þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from | to |
The Netherlands | 98-0509600 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Prins Bernhardplein 200 1097 JB Amsterdam, The Netherlands (Address of principal executive offices) | None (Zip Code) |
Large accelerated filer þ | Accelerated filer o | |
Non-accelerated filer o | Smaller reporting company o Emerging growth company o |
Page | |
• | inability to achieve or sustain profitability; |
• | failure to realize the anticipated benefits from previous acquisitions and dispositions, including our recent acquisition of Cartiva, Inc. (Cartiva); |
• | failure to obtain anticipated commercial sales of our AUGMENT® Bone Graft products in the United States; |
• | failure to realize the anticipated benefits of the 2017 additions to our direct U.S. lower extremities and biologics sales force; |
• | liability for product liability claims on hip/knee (OrthoRecon) products sold by Wright Medical Technology, Inc. (WMT) prior to the divestiture of the OrthoRecon business; |
• | risks and uncertainties associated with our metal-on-metal master settlement agreements and the settlement agreements with certain of our insurance companies, including without limitation, the resolution of the remaining unresolved claims, the effect of the broad release of certain insurance coverage for present and future claims, and the resolution of WMT’s dispute with the remaining carriers; |
• | adverse outcomes in existing product liability litigation; |
• | copycat claims against our modular hip systems resulting from a competitor’s recall of its modular hip product; |
• | the ability of a creditor of any one particular entity within our corporate structure to reach the assets of the other entities within our corporate structure not liable for the underlying claims of the one particular entity, despite our corporate structure which is intended to ring-fence liabilities; |
• | new product liability claims; |
• | pending and future other litigation, which could have an adverse effect on our business, financial condition, or operating results; |
• | challenges to our intellectual property rights or inability to defend our products against the intellectual property rights of others; |
• | the possibility of private securities litigation or shareholder derivative suits; |
• | inadequate insurance coverage; |
• | inability to generate sufficient cash flow to satisfy our capital requirements, including future milestone payments, and existing debt, including the conversion features of our convertible senior notes, or refinance our existing debt as it matures; |
• | risks associated with our credit, security and guaranty agreement for our senior secured asset-based line of credit and term loan facility; |
• | inability to raise additional financing when needed and on favorable terms; |
• | the loss of key suppliers, which may result in our inability to meet customer orders for our products in a timely manner or within our budget; |
• | the incurrence of significant expenditures of resources to maintain relatively high levels of inventory, which could reduce our cash flows and increase the risk of inventory obsolescence, which could harm our operating results; |
• | our inability to timely manufacture products or instrument sets to meet demand; |
• | our private label manufacturers failing to provide us with sufficient supply of their products, or failing to meet appropriate quality requirements; |
• | our plans to bring the manufacturing of certain of our products in-house and possible disruptions we may experience in connection with such transition; |
• | our plans to increase our gross margins by taking certain actions designed to do so; |
• | inventory reductions or fluctuations in buying patterns by wholesalers or distributors; |
• | not successfully competing against our existing or potential competitors and the effect of significant recent consolidations amongst our competitors; |
• | not successfully developing and marketing new products and technologies and implementing our business strategy; |
• | insufficient demand for and market acceptance of our new and existing products; |
• | the reliance of our business plan on certain market assumptions; |
• | lack of suitable business development opportunities; |
• | inability to capitalize on business development opportunities; |
• | future actions of the SEC, the United States Attorney’s office, the U.S. Food and Drug Administration (FDA), the Department of Health and Human Services, or other U.S. or foreign government authorities, including those resulting from increased scrutiny under the U.S. Foreign Corrupt Practices Act and similar laws, that could delay, limit, or suspend our development, manufacturing, commercialization, and sale of products, or result in seizures, injunctions, monetary sanctions, or criminal or civil liabilities; |
• | failure or delay in obtaining FDA or other regulatory approvals for our products; |
• | the compliance of our products and activities with the laws and regulations of the countries in which they are marketed, which compliance may be costly and time-consuming; |
• | the use, misuse or off-label use of our products that may harm our image in the marketplace or result in injuries that may lead to product liability suits, which could be costly to our business or result in governmental sanctions; |
• | recently enacted healthcare laws and changes in product reimbursements, which could generate downward pressure on our product pricing; |
• | the potentially negative effect of our ongoing compliance efforts on our relationships with customers and on our ability to deliver timely and effective medical education, clinical studies, and new products; |
• | failures of, interruptions to, or unauthorized tampering with, our information technology systems; |
• | our inability to maintain effective internal controls; |
• | product quality or patient safety issues; |
• | geographic and product mix impact on our sales; |
• | deriving a significant portion of our revenues from operations in certain geographic markets that are subject to political, economic, and social instability, including in particular France, and risks and uncertainties involved in launching our products in certain new geographic markets; |
• | the negative impact of the commercial and credit environment on us, our customers, and our suppliers; |
• | inability to retain key sales representatives, independent distributors, and other personnel or to attract new talent; |
• | consolidation in the healthcare industry that could lead to demands for price concessions or the exclusion of some suppliers from certain of our markets, which could have an adverse effect on our business, financial condition, or operating results; |
• | our clinical trials and their results and our reliance on third parties to conduct them; |
• | risks associated with the merger between Tornier N.V. (Tornier or legacy Tornier) and Wright Medical Group, Inc. (WMG or legacy Wright), including the failure to realize intended benefits and anticipated synergies and cost-savings from the transaction or delay in realization thereof; our businesses may not be combined successfully, or such combination may take longer, be more difficult, time-consuming or costly to accomplish than expected; and business disruption after the transaction, including adverse effects on employee retention, our sales and distribution channel, especially in light of territory transitions, and business relationships with third parties; |
• | risks associated with the divestiture of the U.S. rights to certain of legacy Tornier's ankle and silastic toe replacement products; |
• | adverse effects of diverting resources and attention to transition services provided to the purchaser of our Large Joints business; |
• | potentially burdensome tax measures; and |
• | fluctuations in foreign currency exchange rates. |
Wright Medical Group N.V. Condensed Consolidated Balance Sheets (In thousands, except share data) (unaudited) | |||||||
September 30, 2018 | December 31, 2017 | ||||||
Assets: | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 694,903 | $ | 167,740 | |||
Accounts receivable, net | 122,595 | 130,610 | |||||
Inventories | 179,494 | 168,144 | |||||
Prepaid expenses | 14,935 | 13,555 | |||||
Other current assets 1 | 311,808 | 86,845 | |||||
Total current assets | 1,323,735 | 566,894 | |||||
Property, plant and equipment, net | 221,175 | 212,379 | |||||
Goodwill | 921,376 | 933,662 | |||||
Intangible assets, net | 209,590 | 231,001 | |||||
Deferred income taxes | 905 | 937 | |||||
Other assets 1 | 162,514 | 183,851 | |||||
Total assets | $ | 2,839,295 | $ | 2,128,724 | |||
Liabilities and Shareholders’ Equity: | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 45,057 | $ | 41,831 | |||
Accrued expenses and other current liabilities 1 | 506,322 | 314,558 | |||||
Current portion of long-term obligations 1 | 514,930 | 58,906 | |||||
Total current liabilities | 1,066,309 | 415,295 | |||||
Long-term debt and capital lease obligations 1 | 586,582 | 836,208 | |||||
Deferred income taxes | 12,312 | 15,780 | |||||
Other liabilities 1 | 215,594 | 272,745 | |||||
Total liabilities | 1,880,797 | 1,540,028 | |||||
Commitments and contingencies (Note 13) | |||||||
Shareholders’ equity: | |||||||
Ordinary shares, €0.03 par value, authorized: 320,000,000 shares; issued and outstanding: 125,065,240 shares at September 30, 2018 and 105,807,424 shares at December 31, 2017 | 4,573 | 3,896 | |||||
Additional paid-in capital | 2,495,851 | 1,971,347 | |||||
Accumulated other comprehensive income | 2,648 | 22,290 | |||||
Accumulated deficit | (1,544,574 | ) | (1,408,837 | ) | |||
Total shareholders’ equity | 958,498 | 588,696 | |||||
Total liabilities and shareholders’ equity | $ | 2,839,295 | $ | 2,128,724 |
1 | As of September 30, 2018, the closing price of our ordinary shares was greater than 130% of the 2021 Notes conversion price for 20 or more of the 30 consecutive trading days preceding the quarter-end; and, therefore, the holders of the 2021 Notes may convert the notes during the succeeding quarterly period. Due to the ability of the holders of the 2021 Notes to convert |
Wright Medical Group N.V. Condensed Consolidated Statements of Operations (In thousands, except per share data) (unaudited) | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
September 30, 2018 | September 24, 2017 | September 30, 2018 | September 24, 2017 | ||||||||||||
Net sales | $ | 194,106 | $ | 170,503 | $ | 598,043 | $ | 527,387 | |||||||
Cost of sales 1 | 44,307 | 38,421 | 131,004 | 113,669 | |||||||||||
Gross profit | 149,799 | 132,082 | 467,039 | 413,718 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative 1 | 139,223 | 131,421 | 417,297 | 392,073 | |||||||||||
Research and development 1 | 13,829 | 11,992 | 42,393 | 36,971 | |||||||||||
Amortization of intangible assets | 5,881 | 7,178 | 19,031 | 21,574 | |||||||||||
Total operating expenses | 158,933 | 150,591 | 478,721 | 450,618 | |||||||||||
Operating loss | (9,134 | ) | (18,509 | ) | (11,682 | ) | (36,900 | ) | |||||||
Interest expense, net | 19,753 | 18,978 | 60,243 | 55,512 | |||||||||||
Other expense, net | 3,902 | 5,457 | 75,649 | 6,875 | |||||||||||
Loss from continuing operations before income taxes | (32,789 | ) | (42,944 | ) | (147,574 | ) | (99,287 | ) | |||||||
Provision (benefit) for income taxes | 3,040 | (8,822 | ) | (1,217 | ) | (7,498 | ) | ||||||||
Net loss from continuing operations | (35,829 | ) | (34,122 | ) | (146,357 | ) | (91,789 | ) | |||||||
(Loss) income from discontinued operations, net of tax | (6,696 | ) | (97,748 | ) | 10,620 | (139,942 | ) | ||||||||
Net loss | $ | (42,525 | ) | $ | (131,870 | ) | $ | (135,737 | ) | $ | (231,731 | ) | |||
Net loss from continuing operations per share-basic and diluted (Note 12): | $ | (0.32 | ) | $ | (0.33 | ) | $ | (1.35 | ) | $ | (0.88 | ) | |||
Net (loss) income from discontinued operations per share-basic and diluted (Note 12): | $ | (0.06 | ) | $ | (0.93 | ) | $ | 0.10 | $ | (1.34 | ) | ||||
Net loss per share-basic and diluted (Note 12): | $ | (0.38 | ) | $ | (1.26 | ) | $ | (1.25 | ) | $ | (2.22 | ) | |||
Weighted-average number of ordinary shares outstanding-basic and diluted: | 113,043 | 104,836 | 108,348 | 104,292 |
1 | These line items include the following amounts of non-cash, share-based compensation expense for the periods indicated: |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2018 | September 24, 2017 | September 30, 2018 | September 24, 2017 | ||||||||||||
Cost of sales | $ | 141 | $ | 152 | $ | 452 | $ | 403 | |||||||
Selling, general and administrative | 6,537 | 4,960 | 16,496 | 12,939 | |||||||||||
Research and development | 579 | 333 | 1,388 | 789 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2018 | September 24, 2017 | September 30, 2018 | September 24, 2017 | ||||||||||||
Net loss | $ | (42,525 | ) | $ | (131,870 | ) | $ | (135,737 | ) | $ | (231,731 | ) | |||
Other comprehensive (loss) income: | |||||||||||||||
Changes in foreign currency translation | (2,773 | ) | 25,132 | (19,642 | ) | 44,362 | |||||||||
Other comprehensive (loss) income | (2,773 | ) | 25,132 | (19,642 | ) | 44,362 | |||||||||
Comprehensive loss | $ | (45,298 | ) | $ | (106,738 | ) | $ | (155,379 | ) | $ | (187,369 | ) |
Wright Medical Group N.V. Condensed Consolidated Statements of Cash Flows (In thousands) (unaudited) | |||||||
Nine months ended | |||||||
September 30, 2018 | September 24, 2017 | ||||||
Operating activities: | |||||||
Net loss | $ | (135,737 | ) | $ | (231,731 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation | 42,986 | 42,124 | |||||
Share-based compensation expense | 18,336 | 14,131 | |||||
Amortization of intangible assets | 19,031 | 21,574 | |||||
Amortization of deferred financing costs and debt discount | 40,641 | 37,373 | |||||
Deferred income taxes | (2,976 | ) | (2,059 | ) | |||
Provision for excess and obsolete inventory | 17,358 | 13,770 | |||||
Non-cash loss on extinguishment of debt | 39,935 | — | |||||
Non-cash adjustment to derivative fair values | 34,343 | (4,163 | ) | ||||
Mark-to-market adjustment for CVRs (Note 6) | (3,084 | ) | 6,721 | ||||
Other | 617 | 2,093 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 6,029 | 18,807 | |||||
Inventories | (32,738 | ) | (28,210 | ) | |||
Prepaid expenses and other current assets | 34,847 | 5,851 | |||||
Accounts payable | 3,731 | 8,260 | |||||
Accrued expenses and other liabilities | (23,905 | ) | (21,343 | ) | |||
Metal-on-metal product liabilities (Note 13) | (71,963 | ) | (12,506 | ) | |||
Net cash used in operating activities | (12,549 | ) | (129,308 | ) | |||
Investing activities: | |||||||
Capital expenditures | (49,920 | ) | (49,476 | ) | |||
Purchase of intangible assets | (2,288 | ) | (1,408 | ) | |||
Other investing | (500 | ) | — | ||||
Net cash used in investing activities | (52,708 | ) | (50,884 | ) | |||
Financing activities: | |||||||
Issuance of ordinary shares | 10,975 | 24,828 | |||||
Proceeds from equity offering | 448,924 | — | |||||
Payment of equity offering costs | (25,566 | ) | — | ||||
Issuance of warrants | 102,137 | — | |||||
Payment of notes premium | (55,643 | ) | — | ||||
Payment of notes hedge options | (141,278 | ) | — | ||||
Repurchase of stock warrants | (23,972 | ) | — | ||||
Payment of equity issuance costs | (1,870 | ) | — | ||||
Proceeds from notes hedge options | 34,553 | — | |||||
Proceeds from exchangeable senior notes | 675,000 | — | |||||
Proceeds from other debt | 23,434 | 32,000 | |||||
Payments of debt | (34,067 | ) | (10,722 | ) | |||
Redemption of convertible senior notes | (400,911 | ) | — | ||||
Payments of deferred financing costs | (14,092 | ) | — |
Wright Medical Group N.V. Consolidated Statements of Cash Flows (Continued) (In thousands) | |||||||
Nine months ended | |||||||
September 30, 2018 | September 24, 2017 | ||||||
Payment of contingent consideration | (919 | ) | (1,429 | ) | |||
Payments of capital lease obligations | (3,905 | ) | (1,863 | ) | |||
Net cash provided by financing activities | 592,800 | 42,814 | |||||
Effect of exchange rates on cash and cash equivalents | (380 | ) | 2,902 | ||||
Net increase (decrease) in cash and cash equivalents | 527,163 | (134,476 | ) | ||||
Cash, cash equivalents, and restricted cash, beginning of period 1 | 167,740 | 412,265 | |||||
Cash, cash equivalents, and restricted cash, end of period 1 | $ | 694,903 | $ | 277,789 |
1 | As of September 24, 2017 and December 25, 2016, we had cash and cash equivalents of $238.9 million and $262.3 million, respectively. As of September 24, 2017 and December 25, 2016, we had $38.9 million and $150.0 million, respectively, in restricted cash to secure our obligations under a Master Settlement Agreement (MSA) that WMT entered into in connection with the metal-on-metal hip litigation as described in Note 13. |
Cash and cash equivalents | $ | 2,559 | |
Accounts receivable | 102 | ||
Other current assets | 925 | ||
Property, plant and equipment | 20 | ||
Intangible assets | 10,865 | ||
Total assets acquired | 14,471 | ||
Current liabilities | (2,173 | ) | |
Long-term debt | (886 | ) | |
Deferred income taxes | (2,343 | ) | |
Total liabilities assumed | (5,402 | ) | |
Net assets acquired | $ | 9,069 | |
Goodwill | 71,064 | ||
Total preliminary purchase consideration | $ | 80,133 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2018 | September 24, 2017 | September 30, 2018 | September 24, 2017 | ||||||||||||
Net sales | $ | — | $ | — | $ | — | $ | — | |||||||
Selling, general and administrative | 8,553 | 96,917 | (15,309 | ) | 137,578 | ||||||||||
(Loss) income from discontinued operations before income taxes | (8,553 | ) | (96,917 | ) | 15,309 | (137,578 | ) | ||||||||
(Benefit) provision for income taxes | (2,188 | ) | — | 3,995 | — | ||||||||||
Total (loss) income from discontinued operations, net of tax | $ | (6,365 | ) | $ | (96,917 | ) | $ | 11,314 | $ | (137,578 | ) |
September 30, 2018 | December 31, 2017 | ||||||
Raw materials | $ | 10,517 | $ | 10,816 | |||
Work-in-process | 36,029 | 28,581 | |||||
Finished goods | 132,948 | 128,747 | |||||
$ | 179,494 | $ | 168,144 |
Level 1: | Financial instruments with unadjusted, quoted prices listed on active market exchanges. |
Level 2: | Financial instruments determined using prices for recently traded financial instruments with similar underlying terms as well as directly or indirectly observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. |
Level 3: | Financial instruments that are not actively traded on a market exchange. This category includes situations where there is little, if any, market activity for the financial instrument. The prices are determined using significant unobservable inputs or valuation techniques. |
Location on condensed consolidated balance sheet | September 30, 2018 | |||
2023 Notes Hedges | Other assets | $ | 150,853 | |
2023 Notes Conversion Derivative | Other liabilities | $ | 151,107 |
Three months ended | Nine months ended | ||||||
September 30, 2018 | September 30, 2018 | ||||||
2023 Notes Hedges | $ | 25,880 | $ | 9,575 | |||
2023 Notes Conversion Derivative | (25,244 | ) | (26,482 | ) | |||
Net gain (loss) on changes in fair value | $ | 636 | $ | (16,907 | ) |
September 30, 2018 | December 31, 2017 | ||||||||||
Location on condensed consolidated balance sheet | Amount | Location on condensed consolidated balance sheet | Amount | ||||||||
2021 Notes Hedges | Other current assets | $ | 222,919 | Other assets | $ | 127,063 | |||||
2021 Notes Conversion Derivative | Accrued expenses and other current liabilities | $ | 221,356 | Other liabilities | $ | 126,148 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2018 | September 24, 2017 | September 30, 2018 | September 24, 2017 | ||||||||||||
2021 Notes Hedges | $ | 46,591 | $ | (9,074 | ) | $ | 95,856 | $ | 18,723 | ||||||
2021 Notes Conversion Derivative | (45,715 | ) | 9,321 | (95,208 | ) | (16,269 | ) | ||||||||
Net gain on changes in fair value | $ | 876 | $ | 247 | $ | 648 | $ | 2,454 |
September 30, 2018 | December 31, 2017 | ||||||||||
Location on condensed consolidated balance sheet | Amount | Location on condensed consolidated balance sheet | Amount | ||||||||
2020 Notes Hedges | Other current assets | $ | 27,327 | Other assets | $ | 45,033 | |||||
2020 Notes Conversion Derivative | Accrued expenses and other current liabilities | $ | 26,757 | Other liabilities | $ | 44,132 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2018 | September 24, 2017 | September 30, 2018 | September 24, 2017 | ||||||||||||
2020 Notes Hedges | $ | 3,317 | $ | (10,340 | ) | $ | 16,847 | $ | (3,538 | ) | |||||
2020 Warrants Derivative | 3,586 | — | 3,336 | — | |||||||||||
2020 Notes Conversion Derivative | (8,186 | ) | 10,292 | (38,268 | ) | 5,298 | |||||||||
Net (loss) gain on changes in fair value | $ | (1,283 | ) | $ | (48 | ) | $ | (18,085 | ) | $ | 1,760 |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2018 | September 24, 2017 | September 30, 2018 | September 24, 2017 | ||||||||||||
2017 Notes Conversion Derivative | $ | — | $ | 15 | $ | — | $ | (51 | ) | ||||||
Net gain (loss) on changes in fair value | $ | — | $ | 15 | $ | — | $ | (51 | ) |
2020 Notes Conversion Derivative | 2020 Notes Hedge | 2021 Notes Conversion Derivative | 2021 Notes Hedge | 2023 Notes Conversion Derivative | 2023 Notes Hedge | |
Stock Price Volatility (1) | 31.92% | 31.92% | 37.55% | 37.55% | 30.64% | 30.64% |
Credit Spread for Wright (2) | 2.62% | N/A | 3.13% | N/A | 2.55% | N/A |
Credit Spread for Deutsche Bank AG (3) | N/A | 1.27% | N/A | N/A | N/A | N/A |
Credit Spread for Wells Fargo Securities, LLC (3) | N/A | 0.15% | N/A | N/A | N/A | N/A |
Credit Spread for JPMorgan Chase Bank (3) | N/A | 0.17% | N/A | 0.27% | N/A | 0.4% |
Credit Spread for Bank of America (3) | N/A | N/A | N/A | 0.28% | N/A | 0.46% |
(1) | Volatility selected based on historical and implied volatility of ordinary shares of Wright Medical Group N.V. |
(2) | Credit spread implied from traded price. |
(3) | Credit spread of each bank is estimated using CDS curves. Source: Bloomberg. |
Total | Quoted prices in active markets (Level 1) | Prices with other observable inputs (Level 2) | Prices with unobservable inputs (Level 3) | |||||||||
At September 30, 2018 | ||||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 694,903 | $ | 694,903 | $ | — | $ | — | ||||
2020 Notes Hedges | 27,327 | — | — | 27,327 | ||||||||
2021 Notes Hedges | 222,919 | — | — | 222,919 | ||||||||
2023 Notes Hedges | 150,853 | — | — | 150,853 | ||||||||
Total | $ | 1,096,002 | $ | 694,903 | $ | — | $ | 401,099 | ||||
Liabilities | ||||||||||||
2020 Notes Conversion Derivative | $ | 26,757 | $ | — | $ | — | $ | 26,757 | ||||
2021 Notes Conversion Derivative | 221,356 | — | — | 221,356 | ||||||||
2023 Notes Conversion Derivative | 151,107 | — | — | 151,107 | ||||||||
Contingent consideration | 18,765 | — | — | 18,765 | ||||||||
Contingent consideration (CVRs) | 39,241 | 39,241 | — | — | ||||||||
Total | $ | 457,226 | $ | 39,241 | $ | — | $ | 417,985 |
Total | Quoted prices in active markets (Level 1) | Prices with other observable inputs (Level 2) | Prices with unobservable inputs (Level 3) | |||||||||
At December 31, 2017 | ||||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 167,740 | $ | 167,740 | $ | — | $ | — | ||||
2020 Notes Hedges | 45,033 | — | — | 45,033 | ||||||||
2021 Notes Hedges | 127,063 | — | — | 127,063 | ||||||||
Total | $ | 339,836 | $ | 167,740 | $ | — | $ | 172,096 | ||||
Liabilities | ||||||||||||
2020 Notes Conversion Derivative | $ | 44,132 | $ | — | $ | — | $ | 44,132 | ||||
2021 Notes Conversion Derivative | 126,148 | — | — | 126,148 | ||||||||
Contingent consideration | 19,188 | — | — | 19,188 | ||||||||
Contingent consideration (CVRs) | 42,325 | 42,325 | — | — | ||||||||
Total | $ | 231,793 | $ | 42,325 | $ | — | $ | 189,468 |
Balance at December 31, 2017 | Additions | Transfers into Level 3 | Gain/(loss) included in earnings | Settlements | Currency | Balance at September 30, 2018 | |||||||||||
2020 Notes Hedges | $ | 45,033 | — | — | 16,847 | (34,553 | ) | — | $ | 27,327 | |||||||
2020 Notes Conversion Derivative | $ | (44,132 | ) | — | — | (38,268 | ) | 55,643 | — | $ | (26,757 | ) | |||||
2020 Warrants Derivative | $ | — | (27,308 | ) | — | 3,336 | 23,972 | — | $ | — | |||||||
2021 Notes Hedges | $ | 127,063 | — | — | 95,856 | — | — | $ | 222,919 | ||||||||
2021 Notes Conversion Derivative | $ | (126,148 | ) | — | — | (95,208 | ) | — | — | $ | (221,356 | ) | |||||
2023 Notes Hedges | $ | — | 141,278 | — | 9,575 | — | — | $ | 150,853 | ||||||||
2023 Notes Conversion Derivative | $ | — | (124,625 | ) | — | (26,482 | ) | — | — | $ | (151,107 | ) | |||||
Contingent consideration | $ | (19,188 | ) | — | — | (1,280 | ) | 919 | 784 | $ | (18,765 | ) |
September 30, 2018 | December 31, 2017 | ||||||
Property, plant and equipment, at cost | $ | 519,226 | $ | 448,921 | |||
Less: Accumulated depreciation | (298,051 | ) | (236,542 | ) | |||
$ | 221,175 | $ | 212,379 |
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | Total | ||||||||||||
Goodwill at December 31, 2017 | $ | 218,525 | $ | 630,650 | $ | 84,487 | $ | 933,662 | |||||||
Goodwill adjustment associated with IMASCAP acquisition | — | (917 | ) | — | (917 | ) | |||||||||
Foreign currency translation | — | (1,111 | ) | (10,258 | ) | (11,369 | ) | ||||||||
Goodwill at September 30, 2018 | $ | 218,525 | $ | 628,622 | $ | 74,229 | $ | 921,376 |
September 30, 2018 | December 31, 2017 | ||||||||||||||
Cost | Accumulated amortization | Cost | Accumulated amortization | ||||||||||||
Indefinite life intangibles: | |||||||||||||||
In-process research and development (IPRD) technology | $ | 5,178 | $ | 6,422 | |||||||||||
Finite life intangibles: | |||||||||||||||
Distribution channels | 900 | $ | 835 | 900 | $ | 640 | |||||||||
Completed technology | 147,619 | 50,901 | 149,645 | 40,810 | |||||||||||
Licenses | 6,547 | 1,706 | 5,268 | 1,530 | |||||||||||
Customer relationships | 127,807 | 28,414 | 129,693 | 23,268 | |||||||||||
Trademarks | 14,135 | 11,536 | 14,368 | 10,487 | |||||||||||
Non-compete agreements | 3,111 | 2,315 | 3,964 | 2,603 | |||||||||||
Other | 525 | 525 | 569 | 490 | |||||||||||
Total finite life intangibles | 300,644 | $ | 96,232 | 304,407 | $ | 79,828 | |||||||||
Total intangibles | 305,822 | 310,829 | |||||||||||||
Less: Accumulated amortization | (96,232 | ) | (79,828 | ) | |||||||||||
Intangible assets, net | $ | 209,590 | $ | 231,001 |
September 30, 2018 | December 31, 2017 | ||||||
Capital lease obligations | $ | 22,875 | $ | 20,401 | |||
2023 Notes | 542,575 | — | |||||
2021 Notes 1 | 315,793 | 300,051 | |||||
2020 Notes 1 | 170,798 | 513,014 | |||||
Term Loan Facility | 18,903 | — | |||||
Asset-based line of credit | 21,549 | 53,645 | |||||
Other debt | 9,019 | 8,003 | |||||
1,101,512 | 895,114 | ||||||
Less: Current portion 1 | (514,930 | ) | (58,906 | ) | |||
$ | 586,582 | $ | 836,208 |
1 | As of September 30, 2018, the closing price of our ordinary shares was greater than 130% of the 2021 Notes conversion price for 20 or more of the 30 consecutive trading days preceding the quarter-end; and, therefore, the holders of the 2021 Notes may convert the notes during the succeeding quarterly period. Due to the ability of the holders of the 2021 Notes to convert the notes during this period, the carrying value of the 2021 Notes were classified as current liabilities as of September 30, 2018. The holders of the 2020 Notes may convert their notes at any time prior to August 15, 2019 solely into cash upon satisfaction of certain circumstances as described below. On or after August 15, 2019, holders may convert their 2020 Notes solely into cash, regardless of the foregoing circumstances. Due to the ability of the holders of the 2020 Notes to convert within the next year, the carrying value of the 2020 Notes were classified as current liabilities as of September 30, 2018. The respective balances were classified as long-term as of December 31, 2017. |
September 30, 2018 | |||
Principal amount of 2023 Notes | $ | 675,000 | |
Unamortized debt discount | (119,519 | ) | |
Unamortized debt issuance costs | (12,906 | ) | |
Net carrying amount of 2023 Notes | $ | 542,575 |
September 30, 2018 | December 31, 2017 | ||||||
Principal amount of 2021 Notes | $ | 395,000 | $ | 395,000 | |||
Unamortized debt discount | (74,552 | ) | (89,332 | ) | |||
Unamortized debt issuance costs | (4,655 | ) | (5,617 | ) | |||
Net carrying amount of 2021 Notes | $ | 315,793 | $ | 300,051 |
September 30, 2018 | December 31, 2017 | ||||||
Principal amount of 2020 Notes | $ | 186,589 | $ | 587,500 | |||
Unamortized debt discount | (14,081 | ) | (66,418 | ) | |||
Unamortized debt issuance costs | (1,710 | ) | (8,068 | ) | |||
Net carrying amount of 2020 Notes | $ | 170,798 | $ | 513,014 |
Nine months ended September 30, 2018 | |||
Currency translation adjustment | |||
Balance at December 31, 2017 | $ | 22,290 | |
Other comprehensive loss | (19,642 | ) | |
Balance at September 30, 2018 | $ | 2,648 |
Nine months ended September 24, 2017 | |||
Currency translation adjustment | |||
Balance at December 25, 2016 | $ | (19,461 | ) |
Other comprehensive income | 44,362 | ||
Balance at September 24, 2017 | $ | 24,901 |
Nine months ended September 30, 2018 | ||||||||||||||||||||||
Ordinary shares | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Total shareholders' equity | ||||||||||||||||||
Number of shares | Amount | |||||||||||||||||||||
Balance at December 31, 2017 | 105,807,424 | $ | 3,896 | $ | 1,971,347 | $ | (1,408,837 | ) | $ | 22,290 | $ | 588,696 | ||||||||||
2018 Activity: | ||||||||||||||||||||||
Net loss | — | — | — | (135,737 | ) | — | (135,737 | ) | ||||||||||||||
Foreign currency translation | — | — | — | — | (19,642 | ) | (19,642 | ) | ||||||||||||||
Issuances of ordinary shares | 556,827 | 20 | 10,955 | — | — | 10,975 | ||||||||||||||||
Shares issued for public offering (Note 12) | 18,248,932 | 641 | 422,371 | — | — | 423,012 | ||||||||||||||||
Vesting of restricted stock units | 452,057 | 16 | (16 | ) | — | — | — | |||||||||||||||
Share-based compensation | — | — | 18,238 | — | — | 18,238 | ||||||||||||||||
Issuance of stock warrants, net of repurchases and equity issuance costs | — | — | 72,956 | — | — | 72,956 | ||||||||||||||||
Balance at September 30, 2018 | 125,065,240 | $ | 4,573 | $ | 2,495,851 | $ | (1,544,574 | ) | $ | 2,648 | $ | 958,498 | ||||||||||
Nine months ended September 24, 2017 | ||||||||||||||||||||||
Ordinary shares | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive (loss) income | Total shareholders' equity | ||||||||||||||||||
Number of shares | Amount | |||||||||||||||||||||
Balance at December 25, 2016 | 103,400,995 | $ | 3,815 | $ | 1,908,749 | $ | (1,206,239 | ) | $ | (19,461 | ) | $ | 686,864 | |||||||||
2017 Activity: | ||||||||||||||||||||||
Net loss | — | — | — | (231,731 | ) | — | (231,731 | ) | ||||||||||||||
Foreign currency translation | — | — | — | — | 44,362 | 44,362 | ||||||||||||||||
Issuances of ordinary shares | 1,217,088 | 40 | 24,788 | — | — | 24,828 | ||||||||||||||||
Vesting of restricted stock units | 393,595 | 13 | (13 | ) | — | — | — | |||||||||||||||
Share-based compensation | — | — | 14,193 | — | — | 14,193 | ||||||||||||||||
Balance at September 24, 2017 | 105,011,678 | $ | 3,868 | $ | 1,947,717 | $ | (1,437,970 | ) | $ | 24,901 | $ | 538,516 |
Three months ended | Nine months ended | ||||||||||
September 30, 2018 | September 24, 2017 | September 30, 2018 | September 24, 2017 | ||||||||
Weighted-average number of ordinary shares outstanding-basic and diluted | 113,043 | 104,836 | 108,348 | 104,292 |
Three months ended September 30, 2018 | |||||||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | Corporate 1 | Total | |||||||||||
Net sales from external customers | $ | 79,296 | $ | 66,269 | $ | 48,541 | $ | — | $ | 194,106 | |||||
Depreciation expense | 2,474 | 2,836 | 3,366 | 5,928 | 14,604 | ||||||||||
Amortization expense | — | — | — | 5,881 | 5,881 | ||||||||||
Segment operating income (loss) | $ | 20,487 | $ | 21,192 | $ | (278 | ) | $ | (48,583 | ) | $ | (7,182 | ) | ||
Other: | |||||||||||||||
Transaction and transition expenses | 1,952 | ||||||||||||||
Operating loss | (9,134 | ) | |||||||||||||
Interest expense, net | 19,753 | ||||||||||||||
Other expense, net | 3,902 | ||||||||||||||
Loss before income taxes | $ | (32,789 | ) |
Three months ended September 24, 2017 | |||||||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | Corporate 1 | Total | |||||||||||
Net sales from external customers | $ | 70,946 | $ | 55,918 | $ | 43,639 | $ | — | $ | 170,503 | |||||
Depreciation expense | 3,871 | 2,372 | 3,298 | 5,459 | 15,000 | ||||||||||
Amortization expense | — | — | — | 7,178 | 7,178 | ||||||||||
Segment operating income (loss) | $ | 13,506 | $ | 16,575 | $ | (1,563 | ) | $ | (43,716 | ) | $ | (15,198 | ) | ||
Other: | |||||||||||||||
Transaction and transition expenses | 3,311 | ||||||||||||||
Operating loss | (18,509 | ) | |||||||||||||
Interest expense, net | 18,978 | ||||||||||||||
Other expense, net | 5,457 | ||||||||||||||
Loss before income taxes | $ | (42,944 | ) |
Nine months ended September 30, 2018 | |||||||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | Corporate 1 | Total | |||||||||||
Net sales from external customers | $ | 235,595 | $ | 206,338 | $ | 156,110 | $ | — | $ | 598,043 | |||||
Depreciation expense | 7,729 | 8,350 | 9,604 | 17,303 | 42,986 | ||||||||||
Amortization expense | — | — | — | 19,031 | 19,031 | ||||||||||
Segment operating income (loss) | $ | 62,211 | $ | 69,864 | $ | (1,526 | ) | $ | (138,044 | ) | $ | (7,495 | ) | ||
Other: | |||||||||||||||
Transaction and transition expenses | 4,187 | ||||||||||||||
Operating loss | (11,682 | ) | |||||||||||||
Interest expense, net | 60,243 | ||||||||||||||
Other expense, net | 75,649 | ||||||||||||||
Loss before income taxes | $ | (147,574 | ) |
Nine months ended September 24, 2017 | |||||||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | Corporate 1 | Total | |||||||||||
Net sales from external customers | $ | 220,259 | $ | 171,695 | $ | 135,433 | $ | — | $ | 527,387 | |||||
Depreciation expense | 10,080 | 7,321 | 8,539 | 16,184 | 42,124 | ||||||||||
Amortization expense | — | — | — | 21,574 | 21,574 | ||||||||||
Segment operating income (loss) | $ | 51,988 | $ | 52,942 | $ | 1,641 | $ | (133,987 | ) | $ | (27,416 | ) | |||
Other: | |||||||||||||||
Transaction and transition expenses | 9,484 | ||||||||||||||
Operating loss | (36,900 | ) | |||||||||||||
Interest expense, net | 55,512 | ||||||||||||||
Other expense, net | 6,875 | ||||||||||||||
Loss before income taxes | $ | (99,287 | ) |
1 | The Corporate category primarily reflects general and administrative expenses not specifically associated with the U.S. Lower Extremities & Biologics, U.S. Upper Extremities, and International Extremities & Biologics segments. These non-allocated corporate expenses relate to global administrative expenses that support all segments, including salaries and benefits of certain executive officers and expenses such as: information technology administration and support; corporate headquarters; legal, compliance, and corporate finance functions; insurance; and all share-based compensation. |
Three months ended | Nine months ended | ||||||||||||||
September 30, 2018 | September 24, 2017 | September 30, 2018 | September 24, 2017 | ||||||||||||
United States | |||||||||||||||
Lower extremities | $ | 57,602 | $ | 51,417 | $ | 173,889 | $ | 161,228 | |||||||
Upper extremities | 65,334 | 54,788 | 203,163 | 168,280 | |||||||||||
Biologics | 20,654 | 18,640 | 59,053 | 56,547 | |||||||||||
Sports med & other | 1,975 | 2,019 | 5,828 | 5,899 | |||||||||||
Total United States | $ | 145,565 | $ | 126,864 | $ | 441,933 | $ | 391,954 | |||||||
EMEAC | |||||||||||||||
Lower extremities | $ | 9,527 | $ | 9,022 | $ | 33,761 | $ | 30,379 | |||||||
Upper extremities | 18,985 | 15,779 | 64,935 | 51,193 | |||||||||||
Biologics | 1,828 | 1,727 | 6,244 | 6,159 | |||||||||||
Sports med & other | 2,591 | 2,968 | 8,182 | 10,001 | |||||||||||
Total EMEAC | $ | 32,931 | $ | 29,496 | $ | 113,122 | $ | 97,732 | |||||||
Other | |||||||||||||||
Lower extremities | $ | 3,974 | $ | 4,941 | $ | 10,747 | $ | 11,993 | |||||||
Upper extremities | 6,696 | 5,418 | 19,477 | 15,413 | |||||||||||
