Operations and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The balance of the Company’s primary financial instruments was as follows:

Schedule of estimated useful lives over which depreciation of software, machinery and equipment is provided for using accelerated methods

Depreciation of software, machinery and equipment is provided using accelerated methods over the following estimated useful lives:



Software	3 to 5 years
Machinery and equipment	3 to 10 years

Reconciliation of basic earnings per share ("EPS") to diluted EPS

The following shows a reconciliation of basic earnings per share (“EPS”) to diluted EPS:



	Year Ended December 31,
(in thousands, except per-share amounts)	2015		2014		2013
Net income available to common stockholders	$	67,888	$	63,531	$	50,971

Basic weighted average shares outstanding	48,952		48,977		48,521
Dilutive effect of potential common stock equivalents — stock options	229		217		152
Diluted weighted average shares outstanding	49,181		49,194		48,673
Net earnings per share:
Basic	$	1.39	$	1.30	$	1.05
Diluted	$	1.38	$	1.29	$	1.05
Potentially dilutive securities excluded from earnings per diluted share because their
effect is anti-dilutive	—		—		—

Schedule of components of accumulated other comprehensive income

The following shows the components of accumulated other comprehensive income or loss as of December 31, 2015 and 2014, respectively:



	Foreign Currency Translation			Pension Benefit			Total
(in thousands)	Foreign Currency Translation			Pension Benefit			Total
Balance, January 1, 2013	$	12,342		$	(243	)	$	12,099
Other comprehensive income before reclassification net of tax benefit (expense) of $29 and ($3), respectively	3,147			46			3,193
Amounts reclassified from accumulative other comprehensive income, net of $0 tax	2,794			—			2,794
Balance, December 31, 2013	18,283			(197		)	18,086
Other comprehensive loss net of tax benefit (expense) of ($63) and $67, respectively	(24,896		)	(370		)	(25,266		)
Balance, December 31, 2014	(6,613		)	(567		)	(7,180		)
Other comprehensive loss net of tax benefit (expense) of ($57) and $82, respectively	(20,708		)	(457		)	(21,165		)
Amounts reclassified from accumulative other comprehensive income, net of $0 tax	$	(231	)				$	(231	)
Balance, December 31, 2015	$	(27,552	)	$	(1,024	)	$	(28,576	)

Schedule of Company's stock-based compensation activity

The following table shows the Company’s stock-based compensation activity for the years ended December 31, 2015, 2014, and 2013, respectively:



	Years Ended December 31,
(in thousands)	2015			2014			2013
Stock-based compensation expense recognized in operating expenses	$	11,212		$	12,299		$	12,053
Tax benefit of stock-based compensation expense in provision for income taxes	3,987			4,384			4,225
Stock-based compensation expense, net of tax	$	7,225		$	7,915		$	7,828
Fair value of shares vested	$	10,997		$	12,354		$	12,090
Proceeds to the Company from the exercise of stock-based compensation	$	9,720		$	4,582		$	15,057
Tax benefit from exercise of stock-based compensation, including shortfall tax benefits	$	(318	)	$	(268	)	$	(2,645	)



	At December 31,
(in thousands)	2015		2014		2013
Stock-based compensation cost capitalized in inventory	$	368	$	559	$	463

Schedule of changes in the carrying amount of goodwill, by segment

The changes in the carrying amount of goodwill, by segment, as of December 31, 2014 and 2015, were as follows, respectively:



(in thousands)	North America			Europe			Asia Pacific			Total
Balance as of January 1, 2014:
Goodwill	$	95,488		$	55,574		$	1,706		$	152,768
Accumulated impairment losses	(10,666		)	(12,884		)	—			(23,550		)
	84,822			42,690			1,706			129,218
Foreign exchange	(296		)	(4,293		)	(139		)	(4,728		)
Impairment	—			(530		)	—			(530		)
Reclassifications ⁽¹⁾	—			(79		)	—			(79		)
Balance as of December 31, 2014:										0
Goodwill	95,192			51,202			1,567			147,961
Accumulated impairment losses	(10,666		)	(13,414		)	—			(24,080		)
	84,526			37,788			1,567			123,881
Goodwill acquired	1,860			210			—			2,070
Foreign exchange	(552		)	(1,278		)	(171		)	(2,001		)
Balance as of December 31, 2015:										0
Goodwill	96,500			50,135			1,396			148,031
Accumulated impairment losses	(10,666		)	(13,415		)	—			(24,081		)
	$	85,834		$	36,720		$	1,396		$	123,950

⁽¹⁾ See footnotes following table entitled Indefinite-Lived Intangibles, below.

