XML 73 R48.htm IDEA: XBRL DOCUMENT v3.4.0.3
Selected Quarterly Financial Data (Unaudited) (Tables)
12 Months Ended
Dec. 31, 2015
Schedule of Quarterly Financial Information [Table Text Block]

 

 

 

 

 

 

 

 

Operating

 

Net Income (Loss) From Continuing 
Operations

 

Net Income (loss)

 

(In thousands, except per share 
amounts)

 

Revenues

 

Gross
Profit

 

Income 
(Loss)

 

Amount

 

Per Basic
Share

 

Per Diluted
Share

 

Amount

 

Per Basic
Share

 

Per Diluted
Share

 

Year Ended December 31, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4th Quarter

 

$

279,977

 

$

174,430

 

$

64,475

 

$

32,785

 

$

0.27

 

$

0.27

 

$

32,785

 

$

0.27

 

$

0.27

 

3rd Quarter

 

256,801

 

163,012

 

90,767

 

47,967

 

0.40

 

0.39

 

47,967

 

0.40

 

0.39

 

2nd Quarter

 

220,920

 

128,407

 

66,102

 

32,508

 

0.28

 

0.27

 

32,508

 

0.28

 

0.27

 

1st Quarter

 

227,378

 

130,163

 

73,267

 

37,538

 

0.33

 

0.31

 

37,538

 

0.33

 

0.31

 

Year Ended December 31, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4th Quarter — (As restated)

 

$

202,856

 

$

105,333

 

$

48,670

 

$

17,979

 

$

0.17

 

$

0.16

 

$

17,979

 

$

0.17

 

$

0.16

 

3rd Quarter — (As restated)

 

127,698

 

45,500

 

(12,030

)

(12,333

)

(0.12

)

(0.12

)

(12,333

)

(0.12

)

(0.12

)

2nd Quarter — (As restated)

 

133,872

 

60,871

 

736

 

(752

)

(0.01

)

(0.01

)

(1,256

)

(0.01

)

(0.01

)

1st Quarter — (As restated)

 

90,622

 

49,656

 

23,440

 

9,494

 

0.10

 

0.08

 

9,494

 

0.10

 

0.08

 

 

Restatement to Prior Year Income [Table Text Block]

 

The effect of the restatement on the previously filed condensed consolidated balance sheet as of December 31, 2014 is as follows, in thousands:

 

 

 

December 31, 2014

 

 

 

As Previously 
Reported

 

Restatement 
Adjustment

 

 

 

As Restated

 

ASSETS

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

70,680

 

$

(1

)

(i)

 

$

70,679

 

Trade accounts receivable, net

 

220,716

 

(33,171

)

(a), (b), (c)

 

187,545

 

Inventories, net

 

131,310

 

3,887

 

(d), (f)

 

135,197

 

Deferred taxes, current

 

33,480

 

4,931

 

(e), (i)

 

38,411

 

Available for sale security, current

 

7,268

 

 

 

 

7,268

 

Prepaid expenses and other current assets

 

30,875

 

6,186

 

(c), (d), (e)

 

37,061

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

494,329

 

(18,168

)

 

 

476,161

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

143,788

 

408

 

(c), (d)

 

144,196

 

OTHER LONG-TERM ASSETS

 

 

 

 

 

 

 

 

 

Goodwill

 

278,774

 

6,509

 

(e)

 

285,283

 

Product licensing rights, net

 

704,218

 

573

 

(e)

 

704,791

 

Other intangibles, net

 

259,141

 

(3,529

)

(e)

 

255,612

 

Deferred financing costs, net

 

21,560

 

2,144

 

(c), (d), (h)

 

23,704

 

Deferred taxes, non-current

 

3,020

 

(936

)

(i)

 

2,084

 

Long-term investments

 

208

 

3

 

(i)

 

211

 

Other non-current assets

 

1,863

 

 

 

 

1,863

 

 

 

 

 

 

 

 

 

 

 

TOTAL OTHER LONG-TERM ASSETS

 

1,268,784

 

4,764

 

 

 

1,273,548

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

1,906,901

 

$

(12,996

)

 

 

$

1,893,905

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

Trade accounts payable

 

$

44,116

 

$

3,201

 

(c), (d)

 

$

47,317

 

Purchase consideration payable, current

 

7,481

 

3,489

 

(e)

 

10,970

 

Income taxes payable

 

1

 

(1)

 

(i)

 

 

Accrued royalties

 

13,041

 

163

 

(d)

 

13,204

 

Accrued compensation

 

13,467

 

 

 

 

13,467

 

Current maturities of long-term debt

 

10,450

 

 

 

 

10,450

 

Accrued administrative fees

 

27,774

 

13,096

 

(b), (d)

 

40,870

 

Accrued expenses and other liabilities

 

17,835

 

(3,259

)

(c), (d), (e)

 

14,576

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

134,165

 

16,689

 

 

 

150,854

 

LONG-TERM LIABILITIES

 

 

 

 

 

 

 

 

 

Long-term debt

 

1,114,481

 

 

 

 

1,114,481

 

Deferred tax liability, non-current

 

268,968

 

460

 

(e)

 

269,428

 

Lease incentive obligations and other long-term liabilities

 

2,536

 

300

 

(c), (d)

 

2,836

 

 

 

 

 

 

 

 

 

 

 

TOTAL LONG-TERM LIABILITIES

 

1,385,985

 

759

 

 

 

1,386,745

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

1,520,150

 

17,448

 

 

 

1,537,599

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Common stock, no par value — 150,000,000 shares authorized; 111,734,901 shares issued and outstanding at December 31, 2014

 

351,235

 

(8,983

)

(i)

 

342,252

 

Warrants to acquire common stock

 

 

 

 

 

 

Retained earnings

 

50,711

 

(21,461

)

(a), (b), (c), (d), (e), (f)

 

29,250

 

Accumulated other comprehensive loss

 

(15,195

)

 

 

 

(15,195

)

 

 

 

 

 

 

 

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

 

386,751

 

(30,444

)

 

 

356,307

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

1,906,901

 

$

(12,996

)

 

 

$

1,893,905

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The effect of the restatement on the previously filed consolidated income statement for the year ended December 31, 2014 is as follows, in thousands except per share amounts:

 

 

 

Year ended December 31, 2014

 

 

 

As Previously 
Reported

 

Restatement 
Adjustment

 

 

 

As Restated

 

REVENUES

 

$

593,078

 

$

(38,030

)

(a), (b), (c)

 

$

555,048

 

Cost of sales (exclusive of amortization of intangibles, included within operating expenses below)

 

295,488

 

(1,800

)

(c), (d), (f)

 

293,688

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

297,590

 

(36,230

)

 

 

261,360

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

95,463

 

(2,508

)

(c), (d)

 

92,955

 

Acquisition-related costs

 

32,147

 

693

 

(c), (d)

 

32,840

 

Research and development expenses

 

29,199

 

2,057

 

(c), (d)

 

31,256

 

Amortization of intangibles

 

44,066

 

(573

)

(e)

 

43,493

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

200,875

 

(331

)

 

 

200,544

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

96,715

 

(35,899

)

 

 

60,816

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

(12,129

)

2,144

 

(c), (d), (h)

 

(9,985

)

Interest expense, net

 

(35,657

)

 

 

 

(35,657

)

Gain from product divestiture

 

9,807

 

(510

)

(e)

 

9,297

 

Other non-operating income, net

 

400

 

471

 

(c), (d)

 

871

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

59,136

 

(33,794

)

 

 

25,342

 

Income tax provision

 

23,288

 

(12,334

)

(i)

 

10,954

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS

 

$

35,848

 

$

(21,460

)

 

 

$

14,388

 

Loss from discontinued operations, net of tax

 

$

(503

)

$

(1

)

(i)

 

$

(504

)

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME

 

$

35,345

 

$

(21,461

)

 

 

$

13,884

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

Income from continuing operations, basic

 

$

0.35

 

$

(0.21

)

 

 

$

0.14

 

Loss from discontinued operations, basic

 

$

(0.01

)

$

 

 

 

$

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME, BASIC

 

$

0.34

 

$

(0.21

)

 

 

$

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, diluted

 

$

0.34

 

$

(0.21

)

 

 

$

0.13

 

Loss from discontinued operations, diluted

 

$

(0.01

)

$

0.01

 

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME, DILUTED

 

$

0.33

 

$

(0.20

)

 

 

$

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN COMPUTING CONSOLIDATED NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

BASIC

 

103,480

 

 

 

 

103,480

 

 

 

 

 

 

 

 

 

 

 

DILUTED

 

123,110

 

(13,522)

 

 

 

109,588

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME:

 

 

 

 

 

 

 

 

 

Consolidated net income

 

$

35,345

 

$

(21,461

)

 

 

$

13,884

 

Unrealized holding loss on available-for-sale securities, net of tax of $663

 

(1,124

)

 

 

 

(1,124

)

Foreign currency translation loss, net of tax of $877 for the year ended December 31, 2014

 

(1,704

)

 

 

 

(1,704

)

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

$

32,517

 

$

(21,461

)

 

 

$

11,056

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The effect of the restatement on the previously filed consolidated statement of cash flows for the year ended December 31, 2014 is as follows, in thousands:

 

 

 

Year ended December 31, 2014

 

 

 

As Previously 
Reported

 

Restatement 
Adjustment

 

 

 

As Restated

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

 

Consolidated net income

 

$

35,345

 

$

(21,461

)

(a), (b), (c), (d), (e), (f)

 

$

13,884

 

Loss from discontinued operations, net of tax

 

503

 

1

 

(i)

 

504

 

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

58,538

 

(707

)

(c), (d)

 

57,831

 

Amortization of deferred financing fees

 

12,129

 

(2,145

)

(c), (d), (h)

 

9,984

 

Amortization of favorable (unfavorable) contracts

 

72

 

(1

)

(i)

 

71

 

Amortization of inventory step-up

 

20,798

 

 

 

 

20,798

 

Non-cash stock compensation expense

 

7,542

 

210

 

(i)

 

7,752

 

Non-cash interest expense

 

4,871

 

 

 

 

4,871

 

Non-cash gain on bargain purchase

 

 

 

 

 

 

Gain from product divestiture

 

(9,807

)

478

 

(e)

 

(9,329

)

Deferred income taxes, net

 

25,293

 

(42,804

)

(e)

 

(17,511

)

Excess tax benefit from stock compensation

 

(38,710

)

9,193

 

(e)

 

(29,517

)

Non-cash settlement of product warranty liability

 

 

 

 

 

 

Equity in earnings of unconsolidated joint venture

 

 

 

 

 

 

Loss on extinguishment of debt

 

990

 

 

 

 

990

 

Gain on sale of available for sale security

 

(7

)

 

 

 

(7

)

Changes in operating assets and liabilities, net of business acquisitions:

 

 

 

 

 

 

 

 

 

Trade accounts receivable, net

 

(95,470

)

22,674

 

(a), (b), (c)

 

(72,796

)

Inventories, net

 

(15,262

)

(4,123

)

(c), (d), (f)

 

(19,385

)

Prepaid expenses and other current assets

 

(13,180

)

43,552

 

(c), (d)

 

30,372

 

Trade accounts payable

 

11,024

 

2,939

 

(c), (d)

 

13,963

 

Accrued expenses and other liabilities

 

26,249

 

1,718

 

(c), (d)

 

27,967

 

 

 

 

 

 

 

 

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

30,918

 

9,254

 

 

 

40,442

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

 

Payments for acquisitions and equity investments, net of cash acquired

 

(987,802

)

374

 

(e)

 

(987,428

)

Proceeds from disposal of assets

 

59,361

 

___

 

(e)

 

59,361

 

Payments for other intangible assets

 

(8,532

)

(376

)

(c), (d)

 

(8,908

)

Purchases of property, plant and equipment

 

(29,568

)

(331

)

(c), (d)

 

(29,899

)

Distributions from unconsolidated joint venture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

 

(966,541

)

(333)

 

 

 

(966,874

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

 

Proceeds from issuances of debt

 

1,045,000

 

 

 

 

1,045,000

 

Proceeds under stock option and stock purchase plans

 

8,842

 

 

 

 

8,842

 

Payments of contingent acquisition liabilities

 

(15,000

)

 

 

 

(15,000

)

Debt financing costs

 

(28,366

)

1

 

(i)

 

(28,365

)

Proceeds from warrant exercises

 

8,171

 

 

 

 

8,171

 

Excess tax benefits from stock compensation

 

38,710

 

(9,193

)

(i)

 

29,517

 

Debt repayment

 

(85,049

)

 

 

 

(85,049

)

 

 

 

 

 

 

 

 

 

 

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

972,308

 

(9,192

)

 

 

963,116

 

 

 

 

 

 

 

 

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

 

(183

)

 

 

 

(183

)

 

 

 

 

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

36,502

 

(1

)

 

 

36,501

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

 

34,178

 

 

 

 

34,178

 

 

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT END OF YEAR

 

$

70,680

 

$

(1

)

 

 

$

70,679

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

 

The following table summarizes the basis used to measure the fair values of the Company’s financial instruments (amounts in thousands):

 

 

 

 

 

Fair Value Measurements at Reporting Date, 
Using:

 

Description

 

December 31,
2015

 

Quoted 
Prices
in Active
Markets for
Identical 
Items
(Level 1)

 

Significant
Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Cash and cash equivalents

 

$

346,266 

 

$

346,266 

 

$

 

$

 

Available-for-sale securities

 

5,941 

 

4,843 

 

 

1,098 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

352,207 

 

$

351,109 

 

$

 

$

1,098 

 

 

 

 

 

 

 

 

 

 

 

Purchase consideration payable

 

$

4,967 

 

$

 

$

 

$

4,967 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

4,967 

 

$

 

$

 

$

4,967 

 

 

 

 

 

Description

 

December 31,
2014

 

Quoted 
Prices
in Active
Markets for
Identical 
Items
(Level 1)

 

Significant
Other
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Cash and cash equivalents (as Restated)

 

$

70,679 

 

$

70,679 

 

$

 

$

 

Available-for-sale securities (as Restated)

 

8,391 

 

 

 

8,391 

 

 

 

 

 

 

 

 

 

 

 

Total assets (as Restated)

 

$

79,070 

 

$

70,679 

 

$

 

$

8,391 

 

 

 

 

 

 

 

 

 

 

 

Purchase consideration payable (as Restated)

 

$

11,101 

 

$

 

$

 

$

11,101 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities (as Restated)

 

$

11,101 

 

$

 

$

 

$

11,101 

 

 

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

 

 

 

2015

 

2014 (as Restated)

 

2013

 

Expected volatility

 

42%

 

 

47%

 

40%

 

 

71%

 

49%

 

 

68%

 

Expected life (in years)

 

 

 

4.8

 

 

 

 

 

4.1

 

 

 

 

 

4.0

 

 

 

Risk-free interest rate

 

1.5%

 

 

1.6%

 

0.9%

 

 

2.2%

 

0.7%

 

 

1.4%

 

Dividend yield

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value per stock option

 

 

 

$14.59

 

 

 

 

 

$12.89

 

 

 

 

 

$6.95

 

 

 

 

Schedule of Share-based Compensation, Activity [Table Text Block]

 

 

 

Number of
Shares
(in
thousands)

 

     Weighted
Average
Exercise
Price

 

Weighted
Average
Remaining
Contractual
Term
(Years)

 

Aggregate
Intrinsic
Value
(in
thousands)
(1)

 

Outstanding at December 31, 2012

 

9,727

 

$

4.22

 

 

 

 

 

Granted

 

321

 

15.76

 

 

 

 

 

Exercised

 

(630

)

4.18

 

 

 

 

 

Forfeited or expired

 

(190

)

13.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2013

 

9,228

 

$

4.45

 

 

 

 

 

Granted

 

1,475

 

28.59

 

 

 

 

 

Exercised

 

(4,226

)

1.91

 

 

 

 

 

Forfeited or expired

 

(91

)

22.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2014

 

6,386

 

$

11.44

 

 

 

 

 

Granted

 

1,016

 

37.60

 

 

 

 

 

Exercised

 

(2,519

)

4.09

 

 

 

 

 

Forfeited or expired

 

(121

)

34.78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at December 31, 2015

 

4,762

 

$

20.33

 

3.41

 

$

80,868

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at December 31, 2015

 

2,510

 

$

11.28

 

1.43

 

$

65,341

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

May include value from potentially anti-dilutive options whose exercise price exceeds the closing stock price.

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

 

 

 

Number of
Units
(in
thousands)

 

Weighted
Average
Grant Date
Fair Value

 

Nonvested at December 31, 2012

 

18

 

$

14.63

 

Granted

 

32

 

15.36

 

Vested

 

(34

)

14.98

 

Canceled

 

 

 

 

 

 

 

 

 

Nonvested at December 31, 2013

 

16

 

$

15.36

 

Granted

 

337

 

35.31

 

Vested

 

(16

)

15.36

 

Canceled

 

 

 

 

 

 

 

 

 

Nonvested at December 31, 2014

 

337

 

$

35.31

 

Granted

 

 

 

Vested (1)

 

(84

)

35.31

 

Canceled

 

 

 

 

 

 

 

 

 

Nonvested at December 31, 2015

 

253

 

$

35.31

 

 

 

(1)

As a result of the delay in filing the 2015 financials, approximately 66,000 units of restricted stock vested but have not yet been issued to grantees as of and for the year ended December 31, 2015.

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

 

Net trade accounts receivable consists of the following (in thousands):

 

 

 

December 31,

 

 

 

2015

 

2014
(as Restated)

 

Gross accounts receivable

 

$

466,570

 

$

446,925

 

Less reserves for:

 

 

 

 

 

Chargebacks and rebates

 

(254,440

)

(198,112

)

Product returns

 

(48,333

)

(44,646

)

Discounts and allowances

 

(10,079

)

(15,554

)

Advertising and promotions

 

(1,518

)

(758

)

Doubtful accounts

 

(1,579

)

(309

)

 

 

 

 

 

 

Trade accounts receivable, net

 

$

150,621

 

$

187,545

 

 

 

 

 

 

 

 

 

 

Schedule Of Adjustments To Gross Sales [Table Text Block]

 

For the years ended December 31, 2015, 2014 and 2013, the Company recorded the following adjustments to gross sales (in thousands):

 

 

 

Year ended December 31,

 

 

 

2015

 

2014
(as Restated)

 

2013

 

Gross sales

 

$

2,511,693

 

$

1,433,603

 

$

528,574

 

Less adjustments for:

 

 

 

 

 

 

 

Chargebacks and rebates

 

(1,361,030

)

(775,964

)

(183,403

)

Product returns

 

(34,272

)

(20,993

)

(5,001

)

Discounts and allowances

 

(50,385

)

(30,782

)

(8,464

)

Administrative fees

 

(71,727

)

(44,558

)

(9,471

)

Advertising, promotions and other

 

(9,203

)

(6,258

)

(4,524

)

 

 

 

 

 

 

 

 

Revenues, net

 

$

985,076

 

$

555,048

 

$

317,711

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Inventory, Current [Table Text Block]

 

The components of inventories, net of allowances, are as follows (in thousands):

 

 

 

December 31,

 

 

 

2015

 

2014
(as Restated)

 

Finished goods

 

$

76,512 

 

$

69,499 

 

Work in process

 

8,905 

 

4,075 

 

Raw materials and supplies

 

99,899 

 

61,623 

 

 

 

 

 

 

 

 

 

$

185,316 

 

$

135,197 

 

 

 

 

 

 

 

 

 

 

Property, Plant and Equipment [Table Text Block]

 

Property, plant and equipment consist of the following (in thousands):

 

 

 

December 31,

 

 

 

2015

 

2014
(as Restated)

 

Land

 

$

17,409

 

$

9,323

 

Buildings and leasehold improvements

 

85,767

 

63,846

 

Furniture and equipment

 

142,885

 

112,552

 

 

 

 

 

 

 

 

 

246,061

 

185,721

 

Accumulated depreciation

 

(87,086

)

(67,937

)

 

 

 

 

 

 

 

 

158,975

 

117,784

 

Construction in progress

 

20,639

 

26,412

 

 

 

 

 

 

 

 

 

$

179,614

 

$

144,196

 

 

 

 

 

 

 

 

 

 

Schedule of Goodwill [Table Text Block]

 

Changes in goodwill during the two years ended December 31, 2015 were as follows (in thousands):

 

 

 

Goodwill

 

December 31, 2013

 

$

29,831

 

Acquisitions and other adjustments

 

271,249

 

Impairments

 

 

Dispositions

 

(15,284

)

Foreign currency translation

 

(513

)

 

 

 

 

December 31, 2014

 

$

285,283

 

Acquisitions and other adjustments

 

 

Impairments

 

 

Dispositions

 

 

Foreign currency translation

 

(573

)

 

 

 

 

December 31, 2015

 

$

284,710

 

 

 

 

 

 

 

Schedule of Finite-Lived Intangible Assets [Table Text Block]

 

The following table sets forth the major categories of the Company’s intangible assets and the weighted-average remaining amortization period as of December 31, 2015 for those assets that are not already fully amortized (dollar amounts in thousands):

 

 

 

Gross
Carrying
Amount

 

Accumulated
Amortization

 

Reclassifications
(1)

 

Impairment (2)

 

Net
Carrying
Amount

 

Weighted Average
Remaining Amortization
Period (years)

 

Product licensing rights

 

$

782,269

 

$

(132,642

)

$

38,000

 

$

(34,000

)

$

653,627

 

13.2

 

IPR&D

 

227,559

 

 

(38,000

)

(2,627

)

186,932

 

N/A – Indefinite lived

 

Trademarks

 

16,000

 

(2,982

)

 

 

13,018

 

21.8

 

Customer relationships

 

6,493

 

(3,716

)

 

 

2,777

 

11.7

 

Other intangibles

 

11,235

 

(2,600

)

 

 

8,635

 

7.9

 

Non-compete agreements

 

2,167

 

(2,167

)

 

 

 

0.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,045,723

 

$

(144,107

)

$

 

$

(36,627

)

$

864,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

This amount reclassifies the acquisition date value of one previously IPR&D asset due to launch in the year ended December 31, 2015.

 

(2)

Impairment of product licensing rights is stated at gross carrying cost of $34.0 million less accumulated amortization of $3.6 million as of the impairment date. Accordingly, the net impairment expense recognized in product licensing rights was $30.4 million as of and for the year ended December 31, 2015.

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

 

A reconciliation of the earnings per share data from a basic to a fully diluted basis is detailed below (amounts in thousands, except per share data):

 

 

 

2015

 

(3) 2014
(as Restated)

 

2013

 

Income from continuing operations used for basic earnings per share

 

$

150,798

 

$

14,388

 

$

52,362

 

Convertible debt income adjustments, net of tax

 

3,222

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations adjusted for convertible debt as used for diluted earnings per share

 

$

154,020

 

$

14,388

 

$

52,362

 

Income from continuing operations per share:

 

 

 

 

 

 

 

Basic

 

$

1.29

 

$

0.14

 

$

0.54

 

Diluted (1)

 

$

1.22

 

$

0.13

 

$

0.46

 

Loss from discontinued operations, net of tax

 

$

 

$

(504

)

$

 

Loss from discontinued operations, net of tax per share:

 

 

 

 

 

 

 

Basic

 

$

 

$

(0.01

)

$

 

Diluted

 

$

 

$

 

$

 

Shares used in computing income (loss) per share:

 

 

 

 

 

 

 

Weighted average basic shares outstanding

 

116,980

 

103,480

 

96,181

 

Dilutive securities:

 

 

 

 

 

 

 

Stock options and unvested RSUs

 

1,667

 

4,234

 

4,516

 

Stock warrants

 

 

1,874

 

6,702

 

Shares issuable on conversion of the Notes (2)

 

7,115

 

 

6,499

 

 

 

 

 

 

 

 

 

Total dilutive securities

 

8,782

 

6,108

 

17,717

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

125,762

 

109,588

 

113,898

 

 

 

 

 

 

 

 

 

 

 

(1)

Due to a change in the expectation that management may settle all future note conversions solely through shares in the year and quarter ended December 31, 2014, the diluted income from continuing operations per share calculation includes the dilutive effect of convertible debt and is offset by the exclusion of interest expense and deferred financing fees related to the convertible debt of $3.2 million, after-tax for the year ended December 31, 2015.

(2)

Shares issuable on conversion of the Notes for the year ended December 31, 2015 have increased in comparison to the fiscal year ended December 31, 2013 due to stock appreciation which underlies the shares issuable on conversion of the Notes and the Company’s change in practice on October 1, 2014 to more likely than not settle future Note conversions solely through shares as we are now utilizing the if-converted method for convertible debt conversion obligations. This practice was continued in the year ended December 31, 2015.

(3)

In the year ended December 31, 2014 the computation of diluted net earnings per share does not include the effect of convertible debt under the if-converted method, consisting of 13.5 million shares and $5.8 million of additional income, as the effect would have been antidilutive.