Biologics | 4,721 | 3,466 | 12,144 | 9,333 | |||||||||||
Sports med & other | 219 | 318 | 620 | 962 | |||||||||||
Total other | $ | 15,610 | $ | 14,143 | $ | 42,988 | $ | 37,701 | |||||||
Total net sales | $ | 194,106 | $ | 170,503 | $ | 598,043 | $ | 527,387 |
September 30, 2018 | |||||||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | Corporate | Total | |||||||||||
Total assets | $ | 524,265 | $ | 922,120 | $ | 249,051 | $ | 1,143,859 | $ | 2,839,295 |
December 31, 2017 | |||||||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | Corporate | Total | |||||||||||
Total assets | $ | 490,528 | $ | 929,930 | $ | 301,985 | $ | 406,281 | $ | 2,128,724 |
• | Upper extremities, which include joint implants and bone fixation devices for the shoulder, elbow, wrist, and hand; |
• | Lower extremities, which include joint implants and bone fixation devices for the foot and ankle; |
• | Biologics, which include products used to support treatment of damaged or diseased bone, tendons, and soft tissues or to stimulate bone growth; and |
• | Sports medicine and other, which include products used across several anatomic sites to mechanically repair tissue-to-tissue or tissue-to-bone injuries and other ancillary products |
Three months ended | |||||||||||
September 30, 2018 | September 24, 2017 | ||||||||||
Amount | % of net sales | Amount | % of net sales | ||||||||
Net sales | $ | 194,106 | 100.0 | % | $ | 170,503 | 100.0 | % | |||
Cost of sales 1 | 44,307 | 22.8 | % | 38,421 | 22.5 | % | |||||
Gross profit | 149,799 | 77.2 | % | 132,082 | 77.5 | % | |||||
Operating expenses: | |||||||||||
Selling, general and administrative 1 | 139,223 | 71.7 | % | 131,421 | 77.1 | % | |||||
Research and development 1 | 13,829 | 7.1 | % | 11,992 | 7.0 | % | |||||
Amortization of intangible assets | 5,881 | 3.0 | % | 7,178 | 4.2 | % | |||||
Total operating expenses | 158,933 | 81.9 | % | 150,591 | 88.3 | % | |||||
Operating loss | (9,134 | ) | (4.7 | )% | (18,509 | ) | (10.9 | )% | |||
Interest expense, net | 19,753 | 10.2 | % | 18,978 | 11.1 | % | |||||
Other expense, net | 3,902 | 2.0 | % | 5,457 | 3.2 | % | |||||
Loss from continuing operations before income taxes | (32,789 | ) | (16.9 | )% | (42,944 | ) | (25.2 | )% | |||
Provision (benefit) for income taxes | 3,040 | 1.6 | % | (8,822 | ) | (5.2 | )% | ||||
Net loss from continuing operations | $ | (35,829 | ) | (18.5 | )% | $ | (34,122 | ) | (20.0 | )% | |
Loss from discontinued operations, net of tax | (6,696 | ) | (97,748 | ) | |||||||
Net loss | $ | (42,525 | ) | $ | (131,870 | ) |
1 | These line items include the following amounts of non-cash, share-based compensation expense for the periods indicated: |
Three months ended | |||||||||||
September 30, 2018 | % of net sales | September 24, 2017 | % of net sales | ||||||||
Cost of sales | $ | 141 | 0.1 | % | $ | 152 | 0.1 | % | |||
Selling, general and administrative | 6,537 | 3.4 | % | 4,960 | 2.9 | % | |||||
Research and development | 579 | 0.3 | % | 333 | 0.2 | % |
Three months ended | ||||||||||
September 30, 2018 | September 24, 2017 | % change | ||||||||
U.S. | ||||||||||
Lower extremities | $ | 57,602 | $ | 51,417 | 12.0 | % | ||||
Upper extremities | 65,334 | 54,788 | 19.2 | % | ||||||
Biologics | 20,654 | 18,640 | 10.8 | % | ||||||
Sports med & other | 1,975 | 2,019 | (2.2 | )% | ||||||
Total U.S. | $ | 145,565 | $ | 126,864 | 14.7 | % | ||||
International | ||||||||||
Lower extremities | $ | 13,501 | $ | 13,963 | (3.3 | )% | ||||
Upper extremities | 25,681 | 21,197 | 21.2 | % | ||||||
Biologics | 6,549 | 5,193 | 26.1 | % | ||||||
Sports med & other | 2,810 | 3,286 | (14.5 | )% | ||||||
Total International | $ | 48,541 | $ | 43,639 | 11.2 | % | ||||
Total net sales | $ | 194,106 | $ | 170,503 | 13.8 | % |
Nine months ended | |||||||||||
September 30, 2018 | September 24, 2017 | ||||||||||
Amount | % of net sales | Amount | % of net sales | ||||||||
Net sales | $ | 598,043 | 100.0 | % | $ | 527,387 | 100.0 | % | |||
Cost of sales 1 | 131,004 | 21.9 | % | 113,669 | 21.6 | % | |||||
Gross profit | 467,039 | 78.1 | % | 413,718 | 78.4 | % | |||||
Operating expenses: | |||||||||||
Selling, general and administrative 1 | 417,297 | 69.8 | % | 392,073 | 74.3 | % | |||||
Research and development 1 | 42,393 | 7.1 | % | 36,971 | 7.0 | % | |||||
Amortization of intangible assets | 19,031 | 3.2 | % | 21,574 | 4.1 | % | |||||
Total operating expenses | 478,721 | 80.0 | % | 450,618 | 85.4 | % | |||||
Operating loss | (11,682 | ) | (2.0 | )% | (36,900 | ) | (7.0 | )% | |||
Interest expense, net | 60,243 | 10.1 | % | 55,512 | 10.5 | % | |||||
Other expense, net | 75,649 | 12.6 | % | 6,875 | 1.3 | % | |||||
Loss from continuing operations before income taxes | (147,574 | ) | (24.7 | )% | (99,287 | ) | (18.8 | )% | |||
Benefit for income taxes | (1,217 | ) | (0.2 | )% | (7,498 | ) | (1.4 | )% | |||
Net loss from continuing operations | $ | (146,357 | ) | (24.5 | )% | $ | (91,789 | ) | (17.4 | )% | |
(Loss) income from discontinued operations, net of tax | 10,620 | (139,942 | ) | ||||||||
Net loss | $ | (135,737 | ) | $ | (231,731 | ) |
1 | These line items include the following amounts of non-cash, share-based compensation expense for the periods indicated: |
Nine months ended | |||||||||||
September 30, 2018 | % of net sales | September 24, 2017 | % of net sales | ||||||||
Cost of sales | $ | 452 | 0.1 | % | $ | 403 | 0.1 | % | |||
Selling, general and administrative | 16,496 | 2.8 | % | 12,939 | 2.5 | % | |||||
Research and development | 1,388 | 0.2 | % | 789 | 0.1 | % |
Nine months ended | ||||||||||
September 30, 2018 | September 24, 2017 | % change | ||||||||
U.S. | ||||||||||
Lower extremities | $ | 173,889 | $ | 161,228 | 7.9 | % | ||||
Upper extremities | 203,163 | 168,280 | 20.7 | % | ||||||
Biologics | 59,053 | 56,547 | 4.4 | % | ||||||
Sports med & other | 5,828 | 5,899 | (1.2 | )% | ||||||
Total U.S. | $ | 441,933 | $ | 391,954 | 12.8 | % | ||||
International | ||||||||||
Lower extremities | $ | 44,508 | $ | 42,372 | 5.0 | % | ||||
Upper extremities | 84,412 | 66,606 | 26.7 | % | ||||||
Biologics | 18,388 | 15,492 | 18.7 | % | ||||||
Sports med & other | 8,802 | 10,963 | (19.7 | )% | ||||||
Total International | $ | 156,110 | $ | 135,433 | 15.3 | % | ||||
Total net sales | $ | 598,043 | $ | 527,387 | 13.4 | % |
Three months ended September 30, 2018 | |||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | |||||||||
Net sales | $ | 79,296 | $ | 66,269 | $ | 48,541 | |||||
Operating income (loss) | $ | 20,487 | $ | 21,192 | $ | (278 | ) | ||||
Operating income (loss) as a percent of net sales | 25.8 | % | 32.0 | % | (0.6 | )% |
Three months ended September 24, 2017 | |||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | |||||||||
Net sales | $ | 70,946 | $ | 55,918 | $ | 43,639 | |||||
Operating income (loss) | $ | 13,506 | $ | 16,575 | $ | (1,563 | ) | ||||
Operating income (loss) as a percent of net sales | 19.0 | % | 29.6 | % | (3.6 | )% |
Nine months ended September 30, 2018 | |||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | |||||||||
Net sales | $ | 235,595 | $ | 206,338 | $ | 156,110 | |||||
Operating income (loss) | $ | 62,211 | $ | 69,864 | $ | (1,526 | ) | ||||
Operating income (loss) as a percent of net sales | 26.4 | % | 33.9 | % | (1.0 | )% |
Nine months ended September 24, 2017 | |||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | |||||||||
Net sales | $ | 220,259 | $ | 171,695 | $ | 135,433 | |||||
Operating income | $ | 51,988 | $ | 52,942 | $ | 1,641 | |||||
Operating income as a percent of net sales | 23.6 | % | 30.8 | % | 1.2 | % |
September 30, 2018 | December 31, 2017 | ||||||
Cash and cash equivalents | $ | 694,903 | $ | 167,740 | |||
Working capital 1 | 257,426 | 151,599 |
1 | As of September 30, 2018, the closing price of our ordinary shares was greater than 130% of the 2021 Notes conversion price for 20 or more of the 30 consecutive trading days preceding the quarter-end, and, therefore, the holders of the 2021 Notes may convert the notes during the calendar quarter ending December 30, 2018. Due to the ability of the holders of the 2021 Notes to convert the notes during this period, the $316 million carrying value of the 2021 Notes and the $221 million fair value of the 2021 Notes Conversion Derivatives were classified as current liabilities and the $223 million fair value of the 2021 Notes Hedges was classified as current assets as of September 30, 2018. The holders of the 2020 Notes may convert their notes at any time prior to August 15, 2019 solely into cash upon satisfaction of certain circumstances as described in Note 9. On or after August 15, 2019, through their maturity, holders may convert their 2020 Notes solely into cash, regardless of the foregoing circumstances. Due to the ability of the holders of the 2020 Notes to convert within the next year, the $171 million carrying value of the 2020 Notes and the $27 million fair value of the 2020 Notes Conversion Derivatives were classified as current liabilities and the $27 million fair value of the 2020 Notes Hedges was classified as current assets as of September 30, 2018. The respective balances were all classified as long-term as of December 31, 2017. We currently do not expect significant conversions of the 2021 Notes because they currently trade at a premium to the as-converted value, and a converting holder would forego future interest payments. However, any conversions would reduce our cash resources. We believe that, in the event that holders elect to exercise the conversion option, our cash resources and access to additional borrowings would provide the necessary liquidity. |
Share price | Shares (in thousands) | |
$44.95 | (10% greater than strike price) | 1,839 |
$49.03 | (20% greater than strike price) | 3,371 |
$53.12 | (30% greater than strike price) | 4,668 |
$57.20 | (40% greater than strike price) | 5,780 |
$61.29 | (50% greater than strike price) | 6,743 |
(in thousands) | |||||||||
Fair value of security given a 10% decrease in share price | Fair value of security as of September 30, 2018 | Fair value of security given a 10% increase in share price | |||||||
2023 Notes Hedges (Asset) | $ | 116,151 | $ | 150,853 | $ | 188,819 | |||
2023 Notes Conversion Derivative (Liability) | $ | 113,022 | $ | 151,107 | $ | 193,118 |
Share price | Shares (in thousands) | |
$33.00 | (10% greater than strike price) | 1,681 |
$36.00 | (20% greater than strike price) | 3,082 |
$39.00 | (30% greater than strike price) | 4,268 |
$42.00 | (40% greater than strike price) | 5,284 |
$45.00 | (50% greater than strike price) | 6,164 |
(in thousands) | |||
Fair value of security given a 10% decrease in share price | Fair value of security as of September 30, 2018 | Fair value of security given a 10% increase in share price | |
2021 Notes Hedges (Asset) | $180,121 | $222,919 | $267,789 |
2021 Notes Conversion Derivative (Liability) | $174,262 | $221,356 | $270,507 |
Share price | Shares (in thousands) | |
$42.68 | (10% greater than strike price) | 566 |
$46.56 | (20% greater than strike price) | 1,039 |
$50.44 | (30% greater than strike price) | 1,438 |
$54.32 | (40% greater than strike price) | 1,780 |
$58.20 | (50% greater than strike price) | 2,077 |
(in thousands) | |||
Fair value of security given a 10% decrease in share price | Fair value of security as of September 30, 2018 | Fair value of security given a 10% increase in share price | |
2020 Notes Hedges (Asset) | $17,845 | $27,327 | $38,673 |
2020 Notes Conversion Derivative (Liability) | $16,895 | $26,757 | $38,694 |
• | make us more vulnerable to adverse changes in general U.S. and worldwide economic, industry, and competitive conditions and adverse changes in government regulation; |
• | limit our flexibility in planning for, or reacting to, changes in our business and our industry; |
• | restrict our ability to make strategic acquisitions or dispositions or to exploit business opportunities; |
• | place us at a competitive disadvantage compared to our competitors who have less debt; and |
• | limit our ability to borrow additional amounts for working capital, capital expenditures, contractual obligations, research and development efforts, acquisitions, debt service requirements, execution of our business strategy, or other purposes. |
(a) | Exhibits. |
Exhibit No. | Exhibit | Method of Filing | ||
1.1 | Underwriting Agreement, dated August 27, 2018, between Wright Medical Group N.V. and J.P. Morgan Securities LLC. | |||
2.1 | Agreement and Plan of Merger dated as of August 24, 2018 among Wright Medical Group, Inc., Braves WMS, Inc., Wright Medical Group N.V., Cartiva, Inc., and Fortis Advisors LLC | |||
10.1 | Limited Consent and Amendment No. 1 to Amended and Restated Credit, Security and Guaranty Agreement dated as of August 24, 2018 among Wright Medical Group N.V. (as Guarantor), Wright Medical Group, Inc. (as Borrower), Certain Other Direct and Indirect Subsidiaries Listed on the Signature Pages Thereto (each as Borrower), MidCap Funding IV Trust (as Lender and Agent) and the Financial Institutions or Other Entities Parties Thereto | |||
31.1 | Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002 | |||
31.2 | Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002 | |||
32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002 |
Exhibit No. | Exhibit | Method of Filing | ||
101 | The following materials from Wright Medical Group N.V.’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2018, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017, (ii) the Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and September 24, 2017, (iii) the Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2018 and September 24, 2017, (iv) the Consolidated Statements of Cash Flows for the nine months ended September 30, 2018 and September 24, 2017, and (v) Notes to Consolidated Financial Statements | Filed herewith |
WRIGHT MEDICAL GROUP N.V. | |
By: | /s/ Robert J. Palmisano |
Robert J. Palmisano | |
President and Chief Executive Officer | |
(principal executive officer) | |
By: | /s/ Lance A. Berry |
Lance A. Berry | |
Senior Vice President and Chief Financial Officer | |
(principal financial officer) |
[SIGNATURES APPEAR ON FOLLOWING PAGES] |
AGENT: | MIDCAP FUNDING IV TRUST, |
LENDERS: | MIDCAP FUNDING IV TRUST, |
LENDERS: | APOLLO INVESTMENT CORPORATION, as a Lender By: Apollo Investment Management, L.P., as Advisor By: ACC Management, LLC, as its General Partner By: /s Tanner Powell Name: Tanner Powell Title: Authorized Signatory |
WRIGHT: | WRIGHT MEDICAL GROUP, INC. By:/s Lance A. Berry Name: Lance A. Berry Title: Senior Vice President and Chief Financial Officer |
BORROWERS: | BIOMIMETIC THERAPEUTICS CANADA, INC. By:/s W. Dean Morgan Name: W. Dean Morgan Title: Vice President |
BIOMIMETIC THERAPEUTICS LLC By:/s Lance A. Berry Name: Lance A. Berry Title: Treasurer | |
BIOMIMETIC THERAPEUTICS USA, INC. By:/s W. Dean Morgan Name: W. Dean Morgan Title: Vice President | |
INBONE TECHNOLOGIES, INC. By:/s W. Dean Morgan Name: W. Dean Morgan Title: Vice President, Tax and Treasury | |
ORTHOHELIX SURGICAL DESIGNS, INC. By:/s W. Dean Morgan Name: W. Dean Morgan Title: Treasurer |
ORTHOPRO, L.L.C. By:/s Lance A. Berry Name: Lance A. Berry Title: President and Chief Financial Officer | |
SOLANA SURGICAL, LLC By: Wright Medical Group, Inc., its sole member By:/s Lance A. Berry Name: Lance A. Berry Title: Senior Vice President and Chief Financial Officer | |
TORMIER US HOLDINGS, INC. By:/s W. Dean Morgan Name: W. Dean Morgan Title: Treasurer | |
TORNIER, INC. By: /s W. Dean Morgan Name: W. Dean Morgan Title: Treasurer | |
TROOPER HOLDINGS INC. By:/s W. Dean Morgan Name: W. Dean Morgan Title: Treasurer | |
WHITE BOX ORTHOPEDICS, LLC By: /s Lance A. Berry Name: Lance A. Berry Title: President and Chief Financial Officer |
WRIGHT MEDICAL CAPITAL, INC.. By: /s W. Dean Morgan Name: W. Dean Morgan Title: Vice President, Tax and Treasury | |
WRIGHT MEDICAL TECHNOLOGY, INC. By:/s W. Dean Morgan Name: W. Dean Morgan Title: Vice President, Tax and Treasury | |
WRIGHT MEDICAL GROUP INTELLECTUAL PROPERTY, INC. By: /s W. Dean Morgan Name: W. Dean Morgan Title: Vice President, Tax and Treasury |
GUARANTOR AND PARENT: | WRIGHT MEDICAL GROUP N.V. By: /s Lance A. Berry Name: Lance A. Berry Title: Senior Vice President and Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended September 30, 2018, of Wright Medical Group N.V.; |
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(s) 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(s) 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. |
/s/ Robert J. Palmisano | ||
Robert J. Palmisano | ||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended September 30, 2018, of Wright Medical Group N.V.; |
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(s) 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(s) 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. |
/s/ Lance A. Berry | ||
Lance A. Berry | ||
Senior Vice President and Chief Financial Officer |
/s/ Robert J. Palmisano | ||
Robert J. Palmisano | ||
President and Chief Executive Officer | ||
/s/ Lance A. Berry | ||
Lance A. Berry | ||
Senior Vice President and Chief Financial Officer |
Document and Entity Information Document - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Nov. 02, 2018 |
|
Document Information [Line Items] | ||
Entity Registrant Name | WRIGHT MEDICAL GROUP N.V. | |
Entity Central Index Key | 0001492658 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 125,081,610 | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets - USD ($) $ in Thousands |
9 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
||||||
ThresholdForConversionAsPercentOfConversionPrice | 130.00% | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ 694,903 | $ 167,740 | |||||
Accounts receivable, net | 122,595 | 130,610 | |||||
Inventories | 179,494 | 168,144 | |||||
Prepaid expenses | 14,935 | 13,555 | |||||
Other current assets | [1] | 311,808 | 86,845 | ||||
Total current assets | 1,323,735 | 566,894 | |||||
Property, plant and equipment, net | 221,175 | 212,379 | |||||
Goodwill | 921,376 | 933,662 | |||||
Intangible assets, net | 209,590 | 231,001 | |||||
Deferred income taxes | 905 | 937 | |||||
Other assets | [1] | 162,514 | 183,851 | ||||
Total assets | 2,839,295 | 2,128,724 | |||||
Current liabilities: | |||||||
Accounts payable | 45,057 | 41,831 | |||||
Accrued Liabilities, Current | [1] | 506,322 | 314,558 | ||||
Current portion of long-term obligations | [1],[2] | 514,930 | 58,906 | ||||
Total current liabilities | 1,066,309 | 415,295 | |||||
Long-term debt and capital lease obligations | [1] | 586,582 | 836,208 | ||||
Deferred income taxes | 12,312 | 15,780 | |||||
Other liabilities | [1] | 215,594 | 272,745 | ||||
Total liabilities | 1,880,797 | 1,540,028 | |||||
Commitments and contingencies (Note 19) | |||||||
Stockholders' equity: | |||||||
Common stock, $.03 par value, authorized: 320,000,000 shares; issued and outstanding: 125,065,240 shares at September 30, 2018 and 105,807,424 shares at December 31, 2017 | 4,573 | 3,896 | |||||
Additional paid-in capital | 2,495,851 | 1,971,347 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2,648 | 22,290 | |||||
Retained earnings | (1,544,574) | (1,408,837) | |||||
Total stockholders' equity | 958,498 | 588,696 | |||||
Total liabilities and stockholders' equity | $ 2,839,295 | $ 2,128,724 | |||||
Debt Instrument, Convertible, Minimum Consecutive Period | 5 days | ||||||
Debt Instrument, Convertible, Trading Period | 30 days | ||||||
|
Consolidated Balance Sheet (Parenthetical) - € / shares |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Common Stock, Par or Stated Value Per Share | € 0.03 | € 0.03 |
Common stock, shares authorized (in shares) | 320,000,000 | 320,000,000 |
Common Stock, Shares, Issued | 125,065,240 | 105,807,424 |
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 24, 2017 |
Sep. 30, 2018 |
Sep. 24, 2017 |
||||
Income Statement [Abstract] | |||||||
Net sales | $ 194,106 | $ 170,503 | $ 598,043 | $ 527,387 | |||
Cost of sales | [1] | 44,307 | 38,421 | 131,004 | 113,669 | ||
Gross profit | 149,799 | 132,082 | 467,039 | 413,718 | |||
Operating expenses: | |||||||
Selling, general and administrative | [1] | 139,223 | 131,421 | 417,297 | 392,073 | ||
Research and development | [1] | 13,829 | 11,992 | 42,393 | 36,971 | ||
Amortization of intangible assets | 5,881 | 7,178 | 19,031 | 21,574 | |||
Total operating expenses | 158,933 | 150,591 | 478,721 | 450,618 | |||
Operating income | (9,134) | (18,509) | (11,682) | (36,900) | |||
Interest Income (Expense), Nonoperating, Net | 19,753 | 18,978 | 60,243 | 55,512 | |||
Other expense, net | 3,902 | 5,457 | 75,649 | 6,875 | |||
Income (loss) before income taxes | (32,789) | (42,944) | (147,574) | (99,287) | |||
Provision (benefit) for income taxes | 3,040 | (8,822) | (1,217) | (7,498) | |||
Income (Loss) from Continuing Operations Attributable to Parent | (35,829) | (34,122) | (146,357) | (91,789) | |||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | (6,696) | (97,748) | 10,620 | (139,942) | |||
Net (loss) income | $ (42,525) | $ (131,870) | $ (135,737) | $ (231,731) | |||
Net income (loss) per share: | |||||||
Net loss from continuing operations per share-basic and diluted (Note 12): | $ (0.32) | $ (0.33) | $ (1.35) | $ (0.88) | |||
Net (loss) income from discontinued operations per share-basic and diluted (Note 12): | (0.06) | (0.93) | 0.10 | (1.34) | |||
Net loss per share-basic and diluted (Note 12): | $ (0.38) | $ (1.26) | $ (1.25) | $ (2.22) | |||
Weighted-average number of ordinary shares outstanding-basic and diluted: | 113,043 | 104,836 | 108,348 | 104,292 | |||
|
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 24, 2017 |
Sep. 30, 2018 |
Sep. 24, 2017 |
|
Cost of Sales [Member] | ||||
Stock-based compensation expense | $ 141 | $ 152 | $ 452 | $ 403 |
Selling, general and administrative [Member] | ||||
Stock-based compensation expense | 6,537 | 4,960 | 16,496 | 12,939 |
Research and Development [Member] | ||||
Stock-based compensation expense | $ 579 | $ 333 | $ 1,388 | $ 789 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 24, 2017 |
Sep. 30, 2018 |
Sep. 24, 2017 |
|
Net (loss) income | $ (42,525) | $ (131,870) | $ (135,737) | $ (231,731) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Changes in foreign currency translation | (19,642) | 44,362 | ||
Other Comprehensive Income (Loss) | (2,773) | 25,132 | (19,642) | 44,362 |
Comprehensive Income (Loss) | (45,298) | (106,738) | (155,379) | (187,369) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Changes in foreign currency translation | $ (2,773) | $ 25,132 | $ (19,642) | $ 44,362 |
Organization and Description of Business |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Organization and Description of Business [Abstract] | |
Organization and Description of Business | Organization and Description of Business Wright Medical Group N.V. (Wright or we) is a global medical device company focused on extremities and biologics products. We are committed to delivering innovative, value-added solutions improving quality of life for patients worldwide and are a recognized leader of surgical solutions for the upper extremities (shoulder, elbow, wrist and hand), lower extremities (foot and ankle) and biologics markets, three of the fastest growing segments in orthopaedics. We market our products in approximately 50 countries worldwide. Our global corporate headquarters are located in Amsterdam, the Netherlands. We also have significant operations located in Memphis, Tennessee (U.S. headquarters, research and development, sales and marketing administration, and administrative activities); Bloomington, Minnesota (upper extremities sales and marketing and warehousing operations); Arlington, Tennessee (manufacturing and warehousing operations); Franklin, Tennessee (manufacturing and warehousing operations); Warsaw, Indiana (research and development); Alpharetta, Georgia (manufacturing and warehousing operations); Montbonnot, France (manufacturing and warehousing operations); Plouzané, France (research and development); and Macroom, Ireland (manufacturing). In addition, we have local sales and distribution offices in Canada, Australia, Asia, Latin America, and throughout Europe. For purposes of this report, references to "international" or "foreign" relate to non-U.S. matters while references to "domestic" relate to U.S. matters. Our fiscal year-end is generally determined on a 52-week basis and runs from the Monday nearest to the 31st of December of a year and ends on the Sunday nearest to the 31st of December of the following year. Every few years, it is necessary to add an extra week to the year making it a 53-week period. The fiscal year ended December 31, 2017 was a 53-week period. The condensed consolidated financial statements and accompanying notes present our consolidated results for each of the three and nine months ended September 30, 2018 and September 24, 2017. The three and nine months ended September 30, 2018 and September 24, 2017 each consisted of thirteen and thirty-nine weeks, respectively. All amounts are presented in U.S. dollars ($), except where expressly stated as being in other currencies, e.g., Euros (€). References in these notes to the condensed consolidated financial statements to "we," "our" and "us" refer to Wright Medical Group N.V. and its subsidiaries after the merger with Tornier N.V. (legacy Tornier) (Wright/Tornier merger) and Wright Medical Group, Inc. (WMG or legacy Wright) and its subsidiaries before the Wright/Tornier merger. |
Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation. The unaudited condensed consolidated interim financial statements of Wright Medical Group N.V. have been prepared in accordance with U.S. generally accepted accounting principles (US GAAP) for interim financial statements and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to these rules and regulations. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC on February 27, 2018. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments necessary for a fair presentation of our interim financial results. All such adjustments are of a normal and recurring nature. The results of operations for any interim period are not indicative of results for the full fiscal year. The accompanying unaudited condensed consolidated interim financial statements include our accounts and those of our controlled subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. Revenue recognition. Our revenues are primarily generated through two types of customers, hospitals and surgery centers and stocking distributors, with the majority of our revenue derived from sales to hospitals and surgery centers. Our products are sold through a network of employee and independent sales representatives in the United States and by a combination of employee sales representatives, independent sales representatives, and stocking distributors outside the United States. We record revenues from sales to hospitals and surgery centers upon transfer of control of promised products in an amount that reflects the consideration we expect to receive in exchange for those products, which is generally when the product is surgically implanted in a patient. We record revenues from sales to our stocking distributors at a point in time upon transfer of control of promised products to the distributor. Our stocking distributors, who sell the products to their customers, take control of the products and assume all risks of ownership upon transfer. Our stocking distributors are obligated to pay us within specified terms regardless of when, if ever, they sell the products. In general, our stocking distributors do not have any rights of return or exchange; however, in limited situations, we have repurchase agreements with certain stocking distributors. Those certain agreements require us to repurchase a specified percentage of the inventory purchased by the distributor within a specified period of time prior to the expiration of the contract. During those specified periods, we defer the applicable percentage of the sales. An insignificant amount of sales related to these types of agreements was deferred and not yet recognized as revenue as of September 30, 2018 and December 31, 2017. We must make estimates of potential future product returns related to current period product sales. We base our estimate for sales returns on historical sales and product return information, including historical experience and trend information. Our reserve for sales returns has historically been immaterial. We incur shipping and handling costs associated with the shipment of goods to customers, independent distributors, and our subsidiaries. Amounts billed to customers for shipping and handling of products are included in net sales. Costs incurred related to shipping and handling of products to customers are included in selling, general and administrative expenses. We also record depreciation on surgical instruments used by our hospital and surgery center customers within selling, general and administrative expense as these costs are considered to be similar to shipping and handling costs, necessary to deliver the implant products to the end customer. Discontinued Operations. On October 21, 2016, pursuant to a binding offer letter dated as of July 8, 2016, Tornier France SAS (Tornier France) and certain other entities related to us and Corin Orthopaedics Holdings Limited (Corin) entered into a business sale agreement and simultaneously completed and closed the sale of our former Large Joints business. Pursuant to the terms of the agreement, we sold substantially all of our assets related to our Large Joints business to Corin for approximately €29.7 million in cash, less approximately €11.1 million for net working capital adjustments. Upon closing, the parties also executed a transitional services agreement and supply agreement, among other ancillary agreements required to implement the transaction. These agreements were on arm’s length terms and were not material to our consolidated financial statements. On January 9, 2014, pursuant to an Asset Purchase Agreement, dated as of June 18, 2013 (the MicroPort Agreement), by and among us and MicroPort Scientific Corporation (MicroPort), we completed the divesture and sale of our business operations operating under our prior OrthoRecon operating segment to MicroPort. All historical operating results for the Large Joints and OrthoRecon businesses are reflected within discontinued operations in the condensed consolidated financial statements. See Note 4 for further discussion of discontinued operations. Other than Note 4, unless otherwise stated, all discussion of assets and liabilities in these Notes to the condensed consolidated financial statements reflects the assets and liabilities held and used in our continuing operations, and all discussion of revenues and expenses reflects those associated with our continuing operations. Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, and has subsequently issued several supplemental and/or clarifying ASUs (collectively ASC 606). Accounting Standards Codification (ASC) 606 prescribes a single common revenue standard that replaces most existing US GAAP revenue recognition guidance. ASC 606 outlines a five-step model, under which we will recognize revenue as performance obligations within a customer contract are satisfied. ASC 606 is intended to provide more consistent interpretation and application of the principles outlined in the standard across filers in multiple industries and within the same industries compared to current practices, which should improve comparability. We adopted ASC 606 during the quarter ended April 1, 2018. Revenue is recognized at a point in time, generally upon surgical implantation or shipment of products to distributors. Therefore, adoption of ASC 606 did not have a material effect on our consolidated financial statements except for the additional disclosures included within Note 14. On February 25, 2016, the FASB issued ASU 2016-02, Leases, and has subsequently issued ASU 2018-10 and ASU 2018-11 which clarifies this guidance (collectively ASC 842). ASC 842 introduces a lessee model that brings most leases on the balance sheet. The new standard also aligns many of the underlying principles of the new lessor model with those in FASB ASC 606, the FASB’s new revenue recognition standard (e.g., those related to evaluating when profit can be recognized). Furthermore, ASC 842 addresses other concerns related to the current leases model. ASC 842 will be effective for us beginning in fiscal year 2019. We have evaluated the practical expedients and plan to adopt the hindsight practical expedient, the practical expedient for short-term leases, the practical expedient package which primarily limits the need for reassessing lease classification on existing leases, and to issue our financial statements showing comparative lease disclosures under current GAAP. We do not anticipate adoption of these updates will have a material impact on net earnings or cash flows and continue to assess the impact on our consolidated balance sheets. On January 26, 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The guidance in the ASU is effective for our interim and annual goodwill impairment tests beginning in 2020 with early adoption permitted. We are in the initial phases of our adoption plans; and, accordingly, we are unable to estimate any effect this may have on our consolidated financial statements. |
Acquisitions (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions IMASCAP On December 14, 2017, we completed the acquisition of IMASCAP SAS (IMASCAP), a leader in the development of software-based solutions for preoperative planning of shoulder replacement surgery. The intent of this transaction is to ensure exclusive access to breakthrough software enabling technology and patents to further differentiate our product portfolio and to further accelerate growth opportunities in our global extremities business. Under the terms of the agreement with IMASCAP, we acquired 100% of IMASCAP’s outstanding equity on a fully diluted basis for an initial payment of €52.9 million, or approximately $62.3 million, consisting of approximately €39.7 million, or approximately $46.7 million, in cash and approximately €13.2 million, or approximately $15.6 million, representing 661,753 Wright ordinary shares, payable at closing. Additionally, the purchase price included an estimated €15.1 million, or approximately $17.8 million, of contingent consideration related to the achievement of certain technical milestones and sales earnouts. The technical milestones involve the development and approval of a next generation reverse shoulder implant system and new software modules. The sales earnouts relate to certain guides and the next generation reverse shoulder implant system. Purchase Consideration and Net Assets Acquired The following presents the preliminary allocation of the purchase consideration to the assets acquired and liabilities assumed on December 14, 2017 (in thousands):
The purchase consideration was allocated to the net assets acquired based on their estimated fair values at the acquisition date. The fair values were based on management’s analysis, including work performed by third-party valuation specialists. Operating assets and liabilities were valued at their existing carrying values as they represented the fair value of those items at the acquisition date, based on management’s judgments and estimates. In determining the fair value of intangibles, we used an income method which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants and include the amount and timing of future cash flows (including expected growth rates and profitability), technology life cycles, and the discount rate applied to the cash flows. Of the $10.9 million of acquired intangible assets, $5.6 million was assigned to developed technology (6-year life) and $5.3 million was assigned to in-process research and development. The excess of the cost of the acquisition over the fair value of the net assets acquired is recorded as goodwill. The goodwill is primarily attributable to strategic opportunities that arose from the acquisition of IMASCAP. The goodwill is not expected to be deductible for tax purposes. During the nine months ended September 30, 2018, we revised opening balances acquired as a result of the IMASCAP acquisition, primarily for accounts receivable; other current assets; accrued expenses and other current liabilities; and deferred tax liabilities which resulted in a $0.9 million decrease in the preliminary value of goodwill determined as of December 14, 2017. |
