þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
The Netherlands | 98-0509600 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Prins Bernhardplein 200 1097 JB Amsterdam, The Netherlands (Address of principal executive offices) | None (Zip Code) |
Large accelerated filer þ | Accelerated filer o | |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Page | |
• | future actions of the SEC, the United States Attorney’s office, the U.S. Food and Drug Administration (FDA), the Department of Health and Human Services, or other U.S. or foreign government authorities, including those resulting from increased scrutiny under the U.S. Foreign Corrupt Practices Act and similar laws, that could delay, limit, or suspend our development, manufacturing, commercialization, and sale of products, or result in seizures, injunctions, monetary sanctions, or criminal or civil liabilities; |
• | risks associated with the merger between Tornier N.V. (Tornier or legacy Tornier) and Wright Medical Group, Inc. (WMG or legacy Wright), including the failure to realize intended benefits and anticipated synergies and cost-savings from the transaction or delay in realization thereof; our businesses may not be combined successfully, or such combination may take longer, be more difficult, time-consuming or costly to accomplish than expected; and business disruption after the transaction, including adverse effects on employee retention, our sales and distribution channel, especially in light of territory transitions, and business relationships with third parties; |
• | risks associated with the divestiture of the U.S. rights to certain of legacy Tornier's ankle and silastic toe replacement products; |
• | liability for product liability claims on hip/knee (OrthoRecon) products sold by legacy Wright prior to the divestiture of the OrthoRecon business; |
• | risks and uncertainties associated with the recent metal-on-metal master settlement agreement and the settlement agreement with the three insurance companies, including without limitation, the final settlement amount and the final number of claims settled under the master settlement agreement, the possibility that the 95% opt-in requirement may not be achieved, the resolution of the remaining unresolved claims, the effect of the broad release of certain insurance coverage for present and future claims, and the resolution of WMT’s dispute with the remaining carriers; |
• | failure to realize the anticipated benefits from previous acquisitions and dispositions; |
• | adverse outcomes in existing product liability litigation; |
• | new product liability claims; |
• | inadequate insurance coverage; |
• | copycat claims against our modular hip systems resulting from a competitor’s recall of its modular hip product; |
• | the ability of a creditor of any one particular entity within our corporate structure to reach the assets of the other entities within our corporate structure not liable for the underlying claims of the one particular entity, despite our corporate structure which is intended to ring-fence liabilities; |
• | failure to obtain anticipated commercial sales of our AUGMENT® Bone Graft in the United States; |
• | challenges to our intellectual property rights or inability to defend our products against the intellectual property rights of others; |
• | adverse effects of diverting resources and attention to transition services provided to the purchaser of our large joints business; |
• | failures of, interruptions to, or unauthorized tampering with, our information technology systems; |
• | failure or delay in obtaining FDA or other regulatory approvals for our products; |
• | the potentially negative effect of our ongoing compliance efforts on our relationships with customers and on our ability to deliver timely and effective medical education, clinical studies, and new products; |
• | the possibility of private securities litigation or shareholder derivative suits; |
• | insufficient demand for and market acceptance of our new and existing products; |
• | recently enacted healthcare laws and changes in product reimbursements, which could generate downward pressure on our product pricing; |
• | potentially burdensome tax measures; |
• | lack of suitable business development opportunities; |
• | inability to capitalize on business development opportunities; |
• | product quality or patient safety issues; |
• | geographic and product mix impact on our sales; |
• | inability to retain key sales representatives, independent distributors, and other personnel or to attract new talent; |
• | inventory reductions or fluctuations in buying patterns by wholesalers or distributors; |
• | inability to generate sufficient cash flow to satisfy our capital requirements, including future milestone payments, and existing debt, including the conversion features of our convertible senior notes, or refinance our existing debt as it matures; |
• | inability to raise additional financing when needed and on favorable terms; |
• | the negative impact of the commercial and credit environment on us, our customers, and our suppliers; |
• | deriving a significant portion of our revenues from operations in certain geographic markets that are subject to political, economic, and social instability, including in particular France, and risks and uncertainties involved in launching our products in certain new geographic markets; |
• | fluctuations in foreign currency exchange rates; |
• | not successfully developing and marketing new products and technologies and implementing our business strategy; |
• | not successfully competing against our existing or potential competitors and the effect of significant recent consolidations amongst our competitors; |
• | the reliance of our business plan on certain market assumptions; |
• | our private label manufacturers failing to provide us with sufficient supply of their products, or failing to meet appropriate quality requirements; |
• | our inability to timely manufacture products or instrument sets to meet demand; |
• | our plans to bring the manufacturing of certain of our products in-house and possible disruptions we may experience in connection with such transition; |
• | our plans to increase our gross margins by taking certain actions designed to do so; |
• | the loss of key suppliers, which may result in our inability to meet customer orders for our products in a timely manner or within our budget; |
• | the incurrence of significant expenditures of resources to maintain relatively high levels of inventory, which could reduce our cash flows and increase the risk of inventory obsolescence, which could harm our operating results; |
• | consolidation in the healthcare industry that could lead to demands for price concessions or the exclusion of some suppliers from certain of our markets, which could have an adverse effect on our business, financial condition, or operating results; |
• | our clinical trials and their results and our reliance on third parties to conduct them; |
• | the compliance of our products and activities with the laws and regulations of the countries in which they are marketed, which compliance may be costly and time-consuming; |
• | the use, misuse or off-label use of our products that may harm our image in the marketplace or result in injuries that may lead to product liability suits, which could be costly to our business or result in governmental sanctions; and |
• | pending and future other litigation, which could have an adverse effect on our business, financial condition, or operating results. |
Wright Medical Group N.V. Condensed Consolidated Balance Sheets (In thousands, except share data) (unaudited) | |||||||
September 25, 2016 | December 27, 2015 | ||||||
Assets: | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 314,314 | $ | 139,804 | |||
Accounts receivable, net | 121,794 | 131,050 | |||||
Inventories | 170,819 | 210,701 | |||||
Prepaid expenses | 10,533 | 14,923 | |||||
Other current assets | 100,169 | 44,919 | |||||
Current assets held for sale | 21,805 | 18,487 | |||||
Total current assets | 739,434 | 559,884 | |||||
Property, plant and equipment, net | 211,096 | 224,256 | |||||
Goodwill | 855,800 | 866,989 | |||||
Intangible assets, net | 247,771 | 250,928 | |||||
Deferred income taxes | 2,777 | 2,580 | |||||
Other assets 1 | 259,448 | 137,174 | |||||
Non-current assets held for sale | — | 31,683 | |||||
Total assets 1 | $ | 2,316,326 | $ | 2,073,494 | |||
Liabilities and Shareholders’ Equity: | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 25,181 | $ | 30,904 | |||
Accrued expenses and other current liabilities | 399,985 | 171,171 | |||||
Current portion of long-term obligations | 4,117 | 2,171 | |||||
Current liabilities held for sale | 2,049 | 2,692 | |||||
Total current liabilities | 431,332 | 206,938 | |||||
Long-term debt and capital lease obligations 1 | 769,333 | 561,201 | |||||
Deferred income taxes | 28,611 | 41,755 | |||||
Other liabilities | 341,945 | 208,574 | |||||
Total liabilities 1 | 1,571,221 | 1,018,468 | |||||
Commitments and contingencies (Note 13) | |||||||
Shareholders’ equity: | |||||||
Ordinary shares, €0.03 par value, authorized: 320,000,000 shares; issued and outstanding: 103,225,384 shares at September 25, 2016 and 102,672,678 shares at December 27, 2015 | 3,809 | 3,790 | |||||
Additional paid-in capital | 1,901,386 | 1,835,586 | |||||
Accumulated other comprehensive income (loss) | 1,279 | (10,484 | ) | ||||
Accumulated deficit | (1,161,369 | ) | (773,866 | ) | |||
Total shareholders’ equity | 745,105 | 1,055,026 | |||||
Total liabilities and shareholders’ equity 1 | $ | 2,316,326 | $ | 2,073,494 |
1 | The prior period debt issuance costs were reclassified to account for adoption of ASU 2015-03 and ASU 2015-15 (See Note 2). |
Wright Medical Group N.V. Condensed Consolidated Statements of Operations (In thousands, except per share data) (unaudited) | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
September 25, 2016 | September 30, 2015 | September 25, 2016 | September 30, 2015 | ||||||||||||
Net sales | $ | 157,332 | $ | 80,139 | $ | 497,339 | $ | 238,493 | |||||||
Cost of sales 1, 2 | 46,149 | 23,052 | 141,824 | 63,812 | |||||||||||
Gross profit | 111,183 | 57,087 | 355,515 | 174,681 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative 1 | 129,840 | 85,997 | 401,069 | 250,801 | |||||||||||
Research and development 1 | 12,481 | 9,570 | 36,705 | 24,644 | |||||||||||
Amortization of intangible assets | 7,466 | 2,562 | 21,407 | 7,741 | |||||||||||
Total operating expenses | 149,787 | 98,129 | 459,181 | 283,186 | |||||||||||
Operating loss | (38,604 | ) | (41,042 | ) | (103,666 | ) | (108,505 | ) | |||||||
Interest expense, net | 16,795 | 11,185 | 41,673 | 29,793 | |||||||||||
Other (income) expense, net | (365 | ) | 10,236 | (3,494 | ) | 7,395 | |||||||||
Loss from continuing operations before income taxes | (55,034 | ) | (62,463 | ) | (141,845 | ) | (145,693 | ) | |||||||
(Benefit) provision for income taxes | (2,325 | ) | 187 | (6,913 | ) | 511 | |||||||||
Net loss from continuing operations | $ | (52,709 | ) | $ | (62,650 | ) | $ | (134,932 | ) | $ | (146,204 | ) | |||
Loss from discontinued operations, net of tax | $ | (57,436 | ) | $ | (36,211 | ) | $ | (252,571 | ) | $ | (46,720 | ) | |||
Net loss | $ | (110,145 | ) | $ | (98,861 | ) | $ | (387,503 | ) | $ | (192,924 | ) | |||
Net loss from continuing operations per share (Note 12): 3 | |||||||||||||||
Basic | $ | (0.51 | ) | $ | (1.19 | ) | $ | (1.31 | ) | $ | (2.78 | ) | |||
Diluted | $ | (0.51 | ) | $ | (1.19 | ) | $ | (1.31 | ) | $ | (2.78 | ) | |||
Net loss per share (Note 12): 3 | |||||||||||||||
Basic | $ | (1.07 | ) | $ | (1.87 | ) | $ | (3.77 | ) | $ | (3.67 | ) | |||
Diluted | $ | (1.07 | ) | $ | (1.87 | ) | $ | (3.77 | ) | $ | (3.67 | ) | |||
Weighted-average number of ordinary shares outstanding-basic 3 | 103,072 | 52,750 | 102,854 | 52,607 | |||||||||||
Weighted-average number of ordinary shares outstanding-diluted 3 | 103,072 | 52,750 | 102,854 | 52,607 |
1 | These line items include the following amounts of non-cash, share-based compensation expense for the periods indicated: |
Three months ended | Nine months ended | ||||||||||||||
September 25, 2016 | September 30, 2015 | September 25, 2016 | September 30, 2015 | ||||||||||||
Cost of sales | $ | 146 | $ | 17 | $ | 321 | $ | 28 | |||||||
Selling, general and administrative | 3,168 | 1,777 | 9,070 | 6,895 | |||||||||||
Research and development | 214 | 231 | 510 | 783 |
2 | Cost of sales includes amortization of inventory step-up adjustment of $10.3 million and $30.9 million for the three and nine months ended September 25, 2016, respectively. |
3 | The prior period weighted-average shares outstanding and net loss per share amounts were converted to meet post-merger valuations as described within Note 12. |
Three months ended | Nine months ended | ||||||||||||||
September 25, 2016 | September 30, 2015 | September 25, 2016 | September 30, 2015 | ||||||||||||
Net loss | $ | (110,145 | ) | $ | (98,861 | ) | $ | (387,503 | ) | $ | (192,924 | ) | |||
Other comprehensive income (loss): | |||||||||||||||
Changes in foreign currency translation | 4,480 | (1,581 | ) | 11,763 | (7,293 | ) | |||||||||
Other comprehensive income (loss) | 4,480 | (1,581 | ) | 11,763 | (7,293 | ) | |||||||||
Comprehensive loss | $ | (105,665 | ) | $ | (100,442 | ) | $ | (375,740 | ) | $ | (200,217 | ) |
Wright Medical Group N.V. Condensed Consolidated Statements of Cash Flows (In thousands) (unaudited) | |||||||
Nine months ended | |||||||
September 25, 2016 | September 30, 2015 | ||||||
Operating activities: | |||||||
Net loss | $ | (387,503 | ) | $ | (192,924 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation | 42,066 | 16,966 | |||||
Share-based compensation expense | 9,901 | 7,706 | |||||
Amortization of intangible assets | 21,746 | 7,741 | |||||
Amortization of deferred financing costs and debt discount | 28,676 | 20,175 | |||||
Deferred income taxes | (9,534 | ) | 2 | ||||
Provision for excess and obsolete inventory 1 | 16,171 | 10,926 | |||||
Non-cash loss on extinguishment of debt | 12,343 | 24,746 | |||||
Amortization of inventory step-up adjustment 1 | 34,346 | 69 | |||||
Non-cash adjustment to derivative fair values | (26,460 | ) | (12,022 | ) | |||
Impairment loss on large joints assets held for sale (Note 4) | 21,876 | — | |||||
Mark-to-market adjustment for CVRs (Note 6) | 8,968 | (7,290 | ) | ||||
Reduction of insurance receivable | — | 25,000 | |||||
Provision for metal-on-metal product liability loss (Note 13) | 188,732 | — | |||||
Other | 3,494 | 4,765 | |||||
Changes in assets and liabilities (net of acquisitions): | |||||||
Accounts receivable | 9,900 | 2,878 | |||||
Inventories 1 | (3,662 | ) | (33,779 | ) | |||
Prepaid expenses and other current assets | 20,066 | (2,872 | ) | ||||
Accounts payable | (6,659 | ) | 1,866 | ||||
Accrued expenses and other liabilities | (9,820 | ) | 12,191 | ||||
CVR payment in excess of value assigned as part of PPA | — | (27,983 | ) | ||||
Net cash used in operating activities | (25,353 | ) | (141,839 | ) | |||
Investing activities: | |||||||
Capital expenditures | (37,800 | ) | (34,013 | ) | |||
Acquisition of businesses | — | (4,905 | ) | ||||
Purchase of intangible assets | (4,761 | ) | (82 | ) | |||
Sales and maturities of available-for-sale marketable securities | — | 2,566 | |||||
Net cash used in investing activities | (42,561 | ) | (36,434 | ) | |||
Financing activities: | |||||||
Issuance of ordinary shares | 5,654 | 3,084 | |||||
Proceeds from convertible senior notes | 395,000 | 632,500 | |||||
Redemption of convertible senior notes | (102,974 | ) | (240,000 | ) | |||
Payment of notes premium | (1,619 | ) | (49,152 | ) | |||
Proceeds from stock warrants | 54,629 | 86,400 | |||||
Payment of notes hedge option | (99,816 | ) | (144,843 | ) | |||
Repurchase of stock warrants | (3,319 | ) | (59,803 | ) | |||
Proceeds from notes hedge option | 3,892 | 69,764 | |||||
Payments of deferred financing costs and equity issuance costs | (8,318 | ) | (20,081 | ) | |||
Proceeds from issuance of other long-term debt | 821 | — | |||||
Payment of contingent consideration | (664 | ) | (70,120 | ) | |||
Payments of capital lease obligations and other borrowings | (1,822 | ) | (530 | ) | |||
Net cash provided by financing activities | 241,464 | 207,219 | |||||
Effect of exchange rates on cash and cash equivalents | 960 | (1,837 | ) | ||||
Wright Medical Group N.V. Consolidated Statements of Cash Flows (Continued) (In thousands) | |||||||
Nine months ended | |||||||
September 25, 2016 | September 30, 2015 | ||||||
Net increase in cash and cash equivalents | 174,510 | 27,109 | |||||
Cash and cash equivalents, beginning of period | 139,804 | 227,326 | |||||
Cash and cash equivalents, end of period | $ | 314,314 | $ | 254,435 |
1 | The prior period balances were revised to show separate presentation related to provision for excess and obsolete inventory and amortization of inventory step-up adjustment. |
Fair value of ordinary shares effectively transferred to Tornier shareholders | $ | 1,005,468 | |
Fair value of ordinary shares effectively transferred to Tornier share award holders | 8,091 | ||
Fair value of ordinary shares effectively issued to Tornier stock option holders | 20,676 | ||
Fair value of total consideration | $ | 1,034,235 |
Cash and cash equivalents | $ | 30,117 | |
Accounts receivable | 63,797 | ||
Inventories | 138,659 | ||
Other current assets | 9,256 | ||
Property, plant and equipment, net | 122,927 | ||
Intangible assets, net | 213,600 | ||
Deferred income taxes | 1,399 | ||
Other assets | 8,658 | ||
Total assets acquired | 588,413 | ||
Current liabilities | (101,623 | ) | |
Long-term debt | (79,554 | ) | |
Deferred income taxes | (31,878 | ) | |
Other non-current liabilities | (8,434 | ) | |
Total liabilities assumed | (221,489 | ) | |
Net assets acquired | 366,924 | ||
Goodwill | 667,311 | ||
Total purchase consideration | $ | 1,034,235 |
Three months ended | Nine months ended | ||||||||||||||
September 25, 2016 | September 30, 2015 | September 25, 2016 | September 30, 2015 | ||||||||||||
Net sales | $ | 157,332 | $ | 144,795 | $ | 497,339 | $ | 444,978 | |||||||
Net loss from continuing operations | (43,648 | ) | (89,380 | ) | (110,828 | ) | (217,653 | ) |
Three months ended | Nine months ended | ||||||
September 25, 2016 | September 25, 2016 | ||||||
Net sales | $ | 7,320 | $ | 29,220 | |||
Cost of sales | 4,348 | 15,708 | |||||
Selling, general and administrative | 4,897 | 15,069 | |||||
Other | 396 | 1,630 | |||||
Loss from discontinued operations before income taxes | (2,321 | ) | (3,187 | ) | |||
Impairment loss on assets held for sale, before income taxes | — | (21,876 | ) | ||||
Total loss from discontinued operations before income taxes | (2,321 | ) | (25,063 | ) | |||
Benefit for income taxes | (759 | ) | (5,529 | ) | |||
Total loss from discontinued operations, net of tax | $ | (1,562 | ) | $ | (19,534 | ) | |
Net loss from discontinued operations per share (Note 12): | |||||||
Basic | $ | (0.02 | ) | $ | (0.19 | ) | |
Diluted | $ | (0.02 | ) | $ | (0.19 | ) | |
Weighted-average number of ordinary shares outstanding-basic | 103,072 | 102,854 | |||||
Weighted-average number of ordinary shares outstanding-diluted | 103,072 | 102,854 |
September 25, 2016 | December 27, 2015 | ||||||
Assets: | |||||||
Inventories, net | $ | 13,836 | $ | 18,408 | |||
Prepaid expenses | 81 | 79 | |||||
Property, plant and equipment, net | 15,060 | 16,513 | |||||
Goodwill | 8,466 | 9,355 | |||||
Intangible assets, net | 6,238 | 5,815 | |||||
Impairment loss on assets held for sale | (21,876 | ) | — | ||||
Total assets held for sale | $ | 21,805 | $ | 50,170 | |||
Liabilities: | |||||||
Other current liabilities | $ | 2,049 | $ | 2,692 | |||
Total liabilities held for sale | $ | 2,049 | $ | 2,692 |
Three months ended | Nine months ended | ||||||||||||||
September 25, 2016 | September 30, 2015 | September 25, 2016 | September 30, 2015 | ||||||||||||
Net sales | $ | — | $ | — | $ | — | $ | — | |||||||
Selling, general and administrative | 55,874 | 36,211 | 233,037 | 46,720 | |||||||||||
Loss from discontinued operations before income taxes | (55,874 | ) | (36,211 | ) | (233,037 | ) | (46,720 | ) | |||||||
Provision for income taxes | — | — | — | — | |||||||||||
Total loss from discontinued operations, net of tax | $ | (55,874 | ) | $ | (36,211 | ) | $ | (233,037 | ) | $ | (46,720 | ) | |||
Net loss from discontinued operations per share (Note 12): | |||||||||||||||
Basic1 | $ | (0.54 | ) | $ | (0.68 | ) | $ | (2.27 | ) | $ | (0.89 | ) | |||
Diluted1 | $ | (0.54 | ) | $ | (0.68 | ) | $ | (2.27 | ) | $ | (0.89 | ) | |||
Weighted-average number of ordinary shares outstanding-basic 1 | 103,072 | 52,750 | 102,854 | 52,607 | |||||||||||
Weighted-average number of ordinary shares outstanding-diluted 1 | 103,072 | 52,750 | 102,854 | 52,607 |
1 | The prior period weighted-average shares outstanding and net loss per share amounts were converted to meet post-merger valuations as described within Note 12. |
September 25, 2016 | December 27, 2015 | ||||||
Raw materials | $ | 19,792 | $ | 18,057 | |||
Work-in-process | 25,004 | 27,946 | |||||
Finished goods | 126,023 | 164,698 | |||||
$ | 170,819 | $ | 210,701 |
Level 1: | Financial instruments with unadjusted, quoted prices listed on active market exchanges. |
Level 2: | Financial instruments determined using prices for recently traded financial instruments with similar underlying terms as well as directly or indirectly observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. |
Level 3: | Financial instruments that are not actively traded on a market exchange. This category includes situations where there is little, if any, market activity for the financial instrument. The prices are determined using significant unobservable inputs or valuation techniques. |
Location on condensed consolidated balance sheet | September 25, 2016 | |||
2021 Notes Hedges | Other assets | $ | 169,488 | |
2021 Notes Conversion Derivative | Other liabilities | $ | 172,702 |
Three months ended | Nine months ended | |||||||
September 25, 2016 | September 25, 2016 | |||||||
2021 Notes Hedges | $ | 85,182 | $ | 69,671 | ||||
2021 Notes Conversion Derivative | (86,275 | ) | (55,478 | ) | ||||
Net (loss)/gain on changes in fair value | $ | (1,093 | ) | $ | 14,193 |
Location on condensed consolidated balance sheet | September 25, 2016 | December 27, 2015 | |||||
2020 Notes Hedges | Other assets | $ | 83,308 | $ | 127,758 | ||
2020 Notes Conversion Derivative | Other liabilities | $ | 84,856 | $ | 129,107 |
Three months ended | Nine months ended | |||||||||||||||
September 25, 2016 | September 30, 2015 | September 25, 2016 | September 30, 2015 | |||||||||||||
2020 Notes Hedges | $ | 49,887 | $ | (21,512 | ) | $ | (40,558 | ) | $ | (42,617 | ) | |||||
2020 Notes Conversion Derivative | (45,421 | ) | 21,757 | 44,701 | 46,169 | |||||||||||
Net gain on changes in fair value | $ | 4,466 | $ | 245 | $ | 4,143 | $ | 3,552 |
Location on condensed consolidated balance sheet | September 25, 2016 | December 27, 2015 | |||||
2017 Notes Conversion Derivative | Other liabilities | $ | 247 | $ | 10,440 |
Three months ended | Nine months ended | |||||||||||||||
September 25, 2016 | September 30, 2015 | September 25, 2016 | September 30, 2015 | |||||||||||||
2017 Notes Hedges | $ | — | $ | — | $ | — | $ | (10,236 | ) | |||||||
2017 Notes Conversion Derivative | (186 | ) | 4,407 | 8,124 | 18,705 | |||||||||||
Net (loss)/gain on changes in fair value | $ | (186 | ) | $ | 4,407 | $ | 8,124 | $ | 8,469 |
2017 Notes Conversion Derivative | 2020 Notes Conversion Derivative | 2020 Notes Hedge | 2021 Notes Conversion Derivative | 2021 Notes Hedge | |
Stock Price Volatility (1) | 35.12% | 33.34% | 33.34% | 36.63% | 36.63% |
Credit Spread for Wright (2) | 10.35% | 3.26% | N/A | 4.11% | N/A |
Credit Spread for Deutsche Bank AG (3) | N/A | N/A | 1.96% | N/A | N/A |
Credit Spread for Wells Fargo Securities, LLC (3) | N/A | N/A | 0.34% | N/A | N/A |
Credit Spread for JPMorgan Chase Bank (3) | N/A | N/A | 0.38% | N/A | 0.61% |
Credit Spread for Bank of America (3) | N/A | N/A | N/A | N/A | 0.78% |
(1) | Volatility selected based on historical and implied volatility of ordinary shares of Wright Medical Group N.V. |
(2) | Credit spread implied from traded price. |
(3) | Credit spread of each bank is estimated using CDS curves. Source: Bloomberg. |
Total | Quoted prices in active markets (Level 1) | Prices with other observable inputs (Level 2) | Prices with unobservable inputs (Level 3) | |||||||||
At September 25, 2016 | ||||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 314,314 | $ | 314,314 | $ | — | $ | — | ||||
2020 Notes Hedges | 83,308 | — | — | 83,308 | ||||||||
2021 Notes Hedges | 169,488 | — | — | 169,488 | ||||||||
Total | $ | 567,110 | $ | 314,314 | $ | — | $ | 252,796 | ||||
Liabilities | ||||||||||||
2017 Notes Conversion Derivative | $ | 247 | $ | — | $ | — | $ | 247 | ||||
2020 Notes Conversion Derivative | 84,856 | — | — | 84,856 | ||||||||
2021 Notes Conversion Derivative | 172,702 | — | — | 172,702 | ||||||||
Contingent consideration | 2,640 | — | — | 2,640 | ||||||||
Contingent consideration (CVRs) | 37,279 | 37,279 | — | — | ||||||||
Total | $ | 297,724 | $ | 37,279 | $ | — | $ | 260,445 |
Total | Quoted prices in active markets (Level 1) | Prices with other observable inputs (Level 2) | Prices with unobservable inputs (Level 3) | |||||||||
At December 27, 2015 | ||||||||||||
Assets | ||||||||||||
Cash and cash equivalents | $ | 139,804 | $ | 139,804 | $ | — | $ | — | ||||
2020 Notes Hedges | 127,758 | — | — | 127,758 | ||||||||
Total | $ | 267,562 | $ | 139,804 | $ | — | $ | 127,758 | ||||
Liabilities | ||||||||||||
2017 Notes Conversion Derivative | $ | 10,440 | $ | — | $ | — | $ | 10,440 | ||||
2020 Notes Conversion Derivative | 129,107 | — | — | 129,107 | ||||||||
Contingent consideration | 2,340 | — | — | 2,340 | ||||||||
Contingent consideration (CVRs) | 28,310 | 28,310 | — | — | ||||||||
Total | $ | 170,197 | $ | 28,310 | $ | — | $ | 141,887 |
Balance at December 27, 2015 | Additions | Transfers into Level 3 | Gain/(loss) included in earnings | Settlements | Currency | Balance at September 25, 2016 | ||||||||||||||||
2017 Notes Conversion Derivative | $ | (10,440 | ) | $ | — | $ | — | $ | 8,124 | $ | 2,069 | $ | — | $ | (247 | ) | ||||||
2020 Notes Hedges | 127,758 | — | — | (40,558 | ) | (3,892 | ) | — | 83,308 | |||||||||||||
2020 Notes Conversion Derivative | (129,107 | ) | — | — | 44,701 | (450 | ) | — | (84,856 | ) | ||||||||||||
2021 Notes Hedges | — | 99,817 | — | 69,671 | — | — | 169,488 | |||||||||||||||
2021 Notes Conversion Derivative | — | (117,224 | ) | — | (55,478 | ) | — | — | (172,702 | ) | ||||||||||||
Contingent consideration | (2,340 | ) | — | — | (555 | ) | 297 | (42 | ) | (2,640 | ) |
September 25, 2016 | December 27, 2015 | ||||||
Property, plant and equipment, at cost | $ | 364,034 | $ | 331,416 | |||
Less: Accumulated depreciation | (152,938 | ) | (107,160 | ) | |||
$ | 211,096 | $ | 224,256 |
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | Total | |||||||||
Goodwill at December 27, 2015 | $ | 221,327 | $ | 555,312 | $ | 90,350 | $ | 866,989 | ||||
Goodwill adjustment associated with Wright/Tornier merger | (2,802 | ) | 3,357 | (14,223 | ) | (13,668 | ) | |||||
Foreign currency translation | — | — | 2,479 | 2,479 | ||||||||
Goodwill at September 25, 2016 | $ | 218,525 | $ | 558,669 | $ | 78,606 | $ | 855,800 |
September 25, 2016 | December 27, 2015 | ||||||||||||||
Cost | Accumulated amortization | Cost | Accumulated amortization | ||||||||||||
Indefinite life intangibles: | |||||||||||||||
In-process research and development (IPRD) technology | $ | 15,523 | $ | 15,290 | |||||||||||
Total indefinite life intangibles | 15,523 | 15,290 | |||||||||||||
Finite life intangibles: | |||||||||||||||
Distribution channels | 900 | $ | 302 | 250 | $ | 219 | |||||||||
Completed technology | 124,904 | 23,907 | 122,604 | 14,828 | |||||||||||
Licenses | 4,868 | 1,015 | 4,868 | 703 | |||||||||||
Customer relationships | 126,351 | 13,523 | 115,457 | 7,918 | |||||||||||
Trademarks | 14,032 | 5,997 | 14,440 | 3,393 | |||||||||||
Non-compete agreements | 11,969 | 6,372 | 7,521 | 2,917 | |||||||||||
Other | 556 | 216 | 527 | 51 | |||||||||||
Total finite life intangibles | 283,580 | $ | 51,332 | 265,667 | $ | 30,029 | |||||||||
Total intangibles | 299,103 | 280,957 | |||||||||||||
Less: Accumulated amortization | (51,332 | ) | (30,029 | ) | |||||||||||
Intangible assets, net | $ | 247,771 | $ | 250,928 |
September 25, 2016 | December 27, 2015 | ||||||
Capital lease obligations | $ | 14,919 | $ | 13,763 | |||
2021 Notes | 276,580 | — | |||||
2020 Notes 1 | 475,100 | 489,006 | |||||
2017 Notes 1 | 1,949 | 55,865 | |||||
Mortgages/other | 3,008 | 2,740 | |||||
Shareholder debt | 1,894 | 1,998 | |||||
773,450 | 563,372 | ||||||
Less: current portion | (4,117 | ) | (2,171 | ) | |||
$ | 769,333 | $ | 561,201 |
1 | The prior period debt issuance costs were reclassified to account for adoption of ASU 2015-03 and ASU 2015-15 (See Note 2). |
September 25, 2016 | December 27, 2015 | ||||||
Principal amount of 2021 Notes | $ | 395,000 | $ | — | |||
Unamortized debt discount | (111,702 | ) | — | ||||
Unamortized debt issuance costs | (6,718 | ) | — | ||||
Net carrying amount of 2021 Notes | $ | 276,580 | $ | — |
September 25, 2016 | December 27, 2015 | ||||||
Principal amount of 2020 Notes | $ | 587,500 | $ | 632,500 | |||
Unamortized debt discount | (100,226 | ) | (127,953 | ) | |||
Unamortized debt issuance costs | (12,174 | ) | (15,541 | ) | |||
Net carrying amount of 2020 Notes1 | $ | 475,100 | $ | 489,006 |
1 | The prior period debt issuance costs were reclassified to account for adoption of ASU 2015-03 and ASU 2015-15 (See Note 2). |
September 25, 2016 | December 27, 2015 | ||||||
Principal amount of 2017 Notes | $ | 2,026 | $ | 60,000 | |||
Unamortized debt discount | (66 | ) | (3,495 | ) | |||
Unamortized debt issuance costs | (11 | ) | (640 | ) | |||
Net carrying amount of 2017 Notes1 | $ | 1,949 | $ | 55,865 |
1 | The prior period debt issuance costs were reclassified to account for adoption of ASU 2015-03 and 2015-15 (See Note 2). |
Nine months ended September 25, 2016 | |||
Currency translation adjustment | |||
Balance at December 27, 2015 | $ | (10,484 | ) |
Other comprehensive income | 11,763 | ||
Balance at September 25, 2016 | $ | 1,279 |
Nine months ended September 30, 2015 | |||
Currency translation adjustment | |||
Balance at December 31, 2014 | $ | 2,398 | |
Other comprehensive loss | (7,293 | ) | |
Balance at September 30, 2015 | $ | (4,895 | ) |
Nine Months Ended September 25, 2016 | ||||||||||||||||||||||
Ordinary shares | Additional paid-in capital 1 | Accumulated deficit | Accumulated other comprehensive income (loss) | Total shareholders' equity | ||||||||||||||||||
Number of shares 1 | Amount 1 | |||||||||||||||||||||
Balance at December 27, 2015 | 102,672,678 | $ | 3,790 | $ | 1,835,586 | $ | (773,866 | ) | $ | (10,484 | ) | $ | 1,055,026 | |||||||||
2016 Activity: | ||||||||||||||||||||||
Net loss | — | — | — | (387,503 | ) | — | (387,503 | ) | ||||||||||||||
Foreign currency translation | — | — | — | — | 11,763 | 11,763 | ||||||||||||||||
Issuances of ordinary shares | 287,328 | 10 | 5,654 | — | — | 5,664 | ||||||||||||||||
Vesting of restricted stock units | 265,378 | 9 | (9 | ) | — | — | — | |||||||||||||||
Share-based compensation | — | — | 9,843 | — | — | 9,843 | ||||||||||||||||
Issuance of stock warrants, net of repurchases and equity issuance costs | — | — | 50,312 | — | — | 50,312 | ||||||||||||||||
Balance at September 25, 2016 | 103,225,384 | $ | 3,809 | $ | 1,901,386 | $ | (1,161,369 | ) | $ | 1,279 | $ | 745,105 | ||||||||||
Nine Months Ended September 30, 2015 | ||||||||||||||||||||||
Ordinary shares | Additional paid-in capital 1 | Accumulated deficit | Accumulated other comprehensive income (loss) | Total shareholders' equity | ||||||||||||||||||
Number of shares 1 | Amount 1 | |||||||||||||||||||||
Balance at December 31, 2014 | 52,913,093 | $ | 2,101 | $ | 749,469 | $ | (475,165 | ) | $ | 2,398 | $ | 278,803 | ||||||||||
2015 Activity: | ||||||||||||||||||||||
Net loss | — | — | — | (192,924 | ) | — | (192,924 | ) | ||||||||||||||
Foreign currency translation | — | — | — | — | (7,293 | ) | (7,293 | ) | ||||||||||||||
Issuances of ordinary shares | 137,944 | 5 | 3,085 | — | — | 3,090 | ||||||||||||||||
Grant of non-vested ordinary shares | 5,246 | — | — | — | — | — | ||||||||||||||||
Forfeitures of non-vested ordinary shares | (5,869 | ) | — | — | — | — | — | |||||||||||||||
Vesting of restricted stock units | 12,534 | 7 | (7 | ) | — | — | — | |||||||||||||||
Share-based compensation | — | — | 7,720 | — | — | 7,720 | ||||||||||||||||
Issuance of stock warrants, net of repurchases and equity issuance costs | — | — | 24,575 | — | — | 24,575 | ||||||||||||||||
Balance at September 30, 2015 | 53,062,948 | $ | 2,113 | $ | 784,842 | $ | (668,089 | ) | $ | (4,895 | ) | $ | 113,971 |
1 | The prior period balances of ordinary shares and additional paid-in capital were restated to meet post-merger conversion values as further described within Note 12. |
• | ordinary shares and additional paid-in capital balances for the three and nine months ended September 30, 2015 included in Note 11; |
• | September 30, 2015 earnings per share and weighted-average ordinary shares outstanding on the statements of operations; and |
• | September 30, 2015 weighted-average ordinary shares outstanding below. |
Three months ended | Nine months ended | ||||||||||
September 25, 2016 | September 30, 2015 | September 25, 2016 | September 30, 2015 | ||||||||
Weighted-average number of ordinary shares outstanding — basic1 | 103,072 | 52,750 | 102,854 | 52,607 | |||||||
Weighted-average number of ordinary shares outstanding — diluted1 | 103,072 | 52,750 | 102,854 | 52,607 |
1 | The prior period balances were converted to meet post-merger valuations as described above. |
Three months ended September 25, 2016 | |||||||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | Corporate 1 | Total | |||||||||||
Net sales from external customers | $ | 70,654 | $ | 47,411 | $ | 39,267 | $ | — | $ | 157,332 | |||||
Depreciation expense | 3,494 | 3,181 | 3,086 | 5,124 | 14,885 | ||||||||||
Amortization expense | — | — | — | 7,466 | 7,466 | ||||||||||
Segment operating income (loss) | $ | 17,980 | $ | 12,594 | $ | (2,945 | ) | $ | (47,822 | ) | $ | (20,193 | ) | ||
Other: | |||||||||||||||
Inventory step-up amortization | 10,306 | ||||||||||||||
Transaction and transition expenses | 6,532 | ||||||||||||||
Product rationalization | 1,573 | ||||||||||||||
Operating loss | (38,604 | ) | |||||||||||||
Interest expense, net | 16,795 | ||||||||||||||
Other income, net | (365 | ) | |||||||||||||
Loss before income taxes | $ | (55,034 | ) |
Three months ended September 30, 2015 | |||||||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | Corporate 1 | Total | |||||||||||
Net sales from external customers | $ | 56,740 | $ | 3,654 | $ | 19,745 | $ | — | $ | 80,139 | |||||
Depreciation expense | 3,288 | 212 | 827 | 1,941 | 6,268 | ||||||||||
Amortization expense | — | — | — | 2,546 | 2,546 | ||||||||||
Segment operating income (loss) | $ | 7,716 | $ | 1,526 | $ | (2,158 | ) | $ | (28,203 | ) | $ | (21,119 | ) | ||
Other: | |||||||||||||||
Inventory step-up amortization | 20 | ||||||||||||||
Distributor conversion and non-compete charges | 16 | ||||||||||||||
Due diligence, transaction and transition expenses | 19,887 | ||||||||||||||
Operating loss | (41,042 | ) | |||||||||||||
Interest expense, net | 11,185 | ||||||||||||||
Other income, net | 10,236 | ||||||||||||||
Loss before income taxes | $ | (62,463 | ) |
Nine months ended September 25, 2016 | |||||||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | Corporate 1 | Total | |||||||||||
Net sales from external customers | $ | 214,559 | $ | 149,923 | $ | 132,857 | $ | — | $ | 497,339 | |||||
Depreciation expense | 9,183 | 8,400 | 8,541 | 14,881 | 41,005 | ||||||||||
Amortization expense | — | — | — | 21,407 | 21,407 | ||||||||||
Segment operating income (loss) | $ | 57,813 | $ | 46,729 | $ | 840 | $ | (146,792 | ) | $ | (41,410 | ) | |||
Other: | |||||||||||||||
Inventory step-up amortization | 30,922 | ||||||||||||||
Transaction and transition expenses | 24,425 | ||||||||||||||
Product rationalization | 3,527 | ||||||||||||||
Legal settlement | 1,800 | ||||||||||||||
Management changes | 1,348 | ||||||||||||||
Costs associated with new convertible debt | 234 | ||||||||||||||
Operating loss | (103,666 | ) | |||||||||||||
Interest expense, net | 41,673 | ||||||||||||||
Other expense, net | (3,494 | ) | |||||||||||||
Loss before income taxes | $ | (141,845 | ) |
Nine months ended September 25, 2015 | |||||||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | Corporate 1 | Total | |||||||||||
Net sales from external customers | $ | 164,448 | $ | 11,702 | $ | 62,343 | $ | — | $ | 238,493 | |||||
Depreciation expense | 9,050 | 643 | 2,330 | 4,943 | 16,966 | ||||||||||
Amortization expense | — | — | — | 7,676 | 7,676 | ||||||||||
Segment operating income (loss) | $ | 19,666 | $ | 4,902 | $ | (7,256 | ) | $ | (82,643 | ) | $ | (65,331 | ) | ||
Other: | |||||||||||||||
Inventory step-up amortization | 69 | ||||||||||||||
Distributor conversion and non-compete charges | 65 | ||||||||||||||
Due diligence, transaction and transition expenses | 43,040 | ||||||||||||||
Operating loss | (108,505 | ) | |||||||||||||
Interest expense, net | 29,793 | ||||||||||||||
Other income, net | 7,395 | ||||||||||||||
Loss before income taxes | $ | (145,693 | ) |
1 | The Corporate category primarily reflects general and administrative expenses not specifically associated with the U.S. Lower Extremities & Biologics, U.S. Upper Extremities, and International Extremities & Biologics segments. These non-allocated corporate expenses relate to global administrative expenses that support all segments, including salaries and benefits of certain executive officers and expenses such as: information technology administration and support; corporate headquarters; legal, compliance, and corporate finance functions; insurance; and all share-based compensation. |
Three months ended | |||||||
Net sales by geographic region: | September 25, 2016 | September 30, 2015 | |||||