Schedule of changes in the carrying amounts of finite-lived intangible assets subject to amortization

The changes in the carrying amounts of patents, unpatented technologies, customer relationships and non-compete agreements and other intangible assets subject to amortization as of December 31, 2014, and 2015 were as follows, respectively:



(in thousands)	Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount
Patents	Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount
Balance at January 1, 2014	$	6,689		$	(5,988	)	$	701
Amortization	—			(506		)	(506		)
Foreign exchange	(14		)	—			(14		)
Removal of fully amortized assets	(4,917		)	4,917			—
Balance, at December 31, 2014	1,758			(1,577		)	181
Acquisition	1,062			—			1,062
Amortization				(102		)	(102		)
Foreign exchange	(7		)	—			(7		)
Removal of fully amortized assets	(1,300		)	1,300			—
Balance at December 31, 2015	$	1,513		$	(379	)	$	1,134



(in thousands)	Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount
Unpatented Technology	Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount
Balance at January 1, 2014	$	18,977		$	(5,257	)	$	13,720
Amortization	—			(2,408		)	(2,408		)
Reclassifications⁽²⁾	5,299			—			5,299
Foreign exchange	(1,479		)	—			(1,479		)
Balance, at December 31, 2014	22,797			(7,665		)	15,132
Amortization	—			(2,061		)	(2,061		)
Foreign exchange	(123		)	$	—		(123		)
Removal of fully amortized assets	(1,070		)	1,070			—
Balance at December 31, 2015	$	21,604		$	(8,656	)	$	12,948



(in thousands)	Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount
Non-Compete Agreements, Trademarks and Other
Non-Compete Agreements, Trademarks and Other
Balance at January 1, 2014	$	13,555		(3,554		)	10,001
Acquisition	100			—			100
Amortization	—			(2,020		)	(2,020		)
Foreign exchange	(62		)	—			(62		)
Reclassifications ⁽¹⁾⁽²⁾	(2,554		)	—			(2,554		)
Removal of fully amortized assets	(200		)	200			—
Balance, at December 31, 2014	10,839			(5,374		)	5,465
Acquisition	25			—			25
Amortization	—			(2,039		)	(2,039		)
Foreign exchange	(76		)	—			(76		)
Removal of fully amortized asset	(210		)	210			—
Balance at December 31, 2015	$	10,578		$	(7,203	)	$	3,375



(in thousands)	Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount
Customer Relationships	Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount
Balance at January 1, 2014	$	22,849		(11,164		)	11,685
Amortization	—			(2,225		)	(2,225		)
Reclassifications⁽¹⁾	658			—			658
Foreign exchange	(443		)	—			(443		)
Removal of fully amortized assets	(1,718		)	1,718			—
Balance, at December 31, 2014	21,346			(11,671		)	9,675
Acquisition	474			—			474
Amortization	—			(1,881		)	(1,881		)
Foreign exchange	(178		)	—			(178		)
Removal of fully amortized assets	(400		)	400			—
Balance at December 31, 2015	$	21,242		$	(13,152	)	$	8,090

⁽¹⁾⁽²⁾See footnotes following table entitled Indefinite-Lived Intangibles, below.

Schedule of estimated future amortization of intangible assets

At December 31, 2015, estimated future amortization of intangible assets was as follows:

(in thousands)



2016	$	6,054
2017	4,166
2018	3,130
2019	3,101
2020	3,072
Thereafter	6,024
	$	25,547

Schedule of changes in the carrying amounts of indefinite-lived trade name and IPR&D assets not subject to amortization

The changes in the carrying amounts of indefinite-lived trade name and IPR&D assets not subject to amortization as of December 31, 2014 and 2015, respectively, were as follows:



(in thousands)						Net Carrying
Indefinite-Lived Intangibles	Trade Name		IPR&D			Amount
Balance, at January 1, 2014	$	616	$	5,050		$	5,666
Reclassifications ⁽²⁾	—		(3,349		)	(3,349		)
Foreign exchange	—		(183		)	(183		)
Balance, at December 31, 2014	616		1,518			2,134
Foreign exchange	—		(6		)	(6		)
Balance at December 31, 2015	$	616	$	1,512		$	2,128

(1) Reclassifications in 2014 of $0.6 million to customer relationships related to finalizing accounting for the Bierbach acquisitions, with a corresponding $0.5 million decrease in non-compete agreements, trademarks and other; and $0.1 million decrease in goodwill.


(2)	Reclassification in 2014 of $3.3 million to unpatented technology for substantially completed IPR&D, with a corresponding reduction in indefinite-lived IPR&D and of $2.0 million to unpatented technology related to TJ® ShearBrace (“ShearBrace”), with a corresponding decrease in non-compete agreements, trademarks and other.

Schedule of amortizable and indefinite-lived assets, net, by segment

Amortizable and indefinite-lived assets, net, by segment, as of December 31, 2014 and 2015, respectively, were as follows:



	December 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
(in thousands)
Total Intangible Assets
North America	$	29,455	$	(14,719	)	$	14,736
Europe	29,419		(11,568		)	17,851
Total	$	58,874	$	(26,287	)	$	32,587



	At December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
(in thousands)
Total Intangible Assets
North America	$	27,475	$	(14,941	)	$	12,534
Europe	29,590		(14,449		)	15,141
Total	$	57,065	$	(29,390	)	$	27,675

Schedule of Restructuring Reserve by Type of Cost

The following table provides a rollforward of the liability balance for these costs, as well as other non-employee costs associated with the sales office closing, as of December 31, 2015:



(in thousands)	Operating Leases Obligation			Employee Severance Obligation			Other Associated Costs			Total
Balance at January 1, 2015	$	—		$	—		$	—		$	—
Charges	751			2,422			481			2,903
Cash payments	(751		)	(2,121		)	(129		)	(2,250		)
Balance at December 31, 2015	$	—		$	301		$	352		$	653

(in thousands)

At December 31,

United States Treasury securities and money market funds