Discontinued Operations (Notes) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations For the three months ended September 30, 2018, our loss from discontinued operations, net of tax, totaled $6.7 million. For the nine months ended September 30, 2018, our income from discontinued operations, net of tax, totaled $10.6 million. For the three and nine months ended September 24, 2017, our loss from discontinued operations, net of tax, totaled $97.7 million and $139.9 million, respectively. Our operating results from discontinued operations during 2018 and 2017 were attributable primarily to expenses, net of insurance recoveries, associated with legacy Wright's former OrthoRecon business as described in Note 13 and, to a lesser degree, the former Large Joints business. Large Joints Business On October 21, 2016, pursuant to a binding offer letter dated as of July 8, 2016, Tornier France, Corin, and certain other entities related to us and Corin entered into a business sale agreement and simultaneously completed and closed the sale of our Large Joints business. Pursuant to the terms of the agreement, we sold substantially all of the assets related to our Large Joints business to Corin for approximately €29.7 million in cash, less approximately €11.1 million for net working capital adjustments. Upon closing, the parties also executed a transitional services agreement and supply agreement, among other ancillary agreements required to implement the transaction. These agreements are on arm’s length terms and are not expected to be material to our condensed consolidated financial statements. All historical operating results for the Large Joints business as well as continued involvement in accordance with the transitional service agreement and supply agreement are reflected within discontinued operations in the condensed consolidated statements of operations. For the three and nine months ended September 30, 2018, our loss from discontinued operations for the Large Joints business, net of tax, totaled $0.3 million and $0.7 million, respectively, and are primarily attributable to costs associated with transition services. For the three and nine months ended September 24, 2017, our loss from discontinued operations for the Large Joints business, net of tax, totaled $0.9 million and $2.4 million, respectively, and are primarily attributable to professional fees and internal costs to support transition activities, costs associated with transition services and working capital adjustments. Cash provided by operating activities from the Large Joints business totaled $2.7 million for the nine months ended September 30, 2018. Cash used in operating activities by the Large Joints business totaled $3.5 million for the nine months ended September 24, 2017. OrthoRecon Business On January 9, 2014, legacy Wright completed the divestiture and sale of its OrthoRecon business to MicroPort Scientific Corporation. Certain liabilities associated with the OrthoRecon business, including product liability claims associated with hip and knee products sold by legacy Wright prior to the closing, were not assumed by MicroPort. Charges associated with these product liability claims, including legal defense, settlements and judgments, income associated with product liability insurance recoveries, and changes to any contingent liabilities associated with the OrthoRecon business have been reflected within results of discontinued operations, and we will continue to reflect these within results of discontinued operations in future periods. As described within Note 13, in September 2015, the third insurance carrier in the policy year applicable to titanium modular neck fracture claims denied coverage under its $25 million excess liability policy despite full payout by the other carriers in that policy year. We strongly disputed the carrier's position and, in accordance with the dispute resolution provisions of the policy, initiated an arbitration proceeding in London, England seeking payment of these funds. The arbitration proceeding was completed on February 15, 2018 and, on April 11, 2018, the arbitration tribunal issued its ruling. Thereafter, we and the insurance carrier agreed to resolve the entire matter in exchange for a single lump sum payment by the carrier to us in the amount of $30.75 million, representing the full policy limits of $25 million plus an additional $5.75 million for legal costs and interest. We received payment of this sum from the carrier on May 8, 2018. This insurance recovery is reflected within our results of discontinued operations for the quarter ended July 1, 2018. All current and historical operating results for the OrthoRecon business are reflected within discontinued operations in the condensed consolidated financial statements. The following table summarizes the results of discontinued operations for the OrthoRecon business (in thousands):
We will incur continuing cash outflows associated with legal defense costs and the ultimate resolution of these contingent liabilities, net of insurance proceeds, until these liabilities are resolved. Cash used in operating activities by the OrthoRecon business totaled $46.8 million and $142.7 million for the nine months ended September 30, 2018 and September 24, 2017, respectively. |
Inventories |
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Inventories | Inventories Inventories consist of the following (in thousands):
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Derivatives and Fair Value of Financial Instruments |
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Derivatives and Fair Value [Text Block] | Fair Value of Financial Instruments and Derivatives We account for derivatives in accordance with FASB ASC 815, which establishes accounting and reporting standards requiring that derivative instruments be recorded on the balance sheet as either an asset or liability measured at fair value. Additionally, changes in the derivatives' fair value shall be recognized currently in earnings unless specific hedge accounting criteria are met. FASB ASC Section 820, Fair Value Measurement requires fair value measurements be classified and disclosed in one of the following three categories:
2023 Notes Conversion Derivative and Notes Hedges On June 28, 2018, we issued $675 million aggregate principal amount of 1.625% cash exchangeable senior notes due 2023 (2023 Notes). The 2023 Notes are referred to as "exchangeable" in the 2023 Notes Indenture (as defined in Note 9) because they were issued by WMG, not us. See Note 9 of the condensed consolidated financial statements for additional information regarding the 2023 Notes. The 2023 Notes have a conversion derivative feature (2023 Notes Conversion Derivative) that requires bifurcation from the 2023 Notes in accordance with ASC Topic 815 and is accounted for as a derivative liability. The fair value of the 2023 Notes Conversion Derivative at the time of issuance of the 2023 Notes was $124.6 million. In connection with the issuance of the 2023 Notes, we entered into hedges (2023 Notes Hedges) with two option counterparties. The 2023 Notes Hedges, which are cash-settled, are generally intended to reduce our exposure to potential cash payments that we are required to make upon conversion of the 2023 Notes in excess of the principal amount of converted notes if our ordinary share price exceeds the conversion price. The aggregate cost of the 2023 Notes Hedges was $141.3 million and is accounted for as a derivative asset in accordance with ASC Topic 815. However, in connection with certain events, these option counterparties have the discretion to make certain adjustments to the 2023 Note Hedges, which may reduce the effectiveness of the 2023 Note Hedges. The following table summarizes the fair value and the presentation in our condensed consolidated balance sheets (in thousands) of the 2023 Notes Hedges and 2023 Notes Conversion Derivative:
The 2023 Notes Hedges and the 2023 Notes Conversion Derivative are measured at fair value using Level 3 inputs. These instruments are not actively traded and are valued using an option pricing model that uses observable and unobservable market data for inputs. Neither the 2023 Notes Conversion Derivative nor the 2023 Notes Hedges qualify for hedge accounting; thus, any changes in the fair value of the derivatives are recognized immediately in our condensed consolidated statements of operations. The following table summarizes the net gain (loss) on changes in fair value (in thousands) related to the 2023 Notes Hedges and 2023 Notes Conversion Derivative:
2021 Notes Conversion Derivative and Notes Hedges On May 20, 2016, we issued $395 million aggregate principal amount of 2.25% cash convertible senior notes due 2021 (2021 Notes). See Note 9 of the condensed consolidated financial statements for additional information regarding the 2021 Notes. The 2021 Notes have a conversion derivative feature (2021 Notes Conversion Derivative) that requires bifurcation from the 2021 Notes in accordance with ASC Topic 815 and is accounted for as a derivative liability. The fair value of the 2021 Notes Conversion Derivative at the time of issuance of the 2021 Notes was $117.2 million. In connection with the issuance of the 2021 Notes, we entered into hedges (2021 Notes Hedges) with two option counterparties. The 2021 Notes Hedges, which are cash-settled, are generally intended to reduce our exposure to potential cash payments that we are required to make upon conversion of the 2021 Notes in excess of the principal amount of converted notes if our ordinary share price exceeds the conversion price. The aggregate cost of the 2021 Notes Hedges was $99.8 million and is accounted for as a derivative asset in accordance with ASC Topic 815. However, in connection with certain events, these option counterparties have the discretion to make certain adjustments to the 2021 Note Hedges, which may reduce the effectiveness of the 2021 Note Hedges. The following table summarizes the fair value and the presentation in our condensed consolidated balance sheets (in thousands) of the 2021 Notes Hedges and 2021 Notes Conversion Derivative:
As of September 30, 2018, the closing price of our ordinary shares was greater than 130% of the 2021 Notes conversion price for 20 or more of the 30 consecutive trading days preceding the quarter-end; and, therefore, the holders of the 2021 Notes may convert the notes during the succeeding quarterly period. Due to the ability of the holders of the 2021 Notes to convert the notes during this period, the carrying value of the 2021 Notes and the fair value of the 2021 Notes Conversion Derivative were classified as current liabilities, and the fair value of the 2021 Notes Hedges were classified as current assets as of September 30, 2018. The respective balances were classified as long-term as of December 31, 2017. We currently do not expect significant conversions because the 2021 Notes currently trade at a premium to the as-converted value, and a converting holder would forego future interest payments. However, any conversions would reduce our cash resources. We believe that, in the event that holders elect to exercise the conversion option, our cash resources and access to additional borrowings would provide the necessary liquidity. The 2021 Notes Hedges and the 2021 Notes Conversion Derivative are measured at fair value using Level 3 inputs. These instruments are not actively traded and are valued using an option pricing model that uses observable and unobservable market data for inputs. Neither the 2021 Notes Conversion Derivative nor the 2021 Notes Hedges qualify for hedge accounting; thus, any changes in the fair value of the derivatives are recognized immediately in our condensed consolidated statements of operations. The following table summarizes the net gain (loss) on changes in fair value (in thousands) related to the 2021 Notes Hedges and 2021 Notes Conversion Derivative:
2020 Notes Conversion Derivative and Notes Hedges On February 13, 2015, WMG issued $632.5 million aggregate principal amount of 2.00% cash convertible senior notes due 2020 (2020 Notes). See Note 9 of the condensed consolidated financial statements for additional information regarding the 2020 Notes. The 2020 Notes have a conversion derivative feature (2020 Notes Conversion Derivative) that requires bifurcation from the 2020 Notes in accordance with ASC Topic 815 and is accounted for as a derivative liability. The fair value of the 2020 Notes Conversion Derivative at the time of issuance of the 2020 Notes was $149.8 million. In connection with the issuance of the 2020 Notes, WMG entered into hedges (2020 Notes Hedges) with three option counterparties. The 2020 Notes Hedges, which are cash-settled, are generally intended to reduce WMG's exposure to potential cash payments that WMG is required to make upon conversion of the 2020 Notes in excess of the principal amount of converted notes if our ordinary share price exceeds the conversion price. The aggregate cost of the 2020 Notes Hedges was $144.8 million and is accounted for as a derivative asset in accordance with ASC Topic 815. However, in connection with certain events, these option counterparties have the discretion to make certain adjustments to the 2020 Note Hedges, which may reduce the effectiveness of the 2020 Note Hedges. Concurrently with the issuance and sale of the 2021 Notes, certain holders of the 2020 Notes exchanged approximately $45 million aggregate principal amount of 2020 Notes for the 2021 Notes. For each $1,000 principal amount of 2020 Notes validly submitted for exchange, we delivered $990.00 principal amount of the 2021 Notes (subject, in each case, to rounding down to the nearest $1,000 principal amount of the 2021 Notes, the difference being referred as the rounded amount) to the investor plus an amount of cash equal to the unpaid interest on the 2020 Notes and the rounded amount at an aggregate cost of approximately $44.6 million. We settled the associated portion of the 2020 Notes Conversion Derivative at a benefit of approximately $0.4 million and satisfied the accrued interest, which was not material. In addition, during the second quarter of 2016, we settled a portion of the 2020 Notes Hedges (receiving $3.9 million) and repurchased a portion of the warrants associated with the 2020 Notes (paying $3.3 million), generating net proceeds of approximately $0.6 million. Concurrently with the issuance and sale of the 2023 Notes, certain holders of the 2020 Notes exchanged approximately $400.9 million aggregate principal amount of their 2020 Notes for the 2023 Notes. For each $1,000 principal amount of 2020 Notes validly submitted for exchange, we delivered $1,138.70 principal amount of the 2023 Notes (subject to rounding down to the nearest $1,000 principal amount of the 2023 Notes for each exchanging investor, the difference being referred as the rounded amount) to the investor. As part of this exchange we settled a pro rata portion of the 2020 Notes Conversion Derivative for $55.6 million. During the second quarter of 2018, we agreed to settle a pro rata portion of the 2020 Notes Hedges. We also agreed to repurchase a pro rata portion of the warrants associated with the 2020 Notes (2020 Warrants Derivative) and recorded a derivative liability which had a fair value of $27.3 million as of June 28, 2018. Prior to this agreement, the warrants were recorded within shareholders' equity as, at that time, the warrants were expected to be net-share settled. The pricing of the settled portion of the 2020 Notes Hedges and 2020 Warrants Derivative was based on the volume-weighted average price of our stock price during July 9, 2018 and July 27, 2018, the unwind period. On July 30, 2018, we received proceeds of approximately $34.6 million related to the 2020 Notes Hedges and paid $24.0 million related to the 2020 Warrants Derivative, generating net proceeds of $10.6 million. As of September 30, 2018, we had warrants on the 2020 Notes which were exercisable for 6.2 million ordinary shares with a strike price of $38.8010 per ordinary share. The following table summarizes the fair value and the presentation in our condensed consolidated balance sheets (in thousands) of the 2020 Notes Hedges and 2020 Notes Conversion Derivative:
The holders of the 2020 Notes may convert their notes at any time prior to August 15, 2019 solely into cash upon satisfaction of certain circumstances as described in Note 9. On or after August 15, 2019, holders may convert their 2020 Notes solely into cash, regardless of the foregoing circumstances. Due to the ability of the holders of the 2020 Notes to convert within the next year, the carrying value of the 2020 Notes and the fair value of the 2020 Notes Conversion Derivatives were classified as current liabilities and the fair value of the 2020 Notes Hedges was classified as current assets as of September 30, 2018. The respective balances were all classified as long-term as of December 31, 2017. The 2020 Notes Hedges, 2020 Notes Conversion Derivative, and the 2020 Warrants Derivative are measured at fair value using Level 3 inputs. These instruments are not actively traded and are valued using an option pricing model that uses observable and unobservable market data for inputs. Neither the 2020 Notes Conversion Derivative, 2020 Notes Hedges nor the 2020 Warrants Derivative qualify for hedge accounting; thus, any change in the fair value of the derivatives is recognized immediately in our condensed consolidated statements of operations. Changes in the fair value of the 2020 Warrants Derivative and the portion of the 2020 Notes Hedges which were settled between June 28, 2018 and the cash settlement date are included within our condensed consolidated statements of operations. The following table summarizes the net (loss) gain on changes in fair value (in thousands) related to the 2020 Notes Hedges, 2020 Warrants Derivative and 2020 Notes Conversion Derivative:
2017 Notes Conversion Derivative and Notes Hedges On August 31, 2012, WMG issued $300 million aggregate principal amount of 2.00% cash convertible senior notes due 2017 (2017 Notes). The 2017 Notes matured, and the remaining $2 million principal amount was repaid on August 15, 2017. See Note 9 of the condensed consolidated financial statements for additional information regarding the 2017 Notes. The 2017 Notes had a conversion derivative feature (2017 Notes Conversion Derivative) that required bifurcation from the 2017 Notes in accordance with ASC Topic 815 and was accounted for as a derivative liability. The fair value of the 2017 Notes Conversion Derivative at the time of issuance of the 2017 Notes was $48.1 million. In connection with the issuance of the 2017 Notes, WMG entered into hedges (2017 Notes Hedges) with three option counterparties. The aggregate cost of the 2017 Notes Hedges was $56.2 million and was accounted for as a derivative asset in accordance with ASC Topic 815. In connection with the issuance of the 2020 Notes, WMG used approximately $292 million of the 2020 Notes' net proceeds to repurchase and extinguish approximately $240 million aggregate principal amount of the 2017 Notes, settle the associated portion of the 2017 Notes Conversion Derivative at a cost of approximately $49 million, and satisfy the accrued interest of $2.4 million. WMG also settled all of the 2017 Notes Hedges (receiving $70 million) and repurchased all of the warrants associated with the 2017 Notes (paying $60 million), generating net proceeds of approximately $10 million. Concurrently with the issuance and sale of the 2021 Notes, certain holders of the 2017 Notes exchanged approximately $54.4 million aggregate principal amount of 2017 Notes (including the 2017 Notes Conversion Derivative) for the 2021 Notes. For each $1,000 principal amount of 2017 Notes validly submitted for exchange, we delivered $1,035.40 principal amount of the 2021 Notes (subject, in each case, to rounding down to the nearest $1,000 principal amount of the 2021 Notes, the difference being referred as the rounded amount) to the investor plus an amount of cash equal to the unpaid interest on the 2017 Notes and the rounded amount at a cost of approximately $56.3 million. We settled the associated portion of the 2017 Notes Conversion Derivative at a cost of approximately $1.9 million and satisfied the accrued interest, which was not material. In addition, during the second quarter of 2016, we repurchased and extinguished an additional $3.6 million aggregate principal amount of the 2017 Notes in privately negotiated transactions and settled the associated portion of the 2017 Notes Conversion Derivative at a cost of approximately $0.1 million, and satisfied the accrued interest, which was not material. The remainder of the 2017 Notes Conversion Derivative was settled at a cost of approximately $0.2 million in conjunction with the maturity of the 2017 Notes on August 15, 2017. The 2017 Notes Conversion Derivative was measured at fair value using Level 3 inputs. This instrument was not actively traded and was valued using an option pricing model that used observable and unobservable market data for inputs. Neither the 2017 Notes Conversion Derivative nor the 2017 Notes Hedges qualified for hedge accounting; thus, any change in the fair value of the derivatives was recognized immediately in our condensed consolidated statements of operations. The following table summarizes the net gain (loss) on changes in fair value (in thousands) related to the 2017 Notes Conversion Derivative:
To determine the fair value of the embedded conversion option in the 2020, 2021, and 2023 Notes Conversion Derivatives, a trinomial lattice model was used. A trinomial stock price lattice generates three possible outcomes of stock price - one up, one down, and one stable. This lattice generates a distribution of stock prices at the maturity date and throughout the life of the 2020, 2021, and 2023 Notes. Using this stock price lattice, a convertible note lattice was created where the value of the embedded conversion option was estimated by comparing the value produced in a convertible note lattice with the option to convert against the value without the ability to convert. In each case, the convertible note lattice first calculates the possible convertible note values at the maturity date, using the distribution of stock prices, which equals to the maximum of (x) the remaining bond cash flows and (y) stock price times the conversion price. The values of the 2020, 2021, and 2023 Notes Conversion Derivatives at the valuation date were estimated using the values at the maturity date and moving back in time on the lattices (both for the lattice with the conversion option and without the conversion option). Specifically, at each node, if the 2020, 2021, or 2023 Notes are eligible for early conversion, the value at this node is the maximum of (i) converting to stock, which is the stock price times the conversion price, and (ii) holding onto the 2020, 2021, and 2023 Notes, which is the discounted and probability-weighted value from the three possible outcomes at the future nodes plus any accrued but unpaid coupons that are not considered at the future nodes. If the 2020, 2021, or 2023 Notes are not eligible for early conversion, the value of the conversion option at this node equals to (ii). In the lattice, a credit adjustment was applied to the discount for each cash flow in the model as the embedded conversion option, as well as the coupon and notional payments, is settled with cash instead of shares. To estimate the fair value of the 2020, 2021 and 2023 Notes Hedges, we used the Black-Scholes formula combined with credit adjustments, as the option counterparties have credit risk and the call options are cash settled. We assumed that the call options will be exercised at the maturity since our ordinary shares do not pay any dividends and management does not expect to declare dividends in the near term. The following assumptions were used in the fair market valuations as of September 30, 2018:
Derivatives not Designated as Hedging Instruments During 2017, we employed a derivative program using foreign currency forward contracts to mitigate the risk of currency fluctuations on our intercompany receivable and payable balances that are denominated in foreign currencies. These forward contracts were expected to offset the transactional gains and losses on the related intercompany balances. These forward contracts were not designated as hedging instruments under FASB ASC Topic 815. Accordingly, the changes in the fair value and the settlement of the contracts were recognized in the period incurred in the accompanying condensed consolidated statements of operations. During the quarter ended April 1, 2018, we discontinued our foreign currency forward contracts derivative program. At September 30, 2018 and December 31, 2017, we had no foreign currency contracts outstanding. As a result of the acquired sales and distribution business of Surgical Specialties Australia Pty. Ltd in 2015, we had recorded the estimated fair value of future contingent consideration of approximately $0.9 million as of December 31, 2017 which was paid during the quarter ended April 1, 2018. As a result of the acquired business of IMASCAP in 2017, we have recorded the estimated fair value of future contingent consideration of approximately €16.1 million, or approximately $18.6 million, related to the achievement of certain technical milestones and sales earnouts as of September 30, 2018. The estimated fair value of contingent consideration related to technical milestones totaled $12.4 million and $11.9 million as of September 30, 2018 and December 31, 2017, respectively, and is contingent upon the development and approval of a next generation reverse shoulder implant system and new software modules. The estimated fair value of contingent consideration related to sales earnouts totaled $6.3 million and $5.9 million as of September 30, 2018 and December 31, 2017, respectively, and is contingent upon the sale of certain guides and the next generation reverse shoulder implant system. The fair values of the sales earn out contingent consideration as of September 30, 2018 and December 31, 2017 were determined using a discounted cash flow model and probability adjusted estimates of the future earnings and is classified in Level 3. The discount rate is 12% for IMASCAP and was 14% for Surgical Specialties Australia Pty. Ltd. The contingent consideration from the IMASCAP acquisition related to technical milestones is based on meeting certain developmental milestones for new software modules and for the FDA and CE approval for the next generation reverse shoulder implant system. The fair value of this contingent consideration as of September 30, 2018 and December 31, 2017 was determined using probability adjusted estimates of the future payments and is classified in Level 3. The discount rate is approximately 6% for IMASCAP. A change in the discount rate would have limited impact on our profits or the fair value of this contingent consideration. On March 1, 2013, as part of our acquisition of BioMimetic Therapeutics, Inc. (BioMimetic), we issued Contingent Value Rights (CVRs) as part of the merger consideration. Each CVR entitles its holder to receive additional cash payments of up to $6.50 per share, which are payable upon receipt of FDA approval of AUGMENT® Bone Graft and upon achieving certain revenue milestones. On September 1, 2015, AUGMENT® Bone Graft received FDA approval and the first of the milestone payments associated with the CVRs was paid out at $3.50 per share, which totaled $98.1 million. The fair value of the CVRs outstanding at September 30, 2018 and December 31, 2017 was $39.2 million and $42.3 million, respectively, and was determined using the closing price of the security in the active market (Level 1), and is reflected within "Accrued expenses and other current liabilities" on our condensed consolidated balance sheet. For the three months ended September 30, 2018 and September 24, 2017, the change in the fair value of the CVRs resulted in expense of $3.4 million and $4.5 million, respectively. For the nine months ended September 30, 2018 and September 24, 2017, the change in the fair value of the CVRs resulted in income of $3.1 million and expense of $6.7 million, respectively. The income or expense related to the change in the value of the CVRs is recorded in “Other expense, net” in our condensed consolidated statements of operations. If, prior to March 1, 2019, sales of AUGMENT® Bone Graft reach $40 million over 12 consecutive months, cash payment would be required at $1.50 per share, or $42 million. Sales for AUGMENT® Bone Graft reached $40 million for the 12 months ended October 28, 2018 which will result in the $42 million payment during the fourth quarter of 2018. Further, if, prior to March 1, 2019, sales of AUGMENT® Bone Graft reach $70 million over 12 consecutive months, an additional cash payment would be required at $1.50 per share, or $42 million. The carrying value of cash and cash equivalents, accounts receivable, and accounts payable approximates the fair value of these financial instruments at September 30, 2018 and December 31, 2017 due to their short maturities and variable rates. The following tables summarize the valuation of our financial instruments (in thousands):
The following is a roll forward of our assets and liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) (in thousands):
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Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, net consists of the following (in thousands):
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Goodwill and Intangibles |
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Goodwill and Intangibles | Goodwill and Intangible Assets Changes in the carrying amount of goodwill occurring during the nine months ended September 30, 2018 are as follows (in thousands):
Goodwill is recognized for the excess of the purchase price over the fair value of net assets of businesses acquired. Goodwill is required to be tested for impairment at least annually. Unless circumstances otherwise dictate, the annual impairment test is performed in the fourth quarter annually. During the nine months ended September 30, 2018, we revised opening balances acquired as a result of the IMASCAP acquisition, primarily for accounts receivable; other current assets; accrued expenses and other current liabilities; and deferred tax liabilities which resulted in a $0.9 million decrease in the preliminary value of goodwill determined as of December 14, 2017. See Note 3 for additional discussion of these adjustments. Following the December 2017 IMASCAP acquisition, foreign currency translation will be reported within the U.S. Upper Extremities segment. While the IMASCAP offices are located in France and the majority of their operations have a functional currency of the Euro, the results of the IMASCAP business are managed by U.S. Upper Extremities segment. The components of our identifiable intangible assets, net, are as follows (in thousands):
During September 2018, we received FDA clearance of AEQUALIS® Adjustable Reversed Ext (AARE) (re-branded in 2016 to AEQUALIS® Flex Revive), which resulted in a $1.0 million reclassification from IPRD technology to completed technology. Based on the total finite life intangible assets held at September 30, 2018, we expect amortization expense of approximately $24.6 million in 2018, $22.8 million in 2019, $22.1 million in 2020, $21.9 million in 2021, and $21.9 million in 2022. |
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Long Term Debt and Capital Lease Obligations | Debt and Capital Lease Obligations Debt and capital lease obligations consist of the following (in thousands):
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2023 Notes On June 28, 2018, WMG issued $675 million aggregate principal amount of the 2023 Notes pursuant to an indenture (2023 Notes Indenture), dated as of June 28, 2018, with The Bank of New York Mellon Trust Company, N.A., as trustee. The 2023 Notes are fully and unconditionally guaranteed by us on a senior unsecured basis. The 2023 Notes are referred to as "exchangeable" in the 2023 Notes Indenture because they were issued by WMG, not us. The 2023 Notes require interest to be paid at an annual rate of 1.625% semi-annually in arrears on each June 15 and December 15 and will mature on June 15, 2023 unless earlier converted or repurchased. The 2023 Notes are convertible, subject to certain conditions, solely into cash. The initial conversion rate for the 2023 Notes is 29.9679 ordinary shares (subject to adjustment as provided in the 2023 Notes Indenture) per $1,000 principal amount of the 2023 Notes (subject to, and in accordance with, the settlement provisions of the 2023 Notes Indenture), which is equal to an initial conversion price of approximately $33.37 per ordinary share. WMG may not redeem the 2023 Notes prior to the maturity date, and no “sinking fund” is available for the 2023 Notes, which means that WMG is not required to redeem or retire the 2023 Notes periodically. The holders of the 2023 Notes may convert their 2023 Notes at any time prior to the close of business on the business day immediately preceding December 15, 2022 solely into cash, in multiples of $1,000 principal amount, upon satisfaction of one or more of the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2018 (and only during such calendar quarter), if the last reported sale price of our ordinary shares for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of 2023 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our ordinary shares and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after December 15, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2023 Notes solely into cash, regardless of the foregoing circumstances. Upon conversion, a holder will receive an amount in cash, per $1,000 principal amount of the 2023 Notes, equal to the settlement amount as calculated under the 2023 Notes Indenture. If a fundamental change, as defined in the 2023 Notes Indenture, occurs, subject to certain conditions, holders of the 2023 Notes will have the option to require WMG to repurchase for cash all or a portion of their 2023 Notes at a repurchase price equal to 100% of the principal amount of the 2023 Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date, as defined in the 2023 Notes Indenture. In addition, following a make-whole fundamental change, as defined in the 2023 Notes Indenture, that occurs prior to the maturity date, WMG, under certain circumstances, will increase the applicable conversion rate for a holder that elects to convert its 2023 Notes in connection with such make-whole fundamental change. Our guarantee of the 2023 Notes is our senior unsecured obligation that ranks: (i) senior in right of payment to any of our indebtedness that is expressly subordinated in right of payment to the guarantee; (ii) equal in right of payment to any of our unsecured indebtedness that is not so subordinated; (iii) effectively junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and (iv) structurally junior to all indebtedness and other liabilities (including trade payables) of our subsidiaries. As a result of the issuance of the 2023 Notes, we recorded deferred financing charges of approximately $12.4 million, which are being amortized over the term of the 2023 Notes using the effective interest method. The 2023 Notes Exchange Derivative requires bifurcation from the 2023 Notes in accordance with ASC Topic 815, Derivatives and Hedging, and is accounted for as a derivative liability. See Note 6 for additional information regarding the 2023 Notes Exchange Derivative. The fair value of the 2023 Notes Exchange Derivative at the time of issuance of the 2023 Notes was $124.6 million and was recorded as original debt discount for purposes of accounting for the debt component of the 2023 Notes. This discount is amortized as interest expense using the effective interest method over the term of the 2023 Notes using an effective interest rate of 6.06%. For the three and nine months ended September 30, 2018, we recorded $4.9 million and $5.1 million of interest expense related to the amortization of the debt discount, respectively. The components of the 2023 Notes were as follows (in thousands):