United States | $ | 118,065 | $ | 60,394 | |||
EMEA | 23,693 | 10,718 | |||||
Other | 15,574 | 9,027 | |||||
Total | $ | 157,332 | $ | 80,139 |
Nine months ended | |||||||
Net sales by geographic region: | September 25, 2016 | September 30, 2015 | |||||
United States | $ | 364,482 | $ | 176,150 | |||
EMEA | 87,040 | 34,951 | |||||
Other | 45,817 | 27,392 | |||||
Total | $ | 497,339 | $ | 238,493 |
September 25, 2016 | ||||||||||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | Corporate | Assets held for sale | Total | |||||||||||||
Total assets | $ | 464,451 | $ | 811,318 | $ | 316,372 | $ | 702,380 | $ | 21,805 | $ | 2,316,326 |
December 27, 2015 | ||||||||||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | Corporate | Assets held for sale | Total | |||||||||||||
Total assets | $ | 490,798 | $ | 833,432 | $ | 365,621 | $ | 333,473 | $ | 50,170 | $ | 2,073,494 |
• | Upper extremities, which include joint implants and bone fixation devices for the shoulder, elbow, wrist, and hand; |
• | Lower extremities, which include joint implants and bone fixation devices for the foot and ankle; |
• | Biologics, which include products used to support treatment of damaged or diseased bone, tendons, and soft tissues or to stimulate bone growth; and |
• | Sports medicine and other, which include products used across several anatomic sites to mechanically repair tissue-to-tissue or tissue-to-bone injuries and other ancillary products |
• | $11.1 million increase in profitability of our U.S. Upper Extremities segment driven almost entirely by the acquired Tornier business; |
• | $10.3 million increase in profitability of our U.S. Lower Extremities and Biologics segment driven by leverage on increased sales, as operating expenses grew at a lower rate than net sales; |
• | $10.6 million increase in other income, net, primarily driven by changes in fair value adjustments associated with derivative assets and liabilities and CVRs; and |
• | $13.4 million decrease in transaction and transition expenses. |
• | $19.6 million of incremental Corporate expenses, primarily due to expenses from the acquired Tornier business; |
• | $10.3 million of amortization of the inventory step-up fair value adjustment associated with the Wright/Tornier merger; and |
• | $5.6 million of incremental interest expense, primarily due to cash interest and non-cash amortization of debt discount and deferred financing charges associated with the 2021 Notes that were issued in the second quarter of 2016. |
Three months ended | |||||||||||
September 25, 2016 | September 30, 2015 | ||||||||||
Amount | % of net sales | Amount | % of net sales | ||||||||
Net sales | $ | 157,332 | 100.0 | % | $ | 80,139 | 100.0 | % | |||
Cost of sales 1,2 | 46,149 | 29.3 | % | 23,052 | 28.8 | % | |||||
Gross profit | 111,183 | 70.7 | % | 57,087 | 71.2 | % | |||||
Operating expenses: | |||||||||||
Selling, general and administrative 1 | 129,840 | 82.5 | % | 85,997 | 107.3 | % | |||||
Research and development 1 | 12,481 | 7.9 | % | 9,570 | 11.9 | % | |||||
Amortization of intangible assets | 7,466 | 4.7 | % | 2,562 | 3.2 | % | |||||
Total operating expenses | 149,787 | 95.2 | % | 98,129 | 122.4 | % | |||||
Operating loss | (38,604 | ) | (24.5 | )% | (41,042 | ) | (51.2 | )% | |||
Interest expense, net | 16,795 | 10.7 | % | 11,185 | 14.0 | % | |||||
Other (income) expense, net | (365 | ) | (0.2 | )% | 10,236 | 12.8 | % | ||||
Loss from continuing operations before income taxes | (55,034 | ) | (35.0 | )% | (62,463 | ) | (77.9 | )% | |||
(Benefit) provision for income taxes | (2,325 | ) | (1.5 | )% | 187 | 0.2 | % | ||||
Net loss from continuing operations | $ | (52,709 | ) | (33.5 | )% | $ | (62,650 | ) | (78.2 | )% | |
Loss from discontinued operations, net of tax | (57,436 | ) | (36,211 | ) | |||||||
Net loss | $ | (110,145 | ) | $ | (98,861 | ) |
Three months ended | |||||||||||
September 25, 2016 | % of net sales | September 30, 2015 | % of net sales | ||||||||
Cost of sales | $ | 146 | 0.1 | % | $ | 17 | — | % | |||
Selling, general and administrative | 3,168 | 2.0 | % | 1,777 | 2.2 | % | |||||
Research and development | 214 | 0.1 | % | 231 | 0.3 | % |
Three months ended | ||||||||||
September 25, 2016 | September 30, 2015 | % change | ||||||||
U.S. | ||||||||||
Lower extremities | $ | 51,586 | $ | 43,929 | 17.4 | % | ||||
Upper extremities | 46,207 | 3,654 | 1,164.6 | % | ||||||
Biologics | 18,247 | 12,198 | 49.6 | % | ||||||
Sports med & other | 2,025 | 613 | 230.3 | % | ||||||
Total U.S. | $ | 118,065 | $ | 60,394 | 95.5 | % | ||||
International | ||||||||||
Lower extremities | $ | 14,201 | $ | 10,917 | 30.1 | % | ||||
Upper extremities | 17,326 | 1,764 | 882.2 | % | ||||||
Biologics | 4,739 | 5,260 | (9.9 | )% | ||||||
Sports med & other | 3,001 | 1,804 | 66.4 | % | ||||||
Total International | $ | 39,267 | $ | 19,745 | 98.9 | % | ||||
Total net sales | $ | 157,332 | $ | 80,139 | 96.3 | % |
Three months ended September 30, 2015 | |||||||||||||||
Standalone Wright Medical Group, Inc. | Standalone Tornier N.V., recast 1 | Discontinued net sales 2 | Non-GAAP combined pro forma net sales | ||||||||||||
U.S. | |||||||||||||||
Lower extremities | $ | 43,929 | $ | 8,675 | $ | (2,905 | ) | $ | 49,699 | ||||||
Upper extremities | 3,654 | 37,908 | — | 41,562 | |||||||||||
Biologics | 12,198 | 412 | — | 12,610 | |||||||||||
Sports med & other | 613 | 1,810 | — | 2,423 | |||||||||||
Total extremities & biologics | 60,394 | 48,805 | (2,905 | ) | 106,294 | ||||||||||
Large joint | — | 33 | (33 | ) | — | ||||||||||
Total U.S. | $ | 60,394 | $ | 48,838 | $ | (2,938 | ) | $ | 106,294 | ||||||
International | |||||||||||||||
Lower extremities | $ | 10,917 | $ | 2,275 | $ | — | $ | 13,192 | |||||||
Upper extremities | 1,764 | 14,862 | — | 16,626 | |||||||||||
Biologics | 5,260 | 114 | — | 5,374 | |||||||||||
Sports med & other | 1,804 | 1,505 | — | 3,309 | |||||||||||
Total extremities & biologics | 19,745 | 18,756 | — | 38,501 | |||||||||||
Large joint | — | 7,350 | (7,350 | ) | — | ||||||||||
Total International | $ | 19,745 | $ | 26,106 | $ | (7,350 | ) | $ | 38,501 | ||||||
Global | |||||||||||||||
Lower extremities | $ | 54,846 | $ | 10,950 | $ | (2,905 | ) | $ | 62,891 | ||||||
Upper extremities | 5,418 | 52,770 | — | 58,188 | |||||||||||
Biologics | 17,458 | 526 | — | 17,984 | |||||||||||
Sports med & other | 2,417 | 3,315 | — | 5,732 | |||||||||||
Total extremities & biologics | 80,139 | 67,561 | (2,905 | ) | 144,795 | ||||||||||
Large joint | — | 7,383 | (7,383 | ) | — | ||||||||||
Total sales | $ | 80,139 | $ | 74,944 | $ | (10,288 | ) | $ | 144,795 |
1 | Legacy Tornier product line sales have been recast to reflect the reclassification of cement, instruments and freight from the historical Tornier product line "Large Joints and Other" to the product line associated with those revenues that will be utilized for future revenue reporting. |
2 | To reduce from Tornier’s historical sales the U.S. sales associated with Tornier’s Salto Talaris and Salto XT ankle replacement products and silastic toe replacement products and the global sales associated with Tornier's Large Joints business. |
Net sales | Non-GAAP combined pro forma net sales | % change | ||||||||
Three months ended September 25, 2016 | Three months ended September 30, 2015 | |||||||||
U.S. | ||||||||||
Lower extremities | $ | 51,586 | $ | 49,699 | 3.8 | % | ||||
Upper extremities | 46,207 | 41,562 | 11.2 | % | ||||||
Biologics | 18,247 | 12,610 | 44.7 | % | ||||||
Sports med & other | 2,025 | 2,423 | (16.4 | )% | ||||||
Total U.S. | $ | 118,065 | $ | 106,294 | 11.1 | % | ||||
International | ||||||||||
Lower extremities | $ | 14,201 | $ | 13,192 | 7.6 | % | ||||
Upper extremities | 17,326 | 16,626 | 4.2 | % | ||||||
Biologics | 4,739 | 5,374 | (11.8 | )% | ||||||
Sports med & other | 3,001 | 3,309 | (9.3 | )% | ||||||
Total International | $ | 39,267 | $ | 38,501 | 2.0 | % | ||||
Global | ||||||||||
Lower extremities | $ | 65,787 | $ | 62,891 | 4.6 | % | ||||
Upper extremities | 63,533 | 58,188 | 9.2 | % | ||||||
Biologics | 22,986 | 17,984 | 27.8 | % | ||||||
Sports med & other | 5,026 | 5,732 | (12.3 | )% | ||||||
Total sales | $ | 157,332 | $ | 144,795 | 8.7 | % |
Nine months ended | |||||||||||
September 25, 2016 | September 30, 2015 | ||||||||||
Amount | % of net sales | Amount | % of net sales | ||||||||
Net sales | $ | 497,339 | 100.0 | % | $ | 238,493 | 100.0 | % | |||
Cost of sales 1,2 | 141,824 | 28.5 | % | 63,812 | 26.8 | % | |||||
Gross profit | 355,515 | 71.5 | % | 174,681 | 73.2 | % | |||||
Operating expenses: | |||||||||||
Selling, general and administrative 1 | 401,069 | 80.6 | % | 250,801 | 105.2 | % | |||||
Research and development 1 | 36,705 | 7.4 | % | 24,644 | 10.3 | % | |||||
Amortization of intangible assets | 21,407 | 4.3 | % | 7,741 | 3.2 | % | |||||
Total operating expenses | 459,181 | 92.3 | % | 283,186 | 118.7 | % | |||||
Operating loss | (103,666 | ) | (20.8 | )% | (108,505 | ) | (45.5 | )% | |||
Interest expense, net | 41,673 | 8.4 | % | 29,793 | 12.5 | % | |||||
Other (income) expense, net | (3,494 | ) | (0.7 | )% | 7,395 | 3.1 | % | ||||
Loss from continuing operations before income taxes | (141,845 | ) | (28.5 | )% | (145,693 | ) | (61.1 | )% | |||
(Benefit) provision for income taxes | (6,913 | ) | (1.4 | )% | 511 | 0.2 | % | ||||
Net loss from continuing operations | $ | (134,932 | ) | (27.1 | )% | $ | (146,204 | ) | (61.3 | )% | |
Loss from discontinued operations, net of tax | (252,571 | ) | (46,720 | ) | |||||||
Net loss | $ | (387,503 | ) | $ | (192,924 | ) |
1 | These line items include the following amounts of non-cash, share-based compensation expense for the periods indicated: |
Nine months ended | |||||||||||
September 25, 2016 | % of net sales | September 30, 2015 | % of net sales | ||||||||
Cost of sales | $ | 321 | 0.1 | % | $ | 28 | — | % | |||
Selling, general and administrative | 9,070 | 1.8 | % | 6,895 | 2.9 | % | |||||
Research and development | 510 | 0.1 | % | 783 | 0.3 | % |
Nine months ended | ||||||||||
September 25, 2016 | September 30, 2015 | % change | ||||||||
U.S. | ||||||||||
Lower extremities | $ | 158,872 | $ | 128,277 | 23.9 | % | ||||
Upper extremities | 146,117 | 11,703 | 1,148.5 | % | ||||||
Biologics | 53,167 | 34,612 | 53.6 | % | ||||||
Sports med & other | 6,326 | 1,558 | 306.0 | % | ||||||
Total U.S. | $ | 364,482 | $ | 176,150 | 106.9 | % | ||||
International | ||||||||||
Lower extremities | $ | 45,984 | $ | 35,313 | 30.2 | % | ||||
Upper extremities | 62,241 | 5,723 | 987.6 | % | ||||||
Biologics | 13,804 | 15,070 | (8.4 | )% | ||||||
Sports med & other | 10,828 | 6,237 | 73.6 | % | ||||||
Total International | $ | 132,857 | $ | 62,343 | 113.1 | % | ||||
Total net sales | $ | 497,339 | $ | 238,493 | 108.5 | % |
Nine months ended September 30, 2015 | |||||||||||||||
Standalone Wright Medical Group, Inc. | Standalone Tornier N.V., recast 1 | Discontinued net sales 2 | Non-GAAP combined pro forma net sales | ||||||||||||
U.S. | |||||||||||||||
Lower extremities | $ | 128,277 | $ | 29,636 | $ | (9,732 | ) | $ | 148,181 | ||||||
Upper extremities | 11,703 | 115,846 | — | 127,549 | |||||||||||
Biologics | 34,612 | 1,290 | — | 35,902 | |||||||||||
Sports med & other | 1,558 | 5,021 | — | 6,579 | |||||||||||
Total extremities & biologics | 176,150 | 151,793 | (9,732 | ) | 318,211 | ||||||||||
Large joint | — | 119 | (119 | ) | — | ||||||||||
Total U.S. | $ | 176,150 | $ | 151,912 | $ | (9,851 | ) | $ | 318,211 | ||||||
International | |||||||||||||||
Lower extremities | $ | 35,313 | $ | 7,402 | $ | — | $ | 42,715 | |||||||
Upper extremities | 5,723 | 51,293 | — | 57,016 | |||||||||||
Biologics | 15,070 | 357 | — | 15,427 | |||||||||||
Sports med & other | 6,237 | 5,372 | — | 11,609 | |||||||||||
Total extremities & biologics | 62,343 | 64,424 | — | 126,767 | |||||||||||
Large joint | — | 29,921 | (29,921 | ) | — | ||||||||||
Total International | $ | 62,343 | $ | 94,345 | $ | (29,921 | ) | $ | 126,767 | ||||||
Global | |||||||||||||||
Lower extremities | $ | 163,590 | $ | 37,038 | $ | (9,732 | ) | $ | 190,896 | ||||||
Upper extremities | 17,426 | 167,139 | — | 184,565 | |||||||||||
Biologics | 49,682 | 1,647 | — | 51,329 | |||||||||||
Sports med & other | 7,795 | 10,393 | — | 18,188 | |||||||||||
Total extremities & biologics | 238,493 | 216,217 | (9,732 | ) | 444,978 | ||||||||||
Large joint | — | 30,040 | (30,040 | ) | — | ||||||||||
Total sales | $ | 238,493 | $ | 246,257 | $ | (39,772 | ) | $ | 444,978 |
1 | Legacy Tornier product line sales have been recast to reflect the reclassification of cement, instruments and freight from the historical Tornier product line "Large Joints and Other" to the product line associated with those revenues that will be utilized for future revenue reporting. |
2 | To reduce from Tornier’s historical sales the U.S. sales associated with Tornier’s Salto Talaris and Salto XT ankle replacement products and silastic toe replacement product and the global sales associated with Tornier's Large Joints Business. |
Net sales | Non-GAAP combined pro forma net sales | % change | ||||||||
Nine months ended September 25, 2016 | Nine months ended September 30, 2015 | |||||||||
U.S. | ||||||||||
Lower extremities | $ | 158,872 | $ | 148,181 | 7.2 | % | ||||
Upper extremities | 146,117 | 127,549 | 14.6 | % | ||||||
Biologics | 53,167 | 35,902 | 48.1 | % | ||||||
Sports med & other | 6,326 | 6,579 | (3.8 | )% | ||||||
Total U.S. | $ | 364,482 | $ | 318,211 | 14.5 | % | ||||
International | ||||||||||
Lower extremities | $ | 45,984 | $ | 42,715 | 7.7 | % | ||||
Upper extremities | 62,241 | 57,016 | 9.2 | % | ||||||
Biologics | 13,804 | 15,427 | (10.5 | )% | ||||||
Sports med & other | 10,828 | 11,609 | (6.7 | )% | ||||||
Total international | $ | 132,857 | $ | 126,767 | 4.8 | % | ||||
Global | ||||||||||
Lower extremities | $ | 204,856 | $ | 190,896 | 7.3 | % | ||||
Upper extremities | 208,358 | 184,565 | 12.9 | % | ||||||
Biologics | 66,971 | 51,329 | 30.5 | % | ||||||
Sports med & other | 17,154 | 18,188 | (5.7 | )% | ||||||
Total sales | $ | 497,339 | $ | 444,978 | 11.8 | % |
Three months ended September 25, 2016 | |||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | |||||||||
Net sales | $ | 70,654 | $ | 47,411 | $ | 39,267 | |||||
Operating income (loss) | $ | 17,980 | $ | 12,594 | $ | (2,945 | ) | ||||
Operating income (loss) as a percent of net sales | 25.4 | % | 26.6 | % | (7.5 | )% |
Three months ended September 30, 2015 | |||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | |||||||||
Net sales | $ | 56,740 | $ | 3,654 | $ | 19,745 | |||||
Operating income (loss) | $ | 7,716 | $ | 1,526 | $ | (2,158 | ) | ||||
Operating income (loss) as a percent of net sales | 13.6 | % | 41.8 | % | (10.9 | )% |
Nine months ended September 25, 2016 | |||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | |||||||||
Net sales | $ | 214,559 | $ | 149,923 | $ | 132,857 | |||||
Operating income | $ | 57,813 | $ | 46,729 | $ | 840 | |||||
Operating income as a percent of net sales | 26.9 | % | 31.2 | % | 0.6 | % |
Nine months ended September 30, 2015 | |||||||||||
U.S. Lower Extremities & Biologics | U.S. Upper Extremities | International Extremities & Biologics | |||||||||
Net sales | $ | 164,448 | $ | 11,702 | $ | 62,343 | |||||
Operating income (loss) | $ | 19,666 | $ | 4,902 | $ | (7,256 | ) | ||||
Operating income (loss) as a percent of net sales | 12.0 | % | 41.9 | % | (11.6 | )% |
September 25, 2016 | December 27, 2015 | ||||||
Cash and cash equivalents | $ | 314,314 | $ | 139,804 | |||
Working capital | 308,102 | 352,946 |
• | AUGMENT® Injectable Bone Graft (Augment Injectable) combines rhPDGF-BB with an injectable bone matrix, and is targeted to be used in either open (surgical) treatment of fusions and fractures or closed (non-surgical) or minimally invasive treatment of fractures. AUGMENT® Injectable can be injected into a fusion or fracture site during an open surgical procedure, or it can be injected through the skin into a fracture site, in either case locally delivering rhPDGF-BB to promote fusion or fracture repair. Our initial clinical development program for AUGMENT® Injectable has focused on securing regulatory approval for open indications in the United States and in several markets outside the United States. We currently estimate it could take one to three years to complete this project. We have incurred expenses of approximately $4.6 million for AUGMENT® Injectable since the date of acquisition and $0.3 million in the quarter ended September 25, 2016. We are currently evaluating future costs related to AUGMENT® Injectable following the recent FDA approval of AUGMENT®. |
• | PerFORM Rev/Rev+ is a next-generation reverse construct which replaces the existing Reverse II Glenoid Product. PerFORM Reverse consists of new baseplate options, with various backside angles and thicknesses to address additional glenoid deformities, and also includes a new central fixation technology that is different than any other system in the market. Development of this product is in manufacturing validation stage. Pre-market release trials began in the first quarter of 2016. We achieved CE marking for PerFORM Reverse in the first quarter of 2016, and 510(k) clearance is anticipated to occur later in 2016. We have an anticipated completion date in 2017 and the cost to complete the project is estimated to be less than $1 million. However, the risks and uncertainties associated with completion are dependent upon FDA clearance. |
• | AEQUALIS® Flex Revive (previously AEQUALIS® Adjustable Reversed Ext (AARE)) will ultimately be our second-generation revision product, with an improved implant that is convertible and addresses more indications, and a revamped instrument set that includes universal extraction instrumentation. The implants in this system are complete from a design standpoint, have regulatory approval, and are being sold using a previous generation of instrumentation in a limited capacity. The instruments for the new revision system are currently in design phase. We have an anticipated completion date in 2017 and project cost to complete is estimated to be less than $1 million. However, the risks and uncertainties associated with completion are dependent upon testing validations and FDA clearance. |
Share price | Cash payment in excess of principal (in thousands) | |||
$27.98 | (10% greater than conversion price) | $ | 203 | |
$30.53 | (20% greater than conversion price) | $ | 405 | |
$33.07 | (30% greater than conversion price) | $ | 608 | |
$35.62 | (40% greater than conversion price) | $ | 811 | |
$38.16 | (50% greater than conversion price) | $ | 1,013 |
(in thousands) | |||
Fair value of security given a 10% decrease in share price | Fair value of security as of September 25, 2016 | Fair value of security given a 10% increase in share price | |
2017 Notes Conversion Derivative (Liability) | 129 | 247 | 398 |
Share price | Shares (in thousands) | |
$42.68 | (10% greater than strike price) | 1,784 |
$46.56 | (20% greater than strike price) | 3,270 |
$50.44 | (30% greater than strike price) | 4,528 |
$54.32 | (40% greater than strike price) | 5,606 |
$58.20 | (50% greater than strike price) | 6,540 |
(in thousands) | |||
Fair value of security given a 10% decrease in share price | Fair value of security as of September 25, 2016 | Fair value of security given a 10% increase in share price | |
2020 Notes Hedges (Asset) | $61,246 | $83,308 | $108,355 |
2020 Notes Conversion Derivative (Liability) | $62,288 | $84,856 | $110,504 |
Share price | Shares (in thousands) | |
$33.00 | (10% greater than strike price) | 1,681 |
$36.00 | (20% greater than strike price) | 3,082 |
$39.00 | (30% greater than strike price) | 4,268 |
$42.00 | (40% greater than strike price) | 5,284 |
$45.00 | (50% greater than strike price) | 6,164 |
(in thousands) | |||
Fair value of security given a 10% decrease in share price | Fair value of security as of September 26, 2016 | Fair value of security given a 10% increase in share price | |
2021 Notes Hedges (Asset) | $138,094 | $169,488 | $202,579 |
2021 Notes Conversion Derivative (Liability) | $135,894 | $172,702 | $211,553 |
• | the imposition of additional U.S. and foreign governmental controls or regulations on orthopaedic implants and biologic products; |
• | new export license requirements; |
• | the imposition of U.S. or international sanctions against a country, company, person, or entity with whom we do business that would restrict or prohibit continued business with that country, company, person, or entity; |
• | economic instability, including currency risk between the U.S. dollar and foreign currencies, in our target markets; |
• | the imposition of restrictions on the activities of foreign agents, representatives, and distributors; |
• | scrutiny of foreign tax authorities, which could result in significant fines, penalties, and additional taxes being imposed upon us; |
• | a shortage of high-quality international salespeople and distributors; |
• | loss of any key personnel who possess proprietary knowledge or are otherwise important to our success in international markets; |
• | changes in third-party reimbursement policy that may require some of the patients who receive our products to directly absorb medical costs or that may necessitate our reducing selling prices for our products; |
• | unexpected changes in foreign regulatory requirements; |
• | differing local product preferences and product requirements; |
• | changes in tariffs and other trade restrictions, particularly related to the exportation of our biologic products; |
• | work stoppages or strikes in the healthcare industry, such as those that have affected our operations in France, Canada, Korea, and Finland in the past; |
• | difficulties in enforcing and defending intellectual property rights; |
• | foreign currency exchange controls that might prevent us from repatriating cash earned in countries outside the Netherlands; |
• | complex data privacy requirements and labor relations laws; and |
• | exposure to different legal and political standards due to our conducting business in over 50 countries. |
• | make us more vulnerable to adverse changes in general U.S. and worldwide economic, industry, and competitive conditions and adverse changes in government regulation; |
• | limit our flexibility in planning for, or reacting to, changes in our business and our industry; |
• | restrict our ability to make strategic acquisitions or dispositions or to exploit business opportunities; |
• | place us at a competitive disadvantage compared to our competitors who have less debt; and |
• | limit our ability to borrow additional amounts for working capital, capital expenditures, contractual obligations, research and development efforts, acquisitions, debt service requirements, execution of our business strategy, or other purposes. |
(a) | Exhibits. |
WRIGHT MEDICAL GROUP N.V. | |
By: | /s/ Robert J. Palmisano |
Robert J. Palmisano | |
President and Chief Executive Officer | |
(principal executive officer) | |
By: | /s/ Lance A. Berry |
Lance A. Berry | |
Senior Vice President and Chief Financial Officer | |
(principal financial officer) |
Exhibit No. | Exhibit | Method of Filing | ||
2.1* | Business Sale Agreement dated October 21, 2016 between Tornier SAS, Corin France SAS, Corin Orthopaedics Holdings Limited and Certain Related Entities Party Thereto | Incorporated by reference to Exhibit 2.1 to the Registrant’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on October 24, 2016 (File No. 001-35065) | ||
3.1 | Articles of Association of Wright Medical Group N.V. | Incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on July 1, 2016 (File No. 001-35065) | ||
4.1 | Indenture dated as of May 20, 2016 between Wright Medical Group N.V. and The Bank of New York Mellon Trust Company, N.A. (including the form of the 2.25% Cash Convertible Senior Note due 2021) | Incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K as filed with the Securities and Exchange Commission on May 25, 2016 (File No. 001-35065) | ||
10.1 | Settlement Agreement dated as of November 1, 2016 between Wright Medical Technology, Inc. and the Counsel Listed on the Signature Pages Thereto | Filed herewith | ||
31.1 | Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002 | Filed herewith | ||
31.2 | Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002 | Filed herewith | ||
32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002 | Furnished herewith | ||
101 | The following materials from Wright Medical Group N.V.’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 25, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets as of September 25, 2016 and December 27, 2015, (ii) the Consolidated Statements of Operations for the three and nine months ended September 25, 2016 and September 30, 2015, (iii) the Consolidated Statements of Comprehensive Loss for the three and nine months ended September 25, 2016 and September 30, 2015, (iv) the Consolidated Statements of Cash Flows for the nine months ended September 25, 2016 and September 30, 2015, and (v) Notes to Consolidated Financial Statements | Filed herewith |
* | The schedules to the Business Sale Agreement have been omitted from this filing pursuant to Item 601(b)(2) of Regulation S-K. Wright will furnish copies of any such schedules to the SEC upon request. |
Page | |||
PREAMBLE | 1 | ||
1. | SETTLEMENT ELIGIBILITY AND EXCLUSIONS | 2 | |
2. | TOTAL AMOUNT OF SETTLEMENT | 3 | |
3. | INDIVIDUAL SETTLEMENTS | 4 | |
4. | PROOF OF CLAIM | 12 | |
5. | SETTLEMENT ACCEPTANCE REQUIREMENT AND OPT-OUTS | 13 | |
6. | COMMON BENEFIT FUND ASSESSMENTS | 14 | |
7. | LIENS | 15 | |
8. | DOCUMENTS REQUIRED FOR INDIVIDUAL SETTLEMENTS | 17 | |
9. | TRACKING OF SETTLEMENT PROGRESS | 17 | |
10. | FUNDING OF SETTLEMENT | 19 | |
11. | RISK OF LOSS | 24 | |
12. | CONFIDENTIALITY AND PUBLIC STATEMENT | 24 | |
13. | MISCELLANEOUS | 26 |
1. | SETTLEMENT ELIGIBILITY AND EXCLUSIONS |
1.1 | Eligibility Requirements: To be eligible for settlement hereunder, a claim must meet all of the following requirements: |
1.1.1 | The claimant must have a claim filed and pending in either the MDL or JCCP, or be subject to a fully executed tolling agreement between the parties whether entered arising from the MDL or the JCCP which was approved by the MDL Court. |
1.1.2 | The claimant must have received, and undergone the revision of the cup, the head, the liner, or some combination thereof, of one of the following metal-on-metal articulating bearing surface product configurations: |
(a) | A CONSERVE® acetabular cup paired with a CONSERVE® cobalt chromium femoral head (a “CONSERVE® Claim”); |
(b) | A DYNASTY® acetabular cup and metal liner paired with a CONSERVE® cobalt chromium femoral head (a “DYNASTY® Claim”); or |
(c) | A LINEAGE® acetabular cup and metal liner paired with a LINEAGE® or CONSERVE® cobalt chromium femoral head (a “LINEAGE® Claim”). |
1.1.3 | The claimant must have undergone a revision of the cup, the head, the liner, or some combination thereof, of the CONSERVE®, DYNASTY® or LINEAGE® metal-on-metal products no earlier than 150 days after the date of the surgery during which the CONSERVE®, DYNASTY® or |
1.1.4 | Each “Eligible Claim” is identified on the final list of claims agreed upon by the Parties (the “Eligible Claims List”). The Eligible Claims List is derived from the 1,292 prospective claims identified on a list provided by Wright Medical to Plaintiffs’ Counsel on July 8, 2016 (the “July 8 List”), as adjusted per the steps set forth in the Term Sheet (“Eligibility Adjustments”), incorporated herein by reference, to account for a determination by Wright Medical that one or more of the claims on the July 8, 2016 List is not an Eligible Claim pursuant to sections 1.1.1, 1.1.2 or 1.1.3 of this Settlement Agreement. |
1.2 | Exclusions from Settlement: Claims meeting the above eligibility requirements are nevertheless not included in this settlement if: |
1.2.1 | The claim is identified by Wright Medical as potentially barred by an applicable statute of limitations or repose; |
1.2.2 | The claimant underwent a revision of the CONSERVE®, DYNASTY® or LINEAGE® metal-on-metal products later than 8 years after the date of the original implantation surgery; or |
1.2.3 | The claim is not identified on the Eligible Claims List described in section 1.1.4 of this Settlement Agreement. To be clear, the settlement is not open for general enrollment, and is limited to the specifically identified Eligible Claims. |
2. | TOTAL AMOUNT OF SETTLEMENT |
2.1 | Wright Medical agrees to pay a total sum of two hundred and forty million dollars ($240,000,000) to settle the 1,292 Claims identified by Wright Medical as of July 8, 2016 (the “July 8 List”), subject to the Eligibility Adjustments. The total settlement sum of $240 million for the 1,292 Claims is based on the following product mix contained in Wright Medical’s July 8 List, as follows: |
(a) | 193 DYNASTY® Claims and/or LINEAGE® Claims; |
(b) | 1,066 CONSERVE® Claims; and |
(c) | 33 claims involving to be determined product configurations (each an “Unknown Claim”). |
2.2 | The total amount of all Eligibility Adjustments will be confirmed and agreed to by the Parties, however under no circumstance will the total amount of the settlement exceed $240,000,000. |
3. | INDIVIDUAL SETTLEMENTS |
3.1 | General Provisions: |
3.1.1 | No settlement payments under either the standard settlement (“Standard Settlement Option”) or the extraordinary injury fund (“EIF Option”), as both are described below, will be made to any claimant with an Eligible Claim (each such claimant an “Eligible Claimant” or “EC”) pursuant to this Settlement Agreement until Wright Medical’s Walk Away Rights under the 95% Acceptance Requirement, set forth in Section 5, have expired without having been exercised or waived pursuant to Section 5. |
3.1.2 | By participating in this Settlement Agreement, the Parties and ECs acknowledge that all settlement awards paid pursuant to the Settlement Agreement constitute damages on account of personal injuries or physical injuries or physical sickness within the meaning of Section 104 of the Internal Revenue Code of 1986, as amended, arising from the physical injuries alleged to have resulted from the implantation, use, and/or removal of CONSERVE®, DYNASTY®, or LINEAGE® hip implants. The Parties and ECs further acknowledge that no portion of the proceeds paid under the Settlement Agreement represents punitive or exemplary damages, prejudgment or postjudgment interest, any amount for lost income or wages, or payment for any other non-physical injury. Each EC participating in this Settlement Agreement waives and releases any and all claims for punitive or exemplary damages, prejudgment or postjudgment interest, any amount for lost income or wages, or payment for any other non-physical injuries. |
3.2 | Two Alternative Settlement Options: |
3.2.1 | Two alternative settlement options are available for ECs under this Settlement Agreement to achieve individual settlements of claims (an “Individual Settlement”). The two options are mutually exclusive. |
3.2.2 | The first is the Standard Settlement Option. It is a simple settlement process designed to be completed on an expedited basis. Once it has been established that a claimant is an EC under the terms of this Settlement Agreement, no further proof will be necessary, beyond a claim election form used to identify which settlement an EC is choosing (“Claim Election Form”), in order to receive the Standard Settlement compensation. |
3.2.3 | The second alternative settlement option is the EIF Option. Under it, an EC may receive an enhanced award as set forth below. The EIF Option will take several months longer to complete and will require additional evidence, proof, and review beyond the initial eligibility requirements under this Settlement Agreement. |
3.2.4 | An EC’s election between the Standard Settlement and EIF Option must be made by January 31, 2017, by submitting a Claim Election Form via electronic portal, as established by the Claims Administrator. The Release, defined below, will include a verification for signature by the EC confirming EC’s election, and that revision surgery has occurred that qualifies for this settlement. Contemporaneously with this election, each EC must also submit via the electronic portal established by the Claims Administrator an identification of all health insurance providers that s/he had between the date of the Qualified Revision Surgery through the Effective Date of this Settlement Agreement. |
3.2.5 | By submitting a Claim Election Form, each EC expressly agrees that any settlement award, either under the Standard Settlement Option or EIF Option, is final and binding once set under the below procedures. To be clear, EC’s electing the EIF Option expressly agree that any settlement award will be final and binding, even though the EC will not know the exact amount of the EIF Option award at the time of submitting a Claim Election Form. |
3.2.6 | Each EC that submits a Claim Election Form consents to the exclusive jurisdiction of the MDL Court and the Hon. William S. Duffey for the purposes of enforcement of each EC’s Individual Settlement. |
3.2.7 | There will be no deductions from settlement awards under either settlement option, except for payment of liens as set forth in Section 7 and common benefit attorney fees and expenses as set forth in Section 6. This Settlement Agreement does not negate, amend or revise any representation agreements that may exist by and between individual ECs and their respective counsel. |
3.3 | Standard Settlement Option |
3.3.1 | Standard Settlement Compensation. With respect to the Standard Settlement Option, each EC with a CONSERVE® Claim will receive $170,000.00 and each EC with a DYNASTY® or LINEAGE® Claim will receive $120,000.00. These gross settlement amounts are subject to deductions per Section 3.2.7. |
3.3.2 | The mechanics and timing of Wright Medical’s payments to fund the Standard Settlement Option are set forth in Section 10. |
3.4 | EIF Settlement Option |
3.4.1 | EIF Accounting. The total potential fund available to pay enhanced awards under the EIF Option (the “EIF Award Pool”) is expected to be approximately $50,000,000. However, the total amount of EIF Award Pool is based on the number of ECs that claim compensation under the EIF Option, and therefore will not be known or fixed until after all Claim Election Forms have been received. The final amount of the EIF Award Pool will be confirmed between Wright Medical and Plaintiffs’ Counsel. Regardless of the amount of the EIF Award Pool, under no circumstances will the total amount of the settlement, including all Standard Settlement Option awards and the EIF Award Pool, exceed $240,000,000, and under no circumstances will availability of the EIF Option cause Wright Medical to be required to pay any amounts other than as explicitly agreed to in this Settlement Agreement and the Term Sheet, incorporated herein by reference. To be clear, no amounts attributable to 1) Opt-Out Claims, as defined and discussed in Section 5 below, or 2) amounts attributable to claims that are determined not to be Eligible Claims, or involve product misidentifications, will be repurposed or reallocated to fund the EIF Award Pool. |
3.4.2 | The mechanics and timing of Wright Medical’s payments to fund the EIF Option are set forth in Section 10. |
3.4.3 | Determinations of EIF Awards. |
(a) | Plaintiffs’ Counsel will create a Settlement Oversight Committee (or “SOC”), to consist of select counsel representing ECs. |
(b) | The EIF Option is designed to evaluate enhancement claims on their merits pursuant to the terms of this Settlement Agreement and the contemporaneous medical records of the ECs making a claim under the EIF Option. A claims administrator will be engaged by the SOC (the “Claims Administrator”), and the Claims Administrator will be solely responsible for the evaluation of EIF Option claims and the determination of EIF Option awards. |
3.4.4 | The Claims Administrator may seek information to assist in its impartial allocation of EIF Option awards, including from Wright Medical’s counsel. In addition to each EC’s tabbed and highlighted medical records, the Claims Administrator will have access to all documents produced by each EC in the MDL, the JCCP, or pursuant to any tolling agreement (e.g., preliminary disclosures, fact sheets, documents, interrogatory answers). The Claims Administrator may demand, at its sole discretion and at the EC’s expense, additional medical records necessary to properly evaluate an EIF Option claim. The Claims Administrator has the right, if it deems necessary, to obtain authorizations for the release of medical records, which will be obtained at the EC’s sole expense. The procedures for obtaining additional medical records will be determined in coordination with the Claims Administrator and the SOC. |
(a) | The Claims Administrator and SOC will work together to ensure that the EIF Option procedures are conducted fairly, efficiently and economically. |
(b) | The initial determination of eligibility for, and amount of, an EIF Option award will be made by the Claims Administrator pursuant to Section 3.6 below. The initial determination will be based on the tabbed and highlighted medical records provided with the Proof of Claim (Section 4) and the terms of this Settlement Agreement. |
(c) | If an EIF Option award is denied, the EC may elect to appeal the award to a special master who will be retained by the SOC, and granted exclusive authority to decide appeals of denials of EIF Option awards (the “Special Master”). Appeals will be addressed by the Special Master through written submission by EC or counsel for the EC within 30 days of electronic notification of an |
(d) | For the avoidance of doubt, there is no discovery process involved in the evaluation or determination of EIF Option awards. There will be no new depositions, written discovery, expert reports, affidavits, hearings or trials in connection with the submission of EIF Option claims or the evaluation or determination of any EIF Option award. ECs have the burdens of proof and production of medical records to establish that the criteria for an EIF Option award has been met. To be clear, in connection with an EIF Option claim, ECs must submit specific medical records appropriately tabbed and highlighted to demonstrate the information that establishes eligibility for an EIF Option award. ECs who submit entire sets of medical records without specific tabbing and highlighting may be assessed a fee set by the SOC. |
