sets forth the terms of the entire agreement between me and Globus concerning my employment and separation from employment and extinguish the terms of any other agreement between the parties; provided, however, that the provisions of the No Competition and Non-Disclosure Agreement that I signed as an employee of Globus shall remain in full force and effect. I am not entitled to any benefit or consideration not set forth in this Agreement nor shall I be entitled to any duplication of the consideration or benefits described in this Agreement.

5

16.     I understand that no oral statement of any person whatsoever shall in any manner or degree modify or otherwise affect the terms and provisions of this Agreement. To the extent the terms of this Agreement and any other agreement conflict, the terms of this Agreement shall govern and supercede such inconsistent terms.

17.     I understand and agree that if, after 60 days from receipt of this Agreement, I do not sign and return it to Globus, that the terms and conditions of this offer shall expire at Globus’ discretion and without any further notice to me.

I understand this Agreement is not effective or enforceable for seven (7) days after I sign it, and I may revoke it during that time (“Revocation Period”). I have not been pressured or coerced to waive this Revocation Period. To revoke, I agree to return the full amount of any check I received from Globus under this Release, together with a written notice of revocation addressed to Kelly G. Huller, Esquire, Vice President, Legal, Globus Medical, Inc., 2560 General Armistead Avenue, Audubon, PA 19403. I understand and agree that this must be done before the conclusion of the seventh day after I sign the release; that if Ms. Huller does not receive a written revocation and the sum stated above by the end of the seven day period, this release will become fully enforceable at that time; and that revocation of this release does not alter or affect the termination of my employment with Globus.

In case any part of this release shall be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. This release shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania.

6

I understand and agree to this Agreement, have had the opportunity to review it with counsel, and have signed it freely and voluntarily.

Date

Witness (print name)                     Witness (signature)

Reviewed and agreed to on behalf of Globus Medical, Inc.:

By:

Name:

Title:

7

EX-31.1

EXHIBIT 31.1

Certification By Principal Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, David C. Paul, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Globus Medical, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 5, 2015	/s/ DAVID C. PAUL
		David C. Paul
		Chairman
		Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification By Principal Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, David M. Demski, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Globus Medical, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 5, 2015	/s/ DAVID M. DEMSKI
		David M. Demski
		President
		Chief Operating Officer

EX-32

EXHIBIT 32

Certification Pursuant to 18 U.S.C. Section 1350, as Adopted

Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code), David C. Paul, Chairman and Chief Executive Officer, and David M. Demski, President and Chief Operating Officer of Globus Medical, Inc. (the “Company”), each certifies with respect to the Quarterly Report of the Company on Form 10-Q for the period ended March 31, 2015 (the “Report”) that, to the best of his knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	May 5, 2015	/s/ DAVID C. PAUL
		David C. Paul
		Chairman
		Chief Executive Officer
Dated:	May 5, 2015	/s/ DAVID M. DEMSKI
		David M. Demski
		President
		Chief Operating Officer

The foregoing certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code) and is not being filed as part of the Report or as a separate disclosure document.

XML

FAIR VALUE MEASUREMENTS (Details) (Fair Value, Measurements, Recurring, USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring Basis
Cash equivalents	$ 12,475	$ 9,802
Contingent consideration	24,843	24,335
Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Cash equivalents	375	1,302
Contingent consideration	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis
Cash equivalents	12,100	8,500
Contingent consideration	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Cash equivalents	0	0
Contingent consideration	24,843	24,335
Municipal Bonds
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	65,179	54,655
Municipal Bonds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	0	0
Municipal Bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	65,179	54,655
Municipal Bonds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	0	0
Corporate Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	74,501	92,629
Corporate Debt Securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	0	0
Corporate Debt Securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	74,501	92,629
Corporate Debt Securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	0	0
Commercial Paper
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	37,429	44,671
Commercial Paper | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	0	0
Commercial Paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	37,429	44,671
Commercial Paper | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	0	0
Asset-backed Securities
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	22,085	21,283
Asset-backed Securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	0	0
Asset-backed Securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	22,085	21,283
Asset-backed Securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	0	0
Securities of U.S. government-sponsored agencies
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	10,593	8,548
Securities of U.S. government-sponsored agencies | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	0	0
Securities of U.S. government-sponsored agencies | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	10,593	8,548
Securities of U.S. government-sponsored agencies | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Marketable Securities	$ 0	$ 0

XML

SEGMENT AND GEOGRAPHIC INFORMATION (Geographic Location) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenues from External Customers
Total sales	$ 131,604	$ 114,210
United States
Revenues from External Customers
Total sales	119,983	101,705
International
Revenues from External Customers
Total sales	$ 11,621	$ 12,505

XML

STOCK-BASED COMPENSATION (Grant Date Fair Values of Options Awarded to Employees) (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted average grant date per share fair value	$ 9.42	$ 10.34

XML

SEGMENT AND GEOGRAPHIC INFORMATION (Products) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015 segments categories	Mar. 31, 2014
Revenue from External Customer
Total sales	$ 131,604	$ 114,210
Textuals [Abstract]
Number of reportable segments	1
Number of product categories	2
Innovative Fusion
Revenue from External Customer
Total sales	70,370	66,770
Disruptive Technology
Revenue from External Customer
Total sales	$ 61,234	$ 47,440

XML

EQUITY Accumulated Other Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2013
Accumulated other comprehensive income/(loss), net of tax	$ (1,835)	$ (1,011)	$ (1,657)	$ (1,009)
Other comprehensive loss before reclassifications	(179)	(8)
Amounts reclassified from accumulated other comprehensive income, net of tax	1	6
Other comprehensive income/(loss), net of tax	(178)	(2)
Foreign Currency Translation Adjustment
Accumulated other comprehensive income/(loss), net of tax	(1,836)	(1,044)	(1,593)	(1,041)
Other comprehensive loss before reclassifications	(243)	(3)
Amounts reclassified from accumulated other comprehensive income, net of tax	0	0
Other comprehensive income/(loss), net of tax	(243)	(3)
Unrealized Gain/(Loss) on Marketable Securities, Net of Tax
Accumulated other comprehensive income/(loss), net of tax	1	33	(64)	32
Other comprehensive loss before reclassifications	64	(5)
Amounts reclassified from accumulated other comprehensive income, net of tax	1	6
Other comprehensive income/(loss), net of tax	$ 65	$ 1

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SEGMENT AND GEOGRAPHIC INFORMATION (Tables)

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Schedule of Revenue from External Customers by Geographical Area

The following table represents total sales by geographic area, based on the location of the customer:

	Three Months Ended
(In thousands)	March 31, 2015		March 31, 2014
United States	$	119,983	$	101,705
International	11,621		12,505
Total sales	$	131,604	$	114,210

Revenue from External Customers by Products and Services

The following table represents total sales by product category:

	Three Months Ended
(In thousands)	March 31, 2015		March 31, 2014
Innovative Fusion	$	70,370	$	66,770
Disruptive Technology	61,234		47,440
Total sales	$	131,604	$	114,210

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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis

The fair value of our assets and liabilities measured at fair value on a recurring basis was as follows:

	Balance at
(In thousands)	March 31, 2015		Level 1		Level 2		Level 3
Assets
Cash equivalents	$	12,475	$	375	$	12,100	$	—
Municipal bonds	65,179		—		65,179		—
Corporate debt securities	74,501		—		74,501		—
Commercial paper	37,429		—		37,429		—
Asset-backed securities	22,085		—		22,085		—
Securities of U.S. government-sponsored agencies	10,593		—		10,593		—
Liabilities
Contingent consideration	24,843		—		—		24,843

	Balance at
(In thousands)	December 31, 2014		Level 1		Level 2		Level 3
Assets
Cash equivalents	$	9,802	$	1,302	$	8,500	$	—
Municipal bonds	54,655		—		54,655		—
Corporate debt securities	92,629		—		92,629		—
Commercial paper	44,671		—		44,671		—
Asset-backed securities	21,283		—		21,283		—
Securities of U.S. government-sponsored agencies	8,548		—		8,548		—
Liabilities
Contingent consideration	24,335		—		—		24,335

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STOCK-BASED COMPENSATION (Compensation Expense Related to Stock Options and Their Intrinsic Values) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Compensation expense related to stock options	$ 2,131	$ 1,927
Intrinsic value of stock options exercised	$ 3,260	$ 11,283

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DEBT (Details) (Revolving Credit Facility, USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Debt Instrument
Credit facility, current borrowing capacity	$ 50.0
Credit facility, maximum borrowing capacity	75.0
Line of Credit, Termination Period Without Penalty	10 days
Fluctuating Rate Per Annum
Debt Instrument
Credit facility, variable rate	LIBOR
Credit facility, period of variable rate	1 month
Credit facility, basis spread on variable rate	0.75%
Fixed Rate
Debt Instrument
Credit facility, variable rate	LIBOR
Credit facility, basis spread on variable rate	0.75%
Fixed Rate | Minimum
Debt Instrument
Credit facility, period of variable rate	1 month
Fixed Rate | Maximum
Debt Instrument
Credit facility, period of variable rate	3 months
Letter of Credit
Debt Instrument
Credit facility, maximum borrowing capacity	$ 25.0