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

 

 

 

2015

 

2014
(as Restated)

 

2013

 

 

 

Gross
Sales

 

Net
Revenue

 

Gross
Accounts
Receivable

 

Gross
Sales

 

Net
Revenue

 

Gross
Accounts
Receivable

 

Gross
Sales

 

Net
Revenue

 

Gross
Accounts
Receivable

 

Amerisource

 

28.0 

%

23.2 

%

28.8 

%

38.3 

%

29.2 

%

45.4 

%

18.9 

%

14.0 

%

25.5 

%

Cardinal

 

19.7 

%

19.5 

%

26.1 

%

15.9 

%

13.6 

%

16.9 

%

22.8 

%

15.6 

%

26.2 

%

McKesson

 

30.1 

%

27.3 

%

27.9 

%

22.7 

%

19.1 

%

22.7 

%

16.7 

%

11.3 

%

11.6 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

77.8 

%

70.0 

%

82.8 

%

76.9 

%

61.9 

%

85.0 

%

58.4 

%

40.9 

%

63.3 

%

 

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

 

The income tax provision (benefit) from continuing operations consisted of the following (in thousands):

 

 

 

Current

 

Deferred

 

Total

 

Year ended December 31, 2015

 

 

 

 

 

 

 

Federal

 

$

116,375

 

$

(41,477

)

$

74,898

 

State

 

11,113

 

(2,620

)

8,493

 

Foreign

 

 

(2,033

)

(2,033

)

 

 

 

 

 

 

 

 

 

 

$

127,488

 

$

(46,130

)

$

81,358

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2014 (as Restated)

 

 

 

 

 

 

 

Federal

 

$

26,114

 

$

(14,222

)

$

11,892

 

State

 

2,347

 

(2,090

)

257

 

Foreign

 

4

 

(1,199

)

(1,195

)

 

 

 

 

 

 

 

 

 

 

$

28,465

 

$

(17,511

)

$

10,954

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 2013

 

 

 

 

 

 

 

Federal

 

$

27,985

 

$

(3,050

)

$

24,935

 

State

 

4,145

 

2,051

 

6,196

 

Foreign

 

 

(598

)

(598

)

 

 

 

 

 

 

 

 

 

 

$

32,130

 

$

(1,597

)

$

30,533

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Segment Reporting Information, by Segment [Table Text Block]

 

Selected financial information by reporting segment is presented below (in thousands)

 

 

 

Years ended December 31,

 

 

 

2015

 

2014
(as Restated)

 

2013

 

REVENUES

 

 

 

 

 

 

 

Prescription Pharmaceuticals

 

$

924,472 

 

$

504,688 

 

$

279,911 

 

Consumer Health

 

60,604 

 

50,360 

 

37,800 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

985,076 

 

$

555,048 

 

$

317,711 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

 

 

 

 

 

Prescription Pharmaceuticals

 

$

566,298 

 

$

233,833 

 

$

151,182 

 

Consumer Health

 

29,714 

 

27,527 

 

20,722 

 

 

 

 

 

 

 

 

 

Total gross profit

 

$

596,012 

 

$

261,360 

 

$

171,904 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interim Financial Information [Member]  
Restatement to Prior Year Income [Table Text Block]

 

The effect of the restatement on the previously filed consolidated income statement for the quarter ended December 31, 2014 is as follows, in thousands except per share amounts:

 

 

 

Quarter ended December 31, 2014

 

 

 

As Previously 
Reported

 

Restatement 
Adjustment

 

 

 

As Restated

 

REVENUES

 

$

227,828

 

$

(24,972

)

(a), (b), (c)

 

$

202,856

 

Cost of sales (exclusive of amortization of intangibles, included within operating expenses below)

 

99,446

 

(1,923

)

(c), (d), (f)

 

97,523

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

128,382

 

(23,049

)

 

 

105,333

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

29,122

 

(720

)

(c), (d)

 

28,402

 

Acquisition-related costs

 

2,858

 

429

 

(c), (d)

 

3,287

 

Research and development expenses

 

7,810

 

681

 

(c), (d)

 

8,491

 

Amortization of intangibles

 

16,685

 

(202

)

(e)

 

16,483

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

56,475

 

188

 

 

 

56,663

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

71,907

 

(23,237

)

 

 

48,670

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

(1,030

)

(86

)

(h)

 

(1,116

)

Interest expense, net

 

(13,773

)

(4

)

(c), (d)

 

(13,777

)

Gain (loss) from product divestiture

 

 

(40

)

 

 

(40

)

Other non-operating income (loss), net

 

(580

)

88

 

(c), (d)

 

(492

)

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

56,524

 

(23,279

)

 

 

33,245

 

Income tax provision

 

22,292

 

(7,026

)

(i)

 

15,266

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS

 

$

34,232

 

$

(16,253

)

 

 

$

17,979

 

Loss from discontinued operations, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME

 

$

34,232

 

$

(16,253

)

 

 

$

17,979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

Income from continuing operations, basic

 

$

0.32

 

$

(0.15

)

 

 

$

0.17

 

Loss from discontinued operations, basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME, BASIC

 

$

0.32

 

$

(0.15

)

 

 

$

0.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, diluted

 

$

0.29

 

$

(0.13

)

 

 

$

0.16

 

Loss from discontinued operations, diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME, DILUTED

 

$

0.29

 

$

(0.13

)

 

 

$

0.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN COMPUTING CONSOLIDATED NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

BASIC

 

108,515

 

 

 

 

108,515

 

 

 

 

 

 

 

 

 

 

 

DILUTED

 

124,491

 

 

 

 

124,491

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME:

 

 

 

 

 

 

 

 

 

Consolidated net income

 

$

34,232

 

$

(16,253

)

 

 

$

17,979

 

Unrealized holding loss on available-for-sale securities, net of tax of $1,294

 

(2,194

)

1

 

(i)

 

(2,193

)

Foreign currency translation loss, net of tax of $922 for the quarter ended December 31, 2014

 

(1,790

)

 

 

 

(1,790

)

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

$

30,248

 

$

(16,252

)

 

 

$

13,996

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The effect of the restatement on the previously filed condensed consolidated balance sheet as of the quarter ended September 30, 2014 is as follows, in thousands:

 

 

 

September 30, 2014

 

 

 

As Previously
Restated

 

Restatement 
Adjustment

 

 

 

As Restated

 

ASSETS

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

131,466

 

$

 

 

 

$

131,466

 

Trade accounts receivable, net

 

145,212

 

(17,240

)

(a), (b), (c)

 

127,972

 

Inventories, net

 

132,830

 

(714

)

(c), (d), (f)

 

132,116

 

Deferred taxes, current

 

40,708

 

23,268

 

(e)

 

63,976

 

Available for sale security, current

 

10,804

 

 

 

 

10,804

 

Prepaid expenses and other current assets

 

33,075

 

(5,743

)

(c), (d)

 

27,332

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

494,095

 

(429

)

 

 

493,666

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

139,372

 

2

 

(c)

 

139,374

 

OTHER LONG-TERM ASSETS

 

 

 

 

 

 

 

 

 

Goodwill

 

285,080

 

801

 

(e)

 

285,881

 

Product licensing rights, net

 

670,757

 

370

 

(e)

 

671,127

 

Other intangibles, net

 

254,685

 

(3,529

)

(e)

 

251,156

 

Deferred financing costs, net

 

22,942

 

2,230

 

(c), (d), (h)

 

25,172

 

Deferred taxes, non-current

 

1,746

 

 

 

 

1,746

 

Long-term investments

 

208

 

3

 

(i)

 

211

 

Other non-current assets

 

2,377

 

 

 

 

2,377

 

 

 

 

 

 

 

 

 

 

 

TOTAL OTHER LONG-TERM ASSETS

 

1,237,795

 

(125

)

 

 

1,237,670

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

1,871,262

 

$

(552

)

 

 

$

1,870,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

Trade accounts payable

 

$

36,714

 

$

1,491

 

(c), (d)

 

$

38,205

 

Purchase consideration payable, current

 

20,728

 

3,488

 

(c), (d), (e)

 

24,216

 

Income taxes payable

 

 

 

 

 

 

Accrued royalties

 

14,533

 

 

 

 

14,533

 

Accrued compensation

 

12,625

 

352

 

(c), (d)

 

12,977

 

Current maturities of long-term debt

 

10,494

 

 

 

 

10,494

 

Accrued administrative fees

 

3,105

 

5,793

 

(c), (d)

 

8,898

 

Accrued expenses and other liabilities

 

35,616

 

(3,659

)

(c), (d)

 

31,957

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

133,815

 

7,465

 

 

 

141,280

 

LONG-TERM LIABILITIES

 

 

 

 

 

 

 

 

 

Long-term debt

 

1,146,585

 

 

 

 

1,146,585

 

Deferred tax liability, non-current

 

274,165

 

(3,390

)

(e)

 

270,775

 

Lease incentive obligations and other long-term liabilities

 

1,946

 

733

 

(c), (d)

 

2,679

 

 

 

 

 

 

 

 

 

 

 

TOTAL LONG-TERM LIABILITIES

 

1,422,696

 

(2,657

)

 

 

1,420,039

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

1,556,511

 

4,808

 

 

 

1,561,319

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Common stock, no par value — 150,000,000 shares authorized; 107,330,516 shares issued and outstanding at September 30, 2014

 

309,482

 

(151

)

(i)

 

309,331

 

Warrants to acquire common stock

 

 

 

 

 

 

Retained earnings

 

16,480

 

(5,209

)

(a), (b), (c), (d), (e), (f)

 

11,271

 

Accumulated other comprehensive loss

 

(11,211

)

 

 

 

(11,211

)

 

 

 

 

 

 

 

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

 

314,751

 

(5,360

)

 

 

309,391

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

1,871,262

 

$

(552

)

 

 

$

1,870,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The effect of the restatement on the previously filed consolidated income statement for the quarter ended September 30, 2014 is as follows, in thousands except per share amounts:

 

 

 

Quarter ended September 30, 2014

 

 

 

As Previously
Reported

 

Restatement Adjustment

 

 

 

As Restated

 

REVENUES

 

$

132,732

 

$

(5,034

)

(a), (b), (c)

 

$

127,698

 

Cost of sales (exclusive of amortization of intangibles, included within operating expenses below)

 

80,998

 

1,200

 

(c), (d), (f)

 

82,198

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

51,734

 

(6,234

)

 

 

45,500

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

27,779

 

(980

)

(c), (d)

 

26,799

 

Acquisition-related costs

 

8,062

 

97

 

(c), (d)

 

8,159

 

Research and development expenses

 

7,918

 

840

 

(c), (d)

 

8,758

 

Amortization of intangibles

 

14,017

 

(203

)

(e)

 

13,814

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

57,776

 

(246

)

 

 

57,530

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

(6,042

)

(5,988

)

 

 

(12,030

)

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

(2,509

)

237

 

(c), (d), (h)

 

(2,272

)

Interest expense, net

 

(11,806

)

2

 

(c), (d)

 

(11,804

)

Gain from product divestiture

 

839

 

8

 

(e)

 

847

 

Other non-operating income, net

 

979

 

33

 

(c), (d)

 

1,012

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

(18,539

)

(5,708

)

 

 

(24,247

)

Income tax provision (benefit)

 

(6,889

)

(5,025

)

(i)

 

(11,914

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

$

(11,650

)

$

(683

)

 

 

$

(12,333

)

Loss from discontinued operations, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS)

 

$

(11,650

)

$

(683

)

 

 

$

(12,333

)

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS) PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, basic

 

$

(0.11

)

$

(0.01

)

 

 

$

(0.12

)

Loss from discontinued operations, basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS), BASIC

 

$

(0.11

)

$

(0.01

)

 

 

$

(0.12

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, diluted

 

$

(0.11

)

$

(0.01

)

 

 

$

(0.12

)

Loss from discontinued operations, diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS), DILUTED

 

$

(0.11

)

$

(0.01

)

 

 

$

(0.12

)

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN COMPUTING CONSOLIDATED NET INCOME (LOSS) PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

BASIC

 

105,438

 

 

 

 

105,438

 

 

 

 

 

 

 

 

 

 

 

DILUTED

 

105,438

 

 

 

 

105,438

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS):

 

 

 

 

 

 

 

 

 

Consolidated net income (loss)

 

$

(11,650

)

$

(683

)

 

 

$

(12,333

)

Unrealized holding loss on available-for-sale securities, net of tax of ($631) for the quarter ended September 30, 2014

 

1,070

 

 

 

 

1,070

 

Foreign currency translation loss, net of tax of $755 for the quarter ended September 30, 2014

 

(1,466

)

 

 

 

(1,466

)

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

 

$

(12,046

)

$

(683

)

 

 

$

(12,729

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The effect of the restatement on the previously filed consolidated income statement for the year to date period ended September 30, 2014 is as follows, in thousands except per share amounts:

 

 

 

Year to date period ended September 30, 2014

 

 

 

As Previously
Restated

 

Restatement
Adjustment

 

 

 

As Restated

 

REVENUES

 

$

365,250

 

$

(13,058

)

(a), (b), (c)

 

$

352,192

 

Cost of sales (exclusive of amortization of intangibles, included within operating expenses below)

 

196,042

 

123

 

(c), (d), (f)

 

196,165

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

169,208

 

(13,181

)

 

 

156,027

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

66,341

 

(1,788

)

(c), (d)

 

64,553

 

Acquisition-related costs

 

29,289

 

264

 

(c), (d)

 

29,553

 

Research and development expenses

 

21,389

 

1,376

 

(c, d)

 

22,765

 

Amortization of intangibles

 

27,381

 

(371

)

(e)

 

27,010

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

144,400

 

(519

)

 

 

143,881

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

24,808

 

(12,662

)

 

 

12,146

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

(11,099

)

2,230

 

(c), (d), (h)

 

(8,869

)

Interest expense, net

 

(21,884

)

4

 

(c), (d)

 

(21,880

)

Gain from product divestiture

 

9,807

 

(470

)

(e)

 

9,337

 

Other non-operating income, net

 

980

 

383

 

(c), (d)

 

1,363

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

2,612

 

(10,515

)

 

 

(7,903

)

Income tax provision (benefit)

 

996

 

(5,308

)

(i)

 

(4,312

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

$

1,616

 

$

(5,207

)

 

 

$

(3,591

)

Loss from discontinued operations, net of tax

 

(503

)

(1

)

(i)

 

(504

)

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS)

 

$

1,113

 

$

(5,208

)

 

 

$

(4,095

)

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS) PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, basic

 

$

0.02

 

$

(0.06

)

 

 

$

(0.04

)

Loss from discontinued operations, basic

 

(0.01

)

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS), BASIC

 

$

0.01

 

$

(0.05

)

 

 

$

(0.04

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, diluted

 

$

0.01

 

$

(0.05

)

 

 

$

(0.04

)

Loss from discontinued operations, diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS), DILUTED

 

$

0.01

 

$

(0.05

)

 

 

$

(0.04

)

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN COMPUTING CONSOLIDATED NET INCOME (LOSS) PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

BASIC

 

101,784

 

 

 

 

101,784

 

 

 

 

 

 

 

 

 

 

 

DILUTED

 

118,535

 

(16,751

)

 

 

101,784

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS):

 

 

 

 

 

 

 

 

 

Consolidated net income (loss)

 

$

1,113

 

$

(5,208

)

 

 

$

(4,095

)

Unrealized holding loss on available-for-sale securities, net of tax of ($631) for the year to date period ended September 30, 2014

 

1,070

 

 

 

 

1,070

 

Foreign currency translation loss, net of tax of ($44) for the year to date period ended September 30, 2014

 

86

 

 

 

 

86

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

 

$

2,269

 

$

(5,208

)

 

 

$

(2,939

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The effect of the restatement on the previously filed consolidated statement of cash flows for the year to date period ended September 30, 2014 is as follows, in thousands:

 

 

 

Year to date period ended September 30, 2014

 

 

 

As Previously
Restated

 

Restatement
Adjustment

 

 

 

As Restated

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

 

Consolidated net income (loss)

 

$

1,113

 

$

(5,208

)

(a), (b), (c), (d), (e), (f)

 

$

(4,095

)

Loss from discontinued operations, net of tax

 

503

 

1

 

 

 

504

 

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

37,773

 

(503

)

(c), (d)

 

37,270

 

Amortization of deferred financing fees

 

11,099

 

(2,229

)

(c), (d), (h)

 

8,870

 

Amortization of favorable (unfavorable) contracts

 

53

 

 

 

 

53

 

Amortization of inventory step-up

 

9,844

 

 

 

 

9,844

 

Non-cash stock compensation expense

 

4,994

 

71

 

(i)

 

5,065

 

Non-cash interest expense

 

3,954

 

1

 

(i)

 

3,955

 

Non-cash gain on bargain purchase

 

 

 

 

 

 

Gain from product divestiture

 

(9,807

)

478

 

(e)

 

(9,329

)

Deferred income taxes, net

 

9,002

 

(49,272

)

(e), (i)

 

(40,270

)

Excess tax benefit from stock compensation

 

(32,268

)

221

 

(e)

 

(32,047

)

Loss on extinguishment of debt

 

 

 

 

 

 

Gain on sale of available for sale security

 

 

 

 

 

 

Changes in operating assets and liabilities, net of business acquisitions:

 

 

 

 

 

 

 

 

 

Trade accounts receivable, net

 

(15,340

)

5,519

 

(a), (b), (c), (d)

 

(9,821

)

Inventories, net

 

(14,177

)

140

 

(c), (d), (f)

 

(14,037

)

Prepaid expenses and other current assets

 

(14,491

)

55,569

 

(c), (d)

 

41,078

 

Trade accounts payable

 

2,340

 

(452

)

(c), (d)

 

1,888

 

Accrued expenses and other liabilities

 

19,677

 

(5,248

)

(c), (d), (i)

 

14,429

 

 

 

 

 

 

 

 

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

14,269

 

(912

)

 

 

13,357

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

 

Payments for acquisitions and equity investments, net of cash acquired

 

(929,771

)

(1

)

(i)

 

(929,772

)

Proceeds from disposal of assets

 

58,750

 

 

 

 

58,750

 

Payments for other intangible assets

 

(8,499

)

1

 

(i)

 

(8,498

)

Purchases of property, plant and equipment

 

(19,393

)

1,615

 

(c), (d)

 

(17,778

)

Distributions from unconsolidated joint venture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

 

(898,913

)

1,615

 

 

 

(897,298

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

 

Proceeds from issuances of debt

 

1,045,000

 

44

 

(i)

 

1,045,044

 

Proceeds under stock option and stock purchase plans

 

6,867

 

 

 

 

6,867

 

Payments of contingent acquisition liabilities

 

 

 

 

 

 

Debt financing costs

 

(28,462

)

97

 

(i)

 

(28,365

)

Proceeds from warrant exercises

 

8,171

 

 

 

 

8,171

 

Excess tax benefits from stock compensation

 

32,268

 

(221

)

(i)

 

32,047

 

Debt repayment

 

(81,813

)

(623

)

(e)

 

(82,436

)

 

 

 

 

 

 

 

 

 

 

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

982,032

 

(704

)

 

 

981,328

 

 

 

 

 

 

 

 

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

 

(99

)

 

 

 

(99

)

 

 

 

 

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

97,288

 

 

 

 

97,288

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

 

34,178

 

 

 

 

34,178

 

 

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

131,466

 

$

 

 

 

$

131,466

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES:

 

 

 

 

 

 

 

 

 

Amount paid for interest

 

$

8,944

 

$

 

 

 

$

8,944

 

Amount paid for income taxes, net of refunds received

 

$

6,226

 

$

 

 

 

$

6,226

 

 

The effect of the restatement on the previously filed condensed consolidated balance sheet as of the quarter ended June 30, 2014 is as follows, in thousands:

 

 

 

June 30, 2014

 

 

 

As Previously
Restated

 

Restatement
Adjustment

 

 

 

As Restated

 

ASSETS

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

107,907

 

$

9

 

(i)

 

$

107,916

 

Trade accounts receivable, net

 

139,973

 

(11,199

)

(a), (b), (c), (e)

 

128,774

 

Inventories, net

 

108,914

 

4,752

 

(c), (d), (f)

 

113,666

 

Deferred taxes, current

 

23,266

 

16,627

 

(e)

 

39,893

 

Available for sale security, current

 

 

 

 

 

 

Prepaid expenses and other current assets

 

17,013

 

(4,736

)

(c), (d)

 

12,277

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

397,073

 

5,453

 

 

 

402,526

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

135,695

 

(231

)

(c), (d)

 

135,464

 

OTHER LONG-TERM ASSETS

 

 

 

 

 

 

 

 

 

Goodwill

 

190,448

 

(4,083

)

(e)

 

186,365

 

Product licensing rights, net

 

429,621

 

167

 

(e)

 

429,788

 

Other intangibles, net

 

34,803

 

 

 

 

34,803

 

Deferred financing costs, net

 

16,463

 

2,203

 

(c), (d), (h)

 

18,666

 

Deferred taxes, non-current

 

2,451

 

 

 

 

2,451

 

Long-term investments

 

10,965

 

6

 

(c), (d)

 

10,971

 

Other non-current assets

 

579

 

 

 

 

579

 

 

 

 

 

 

 

 

 

 

 

TOTAL OTHER LONG-TERM ASSETS

 

685,330

 

(1,707

)

 

 

683,623

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

1,218,098

 

$

3,515

 

 

 

$

1,221,613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

Trade accounts payable

 

$

37,794

 

$

5,660

 

(c), (d)

 

$

43,454

 

Purchase consideration payable, current

 

20,514

 

3,489

 

(c), (d)

 

24,003

 

Income taxes payable

 

571

 

(571

)

(a), (b), (c), (d), (e), (f)

 

 

Accrued royalties

 

7,071

 

1

 

(c), (d)

 

7,072

 

Accrued compensation

 

11,058

 

 

 

 

11,058

 

Current maturities of long-term debt

 

4,500

 

 

 

 

4,500

 

Accrued administrative fees

 

2,110

 

2,365

 

(c), (d)

 

4,475

 

Accrued expenses and other liabilities

 

20,055

 

(1,226

)

(c), (d)

 

18,829

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

103,673

 

9,718

 

 

 

113,391

 

LONG-TERM LIABILITIES

 

 

 

 

 

 

 

 

 

Long-term debt

 

706,420

 

 

 

 

706,420

 

Deferred tax liability, non-current

 

117,277

 

(1,849

)

(c), (d)

 

115,428

 

Lease incentive obligations and other long-term liabilities

 

1,830

 

335

 

(c), (d)

 

2,165

 

 

 

 

 

 

 

 

 

 

 

TOTAL LONG-TERM LIABILITIES

 

825,527

 

(1,514

)

 

 

824,013

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

929,200

 

8,204

 

 

 

937,404

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Common stock, no par value — 150,000,000 shares authorized; 104,088,199 shares issued and outstanding at June 30, 2014

 

271,584

 

(164

)

(i)

 

271,420

 

Warrants to acquire common stock

 

 

 

 

 

 

Retained earnings

 

28,129

 

(4,525

)

(a), (b), (c), (d), (e), (f)

 

23,604

 

Accumulated other comprehensive loss

 

(10,815

)

 

 

 

(10,815

)

 

 

 

 

 

 

 

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

 

288,898

 

(4,689

)

 

 

284,209

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

1,218,098

 

$

3,515

 

 

 

$

1,221,613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The effect of the restatement on the previously filed consolidated income statement for the quarter ended June 30, 2014 is as follows, in thousands except per share amounts:

 

 

 

Quarter ended June 30, 2014

 

 

 

As Previously
Restated

 

Restatement
Adjustment

 

 

 

As Restated

 

REVENUES

 

$

141,896

 

$

(8,024

)

(a), (b), (c)

 

$

133,872

 

Cost of sales (exclusive of amortization of intangibles, included within operating expenses below)

 

74,078

 

(1,078

)

(c), (d), (f)

 

73,000

 

GROSS PROFIT

 

67,818

 

(6,947

)

 

 

60,871

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

21,976

 

(808

)

(c), (d)

 

21,168

 

Acquisition-related costs

 

20,773

 

167

 

(c, d)

 

20,940

 

Research and development expenses

 

9,052

 

536

 

(c, d)

 

9,588

 

Amortization of intangibles

 

8,607

 

(168

)

(e)

 

8,439

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

60,408

 

(273

)

 

 

60,135

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

7,410

 

(6,674

)

 

 

736

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

(2,436

)

90

 

(c), (d)

 

(2,346

)

Interest expense, net

 

(7,917

)

 

(c), (d)

 

(7,917

)

Gain from product divestiture

 

8,968

 

(478

)

(e)

 

8,490

 

Other non-operating income, net

 

(566

)

352

 

(c), (d)

 

(214

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

5,459

 

(6,710

)

 

 

(1,251

)

Income tax provision (benefit)

 

2,021

 

(2,520

)

(i)

 

(499

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

$

3,438

 

$

(4,190

)

 

 

$

(752

)

Loss from discontinued operations, net of tax

 

(503

)