3.5 | Bilateral Hip Implants Revised. |
3.5.1 | ECs who had bilateral hip implants of CONSERVE®, DYNASTY® and/or LINEAGE® products and who have undergone a Qualified Revision Surgery in which only one hip implant was revised may receive compensation under either of the two alternative settlement options, but only for the revised hip. All rights will be reserved with respect to the unrevised hip implant outside of this Settlement Agreement, by limited release in a form to be agreed to by the Parties. |
3.5.2 | ECs who had bilateral hip implants of CONSERVE®, DYNASTY®, and/or LINEAGE® products who have undergone Qualified Revision Surgeries on both hips may make a claim for each hip. ECs under this category may elect a Standard Settlement for one of the qualifying hips, but the other qualifying hip must be processed under the EIF Option, subject to priority payment as stated in Section 10.8.6. Claimants may elect the EIF Option for both hips, but will qualify for only one priority payment under Section 10.8.6. All other EIF Option claims and/or amounts are subject to the EIF Option process. The following chart illustrates the award options for ECs with bilateral hip implants: |
# of Sides Revised | Status | Eligible for Standard Settlement Option? | Eligible for EIF Option? |
0 | Both Sides Remain Implanted | No | No. Claimant is not an EC. |
1 | 1 Side That Had Revision | Yes | Yes, |
Surgery | if claimant is an EC. | ||
1 Side That | No | No. All Legal Rights Reserved. | |
Remains Implanted | |||
Both Sides Underwent | Only Eligible for One Standard Settlement | Other Hip is Under EIF Option with Priority Payment Under Section 10.8.6 | |
Revision Surgery and EC | |||
Wants Standard | |||
Settlement for Both | |||
2 | Both Sides Underwent | One Hip Eligible for | Other Hip Subject to Priority Payment and Any Other and Further EIF Payments For Which EC Qualifies For That Hip. |
Revision Surgery and EC | Standard Settlement | ||
Elects Standard | Option. | ||
Settlement for One Hip, | |||
EIF Option For Other Hip | |||
Both Sides Underwent | Yes, With A Single Priority Payment Under Section 10.8.6 and All Remaining Payments Made Under EIF Schedule. | ||
Revision Surgery and EC | |||
Elects EIF Option For | No | ||
Both Hips |
13.6 | EIF Award Categories. |
3.6.1 | For purposes of qualifying for EIF Option award categories for those ECs who demonstrate their eligibility to receive such awards, the following are categories of extraordinary medical conditions relating to a Qualified Revision Surgery:(1) Covered Re-Revision Surgery, as defined below, (2) Dislocation, (3) Foot Drop, (4) Infection, and (5) Extended Trochanteric Osteotomy. |
3.6.2 | All EIF Option awards pursuant to Section 3.6 will be governed by an award schedule to be issued by the SOC in its sole discretion, following consultation with Wright Medical (the “EIF Award Schedule”). |
3.6.3 | Covered Re-Revision Surgery. |
(a) | “Covered Re-Revision Surgery” means a revision surgery to remove the cup of a hip implant device after his/her Qualified Revision Surgery on the same hip (“Re-Revision Surgery”), or during subsequent Re-Revision Surgeries on the same hip after the |
(b) | Eligibility. ECs who underwent a Covered Re-Revision Surgery will be entitled to additional compensation under the EIF Option (subject to all reductions herein) per Covered Re-Revision Surgery. The following are excluded: |
(i) | A Re-Revision Surgery that was necessitated by an infection will be governed by the provision for infection-related treatment described in Section 3.6.6 and not this Section; and |
(ii) | A claim for a Re-Revision Surgery that was necessitated by dislocation will be governed by the provisions for dislocations in Section 3.6.4 and not this Section. |
(c) | The aggregate total of all awards for Covered Re-Revision Surgeries under Sections 3.6.3 will not exceed a maximum amount to be set forth on the EIF Award Schedule. |
3.6.4 | Dislocation. |
(a) | Eligibility. An EC who required medical treatment for a dislocation event of the femoral head of the hip after a Qualified Revision Surgery that is documented by diagnosis in contemporary medical records and which dislocation event necessitated (i) a closed reduction in a hospital, (ii) an open reduction in a hospital, or (iii) a Covered Re-Revision Surgery, will be entitled to an EIF Option award under this Section. The following are excluded: |
(i) | Dislocation events that occurred before the Qualified Revision Surgery do not qualify for an EIF Option award, and |
(ii) | A dislocation event after a Qualified Revision Surgery or Covered Re-Revision Surgery that is caused or precipitated by trauma is not entitled to any EIF Option Award under this Section. |
(b) | The aggregate total of all awards for dislocation under Section 3.6.4 will not exceed a maximum amount to be set forth on the EIF Award Schedule. |
(c) | Dislocation and Covered Re-Revision Surgery. If a dislocation event was one of the causes of a Covered Re-Revision Surgery, an |
3.6.5 | Foot Drop. |
(a) | Eligibility. An EC who has suffered injury to the peroneal or sciatic nerve as a result of a Qualified Revision Surgery or Covered Re-Revision Surgery, resulting in the inability to lift the front part of the foot, diagnosed during the hospitalization for the Qualified Revision Surgery or Covered Re-Revision Surgery, and that is documented in contemporaneous medical records as existing more than 365 days after the date of the Qualified Revision Surgery or Covered Re-Revision Surgery shall be entitled to an EIF Option award under this Section. |
3.6.6 | Infection. |
(a) | Eligibility. An EC who underwent treatment for an infection after a Qualified Revision Surgery, (i) where the infection was not the cause of the Qualified Revision Surgery as documented in the contemporaneous medical records, and (ii) which required (a) surgical debridement, (b) a Covered Re-Revision Surgery in either a one or two-step procedure, (c) arthrodesis, or (d) extended intravenous antibiotic treatment of at least eight (8) consecutive weeks in length, shall be entitled to an EIF Option award under this Section. |
(i) | An EC can receive only one EIF Award due to infection, regardless of the length or number of infections that occurred. |
(ii) | An EC whose infection was revealed by pathology or microbiology contemporaneous with the Qualified Revision Surgery, meaning s/he had an infection prior to the Qualified Revision Surgery, is not eligible for compensation under this Section. |
(b) | Infection and Covered Re-Revision Surgery. If infection was one of the causes, or the sole cause, for a Covered Re-Revision Surgery, then the EC will be eligible to receive compensation for infection under this Section 3.6.6, but will not be eligible to receive an EIF Option award under Section 3.6.3 (Covered Re-Revision Surgery). |
3.6.7 | Extended Trochanteric Osteotomy. |
(a) | Eligibility. An EC who as part of a Qualified Revision Surgery or Covered Re-Revision Surgery underwent an extended trochanteric osteotomy to remove the femoral stem, and required the placement of cerclage wiring as part of that procedure, will be entitled to an EIF Option award under this Section. |
4. | PROOF OF CLAIM. |
4.1 | As part of each Individual Settlement, Eligible Claimants have provided or will be required to provide, by January 31, 2017, proof of each Eligible Claim, including, but not limited to: |
4.1.1 | A fully completed Preliminary Disclosure Form, as required under case management orders in the MDL and JCCP, or per the terms of an applicable court-approved tolling agreement. If a Preliminary Disclosure Form was provided prior to an EC undergoing a revision surgery, then the EC will provide an updated Preliminary Disclosure Form with the complete information for the revision surgery. |
4.1.2 | If not already provided with the Preliminary Disclosure Form or a Plaintiff Fact Sheet, EC will provide specific and discreet: 1) product identification sticker sheets or similar medical records from the EC’s original implant surgery medical records, or information derived from the explanted, revised components thereof, that specifically identify, at a minimum, the cup and head products, by product and lot numbers, that satisfy settlement eligibility requirements; and 2) operative reports from the original and revision surgeries. To be clear, ECs must submit only the specific medical records identified to demonstrate the information that establishes eligibility. Submissions of entire sets of medical records, or submissions that require Wright Medical or Plaintiffs’ Counsel to locate the required information, are deficient and will be rejected. The Eligible Claims list will identify those claimants who have not yet provided the information required under this Section 4.1.2 to qualify for a Standard Settlement. Only in the event that the medical records specified in this Section have been destroyed or are otherwise no longer available, other records sufficient, in the sole discretion of Wright Medical, exercised in good faith, to identify the products, and the original and revision surgeries, will be accepted as proof that a claim is an Eligible Claim. In the event that there is an impasse as to the sufficiency of the documents required by this section, the SOC and counsel for Wright Medical will meet and confer in an effort to resolve the issue. |
4.1.3 | Unless in the sole discretion of Wright Medical, exercised in good faith, strict compliance is expressly waived as to any Individual Settlement, no |
4.2 | EIF Option Claim - In the event that an EC elects the EIF Option, evidence sufficient to demonstrate entitlement to an EIF Option award is described in Section 3.4. Such information must be uploaded to the Claims Administrator’s web portal per instructions from Plaintiffs’ Counsel by no later than May 2, 2017. |
5. | SETTLEMENT ACCEPTANCE REQUIREMENT AND OPT-OUTS |
5.1 | This Settlement Agreement may be terminated, without penalty and in the sole discretion of Wright Medical (“Walk Away Rights”), if claimants holding greater than five percent (5%) of the Eligible Claims in the Final Settlement Pool elect to Opt-Out of the settlement (the “95% Acceptance Requirement”). |
5.2 | If the 95% Acceptance Requirement is not met, Wright Medical, in its sole discretion, may elect to waive the 95% Acceptance Requirement and proceed with the settlement with less than 95% acceptance, and enforce all Individual Settlements accepted pursuant to this Settlement Agreement, rather than terminate the entire Settlement Agreement. |
5.3 | The 95% Acceptance Requirement is to be calculated by counting only the Eligible Claims for which Wright Medical has received 1) an election to participate, 2) all required documentation under Section 4.1.2, and 3) all required documentation under Section 8 (Documents Required For Individual Settlements). |
5.4 | Claimants with Eligible Claims must elect to participate in this settlement on or before January 31, 2017. Wright Medical’s Walk Away Rights will be exercised by written notice to Plaintiffs’ Counsel, served on or before March 3, 2017, provided that Plaintiffs’ Counsel has delivered the 95% Acceptance Report described below. |
5.4.1 | On or before February 3, 2017, Plaintiffs’ Counsel will provide notice to Wright Medical when Plaintiffs’ Counsel believes that the 95% Acceptance Requirement has been satisfied. Such notice (the “95% Acceptance Report”) will include a then-current Acceptance Report, as described in Section 9.1. Plaintiffs’ Counsel will provide a Funding Request Report as described in Section 10.7 by no later than February 6, 2017. |
5.4.2 | By March 3, 2017, Wright Medical will provide notice to Plaintiffs’ Counsel of whether it agrees that the 95% Acceptance Requirement has been met. |
(a) | If Wright Medical asserts that the 95% Acceptance Requirement has not been met, or that it is unable to confirm that the 95% Acceptance Requirement has been met, then Wright Medical’s notice will include a full explanation of why Wright Medical believes that the 95% Acceptance Requirement has not been met, or why Wright Medical is unable to confirm that the 95% Acceptance Requirement has been met, and Wright Medical may exercise its Walk Away Rights. |
(b) | If Wright Medical agrees that the 95% Acceptance Requirement has been met, or if Wright Medical waives the 95% Acceptance Requirement pursuant to Section 5.2, then funding of Individual Settlements will proceed under Section 10. |
5.5 | Should Wright Medical exercise its Walk Away Rights, then 1) this Settlement Agreement will be terminated and void, and the Parties and Eligible Claimants will return to their respective positions held prior to the Settlement Agreement, with all releases and dismissal stipulations deemed void, and either returned to Plaintiffs’ Counsel or destroyed, and 2) all funds held in escrow pursuant to Section 10 below will be returned in full to Wright Medical. |
5.6 | The Eligible Claim of any claimant who elects not to accept an Individual Settlement will be deemed an “Opt-Out Claim.” Regardless of the actual percentage of Opt-Out Claims, Wright Medical’s payments under this Settlement Agreement will be reduced with respect to each Opt-Out Claim in the manner and amounts set forth in the Term Sheet, incorporated herein by reference. |
5.7 | Under no circumstances will settlement funds allocated to an Opt-Out Claim be redistributed, assigned, or otherwise paid, in whole or part, to settle any other Eligible Claim, including but not limited to funding any portion of the EIF Award Pool, but rather will reduce Wright Medical’s total settlement payments. |
6. | COMMON BENEFIT FUND ASSESSMENTS |
6.1 | By accepting an Individual Settlement under this Settlement Agreement, all claimants and counsel for claimants with Eligible Claims, regardless of whether their claim is pending in the MDL, JCCP or under a tolling agreement, agree to abide by MDL Case Management Order No. 4, Common Benefit Assessment Order (“CMO 4”), and all provisions of this Section 6. The assessments under CMO 4, inter alia, will in part be used to fund the administration of Individual |
6.2 | All claimants and counsel for claimants with Eligible Claims consent to the holdback by Wright Medical of 3.5% for attorneys’ fees and 3.5% for expenses (for a total of 7%) from each total settlement amount under each Individual Settlement, pursuant to CMO 4 (the “Common Benefit Assessments”). Wright Medical will pay each holdback for Common Benefit expenses directly into the Common Benefit Expense Funds account, and each holdback for Common Benefit attorneys’ fees directly into the Common Benefit Legal Fees Funds account, with both accounts to be established by Plaintiffs’ Counsel (the “Common Benefit Fund Accounts”), as credits against the applicable Individual Settlement. For the avoidance of doubt, Wright Medical’s obligation to fund Common Benefit Assessments will not be an additional payment obligation of Wright Medical, but rather will be credited against Wright Medical’s settlement payment obligation and subtracted from the amount otherwise due each claimant from Wright Medical. |
6.3 | No Common Benefit Assessment will be imposed until all requirements for an Individual Settlement have been satisfied, including: 1) to the extent not previously provided, delivery to Wright Medical of the required documents pursuant to Section 4.1.2; 2) delivery to Wright Medical of documentation from the Lien Resolution Administrator, identified below, that confirms the final negotiated amount of all liens or the appropriate holdback amounts for all liens, pursuant to Section 7 below; and 3) delivery to Wright Medical of a Release and Dismissal pursuant to Section 8 below. As to ECs who elect the EIF Option, no Common Benefit Assessment will be imposed until any and all appeals from all ECs have been resolved, pursuant to Section 3.4.4 (c), at which time all EIF Option awards will be final. |
6.4 | All claimants and counsel for claimants with Eligible Claims agree to (1) comply with any Orders entered by the Court in the MDL in the furtherance of CMO 4, and (2) consent to the jurisdiction of the Court in the MDL for that purpose. |
7. | LIENS. |
7.1 | Any and all liens related to each Eligible Claim will be identified and satisfied as set forth below. |
7.1.1 | Any and all health insurance plan lien resolutions will be processed and supervised exclusively by Providio Lien Counsel, LLC (the “Lien Resolution Administrator” or “LRA”), at the sole expense of Eligible Claimants or their counsel. |
7.1.2 | Each Eligible Claimant who receives a payment pursuant to an Individual Settlement under this Settlement Agreement, agrees to pay or have paid |
7.1.3 | Each Eligible Claimant must by December 16, 2016, provide HIPAA releases and a Medicare Proof of Representation form to LRA (via submission to the electronic portal established by Claims Administrator) to facilitate lien identification and resolution; provided, however, that if the MDL court issues a qualified protective order on or before December 16, 2016 authorizing the LRA to identify, process and finalize liens on each EC’s behalf then such individual HIPAA and Medicare Proof of Representation submissions shall not be needed. Each Eligible Claimant will identify to LRA all group health plans s/he had at the time of injury through the Effective Date of this Settlement Agreement (via submission to the electronic portal established by Claims Administrator as described in section 3.2.4 above). Plaintiffs’ Counsel will direct LRA to proactively verify entitlement with Medicare (Parts A & B) and Medicaid for all Eligible Claimants, and will combine those results with the group health plan information submitted by each Eligible Claimant, to investigate and negotiate any applicable liens on each Eligible Claimant’s behalf. As part of its investigation and negotiation of liens, LRA will comply with and/or seek extensions of any reporting requirements that may be required by any lien holder on behalf of both Eligible Claimants and Wright Medical. As a precondition to funding of any portion of an Individual Settlement, Plaintiffs’ Counsel will cause LRA to deliver in writing to Wright Medical final lien clearance information within each Funding Request Report (as defined in Section 10.7), detailing the final negotiated lien amount (including a lien amount pursuant to pre-negotiated lien resolution programs, if applicable) or the appropriate full lien holdback amounts for all liens for each Eligible Claimant included on the respective Funding Request Report. When LRA reports a final negotiated lien amount, or the appropriate full lien holdback amounts for all liens, the balance (i.e., the non-lien holdback amount) will be eligible for disbursement pursuant to the funding steps described in Section 10 below. LRA will submit further clearance information for the lien holdback amount in a future Funding Request Report when the applicable liens have been finally negotiated. |
7.1.4 | Plaintiffs’ Counsel will cause LRA to provide to Wright Medical a written confirmation certifying that all liens related to each claimant's injuries |
7.1.5 | Plaintiffs’ Counsel will require and cause the LRA to provide complete indemnity and defense of Wright Medical and Plaintiffs’ Counsel against all liens related to each claimant's injuries and/or treatment that are or may be asserted against settlement proceeds of each Individual Settlement. |
7.1.6 | This Settlement Agreement does not alter, expand or relieve any notice obligations relating to any liens that any claimant or their counsel has by law or by contract. Likewise, this Settlement Agreement does not establish a right to a lien where none exists. |
8. | DOCUMENTS REQUIRED FOR INDIVIDUAL SETTLEMENTS. |
8.1 | Attached hereto as Exhibit A is the form individual settlement agreement and release (“Release”) that will be used to document settlements with each individual claimant under an Individual Settlement. |
8.1.1 | The Release will be executed by the claimant, and any spouse and legal representative of any claimant or claimant’s estate, as applicable. If a claimant is divorced, separated or estranged from his/her spouse, the claimant will provide indemnity in a form agreed by the Parties. |
8.1.2 | The Release in any Individual Settlement may contain added state-specific provisions determined to be necessary by Wright Medical. |
8.1.3 | The form Release will not be altered, edited, amended, or in any way changed by a claimant or their counsel, except by the express written agreement of Wright Medical. |
8.2 | Attached hereto as Exhibit B is the form of litigation dismissal, with prejudice, to be used to dismiss pending litigation, with prejudice and all costs to be borne by the incurring party (a “Dismissal”). |
9. | TRACKING OF SETTLEMENT PROGRESS. |
9.1 | Plaintiffs’ Counsel will, on both the 15th and last day of each month, beginning after execution of this Settlement Agreement by all Parties, provide to Wright Medical a report, in Excel electronic format, that contains an identification, to the date of the report, of all claimants, and their Eligible Claims, who have agreed to accept an Individual Settlement (each an “Acceptance Report”). A printed form of the Acceptance Report is attached hereto as Exhibit C. |
9.2.1 | Each Acceptance Report will: |
(a) | Identify the name of the claimant; |
(b) | Identify the Eligible Claim(s); |
(c) | State the actual accepted settlement amount of the claimant’s Individual Settlement, set pursuant to Section 3 (Individual Settlements); |
(d) | Provide confirmation that all required documentation and claim proof required has been provided to Wright Medical, pursuant to Section 4.1.2; |
(e) | State the amount of the Common Benefit Assessment on each Eligible Claim, pursuant to Section 6 (Common Benefit Fund Assessments); |
(f) | State the total amount of liens on each Individual Settlement, pursuant to Section 7 (Liens); |
(g) | State, if available, the total final negotiated amount of all liens on each Individual Settlement, pursuant to Section 7 (Liens); |
(h) | Provide confirmation that the required Release and Dismissal have been received by Plaintiffs’ Counsel and provided to Wright Medical, pursuant to Section 8 (Documents Required For Individual Settlements); |
(i) | State a calculation of the then-current sum of the amounts of all Individual Settlements; |
(j) | State a calculation of the then-current total number of settlement acceptances as a percentage of all Eligible Claims; and |
(k) | Contain confirmations of payments made under Individual Settlements. |
9.2.2 | Plaintiffs’ Counsel will deliver to Wright Medical with each Acceptance Report, all final negotiated lien documentation, pursuant to Section 7.1, and all fully executed Releases and Dismissals, pursuant to Section 8.1, received since the last produced Acceptance Report. |
9.2 | Plaintiffs’ Counsel will, on both the 15th and last day of each month, also provide to Wright Medical a separate report, in Excel electronic format, that contains an identification, to the date of the report, of all known Opt-Out Claims (the “Opt-Out Report”). A printed form of the Opt-Out Report is attached hereto as Exhibit D. |
9.2.1 | Each Opt-Out Report will: |
(a) | Identify the name of the claimant; |
(b) | Identify the Eligible Claim that is an Opt-Out Claim; |
(c) | State the amount of reduction attributable to the Opt-Out Claim, pursuant to Section 5.6; |
(d) | State the then-current sum of all reductions pursuant to Section 5.6; and |
(e) | State a calculation of the then-current total number of Opt-Out Claims as a percentage of all Eligible Claims. |
9.3 | Cumulative Acceptance Reports and Opt-Out Reports will continue to be prepared, by adding onto the immediately prior report, until all Eligible Claims appear on either an Acceptance Report or an Opt-Out Report. |
10. | FUNDING OF SETTLEMENT. |
10.1 | Within thirty (30) calendar days of the full execution of this Settlement Agreement, Wright Medical will deposit or cause to be deposited into an escrow account (the “Escrow Settlement Fund”), One Hundred And Fifty Million Dollars ($150,000,000.00), provided however that under no circumstance will this escrow deposit be made by Wright Medical until an escrow agreement mutually agreeable to the Parties which sets forth the details of the escrow account (the “Settlement Escrow Agreement”) has been fully executed. Wright Medical further represents and warrants that it will have sufficient access to operating funds, over and above the maximum settlement balance of $90 Million, to fund continuing operations. |
10.2 | Concurrent with the execution of the Settlement Escrow Agreement, an escrow agent (“Escrow Agent”) will be appointed by mutual agreement between Plaintiffs’ Counsel and Wright Medical. Plaintiffs’ Counsel shall be solely and exclusively liable for the payment, on a current basis, of all fees and expenses (the “Escrow Fees and Expenses”) due and payable to the Escrow Agent under the Settlement Escrow Agreement. Plaintiffs’ Counsel will obtain approval from the MDL Court, pursuant to CMO 4, for payment of Escrow Fees and Expenses from the Common Benefit Fund. |
10.3 | At the end of each month, the Escrow Agent will submit to Wright Medical, the SOC and the Claims Administrator a report, in such form and in such detail as Wright Medical reasonably may specify (each an “Escrow Settlement Fund Report”) itemizing and certifying all payments or transfers during the preceding month and the balance remaining in the Escrow Settlement Fund. |
10.4 | All funding of Individual Settlements pursuant to this Section 10 will be funded first from the Escrow Settlement Fund, and then, once all funds held in the Escrow Settlement Fund have been dispersed, by Wright Medical. |
10.5 | No funding of any Individual Settlement, or any part thereof, by Wright Medical or the Escrow Agent will occur until the 95% Acceptance Requirement has been satisfied or waived by Wright Medical, a fully executed Release and Dismissal have been delivered to Wright Medical pursuant to Sections 8.1 and 9.1.2, and lien amounts have been confirmed by the LRA in writing to Wright Medical pursuant to Sections 7.1 and 9.1.2. |
10.6 | Plaintiffs’ Counsel will create and seek to obtain an order from the Court in the MDL designating one or more interest-bearing qualified settlement fund accounts (“QSFA”s) within the meaning of Treas. Reg. § 1.468B-1, to receive payments |
10.7 | Procedures for Funding Requests and Payments: Amounts of funding at each step below will be requested by itemization in a “Funding Request Report” in the form attached hereto as Exhibit E, provided to Wright Medical by Plaintiffs’ Counsel. A Funding Request Report will identify Eligible Claims that have satisfied requirements for payment of any or all of 1) final negotiated lien amounts, and/or appropriate full lien holdback amounts for all liens, 2) Common Benefit Assessments, or 3) the balance of an Individual Settlement (each a “Payment Item”). |
(a) | Objections to Funding Request Reports: If Wright Medical, in good faith, objects to the accuracy of any Payment Item in any Funding Request Report, that Payment Item will be deemed removed from the Funding Request Report. Payment Items removed from any Funding Request Report may be placed on a subsequent Funding Request Report, as discussed below; however, under no circumstances will a Payment Item be placed on more than one open and pending Funding Request Report. |
(b) | The first Funding Request Report will be provided to Wright Medical by February 6, 2017. |
(c) | Subsequent Funding Request Reports: On both the 15th and last day of each month, beginning March 31, 2017, the Claims Administrator will deliver to Wright Medical a Funding Request Report that identifies all new Payment Items that have not already appeared on a prior Funding Request Report, and Payment Items removed from any prior Funding Request Report, that are then ready for payment. |
(d) | Funding to QSFAs and Common Benefit Fund: Within thirty (30) calendar days of the receipt of each Funding Request Report (other than the first Funding Report which is separately addressed below) Wright Medical will instruct the Escrow Agent to transfer funds into a QSFA designated by Plaintiffs’ Counsel or the Common Benefit Fund Accounts, as applicable, the sum total of all Payment Item amounts listed in the Funding Request Report, minus any removed Payment Items. In the event that no balance remains in the Escrow Settlement Fund, Wright Medical will directly fund amounts due into the QSFA designated by Plaintiffs’ Counsel or the Common Benefit Fund Accounts, as applicable. |
(e) | Payment Report: After each payment is made by the Escrow Agent or Wright Medical in response to a Funding Request Report, |
(f) | Plaintiffs’ Counsel will be solely responsible for authorizing and arranging disbursements from any QSFA, and the Common Benefit Fund Accounts in compliance with MDL CMO 4. Any disbursement will be made only for the specific amount and purpose of each Payment Item, identified in a Payment Report. Under no circumstances will payments be disbursed, used, or credited other than as set forth in a Payment Report. |
10.8 | Timing Of Funding: Individual Settlements will be funded pursuant to, and in the order of, the following steps: |
10.8.1 | By January 31, 2017, all Eligible Claimants that elect to participate must have uploaded to the Claims Administrator’s electronic portal (1) a Claim Election Form, (2) the documents required by Sections 4.1 and 8, and (3) all health insurance provider information and HIPAA/Proof of Representation Releases (as applicable) for purposes of lien resolution pursuant to Section 7. By February 3, 2017, Plaintiffs’ Counsel will provide to Wright Medical a 95% Acceptance Report. By February 6, 2017, Plaintiff’s Counsel will provide to Wright Medical a first Funding Request Report, |
10.8.2 | By March 3, 2017, Wright Medical will either 1) confirm that the 95% Acceptance Requirement has been met or waive the 95% Acceptance Requirement, in which case funding will proceed pursuant to the steps below, or 2) terminate the entire Settlement Agreement as provided in Section 5. |
10.8.3 | By March 10, 2017, Wright Medical will instruct the Escrow Agent to transfer from the Escrow Settlement Account into a QSFA designated by Plaintiffs’ Counsel or the Common Benefit Fund Accounts, as applicable, the sum total of all Payment Item amounts listed in the first Funding Request Report, minus any removed Payment Items. |
10.8.4 | By March 24, 2017, the Claims Administrator, through the electronic portal, will notify counsel for Eligible Claimants of the amount of each |
10.8.5 | On March 31, 2017, the Claims Administrator will issue payments of Individual Settlements to Eligible Claimants’ counsel in accordance with the first Payment Report. For all subsequent Payment Reports, the Claims Administrator will issue payments of individual settlements to Eligible Claimants’ counsel on the 15th day of each month in accordance with the applicable Payment Report; provided, however, that if the 15th day of a given month is a Saturday, Sunday or Monday, the disbursement will be the following Tuesday. |
10.8.6 | On or before May 1, 2017, those Eligible Claimants who elected to participate in the EIF Option must upload their supporting documents (see Section 3.4) to the Claims Administrator’s electronic portal. |
(a) | Bilateral Priority Payment: On July 18, 2017, a single priority payment will be made by the Claims Administrator to any EC asserting claims based on revisions of both bilateral hip implants pursuant to Section 3.5.2, in the amount of $170,000.00 for a CONSERVE® Claim and $120,000.00 for a DYNASTY® or LINEAGE® Claim (a “Bilateral Priority Payment”). To the extent not already withheld from a Standard Settlement Payment, lien holdback amounts will be withheld from the Bilateral Priority Payment pursuant to Section 7. To be clear, a Bilateral Priority Payment is 1) only for ECs who underwent revisions of both bilateral hip implants, and 2) only one Bilateral Priority Payment will be made even if an EC elects the EIF Option for both hips. |
(b) | To fund the Bilateral Priority Payments, Plaintiffs’ Counsel will provide a Funding Request Report to Wright Medical that specifically identifies all and only such priority payments (“Bilateral Funding Request Report”) by June 6, 2017. By July 7, 2017, Wright Medical will instruct the Escrow Agent to transfer, or will itself deposit, into a QSFA designated by Plaintiffs’ Counsel the sum total of all Bilateral Priority Payments listed in the Bilateral Funding Request Report. |
10.8.7 | On or before July 31, 2017, the Claims Administrator will complete its review and issue determination reports on all EIF Option claims. Eligible Claimants will have thirty (30) calendar days from the issuance of their |
10.8.8 | Other than as set forth for Bilateral Priority Payments, no funding by Wright Medical of any EIF Option award will take place until rulings on all appeals have been issued pursuant to Section 3.3.4 (c), at which time funding and payment of EIF Option awards will be made pursuant to the procedures in Section 10.7 above. |
10.9 | Return of Escrow Funds: Any and all funds that remain in the Escrow Settlement Fund following full funding of all Individual Settlements will be returned to Wright Medical. |
10.10 | Dismissals: Upon payment by or on behalf of Wright Medical of the full amount of any Individual Settlement into a QSFA and the Common Benefit Fund Account, the Dismissal pursuant to Section 8.2 will be filed by Wright Medical. |
10.11 | Guaranty of Wright Medical Group, N.V. In partial consideration for this Settlement Agreement, Wright Medical Group, N.V. (“Guarantor”) has executed and delivered a Guaranty Agreement (the “Guaranty”) that provides, subject to the express provisions of the Guaranty and the full enforcement by the MDL Court, for the monetary performance of Wright Medical under this Settlement Agreement. The Guaranty is incorporated by reference as if fully set forth in this Settlement Agreement. In furtherance of the foregoing, the Parties to this Settlement Agreement stipulate, agree, and acknowledge that Guarantor is providing the Guaranty solely as an accommodation to its independent affiliate, Wright Medical, and that nothing contained in this Settlement Agreement shall be deemed or admissible in any way to contradict the distinct corporate identities as and between Guarantor and Wright Medical. |
10.12 | No Eligible Claimant is entitled to seek payment under an Individual Settlement in any manner, or under any timing, other than as set forth in this Settlement Agreement. |
10.13 | Plaintiffs’ Counsel shall have sole and exclusive authority to enforce this Settlement Agreement and the Guaranty. No Eligible Claimant may bring any lawsuit, claim or other adversarial proceeding of any type to enforce the terms and conditions of this Settlement Agreement against Wright Medical or, in the case of the Guaranty, against Guarantor (an “EC Adversary Proceeding,” and, collectively, “EC Adversary Proceedings”). By filing a Claim Election Form, each Eligible Claimant will be deemed expressly to have waived any and all right or ability to bring or pursue, except through Plaintiffs’ Counsel, any and all EC Adversary Proceedings against Wright Medical and, in the case of the Guaranty, Adversary Proceedings against Guarantor, including any EC Adversary |
11. | RISK OF LOSS. |
11.1 | All risk of loss, for any reason and from any cause whatsoever, except as to the Escrow Agent and Escrow Settlement Fund, as specified in Section 11.2 of this Settlement Agreement, relating to the handling, investment, administration, or disposition of funds deposited and/or paid by Wright Medical pursuant to this Settlement Agreement lies exclusively with Plaintiffs’ Counsel and each Eligible Claimant. Except as specified in Section 11.2, Wright Medical will under no circumstance be liable to pay additional sums under this Settlement Agreement due to any action, inaction, or default by another person or entity (including but not limited to the Claims Administrator, the LRA, any entity establishing or holding a QSFA, Plaintiffs’ Counsel or Eligible Claimant’s counsel). |
11.2 | Notwithstanding the foregoing, Wright Medical shall bear any risk of loss accruing to the Escrow Settlement Fund due to any action, inaction, or default by the Escrow Agent or any insolvency or other financial incapacity of the Escrow Agent. |
12. | CONFIDENTIALITY AND PUBLIC STATEMENT. |
12.1 | Claimants, claimants’ counsel, Plaintiffs’ Counsel, and Wright Medical understand, acknowledge, and agree that the terms and conditions of this Settlement Agreement, and any Individual Settlement under this Settlement Agreement, including amounts to be paid, history, background and related negotiations, are to be kept strictly confidential, and are not to be disclosed by claimants, claimants’ counsel, Plaintiffs’ Counsel or Wright Medical, except as required by law, or as hereinafter set forth or as set forth in a Release, to any person, firm, association, corporation or entity at any time, including, but not limited to, legal trade journals, reporting services, the press or media, and/or on any posting on the Internet. |
12.2 | Notwithstanding the foregoing, claimants, claimants’ counsel, Plaintiffs’ Counsel, and Wright Medical may provide this Settlement Agreement, and/or information concerning the nature, negotiations, amount and terms of this Settlement Agreement and/or any Individual Settlement to the following persons or for the following purposes: a) accountants, tax, legal or financial advisors; b) parent companies, affiliates or subsidiaries; c) insurers, retrocessionaires, or reinsurers; d) as absolutely necessary to resolve any outstanding liens; e) when required by |
