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SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2013
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS
On April 10, 2013, the Company issued a press release announcing, among other things, that on April 10, 2013 it initiated a voluntary recall of certain products manufactured in its Añasco, Puerto Rico facility between December 2010 and May 2011 and between November 2012 and March 2013. Specific lots of these products have been recalled because the Company identified that there may have been deviations from required processes in their production.

There have been no reports of patient injuries or other adverse events attributable to the products subject to the recall. The Company continues to manufacture all such products in its Añasco facility.

The Company believes that most of the recalled product lots manufactured between December 2010 and May 2011 have already been consumed, and therefore the recall of those lots will not have a material financial impact. However, the return of products manufactured between November 2012 and March 2013, substantially all of which were sold in the three months ended March 31, 2013, reduced revenues in the first quarter of 2013. In addition, the Company anticipates that it will not be able to produce all the affected products quickly enough to meet the demand from customers for at least several months.

Given the nature of the product recall, in connection with the preparation of our March 31, 2013 financial statements, the Company has reviewed account balances subject to estimation at March 31, 2013 and recorded adjustments to the financial statements to reflect changes in estimates as to the recoverability of inventory and sales returns. The Company recorded a charge of $4.2 million in connection with this recall across its U.S. Neurosurgery, U.S. Spine and Other and International segments. Of the total charge, $2.9 million was recorded as a reduction of net sales and $1.3 million was recorded as an increase in cost of sales. These estimates will be adjusted accordingly based on actual product returns.