The estimated fair value of the 2023 Notes was approximately $715.8 million at September 30, 2018, based on a quoted price in an active market (Level 1). We and WMG entered into 2023 Notes Hedges in connection with the issuance of the 2023 Notes with two counterparties. The 2023 Notes Hedges, which are cash-settled, are generally intended to reduce WMG's exposure to potential cash payments that WMG would be required to make if holders elect to convert the 2023 Notes at a time when our ordinary share price exceeds the conversion price. However, in connection with certain events, including, among others, (i) a merger or other make-whole fundamental change; (ii) certain hedging disruption events, which may include changes in tax laws, an increase in the cost of borrowing our ordinary shares in the market or other material increases in the cost to the option counterparties of hedging the 2023 Note Hedges; (iii) our or WMG's failure to perform certain obligations under the 2023 Notes Indenture or under the 2023 Notes Hedges; (iv) certain defaults on our, WMG's or any our other subsidiary's indebtedness in excess of $25 million; or (v) if we, WMG or any of our significant subsidiaries become insolvent or otherwise becomes subject to bankruptcy proceedings, the option counterparties have the discretion to terminate the 2023 Notes Hedges, which may reduce the effectiveness of the 2023 Notes Hedges. In addition, the option counterparties have broad discretion to make certain adjustments to the 2023 Notes Hedges and warrant transactions upon the occurrence of certain other events, including, among others, (i) any adjustment to the conversion rate of the 2023 Notes; or (ii) upon the announcement of certain significant corporate events, including events that may give rise to a termination event as described above, such as the announcement of a third-party tender offer. Any such adjustment may also reduce the effectiveness of the 2023 Note Hedges. The aggregate cost of the 2023 Notes Hedges was $141.3 million and is accounted for as a derivative asset in accordance with ASC Topic 815. See Note 6 of the condensed consolidated financial statements for additional information regarding the 2023 Notes Hedges and the 2023 Notes Exchange Derivative. We also entered into warrant transactions in which we sold warrants that are initially exercisable into 20.2 million ordinary shares to the two option counterparties, subject to adjustment upon the occurrence of certain events, for an aggregate of $102.1 million. The strike price of the warrants is $40.86 per share, which was 50% above the last reported sale price of our ordinary shares on June 20, 2018. The warrants are expected to be net-share settled and exercisable over the 120 trading day period beginning on September 15, 2023. The warrant transactions will have a dilutive effect on our ordinary shares to the extent that the market value per ordinary share during such period exceeds the applicable strike price of the warrants. However, in connection with certain events, these option counterparties have the discretion to make certain adjustments to warrant transactions, which may increase our obligations under the warrant transactions. Aside from the initial payment of the $141.3 million premium in the aggregate to the two option counterparties and subject to the right of the option counterparties to terminate the 2023 Notes Hedges in certain circumstances, we do not expect to be required to make any cash payments to the option counterparties under the 2023 Notes Hedges and expect to be entitled to receive from the option counterparties cash, generally equal to the amount by which the market price per ordinary share exceeds the strike price of the convertible note hedging transactions during the relevant valuation period. The strike price under the 2023 Notes Hedges is initially equal to the conversion price of the 2023 Notes. However, in connection with certain events, these option counterparties have the discretion to make certain adjustments to the 2023 Note Hedges, which may reduce the effectiveness of the 2023 Note Hedges. Additionally, if the market value per ordinary share exceeds the strike price on any settlement date under the warrant transaction, we will generally be obligated to issue to the option counterparties in the aggregate a number of shares equal in value to one percent of the amount by which the then-current market value of one ordinary share exceeds the then-effective strike price of each warrant, multiplied by the number of ordinary shares into which the 2023 Notes are initially convertible. We will not receive any additional proceeds if warrants are exercised. As described in more detail below, concurrently with the issuance and sale of the 2023 Notes, certain holders of the 2020 Notes exchanged their 2020 Notes for the 2023 Notes. 2021 Notes On May 20, 2016, we issued $395 million aggregate principal amount of the 2021 Notes pursuant to an indenture (2021 Notes Indenture), dated as of May 20, 2016, between us and The Bank of New York Mellon Trust Company, N.A., as trustee. The 2021 Notes require interest to be paid at an annual rate of 2.25% semi-annually in arrears on each May 15 and November 15 and will mature on November 15, 2021 unless earlier converted or repurchased. The 2021 Notes are convertible, subject to certain conditions, solely into cash. The initial conversion rate for the 2021 Notes will be 46.8165 ordinary shares (subject to adjustment as provided in the 2021 Notes Indenture) per $1,000 principal amount of the 2021 Notes (subject to, and in accordance with, the settlement provisions of the 2021 Notes Indenture), which is equal to an initial conversion price of approximately $21.36 per ordinary share. We may not redeem the 2021 Notes prior to the maturity date, and no “sinking fund” is available for the 2021 Notes, which means that we are not required to redeem or retire the 2021 Notes periodically. The holders of the 2021 Notes may convert their 2021 Notes at any time prior to May 15, 2021 solely into cash, in multiples of $1,000 principal amount, upon satisfaction of one or more of the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2016 (and only during such calendar quarter), if the last reported sale price of our ordinary shares for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of 2021 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our ordinary shares and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after May 15, 2021 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2021 Notes solely into cash, regardless of the foregoing circumstances. Upon conversion, a holder will receive an amount in cash, per $1,000 principal amount of the 2021 Notes, equal to the settlement amount as calculated under the 2021 Notes Indenture. If we undergo a fundamental change, as defined in the 2021 Notes Indenture, subject to certain conditions, holders of the 2021 Notes will have the option to require us to repurchase for cash all or a portion of their 2021 Notes at a repurchase price equal to 100% of the principal amount of the 2021 Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date, as defined in the 2021 Notes Indenture. In addition, following certain corporate transactions, we, under certain circumstances, will increase the applicable conversion rate for a holder that elects to convert its 2021 Notes in connection with such corporate transaction. The 2021 Notes are senior unsecured obligations that rank: (i) senior in right of payment to any of our indebtedness that is expressly subordinated in right of payment to the 2021 Notes; (ii) equal in right of payment to any of our unsecured indebtedness that is not so subordinated; (iii) effectively junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and (iv) structurally junior to all indebtedness and other liabilities (including trade payables) of our subsidiaries. As a result of the issuance of the 2021 Notes, we recorded deferred financing charges of approximately $7.3 million, which are being amortized over the term of the 2021 Notes using the effective interest method. As of September 30, 2018, the closing price of our ordinary shares was greater than 130% of the 2021 Notes conversion price for 20 or more of the 30 consecutive trading days preceding the quarter-end; and, therefore, the holders of the 2021 Notes may convert the notes during the succeeding quarterly period. Due to the ability of the holders of the 2021 Notes to convert the notes during this period, the carrying value of the 2021 Notes and the fair value of the 2021 Notes Conversion Derivative were classified as current liabilities, and the fair value of the 2021 Notes Hedges were classified as current assets as of September 30, 2018. The respective balances were classified as long-term as of December 25, 2016. We currently do not expect significant conversions because the 2021 Notes currently trade at a premium to the as-converted value, and a converting holder would forego future interest payments. However, any conversions would reduce our cash resources. We believe that, in the event that holders elect to exercise the conversion option, our cash resources and access to additional borrowings would provide the necessary liquidity. The 2021 Notes Conversion Derivative requires bifurcation from the 2021 Notes in accordance with ASC Topic 815, Derivatives and Hedging, and is accounted for as a derivative liability. See Note 6 for additional information regarding the 2021 Notes Conversion Derivative. The fair value of the 2021 Notes Conversion Derivative at the time of issuance of the 2021 Notes was $117.2 million and was recorded as original debt discount for purposes of accounting for the debt component of the 2021 Notes. This discount is amortized as interest expense using the effective interest method over the term of the 2021 Notes using an effective rate of 9.72%. For the three and nine months ended September 30, 2018, we recorded $5.0 million and $14.8 million of interest expense, respectively, related to the amortization of the debt discount. For the three and nine months ended September 24, 2017, we recorded $4.6 million and $13.4 million of interest expense, respectively, related to the amortization of the debt discount. The components of the 2021 Notes were as follows (in thousands):
The estimated fair value of the 2021 Notes was approximately $572.8 million at September 30, 2018, based on a quoted price in an active market (Level 1). We entered into 2021 Notes Hedges in connection with the issuance of the 2021 Notes with two counterparties. The 2021 Notes Hedges, which are cash-settled, are generally intended to reduce our exposure to potential cash payments that we would be required to make if holders elect to convert the 2021 Notes at a time when our ordinary share price exceeds the conversion price. However, in connection with certain events, including, among others, (i) a merger or other make-whole fundamental change (as defined in the 2021 Notes Indenture); (ii) certain hedging disruption events, which may include changes in tax laws, an increase in the cost of borrowing our ordinary shares in the market or other material increases in the cost to the option counterparties of hedging the 2021 Note Hedges; (iii) our failure to perform certain obligations under the 2021 Notes Indenture or under the 2021 Notes Hedges; (iv) certain payment defaults on our existing indebtedness in excess of $25 million; or (v) if we or any of our significant subsidiaries become insolvent or otherwise becomes subject to bankruptcy proceedings, the option counterparties have the discretion to terminate the 2021 Notes Hedges, which may reduce the effectiveness of the 2021 Notes Hedges. In addition, the option counterparties have broad discretion to make certain adjustments to the 2021 Notes Hedges and warrant transactions upon the occurrence of certain other events, including, among others, (i) any adjustment to the conversion rate of the 2021 Notes; or (ii) upon the announcement of certain significant corporate events, including events that may give rise to a termination event as described above, such as the announcement of a third-party tender offer. Any such adjustment may also reduce the effectiveness of the 2021 Note Hedges. The aggregate cost of the 2021 Notes Hedges was $99.8 million and is accounted for as a derivative asset in accordance with ASC Topic 815. See Note 6 of the condensed consolidated financial statements for additional information regarding the 2021 Notes Hedges and the 2021 Notes Conversion Derivative. We also entered into warrant transactions in which we sold warrants for an aggregate of 18.5 million ordinary shares to the two option counterparties, subject to adjustment, for an aggregate of $54.6 million. The strike price of the warrants is $30.00 per share, which was 69% above the last reported sale price of our ordinary shares on May 12, 2016. The warrants are expected to be net-share settled and exercisable over the 100 trading day period beginning on February 15, 2022. The warrant transactions will have a dilutive effect on our ordinary shares to the extent that the market value per ordinary share during such period exceeds the applicable strike price of the warrants. However, in connection with certain events, these option counterparties have the discretion to make certain adjustments to warrant transactions, which may increase our obligations under the warrant transactions. Aside from the initial payment of the $99.8 million premium in the aggregate to the two option counterparties and subject to the right of the option counterparties to terminate the 2021 Notes Hedges in certain circumstances, we do not expect to be required to make any cash payments to the option counterparties under the 2021 Notes Hedges and expect to be entitled to receive from the option counterparties cash, generally equal to the amount by which the market price per ordinary share exceeds the strike price of the convertible note hedging transactions during the relevant valuation period. The strike price under the 2021 Notes Hedges is initially equal to the conversion price of the 2021 Notes. However, in connection with certain events, these option counterparties have the discretion to make certain adjustments to the 2021 Note Hedges, which may reduce the effectiveness of the 2021 Note Hedges. Additionally, if the market value per ordinary share exceeds the strike price on any settlement date under the warrant transaction, we will generally be obligated to issue to the option counterparties in the aggregate a number of shares equal in value to one percent of the amount by which the then-current market value of one ordinary share exceeds the then-effective strike price of each warrant, multiplied by the number of ordinary shares into which the 2021 Notes are initially convertible. We will not receive any additional proceeds if warrants are exercised. As described in more detail below, concurrently with the issuance and sale of the 2021 Notes, certain holders of the 2017 Notes and the 2020 Notes exchanged their 2017 Notes or 2020 Notes for the 2021 Notes. 2020 Notes On February 13, 2015, WMG issued $632.5 million aggregate principal amount of the 2020 Notes pursuant to an indenture (2020 Notes Indenture), dated as of February 13, 2015 between WMG and The Bank of New York Mellon Trust Company, N.A., as trustee. The 2020 Notes require interest to be paid semi-annually on each February 15 and August 15 at an annual rate of 2.00%, and mature on February 15, 2020 unless earlier converted or repurchased. The 2020 Notes were initially issued whereby they were convertible at the option of the holder, during certain periods and subject to certain conditions described below, solely into cash at an initial conversion rate of 32.3939 shares of WMG common stock per $1,000 principal amount of the 2020 Notes, subject to adjustment upon the occurrence of certain events, which represented an initial conversion price of approximately $30.87 per share of WMG common stock. On November 24, 2015, Wright Medical Group N.V. executed a supplemental indenture, fully and unconditionally guaranteeing, on a senior unsecured basis, WMG’s obligations relating to the 2020 Notes, changing the underlying reference securities from WMG common stock to Wright Medical Group N.V. ordinary shares and making a corresponding adjustment to the conversion price. From and after the effective time of the Wright/Tornier merger, (i) all calculations and other determinations with respect to the 2020 Notes previously based on references to WMG common stock are calculated or determined by reference to our ordinary shares, and (ii) the conversion rate (as defined in the 2020 Notes Indenture) for the 2020 Notes was adjusted to a conversion rate of 33.39487 ordinary shares (subject to adjustment as provided in the 2020 Notes Indenture) per $1,000 principal amount of the 2020 Notes, which represents a conversion price of approximately $29.94 per ordinary share (subject to, and in accordance with, the settlement provisions of the 2020 Notes Indenture). The 2020 Notes may not be redeemed by WMG prior to the maturity date, and no “sinking fund” is available for the 2020 Notes, which means that WMG is not required to redeem or retire the 2020 Notes periodically. The holders of the 2020 Notes may convert their notes at any time prior to August 15, 2019 solely into cash, in multiples of $1,000 principal amount, upon satisfaction of one or more of the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2015 (and only during such calendar quarter), if the last reported sale price of our ordinary shares for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of 2020 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our ordinary shares and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. The Wright/Tornier merger did not result in a conversion right for holders of the 2020 Notes. On or after August 15, 2019 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2020 Notes solely into cash, regardless of the foregoing circumstances. Upon conversion, a holder will receive an amount in cash, per $1,000 principal amount of the 2020 Notes, equal to the settlement amount as calculated under the 2020 Notes Indenture. If WMG undergoes a fundamental change, as defined in the 2020 Notes Indenture, subject to certain conditions, holders of the 2020 Notes will have the option to require WMG to repurchase for cash all or a portion of their notes at a purchase price equal to 100% of the principal amount of the 2020 Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date, as defined in the 2020 Notes Indenture. In addition, following certain corporate transactions, WMG, under certain circumstances, will increase the applicable conversion rate for a holder that elects to convert its 2020 Notes in connection with such corporate transaction. The 2020 Notes are senior unsecured obligations that rank: (i) senior in right of payment to any of WMG's indebtedness that is expressly subordinated in right of payment to the 2020 Notes; (ii) equal in right of payment to any of WMG's unsecured indebtedness that is not so subordinated; (iii) effectively junior in right of payment to any secured indebtedness to the extent of the value of the assets securing such indebtedness; and (iv) structurally junior to all indebtedness and other liabilities (including trade payables) of WMG's subsidiaries. In conjunction with the issuance of the 2020 Notes, we recorded deferred financing charges of approximately $18.1 million, which are being amortized over the term of the 2020 Notes using the effective interest method. Due to the ability of the holders of the 2020 Notes to convert within the next year, the carrying value of the 2020 Notes and the fair value of the 2020 Notes Conversion Derivatives were classified as current liabilities and the fair value of the 2020 Notes Hedges was classified as current assets as of September 30, 2018. The respective balances were all classified as long-term as of December 31, 2017. The 2020 Notes Conversion Derivative requires bifurcation from the 2020 Notes in accordance with ASC Topic 815, Derivatives and Hedging, and is accounted for as a derivative liability. See Note 6 of the condensed consolidated financial statements for additional information regarding the 2020 Notes Conversion Derivative. The fair value of the 2020 Notes Conversion Derivative at the time of issuance of the 2020 Notes was $149.8 million and was recorded as original debt discount for purposes of accounting for the debt component of the 2020 Notes. This discount is amortized as interest expense using the effective interest method over the term of the 2020 Notes based upon an effective rate of 8.54%. For the three and nine months ended September 30, 2018, we recorded $2.4 million and $16.7 million of interest expense, respectively, related to the amortization of the debt discount. For the three and nine months ended September 24, 2017, we recorded $6.9 million and $20.3 million of interest expense, respectively, related to the amortization of the debt discount. Concurrently with the issuance and sale of the 2021 Notes, certain holders of the 2020 Notes exchanged approximately $45 million aggregate principal amount of their 2020 Notes for the 2021 Notes. For each $1,000 principal amount of 2020 Notes validly submitted for exchange, we delivered $990.00 principal amount of the 2021 Notes (subject to rounding down to the nearest $1,000 principal amount of the 2021 Notes, the difference being referred as the rounded amount) to the investor plus an amount of cash equal to the unpaid interest on the 2020 Notes and the rounded amount. As a result of this note exchange and retirement of $45 million aggregate principal amount of the 2020 Notes, we recognized approximately $9.3 million for the write-off of related pro-rata unamortized deferred financing fees and debt discount. Concurrently with the issuance and sale of the 2023 Notes, certain holders of the 2020 Notes exchanged approximately $400.9 million aggregate principal amount of their 2020 Notes for the 2023 Notes. For each $1,000 principal amount of 2020 Notes validly submitted for exchange, we delivered $1,138.70 principal amount of the 2023 Notes (subject to rounding down to the nearest $1,000 principal amount of the 2023 Notes for each exchanging investor, the difference being referred as the rounded amount) to the investor. As a result of this note exchange and retirement of $400.9 million aggregate principal amount of the 2020 Notes, we recognized approximately $39.9 million for the write-off of related pro-rata unamortized deferred financing fees and debt discount within “Other (income) expense, net” in our condensed consolidated statements of operations during the three months ended July 1, 2018. The components of the 2020 Notes were as follows (in thousands):
The estimated fair value of the 2020 Notes was approximately $204.7 million at September 30, 2018, based on a quoted price in an active market (Level 1). WMG entered into the 2020 Notes Hedges in connection with the issuance of the 2020 Notes with three option counterparties. See Note 6 of the condensed consolidated financial statements for additional information on the 2020 Notes Hedges. The 2020 Notes Hedges, which are cash-settled, are generally intended to reduce WMG's exposure to potential cash payments that WMG would be required to make if holders elect to convert the 2020 Notes at a time when our ordinary share price exceeds the conversion price. However, in connection with certain events, including, among others, (i) a merger or other make-whole fundamental change (as defined in the 2020 Notes indenture); (ii) certain hedging disruption events, which may include changes in tax laws, an increase in the cost of borrowing our ordinary shares in the market or other material increases in the cost to the option counterparties of hedging the 2020 Note Hedges; (iii) WMG's failure to perform certain obligations under the 2020 Notes Indenture or under the 2020 Notes Hedges; (iv) certain payment defaults on WMG's existing indebtedness in excess of $25 million; or (v) if WMG or any of its significant subsidiaries become insolvent or otherwise becomes subject to bankruptcy proceedings, the option counterparties have the discretion to terminate the 2020 Note Hedges at a value determined by them in a commercially reasonable manner and/or adjust the terms of the 2020 Note Hedges, which may reduce the effectiveness of the 2020 Note Hedges. In addition, the option counterparties have broad discretion to make certain adjustments to the 2020 Notes Hedges upon the occurrence of certain other events, including, among others, (i) any adjustment to the conversion rate of the 2020 Notes; or (ii) upon the announcement of certain significant corporate events, including events that may give rise to a termination event as described above, such as the announcement of a third-party tender offer. Any such adjustment may also reduce the effectiveness of the 2020 Note Hedges. The aggregate cost of the 2020 Notes Hedges was $144.8 million and is accounted for as a derivative asset in accordance with ASC Topic 815. See Note 6 of the condensed consolidated financial statements for additional information regarding the 2020 Notes Hedges and the 2020 Notes Conversion Derivative. WMG also entered into warrant transactions in which it sold warrants for an aggregate of 20.5 million shares of WMG common stock to the three option counterparties, subject to adjustment. The strike price of the warrants was initially $40 per share of WMG common stock, which was 59% above the last reported sale price of WMG common stock on February 9, 2015. On November 24, 2015, Wright Medical Group N.V. assumed WMG's obligations pursuant to the warrants. Following the assumption, the warrants became exercisable for 21.1 million Wright Medical Group N.V. ordinary shares and the strike price of the warrants was adjusted to $38.8010 per ordinary share. The warrants are expected to be net-share settled and exercisable over the 200 trading day period beginning on May 15, 2020. The warrant transactions will have a dilutive effect on our ordinary shares to the extent that the market value per ordinary share during such period exceeds the applicable strike price of the warrants. However, in connection with certain events, these option counterparties have the discretion to make certain adjustments to warrant transactions, which may increase our obligations under the warrant transactions. During the second quarter of 2016, we settled a portion of the 2020 Notes Hedges (receiving $3.9 million) and repurchased a portion of the warrants associated with the 2020 Notes (paying $3.3 million), generating net proceeds of approximately $0.6 million. During the second quarter of 2018, we agreed to settle a pro rata portion of the 2020 Notes Hedges and agreed to repurchase a pro rata portion of the warrants associated with the 2020 Notes. The pricing of these 2020 Notes Hedges and warrants associated with the 2020 Notes were based on pricing between July 9, 2018 and July 27, 2018 and were settled on July 30, 2018. As a result of these settlements, we received net proceeds of approximately $10.6 million on July 30, 2018. As we had agreed to settle a portion of the warrants in cash prior to July 1, 2018, we had warrants which were exercisable for 6.2 million ordinary shares with a strike price of $38.8010 per ordinary share as of July 1, 2018. The warrants which we had agreed to settle as of July 1, 2018 are recorded as a current derivative liability as of July 1, 2018 as described within Note 6. Aside from the initial payment of the $144.8 million premium in the aggregate to the option counterparties, we do not expect to be required to make any cash payments to the option counterparties under the 2020 Notes Hedges and expect to be entitled to receive from the option counterparties cash, generally equal to the amount by which the market price per ordinary share exceeds the strike price of the convertible note hedging transactions during the relevant valuation period. The strike price under the 2020 Notes Hedges is initially equal to the conversion price of the 2020 Notes. However, in connection with certain events, these option counterparties have the discretion to make certain adjustments to the 2020 Note Hedges, which may reduce the effectiveness of the 2020 Note Hedges. Additionally, if the market value per ordinary share exceeds the strike price on any settlement date under the warrant transaction, we will generally be obligated to issue to the option counterparties in the aggregate a number of ordinary shares equal in value to one half of one percent of the amount by which the then-current market value of one ordinary share exceeds the then-effective strike price of each warrant, multiplied by the number of reference ordinary shares into which the 2020 Notes are initially convertible. We will not receive any additional proceeds if warrants are exercised. 2017 Notes On August 31, 2012, WMG issued $300 million aggregate principal amount of the 2017 Notes pursuant to an indenture (2017 Notes Indenture), dated as of August 31, 2012 between WMG and The Bank of New York Mellon Trust Company, N.A., as trustee. The 2017 Notes matured on August 15, 2017. Prior to maturity, we paid interest on the 2017 Notes semi-annually on each February 15 and August 15 at an annual rate of 2.00%. WMG could not redeem the 2017 Notes prior to the maturity date, and no “sinking fund” was available for the 2017 Notes, which means that WMG was not required to redeem or retire the 2017 Notes periodically. The 2017 Notes were convertible at the option of the holder, during certain periods and subject to certain conditions as described below, solely into cash at an initial conversion rate of 39.3140 shares per $1,000 principal amount of the 2017 Notes, subject to adjustment upon the occurrence of specified events, which represented an initial conversion price of $25.44 per share. Holders could have converted their 2017 Notes at any time prior to February 15, 2017 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending December 31, 2012 (and only during such calendar quarter), if the last reported sale price of our ordinary shares for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter was greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our ordinary shares and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after February 15, 2017 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders could convert their 2017 Notes solely into cash, regardless of the foregoing circumstances. The 2017 Notes were senior unsecured obligations that ranked: (i) senior in right of payment to any of WMG's indebtedness that is expressly subordinated in right of payment to the 2017 Notes; (ii) equal in right of payment to any of WMG's unsecured indebtedness that is not so subordinated; (iii) effectively junior in right of payment to any secured indebtedness to the extent of the value of the assets securing such indebtedness; and (iv) structurally junior to all indebtedness and other liabilities (including trade payables) of WMG's subsidiaries. As a result of the issuance of the 2017 Notes, we recognized deferred financing charges of approximately $8.8 million, which were amortized over the term of the 2017 Notes using the effective interest method. The 2017 Notes Conversion Derivative required bifurcation from the 2017 Notes in accordance with ASC Topic 815, Derivatives and Hedging, and was accounted for as a derivative liability. See Note 6 of the condensed consolidated financial statements for additional information regarding the 2017 Notes Conversion Derivative. The fair value of the 2017 Notes Conversion Derivative at the time of issuance of the 2017 Notes was $48.1 million and was recorded as original debt discount for purposes of accounting for the debt component of the 2017 Notes. This discount was amortized as interest expense using the effective interest method over the term of the 2017 Notes. For the three and nine months ended September 24, 2017, interest expense related to the amortization of the debt discount based upon an effective rate of 6.47% was negligible. In connection with the issuance of the 2020 Notes on February 13, 2015, WMG repurchased and extinguished $240 million aggregate principal amount of the 2017 Notes and settled all of the 2017 Notes Hedges (receiving $70 million) and repurchased all of the warrants (paying $60 million) associated with the 2017 Notes. As a result of the repurchase, we recognized approximately $25.1 million for the write-off of related pro-rata unamortized deferred financing fees and debt discount within “Other (income) expense, net” in our condensed consolidated statements of operations during the three months ended March 31, 2015. Concurrently with the issuance and sale of the 2021 Notes, certain holders of the 2017 Notes exchanged approximately $54.4 million aggregate principal amount their 2017 Notes for the 2021 Notes. For each $1,000 principal amount of 2017 Notes validly submitted for exchange, we delivered $1,035.40 principal amount of 2021 Notes (subject to rounding down to the nearest $1,000 principal amount of the 2021 Notes, the difference being referred as the rounded amount) to the investor plus an amount of cash equal to the unpaid interest on the 2017 Notes and the rounded amount. In addition, during the three months ended June 26, 2016, we repurchased and extinguished an additional $3.6 million aggregate principal amount of the 2017 Notes in privately negotiated transactions. As a result of this exchange and these repurchases, we recognized approximately $3 million for the write-off of related pro-rata unamortized deferred financing fees and debt discount within “Other (income) expense, net” in our condensed consolidated statements of operations during the three months ended June 26, 2016. ABL Facility On December 23, 2016, we, together with WMG and certain of our other wholly-owned U.S. subsidiaries (collectively, Borrowers), entered into a Credit, Security and Guaranty Agreement (ABL Credit Agreement) with Midcap Financial Trust, as administrative agent (Agent) and a lender and the additional lenders from time to time party thereto. The ABL Credit Agreement provides for a $150 million senior secured asset-based line of credit, subject to the satisfaction of a borrowing base requirement (ABL Facility). The ABL Facility may be increased by up to $100 million upon the Borrowers’ request, subject to the consent of the Agent and each of the other lenders providing such increase. All borrowings under the ABL Facility are subject to the satisfaction of customary conditions, including the absence of default, the accuracy of representations and warranties in all material respects and the delivery of an updated borrowing base certificate. As of September 30, 2018 and December 31, 2017, we had $21.5 million and $53.6 million respectively, in borrowings outstanding under the ABL Facility. We have reflected this debt as a current liability on our condensed consolidated balance sheet as of September 30, 2018 and December 31, 2017, as required by US GAAP due to the weekly lockbox repayment/re-borrowing arrangement underlying the agreement, as well as the ability for the lenders to accelerate the repayment of the debt under certain circumstances as described below. As of September 30, 2018 and December 31, 2017, we had $1.8 million and $2.2 million, respectively, of unamortized debt issuance costs related to the ABL Facility. These amounts are included within "Other assets" on our condensed consolidated balance sheets and will be amortized over the five-year term of the ABL Facility as described below. The interest rate margin applicable to borrowings under the ABL