Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies [Abstract]

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

Cash equivalents are investments with an original maturity of three months or less.

Inventory, Policy [Policy Text Block]

Inventories

Inventories are stated at the lower of cost or market with cost determined using the first-in, first-out method.  Inventory costs include material, labor and overhead related to the manufacturing of medical devices.

Inventories consist of the following at December 31:

	2011		2010
Raw material	$	25,227	$	22,805
Work in process	2,901		3,806
Finished goods	12,295		17,445
Total	$	40,423	$	44,056

Property, Plant and Equipment Disclosure [Text Block]

Property and Equipment

Property and equipment consist of the following at December 31: 

	2011			2010
Machinery and equipment	$	73,390		$	62,680
Land, building and building improvements	60,334			57,810
Molds	24,133			22,521
Computer equipment and software	17,518			14,613
Furniture and fixtures	2,298			2,107
Construction in progress	5,277			9,866
Total property and equipment, cost	182,950			169,597
Accumulated depreciation	(99,902		)	(86,052		)
Net property and equipment	$	83,048		$	83,545

All property and equipment are stated at cost.  The Company uses the straight-line method for depreciating property and equipment over their estimated useful lives.  Estimated useful lives are:

Buildings	15 - 30 years
Building improvements	15 years
Machinery and equipment	2 - 10 years
Furniture, fixtures and molds	2 - 5 years
Computer equipment and software	3 - 5 years

The Company follows the policy of capitalizing expenditures that materially increase the life of the related assets; maintenance and repairs are expensed as incurred.  The costs and related accumulated depreciation applicable to property and equipment sold or retired are removed from the accounts and any gain or loss is reflected in the statements of income at the time of disposal. Depreciation expense was $15.6 million, $14.6 million and $13.4 million in the years ended December 31, 2011, 2010 and 2009, respectively.

The cost of property and equipment are presented net of government incentive reimbursement the Company received from the Slovakian government for building a manufacturing plant in their country. As of December 31, 2011 and 2010, government incentives recorded in property and equipment were $3.5 million and $1.8 million, respectively.

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

The Company tests goodwill for impairment on an annual basis in the month of November. If the carrying amount of goodwill exceeds the implied estimated fair value, an impairment charge to current operations is recorded to reduce the carrying value to the implied estimated fair value.   There have been no goodwill additions or impairment charges in the years ended December 31, 2011 and 2010 .

Intangible Assets Disclosure [Text Block]

Intangible Assets

Intangible assets, carried at cost less accumulated amortization and amortized on a straight-lined basis, were as follows:

	Weighted Average	December 31, 2011
	Amortization Life in Years	Cost		Accumulated Amortization		Net
Patents	9	$	9,142	$	4,335	$	4,807
MCDA contract *	10	8,571		5,714		2,857
Customer contracts	9	5,319		1,684		3,635
Trademarks	4	425		305		120
Total		$	23,457	$	12,038	$	11,419

	Weighted Average	December 31, 2010
	Amortization Life in Years	Cost		Accumulated Amortization		Net
Patents	9	$	11,060	$	4,463	$	6,597
MCDA contract *	10	8,571		4,857		3,714
Customer contracts	9	5,319		1,050		4,269
Trademarks	4	425		199		226
Total		$	25,375	$	10,569	$	14,806

*MCDA contract:  Manufacturing, Commercialization and Development Agreement with Hospira, Inc. (“Hospira”), dated May 1, 2005 (“the MCDA”).

Amortization expense in 2011, 2010 and 2009 was $2.7 million, $2.8 million and $2.3 million, respectively.  Estimated annual amortization for each of the next five years is approximately $2.6 million for 2012, $2.4 million for 2013, $2.1 million for 2014, $1.4 million for 2015 and $0.9 million for 2016.

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment or Disposal of Long-Lived Assets

The Company periodically evaluates the recoverability of long-lived assets whenever events and changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. When indicators of impairment are present, the carrying values of the assets are evaluated in relation to the operating performance and future undiscounted cash flows of the underlying business. The net book value of the underlying asset is adjusted to fair value if the sum of the expected discounted cash flows is less than book value. Fair values are based on estimates of market prices and assumptions concerning the amount and timing of estimated future cash flows and discount rates, reflecting varying degrees of perceived risk.

Research and Development Expense, Policy [Policy Text Block]

Research and Development

The Company expenses research and development costs as incurred.

Earnings Per Share, Policy [Policy Text Block]

Net Income Per Share

Net income per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per share is computed by dividing net income by the weighted average number of common shares outstanding plus dilutive securities.  Dilutive securities are outstanding common stock options (excluding stock options with an exercise price in excess of the average market value for the period), less the number of shares that could have been purchased with the proceeds from the exercise of the options, using the treasury stock method.  Options that are anti-dilutive because their exercise price exceeded the average market price of the common stock for the period approximated 217,000, 524,000 and 407,000 shares for the years ended December 31, 2011, 2010 and 2009 , respectively.

The following table presents the calculation of net earnings per common share (“EPS”) — basic and diluted. 

	Years ended December 31, (in thousands, except per share data)
	2011		2010		2009
Net income	$	44,669	$	29,923	$	24,981
Weighted average number of common shares outstanding (basic)	13,835		13,611		14,720
Dilutive securities	326		244		264
Weighted average common and common equivalent shares outstanding (diluted)	14,161		13,855		14,984
EPS - basic	$	3.23	$	2.20	$	1.70
EPS - diluted	$	3.15	$	2.16	$	1.67

There were no potentially dilutive securities excluded from the computation of diluted earnings per share for these periods if their effect would have been anti-dilutive.