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INTANGIBLE ASSETS (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Acquired Intangible Assets
Intangible assets, gross	$ 36,505	$ 36,305
Accumulated amortization	(2,163)	(1,776)
Intangible assets, net	34,342	34,529
Supplier Network
Acquired Intangible Assets
Weighted average amortization period	10 years	10 years
Gross carrying amount	4,000	3,800
Accumulated amortization	(167)	(88)
Finite-lived intangible assets, net	3,833	3,712
Customer Relationships & Other Intangibles
Acquired Intangible Assets
Weighted average amortization period	7 years 3 months	7 years 3 months
Gross carrying amount	5,525	5,525
Accumulated amortization	(1,616)	(1,344)
Finite-lived intangible assets, net	3,909	4,181
Patents
Acquired Intangible Assets
Weighted average amortization period	17 years	17 years
Gross carrying amount	2,420	2,420
Accumulated amortization	(380)	(344)
Finite-lived intangible assets, net	2,040	2,076
In-Process Research & Development
Acquired Intangible Assets
Indefinite-lived intangible assets	$ 24,560	$ 24,560

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COMMITMENTS AND CONTINGENCIES (Details) (USD $)	3 Months Ended		12 Months Ended		3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2013	Jul. 31, 2011 claim	Oct. 31, 2010 claim
Loss Contingencies
Provision for litigation	$ 32,000	$ 2,535,000
Synthes USA, LLC, Synthes USA Products, LLC, and Synthes USA Sales, LLC Litigation
Loss Contingencies
Loss Contingency, Pending Claims, Number						3
Damages awarded				16,000,000
Combined litigation loss				19,500,000
Provision for litigation - cost of goods sold				1,300,000
Provision for litigation			600,000	18,200,000
Synthes USA, LLC, Synthes USA Products, LLC, and Synthes USA Sales, LLC Litigation | Minimum
Loss Contingencies
Loss Contingency, Pending Claims, Number						1
NuVasive, Inc. Litigation
Loss Contingencies
Loss Contingency, Pending Claims, Number							3
NuVasive, Inc. Litigation | Minimum
Loss Contingencies
Loss Contingency, Pending Claims, Number							1
Bianco
Loss Contingencies
Combined litigation loss					4,300,000
Royalty Rate			5.00%
Altus Partners, LLC Litigation
Loss Contingencies
Provision for litigation		$ 2,000,000
N-Spine and Synthes Litigation | Minimum
Loss Contingencies
Loss Contingency, Pending Claims, Number				1	1

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STOCK-BASED COMPENSATION (Textuals) (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award
Number of stock plans	3
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Maximum contractual term	10 years
Unrecognized compensation expense, unvested stock options	$ 24.2
Weighted average period of recognition, unvested stock options	3 years
Stock Options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Award vesting period	4 years
2012 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Base number of shares that may be issuable under stock plan	3,076,923
2012 Equity Incentive Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares available for grant	10,769,230
Annual percentage limit for incremental shares that may be issued	3.00%
2012 Equity Incentive Plan | Class A Common
Share-based Compensation Arrangement by Share-based Payment Award
Number of shares available for grant	4,958,899

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INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2015

Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure

INTANGIBLE ASSETS

A summary of intangible assets is presented below:

		March 31, 2015
(In thousands)	Weighted Average Amortization Period (in years)	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, net
In-process research & development	—	$	24,560	$	—		$	24,560
Supplier network	10.0	4,000		(167		)	3,833
Customer relationships & other intangibles	7.3	5,525		(1,616		)	3,909
Patents	17.0	2,420		(380		)	2,040
Total intangible assets		$	36,505	$	(2,163	)	$	34,342

		December 31, 2014
(In thousands)	Weighted Average Amortization Period (in years)	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, net
In-process research & development	—	$	24,560	$	—		$	24,560
Supplier network	10.0	3,800		(88		)	3,712
Customer relationships & other intangibles	7.3	5,525		(1,344		)	4,181
Patents	17.0	2,420		(344		)	2,076
Total intangible assets		$	36,305	$	(1,776	)	$	34,529

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EQUITY (Textuals) (Details)	Mar. 31, 2015	Dec. 31, 2014
Class of Stock
Common stock, shares authorized	785,000,000
Class A Common
Class of Stock
Common stock, shares authorized	500,000,000	500,000,000
Class B Common
Class of Stock
Common stock, shares authorized	275,000,000	275,000,000
Class C Common
Class of Stock
Common stock, shares authorized	10,000,000

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EQUITY Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2015

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Income/(Loss), Net of Tax

The tables below present the changes in each component of accumulated other comprehensive income/(loss), including current period other comprehensive income/(loss) and reclassifications out of accumulated other comprehensive income/(loss):

(In thousands)	Unrealized gain/(loss) on marketable securities, net of tax			Foreign currency translation adjustments			Accumulated other comprehensive loss
Accumulated other comprehensive loss, net of tax, at December 31, 2014	$	(64	)	$	(1,593	)	$	(1,657	)
Other comprehensive income/(loss) before reclassifications	64			(243		)	(179		)
Amounts reclassified from accumulated other comprehensive income, net of tax	1			—			1
Other comprehensive income/(loss), net of tax	65			(243		)	(178		)
Accumulated other comprehensive income/(loss), net of tax, at March 31, 2015	$	1		$	(1,836	)	$	(1,835	)

(In thousands)	Unrealized gain/(loss) on marketable securities, net of tax			Foreign currency translation adjustments			Accumulated other comprehensive loss
Accumulated other comprehensive income/(loss), net of tax, at December 31, 2013	$	32		$	(1,041	)	$	(1,009	)
Other comprehensive loss before reclassifications	(5		)	(3		)	(8		)
Amounts reclassified from accumulated other comprehensive loss, net of tax	6			—			6
Other comprehensive income/(loss), net of tax	1			(3		)	(2		)
Accumulated other comprehensive income/(loss), net of tax, at March 31, 2014	$	33		$	(1,044	)	$	(1,011	)

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EQUITY (Tables)

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Schedule of Issued and Outstanding Shares by Class

Our issued and outstanding common shares by Class were as follows:

(Shares)	Class A Common	Class B Common	Total
March 31, 2015	71,022,427	23,877,556	94,899,983
December 31, 2014	70,828,187	23,877,556	94,705,743

Schedule of Stockholders Equity

The following table summarizes changes in total equity:

	Three Months Ended
(In thousands)	March 31, 2015
Total equity, beginning of period	$	585,454
Net income	24,648
Stock-based compensation	2,131
Exercise of stock options	1,425
Excess tax benefit of nonqualified stock options	684
Other comprehensive loss	(178		)
Total equity, end of period	$	614,164

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EQUITY (Schedule of Issued and Outstanding Shares) (Details)	Mar. 31, 2015	Dec. 31, 2014
Class of Stock
Common stock, shares issued	94,899,983	94,705,743
Common stock, shares outstanding	94,899,983	94,705,743
Class A Common
Class of Stock
Common stock, shares issued	71,022,427	70,828,187
Common stock, shares outstanding	71,022,427	70,828,187
Class B Common
Class of Stock
Common stock, shares issued	23,877,556	23,877,556
Common stock, shares outstanding	23,877,556	23,877,556

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STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Grants in Period, Weighted Average Grant Date Fair Value

The weighted average grant date per share fair values of the options awarded to employees were as follows:

	Three Months Ended
	March 31, 2015		March 31, 2014
Weighted average grant date per share fair value	$	9.42	$	10.34

Summary of Stock Option Activity

Stock option activity during the three months ended March 31, 2015 is summarized as follows:  

	Option Shares(thousands)		Weighted average exercise price		Weighted average remaining contractual life (years)	Aggregate intrinsic value (thousands)
Outstanding at December 31, 2014	4,854		$	14.50
Granted	1,159		23.98
Exercised	(194	)	7.34
Forfeited	(98	)	16.23
Outstanding at March 31, 2015	5,721		$	16.63	7.6	$	49,236
Exercisable at March 31, 2015	2,569		$	10.77	5.7	$	37,164
Expected to vest at March 31, 2015	3,152		$	21.41	9.1	$	12,073

Stock Option Compensation Expense and Intrinsic Value Schedule

Compensation expense related to stock options granted to employees and non-employees under our stock plans and the intrinsic value of stock options exercised was as follows:

	Three Months Ended
(In thousands)	March 31, 2015		March 31, 2014
Compensation expense related to stock options	$	2,131	$	1,927
Intrinsic value of stock options exercised	3,260		11,283

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INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Effective income tax rate

	Three Months Ended
	March 31, 2015		March 31, 2014
Effective income tax rate	35.4	%	34.9	%

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ACQUISITIONS

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Business Combination Disclosure

ACQUISITIONS

On February 25, 2015, we entered into an agreement to acquire Branch Medical Group, Inc. (“BMG”), a related-party manufacturer of high precision medical devices located in Audubon, PA. We closed this acquisition on March 11, 2015, for $57.0 million in cash, $5.3 million in deferred consideration, and an estimated $0.9 million payable upon finalization of closing adjustments. The amount payable to BMG on the date of acquisition of $5.2 million was also settled in connection with the acquisition.