(1

)

(e)

 

(504

)

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS)

 

$

2,935

 

$

(4,191

)

 

 

$

(1,256

)

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS) PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, basic

 

$

0.03

 

$

(0.04

)

 

 

$

(0.01

)

Loss from discontinued operations, basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (loss), BASIC

 

$

0.03

 

$

(0.04

)

 

 

$

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, diluted

 

$

0.03

 

$

(0.04

)

 

 

$

(0.01

)

Loss from discontinued operations, diluted

 

(0.01

)

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS), DILUTED

 

$

0.02

 

$

(0.03

)

 

 

$

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN COMPUTING CONSOLIDATED NET INCOME (LOSS) PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

BASIC

 

103,183

 

 

 

 

103,183

 

 

 

 

 

 

 

 

 

 

 

DILUTED

 

118,092

 

(14,909

)

 

 

103,183

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS):

 

 

 

 

 

 

 

 

 

Consolidated net income (loss)

 

$

2,935

 

$

(4,191

)

 

 

$

(1,256

)

Foreign currency translation loss, net of tax of $78 for the quarter ended June 30, 2014

 

(153

)

 

 

 

(153

)

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

 

$

2,782

 

$

(4,191

)

 

 

$

(1,409

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The effect of the restatement on the previously filed consolidated income statement for the year to date period ended June 30, 2014 is as follows, in thousands except per share amounts:

 

 

 

Year to date period ended June 30, 2014

 

 

 

As Previously
Restated

 

Restatement
Adjustment

 

 

 

As Restated

 

REVENUES

 

$

232,518

 

$

(8,024

)

(a), (b), (c)

 

$

224,494

 

Cost of sales (exclusive of amortization of intangibles, included within operating expenses below)

 

115,044

 

(1,077

)

(c), (d), (f)

 

113,967

 

GROSS PROFIT

 

117,474

 

(6,947

)

 

 

110,527

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

38,562

 

(808

)

(c), (d)

 

37,754

 

Acquisition-related costs

 

21,227

 

167

 

(c), (d)

 

21,394

 

Research and development expenses

 

13,471

 

536

 

(c), (d)

 

14,007

 

Amortization of intangibles

 

13,364

 

(168

)

(e)

 

13,196

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

86,624

 

(273

)

 

 

86,351

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

30,850

 

(6,674

)

 

 

24,176

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

(8,590

)

1,993

 

(c), (d), (h)

 

(6,597

)

Interest expense, net

 

(10,078

)

2

 

(c), (d)

 

(10,076

)

Gain from product divestiture

 

8,968

 

(478

)

(e)

 

8,490

 

Other non-operating income, net

 

1

 

350

 

(c), (d)

 

351

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

21,151

 

(4,807

)

 

 

16,344

 

Income tax provision

 

7,885

 

(283

)

(i)

 

7,602

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS

 

$

13,266

 

$

(4,524

)

 

 

$

8,742

 

Loss from discontinued operations, net of tax

 

(503

)

(1

)

(e)

 

(504

)

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME

 

$

12,763

 

$

(4,525

)

 

 

$

8,238

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

Income from continuing operations, basic

 

$

0.13

 

$

(0.04

)

 

 

$

0.09

 

Loss from discontinued operations, basic

 

 

$

(0.01

)

 

 

$

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME, BASIC

 

$

0.13

 

$

(0.05

)

 

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, diluted

 

$

0.11

 

$

(0.04

)

 

 

$

0.07

 

Loss from discontinued operations, diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME, DILUTED

 

$

0.11

 

$

(0.04

)

 

 

$

0.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN COMPUTING CONSOLIDATED NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

BASIC

 

99,926

 

 

 

 

99,926

 

 

 

 

 

 

 

 

 

 

 

DILUTED

 

117,576

 

 

 

 

117,576

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME:

 

 

 

 

 

 

 

 

 

Consolidated net income

 

$

12,763

 

$

(4,525

)

 

 

$

8,238

 

Foreign currency translation loss, net of tax of ($799) for the year to date period ended June 30, 2014

 

1,552

 

 

 

 

1,552

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

$

14,315

 

$

(4,525

)

 

 

$

9,790

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The effect of the restatement on the previously filed consolidated statement of cash flows for the year to date period ended June 30, 2014 is as follows, in thousands:

 

 

 

Year to date period ended June 30, 2014

 

 

 

As Previously
Restated

 

Restatement
Adjustment

 

 

 

As Restated

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

 

Consolidated net income

 

$

12,763

 

$

(4,525

)

(a), (b), (c), (d), (e), (f)

 

$

8,238

 

Loss from discontinued operations, net of tax

 

503

 

1

 

(e)

 

504

 

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

18,865

 

(300

)

 

 

18,565

 

Amortization of deferred financing fees

 

8,589

 

(1,990

)

(c), (d), (h)

 

6,599

 

Amortization of favorable (unfavorable) contracts

 

35

 

 

 

 

35

 

Amortization of inventory step-up

 

3,559

 

 

 

 

3,559

 

Non-cash stock compensation expense

 

3,331

 

(56

)

(i)

 

3,275

 

Non-cash interest expense

 

2,655

 

 

 

 

2,655

 

Non-cash gain on bargain purchase

 

 

 

 

 

 

Gain from product divestiture

 

(8,968

)

(361

)

(e)

 

(9,329

)

Deferred income taxes, net

 

(9,959

)

(10,144

)

(e), (i)

 

(20,103

)

Excess tax benefit from stock compensation

 

(831

)

109

 

 

 

(722

)

Loss on extinguishment of debt

 

 

 

 

 

 

Gain on sale of available for sale security

 

 

 

 

 

 

Changes in operating assets and liabilities, net of business acquisitions:

 

 

 

 

 

 

 

 

 

Trade accounts receivable, net

 

(19,138

)

5,422

 

(a), (b), (c), (d)

 

(13,716

)

Inventories, net

 

(4,213

)

(6,014

)

(c), (d), (f)

 

(10,227

)

Prepaid expenses and other current assets

 

1,151

 

54,485

 

(c), (d)

 

55,636

 

Trade accounts payable

 

4,965

 

6,559

 

(c), (d)

 

11,524

 

Accrued expenses and other liabilities

 

8,695

 

(43,935

)

(c), (d), (i)

 

(35,240

)

 

 

 

 

 

 

 

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

22,002

 

(749

)

 

 

21,253

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

 

Payments for acquisitions and equity investments, net of cash acquired

 

(579,315

)

 

 

 

(579,315

)

Proceeds from disposal of assets

 

57,750

 

971

 

(i)

 

58,721

 

Payments for other intangible assets

 

(6,300

)

 

 

 

(6,300

)

Purchases of property, plant and equipment

 

(11,929

)

17

 

(d)

 

(11,912

)

Distributions from unconsolidated joint venture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

 

(539,794

)

988

 

 

 

(538,806

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

 

Proceeds from issuances of debt

 

600,000

 

 

 

 

600,000

 

Proceeds under stock option and stock purchase plans

 

2,071

 

 

 

 

2,071

 

Payments of contingent acquisition liabilities

 

 

 

 

 

 

Debt financing costs

 

(19,654

)

(121

)

(i)

 

(19,775

)

Proceeds from warrant exercises

 

8,171

 

 

 

 

8,171

 

Excess tax benefits from stock compensation

 

831

 

(109

)

(i)

 

722

 

Debt repayment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

591,419

 

(230

)

 

 

591,189

 

 

 

 

 

 

 

 

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

 

102

 

 

 

 

102

 

 

 

 

 

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

73,729

 

9

 

 

 

73,738

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

 

34,178

 

 

 

 

34,178

 

 

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

107,907

 

$

9

 

 

 

$

107,916

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES:

 

 

 

 

 

 

 

 

 

Amount paid for interest

 

$

2,105

 

$

 

 

 

$

2,105

 

Amount paid for income taxes, net of refunds received

 

$

16,449

 

$

 

 

 

$

16,449

 

 

The effect of the restatement on the previously filed condensed consolidated balance sheet as of the quarter ended March 31, 2014 is as follows, in thousands:

 

 

 

March 31, 2014

 

 

 

As Previously
Restated

 

Restatement
Adjustment

 

 

 

As Restated

 

ASSETS

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

45,606

 

$

 

 

 

$

45,606

 

Trade accounts receivable, net

 

65,500

 

 

 

 

65,500

 

Inventories, net

 

62,013

 

 

 

 

62,013

 

Deferred taxes, current

 

8,038

 

 

 

 

8,038

 

Available for sale security, current

 

 

 

 

 

 

Prepaid expenses and other current assets

 

4,559

 

 

 

 

4,559

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

185,716

 

 

 

 

185,716

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

87,675

 

 

 

 

87,675

 

OTHER LONG-TERM ASSETS

 

 

 

 

 

 

 

 

 

Goodwill

 

30,437

 

 

 

 

30,437

 

Product licensing rights, net

 

122,933

 

 

 

 

122,933

 

Other intangibles, net

 

14,283

 

 

 

 

14,283

 

Deferred financing costs, net

 

3,570

 

1,903

 

(h)

 

5,473

 

Deferred taxes, non-current

 

3,330

 

 

 

 

3,330

 

Long-term investments

 

10,012

 

 

 

 

10,012

 

Other non-current assets

 

3,556

 

 

 

 

3,556

 

 

 

 

 

 

 

 

 

 

 

TOTAL OTHER LONG-TERM ASSETS

 

188,121

 

1,903

 

 

 

190,024

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

461,512

 

$

1,903

 

 

 

$

463,415463,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

Trade accounts payable

 

$

30,632

 

$

 

 

 

$

30,632

 

Purchase consideration payable, current

 

18,898

 

 

 

 

18,898

 

Income taxes payable

 

6,559

 

2,180

 

(i)

 

8,739

 

Accrued royalties

 

6,480

 

 

 

 

6,480

 

Accrued compensation

 

4,453

 

 

 

 

4,453

 

Current maturities of long-term debt

 

 

 

 

 

 

Accrued administrative fees

 

2,110

 

 

 

 

2,110

 

Accrued expenses and other liabilities

 

6,929

 

 

 

 

6,929

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

76,061

 

2,180

 

 

 

78,241

 

LONG-TERM LIABILITIES

 

 

 

 

 

 

 

 

 

Long-term debt

 

109,825

 

 

 

 

109,825

 

Deferred tax liability, non-current

 

 

 

 

 

 

Lease incentive obligations and other long-term liabilities

 

1,577

 

57

 

(i)

 

1,634

 

 

 

 

 

 

 

 

 

 

 

TOTAL LONG-TERM LIABILITIES

 

111,402

 

57

 

 

 

111,459

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

187,463

 

2,237

 

 

 

189,700

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Common stock, no par value — 150,000,000 shares authorized; 96,697,545 shares issued and outstanding at March 31, 2014

 

241,571

 

 

 

 

241,571

 

Warrants to acquire common stock

 

17,946

 

 

 

 

17,946

 

Retained earnings

 

25,194

 

(334

)

(i)

 

24,860

 

Accumulated other comprehensive loss

 

(10,662

)

 

 

 

(10,662

)

 

 

 

 

 

 

 

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

 

274,049

 

(334

)

 

 

273,715

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

461,512

 

$

1,903

 

 

 

$

463,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The effect of the restatement on the previously filed consolidated income statement for the quarter ended March 31, 2014 is as follows, in thousands except per share amounts:

 

 

 

Quarter ended March 31, 2014

 

 

 

As Previously
Restated

 

Restatement
Adjustment

 

 

 

As Restated

 

REVENUES

 

$

90,622

 

$

 

 

 

$

90,622

 

Cost of sales (exclusive of amortization of intangibles, included within operating expenses below)

 

40,966

 

 

 

 

40,966

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

49,656

 

 

 

 

49,656

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

16,586

 

 

 

 

16,586

 

Acquisition-related costs

 

454

 

 

 

 

454

 

Research and development expenses

 

4,419

 

 

 

 

4,419

 

Amortization of intangibles

 

4,757

 

 

 

 

4,757

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

26,216

 

 

 

 

26,216

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

23,440

 

 

 

 

23,440

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

(6,154

)

1,903

 

(h)

 

(4,251

)

Interest expense, net

 

(2,161

)

 

 

 

(2,161

)

Gain from product divestiture

 

 

 

 

 

 

Other non-operating income, net

 

567

 

 

 

 

567

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

15,692

 

1,903

 

 

 

17,595

 

Income tax provision (benefit)

 

5,864

 

2,237

 

 

 

8,101

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

$

9,828

 

$

(334

)

 

 

$

9,494

 

Loss from discontinued operations, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS)

 

$

9,828

 

$

(334

)

 

 

$

9,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS) PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, basic

 

$

0.10

 

$

 

 

 

$

0.10

 

Loss from discontinued operations, basic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (loss), BASIC

 

$

0.10

 

$

 

 

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, diluted

 

$

0.08

 

$

 

 

 

$

0.08

 

Loss from discontinued operations, diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED NET INCOME (LOSS), DILUTED

 

$

0.08

 

$

 

 

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN COMPUTING CONSOLIDATED NET INCOME (LOSS) PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

BASIC

 

96,633

 

 

 

 

96,633

 

 

 

 

 

 

 

 

 

 

 

DILUTED

 

116,884

 

 

 

 

116,884

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS):

 

 

 

 

 

 

 

 

 

Consolidated net income (loss)

 

$

9,828

 

$

(334

)

 

 

$

9,494

 

Foreign currency translation loss, net of tax of ($878) for the quarter ended March 31, 2014

 

1,705

 

 

 

 

1,705

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

 

$

11,533

 

$

(334

)

 

 

$

11,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The effect of the restatement on the previously filed consolidated statement of cash flows for the three month period ended March 31, 2014 is as follows, in thousands:

 

 

 

Three month period ended March 31, 2014

 

 

 

As Previously
Restated

 

Restatement
Adjustment

 

 

 

As Restated

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

 

Consolidated net income

 

$

9,828

 

$

(334

)

(h)

 

$

9,494

 

Loss from discontinued operations, net of tax

 

 

 

 

 

 

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

6,675

 

 

 

 

6,675

 

Amortization of deferred financing fees

 

2,129

 

(1,903

)

(h)

 

226

 

Amortization of favorable (unfavorable) contracts

 

18

 

 

 

 

18

 

Amortization of inventory step-up

 

 

 

 

 

 

Non-cash stock compensation expense

 

1,282

 

 

 

 

1,282

 

Non-cash interest expense

 

1,249

 

 

 

 

1,249

 

Deferred income taxes, net

 

(1,689

)

(33

)

(i)

 

(1,722

)

Excess tax benefit from stock compensation

 

(33

)

 

 

 

(33

)

Changes in operating assets and liabilities, net of business acquisitions:

 

 

 

 

 

 

 

 

 

Trade accounts receivable, net

 

(450

)

 

 

 

(450

)

Inventories, net

 

(5,987

)

 

 

 

(5,987

)

Prepaid expenses and other current assets

 

1,026

 

 

 

 

1,026

 

Trade accounts payable

 

6,100

 

 

 

 

6,100

 

Accrued expenses and other liabilities

 

3,228

 

2,270

 

(i)

 

5,498

 

 

 

 

 

 

 

 

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

23,376

 

 

 

 

23,376

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

 

Payments for acquisitions and equity investments, net of cash acquired

 

(7,500

)

 

 

 

(7,500

)

Purchases of property, plant and equipment

 

(5,198

)

 

 

 

(5,198

)

Distributions from unconsolidated joint venture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

 

(12,698

)

 

 

 

(12,698

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

 

Proceeds from issuances of debt

 

 

 

 

 

 

Proceeds under stock option and stock purchase plans

 

1,022

 

 

 

 

1,022

 

Payments of contingent acquisition liabilities

 

 

 

 

 

 

Debt financing costs

 

(408

)

 

 

 

(408

)

Proceeds from warrant exercises

 

 

 

 

 

 

Excess tax benefits from stock compensation

 

33

 

 

 

 

33

 

Debt repayment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

647

 

 

 

 

647

 

 

 

 

 

 

 

 

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

 

103

 

 

 

 

103

 

 

 

 

 

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

11,428

 

 

 

 

11,428

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

 

34,178

 

 

 

 

34,178

 

 

 

 

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

45,606

 

$

 

 

 

$

45,606

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES:

 

 

 

 

 

 

 

 

 

Amount paid for interest

 

$

129

 

$

 

 

 

$

129

 

Amount paid for income taxes, net of refunds received

 

$

1,806

 

$

 

 

 

$

1,806

 

 

Schedule Of Balance Sheet Information [Table Text Block]

 

Quarter period ended March 31, 2014

 

QUARTERLY CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share Data)

 

 

 

March 31, 2014
(as Restated)
(Unaudited)

 

December 31, 2013

 

ASSETS

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

45,606

 

$

34,178

 

Trade accounts receivable, net

 

65,500

 

64,998

 

Inventories, net

 

62,013

 

55,982

 

Deferred taxes, current

 

8,038

 

7,945

 

Available for sale security, current

 

 

 

Prepaid expenses and other current assets

 

4,559

 

5,753

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

185,716

 

168,856

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

87,675

 

82,108

 

OTHER LONG-TERM ASSETS

 

 

 

 

 

Goodwill

 

30,437

 

29,831

 

Product licensing rights, net

 

122,933

 

115,900

 

Other intangibles, net

 

14,283

 

14,605

 

Deferred financing costs, net

 

5,473

 

5,676

 

Deferred taxes, non-current

 

3,330

 

1,643

 

Long-term investments

 

10,012

 

10,006

 

Other non-current assets

 

3,556

 

3,180

 

 

 

 

 

 

 

TOTAL OTHER LONG-TERM ASSETS

 

190,024

 

180,841

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

463,415

 

$

431,805

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade accounts payable

 

$

30,632

 

$

22,999

 

Purchase consideration payable, current

 

18,898

 

14,728

 

Income taxes payable

 

8,739

 

1,459

 

Accrued royalties

 

6,480

 

6,004

 

Accrued compensation

 

4,453

 

7,692

 

Current maturities of long-term debt

 

 

 

Accrued administrative fees

 

2,110

 

2,544

 

Accrued expenses and other liabilities

 

6,929

 

5,819

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

78,241

 

61,245

 

LONG-TERM LIABILITIES

 

 

 

 

 

Long-term debt

 

109,825

 

108,750

 

Deferred tax liability, non-current

 

 

 

Lease incentive obligations and other long-term liabilities

 

1,634

 

1,630

 

 

 

 

 

 

 

TOTAL LONG-TERM LIABILITIES

 

111,459

 

110,380

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

189,700

 

171,625

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

Common stock, no par value — 150,000,000 shares authorized; 96,697,545 and 96,569,186 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively

 

241,571

 

239,235

 

Warrants to acquire common stock

 

17,946

 

17,946

 

Retained earnings

 

24,860

 

15,366

 

Accumulated other comprehensive loss

 

(10,662

)

(12,367

)

 

 

 

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

 

273,715

 

260,180

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

463,415

 

$

431,805

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014
(as Restated)
(Unaudited)

 

December 31, 2013

 

ASSETS

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

107,916

 

$

34,178

 

Trade accounts receivable, net

 

128,774

 

64,998

 

Inventories, net

 

113,666

 

55,982

 

Deferred taxes, current

 

39,893

 

7,945

 

Available for sale security, current

 

 

 

Prepaid expenses and other current assets

 

12,277

 

5,753

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

402,526

 

168,856

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

135,464

 

82,108

 

OTHER LONG-TERM ASSETS

 

 

 

 

 

Goodwill

 

186,365

 

29,831

 

Product licensing rights, net

 

429,788

 

115,900

 

Other intangibles, net

 

34,803

 

14,605

 

Deferred financing costs, net

 

18,666

 

5,676

 

Deferred taxes, non-current

 

2,451

 

1,643

 

Long-term investments

 

10,971

 

10,006

 

Other non-current assets

 

579

 

3,180

 

 

 

 

 

 

 

TOTAL OTHER LONG-TERM ASSETS

 

683,623

 

180,841

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

1,221,613

 

$

431,805

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade accounts payable

 

$

43,454

 

$

22,999

 

Purchase consideration payable, current

 

24,003

 

14,728

 

Income taxes payable

 

 

1,459

 

Accrued royalties

 

7,072

 

6,004

 

Accrued compensation

 

11,058

 

7,692

 

Current maturities of long-term debt

 

4,500

 

 

Accrued administrative fees

 

4,475

 

2,544

 

Accrued expenses and other liabilities

 

18,829

 

5,819

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

113,391

 

61,245

 

LONG-TERM LIABILITIES

 

 

 

 

 

Long-term debt

 

706,420

 

108,750

 

Deferred tax liability, non-current

 

115,428

 

 

Lease incentive obligations and other long-term liabilities

 

2,165

 

1,630

 

 

 

 

 

 

 

TOTAL LONG-TERM LIABILITIES

 

824,013

 

110,380

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

937,404

 

171,625

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

Common stock, no par value — 150,000,000 shares authorized; 104,088,199 and 96,569,186 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively

 

271,420

 

239,235

 

Warrants to acquire common stock

 

 

17,946

 

Retained earnings

 

23,604

 

15,366

 

Accumulated other comprehensive loss

 

(10,815

)

(12,367

)

 

 

 

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

 

284,209

 

260,180

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

1,221,613

 

$

431,805

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2014
(as Restated)
(Unaudited)

 

December 31, 2013

 

ASSETS

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

131,466

 

$

34,178

 

Trade accounts receivable, net

 

127,972

 

64,998

 

Inventories, net

 

132,116

 

55,982

 

Deferred taxes, current

 

63,976

 

7,945

 

Available for sale security, current

 

10,804

 

 

Prepaid expenses and other current assets

 

27,332

 

5,753

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

493,666

 

168,856

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

139,374

 

82,108

 

OTHER LONG-TERM ASSETS

 

 

 

 

 

Goodwill

 

285,881

 

29,831

 

Product licensing rights, net

 

671,127

 

115,900

 

Other intangibles, net

 

251,156

 

14,605

 

Deferred financing costs, net

 

25,172

 

5,676

 

Deferred taxes, non-current

 

1,746

 

1,643

 

Long-term investments

 

211

 

10,006

 

Other non-current assets

 

2,377

 

3,180

 

 

 

 

 

 

 

TOTAL OTHER LONG-TERM ASSETS

 

1,237,670

 

180,841

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

1,870,710

 

$

431,805

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade accounts payable

 

$

38,205

 

$

22,999

 

Purchase consideration payable, current

 

24,216

 

14,728

 

Income taxes payable

 

 

1,459

 

Accrued royalties

 

14,533

 

6,004

 

Accrued compensation

 

12,977

 

7,692

 

Current maturities of long-term debt

 

10,494

 

 

Accrued administrative fees

 

8,898

 

2,544

 

Accrued expenses and other liabilities

 

31,957

 

5,819

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

141,280

 

61,245

 

LONG-TERM LIABILITIES

 

 

 

 

 

Long-term debt

 

1,146,585

 

108,750

 

Deferred tax liability, non-current

 

270,775

 

 

Lease incentive obligations and other long-term liabilities

 

2,679

 

1,630

 

 

 

 

 

 

 

TOTAL LONG-TERM LIABILITIES

 

1,420,039

 

110,380

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

1,561,319

 

171,625

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

Common stock, no par value — 150,000,000 shares authorized; 107,330,516 and 96,569,186 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively

 

309,331

 

239,235

 

Warrants to acquire common stock

 

 

17,946

 

Retained earnings

 

11,271

 

15,366

 

Accumulated other comprehensive loss

 

(11,211

)

(12,367

)

 

 

 

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

 

309,391

 

260,180

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

1,870,710

 

$

431,805

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2015
(Unaudited)

 

December 31, 2014
(As restated)

 

ASSETS

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

123,532

 

$

70,679

 

Trade accounts receivable, net

 

190,710

 

187,545

 

Inventories, net

 

149,403

 

135,197

 

Deferred taxes, current

 

39,564

 

38,411

 

Available for sale security, current

 

5,558

 

7,268

 

Prepaid expenses and other current assets

 

35,118

 

37,061

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

543,885

 

476,161

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

175,991

 

144,196

 

OTHER LONG-TERM ASSETS

 

 

 

 

 

Goodwill

 

285,674

 

285,283

 

Product licensing rights, net

 

689,490

 

704,791

 

Other intangibles, net

 

254,590

 

255,612

 

Deferred financing costs, net

 

22,687

 

23,704

 

Deferred taxes, non-current

 

2,643

 

2,084

 

Long-term investments

 

129

 

211

 

Other non-current assets

 

1,248

 

1,863

 

 

 

 

 

 

 

TOTAL OTHER LONG-TERM ASSETS

 

1,256,462

 

1,273,548

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

1,976,338

 

$

1,893,905

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade accounts payable

 

$

57,971

 

$

47,317

 

Purchase consideration payable, current

 

12,367

 

10,970

 

Income taxes payable

 

 

 

Accrued royalties

 

13,948

 

13,204

 

