Discontinued Operations And Restructuring Activities

12 Months Ended

Dec. 31, 2011

Discontinued Operations And Restructuring Activities [Abstract]

Discontinued Operations And Restructuring Activities

14. Discontinued Operations and Restructuring Activities

Discontinued Operations

In connection with the Company's strategy to focus on the sale of spinal implants in Japan, Alphatec Pacific entered into an agreement to sell one of its wholly owned subsidiaries, IMC Co., to a third party in April 2010. The Company determined that IMC Co. was a non-strategic asset given that it is a distribution company that primarily sells general orthopedic trauma products in a limited geographic market. In exchange for all of the shares of IMC Co., the purchaser agreed to pay the Company a total purchase price of $0.5 million, of which $0.3 million was paid in 2010, $0.1 million was paid in 2011 and the remaining $0.1 million will be paid thereafter in two annual installments. A gain of $0.2 million was recorded on the sale of IMC Co. by the Company during the second quarter of 2010.

The amount of IMC Co. revenue and pretax income reported in discontinued operations for the years ended December 31, 2010 and 2009 is as follows (in thousands):

	Year Ended December 31,
	2010		2009
Revenue	$	3,109	$	11,538
Income from continuing operations before income taxes	$	120	$	332
Income tax provision		42		116
Income from discontinued operations, net of tax	$	78	$	216

Restructuring Activities

As a result of the acquisition of Scient'x, the Company elected to consolidate Scient'x's operations in the United States, close its United States facility and move its operations to the Company's corporate location in Carlsbad, California. This consolidation was completed by April 30, 2010. Restructuring expenses also consist of severance and other personnel costs related to the reorganization of the Company's management. For the years ended December 31, 2011 and 2010, the Company incurred total restructuring expenses of $1.1 million and $2.4 million, respectively. The balance in the restructuring liability as of December 31, 2011 and 2010 was $0.1 million and $0.2 million, respectively.