As previously disclosed in our definitive proxy statement, BMG had been a related-party supplier since 2005. As of February 24, 2015, David C. Paul's wife, David D. Davidar's wife, and David M. Demski collectively owned approximately 49% of the outstanding stock of BMG. In addition, since February 2010, Mr. Paul's wife and Mr. Davidar's wife had served as directors of BMG. Prior to the acquisition, we purchased products and services from BMG pursuant to a standard Supplier Quality Agreement entered into in September 2010.

We accounted for the acquisition under the purchase method of accounting, and as a result, recorded preliminary goodwill of $40.6 million. The results of operations of BMG have been included in our results of operations from the date of acquisition. Amounts recognized for assets acquired and liabilities assumed are based on preliminary purchase price allocations and on certain management judgments. These preliminary allocations are based on an analysis of the estimated fair values of assets acquired and liabilities assumed, including identifiable tangible assets, and estimates of the useful lives of tangible assets. The final purchase price allocations will be completed after we finalize our third-party appraisal, review all available data, and complete our own internal assessments. We expect to complete our final purchase price allocations by the end of June 2015. Any additional adjustments resulting from finalization of the purchase price allocations for BMG will affect the amount assigned to goodwill. The goodwill from this acquisition is not deductible for tax purposes.

As of March 31, 2015, we recorded the following purchase price allocation for the identifiable tangible and intangible assets and liabilities of BMG:

(In thousands)
Consideration:
Cash paid at closing	$	57,042
Deferred consideration	5,290
Estimated closing adjustments payable	948
Fair value of consideration	$	63,280
Identifiable assets acquired and liabilities assumed:
Cash acquired	$	9,027
Accounts receivable	88
Inventory	3,156
Other assets	444
Property and equipment	14,862
Accounts payable and accrued expenses	(1,581		)
Deferred tax liability, net	(3,293		)
Total identifiable net assets	22,703
Goodwill	40,577
Total allocated purchase price	$	63,280

The following unaudited pro forma information is based on historical data, and gives effect to our acquisition of BMG as if the acquisition had occurred on January 1, 2014. These unaudited pro forma results include adjustments having a continuing impact on our consolidated statements of income. These adjustments consist of: elimination of intercompany sales/purchase transactions and the related profit, adjustments to depreciation for the fair value and depreciable lives of property and equipment, adjustments in the capitalization of overhead costs and adjustments to tax expense based on consolidated pro forma results. These results have been prepared using assumptions our management believes are reasonable, are not necessarily indicative of the actual results that would have occurred if the acquisition had occurred on January 1, 2014, and are not necessarily indicative of the results that may be achieved in the future, including but not limited to operating synergies that we may realize as a result of the acquisition.

	Three Months Ended
(In thousands)	March 31, 2015		March 31, 2014
	(unaudited pro forma)
Net sales	$	131,702	$	114,314
Net income	24,608		21,105
Earnings per share:
Basic	$	0.26	$	0.23
Diluted	$	0.26	$	0.22

On October 23, 2014, we entered into an equity interest purchase agreement with Transplant Technologies of Texas, Ltd. (“TTOT”), an allograft tissue processor located in San Antonio, Texas, pursuant to which we acquired 100% of the equity interests for $36.1 million. In addition to the initial purchase price, we may be obligated to make milestone payments of up to $15.0 million over the next three years based primarily on sales thresholds from the product lines we acquired. We accounted for the acquisition under the purchase method of accounting in the fourth quarter of 2014. We completed our final purchase price allocation during March 2015 and the final purchase price adjustments subsequent to December 31, 2014 were not material.

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RELATED-PARTY TRANSACTIONS (Tables)

3 Months Ended

Mar. 31, 2015

Related Party Transactions [Abstract]

Schedule of Related-Party Transactions

We have purchased the following amounts of products and services from BMG:

	Period Ended		Three Months Ended
(In thousands)	March 11, 2015		March 31, 2014
Purchases from related-party supplier	$	5,304	$	4,850

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INVENTORIES (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw Materials	$ 10,514	$ 8,847
Work in process	5,452	2,490
Finished goods	82,981	79,608
Total inventories	$ 98,947	$ 90,945

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RELATED-PARTY TRANSACTIONS (Details) (USD $) In Thousands, unless otherwise specified	2 Months Ended	3 Months Ended
	Mar. 11, 2015	Mar. 31, 2014	Mar. 31, 2015	Dec. 31, 2014
Related Party Transactions [Abstract]
Accounts payable to related-party	$ 5,200		$ 0	$ 5,359
Purchases from related-party supplier	$ 5,304	$ 4,850

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 75,006	$ 82,265
Restricted cash	23,370	23,370
Short-term marketable securities	138,274	146,439
Accounts receivable, net of allowances of $1,567 and $1,647, respectively	73,174	75,430
Inventories	98,947	90,945
Prepaid expenses and other current assets	5,054	5,742
Income taxes receivable	529	5,772
Deferred income taxes	41,341	40,062
Total current assets	455,695	470,025
Property and equipment, net of accumulated depreciation of $123,430 and $118,544, respectively	87,916	69,475
Long-term marketable securities	71,513	75,347
Intangible assets, net	34,342	34,529
Goodwill	93,573	53,196
Other assets	1,090	975
Total assets	744,129	703,547
LIABILITIES AND EQUITY
Accounts payable	19,384	15,904
Accounts payable to related-party	0	5,359
Accrued expenses	57,817	61,499
Income taxes payable	9,557	569
Business acquisition liabilities, current	6,553	6,081
Total current liabilities	93,311	89,412
Business acquisition liabilities, net of current portion	25,802	20,195
Deferred income taxes	7,520	5,166
Other liabilities	3,332	3,320
Total liabilities	129,965	118,093
Commitments and contingencies (Note 12)
Equity:
Additional paid-in capital	179,482	175,242
Accumulated other comprehensive loss	(1,835)	(1,657)
Retained earnings	436,422	411,774
Total equity	614,164	585,454
Total liabilities and equity	744,129	703,547
Class A Common
Equity:
Common stock	71	71
Class B Common
Equity:
Common stock	$ 24	$ 24

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EQUITY Stockholders' Equity Rollforward (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Increase (Decrease) in Stockholders' Equity
Total equity, beginning of period	$ 585,454
Net income	24,648	21,139
Stock-based compensation	2,131
Exercise of stock options	1,425
Excess tax benefit of nonqualified stock options	684
Other comprehensive loss	(178)	(2)
Total equity, end of period	$ 614,164

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income	$ 24,648	$ 21,139
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,674	5,297
Amortization of premium on marketable securities	640	801
Provision for excess and obsolete inventories	2,529	1,813
Stock-based compensation	2,131	1,927
Allowance for doubtful accounts	47	89
Change in deferred income taxes	(2,217)	(2,415)
(Increase)/decrease in:
Accounts receivable	1,888	(812)
Inventories	(7,361)	(3,993)
Prepaid expenses and other assets	896	(562)
Increase/(decrease) in:
Accounts payable	835	(1,096)
Accounts payable to related-party	(5,359)	1,184
Accrued expenses and other liabilities	(3,904)	(2,015)
Income taxes payable/receivable	14,223	7,875
Net cash provided by operating activities	34,670	29,232
Cash flows from investing activities:
Purchases of marketable securities	(72,874)	(75,343)
Maturities of marketable securities	64,574	46,250
Sales of marketable securities	19,764	14,280
Purchases of property and equipment	(7,228)	(6,164)
Acquisition of businesses, net of cash acquired	(48,015)	0
Net cash used in investing activities	(43,779)	(20,977)
Cash flows from financing activities:
Payment of business acquisition liabilities	(300)	(200)
Proceeds from issuance of common stock	1,425	3,855
Excess tax benefit related to nonqualified stock options	684	2,786
Net cash provided by financing activities	1,809	6,441
Effect of foreign exchange rate on cash	41	(56)
Net increase/(decrease) in cash and cash equivalents	(7,259)	14,640
Cash and cash equivalents, beginning of period	82,265	89,962
Cash and cash equivalents, end of period	75,006	104,602
Supplemental disclosures of cash flow information:
Interest paid	0	13
Income taxes paid	$ 509	$ 3,168

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ACQUISITIONS (Details) (USD $)	12 Months Ended	3 Months Ended
	Dec. 31, 2014	Mar. 31, 2015	Mar. 11, 2015	Oct. 23, 2014
Business Acquisition
Accounts payable to related-party	$ 5,359,000	$ 0	$ 5,200,000
Goodwill	53,196,000	93,573,000
Acquisition 2014
Business Acquisition
Payments to Acquire Businesses, Gross	36,100,000
Range of undiscounted aggregate contingent consideration from acquisitions, maximum				15,000,000
Acquisition 2015
Business Acquisition
Payments to Acquire Businesses, Gross		57,042,000
Deferred consideration		5,290,000
Estimated closing adjustments payable		948,000
Related party ownership percentage			49.00%
Cash acquired			9,027,000
Accounts receivable			88,000
Inventory			3,156,000
Other assets			444,000
Property and equipment			14,862,000
Accounts payable and accrued expenses			(1,581,000)
Deferred tax liability, net			(3,293,000)
Total identifiable net assets			22,703,000
Goodwill			40,577,000
Total allocated purchase price			$ 63,280,000

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ACQUISITIONS (Tables)

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

As of March 31, 2015, we recorded the following purchase price allocation for the identifiable tangible and intangible assets and liabilities of BMG:

(In thousands)
Consideration:
Cash paid at closing	$	57,042
Deferred consideration	5,290
Estimated closing adjustments payable	948
Fair value of consideration	$	63,280
Identifiable assets acquired and liabilities assumed:
Cash acquired	$	9,027
Accounts receivable	88
Inventory	3,156
Other assets	444
Property and equipment	14,862
Accounts payable and accrued expenses	(1,581		)
Deferred tax liability, net	(3,293		)
Total identifiable net assets	22,703
Goodwill	40,577
Total allocated purchase price	$	63,280

Business Acquisition, Pro Forma Information

These results have been prepared using assumptions our management believes are reasonable, are not necessarily indicative of the actual results that would have occurred if the acquisition had occurred on January 1, 2014, and are not necessarily indicative of the results that may be achieved in the future, including but not limited to operating synergies that we may realize as a result of the acquisition.