12.3 | If claimants, claimants’ counsel, or Plaintiffs’ Counsel receive notice of any proceeding in which a court, party, or other entity or person seeks to require the disclosure of this Settlement Agreement, or any matter covered by this Settlement Agreement, or any Individual Settlement, immediate notice will be given to Wright Medical. If any court or other legal entity orders or is requested to order the disclosure of the amount, terms, conditions, history, or background of this Settlement Agreement, or of any Individual Settlement, then claimants’ counsel and Plaintiffs’ Counsel agree to join and support any motion for a Protective Order by Wright Medical seeking to protect the confidentiality of these matters. |
12.4 | Notwithstanding the foregoing, the Parties may make public statements summarizing this Settlement Agreement. The Parties will coordinate the substance and timing of any such public statement(s), provided however that the timing and substance of any required regulatory or other governmental or accounting disclosure is within the exclusive control of Wright Medical. In the event that Wright Medical determines that any required regulatory or other governmental or accounting disclosure must be made prior to the time agreed by the Parties for coordinated public statements summarizing this Settlement Agreement, Wright Medical will notify Plaintiffs’ Counsel to enable the Parties to issue contemporaneous public statements summarizing this Settlement Agreement, as intended by this Section. |
12.5 | Wright Medical and the SOC shall be entitled to review all proof of claim documents, Claim Election Forms, EIF Option submissions, and all other documents submitted by any EC in connection with this Settlement Agreement (including all exhibits and attachments thereto), and all related materials. The representatives of Wright Medical and the SOC shall, at any time, be afforded complete access to and permitted to inspect all of the records or other documentation submitted in connection with each Eligible Claim. For the avoidance of doubt, by accepting an Individual Settlement under this Settlement Agreement, each EC consents to granting access to Wright Medical, the SOC, the Special Master and Claims Administrator, and each of their respective representatives, to the documents that s/he executes and submits as part of the required submissions, including personal information, medical records and lien |
13. | MISCELLANEOUS |
13.1 | Contacts For Parties: Any notice, request, instruction or other document required under this Settlement Agreement shall be in writing and delivered by Federal Express (overnight delivery), and/or e-mail to the following persons, unless otherwise instructed in writing by notice pursuant to this Section 13.1: |
13.12.1 | If to Plaintiffs’ Counsel, to each of the following: |
13.12.2 | If to Wright Medical, to each of the following: |
13.2 | No Admissibility Or Admission: This Settlement Agreement and the Individual Settlements contemplated hereunder are not evidence that any claim alleged by any claimant has merit, nor does it constitute an admission of any wrongdoing or liability by any entity. |
13.3 | Authority To Bind: The undersigned Plaintiffs’ Counsel represent that they have authority to negotiate and enter into this Settlement Agreement, on behalf of all claimants with Eligible Claims. |
13.4 | Inadmissibility of Settlement Agreement: Neither this Settlement Agreement, nor any Individual Settlement, will be admissible or offered as evidence in any proceeding of any type, except in an action to enforce the terms of this Settlement Agreement or an Individual Settlement, and in such instance will be submitted under seal and pursuant to the greatest confidentiality protections possible. |
13.5 | Fees and Costs: Each side shall bear their own attorneys’ fees and costs under this Settlement Agreement and any Individual Settlement. Neither Wright Medical nor any other released party shall have any responsibility whatsoever for the payment of a claimant’s attorneys’ fees or costs, beyond the withholding and funding of Common Benefit Assessments as set forth in Sections 6. |
13.6 | Governing Law and Jurisdiction: This Settlement Agreement shall be governed by and construed in accordance with the law of the State of Georgia, without regard to any choice-of-law rules that would require the application of the law of another jurisdiction. The Parties agree to submit all disputes arising hereunder to the jurisdiction of the Hon. William S. Duffey in the United States District Court for the Northern District of Georgia, multi-district litigation No. 12-2329. |
13.7 | Construction: This Settlement Agreement, including all exhibits, is the product of arm’s length negotiations between counsel and/or Parties represented by counsel. No Party shall be deemed to be the drafter of this Settlement Agreement or its exhibits, or any specific provisions hereof. No presumption shall be deemed to exist in favor of or against any Party as a result of the preparation of this Settlement Agreement or its exhibits. |
13.8 | Survival of Indemnifications. The provisions of this Settlement Agreement and each Release provided hereunder providing indemnification or releases from liability shall survive the modification, termination and full performance of this Settlement Agreement. |
13.9 | Entire Agreement: This Settlement Agreement, including all exhibits and the Term Sheet and Guaranty incorporated by reference, contains the entire agreement between the Parties with respect to the subject matter hereof and supersedes and cancels all previous agreements, negotiations, and commitments, whether in writing or otherwise. Claimants, their counsel and Plaintiffs’ Counsel agree that |
13.12.1 | To be clear, the Term Sheet is incorporated herein by reference in its entirety, and to the extent any inconsistency or lack of clarity exists in this Settlement Agreement, the provisions of the Term Sheet will control. The Term Sheet will be filed with the court, under seal, in any dispute submitted for resolution by the MDL Court under Section 13.6. |
13.10 | Amendments: This Settlement Agreement may be amended by (and only by) a writing signed on behalf of Wright Medical, on the one hand, and Plaintiffs’ Counsel, on the other hand. |
13.11 | Waiver of Inconsistent Provisions of Law; Severability: |
13.12.1 | To the fullest extent permitted by applicable law, each Party, each EC and his/her attorney waives any provision of law (including the common law), which renders any provision of this Settlement Agreement invalid, illegal, or unenforceable in any respect. |
13.12.2 | In case any provision contained in this Settlement Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Settlement Agreement, but this Settlement Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein, but only to the extent it is invalid, illegal, or unenforceable; provided, however, that if the invalid, illegal or unenforceable provision materially changes the equities or overall intent of the Parties, including but not limited to the scope of any release, indemnity or other right or protection, then the Settlement Agreement will be voided in its entirety. Any dispute regarding the materiality of any provision held to be invalid, illegal or unenforceable will be submitted to the MDL Court, pursuant to Section 13.6. |
13.12 | No Third Party Beneficiaries; Assignment: |
13.12.1 | No provision of this Settlement Agreement or any exhibit thereto is intended to create any third-party beneficiary to this Agreement. For the avoidance of doubt, nothing in this Section 13.12 limits or modifies the third-party beneficiary provisions of any Claim Election Form, Release or Dismissal. This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assigns; provided, however, that neither this Settlement Agreement nor any of the rights, interests, or obligations hereunder may be assigned, at any time, including but not limited to prior to the execution of this Settlement Agreement, by any |
13.12.2 | No EC shall have any right to institute any proceeding, judicial or otherwise, against Wright Medical, the SOC, the Special Master, or any Claims Administrator to enforce or otherwise take any action under this Settlement Agreement. |
13.13 | Tax Matters: The Parties agree to characterize the Escrow Settlement Fund for federal, state and local income tax purposes in such manner as is reasonably determined by Wright Medical. The Escrow Agent, the SOC, and Wright Medical shall timely provide each other with such material and relevant information as and to the extent reasonably requested by the other party in connection with any tax filing or the payment of any taxes or any private letter ruling regarding the tax status of these escrow funds. Within a reasonable time after the execution of this Settlement Agreement, the SOC will seek an order from the MDL Court indicating that further escrow accounts that may be established pursuant to this Settlement Agreement are qualified settlement fund accounts within the meaning of Treasury Regulation Section 1.468B-1. To the extent any settlement award constitutes a tax liability of the EC, it is the EC’s responsibility to pay such tax. |
13.14 | Further Assurances: Following the execution of this Settlement Agreement, (i) each Party will take reasonable actions consistent with the terms of this Settlement Agreement as may reasonably be requested by the other Party, and otherwise reasonably cooperate with the other Party in a manner consistent with the terms of this Settlement Agreement, and (ii) each EC and their attorney shall take such reasonable actions consistent with the terms of this Settlement Agreement as may reasonably be requested by Wright Medical or the SOC, and otherwise reasonably cooperate with Wright Medical and the SOC in a manner consistent with the terms of this Settlement Agreement as necessary in order to carry out the intent and purposes of this Settlement Agreement. |
13.15 | Facsimile Signatures: This Settlement Agreement, and any future amendments hereto, may be signed and delivered by means of a facsimile machine or electronic scan (including in the form of an Adobe Acrobat PDF file format), and in such case shall be treated in all respects as an original document. |
13.16 | Counterparts: This Settlement Agreement may be executed in any number of counterparts, each of which shall be an original and all of which shall together constitute one and the same instrument. It shall not be necessary for any counterpart to bear the signature of all Parties hereto. |
PLAINTIFFS’ MDL AND JCCP CO-LEAD COUNSEL | ||||
/s/ Michael L. McGlamry | /s/ Raymond P. Boucher | |||
Michael L. McGlamry Pope, McGlamry, Kilpatrick, Morrison & Norwood, P.C. | Raymond P. Boucher Boucher LLP | |||
Dated: | November 1, 2016 | Dated: | November 1, 2016 | |
WRIGHT MEDICAL TECHNOLOGY, INC. | ||||
/s/ James Lightman | ||||
James Lightman Sr. Vice President and General Counsel Wright Medical Technology, Inc. | ||||
Dated: | November 1, 2016 |
1. | I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended September 25, 2016, of Wright Medical Group N.V.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Robert J. Palmisano | ||
Robert J. Palmisano | ||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended September 25, 2016, of Wright Medical Group N.V.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Lance A. Berry | ||
Lance A. Berry | ||
Senior Vice President and Chief Financial Officer |
/s/ Robert J. Palmisano | ||
Robert J. Palmisano | ||
President and Chief Executive Officer | ||
/s/ Lance A. Berry | ||
Lance A. Berry | ||
Senior Vice President and Chief Financial Officer |
Document and Entity Information Document - shares |
9 Months Ended | |
---|---|---|
Sep. 25, 2016 |
Oct. 31, 2016 |
|
Document Information [Line Items] | ||
Entity Registrant Name | WRIGHT MEDICAL GROUP N.V. | |
Entity Central Index Key | 0001492658 | |
Current Fiscal Year End Date | --12-25 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 25, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 103,308,869 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheet (Parenthetical) |
Sep. 25, 2016
€ / shares
shares
|
Dec. 27, 2015
€ / shares
shares
|
Sep. 30, 2015
$ / shares
|
---|---|---|---|
Common Stock, Par or Stated Value Per Share | (per share) | € 0.03 | € 0.03 | $ 0.01 |
Common stock, shares authorized (in shares) | 320,000,000 | 320,000,000 | |
Common Stock, Shares, Issued | 103,225,384 | 102,672,678 |
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 |
Sep. 30, 2015 |
Sep. 25, 2016 |
Sep. 30, 2015 |
||||||||||||||||||
Income Statement [Abstract] | |||||||||||||||||||||
Net sales | $ 157,332 | $ 80,139 | $ 497,339 | $ 238,493 | |||||||||||||||||
Cost of sales | [1],[2] | 46,149 | 23,052 | 141,824 | 63,812 | ||||||||||||||||
Gross profit | 111,183 | 57,087 | 355,515 | 174,681 | |||||||||||||||||
InventoryStepUpAmortizationExpense | 20 | 34,346 | [3] | 69 | [3] | ||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Selling, general and administrative | [1] | 129,840 | 85,997 | 401,069 | 250,801 | ||||||||||||||||
Research and development | [1] | 12,481 | 9,570 | 36,705 | 24,644 | ||||||||||||||||
Amortization of intangible assets | 7,466 | 2,562 | 21,407 | 7,741 | |||||||||||||||||
Total operating expenses | 149,787 | 98,129 | 459,181 | 283,186 | |||||||||||||||||
Operating income | (38,604) | (41,042) | (103,666) | (108,505) | |||||||||||||||||
Interest Income (Expense), Nonoperating, Net | 16,795 | 11,185 | 41,673 | 29,793 | |||||||||||||||||
Other expense, net | (365) | 10,236 | (3,494) | 7,395 | |||||||||||||||||
Income (loss) before income taxes | (55,034) | (62,463) | (141,845) | (145,693) | |||||||||||||||||
Provision (benefit) for income taxes | (2,325) | 187 | (6,913) | 511 | |||||||||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | (52,709) | (62,650) | (134,932) | (146,204) | |||||||||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | (57,436) | (36,211) | (252,571) | (46,720) | |||||||||||||||||
Net (loss) income | $ (110,145) | $ (98,861) | $ (387,503) | $ (192,924) | |||||||||||||||||
Net income (loss) per share (Note 15): | |||||||||||||||||||||
Income (Loss) from Continuing Operations, Per Basic Share | [4] | $ (0.51) | $ (1.19) | $ (1.31) | $ (2.78) | ||||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | [4] | (0.51) | (1.19) | (1.31) | (2.78) | ||||||||||||||||
Basic (in dollars per share) | [4] | (1.07) | (1.87) | (3.77) | (3.67) | ||||||||||||||||
Diluted (in dollars per share) | [4] | $ (1.07) | $ (1.87) | $ (3.77) | $ (3.67) | ||||||||||||||||
Weighted-average number of shares outstanding-basic (in shares) | 103,072 | [5] | 52,750 | [4] | 102,854 | [5] | 52,607 | [4] | |||||||||||||
Weighted-average number of shares outstanding, diluted (in shares) | 103,072 | [5],[6] | 52,750 | [4],[6] | 102,854 | [5] | 52,607 | [4] | |||||||||||||
InventoryStepUpAmortizationExpenseContinuingOperations | $ 10,306 | $ 30,922 | |||||||||||||||||||
|
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 |
Sep. 30, 2015 |
Sep. 25, 2016 |
Sep. 30, 2015 |
|||||
InventoryStepUpAmortizationExpenseContinuingOperations | $ 10,306 | $ 30,922 | ||||||
InventoryStepUpAmortizationExpense | $ 20 | 34,346 | [1] | $ 69 | [1] | |||
Cost of Sales [Member] | ||||||||
Stock-based compensation expense | 146 | 17 | 321 | 28 | ||||
Selling, general and administrative [Member] | ||||||||
Stock-based compensation expense | 3,168 | 1,777 | 9,070 | 6,895 | ||||
Research and Development [Member] | ||||||||
Stock-based compensation expense | $ 214 | $ 231 | $ 510 | $ 783 | ||||
|
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 25, 2016 |
Sep. 30, 2015 |
Sep. 25, 2016 |
Sep. 30, 2015 |
|
Net (loss) income | $ (110,145) | $ (98,861) | $ (387,503) | $ (192,924) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Changes in foreign currency translation | 11,763 | (7,293) | ||
Other Comprehensive Income (Loss) | 4,480 | (1,581) | 11,763 | (7,293) |
Comprehensive Income (Loss) | (105,665) | (100,442) | (375,740) | (200,217) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Changes in foreign currency translation | $ 4,480 | $ (1,581) | $ 11,763 | $ (7,293) |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 25, 2016 |
Sep. 30, 2015 |
||||
Operating activities: | |||||
Net (loss) income | $ (387,503) | $ (192,924) | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Consolidated Depreciation | 42,066 | 16,966 | |||
Stock-based compensation expense | 9,901 | 7,706 | |||
Consolidated Intangible Amortization | 21,746 | 7,741 | |||
Amortization of Financing Costs and Discounts | 28,676 | 20,175 | |||
Deferred income taxes | (9,534) | 2 | |||
Inventory Write-down | [1] | 16,171 | 10,926 | ||
Write off of Deferred Debt Issuance Cost | 12,343 | 24,746 | |||
InventoryStepUpAmortizationExpense | [1] | 34,346 | 69 | ||
Non Cash Adjustment Derivative Fair Value | (26,460) | (12,022) | |||
Impairment of Long-Lived Assets to be Disposed of | 21,876 | 0 | |||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 8,968 | (7,290) | |||
Loss Contingency, Receivable, Period Increase (Decrease) | 0 | 25,000 | |||
Product Liability Accrual, Period Expense | 188,732 | 0 | |||
Other | 3,494 | 4,765 | |||
Changes in assets and liabilities (net of acquisitions): | |||||
Accounts receivable | 9,900 | 2,878 | |||
Inventories | [1] | (3,662) | (33,779) | ||
Prepaid expenses and other current assets | 20,066 | (2,872) | |||
Accounts payable | (6,659) | 1,866 | |||
Accrued expenses and other liabilities | (9,820) | 12,191 | |||
Payment of Contingent Consideration | 0 | (27,983) | |||
Net cash provided by operating activities | (25,353) | (141,839) | |||
Investing activities: | |||||
Capital expenditures | (37,800) | (34,013) | |||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 4,905 | |||
Purchase of intangible assets | (4,761) | (82) | |||
Sales and maturities of available-for-sale marketable securities | 0 | 2,566 | |||
Net cash used in investing activities | (42,561) | (36,434) | |||
Financing activities: | |||||
Issuance of common stock | 5,654 | 3,084 | |||
Proceeds from Issuance of Warrants | 54,629 | 86,400 | |||
Payments for Hedge, Financing Activities | 99,816 | 144,843 | |||
Payments for Repurchase of Warrants | 3,319 | 59,803 | |||
Settlement of 2017 Notes Conversion Derivative | (1,619) | (49,152) | |||
Proceeds from Hedge, Financing Activities | 3,892 | 69,764 | |||
Proceeds from Debt, Net of Issuance Costs | 821 | 0 | |||
Payment of Financing and Stock Issuance Costs | 8,318 | 20,081 | |||
Payment of contingent consideration - initial valuation | (664) | (70,120) | |||
Repayments of Long-term Capital Lease Obligations | (1,822) | (530) | |||
Net cash provided by (used in) financing activities | 241,464 | 207,219 | |||
Effect of exchange rates on cash and cash equivalents | 960 | (1,837) | |||
Proceeds from Convertible Debt | 395,000 | 632,500 | |||
Repayments of Convertible Debt | 102,974 | 240,000 | |||
Net increase in cash and cash equivalents | 174,510 | 27,109 | |||
Consolidated cash and cash equivalents, beginning of year | 139,804 | 227,326 | |||
Consolidated Cash and Equivalents, end of year | $ 314,314 | $ 254,435 | |||
|
Organization and Description of Business |
9 Months Ended |
---|---|
Sep. 25, 2016 | |
Organization and Description of Business [Abstract] | |
Organization and Description of Business | Organization and Description of Business Wright Medical Group N.V. (Wright or we) is a global medical device company focused on extremities and biologics products. We are committed to delivering innovative, value-added solutions improving quality of life for patients worldwide and are a recognized leader of surgical solutions for the upper extremities (shoulder, elbow, wrist and hand), lower extremities (foot and ankle) and biologics markets, three of the fastest growing segments in orthopaedics. We market our products in over 50 countries worldwide. Our global corporate headquarters are located in Amsterdam, the Netherlands. We also have significant operations located in Memphis, Tennessee (U.S. headquarters, research and development, sales and marketing administration, and administrative activities); Bloomington, Minnesota (upper extremities sales and marketing); Arlington, Tennessee (manufacturing and warehousing operations); Grenoble, France (manufacturing and research and development); and Macroom, Ireland (manufacturing). In addition, we have local sales and distribution offices in Canada, Australia, Asia, and throughout Europe. For purposes of this report, references to "international" or "foreign" relate to non-U.S. matters while references to "domestic" relate to U.S. matters. Upon completion of the merger between Wright Medical Group, Inc. (legacy Wright or WMG) and Tornier N.V. (legacy Tornier) (the Wright/Tornier merger or merger) effective October 1, 2015, Robert J. Palmisano, former President and Chief Executive Officer (CEO) of legacy Wright, became President and CEO of the combined company, and Lance A. Berry, former Senior Vice President (SVP) and Chief Financial Officer (CFO) of legacy Wright, became SVP and CFO. Immediately upon completion of the merger, legacy Wright shareholders owned approximately 52% of the combined company and legacy Tornier shareholders owned approximately 48% of the combined company, and our board of directors was comprised of five representatives from legacy Wright’s board of directors and five representatives from legacy Tornier’s board of directors. In connection with the merger, the trading symbol for our ordinary shares changed from “TRNX” to “WMGI.” Because of these and other facts and circumstances, the merger was accounted for as a “reverse acquisition” under generally accepted accounting principles in the United States (US GAAP), and as such, legacy Wright was considered the acquiring entity for accounting purposes. Therefore, legacy Wright’s historical results of operations replaced legacy Tornier’s historical results of operations for all periods prior to the merger. More specifically, the accompanying condensed consolidated financial statements for periods prior to the merger are those of legacy Wright and its subsidiaries, and for periods subsequent to the merger also include legacy Tornier and its subsidiaries. Our fiscal year runs from the first Monday after the last Sunday of December of a year and ends on the last Sunday of December of the following year, and generally consists of four 13-week quarters. Prior to the merger, our fiscal year ended December 31 each year. The condensed consolidated financial statements and accompanying notes present our consolidated results for each of the three and nine months ended September 25, 2016 and September 30, 2015. All amounts are presented in U.S. dollars ($), except where expressly stated as being in other currencies, e.g., Euros (€). References in these notes to condensed consolidated financial statements to "we," "our" and "us" refer to Wright Medical Group N.V. and its subsidiaries after the Wright/Tornier merger and Wright Medical Group, Inc. and its subsidiaries before the merger. |
Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 25, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation. The unaudited condensed consolidated interim financial statements of Wright Medical Group N.V. have been prepared in accordance with US GAAP for interim financial statements and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to these rules and regulations. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with our consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 27, 2015, as filed with the U.S. Securities and Exchange Commission (SEC) on February 23, 2016. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments necessary for a fair presentation of our interim financial results. All such adjustments are of a normal and recurring nature. The results of operations for any interim period are not indicative of results for the full fiscal year. The accompanying unaudited condensed consolidated interim financial statements include our accounts and those of our domestic and international subsidiaries, all of which are wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. Reclassifications. Certain prior period amounts on the balance sheet and the statement of cash flows have been reclassified to conform to the current period presentation. Discontinued Operations. On October 21, 2016, pursuant to the previously disclosed binding offer letter, dated as of July 8, 2016, Tornier SAS (Tornier France), Corin Orthopaedics Holdings Limited (Corin), and certain other entities related to Tornier France and Corin entered into a business sale agreement (Sale Agreement) and simultaneously completed and closed the sale of our business operations operating under the large joints operating segment. Pursuant to the terms of the Sale Agreement, Tornier France sold substantially all of our assets related to our hip and knee, or large joints, business (the Large Joints Business) to Corin for approximately €29.7 million in cash, less approximately €10.6 million for net working capital adjustments and subject to certain other closing adjustments. All historical operating results for the Large Joints Business are reflected within discontinued operations in the unaudited condensed consolidated statements of operations. Further, all assets and associated liabilities transferred to Corin were classified as assets and liabilities held for sale on our condensed consolidated balance sheets for all periods presented. See Note 4 for further discussion of discontinued operations. Other than the discontinued operations discussed in Note 4, unless otherwise stated, all discussion of assets and liabilities in these notes to the condensed consolidated financial statements reflects the assets and liabilities held and used in our continuing operations, and all discussion of revenues and expenses reflects those associated with our continuing operations. Shipping and Handling Costs. We incur shipping and handling costs associated with the shipment of goods to customers, independent distributors, and our subsidiaries. Amounts billed to customers for shipping and handling of products are included in net sales. Costs incurred related to shipping and handling of products to customers are included in selling, general and administrative expenses. These amounts totaled $5.2 million and $12.7 million for the three and nine months ended September 25, 2016, respectively, and $1.9 million and $6.0 million for the three and nine months ended September 30, 2015, respectively. All other shipping and handling costs are included in cost of sales. Recent Accounting Pronouncements. On May 28, 2014 and August 12, 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09 and 2015-14, Revenue from Contracts with Customers, respectively, which supersede virtually all existing revenue recognition guidance under US GAAP. The ASU provides a five-step model for revenue recognition that companies will apply to recognize revenue in a manner that reflects the timing of the transfer of services to customers and that the amount of revenue recognized reflects the consideration that a company expects to receive for the goods and services provided. The ASU will be effective for us beginning in fiscal year 2018. We are in the initial phases of our adoption plans and; accordingly, we are unable to estimate any effect this may have on our financial statements. On April 7, 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, as part of its simplification initiative. The ASU changes the presentation of debt issuance costs in financial statements to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. Further, on August 16, 2015, the FASB issued ASU 2015-15 Presentation and Subsequent Measurement of Debt Issuance Costs Associated With Line-of-Credit Arrangements to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements given the lack of guidance on this topic in ASU 2015-03. The SEC staff has announced that it would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. We adopted this guidance during the first quarter of 2016 on a retrospective basis. Accordingly, we reclassified debt issuance costs on our December 27, 2015 consolidated balance sheet, which decreased other assets and long-term debt by $16.2 million. On September 25, 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments to simplify the accounting for measurement-period adjustments. The ASU, which is part of the FASB’s simplification initiative, was issued in response to stakeholder feedback that restatements of prior periods to reflect adjustments made to provisional amounts recognized in a business combination increase the cost and complexity of financial reporting but do not significantly improve the usefulness of the information. Under this ASU, an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined and must present these amounts separately on the face of the income statement or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. We adopted ASU 2015-16 in the first quarter of 2016 and have recognized adjustments to provisional amounts in the period they were determined as discussed in Note 3. On February 25, 2016, the FASB issued ASU 2016-02, Leases, which introduces a lessee model that brings most leases on the balance sheet. The new standard also aligns many of the underlying principles of the new lessor model with those in FASB Accounting Standards Codification (ASC) 606, the FASB’s new revenue recognition standard (e.g., those related to evaluating when profit can be recognized). Furthermore, the ASU addresses other concerns related to the current leases model. The ASU will be effective for us beginning in fiscal year 2019. We are in the initial phases of our adoption plans and; accordingly, we are unable to estimate any effect this may have on our financial statements. On August 26, 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, which amends the guidance in ASC 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of the ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. The ASU’s amendments add or clarify guidance on eight cash flow issues, including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, and proceeds from the settlement of insurance claims. The guidance in the ASU is effective for us beginning in 2018 with early adoption permitted. We are in the initial phases of our adoption plans and; accordingly, we are unable to estimate any effect this may have on our financial statements. |
Acquisitions (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | Acquisition and Disposition Wright/Tornier Merger On October 1, 2015, we completed the Wright/Tornier merger. Immediately upon completion of the merger, legacy Wright shareholders owned approximately 52% of the combined company and legacy Tornier shareholders owned approximately 48% of the combined company. Effective upon completion of the merger, we have operated under the leadership of the legacy Wright management team and our board of directors was comprised of five representatives from legacy Wright’s board of directors and five representatives from legacy Tornier’s board of directors. Because of these and other facts and circumstances, the merger was accounted for as a “reverse acquisition” under US GAAP. As such, legacy Wright was considered the acquiring entity for accounting purposes; and therefore, legacy Wright’s historical results of operations replaced legacy Tornier’s historical results of operations for all periods prior to the merger. As part of the merger, each legacy Wright share was converted into the right to receive 1.0309 ordinary shares of the combined company. The Wright/Tornier merger added legacy Tornier’s complementary extremities product portfolio to further accelerate growth opportunities in our global extremities business. The results of operations of both companies are included in our condensed consolidated financial statements for all periods after completion of the merger. The acquired business contributed net sales of $66.9 million and $222.3 million and operating loss of $16.9 million and $26.7 million to our condensed consolidated results of operations for the three and nine months ended September 25, 2016, respectively. Purchase Consideration and Net Assets Acquired The purchase consideration in a reverse acquisition is determined with reference to the value of equity that the accounting acquirer, legacy Wright, would have had to issue to the owners of the accounting acquiree, legacy Tornier, to give them the same percentage interest in the combined entity. The fair value of WMG common stock used in determining the purchase price was $21.02 per share, the closing price on September 30, 2015, which resulted in a total purchase consideration of $1.034 billion. The calculation of the purchase consideration is as follows (in thousands):
The following presents the allocation of the purchase consideration to the assets acquired and liabilities assumed on October 1, 2015 (in thousands):
We made various changes to the purchase allocation during the measurement period. These changes were recorded in the reporting period in which the adjustment amounts were determined in accordance with ASU 2015-16. During the three months ended March 27, 2016, we revised the opening balances of current liabilities and goodwill acquired as part of the Wright/Tornier merger by $0.6 million. During the three months ended June 26, 2016, we revised the opening balances of intangible assets, accounts receivable, inventories, current liabilities, and goodwill acquired as part of the Wright/Tornier merger based on new information that existed as of the acquisition date. As a result of the completion of the valuation of acquired intangible assets by our third-party valuation firm, we increased the opening balance of acquired intangible assets by $9.4 million, with a corresponding decrease to goodwill. This allocation adjustment resulted in an increase to amortization expense of $0.3 million for the six months ended June 26, 2016, of which $0.1 million related to each of the previous two quarters. We also revised the opening balance of acquired working capital accounts by a net decrease of $0.5 million, with a corresponding increase to goodwill. During the three months ended September 25, 2016, as a result of the finalization of the valuation of acquired intangible assets by tax jurisdiction, we reduced the opening balance of deferred income taxes by $4.7 million, with a corresponding decrease to goodwill. This allocation adjustment resulted in a $0.4 million decrease to our income tax benefit for the nine months ended September 25, 2016. We revised the opening balance of property, plant, and equipment by $0.2 million with a corresponding increase to goodwill. The decrease in property, plant, and equipment resulted in an immaterial impact to depreciation expense. We also revised the opening balance of acquired working capital accounts by a net increase of $2.1 million, with a corresponding decrease to goodwill, primarily due to the completion of our assessment on inventory and current liabilities. The purchase price allocation is now considered final. The acquisition was recorded by allocating the costs of the net assets acquired based on their estimated fair values at the acquisition date. Trade receivables and payables, as well as certain other current and non-current assets and liabilities, were valued at the existing carrying values as they represented the fair value of those items at the acquisition date, based on management’s judgments and estimates. Trade receivables included gross contractual amounts of $73.9 million and our best estimate of $10.1 million which represents contractual cash flows not expected to be collected at the acquisition date. Inventory was recorded at estimated selling price less costs of disposal and a reasonable selling profit. The resulting inventory step-up adjustment is being recognized in cost of sales as the related inventory is sold. The fair value of property, plant and equipment utilized a combination of the cost and market approaches, depending on the characteristics of the asset classification. In determining the fair value of intangibles, we used an income method which is based on forecasts of the expected future cash flows attributable to the respective assets. Significant estimates and assumptions inherent in the valuations reflect a consideration of other marketplace participants and include the amount and timing of future cash flows (including expected growth rates and profitability), the underlying product or technology life cycles, the economic barriers to entry, and the discount rate applied to the cash flows. Of the $213.6 million of acquired intangible assets, $99.9 million was assigned to customer relationships (20 year life), $89.5 million was assigned to developed technology (10 year life), $15.9 million was assigned to in-process research and development, and $8.3 million was assigned to trade names (2.6 year life). The excess of the cost of the acquisition over the fair value of the net assets acquired is recorded as goodwill. The goodwill is primarily attributable to strategic opportunities that arose from the acquisition of Tornier. The goodwill is not expected to be deductible for tax purposes. The assets acquired in connection with the acquisition of Tornier and included in the above allocation of the purchase consideration include, among other assets, assets associated with legacy Tornier's Large Joints Business. As described in more detail in Note 4, on October 21, 2016, pursuant to the previously disclosed binding offer letter, dated as of July 8, 2016, Tornier France, Corin, and certain other entities related to us and Corin entered into a Sale Agreement and simultaneously completed and closed the sale of our Large Joints Business. Pursuant to the terms of the Sale Agreement, we sold substantially all of our assets related to our Large Joints Business to Corin for approximately €29.7 million in cash, less approximately €10.6 million for net working capital adjustments and certain other closing adjustments. Pro Forma Condensed Combined Financial Information The following pro forma combined financial information (in thousands) summarizes the results of operations for the periods indicated as if the Wright/Tornier merger had been completed as of January 1, 2015.
