Business Acqusition

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Business Acquisition

Business Acquisition

On July 30, 2014, the Company purchased the stock of EndoDynamix, Inc., a developer of minimally invasive surgical instruments, for a cash purchase price of $1.3 million and accrued $13.9 million in contingent consideration. The fair value of this acquisition included assets of $9.5 million related to in-process research and development to be amortized over a ten year period and $7.8 million in goodwill, and liabilities of $13.9 million related to contingent consideration and $1.8 million in deferred income tax liabilities. The allocation of purchase price is preliminary and therefore subject to adjustment in future periods. The remaining contingent consideration totaled $10.1 million as of December 31, 2014. Certain pro-forma and other disclosures are not included because the effects are not material.

On September 24, 2012, we purchased Viking Systems, Inc. ("Viking acquisition") for approximately $22.5 million in cash. Viking Systems, Inc. developed, manufactured and marketed visualization solutions for minimally invasive surgeries.

The unaudited pro forma statements of operations for the year ended December 31, 2012 are presented below. This pro forma statement of operations has been prepared for comparative purposes only and does not purport to be indicative of the results of operations which actually would have resulted had the Viking acquisition occurred on January 1, 2012, or which may result in the future.

	2012
Net sales	$	774,239
Net income	38,018
Earnings per share:
Basic	$	1.34
Diluted	1.33

Net sales of $3.4 million and a pre-tax loss of $1.5 million have been recorded in the consolidated statement of comprehensive income for the year ended December 31, 2012 related to the Viking acquisition.