	Three Months Ended
(In thousands)	March 31, 2015		March 31, 2014
	(unaudited pro forma)
Net sales	$	131,702	$	114,314
Net income	24,608		21,105
Earnings per share:
Basic	$	0.26	$	0.23
Diluted	$	0.26	$	0.22

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ACQUISITIONS Proforma (Details) (Acquisition 2015, USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Acquisition 2015
Net sales	$ 131,702	$ 114,314
Net income	$ 24,608	$ 21,105
Basic	$ 0.26	$ 0.23
Diluted	$ 0.26	$ 0.22

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MARKETABLE SECURITIES (Tables)

3 Months Ended

Mar. 31, 2015

Marketable Securities [Abstract]

Marketable Securities

The composition of our short-term and long-term marketable securities is as follows:

		March 31, 2015
(In thousands)	Contractual Maturity (in years)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term:
Municipal bonds	Less than 1	$	38,065	$	6	$	(11	)	$	38,060
Corporate debt securities	Less than 1	57,622		18		(13		)	57,627
Commercial paper	Less than 1	37,420		9		—			37,429
Securities of U.S. government-sponsored agencies	Less than 1	2,999		1		—			3,000
Asset-backed securities	Less than 1	2,159		—		(1		)	2,158
Total short-term marketable securities		$	138,265	$	34	$	(25	)	$	138,274
Long-term:
Municipal bonds	1-2	$	27,150	$	4	$	(35	)	$	27,119
Corporate debt securities	1-2	16,863		13		(2		)	16,874
Asset-backed securities	1-2	19,921		9		(3		)	19,927
Securities of U.S. government-sponsored agencies	1-2	7,586		7		—			7,593
Total long-term marketable securities		$	71,520	$	33	$	(40	)	$	71,513

		December 31, 2014
(In thousands)	Contractual Maturity (in years)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term:
Municipal bonds	Less than 1	$	28,684	$	2	$	(3	)	$	28,683
Corporate debt securities	Less than 1	73,066		7		(42		)	73,031
Commercial paper	Less than 1	44,663		8		—			44,671
Asset-backed securities	Less than 1	54		—		—			54
Total short-term marketable securities		$	146,467	$	17	$	(45	)	$	146,439
Long-term:
Municipal bonds	1-2	$	26,005	$	3	$	(36	)	$	25,972
Corporate debt securities	1-2	19,617		3		(22		)	19,598
Asset-backed securities	1-2	21,236		1		(8		)	21,229
Securities of U.S. government-sponsored agencies	1-2	8,564		—		(16		)	8,548
Total long-term marketable securities		$	75,422	$	7	$	(82	)	$	75,347

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BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2015

BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Background and Summary of Significant Accounting Policies

BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) The Company

Globus Medical, Inc., together with its subsidiaries, is a medical device company focused on the design, development and commercialization of musculoskeletal implants. We are currently focused on implants that promote healing in patients with spine disorders. We are an engineering-driven company with a history of rapidly developing and commercializing advanced products and procedures that assist surgeons in effectively treating their patients, respond to evolving surgeon needs and address new treatment options. Since our inception in 2003, we have launched over 130 products and offer a product portfolio addressing a broad array of spinal pathologies.

We are headquartered in Audubon, Pennsylvania, and market and sell our products through our exclusive sales force in the United States, as well as within North, Central & South America, Europe, Asia, Africa and Australia. Our sales force consists of direct sales representatives and distributor sales representatives employed by exclusive independent distributors.

The terms “the Company,” “Globus,” “we,” “us” and “our” refer to Globus Medical, Inc. and, where applicable, our consolidated subsidiaries.

(b) Basis of Presentation

The accompanying interim unaudited condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial statements and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in complete financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2014.

In the opinion of management, the statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of our financial position and of the results for the three-month periods presented. The results of operations for any interim period are not indicative of results for the full year. Certain reclassifications have been made to prior period statements to conform to the current year presentation.

(c) Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Globus and its wholly-owned subsidiaries. Our consolidation policy requires the consolidation of entities where a controlling financial interest is held. All intercompany balances and transactions are eliminated in consolidation.

(d) Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates, in part, on historical experience that management believes to be reasonable under the circumstances. Actual results could differ materially from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary.

Significant areas that require management’s estimates include intangible assets, contingent payment liabilities, allowance for doubtful accounts, stock-based compensation, provision for excess and obsolete inventory, useful lives of assets, the outcome of litigation, and income taxes. We are subject to risks and uncertainties due to changes in the healthcare environment, regulatory oversight, competition, and legislation that may cause actual results to differ from estimated results.

(e) Restricted Cash

In December 2014, we set aside $23.4 million in cash for the payment of a portion of the Synthes and Bianco litigations. We classified this cash as restricted, as the amount was placed in escrow to be used for payment of the litigation obligations, should we not be successful with our appeals. See “Note 12. Commitments and Contingencies” below for more details regarding these litigations.

(f) Marketable Securities

Our marketable securities include municipal bonds, corporate debt securities, commercial paper, securities of U.S. government-sponsored agencies and asset-backed securities, and are classified as available-for-sale as of March 31, 2015. Available-for-sale securities are recorded at fair value in both short-term and long-term marketable securities on our consolidated balance sheets. The change in fair value for available-for-sale securities is recorded, net of taxes, as a component of accumulated other comprehensive income on our consolidated balance sheets. Premiums and discounts are recognized over the life of the related security as an adjustment to yield using the straight-line method. Realized gains or losses from the sale of our marketable securities are determined on a specific identification basis. Realized gains and losses, along with interest income and the amortization/accretion of premiums/discounts are included as a component of other income, net, on our consolidated statements of income. Interest receivable is recorded as a component of prepaid expenses and other current assets on our consolidated balance sheets.

We maintain a portfolio of various holdings, types and maturities, though most of the securities in our portfolio could be liquidated at minimal cost at any time. We invest in securities that meet or exceed standards as defined in our investment policy. Our policy also limits the amount of credit exposure to any one issue, issuer or type of security. We review our securities for other-than-temporary impairment at each reporting period. If an unrealized loss for any security is considered to be other-than-temporary, the loss will be recognized in our consolidated statement of income in the period the determination is made.

(g) Inventories

Inventories are stated at the lower of cost or market. Cost is determined on a first-in, first-out basis. The majority of our inventories are finished goods as we mainly utilize third-party suppliers to source our products. We periodically evaluate the carrying value of our inventories in relation to our estimated forecast of product demand, which takes into consideration the estimated life cycle of product releases. When quantities on hand exceed estimated sales forecasts, we record a reserve for such excess inventories.

(h) Revenue Recognition

Revenue is recognized when persuasive evidence of an arrangement exists, product delivery has occurred, pricing is fixed or determinable, and collection is reasonably assured. A significant portion of our revenue is generated from consigned inventory maintained at hospitals or with sales representatives. For these products, revenue is recognized at the time the product is used or implanted. For all other transactions, we recognize revenue when title to the goods and risk of loss transfer to customers, provided there are no remaining performance obligations that will affect the customer’s final acceptance of the sale. Our policy is to classify shipping and handling costs billed to customers as sales and the related expenses as cost of goods sold.

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Consolidated Balance Sheets (Parentheticals) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Current Assets:
Allowance for doubtful accounts	$ 1,567	$ 1,647
Property, Plant and Equipment, Net
Accumulated depreciation	$ 123,430	$ 118,544
Equity:
Common stock, shares authorized	785,000,000
Common stock, shares issued	94,899,983	94,705,743
Common stock, shares outstanding	94,899,983	94,705,743
Class A Common
Equity:
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	71,022,427	70,828,187
Common stock, shares outstanding	71,022,427	70,828,187
Class B Common
Equity:
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	275,000,000	275,000,000
Common stock, shares issued	23,877,556	23,877,556
Common stock, shares outstanding	23,877,556	23,877,556

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INCOME TAXES

3 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

In computing our income tax provision, we make certain estimates and management judgments, such as estimated annual taxable income or loss, annual effective tax rate, the nature and timing of permanent and temporary differences between taxable income for financial reporting and tax reporting, and the recoverability of deferred tax assets. Our estimates and assumptions may change as new events occur, additional information is obtained, or as the tax environment changes. Should facts and circumstances change during a quarter causing a material change to the estimated effective income tax rate, a cumulative adjustment is recorded.