Accrued compensation

 

8,375

 

13,467

 

Current maturities of long-term debt

 

10,450

 

10,450

 

Accrued administrative fees

 

36,312

 

40,870

 

Accrued expenses and other liabilities

 

14,428

 

14,576

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

153,851

 

150,854

 

LONG-TERM LIABILITIES

 

 

 

 

 

Long-term debt

 

1,110,458

 

1,114,481

 

Deferred tax liability, non-current

 

263,466

 

269,428

 

Lease incentive obligations and other long-term liabilities

 

6,388

 

2,836

 

 

 

 

 

 

 

TOTAL LONG-TERM LIABILITIES

 

1,380,312

 

1,386,745

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

1,534,163

 

1,537,599

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

Common stock, no par value — 150,000,000 shares authorized; 114,332,873 and 111,734,901 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively

 

388,475

 

342,252

 

Warrants to acquire common stock

 

 

 

Retained earnings

 

66,788

 

29,250

 

Accumulated other comprehensive loss

 

(13,088

)

(15,195

)

 

 

 

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

 

442,175

 

356,307

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

1,976,338

 

$

1,893,905

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015
(Unaudited)

 

December 31, 2014
(As restated)

 

ASSETS

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

257,090

 

$

70,679

 

Trade accounts receivable, net

 

130,812

 

187,545

 

Inventories, net

 

156,315

 

135,197

 

Deferred taxes, current

 

40,717

 

38,411

 

Available for sale security, current

 

5,632

 

7,268

 

Prepaid expenses and other current assets

 

16,447

 

37,061

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

607,013

 

476,161

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

179,239

 

144,196

 

OTHER LONG-TERM ASSETS

 

 

 

 

 

Goodwill

 

285,356

 

285,283

 

Product licensing rights, net

 

674,687

 

704,791

 

Other intangibles, net

 

251,283

 

255,612

 

Deferred financing costs, net

 

22,612

 

23,704

 

Deferred taxes, non-current

 

2,982

 

2,084

 

Long-term investments

 

130

 

211

 

Other non-current assets

 

1,282

 

1,863

 

 

 

 

 

 

 

TOTAL OTHER LONG-TERM ASSETS

 

1,238,332

 

1,273,548

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

2,024,584

 

$

1,893,905

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade accounts payable

 

$

45,536

 

$

47,317

 

Purchase consideration payable, current

 

4,904

 

10,970

 

Income taxes payable

 

3,525

 

 

Accrued royalties

 

13,716

 

13,204

 

Accrued compensation

 

11,286

 

13,467

 

Current maturities of long-term debt

 

53,971

 

10,450

 

Accrued administrative fees

 

45,229

 

40,870

 

Accrued expenses and other liabilities

 

20,813

 

14,576

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

198,980

 

150,854

 

LONG-TERM LIABILITIES

 

 

 

 

 

Long-term debt

 

1,026,713

 

1,114,481

 

Deferred tax liability, non-current

 

256,035

 

269,428

 

Lease incentive obligations and other long-term liabilities

 

6,910

 

2,836

 

 

 

 

 

 

 

TOTAL LONG-TERM LIABILITIES

 

1,289,658

 

1,386,745

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

1,488,638

 

1,537,599

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

Common stock, no par value — 150,000,000 shares authorized; 119,199,049 and 111,734,901shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively

 

449,742

 

342,252

 

Warrants to acquire common stock

 

 

 

Retained earnings

 

99,296

 

29,250

 

Accumulated other comprehensive loss

 

(13,092

)

(15,195

)

 

 

 

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

 

535,946

 

356,307

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

2,024,584

 

$

1,893,905

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015
(Unaudited)

 

December 31, 2014
(As restated)

 

ASSETS

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Cash and cash equivalents

 

$

314,465

 

$

70,679

 

Trade accounts receivable, net

 

138,920

 

187,545

 

Inventories, net

 

175,851

 

135,197

 

Deferred taxes, current

 

41,871

 

38,411

 

Available for sale security, current

 

5,637

 

7,268

 

Prepaid expenses and other current assets

 

22,102

 

37,061

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

698,846

 

476,161

 

PROPERTY, PLANT AND EQUIPMENT, NET

 

177,433

 

144,196

 

OTHER LONG-TERM ASSETS

 

 

 

 

 

Goodwill

 

284,708

 

285,283

 

Product licensing rights, net

 

699,443

 

704,791

 

Other intangibles, net

 

212,360

 

255,612

 

Deferred financing costs, net

 

24,263

 

23,704

 

Deferred taxes, non-current

 

3,337

 

2,084

 

Long-term investments

 

129

 

211

 

Other non-current assets

 

748

 

1,863

 

 

 

 

 

 

 

TOTAL OTHER LONG-TERM ASSETS

 

1,224,988

 

1,273,548

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

2,101,267

 

$

1,893,905

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Trade accounts payable

 

$

57,765

 

$

47,317

 

Purchase consideration payable, current

 

4,936

 

10,970

 

Income taxes payable

 

15,489

 

 

Accrued royalties

 

14,452

 

13,204

 

Accrued compensation

 

15,958

 

13,467

 

Current maturities of long-term debt

 

53,450

 

10,450

 

Accrued administrative fees

 

46,929

 

40,870

 

Accrued expenses and other liabilities

 

28,767

 

14,576

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

237,746

 

150,854

 

LONG-TERM LIABILITIES

 

 

 

 

 

Long-term debt

 

1,024,100

 

1,114,481

 

Deferred tax liability, non-current

 

248,279

 

269,428

 

Lease incentive obligations and other long-term liabilities

 

6,640

 

2,836

 

 

 

 

 

 

 

TOTAL LONG-TERM LIABILITIES

 

1,279,019

 

1,386,745

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

1,516,765

 

1,537,599

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

 

 

 

 

Common stock, no par value — 150,000,000 shares authorized; 119,313,203 and 111,734,901 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively

 

453,940

 

342,252

 

Warrants to acquire common stock

 

 

 

Retained earnings

 

147,263

 

29,250

 

Accumulated other comprehensive loss

 

(16,701

)

(15,195

)

 

 

 

 

 

 

TOTAL SHAREHOLDERS’ EQUITY

 

584,502

 

356,307

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

2,101,267

 

1,893,905

 

 

 

 

 

 

 

 

 

Schedule of Income Statement Information [Table Text Block]

 

 

QUARTERLY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands, Except Share Data)

(Unaudited)

 

 

 

First Quarter

(as Restated)

 

First Quarter

 

 

 

2014

 

2013

 

Revenues

 

$

90,622

 

$

73,854

 

Cost of sales (exclusive of amortization of intangibles included below)

 

40,966

 

34,709

 

 

 

 

 

 

 

GROSS PROFIT

 

49,656

 

39,145

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

16,586

 

12,335

 

Acquisition-related costs

 

454

 

519

 

Research and development expenses

 

4,419

 

5,969

 

Amortization of intangibles

 

4,757

 

1,733

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

26,216

 

20,556

 

 

 

 

 

 

 

OPERATING INCOME

 

23,440

 

18,589

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

(4,251

)

(204

)

Interest expense, net

 

(2,161

)

(2,204

)

Other non-operating income (expense), net

 

567

 

76

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

17,595

 

16,257

 

Income tax provision (benefit)

 

8,101

 

5,415

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

$

9,494

 

$

10,842

 

(Loss) from discontinued operations, net of tax

 

 

 

NET INCOME (LOSS)

 

$

9,494

 

$

10,842

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

Income (loss) from continuing operations, basic

 

$

0.10

 

$

0.11

 

(Loss) from discontinued operations, basic

 

$

 

$

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), BASIC

 

$

0.10

 

$

0.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, diluted

 

$

0.08

 

$

0.10

 

(Loss) from discontinued operations, diluted

 

$

 

$

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), DILUTED

 

$

0.08

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN COMPUTING NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

BASIC

 

96,633

 

95,926

 

 

 

 

 

 

 

DILUTED

 

116,884

 

111,551

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS):

 

 

 

 

 

Consolidated net income (loss)

 

$

9,494

 

$

10,842

 

Unrealized holding gain on available-for-sale securities, net of tax

 

 

 

Foreign currency translation (loss) income, net of tax of ($878) and ($184) for the quarters ended March 31, 2014 and 2013, respectively.

 

1,705

 

358

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

 

$

11,199

 

$

11,200

 

 

 

 

 

 

 

 

 

 

 

 

 

Second
Quarter

 

Second Quarter

 

YTD -Second
Quarter

 

YTD – Second
Quarter

 

 

 

2014
(as Restated)

 

2013

 

2014
(as Restated)

 

2013

 

Revenues

 

$

133,872

 

$

77,012

 

$

224,494

 

$

150,866

 

Cost of sales (exclusive of amortization of intangibles included below)

 

73,000

 

34,920

 

113,967

 

69,629

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

60,871

 

42,092

 

110,527

 

81,237

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

21,168

 

13,113

 

37,754

 

25,448

 

Acquisition-related costs

 

20,940

 

 

21,394

 

519

 

Research and development expenses

 

9,588

 

5,051

 

14,007

 

11,020

 

Amortization of intangibles

 

8,439

 

1,677

 

13,196

 

3,410

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

60,135

 

19,841

 

86,351

 

40,397

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

736

 

22,251

 

24,176

 

40,840

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

(2,346

)

(207

)

(6,597

)

(411

)

Interest expense, net

 

(7,917

)

(2,028

)

(10,076

)

(4,232

)

Gain from product divestiture

 

8,490

 

 

8,490

 

 

Bargain purchase gain

 

 

 

 

 

Other non-operating income (expense), net

 

(214

)

(34

)

351

 

42

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

(1,251

)

19,982

 

16,344

 

36,239

 

Income tax provision (benefit)

 

(499

)

7,345

 

7,602

 

12,760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

$

(752

)

$

12,637

 

$

8,742

 

$

23,479

 

(Loss) from discontinued operations, net of tax

 

(504

)

 

(504

)

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

(1,256

)

$

12,637

 

$

8,238

 

$

23,479

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, basic

 

$

(0.01

)

$

0.13

 

$

0.09

 

$

0.24

 

(Loss) from discontinued operations, basic

 

$

 

$

 

$

(0.01

)

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), BASIC

 

$

(0.01

)

$

0.13

 

$

0.08

 

$

0.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, diluted

 

$

(0.01

)

$

0.11

 

$

0.07

 

$

0.21

 

(Loss) from discontinued operations, diluted

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), DILUTED

 

$

(0.01

)

$

0.11

 

$

0.07

 

$

0.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN COMPUTING NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

 

 

 

 

BASIC

 

103,183

 

96,122

 

99,926

 

96,025

 

 

 

 

 

 

 

 

 

 

 

DILUTED

 

103,183

 

112,328

 

117,576

 

112,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS):

 

 

 

 

 

 

 

 

 

Consolidated net income (loss)

 

$

(1,256

)

$

12,637

 

$

8,238

 

$

23,479

 

Foreign currency translation (loss) income, net of tax of $78 and $2,564 in the quarters ended June 30, 2014 and 2013, respectively and ($799) and $2,379 in the year to date periods ended June 30, 2014 and 2013, respectively

 

(153

)

(4,979

)

1,552

 

(4,621

)

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

 

$

(1,409

)

$

7,658

 

$

9,790

 

$

18,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third 
Quarter

 

Third Quarter

 

YTD -Third 
Quarter

 

YTD — Third 
Quarter

 

 

 

2014
(as Restated)

 

2013

 

2014
(as Restated)

 

2013

 

Revenues

 

$

127,698

 

$

81,892

 

$

352,192

 

$

232,758

 

Cost of sales (exclusive of amortization of intangibles included below)

 

82,198

 

38,195

 

196,165

 

107,824

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

45,500

 

43,697

 

156,027

 

124,934

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

26,799

 

13,645

 

64,553

 

39,093

 

Acquisition-related costs

 

8,159

 

1,459

 

29,553

 

1,978

 

Research and development expenses

 

8,758

 

4,837

 

22,765

 

15,857

 

Amortization of intangibles

 

13,814

 

1,568

 

27,010

 

4,978

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

57,530

 

21,509

 

143,881

 

61,906

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

(12,030

)

22,188

 

12,146

 

63,028

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

(2,272

)

(211

)

(8,869

)

(622

)

Interest expense, net

 

(11,804

)

(2,155

)

(21,880

)

(6,387

)

Gain from product divestiture

 

847

 

 

9,337

 

 

Bargain purchase gain

 

 

 

 

 

Other non-operating income (expense), net

 

1,012

 

160

 

1,363

 

202

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

(24,247

)

19,982

 

(7,903

)

56,221

 

Income tax provision (benefit)

 

(11,914

)

7,777

 

(4,312

)

20,537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

$

(12,333

)

$

12,205

 

$

(3,591

)

$

35,684

 

(Loss) from discontinued operations, net of tax

 

 

 

(504

)

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

(12,333

)

$

12,205

 

$

(4,095

)

$

35,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, basic

 

$

(0.12

)

$

0.13

 

$

(0.04

)

$

0.37

 

(Loss) from discontinued operations, basic

 

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), BASIC

 

$

(0.12

)

$

0.13

 

$

(0.04

)

$

0.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, diluted

 

$

(0.12

)

$

0.11

 

$

(0.04

)

$

0.32

 

(Loss) from discontinued operations, diluted

 

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), DILUTED

 

$

(0.12

)

$

0.11

 

$

(0.04

)

$

0.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN COMPUTING NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

 

 

 

 

BASIC

 

105,438

 

96,238

 

101,784

 

96,096

 

 

 

 

 

 

 

 

 

 

 

DILUTED

 

105,438

 

113,717

 

101,784

 

112,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS):

 

 

 

 

 

 

 

 

 

Consolidated net income (loss)

 

$

(12,333

)

$

12,205

 

$

(4,095

)

$

35,684

 

Unrealized holding gain on available-for-sale securities, net of tax of ($631) and $0 for the quarters ended June 30, 2014 and 2013, respectively and net of tax of ($631) and $0 for year to date period ended June 30, 2014 and 2013, respectively.

 

1,070

 

 

1,070

 

 

Foreign currency translation (loss) income, net of tax of $755 and $1,340 for the quarters ended June 30, 2014 and 2013, respectively and net of tax of $44 and $3,720 for the year to date period ended June 30, 2014 and 2013, respectively.

 

(1,466

)

(2,603

)

86

 

(7,224

)

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

 

$

(12,729

)

$

9,602

 

$

(2,939

)

$

28,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth 
Quarter

 

Fourth 
Quarter

 

 

 

2014
(as Restated)

 

2013

 

Revenues

 

$

202,856

 

$

84,953

 

Cost of sales (exclusive of amortization of intangibles included below)

 

97,523

 

37,983

 

GROSS PROFIT

 

105,333

 

46,970

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

28,402

 

14,415

 

Acquisition-related costs

 

3,287

 

934

 

Research and development expenses

 

8,491

 

4,001

 

Amortization of intangibles

 

16,483

 

2,444

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

56,663

 

21,794

 

 

 

 

 

 

 

OPERATING INCOME

 

48,670

 

25,176

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

(1,116

)

(220

)

Interest expense, net

 

(13,777

)

(2,262

)

Equity in earnings of unconsolidated joint venture

 

 

80

 

Gain (loss) from product divestiture

 

(40

)

 

Bargain purchase gain

 

 

3,707

 

Other non-operating income (expense), net

 

(492

)

193

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

33,245

 

26,674

 

Income tax provision (benefit)

 

15,266

 

9,996

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

$

17,979

 

$

16,678

 

(Loss) from discontinued operations, net of tax

 

$

 

$

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

17,979

 

$

16,678

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

Income (loss) from continuing operations, basic

 

$

0.17

 

$

0.17

 

(Loss) from discontinued operations, basic

 

$

 

$

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), BASIC

 

$

0.17

 

$

0.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, diluted

 

$

0.16

 

$

0.13

 

(Loss) from discontinued operations, diluted

 

$

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), DILUTED

 

$

0.16

 

$

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN COMPUTING NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

BASIC

 

108,515

 

96,431

 

DILUTED

 

124,491

 

113,898

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS):

 

 

 

 

 

Consolidated net income (loss)

 

$

17,979

 

$

16,678

 

Unrealized holding loss on available-for-sale securities, net of tax of $1,294

 

(2,193

)

 

Foreign currency translation (loss) income, net of tax of $922 and ($392) as of December 31, 2014 and 2013, respectively

 

(1,790

)

761

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

 

$

13,996

 

$

17,439

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter

 

First Quarter

(as Restated)

 

 

 

2015

 

2014

 

Revenues

 

$

227,378

 

$

90,622

 

Cost of sales (exclusive of amortization of intangibles included below)

 

97,215

 

40,966

 

 

 

 

 

 

 

GROSS PROFIT

 

130,163

 

49,656

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

29,986

 

16,586

 

Acquisition-related costs

 

1,257

 

454

 

Research and development expenses

 

9,276

 

4,419

 

Amortization of intangibles

 

16,377

 

4,757

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

56,896

 

26,216

 

 

 

 

 

 

 

OPERATING INCOME

 

73,267

 

23,440

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

(996

)

(4,251

)

Interest expense, net

 

(13,480

)

(2,161

)

Gain from product divestiture

 

 

 

Bargain purchase gain

 

849

 

 

Other non-operating income (expense), net

 

(1,312

)

567

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

58,328

 

17,595

 

Income tax provision (benefit)

 

20,790

 

8,101

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

$

37,538

 

$

9,494

 

(Loss) from discontinued operations, net of tax

 

 

 

NET INCOME (LOSS)

 

$

37,538

 

$

9,494

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

Income (loss) from continuing operations, basic

 

$

0.33

 

$

0.10

 

(Loss) from discontinued operations, basic

 

$

 

$

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), BASIC

 

$

0.33

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, diluted

 

$

0.31

 

$

0.08

 

(Loss) from discontinued operations, diluted

 

$

 

$

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), DILUTED

 

$

0.31

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN COMPUTING NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

BASIC

 

113,352

 

96,633

 

 

 

 

 

 

 

DILUTED

 

125,377

 

116,884

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS):

 

 

 

 

 

Consolidated net income (loss)

 

$

37,538

 

$

9,494

 

Unrealized holding gain on available-for-sale securities, net of tax of ($59)

 

101

 

 

Foreign currency translation (loss) income, net of tax of ($1,034) and ($878) for the quarters ended March 31, 2015 and 2014, respectively.

 

2,008

 

1,705

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

 

$

39,647

 

$

11,199

 

 

 

 

 

 

 

 

 

 

 

 

 

Second
Quarter

 

Second Quarter

 

YTD -Second
Quarter

 

YTD – Second
Quarter

 

 

 

2015

 

2014
(as Restated)

 

2015

 

2014
(as Restated)

 

Revenues

 

$

220,920

 

$

133,872

 

$

448,298

 

$

224,494

 

Cost of sales (exclusive of amortization of intangibles included below)

 

92,513

 

73,000

 

189,728

 

113,967

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

128,407

 

60,871

 

258,570

 

110,527

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

35,208

 

21,168

 

65,194

 

37,754

 

Acquisition-related costs

 

225

 

20,940

 

1,482

 

21,394

 

Research and development expenses

 

10,588

 

9,588

 

19,864

 

14,007

 

Amortization of intangibles

 

16,284

 

8,439

 

32,661

 

13,196

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

62,305

 

60,135

 

119,201

 

86,351

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

66,102

 

736

 

139,369

 

24,176

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

(1,026

)

(2,346

)

(2,022

)

(6,597

)

Interest expense, net

 

(13,235

)

(7,917

)

(26,715

)

(10,076

)

Gain from product divestiture

 

 

8,490

 

 

8,490

 

Bargain purchase gain

 

 

 

849

 

 

Other non-operating income (expense), net

 

(1,483

)

(214

)

(2,795

)

351

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

50,358

 

(1,251

)

108,686

 

16,344

 

Income tax provision (benefit)

 

17,850

 

(499

)

38,640

 

7,602

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

$

32,508

 

$

(752

)

$

70,046

 

$

8,742

 

(Loss) from discontinued operations, net of tax

 

$

 

$

(504

)

$

 

$

(504

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

32,508

 

$

(1,256

)

$

70,046

 

$

8,238

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, basic

 

$

0.28

 

$

(0.01

)

$

0.61

 

$

0.09

 

(Loss) from discontinued operations, basic

 

$

 

$

 

$

 

$

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), BASIC

 

$

0.28

 

$

(0.01

)

$

0.61

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, diluted

 

$

0.27

 

$

(0.01

)

$

0.57

 

$

0.07

 

(Loss) from discontinued operations, diluted

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), DILUTED

 

$

0.27

 

$

(0.01

)

$

0.57

 

$

0.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN COMPUTING NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

 

 

 

 

BASIC

 

115,808

 

103,183

 

114,587

 

99,926

 

 

 

 

 

 

 

 

 

 

 

DILUTED

 

125,919

 

103,183

 

125,650

 

117,576

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS):

 

 

 

 

 

 

 

 

 

Consolidated net income (loss)

 

$

32,508

 

$

(1,256

)

$

70,046

 

$

8,238

 

Unrealized holding gain on available-for-sale securities, net of tax of ($53) for the three month period ended June 30, 2015 and ($112) for the six month period ended June 30, 2015.

 

89

 

 

190

 

 

Foreign currency translation (loss) income, net of tax of $49 and $79 for the three month periods ended June 30, 2015 and 2014, respectively and ($984) and ($799) for the six months period ended June 30, 2015 and 2014, respectively.

 

(95

)

(153

)

1,913

 

1,552

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

 

$

32,502

 

$

(1,409

)

$

72,149

 

$

9,790

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third
Quarter

 

Third Quarter

 

YTD -Third
Quarter

 

YTD — Third
Quarter

 

 

 

2015

 

2014
(as Restated)

 

2015

 

2014
(as Restated)

 

Revenues

 

$

256,801

 

$

127,698

 

$

705,099

 

$

352,192

 

Cost of sales (exclusive of amortization of intangibles included below)

 

93,789

 

82,198

 

283,517

 

196,165

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

163,012

 

45,500

 

421,582

 

156,027

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

45,031

 

26,799

 

110,225

 

64,553

 

Acquisition-related costs

 

230

 

8,159

 

1,712

 

29,553

 

Research and development expenses

 

10,439

 

8,758

 

30,303

 

22,765

 

Amortization of intangibles

 

16,545

 

13,814

 

49,206

 

27,010

 

 

 

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

72,245

 

57,530

 

191,446

 

143,881

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

90,767

 

(12,030

)

230,136

 

12,146

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

(1,086

)

(2,272

)

(3,108

)

(8,869

)

Interest expense, net

 

(12,652

)

(11,804

)

(39,367

)

(21,880

)

Gain from product divestiture

 

 

847

 

 

9,337

 

Bargain purchase gain

 

 

 

849

 

 

Other non-operating income (expense), net

 

(3,014

)

1,012

 

(5,809

)

1,363

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

74,015

 

(24,247

)

182,701

 

(7,903

)

Income tax provision (benefit)

 

26,048

 

(11,914

)

64,688

 

(4,312

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

$

47,967

 

$

(12,333

)

$

118,013

 

$

(3,591

)

(Loss) from discontinued operations, net of tax

 

$

 

$

 

$

 

$

(504

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

47,967

 

$

(12,333

)

$

118,013

 

$

(4,095

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, basic

 

$

0.40

 

$

(0.12

)

$

1.02

 

$

(0.04

)

(Loss) from discontinued operations, basic

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), BASIC

 

$

0.40

 

$

(0.12

)

$

1.02

 

$

(0.04

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, diluted

 

$

0.39

 

$

(0.12

)

$

0.96

 

$

(0.04

)

(Loss) from discontinued operations, diluted

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), DILUTED

 

$

0.39

 

$

(0.12

)

$

0.96

 

$

(0.04

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN COMPUTING NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

 

 

 

 

BASIC

 

119,260

 

105,438

 

116,162

 

101,784

 

 

 

 

 

 

 

 

 

 

 

DILUTED

 

125,891

 

105,438

 

125,738

 

101,784

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS):

 

 

 

 

 

 

 

 

 

Consolidated net income (loss)

 

$

47,967

 

$

(12,333

)

$

118,013

 

$

(4,095

)

Unrealized holding gain on available-for-sale securities, net of tax of $163 and ($631) for the three month periods ended September 30, 2015 and 2014, respectively and ($51) and ($631) for the nine months period ended September 30, 2015 and 2014, respectively.

 

(277

)

1,070

 

(87

)

1,070

 

Foreign currency translation (loss) income, net of tax of $1,714 and $755 for the three month periods ended September 30, 2015 and 2014, respectively and $731 and ($44) for the nine months period ended September 30, 2015 and 2014, respectively.