The pro forma net loss for the three and nine months ended September 30, 2015 includes approximately $3.3 million and $6.8 million, respectively, of non-recurring merger-related transaction expenses. Pro forma information reflects adjustments that are expected to have a continuing impact on our results of operations and are directly attributable to the merger. The pro forma results include adjustments to reflect, among other things, the amortization of the inventory step-up, the incremental intangible asset amortization to be incurred based on the preliminary values of each identifiable intangible asset, and to eliminate interest expense related to legacy Tornier's former bank term debt and line of credit, which were repaid upon completion of the Wright/Tornier merger. The pro forma amounts do not purport to be indicative of the results that would have actually been obtained if the merger had occurred as of January 1, 2015 or that may be obtained in the future, and do not reflect future synergies, integration costs, or other such costs or savings. Divestiture of Certain Legacy Tornier Ankle Replacement and Toe Assets On October 1, 2015, simultaneous with the completion of the Wright/Tornier merger, we completed the divestiture of the U.S. rights to legacy Tornier's SALTO TALARIS® and SALTO TALARIS® XT™ line of ankle replacement products and line of silastic toe replacement products, among other assets, for cash. We retained the right to sell these products outside the United States for up to 20 years unless the purchaser exercises an option to purchase the ex-United States rights to the products. The completion of the asset divestiture was subject to and contingent upon the completion of the Wright/Tornier merger and we believe was necessary in order to obtain U.S. Federal Trade Commission approval of the Wright/Tornier merger. As these assets were not part of Wright/Tornier merger, they were not part of the purchase allocation. |
Discontinued Operations (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations Large Joints Business On October 21, 2016, pursuant to the previously disclosed binding offer letter dated as of July 8, 2016, Tornier France, Corin, and certain other entities related to us and Corin entered into a Business Sale Agreement and simultaneously completed and closed the sale of our Large Joints Business. Pursuant to the terms of the Sale Agreement, we sold substantially all of our assets related to our Large Joints Business to Corin for approximately €29.7 million in cash, less approximately €10.6 million for net working capital adjustments. Upon closing, the parties also executed a transitional services agreement and supply agreement, among other ancillary agreements required to implement the transaction. These agreements are on arm’s length terms and are not expected to be material to our financial statements. We determined that the Large Joints Business meets the criteria for classification as discontinued operations. All historical operating results for the Large Joints Business, including costs associated with corporate employees and infrastructure to be transferred as a part of the sale, are reflected within discontinued operations in the condensed consolidated statements of operations. Further, all assets and associated liabilities transferred to Corin were classified as assets and liabilities held for sale in our condensed consolidated balance sheets for all periods presented. We recognized an impairment loss on assets held for sale of $21.9 million, before the effect of income taxes, in the second quarter of 2016, based on the difference between the net carrying value of the assets and liabilities held for sale and the purchase price, less estimated adjustments and costs to sell. This loss was recorded within Net loss from discontinued operations in the accompanying condensed consolidated statements of operations for the nine months ended September 25, 2016. All current operating results for the Large Joints Business are reflected within discontinued operations in the condensed consolidated financial statements. As the Large Joints Business was obtained as a result of the Wright/Tornier merger on October 1, 2015, the historical periods presented are not affected. The following table summarizes the results of discontinued operations for the Large Joints Business (in thousands, except per share data):
The following table summarizes the assets and liabilities held for sale (in thousands):
Cash provided by operating activities from the Large Joints Business totaled $3.0 million for the nine months ended September 25, 2016. OrthoRecon Business On January 9, 2014, legacy Wright completed the divestiture and sale of its hip and knee (OrthoRecon) business to MicroPort Scientific Corporation (MicroPort). Pursuant to the terms of the agreement with MicroPort, the purchase price (as defined in the agreement) was approximately $283 million (including a working capital adjustment), which MicroPort paid in cash. As a result of the transaction, we recognized approximately $24.3 million as the gain on disposal of the OrthoRecon business, before the effect of income taxes. All current and historical operating results for the OrthoRecon business are reflected within discontinued operations in the condensed consolidated financial statements. The following table summarizes the results of discontinued operations for the OrthoRecon business (in thousands, except per share data):
___________________________
Certain liabilities associated with the OrthoRecon business, including product liability claims associated with hip and knee products sold by legacy Wright prior to the closing, were not assumed by MicroPort. Charges associated with these product liability claims, including legal defense, settlements and judgments, income associated with product liability insurance recoveries, and changes to any contingent liabilities associated with the OrthoRecon business have been reflected within results of discontinued operations, and we will continue to reflect these within results of discontinued operations in future periods. During the three and nine months ended September 25, 2016, we recognized a $38.7 million and $188.7 million charge, respectively, within discontinued operations related to the retained metal-on-metal product liability claims associated with the OrthoRecon business (see Note 13 for additional discussion). We will incur continuing cash outflows associated with legal defense costs and the ultimate resolution of these contingent liabilities, net of insurance proceeds, until these liabilities are resolved. Cash used in operating activities from the OrthoRecon business totaled $29.7 million and $20.0 million for the nine months ended September 25, 2016 and September 30, 2015, respectively. |
Inventories |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consist of the following (in thousands):
|
Derivatives and Fair Value of Financial Instruments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Fair Value [Text Block] | Fair Value of Financial Instruments and Derivatives We account for derivatives in accordance with FASB ASC 815, which establishes accounting and reporting standards requiring that derivative instruments be recorded on the balance sheet as either an asset or liability measured at fair value. Additionally, changes in the derivatives' fair value shall be recognized currently in earnings unless specific hedge accounting criteria are met. FASB ASC Section 820, Fair Value Measurements and Disclosures requires fair value measurements be classified and disclosed in one of the following three categories:
2021 Conversion Derivative and Notes Hedging On May 20, 2016, we issued $395 million aggregate principal amount of 2.25% cash convertible senior notes due 2021 (the 2021 Notes). See Note 9 of the condensed consolidated financial statements for additional information regarding the 2021 Notes. The 2021 Notes have a conversion derivative feature (2021 Notes Conversion Derivative) that requires bifurcation from the 2021 Notes in accordance with ASC Topic 815, and is accounted for as a derivative liability. The fair value of the 2021 Notes Conversion Derivative at the time of issuance of the 2021 Notes was $117.2 million. In connection with the issuance of the 2021 Notes, we entered into hedges (2021 Notes Hedges) with two option counterparties. The 2021 Notes Hedges, which are cash-settled, are generally intended to reduce our exposure to potential cash payments that we are required to make upon conversion of the 2021 Notes in excess of the principal amount of converted notes if our ordinary share price exceeds the conversion price. The aggregate cost of the 2021 Notes Hedges was $99.8 million and is accounted for as a derivative asset in accordance with ASC Topic 815. However, in connection with certain events, these option counterparties have the discretion to make certain adjustments to the 2021 Note Hedges, which may reduce the effectiveness of the 2021 Note Hedges. The following table summarizes the fair value and the presentation in the condensed consolidated balance sheet (in thousands) of the 2021 Notes Hedges and 2021 Notes Conversion Derivative:
The 2021 Notes Hedges and the 2021 Notes Conversion Derivative are measured at fair value using Level 3 inputs. These instruments are not actively traded and are valued using an option pricing model that uses observable and unobservable market data for inputs. Neither the 2021 Notes Conversion Derivative nor the 2021 Notes Hedges qualify for hedge accounting; thus, any change in the fair value of the derivatives is recognized immediately in the condensed consolidated statements of operations. The following table summarizes the net (loss)/gain on changes in fair value (in thousands) related to the 2021 Notes Hedges and 2021 Notes Conversion Derivative:
2020 Conversion Derivative and Notes Hedging On February 13, 2015, WMG issued $632.5 million aggregate principal amount of 2.00% cash convertible senior notes due 2020 (the 2020 Notes). See Note 9 of the condensed consolidated financial statements for additional information regarding the 2020 Notes. The 2020 Notes have a conversion derivative feature (2020 Notes Conversion Derivative) that requires bifurcation from the 2020 Notes in accordance with ASC Topic 815, and is accounted for as a derivative liability. The fair value of the 2020 Notes Conversion Derivative at the time of issuance of the 2020 Notes was $149.8 million. In connection with the issuance of the 2020 Notes, WMG entered into hedges (2020 Notes Hedges) with three option counterparties. The 2020 Notes Hedges, which are cash-settled, are generally intended to reduce WMG's exposure to potential cash payments that WMG is required to make upon conversion of the 2020 Notes in excess of the principal amount of converted notes if our ordinary share price exceeds the conversion price. The aggregate cost of the 2020 Notes Hedges was $144.8 million and is accounted for as a derivative asset in accordance with ASC Topic 815. However, in connection with certain events, these option counterparties have the discretion to make certain adjustments to the 2020 Note Hedges, which may reduce the effectiveness of the 2020 Note Hedges. Concurrently with the issuance and sale of the 2021 Notes, certain holders of the 2020 Notes exchanged approximately $45 million aggregate principal amount of 2020 Notes (including the 2020 Notes Conversion Derivative) for the 2021 Notes. For each $1,000 principal amount of 2020 Notes validly submitted for exchange, we delivered $990 principal amount of the 2021 Notes (subject, in each case, to rounding down to the nearest $1,000 principal amount of the 2021 Notes, the difference being referred as the rounded amount) to the investor plus an amount of cash equal to the unpaid interest on the 2020 Notes and the rounded amount at an aggregate cost of approximately $44.6 million. We settled the associated portion of the 2020 Notes Conversion Derivative at a benefit of approximately $0.4 million and satisfied the accrued interest, which was not material. In addition, during the second quarter of 2016, we settled a portion of the 2020 Notes Hedges (receiving $3.9 million) and repurchased a portion of the warrants associated with the 2020 Notes (paying $3.3 million), generating net proceeds of approximately $0.6 million. The following table summarizes the fair value and the presentation in the condensed consolidated balance sheet (in thousands) of the 2020 Notes Hedges and 2020 Notes Conversion Derivative:
The 2020 Notes Hedges and the 2020 Notes Conversion Derivative are measured at fair value using Level 3 inputs. These instruments are not actively traded and are valued using an option pricing model that uses observable and unobservable market data for inputs. Neither the 2020 Notes Conversion Derivative nor the 2020 Notes Hedges qualify for hedge accounting; thus, any change in the fair value of the derivatives is recognized immediately in the condensed consolidated statements of operations. The following table summarizes the net gain on changes in fair value (in thousands) related to the 2020 Notes Hedges and 2020 Notes Conversion Derivative:
2017 Conversion Derivative and Notes Hedging On August 31, 2012, WMG issued $300 million aggregate principal amount of 2.00% cash convertible senior notes due 2017 (the 2017 Notes). See Note 9 of the condensed consolidated financial statements for additional information regarding the 2017 Notes. The 2017 Notes have a conversion derivative feature (2017 Notes Conversion Derivative) that requires bifurcation from the 2017 Notes in accordance with ASC Topic 815, and is accounted for as a derivative liability. The fair value of the 2017 Notes Conversion Derivative at the time of issuance of the 2017 Notes was $48.1 million. In connection with the issuance of the 2017 Notes, WMG entered into hedges (2017 Notes Hedges) with three option counterparties. The aggregate cost of the 2017 Notes Hedges was $56.2 million and was accounted for as a derivative asset in accordance with ASC Topic 815. In connection with the issuance of the 2020 Notes, WMG used approximately $292 million of the 2020 Notes' net proceeds to repurchase and extinguish approximately $240 million aggregate principal amount of the 2017 Notes, settle the associated portion of the 2017 Notes Conversion Derivative at a cost of approximately $49 million, and satisfy the accrued interest of $2.4 million. WMG also settled all of the 2017 Notes Hedges (receiving $70 million) and repurchased all of the warrants associated with the 2017 Notes (paying $60 million), generating net proceeds of approximately $10 million. Concurrently with the issuance and sale of the 2021 Notes, certain holders of the 2017 Notes exchanged approximately $54.4 million aggregate principal amount of 2017 Notes (including the 2017 Notes Conversion Derivative) for the 2021 Notes. For each $1,000 principal amount of 2017 Notes validly submitted for exchange, we delivered $1,035.40 principal amount of the 2021 Notes (subject, in each case, to rounding down to the nearest $1,000 principal amount of the 2021 Notes, the difference being referred as the rounded amount) to the investor plus an amount of cash equal to the unpaid interest on the 2017 Notes and the rounded amount at a cost of approximately $56.3 million. We settled the associated portion of the 2017 Notes Conversion Derivative at a cost of approximately $1.9 million and satisfied the accrued interest, which was not material. In addition, during the second quarter of 2016, we repurchased and extinguished an additional $3.6 million aggregate principal amount of the 2017 Notes in privately negotiated transactions and settled the associated portion of the 2017 Notes Conversion Derivative at a cost of approximately $0.1 million, and satisfied the accrued interest, which was not material. The following table summarizes the fair value and the presentation in the condensed consolidated balance sheet (in thousands) of the 2017 Notes Conversion Derivative:
The 2017 Notes Conversion Derivative is measured at fair value using Level 3 inputs. This instrument is not actively traded and is valued using an option pricing model that uses observable and unobservable market data for inputs. Neither the 2017 Notes Conversion Derivative nor the 2017 Notes Hedges qualify for hedge accounting; thus, any change in the fair value of the derivatives is recognized immediately in the condensed consolidated statements of operations. The following table summarizes the net (loss)/gain on changes in fair value (in thousands) related to the 2017 Notes Hedges and 2017 Notes Conversion Derivative:
To determine the fair value of the embedded conversion option in the 2017, 2020, and 2021 Notes Conversion Derivatives, a trinomial lattice model was used. A trinomial stock price lattice generates three possible outcomes of stock price - one up, one down, and one stable. This lattice generates a distribution of stock prices at the maturity date and throughout the life of the 2017, 2020, and 2021 Notes. Using this stock price lattice, a convertible note lattice was created where the value of the embedded conversion option was estimated by comparing the value produced in a convertible note lattice with the option to convert against the value without the ability to convert. In each case, the convertible note lattice first calculates the possible convertible note values at the maturity date, using the distribution of stock prices, which equals to the maximum of (x) the remaining bond cash flows and (y) stock price times the conversion price. The values of the 2017, 2020, and 2021 Notes Conversion Derivatives at the valuation date were estimated using the values at the maturity date and moving back in time on the lattices (both for the lattice with the conversion option and without the conversion option). Specifically, at each node, if the 2017, 2020, or 2021 Notes are eligible for early conversion, the value at this node is the maximum of (i) converting to stock, which is the stock price times the conversion price, and (ii) holding onto the 2017, 2020, and 2021 Notes, which is the discounted and probability-weighted value from the three possible outcomes at the future nodes plus any accrued but unpaid coupons that are not considered at the future nodes. If the 2017, 2020, or 2021 Notes are not eligible for early conversion, the value of the conversion option at this node equals to (ii). In the lattice, a credit adjustment was applied to the discount for each cash flow in the model as the embedded conversion option, as well as the coupon and notional payments, is settled with cash instead of shares. To estimate the fair value of the 2020 and 2021 Notes Hedges, we used the Black-Scholes formula combined with credit adjustments, as the option counterparties have credit risk and the call options are cash settled. We assumed that the call options will be exercised at the maturity since our ordinary shares do not pay any dividends and management does not expect to declare dividends in the near term. The following assumptions were used in the fair market valuations of the 2017 Notes Conversion Derivative, 2020 Notes Conversion Derivative, 2020 Notes Hedge, 2021 Notes Conversion Derivative, and 2021 Notes Hedge as of September 25, 2016:
Derivatives not Designated as Hedging Instruments We employ a derivative program using foreign currency forward contracts to mitigate the risk of currency fluctuations on our intercompany receivable and payable balances that are denominated in foreign currencies. These forward contracts are expected to offset the transactional gains and losses on the related intercompany balances. These forward contracts are not designated as hedging instruments under FASB ASC Topic 815. Accordingly, the changes in the fair value and the settlement of the contracts are recognized in the period incurred in the accompanying condensed consolidated statements of operations. At September 25, 2016 and December 27, 2015, we had $0.1 million and $3.6 million in foreign currency contracts outstanding, respectively. As part of our acquisition of WG Healthcare on January 7, 2013, we may be obligated to pay contingent consideration upon the achievement of certain revenue milestones; therefore, we have recorded the estimated fair value of future contingent consideration of approximately $0.6 million as of September 25, 2016 and December 27, 2015. As a result of the acquired sales and distribution business of Surgical Specialties Australia Pty. Ltd in 2015, we had contingent consideration of approximately $1.8 million and $1.5 million as of September 25, 2016 and December 27, 2015, respectively. The fair value of the contingent consideration as of September 25, 2016 and December 27, 2015 was determined using a discounted cash flow model and probability adjusted estimates of the future earnings and is classified in Level 3. Changes in the fair value of contingent consideration are recorded in “Other income, net” in our condensed consolidated statements of operations. On March 1, 2013, as part of our acquisition of BioMimetic Therapeutics, Inc. (BioMimetic), we issued Contingent Value Rights (CVRs) as part of the merger consideration. Each CVR entitles its holder to receive additional cash payments of up to $6.50 per share, which are payable upon receipt of FDA approval of AUGMENT® Bone Graft and upon achieving certain revenue milestones. On September 1, 2015, AUGMENT® Bone Graft received FDA approval and the first of the milestone payments associated with the CVRs was paid out at $3.50 per share, which totaled $98.1 million. The fair value of the CVRs outstanding at September 25, 2016 and December 27, 2015 was $37.3 million and $28.3 million, respectively, and was determined using the closing price of the security in the active market (Level 1). For the three and nine months ended September 25, 2016, the change in the value of the CVRs resulted in expense of $2.3 million and $9.0 million, respectively, which was recorded in “Other income, net” in the condensed consolidated statements of operations. For the three and nine months ended September 30, 2015, the change in the value of the CVRs resulted in expense of $14.6 million and income of $7.3 million, respectively, which was recorded in “Other income, net” in the condensed consolidated statements of operations. The carrying value of cash and cash equivalents, accounts receivable, and accounts payable approximates the fair value of these financial instruments at September 25, 2016 and December 27, 2015 due to their short maturities and variable rates. The following tables summarizes the valuation of our financial instruments (in thousands):
The following is a roll forward of our assets and liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) (in thousands):
|
Property, Plant and Equipment |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, net consists of the following (in thousands):
|
Goodwill and Intangibles |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangibles | Goodwill and Intangible Assets Changes in the carrying amount of goodwill occurring during the nine months ended September 25, 2016, are as follows (in thousands):
During the first nine months of 2016, we revised opening balance accounts receivable; inventory; intangible assets; property, plant and equipment; accrued expenses and other current liabilities; and deferred tax liabilities acquired as part of the Wright/Tornier merger, which resulted in a $13.7 million decrease in the preliminary value of goodwill determined as of December 27, 2015. See Note 3 for additional discussion of these adjustments. During the first quarter of 2016, our management, including our chief executive officer, who is our chief operating decision maker, began managing our operations as four operating segments: U.S. Lower Extremities & Biologics, U.S. Upper Extremities, International Extremities & Biologics, and Large Joints, based on our chief executive officer's review of financial information at the operating segment level to allocate resources and to assess the operating results and financial performance of each segment. Management's change to the way it monitors performance, aligns strategies, and allocates resources resulted in a change in our reportable segments (see Note 14). We have determined that each reportable segment represents a reporting unit and, in accordance with ASC 350, requires an allocation of goodwill to each reporting unit. We allocated $219 million, $559 million, and $79 million of goodwill to the U.S. Lower Extremities & Biologics, U.S. Upper Extremities, and International Extremities & Biologics reportable segments, respectively. As a result of the sale of the Large Joints Business, the $8.5 million and $9.4 million balances of goodwill which was allocated to the Large Joints reportable segment as of September 25, 2016 and December 27, 2015, have been reclassified to assets held for sale within the condensed consolidated balance sheet. The change in segment reporting also required an interim review of potential goodwill impairment which we performed as of February 2016, the segment reorganization date. Upon completion of this analysis, we determined that the fair value of our reporting units, determined primarily by an income approach using projected cash flows, exceeded their carrying values; and therefore, no goodwill was impaired. The components of our identifiable intangible assets, net are as follows (in thousands):
Based on the total finite life intangible assets held at September 25, 2016, we expect amortization expense of approximately $28.9 million in 2016, $26.7 million in 2017, $21.7 million in 2018, $19.9 million in 2019, and $19.3 million in 2020. |
Long-Term Debt and Capital Lease Obligations |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long Term Debt and Capital Lease Obligations | Long-Term Debt and Capital Lease Obligations Long-term debt and capital lease obligations consist of the following (in thousands):
2021 Notes On May 20, 2016, we issued $395 million aggregate principal amount of the 2021 Notes pursuant to an indenture (2021 Notes Indenture), dated as of May 20, 2016, between us and The Bank of New York Mellon Trust Company, N.A., as trustee. The 2021 Notes will pay interest at an annual rate of 2.25% semi-annually in arrears on each May 15 and November 15, beginning on November 15, 2016, and will mature on November 15, 2021 unless earlier converted or repurchased. The 2021 Notes are convertible, subject to certain conditions, solely into cash. The initial conversion rate for the 2021 Notes will be 46.8165 ordinary shares (subject to adjustment as provided in the 2021 Notes Indenture) per $1,000 principal amount of the 2021 Notes (subject to, and in accordance with, the settlement provisions of the 2021 Notes Indenture), which is equal to an initial conversion price of approximately $21.36 per ordinary share. We may not redeem the 2021 Notes prior to the maturity date, and no “sinking fund” is available for the 2021 Notes, which means that we are not required to redeem or retire the 2021 Notes periodically. The holders of the 2021 Notes may convert their 2021 Notes at any time prior to May 15, 2021 solely into cash, in multiples of $1,000 principal amount, upon satisfaction of one or more of the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2016 (and only during such calendar quarter), if the last reported sale price of our ordinary shares for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of 2021 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our ordinary shares and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after May 15, 2021 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2021 Notes solely into cash, regardless of the foregoing circumstances. Upon conversion, a holder will receive an amount in cash, per $1,000 principal amount of the 2021 Notes, equal to the settlement amount as calculated under the 2021 Notes Indenture. If we undergo a fundamental change, as defined in the 2021 Notes Indenture, subject to certain conditions, holders of the 2021 Notes will have the option to require us to repurchase for cash all or a portion of their 2021 Notes at a repurchase price equal to 100% of the principal amount of the 2021 Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date, as defined in the 2021 Notes Indenture. In addition, following certain corporate transactions, we, under certain circumstances, will increase the applicable conversion rate for a holder that elects to convert its 2021 Notes in connection with such corporate transaction. The 2021 Notes are senior unsecured obligations that rank: (i) senior in right of payment to any of our indebtedness that is expressly subordinated in right of payment to the 2021 Notes; (ii) equal in right of payment to any of our unsecured indebtedness that is not so subordinated; (iii) effectively junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and (iv) structurally junior to all indebtedness and other liabilities (including trade payables) of our subsidiaries. As a result of this transaction, we recorded deferred financing charges of approximately $7.3 million, which are being amortized over the term of the 2021 Notes using the effective interest method. The 2021 Notes Conversion Derivative requires bifurcation from the 2021 Notes in accordance with ASC Topic 815, Derivatives and Hedging, and is accounted for as a derivative liability. See Note 6 for additional information regarding the 2021 Notes Conversion Derivative. The fair value of the 2021 Notes Conversion Derivative at the time of issuance of the 2021 Notes was $117.2 million and was recorded as original debt discount for purposes of accounting for the debt component of the 2021 Notes. This discount is amortized as interest expense using the effective interest method over the term of the 2021 Notes. For the three and nine months ended September 25, 2016, we recorded $4.2 million and $5.6 million, respectively, of interest expense related to the amortization of the debt discount based upon an effective rate of 9.72%. The components of the 2021 Notes were as follows (in thousands):
The estimated fair value of the 2021 Notes was approximately $498.2 million at September 25, 2016, based on a quoted price in an active market (Level 1). We entered into 2021 Notes Hedges in connection with the issuance of the 2021 Notes with two counterparties. The 2021 Notes Hedges, which are cash-settled, are generally intended to reduce our exposure to potential cash payments that we would be required to make if holders elect to convert the 2021 Notes at a time when our ordinary share price exceeds the conversion price. However, in connection with certain events, including, among others, (i) a merger or other make-whole fundamental change (as defined in the 2021 Notes Indenture), (ii) certain hedging disruption events, which may include changes in tax laws, an increase in the cost of borrowing our ordinary shares in the market or other material increases in the cost to the option counterparties of hedging the 2021 Note Hedges, (iii) our failure to perform certain obligations under the 2021 Notes Indenture or under the 2021 Notes Hedges, (iv) certain payment defaults on our existing indebtedness in excess of $25 million or (v) if we or any of our significant subsidiaries become insolvent or otherwise becomes subject to bankruptcy proceedings, the option counterparties have the discretion to terminate the 2021 Notes Hedges, which may reduce the effectiveness of the 2021 Notes Hedges. In addition, the option counterparties have broad discretion to make certain adjustments to the 2021 Notes Hedges and warrant transactions upon the occurrence of certain other events, including, among others, (i) any adjustment to the conversion rate of the 2021 Notes, or (ii) upon the announcement of certain significant corporate events, including events that may give rise to a termination event as described above, such as the announcement of a third-party tender offer. Any such adjustment may also reduce the effectiveness of the 2021 Note Hedges. The aggregate cost of the 2021 Notes Hedges was $99.8 million and is accounted for as a derivative asset in accordance with ASC Topic 815. See Note 6 of the condensed consolidated financial statements for additional information regarding the 2021 Notes Hedges and the 2021 Notes Conversion Derivative. We also entered into warrant transactions in which we sold warrants for an aggregate of 18.5 million ordinary shares to the two option counterparties, subject to adjustment, for an aggregate of $54.6 million. The strike price of the warrants is $30.00 per share, which was 69% above the last reported sale price of our ordinary shares on May 12, 2016. The warrants are expected to be net-share settled and exercisable over the 100 trading day period beginning on February 15, 2022. The warrant transactions will have a dilutive effect on our ordinary shares to the extent that the market value per ordinary share during such period exceeds the applicable strike price of the warrants. However, in connection with certain events, these option counterparties have the discretion to make certain adjustments to warrant transactions, which may increase our obligations under the warrant transactions. Aside from the initial payment of the $99.8 million premium in the aggregate to the two option counterparties and subject to the right of the option counterparties to terminate the 2021 Notes Hedges in certain circumstances, we do not expect to be required to make any cash payments to the option counterparties under the 2021 Notes Hedges and expect to be entitled to receive from the option counterparties cash, generally equal to the amount by which the market price per ordinary share exceeds the strike price of the convertible note hedging transactions during the relevant valuation period. The strike price under the 2021 Notes Hedges is initially equal to the conversion price of the 2021 Notes. However, in connection with certain events, these option counterparties have the discretion to make certain adjustments to the 2021 Note Hedges, which may reduce the effectiveness of the 2021 Note Hedges. Additionally, if the market value per ordinary share exceeds the strike price on any settlement date under the warrant transaction, we will generally be obligated to issue to the option counterparties in the aggregate a number of shares equal in value to one percent of the amount by which the then-current market value of one ordinary share exceeds the then-effective strike price of each warrant, multiplied by the number of ordinary shares into which the 2021 Notes are initially convertible. We will not receive any additional proceeds if warrants are exercised. As described in more detail below, concurrently with the issuance and sale of the 2021 Notes, certain holders of the 2017 Notes and the 2020 Notes exchanged their 2017 Notes or 2020 Notes for the 2021 Notes. 2020 Notes On February 13, 2015, WMG issued $632.5 million aggregate principal amount of the 2020 Notes pursuant to an indenture (2020 Notes Indenture), dated as of February 13, 2015 between WMG and The Bank of New York Mellon Trust Company, N.A., as trustee. The 2020 Notes require interest to be paid semi-annually on each February 15 and August 15 at an annual rate of 2.00%, and mature on February 15, 2020 unless earlier converted or repurchased. The 2020 Notes are convertible at the option of the holder, during certain periods and subject to certain conditions described below, solely into cash at an initial conversion rate of 32.3939 shares of WMG common stock per $1,000 principal amount of the 2020 Notes, subject to adjustment upon the occurrence of certain events, which represents an initial conversion price of approximately $30.87 per share of WMG common stock. On November 24, 2015, Wright Medical Group N.V. executed a supplemental indenture, fully and unconditionally guaranteeing, on a senior unsecured basis, WMG’s obligations relating to the 2020 Notes, changing the underlying reference securities from WMG common stock to Wright Medical Group N.V. ordinary shares and making a corresponding adjustment to the conversion price. From and after the effective time of the Wright/Tornier merger, (i) all calculations and other determinations with respect to the 2020 Notes previously based on references to WMG common stock are calculated or determined by reference to our ordinary shares, and (ii) the conversion rate (as defined in the 2020 Notes Indenture) for the 2020 Notes was adjusted to an initial conversion rate of 33.39487 ordinary shares (subject to adjustment as provided in the 2020 Notes Indenture) per $1,000 principal amount of the 2020 Notes, which represents an initial conversion price of approximately $29.94 per ordinary share (subject to, and in accordance with, the settlement provisions of the 2020 Notes Indenture). The 2020 Notes may not be redeemed by WMG prior to the maturity date, and no “sinking fund” is available for the 2020 Notes, which means that WMG is not required to redeem or retire the 2020 Notes periodically. The holders of the 2020 Notes may convert their notes at any time prior to August 15, 2019 solely into cash, in multiples of $1,000 principal amount, upon satisfaction of one or more of the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2015 (and only during such calendar quarter), if the last reported sale price of our ordinary shares for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of 2020 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our ordinary shares and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. The Wright/Tornier merger did not result in a conversion right for holders of the 2020 Notes. On or after August 15, 2019 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2020 Notes solely into cash, regardless of the foregoing circumstances. Upon conversion, a holder will receive an amount in cash, per $1,000 principal amount of the 2020 Notes, equal to the settlement amount as calculated under the 2020 Notes Indenture. If WMG undergoes a fundamental change, as defined in the 2020 Notes Indenture, subject to certain conditions, holders of the 2020 Notes will have the option to require WMG to repurchase for cash all or a portion of their notes at a purchase price equal to 100% of the principal amount of the 2020 Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date, as defined in the 2020 Notes Indenture. In addition, following certain corporate transactions, WMG, under certain circumstances, will increase the applicable conversion rate for a holder that elects to convert its 2020 Notes in connection with such corporate transaction. The 2020 Notes are senior unsecured obligations that rank: (i) senior in right of payment to any of WMG's indebtedness that is expressly subordinated in right of payment to the 2020 Notes; (ii) equal in right of payment to any of WMG's unsecured indebtedness that is not so subordinated; (iii) effectively junior in right of payment to any secured indebtedness to the extent of the value of the assets securing such indebtedness; and (iv) structurally junior to all indebtedness and other liabilities (including trade payables) of WMG's subsidiaries. In conjunction with the issuance of the 2020 Notes, we recorded deferred financing charges of approximately $18 million, which are being amortized over the term of the 2020 Notes using the effective interest method. The 2020 Notes Conversion Derivative requires bifurcation from the 2020 Notes in accordance with ASC Topic 815, Derivatives and Hedging, and is accounted for as a derivative liability. See Note 6 of the condensed consolidated financial statements for additional information regarding the 2020 Notes Conversion Derivative. The fair value of the 2020 Notes Conversion Derivative at the time of issuance of the 2020 Notes was $149.8 million and was recorded as original debt discount for purposes of accounting for the debt component of the 2020 Notes. This discount is amortized as interest expense using the effective interest method over the term of the 2020 Notes. For the three and nine months ended September 25, 2016, we recorded $6.3 million and $19.4 million, respectively, of interest expense related to the amortization of the debt discount based upon an effective rate of 8.54%. For the three and nine months ended September 30, 2015, we recorded $6.1 million and $15.4 million, respectively, of interest expense related to the amortization of the debt discount based upon an effective rate of 8.54%. Concurrently with the issuance and sale of the 2021 Notes, certain holders of the 2020 Notes exchanged approximately $45.0 million aggregate principal amount of their 2020 Notes for the 2021 Notes. For each $1,000 principal amount of 2020 Notes validly submitted for exchange, we delivered $990.00 principal amount of the 2021 Notes (subject to rounding down to the nearest $1,000 principal amount of the 2021 Notes, the difference being referred as the rounded amount) to the investor plus an amount of cash equal to the unpaid interest on the 2020 Notes and the rounded amount. As a result of this note exchange and retirement of $45.0 million aggregate principal amount of the 2020 Notes, we recognized approximately $9.3 million for the write-off of related pro-rata unamortized deferred financing fees and debt discount within “Other income, net” in our condensed consolidated statements of operations during the nine months ended September 25, 2016. The components of the 2020 Notes were as follows (in thousands):
