XML 39 R24.htm IDEA: XBRL DOCUMENT v3.5.0.2
Divestiture and Acquisition (Tables)
 6 Months Ended
Jul. 01, 2016
Divestiture and Acquisition [Abstract]  
Summary of divested assets and liabilities
In connection with the Spin-off, during the first quarter of 2016, the Company made a cash capital contribution of $75 million to Nuvectra and divested the following assets and liabilities (in thousands):
Assets divested
 
  Cash and cash equivalents
$
76,256

  Other current assets
977

  Property, plant and equipment, net
4,407

  Amortizing intangible assets, net
1,931

  Goodwill
40,830

  Deferred income taxes
6,446

Total assets divested
130,847

Liabilities transferred
 
     Current liabilities
2,119

Net assets divested
$
128,728
Summary of Assets Acquired and Liabilities Assumed
The aggregate consideration paid to the stockholders and equity award holders of Lake Region Medical consisted of the following (in thousands):
Cash
$
478,490

Fair value of Integer common stock
245,368

Replacement stock options attributable to pre-acquisition service
4,508

Total purchase consideration
$
728,366
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]
The following table summarizes the preliminary allocation of the Lake Region Medical purchase price to the assets acquired and liabilities assumed (in thousands):
Assets acquired
 
Current assets
$
269,815

Property, plant and equipment
216,473

Amortizing intangible assets
849,000

Indefinite-lived intangible assets
70,000

Goodwill
665,720

Other non-current assets
1,629

Total assets acquired
2,072,637

Liabilities assumed
 
Current liabilities
103,836

Debt assumed
1,044,675

Other long-term liabilities
195,760

Total liabilities assumed
1,344,271

Net assets acquired
$
728,366
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]
Intangible Assets – The purchase price was allocated to intangible assets as follows (dollars in thousands):
Amortizing Intangible Assets
 
Fair Value Assigned
 
Weighted Average Amortization Period (Years)
 
Estimated Useful Life (Years)
 
Weighted Average Discount Rate
Technology
 
$
160,000

 
7
 
19
 
11.5%
Customer lists
 
689,000

 
14
 
29
 
11.5%
 
 
$
849,000

 
13
 
27
 
11.5%
Indefinite-lived Intangible Assets
 
 
 
 
 
 
 
 
Trademarks and tradenames
 
$
70,000

 
N/A
 
N/A
 
11.5%
Summary of Acquisition Pro Forma Results
The following unaudited pro forma information presents the consolidated results of operations of the Company and Lake Region Medical as if that acquisition occurred as of the beginning of fiscal year 2014 (in thousands, except per share amounts):
 
 
Three Months Ended
 
Six Months Ended
 
 
July 3, 2015
 
July 3, 2015
Sales
 
$
377,934

 
$
736,351

Net income
 
4,709

 
5,675

Earnings per share:
 
 
 
 
     Basic
 
$
0.15

 
$
0.18

     Diluted
 
$
0.15

 
$
0.18