 

(3,332

)

(1,466

)

(1,419

)

86

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

 

$

44,358

 

$

(12,729

)

$

116,507

 

$

(2,939

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth
Quarter

 

Fourth
Quarter

 

 

 

2015

 

2014
(As restated)

 

Revenues

 

$

279,977

 

$

202,856

 

Cost of sales (exclusive of amortization of intangibles included below)

 

105,547

 

97,523

 

 

 

 

 

 

 

GROSS PROFIT

 

174,430

 

105,333

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

51,980

 

28,402

 

Acquisition-related costs

 

129

 

3,287

 

Research and development expenses

 

10,404

 

8,491

 

Amortization of intangibles

 

17,066

 

16,483

 

Intangible impairment

 

30,376

 

 

 

 

 

 

 

 

TOTAL OPERATING EXPENSES

 

109,955

 

56,663

 

 

 

 

 

 

 

OPERATING INCOME

 

64,475

 

48,670

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

(1,175

)

(1,116

)

Interest expense, net

 

(12,606

)

(13,777

)

Gain (loss) from product divestiture

 

 

(40

)

Other non-operating income (expense), net

 

(1,239

)

(492

)

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

49,455

 

33,245

 

Income tax provision (benefit)

 

16,670

 

15,266

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

$

32,785

 

$

17,979

 

(Loss) from discontinued operations, net of tax

 

$

 

$

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

32,785

 

$

17,979

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

Income (loss) from continuing operations, basic

 

$

0.27

 

$

0.17

 

(Loss) from discontinued operations, basic

 

$

 

$

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), BASIC

 

$

0.27

 

$

0.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations, diluted

 

$

0.27

 

$

0.16

 

(Loss) from discontinued operations, diluted

 

$

 

$

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS), DILUTED

 

$

0.27

 

$

0.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHARES USED IN COMPUTING NET INCOME (LOSS) PER SHARE:

 

 

 

 

 

BASIC

 

119,390

 

108,515

 

 

 

 

 

 

 

DILUTED

 

125,698

 

124,491

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS):

 

 

 

 

 

Consolidated net income (loss)

 

$

32,785

 

$

17,979

 

Unrealized holding loss on available-for-sale securities, net of tax of ($113) and $1,294 for the three month periods ended December 31, 2015 and 2014, respectively.

 

191

 

(2,193

)

Foreign currency translation (loss) income, net of tax of $326 and $922 for the three month periods ended December 31, 2015 and 2014, respectively.

 

(632

)

(1,790

)

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

 

$

32,344

 

$

13,996

 

 

 

 

 

 

 

 

 

 

 

Schedule of Cash Flow Information [Table Text Block]

 

QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

 

 

 

Three Months Ended
March 31, 2014
(as Restated)

 

Three Months
Ended
March 31, 2013

 

OPERATING ACTIVITIES:

 

 

 

 

 

Consolidated net income

 

$

9,494

 

$

10,842

 

Loss from discontinued operations, net of tax

 

 

 

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

6,675

 

3,289

 

Amortization of deferred financing fees

 

226

 

204

 

Amortization of favorable (unfavorable) contracts

 

18

 

(159

)

Amortization of inventory step-up

 

 

 

Non-cash stock compensation expense

 

1,282

 

1,703

 

Non-cash interest expense

 

1,249

 

1,226

 

Deferred income taxes, net

 

(1,722

)

798

 

Excess tax benefit from stock compensation

 

(33

)

(238

)

Non-cash settlement of product warranty liability

 

 

 

Equity in earnings of unconsolidated joint venture

 

 

(76

)

Changes in operating assets and liabilities, net of business acquisitions:

 

 

 

 

 

Trade accounts receivable, net

 

(450

)

(7,958

 

Inventories, net

 

(5,987

)

(1,441

)

Prepaid expenses and other current assets

 

1,026

 

1,002

 

Trade accounts payable

 

6,100

 

(1,861

)

Accrued expenses and other liabilities

 

5,498

 

(409

)

 

 

 

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

23,376

 

6,922

 

INVESTING ACTIVITIES:

 

 

 

 

 

Payments for acquisitions and equity investments, net of cash acquired

 

(7,500

)

(269

)

Purchases of property, plant and equipment

 

(5,198

)

(2,689

)

Distributions from unconsolidated joint venture

 

 

 

 

 

 

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

 

(12,698

)

(2,958

)

FINANCING ACTIVITIES:

 

 

 

 

 

Proceeds from issuances of debt

 

 

 

Proceeds under stock option and stock purchase plans

 

1,022

 

868

 

Payments of contingent acquisition liabilities

 

 

 

Debt financing costs

 

(408

)

 

Proceeds from warrant exercises

 

 

 

Excess tax benefits from stock compensation

 

33

 

238

 

Debt repayment

 

 

 

 

 

 

 

 

 

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

647

 

1,106

 

 

 

 

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

 

103

 

12

 

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

11,428

 

5,082

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

 

34,178

 

40,781

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

45,606

 

$

45,863

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES:

 

 

 

 

 

Amount paid for interest

 

$

129

 

$

31

 

Amount paid for income taxes, net of refunds received

 

$

1,806

 

$

2

 

 

 

 

 

 

Six Months Ended
June 30, 2014
(as Restated)

 

Six Months Ended
June 30, 2013

 

OPERATING ACTIVITIES:

 

 

 

 

 

Consolidated net income

 

$

8,238

 

$

23,479

 

Loss from discontinued operations, net of tax

 

504

 

 

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

18,565

 

6,651

 

Amortization of deferred financing fees

 

6,599

 

411

 

Amortization of favorable (unfavorable) contracts

 

35

 

(318

)

Amortization of inventory step-up

 

3,559

 

 

Non-cash stock compensation expense

 

3,275

 

4,244

 

Non-cash interest expense

 

2,655

 

2,263

 

Non-cash gain on bargain purchase

 

 

 

Gain from product divestiture

 

(9,329

)

 

Deferred income taxes, net

 

(20,103

)

1,201

 

Excess tax benefit from stock compensation

 

(722

)

(745

)

Non-cash settlement of product warranty liability

 

 

(1,299

)

Equity in earnings of unconsolidated joint venture

 

 

(76

)

Loss on extinguishment of debt

 

 

 

Gain on sale of available for sale security

 

 

 

Changes in operating assets and liabilities, net of business acquisitions:

 

 

 

 

 

Trade accounts receivable, net

 

(13,716

)

(6,908

)

Inventories, net

 

(10,227

)

(4,428

)

Prepaid expenses and other current assets

 

55,636

 

538

 

Trade accounts payable

 

11,524

 

(151

)

Accrued expenses and other liabilities

 

(35,240

)

(3,464

)

 

 

 

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

21,253

 

21,398

 

INVESTING ACTIVITIES:

 

 

 

 

 

Payments for acquisitions and equity investments, net of cash acquired

 

(579,315

)

(513

)

Proceeds from disposal of assets

 

58,721

 

 

Payments for other intangible assets

 

(6,300

)

 

Purchases of property, plant and equipment

 

(11,912

)

(5,159

)

Distributions from unconsolidated joint venture

 

 

 

 

 

 

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

 

(538,806

)

(5,672

)

FINANCING ACTIVITIES:

 

 

 

 

 

Proceeds from issuances of debt

 

600,000

 

 

Proceeds under stock option and stock purchase plans

 

2,071

 

1,265

 

Payments of contingent acquisition liabilities

 

 

 

Debt financing costs

 

(19,775

)

 

Proceeds from warrant exercises

 

8,171

 

 

Excess tax benefits from stock compensation

 

722

 

745

 

Debt repayment

 

 

 

 

 

 

 

 

 

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

591,189

 

2,010

 

 

 

 

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

 

102

 

(105

)

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

73,738

 

17,631

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

 

34,178

 

40,871

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

107,916

 

$

58,412

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES:

 

 

 

 

 

Amount paid for interest

 

$

2,105

 

$

2,152

 

Amount paid for income taxes, net of refunds received

 

$

16,449

 

$

11,936

 

 

 

 

 

 

Nine Months Ended
September 30, 2014
(as Restated)

 

Nine Months Ended
September 30, 2013

 

OPERATING ACTIVITIES:

 

 

 

 

 

Consolidated net income (loss)

 

$

(4,095

)

$

35,684

 

Loss from discontinued operations, net of tax

 

504

 

 

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

37,270

 

9,925

 

Amortization of deferred financing fees

 

8,870

 

622

 

Amortization of favorable (unfavorable) contracts

 

53

 

(475

)

Amortization of inventory step-up

 

9,844

 

 

Non-cash stock compensation expense

 

5,065

 

5,674

 

Non-cash interest expense

 

3,955

 

3,426

 

Gain from product divestiture

 

(9,329

)

 

Deferred income taxes, net

 

(40,270

)

1,829

 

Excess tax benefit from stock compensation

 

(32,047

)

(1,192

)

Non-cash settlement of product warranty liability

 

 

(1,299

)

Equity in earnings of unconsolidated joint venture

 

 

(76

)

Loss on extinguishment of debt

 

 

 

Changes in operating assets and liabilities, net of business acquisitions:

 

 

 

 

 

Trade accounts receivable, net

 

(9,821

)

(10,858

)

Inventories, net

 

(14,037

)

(4,575

)

Prepaid expenses and other current assets

 

41,078

 

867

 

Trade accounts payable

 

1,888

 

1,444

 

Accrued expenses and other liabilities

 

14,429

 

1,414

 

 

 

 

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

13,357

 

42,410

 

INVESTING ACTIVITIES:

 

 

 

 

 

Payments for acquisitions and equity investments, net of cash acquired

 

(929,772

)

(513

)

Proceeds from disposal of assets

 

58,750

 

 

Payments for other intangible assets

 

(8,498

)

 

Purchases of property, plant and equipment

 

(17,778

)

(7,936

)

Distributions from unconsolidated joint venture

 

 

 

 

 

 

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

 

(897,298

)

(8,449

)

FINANCING ACTIVITIES:

 

 

 

 

 

Proceeds from issuances of debt

 

1,045,044

 

 

Proceeds under stock option and stock purchase plans

 

6,867

 

2,439

 

Payments of contingent acquisition liabilities

 

 

 

Debt financing costs

 

(28,365

)

(2,557

)

Proceeds from warrant exercises

 

8,171

 

 

Excess tax benefits from stock compensation

 

32,047

 

1,192

 

Debt repayment

 

(82,436

)

 

 

 

 

 

 

 

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

981,328

 

1,074

 

 

 

 

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

 

(99

)

(218

)

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

97,288

 

34,817

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

 

34,178

 

40,781

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

131,466

 

$

75,598

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES

 

 

 

 

 

Amount paid for interest

 

$

8,944

 

$

2,178

 

Amount paid for income taxes, net of refunds received

 

$

6,226

 

$

18,690

 

 

 

 

 

 

Three Months
Ended
March 31, 2015

 

Three Months
Ended
March 31, 2014

(as Restated)

 

OPERATING ACTIVITIES:

 

 

 

 

 

Consolidated net income

 

$

37,538

 

$

9,494

 

Loss from discontinued operations, net of tax

 

 

 

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

21,109

 

6,675

 

Amortization of deferred financing fees

 

997

 

226

 

Amortization of favorable (unfavorable) contracts

 

18

 

18

 

Amortization of inventory step-up

 

4,682

 

 

Non-cash stock compensation expense

 

2,974

 

1,282

 

Non-cash interest expense

 

1,186

 

1,249

 

Non-cash gain on bargain purchase

 

(849

)

 

Gain from product divestiture

 

 

 

Deferred income taxes, net

 

(9,186)

 

(1,722

)

Excess tax benefit from stock compensation

 

(29,944

)

(33

)

Loss on extinguishment of debt

 

98

 

 

Gain on sale of available for sale security

 

146

 

 

Changes in operating assets and liabilities, net of business acquisitions:

 

 

 

 

 

Trade accounts receivable, net

 

384

 

(450

)

Inventories, net

 

(14,559

)

(5,987

)

Prepaid expenses and other current assets

 

2,896

 

1,026

 

Trade accounts payable

 

7,916

 

6,100

 

Accrued expenses and other liabilities

 

19,860

 

5,498

 

 

 

 

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

45,266

 

23,376

 

INVESTING ACTIVITIES:

 

 

 

 

 

Payments for acquisitions and equity investments, net of cash acquired

 

(24,637

)

(7,500

)

Proceeds from disposal of assets

 

2,358

 

 

Payments for other intangible assets

 

 

 

Purchases of property, plant and equipment

 

(7,088

)

(5,198

)

Distributions from unconsolidated joint venture

 

 

 

 

 

 

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

 

(29,367

)

(12,698

)

FINANCING ACTIVITIES:

 

 

 

 

 

Proceeds from issuances of debt

 

 

 

Proceeds under stock option and stock purchase plans

 

10,958

 

1,022

 

Payments of contingent acquisition liabilities

 

(1,500

)

 

Debt financing costs

 

 

(408

)

Proceeds from warrant exercises

 

 

 

Excess tax benefits from stock compensation

 

29,944

 

33

 

Debt repayment

 

(2,613

)

 

 

 

 

 

 

 

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

36,789

 

647

 

 

 

 

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

 

165

 

103

 

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

52,853

 

11,428

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

 

70,679

 

34,178

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

123,532

 

$

45,606

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES

 

 

 

 

 

Amount paid for interest

 

$

11,836

 

$

129

 

Amount paid for income taxes, net of refunds received

 

$

238

 

$

1,806

 

 

 

 

 

 

Six Months Ended
June 30, 2015

 

Six Months Ended
June 30, 2014
(as Restated)

 

OPERATING ACTIVITIES:

 

 

 

 

 

Consolidated net income

 

$

70,046

 

$

8,238

 

Loss from discontinued operations, net of tax

 

 

504

 

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

44,742

 

18,565

 

Amortization of deferred financing fees

 

2,490

 

6,599

 

Amortization of favorable (unfavorable) contracts

 

35

 

35

 

Amortization of inventory step-up

 

4,682

 

3,559

 

Non-cash stock compensation expense

 

6,062

 

3,275

 

Non-cash interest expense

 

1,889

 

2,655

 

Non-cash gain on bargain purchase

 

(849

)

 

Gain from product divestiture

 

 

(9,329

)

Deferred income taxes, net

 

(18,288

)

(20,103

)

Excess tax benefit from stock compensation

 

(47,997

)

(722

)

Loss on extinguishment of debt

 

1,189

 

 

Gain on sale of available for sale security

 

230

 

 

Changes in operating assets and liabilities, net of business acquisitions:

 

 

 

 

 

Trade accounts receivable, net

 

60,449

 

(13,716

)

Inventories, net

 

(21,356

)

(10,227

)

Prepaid expenses and other current assets

 

21,452

 

55,636

 

Trade accounts payable

 

(3,623

)

11,524

 

Accrued expenses and other liabilities

 

59,896

 

(35,240

)

 

 

 

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

181,049

 

21,253

 

INVESTING ACTIVITIES:

 

 

 

 

 

Payments for acquisitions and equity investments, net of cash acquired

 

(27,136

)

(579,315

)

Proceeds from disposal of assets

 

2,372

 

58,721

 

Payments for other intangible assets

 

(800

)

(6,300

)

Purchases of property, plant and equipment

 

(15,600

)

(11,912

)

Distributions from unconsolidated joint venture

 

 

 

 

 

 

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

 

(41,164

)

(538,806

)

FINANCING ACTIVITIES:

 

 

 

 

 

Proceeds from issuances of debt

 

 

600,000

 

Proceeds under stock option and stock purchase plans

 

11,916

 

2,071

 

Payments of contingent acquisition liabilities

 

(6,492

)

 

Debt financing costs

 

(1,714

)

(19,775

)

Proceeds from warrant exercises

 

 

8,171

 

Excess tax benefits from stock compensation

 

47,997

 

722

 

Debt repayment

 

(5,225

)

 

 

 

 

 

 

 

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

46,482

 

591,189

 

 

 

 

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

 

44

 

102

 

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

186,411

 

73,738

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

 

70,679

 

34,178

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

257,090

 

$

107,916

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE

 

 

 

 

 

Amount paid for interest

 

$

25,222

 

$

2,105

 

Amount paid (refunded) for income taxes, net of refunds received

 

$

(12,753

)

$

16,449

 

 

 

 

 

 

Nine Months Ended
September 30, 2015

 

Nine Months Ended
September 30, 2014
(as Restated)

 

OPERATING ACTIVITIES:

 

 

 

 

 

Consolidated net income (loss)

 

$

118,013

 

$

(4,095

)

Loss from discontinued operations, net of tax

 

 

504

 

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

63,835

 

37,270

 

Impairment of intangible assets

 

2,627

 

 

Amortization of deferred financing fees

 

3,576

 

8,870

 

Amortization of favorable (unfavorable) contracts

 

53

 

53

 

Amortization of inventory step-up

 

4,682

 

9,844

 

Non-cash stock compensation expense

 

9,270

 

5,065

 

Non-cash interest expense

 

2,342

 

3,955

 

Non-cash gain on bargain purchase

 

(849

)

 

Gain from product divestiture

 

 

(9,329

)

Deferred income taxes, net

 

(27,579

)

(40,270

)

Excess tax benefit from stock compensation

 

(47,997

)

(32,047

)

Loss on extinguishment of debt

 

1,211

 

 

Gain on sale of available for sale security

 

238

 

 

Changes in operating assets and liabilities, net of business acquisitions:

 

 

 

 

 

Trade accounts receivable, net

 

52,056

 

(9,821

)

Inventories, net

 

(41,177

)

(14,037

)

Prepaid expenses and other current assets

 

15,442

 

41,078

 

Trade accounts payable

 

9,357

 

1,888

 

Accrued expenses and other liabilities

 

86,999

 

14,429

 

 

 

 

 

 

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

252,099

 

13,357

 

INVESTING ACTIVITIES:

 

 

 

 

 

Payments for acquisitions and equity investments, net of cash acquired

 

(26,908

)

(929,772

)

Proceeds from disposal of assets

 

2,459

 

58,750

 

Payments for other intangible assets

 

(3,135

)

(8,498

)

Purchases of property, plant and equipment

 

(21,628

)

(17,778

)

Distributions from unconsolidated joint venture

 

 

 

 

 

 

 

 

 

NET CASH USED IN INVESTING ACTIVITIES

 

(49,212

)

(897,298

)

FINANCING ACTIVITIES:

 

 

 

 

 

Proceeds from issuances of debt

 

 

1,045,044

 

Proceeds under stock option and stock purchase plans

 

11,917

 

6,867

 

Payments of contingent acquisition liabilities

 

(6,492

)

 

Debt financing costs

 

(4,457

)

(28,365

)

Proceeds from warrant exercises

 

 

8,171

 

Excess tax benefits from stock compensation

 

47,997

 

32,047

 

Debt repayment

 

(7,838

)

(82,436

)

 

 

 

 

 

 

NET CASH PROVIDED BY FINANCING ACTIVITIES

 

41,127

 

981,328

 

 

 

 

 

 

 

Effect of changes in exchange rates on cash and cash equivalents

 

(228

)

(99

)

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

243,786

 

97,288

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

 

70,679

 

34,178

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

314,465

 

$

131,466

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE

 

 

 

 

 

Amount paid for interest

 

$

38,614

 

$

8,944

 

Amount paid (refunded) for income taxes, net of refunds received

 

$

(4,064

)

$

6,226

 

 

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

 

The following table summarizes the basis used to measure the fair values of the Company’s financial instruments (amounts in thousands):

 

 

 

 

 

Fair Value Measurements at Reporting Date, Using:

 

 

 

 

 

Quoted Prices

 

Significant

 

 

 

 

 

 

 

in Active

 

Other

 

Significant

 

 

 

 

 

Markets for

 

Observable

 

Unobservable

 

 

 

March 31,

 

Identical Items

 

Inputs

 

Inputs

 

Description

 

2014

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Cash and cash equivalents

 

$

45,606 

 

$

45,606 

 

$

 

$

 

Foreign currency forward contracts

 

787 

 

 

787 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

46,393 

 

$

45,606 

 

$

787 

 

$

 

 

 

 

 

 

 

 

 

 

 

Purchase consideration payable

 

$

18,898 

 

$

 

$

 

$

18,898 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

18,898 

 

$

 

$

 

$

18,898 

 

 

 

 

 

 

Quoted Prices

 

Significant

 

 

 

 

 

 

 

in Active

 

Other

 

Significant

 

 

 

 

 

Markets for

 

Observable

 

Unobservable

 

 

 

December 31,

 

Identical Items

 

Inputs

 

Inputs

 

Description

 

2013

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Cash and cash equivalents

 

$

34,178 

 

$

34,178 

 

$

 

$

 

Foreign currency forward contracts

 

208 

 

 

208 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

34,386 

 

$

34,178 

 

$

208 

 

$

 

 

 

 

 

 

 

 

 

 

 

Purchase consideration payable

 

$

14,728 

 

$

 

$

 

$

14,728 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

14,728 

 

$

 

$

 

$

14,728 

 

 

 

The following table summarizes the basis used to measure the fair values of the Company’s financial instruments (amounts in thousands):

 

 

 

 

 

Fair Value Measurements at Reporting Date, Using:

 

 

 

 

 

Quoted Prices

 

Significant

 

 

 

 

 

 

 

in Active

 

Other

 

Significant

 

 

 

 

 

Markets for

 

Observable

 

Unobservable

 

 

 

June 30,

 

Identical Items

 

Inputs

 

Inputs

 

Description

 

2014

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Cash and cash equivalents

 

$

107,916 

 

$

107,916 

 

$

 

$

 

Foreign currency forward contracts

 

630 

 

 

630 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

108,546 

 

$

107,916 

 

$

630 

 

$

 

 

 

 

 

 

 

 

 

 

 

Purchase consideration payable

 

$

24,003 

 

$

 

$

 

$

24,003 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

24,003 

 

$

 

$

 

$

24,003 

 

 

 

 

 

 

Quoted Prices

 

Significant

 

 

 

 

 

 

 

in Active

 

Other

 

Significant

 

 

 

 

 

Markets for

 

Observable

 

Unobservable

 

 

 

December 31,

 

Identical Items

 

Inputs

 

Inputs

 

Description

 

2013

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Cash and cash equivalents

 

$

34,178 

 

$

34,178 

 

$

 

$

 

Foreign currency forward contracts

 

208 

 

 

208 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

34,386 

 

$

34,178 

 

$

208 

 

$

 

 

 

 

 

 

 

 

 

 

 

Purchase consideration payable

 

$

14,728 

 

$

 

$

 

$

14,728 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

14,728 

 

$

 

$

 

$

14,728 

 

 

 

 

The following table summarizes the basis used to measure the fair values of the Company’s financial instruments (amounts in thousands):

 

 

 

Fair Value Measurements at Reporting Date, Using:

 

 

 

 

 

Quoted Prices

 

Significant

 

 

 

 

 

 

 

in Active

 

Other

 

Significant

 

 

 

 

 

Markets for

 

Observable

 

Unobservable

 

 

 

September 30,

 

Identical Items

 

Inputs

 

Inputs

 

Description

 

2014

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Cash and cash equivalents

 

$

131,466 

 

$

131,466 

 

$

 

$

 

Available-for-sale securities

 

12,458 

 

 

 

12,458 

 

Foreign currency forward contracts

 

279 

 

 

279 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

144,203 

 

$

131,466 

 

$

279 

 

$

12,458 

 

 

 

 

 

 

 

 

 

 

 

Purchase consideration payable

 

$

24,347 

 

$

 

$

 

$

24,347 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

24,347 

 

$

 

$

 

$

24,347 

 

 

 

 

 

 

Quoted Prices

 

Significant

 

 

 

 

 

 

 

in Active

 

Other

 

Significant

 

 

 

 

 

Markets for

 

Observable

 

Unobservable

 

 

 

December 31,

 

Identical Items

 

Inputs

 

Inputs

 

Description

 

2013

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Cash and cash equivalents

 

$

34,178 

 

$

34,178 

 

$

 

$

 

Foreign currency forward contracts

 

208 

 

 

208 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

34,386 

 

$

34,178 

 

$

208 

 

$

 

 

 

 

 

 

 

 

 

 

 

Purchase consideration payable

 

$

14,728 

 

$

 

$

 

$

14,728 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

14,728 

 

$

 

$

 

$

14,728 

 

 

 

The following table summarizes the basis used to measure the fair values of the Company’s financial instruments (amounts in thousands):

 

 

 

 

 

Fair Value Measurements at Reporting Date, Using:

 

 

 

 

 

Quoted Prices

 

Significant

 

 

 

 

 

 

 

in Active

 

Other

 

Significant

 

 

 

 

 

Markets for

 

Observable

 

Unobservable

 

 

 

March 31,

 

Identical Items

 

Inputs

 

Inputs

 

Description

 

2015

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Cash and cash equivalents

 

$

123,532 

 

$

123,532 

 

$

 

$

 

Available-for-sale securities

 

6,047 

 

3,259 

 

 

2,788 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

129,579 

 

$

126,791 

 

$

 

$

2,788 

 

 

 

 

 

 

 

 

 

 

 

Purchase consideration payable

 

$

12,443 

 

$

 

$

 

$

12,443 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

12,443 

 