The estimated fair value of the 2020 Notes was approximately $629.0 million at September 25, 2016, based on a quoted price in an active market (Level 1). WMG entered into the 2020 Notes Hedges in connection with the issuance of the 2020 Notes with three option counterparties. See Note 6 of the condensed consolidated financial statements for additional information on the 2020 Notes Hedges. The 2020 Notes Hedges, which are cash-settled, are generally intended to reduce WMG's exposure to potential cash payments that WMG would be required to make if holders elect to convert the 2020 Notes at a time when our ordinary share price exceeds the conversion price. However, in connection with certain events, including, among others, (i) a merger or other make-whole fundamental change (as defined in the 2020 Notes indenture), (ii) certain hedging disruption events, which may include changes in tax laws, an increase in the cost of borrowing our ordinary shares in the market or other material increases in the cost to the option counterparties of hedging the 2020 Note Hedges, (iii) WMG's failure to perform certain obligations under the 2020 Notes Indenture or under the 2020 Notes Hedges, (iv) certain payment defaults on WMG's existing indebtedness in excess of $25 million or (v) if WMG or any of its significant subsidiaries become insolvent or otherwise becomes subject to bankruptcy proceedings, the option counterparties have the discretion to terminate the 2020 Note Hedges at a value determined by them in a commercially reasonable manner and/or adjust the terms of the 2020 Note Hedges, which may reduce the effectiveness of the 2020 Note Hedges. In addition, the option counterparties have broad discretion to make certain adjustments to the 2020 Notes Hedges upon the occurrence of certain other events, including, among others, (i) any adjustment to the conversion rate of the 2020 Notes, or (ii) upon the announcement of certain significant corporate events, including events that may give rise to a termination event as described above, such as the announcement of a third-party tender offer. Any such adjustment may also reduce the effectiveness of the 2020 Note Hedges. The aggregate cost of the 2020 Notes Hedges was $144.8 million and is accounted for as a derivative asset in accordance with ASC Topic 815. See Note 6 of the condensed consolidated financial statements for additional information regarding the 2020 Notes Hedges and the 2020 Notes Conversion Derivative. WMG also entered into warrant transactions in which it sold warrants for an aggregate of 20.5 million shares of WMG common stock to the three option counterparties, subject to adjustment. The strike price of the warrants was initially $40 per share of WMG common stock, which was 59% above the last reported sale price of WMG common stock on February 9, 2015. On November 24, 2015, Wright Medical Group N.V. assumed WMG's obligations pursuant to the warrants. Following the assumption, the warrants became exercisable for 21.1 million Wright Medical Group N.V. ordinary shares and the strike price of the warrants was adjusted to $38.8010 per ordinary share. The warrants are expected to be net-share settled and exercisable over the 200 trading day period beginning on May 15, 2020. The warrant transactions will have a dilutive effect on our ordinary shares to the extent that the market value per ordinary share during such period exceeds the applicable strike price of the warrants. However, in connection with certain events, these option counterparties have the discretion to make certain adjustments to warrant transactions, which may increase our obligations under the warrant transactions. During the three months ended June 26, 2016, we settled a portion of the 2020 Notes Hedges (receiving $3.9 million) and repurchased warrants for an aggregate of 1.5 million ordinary shares (paying $3.3 million) associated with the 2020 Notes. Aside from the initial payment of the $144.8 million premium in the aggregate to the option counterparties, we do not expect to be required to make any cash payments to the option counterparties under the 2020 Notes Hedges and expect to be entitled to receive from the option counterparties cash, generally equal to the amount by which the market price per ordinary share exceeds the strike price of the convertible note hedging transactions during the relevant valuation period. The strike price under the 2020 Notes Hedges is initially equal to the conversion price of the 2020 Notes. However, in connection with certain events, these option counterparties have the discretion to make certain adjustments to the 2020 Note Hedges, which may reduce the effectiveness of the 2020 Note Hedges. Additionally, if the market value per ordinary share exceeds the strike price on any settlement date under the warrant transaction, we will generally be obligated to issue to the option counterparties in the aggregate a number of ordinary shares equal in value to one half of one percent of the amount by which the then-current market value of one ordinary share exceeds the then-effective strike price of each warrant, multiplied by the number of reference ordinary shares into which the 2020 Notes are initially convertible. We will not receive any additional proceeds if warrants are exercised. 2017 Notes On August 31, 2012, WMG issued $300 million aggregate principal amount of the 2017 Notes pursuant to an indenture (2017 Notes Indenture), dated as of August 31, 2012 between WMG and The Bank of New York Mellon Trust Company, N.A., as trustee. The 2017 Notes mature on August 15, 2017, and we pay interest on the 2017 Notes semi-annually on each February 15 and August 15 at an annual rate of 2.00%. WMG may not redeem the 2017 Notes prior to the maturity date, and no “sinking fund” is available for the 2017 Notes, which means that WMG is not required to redeem or retire the 2017 Notes periodically. The 2017 Notes are convertible at the option of the holder, during certain periods and subject to certain conditions as described below, solely into cash at an initial conversion rate of 39.3140 shares per $1,000 principal amount of the 2017 Notes, subject to adjustment upon the occurrence of specified events, which represents an initial conversion price of $25.44 per share. Holders may convert their 2017 Notes at any time prior to February 15, 2017 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending December 31, 2012 (and only during such calendar quarter), if the last reported sale price of our ordinary shares for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our ordinary shares and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. While we currently do not expect significant conversions because the 2017 Notes currently trade at a premium to the as-converted value, and a converting holder would forego future interest payments, any conversions would reduce our cash resources. On or after February 15, 2017 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2017 Notes solely into cash, regardless of the foregoing circumstances. Upon conversion, a holder will receive an amount in cash, per $1,000 principal amount of the 2017 Notes, equal to the settlement amount as calculated under the 2017 Notes Indenture. If we undergo a fundamental change, as defined in the 2017 Notes Indenture, subject to certain conditions, holders of the 2017 Notes will have the option to require WMG to repurchase for cash all or a portion of their 2017 Notes at a purchase price equal to 100% of the principal amount of the 2017 Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date, as defined in the 2017 Notes Indenture. In addition, following certain corporate transactions, WMG, under certain circumstances, will pay a cash make-whole premium by increasing the applicable conversion rate for a holder that elects to convert its 2017 Notes in connection with such corporate transaction. The 2017 Notes are senior unsecured obligations that rank: (i) senior in right of payment to any of WMG's indebtedness that is expressly subordinated in right of payment to the 2017 Notes; (ii) equal in right of payment to any of WMG's unsecured indebtedness that is not so subordinated; (iii) effectively junior in right of payment to any secured indebtedness to the extent of the value of the assets securing such indebtedness; and (iv) structurally junior to all indebtedness and other liabilities (including trade payables) of WMG's subsidiaries. As a result of this transaction, we recognized deferred financing charges of approximately $8.8 million, which are being amortized over the term of the 2017 Notes using the effective interest method. The 2017 Notes Conversion Derivative requires bifurcation from the 2017 Notes in accordance with ASC Topic 815, Derivatives and Hedging, and is accounted for as a derivative liability. See Note 6 of the condensed consolidated financial statements for additional information regarding the 2017 Notes Conversion Derivative. The fair value of the 2017 Notes Conversion Derivative at the time of issuance of the 2017 Notes was $48.1 million and was recorded as original debt discount for purposes of accounting for the debt component of the 2017 Notes. This discount is amortized as interest expense using the effective interest method over the term of the 2017 Notes. For the three and nine months ended September 25, 2016, we recorded $18 thousand and $918 thousand, respectively, of interest expense related to the amortization of the debt discount, respectively, based upon an effective rate of 6.47%. For the three and nine ended September 30, 2015, we recorded $0.5 million and $2.4 million, respectively, of interest expense related to the amortization of the debt discount, respectively, based upon an effective rate of 6.47%. In connection with the issuance of the 2020 Notes, on February 13, 2015, WMG repurchased and extinguished $240 million aggregate principal amount of the 2017 Notes and settled all of the 2017 Notes Hedges (receiving $70 million) and repurchased all of the warrants (paying $60 million) associated with the 2017 Notes. As a result of the repurchase, we recognized approximately $25.1 million for the write-off of related pro-rata unamortized deferred financing fees and debt discount within “Other income, net” in our condensed consolidated statements of operations during the nine months ended September 30, 2015. Concurrently with the issuance and sale of the 2021 Notes, certain holders of the 2017 Notes exchanged approximately $54.4 million aggregate principal amount their 2017 Notes for the 2021 Notes. For each $1,000 principal amount of 2017 Notes validly submitted for exchange, we delivered $1,035.40 principal amount of 2021 Notes (subject to rounding down to the nearest $1,000 principal amount of the 2021 Notes, the difference being referred as the rounded amount) to the investor plus an amount of cash equal to the unpaid interest on the 2017 Notes and the rounded amount. In addition, during the three months ended June 26, 2016, we repurchased and extinguished an additional $3.6 million aggregate principal amount of the 2017 Notes in privately negotiated transactions. As a result of this exchange and these repurchases, we recognized approximately $3.0 million for the write-off of related pro-rata unamortized deferred financing fees and debt discount within “Other income, net” in our condensed consolidated statements of operations during the nine months ended September 25, 2016. The components of the 2017 Notes were as follows (in thousands):
The estimated fair value of the 2017 Notes was approximately $2.1 million at September 25, 2016, based on a quoted price in an active market (Level 1). Mortgages and Shareholder Debt The Company has mortgages and other debt that had an outstanding balance of $3.0 million and $2.7 million at September 25, 2016 and December 27, 2015. The majority of this debt is mortgages that were acquired as a result of the Wright/Tornier merger. These mortgages are secured by an office building in Montbonnot, France and bear fixed annual interest rates of 2.55%-4.9%. The shareholder debt is the result of a 2008 transaction where a 51%-owned and consolidated subsidiary of legacy Tornier borrowed $2.2 million from a then-current member of the legacy Tornier board of directors, who was also a 49% owner of the consolidated subsidiary. This loan was used to partially fund the purchase of real estate in Grenoble, France, to be used as a manufacturing facility. Interest on the debt is variable-based on the three-month Euro Libor rate plus 0.5% and has no stated term. The outstanding balance on this debt was $1.9 million and $2.0 million as of September 25, 2016 and December 27, 2015, respectively. |
Accumulated Other Comprehensive Income (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss), Note | Accumulated Other Comprehensive Income (AOCI) Other comprehensive income (OCI) includes certain gains and losses that under US GAAP are included in comprehensive income but are excluded from net income as these amounts are initially recorded as an adjustment to shareholders’ equity. Amounts in OCI may be reclassified to net income upon the occurrence of certain events. Our 2016 and 2015 OCI is comprised solely of foreign currency translation adjustments. Changes in AOCI for the nine months ended September 25, 2016 and September 30, 2015 were as follows (in thousands):
|
Changes in Stockholders' Equity (Notes) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Stockholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | Changes in Shareholders' Equity The below table provides an analysis of changes in each balance sheet caption of shareholders’ equity for the nine months ended September 25, 2016 and September 30, 2015 (in thousands, except share data):
|
Earnings per share (Notes) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | We are authorized to issue up to 320 million ordinary shares, each share with a par value of three Euro cents (€0.03). We had 103.2 million and 102.7 million ordinary shares issued and outstanding as of September 25, 2016 and December 27, 2015, respectively. As discussed in Note 3, the Wright/Tornier merger completed on October 1, 2015 was accounted for as a “reverse acquisition” under US GAAP. As such, legacy Wright was considered the acquiring entity for accounting purposes; and therefore, legacy Wright’s historical results of operations replaced legacy Tornier’s historical results of operations for all periods prior to the merger. Additionally, each legacy Wright share was converted into the right to receive 1.0309 ordinary shares of the combined company and the par value was revised to reflect the €0.03 par value as compared to the legacy Wright par value of $0.01. These changes resulted in the restatement of the following to conform to the current presentation:
FASB ASC Topic 260, Earnings Per Share, requires the presentation of basic and diluted earnings per share. Basic earnings per share is calculated based on the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share is calculated to include any dilutive effect of our ordinary share equivalents. For the three and nine months ended September 25, 2016, our ordinary share equivalents consisted of stock options, restricted stock units, and warrants. For the three and nine months ended September 30, 2015, our ordinary share equivalents consisted of stock options, non-vested ordinary shares, restricted stock units, and warrants. The dilutive effect of the stock options, non-vested ordinary shares, restricted stock units, and warrants is calculated using the treasury-stock method. Net-share settled warrants on the 2017 Notes, 2020 Notes, and 2021 Notes were anti-dilutive for the three and nine months ended September 25, 2016 and September 30, 2015. We had outstanding options to purchase 10.7 million ordinary shares and 1.4 million restricted stock units at September 25, 2016 and options to purchase 4.3 million ordinary shares and 0.3 million restricted stock units and restricted stock awards at September 30, 2015. None of the options, restricted stock units, or restricted stock awards were included in diluted earnings per share for the three and nine months ended September 25, 2016 and September 30, 2015 because we recorded a net loss for all periods; and therefore, including these instruments would be anti-dilutive. The weighted-average number of ordinary shares outstanding for basic and diluted earnings per share purposes is as follows (in thousands):
|
Commitments and Contingencies (Notes) |
9 Months Ended |
---|---|
Sep. 25, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Legal Contingencies The legal contingencies described in this footnote relate primarily to Wright Medical Technology, Inc. (WMT), an indirect subsidiary of Wright Medical Group N.V., and are not necessarily applicable to Wright Medical Group N.V. or other affiliated entities. Maintaining separate legal entities within our corporate structure is intended to ring-fence liabilities. We believe our ring-fenced structure should preclude corporate veil-piercing efforts against entities whose assets are not associated with particular claims. As described below, our business is subject to various contingencies, including patent and other litigation, product liability claims, and a government inquiry. These contingencies could result in losses, including damages, fines, or penalties, any of which could be substantial, as well as criminal charges. Although such matters are inherently unpredictable, and negative outcomes or verdicts can occur, we believe we have significant defenses in all of them, and are vigorously defending all of them. However, we could incur judgments, pay settlements, or revise our expectations regarding the outcome of any matter. Such developments, if any, could have a material adverse effect on our results of operations in the period in which applicable amounts are accrued, or on our cash flows in the period in which amounts are paid, however, unless otherwise indicated, we do not believe any of them will have a material adverse effect on our financial position. Our legal contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss or the measurement of a loss can be complex. We have accrued for losses that are both probable and reasonably estimable. Unless otherwise indicated, we are unable to estimate the range of reasonably possible loss in excess of amounts accrued. Our assessment process relies on estimates and assumptions that may prove to be incomplete or inaccurate. Unanticipated events and circumstances may occur that could cause us to change our estimates and assumptions. Governmental Inquiries On August 3, 2012, we received a subpoena from the United States Attorney's Office for the Western District of Tennessee requesting records and documentation relating to our PROFEMUR® series of hip replacement devices. The subpoena covers the period from January 1, 2000 to August 2, 2012. We continue to cooperate with the investigation. Patent Litigation In 2011, Howmedica Osteonics Corp. and Stryker Ireland, Ltd. (collectively, Stryker), each a subsidiary of Stryker Corporation, filed a lawsuit against us in the United States District Court for the District of New Jersey alleging that we infringed Stryker's U.S. Patent No. 6,475,243 related to our LINEAGE® Acetabular Cup System and DYNASTY® Acetabular Cup System. The lawsuit seeks an order of infringement, injunctive relief, unspecified damages, and various other costs and relief. On July 9, 2013, the Court issued a claim construction ruling. On November 25, 2014, the Court entered judgment of non-infringement in our favor. On January 7, 2015, Stryker filed a notice of appeal to the Court of Appeals for the Federal Circuit. The Court of Appeals heard oral argument on December 10, 2015 and, on May 12, 2016, upheld the lower court’s decision. Stryker subsequently filed a combined petition for rehearing with the Court of Appeals, which was denied on July 15, 2016. The deadline for filing a petition for a hearing with the United States Supreme Court expired on October 13, 2016; therefore, all appellate avenues are now exhausted. In June 2013, Anglefix, LLC filed suit in the United States District Court for the Western District of Tennessee, alleging that our ORTHOLOC® products infringe Anglefix’s asserted patent. On April 14, 2014, we filed a request for Inter Partes Review (IPR) with the U.S. Patent and Trademark Office. In October 2014, the Court stayed the case pending outcome of the IPR. On June 30, 2015, the Patent Office Board entered judgment in our favor as to all patent claims at issue in the IPR. Following the conclusion of the IPR, the District Court lifted the stay, and we have been continuing with our defense as to remaining patent claims asserted by Anglefix. On June 27, 2016, the Court granted in part our motion for summary judgment on Anglefix’s lack of standing and gave Anglefix 30 days to join the University of North Carolina (UNC) as a co-plaintiff in the lawsuit. On July 25, 2016, Anglefix filed a motion asking the Court to accept a waiver of claims by UNC as a substitute for joining UNC as a co-plaintiff in the lawsuit. The Court denied Anglefix’s motion, but granted leave for additional time to properly join UNC as co-plaintiff. Anglefix moved to add UNC as co-plaintiff on September 15, 2016. We have opposed that motion and oral argument is set for November 3, 2016. On September 23, 2014, Spineology filed a patent infringement lawsuit, Case No. 0:14-cv-03767, in the U.S. District Court in Minnesota, alleging that our X-REAM® bone reamer infringes U.S. Patent No. RE42,757 entitled “EXPANDABLE REAMER.” In January 2015, on the deadline for service of its complaint, Spineology dismissed its complaint without prejudice and filed a new, identical complaint. We filed an answer to the new complaint with the Court on April 27, 2015 and discovery is underway. The Court conducted a Markman hearing on March 23, 2016. Mediation was held on August 11, 2016, but no agreement could be reached. The Court issued a Markman decision on August 30, 2016, in which it found all asserted product claims invalid as indefinite under applicable patent laws and construed several additional claim terms. The case is currently in expert discovery with respect to the remaining asserted method claims. On September 13, 2016, we filed a civil action, Case No. 2:16-cv-02737-JPM, against Spineology in the U.S. District Court for the Western District of Tennessee alleging breach of contract, breach of implied warranty against infringement, and seeking a judicial declaration of indemnification from Spineology for patent infringement claims brought against us stemming from our sale and/or use of certain expandable reamers purchased from Spineology. Spineology filed a motion to dismiss on October 17, 2016. A telephonic scheduling conference has been set for November 17, 2016. On March 1, 2016, Musculoskeletal Transplant Foundation (MTF) filed suit against Solana and WMT in the United States District Court for the District of New Jersey alleging that the TenFUSE PIP product infringes U.S. Patent No. 6,432,436 entitled “Partially Demineralized Cortical Bone Constructs.” On May 25, 2016, we agreed to waive service of MTF’s complaint. We continue to investigate MTF’s allegations and our answer to MTF’s complaint is due on November 7, 2016. Subject to the provisions of the asset purchase agreement with MicroPort for the sale of the OrthoRecon business, we, as between us and MicroPort, will continue to be responsible for defense of pre-existing patent infringement cases relating to the OrthoRecon business, and for resulting liabilities, if any. Product Liability We have received claims for personal injury against us associated with fractures of our PROFEMUR® long titanium modular neck product (PROFEMUR® Claims). As of September 25, 2016 there were 31 pending U.S. lawsuits and 48 pending non-U.S. lawsuits alleging such claims. The overall fracture rate for the product is low and the fractures appear, at least in part, to relate to patient demographics. Beginning in 2009, we began offering a cobalt-chrome version of our PROFEMUR® modular neck, which has greater strength characteristics than the alternative titanium version. Historically, we have reflected our liability for these claims as part of our standard product liability accruals on a case-by-case basis. However, during the quarter ended September 30, 2011, as a result of an increase in the number and monetary amount of these claims, management estimated our liability to patients in North America who have previously required a revision following a fracture of a PROFEMUR® long titanium modular neck, or who may require a revision in the future. Management has estimated that this aggregate liability ranges from approximately $25.8 million to $30.9 million. Any claims associated with this product outside of North America, or for any other products, will be managed as part of our standard product liability accrual methodology on a case-by-case basis. Due to the uncertainty within our aggregate range of loss resulting from the estimation of the number of claims and related monetary payments, we have recorded a liability of $25.8 million, which represents the low-end of our estimated aggregate range of loss. We have classified $12.1 million of this liability as current in “Accrued expenses and other current liabilities,” as we expect to pay such claims within the next twelve months, and $13.7 million as non-current in “Other liabilities” on our consolidated balance sheet. We expect to pay the majority of these claims within the next three years. We are aware that MicroPort has recalled certain sizes of its cobalt chrome modular neck products as a result of alleged fractures. As of September 25, 2016, there were two pending U.S. lawsuits and five pending non-U.S. lawsuits against us alleging personal injury resulting from the fracture of a cobalt chrome modular neck. These claims will be managed as part of our standard product liability accrual methodology on a case-by-case basis. We have maintained product liability insurance coverage on a claims-made basis. During the quarter ended March 31, 2013, we received a customary reservation of rights from our primary product liability insurance carrier asserting that present and future claims related to fractures of our PROFEMUR® titanium modular neck hip products and which allege certain types of injury (Titanium Modular Neck Claims) would be covered as a single occurrence under the policy year the first such claim was asserted. The effect of this coverage position would be to place Titanium Modular Neck Claims into a single prior policy year in which applicable claims-made coverage was available, subject to the overall policy limits then in effect. Management agrees with the assertion that the Titanium Modular Neck Claims should be treated as a single occurrence, but notified the carrier that it disputed the carrier's selection of available policy years. During the second quarter of 2013, we received confirmation from the primary carrier confirming their agreement with our policy year determination. Based on our insurer's treatment of Titanium Modular Neck Claims as a single occurrence, we increased our estimate of the total probable insurance recovery related to Titanium Modular Neck Claims by $19.4 million, and recognized such additional recovery as a reduction to our selling, general and administrative expenses for the three months ended March 31, 2013, within results of discontinued operations. In the quarter ended June 30, 2013, we received payment from the primary insurance carrier of $5 million. In the quarter ended September 30, 2013, we received payment of $10 million from the next insurance carrier in the tower. We have requested, but not yet received, payment of the remaining $25 million from the third insurance carrier in the tower for that policy period. The policies with the second and third carrier in this tower are “follow form” policies and management believes the third carrier should follow the coverage position taken by the primary and secondary carriers. On September 29, 2015, that third carrier asserted that the terms and conditions identified in its reservation of rights will preclude coverage for the Titanium Modular Neck Claims. We strongly dispute the carrier's position and, in accordance with the dispute resolution provisions of the policy, have initiated an arbitration proceeding in London, England seeking payment of these funds. Pursuant to applicable accounting standards, we reduced our insurance receivable balance for this claim to $0, and recorded a $25 million charge within "Net loss from discontinued operations" during the year ended December 27, 2015. The arbitration proceeding is ongoing. Claims for personal injury have also been made against us associated with our metal-on-metal hip products (primarily our CONSERVE® product line). The pre-trial management of certain of these claims has been consolidated in the federal court system, in the United States District Court for the Northern District of Georgia under multi-district litigation (MDL) and certain other claims by the Judicial Counsel Coordinated Proceedings (JCCP) in state court in Los Angeles County, California (collectively the Consolidated Metal-on-Metal Claims). As of September 25, 2016, there were approximately 1,200 lawsuits pending in the MDL and JCCP, and an additional 30 cases pending in various state courts. As of that date, we have also entered into approximately 950 so called "tolling agreements" with potential claimants who have not yet filed suit. Based on presently available information, we believe at least 350 of these lawsuits allege claims involving bilateral implants. As of September 25, 2016, there were also 50 non-U.S. lawsuits pending. We believe we have data that supports the efficacy and safety of our metal-on-metal hip products. While continuing to dispute liability, we have participated in court supervised non-binding mediation in the MDL and expect to begin similar mediation in the JCCP. Every metal-on-metal hip case involves fundamental issues of law, science and medicine that often are uncertain, that continue to evolve, and which present contested facts and issues that can differ significantly from case to case. Such contested facts and issues include medical causation, individual patient characteristics, surgery specific factors, statutes of limitation, and the existence of actual, provable injury. The first bellwether trial in the MDL commenced on November 9, 2015 in Atlanta, Georgia. On November 24, 2015, the jury returned a verdict in favor of the plaintiff and awarded the plaintiff $1 million in compensatory damages and $10 million in punitive damages. We believe there were significant trial irregularities and vigorously contested the trial result. On December 28, 2015, we filed a post-trial motion for judgment as a matter of law or, in the alternative, for a new trial or a reduction of damages awarded. On April 5, 2016, the trial judge issued an order reducing the punitive damage award from $10 million to $1.1 million, but otherwise denied our motion. On May 4, 2016, we filed a notice of appeal with the United States Court of Appeals for the Eleventh Circuit. Our appeal is pending. In light of the trial judge’s April 5th order, we recorded an accrual for this verdict in the amount of $2.1 million within “Accrued expenses and other current liabilities,” and a $2.1 million receivable associated with the probable recovery from product liability insurance is reflected within “Other current assets.” The first bellwether trial in the JCCP, which was scheduled to commence on October 31, 2016, has been rescheduled to January 9, 2017. The parties are currently in an expert discovery and pre-trial procedure phase. The first state court metal-on-metal hip trial not part of the MDL or JCCP commenced on October 24, 2016, in St. Louis, Missouri. As of November 3, 2016, that trial is in process and is being vigorously defended by WMT. On November 1, 2016, WMT entered into a Master Settlement Agreement (MSA) with Court-appointed attorneys representing plaintiffs in the MDL and JCCP. Under the terms of the MSA, the parties agreed to settle 1,292 specifically identified claims associated with CONSERVE®, DYNASTY® and LINEAGE® products that meet the eligibility requirements of the MSA and are either pending in the MDL or JCCP, or subject to court-approved tolling agreements in the MDL or JCCP, for a settlement amount of $240 million. The $240 million settlement amount is a maximum settlement based on the pool of 1,292 specific, existing claims comprised of an identified mix of CONSERVE®, DYNASTY® and LINEAGE® products (Initial Settlement Pool), with a value assigned to each product type, resulting in a total settlement of $240 million for the 1,292 claims in the Initial Settlement Pool. The actual settlement may be less, depending on several factors including the mix of products and claimants in the final settlement pool (Final Settlement Pool) and the number of claimants electing to “opt-out” of the settlement. Actual settlements paid to individual claimants will be determined under the claims administration procedures contained in the MSA and may be more or less than the amounts used to calculate the $240 million settlement for the 1,292 claims in the Initial Settlement Pool. However in no event will variations in actual settlement amounts payable to individual claimants affect WMT’s maximum settlement obligation of $240 million or the manner in which it may be reduced due to opt outs, final product mix, or elimination of ineligible claims. If it is determined a claim in the Initial Settlement Pool is ineligible due to failure to meet the eligibility criteria of the MSA, such claim will be removed and, where possible, replaced with a new eligible claim involving the same product, with the goal of having the number and mix of claims in the Final Settlement Pool (before opt-outs) equal, as nearly as possible, the number and mix of claims in the Initial Settlement Pool. Additionally, if any DYNASTY® or LINEAGE® claims in the Final Settlement Pool are determined to have been misidentified as CONSERVE® claims, or vice versa, the total settlement amount will be adjusted based on the value for each product type (not to exceed $240 million). The MSA contains specific eligibility requirements and establishes procedures for proof and administration of claims, negotiation and execution of individual settlement agreements, determination of the final total settlement amount, and funding of individual settlement amounts by WMT. Eligibility requirements include, without limitation, that the claimant has a claim pending or tolled in the MDL or JCCP, that the claimant has undergone a revision surgery within eight years of the original implantation surgery, and that the claim has not been identified by WMT as having possible statute of limitation issues. Claimants who have had bilateral revision surgeries will be counted as two claims but only to the extent both claims separately satisfy all eligibility criteria. The MSA includes a 95% opt-in requirement, meaning the MSA may be terminated by WMT prior to any settlement disbursement if claimants holding greater than 5% of eligible claims in the Final Settlement Pool elect to “opt-out” of the settlement. WMT, in its sole discretion, may waive this 95% opt-in requirement. No funding of any individual plaintiff settlement will occur until the 95% opt-in requirement has been satisfied or waived. WMT has agreed to escrow $150 million to secure its obligations under the MSA. The escrow fund will be returned to WMT if the MSA is terminated due to failure to meet the 95% opt-in requirement. As additional security, Wright Medical Group N.V., the indirect parent company of WMT, agreed to guaranty WMT’s obligations under the MSA. The MSA was entered into solely as a compromise of the disputed claims being settled and is not evidence that any claim has merit nor is it an admission of wrongdoing or liability by WMT. WMT will continue to vigorously defend metal-on-metal hip claims not settled pursuant to the MSA. As of September 25, 2016, we estimate there were approximately 600 outstanding metal-on-metal hip revision claims that would not be included in the MSA settlement, including approximately 200 claims with an implant duration of more than eight years, approximately 300 claims subject to possible statute of limitations preclusion, approximately 30 claims pending in U.S courts other than the MDL and JCCP, approximately 50 claims pending in non-U.S. courts, and approximately 20 claims that would be eligible for inclusion in the settlement but for the participation limitations contained in the MSA. We also estimate that there were approximately 700 outstanding metal-on-metal hip non-revision claims as of September 25, 2016. These non-revision cases are excluded from the MSA. As of September 25, 2016, our accrual for metal-on-metal claims totaled $250.9 million, of which $242.7 million is included in our condensed consolidated balance sheet within “Accrued expenses and other current liabilities” and $8.2 million is included within “Other liabilities.” Our accrual is based on (i) case by case accruals for specific cases where facts and circumstances warrant, including the $2.1 million accrual associated with the MDL bellwether verdict, and (ii) the implied settlement values for eligible claims under the MSA (assuming, in the absence of opt-in data, a 100% opt-in rate). We are unable to reasonably estimate the high-end of a possible range of loss for claims which may in the future elect to opt-out of the MSA settlement. Claims we can confirm would meet MSA eligibility criteria but are excluded from settlement due to the $240 million maximum settlement cap, or because they are state cases not part of the MDL or JCCP, have been accrued as though included in the settlement. Due to the general uncertainties surrounding all metal-on metal claims as noted above, as well as insufficient information about individual claims, we are presently unable to reasonably estimate a range of loss for revision claims that (i) do not meet MSA eligibility criteria, or (ii) are future claims; hence we have not accrued for these claims at the present time. However, we believe the high-end of a possible range of loss for existing revision claims that do not meet MSA eligibility criteria will not, on an average per case basis, exceed the average per case accrual we have taken for revision claims we can confirm do meet MSA eligibility criteria. Future claims will be evaluated for accrual on a case by case basis using the accrual methodologies described above (which could change if future facts and circumstances warrant). We have maintained product liability insurance coverage on a claims-made basis. During the quarter ended September 30, 2012, we received a customary reservation of rights from our primary product liability insurance carrier asserting that certain present and future claims which allege certain types of injury related to our CONSERVE® metal-on-metal hip products (CONSERVE® Claims) would be covered as a single occurrence under the policy year the first such claim was asserted. The effect of this coverage position would be to place CONSERVE® Claims into a single prior policy year in which applicable claims-made coverage was available, subject to the overall policy limits then in effect. Management agrees that there is insurance coverage for the CONSERVE® Claims, but has notified the carrier that it disputes the carrier's characterization of the CONSERVE® Claims as a single occurrence. In June 2014, St. Paul Surplus Lines Insurance Company (Travelers), which was an excess carrier in our coverage towers across multiple policy years, filed a declaratory judgment action in Tennessee state court naming us and certain of our other insurance carriers as defendants and asking the court to rule on the rights and responsibilities of the parties with regard to the CONSERVE® Claims. Among other things, Travelers appears to dispute our contention that the CONSERVE® Claims arise out of more than a single occurrence thereby triggering multiple policy periods of coverage. Travelers further seeks a determination as to the applicable policy period triggered by the alleged single occurrence. We filed a separate lawsuit in state court in California for declaratory judgment against certain carriers and breach of contract against the primary carrier, and have moved to dismiss or stay the Tennessee action on a number of grounds, including that California is the most appropriate jurisdiction. During the third quarter of 2014, the California Court granted Travelers' motion to stay our California action. On April 29, 2016, we filed a dispositive motion seeking partial judgment in our favor in the Tennessee action. On June 10, 2016, Travelers withdrew its motion for summary judgment in the Tennessee action. On October 28, 2016, WMT and Wright Medical Group, Inc. (Wright Entities), entered into a Settlement Agreement, Indemnity and Hold Harmless Agreement and Policy Buyback Agreement (Insurance Settlement Agreement) with a subgroup of three insurance carriers, namely Columbia Casualty Company, Travelers and AXIS Surplus Lines Insurance Company (collectively, the Three Settling Insurers), pursuant to which the Three Settling Insurers agreed to pay WMT an aggregate of $60 million (in addition to $10 million previously paid by Columbia) in a lump sum on or before the 30th business day after execution of the Insurance Settlement Agreement. This amount will be in full satisfaction of all potential liability of the Three Settling Insurers relating to metal-on-metal hip and similar metal ion release claims, including but not limited to all claims in the MDL and the JCCP, and all claims asserted by WMT against the Three Settling Insurers in the Tennessee action described above. As part of the settlement, the Three Settling Insurers will buy back from WMT their policies in the five policy years beginning with the August 15, 2007- August 15, 2008 policy year (Repurchased Policy Years). Consequently, the Wright Entities will have no further coverage from the Three Settling Insurers for any present or future claims falling in the Repurchased Policy Years, or any other period in which a released claim is asserted. Additionally, the Insurance Settlement Agreement contains a so-called most favored nation provision which could require us to refund a pro rata portion of the settlement amount if we voluntarily enter into a settlement with the remaining carriers in the Repurchased Policy Years on certain terms more favorable than analogous terms in the Insurance Settlement Agreement. The Tennessee action will continue as to the remaining defendant insurers other than the Three Settling Insurers. Management has recorded an insurance receivable of $68.7 million for the probable recovery of spending in excess of our retention for a single occurrence and for the anticipated proceeds from the settlement with the Three Settling Insurers described above. As of September 25, 2016, we have received $11.7 million of insurance proceeds, and our insurance carriers have paid a total of $4.6 million directly to claimants in connection with various settlements, which represents amounts undisputed by the carriers. Our acceptance of these proceeds was not a waiver of any other claim we may have against the insurance carriers. However, the amount we ultimately receive will depend on the outcome of our dispute with the remaining carriers (other than the Three Settling Carriers) concerning the number of policy years available. We believe our contracts with the insurance carriers are enforceable for these claims; and, therefore, we believe it is probable we will receive additional recoveries from the remaining carriers. Settlement discussions with the remaining insurance carriers continue. Given the substantial or indeterminate amounts sought in these matters, and the inherent unpredictability of such matters, an adverse outcome in these matters in excess of the amounts included in our accrual for contingencies could have a material adverse effect on our financial condition, results of operations and cash flow. Future revisions to our estimates of these provisions could materially impact our results of operations and financial position. We use the best information available to determine the level of accrued product liabilities, and believe our accruals are adequate. In June 2015, a jury returned a $4.4 million verdict against us in a case involving a fractured hip implant stem sold prior to the MicroPort closing. This was a one-of-a-kind case unrelated to the modular neck fracture cases we have been reporting. There are no other cases pending related to this component, nor are we aware of other instances where this component has fractured. In September 2015, the trial judge reduced the jury verdict to $1.025 million and indicated that if the plaintiff did not accept the reduced award he would schedule a new trial solely on the issue of damages. The plaintiff elected not to accept the reduced damage award, and both parties have appealed. The Court has not set a date for a new trial on the issue of damages and we do not expect it will do so until the appeals are adjudicated. We will maintain our current $4.4 million accrual as a probable liability until the matter is resolved. The $4.4 million probable liability associated with this matter is reflected within “Accrued expenses and other current liabilities,” and a $4 million receivable associated with the probable recovery from product liability insurance is reflected within “Other current assets.” Other In addition to those noted above, we are subject to various other legal proceedings, product liability claims, corporate governance, and other matters which arise in the ordinary course of business. |