	Three Months Ended
	March 31, 2015		March 31, 2014
Effective income tax rate	35.4	%	34.9	%

The nominal change in the effective income tax rate between the current year and prior year periods is due primarily to changes in the components of taxable income.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 20, 2015
Document Information
Entity Registrant Name	GLOBUS MEDICAL INC
Entity Central Index Key	0001237831
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		94,908,608

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

We are involved in a number of proceedings, legal actions, and claims. Such matters are subject to many uncertainties, and the outcomes of these matters are not within our control and may not be known for prolonged periods of time. In some actions, the claimants seek damages, as well as other relief, including injunctions prohibiting us from engaging in certain activities, which, if granted, could require significant expenditures and/or result in lost revenues. We record a liability in the consolidated financial statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. In most cases, significant judgment is required to estimate the amount and timing of a loss to be recorded. While it is not possible to predict the outcome for most of the matters discussed, we believe it is possible that costs associated with them could have a material adverse impact on our consolidated earnings, financial position or cash flows.

N-Spine, Synthes and DePuy Synthes Litigation

In April 2010, N-Spine, Inc. and Synthes USA Sales, LLC filed suit against us in the U.S. District Court for the District of Delaware for patent infringement. N-Spine, the patent owner, and Synthes USA, a licensee of the subject patent, allege that we infringe one or more claims of the patent by making, using, offering for sale or selling our TRANSITION^® stabilization system product. N-Spine and Synthes USA seek injunctive relief and an unspecified amount in damages. We intend to defend our rights vigorously. This matter was stayed on July 14, 2011 pending the resolution of an inter partes reexamination on the asserted patent granted by the U.S. Patent and Trademark Office (“USPTO”) in February 2011. In December 2011, the examiner withdrew the original grounds of rejection of the asserted patent and we have appealed the examiner’s decision. In January 2014, the USPTO ruled on the appeal finding certain claims rejected in view of the prior art and affirming certain other claims. The probable outcome of this litigation cannot be determined, nor can we estimate a range of potential loss. Therefore, in accordance with authoritative guidance on the evaluation of loss contingencies, we have not recorded an accrual related to this litigation.

In a related matter, on January 8, 2014, Depuy Synthes Products, LLC (“Depuy Synthes”) filed suit against us in the U.S. District Court for the District of Delaware for patent infringement. Depuy Synthes alleges that we infringe one or more claims of the asserted patent by making, using, offering for sale or selling our TRANSITION^® stabilization system product. Depuy Synthes seeks injunctive relief and an unspecified amount in damages. We intend to defend our rights vigorously. The probable outcome of this litigation cannot be determined, nor can we estimate a range of potential loss. Therefore, in accordance with authoritative guidance on the evaluation of loss contingencies, we have not recorded an accrual related to this litigation.

Synthes USA, LLC, Synthes USA Products, LLC and Synthes USA Sales, LLC Litigation

In July 2011, Synthes USA, LLC, Synthes USA Products, LLC and Synthes USA Sales, LLC filed suit against us in the U.S. District Court for the District of Delaware for patent infringement. Synthes USA LLC, the patent owner, Synthes USA Products, LLC, a licensee to manufacture products of the subject patents, and Synthes USA Sales LLC, a licensee to sell products of the subject patents, allege that we infringed one or more claims of three patents by making, using, offering for sale or selling our COALITION^®, INDEPENDENCE^® and INTERCONTINENTAL^® products. As a result of the acquisition of Synthes, Inc. by Johnson & Johnson, a motion was filed to change the plaintiff in this matter to DePuy Synthes in February 2013. On June 14, 2013, the jury in this case returned a verdict, finding that prior versions of the three products we previously sold did infringe on DePuy Synthes’ patents and awarding monetary damages in the amount of $16.0 million. The jury also upheld the validity of DePuy Synthes’ patents. There was no finding of willful infringement by Globus.

This verdict does not impact our ability to conduct our business or have any material impact on our future revenues. As this lawsuit involved only three products that are no longer part of our product portfolio, this verdict is not expected to impair our ability to sell any of our future products.

We believe the facts and the law do not support the jury’s findings of infringement and patent validity and are seeking to overturn the verdict through the appeals process.

For the year ended December 31, 2013, we recorded $19.5 million in damages and other litigation-related costs related to this case, of which $1.3 million was included in provision for litigation - cost of goods sold (due to a write off of certain inventory which will not be sold due to the verdict) and $18.2 million was included in provision for litigation (operating expense). During the year ended December 31, 2014, we accrued an additional $0.6 million in interest included in provision for litigation related to this litigation.

L5 Litigation

In December 2009, we filed suit in the Court of Common Pleas of Montgomery County, Pennsylvania against our former exclusive independent distributor L5 Surgical, LLC and its principals, seeking an injunction and declaratory judgment concerning certain restrictive covenants made to L5 by its sales representatives. L5 brought counterclaims against us alleging tortious interference, unfair competition and conspiracy. The injunction phase was resolved in September 2010, and this matter is now in the discovery phase of litigation on the underlying damages claims. We intend to defend our rights vigorously. The probable outcome of this litigation cannot be determined, nor can we estimate a range of potential loss. Therefore, in accordance with authoritative guidance on the evaluation of loss contingencies, we have not recorded an accrual related to this litigation.

NuVasive Litigation

In October 2010, NuVasive, Inc. filed suit against us in the U.S. District Court for the District of Delaware for patent infringement. NuVasive, the patent owner, alleges that we infringe one or more claims of three patents by making, using, offering for sale or selling our MARS 3V^™ retractor for use in certain lateral fusion procedures. NuVasive sought injunctive relief and an unspecified amount in damages. This matter was settled on February 12, 2015 for an undisclosed amount that was not material.

NuVasive Employee Litigation

We have hired several employees who were formerly employed by NuVasive, Inc. In July 2011, NuVasive filed suit against us in the District Court of Travis County, Texas alleging that our hiring of one named former employee and other unnamed former employees constitutes tortious interference with its contracts with those employees, and with prospective business relationships, as well as aiding and abetting the breach of fiduciary duty. NuVasive sought compensatory damages, permanent injunction, punitive damages and attorneys’ fees. This matter was settled on February 12, 2015 for an undisclosed amount that was not material.

Bianco Litigation

On March 21, 2012, Sabatino Bianco filed suit against us in the Federal District Court for the Eastern District of Texas claiming that we misappropriated his trade secret and confidential information and improperly utilized it in developing our CALIBER^® product. Bianco alleges that we engaged in misappropriation of trade secrets, breach of contract, unfair competition, fraud and theft and seeks correction of inventorship, injunctive relief and exemplary damages. On April 20, 2012, Bianco filed a motion for a preliminary injunction, seeking to enjoin us from making, using, selling, importing or offering for sale our CALIBER^® product. On November 15, 2012, the court denied Bianco’s motion for preliminary injunction. On October 1, 2013, Bianco amended his complaint to claim that his trade secrets and confidential information were also used improperly in developing our RISE^® and CALIBER-L^® products.

On January 17, 2014, the jury in this case returned a verdict in favor of Bianco on a claim of misappropriation of trade secret. We accrued the verdict amount of $4.3 million as of December 31, 2013. The jury found against Bianco on the claims of breach of contract and disgorgement of profits. The court granted our motion for judgment as a matter of law and dismissed Bianco’s claims for unfair competition, fraud, and exemplary damages, and Bianco abandoned the claim of misappropriation of confidential information. Bianco’s claims of correction of inventorship, unjust enrichment, and permanent injunctive relief were not submitted to the jury. On March 7, 2014, the court denied Bianco’s claim for correction of inventorship and ruled he is not entitled to be named as a co-inventor on any of the patents at issue, and also denied his claim for unjust enrichment. On March 17, 2014, the court denied Bianco’s claim for permanent injunctive relief. On July 2, 2014, the court awarded Bianco an ongoing royalty of 5% of the net sales of the CALIBER^®, CALIBER^®-L, and RISE^® products, or products that are not colorably different from those products, for a fifteen year period on sales starting on January 18, 2014. The court entered final judgment on the jury verdict on July 17, 2014. Post-trial motions were denied on October 27, 2014 and the matter is currently on appeal.

We do not expect the verdict to impact our ability to conduct our business or to have any material impact on our future revenues. We believe the facts and the law do not support the jury’s findings of misappropriation of trade secret and are seeking to overturn the verdict through the appeals process.

Altus Partners, LLC Litigation

On February 20, 2013, Altus Partners, LLC filed suit against us in the U.S. District Court for the Eastern District of Pennsylvania for patent infringement. On April 7, 2014, we settled the litigation with Altus Partners and recognized a provision for litigation of $2.0 million.