$

 

$

 

$

12,443 

 

 

 

 

 

 

Quoted Prices

 

Significant

 

 

 

 

 

 

 

in Active

 

Other

 

Significant

 

 

 

 

 

Markets for

 

Observable

 

Unobservable

 

 

 

December 31,

 

Identical Items

 

Inputs

 

Inputs

 

Description

 

2014

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Cash and cash equivalents

 

$

70,679 

 

$

70,679 

 

$

 

$

 

Available-for-sale securities

 

8,391 

 

 

 

8,391 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

79,070 

 

$

70,679 

 

$

 

$

8,391 

 

 

 

 

 

 

 

 

 

 

 

Purchase consideration payable

 

$

11,101 

 

$

 

$

 

$

11,101 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

11,101 

 

$

 

$

 

$

11,101 

 

 

 

The following table summarizes the basis used to measure the fair values of the Company’s financial instruments (amounts in thousands):

 

 

 

 

 

Fair Value Measurements at Reporting Date, Using:

 

 

 

 

 

Quoted Prices

 

Significant

 

 

 

 

 

 

 

in Active

 

Other

 

Significant

 

 

 

 

 

Markets for

 

Observable

 

Unobservable

 

 

 

June 30,

 

Identical Items

 

Inputs

 

Inputs

 

Description

 

2015

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Cash and cash equivalents

 

$

257,090 

 

$

257,090 

 

$

 

$

 

Available-for-sale securities

 

6,173 

 

4,991 

 

 

1,182 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

263,263 

 

$

262,081 

 

$

 

$

1,182 

 

 

 

 

 

 

 

 

 

 

 

Purchase consideration payable

 

$

4,954 

 

$

 

$

 

$

4,954 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

4,954 

 

$

 

$

 

$

4,954 

 

 

 

 

 

 

Quoted Prices

 

Significant

 

 

 

 

 

 

 

in Active

 

Other

 

Significant

 

 

 

 

 

Markets for

 

Observable

 

Unobservable

 

 

 

December 31,

 

Identical Items

 

Inputs

 

Inputs

 

Description

 

2014

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Cash and cash equivalents

 

$

70,679 

 

$

70,679 

 

$

 

$

 

Available-for-sale securities

 

8,391 

 

 

 

8,391 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

79,070 

 

$

70,679 

 

$

 

$

8,391 

 

 

 

 

 

 

 

 

 

 

 

Purchase consideration payable

 

$

11,101 

 

$

 

$

 

$

11,101 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

11,101 

 

$

 

$

 

$

11,101 

 

 

 

 

The following table summarizes the basis used to measure the fair values of the Company’s financial instruments (amounts in thousands):

 

 

 

 

 

Fair Value Measurements at Reporting Date, Using:

 

 

 

 

 

Quoted Prices

 

Significant

 

 

 

 

 

 

 

in Active

 

Other

 

Significant

 

 

 

 

 

Markets for

 

Observable

 

Unobservable

 

 

 

September 30,

 

Identical Items

 

Inputs

 

Inputs

 

Description

 

2015

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Cash and cash equivalents

 

$

314,465 

 

$

314,465 

 

$

 

$

 

Available-for-sale securities

 

5,637 

 

4,569 

 

 

1,068 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

320,102 

 

$

319,034 

 

$

 

$

1,068 

 

 

 

 

 

 

 

 

 

 

 

Purchase consideration payable

 

$

4,961 

 

$

 

$

 

$

4,961 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

4,961 

 

$

 

$

 

$

4,961 

 

 

 

 

 

 

Quoted Prices

 

Significant

 

 

 

 

 

 

 

in Active

 

Other

 

Significant

 

 

 

 

 

Markets for

 

Observable

 

Unobservable

 

 

 

December 31,

 

Identical Items

 

Inputs

 

Inputs

 

Description

 

2014

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Cash and cash equivalents

 

$

70,679 

 

$

70,679 

 

$

 

$

 

Available-for-sale securities

 

8,391 

 

 

 

8,391 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

79,070 

 

$

70,679 

 

$

 

$

8,391 

 

 

 

 

 

 

 

 

 

 

 

Purchase consideration payable

 

$

11,101 

 

$

 

$

 

$

11,101 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

$

11,101 

 

$

 

$

 

$

11,101 

 

 

Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block]

 

The following table sets forth the components of the Company’s stock-based compensation expense for the three month periods ended March 31, 2014 and 2013 (in thousands):

 

 

 

Three months ended
March 31,

 

 

 

2014

 

2013

 

Stock options and employee stock purchase plan

 

1,221 

 

1,639 

 

Restricted stock units

 

61 

 

64 

 

 

 

 

 

 

 

Total stock-based compensation expense

 

1,282 

 

1,703 

 

 

 

 

 

 

 

 

 

The following table sets forth the components of the Company’s stock-based compensation expense for the three and six month periods ended June 30, 2014 and 2013 (in thousands):

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Stock options and employee stock purchase plan

 

$
1,900 

$

2,191 

$

3,122 

$

3,830 

 

Restricted stock units

 

92 

 

350 

 

153 

 

414 

 

 

 

 

 

 

 

 

 

 

 

Total stock-based compensation expense

 

$
1,992 

$

2,541 

$

3,275 

$

4,244 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table sets forth the components of the Company’s stock-based compensation expense for the three and nine month periods ended September 30, 2014 and 2013 (in thousands):

 

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Stock options and employee stock purchase plan

 

$

1,505 

 

1,326 

 

4,627 

 

5,156 

 

Restricted stock units

 

285 

 

104 

 

438 

 

518 

 

 

 

 

 

 

 

 

 

 

 

Total stock-based compensation expense

 

1,790 

 

1,430 

 

5,065 

 

5,674 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table sets forth the components of the Company’s stock-based compensation expense for the three month periods ended March 31, 2015 and 2014 (in thousands):

 

 

 

Three months ended
March 31,

 

 

 

2015

 

2014

 

Stock options and employee stock purchase plan

 

$

2,252 

 

$

1,221 

 

Restricted stock units

 

722 

 

61 

 

 

 

 

 

 

 

Total stock-based compensation expense

 

$

2,974 

 

$
1,282 

 

 

 

 

 

 

 

 

 

The following table sets forth the components of the Company’s stock-based compensation expense for the three and six month periods ended June 30, 2015 and 2014 (in thousands):

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

Stock options and employee stock purchase plan

 

$

2,415 

 

$

1,900 

 

$

4,667 

 

$

3,122 

 

Restricted stock units

 

742 

 

92 

 

1,464 

 

153 

 

 

 

 

 

 

 

 

 

 

 

Total stock-based compensation expense

 

$

3,157 

 

$

1,992 

 

$

6,131 

 

$

3,275 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table sets forth the components of the Company’s stock-based compensation expense for the three and nine month periods ended September 30, 2015 and 2014 (in thousands):

 

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

Stock options and employee stock purchase plan

 

$

2,231 

 

$

1,505 

 

$

6,898 

 

$

4,627 

 

Restricted stock units

 

1,110 

 

285 

 

2,573 

 

438 

 

 

 

 

 

 

 

 

 

 

 

Total stock-based compensation expense

 

$

3,341 

 

$

1,790 

 

$

9,471 

 

$

5,065 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

 

 

 

Three months ended
March 31,

 

 

 

2014

 

2013

 

Expected volatility

 

 

68 

%

Expected life (in years)

 

 

4.0 

 

Risk-free interest rate

 

 

0.84 

%

Dividend yield

 

 

 

Fair value per stock option

 

 

$

6.56 

 

Forfeiture rate

 

 

%

 

 

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Expected volatility

 

54 

%

58 

%

54 

%

59 

%

Expected life (in years)

 

4.2 

 

4.0 

 

4.2 

 

4.0 

 

Risk-free interest rate

 

1.79 

%

0.73 

%

1.79 

%

0.74 

%

Dividend yield

 

 

 

 

 

Fair value per stock option

 

$

10.77 

 

$

6.81 

 

$

10.77 

 

$

6.77 

 

Forfeiture rate

 

%

%

%

%

 

 

 

 

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Expected volatility

 

70 

%

N/A

 

58 

%

59 

%

Expected life (in years)

 

4.0 

 

N/A

 

4.2 

 

4.0 

 

Risk-free interest rate

 

2.16 

%

N/A

 

1.88 

%

0.74 

%

Dividend yield

 

%

N/A

 

%

%

Fair value per stock option

 

$

18.34 

 

N/A

 

$

12.54 

 

$

6.77 

 

Forfeiture rate

 

%

N/A

 

%

%

 

 

 

 

 

Three months ended
March 31,

 

 

 

2015

 

2014

 

Expected volatility

 

42 

%

 

Expected life (in years)

 

4.75 

 

 

Risk-free interest rate

 

1.56 

%

 

Dividend yield

 

 

 

Fair value per stock option

 

$

18.21 

 

 

Forfeiture rate

 

%

 

 

 

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

Expected volatility

 

44 

%

54 

%

43 

%

54 

%

Expected life (in years)

 

4.77 

 

4.2 

 

4.76 

 

4.2 

 

Risk-free interest rate

 

1.56 

%

1.79 

%

1.53 

%

1.79 

%

Dividend yield

 

 

 

 

 

Fair value per stock option

 

$

16.87 

 

$

10.77 

 

$

17.62 

 

$

10.77 

 

Forfeiture rate

 

%

%

%

%

 

 

 

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

 

2015

 

2014

 

2015

 

2014

 

Expected volatility

 

43 

%

70 

%

43 

%

58 

%

Expected life (in years)

 

4.75 

 

4.0 

 

4.76 

 

4.2 

 

Risk-free interest rate

 

1.54 

%

2.16 

%

1.54 

%

1.88 

%

Dividend yield

 

 

 

 

 

Fair value per stock option

 

$

17.73 

 

$

18.34 

 

$

17.63 

 

$

12.54 

 

Forfeiture rate

 

%

%

%

%

 

Schedule of Share-based Compensation, Activity [Table Text Block]

 

The table below sets forth a summary of activity within the 2014 and 2003 Plans for the three months ended March 31, 2014:

 

 

 

Number of
Options
(in thousands)

 

Weighted
Average
Exercise Price

 

Weighted
Average
Remaining
Contractual
Term (Years)

 

Aggregate
Intrinsic Value
(in thousands)
(1)

 

Outstanding at December 31, 2013

 

9,228

 

$

4.45

 

1.61

 

$

186,169

 

Granted

 

 

 

 

 

 

 

Exercised

 

(56

)

3.54

 

 

 

 

 

Forfeited

 

(5

)

12.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at March 31, 2014

 

9,167

 

$

4.45

 

1.36

 

$

160,919

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at March 31, 2014

 

7,622

 

$

3.13

 

1.04

 

$

143,860

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

May include value from potentially anti-dilutive options whose exercise price exceeds the closing stock price.

 

 

The table below sets forth a summary of activity within the 2014 and 2003 Plans for the six months ended June 30, 2014:

 

 

 

Number of
Options
(in thousands)

 

Weighted
Average
Exercise Price

 

Weighted
Average
Remaining
Contractual
Term (Years)

 

Aggregate
Intrinsic Value
(in thousands)
(1)

 

Outstanding at December 31, 2013

 

9,228

 

$

4.45

 

1.61

 

$

186,169

 

Granted

 

991

 

24.75

 

 

 

 

 

Exercised

 

(238

)

5.26

 

 

 

 

 

Forfeited

 

(19

)

15.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at June 30, 2014

 

9,962

 

$

6.42

 

2.75

 

$

267,200

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at June 30, 2014

 

8,136

 

$

3.47

 

2.24

 

$

242,324

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

May include value from potentially anti-dilutive options whose exercise price exceeds the closing stock price.

 

 

 

The table below sets forth a summary of activity within the 2014 and 2003 Plans for the nine months ended September 30, 2014:

 

 

 

Number of
Options
(in thousands)

 

Weighted 
Average 
Exercise Price

 

Weighted 
Average 
Remaining 
Contractual 
Term (Years)

 

Aggregate
Intrinsic Value 
(in thousands) 
(1)

 

Outstanding at December 31, 2013

 

9,228

 

$

4.45

 

1.61

 

$

186,169

 

Granted

 

1,295

 

26.92

 

 

 

 

 

Exercised

 

(3,481

)

1.74

 

 

 

 

 

Forfeited

 

(43

)

19.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at September 30, 2014

 

6,999

 

$

9.86

 

3.02

 

$

184.869

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at September 30, 2014

 

4,998

 

$

4.92

 

1.97

 

$

156,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

May include value from potentially anti-dilutive options whose exercise price exceeds the closing stock price.

 

 

The table below sets forth a summary of activity within the 2014 and 2003 Plans for the three months ended March 31, 2015:

 

 

 

Number of
Options
(in thousands)

 

Weighted
Average
Exercise Price

 

Weighted
Average
Remaining
Contractual
Term (Years)

 

Aggregate
Intrinsic Value
(in thousands)
(1)

 

Outstanding at December 31, 2014

 

6,386

 

$

11.44

 

2.48

 

$

158,097

 

Granted

 

297

 

48.05

 

 

 

 

 

Exercised

 

(2,222

)

4.17

 

 

 

 

 

Forfeited

 

(63

)

35.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at March 31, 2015

 

4,398

 

$

17.28

 

3.35

 

$

132,985

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at March 31, 2015

 

2,173

 

$

7.01

 

1.08

 

$

87,991

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

May include value from potentially anti-dilutive options whose exercise price exceeds the closing stock price.

 

 

 

The table below sets forth a summary of activity within the 2014 and 2003 Plans for the six months ended June 30, 2015:

 

 

 

Number of
Options
(in thousands)

 

Weighted
Average
Exercise Price

 

Weighted
Average
Remaining
Contractual
Term (Years)

 

Aggregate
Intrinsic Value
(in thousands)
(1)

 

Outstanding at December 31, 2014

 

6,386

 

$

11.44

 

2.48

 

$

158,097

 

Granted

 

520

 

45.88

 

 

 

 

 

Exercised

 

(2,513

)

4.07

 

 

 

 

 

Forfeited

 

(81

)

33.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at June 30, 2015

 

4,312

 

$

19.50

 

3.49

 

$

104,178

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at June 30, 2015

 

2,277

 

$

10.07

 

1.55

 

$

76,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

May include value from potentially anti-dilutive options whose exercise price exceeds the closing stock price.

 

 

 

The table below sets forth a summary of activity within the 2014 and 2003 Plans for the nine months ended September 30, 2015:

 

 

 

Number of
Options
(in thousands)

 

Weighted
Average
Exercise Price

 

Weighted
Average
Remaining
Contractual
Term (Years)

 

Aggregate
Intrinsic Value
(in thousands)
(1)

 

Outstanding at December 31, 2014

 

6,386

 

$

11.44

 

2.48

 

$

158,097

 

Granted

 

577

 

45.91

 

 

 

 

 

Exercised

 

(2,519

)

4.09

 

 

 

 

 

Forfeited

 

(106

)

34.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding at September 30, 2015

 

4,338

 

$

19.75

 

3.31

 

$

38,007

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable at September 30, 2015

 

2,419

 

$

10.88

 

1.62

 

$

42,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

May include value from potentially anti-dilutive options whose exercise price exceeds the closing stock price.

 

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

 

 

 

Number of Units

 

Weighted Average

 

 

 

(in thousands)

 

Grant Date Fair Value

 

Non-vested at December 31, 2013

 

16 

 

$

15.36 

 

Granted

 

 

 

Forfeited

 

 

 

Vested

 

 

 

 

 

 

 

 

 

Non-vested at March 31, 2014

 

16 

 

$

15.36 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Units

 

Weighted Average

 

 

 

(in thousands)

 

Grant Date Fair Value

 

Non-vested at December 31, 2013

 

16

 

$

15.36

 

Granted

 

72

 

24.74

 

Forfeited

 

 

 

Vested

 

(16

)

15.36

 

 

 

 

 

 

 

Non-vested at June 30, 2014

 

72

 

$

24.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Units

 

Weighted Average

 

 

 

(in thousands)

 

Grant Date Fair Value

 

Non-vested at December 31, 2013

 

16

 

$

15.36

 

Granted

 

337

 

27.54

 

Forfeited

 

 

 

Vested

 

(16

)

15.36

 

 

 

 

 

 

 

Non-vested at September 30, 2014

 

337

 

$

27.54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Units

 

Weighted Average

 

 

 

(in thousands)

 

Grant Date Fair Value

 

Non-vested at December 31, 2014

 

337 

 

$

35.31 

 

Granted

 

 

 

Forfeited

 

 

 

Vested

 

 

 

 

 

 

 

 

 

Non-vested at March 31, 2015

 

337 

 

$

35.31 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Units

 

Weighted Average

 

 

 

(in thousands)

 

Grant Date Fair Value

 

Non-vested at December 31, 2014

 

337

 

$

35.31

 

Granted

 

 

 

Forfeited

 

 

 

Vested

 

(18

)

24.74

 

 

 

 

 

 

 

Non-vested at June 30, 2015

 

319

 

$

35.90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Units

 

Weighted Average

 

 

 

(in thousands)

 

Grant Date Fair Value

 

Non-vested at December 31, 2014

 

337

 

$

35.31

 

Granted

 

 

 

Forfeited

 

 

 

Vested (1)

 

(84

)

35.31

 

 

 

 

 

 

 

Non-vested at September 30, 2015

 

253

 

$

35.31

 

 

 

 

 

 

 

 

 

 

(1)

As a result of the delay in filing the 2015 financials, approximately 66,000 units of vested restricted stock has not yet been released to grantees as of and for the year to date period ended September 30, 2015.

 

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

 

Net trade accounts receivable consists of the following (in thousands):

 

 

 

MARCH 31,

 

DECEMBER 31,

 

 

 

2014

 

2013

 

Gross accounts receivable

 

$

93,201

 

$

88,165

 

Less reserves for:

 

 

 

 

 

Chargebacks and rebates

 

(18,095

)

(12,882

)

Product returns

 

(7,378

)

(8,164

)

Discounts and allowances

 

(1,798

)

(1,644

)

Advertising and promotions

 

(391

)

(452

)

Doubtful accounts

 

(39

)

(25

)

 

 

 

 

 

 

Trade accounts receivable, net

 

$

65,500

 

$

64,998

 

 

 

 

 

 

 

 

 

 

 

Net trade accounts receivable consists of the following (in thousands):

 

 

 

JUNE 30,

 

 

 

 

 

2014
(As restated)

 

DECEMBER 31,
2013

 

Gross accounts receivable

 

$

213,392

 

$

88,165

 

Less reserves for:

 

 

 

 

 

Chargebacks and rebates

 

(58,312

)

(12,882

)

Product returns

 

(20,492

)

(8,164

)

Discounts and allowances

 

(5,155

)

(1,644

)

Advertising and promotions

 

(566

)

(452

)

Doubtful accounts

 

(93

)

(25

)

 

 

 

 

 

 

Trade accounts receivable, net

 

$

128,774

 

$

64,998

 

 

 

 

 

 

 

 

 

 

 

 

Net trade accounts receivable consists of the following (in thousands):

 

 

 

 

SEPTEMBER 30,

 

 

 

 

 

2014
(As restated)

 

DECEMBER 31,
2013

 

Gross accounts receivable

 

$

293,113

 

$

88,165

 

Less reserves for:

 

 

 

 

 

Chargebacks and rebates

 

(116,997

)

(12,882

)

Product returns

 

(38,266

)

(8,164

)

Discounts and allowances

 

(8,753

)

(1,644

)

Advertising and promotions

 

(1,031

)

(452

)

Doubtful accounts

 

(94

)

(25

)

 

 

 

 

 

 

Trade accounts receivable, net

 

$

127,972

 

$

64,998

 

 

 

 

 

 

 

 

 

 

 

 

Net trade accounts receivable consists of the following (in thousands):

 

 

 

 

 

DECEMBER 31,

 

 

 

MARCH 31,
2015

 

2014
(as Restated)

 

Gross accounts receivable

 

$

414,757

 

$

446,925

 

Less reserves for:

 

 

 

 

 

Chargebacks and rebates

 

(162,249

)

(198,112

)

Product returns

 

(47,578

)

(44,646

)

Discounts and allowances

 

(13,503

)

(15,554

)

Advertising and promotions

 

(440

)

(758

)

Doubtful accounts

 

(277

)

(309

)

 

 

 

 

 

 

Trade accounts receivable, net

 

$

190,710

 

$

187,545

 

 

 

 

 

 

 

 

 

 

 

Net trade accounts receivable consists of the following (in thousands):

 

 

 

 

 

DECEMBER 31,

 

 

 

JUNE 30,
2015

 

2014
(as Restated)

 

Gross accounts receivable

 

$

392,015

 

$

446,925

 

Less reserves for:

 

 

 

 

 

Chargebacks and rebates

 

(193,683

)

(198,112

)

Product returns

 

(51,195

)

(44,646

)

Discounts and allowances

 

(14,801

)

(15,554

)

Advertising and promotions

 

(924

)

(758

)

Doubtful accounts

 

(600

)

(309

)

 

 

 

 

 

 

Trade accounts receivable, net

 

$

130,812

 

$

187,545

 

 

 

 

 

 

 

 

 

 

 

 

Net trade accounts receivable consists of the following (in thousands):

 

 

 

 

 

DECEMBER 31,

 

 

 

SEPTEMBER 30,
2015

 

2014
(as Restated)

 

Gross accounts receivable

 

$

426,002

 

$

446,925

 

Less reserves for:

 

 

 

 

 

Chargebacks and rebates

 

(217,602

)

(198,112

)

Product returns

 

(53,910

)

(44,646

)

Discounts and allowances

 

(13,420

)

(15,554

)

Advertising and promotions

 

(826

)

(758

)

Doubtful accounts

 

(1,324

)

(309

)

 

 

 

 

 

 

Trade accounts receivable, net

 

$

138,920

 

$

187,545

 

 

 

 

 

 

 

 

 

 

Schedule Of Adjustments To Gross Sales [Table Text Block]

 

For the three month periods ended March 31, 2014 and 2013, the Company recorded the following adjustments to gross sales (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2014

 

2013

 

Gross sales

 

$

149,300

 

$

123,818

 

Less adjustments for:

 

 

 

 

 

Chargebacks and rebates

 

(51,873

)

(43,763

)

Product returns

 

(886

)

(1,231

)

Discounts and allowances

 

(2,435

)

(1,975

)

Administrative fees

 

(2,152

)

(1,963

)

Advertising, promotions and others

 

(1,332

)

(1,032

)

 

 

 

 

 

 

Revenues, net

 

$

90,622

 

$

73,854

 

 

 

 

 

 

 

 

 

 

 

For the three and six month periods ended June 30, 2014 and 2013, the Company recorded the following adjustments to gross sales (in thousands):

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2014
(As restated)

 

2013

 

2014
(As restated)

 

2013

 

Gross sales

 

$

278,219

 

$

126,113

 

$

427,519

 

$

249,930

 

Less adjustments for:

 

 

 

 

 

 

 

 

 

Chargebacks and rebates

 

(132,854

)

(42,966

)

(184,727

)

(86,729

)

Product returns

 

(88

)

(482

)

(974

)

(1,713

)

Discounts and allowances

 

(5,462

)

(1,947

)

(7,897

)

(3,922

)

Administrative fees

 

(3,354

)

(2,358

)

(5,506

)

(4,320

)

Advertising, promotions and others

 

(2,589

)

(1,348

)

(3,921

)

(2,380

)

 

 

 

 

 

 

 

 

 

 

Revenues, net

 

$

133,872

 

$

77,012

 

$

224,494

 

$

150,866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three and nine month periods ended September 30, 2014 and 2013, the Company recorded the following adjustments to gross sales (in thousands):

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2014
(As restated)

 

2013

 

2014
(As restated)

 

2013

 

Gross sales

 

$

397,422

 

$

137,235

 

$

824,941

 

$

387,165

 

Less adjustments for:

 

 

 

 

 

 

 

 

 

Chargebacks and rebates

 

(244,288

)

(49,373

)

(429,014

)

(136,102

)

Product returns

 

(8,958

)

(719

)

(9,932

)

(2,432

)

Discounts and allowances

 

(8,933

)

(2,228

)

(16,830

)

(6,150

)

Administrative fees

 

(6,435

)

(2,035

)

(11,942

)

(6,355

)

Advertising, promotions and others

 

(1,110

)

(988

)

(5,031

)

(3,368

)

 

 

 

 

 

 

 

 

 

 

Revenues, net

 

$

127,698

 

$

81,892

 

$

352,192

 

$

232,758

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three month periods ended March 31, 2015 and 2014, the Company recorded the following adjustments to gross sales (in thousands):

 

 

 

Three Months Ended March 31,

 

 

 

2015

 

2014

 

Gross sales

 

$

568,016

 

$

149,300

 

Less adjustments for:

 

 

 

 

 

Chargebacks and rebates

 

(293,181

)

(51,873

)

Product returns

 

(5,574

)

(886

)

Discounts and allowances

 

(14,044

)