Facility is, at the option of the Borrowers, equal to either (a) 3.25% for base rate loans or (b) 4.25% for LIBOR rate loans, subject to a 0.75% LIBOR floor. In addition to paying interest on the outstanding loans under the ABL Facility, the Borrowers also are required to pay a customary unused line fee equal to 0.50% per annum in respect of unutilized commitments and certain other customary fees related to Agent’s administration of the ABL Facility. Beginning January 1, 2017, the Borrowers are required to maintain a minimum drawn balance on the ABL Facility equal to 20% of the average borrowing base for each month. To the extent the actual drawn balance is less than 20%, the Borrowers must pay a fee equal to the amount the lenders under the ABL Facility would have earned had the Borrowers maintained a minimum drawn balance equal to 20% of the average borrowing base for such month. The ABL Credit Agreement requires that the Borrowers calculate the borrowing base for the ABL Facility on at least a monthly basis and each time the Borrowers make a draw on the ABL Facility in accordance with the formula set forth in the ABL Credit Agreement. The borrowing base is subject to adjustment and the implementation of reserves by the Agent in its permitted discretion, as further described in the ABL Credit Agreement. If at any time the outstanding drawn balance under the ABL Facility exceeds the borrowing base as in effect at such time, Borrowers will be required to prepay loans under the ABL Facility in an amount equal to such excess. Certain accounts receivables and proceeds of collateral of the Borrowers will be applied to reduce the outstanding principal amount of the ABL Facility on a periodic basis. There is no scheduled amortization under the ABL Facility and (subject to borrowing base requirements and applicable conditions to borrowing) the available revolving commitment may be borrowed, repaid, and reborrowed without restriction. All outstanding loans under the ABL Facility will be due and payable in full on the date that is the earliest to occur of (x) December 23, 2021; (y) the date that is 91 days prior to the maturity date of the 2020 Notes or (z) the date that is 91 days prior to the maturity date of the 2021 Notes; provided that, the springing maturity under clauses (y) and (z) are subject to the Borrowers’ ability to refinance, extend, renew or replace the 2020 Notes and/or the 2021 Notes, as applicable, in full pursuant to the terms of the ABL Credit Agreement. Any voluntary or mandatory permanent reduction or termination of the revolving commitments under the ABL Facility is subject to a prepayment premium applicable to such reduced or terminated amount equal to (i) 3.0% through December 23, 2017, (ii) 2.0% from December 24, 2017 through December 23, 2018, and (iii) 0.75% at any time thereafter. The ABL Credit Agreement contains certain negative covenants that restrict our ability to take certain actions as specified in the ABL Credit Agreement and an affirmative covenant that we maintain net revenue at or above minimum levels and maintain liquidity in the United States at a level specified in the ABL Credit Agreement, subject to certain exceptions. All of the obligations under the ABL Facility are guaranteed jointly and severally by Wright Medical Group N.V. and each of the Borrowers on the terms set forth in the ABL Credit Agreement. Subject to certain exceptions set forth in the ABL Credit Agreement, amounts outstanding under the ABL Facility are secured by a senior first priority security interest in substantially all existing and after-acquired assets of Wright Medical Group N.V. and each Borrower. On May 7, 2018, we amended and restated the ABL Credit Agreement to add a $40 million term loan facility (Term Loan Facility). The initial $20 million term loan tranche was funded at closing. The Borrowers may at any time borrow the second $20 million term loan tranche, but will be required to do so no later than May 7, 2019 unless certain adjusted EBITDA targets are met; in which case, the Borrowers will be permitted to extend the borrowing requirement for up to an additional two years. All borrowings under the Term Loan Facility are subject to the satisfaction of customary conditions, including the absence of default and the accuracy of representations and warranties in all material respects. As of September 30, 2018, we had $20 million outstanding under the term loan facility. The interest rate applicable to borrowings under the Term Loan Facility will be equal to one-month LIBOR plus 7.85%, subject to a 1.00% LIBOR floor. Amortization payments under the Term Loan Facility are due in equal monthly installments beginning on May 1, 2019 unless we meet certain adjusted EBITDA targets; in which case, the amortization payments would not commence until May 1, 2021. In addition to paying interest on the outstanding loans under the Term Loan Facility, the Borrowers will also be required to pay certain other customary fees related to Agent’s administration of the Term Loan Facility. The Term Loan Facility requires mandatory prepayments, subject to the right of reinvestment and certain other exceptions, in amounts equal to 100% of the net cash proceeds from certain asset sales and casualty and condemnation events in excess of $10 million in any fiscal year. Any voluntary or mandatory prepayment under the Term Loan Facility, subject to certain exceptions, is subject to a 1.00% prepayment premium. The advances under the Term Loan Facility will be due and payable in full at the same time as the outstanding loans under the ABL Facility. As a result of the Term Loan Facility, we recognized deferred financing charges of approximately $1.2 million, which will be amortized over the three-year term using the effective interest method. All of the obligations under the Term Loan Facility and the ABL Facility are guaranteed jointly and severally by us and each of the Borrowers and are secured by a senior first priority security interest in substantially all existing and after-acquired assets of us and each Borrower on the terms set forth in the Credit Agreement. In addition to financial and liquidity covenants consistent with those in the ABL Credit Agreement, while the Term Loan Facility is outstanding, the Company is required to maintain a minimum adjusted EBITDA, as described in the ABL Credit Agreement. The ABL Credit Agreement will not affect our ability to meet our existing contractual obligations, including payments under the Borrower Representative’s contingent value rights agreement, except in circumstances where an event of default (subject to certain exceptions) has occurred and is continuing. The ABL Credit Agreement also contains negative covenants, representations and warranties, affirmative covenants and events of default, in each case subject to grace periods, thresholds, and materiality qualifiers consistent with the ABL Credit Agreement. Other Debt Other debt primarily includes mortgages, shareholder debt, and loans acquired as a result of the IMASCAP acquisition. We have mortgages that had an outstanding balance of $0.5 million and $1.0 million at September 30, 2018 and December 31, 2017, respectively. These mortgages are secured by an office building in Montbonnot, France and bear fixed annual interest rates of 2.55%-4.9%. As a result of the IMASCAP acquisition, we have two zero interest loans with a state investment company that had an outstanding balance of $1.0 million and $1.2 million at September 30, 2018 and December 31, 2017, respectively. We also had shareholder debt outstanding of $1.5 million and $1.6 million as of September 30, 2018 and December 31, 2017, respectively. The remainder of other debt totaled approximately $6.0 million and $4.2 million as of September 30, 2018 and December 31, 2017, respectively. The shareholder debt was acquired in conjunction with the Wright/Tornier merger. This debt was the result of a 2008 transaction where a 51%-owned and consolidated subsidiary of legacy Tornier borrowed $2.2 million from a then-current member of the legacy Tornier board of directors, who was also a 49% owner of the consolidated subsidiary. This loan was used to partially fund the purchase of real estate in Grenoble, France, to be used as a manufacturing facility. Interest on the debt is variable-based on the three-month Euro Libor rate plus 0.5% and has no stated term. |
Accumulated Other Comprehensive Income (Notes) |
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Comprehensive Income (Loss), Note | Accumulated Other Comprehensive Income (AOCI) Other comprehensive income (OCI) includes certain gains and losses that under US GAAP are included in comprehensive income (loss) but are excluded from net loss as these amounts are initially recorded as an adjustment to shareholders’ equity. Amounts in OCI may be reclassified to net loss upon the occurrence of certain events. For the nine months ended September 30, 2018 and September 24, 2017, OCI was comprised solely of foreign currency translation adjustments. Changes in AOCI for the nine months ended September 30, 2018 and September 24, 2017 were as follows (in thousands):
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Changes in Stockholders' Equity (Notes) |
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Stockholders' Equity Note Disclosure [Text Block] | Changes in Shareholders' Equity The following table provides an analysis of changes in each balance sheet caption of shareholders’ equity for the nine months ended September 30, 2018 and September 24, 2017 (in thousands, except share data):
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Earnings per share (Notes) |
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Earnings Per Share | Capital Stock and Earnings Per Share We are authorized to issue up to 320 million ordinary shares, each share with a par value of three Euro cents (€0.03). We had 125.1 million and 105.8 million ordinary shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively. On August 27, 2018, we entered into an underwriting agreement with J.P. Morgan, relating to the registered public offering of 18,248,932 ordinary shares, at an initial price to the public of $24.60 per share, for a total price of $448.9 million. The net proceeds to us were $423.0 million, after deducting underwriting discounts and commissions of $25.4 million and offering costs of $0.5 million. The offering closed on August 30, 2018. The proceeds were used to fund the purchase price of the Cartiva acquisition which closed on October 10, 2018, as well as costs and expenses related thereto. See Note 15 for additional details related to the Cartiva acquisition. FASB ASC Topic 260, Earnings Per Share, requires the presentation of basic and diluted earnings per share. Basic earnings per share is calculated based on the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share is calculated to include any dilutive effect of our ordinary share equivalents. For the three and nine months ended September 30, 2018 and September 24, 2017, our ordinary share equivalents consisted of stock options, restricted stock units, performance share units, and warrants. The dilutive effect of the stock options, restricted stock units, performance share units, and warrants is calculated using the treasury-stock method. We had outstanding options to purchase 10.4 million ordinary shares, 1.3 million restricted stock units, and 0.2 million performance stock units, assuming target performance, at September 30, 2018 and outstanding options to purchase 10.4 million ordinary shares, 1.4 million restricted stock units, and 0.1 million performance stock units, assuming target performance, at September 24, 2017. We had outstanding net-share settled warrants on the 2020 Notes of 6.2 million and 19.6 million ordinary shares at September 30, 2018 and September 24, 2017, respectively. We also had net-share settled warrants on the 2021 Notes of 18.5 million ordinary shares at September 30, 2018 and September 24, 2017. Finally, we had net-share settled warrants on the 2023 Notes of 20.2 million ordinary shares at September 30, 2018. None of the options, restricted stock units, performance share units, or warrants were included in the calculation of diluted net loss from continuing operations per share, diluted net (loss) income from discontinued operations per share, and diluted net loss per share for the three and nine months ended September 30, 2018 or September 24, 2017, because we recorded a net loss from continuing operations for all periods. Including these instruments would be anti-dilutive as the net loss from continuing operations is the control number in determining whether those potential common shares are dilutive or anti-dilutive. The weighted-average number of ordinary shares outstanding for basic and diluted earnings per share purposes is as follows (in thousands):
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Commitments and Contingencies (Notes) |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Legal Contingencies The legal contingencies described in this footnote relate primarily to WMT, an indirect subsidiary of Wright Medical Group N.V., and are not necessarily applicable to Wright Medical Group N.V. or other affiliated entities. Maintaining separate legal entities within our corporate structure is intended to ring-fence liabilities. We believe our ring-fenced structure should preclude corporate veil-piercing efforts against entities whose assets are not associated with particular claims. As described below, our business is subject to various contingencies, including patent and other litigation, product liability claims, and a government inquiry. These contingencies could result in losses, including damages, fines, or penalties, any of which could be substantial, as well as criminal charges. Although such matters are inherently unpredictable, and negative outcomes or verdicts can occur, we believe we have significant defenses in all of them and are vigorously defending all of them. However, we could incur judgments, pay settlements, or revise our expectations regarding the outcome of any matter. Such developments, if any, could have a material adverse effect on our results of operations in the period in which applicable amounts are accrued, or on our cash flows in the period in which amounts are paid, however, unless otherwise indicated, we do not believe any of them will have a material adverse effect on our financial position. Our legal contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss or the measurement of a loss can be complex. We have accrued for losses that are both probable and reasonably estimable. Unless otherwise indicated, we are unable to estimate the range of reasonably possible loss in excess of amounts accrued. Our assessment process relies on estimates and assumptions that may prove to be incomplete or inaccurate. Unanticipated events and circumstances may occur that could cause us to change our estimates and assumptions. Governmental Inquiries On August 3, 2012, we received a subpoena from the United States Attorney's Office for the Western District of Tennessee requesting records and documentation relating to our PROFEMUR® series of hip replacement devices. The subpoena covers the period from January 1, 2000 to August 2, 2012. We will continue to cooperate as required. Patent Litigation On September 23, 2014, Spineology filed a patent infringement lawsuit, Case No. 0:14-cv-03767, in the U.S. District Court in Minnesota, alleging that our X-REAM® bone reamer infringes U.S. Patent No. RE42,757 entitled “EXPANDABLE REAMER.” In January 2015, on the deadline for service of its complaint, Spineology dismissed its complaint without prejudice and filed a new, identical complaint. We filed an answer to the new complaint with the Court on April 27, 2015. The Court conducted a Markman hearing on March 23, 2016. Mediation was held on August 11, 2016, but no agreement could be reached. The Court issued a Markman decision on August 30, 2016, in which it found all asserted product claims invalid as indefinite under applicable patent laws and construed several additional claim terms. The parties completed fact and expert discovery with respect to the remaining asserted method claims. We filed a motion for summary judgment of non-infringement of the remaining asserted patent claims and motions to exclude testimony from Spineology’s technical and damages experts. Spineology filed a motion for summary judgment of infringement. On July 25, 2017, the Court granted our motion for summary judgment of non-infringement; denied Spineology’s motion for summary judgment of infringement; and denied all remaining motions as moot. The Court also entered judgment in our favor and against Spineology on all issues. Spineology appealed the judgment to the U.S. Court of Appeals for the Federal Circuit and on July 6, 2018, the Court of Appeals affirmed the judgment of non-infringement in our favor and directed the District Court to enter judgment of non-infringement as to all of Spineology’s asserted patent claims. On September 6, 2018, the Court of Appeals denied Spineology’s petition for rehearing and, on September 18, 2018, the District Court entered final judgment of non-infringement. On September 13, 2016, we filed a civil action, Case No. 2:16-cv-02737-JPM, against Spineology in the U.S. District Court for the Western District of Tennessee alleging breach of contract, breach of implied warranty against infringement, and seeking a judicial declaration of indemnification from Spineology for patent infringement claims brought against us stemming from our sale and/or use of certain expandable reamers purchased from Spineology. Spineology filed a motion to dismiss on October 17, 2016, but withdrew the motion on November 28, 2016. On December 7, 2016, Spineology filed an answer to our complaint and counterclaims, including counterclaims relating to a 2004 non-disclosure agreement between Spineology and WMT. On December 28, 2016, we filed a motion to dismiss the counterclaims relating to that 2004 agreement. On January 4, 2017, Spineology filed a motion for summary judgment on certain claims set forth in our complaint. We opposed that motion. On January 27, 2017, we filed a motion for summary judgment on certain issues pertaining to our indemnification claims. Spineology opposed that motion. On July 7, 2017, the Court extended the deadlines for completing discovery until after it ruled on those pending motions. On August 29, 2017, the Court ruled on the motions to dismiss and for summary judgment. In view of that decision, on September 22, 2017, the parties stipulated to, and the Court entered, a judgment that effectively ended the case in a draw. We appealed the judgment as to our claims against Spineology to the U.S. Court of Appeals for the Sixth Circuit and oral argument occurred on August 2, 2018. On August 24, 2018, the Court of Appeals ruled in our favor on our breach of contract claim and remanded the case to the District Court for further proceedings. Spineology did not appeal the District Court’s dismissal of its contract counterclaim. Product Liability We have received claims for personal injury against us associated with fractures of our PROFEMUR® titanium modular neck product (PROFEMUR® Claims). As of September 30, 2018, there were approximately 18 unresolved pending U.S. lawsuits and approximately 57 unresolved pending non-U.S. lawsuits alleging such claims. The overall fracture rate for the product is low and the fractures appear, at least in part, to relate to patient demographics. Beginning in 2009, we began offering a cobalt-chrome version of our PROFEMUR® modular neck, which has greater strength characteristics than the alternative titanium version. Historically, we have reflected our liability for these claims as part of our standard product liability accruals on a case-by-case basis. However, during the fiscal quarter ended September 30, 2011, as a result of an increase in the number and monetary amount of these claims, management estimated our liability to patients in the United States and Canada who have previously required a revision following a fracture of a PROFEMUR® titanium modular neck, or who may require a revision in the future. Management has estimated that this aggregate liability is $18.2 million. We have classified $11.7 million of this liability in “Accrued expenses and other current liabilities,” as we expect to pay such claims within the next twelve months, and $6.5 million as non-current in “Other liabilities” on our consolidated balance sheet. We expect to pay the majority of these claims within the next three years. Any claims associated with this product outside of the United States and Canada, or for any other products, will be managed as part of our standard product liability accrual methodology on a case-by-case basis. We have maintained product liability insurance coverage on a claims-made basis. During the fiscal quarter ended March 31, 2013, we received a customary reservation of rights from our primary product liability insurance carrier asserting that present and future claims related to fractures of our PROFEMUR® titanium modular neck hip products and which allege certain types of injury (Titanium Modular Neck Claims) would be covered as a single occurrence under the policy year the first such claim was asserted. The effect of this coverage position would be to place Titanium Modular Neck Claims into a single prior policy year in which applicable claims-made coverage was available, subject to the overall policy limits then in effect. Management agreed with the assertion that the Titanium Modular Neck Claims should be treated as a single occurrence, but notified the carrier that it disputed the carrier's selection of available policy years. During the second quarter of 2013, we received confirmation from the primary carrier confirming their agreement with our policy year determination. Based on our insurer's treatment of Titanium Modular Neck Claims as a single occurrence, we increased our estimate of the total probable insurance recovery related to Titanium Modular Neck Claims by $19.4 million and recognized such additional recovery as a reduction to our selling, general and administrative expenses for the fiscal quarter ended March 31, 2013, within results of discontinued operations. In the fiscal quarter ended June 30, 2013, we received payment from the primary insurance carrier of $5 million. In the fiscal quarter ended September 30, 2013, we received payment of $10 million from the next insurance carrier in the tower. We requested, but did not receive, payment of the remaining $25 million from the third insurance carrier in the tower for that policy period. The policies with the second and third carrier in this tower are “follow form” policies and management believed the third carrier should follow the coverage position taken by the primary and secondary carriers. On September 29, 2015, that third carrier asserted that the terms and conditions identified in its reservation of rights would preclude coverage for the Titanium Modular Neck Claims. Pursuant to applicable accounting standards, we reduced our insurance receivable balance for this claim to $0 and recorded a $25 million charge within “Net loss from discontinued operations” during the fiscal year ended December 27, 2015. We strongly disputed the carrier's position and, in accordance with the dispute resolution provisions of the policy, initiated an arbitration proceeding in London, England seeking payment of these funds. The arbitration proceeding was completed on February 15, 2018 and, on April 11, 2018, the arbitration tribunal issued its ruling. Thereafter, we and the insurance carrier agreed to resolve the entire matter in exchange for a single lump sum payment by the carrier to us in the amount of $30.75 million, representing the full policy limits of $25 million plus an additional $5.75 million for legal costs and interest. We received payment of this sum from the carrier on May 8, 2018. This insurance recovery is reflected within our results of discontinued operations for the quarter ended July 1, 2018. We are aware that MicroPort has recalled a certain size of its cobalt chrome modular neck product as a result of alleged fractures. As of September 30, 2018, there were seven pending U.S. lawsuits and five pending non-U.S. lawsuits against us alleging personal injury resulting from the fracture of a cobalt chrome modular neck. These claims will be managed as part of our standard product liability accrual methodology on a case-by-case basis. Claims for personal injury have also been made against us associated with our metal-on-metal hip products (primarily the CONSERVE® product line). The pre-trial management of certain of these claims was consolidated in the federal court system, in the United States District Court for the Northern District of Georgia under multi-district litigation (MDL) and certain other claims by the Judicial Counsel Coordinated Proceedings in state court in Los Angeles County, California (JCCP) in state court in Los Angeles County, California (collectively the Consolidated Metal-on-Metal Claims). Pursuant to previously disclosed settlement agreements with the Court-appointed attorneys representing plaintiffs in the MDL and JCCP described below, the MDL and JCCP were closed to new cases effective October 18, 2017 and October 31, 2017, respectively. Excluding claims resolved in the settlement agreements described below, as of September 30, 2018, there were approximately 129 unresolved metal-on-metal hip cases pending in the U.S. This number includes cases ineligible for settlement, cases which opted out of settlement, post-settlement cases, tolled cases, and existing state court cases that were not part of the MDL or JCCP. As of September 30, 2018, we estimate there also were pending approximately 34 non-U.S. metal-on metal cases and 34 unresolved modular neck U.S. cases and no non-U.S. cases alleging claims related to the release of metal ions. We also estimate that as of September 30, 2018 there were approximately 535 non-revision claims either dismissed or awaiting dismissal from the MDL and JCCP pursuant to the terms of the settlement agreements. Although there is a limited time period during which dismissed non-revision claims may be refiled, it is presently unclear how many non-revision claimants will elect to do so. As of September 30, 2018, no dismissed non-revision cases have been refiled. We believe we have data that supports the efficacy and safety of our hip products. Every hip implant case, including metal-on-metal hip cases, involves fundamental issues of law, science, and medicine that often are uncertain, that continue to evolve, and which present contested facts and issues that can differ significantly from case to case. Such contested facts and issues include medical causation, individual patient characteristics, surgery specific factors, statutes of limitation, and the existence of actual, provable injury. On November 1, 2016, WMT entered into the MSA with Court-appointed attorneys representing plaintiffs in the MDL and JCCP. Under the terms of the MSA, the parties agreed to settle 1,292 specifically identified claims associated with CONSERVE®, DYNASTY® and LINEAGE® products that meet the eligibility requirements of the MSA and are either pending in the MDL or JCCP, or subject to court-approved tolling agreements in the MDL or JCCP, for a settlement amount of $240 million. The $240 million settlement amount is a maximum settlement based on the pool of 1,292 specific, existing claims comprised of an identified mix of CONSERVE®, DYNASTY® and LINEAGE® products (Initial Settlement Pool), with a value assigned to each product type, resulting in a total settlement of $240 million for the 1,292 claims in the Initial Settlement Pool. Actual settlements paid to individual claimants are determined under the claims administration procedures contained in the MSA and may be more or less than the amounts used to calculate the $240 million settlement for the 1,292 claims in the Initial Settlement Pool. However in no event will variations in actual settlement amounts payable to individual claimants affect WMT’s maximum settlement obligation of $240 million or the manner in which it may be reduced due to opt outs, final product mix, or elimination of ineligible claims. Claims in the Initial Settlement Pool that were ineligible due to failure to meet the eligibility criteria of the MSA were replaced with new eligible claims involving the same product, so that the number and mix of claims in the final settlement pool (before opt-outs) (Final Settlement Pool) equaled the number and mix of claims in the Initial Settlement Pool. Additionally, where DYNASTY® or LINEAGE® claims in the Final Settlement Pool were determined to have been misidentified as CONSERVE® claims, or vice versa, the total settlement amount was adjusted based on the value for each product type (not to exceed $240 million). The MSA contains specific eligibility requirements and establishes procedures for proof and administration of claims, negotiation, and execution of individual settlement agreements, determination of the final total settlement amount, and funding of individual settlement amounts by WMT. Eligibility requirements include, without limitation, that the claimant has a claim pending or tolled in the MDL or JCCP, that the claimant has undergone a revision surgery within eight years of the original implantation surgery, and that the claim has not been identified by WMT as having possible statute of limitation issues. Claimants who have had bilateral revision surgeries will be counted as two claims but only to the extent both claims separately satisfy all eligibility criteria. The MSA includes a 95% opt-in requirement, meaning the MSA could have been terminated by WMT prior to any settlement disbursement if claimants holding greater than 5% of eligible claims in the Final Settlement Pool elected to “opt-out” of the settlement. WMT has confirmed that of the 1,292 eligible claims, 1,279 opted to participate in the settlement and 13 opted out, resulting in a final opt-in percentage of approximately 99%, well in excess of the required 95% threshold. On March 2, 2017, WMT agreed to replace the 13 opt-out claims with 13 additional claims that would have been eligible to participate in the MSA but for the 1,292 claim limit, bringing the total MSA settlement to the maximum limit of $240 million to settle 1,292 claims. Due to apparent demand from additional claimants excluded from settlement because of the 1,292 claims ceiling, but otherwise eligible for participation, on May 5, 2017, WMT agreed to settle an additional 53 such claims, on terms substantially identical to the MSA settlement terms, for a maximum additional settlement amount of $9.4 million. During 2016, WMT escrowed $150 million to secure its obligations under the MSA, all of which had been disbursed as of December 31, 2017. As additional security, Wright Medical Group N.V., the indirect parent company of WMT, agreed to guarantee WMT’s obligations under the MSA. On October 3, 2017, WMT entered into the Second Settlement Agreements with the Court-appointed attorneys representing plaintiffs in the MDL and JCCP. Under the terms of the Second Settlement Agreements, the parties agreed to settle 629 specifically identified CONSERVE®, DYNASTY® and LINEAGE® claims that meet the eligibility requirements of the Second Settlement Agreements and are either pending in the MDL or JCCP, or subject to court-approved tolling agreements in the MDL or JCCP, for a maximum settlement amount of $89.75 million. The comprehensive settlement amount was contingent on WMT’s recovery of new insurance proceeds totaling at least $35 million from applicable insurance carriers by December 31, 2017. On December 29, 2017, WMT entered into a First Amendment to the Third Settlement Agreement pursuant to which the deadline for the recovery of new insurance proceeds totaling at least $35 million from applicable insurance carriers was extended through February 28, 2018 and, on February 23, 2018, WMT entered into a Second Amendment to the Third Settlement Agreement pursuant to which the deadline was extended through March 30, 2018. On March 29, 2018, WMT entered into a Third Amendment to the Third Settlement Agreement which eliminated the contingency and gave WMT the option, by September 30, 2018, to either pay or make available for payment the then outstanding deficit on the insurance contingency or transfer to eligible claimants WMT’s claims against the insurance carriers with whom WMT has not settled, and pay or make available for payment such insurance deficit in March 2019, subject to the right to recover these funds from any plaintiff recoveries from carriers plus ten percent interest, plus an additional $5 million in costs, in each case after recovery by plaintiffs’ counsel of costs and fees. In connection with such transfer agreement, WMT would also enter into a stipulated judgment in the amount of $541 million, which judgment would not be recoverable against WMT or its affiliates. On September 27, 2018, WMT elected not to transfer WMT’s claims against the insurance carriers with whom WMT has not settled. As of September 30, 2018, certain of the insurance carriers have contributed $21.9 million of funds applicable against the $35 million contingency, leaving a $13.1 million deficit. The $89.75 million settlement amount is a maximum settlement based on the pool of 629 specific, existing claims comprised of an identified mix of CONSERVE®, DYNASTY® and LINEAGE® products (Second Settlement Initial Settlement Pool), with a value assigned to each product type. Actual settlements paid to individual claimants will be determined under the claims administration procedures contained in the Second Settlement Agreements and may be more or less than the amounts used to calculate the $89.75 million settlement for the 629 claims in the Second Settlement Initial Settlement Pool. However in no event will variations in actual settlement amounts payable to individual claimants affect WMT’s maximum settlement obligation of $89.75 million or the manner in which it may be reduced due to opt outs, final product mix, or elimination of ineligible claims. The total maximum settlement amount of $89.75 million is allocated among the following three tranches: (1) Tranche 1: $7.9 million to settle 49 additional claims that would have been eligible to participate in the MSA but for the claim limit contained therein, which amount will be funded as such claims are settled; (2) Tranche 2: $5.1 million to settle 39 eligible claims of the oldest claimants (by age), which amount will be funded as such claims are settled; and (3) Tranche 3: $76.75 million to settle 511 eligible claims pending or tolled in the MDL and JCCP existing as of June 30, 2017, and 30 new eligible claims which were presented between July 1, 2017 and October 1, 2017. Settlement funds for Tranche 3 were or will be made available for payment as follows: $45 million (less the remaining insurance deficit, which was $13.1 million) on June 30, 2018, the remaining insurance deficit ($13.1 million) by September 30, 2018, and the balance by September 30, 2019. Actual funding has not yet occurred as claims are still in the administration process. The Second Settlement Agreements contain specific eligibility requirements and establish procedures for proof and administration of claims, negotiation, and execution of individual settlement agreements, determination of the final total settlement amount, and funding of individual settlement amounts by WMT. Eligibility requirements include, without limitation, that the claimant has a claim pending or tolled in the MDL or JCCP and that, with limited exceptions, the claimant has undergone a revision surgery. Claimants who have had bilateral revision surgeries will be counted as two claims but only to the extent both claims separately satisfy all eligibility criteria. Each of the Second Settlement Agreements includes a 95% opt-in requirement, meaning WMT could have terminated either Settlement Agreement prior to any settlement disbursement if claimants holding greater than 5% of eligible claims