Bonutti Skeletal Innovations, LLC Litigation

On November 19, 2014, Bonutti Skeletal Innovations, LLC filed suit against us in the U.S. District Court for the Eastern District of Pennsylvania for patent infringement. Bonutti Skeletal, a non-practicing entity, alleges that Globus willfully infringes one or more claims of six patents by making, using, offering for sale or selling the CALIBER^®, CALIBER^®-L, COALITION^®, CONTINENTAL^®, FORGE^®, FORTIFY^®, INDEPENDENCE^®, INTERCONTINENTAL^®, MONUMENT^®, NIKO^®, RISE^®, SIGNATURE^®, SUSTAIN^®, and TRANSCONTINENTAL^® products. Bonutti Skeletal seeks an unspecified amount in damages and injunctive relief. The probable outcome of this litigation cannot be determined, nor can we estimate a range of potential loss. Therefore, in accordance with authoritative guidance on the evaluation of loss contingencies, we have not recorded an accrual related to this litigation.

Flexuspine, Inc. Litigation

On March 11, 2015, Flexuspine, Inc. filed suit against us in the U.S. District Court for the Eastern District of Texas for patent infringement. Flexuspine, Inc. alleges that Globus willfully infringes one or more claims of five patents by making, using, offering for sale or selling the CALIBER^®, CALIBER^®-L, RISE^®, RISE^®-L, RISE^® INTRALIF^®, and ALTERA^® products. Flexuspine seeks an unspecified amount in damages and injunctive relief. The probable outcome of this litigation cannot be determined, nor can we estimate a range of potential loss. Therefore, in accordance with authoritative guidance on the evaluation of loss contingencies, we have not recorded an accrual related to this litigation.

In addition, we are subject to legal proceedings arising in the ordinary course of business.

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Consolidated Statements of Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Sales	$ 131,604	$ 114,210
Cost of goods sold	32,107	25,312
Gross profit	99,497	88,898
Operating expenses:
Research and development	8,656	7,443
Selling, general and administrative	52,289	46,678
Provision for litigation	32	2,535
Total operating expenses	60,977	56,656
Operating Income	38,520	32,242
Interest income, net	278	201
Foreign currency transaction loss	(677)	(30)
Other income	52	74
Total other income/(expense), net	(347)	245
Income before income taxes	38,173	32,487
Income tax provision	13,525	11,348
Net Income	$ 24,648	$ 21,139
Earnings per share:
Basic	$ 0.26	$ 0.23
Diluted	$ 0.26	$ 0.22
Weighted average shares outstanding:
Basic	94,788	93,715
Dilutive stock options	1,117	1,457
Diluted	95,905	95,172
Anti-dilutive stock equivalents excluded from weighted average calculation	2,721	1,235

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INVENTORIES

3 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

(In thousands)	March 31, 2015		December 31, 2014
Raw materials	$	10,514	$	8,847
Work in process	5,452		2,490
Finished goods	82,981		79,608
Total inventories	$	98,947	$	90,945

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FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Under the accounting for fair value measurements and disclosures, fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or the liability in an orderly transaction between market participants on the measurement date. Additionally, a fair value hierarchy was established that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable inputs. The level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Our assets and liabilities measured at fair value on a recurring basis are classified and disclosed in one of the following three categories:

Level 1—quoted prices (unadjusted) in active markets for identical assets and liabilities;

Level 2—observable inputs other than quoted prices in active markets for identical assets and liabilities; and

Level 3—unobservable inputs in which there is little or no market data available, which require the reporting entity to use significant unobservable inputs or valuation techniques.

The fair value of our assets and liabilities measured at fair value on a recurring basis was as follows:

	Balance at
(In thousands)	March 31, 2015		Level 1		Level 2		Level 3
Assets
Cash equivalents	$	12,475	$	375	$	12,100	$	—
Municipal bonds	65,179		—		65,179		—
Corporate debt securities	74,501		—		74,501		—
Commercial paper	37,429		—		37,429		—
Asset-backed securities	22,085		—		22,085		—
Securities of U.S. government-sponsored agencies	10,593		—		10,593		—
Liabilities
Contingent consideration	24,843		—		—		24,843

	Balance at
(In thousands)	December 31, 2014		Level 1		Level 2		Level 3
Assets
Cash equivalents	$	9,802	$	1,302	$	8,500	$	—
Municipal bonds	54,655		—		54,655		—
Corporate debt securities	92,629		—		92,629		—
Commercial paper	44,671		—		44,671		—
Asset-backed securities	21,283		—		21,283		—
Securities of U.S. government-sponsored agencies	8,548		—		8,548		—
Liabilities
Contingent consideration	24,335		—		—		24,335

Contingent consideration represents our contingent milestone, performance and revenue-sharing payment obligations related to our acquisitions and is measured at fair value, based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The valuation of contingent consideration uses assumptions we believe would be made by a market participant. We assess these estimates on an ongoing basis as additional data impacting the assumptions is obtained. Changes in the fair value of contingent consideration related to updated assumptions and estimates are recognized within research and development and selling, general and administrative expenses in the consolidated statements of income.

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INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2015

Intangible Assets Disclosure [Abstract]

Intangible Assets Acquired as Part of Business Combination

A summary of intangible assets is presented below:

		March 31, 2015
(In thousands)	Weighted Average Amortization Period (in years)	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, net
In-process research & development	—	$	24,560	$	—		$	24,560
Supplier network	10.0	4,000		(167		)	3,833
Customer relationships & other intangibles	7.3	5,525		(1,616		)	3,909
Patents	17.0	2,420		(380		)	2,040
Total intangible assets		$	36,505	$	(2,163	)	$	34,342

		December 31, 2014
(In thousands)	Weighted Average Amortization Period (in years)	Gross Carrying Amount		Accumulated Amortization			Intangible Assets, net
In-process research & development	—	$	24,560	$	—		$	24,560
Supplier network	10.0	3,800		(88		)	3,712
Customer relationships & other intangibles	7.3	5,525		(1,344		)	4,181
Patents	17.0	2,420		(344		)	2,076
Total intangible assets		$	36,305	$	(1,776	)	$	34,529

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RELATED-PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2015

Related Party Transactions [Abstract]

Related-Party Transactions

RELATED-PARTY TRANSACTIONS

Prior to March 11, 2015, we had contracted with BMG, which at the time was a related-party manufacturer. We have purchased the following amounts of products and services from BMG:

	Period Ended		Three Months Ended
(In thousands)	March 11, 2015		March 31, 2014
Purchases from related-party supplier	$	5,304	$	4,850

On March 11, 2015, BMG was acquired by Globus, and therefore as of March 31, 2015, there are no further amounts payable to BMG. As of December 31, 2014, we had $5.4 million of accounts payable due to BMG. The amount payable to BMG on the date of acquisition of $5.2 million was settled in connection with the acquisition.

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EQUITY

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Equity

EQUITY

Our amended and restated Certificate of Incorporation provides for a total of 785,000,000 authorized shares of common stock. Of the authorized number of shares of common stock, 500,000,000 shares are designated as Class A common stock (“Class A Common”), 275,000,000 shares are designated as Class B common stock (“Class B Common”) and 10,000,000 shares are designated as Class C common stock (“Class C Common”).

Our issued and outstanding common shares by Class were as follows:

(Shares)	Class A Common	Class B Common	Total
March 31, 2015	71,022,427	23,877,556	94,899,983
December 31, 2014	70,828,187	23,877,556	94,705,743

The following table summarizes changes in total equity:

	Three Months Ended
(In thousands)	March 31, 2015
Total equity, beginning of period	$	585,454
Net income	24,648
Stock-based compensation	2,131
Exercise of stock options	1,425
Excess tax benefit of nonqualified stock options	684
Other comprehensive loss	(178		)
Total equity, end of period	$	614,164

The tables below present the changes in each component of accumulated other comprehensive income/(loss), including current period other comprehensive income/(loss) and reclassifications out of accumulated other comprehensive income/(loss):

(In thousands)	Unrealized gain/(loss) on marketable securities, net of tax			Foreign currency translation adjustments			Accumulated other comprehensive loss
Accumulated other comprehensive loss, net of tax, at December 31, 2014	$	(64	)	$	(1,593	)	$	(1,657	)
Other comprehensive income/(loss) before reclassifications	64			(243		)	(179		)
Amounts reclassified from accumulated other comprehensive income, net of tax	1			—			1
Other comprehensive income/(loss), net of tax	65			(243		)	(178		)
Accumulated other comprehensive income/(loss), net of tax, at March 31, 2015	$	1		$	(1,836	)	$	(1,835	)

(In thousands)	Unrealized gain/(loss) on marketable securities, net of tax			Foreign currency translation adjustments			Accumulated other comprehensive loss
Accumulated other comprehensive income/(loss), net of tax, at December 31, 2013	$	32		$	(1,041	)	$	(1,009	)
Other comprehensive loss before reclassifications	(5		)	(3		)	(8		)
Amounts reclassified from accumulated other comprehensive loss, net of tax	6			—			6
Other comprehensive income/(loss), net of tax	1			(3		)	(2		)
Accumulated other comprehensive income/(loss), net of tax, at March 31, 2014	$	33		$	(1,044	)	$	(1,011	)