(2,435

)

Administrative fees

 

(26,123

)

(2,152

)

Advertising, promotions and others

 

(1,716

)

(1,332

)

 

 

 

 

 

 

Revenues, net

 

$

227,378

 

$

90,622

 

 

 

 

 

 

 

 

 

 

 

 

For the three and six month periods ended June 30, 2015 and 2014, the Company recorded the following adjustments to gross sales (in thousands):

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2015

 

2014
(As restated)

 

2015

 

2014
(as Restated)

 

Gross sales

 

$

607,307

 

$

278,219

 

$

1,175,324

 

$

427,519

 

Less adjustments for:

 

 

 

 

 

 

 

 

 

Chargebacks and rebates

 

(363,008

)

(132,854

)

(656,189

)

(184,727

)

Product returns

 

(5,896

)

(88

)

(11,470

)

(974

)

Discounts and allowances

 

(11,622

)

(5,462

)

(25,666

)

(7,897

)

Administrative fees

 

(3,786

)

(3,354

)

(29,910

)

(5,506

)

Advertising, promotions and others

 

(2,075

)

(2,589

)

(3,791

)

(3,921

)

 

 

 

 

 

 

 

 

 

 

Revenues, net

 

$

220,920

 

$

133,872

 

$

448,298

 

$

224,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three and nine month periods ended September 30, 2015 and 2014, the Company recorded the following adjustments to gross sales (in thousands):

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2015

 

2014
(As restated)

 

2015

 

2014
(as Restated)

 

Gross sales

 

$

633,634

 

$

397,422

 

$

1,808,958

 

$

824,941

 

Less adjustments for:

 

 

 

 

 

 

 

 

 

Chargebacks and rebates

 

(331,771

)

(244,288

)

(987,960

)

(429,014

)

Product returns

 

(7,683

)

(8,958

)

(19,154

)

(9,932

)

Discounts and allowances

 

(11,744

)

(8,933

)

(37,410

)

(16,830

)

Administrative fees

 

(23,598

)

(6,435

)

(53,508

)

(11,942

)

Advertising, promotions and others

 

(2,037

)

(1,110

)

(5,827

)

(5,031

)

 

 

 

 

 

 

 

 

 

 

Revenues, net

 

$

256,801

 

$

127,698

 

$

705,099

 

$

352,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Inventory, Current [Table Text Block]

 

The components of inventories are as follows (in thousands):

 

 

 

MARCH 31, 2014

 

DECEMBER 31,
2013

 

Finished goods

 

$

21,639 

 

$

22,886 

 

Work in process

 

3,539 

 

3,883 

 

Raw materials and supplies

 

36,835 

 

29,213 

 

 

 

 

 

 

 

Inventories, net 

 

$

62,013 

 

$

55,982 

 

 

 

 

 

 

 

 

 

 

 

The components of inventories are as follows (in thousands):

 

 

 

JUNE 30, 2014
(as Restated)

 

DECEMBER 31,
2013

 

Finished goods

 

$

49,349 

 

$

22,886 

 

Work in process

 

5,074 

 

3,883 

 

Raw materials and supplies

 

59,243 

 

29,213 

 

 

 

 

 

 

 

Inventories, net

 

$

113,666 

 

$

55,982 

 

 

 

 

 

 

 

 

 

 

 

The components of inventories are as follows (in thousands):

 

 

 

SEPTEMBER 30,
2014
(as Restated)

 

DECEMBER 31,
2013

 

Finished goods

 

$

66,598 

 

$

22,886 

 

Work in process

 

4,574 

 

3,883 

 

Raw materials and supplies

 

60,944 

 

29,213 

 

 

 

 

 

 

 

Inventories, net 

 

$

132,116 

 

$

55,982 

 

 

 

 

 

 

 

 

 

 

 

The components of inventories are as follows (in thousands):

 

 

 

 

MARCH 31, 2015

 

DECEMBER 31, 2014
(as Restated)

 

Finished goods

 

$

76,194 

 

$

69,499 

 

Work in process

 

10,032 

 

4,075 

 

Raw materials and supplies

 

63,177 

 

61,623 

 

 

 

 

 

 

 

Inventories, net 

 

$

149,403 

 

$

135,197 

 

 

 

 

 

 

 

 

 

 

 

 

The components of inventories are as follows (in thousands):

 

 

 

JUNE 30, 2015

 

DECEMBER 31, 2014
(as Restated)

 

Finished goods

 

$

74,272 

 

$

69,499 

 

Work in process

 

8,628 

 

4,075 

 

Raw materials and supplies

 

73,416 

 

61,623 

 

 

 

 

 

 

 

Inventories, net 

 

$

156,315 

 

$

135,197 

 

 

 

 

 

 

 

 

 

 

 

 

The components of inventories are as follows (in thousands):

 

 

 

SEPTEMBER 30,
2015

 

DECEMBER 31, 2014
(as Restated)

 

Finished goods

 

$

79,583 

 

$

69,499 

 

Work in process

 

10,309 

 

4,075 

 

Raw materials and supplies

 

85,959 

 

61,623 

 

 

 

 

 

 

 

Inventories, net 

 

$

175,851 

 

$

135,197 

 

 

 

 

 

 

 

 

 

 

Property, Plant and Equipment [Table Text Block]

 

Property, plant and equipment consist of the following (in thousands):

 

 

 

MARCH 31, 2014

 

DECEMBER 31,
2013

 

Land and land improvements

 

$

2,686

 

$

2,606

 

Buildings and leasehold improvements

 

48,653

 

46,281

 

Furniture and equipment

 

78,153

 

76,536

 

 

 

 

 

 

 

Sub-total

 

129,492

 

125,423

 

Accumulated depreciation

 

(56,455

)

(54,470

)

 

 

 

 

 

 

Property, plant and equipment placed in service, net

 

73,037

 

70,953

 

Construction in progress 

 

14,638

 

11,155

 

 

 

 

 

 

 

Property, plant and equipment, net

 

$

87,675

 

$

82,108

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment consist of the following (in thousands):

 

 

 

JUNE 30, 2014
(as Restated)

 

DECEMBER 31,
2013

 

Land and land improvements

 

$

8,678

 

$

2,606

 

Buildings and leasehold improvements

 

60,474

 

46,281

 

Furniture and equipment

 

109,531

 

76,536

 

 

 

 

 

 

 

Sub-total

 

178,683

 

125,423

 

Accumulated depreciation

 

(60,027

)

(54,470

)

 

 

 

 

 

 

Property, plant and equipment placed in service, net

 

118,656

 

70,953

 

Construction in progress 

 

16,808

 

11,155

 

 

 

 

 

 

 

Property, plant and equipment, net

 

$

135,464

 

$

82,108

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment consist of the following (in thousands):

 

 

 

SEPTEMBER 30,
2014
(as Restated)

 

DECEMBER 31,
2013

 

Land and land improvements

 

$

9,395

 

$

2,606

 

Buildings and leasehold improvements

 

61,468

 

46,281

 

Furniture and equipment

 

112,127

 

76,536

 

 

 

 

 

 

 

Sub-total

 

182,990

 

125,423

 

Accumulated depreciation

 

(64,829

)

(54,470

)

 

 

 

 

 

 

Property, plant and equipment placed in service, net

 

118,161

 

70,953

 

Construction in progress 

 

21,213

 

11,155

 

 

 

 

 

 

 

Property, plant and equipment, net

 

$

139,374

 

$

82,108

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment consist of the following (in thousands):

 

 

 

MARCH 31, 2015

 

DECEMBER 31, 2014
(as Restated)

 

Land and land improvements

 

$

17,721

 

$

9,323

 

Buildings and leasehold improvements

 

79,216

 

63,846

 

Furniture and equipment

 

123,748

 

112,552

 

 

 

 

 

 

 

Sub-total

 

220,685

 

185,721

 

Accumulated depreciation

 

(72,756

)

(67,937

)

 

 

 

 

 

 

Property, plant and equipment placed in service, net

 

147,929

 

117,784

 

Construction in progress 

 

28,062

 

26,412

 

 

 

 

 

 

 

Property, plant and equipment, net

 

$

175,991

 

$

144,196

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment consist of the following (in thousands):

 

 

 

JUNE 30, 2015

 

DECEMBER 31, 2014
(as Restated)

 

Land and land improvements

 

$

17,762

 

$

9,323

 

Buildings and leasehold improvements

 

79,954

 

63,846

 

Furniture and equipment

 

132,235

 

112,552

 

 

 

 

 

 

 

Sub-total

 

229,951

 

185,721

 

Accumulated depreciation

 

(76,589

)

(67,937

)

 

 

 

 

 

 

Property, plant and equipment placed in service, net

 

153,362

 

117,784

 

Construction in progress 

 

25,877

 

26,412

 

 

 

 

 

 

 

Property, plant and equipment, net

 

$

179,239

 

$

144,196

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment consist of the following (in thousands):

 

 

 

SEPTEMBER 30,
2015

 

DECEMBER 31, 2014
(as Restated)

 

Land and land improvements

 

$

17,351

 

$

9,323

 

Buildings and leasehold improvements

 

84,767

 

63,846

 

Furniture and equipment

 

137,129

 

112,552

 

 

 

 

 

 

 

Sub-total

 

239,247

 

185,721

 

Accumulated depreciation

 

(81,467

)

(67,937

)

 

 

 

 

 

 

Property, plant and equipment placed in service, net

 

157,780

 

117,784

 

Construction in progress 

 

19,653

 

26,412

 

 

 

 

 

 

 

Property, plant and equipment, net

 

$

177,433

 

$

144,196

 

 

 

 

 

 

 

 

 

 

Schedule of Goodwill [Table Text Block]

 

The following table provides a summary of the activity in goodwill by segment for the three months ended March 31, 2014 (in thousands):

 

 

 

Consumer
Health

 

Prescription
Pharmaceuticals

 

Total

 

Balances at December 31, 2013

 

$

11,863 

 

$

17,968 

 

$

29,831 

 

Currency translation adjustments

 

 

606 

 

606 

 

 

 

 

 

 

 

 

 

Balances at March 31, 2014

 

$

11,863 

 

$

18,574 

 

$

30,437 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table provides a summary of the activity in goodwill by segment for the six months ended June 30, 2014 (in thousands):

 

 

 

Consumer
Health

 

Prescription
Pharmaceuticals

 

Total

 

Balances at December 31, 2013

 

$

11,863

 

$

17,968

 

$

29,831

 

Currency translation adjustments

 

 

549

 

549

 

Acquisitions

 

4,854

 

166,415

 

171,269

 

Dispositions

 

 

(15,284

)

(15,284

)

 

 

 

 

 

 

 

 

Balances at June 30, 2014 (as Restated)

 

$

16,717

 

$

169,648

 

$

186,365

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table provides a summary of the activity in goodwill by segment for the nine months ended September 30, 2014 (in thousands):

 

 

 

Consumer
Health

 

Prescription 
Pharmaceuticals

 

Total

 

Balances at December 31, 2013

 

$

11,863

 

$

17,968

 

$

29,831

 

Currency translation adjustments

 

 

85

 

85

 

Acquisitions

 

4,854

 

266,395

 

271,249

 

Dispositions

 

 

(15,284

)

(15,284

)

 

 

 

 

 

 

 

 

Balances at September 30, 2014 (as Restated)

 

$

16,717

 

$

269,164

 

$

285,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table provides a summary of the activity in goodwill by segment for the three months ended March 31, 2015 (in thousands):

 

 

 

Consumer
Health

 

Prescription
Pharmaceuticals

 

Total

 

Balances at December 31, 2014 (as Restated)

 

$

16,717 

 

$

268,566 

 

$

285,283 

 

Currency translation adjustments

 

 

391 

 

391 

 

Acquisitions

 

 

 

 

Dispositions

 

 

 

 

 

 

 

 

 

 

 

 

Balances at March 31, 2015

 

$

16,717 

 

$

268,957 

 

$

285,674 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table provides a summary of the activity in goodwill by segment for the six months ended June 30, 2015 (in thousands):

 

 

 

Consumer
Health

 

Prescription
Pharmaceuticals

 

Total

 

Balances at December 31, 2014 (as Restated)

 

$

16,717 

 

$

268,566 

 

$

285,283 

 

Currency translation adjustments

 

 

73 

 

73 

 

Acquisitions

 

 

 

 

Dispositions

 

 

 

 

 

 

 

 

 

 

 

 

Balances at June 30, 2015

 

$

16,717 

 

$

268,639 

 

$

285,356 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table provides a summary of the activity in goodwill by segment for the nine months ended September 30, 2015 (in thousands):

 

 

 

Consumer
Health

 

Prescription
Pharmaceuticals

 

Total

 

Balances at December 31, 2014 (as Restated)

 

$

16,717

 

$

268,566

 

$

285,283

 

Currency translation adjustments

 

 

(575

)

(575

)

Acquisitions

 

 

 

 

Dispositions

 

 

 

 

 

 

 

 

 

 

 

 

Balances at September 30, 2015

 

$

16,717

 

$

267,991

 

$

284,708

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Finite-Lived Intangible Assets [Table Text Block]

 

The following table sets forth information about the net book value of the Company’s other intangible assets as of March 31, 2014 and December 31, 2013, and the weighted average remaining amortization period as of March 31, 2014 and December 31, 2013 (dollar amounts in thousands):

 

 

 

Gross
Amount

 

Accumulated
Amortization

 

Impairment

 

Net
Balance

 

Wgtd Avg
Remaining
Amortization
Period

 

March 31, 2014

 

 

 

 

 

 

 

 

 

 

 

Product licensing rights

 

$

162,887

 

$

(39,954

)

$

 

$

122,933

 

10.0

 

Trademarks

 

9,500

 

(924

)

 

8,576

 

27.2

 

Customer relationships

 

6,243

 

(1,736

)

 

4,507

 

9.6

 

Non-compete agreement

 

2,510

 

(1,310

)

 

1,200

 

1.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

181,140

 

$

(43,924

)

$

 

$

137,216

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DECEMBER 31, 2013

 

 

 

 

 

 

 

 

 

 

 

Product licensing rights

 

$

151,504

 

$

(35,604

)

 

$

115,900

 

9.8

 

Trademarks

 

9,500

 

(844

)

 

8,656

 

27.4

 

Customer relationships

 

6,166

 

(1,528

)

 

4,638

 

9.8

 

Non-compete agreement

 

2,428

 

(1,117

)

 

1,311

 

2.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

169,598

 

$

(39,093

)

 

130,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table sets forth information about the net book value of the Company’s other intangible assets as of June 30, 2014 and December 31, 2013, and the weighted average remaining amortization period as of June 30, 2014 and December 31, 2013 (dollar amounts in thousands):

 

 

 

Gross
Amount

 

Accumulated
Amortization

 

Impairment

 

Net
Balance

 

Wgtd Avg Remaining
Amortization Period

 

JUNE 30, 2014 (as Restated)

 

 

 

 

 

 

 

 

 

 

 

Product licensing rights

 

$

476,659

 

$

(46,871

)

$

 

$

429,788

 

13.8

 

IPR&D

 

9,400

 

 

 

9,400

 

N/A - Indefinite lived

 

Trademarks

 

15,000

 

(1,128

)

 

13,872

 

19.9

 

Customer relationships

 

6,561

 

(2,002

)

 

4,559

 

9.0

 

Other Intangibles

 

6,000

 

(68

)

 

5,932

 

4.8

 

Non-compete agreement

 

2,552

 

(1,512

)

 

1,040

 

1.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

516,172

 

$

(51,581

)

$

 

$

464,591

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DECEMBER 31, 2013

 

 

 

 

 

 

 

 

 

 

 

Product licensing rights

 

$

151,504

 

$

(35,604

)

 

$

115,900

 

9.8

 

IPR&D

 

 

 

 

 

N/A - Indefinite lived

 

Trademarks

 

9,500

 

(844

)

 

8,656

 

27.4

 

Customer relationships

 

6,166

 

(1,528

)

 

4,638

 

9.8

 

Other Intangibles

 

 

 

 

 

 

Non-compete agreement

 

2,428

 

(1,117

)

 

1,311

 

2.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

169,598

 

$

(39,093

)

 

130,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table sets forth information about the net book value of the Company’s other intangible assets as of September 30, 2014 and December 31, 2013, and the weighted average remaining amortization period as of September 30, 2014 and December 31, 2013 (dollar amounts in thousands):

 

 

 

Gross
Amount

 

Accumulated 
Amortization

 

Impairment

 

Net
Balance

 

Wgtd Avg Remaining 
Amortization Period

 

SEPTEMBER 30, 2014 (as Restated)

 

 

 

 

 

 

 

 

 

 

 

Product licensing rights

 

$

729,628

 

$

(58,501

)

$

 

$

671,127

 

12.6

 

IPR&D

 

221,771

 

 

 

221,771

 

N/A - Indefinite lived

 

Trademarks

 

16,000

 

(1,406

)

 

14,594

 

18.6

 

Customer relationships

 

6,502

 

(3,327

)

 

3,175

 

11.0

 

Other Intangibles

 

11,200

 

(445

)

 

10,755

 

7.6

 

Non-compete agreement

 

2,490

 

(1,629

)

 

861

 

1.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

987,591

 

$

(65,308

)

$

 

$

922,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DECEMBER 31, 2013

 

 

 

 

 

 

 

 

 

 

 

Product licensing rights

 

$

151,504

 

$

(35,604

)

 

$

115,900

 

9.8

 

IPR&D

 

 

 

 

 

N/A - Indefinite lived

 

Trademarks

 

9,500

 

(844

)

 

8,656

 

27.4

 

Customer relationships

 

6,166

 

(1,528

)

 

4,638

 

9.8

 

Other Intangibles

 

 

 

 

 

 

Non-compete agreement

 

2,428

 

(1,117

)

 

1,311

 

2.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

169,598

 

$

(39,093

)

 

$
130,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table sets forth information about the net book value of the Company’s other intangible assets as of March 31, 2015 and December 31, 2014, and the weighted average remaining amortization period as of March 31, 2015 and December 31, 2014 (dollar amounts in thousands):

 

 

 

Gross
Amount

 

Accumulated
Amortization

 

Impairment

 

Net
Balance

 

Wgtd Avg Remaining
Amortization Period

 

MARCH 31, 2015

 

 

 

 

 

 

 

 

 

 

 

Product licensing rights

 

$

778,734

 

$

(89,244

)

$

 

$

689,490

 

13.9

 

IPR&D

 

227,259

 

 

 

227,259

 

N/A - Indefinite lived

 

Trademarks

 

16,000

 

(2,036

)

 

13,964

 

22.6

 

Customer relationships

 

6,464

 

(3,569

)

 

2,895

 

12.5

 

Other Intangibles

 

11,234

 

(1,309

)

 

9,925

 

8.7

 

Non-compete agreement

 

2,449

 

(1,902

)

 

547

 

0.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,042,140

 

$

(98,060

)

$

 

$

944,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DECEMBER 31, 2014 (as Restated)

 

 

 

 

 

 

 

 

 

 

 

Product licensing rights

 

$

778,734

 

$

(73,943

)

$

 

$

704,791

 

12.1

 

IPR&D

 

227,259

 

 

 

227,259

 

N/A - Indefinite lived

 

Trademarks

 

16,000

 

(1,721

)

 

14,279

 

18.6

 

Customer relationships

 

6,502

 

(3,467

)

 

3,035

 

11.0

 

Other Intangibles

 

11,235

 

(879

)

 

10,356

 

7.5

 

Non-compete agreement

 

2,333

 

(1,650

)

 

683

 

1.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,042,063

 

$

(81,660

)

$

 

$

960,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table sets forth information about the net book value of the Company’s other intangible assets as of June 30, 2015 and December 31, 2014, and the weighted average remaining amortization period as of June 30, 2015 and December 31, 2014 (dollar amounts in thousands):

 

 

 

Gross
Amount

 

Accumulated
Amortization

 

Impairment

 

Net
Balance

 

Wgtd Avg Remaining
Amortization Period

 

JUNE 30, 2015

 

 

 

 

 

 

 

 

 

 

 

Product licensing rights

 

$

779,234

 

$

(104,547

)

$

 

$

674,687

 

13.7

 

IPR&D

 

227,559

 

 

(2,627

)

224,932

 

N/A - Indefinite lived

 

Trademarks

 

16,000

 

(2,352

)

 

13,648

 

22.3

 

Customer relationships

 

6,424

 

(3,607

)

 

2,817

 

12.2

 

Other Intangibles

 

11,234

 

(1,739

)

 

9,495

 

8.4

 

Non-compete agreement

 

2,406

 

(2,015

)

 

391

 

0.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,042,857

 

$

(114,260

)

$

(2,627

)

$

925,970

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DECEMBER 31, 2014 (as Restated)

 

 

 

 

 

 

 

 

 

 

 

Product licensing rights

 

$

778,734

 

$

(73,943

)

$

 

$

704,791

 

12.1

 

IPR&D

 

227,259

 

 

 

227,259

 

N/A - Indefinite lived

 

Trademarks

 

16,000

 

(1,721

)

 

14,279

 

18.6

 

Customer relationships

 

6,502

 

(3,467

)

 

3,035

 

11.0

 

Other Intangibles

 

11,235

 

(879

)

 

10,356

 

7.5

 

Non-compete agreement

 

2,333

 

(1,650

)

 

683

 

1.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,042,063

 

$

(81,660

)

$

 

$

960,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table sets forth information about the net book value of the Company’s other intangible assets as of September 30, 2015 and December 31, 2014, and the weighted average remaining amortization period as of September 30, 2015 and December 31, 2014 (dollar amounts in thousands):

 

 

 

Gross
Amount

 

Accumulated
Amortization

 

Impairment

 

Reclass-
ifications
(1)

 

Net
Balance

 

Wgtd Avg
Remaining
Amortization Period

 

SEPTEMBER 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

Product licensing rights

 

$

781,569

 

$

(120,126

)

$

 

$

38,000

 

$

699,443

 

13.4

 

IPR&D

 

227,559

 

 

(2,627

)

(38,000

)

186,932

 

N/A - Indefinite lived

 

Trademarks

 

16,000

 

(2,667

)

 

 

13,333

 

22.1

 

Customer relationships

 

6,342

 

(3,590

)

 

 

2,752

 

12.0

 

Other Intangibles

 

11,234

 

(2,170

)

 

 

9,064

 

8.2

 

Non-compete agreement

 

2,431

 

(2,153

)

 

 

279

 

0.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,045,136

 

$

(130,706

)

$

(2,627

)

$

 

$

911,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DECEMBER 31, 2014 (as Restated)

 

 

 

 

 

 

 

 

 

 

 

 

 

Product licensing rights

 

$

778,734

 

$

(73,943

)

$

 

$

 

$

704,791

 

12.1

 

IPR&D

 

227,259

 

 

 

 

227,259

 

N/A - Indefinite lived

 

Trademarks

 

16,000

 

(1,721

)

 

 

14,279

 

18.6

 

Customer relationships

 

6,502

 

(3,467

)

 

 

3,035

 

11.0

 

Other Intangibles

 

11,235

 

(879

)

 

 

10,356

 

7.5

 

Non-compete agreement

 

2,333

 

(1,650

)

 

 

683

 

1.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,042,063

 

$

(81,660

)

$

 

$

 

$

960,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

This amount reclassifies the acquisition date value of one previously IPR&D asset due to launch in the nine month period ended September 30,2015.

 

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

 

Information about the computation of basic and diluted earnings per share is detailed below (in thousands, except per share data):

 

 

 

Three Months Ended
March 31,

 

 

 

2014
(as Restated)

 

2013

 

Income (loss) from continuing operations used for basic earnings per share

 

$

9,494 

 

$

10,842 

 

Convertible debt income adjustments, net of tax

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations adjusted for convertible debt as used for diluted earnings per share

 

$

9,494 

 

$

10,842 

 

Income (loss) from continuing operations per share:

 

 

 

 

 

Basic

 

$

0.10 

 

$

0.11 

 

Diluted

 

$

0.08 

 

$

0.10 

 

 

 

 

 

 

 

Shares used in computing net income (loss) per share:

 

 

 

 

 

Weighted average basic shares outstanding

 

96,633 

 

95,926 

 

 

 

 

 

 

 

Dilutive securities:

 

 

 

 

 

Stock option and unvested RSUs

 

4,845 

 

4,193 

 

Stock warrants

 

6,843 

 

6,589 

 

Shares issuable upon conversion of convertible notes (1)

 

8,563 

 

4,843 

 

 

 

 

 

 

 

Total dilutive securities

 

20,251 

 

15,625 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

116,884 

 

111,551 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares subject to stock options omitted from the calculation of income per share as their effect would have been anti-dilutive

 

50 

 

1,496 

 

 

 

(1)

As of the period ended March 31, 2014 the number of shares issuable upon conversion of the Notes is based on the assumption that the Company would repay the principal of the Notes in cash and pay any incremental value in shares of common stock.