Investment, Policy [Policy Text Block]

Investment Securities

The Company’s investment securities, which are carried at fair market value and are considered available-for-sale, consist principally of certificates of deposits, corporate bonds, tax-exempt state and municipal government debt and sovereign bonds. Available-for-sale securities are recorded at fair value, and unrealized holding gains and losses are recorded, net of tax, as a component of accumulated other comprehensive income. Unrealized losses on available-for-sale securities are charged against net earnings when a decline in fair value is determined to be other than temporary. The Company’s management reviews several factors to determine whether a loss is other than temporary, such as the length and extent of the fair value decline, the financial condition and near term prospects of the issuer, and for equity investments, the Company’s intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. For debt securities, management also evaluates whether the Company has the intent to sell or will likely be required to sell before its anticipated recovery. Realized gains and losses are accounted for on the specific identification method.

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company’s deferred taxes are determined based on the differences between the financial statements and the tax bases using rates as enacted in the laws. A valuation allowance is established if it is “more likely than not” that all or a portion of the deferred tax assets will not be realized.

The Company recognizes interest and penalties related to unrecognized tax benefits in the tax provision. The Company recognizes liabilities for uncertain tax positions when it is more likely than not that a tax position will not be sustained upon examination and settlement with various taxing authorities. Liabilities for uncertain tax positions are measured based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company has not recorded any material interest or penalties during any of the years presented.

The deduction the Company receives from indirect tax benefits from the exercise of stock options, such as those recognized for research and development credits and domestic production activities deductions, are recorded as net reductions of the tax provision. The direct tax benefits of share based compensation are recorded through additional-paid-in capital.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

All of Company’s product sales are FOB shipping point and ownership of the product transfers to the customer on shipment by the Company.  The Company records sales and related costs when ownership of the product transfers to the customer, persuasive evidence of an arrangement exists, collectability is reasonably assured and the sales price is determinable.  The Company’s customers are distributors, medical product manufacturers and end-users.  The Company’s only post-sale obligations are warranty and certain rebates.  With certain exceptions, customers do not retain any right of return and there is no price protection with respect to unsold product; returns from customers with return rights have not been historically significant, therefore no accrual is recorded for this.

The Company warrants products against defects and has a policy permitting the return of defective products.  The Company assesses if a reserve for warranty returns is needed.  Total warranty expense has been insignificant. The Company accrues rebates based on agreements and on historical experience as a reduction in revenue at the time of sale; adjustments to amounts accrued have not been significant.

Other revenue consists of license, royalty and revenue sharing payments.  Payments expected to be received are estimated and recorded in the period earned, and adjusted to actual amounts when reports are received from payers; if there is insufficient data to make such estimates, payments are not recorded until reported by the payers.

Shipping and Handling Cost, Policy [Policy Text Block]

Shipping Costs

Costs incurred by the Company to ship finished goods to its customers are included in cost of goods sold on the consolidated statements of operations.

Trade and Other Accounts Receivable, Policy [Policy Text Block]

Accounts Receivable

Accounts receivable are stated at net realizable value.  An allowance is provided for estimated collection losses based on an assessment of various factors.  The Company considers prior payment trends, the age of the accounts receivable balances, financial status and other factors to estimate the cash which ultimately will be received.  Such amounts cannot be known with certainty at the financial statement date.  The Company regularly reviews individual past due balances for collectability.

Postemployment Benefit Plans, Policy [Policy Text Block]

Post-retirement and Post-employment Benefits

The Company does not provide retirement or post-employment benefits to employees other than its Section 401(k) retirement plan for employees.  Company contributions to the plan in 2011, 2010 and 2009 were approximately $1.2 million, $1.1 million and $0.9 million, respectively.

Use of Estimates, Policy [Policy Text Block]

Accounting Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translation

The Company has international operations where the functional currency is their local currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expense accounts are translated at the average monthly exchange rates during the year. Resulting translation adjustments are recorded as a component of accumulated other comprehensive income on the consolidated balance sheets.  Foreign currency transaction gains and losses are less than $0.1 million in 2011, 2010 and 2009.

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

New Accounting Pronouncements

In September 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-08 for Intangibles - Goodwill and Other (Topic 350): "Testing Goodwill for Impairment". This Update simplifies how entities test goodwill for impairment. The amendments in the Update permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the entity determines that it is more likely than not that the fair value of a reporting unit is more than the carrying amount in step one, performing step two is not required. If the entity determines that the fair value of a reporting unit is less than the carrying value in step one, step two is required to determine the impairment loss. Under the amendments, an entity is no longer permitted to carry forward its detailed calculation of a reporting unit’s fair value from a prior year as previously permitted. This Update is effective for fiscal years beginning after December 15, 2011 and is not expected to have a material effect on our financial statements.  

In May 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-04 for Fair Value Measurement (Topic 820):  “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in

U.S. GAAP and IFRSs”.  This Update addresses how to measure fair value and requires new disclosures about fair value measurements. The amendments in this Update are effective for interim and annual periods beginning after December 15, 2011 and are not expected to have a material effect on our financial statements.