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ACCRUED EXPENSES

3 Months Ended

Mar. 31, 2015

Payables and Accruals [Abstract]

Accrued Expenses

ACCRUED EXPENSES

(In thousands)	March 31, 2015		December 31, 2014
Compensation and other employee-related costs	$	14,756	$	19,933
Legal and other settlements and expenses	27,042		27,686
Accrued non-income taxes	5,236		4,720
Other	10,783		9,160
Total accrued expenses	$	57,817	$	61,499

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DEBT

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Debt

DEBT

Line of Credit

In May 2011, we entered into a credit agreement with Wells Fargo Bank related to a revolving credit facility that provided for borrowings up to $50.0 million. At our request, and with the approval of the bank, the amount of borrowings available under the revolving credit facility can be increased to $75.0 million. The revolving credit facility includes up to a $25.0 million sub-limit for letters of credit. Cash advances bear interest at our option either at a fluctuating rate per annum equal to the daily LIBOR in effect for a one-month period plus 0.75%, or a fixed rate for a one- or three-month period equal to LIBOR plus 0.75%. The credit agreement governing the revolving credit facility also subjects us to various restrictive covenants, including the requirement to maintain maximum consolidated leverage. The covenants also include limitations on our ability to repurchase shares, to pay cash dividends or to enter into a sale transaction. As of March 31, 2015, we were in compliance with all covenants under the credit agreement, there were no outstanding borrowings under the revolving credit facility and available borrowings were $50.0 million. We may terminate the credit agreement at any time on ten days’ notice without premium or penalty.

Subsequent to March 31, 2015, we amended the above credit agreement with Wells Fargo Bank, extending the term of the revolving credit facility from May 2015 to May 2016. No other terms were modified.

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STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

We have three stock plans: our Amended and Restated 2003 Stock Plan, our 2008 Stock Plan, and our 2012 Equity Incentive Plan (the “2012 Plan”).  The 2012 Plan is the only remaining active stock plan. The purpose of these stock plans was, and the 2012 Plan is, to provide incentive to employees, directors, and consultants of Globus.  The Plans are administered by the Board of Directors of Globus (the “Board”) or its delegates. The number, type of option, exercise price, and vesting terms are determined by the Board or its delegates in accordance with the terms of the Plans. The options granted expire on a date specified by the Board, but generally not more than ten years from the grant date. Option grants to employees generally vest in varying installments over a four-year period.

The 2012 Plan was approved by our Board in March 2012, and by our stockholders in June 2012. Under the 2012 Plan, the aggregate number of shares of Class A Common stock that may be issued subject to options and other awards is equal to the sum of (i) 3,076,923 shares, (ii) any shares available for issuance under the 2008 Plan as of March 13, 2012, (iii) any shares underlying awards outstanding under the 2008 Plan as of March 13, 2012 that, on or after that date, are forfeited, terminated, expired or lapse for any reason, or are settled for cash without delivery of shares and (iv) starting January 1, 2013, an annual increase in the number of shares available under the 2012 Plan equal to up to 3% of the number of shares of our common and preferred stock outstanding at the end of the previous year, as determined by our Board. The number of shares that may be issued or transferred pursuant to incentive stock options under the 2012 Plan is limited to 10,769,230 shares. The shares of Class A Common stock covered by the 2012 Plan are authorized but unissued shares, treasury shares or shares of common stock purchased on the open market.

As of March 31, 2015, there were 4,958,899 shares of Class A Common stock available for future grants under the 2012 Plan.

The weighted average grant date per share fair values of the options awarded to employees were as follows:

	Three Months Ended
	March 31, 2015		March 31, 2014
Weighted average grant date per share fair value	$	9.42	$	10.34

Stock option activity during the three months ended March 31, 2015 is summarized as follows:  

	Option Shares(thousands)		Weighted average exercise price		Weighted average remaining contractual life (years)	Aggregate intrinsic value (thousands)
Outstanding at December 31, 2014	4,854		$	14.50
Granted	1,159		23.98
Exercised	(194	)	7.34
Forfeited	(98	)	16.23
Outstanding at March 31, 2015	5,721		$	16.63	7.6	$	49,236
Exercisable at March 31, 2015	2,569		$	10.77	5.7	$	37,164
Expected to vest at March 31, 2015	3,152		$	21.41	9.1	$	12,073

Compensation expense related to stock options granted to employees and non-employees under our stock plans and the intrinsic value of stock options exercised was as follows:

	Three Months Ended
(In thousands)	March 31, 2015		March 31, 2014
Compensation expense related to stock options	$	2,131	$	1,927
Intrinsic value of stock options exercised	3,260		11,283

As of March 31, 2015, there was $24.2 million of unrecognized compensation expense related to unvested employee stock options that are expected to vest over a weighted average period of three years.

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BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Summary of Significant Accounting Policies
Restricted cash	$ 23,370	$ 23,370
Minimum
Summary of Significant Accounting Policies
Number of Products Launched Since Inception	130

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INCOME TAXES (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Tax Disclosure [Abstract]
Effective income tax rate	35.40%	34.90%

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BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2015

BACKGROUND AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Principles of Consolidation

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Globus and its wholly-owned subsidiaries. Our consolidation policy requires the consolidation of entities where a controlling financial interest is held. All intercompany balances and transactions are eliminated in consolidation.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. We base our estimates, in part, on historical experience that management believes to be reasonable under the circumstances. Actual results could differ materially from those estimates. Estimates and assumptions are periodically reviewed and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary.

Significant areas that require management’s estimates include intangible assets, contingent payment liabilities, allowance for doubtful accounts, stock-based compensation, provision for excess and obsolete inventory, useful lives of assets, the outcome of litigation, and income taxes. We are subject to risks and uncertainties due to changes in the healthcare environment, regulatory oversight, competition, and legislation that may cause actual results to differ from estimated results.

Marketable Securities

Marketable Securities

Our marketable securities include municipal bonds, corporate debt securities, commercial paper, securities of U.S. government-sponsored agencies and asset-backed securities, and are classified as available-for-sale as of March 31, 2015. Available-for-sale securities are recorded at fair value in both short-term and long-term marketable securities on our consolidated balance sheets. The change in fair value for available-for-sale securities is recorded, net of taxes, as a component of accumulated other comprehensive income on our consolidated balance sheets. Premiums and discounts are recognized over the life of the related security as an adjustment to yield using the straight-line method. Realized gains or losses from the sale of our marketable securities are determined on a specific identification basis. Realized gains and losses, along with interest income and the amortization/accretion of premiums/discounts are included as a component of other income, net, on our consolidated statements of income. Interest receivable is recorded as a component of prepaid expenses and other current assets on our consolidated balance sheets.

We maintain a portfolio of various holdings, types and maturities, though most of the securities in our portfolio could be liquidated at minimal cost at any time. We invest in securities that meet or exceed standards as defined in our investment policy. Our policy also limits the amount of credit exposure to any one issue, issuer or type of security. We review our securities for other-than-temporary impairment at each reporting period. If an unrealized loss for any security is considered to be other-than-temporary, the loss will be recognized in our consolidated statement of income in the period the determination is made.

Inventories

Inventories

Inventories are stated at the lower of cost or market. Cost is determined on a first-in, first-out basis. The majority of our inventories are finished goods as we mainly utilize third-party suppliers to source our products. We periodically evaluate the carrying value of our inventories in relation to our estimated forecast of product demand, which takes into consideration the estimated life cycle of product releases. When quantities on hand exceed estimated sales forecasts, we record a reserve for such excess inventories.

Revenue Recognition

Revenue Recognition

Revenue is recognized when persuasive evidence of an arrangement exists, product delivery has occurred, pricing is fixed or determinable, and collection is reasonably assured. A significant portion of our revenue is generated from consigned inventory maintained at hospitals or with sales representatives. For these products, revenue is recognized at the time the product is used or implanted. For all other transactions, we recognize revenue when title to the goods and risk of loss transfer to customers, provided there are no remaining performance obligations that will affect the customer’s final acceptance of the sale. Our policy is to classify shipping and handling costs billed to customers as sales and the related expenses as cost of goods sold.