Segment Data |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Data | Segment Information During the first quarter of 2016, our management, including our Chief Executive Officer, who is our chief operating decision maker, began managing our operations as four operating business segments: U.S. Lower Extremities & Biologics, U.S. Upper Extremities, International Extremities & Biologics, and Large Joints. We determined that each of these operating segments represented a reportable segment. Our Chief Executive Officer reviews financial information at the operating segment level to allocate resources and to assess the operating results and performance of each segment. As a result of the classification of the Large Joints Business as a discontinued operation during the second quarter of 2016, the Large Joints reportable segment is presented in our condensed consolidated statements of operations as discontinued operations and is not included in segment results for all periods presented. See Note 4 of the condensed consolidated financial statements for additional information regarding this divestiture. U.S. Lower Extremities & Biologics, U.S. Upper Extremities, and International Extremities & Biologics are our remaining three reportable segments as of September 25, 2016. Our U.S. Lower Extremities & Biologics segment consists of our operations focused on the sale in the U.S. of our lower extremities products, such as joint implants and bone fixation devices for the foot and ankle and our biologics products used to support treatment of damaged or diseased bone, tendons, and soft tissues or to stimulate bone growth. Our U.S. Upper Extremities segment consists of our operations focused on the sale in the U.S. of our upper extremities products, such as joint implants and bone fixation devices for the shoulder, elbow, wrist, and hand and products used across several anatomic sites to mechanically repair tissue-to-tissue or tissue-to-bone injuries and other ancillary products. Our International Extremities and Biologics segment consists of our operations focused on the sale outside the U.S. of all lower and upper extremities products, including associated biologics products. Management measures segment profitability using an internal operating performance measure that excludes the impact of inventory step-up amortization and due diligence, transaction and transition costs associated with acquisitions, as such items are not considered representative of segment results. Management's change to the way it monitors performance, aligns strategies, and allocates resources results in a change in our reportable segments and a change in reporting units for goodwill impairment measurement purposes. We have determined that each reportable segment represents a reporting unit and, in accordance with ASC 350, requires an allocation of goodwill to each reporting unit. As of September 25, 2016, we have allocated $219 million, $559 million, and $79 million of goodwill to the U.S. Lower Extremities & Biologics, U.S. Upper Extremities, and International Extremities & Biologics reportable segments, respectively. Selected financial information related to our segments is presented below for the three months ended September 25, 2016 and September 30, 2015 (in thousands):
Selected financial information related to our segments is presented below for the nine months ended September 25, 2016 and September 30, 2015 (in thousands):
Our principal geographic regions consist of the United States, EMEA (which includes Europe, the Middle East and Africa), and Other (which principally represents Asia, Australia, Canada, and Latin America). Net sales attributed to each geographic region are based on the location in which the products were sold. Net sales by geographic region are as follows (in thousands):
Assets in the U.S. Upper Extremities, U.S. Lower Extremities & Biologics, and International Extremities & Biologics segments are those assets used exclusively in the operations of each business segment or allocated when used jointly. Assets in the Corporate category are principally cash and cash equivalents, derivative assets, property, plant and equipment associated with our corporate headquarters, assets associated with discontinued operations, product liability insurance receivables, and assets associated with income taxes. Total assets by business segment as of September 25, 2016 and December 27, 2015 are as follows (in thousands):
|
Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
---|---|
Sep. 25, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation. The unaudited condensed consolidated interim financial statements of Wright Medical Group N.V. have been prepared in accordance with US GAAP for interim financial statements and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to these rules and regulations. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with our consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 27, 2015, as filed with the U.S. Securities and Exchange Commission (SEC) on February 23, 2016. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments necessary for a fair presentation of our interim financial results. All such adjustments are of a normal and recurring nature. The results of operations for any interim period are not indicative of results for the full fiscal year. The accompanying unaudited condensed consolidated interim financial statements include our accounts and those of our domestic and international subsidiaries, all of which are wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. |
Shipping and Handling Costs Policy | Shipping and Handling Costs. We incur shipping and handling costs associated with the shipment of goods to customers, independent distributors, and our subsidiaries. Amounts billed to customers for shipping and handling of products are included in net sales. Costs incurred related to shipping and handling of products to customers are included in selling, general and administrative expenses. These amounts totaled $5.2 million and $12.7 million for the three and nine months ended September 25, 2016, respectively, and $1.9 million and $6.0 million for the three and nine months ended September 30, 2015, respectively. All other shipping and handling costs are included in cost of sales. |
Revenue Recognition Policy | Recent Accounting Pronouncements. On May 28, 2014 and August 12, 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09 and 2015-14, Revenue from Contracts with Customers, respectively, which supersede virtually all existing revenue recognition guidance under US GAAP. The ASU provides a five-step model for revenue recognition that companies will apply to recognize revenue in a manner that reflects the timing of the transfer of services to customers and that the amount of revenue recognized reflects the consideration that a company expects to receive for the goods and services provided. The ASU will be effective for us beginning in fiscal year 2018. We are in the initial phases of our adoption plans and; accordingly, we are unable to estimate any effect this may have on our financial statements. |
Debt, Policy [Policy Text Block] | On April 7, 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, as part of its simplification initiative. The ASU changes the presentation of debt issuance costs in financial statements to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. Further, on August 16, 2015, the FASB issued ASU 2015-15 Presentation and Subsequent Measurement of Debt Issuance Costs Associated With Line-of-Credit Arrangements to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements given the lack of guidance on this topic in ASU 2015-03. The SEC staff has announced that it would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. We adopted this guidance during the first quarter of 2016 on a retrospective basis. Accordingly, we reclassified debt issuance costs on our December 27, 2015 consolidated balance sheet, which decreased other assets and long-term debt by $16.2 million |
Business Combinations Policy [Policy Text Block] | On September 25, 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments to simplify the accounting for measurement-period adjustments. The ASU, which is part of the FASB’s simplification initiative, was issued in response to stakeholder feedback that restatements of prior periods to reflect adjustments made to provisional amounts recognized in a business combination increase the cost and complexity of financial reporting but do not significantly improve the usefulness of the information. Under this ASU, an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined and must present these amounts separately on the face of the income statement or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. We adopted ASU 2015-16 in the first quarter of 2016 and have recognized adjustments to provisional amounts in the period they were determined as discussed in Note 3. |
Lease, Policy [Policy Text Block] | On February 25, 2016, the FASB issued ASU 2016-02, Leases, which introduces a lessee model that brings most leases on the balance sheet. The new standard also aligns many of the underlying principles of the new lessor model with those in FASB Accounting Standards Codification (ASC) 606, the FASB’s new revenue recognition standard (e.g., those related to evaluating when profit can be recognized). Furthermore, the ASU addresses other concerns related to the current leases model. The ASU will be effective for us beginning in fiscal year 2019. We are in the initial phases of our adoption plans and; accordingly, we are unable to estimate any effect this may have on our financial statements. |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation. The unaudited condensed consolidated interim financial statements of Wright Medical Group N.V. have been prepared in accordance with US GAAP for interim financial statements and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to these rules and regulations. Accordingly, these unaudited condensed consolidated interim financial statements should be read in conjunction with our consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 27, 2015, as filed with the U.S. Securities and Exchange Commission (SEC) on February 23, 2016. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments necessary for a fair presentation of our interim financial results. All such adjustments are of a normal and recurring nature. The results of operations for any interim period are not indicative of results for the full fiscal year. The accompanying unaudited condensed consolidated interim financial statements include our accounts and those of our domestic and international subsidiaries, all of which are wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the dates of the financial statements and the amounts of revenues and expenses during the reporting periods. Actual amounts realized or paid could differ from those estimates. Reclassifications. Certain prior period amounts on the balance sheet and the statement of cash flows have been reclassified to conform to the current period presentation. Discontinued Operations. On October 21, 2016, pursuant to the previously disclosed binding offer letter, dated as of July 8, 2016, Tornier SAS (Tornier France), Corin Orthopaedics Holdings Limited (Corin), and certain other entities related to Tornier France and Corin entered into a business sale agreement (Sale Agreement) and simultaneously completed and closed the sale of our business operations operating under the large joints operating segment. Pursuant to the terms of the Sale Agreement, Tornier France sold substantially all of our assets related to our hip and knee, or large joints, business (the Large Joints Business) to Corin for approximately €29.7 million in cash, less approximately €10.6 million for net working capital adjustments and subject to certain other closing adjustments. All historical operating results for the Large Joints Business are reflected within discontinued operations in the unaudited condensed consolidated statements of operations. Further, all assets and associated liabilities transferred to Corin were classified as assets and liabilities held for sale on our condensed consolidated balance sheets for all periods presented. See Note 4 for further discussion of discontinued operations. Other than the discontinued operations discussed in Note 4, unless otherwise stated, all discussion of assets and liabilities in these notes to the condensed consolidated financial statements reflects the assets and liabilities held and used in our continuing operations, and all discussion of revenues and expenses reflects those associated with our continuing operations. Shipping and Handling Costs. We incur shipping and handling costs associated with the shipment of goods to customers, independent distributors, and our subsidiaries. Amounts billed to customers for shipping and handling of products are included in net sales. Costs incurred related to shipping and handling of products to customers are included in selling, general and administrative expenses. These amounts totaled $5.2 million and $12.7 million for the three and nine months ended September 25, 2016, respectively, and $1.9 million and $6.0 million for the three and nine months ended September 30, 2015, respectively. All other shipping and handling costs are included in cost of sales. Recent Accounting Pronouncements. On May 28, 2014 and August 12, 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09 and 2015-14, Revenue from Contracts with Customers, respectively, which supersede virtually all existing revenue recognition guidance under US GAAP. The ASU provides a five-step model for revenue recognition that companies will apply to recognize revenue in a manner that reflects the timing of the transfer of services to customers and that the amount of revenue recognized reflects the consideration that a company expects to receive for the goods and services provided. The ASU will be effective for us beginning in fiscal year 2018. We are in the initial phases of our adoption plans and; accordingly, we are unable to estimate any effect this may have on our financial statements. On April 7, 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, as part of its simplification initiative. The ASU changes the presentation of debt issuance costs in financial statements to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. Further, on August 16, 2015, the FASB issued ASU 2015-15 Presentation and Subsequent Measurement of Debt Issuance Costs Associated With Line-of-Credit Arrangements to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements given the lack of guidance on this topic in ASU 2015-03. The SEC staff has announced that it would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement. We adopted this guidance during the first quarter of 2016 on a retrospective basis. Accordingly, we reclassified debt issuance costs on our December 27, 2015 consolidated balance sheet, which decreased other assets and long-term debt by $16.2 million. On September 25, 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments to simplify the accounting for measurement-period adjustments. The ASU, which is part of the FASB’s simplification initiative, was issued in response to stakeholder feedback that restatements of prior periods to reflect adjustments made to provisional amounts recognized in a business combination increase the cost and complexity of financial reporting but do not significantly improve the usefulness of the information. Under this ASU, an acquirer must recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined and must present these amounts separately on the face of the income statement or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. We adopted ASU 2015-16 in the first quarter of 2016 and have recognized adjustments to provisional amounts in the period they were determined as discussed in Note 3. On February 25, 2016, the FASB issued ASU 2016-02, Leases, which introduces a lessee model that brings most leases on the balance sheet. The new standard also aligns many of the underlying principles of the new lessor model with those in FASB Accounting Standards Codification (ASC) 606, the FASB’s new revenue recognition standard (e.g., those related to evaluating when profit can be recognized). Furthermore, the ASU addresses other concerns related to the current leases model. The ASU will be effective for us beginning in fiscal year 2019. We are in the initial phases of our adoption plans and; accordingly, we are unable to estimate any effect this may have on our financial statements. On August 26, 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, which amends the guidance in ASC 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of the ASU is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. The ASU’s amendments add or clarify guidance on eight cash flow issues, including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, and proceeds from the settlement of insurance claims. The guidance in the ASU is effective for us beginning in 2018 with early adoption permitted. We are in the initial phases of our adoption plans and; accordingly, we are unable to estimate any effect this may have on our financial statements. |
Derivatives and Fair Value of Financial Instruments (Policies) |
9 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||
Fair Value Measurement, Policy [Policy Text Block] | We account for derivatives in accordance with FASB ASC 815, which establishes accounting and reporting standards requiring that derivative instruments be recorded on the balance sheet as either an asset or liability measured at fair value. Additionally, changes in the derivatives' fair value shall be recognized currently in earnings unless specific hedge accounting criteria are met. FASB ASC Section 820, Fair Value Measurements and Disclosures requires fair value measurements be classified and disclosed in one of the following three categories:
|
Earnings per share (Policies) |
9 Months Ended |
---|---|
Sep. 25, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Abstract] | FASB ASC Topic 260, Earnings Per Share, requires the presentation of basic and diluted earnings per share. Basic earnings per share is calculated based on the weighted-average number of ordinary shares outstanding during the period. Diluted earnings per share is calculated to include any dilutive effect of our ordinary share equivalents. For the three and nine months ended September 25, 2016, our ordinary share equivalents consisted of stock options, restricted stock units, and warrants. For the three and nine months ended September 30, 2015, our ordinary share equivalents consisted of stock options, non-vested ordinary shares, restricted stock units, and warrants. The dilutive effect of the stock options, non-vested ordinary shares, restricted stock units, and warrants is calculated using the treasury-stock method. |
Acquisitions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Noncash or Part Noncash Acquisitions [Table Text Block] | The calculation of the purchase consideration is as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following presents the allocation of the purchase consideration to the assets acquired and liabilities assumed on October 1, 2015 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | The following pro forma combined financial information (in thousands) summarizes the results of operations for the periods indicated as if the Wright/Tornier merger had been completed as of January 1, 2015.
|
Discontinued Operations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Large Joints Business [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following table summarizes the results of discontinued operations for the Large Joints Business (in thousands, except per share data):
The following table summarizes the assets and liabilities held for sale (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OrthoRecon Business [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following table summarizes the results of discontinued operations for the OrthoRecon business (in thousands, except per share data):
|
Inventories (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consist of the following (in thousands):
|
Derivatives and Fair Value of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Financial Instruments [Table Text Block] | The following tables summarizes the valuation of our financial instruments (in thousands):
The following is a roll forward of our assets and liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | The following assumptions were used in the fair market valuations of the 2017 Notes Conversion Derivative, 2020 Notes Conversion Derivative, 2020 Notes Hedge, 2021 Notes Conversion Derivative, and 2021 Notes Hedge as of September 25, 2016:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 Derivatives [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Assets at Fair Value [Table Text Block] | The following table summarizes the fair value and the presentation in the condensed consolidated balance sheet (in thousands) of the 2021 Notes Hedges and 2021 Notes Conversion Derivative:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | The following table summarizes the net (loss)/gain on changes in fair value (in thousands) related to the 2021 Notes Hedges and 2021 Notes Conversion Derivative:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 Derivatives [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Assets at Fair Value [Table Text Block] | The following table summarizes the fair value and the presentation in the condensed consolidated balance sheet (in thousands) of the 2017 Notes Conversion Derivative:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | The following table summarizes the net (loss)/gain on changes in fair value (in thousands) related to the 2017 Notes Hedges and 2017 Notes Conversion Derivative:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Derivatives [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Assets at Fair Value [Table Text Block] | The following table summarizes the fair value and the presentation in the condensed consolidated balance sheet (in thousands) of the 2020 Notes Hedges and 2020 Notes Conversion Derivative:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | The following table summarizes the net gain on changes in fair value (in thousands) related to the 2020 Notes Hedges and 2020 Notes Conversion Derivative:
|
Property, Plant and Equipment (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | Property, plant and equipment, net consists of the following (in thousands):
|
Goodwill and Intangibles (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the Carrying Amount of Goodwill Table | Changes in the carrying amount of goodwill occurring during the nine months ended September 25, 2016, are as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Identifiable Assets Table | The components of our identifiable intangible assets, net are as follows (in thousands):
|
Long-Term Debt and Capital Lease Obligations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of 2021 Convertible Debt [Table Text Block] | The components of the 2021 Notes were as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of 2017 Convertible Debt [Table Text Block] | The components of the 2017 Notes were as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of 2020 Convertible Debt [Table Text Block] | The components of the 2020 Notes were as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Long-term debt and capital lease obligations consist of the following (in thousands):
|
Accumulated Other Comprehensive Income (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in AOCI for the nine months ended September 25, 2016 and September 30, 2015 were as follows (in thousands):
|
Changes in Stockholders' Equity (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Stockholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders Equity [Table Text Block] | The below table provides an analysis of changes in each balance sheet caption of shareholders’ equity for the nine months ended September 25, 2016 and September 30, 2015 (in thousands, except share data):
|
Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding for Basic and Diluted Earnings Per Share | The weighted-average number of ordinary shares outstanding for basic and diluted earnings per share purposes is as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Antidilutive Potential Common Shares Resulting from Reasons Other Than Net Loss Incurred Excluded from the Diluted Earnings Per Share Computation | We had outstanding options to purchase 10.7 million ordinary shares and 1.4 million restricted stock units at September 25, 2016 and options to purchase 4.3 million ordinary shares and 0.3 million restricted stock units and restricted stock awards at September 30, 2015. None of the options, restricted stock units, or restricted stock awards were included in diluted earnings per share for the three and nine months ended September 25, 2016 and September 30, 2015 because we recorded a net loss for all periods; and therefore, including these instruments would be anti-dilutive. The weighted-average number of ordinary shares outstanding for basic and diluted earnings per share purposes is as follows (in thousands):
|
Segment Data (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Selected financial information related to our segments is presented below for the three months ended September 25, 2016 and September 30, 2015 (in thousands):
Selected financial information related to our segments is presented below for the nine months ended September 25, 2016 and September 30, 2015 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales and Operating Income by Product Line and Information by Geographic Region | Net sales by geographic region are as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | Total assets by business segment as of September 25, 2016 and December 27, 2015 are as follows (in thousands):
|
Organization and Description of Business (Details) |
Sep. 25, 2016 |
Oct. 01, 2015 |
---|---|---|
Business Acquisition [Line Items] | ||
Number of countries in which entity operates | 50 | |
Wright Medical Group, Inc. [Member] | Tornier N.V. [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 52.00% | |
Tornier N.V. [Member] | Tornier N.V. [Member] | ||
Business Acquisition [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 48.00% |
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Oct. 21, 2016 |
Jan. 09, 2014 |
Sep. 25, 2016 |
Sep. 30, 2015 |
Sep. 25, 2016 |
Sep. 30, 2015 |
Dec. 27, 2015 |
|
Purchase Price Discontinued Operations [Line Items] | |||||||
Shipping, Handling and Transportation Costs | $ 5.2 | $ 1.9 | $ 12.7 | $ 6.0 | |||
Unamortized Debt Issuance Expense | $ 16.2 | ||||||
Purchase Price Discontinued Operations | $ 283.0 | ||||||
Large Joints [Member] | |||||||
Purchase Price Discontinued Operations [Line Items] | |||||||
Net Working Capital Not Transferred in Disposal | $ 10.6 | ||||||
Purchase Price Discontinued Operations | $ 29.7 |
Acquisitions (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 21, 2016 |
Oct. 01, 2015 |
Sep. 30, 2015 |
Jan. 09, 2014 |
Sep. 25, 2016 |
Jun. 26, 2016 |
Mar. 27, 2016 |
Sep. 30, 2015 |
Jun. 26, 2016 |
Sep. 25, 2016 |
Sep. 30, 2015 |
Dec. 27, 2015 |
|
Business Acquisition [Line Items] | ||||||||||||
Sales Revenue, Goods, Net | $ 157,332 | $ 80,139 | $ 497,339 | $ 238,493 | ||||||||
Goodwill, Purchase Accounting Adjustments | $ 600 | (13,668) | ||||||||||
Business Acquisitions, Purchase Price Allocation, Year of Acquisition, Net Effect on Income | $ 100 | $ 300 | 400 | |||||||||
Goodwill | 855,800 | 855,800 | $ 866,989 | |||||||||
Amortization of intangible assets | 7,466 | 2,562 | 21,407 | 7,741 | ||||||||
Allowance for Doubtful Accounts Receivable, Recoveries | $ 10,100 | |||||||||||
Business Combination, Acquisition Related Costs, Transition Costs | 6,532 | 19,887 | 24,425 | 43,040 | ||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 2,300 | (14,600) | 8,968 | (7,290) | ||||||||
Purchase Price Discontinued Operations | $ 283,000 | |||||||||||
Tornier N.V. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Sales Revenue, Goods, Net | 157,332 | 497,339 | ||||||||||
Common Stock, Conversion Features | 1.0309 | |||||||||||
Business Acquisition, Pro Forma Revenue | 144,795 | 444,978 | ||||||||||
Business Acquisition, Purchase Price Allocation, Current Assets, Cash and Cash Equivalents (Deprecated 2013-01-31) | $ 30,117 | |||||||||||
Accounts receivable | 63,797 | |||||||||||
Business Acquisition, Purchase Price Allocation, Current Assets, Inventory (Deprecated 2013-01-31) | 138,659 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 9,256 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 8,658 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 122,927 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 213,600 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | (31,878) | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 366,924 | |||||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 66,900 | 222,300 | ||||||||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 17,000 | 27,000 | ||||||||||
Business Combination, Consideration Transferred | 1,034,235 | |||||||||||
Business Acquisition, Pro Forma Net Income (Loss) | (43,648) | (89,380) | (110,828) | (217,653) | ||||||||
Common Stock, Call or Exercise Features | 21.02 | |||||||||||
Deferred income taxes | 1,399 | |||||||||||
Total assets acquired | 588,413 | |||||||||||
Current liabilities | (101,623) | |||||||||||
Long-term debt | (79,554) | |||||||||||
Other non-current liabilities | (8,434) | |||||||||||
Total liabilities assumed | (221,489) | |||||||||||
Goodwill | 667,311 | |||||||||||
WG Healthcare [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Contingent Consideration Fair Value | 600 | |||||||||||
Customer Relationships [Member] | Tornier N.V. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 99,900 | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 20 years | |||||||||||
Technology-Based Intangible Assets [Member] | Tornier N.V. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 89,500 | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||||||||||
In Process Research and Development [Member] | Tornier N.V. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 15,900 | |||||||||||
Trade Names [Member] | Tornier N.V. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 8,300 | |||||||||||
Finite-Lived Intangible Asset, Useful Life | 2 years 7 months 6 days | |||||||||||
Acquisition-related Costs [Member] | Tornier N.V. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | $ 3,300 | $ 6,800 | ||||||||||
Collectibility of Receivables [Member] | Tornier N.V. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Acquired Receivables, Fair Value | $ 73,900 | |||||||||||
Tornier Stock Option Holders [Member] | Tornier N.V. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Consideration Transferred | 21,000 | |||||||||||
Tornier share award holders [Member] | Tornier N.V. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Consideration Transferred | 8,000 | |||||||||||
Tornier Shareholders [Member] | Tornier N.V. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Consideration Transferred | $ 1,005,000 | |||||||||||
Large Joints [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill | 8,466 | $ 8,466 | $ 9,355 | |||||||||
Purchase Price Discontinued Operations | $ 29,700 | |||||||||||
Net Working Capital Not Transferred in Disposal | $ 10,600 | |||||||||||
Finite and Indefinite Lived Intangible Assets | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill, Purchase Accounting Adjustments | 9,400 | |||||||||||
Net Working Capital [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill, Purchase Accounting Adjustments | 2,100 | $ 500 | ||||||||||
Property, Plant and Equipment [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill, Purchase Accounting Adjustments | 200 | |||||||||||
Other Noncurrent Liabilities [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill, Purchase Accounting Adjustments | $ 4,700 |
Discontinued Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 21, 2016 |
Jan. 09, 2014 |
Sep. 25, 2016 |
Jun. 26, 2016 |
Sep. 30, 2015 |
Sep. 30, 2013 |
Sep. 25, 2016 |
Sep. 30, 2015 |
Dec. 31, 2014 |
Dec. 27, 2015 |
|||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||
Product Liability Accrual, Period Expense | $ 188,732 | $ 0 | ||||||||||||||||||
Loss Contingency, Receivable, Period Increase (Decrease) | 0 | 25,000 | ||||||||||||||||||
Purchase Price Discontinued Operations | $ 283,000 | |||||||||||||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 24,300 | |||||||||||||||||||
Impairment of Long-Lived Assets to be Disposed of | (21,876) | 0 | ||||||||||||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | $ 0 | 0 | ||||||||||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ (57,436) | $ (36,211) | $ (252,571) | $ (46,720) | ||||||||||||||||
Weighted-average number of shares outstanding-basic (in shares) | 103,072 | [1] | 52,750 | [2] | 102,854 | [1] | 52,607 | [2] | ||||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 103,072 | [1],[3] | 52,750 | [2],[3] | 102,854 | [1] | 52,607 | [2] | ||||||||||||
Goodwill | $ 855,800 | $ 855,800 | $ 866,989 | |||||||||||||||||
Large Joints Business [Member] | ||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||
Disposal Group, Including Discontinued Operation, Inventory | 13,836 | 13,836 | 18,408 | |||||||||||||||||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 3,000 | |||||||||||||||||||
Disposal Group, Including Discontinued Operation, Revenue | 7,320 | 29,220 | ||||||||||||||||||
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | 4,348 | 15,708 | ||||||||||||||||||
Disposal Group, Including Discontinued Operation, General and Administrative Expense | 4,897 | 15,069 | ||||||||||||||||||
Disposal Group, Including Discontinued Operation, Other Expense | 396 | 1,630 | ||||||||||||||||||
Discontinued Operation, Income (Loss) from Discontiuned Operation Before Impairment Loss and Income Taxes | (2,321) | (3,187) | ||||||||||||||||||
Impairment of Long-Lived Assets to be Disposed of | 0 | $ (21,876) | 21,876 | $ 0 | ||||||||||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | (2,321) | (25,063) | ||||||||||||||||||
Discontinued Operation, Tax Effect of Discontinued Operation | (759) | (5,529) | ||||||||||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ (1,562) | $ (19,534) | ||||||||||||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Per Basic Share | $ (0.02) | $ (0.19) | ||||||||||||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Per Diluted Share | $ (0.02) | $ (0.19) | ||||||||||||||||||
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets | $ 81 | $ 81 | 79 | |||||||||||||||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 15,060 | 15,060 | 16,513 | |||||||||||||||||
Disposal Group, Including Discontinued Operation, Goodwill | 8,466 | 8,466 | ||||||||||||||||||
Disposal Group, Including Discontinued Operation, Intangible Assets | 6,238 | 6,238 | 5,815 | |||||||||||||||||
Disposal Group, Including Discontinued Operation, Assets | 50,170 | |||||||||||||||||||
Disposal Group, Including Discontinued Operation, Other Liabilities, Current | 2,049 | 2,049 | 2,692 | |||||||||||||||||
Disposal Group, Including Discontinued Operation, Liabilities | 2,049 | 2,049 | 2,692 | |||||||||||||||||
OrthoRecon Business [Member] | ||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||
Product Liability Accrual, Period Expense | $ 38,700 | |||||||||||||||||||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 29,700 | $ 20,000 | ||||||||||||||||||
Disposal Group, Including Discontinued Operation, Revenue | 0 | $ 0 | 0 | 0 | ||||||||||||||||
Disposal Group, Including Discontinued Operation, General and Administrative Expense | 55,874 | 36,211 | 233,037 | 46,720 | ||||||||||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | (55,874) | (36,211) | (233,037) | (46,720) | ||||||||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ (55,874) | $ (36,211) | $ (233,037) | $ (46,720) | ||||||||||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Per Basic Share | $ (0.54) | $ (0.68) | $ (2.27) | $ (0.89) | ||||||||||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Per Diluted Share | $ (0.54) | $ (0.68) | $ (2.27) | $ (0.89) | ||||||||||||||||
Large Joints [Member] | ||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||
Purchase Price Discontinued Operations | $ 29,700 | |||||||||||||||||||
Goodwill | $ 8,466 | $ 8,466 | 9,355 | |||||||||||||||||
Disposal Group, Including Discontinued Operation, Assets | $ 21,805 | $ 21,805 | $ 50,170 | |||||||||||||||||
Net Working Capital Not Transferred in Disposal | $ 10,600 | |||||||||||||||||||
PROFEMUR Titanium Modular Neck Product [Member] | ||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||
Loss Contingency, Receivable, Period Increase (Decrease) | $ 25,000 | |||||||||||||||||||
|
Inventories (Details) - USD ($) $ in Thousands |
Sep. 25, 2016 |
Dec. 27, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Inventory, Raw Materials, Net of Reserves | $ 19,792 | $ 18,057 |
Inventory, Work in Process, Net of Reserves | 25,004 | 27,946 |
Inventory, Finished Goods, Net of Reserves | 126,023 | 164,698 |
Total Inventory | $ 170,819 | $ 210,701 |
Derivatives and Fair Value of Financial Instruments (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
May 20, 2016 |
Feb. 13, 2015 |
Sep. 25, 2016 |
Sep. 30, 2015 |
Sep. 25, 2016 |
Sep. 30, 2015 |
Dec. 27, 2015 |
|
Schedule of Marketable Securities [Line Items] | |||||||
Cash and Cash Equivalents, Fair Value Disclosure | $ 314,314,000 | $ 314,314,000 | $ 139,804,000 | ||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 2,300,000 | $ (14,600,000) | 8,968,000 | $ (7,290,000) | |||
2017 Notes Conversion Derivative [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 247,000 | 247,000 | 10,440,000 | ||||
Fair Value, Measurements, Recurring [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Total Assets | 567,110,000 | 567,110,000 | 267,562,000 | ||||
Total Liabilities | 297,724,000 | 297,724,000 | 170,197,000 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Total Assets | 314,314,000 | 314,314,000 | 139,804,000 | ||||
Total Liabilities | 37,279,000 | 37,279,000 | 28,310,000 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | 0 | ||||
Total Assets | 0 | 0 | 0 | ||||
Total Liabilities | 0 | 0 | 0 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 | 0 | ||||
Total Assets | 252,796,000 | 252,796,000 | 127,758,000 | ||||
Total Liabilities | 260,445,000 | 260,445,000 | 141,887,000 | ||||