in Tranches 1 and 2, collectively, or claimants holding greater than 5% of eligible claims in Tranche 3, elected to “opt-out” of the settlement. On January 2, 2018, WMT received notification that 100% of the claimants in Tranches 1 and 2 opted-in. WMT reviewed proof of claim documentation for these claimants and confirmed a final opt-in percentage of 100%. On or about May 1, 2018, WMT received notice from plaintiffs that the 95% opt-in threshold had also been met for Tranche 3. WMT reviewed proof of claim documentation for Tranche 3 claimants and confirmed that the 95% opt-in threshold had been met. On July 31, 2018, WMT confirmed a final opt-in percentage of 100% for Tranche 3. While the Second Settlement Agreements did not require WMT to escrow any amount to secure its obligations thereunder, as additional security, Wright Medical Group N.V., the indirect parent company of WMT, agreed to guarantee WMT’s obligations under the Second Settlement Agreements. The MSA (which reference includes the supplemental settlements described above) and the Second Settlement Agreements were entered into solely as a compromise of the disputed claims being settled and are not evidence that any claim has merit nor are they an admission of wrongdoing or liability by WMT. WMT will continue to vigorously defend metal-on-metal hip claims not settled pursuant to the above agreements. The Second Settlement Agreements are contingent upon the dismissal without prejudice of pending and tolled claims in the MDL and JCCP that do not meet the inclusion criteria of the MDL or JCCP. Additionally, the Second Settlement Agreements are contingent upon the dismissal without prejudice of all remaining non-revision claims in the MDL and JCCP (presently estimated to number approximately 535 claims either dismissed or awaiting dismissal), pursuant to a tolling agreement that tolls applicable statutes of limitation and repose for three months from a revision of the products or determination that a revision of the products is necessary. The MDL and JCCP courts have both entered orders closing these proceedings to new claims. As a result of entering into the Second Settlement Agreements during the third quarter of 2017, we recorded an additional accrual of $82.7 million for the 629 matters included within the settlement and for matters that have the same eligibility criteria. As of September 30, 2018, our accrual for metal-on-metal claims totaled $105.6 million, of which $88.8 million is included in our consolidated balance sheet within “Accrued expenses and other current liabilities” and $16.8 million is included within “Other liabilities.” Our accrual is based on (i) case by case accruals for specific cases where facts and circumstances warrant, and (ii) the implied settlement values for eligible claims under the MSA or Second Settlement Agreements. We are unable to reasonably estimate the high-end of a possible range of loss for claims which elected to opt-out of the MSA or Second Settlement Agreements. Claims we can confirm would meet MSA or Second Settlement Agreements eligibility criteria but are excluded from the settlements due to the maximum settlement cap, or because they are cases not part of the MDL or JCCP, have been accrued as of the respective settlement rates. Due to the general uncertainties surrounding all metal-on metal claims as noted above, as well as insufficient information about individual claims, we are presently unable to reasonably estimate a range of loss for future claims; hence we have not accrued for these claims at the present time. We continue to believe the high-end of a possible range of loss for existing revision claims that do not meet eligibility criteria of the MSA or Second Settlement Agreements will not, on an average per case basis, exceed the average per case accrual we take for revision claims we can confirm do meet eligibility criteria of the MSA or Second Settlement Agreements, as applicable. Future claims will be evaluated for accrual on a case by case basis using the accrual methodologies described above (which could change if future facts and circumstances warrant). The first state court metal-on-metal hip trial not part of the MDL or JCCP commenced on October 24, 2016, in St. Louis, Missouri. On November 3, 2016, the jury returned a verdict in our favor. The plaintiff appealed, and the appellate court heard oral argument on November 8, 2017. On February 20, 2018, the Missouri Court of Appeals, Eastern District, denied the plaintiff’s appeal and upheld the verdict of the trial court. The plaintiff’s time for seeking any further relief from the verdict has lapsed and this matter is closed. We have maintained product liability insurance coverage on a claims-made basis. During the fiscal quarter ended September 30, 2012, we received a customary reservation of rights from our primary product liability insurance carrier asserting that certain present and future claims which allege certain types of injury related to our CONSERVE® metal-on-metal hip products (CONSERVE® Claims) would be covered as a single occurrence under the policy year the first such claim was asserted. The effect of this coverage position would be to place CONSERVE® Claims into a single prior policy year in which applicable claims-made coverage was available, subject to the overall policy limits then in effect. Management agrees that there is insurance coverage for the CONSERVE® Claims, but has notified the carrier that it disputes the carrier's characterization of the CONSERVE® Claims as a single occurrence. In June 2014, Travelers, which was an excess carrier in our coverage towers across multiple policy years, filed a declaratory judgment action in Tennessee state court naming us and certain of our other insurance carriers as defendants and asking the court to rule on the rights and responsibilities of the parties with regard to the CONSERVE® Claims. Among other things, Travelers appeared to dispute our contention that the CONSERVE® Claims arise out of more than a single occurrence thereby triggering multiple policy periods of coverage. Travelers further sought a determination as to the applicable policy period triggered by the alleged single occurrence. We filed a separate lawsuit in state court in California for declaratory judgment against certain carriers and breach of contract against the primary carrier and moved to dismiss or stay the Tennessee action on a number of grounds, including that California is the most appropriate jurisdiction. During the third quarter of 2014, the California Court granted Travelers' motion to stay our California action. On October 28, 2016, WMT and Wright Medical Group, Inc. (Wright Entities) entered into a Settlement Agreement, Indemnity and Hold Harmless Agreement and Policy Buyback Agreement (Insurance Settlement Agreement) with a subgroup of three insurance carriers, namely Columbia Casualty Company, Travelers and AXIS Surplus Lines Insurance Company (collectively, the Three Settling Insurers), pursuant to which the Three Settling Insurers paid WMT an aggregate of $60 million (in addition to $10 million previously paid by Columbia) in a lump sum. This amount is in full satisfaction of all potential liability of the Three Settling Insurers relating to metal-on-metal hip and similar metal ion release claims, including but not limited to all claims in the MDL and the JCCP, and all claims asserted by WMT against the Three Settling Insurers in the Tennessee action described above. As part of the settlement with the Three Settling Insurers, the Three Settling Insurers bought back from WMT their policies in the five policy years beginning with the August 1, 2007- August 1, 2008 policy year (Repurchased Policy Years). Consequently, the Wright Entities have no further coverage from the Three Settling Insurers for any present or future claims falling in the Repurchased Policy Years, or any other period in which a released claim is asserted. Additionally, the Insurance Settlement Agreement contains a so-called most favored nation provision which could require us to refund a pro rata portion of the settlement amount if we voluntarily enter into a settlement with the remaining carriers in the Repurchased Policy Years on certain terms more favorable than analogous terms in the Insurance Settlement Agreement. The amount due to the Wright Entities under the Insurance Settlement Agreement was paid in the fourth quarter of 2016 and the Three Settling Insurers have been dismissed from the Tennessee action. On December 13, 2016, we filed a motion in the Tennessee action described above to include allegations of bad faith against the primary insurance carrier. The motion was subsequently amended on February 8, 2017 to add similar bad faith claims against the remaining excess carriers. On April 13, 2017, the Court denied our motion, without prejudice to our right to re-assert the motion at a later time. On August 29, 2017, we refiled the motion to add a bad faith claim against the primary and excess insurance carriers. The Court granted our motion on October 19, 2017 and, on October 23, 2017, we filed amended cross-claims alleging bad faith against all of the insurance carriers. On February 22, 2018, we and certain of our subsidiaries entered into the Second Insurance Settlement Agreement with the primary insurance carrier, Federal, pursuant to which Federal has paid us a single lump sum payment of $15 million (in addition to $5 million previously paid by Federal). This amount is in full satisfaction of all potential liability of Federal relating to designated metal-on-metal hip claims, including but not limited to all claims asserted by our subsidiary WMT against Federal in the previously disclosed insurance coverage litigation. We recorded a $15 million receivable as a result of this agreement within “Other current assets” as of December 31, 2017. On March 20, 2018, Federal was dismissed from the Tennessee and California actions described above. On April 19, 2018, we and certain of our subsidiaries entered into a Settlement and Release Agreement (Third Insurance Settlement Agreement) with Catlin Underwriting Agencies Limited for and on behalf of Syndicate 2003 at Lloyd’s of London (Lloyd’s Syndicate 2003) pursuant to which Lloyd’s Syndicate 2003 has paid us a single lump sum payment of $1.9 million (in addition to $5 million previously paid by Lloyd’s Syndicate 2003). This amount is in full satisfaction of all potential liability of Lloyd’s Syndicate 2003 relating to designated metal-on-metal hip claims, including but not limited to all claims asserted by our subsidiary WMT against Lloyd’s Syndicate 2003 in the previously disclosed insurance coverage litigation. On May 1, 2018, Lloyd’s Syndicate 2003 was dismissed from the Tennessee action described above. The Lloyd’s Syndicate 2003 was dismissed from the California action on May 3, 2018. Following the settlements with the Three Settling Insurers, Federal, and Lloyd’s Syndicate 2003, the only remaining insurer in the Tennessee and California coverage litigation is Catlin Specialty Insurance Company, a high-level excess insurer that provided “follow-form” coverage during the 2011/2012 policy period. Litigation with this carrier is continuing. Trial is set for July 2019. In March 2017, Lexington, which had been dismissed from the Tennessee action, requested arbitration under five Lexington insurance policies in connection with the CONSERVE® Claims. We subsequently engaged in discussions and correspondence with Lexington about the scope of the requested arbitration(s). On or about October 27, 2017, Lexington filed an Application for Order to Compel Arbitration in the Commonwealth of Massachusetts, Suffolk County Superior Court, naming WMT, Wright Medical Group, Inc., and Wright Medical Group N.V. We opposed the Application. On February 28, 2018, the Massachusetts Court ordered the parties to arbitrate the two Lexington insurance policies containing Massachusetts arbitration clauses but did not order arbitration under the remaining three Lexington policies at issue. We have appealed that ruling. While the appeal is pending, we are proceeding with the arbitration, but the selection of the arbitrators is still in dispute by the parties. In the arbitration, Lexington has asserted a claim for declaratory relief, and we have asserted counter-claims for breach of contract, declaratory relief, and bad faith. On September 26, 2018, Lexington sought to add a claim alleging Wright’s filing of the Tennessee lawsuit referred to below was not in good faith. Wright objected to Lexington’s additional claim and argued that such claim could only be added upon agreement of the arbitrators (who are yet to be selected). The American Arbitration Association agreed with Wright’s position. On May 22, 2018, Wright initiated a lawsuit against Lexington under the three policies that the court did not order into arbitration in Massachusetts. The lawsuit, filed in the Chancery Court of Tennessee, alleges breach of contract, declaratory relief, and bad faith in connection with Lexington’s failure and refusal to provide coverage for the underlying metal-on-metal claims under policies issued for 2009-2012. On July 12, 2018, Lexington brought a motion to stay the litigation and compel arbitration under the 2009-2011 Lexington policies. The motion remains pending. As of September 30, 2018, our insurance carriers have paid an aggregate of $101.9 million of insurance proceeds related to the metal-on-metal claims, including amounts received under the three above referenced settlement agreements, of which $95.2 million has been paid directly to us and $6.7 million has been paid directly to claimants. Except as provided in the Insurance Settlement Agreement, the Second Insurance Settlement Agreement and the Third Insurance Settlement Agreement, our acceptance of the insurance proceeds was not a waiver of any other claim we may have against the insurance carriers unrelated to metal-on-metal coverage and our disputes with carriers relating thereto. However, the amount we ultimately receive will depend on the outcome of our dispute with the remaining carriers (Lexington and Catlin, with remaining policy limits totaling $30 million and $5 million, respectively) concerning the number of policy years available. We believe our contracts with the insurance carriers are enforceable for these claims; and, therefore, we believe it is probable we will receive additional recoveries from the remaining carriers. Settlement discussions with the remaining insurance carriers continue. Given the substantial or indeterminate amounts sought in these matters, and the inherent unpredictability of such matters, an adverse outcome in these matters in excess of the amounts included in our accrual for contingencies could have a material adverse effect on our financial condition, results of operations and cash flow. Future revisions to our estimates of these provisions could materially impact our results of operations and financial position. We use the best information available to determine the level of accrued product liabilities, and believe our accruals are adequate. Other In addition to those noted above, we are subject to various other legal proceedings, product liability claims, corporate governance, and other matters which arise in the ordinary course of business. |
Segment Data |
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Segment Data | Segment Information Our management, including our Chief Executive Officer, who is our chief operating decision maker, manages our operations as three operating business segments: U.S. Lower Extremities & Biologics, U.S. Upper Extremities, and International Extremities & Biologics. We determined that each of these operating segments represented a reportable segment. Our Chief Executive Officer reviews financial information at the operating segment level to allocate resources and to assess the operating results and performance of each segment. Our U.S. Lower Extremities & Biologics segment consists of our operations focused on the sale in the United States of our lower extremities products, such as joint implants and bone fixation devices for the foot and ankle, and our biologics products used to support treatment of damaged or diseased bone, tendons, and soft tissues or to stimulate bone growth. Our U.S. Upper Extremities segment consists of our operations focused on the sale in the United States of our upper extremities products, such as joint implants and bone fixation devices for the shoulder, elbow, wrist, and hand, and products used across several anatomic sites to mechanically repair tissue-to-tissue or tissue-to-bone injuries and other ancillary products. As the IMASCAP operations will be managed by the U.S. Upper Extremities management team, results of operations and assets related to IMASCAP will be included within the U.S. Upper Extremities segment. Our International Extremities and Biologics segment consists of our operations focused on the sale outside the United States of all lower and upper extremities products, including associated biologics products. Management measures segment profitability using an internal operating performance measure that excludes the impact of transaction and transition costs associated with acquisitions, as such items are not considered representative of segment results. We have determined that each reportable segment represents a reporting unit and, in accordance with ASC 350, requires an allocation of goodwill to each reporting unit. Selected financial information related to our segments is presented below for the three months ended September 30, 2018 and September 24, 2017 (in thousands):
Selected financial information related to our segments is presented below for the nine months ended September 30, 2018 and September 24, 2017 (in thousands):
Our principal geographic regions consist of the United States, EMEAC (which includes Europe, the Middle East, Africa, and Canada), and Other (which principally represents Asia, Australia, and Latin America). Net sales attributed to each geographic region are based on the location in which the products were sold. Net sales by geographic region by product line are as follows (in thousands):
Assets in the U.S. Upper Extremities, U.S. Lower Extremities & Biologics, and International Extremities & Biologics segments are those assets used exclusively in the operations of each business segment or allocated when used jointly. Assets in the Corporate category are principally cash and cash equivalents, derivative assets, property, plant and equipment associated with our corporate headquarters, assets associated with discontinued operations, product liability insurance receivables, and assets associated with income taxes. Total assets by business segment as of September 30, 2018 and December 31, 2017 are as follows (in thousands):
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Subsequent Event Subsequent Event (Notes) |
9 Months Ended |
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Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event During the third quarter of 2018, on August 24, 2018, we entered into a definitive agreement to acquire 100% of the outstanding equity on a fully diluted basis of Cartiva, Inc., an orthopaedic medical device company focused on treatment of osteoarthritis of the great toe, for a total price of $435 million in cash, subject to certain adjustments as set forth in the agreement. On October 10, 2018, we completed the acquisition. We funded the acquisition with the proceeds from a registered underwritten public offering of 18,248,932 ordinary shares which had net proceeds of $423.0 million. See Note 12 for additional details related to the public offering. This acquisition adds a differentiated pre-market approval (PMA) approved technology for a high-volume foot and ankle procedure and further accelerates growth opportunities in our global extremities business. The purchase price for this acquisition will be allocated to the identifiable assets acquired and liabilities assumed based on estimates of their relative fair values at October 10, 2018, the date of the acquisition, with the excess purchase price recorded as goodwill. Because the initial accounting for the business combination is incomplete at this time, we are unable to provide the purchase price allocation for this transaction. |
Summary of Significant Accounting Policies (Policies) |
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Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation. The unaudited condensed consolidated interim financial statements of Wright Medical Group N.V. have been prepared in accordance with U.S. generally accepted accounting principles (US GAAP) for interim financial statements and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to these rules and regulations. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC on February 27, 2018. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments necessary for a fair presentation of our interim financial results. All such adjustments are of a normal and recurring nature. The results of operations for any interim period are not indicative of results for the full fiscal year. The accompanying unaudited condensed consolidated interim financial statements include our accounts and those of our controlled subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. |
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Revenue Recognition, Policy [Policy Text Block] | Revenue recognition. Our revenues are primarily generated through two types of customers, hospitals and surgery centers and stocking distributors, with the majority of our revenue derived from sales to hospitals and surgery centers. Our products are sold through a network of employee and independent sales representatives in the United States and by a combination of employee sales representatives, independent sales representatives, and stocking distributors outside the United States. We record revenues from sales to hospitals and surgery centers upon transfer of control of promised products in an amount that reflects the consideration we expect to receive in exchange for those products, which is generally when the product is surgically implanted in a patient. We record revenues from sales to our stocking distributors at a point in time upon transfer of control of promised products to the distributor. Our stocking distributors, who sell the products to their customers, take control of the products and assume all risks of ownership upon transfer. Our stocking distributors are obligated to pay us within specified terms regardless of when, if ever, they sell the products. In general, our stocking distributors do not have any rights of return or exchange; however, in limited situations, we have repurchase agreements with certain stocking distributors. Those certain agreements require us to repurchase a specified percentage of the inventory purchased by the distributor within a specified period of time prior to the expiration of the contract. During those specified periods, we defer the applicable percentage of the sales. An insignificant amount of sales related to these types of agreements was deferred and not yet recognized as revenue as of September 30, 2018 and December 31, 2017. We must make estimates of potential future product returns related to current period product sales. We base our estimate for sales returns on historical sales and product return information, including historical experience and trend information. Our reserve for sales returns has historically been immaterial. We incur shipping and handling costs associated with the shipment of goods to customers, independent distributors, and our subsidiaries. Amounts billed to customers for shipping and handling of products are included in net sales. Costs incurred related to shipping and handling of products to customers are included in selling, general and administrative expenses. We also record depreciation on surgical instruments used by our hospital and surgery center customers within selling, general and administrative expense as these costs are considered to be similar to shipping and handling costs, necessary to deliver the implant products to the end customer. |
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Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations. On October 21, 2016, pursuant to a binding offer letter dated as of July 8, 2016, Tornier France SAS (Tornier France) and certain other entities related to us and Corin Orthopaedics Holdings Limited (Corin) entered into a business sale agreement and simultaneously completed and closed the sale of our former Large Joints business. Pursuant to the terms of the agreement, we sold substantially all of our assets related to our Large Joints business to Corin for approximately €29.7 million in cash, less approximately €11.1 million for net working capital adjustments. Upon closing, the parties also executed a transitional services agreement and supply agreement, among other ancillary agreements required to implement the transaction. These agreements were on arm’s length terms and were not material to our consolidated financial statements. On January 9, 2014, pursuant to an Asset Purchase Agreement, dated as of June 18, 2013 (the MicroPort Agreement), by and among us and MicroPort Scientific Corporation (MicroPort), we completed the divesture and sale of our business operations operating under our prior OrthoRecon operating segment to MicroPort. All historical operating results for the Large Joints and OrthoRecon businesses are reflected within discontinued operations in the condensed consolidated financial statements. See Note 4 for further discussion of discontinued operations. Other than Note 4, unless otherwise stated, all discussion of assets and liabilities in these Notes to the condensed consolidated financial statements reflects the assets and liabilities held and used in our continuing operations, and all discussion of revenues and expenses reflects those associated with our continuing operations. |
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New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, and has subsequently issued several supplemental and/or clarifying ASUs (collectively ASC 606). Accounting Standards Codification (ASC) 606 prescribes a single common revenue standard that replaces most existing US GAAP revenue recognition guidance. ASC 606 outlines a five-step model, under which we will recognize revenue as performance obligations within a customer contract are satisfied. ASC 606 is intended to provide more consistent interpretation and application of the principles outlined in the standard across filers in multiple industries and within the same industries compared to current practices, which should improve comparability. We adopted ASC 606 during the quarter ended April 1, 2018. Revenue is recognized at a point in time, generally upon surgical implantation or shipment of products to distributors. Therefore, adoption of ASC 606 did not have a material effect on our consolidated financial statements except for the additional disclosures included within Note 14. On February 25, 2016, the FASB issued ASU 2016-02, Leases, and has subsequently issued ASU 2018-10 and ASU 2018-11 which clarifies this guidance (collectively ASC 842). ASC 842 introduces a lessee model that brings most leases on the balance sheet. The new standard also aligns many of the underlying principles of the new lessor model with those in FASB ASC 606, the FASB’s new revenue recognition standard (e.g., those related to evaluating when profit can be recognized). Furthermore, ASC 842 addresses other concerns related to the current leases model. ASC 842 will be effective for us beginning in fiscal year 2019. We have evaluated the practical expedients and plan to adopt the hindsight practical expedient, the practical expedient for short-term leases, the practical expedient package which primarily limits the need for reassessing lease classification on existing leases, and to issue our financial statements showing comparative lease disclosures under current GAAP. We do not anticipate adoption of these updates will have a material impact on net earnings or cash flows and continue to assess the impact on our consolidated balance sheets. On January 26, 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The guidance in the ASU is effective for our interim and annual goodwill impairment tests beginning in 2020 with early adoption permitted. We are in the initial phases of our adoption plans; and, accordingly, we are unable to estimate any effect this may have on our consolidated financial statements. |
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Fair Value Measurement, Policy [Policy Text Block] | We account for derivatives in accordance with FASB ASC 815, which establishes accounting and reporting standards requiring that derivative instruments be recorded on the balance sheet as either an asset or liability measured at fair value. Additionally, changes in the derivatives' fair value shall be recognized currently in earnings unless specific hedge accounting criteria are met. FASB ASC Section 820, Fair Value Measurement requires fair value measurements be classified and disclosed in one of the following three categories:
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Earnings Per Share, Policy [Policy Text Block] | FASB ASC Topic 260, Earnings Per Share, requires the presentation of basic and diluted earnings per share. Basic earnings per share is calculated based on the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share is calculated to include any dilutive effect of our ordinary share equivalents. For the three and nine months ended September 30, 2018 and September 24, 2017, our ordinary share equivalents consisted of stock options, restricted stock units, performance share units, and warrants. The dilutive effect of the stock options, restricted stock units, performance share units, and warrants is calculated using the treasury-stock method. |
Acquisitions (Tables) |
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Preliminary Allocation of the Purchase Consideration to the Assets Acquired and Liabilities Assumed | The following presents the preliminary allocation of the purchase consideration to the assets acquired and liabilities assumed on December 14, 2017 (in thousands):
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Discontinued Operations (Tables) |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following table summarizes the results of discontinued operations for the OrthoRecon business (in thousands):
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Inventories (Tables) |
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Schedule of Inventories | Inventories consist of the following (in thousands):
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Derivatives and Fair Value of Financial Instruments (Tables) |
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Schedule of Derivative Assets at Fair Value [Table Text Block] | The following table summarizes the fair value and the presentation in our condensed consolidated balance sheets (in thousands) of the 2023 Notes Hedges and 2023 Notes Conversion Derivative:
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Derivative Instruments, Gain (Loss) [Table Text Block] | The following table summarizes the net gain (loss) on changes in fair value (in thousands) related to the 2023 Notes Hedges and 2023 Notes Conversion Derivative:
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Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | e following assumptions were used in the fair market valuations as of September 30, 2018:
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Fair Value Financial Instruments [Table Text Block] | e following tables summarize the valuation of our financial instruments (in thousands):
The following is a roll forward of our assets and liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) (in thousands):
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Schedule of Derivative Assets at Fair Value [Table Text Block] | The following table summarizes the fair value and the presentation in our condensed consolidated balance sheets (in thousands) of the 2021 Notes Hedges and 2021 Notes Conversion Derivative:
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Derivative Instruments, Gain (Loss) [Table Text Block] | The following table summarizes the net gain (loss) on changes in fair value (in thousands) related to the 2021 Notes Hedges and 2021 Notes Conversion Derivative:
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Derivative Instruments, Gain (Loss) [Table Text Block] | e following table summarizes the net gain (loss) on changes in fair value (in thousands) related to the 2017 Notes Conversion Derivative:
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2020 Derivatives [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Assets at Fair Value [Table Text Block] | The following table summarizes the fair value and the presentation in our condensed consolidated balance sheets (in thousands) of the 2020 Notes Hedges and 2020 Notes Conversion Derivative:
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Derivative Instruments, Gain (Loss) [Table Text Block] | e following table summarizes the net (loss) gain on changes in fair value (in thousands) related to the 2020 Notes Hedges, 2020 Warrants Derivative and 2020 Notes Conversion Derivative:
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Property, Plant and Equipment (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | Property, plant and equipment, net consists of the following (in thousands):
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Goodwill and Intangibles (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the Carrying Amount of Goodwill Table | Changes in the carrying amount of goodwill occurring during the nine months ended September 30, 2018 are as follows (in thousands):
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Components of Identifiable Assets Table | The components of our identifiable intangible assets, net, are as follows (in thousands):
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Long-Term Debt and Capital Lease Obligations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Debt and capital lease obligations consist of the following (in thousands):
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Convertible Debt [Table Text Block] | The components of the 2023 Notes were as follows (in thousands):
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Components of 2021 Convertible Debt [Table Text Block] | The components of the 2021 Notes were as follows (in thousands):
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Components of 2020 Convertible Debt [Table Text Block] | The components of the 2020 Notes were as follows (in thousands):
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Accumulated Other Comprehensive Income (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in AOCI for the nine months ended September 30, 2018 and September 24, 2017 were as follows (in thousands):
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Changes in Stockholders' Equity (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Stockholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders Equity [Table Text Block] | The following table provides an analysis of changes in each balance sheet caption of shareholders’ equity for the nine months ended September 30, 2018 and September 24, 2017 (in thousands, except share data):
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Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding for Basic and Diluted Earnings Per Share | The weighted-average number of ordinary shares outstanding for basic and diluted earnings per share purposes is as follows (in thousands):
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Segment Data (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Selected financial information related to our segments is presented below for the three months ended September 30, 2018 and September 24, 2017 (in thousands):