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INVENTORIES (Tables)

3 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

Schedule of Inventory

(In thousands)	March 31, 2015		December 31, 2014
Raw materials	$	10,514	$	8,847
Work in process	5,452		2,490
Finished goods	82,981		79,608
Total inventories	$	98,947	$	90,945

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STOCK-BASED COMPENSATION (Stock Option Activity) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding
Number of shares outstanding beginning balance	4,854
Number of shares granted	1,159
Number of shares exercised	(194)
Number of shares forfeited	(98)
Number of shares outstanding ending balance	5,721
Number of shares exercisable	2,569
Number of shares expected to vest	3,152
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price
Weighted average exercise price per share outstanding beginning balance	$ 14.50
Weighted average exercise price per share granted	$ 23.98
Weighted average exercise price per share exercised	$ 7.34
Weighted average exercise price per share forfeited	$ 16.23
Weighted average exercise price per share outstanding ending balance	$ 16.63
Weighted average exercise price per share exercisable	$ 10.77
Weighted average exercise price per share expected to vest	$ 21.41
Weighted average remaining contractual life outstanding	7 years 7 months 6 days
Weighted average remaining contractual life exercisable	5 years 8 months 12 days
Weighted average remaining contractual life expected to vest	9 years 1 month 6 days
Aggregate intrinsic value outstanding	$ 49,236
Aggregate intrinsic value exercisable	37,164
Aggregate intrinsic value expected to vest	$ 12,073

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ACCRUED EXPENSES (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Payables and Accruals [Abstract]
Compensation and other employee-related costs	$ 14,756	$ 19,933
Legal and other settlements and expenses	27,042	27,686
Accrued non-income taxes	5,236	4,720
Other	10,783	9,160
Total accrued expenses	$ 57,817	$ 61,499

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 24,648	$ 21,139
Other comprehensive income/(loss):
Unrealized gain on marketable securities, net of tax	65	1
Foreign currency translation loss	(243)	(3)
Total other comprehensive loss	(178)	(2)
Comprehensive Income	$ 24,470	$ 21,137

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MARKETABLE SECURITIES

3 Months Ended

Mar. 31, 2015

Marketable Securities [Abstract]

Marketable Securities

MARKETABLE SECURITIES

The composition of our short-term and long-term marketable securities is as follows:

		March 31, 2015
(In thousands)	Contractual Maturity (in years)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term:
Municipal bonds	Less than 1	$	38,065	$	6	$	(11	)	$	38,060
Corporate debt securities	Less than 1	57,622		18		(13		)	57,627
Commercial paper	Less than 1	37,420		9		—			37,429
Securities of U.S. government-sponsored agencies	Less than 1	2,999		1		—			3,000
Asset-backed securities	Less than 1	2,159		—		(1		)	2,158
Total short-term marketable securities		$	138,265	$	34	$	(25	)	$	138,274
Long-term:
Municipal bonds	1-2	$	27,150	$	4	$	(35	)	$	27,119
Corporate debt securities	1-2	16,863		13		(2		)	16,874
Asset-backed securities	1-2	19,921		9		(3		)	19,927
Securities of U.S. government-sponsored agencies	1-2	7,586		7		—			7,593
Total long-term marketable securities		$	71,520	$	33	$	(40	)	$	71,513

		December 31, 2014
(In thousands)	Contractual Maturity (in years)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Short-term:
Municipal bonds	Less than 1	$	28,684	$	2	$	(3	)	$	28,683
Corporate debt securities	Less than 1	73,066		7		(42		)	73,031
Commercial paper	Less than 1	44,663		8		—			44,671
Asset-backed securities	Less than 1	54		—		—			54
Total short-term marketable securities		$	146,467	$	17	$	(45	)	$	146,439
Long-term:
Municipal bonds	1-2	$	26,005	$	3	$	(36	)	$	25,972
Corporate debt securities	1-2	19,617		3		(22		)	19,598
Asset-backed securities	1-2	21,236		1		(8		)	21,229
Securities of U.S. government-sponsored agencies	1-2	8,564		—		(16		)	8,548
Total long-term marketable securities		$	75,422	$	7	$	(82	)	$	75,347

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ACCRUED EXPENSES (Tables)

3 Months Ended

Mar. 31, 2015

Payables and Accruals [Abstract]

Accrued Expenses

(In thousands)	March 31, 2015		December 31, 2014
Compensation and other employee-related costs	$	14,756	$	19,933
Legal and other settlements and expenses	27,042		27,686
Accrued non-income taxes	5,236		4,720
Other	10,783		9,160
Total accrued expenses	$	57,817	$	61,499

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MARKETABLE SECURITIES (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Short-term Marketable Securities
Schedule of Marketable Securities
Amortized Cost	138,265	146,467
Gross Unrealized Gains	34	17
Gross Unrealized Losses	(25)	(45)
Fair Value	138,274	146,439
Short-term Marketable Securities | Municipal Bonds
Schedule of Marketable Securities
Amortized Cost	38,065	28,684
Gross Unrealized Gains	6	2
Gross Unrealized Losses	(11)	(3)
Fair Value	38,060	28,683
Short-term Marketable Securities | Municipal Bonds | Maximum
Schedule of Marketable Securities
Contractual Maturity	1 year	1 year
Short-term Marketable Securities | Corporate Debt Securities
Schedule of Marketable Securities
Amortized Cost	57,622	73,066
Gross Unrealized Gains	18	7
Gross Unrealized Losses	(13)	(42)
Fair Value	57,627	73,031
Short-term Marketable Securities | Corporate Debt Securities | Maximum
Schedule of Marketable Securities
Contractual Maturity	1 year	1 year
Short-term Marketable Securities | Commercial Paper
Schedule of Marketable Securities
Amortized Cost	37,420	44,663
Gross Unrealized Gains	9	8
Gross Unrealized Losses	0	0
Fair Value	37,429	44,671
Short-term Marketable Securities | Commercial Paper | Maximum
Schedule of Marketable Securities
Contractual Maturity	1 year	1 year
Short-term Marketable Securities | Asset-backed Securities
Schedule of Marketable Securities
Amortized Cost	2,159	54
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(1)	0
Fair Value	2,158	54
Short-term Marketable Securities | Asset-backed Securities | Maximum
Schedule of Marketable Securities
Contractual Maturity	1 year	1 year
Short-term Marketable Securities | Securities of U.S. government-sponsored agencies
Schedule of Marketable Securities
Amortized Cost	2,999
Gross Unrealized Gains	1
Gross Unrealized Losses	0
Fair Value	3,000
Short-term Marketable Securities | Securities of U.S. government-sponsored agencies | Maximum
Schedule of Marketable Securities
Contractual Maturity	1 year
Long-term Marketable Securities
Schedule of Marketable Securities
Amortized Cost	71,520	75,422
Gross Unrealized Gains	33	7
Gross Unrealized Losses	(40)	(82)
Fair Value	71,513	75,347
Long-term Marketable Securities | Municipal Bonds
Schedule of Marketable Securities
Amortized Cost	27,150	26,005
Gross Unrealized Gains	4	3
Gross Unrealized Losses	(35)	(36)
Fair Value	27,119	25,972
Long-term Marketable Securities | Municipal Bonds | Minimum
Schedule of Marketable Securities
Contractual Maturity	1 year	1 year
Long-term Marketable Securities | Municipal Bonds | Maximum
Schedule of Marketable Securities
Contractual Maturity	2 years	2 years
Long-term Marketable Securities | Corporate Debt Securities
Schedule of Marketable Securities
Amortized Cost	16,863	19,617
Gross Unrealized Gains	13	3
Gross Unrealized Losses	(2)	(22)
Fair Value	16,874	19,598
Long-term Marketable Securities | Corporate Debt Securities | Minimum
Schedule of Marketable Securities
Contractual Maturity	1 year	1 year
Long-term Marketable Securities | Corporate Debt Securities | Maximum
Schedule of Marketable Securities
Contractual Maturity	2 years	2 years
Long-term Marketable Securities | Asset-backed Securities
Schedule of Marketable Securities
Amortized Cost	19,921	21,236
Gross Unrealized Gains	9	1
Gross Unrealized Losses	(3)	(8)
Fair Value	19,927	21,229
Long-term Marketable Securities | Asset-backed Securities | Minimum
Schedule of Marketable Securities
Contractual Maturity	1 year	1 year
Long-term Marketable Securities | Asset-backed Securities | Maximum
Schedule of Marketable Securities
Contractual Maturity	2 years	2 years
Long-term Marketable Securities | Securities of U.S. government-sponsored agencies
Schedule of Marketable Securities
Amortized Cost	7,586	8,564
Gross Unrealized Gains	7	0
Gross Unrealized Losses	0	(16)
Fair Value	7,593	8,548
Long-term Marketable Securities | Securities of U.S. government-sponsored agencies | Minimum
Schedule of Marketable Securities
Contractual Maturity	1 year	1 year
Long-term Marketable Securities | Securities of U.S. government-sponsored agencies | Maximum
Schedule of Marketable Securities
Contractual Maturity	2 years	2 years

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SEGMENT AND GEOGRAPHIC INFORMATION

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment And Geographic Information

SEGMENT AND GEOGRAPHIC INFORMATION

Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. We globally manage the business within one reportable segment. Segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. Products are sold principally in the United States.

The following table represents total sales by geographic area, based on the location of the customer:

	Three Months Ended
(In thousands)	March 31, 2015		March 31, 2014
United States	$	119,983	$	101,705
International	11,621		12,505
Total sales	$	131,604	$	114,210

We classify our products into two categories: innovative fusion products and disruptive technology products. The following table represents total sales by product category:

	Three Months Ended
(In thousands)	March 31, 2015		March 31, 2014
Innovative Fusion	$	70,370	$	66,770
Disruptive Technology	61,234		47,440
Total sales	$	131,604	$	114,210