Contingent Consideration [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Contingent Consideration Fair Value | 2,640,000 | 2,640,000 | 2,340,000 | ||||
Contingent Consideration [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Contingent Consideration Fair Value | 0 | 0 | 0 | ||||
Contingent Consideration [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Contingent Consideration Fair Value | 0 | 0 | 0 | ||||
Contingent Consideration [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Contingent Consideration Fair Value | 2,640,000 | 2,640,000 | 2,340,000 | ||||
Contingent Value Rights [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Contingent Consideration Fair Value | 37,279,000 | 37,279,000 | 28,310,000 | ||||
Contingent Value Rights [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Contingent Consideration Fair Value | 37,279,000 | 37,279,000 | 28,310,000 | ||||
Contingent Value Rights [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Contingent Consideration Fair Value | 0 | 0 | 0 | ||||
Contingent Value Rights [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Contingent Consideration Fair Value | 0 | 0 | 0 | ||||
2021 Notes Hedges [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 169,488,000 | 169,488,000 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 69,671,000 | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Currency | 0 | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 99,817,000 | ||||||
2021 Notes Hedges [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 169,488,000 | 169,488,000 | |||||
2020 Notes Hedges [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 83,308,000 | 83,308,000 | 127,758,000 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (40,558,000) | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Currency | 0 | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | (3,892,000) | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | ||||||
2020 Notes Hedges [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 83,308,000 | 83,308,000 | 127,758,000 | ||||
2020 Notes Hedges [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 127,758,000 | ||||||
2020 Notes Hedges [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | 0 | ||||
2020 Notes Hedges [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 | 0 | ||||
2021 Conversion Derivative [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Currency | 0 | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 172,702,000 | 172,702,000 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | (117,224,000) | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | (55,478,000) | ||||||
2021 Conversion Derivative [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 172,702,000 | 172,702,000 | |||||
2020 Conversion Derivative [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Currency | 0 | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | $ 400,000 | (450,000) | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 84,856,000 | 84,856,000 | 129,107,000 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | 0 | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 44,701,000 | ||||||
2020 Conversion Derivative [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 84,856,000 | 84,856,000 | 129,107,000 | ||||
2020 Conversion Derivative [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 129,107,000 | ||||||
Contingent Consideration [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Currency | (42,000) | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 297,000 | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 2,640,000 | 2,640,000 | 2,340,000 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | (555,000) | ||||||
2017 Notes Conversion Derivative [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Currency | 0 | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | $ 49,000,000 | 2,069,000 | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | 247,000 | 247,000 | 10,440,000 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | 0 | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3 | 0 | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 8,124,000 | ||||||
2017 Notes Conversion Derivative [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 10,440,000 | ||||||
2017 Notes Conversion Derivative [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | 0 | ||||
2017 Notes Conversion Derivative [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | 0 | ||||
2017 Notes Conversion Derivative [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Derivative Liability, Fair Value, Gross Liability | 10,440,000 | ||||||
WG Healthcare [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Contingent Consideration Fair Value | 600,000 | ||||||
SSP - Distribution Business [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Contingent Consideration Fair Value | 1,800,000 | 1,800,000 | 1,500,000 | ||||
SSP - Distribution Business [Member] | Contingent Consideration [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | 0 | ||||||
2017 Convertible Debt [Member] | |||||||
Schedule of Marketable Securities [Line Items] | |||||||
Long-term Debt, Gross | $ 2,026,000 | $ 2,026,000 | $ 60,000,000 |
Derivatives and Fair Value of Financial Instruments Derivatives (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
May 20, 2016 |
Sep. 01, 2015 |
Feb. 13, 2015 |
Sep. 25, 2016 |
Sep. 30, 2015 |
Mar. 31, 2015 |
Mar. 31, 2012 |
Sep. 25, 2016 |
Sep. 30, 2015 |
Dec. 27, 2015 |
Aug. 31, 2012 |
|
Derivatives, Fair Value [Line Items] | |||||||||||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | $ 100,000 | $ 100,000 | $ 3,600,000 | ||||||||
Payments for (Proceeds from) Hedge, Financing Activities | $ 56,200,000 | ||||||||||
Non Cash Adjustment Derivative Fair Value | 26,460,000 | $ 12,022,000 | |||||||||
Payments for Repurchase of Warrants | 3,319,000 | 59,803,000 | |||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 2,300,000 | $ (14,600,000) | 8,968,000 | (7,290,000) | |||||||
Proceeds from Hedge, Financing Activities | 3,892,000 | 69,764,000 | |||||||||
2020 Notes Hedges [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Derivative, Gain (Loss) on Derivative, Net | $ 49,887,000 | (21,512,000) | (40,558,000) | (42,617,000) | |||||||
2020 Conversion Derivative [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value Assumptions, Expected Volatility Rate | 33.34% | ||||||||||
Debt Instrument, Unamortized Discount | $ 149,800,000 | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | $ (45,421,000) | 21,757,000 | 44,701,000 | 46,169,000 | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | $ 4,000,000 | ||||||||||
2021 Notes Hedges [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Derivative, Gain (Loss) on Derivative, Net | 85,182,000 | 69,671,000 | |||||||||
2017 Notes Hedges [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | 0 | 0 | (10,236,000) | |||||||
2017 Notes Conversion Derivative [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value Assumptions, Expected Volatility Rate | 35.12% | ||||||||||
Debt Instrument, Unamortized Discount | $ 48,100,000 | ||||||||||
Derivative Liability, Fair Value, Gross Liability | $ 247,000 | 247,000 | 10,440,000 | ||||||||
Derivative, Gain (Loss) on Derivative, Net | $ (186,000) | 4,407,000 | 8,124,000 | 18,705,000 | |||||||
Repayments of Debt | $ 240,000,000 | 4,000,000 | |||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 70,000,000 | ||||||||||
2021 Conversion Derivative [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value Assumptions, Expected Volatility Rate | 36.63% | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | $ (86,275,000) | (55,478,000) | |||||||||
2020 convertibledebt [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | ||||||||||
Debt Instrument, Unamortized Discount | 100,226,000 | 100,226,000 | 127,953,000 | ||||||||
Extinguishment of Debt, Amount | 45,000,000 | ||||||||||
Repayments of Debt | 45,000,000 | ||||||||||
Payments for Repurchase of Warrants | 3,300,000 | ||||||||||
Proceeds from Hedge, Financing Activities | $ 600,000 | ||||||||||
2017 Convertible Debt [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Long-term Debt, Gross | 2,026,000 | 2,026,000 | 60,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | ||||||||||
Debt Instrument, Unamortized Discount | 66,000 | 66,000 | (3,495,000) | ||||||||
Extinguishment of Debt, Amount | 54,400,000 | ||||||||||
Repayments of Debt | $ 292,000,000 | 56,000,000 | |||||||||
Debt Instrument, Periodic Payment, Interest | 2,400,000 | ||||||||||
Payments for Repurchase of Warrants | $ 60,000,000 | ||||||||||
Proceeds from Hedge, Financing Activities | 10,000,000 | ||||||||||
2021 Convertible Debt [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | ||||||||||
Debt Instrument, Unamortized Discount | $ 117,200,000 | 111,702,000 | 111,702,000 | ||||||||
2017 Change in Derivative Fair Value [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Non Cash Adjustment Derivative Fair Value | 186,000 | (4,407,000) | (8,124,000) | (8,469,000) | |||||||
2020 Change in Derivative Fair Value [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Non Cash Adjustment Derivative Fair Value | (4,466,000) | $ (245,000) | (4,143,000) | $ (3,552,000) | |||||||
2021 Change in Derivative fair Value [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Non Cash Adjustment Derivative Fair Value | $ 1,093,000 | (14,193,000) | |||||||||
Wright Medical Group, Inc. [Member] | 2020 Notes Hedges [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value Assumptions, Expected Volatility Rate | 33.34% | ||||||||||
Wright Medical Group, Inc. [Member] | 2020 Conversion Derivative [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value Inputs, Entity Credit Risk | 3.26% | ||||||||||
Wright Medical Group, Inc. [Member] | 2021 Notes Hedges [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value Assumptions, Expected Volatility Rate | 36.63% | ||||||||||
Wright Medical Group, Inc. [Member] | 2017 Notes Conversion Derivative [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value Inputs, Entity Credit Risk | 10.35% | ||||||||||
Wright Medical Group, Inc. [Member] | 2021 Conversion Derivative [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value Inputs, Entity Credit Risk | 4.11% | ||||||||||
DEUTSCHE BANK SUPER X [Member] | 2020 Notes Hedges [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value Inputs, Entity Credit Risk | 1.96% | ||||||||||
WELLS FARGO LIQUIDITY CROSS ATS [Member] | 2020 Notes Hedges [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value Inputs, Entity Credit Risk | 0.34% | ||||||||||
JP Morgan Chase Bank [Member] | 2020 Notes Hedges [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value Inputs, Entity Credit Risk | 0.38% | ||||||||||
JP Morgan Chase Bank [Member] | 2021 Notes Hedges [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value Inputs, Entity Credit Risk | 0.61% | ||||||||||
Bank of America [Member] | 2021 Notes Hedges [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value Inputs, Entity Credit Risk | 0.78% | ||||||||||
Reported Value Measurement [Member] | 2020 convertibledebt [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Long-term Debt, Gross | 632,500,000 | $ 587,500,000 | 587,500,000 | 632,500,000 | |||||||
Reported Value Measurement [Member] | 2017 Convertible Debt [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Long-term Debt, Gross | $ 300,000,000 | ||||||||||
Reported Value Measurement [Member] | 2021 Convertible Debt [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Long-term Debt, Gross | 395,000,000 | ||||||||||
BMTI Payment of Conditional Value Rights [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Price per share of contingent consideration | $ 3.50 | ||||||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 98,100,000 | ||||||||||
Contingent Consideration [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Contingent Consideration Fair Value | 2,640,000 | 2,640,000 | 2,340,000 | ||||||||
Contingent Consideration [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Contingent Consideration Fair Value | 0 | 0 | 0 | ||||||||
Contingent Consideration [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Contingent Consideration Fair Value | 2,640,000 | 2,640,000 | 2,340,000 | ||||||||
Contingent Value Rights [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Contingent Consideration Fair Value | 37,279,000 | 37,279,000 | 28,310,000 | ||||||||
Contingent Value Rights [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Contingent Consideration Fair Value | 37,279,000 | 37,279,000 | 28,310,000 | ||||||||
Contingent Value Rights [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Contingent Consideration Fair Value | 0 | 0 | 0 | ||||||||
WG Healthcare [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Contingent Consideration Fair Value | 600,000 | ||||||||||
SSP - Distribution Business [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Contingent Consideration Fair Value | 1,800,000 | 1,800,000 | 1,500,000 | ||||||||
2020 Conversion Derivative [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 400,000 | (450,000) | |||||||||
2020 Conversion Derivative [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Derivative Liability, Fair Value, Gross Liability | 84,856,000 | 84,856,000 | 129,107,000 | ||||||||
2020 Conversion Derivative [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Derivative Liability, Fair Value, Gross Liability | 129,107,000 | ||||||||||
2017 Notes Conversion Derivative [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | $ 49,000,000 | 2,069,000 | |||||||||
2017 Notes Conversion Derivative [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Derivative Liability, Fair Value, Gross Liability | 10,440,000 | ||||||||||
2017 Notes Conversion Derivative [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | 0 | ||||||||
2017 Notes Conversion Derivative [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Derivative Liability, Fair Value, Gross Liability | 10,440,000 | ||||||||||
2020 Notes Hedges [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | (3,892,000) | ||||||||||
2020 Notes Hedges [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Derivative Asset, Fair Value, Gross Asset | 83,308,000 | 83,308,000 | 127,758,000 | ||||||||
2020 Notes Hedges [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Derivative Asset, Fair Value, Gross Asset | 127,758,000 | ||||||||||
2020 Notes Hedges [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Derivative Asset, Fair Value, Gross Asset | $ 0 | $ 0 | $ 0 | ||||||||
2021 Convertible Debt [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Derivative, Cost of Hedge | 99,800,000 | ||||||||||
Debt Exchange [Member] | 2017 Notes Conversion Derivative [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 1,900,000 | ||||||||||
Debt Repayment [Member] | 2017 Notes Conversion Derivative [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | $ 100,000 |
Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
Sep. 25, 2016 |
Dec. 27, 2015 |
---|---|---|
Property, Plant and Equipment, Net [Abstract] | ||
Property, plant and equipment, at cost | $ 364,034 | $ 331,416 |
Less: Accumulated depreciation | (152,938) | (107,160) |
Property, plant and equipment, net | $ 211,096 | $ 224,256 |
Goodwill and Intangibles (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2015 |
Mar. 27, 2016 |
Sep. 25, 2016 |
Dec. 27, 2015 |
|
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Total intangibles | $ 299,103 | $ 280,957 | ||
Less: Accumulated amortization | 51,332 | 30,029 | ||
Intangible assets, net | 247,771 | 250,928 | ||
Goodwill [Roll Forward] | ||||
Goodwill at December 31, 2012 | $ 866,989 | 866,989 | ||
Goodwill, Purchase Accounting Adjustments | 600 | (13,668) | ||
Foreign currency translation | 2,479 | |||
Goodwill at December 31, 2013 | 855,800 | |||
Future amortization [Abstract] | ||||
2014 | 28,900 | |||
2015 | 26,700 | |||
2016 | 21,700 | |||
2017 | 19,900 | |||
2018 | 19,300 | |||
Finite-Lived Intangible Assets [Member] | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Definite life intangibles, Cost | 283,580 | 265,667 | ||
Less: Accumulated amortization | 51,332 | 30,029 | ||
Finite-Lived Intangible Assets [Member] | Distribution channels [Member] | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Definite life intangibles, Cost | 900 | 250 | ||
Less: Accumulated amortization | 302 | 219 | ||
Finite-Lived Intangible Assets [Member] | Completed technology [Member] | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Definite life intangibles, Cost | 124,904 | 122,604 | ||
Less: Accumulated amortization | 23,907 | 14,828 | ||
Finite-Lived Intangible Assets [Member] | Licenses [Member] | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Definite life intangibles, Cost | 4,868 | 4,868 | ||
Less: Accumulated amortization | 1,015 | 703 | ||
Finite-Lived Intangible Assets [Member] | Customer Relationships [Member] | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Definite life intangibles, Cost | 126,351 | 115,457 | ||
Less: Accumulated amortization | 13,523 | 7,918 | ||
Finite-Lived Intangible Assets [Member] | Trademarks [Member] | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Definite life intangibles, Cost | 14,032 | 14,440 | ||
Less: Accumulated amortization | 5,997 | 3,393 | ||
Finite-Lived Intangible Assets [Member] | Noncompete Agreements [Member] | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Definite life intangibles, Cost | 11,969 | 7,521 | ||
Less: Accumulated amortization | 6,372 | 2,917 | ||
Finite-Lived Intangible Assets [Member] | Other [Member] | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Definite life intangibles, Cost | 556 | 527 | ||
Less: Accumulated amortization | 216 | 51 | ||
Indefinite-Lived Intangible Assets [Member] | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Indefinite life intangibles | 15,523 | 15,290 | ||
Indefinite-Lived Intangible Assets [Member] | Completed technology [Member] | ||||
Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
Indefinite life intangibles | 15,523 | $ 15,290 | ||
Tornier N.V. [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Acquired During Period | $ 667,311 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | 1,399 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 213,600 | |||
Lower Extremities & Biologics [Member] | UNITED STATES | ||||
Goodwill [Roll Forward] | ||||
Goodwill at December 31, 2012 | 221,327 | 221,327 | ||
Goodwill, Purchase Accounting Adjustments | (2,802) | |||
Foreign currency translation | 0 | |||
Goodwill at December 31, 2013 | 218,525 | |||
Upper Extremities [Member] | UNITED STATES | ||||
Goodwill [Roll Forward] | ||||
Goodwill at December 31, 2012 | 555,312 | 555,312 | ||
Goodwill, Purchase Accounting Adjustments | 3,357 | |||
Foreign currency translation | 0 | |||
Goodwill at December 31, 2013 | 558,669 | |||
Large Joints [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill at December 31, 2012 | 9,355 | 9,355 | ||
Goodwill at December 31, 2013 | 8,466 | |||
International [Member] | Extremities & Biologics [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill at December 31, 2012 | $ 90,350 | 90,350 | ||
Goodwill, Purchase Accounting Adjustments | (14,223) | |||
Foreign currency translation | 2,479 | |||
Goodwill at December 31, 2013 | $ 78,606 |
Goodwill and Intangibles Narrative (Details) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Mar. 27, 2016 |
Sep. 25, 2016 |
Dec. 27, 2015 |
|
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Purchase Accounting Adjustments | $ 600 | $ (13,668) | |
Goodwill | 855,800 | $ 866,989 | |
Large Joints [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 8,466 | 9,355 | |
Lower Extremities & Biologics [Member] | UNITED STATES | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill, Purchase Accounting Adjustments | (2,802) | ||
Goodwill | $ 218,525 | $ 221,327 |
Long-Term Debt and Capital Lease Obligations (Details) $ / shares in Units, shares in Millions |
3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
May 20, 2016
USD ($)
$ / shares
shares
|
Nov. 24, 2015
$ / shares
|
Feb. 13, 2015
USD ($)
$ / shares
shares
|
Aug. 31, 2008 |
Sep. 25, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Mar. 31, 2015
USD ($)
|
Mar. 31, 2012
USD ($)
|
Sep. 25, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Dec. 27, 2015
USD ($)
|
Oct. 01, 2015
$ / shares
|
Sep. 30, 2012
USD ($)
|
Aug. 31, 2012
USD ($)
$ / shares
|
Dec. 31, 2008
USD ($)
|
Jul. 29, 2008 |
|||||||||||||
Debt and Capital Lease Obligations [Abstract] | ||||||||||||||||||||||||||||
Debt and capital lease obligations | $ 773,450,000 | $ 773,450,000 | $ 563,372,000 | |||||||||||||||||||||||||
Mortgage Loans on Real Estate, Carrying Amount of Mortgages | 3,008,000 | 3,008,000 | 2,740,000 | |||||||||||||||||||||||||
Less: current portion | (4,117,000) | (4,117,000) | (2,171,000) | |||||||||||||||||||||||||
Long-term debt and capital lease obligations | 769,333,000 | 769,333,000 | 561,201,000 | [1] | ||||||||||||||||||||||||
Write off of pro-rata unamortized deferred financing fees and for bank and legal fees | 12,343,000 | $ 24,746,000 | ||||||||||||||||||||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||||||||
Amortization of Debt Discount (Premium) | 5,600,000 | |||||||||||||||||||||||||||
Payments for Repurchase of Warrants | 3,319,000 | 59,803,000 | ||||||||||||||||||||||||||
Payments for (Proceeds from) Hedge, Financing Activities | $ 56,200,000 | |||||||||||||||||||||||||||
Unamortized Debt Issuance Expense | 16,200,000 | |||||||||||||||||||||||||||
Proceeds from Issuance of Warrants | 54,629,000 | 86,400,000 | ||||||||||||||||||||||||||
2020 convertibledebt [Member] | ||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | ||||||||||||||||||||||||||||
Debt and capital lease obligations | [2] | 475,100,000 | 475,100,000 | 489,006,000 | [3] | |||||||||||||||||||||||
Stated percentage rate | 2.00% | |||||||||||||||||||||||||||
Maturity date | Feb. 15, 2020 | |||||||||||||||||||||||||||
Write off of pro-rata unamortized deferred financing fees and for bank and legal fees | 9,300,000 | |||||||||||||||||||||||||||
Debt instrument, convertible, conversion ratio | 33.3949 | 32.3939 | ||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 29.94 | $ 30.87 | ||||||||||||||||||||||||||
wmgi_ThresholdForConversionAsPercentOfConversionPrice | 130.00% | |||||||||||||||||||||||||||
Debt instrument, convertible, minimum consecutive period | 20 days | |||||||||||||||||||||||||||
Debt instrument, convertible, trading period | 30 days | |||||||||||||||||||||||||||
Debt instrument, convertible, purchase price as a percent of principal amount if fundamental change event occurs | 100.00% | |||||||||||||||||||||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||||||||
Amortization of Debt Discount (Premium) | $ 6,300,000 | $ 6,100,000 | $ 19,400,000 | $ 15,400,000 | ||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.54% | 8.54% | 8.54% | 8.54% | ||||||||||||||||||||||||
Extinguishment of Debt, Amount | $ 45,000,000 | |||||||||||||||||||||||||||
Repayments of Debt | 45,000,000 | |||||||||||||||||||||||||||
Payments for Repurchase of Warrants | $ 3,300,000 | |||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | $ (100,226,000) | (100,226,000) | (127,953,000) | |||||||||||||||||||||||||
Unamortized Debt Issuance Expense | $ 18,000,000 | (12,174,000) | (12,174,000) | (15,541,000) | ||||||||||||||||||||||||
Incremental Common Shares Attributable to Call Options and Warrants | shares | 20.5 | |||||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 40.00 | $ 38.80 | ||||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 1.5 | 21.1 | ||||||||||||||||||||||||||
Capital Lease Obligations [Member] | ||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | ||||||||||||||||||||||||||||
Debt and capital lease obligations | 14,919,000 | 14,919,000 | 13,763,000 | |||||||||||||||||||||||||
2021 Convertible Debt [Member] | ||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | ||||||||||||||||||||||||||||
Debt and capital lease obligations | 276,580,000 | [2] | $ 276,580,000 | [2] | 0 | |||||||||||||||||||||||
Stated percentage rate | 2.25% | |||||||||||||||||||||||||||
Maturity date | Nov. 15, 2021 | |||||||||||||||||||||||||||
Debt instrument, convertible, conversion ratio | 46.8165 | |||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 21.36 | |||||||||||||||||||||||||||
wmgi_ThresholdForConversionAsPercentOfConversionPrice | 130.00% | |||||||||||||||||||||||||||
Debt instrument, convertible, minimum consecutive period | 20 days | |||||||||||||||||||||||||||
Debt instrument, convertible, trading period | 30 days | |||||||||||||||||||||||||||
Debt instrument, convertible, purchase price as a percent of principal amount if fundamental change event occurs | 100.00% | |||||||||||||||||||||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||||||||
Amortization of Debt Discount (Premium) | $ 4,200,000 | |||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 9.72% | 9.72% | ||||||||||||||||||||||||||
Long-term Debt, Fair Value | $ 498,200,000 | $ 498,200,000 | ||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | $ (117,200,000) | (111,702,000) | (111,702,000) | |||||||||||||||||||||||||
Unamortized Debt Issuance Expense | $ 7,300,000 | (6,700,000) | (6,700,000) | |||||||||||||||||||||||||
Incremental Common Shares Attributable to Call Options and Warrants | shares | 18.5 | |||||||||||||||||||||||||||
Proceeds from Issuance of Warrants | $ 54,600,000 | |||||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 30.00 | |||||||||||||||||||||||||||
2017 Convertible Debt [Member] | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Long-term Debt, Gross | 2,026,000 | 2,026,000 | 60,000,000 | |||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | ||||||||||||||||||||||||||||
Debt and capital lease obligations | [2] | 1,949,000 | 1,949,000 | 55,865,000 | [4] | |||||||||||||||||||||||
Stated percentage rate | 2.00% | |||||||||||||||||||||||||||
Maturity date | Aug. 15, 2017 | |||||||||||||||||||||||||||
Debt instrument, convertible, conversion ratio | 39.3140 | |||||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 25.44 | |||||||||||||||||||||||||||
wmgi_ThresholdForConversionAsPercentOfConversionPrice | 130.00% | |||||||||||||||||||||||||||
wmgi_ThresholdForConversion | 98.00% | |||||||||||||||||||||||||||
Debt instrument, convertible, minimum consecutive period | 20 days | |||||||||||||||||||||||||||
Debt instrument, convertible, trading period | 30 days | |||||||||||||||||||||||||||
Debt instrument, convertible, purchase price as a percent of principal amount if fundamental change event occurs | 100.00% | |||||||||||||||||||||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||||||||
Amortization of Debt Discount (Premium) | $ 0 | $ 500,000 | $ 900,000 | $ 2,400,000 | ||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 6.47% | 6.47% | 6.47% | 6.47% | ||||||||||||||||||||||||
Extinguishment of Debt, Amount | $ 54,400,000 | |||||||||||||||||||||||||||
Repayments of Debt | $ 292,000,000 | 56,000,000 | ||||||||||||||||||||||||||
Payments for Repurchase of Warrants | $ 60,000,000 | |||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | $ (66,000) | (66,000) | 3,495,000 | |||||||||||||||||||||||||
Unamortized Debt Issuance Expense | (11,000) | (11,000) | (640,000) | $ 8,800,000 | ||||||||||||||||||||||||
Shareholder Debt- TRNX [Member] | ||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | ||||||||||||||||||||||||||||
Notes Payable, Noncurrent | $ 1,894,000 | $ 1,894,000 | 1,998,000 | |||||||||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.55% | 2.55% | ||||||||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.90% | 4.90% | ||||||||||||||||||||||||||
2020 Conversion Derivative [Member] | ||||||||||||||||||||||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||||||||
Derivative, Cash Received on Hedge | $ 4,000,000 | |||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | (149,800,000) | |||||||||||||||||||||||||||
2017 Notes Conversion Derivative [Member] | ||||||||||||||||||||||||||||
Debt and Capital Lease Obligations [Abstract] | ||||||||||||||||||||||||||||
Write off of pro-rata unamortized deferred financing fees and for bank and legal fees | 25,100,000 | $ 3,000,000 | ||||||||||||||||||||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||||||||
Repayments of Debt | 240,000,000 | 4,000,000 | ||||||||||||||||||||||||||
Derivative, Cash Received on Hedge | $ 70,000,000 | |||||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | $ (48,100,000) | |||||||||||||||||||||||||||
Reported Value Measurement [Member] | 2020 convertibledebt [Member] | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Long-term Debt, Gross | 632,500,000 | $ 587,500,000 | 587,500,000 | $ 632,500,000 | ||||||||||||||||||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||||||||
Long-term Debt, Fair Value | 629,000,000 | 629,000,000 | ||||||||||||||||||||||||||
Reported Value Measurement [Member] | 2021 Convertible Debt [Member] | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Long-term Debt, Gross | 395,000,000 | |||||||||||||||||||||||||||
Reported Value Measurement [Member] | 2017 Convertible Debt [Member] | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Long-term Debt, Gross | $ 300,000,000 | |||||||||||||||||||||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||||||||
Long-term Debt, Fair Value | $ 2,100,000 | $ 2,100,000 | ||||||||||||||||||||||||||
2021 Convertible Debt [Member] | ||||||||||||||||||||||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||||||||
Derivative, Cost of Hedge | $ 99,800,000 | |||||||||||||||||||||||||||
2020 Notes Hedges [Member] | ||||||||||||||||||||||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||||||||
Derivative, Cost of Hedge | $ 144,800,000 | |||||||||||||||||||||||||||
Mr. Tornier [Member] | ||||||||||||||||||||||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | |||||||||||||||||||||||||||
Other Borrowings | $ 2,200,000.00 | |||||||||||||||||||||||||||
Tornier SAS [Member] | ||||||||||||||||||||||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 51.00% | |||||||||||||||||||||||||||
|
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 25, 2016 |
Sep. 30, 2015 |
Sep. 25, 2016 |
Sep. 30, 2015 |
Dec. 27, 2015 |
Dec. 31, 2014 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | $ 745,105 | $ 113,971 | $ 745,105 | $ 113,971 | $ 1,055,026 | $ 278,803 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 1,279 | 1,279 | (10,484) | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 11,763 | (7,293) | ||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders' Equity Attributable to Parent | 1,279 | (4,895) | 1,279 | (4,895) | $ (10,484) | $ 2,398 |
Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Translation Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 1,279 | (4,895) | 1,279 | (4,895) | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ 4,480 | $ (1,581) | $ 11,763 | $ (7,293) |
Changes in Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 |
Sep. 30, 2015 |
Sep. 25, 2016 |
Sep. 30, 2015 |
Dec. 27, 2015 |
Dec. 31, 2014 |
|||||
Stockholders' Equity Attributable to Parent | $ 745,105 | $ 113,971 | $ 745,105 | $ 113,971 | $ 1,055,026 | $ 278,803 | ||||
Net (loss) income | $ (110,145) | $ (98,861) | (387,503) | (192,924) | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 11,763 | (7,293) | ||||||||
Stock Issued During Period, Value, New Issues | 5,664 | 3,090 | ||||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 9,843 | 7,720 | ||||||||
Adjustments to Additional Paid in Capital, Warrant Issued | $ 50,312 | $ 24,575 | ||||||||
Common Stock [Member] | ||||||||||
Common Stock, Shares, Outstanding | [1] | 103,225,384 | 53,062,948 | 103,225,384 | 53,062,948 | 102,672,678 | 52,913,093 | |||
Stockholders' Equity Attributable to Parent | [1] | $ 3,809 | $ 2,113 | $ 3,809 | $ 2,113 | $ 3,790 | $ 2,101 | |||
Stock Issued During Period, Shares, New Issues | [1] | 287,328 | 137,944 | |||||||
Stock Issued During Period, Value, New Issues | [1] | $ 10 | $ 5 | |||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 5,246 | |||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited | [1] | 5,869 | ||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | [1] | 265,378 | 12,534 | |||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | [1] | $ 9 | $ 7 | |||||||
Additional Paid-in Capital [Member] | ||||||||||
Stockholders' Equity Attributable to Parent | [1] | 1,901,386 | 784,842 | 1,901,386 | 784,842 | 1,835,586 | 749,469 | |||
Stock Issued During Period, Value, New Issues | [1] | 5,654 | 3,085 | |||||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | [1] | (9) | (7) | |||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | [1] | 9,843 | 7,720 | |||||||
Adjustments to Additional Paid in Capital, Warrant Issued | 50,312 | 24,575 | [1] | |||||||
Retained Earnings [Member] | ||||||||||
Stockholders' Equity Attributable to Parent | (1,161,369) | (668,089) | (1,161,369) | (668,089) | (773,866) | (475,165) | ||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||
Stockholders' Equity Attributable to Parent | 1,279 | (4,895) | 1,279 | (4,895) | $ (10,484) | $ 2,398 | ||||
Accumulated Translation Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ 4,480 | $ (1,581) | $ 11,763 | $ (7,293) | ||||||
|
Earnings per share (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016 |
[1] | Sep. 30, 2015 |
[2] | Sep. 25, 2016 |
[1] | Sep. 30, 2015 |
[2] | |||||||
Earnings Per Share [Abstract] | ||||||||||||||
Weighted-average number of shares outstanding-basic (in shares) | 103,072 | 52,750 | 102,854 | 52,607 | ||||||||||
Weighted-average number of shares outstanding, diluted | 103,072 | [3] | 52,750 | [3] | 102,854 | 52,607 | ||||||||
|
Capital Stock and Earnings per share Capital Stock (Details) |
9 Months Ended | ||
---|---|---|---|
Sep. 25, 2016
€ / shares
shares
|
Sep. 30, 2015
$ / shares
shares
|
Dec. 27, 2015
€ / shares
shares
|
|
Earnings Per Share [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 10,735,763 | 4,308,834 | |
Antidilutive Securities Stock Options | 1,406,429 | 282,564 | |
Conversion of Stock, Amount Converted | 1.0309 | ||
Common stock, shares authorized (in shares) | 320,000,000 | 320,000,000 | |
Common Stock, Par or Stated Value Per Share | (per share) | € 0.03 | $ 0.01 | € 0.03 |
Common Stock, Shares, Issued | 103,225,384 | 102,672,678 |
Commitments and Contingencies - Product Liability Contingency (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Dec. 27, 2015 |
Sep. 30, 2015 |
Sep. 30, 2013 |
Jun. 30, 2013 |
Mar. 31, 2013 |
Sep. 25, 2016 |
Sep. 30, 2015 |
Dec. 27, 2015 |
|
Product Liability Contingency [Line Items] | ||||||||
Insurance Recoveries | $ 12,000 | |||||||
Loss Contingency, Damages Awarded, Value | $ 1,025 | |||||||
Product Liability Accrual, Component Amount | $ 4,400 | $ 4,400 | ||||||
Third Party Recovery | $ 10,000 | $ 5,000 | 4,600 | |||||
Loss Contingency, Receivable, Period Increase (Decrease) | 0 | $ 25,000 | ||||||
PROFEMUR Titanium Modular Neck Product [Member] | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Insurance Settlements Receivable, Current | $ 0 | $ 0 | ||||||
Allowance for Doubtful Accounts Receivable, Write-offs | $ 25,000 | |||||||
Product liability, current | 12,100 | |||||||
Product liability, non-current | 13,700 | |||||||
Increase Decrease in Estimated Recovery from Third Party | $ 19,400 | |||||||
Loss Contingency, Receivable, Period Increase (Decrease) | $ 25,000 | |||||||
CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Loss Contingency Accrual | 250,900 | |||||||
Insurance Settlements Receivable | 68,700 | |||||||
Punitive Damages [Member] | CONSERVE (R) Metal-on-metal [Member] | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Insurance Settlements Receivable, Current | 2,000 | |||||||
Loss Contingency, Damages Awarded, Value | 1,000 | 1,000 | ||||||
Loss Contingency Accrual | 2,100 | |||||||
Compensatory damages [Member] | CONSERVE (R) Metal-on-metal [Member] | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Loss Contingency, Damages Awarded, Value | $ 10,000 | |||||||
Master Settlement Agreement - MDL & JCCP [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Loss Contingency Accrual | 240,000 | |||||||
Warner Case [Member] | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Insurance Settlements Receivable | 4,000 | |||||||
Minimum [Member] | PROFEMUR Titanium Modular Neck Product [Member] | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Estimated product liability range | 25,800 | |||||||
Maximum [Member] | PROFEMUR Titanium Modular Neck Product [Member] | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Estimated product liability range | 30,900 | |||||||
Loss from discontinued operations, net of tax [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Loss Contingency Accrual | 150,000 | |||||||
Accrued Liabilities, Current [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Loss Contingency Accrual | 242,700 | |||||||
Other Noncurrent Liabilities [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Loss Contingency Accrual | 8,200 | |||||||
Columbia [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Insurance Recoveries | 10,000 | |||||||
Columbia, Travelers, and AXIS [Member] | CONSERVE (R) DYNASTY (R) AND LINEAGE (R) [Member] | ||||||||
Product Liability Contingency [Line Items] | ||||||||
Insurance Settlements Receivable | $ 60,000 |
Segment Data (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 25, 2016
USD ($)
|
Mar. 27, 2016 |
Sep. 30, 2015
USD ($)
|
Sep. 25, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Dec. 27, 2015
USD ($)
|
|||||||
Segment Reporting Information [Line Items] | ||||||||||||
Payments to Acquire Property, Plant, and Equipment | $ 37,800 | $ 34,013 | ||||||||||
Net sales | $ 157,332 | $ 80,139 | 497,339 | 238,493 | ||||||||
Operating Income (Loss) | (38,604) | (41,042) | (103,666) | (108,505) | ||||||||
InventoryStepUpAmortizationExpense | 10,306 | 30,922 | ||||||||||
DistributorConversionCharges | 16 | 65 | ||||||||||
Business Combination, Acquisition Related Costs, Transaction | 6,532 | 19,887 | 24,425 | 43,040 | ||||||||
Product Rationalization Costs | 1,573 | 3,527 | ||||||||||
Payments for Legal Settlements | 1,800 | |||||||||||
Management Changes | 1,348 | |||||||||||
Payments of Debt Restructuring Costs | 234 | |||||||||||
Other Nonoperating Income (Expense) | (365) | 10,236 | (3,494) | 7,395 | ||||||||
Assets | 2,316,326 | 2,316,326 | $ 2,073,494 | [1] | ||||||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest | (55,034) | (62,463) | (141,845) | (145,693) | ||||||||
Goodwill | 855,800 | 855,800 | 866,989 | |||||||||
Goodwill, Translation Adjustments | 2,479 | |||||||||||
EMEA [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 23,693 | 10,718 | 87,040 | 34,951 | ||||||||
UNITED STATES | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 118,065 | 60,394 | 364,482 | 176,150 | ||||||||
Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 15,574 | 9,027 | 45,817 | 27,392 | ||||||||
Extremities & Biologics [Member] | International [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 39,267 | 19,745 | 132,857 | 62,343 | ||||||||
Depreciation | 3,086 | 827 | 8,541 | 2,330 | ||||||||
Assets | 316,372 | 316,372 | 365,621 | |||||||||
AmortizationExpenseWithoutDistributorConversion | 0 | 0 | 0 | 0 | ||||||||
Segment Operating Loss | (2,945) | (2,158) | 840 | (7,256) | ||||||||
Goodwill | 78,606 | 78,606 | 90,350 | |||||||||
Goodwill, Translation Adjustments | 2,479 | |||||||||||
Large Joints [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Disposal Group, Including Discontinued Operation, Assets, Current | 21,805 | 21,805 | 50,170 | |||||||||
Goodwill | 8,466 | 8,466 | 9,355 | |||||||||
UNITED STATES | Lower Extremities & Biologics [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 70,654 | 56,740 | 214,559 | 164,448 | ||||||||
Depreciation | 3,494 | 3,288 | 9,183 | 9,050 | ||||||||
Assets | 464,451 | 464,451 | 490,798 | |||||||||
AmortizationExpenseWithoutDistributorConversion | 0 | 0 | 0 | 0 | ||||||||
Segment Operating Loss | 17,980 | 7,716 | 57,813 | 19,666 | ||||||||
Goodwill | 218,525 | 218,525 | 221,327 | |||||||||
Goodwill, Translation Adjustments | 0 | |||||||||||
UNITED STATES | Upper Extremities [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 47,411 | 3,654 | 149,923 | 11,702 | ||||||||
Depreciation | 3,181 | 212 | 8,400 | 643 | ||||||||
Assets | 811,318 | 811,318 | 833,432 | |||||||||
AmortizationExpenseWithoutDistributorConversion | 0 | 0 | 0 | 0 | ||||||||
Segment Operating Loss | 12,594 | 1,526 | 46,729 | 4,902 | ||||||||
Goodwill | 558,669 | 558,669 | 555,312 | |||||||||
Goodwill, Translation Adjustments | 0 | |||||||||||
Corporate Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | [2] | 0 | 0 | 0 | 0 | |||||||
Depreciation | [2] | 5,124 | 1,941 | 14,881 | 4,943 | |||||||
Assets | 702,380 | 702,380 | $ 333,473 | |||||||||
AmortizationExpenseWithoutDistributorConversion | [2] | 7,466 | 2,546 | 21,407 | 7,676 | |||||||
Segment Operating Loss | [2] | $ (47,822) | (28,203) | (146,792) | (82,643) | |||||||
segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Number of Reportable Segments | 3 | 4 | ||||||||||
Net sales | $ 157,332 | |||||||||||
Depreciation | 14,885 | 6,268 | 41,005 | 16,966 | ||||||||
AmortizationExpenseWithoutDistributorConversion | 7,466 | 2,546 | 21,407 | 7,676 | ||||||||
Segment Operating Loss | $ (20,193) | $ (21,119) | $ (41,410) | $ (65,331) | ||||||||
|
+30Q8O/5Y^.A#9 MKL-L.5=,ZT:O^D#O]75EF-1L
MJ\PPU6/1-_!^HOCAVJ2,_P*
M' -;&8O=PP)%#[MG-5$2H[:5E92F^^^7DF6'X\ZPO=B6_))\.:(>#LGU6]M]
M[9^;9EA\/^R/_=WR>1A>;E>K_OZY.=3]A_:E.:9_'MON4 _ILGM:]2]=4S],
MA0[[E5'*K0[U[KC8=7Y< [^,%-)[0E
M9W3^9.,QM(@.O(GL[IZ2WK^?)9'0NA ^^-BD*Y42A\/U@2ROM/H+4$L#!!0
M ( +:+8DD#ITA4I $ +(# 9 >&PO=V]R:W-H965T1W=QBU/GW,R<"&A?">Q^;=*52XG1_>2#S*RT_ 5!+ P04 " "VBV))
M"ROU@*(! "Q P &0 'AL+W=O&PO=V]R:W-H965TT%88$;<86;EW)1$*X-TGW5^9L$Z=I@
MB]4L',N>W8XT]6SY:)'S$1*>N+!TCK@L3GX3 I[NR:J.]X0U;,1%;/67D&YZ
M5*F5%,(Y>K\ !0DS!%/&.2>Z!V\$R*JN! CKWH@+W\8*X6'1,4FL2UY4M.BA
M