 

  Information about the computation of basic and diluted earnings per share is detailed below (in thousands, except per share data):

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2014
(as Restated) (1)

 

2013

 

2014
(as Restated)

 

2013

 

Income (loss) from continuing operations used for basic earnings per share

 

$

(752

)

$

12,637

 

$

8,742

 

$

23,479

 

Convertible debt income adjustments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations adjusted for convertible debt as used for diluted earnings per share

 

$

(752

)

$

12,637

 

$

8,742

 

$

23,479

 

Income (loss) from continuing operations per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.01

)

$

0.13

 

$

0.09

 

$

0.24

 

Diluted

 

$

(0.01

)

$

0.11

 

$

0.07

 

$

0.21

 

(Loss) from discontinued operations, net of tax

 

$

(504

)

$

 

$

(504

)

$

 

(Loss) from discontinued operations per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

 

$

 

$

(0.01

)

$

 

Diluted

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing net income (loss) per share:

 

 

 

 

 

 

 

 

 

Weighted average basic shares outstanding

 

103,183

 

96,122

 

99,926

 

96,025

 

 

 

 

 

 

 

 

 

 

 

Dilutive securities:

 

 

 

 

 

 

 

 

 

Stock option and unvested RSUs

 

 

4,380

 

5,008

 

4,383

 

Stock warrants

 

 

6,614

 

3,779

 

6,564

 

Shares issuable upon conversion of convertible notes (2)

 

 

5,212

 

8,863

 

5,038

 

 

 

 

 

 

 

 

 

 

 

Total dilutive securities

 

 

16,206

 

17,650

 

15,985

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

103,183

 

112,328

 

117,576

 

112,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares subject to stock options omitted from the calculation of income per share as their effect would have been anti-dilutive

 

 

1,373

 

336

 

1,289

 

 

 

(1)

As a result of the loss from continuing operations in the three months ended June 30, 2014, the effect of potentially dilutive securities would be anti-dilutive and have been omitted from the calculation of diluted earnings per share consistent with GAAP.

 

(2)

As of the period ended June 30, 2014 the number of shares issuable upon conversion of the Notes is based on the assumption that the Company would repay the principal of the Notes in cash and pay any incremental value in shares of common stock.

 

  Information about the computation of basic and diluted earnings per share is detailed below (in thousands, except per share data):

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2014
(as Restated) (1)

 

2013

 

2014
(as Restated) (1)

 

2013

 

Income (loss) from continuing operations used for basic earnings per share

 

$

(12,333

)

$

12,205

 

$

(3,591

)

$

35,684

 

Convertible debt income adjustments, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations adjusted for convertible debt as used for diluted earnings per share

 

$

(12,333

)

$

12,205

 

$

(3,591

)

$

35,684

 

Income (loss) from continuing operations per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.12

)

$

0.13

 

$

(0.04

)

$

0.37

 

Diluted

 

$

(0.12

)

$

0.11

 

$

(0.04

)

$

0.32

 

(Loss) from discontinued operations, net of tax

 

$

 

$

 

$

(504

)

$

 

(Loss) from discontinued operations per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

 

$

 

$

 

$

 

Diluted

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing net income (loss) per share:

 

 

 

 

 

 

 

 

 

Weighted average basic shares outstanding

 

105,438

 

96,238

 

101,784

 

96,096

 

 

 

 

 

 

 

 

 

 

 

Dilutive securities:

 

 

 

 

 

 

 

 

 

Stock option and unvested RSUs

 

 

4,510

 

 

4,408

 

Stock warrants

 

 

6,687

 

 

6,635

 

Shares issuable upon conversion of convertible notes (2)

 

 

6,282

 

 

5,505

 

 

 

 

 

 

 

 

 

 

 

Total dilutive securities

 

 

17,479

 

 

16,548

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

105,438

 

113,717

 

101,784

 

112,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares subject to stock options omitted from the calculation of income per share as their effect would have been anti-dilutive

 

 

1,110

 

 

1,335

 

 

 

(1)

As a result of the loss from continuing operations in the three and nine months ended September 30, 2014, the effect of potentially dilutive securities would be anti-dilutive and have been omitted from the calculation of diluted earnings per share consistent with GAAP.

 

(2)

As of the period ended September 30, 2014 the number of shares issuable upon conversion of the Notes is based on the assumption that the Company would repay the principal of the Notes in cash and pay any incremental value in shares of common stock.

 

 

 

 Information about the computation of basic and diluted earnings per share is detailed below (in thousands, except per share data):

 

 

 

Three Months Ended
March 31,

 

 

 

2015

 

2014

 

Income from continuing operations used for basic earnings per share

 

$

37,538 

 

$

9,494 

 

Convertible debt income adjustments, net of tax (1)

 

1,107 

 

 

 

 

 

 

 

 

Income from continuing operations adjusted for convertible debt as used for diluted earnings per share

 

$

38,645 

 

$

9,494 

 

Income from continuing operations per share:

 

 

 

 

 

Basic

 

$

0.33 

 

$

0.10 

 

Diluted

 

$

0.31 

 

$

0.08 

 

 

 

 

 

 

 

Shares used in computing net income (loss) per share:

 

 

 

 

 

Weighted average basic shares outstanding

 

113,352 

 

96,633 

 

 

 

 

 

 

 

Dilutive securities:

 

 

 

 

 

Stock option and unvested RSUs

 

2,085 

 

4,845 

 

Stock warrants

 

 

6,843 

 

Shares issuable upon conversion of convertible notes (1)

 

9,940 

 

8,563 

 

 

 

 

 

 

 

Total dilutive securities

 

12,025 

 

20,251 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

125,377 

 

116,884 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares subject to stock options omitted from the calculation of income per share as their effect would have been anti-dilutive

 

575 

 

50 

 

 

 

(1)

As of the period ended March 31, 2014 the number of shares issuable upon conversion of the Notes is based on the assumption that the Company would repay the principal of the Notes in cash and pay any incremental value in shares of common stock. Due to a change in the expectation that management may settle all future note conversions solely through shares in the quarter ended December 31, 2014, the diluted income from continuing operations per share calculation includes the dilutive effect of convertible debt and is offset by the exclusion of interest expense and deferred financing fees related to the convertible debt of $1.1 million, after-tax for the quarter ended March 31, 2015. This also alters the dilutive share effect of the convertible notes as the Company is now using the if-converted method for debt conversion obligations.

 

 

  Information about the computation of basic and diluted earnings per share is detailed below (in thousands, except per share data):

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2015

 

2014
(as Restated) (1)

 

2015

 

2014
(as Restated)

 

Income from continuing operations used for basic earnings per share

 

$

32,508

 

$

(752

)

$

70,046

 

$

8,742

 

Convertible debt income adjustments, net of tax (2)

 

927

 

 

2,034

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations adjusted for convertible debt as used for diluted earnings per share

 

$

33,435

 

$

(752

)

$

72,080

 

$

8,742

 

Income from continuing operations per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.28

 

$

(0.01

)

$

0.61

 

$

0.09

 

Diluted

 

$

0.27

 

$

(0.01

)

$

0.57

 

$

0.07

 

(Loss) from discontinued operations, net of tax

 

$

 

$

(504

)

$

 

$

(504

)

(Loss) from discontinued operations per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

 

$

 

$

 

$

(0.01

)

Diluted

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing net income (loss) per share:

 

 

 

 

 

 

 

 

 

Weighted average basic shares outstanding

 

115,808

 

103,183

 

114,587

 

99,926

 

 

 

 

 

 

 

 

 

 

 

Dilutive securities:

 

 

 

 

 

 

 

 

 

Stock option and unvested RSUs

 

1,655

 

 

1,869

 

5,008

 

Stock warrants

 

 

 

 

3,779

 

Shares issuable upon conversion of convertible notes (2)

 

8,456

 

 

9,194

 

8,863

 

 

 

 

 

 

 

 

 

 

 

Total dilutive securities

 

10,111

 

 

11,063

 

17,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

125,919

 

103,183

 

125,650

 

117,576

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares subject to stock options omitted from the calculation of income per share as their effect would have been anti-dilutive

 

874

 

 

724

 

336

 

 

 

(1)

As a result of the loss from continuing operations in the three months ended June 30, 2014, the effect of potentially dilutive securities would be anti-dilutive and have been omitted from the calculation of diluted earnings per share consistent with GAAP.

 

(2)

As of the three and six month period ended June 30, 2014 the number of shares issuable upon conversion of the Notes is based on the assumption that the Company would repay the principal of the Notes in cash and pay any incremental value in shares of common stock. Due to a change in the expectation that management may settle all future note conversions solely through shares in the quarter ended December 31, 2014, the diluted income from continuing operations per share calculation includes the dilutive effect of convertible debt and is offset by the exclusion of interest expense and deferred financing fees related to the convertible debt of $0.9 million, after-tax and $2.0 million, after-tax for the three and six month periods ended June 30, 2015. This also alters the dilutive share effect of the convertible notes as the Company is now using the if-converted method for debt conversion obligations.

 

 

 

  Information about the computation of basic and diluted earnings per share is detailed below (in thousands, except per share data):

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2015

 

2014
(as Restated) (1)

 

2015

 

2014
(as Restated) (1)

 

Income from continuing operations used for basic earnings per share

 

$

47,967

 

$

(12,333

)

$

118,013

 

$

(3,591

)

Convertible debt income adjustments, net of tax (2)

 

580

 

 

2,614

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations adjusted for convertible debt as used for diluted earnings per share

 

$

48,547

 

$

(12,333

)

$

120,627

 

$

(3,591

)

Income from continuing operations per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.40

 

$

(0.12

)

$

1.02

 

$

(0.04

)

Diluted

 

$

0.39

 

$

(0.12

)

$

0.96

 

$

(0.04

)

(Loss) from discontinued operations, net of tax

 

$

 

$

 

$

 

$

(504

)

(Loss) from discontinued operations per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

 

$

 

$

 

$

 

Diluted

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing net income (loss) per share:

 

 

 

 

 

 

 

 

 

Weighted average basic shares outstanding

 

119,260

 

105,438

 

116,162

 

101,784

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive securities:

 

 

 

 

 

 

 

 

 

Stock option and unvested RSUs

 

1,529

 

 

1,761

 

 

Stock warrants

 

 

 

 

 

Shares issuable upon conversion of convertible notes (2)

 

5,102

 

 

7,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total dilutive securities

 

6,631

 

 

9,576

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

125,891

 

105,438

 

125,738

 

101,784

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares subject to stock options omitted from the calculation of income per share as their effect would have been anti-dilutive

 

973

 

 

809

 

 

 

 

(1)

As a result of the loss from continuing operations in the three and nine months ended September 30, 2014, the effect of potentially dilutive securities would be anti-dilutive and have been omitted from the calculation of diluted earnings per share consistent with GAAP.

 

(2)

As of the three and nine month period ended September 30, 2014 the number of shares issuable upon conversion of the Notes is based on the assumption that the Company would repay the principal of the Notes in cash and pay any incremental value in shares of common stock. Due to a change in the expectation that management may settle all future note conversions solely through shares in the quarter ended December 31, 2014, the diluted income from continuing operations per share calculation includes the dilutive effect of convertible debt and is offset by the exclusion of interest expense and deferred financing fees related to the convertible debt of $0.6 million, after-tax and $2.6 million, after-tax for the three and nine month periods ended September 30, 2015. This also alters the dilutive share effect of the convertible notes as the Company is now using the if-converted method for debt conversion obligations.

 

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

 

 

 

Three months ended March 31,

 

Big 3 Wholesalers combined:

 

2014

 

2013

 

Percentage of gross sales

 

62 

%

59 

%

Percentage of net sales revenues

 

45 

%

42 

%

 

 

 

 

 

 

 

 

 

March 31,
2014

 

December 31,
2013

 

Percentage of gross trade accounts receivable

 

69 

%

63 

%

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

Big 3 Wholesalers combined:

 

2014
(as Restated)

 

2013

 

2014
(as Restated)

 

2013

 

Percentage of gross sales

 

69 

%

57 

%

67 

%

58 

%

Percentage of net sales revenues

 

49 

%

38 

%

47 

%

40 

%

 

 

 

June 30, 2014
(as Restated)

 

December 31,
2013

 

 

 

 

 

Percentage of gross trade accounts receivable

 

73 

%

63 

%

 

 

 

 

 

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

Big 3 Wholesalers combined:

 

2014
(as Restated)

 

2013

 

2014
(as Restated)

 

2013

 

Percentage of gross sales

 

79 

%

61 

%

73 

%

59 

%

Percentage of net sales revenues

 

43 

%

41 

%

46 

%

41 

%

 

 

 

September 30, 
2014
(as Restated)

 

December 31, 
2013

 

 

 

 

 

Percentage of gross trade accounts receivable

 

81 

%

63 

%

 

 

 

 

 

 

 

 

 

 

Three months ended March 31,

 

Big 3 Wholesalers combined:

 

2015

 

2014

 

Percentage of gross sales

 

76 

%

62 

%

Percentage of net sales revenues

 

67 

%

45 

%

 

 

 

March 31, 2015

 

December 31, 2014

 

Percentage of gross trade accounts receivable

 

84 

%

85 

%

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

Big 3 Wholesalers combined:

 

2015

 

2014
(as Restated)

 

2015

 

2014
(as Restated)

 

Percentage of gross sales

 

82 

%

69 

%

79 

%

67 

%

Percentage of net sales revenues

 

74 

%

49 

%

70 

%

47 

%

 

 

 

June 30, 2015

 

December 31, 2014
(as Restated)

 

Percentage of gross trade accounts receivable

 

77 

%

85 

%

 

 

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

Big 3 Wholesalers combined:

 

2015

 

2014
(as Restated)

 

2015

 

2014
(as Restated)

 

Percentage of gross sales

 

76 

%

79 

%

78 

%

73 

%

Percentage of net sales revenues

 

66 

%

43 

%

69 

%

46 

%

 

 

 

 

 

 

 

 

 

 

 

 

September 30,
2015

 

December 31, 2014
(as Restated)

 

 

 

 

 

Percentage of gross trade accounts receivable

 

78 

%

85 

%

 

 

 

 

 

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

 

The following table sets forth information about the Company’s income tax provision for the periods indicated (dollar amounts in thousands):

 

 

 

Three Months ended
March 31,

 

 

 

2014
(as Restated)

 

2013

 

Income from continuing operations before income taxes

 

$

17,595 

 

$

16,257 

 

Income tax provision

 

8,101 

 

5,415 

 

 

 

 

 

 

 

Net income from continuing operations

 

$

9,494 

 

$

10,842 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision as a percentage of income before income taxes

 

46.0 

%

33.3 

%

 

 

The following table sets forth information about the Company’s income tax provision for the periods indicated (dollar amounts in thousands):

 

 

 

Three Months ended
June 30,

 

Six Months ended
June 30,

 

 

 

2014
(as Restated)

 

2013

 

2014
(as Restated)

 

2013

 

Income (loss) from continuing operations before income taxes

 

$

(1,251

)

$

19,982

 

$

16,344

 

$

36,239

 

Income tax provision (benefit)

 

(499

)

7,345

 

7,602

 

12,760

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

(752

)

$

12,637

 

$

8,742

 

$

23,479

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit) as a percentage of income (loss) before income taxes

 

(39.9

)%

36.8

%

46.5

%

35.2

%

 

 

The following table sets forth information about the Company’s income tax provision for the periods indicated (dollar amounts in thousands):

 

 

 

Three Months ended
September 30,

 

Nine Months ended
September 30,

 

 

 

2014
(as Restated)

 

2013

 

2014
(as Restated)

 

2013

 

Income (loss) from continuing operations before income taxes

 

$

(24,247

)

$

19,982

 

$

(7,903

)

$

56,221

 

Income tax provision (benefit)

 

(11,914

)

7,777

 

(4,312

)

20,537

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

(12,333

)

$

12,205

 

$

(3,591

)

$

35,684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit) as a percentage of income before income taxes

 

(49.1

)%

38.9

%

(54.6

)%

36.5

%

 

 

The following table sets forth information about the Company’s income tax provision for the periods indicated (dollar amounts in thousands):

 

 

 

Three Months ended March 31,

 

 

 

2015

 

2014

 

Income from continuing operations before income taxes

 

$

58,328 

 

$

17,595 

 

Income tax provision

 

20,790 

 

8,101 

 

 

 

 

 

 

 

Net income from continuing operations

 

$

37,538 

 

$

9,494 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision as a percentage of income before income taxes

 

35.6 

%

46.0 

%

 

 

 

The following table sets forth information about the Company’s income tax provision for the periods indicated (dollar amounts in thousands):

 

 

 

Three Months ended
June 30,

 

Six Months ended
June 30,

 

 

 

2015

 

2014
(as Restated)

 

2015

 

2014
(as Restated)

 

Income (loss) from continuing operations before income taxes

 

$

50,358

 

$

(1,251

)

$

108,686

 

$

16,344

 

Income tax provision (benefit)

 

17,850

 

(499

)

38,640

 

7,602

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

32,508

 

$

(752

)

$

70,046

 

$

8,742

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit) as a percentage of income (loss) before income taxes

 

35.4

%

(39.9

)%

35.6

%

46.5

%

 

 

 

The following table sets forth information about the Company’s income tax provision for the periods indicated (dollar amounts in thousands):

 

 

 

Three Months ended
September 30,

 

Nine Months ended
September 30,

 

 

 

2015

 

2014
(as Restated)

 

2015

 

2014
(as Restated)

 

Income (loss) from continuing operations before income taxes

 

$

74,015

 

$

(24,247

)

$

182,701

 

$

(7,903

)

Income tax provision (benefit)

 

26,048

 

(11,914

)

64,688

 

(4,312

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

47,967

 

$

(12,333

)

$

118,013

 

$

(3,591

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit) as a percentage of income (loss) before income taxes

 

35.2

%

(49.1

)%

35.4

%

(54.6

)%

 

Schedule of Segment Reporting Information, by Segment [Table Text Block]

 

Selected financial information by reportable segment is presented below (in thousands). The Company has recasted prior periods such as the three month periods ended March 31, 2014 and 2013, to reflect the new segment reporting.

 

 

 

Three Months Ended
March 31,

 

 

 

2014

 

2013

 

Revenues:

 

 

 

 

 

Prescription Pharmaceuticals

 

$

81,848

 

$

65,146

 

Consumer Health

 

8,774

 

8,708

 

 

 

 

 

 

 

Total revenues

 

90,622

 

73,854

 

Gross Profit:

 

 

 

 

 

Prescription Pharmaceuticals

 

45,284

 

34,023

 

Consumer Health

 

4,372

 

5,122

 

 

 

 

 

 

 

Total gross profit

 

49,656

 

39,145

 

Operating expenses

 

26,216

 

20,556

 

 

 

 

 

 

 

Operating income

 

23,440

 

18,589

 

Other expense

 

(5,845

)

(2,332

)

 

 

 

 

 

 

Income from continuing operations before income taxes

 

$

17,595

 

$

16,257

 

 

 

 

 

 

 

 

 

 

 

Selected financial information by reportable segment is presented below (in thousands). The Company has recasted prior periods such as the three and six month periods ended June 30, 2013, to reflect the new segment reporting.

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2014
(as Restated)

 

2013

 

2014
(as Restated)

 

2013

 

Revenues:

 

 

 

 

 

 

 

 

 

Prescription Pharmaceuticals

 

$

119,481

 

$

67,362

 

$

201,327

 

$

132,508

 

Consumer Health

 

14,391

 

9,650

 

23,167

 

18,358

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

133,872

 

77,012

 

224,494

 

150,866

 

Gross Profit:

 

 

 

 

 

 

 

 

 

Prescription Pharmaceuticals

 

52,335

 

36,743

 

97,619

 

70,766

 

Consumer Health

 

8,536

 

5,349

 

12,908

 

10,471

 

 

 

 

 

 

 

 

 

 

 

Total gross profit

 

60,871

 

42,092

 

110,527

 

81,237

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

60,135

 

19,841

 

86,351

 

40,397

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

736

 

22,251

 

24,176

 

40,840

 

Other expense

 

(1,987

)

(2,269

)

(7,832

)

(4,601

)

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

$

(1,251

)

$

19,982

 

$

16,344

 

$

36,239

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected financial information by reportable segment is presented below (in thousands). The Company has recasted prior periods such as the three and nine month periods ended September 30, 2013, to reflect the new segment reporting.

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2014
(as Restated)

 

2013

 

2014
(as Restated)

 

2013

 

Revenues:

 

 

 

 

 

 

 

 

 

Prescription Pharmaceuticals

 

$

114,953

 

$

72,677

 

$

316,280

 

$

205,185

 

Consumer Health

 

12,745

 

9,215

 

35,912

 

27,573

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

127,698

 

81,892

 

352,192

 

232,758

 

 

 

 

 

 

 

 

 

 

 

Gross Profit:

 

 

 

 

 

 

 

 

 

Prescription Pharmaceuticals

 

39,246

 

38,372

 

136,865

 

109,138

 

Consumer Health

 

6,254

 

5,325

 

19,162

 

15,796

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total gross profit

 

45,500

 

43,697

 

156,027

 

124,934

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

57,530

 

21,509

 

143,881

 

61,906

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(12,030

)

22,188

 

12,146

 

63,028

 

Other (expense)

 

(12,217

)

(2,206

)

(20,049

)

(6,807

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

$

(24,247

)

$

19,982

 

$

(7,903

)

$

56,221

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected financial information by reportable segment is presented below (in thousands). The Company has recasted prior periods such as the three month periods ended March 31, 2014, to reflect the new segment reporting.

 

 

 

Three Months Ended
March 31,

 

 

 

2015

 

2014

 

Revenues:

 

 

 

 

 

Prescription Pharmaceuticals

 

$

210,554

 

$

81,848

 

Consumer Health

 

16,824

 

8,774

 

 

 

 

 

 

 

Total revenues

 

227,378

 

90,622

 

Gross Profit:

 

 

 

 

 

Prescription Pharmaceuticals

 

121,159

 

45,284

 

Consumer Health

 

9,004

 

4,372

 

 

 

 

 

 

 

Total gross profit

 

130,163

 

49,656

 

 

 

 

 

 

 

Operating expenses

 

56,896

 

26,216

 

 

 

 

 

 

 

Operating income

 

73,267

 

23,440

 

Other (expense)

 

(14,939

)

(5,845

)

 

 

 

 

 

 

Income from continuing operations before income taxes

 

$

58,328

 

$

17,595

 

 

 

 

 

 

 

 

 

 

 

 

Selected financial information by reportable segment is presented below (in thousands). The Company has recasted prior periods such as the three month periods ended March 31, 2014 included in the six months ended June 30, 2014, to reflect the new segment reporting.

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2015

 

2014
(as Restated)

 

2015

 

2014
(as Restated)

 

Revenues:

 

 

 

 

 

 

 

 

 

Prescription Pharmaceuticals

 

$

206,062

 

$

119,481

 

$

416,616

 

$

201,327

 

Consumer Health

 

14,858

 

14,391

 

31,682

 

23,167

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

220,920

 

133,872

 

448,298

 

224,494

 

 

 

 

 

 

 

 

 

 

 

Gross Profit:

 

 

 

 

 

 

 

 

 

Prescription Pharmaceuticals

 

120,929

 

52,335

 

242,088

 

97,619

 

Consumer Health

 

7,478

 

8,536

 

16,482

 

12,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total gross profit

 

128,407

 

60,871

 

258,570

 

110,527

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

62,305

 

60,135

 

119,201

 

86,351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

66,102

 

736

 

139,369

 

24,176

 

Other (expense)

 

(15,744

)

(1,987

)

(30,683

)

(7,832

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

$

50,358

 

$

(1,251

)

$

108,686

 

$

16,344

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected financial information by reportable segment is presented below (in thousands). The Company has recasted prior periods such as the three month periods ended March 31, 2014 included in the nine months ended September 30, 2014, to reflect the new segment reporting.

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2015

 

2014
(as Restated)

 

2015

 

2014
(as Restated)

 

Revenues:

 

 

 

 

 

 

 

 

 

Prescription Pharmaceuticals

 

$

240,995

 

$

114,953

 

$

657,611

 

$

316,280

 

Consumer Health

 

15,806

 

12,745

 

47,488

 

35,912

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

256,801

 

127,698

 

705,099

 

352,192

 

 

 

 

 

 

 

 

 

 

 

Gross Profit:

 

 

 

 

 

 

 

 

 

Prescription Pharmaceuticals

 

155,242

 

39,246

 

397,330

 

136,865

 

Consumer Health

 

7,770

 

6,254

 

24,252

 

19,162

 

 

 

 

 

 

 

 

 

 

 

Total gross profit

 

163,012

 

45,500

 

421,582

 

156,027

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

72,245

 

57,530

 

191,446

 

143,881

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

90,767

 

(12,030

)

230,136

 

12,146

 

Other (expense)

 

(16,752

)

(12,217

)

(47,435

)

(20,049

)

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

$

74,015

 

$

(24,247

)

$

182,701

 

$

(7,903

)