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Net Sales and Operating Income by Product Line and Information by Geographic Region | Net sales by geographic region by product line are as follows (in thousands):
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Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Total assets by business segment as of September 30, 2018 and December 31, 2017 are as follows (in thousands):
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Organization and Description of Business (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018
segment
| |
Business Acquisition [Line Items] | |
Number of Operating Segments | 3 |
Number of countries in which entity operates | 50 |
Acquisitions - Narrative (Details) $ in Thousands, € in Millions |
9 Months Ended | ||
---|---|---|---|
Dec. 14, 2017
USD ($)
shares
|
Sep. 30, 2018
USD ($)
|
Dec. 14, 2017
EUR (€)
|
|
Business Acquisition [Line Items] | |||
Ownership interest acquired | 100.00% | 100.00% | |
Goodwill, Purchase Accounting Adjustments | $ (917) | ||
IMASCAP SAS [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Transaction Costs | $ 62,300 | € 52.9 | |
Contingent consideration | $ 17,800 | 15.1 | |
Number of shares acquired | shares | 661,753 | ||
Intangible assets acquired | $ 10,865 | ||
IMASCAP SAS [Member] | Technology-Based Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired | $ 5,600 | ||
Useful life of intangible assets | 6 years | ||
IMASCAP SAS [Member] | In Process Research and Development [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets acquired | $ 5,300 | ||
IMASCAP SAS [Member] | Cash [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Transaction Costs | 46,700 | 39.7 | |
IMASCAP SAS [Member] | Common Stock [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Transaction Costs | $ 15,600 | € 13.2 | |
Upper Extremities [Member] | UNITED STATES | |||
Business Acquisition [Line Items] | |||
Goodwill, Purchase Accounting Adjustments | $ (917) |
Acquisitions - Preliminary Allocation of the Purchase Consideration to the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
Dec. 14, 2017 |
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Business Acquisition [Line Items] | |||
Goodwill | $ 921,376 | $ 933,662 | |
Goodwill, Purchase Accounting Adjustments | $ (917) | ||
IMASCAP SAS [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 2,559 | ||
Accounts receivable | 102 | ||
Other current assets | 925 | ||
Property, plant and equipment | 20 | ||
Intangible assets | 10,865 | ||
Total assets acquired | 14,471 | ||
Current liabilities | (2,173) | ||
Long-term debt | (886) | ||
Deferred income taxes | (2,343) | ||
Total liabilities assumed | (5,402) | ||
Net assets acquired | 9,069 | ||
Goodwill | 71,064 | ||
Total preliminary purchase consideration | $ 80,133 |
Discontinued Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
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May 08, 2018 |
Oct. 21, 2016 |
Sep. 01, 2015 |
Sep. 30, 2018 |
Sep. 24, 2017 |
Sep. 30, 2018 |
Sep. 24, 2017 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ (6,696) | $ (97,748) | $ 10,620 | $ (139,942) | |||
Net (loss) income from discontinued operations per share-basic and diluted (Note 12): | $ (0.06) | $ (0.93) | $ 0.10 | $ (1.34) | |||
Weighted-average number of ordinary shares outstanding-basic and diluted: | 113,043 | 104,836 | 108,348 | 104,292 | |||
Large Joints Business [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Purchase Price Discontinued Operations | $ 29,700 | ||||||
Net Working Capital Not Transferred in Disposal | $ 11,100 | ||||||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | $ 2,700 | $ 3,500 | |||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Per Basic Share | $ 300,000 | $ 900,000 | $ 700,000 | $ 2,400,000 | |||
OrthoRecon Business [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ (6,365) | $ (96,917) | $ 11,314 | $ (137,578) | |||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 46,800 | 142,700 | |||||
Disposal Group, Including Discontinued Operation, Revenue | 0 | 0 | 0 | 0 | |||
Disposal Group, Including Discontinued Operation, General and Administrative Expense | 8,553 | 96,917 | (15,309) | 137,578 | |||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | (8,553) | (96,917) | 15,309 | (137,578) | |||
Discontinued Operation, Tax Effect of Discontinued Operation | $ (2,188) | $ 0 | $ 3,995 | $ 0 | |||
PROFEMUR Titanium Modular Neck Product [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Loss Contingency, Receivable, Period Increase (Decrease) | $ 25,000 | ||||||
Insurance Carrier [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from Legal Settlements | $ 30,750 | ||||||
Insurance Policy Limit | 25,000 | ||||||
Insurance Policy, Costs And Interest Received | $ 5,750 |
Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 10,517 | $ 10,816 |
Work-in-process | 36,029 | 28,581 |
Finished goods | 132,948 | 128,747 |
Total Inventory | $ 179,494 | $ 168,144 |
Derivatives and Fair Value of Financial Instruments (Details) $ / shares in Units, $ in Thousands |
2 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 20, 2016
USD ($)
counterparty
|
May 12, 2016 |
Sep. 01, 2015
USD ($)
$ / shares
|
Feb. 13, 2015
USD ($)
|
Aug. 31, 2012 |
Aug. 31, 2008 |
Mar. 01, 2013
$ / shares
|
Sep. 30, 2018
USD ($)
|
Sep. 24, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
$ / shares
|
Sep. 24, 2017
USD ($)
|
Jun. 28, 2018
counterparty
|
Dec. 31, 2017
USD ($)
|
|
Schedule of Marketable Securities [Line Items] | |||||||||||||
Cash and Cash Equivalents, at Carrying Value | $ 694,903 | $ 694,903 | $ 167,740 | ||||||||||
ThresholdForConversionAsPercentOfConversionPrice | 130.00% | 130.00% | 130.00% | ||||||||||
Cash Payment, Contingent Consideration | $ 42,000 | ||||||||||||
Cash and Cash Equivalents, Fair Value Disclosure | 694,903 | 694,903 | 167,740 | ||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (3,084) | $ 6,721 | |||||||||||
Non-cash adjustment to derivative fair values | $ 34,343 | (4,163) | |||||||||||
Debt Instrument, Convertible, Minimum Consecutive Period | 5 days | 20 days | 5 days | ||||||||||
Debt Instrument, Convertible, Trading Period | 30 days | 30 days | 30 days | ||||||||||
2021 Conversion Derivative [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Derivative, Gain (Loss) on Derivative, Net | (45,715) | $ 9,321 | $ (95,208) | (16,269) | |||||||||
2021 Notes Hedges [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Derivative, Gain (Loss) on Derivative, Net | 46,591 | (9,074) | 95,856 | 18,723 | |||||||||
2017 Notes Conversion Derivative [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 15 | 0 | (51) | |||||||||
2020 Conversion Derivative [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Derivative, Gain (Loss) on Derivative, Net | (8,186) | 10,292 | (38,268) | 5,298 | |||||||||
Fair Value, Measurements, Recurring [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Total Assets | 1,096,002 | 1,096,002 | 339,836 | ||||||||||
Total Liabilities | 457,226 | 457,226 | 231,793 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Total Assets | 694,903 | 694,903 | 167,740 | ||||||||||
Total Liabilities | 39,241 | 39,241 | 42,325 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | 0 | ||||||||||
Total Assets | 0 | 0 | 0 | ||||||||||
Total Liabilities | 0 | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | 0 | ||||||||||
Total Assets | 401,099 | 401,099 | 172,096 | ||||||||||
Total Liabilities | 417,985 | 417,985 | 189,468 | ||||||||||
BMTI Payment of Conditional Value Rights [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Price per share of contingent consideration | $ / shares | $ 3.50 | $ 6.50 | |||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 98,100 | ||||||||||||
Contingent Consideration [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Contingent Consideration Fair Value | 18,765 | 18,765 | 19,188 | ||||||||||
Contingent Consideration [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Contingent Consideration Fair Value | 0 | 0 | 0 | ||||||||||
Contingent Consideration [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Contingent Consideration Fair Value | 0 | 0 | 0 | ||||||||||
Contingent Consideration [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Contingent Consideration Fair Value | 18,765 | 18,765 | 19,188 | ||||||||||
Contingent Value Rights [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Contingent Consideration Fair Value | 39,241 | 39,241 | 42,325 | ||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset | 3,400 | 4,500 | 3,100 | 6,700 | |||||||||
Contingent Value Rights [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Contingent Consideration Fair Value | 39,241 | 39,241 | 42,325 | ||||||||||
Contingent Value Rights [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Contingent Consideration Fair Value | 0 | 0 | 0 | ||||||||||
Contingent Value Rights [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Contingent Consideration Fair Value | 0 | $ 0 | 0 | ||||||||||
AUGMENT Bone Graft Payment of Conditional Value Rights, Condition One [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Price per share of contingent consideration | $ / shares | $ 1.50 | ||||||||||||
AUGMENT Bone Graft Payment of Conditional Value Rights, Condition Two [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Price per share of contingent consideration | $ / shares | $ 1.50 | ||||||||||||
AUGMENT Bone Graft Payment of Conditional Value Rights, Condition Two [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Contingent Consideration Fair Value | 70,000 | $ 70,000 | |||||||||||
2023 Note Hedges [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Number of Counterparties | counterparty | 2 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 150,853 | 150,853 | 0 | ||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 9,575 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Currency | 0 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 0 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 141,278 | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 150,853 | 150,853 | |||||||||||
2023 Note Hedges [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Derivative Asset, Fair Value, Gross Asset | 150,853 | 150,853 | |||||||||||
2020 Settled Hedges [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Derivative Asset, Fair Value, Gross Asset | 27,327 | 27,327 | |||||||||||
2020 Settled Hedges [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Derivative Asset, Fair Value, Gross Asset | 27,327 | 27,327 | |||||||||||
2021 Notes Hedges [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Number of Counterparties | counterparty | 2 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 222,919 | 222,919 | 127,063 | ||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 95,856 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Currency | 0 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 222,919 | 222,919 | 127,063 | ||||||||||
2021 Notes Hedges [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Derivative Asset, Fair Value, Gross Asset | 222,919 | 222,919 | 127,063 | ||||||||||
2020 Notes Hedges [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 27,327 | 27,327 | 45,033 | ||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 16,847 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Currency | 0 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | (34,553) | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | ||||||||||||
Derivative Asset, Fair Value, Gross Asset | 45,033 | ||||||||||||
2020 Notes Hedges [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Derivative Asset, Fair Value, Gross Asset | 45,033 | ||||||||||||
2020 Warrants Derivative [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Currency | 0 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 23,972 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 0 | 0 | 0 | ||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | (27,308) | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 3,336 | ||||||||||||
2021 Conversion Derivative [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Currency | 0 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 221,356 | 221,356 | 126,148 | ||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | 0 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | (95,208) | ||||||||||||
Derivative Liability, Fair Value, Gross Liability | 221,356 | 221,356 | 126,148 | ||||||||||
2021 Conversion Derivative [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Derivative Liability, Fair Value, Gross Liability | 221,356 | 221,356 | 126,148 | ||||||||||
2020 Conversion Derivative [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Currency | 0 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | $ 400 | 55,643 | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 26,757 | 26,757 | 44,132 | ||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | 0 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | (38,268) | ||||||||||||
2020 Conversion Derivative [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Derivative Liability, Fair Value, Gross Liability | 26,757 | 26,757 | 44,132 | ||||||||||
2020 Conversion Derivative [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Derivative Liability, Fair Value, Gross Liability | 26,757 | 26,757 | 44,132 | ||||||||||
Contingent Consideration [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Currency | 784 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 919 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 18,765 | 18,765 | 19,188 | ||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | (1,280) | ||||||||||||
2017 Notes Conversion Derivative [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | $ 49,000 | ||||||||||||
2023 Conversion Derivative [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Currency | 0 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 151,107 | 151,107 | 0 | ||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | (124,625) | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | (26,482) | ||||||||||||
2023 Conversion Derivative [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Derivative Liability, Fair Value, Gross Liability | 151,107 | 151,107 | |||||||||||
2023 Conversion Derivative [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Derivative Liability, Fair Value, Gross Liability | 151,107 | 151,107 | |||||||||||
SSP - Distribution Business [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Contingent Consideration Fair Value | 900 | ||||||||||||
SSP - Distribution Business [Member] | Contingent Consideration [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | 0 | ||||||||||||
2021 Convertible Debt [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Number of Counterparties | counterparty | 2 | ||||||||||||
Long-term Debt, Gross | 395,000 | 395,000 | $ 395,000 | ||||||||||
Debt Instrument, Convertible, Trading Period | 100 days | ||||||||||||
2021 Change in Derivative fair Value [Member] | |||||||||||||
Schedule of Marketable Securities [Line Items] | |||||||||||||
Non-cash adjustment to derivative fair values | $ 876 | $ 247 | $ 648 | $ 2,454 |
Derivatives and Fair Value of Financial Instruments Derivatives (Details) |
2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 30, 2018
USD ($)
|
Jun. 28, 2018
USD ($)
counterparty
|
Aug. 15, 2017
USD ($)
|
May 20, 2016
USD ($)
counterparty
|
May 12, 2016 |
Sep. 01, 2015
USD ($)
$ / shares
|
Feb. 13, 2015
USD ($)
counterparty
|
Aug. 31, 2012
USD ($)
counterparty
|
Aug. 31, 2008 |
Mar. 01, 2013
$ / shares
|
Sep. 30, 2018
USD ($)
|
Sep. 24, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
$ / shares
|
Sep. 24, 2017
USD ($)
|
Oct. 28, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ThresholdForConversionAsPercentOfConversionPrice | 130.00% | 130.00% | 130.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Minimum Consecutive Period | 5 days | 20 days | 5 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Trading Period | 30 days | 30 days | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | The following table summarizes the net gain (loss) on changes in fair value (in thousands) related to the 2023 Notes Hedges and 2023 Notes Conversion Derivative:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents, at Carrying Value | $ 694,903,000 | $ 694,903,000 | $ 167,740,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Payment, Contingent Consideration | 42,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non Cash Adjustment Derivative Fair Value | (34,343,000) | $ 4,163,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments for Repurchase of Warrants | 23,972,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (3,084,000) | 6,721,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of notes hedge option | $ 34,553,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 Notes Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Counterparties | counterparty | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments for (Proceeds from) Hedge, Financing Activities | $ 56,200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | $ 70,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 Conversion Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assumptions, Expected Volatility Rate | 30.64% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative, Gain (Loss) on Derivative, Net | (25,244,000) | $ (26,482,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Warrants Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative, Gain (Loss) on Derivative, Net | 3,586,000 | $ 0 | 3,336,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Notes Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative, Gain (Loss) on Derivative, Net | 3,317,000 | (10,340,000) | $ 16,847,000 | (3,538,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | $ 3,900,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Conversion Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assumptions, Expected Volatility Rate | 31.92% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | $ 149,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative, Gain (Loss) on Derivative, Net | (8,186,000) | 10,292,000 | $ (38,268,000) | 5,298,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 Notes Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative, Gain (Loss) on Derivative, Net | 46,591,000 | (9,074,000) | 95,856,000 | 18,723,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 Notes Conversion Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | $ 48,100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative, Gain (Loss) on Derivative, Net | 0 | 15,000 | $ 0 | (51,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 Conversion Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assumptions, Expected Volatility Rate | 37.55% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative, Gain (Loss) on Derivative, Net | (45,715,000) | 9,321,000 | $ (95,208,000) | (16,269,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 Note Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative, Gain (Loss) on Derivative, Net | 25,880,000 | 9,575,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Conversion Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of notes hedge option | $ 27,300,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 Conversion Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | 117,200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 convertibledebt [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated percentage rate | 2.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | 14,081,000 | 14,081,000 | 66,418,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extinguishment of Debt, Amount | 45,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Debt | 44,600,000 | $ 292,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments for Repurchase of Warrants | 3,300,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of notes hedge option | 600,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 Convertible Debt [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated percentage rate | 2.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extinguishment of Debt, Amount | 54,400,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Debt | $ 2,000,000 | $ 56,300,000 | 240,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Periodic Payment, Interest | 2,400,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments for Repurchase of Warrants | 60,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment of notes hedge option | $ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 Convertible Debt [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Trading Period | 100 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | 395,000,000 | 395,000,000 | 395,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated percentage rate | 2.25% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | 74,552,000 | 74,552,000 | 89,332,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Counterparties | counterparty | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 Notes Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative, Cost of Hedge | $ 99,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Notes Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Counterparties | counterparty | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative, Cost of Hedge | $ 144,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 Change in Derivative Fair Value [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non Cash Adjustment Derivative Fair Value | 0 | (15,000) | 0 | 51,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Change in Derivative Fair Value [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non Cash Adjustment Derivative Fair Value | 1,283,000 | 48,000 | 18,085,000 | (1,760,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 Change in Derivative fair Value [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non Cash Adjustment Derivative Fair Value | (876,000) | (247,000) | $ (648,000) | (2,454,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wright Medical Group, Inc. [Member] | 2023 Conversion Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Entity Credit Risk | 2.55% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wright Medical Group, Inc. [Member] | 2020 Notes Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assumptions, Expected Volatility Rate | 31.92% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wright Medical Group, Inc. [Member] | 2020 Conversion Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Entity Credit Risk | 2.62% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wright Medical Group, Inc. [Member] | 2021 Notes Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assumptions, Expected Volatility Rate | 37.55% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wright Medical Group, Inc. [Member] | 2021 Conversion Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Entity Credit Risk | 3.13% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wright Medical Group, Inc. [Member] | 2023 Note Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assumptions, Expected Volatility Rate | 30.64% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEUTSCHE BANK SUPER X [Member] | 2020 Notes Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Entity Credit Risk | 1.27% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
WELLS FARGO LIQUIDITY CROSS ATS [Member] | 2020 Notes Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Entity Credit Risk | 0.15% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JP Morgan Chase Bank [Member] | 2020 Notes Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Entity Credit Risk | 0.17% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JP Morgan Chase Bank [Member] | 2021 Notes Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Entity Credit Risk | 0.27% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JP Morgan Chase Bank [Member] | 2023 Note Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Entity Credit Risk | 0.40% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank of America [Member] | 2021 Notes Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Entity Credit Risk | 0.28% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank of America [Member] | 2023 Note Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Entity Credit Risk | 0.46% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BMTI Payment of Conditional Value Rights [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price per share of contingent consideration | $ / shares | $ 3.50 | $ 6.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 98,100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AUGMENT Bone Graft Payment of Conditional Value Rights, Condition One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price per share of contingent consideration | $ / shares | $ 1.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AUGMENT Bone Graft Payment of Conditional Value Rights, Condition Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Price per share of contingent consideration | $ / shares | $ 1.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SSP - Distribution Business [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent Consideration Fair Value | 900,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Warrants Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | $ 23,972,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments For Warrants | $ 24,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 Conversion Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Liability, Fair Value, Gross Liability | 221,356,000 | 221,356,000 | 126,148,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 Conversion Derivative [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Liability, Fair Value, Gross Liability | 221,356,000 | 221,356,000 | 126,148,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Conversion Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds From Derivatives Settled | $ 55,600,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 400,000 | 55,643,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Conversion Derivative [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Liability, Fair Value, Gross Liability | 26,757,000 | 26,757,000 | 44,132,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Conversion Derivative [Member] | Fair Value, Inputs, Level 3 [Member] | Liability [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Liability, Fair Value, Gross Liability | 26,757,000 | 26,757,000 | 44,132,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 Notes Conversion Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Debt | $ 3,600,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 49,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 Note Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Counterparties | counterparty | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Asset, Fair Value, Gross Asset | 150,853,000 | 150,853,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative, Cost of Hedge | $ 141,300,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 Note Hedges [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Asset, Fair Value, Gross Asset | 150,853,000 | 150,853,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Settled Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds From Derivatives Settled | $ 34,600,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Asset, Fair Value, Gross Asset | 27,327,000 | 27,327,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Settled Hedges [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Asset, Fair Value, Gross Asset | 27,327,000 | 27,327,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 Notes Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Counterparties | counterparty | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Asset, Fair Value, Gross Asset | 222,919,000 | 222,919,000 | 127,063,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 Notes Hedges [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Asset, Fair Value, Gross Asset | 222,919,000 | 222,919,000 | 127,063,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Notes Hedges [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Asset, Fair Value, Gross Asset | 45,033,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | (34,553,000) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Notes Hedges [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Asset, Fair Value, Gross Asset | 45,033,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Notes Hedges [Member] | Fair Value, Inputs, Level 3 [Member] | Assets [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Asset, Fair Value, Gross Asset | 27,327,000 | 27,327,000 | 45,033,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 Convertible Debt [Member] | 2021 Convertible Debt [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extinguishment Of Debt, Amount Delivered Per Incremental Amount Exchanged | $ 1,035.40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 convertibledebt [Member] | 2021 Convertible Debt [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extinguishment Of Debt, Amount Delivered Per Incremental Amount Exchanged | 990.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Exchange [Member] | 2017 Notes Conversion Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | $ 200,000 | 1,900,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Repayment [Member] | 2017 Notes Conversion Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported Value Measurement [Member] | 2020 convertibledebt [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | $ 632,500,000 | 186,589,000 | 186,589,000 | 587,500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported Value Measurement [Member] | 2017 Convertible Debt [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | $ 300,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reported Value Measurement [Member] | 2021 Convertible Debt [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Gross | $ 395,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurements, Recurring [Member] | Contingent Consideration [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent Consideration Fair Value | 18,765,000 | 18,765,000 | 19,188,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurements, Recurring [Member] | Contingent Consideration [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent Consideration Fair Value | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurements, Recurring [Member] | Contingent Consideration [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent Consideration Fair Value | 18,765,000 | 18,765,000 | 19,188,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurements, Recurring [Member] | Contingent Value Rights [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent Consideration Fair Value | 39,241,000 | 39,241,000 | 42,325,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset | 3,400,000 | $ 4,500,000 | 3,100,000 | $ 6,700,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurements, Recurring [Member] | Contingent Value Rights [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent Consideration Fair Value | 39,241,000 | 39,241,000 | 42,325,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurements, Recurring [Member] | Contingent Value Rights [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent Consideration Fair Value | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurements, Recurring [Member] | AUGMENT Bone Graft Payment of Conditional Value Rights, Condition Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent Consideration Fair Value | 70,000,000 | 70,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurements, Recurring [Member] | 2020 Conversion Derivative [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Liability, Fair Value, Gross Liability | $ 26,757,000 | $ 26,757,000 | $ 44,132,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Circumstance 1 [Domain] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Convertible, Minimum Consecutive Period | 20 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash Payment, Contingent Consideration | $ 42,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Member] | Fair Value, Measurements, Recurring [Member] | AUGMENT Bone Graft Payment of Conditional Value Rights, Condition One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingent Consideration Fair Value | $ 40,000,000 |
Derivatives and Fair Value of Financial Instruments - Additional Information (Details) $ / shares in Units, € in Millions, shares in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 28, 2018
USD ($)
$ / shares
shares
|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2018
USD ($)
|
Sep. 24, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2017
EUR (€)
|
|
Derivative [Line Items] | ||||||
Non-cash adjustment to derivative fair values | $ 34,343,000 | $ (4,163,000) | ||||
2023 Convertible Debt [Member] | ||||||
Derivative [Line Items] | ||||||
Principal Amount | $ 675,000,000 | $ 675,000,000 | 675,000,000 | |||
Stated percentage rate | 1.625% | |||||
Long-term Debt, Fair Value | 715,800,000 | 715,800,000 | ||||
Debt Conversion, Converted Instrument, Amount Delivered | $ 1,138.70 | |||||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | shares | 20.2 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 40.86 | |||||
2023 Note Hedges [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | 150,853,000 | 150,853,000 | ||||
Derivative, Cost of Hedge | $ 141,300,000 | |||||
2023 Note Hedges [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Asset, Fair Value, Gross Asset | 150,853,000 | 150,853,000 | ||||
2023 Conversion Derivative [Member] | ||||||
Derivative [Line Items] | ||||||
Long-term Debt, Fair Value | $ 124,600,000 | |||||
2023 Conversion Derivative [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative Liability, Fair Value, Gross Liability | 151,107,000 | 151,107,000 | ||||
2023 Note Hedges [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Gain (Loss) on Derivative, Net | 25,880,000 | 9,575,000 | ||||
2023 Conversion Derivative [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative, Gain (Loss) on Derivative, Net | (25,244,000) | (26,482,000) | ||||
2023 Change in Derivative fair Value [Member] | ||||||
Derivative [Line Items] | ||||||
Non-cash adjustment to derivative fair values | 636,000 | (16,907,000) | ||||
Technical Milestones And Sales Earnouts [Member] | IMASCAP SAS [Member] | ||||||
Derivative [Line Items] | ||||||
Business Combination, Contingent Consideration, Liability | $ 18,600,000 | € 16.1 | ||||
Technical Milestones [Member] | IMASCAP SAS [Member] | ||||||
Derivative [Line Items] | ||||||
Business Combination, Contingent Consideration, Liability | 12,400,000 | $ 12,400,000 | 11,900,000 | |||
Fair Value Inputs, Discount Rate | 6.00% | |||||
Sales Earnouts [Member] | IMASCAP SAS [Member] | ||||||
Derivative [Line Items] | ||||||
Business Combination, Contingent Consideration, Liability | $ 6,300,000 | $ 6,300,000 | $ 5,900,000 | |||
Fair Value Inputs, Discount Rate | 12.00% | |||||
Sales Earnouts [Member] | Surgical Specialties Australia Pty. Ltd [Member] | ||||||
Derivative [Line Items] | ||||||
Fair Value Inputs, Discount Rate | 14.00% |
Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Property, Plant and Equipment, Net [Abstract] | ||
Property, plant and equipment, at cost | $ 519,226 | $ 448,921 |
Less: Accumulated depreciation | (298,051) | (236,542) |
Property, plant and equipment, net | $ 221,175 | $ 212,379 |
Goodwill and Intangibles (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Goodwill, Purchase Accounting Adjustments | $ (917) | |
Transfer of IPRD to Intangible Asset | 1,000 | |
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2017 | 933,662 | |
Foreign currency translation | (11,369) | |
Goodwill at September 30, 2018 | 921,376 | |
Total intangibles | 305,822 | $ 310,829 |
Less: Accumulated amortization | 96,232 | 79,828 |
Intangible assets, net | 209,590 | 231,001 |
Future amortization [Abstract] | ||
2017 | 24,600 | |
2018 | 22,800 | |
2019 | 22,100 | |
2020 | 21,900 | |
2021 | 21,900 | |
Indefinite-Lived Intangible Assets [Member] | Completed technology [Member] | ||
Goodwill [Roll Forward] | ||
Indefinite life intangibles | 5,178 | 6,422 |
Finite-Lived Intangible Assets [Member] | ||
Goodwill [Roll Forward] | ||
Definite life intangibles, Cost | 300,644 | 304,407 |
Less: Accumulated amortization | 96,232 | 79,828 |
Finite-Lived Intangible Assets [Member] | Distribution channels [Member] | ||
Goodwill [Roll Forward] | ||
Definite life intangibles, Cost | 900 | 900 |
Less: Accumulated amortization | 835 | 640 |
Finite-Lived Intangible Assets [Member] | Completed technology [Member] | ||
Goodwill [Roll Forward] | ||
Definite life intangibles, Cost | 147,619 | 149,645 |
Less: Accumulated amortization | 50,901 | 40,810 |
Finite-Lived Intangible Assets [Member] | Licenses [Member] | ||
Goodwill [Roll Forward] | ||
Definite life intangibles, Cost | 6,547 | 5,268 |
Less: Accumulated amortization | 1,706 | 1,530 |
Finite-Lived Intangible Assets [Member] | Customer Relationships [Member] | ||
Goodwill [Roll Forward] | ||
Definite life intangibles, Cost | 127,807 | 129,693 |
Less: Accumulated amortization | 28,414 | 23,268 |
Finite-Lived Intangible Assets [Member] | Trademarks [Member] | ||
Goodwill [Roll Forward] | ||
Definite life intangibles, Cost | 14,135 | 14,368 |
Less: Accumulated amortization | 11,536 | 10,487 |
Finite-Lived Intangible Assets [Member] | Noncompete Agreements [Member] | ||
Goodwill [Roll Forward] | ||
Definite life intangibles, Cost | 3,111 | 3,964 |
Less: Accumulated amortization | 2,315 | 2,603 |
Finite-Lived Intangible Assets [Member] | Other [Member] | ||
Goodwill [Roll Forward] | ||
Definite life intangibles, Cost | 525 | 569 |
Less: Accumulated amortization | 525 | $ 490 |
UNITED STATES | Lower Extremities & Biologics [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Goodwill, Purchase Accounting Adjustments | 0 | |
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2017 | 218,525 | |
Foreign currency translation | 0 | |
Goodwill at September 30, 2018 | 218,525 | |
UNITED STATES | Upper Extremities [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Goodwill, Purchase Accounting Adjustments | (917) | |
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2017 | 630,650 | |
Foreign currency translation | (1,111) | |
Goodwill at September 30, 2018 | 628,622 | |
International [Member] | Extremities & Biologics [Member] | ||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Goodwill, Purchase Accounting Adjustments | 0 | |
Goodwill [Roll Forward] | ||
Goodwill at December 31, 2017 | 84,487 | |
Foreign currency translation | (10,258) | |
Goodwill at September 30, 2018 | $ 74,229 |
Long-Term Debt and Capital Lease Obligations (Details) $ / shares in Units, shares in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 30, 2018
USD ($)
|
Jun. 28, 2018
USD ($)
counterparty
$ / shares
shares
|
Aug. 15, 2017
USD ($)
|
Dec. 23, 2016 |
May 20, 2016
USD ($)
counterparty
$ / shares
shares
|
May 12, 2016
$ / shares
|
Nov. 24, 2015
$ / shares
|
Feb. 13, 2015
USD ($)
counterparty
$ / shares
shares
|
Aug. 31, 2012
USD ($)
$ / shares
|
Aug. 31, 2008 |
May 31, 2018
USD ($)
|
Sep. 30, 2018
USD ($)
|
Jul. 01, 2018
shares
|
Sep. 24, 2017
USD ($)
|
Mar. 31, 2015
USD ($)
|
Sep. 30, 2018
USD ($)
|
Sep. 24, 2017
USD ($)
shares
|
Dec. 31, 2017
USD ($)
|
Sep. 25, 2016 |
Oct. 01, 2015
$ / shares
|
Feb. 09, 2015
$ / shares
|
Sep. 30, 2012
USD ($)
|
Dec. 31, 2008
USD ($)
|
Jul. 29, 2008 |
||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations | $ 1,101,512,000 | $ 1,101,512,000 | $ 895,114,000 | ||||||||||||||||||||||||||
Less: current portion | [1],[2] | (514,930,000) | (514,930,000) | (58,906,000) | |||||||||||||||||||||||||
Long-term debt and capital lease obligations | [1] | 586,582,000 | 586,582,000 | 836,208,000 | |||||||||||||||||||||||||
Write off of pro-rata unamortized deferred financing fees and for bank and legal fees | $ 39,935,000 | $ 0 | |||||||||||||||||||||||||||
ThresholdForConversionAsPercentOfConversionPrice | 130.00% | 130.00% | 130.00% | ||||||||||||||||||||||||||
Threshold For Conversion | 98.00% | 98.00% | 98.00% | ||||||||||||||||||||||||||
Debt Instrument, Convertible, Minimum Consecutive Period | 5 days | 20 days | 5 days | ||||||||||||||||||||||||||
Debt Instrument, Convertible, Trading Period | 30 days | 30 days | 30 days | ||||||||||||||||||||||||||
Debt instrument, convertible, purchase price as a percent of principal amount if fundamental change event occurs | 100.00% | 100.00% | |||||||||||||||||||||||||||
Amortization of Debt Discount (Premium) | 5,000,000 | $ 4,600,000 | $ 14,800,000 | 13,400,000 | |||||||||||||||||||||||||
Payments for Repurchase of Warrants | 23,972,000 | ||||||||||||||||||||||||||||
Payment of notes hedge option | 34,553,000 | ||||||||||||||||||||||||||||
Issuance of warrants | 102,137,000 | 0 | |||||||||||||||||||||||||||
Debt Issuance Costs, Line of Credit Arrangements, Gross | 1,800,000 | 1,800,000 | 2,200,000 | ||||||||||||||||||||||||||
Debt Instrument, Description of Variable Rate Basis | 0.0075 | 0.01 | |||||||||||||||||||||||||||
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities, Prepayment Speed | 100.00% | ||||||||||||||||||||||||||||
Proceeds from Collaborators | $ 10,000,000 | ||||||||||||||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 1.00% | ||||||||||||||||||||||||||||
Line of Credit Facility, Minimum Borrowing Capacity as Percentage of Available Borrowing Capacity | 20.00% | ||||||||||||||||||||||||||||
Line of Credit, Prepayment Penalty | 1.00% | ||||||||||||||||||||||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 500,000 | 500,000 | 1,000,000 | ||||||||||||||||||||||||||
Term Loan [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Long-term Debt | 20,000,000 | 20,000,000 | |||||||||||||||||||||||||||
Debt Issuance Costs, Net | $ 1,000,000 | ||||||||||||||||||||||||||||
Capital Lease Obligations [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations | 22,875,000 | 22,875,000 | 20,401,000 | ||||||||||||||||||||||||||
2023 Convertible Debt [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations | 542,575,000 | 542,575,000 | 0 | ||||||||||||||||||||||||||
Stated percentage rate | 1.625% | ||||||||||||||||||||||||||||
Debt instrument, convertible, conversion ratio | 29.9679 | ||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 33.37 | ||||||||||||||||||||||||||||
Debt Instrument, Convertible, Trading Period | 120 days | ||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.06% | ||||||||||||||||||||||||||||
Long-term Debt, Fair Value | 715,800,000 | 715,800,000 | |||||||||||||||||||||||||||
Number of Counterparties | counterparty | 2 | ||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | (119,519,000) | (119,519,000) | |||||||||||||||||||||||||||
Unamortized Debt Issuance Expense | (12,906,000) | (12,906,000) | |||||||||||||||||||||||||||
Incremental Common Shares Attributable to Call Options and Warrants | shares | 20.2 | ||||||||||||||||||||||||||||
Issuance of warrants | $ 102,100,000 | ||||||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 40.86 | ||||||||||||||||||||||||||||
Debt Issuance Costs, Net | $ 12,400,000 | ||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Amount Delivered | 1,138.70 | ||||||||||||||||||||||||||||
2023 Note Hedges [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Indebtedness in Excess, Default | 25,000,000 | ||||||||||||||||||||||||||||
2021 Convertible Debt [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Long-term Debt, Gross | 395,000,000 | 395,000,000 | 395,000,000 | ||||||||||||||||||||||||||
Debt and Capital Lease Obligations | [2] | 315,793,000 | 315,793,000 | 300,051,000 | |||||||||||||||||||||||||
Stated percentage rate | 2.25% | ||||||||||||||||||||||||||||
Maturity date | Nov. 15, 2021 | ||||||||||||||||||||||||||||
Debt instrument, convertible, conversion ratio | 46.8165 | ||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 21.36 | ||||||||||||||||||||||||||||
Debt Instrument, Convertible, Trading Period | 100 days | ||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 9.72% | ||||||||||||||||||||||||||||
Long-term Debt, Fair Value | 572,800,000 | 572,800,000 | |||||||||||||||||||||||||||
Number of Counterparties | counterparty | 2 | ||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | (74,552,000) | (74,552,000) | (89,332,000) | ||||||||||||||||||||||||||
Unamortized Debt Issuance Expense | $ (7,300,000) | (4,655,000) | (4,655,000) | (5,617,000) | |||||||||||||||||||||||||
Incremental Common Shares Attributable to Call Options and Warrants | shares | 18.5 | ||||||||||||||||||||||||||||
Issuance of warrants | $ 54,600,000 | ||||||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 30.00 | ||||||||||||||||||||||||||||
Strike Price, In Excess of Stock Price | 69.00% | ||||||||||||||||||||||||||||
2020 convertibledebt [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations | [2] | 170,798,000 | 170,798,000 | 513,014,000 | |||||||||||||||||||||||||
Stated percentage rate | 2.00% | ||||||||||||||||||||||||||||
Maturity date | Feb. 15, 2020 | ||||||||||||||||||||||||||||
Write off of pro-rata unamortized deferred financing fees and for bank and legal fees | 39,900,000 | 9,300,000 | |||||||||||||||||||||||||||
Debt instrument, convertible, conversion ratio | 33.3949 | 32.3939 | |||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 29.94 | $ 30.87 | |||||||||||||||||||||||||||
Amortization of Debt Discount (Premium) | $ 2,400,000 | 6,900,000 | $ 16,700,000 | $ 20,300,000 | |||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.54% | 8.54% | |||||||||||||||||||||||||||
Extinguishment of Debt, Amount | 45,000,000 | ||||||||||||||||||||||||||||
Long-term Debt, Fair Value | $ 204,700,000 | $ 204,700,000 | |||||||||||||||||||||||||||
Repayments of Debt | 44,600,000 | $ 292,000,000 | |||||||||||||||||||||||||||
Payments for Repurchase of Warrants | 3,300,000 | ||||||||||||||||||||||||||||
Payment of notes hedge option | 600,000 | ||||||||||||||||||||||||||||
Proceeds from Warrant Exercises | $ 10,600,000 | ||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | (14,081,000) | (14,081,000) | (66,418,000) | ||||||||||||||||||||||||||
Unamortized Debt Issuance Expense | $ (18,100,000) | (1,710,000) | (1,710,000) | (8,068,000) | |||||||||||||||||||||||||
Incremental Common Shares Attributable to Call Options and Warrants | shares | 20.5 | 6.2 | 19.6 | ||||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 38.8010 | $ 40.00 | |||||||||||||||||||||||||||
Warrant Strike Price in Excess of Common Stock Price, Percent | 59.00% | ||||||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 21.1 | ||||||||||||||||||||||||||||
Debt Conversion, Converted Instrument, Amount | $ 400,900,000 | ||||||||||||||||||||||||||||
2017 Convertible Debt [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations | 18,903,000 | $ 18,903,000 | 0 | ||||||||||||||||||||||||||
Stated percentage rate | 2.00% | ||||||||||||||||||||||||||||
Maturity date | Aug. 15, 2017 | ||||||||||||||||||||||||||||
Debt instrument, convertible, conversion ratio | 39.3140 | ||||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 25.44 | ||||||||||||||||||||||||||||
Extinguishment of Debt, Amount | 54,400,000 | ||||||||||||||||||||||||||||
Repayments of Debt | $ 2,000,000 | 56,300,000 | $ 240,000,000 | ||||||||||||||||||||||||||
Payments for Repurchase of Warrants | 60,000,000 | ||||||||||||||||||||||||||||
Payment of notes hedge option | 10,000,000 | ||||||||||||||||||||||||||||
Unamortized Debt Issuance Expense | $ (8,800,000) | ||||||||||||||||||||||||||||
Line of Credit [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations | 21,549,000 | $ 21,549,000 | 53,600,000 | ||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 150,000,000 | ||||||||||||||||||||||||||||
Shareholder Debt- TRNX [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Notes Payable, Noncurrent | 1,500,000 | 1,500,000 | 1,600,000 | ||||||||||||||||||||||||||
Other Debt Obligations [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations | $ 9,019,000 | $ 9,019,000 | 8,003,000 | ||||||||||||||||||||||||||
Minimum [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.55% | 2.55% | |||||||||||||||||||||||||||
Maximum [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.90% | 4.90% | |||||||||||||||||||||||||||
Maximum [Member] | Line of Credit [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 100,000,000 | ||||||||||||||||||||||||||||
2020 Conversion Derivative [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | $ (149,800,000) | ||||||||||||||||||||||||||||
2017 Notes Conversion Derivative [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Write off of pro-rata unamortized deferred financing fees and for bank and legal fees | $ 3,000,000 | $ 25,100,000 | |||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.47% | ||||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | $ (48,100,000) | ||||||||||||||||||||||||||||
Mr. Tornier [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | ||||||||||||||||||||||||||||
Other Borrowings | $ 2,200,000.00 | ||||||||||||||||||||||||||||
Tornier SAS [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 51.00% | ||||||||||||||||||||||||||||
Base Rate [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 3.00% | ||||||||||||||||||||||||||||
Variable Income Interest Rate [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate at Period End | 4.00% | 8.00% | |||||||||||||||||||||||||||
Secured Debt [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Long-term Line of Credit | $ 21,549,000 | $ 21,549,000 | 53,645,000 | ||||||||||||||||||||||||||
Euro London Interbank Offered Rate (Euro LIBROR) [Member] | Shareholder Debt- TRNX [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | ||||||||||||||||||||||||||||
Term Loan [Member] | Line of Credit [Member] | Secured Debt [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000,000 | ||||||||||||||||||||||||||||
Debt Instrument, Term | 2 years | ||||||||||||||||||||||||||||
Other Debt [Member] | Notes Payable, Other Payables [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Long-term Debt | 6,000,000 | $ 6,000,000 | 4,200,000 | ||||||||||||||||||||||||||
2020 Notes Hedges [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Number of Counterparties | counterparty | 3 | ||||||||||||||||||||||||||||
Indebtedness in Excess, Default | $ 25,000,000 | ||||||||||||||||||||||||||||
Derivative, Cost of Hedge | 144,800,000 | ||||||||||||||||||||||||||||
IMASCAP SAS [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Loans Payable | 1,000,000 | 1,000,000 | 1,200,000 | ||||||||||||||||||||||||||
Debt Instrument, Tranche 1 [Member] | Term Loan [Member] | Line of Credit [Member] | Secured Debt [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000,000 | ||||||||||||||||||||||||||||
Debt Instrument, Tranche 2 [Member] | Term Loan [Member] | Line of Credit [Member] | Secured Debt [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000,000 | ||||||||||||||||||||||||||||
Reported Value Measurement [Member] | 2021 Convertible Debt [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Long-term Debt, Gross | $ 395,000,000 | ||||||||||||||||||||||||||||
Reported Value Measurement [Member] | 2020 convertibledebt [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Long-term Debt, Gross | $ 632,500,000 | $ 186,589,000 | $ 186,589,000 | $ 587,500,000 | |||||||||||||||||||||||||
Reported Value Measurement [Member] | 2017 Convertible Debt [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Long-term Debt, Gross | $ 300,000,000 | ||||||||||||||||||||||||||||
Debt Instrument, Tranche 1 [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Line of Credit, Prepayment Penalty | 3.00% | ||||||||||||||||||||||||||||
Debt Instrument, Tranche 2 [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Line of Credit, Prepayment Penalty | 2.00% | ||||||||||||||||||||||||||||
Debt Instrument, Tranche 3 [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Line of Credit, Prepayment Penalty | 0.75% | ||||||||||||||||||||||||||||
2023 Note Hedges [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Number of Counterparties | counterparty | 2 | ||||||||||||||||||||||||||||
Derivative, Cost of Hedge | $ 141,300,000 | ||||||||||||||||||||||||||||
2021 Notes Hedges [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Number of Counterparties | counterparty | 2 | ||||||||||||||||||||||||||||
2020 convertibledebt [Member] | 2021 Convertible Debt [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Extinguishment Of Debt, Amount Delivered Per Incremental Amount Exchanged | $ 990.00 | ||||||||||||||||||||||||||||
2017 Convertible Debt [Member] | 2021 Convertible Debt [Member] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Extinguishment Of Debt, Amount Delivered Per Incremental Amount Exchanged | $ 1,035.40 | ||||||||||||||||||||||||||||
Circumstance 1 [Domain] | |||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||
Debt Instrument, Convertible, Minimum Consecutive Period | 20 days | ||||||||||||||||||||||||||||
|
Long-Term Debt and Capital Lease Obligations - 2023 Notes (Details) $ / shares in Units, $ in Thousands, shares in Millions |
3 Months Ended | 9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2018
USD ($)
counterparty
$ / shares
shares
|
May 20, 2016
USD ($)
counterparty
$ / shares
shares
|
May 12, 2016
$ / shares
|
Feb. 13, 2015 |
Aug. 31, 2012 |
Aug. 31, 2008 |
Sep. 30, 2018
USD ($)
|
Sep. 30, 2018
USD ($)
|
Sep. 24, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
|||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Convertible, Minimum Consecutive Period | 5 days | 20 days | 5 days | |||||||||
Debt Instrument, Convertible, Trading Period | 30 days | 30 days | 30 days | |||||||||
ThresholdForConversionAsPercentOfConversionPrice | 130.00% | 130.00% | 130.00% | |||||||||
Threshold For Conversion | 98.00% | 98.00% | 98.00% | |||||||||
Debt instrument, convertible, purchase price as a percent of principal amount if fundamental change event occurs | 100.00% | 100.00% | ||||||||||
Debt and Capital Lease Obligations | $ 1,101,512 | $ 1,101,512 | $ 895,114 | |||||||||
Issuance of warrants | 102,137 | $ 0 | ||||||||||
2021 Convertible Debt [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stated percentage rate | 2.25% | |||||||||||
Debt instrument, convertible, conversion ratio | 46.8165 | |||||||||||
Conversion price (in dollars per share) | $ / shares | $ 21.36 | |||||||||||
Debt Instrument, Convertible, Trading Period | 100 days | |||||||||||
Debt Instrument, Unamortized Discount | (74,552) | (74,552) | (89,332) | |||||||||
Unamortized Debt Issuance Expense | $ (7,300) | (4,655) | (4,655) | (5,617) | ||||||||
Debt and Capital Lease Obligations | [1] | 315,793 | 315,793 | 300,051 | ||||||||
Long-term Debt, Fair Value | 572,800 | 572,800 | ||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | shares | 18.5 | |||||||||||
Number of Counterparties | counterparty | 2 | |||||||||||
Issuance of warrants | $ 54,600 | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 30.00 | |||||||||||
2021 Notes Hedges [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Indebtedness in Excess, Default | $ 25,000 | |||||||||||
2023 Note Hedges [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Indebtedness in Excess, Default | $ 25,000 | |||||||||||
2023 Convertible Debt [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal Amount | $ 675,000 | 675,000 | 675,000 | |||||||||
Stated percentage rate | 1.625% | |||||||||||
Debt instrument, convertible, conversion ratio | 29.9679 | |||||||||||
Conversion price (in dollars per share) | $ / shares | $ 33.37 | |||||||||||
Debt Instrument, Convertible, Trading Period | 120 days | |||||||||||
Debt Issuance Costs, Net | $ 12,400 | |||||||||||
Derivative Liability | $ 124,600 | |||||||||||
Interest Expense, Debt | 4,900 | 5,100 | ||||||||||
Debt Instrument, Unamortized Discount | (119,519) | (119,519) | ||||||||||
Unamortized Debt Issuance Expense | (12,906) | (12,906) | ||||||||||
Debt and Capital Lease Obligations | 542,575 | 542,575 | $ 0 | |||||||||
Long-term Debt, Fair Value | $ 715,800 | $ 715,800 | ||||||||||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | shares | 20.2 | |||||||||||
Number of Counterparties | counterparty | 2 | |||||||||||
Issuance of warrants | $ 102,100 | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 40.86 | |||||||||||
2021 Notes Hedges [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of Counterparties | counterparty | 2 | |||||||||||
Circumstance 1 [Domain] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Convertible, Minimum Consecutive Period | 20 days | |||||||||||
|
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 24, 2017 |
Sep. 30, 2018 |
Sep. 24, 2017 |
Dec. 31, 2017 |
Dec. 25, 2016 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | $ 958,498 | $ 538,516 | $ 958,498 | $ 538,516 | $ 588,696 | $ 686,864 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (19,642) | 44,362 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 2,648 | 2,648 | 22,290 | |||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | 2,648 | 24,901 | 2,648 | 24,901 | $ 22,290 | $ (19,461) |
Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Translation Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (2,773) | 25,132 | (19,642) | 44,362 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 2,648 | $ 24,901 | $ 2,648 | $ 24,901 |
Changes in Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 24, 2017 |
Sep. 30, 2018 |
Sep. 24, 2017 |
|
Stockholders' Equity Attributable to Parent, Beginning Balance | $ 588,696 | $ 686,864 | ||
Net (loss) income | $ (42,525) | $ (131,870) | (135,737) | (231,731) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (19,642) | 44,362 | ||
Stock Issued During Period, Value, New Issues | 10,975 | 24,828 | ||
Stock Issued During Period, Value, Other | 423,012 | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 18,238 | 14,193 | ||
Stockholders' Equity Attributable to Parent, Ending Balance | $ 958,498 | $ 538,516 | 958,498 | $ 538,516 |
Adjustments to Additional Paid in Capital, Warrant Issued | $ 72,956 | |||
Common Stock [Member] | ||||
Common Stock, Shares, Outstanding, Beginning Balance | 105,807 | 103,401 | ||
Stockholders' Equity Attributable to Parent, Beginning Balance | $ 3,896 | $ 3,815 | ||
Stock Issued During Period, Shares, New Issues | 557 | 1,217 | ||
Stock Issued During Period, Value, New Issues | $ 20 | $ 40 | ||
Stock Issued During Period, Shares, Other | 18,249 | |||
Stock Issued During Period, Value, Other | $ 641 | |||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 452 | 394 | ||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $ 16 | $ 13 | ||
Common Stock, Shares, Outstanding, Ending Balance | 125,065 | 105,012 | 125,065 | 105,012 |
Stockholders' Equity Attributable to Parent, Ending Balance | $ 4,573 | $ 3,868 | $ 4,573 | $ 3,868 |
Additional Paid-in Capital [Member] | ||||
Stockholders' Equity Attributable to Parent, Beginning Balance | 1,971,347 | 1,908,749 | ||
Stock Issued During Period, Value, New Issues | 10,955 | 24,788 | ||
Stock Issued During Period, Value, Other | 422,371 | |||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (16) | (13) | ||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 18,238 | 14,193 | ||
Stockholders' Equity Attributable to Parent, Ending Balance | 2,495,851 | 1,947,717 | 2,495,851 | 1,947,717 |
Adjustments to Additional Paid in Capital, Warrant Issued | 72,956 | |||
Retained Earnings [Member] | ||||
Stockholders' Equity Attributable to Parent, Beginning Balance | (1,408,837) | (1,206,239) | ||
Stockholders' Equity Attributable to Parent, Ending Balance | (1,544,574) | (1,437,970) | (1,544,574) | (1,437,970) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Stockholders' Equity Attributable to Parent, Beginning Balance | 22,290 | (19,461) | ||
Stockholders' Equity Attributable to Parent, Ending Balance | 2,648 | 24,901 | 2,648 | 24,901 |
Accumulated Translation Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ (2,773) | $ 25,132 | $ (19,642) | $ 44,362 |
Capital Stock and Earnings per share Capital Stock (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 28, 2018
shares
|
May 20, 2016
shares
|
Feb. 13, 2015
shares
|
Sep. 30, 2018
USD ($)
$ / shares
shares
|
Jul. 01, 2018
shares
|
Sep. 30, 2018
USD ($)
$ / shares
shares
|
Sep. 24, 2017
shares
|
Sep. 30, 2018
€ / shares
shares
|
Dec. 31, 2017
€ / shares
shares
|
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Shares Issued, Price Per Share | $ / shares | $ 24.60 | $ 24.60 | |||||||
Stock Issued | $ | $ 448,900 | ||||||||
Proceeds from equity offering | $ | $ 448,924 | ||||||||
Payments of Stock Issuance Costs | $ | $ 25,566 | ||||||||
Common stock, shares authorized (in shares) | 320,000,000 | 320,000,000 | 320,000,000 | 320,000,000 | |||||
Common Stock, Par or Stated Value Per Share | € / shares | € 0.03 | € 0.03 | |||||||
Common Stock, Shares, Issued | 125,065,240 | 125,065,240 | 125,065,240 | 105,807,424 | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10,400,000 | 10,400,000 | |||||||
Antidilutive Securities Stock Options | 1,300,000 | 1,400,000 | |||||||
Antidilutive securities, non-vested shares, performance shares | 200,000 | 200,000 | 100,000 | 200,000 | |||||
2020convertibledebt [Member] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 20,500,000 | 6,200,000 | 19,600,000 | ||||||
2021 Convertible Debt [Member] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 18,500,000 | ||||||||
2023 Convertible Debt [Member] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 20,200,000 | ||||||||
Common Stock [Member] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Stock Issued During Period, Shares, Other | 18,249,000 | ||||||||
Sale of Stock [Domain] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Proceeds from equity offering | $ | $ 423,011 | ||||||||
Discount and Commissions [Member] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Payments of Stock Issuance Costs | $ | 25,421 | ||||||||
Other Offering Costs [Domain] | |||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||
Payments of Stock Issuance Costs | $ | $ 492 |
Earnings per share (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 24, 2017 |
Sep. 30, 2018 |
Sep. 24, 2017 |
|
Earnings Per Share [Abstract] | ||||
Weighted-average number of ordinary shares outstanding-basic and diluted (in shares) | 113,043 | 104,836 | 108,348 | 104,292 |
Commitments and Contingencies - Product Liability Contingency (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 08, 2018 |
May 01, 2018 |
Apr. 30, 2018 |
Apr. 19, 2018 |
Mar. 29, 2018 |
Feb. 22, 2018 |
Oct. 03, 2017 |
Sep. 01, 2015 |
Dec. 25, 2016 |
Sep. 30, 2013 |
Jun. 30, 2013 |
Mar. 31, 2013 |
Sep. 30, 2018 |
Dec. 31, 2017 |
Dec. 27, 2015 |
Jan. 02, 2018 |
Nov. 01, 2016 |
|
Product Liability Contingency [Line Items] | |||||||||||||||||
Restricted Cash and Cash Equivalents, Current | $ 150,000 | ||||||||||||||||
Third Party Recovery | $ 10,000 | $ 5,000 | |||||||||||||||
PROFEMUR Titanium Modular Neck Product [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Insurance Settlements Receivable, Current | $ 0 | ||||||||||||||||
Allowance for Doubtful Accounts Receivable, Write-offs | $ 25,000 | ||||||||||||||||
Product liability, current | 11,700 | ||||||||||||||||
Product liability, non-current | 6,500 | ||||||||||||||||
Increase Decrease in Estimated Recovery from Third Party | $ 19,400 | ||||||||||||||||
Loss Contingency, Receivable, Period Increase (Decrease) | $ 25,000 | ||||||||||||||||
CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Loss Contingency Accrual | 105,600 | ||||||||||||||||
Master Settlement Agreement - MDL & JCCP [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Percent Of Claimants Opted-In | 99.00% | ||||||||||||||||
Master Settlement Agreement - MDL & JCCP [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Loss Contingency Accrual | 240,000 | ||||||||||||||||
Accrual for eligible claims in excess of 1292 excluded from MSA [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Loss Contingency Accrual | 9,400 | ||||||||||||||||
Second Settlement Agreement [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Percent Of Claimants Opted-In | 100.00% | ||||||||||||||||
Second Settlement Agreement [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Loss Contingency Accrual | 82,700 | ||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 89,750 | ||||||||||||||||
Metal-On-Metal Claims [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Proceeds From Insurance Policies | $ 101,900 | ||||||||||||||||
Proceeds From Insurance Policies, Paid Directly To Entity | 95,200 | ||||||||||||||||
Proceeds From Insurance Policies, Paid To Third Party Claimants | 6,700 | ||||||||||||||||
Minimum [Member] | PROFEMUR Titanium Modular Neck Product [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Estimated product liability range | 18,200 | ||||||||||||||||
Accrued Liabilities, Current [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Loss Contingency Accrual | 88,800 | ||||||||||||||||
Other Noncurrent Liabilities [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Loss Contingency Accrual | 16,800 | ||||||||||||||||
Insurance Carrier [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Proceeds from Legal Settlements | $ 30,750 | ||||||||||||||||
Insurance Policy Limit | 25,000 | ||||||||||||||||
Insurance Policy, Costs And Interest Received | $ 5,750 | ||||||||||||||||
Columbia [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Insurance Recoveries | $ 60,000 | 10,000 | |||||||||||||||
Federal [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Proceeds from Legal Settlements | $ 15,000 | 5,000 | |||||||||||||||
Lloyd's Of London Syndicate 2003 [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Proceeds from Legal Settlements | $ 2,000 | $ 5,000 | |||||||||||||||
Lexington [Member] | Metal-On-Metal Claims [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Policy Limits Remaining | 30,000 | ||||||||||||||||
Catlin [Member] | Metal-On-Metal Claims [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Policy Limits Remaining | $ 5,000 | ||||||||||||||||
Tranche 1 [Member] | Second Settlement Agreement [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | 7,900 | ||||||||||||||||
Tranche 2 [Member] | Second Settlement Agreement [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | 5,100 | ||||||||||||||||
Tranche 3 [Member] | Second Settlement Agreement [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | 76,750 | ||||||||||||||||
Litigation Settlement, Amount, Net Of Insurance Deficit | 45,000 | ||||||||||||||||
Litigation Settlement, Amount, Insurance Deficit | $ 13,100 | ||||||||||||||||
Tranche 3 [Member] | Third Settlement Agreement [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | |||||||||||||||||
Product Liability Contingency [Line Items] | |||||||||||||||||
Insurance Recoveries | $ 21,900 | ||||||||||||||||
Loss Contingency, Estimated Recovery from Third Party | 35 | ||||||||||||||||
Settlement Costs | $ 5,000 | ||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 541,000 | ||||||||||||||||
Litigation Settlement, Amount, Insurance Deficit | $ 13,100 |
Segment Data (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
|
Sep. 24, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
|
Sep. 24, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
||||
Segment Reporting Information [Line Items] | ||||||||
Interest Income (Expense), Nonoperating, Net | $ (19,753) | $ (18,978) | $ (60,243) | $ (55,512) | ||||
Net sales | 194,106 | 170,503 | 598,043 | 527,387 | ||||
Operating Income (Loss) | (9,134) | (18,509) | (11,682) | (36,900) | ||||
Transaction and Transition Expense | 1,952 | 3,311 | 4,187 | 9,484 | ||||
Other Nonoperating Income (Expense) | 3,902 | 5,457 | 75,649 | 6,875 | ||||
Assets | 2,839,295 | 2,839,295 | $ 2,128,724 | |||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (32,789) | (42,944) | (147,574) | (99,287) | ||||
EMEA [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 32,931 | 29,496 | 113,122 | 97,732 | ||||
UNITED STATES | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 145,565 | 126,864 | 441,933 | 391,954 | ||||
Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 15,610 | 14,143 | 42,988 | 37,701 | ||||
Extremities & Biologics [Member] | EMEA [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 1,828 | 1,727 | 6,244 | 6,159 | ||||
Extremities & Biologics [Member] | International [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 48,541 | 43,639 | 156,110 | 135,433 | ||||
Depreciation | 3,366 | 3,298 | 9,604 | 8,539 | ||||
AmortizationExpenseWithoutDistributorConversion | 0 | 0 | 0 | 0 | ||||
Segment Operating Loss | (278) | (1,563) | (1,526) | 1,641 | ||||
Assets | 249,051 | 249,051 | 301,985 | |||||
Extremities & Biologics [Member] | UNITED STATES | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 20,654 | 18,640 | 59,053 | 56,547 | ||||
Extremities & Biologics [Member] | Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 4,721 | 3,466 | 12,144 | 9,333 | ||||
Lower Extremities & Biologics [Member] | EMEA [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 9,527 | 9,022 | 33,761 | 30,379 | ||||
Lower Extremities & Biologics [Member] | UNITED STATES | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 57,602 | 51,417 | 173,889 | 161,228 | ||||
Lower Extremities & Biologics [Member] | Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 3,974 | 4,941 | 10,747 | 11,993 | ||||
Upper Extremities [Member] | EMEA [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 18,985 | 15,779 | 64,935 | 51,193 | ||||
Upper Extremities [Member] | UNITED STATES | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 65,334 | 54,788 | 203,163 | 168,280 | ||||
Upper Extremities [Member] | Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 6,696 | 5,418 | 19,477 | 15,413 | ||||
Sports Med And Other [Member] | EMEA [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 2,591 | 2,968 | 8,182 | 10,001 | ||||
Sports Med And Other [Member] | UNITED STATES | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 1,975 | 2,019 | 5,828 | 5,899 | ||||
Sports Med And Other [Member] | Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 219 | 318 | 620 | 962 | ||||
UNITED STATES | Lower Extremities & Biologics [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 79,296 | 70,946 | 235,595 | 220,259 | ||||
Depreciation | 2,474 | 3,871 | 7,729 | 10,080 | ||||
AmortizationExpenseWithoutDistributorConversion | 0 | 0 | 0 | 0 | ||||
Segment Operating Loss | 20,487 | 13,506 | 62,211 | 51,988 | ||||
Assets | 524,265 | 524,265 | 490,528 | |||||
UNITED STATES | Upper Extremities [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 66,269 | 55,918 | 206,338 | 171,695 | ||||
Depreciation | 2,836 | 2,372 | 8,350 | 7,321 | ||||
AmortizationExpenseWithoutDistributorConversion | 0 | 0 | 0 | 0 | ||||
Segment Operating Loss | 21,192 | 16,575 | 69,864 | 52,942 | ||||
Assets | 922,120 | 922,120 | 929,930 | |||||
Corporate Segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | [1] | 0 | 0 | 0 | 0 | |||
Depreciation | [1] | 5,928 | 5,459 | 17,303 | 16,184 | |||
AmortizationExpenseWithoutDistributorConversion | [1] | 5,881 | 7,178 | 19,031 | 21,574 | |||
Segment Operating Loss | [1] | (48,583) | (43,716) | (138,044) | (133,987) | |||
Assets | 1,143,859 | $ 1,143,859 | $ 406,281 | |||||
segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Number of Reportable Segments | 3 | |||||||
Depreciation | 14,604 | 15,000 | $ 42,986 | 42,124 | ||||
AmortizationExpenseWithoutDistributorConversion | 5,881 | 7,178 | 19,031 | 21,574 | ||||
Segment Operating Loss | $ (7,182) | $ (15,198) | $ (7,495) | $ (27,416) | ||||
|
Subsequent Event Subsequent Event (Details) - USD ($) shares in Thousands, $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 10, 2018 |
|
Subsequent Event [Line Items] | ||
Proceeds from equity offering | $ 448,924 | |
Common Stock [Member] | ||
Subsequent Event [Line Items] | ||
Stock Issued During Period, Shares, Other | 18,249 | |
Cartiva, Inc. [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Business Acquisition, Transaction Costs | $ 435,000 |
Label | Element | Value |
---|---|---|
Restricted Cash | us-gaap_RestrictedCash | $ 150,000,000 |
Cash | us-gaap_Cash | $ 262,300,000 |
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