Income Taxes	9 Months Ended
Sep. 30, 2018
Income Taxes [Abstract]
Income Taxes	7. Income Taxes Income Tax Expense Our effective income tax rate was an expense of 26% and a benefit of 58% for the three and nine months ended September 30, 2018, respectively. Our effective income tax rate for the three months ended September 30, 2017 was not meaningful due to the impact of the value of tax adjustments as compared to the low amount of income before taxes. Our effective income tax rate was a benefit of 14% for the nine months ended September 30, 2017 due to the impact of the value of tax adjustments. Our income tax rate for the three and nine months ended September 30, 2018 was affected by excess tax benefit deductions related to stock compensation, which increased the year-to-date income tax benefits by approximately $1.4 million, and losses in high rate jurisdictions. These factors were partially offset by the effects of non-deductible operating expenses and executive compensation expenses. Our income tax rate for the three and nine months ended September 30, 2017 was favorably affected by excess tax benefits, primarily related to the exercise of non-qualified stock options and the vesting of stock awards, which decreased income tax expense by approximately $1.1 million and $2.7 million, respectively. On December 22, 2017 the U.S. enacted tax reform legislation known as the H.R. 1, commonly referred to as the “Tax Cuts and Jobs Act” (the “Tax Act”), resulting in significant modifications to existing law. We have elected to follow the guidance in SEC Staff Accounting Bulletin 118 (“SAB 118”), which provides additional clarification regarding the application of ASC Topic 740, Income Taxes (“ASC 740”) in situations where we do not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act for the reporting period in which the Tax Act was enacted. SAB 118 provides for a measurement period beginning in the reporting period that includes the Tax Act’s enactment date and ending when we have obtained, prepared, and analyzed the information needed in order to complete the accounting requirements, but the measurement period cannot extend beyond one year from the enactment date. As of September 30, 2018 we have not fully completed our accounting for the income tax effects of all elements of the Tax Act, but we have completed our analysis of the 2017 repatriation transition tax. Our final transition tax calculation was not materially different from the provisional nominal tax benefit recorded at December 31, 2017. For elements of the Tax Act for which our analysis is not yet complete, we made reasonable estimates of the effects and recorded provisional adjustments. If we were not yet able to make reasonable estimates of the impact of certain elements, we have not recorded any adjustments related to those elements and have continued accounting for them in accordance with ASC 740 based on the tax laws in effect before the Tax Act. For our calendar year beginning in 2018, we are subject to several provisions of the Tax Act including computations under Global Intangible Low Taxed Income (“GILTI”), Foreign Derived Intangible Income (“FDII”), Base Erosion and Anti-Abuse Tax (“BEAT”), and Internal Revenue Code Section 163(j) interest limitation (“Interest Limitation”) rules. Based on preliminary information and analysis, we have recorded a provisional estimate for a FDII deduction of $565,000 in our effective tax rate for the nine months ended September 30, 2018. We estimate the Interest Limitation will apply, but not affect our 2018 tax rate. We are not subject to BEAT at this time based on revenue trends. We will continue to refine our provisional estimates for our computations of the GILTI, FDII, and Interest Limitation rules as we gather additional information. We currently estimate that other provisions of the Tax Act generally will not materially impact our 2018 effective rate, other than the potential impact of changes to the deductibility of meals and entertainment and executive compensation. We continue to gather new information on the interpretation of these new law changes and refine our provisional estimates. As we complete our analysis of the Tax Act, further collect and analyze data, interpret any additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service, and other standard-setting bodies, we may adjust our provisional amounts. Those adjustments may materially impact our provision for income taxes. Deferred Income Taxes We generate deferred tax assets primarily as a result of write-downs of inventory and deferred preservation costs, accruals for product and tissue processing liability claims, investment and asset impairments, and due to operating losses. We acquired significant deferred tax assets, primarily net operating loss carryforwards, from our acquisitions of JOTEC in 2017, On-X in 2016, Hemosphere, Inc. in 2012, and Cardiogenesis Corporation in 2011. We believe utilization of these net operating losses will not have a material impact on income taxes for the 2018 tax year. We recorded significant deferred tax liabilities in 2017 related to the intangible assets acquired in the JOTEC Acquisition. As of September 30, 2018 we maintained a total of $2.5 million in valuation allowances against deferred tax assets, related to state net operating loss carryforwards, and had a net deferred tax liability of $22.7 million. As of December 31, 2017 we had a total of $2.5 million in valuation allowances against deferred tax assets, related to state net operating loss carryforwards, and a net deferred tax liability of $28.8 million.

7. Income Taxes

Income Tax Expense

Our effective income tax rate was an expense of 26% and a benefit of 58% for the three and nine months ended September 30, 2018, respectively. Our effective income tax rate for the three months ended September 30, 2017 was not meaningful due to the impact of the value of tax adjustments as compared to the low amount of income before taxes. Our effective income tax rate was a benefit of 14% for the nine months ended September 30, 2017 due to the impact of the value of tax adjustments. Our income tax rate for the three and nine months ended September 30, 2018 was affected by excess tax benefit deductions related to stock compensation, which increased the year-to-date income tax benefits by approximately $1.4 million, and losses in high rate jurisdictions. These factors were partially offset by the effects of non-deductible operating expenses and executive compensation expenses.

Our income tax rate for the three and nine months ended September 30, 2017 was favorably affected by excess tax benefits, primarily related to the exercise of non-qualified stock options and the vesting of stock awards, which decreased income tax expense by approximately $1.1 million and $2.7 million, respectively.

On December 22, 2017 the U.S. enacted tax reform legislation known as the H.R. 1, commonly referred to as the “Tax Cuts and Jobs Act” (the “Tax Act”), resulting in significant modifications to existing law. We have elected to follow the guidance in SEC Staff Accounting Bulletin 118 (“SAB 118”), which provides additional clarification regarding the application of ASC Topic 740, Income Taxes (“ASC 740”) in situations where we do not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act for the reporting period in which the Tax Act was enacted. SAB 118 provides for a measurement period beginning in the reporting period that includes the Tax Act’s enactment date and ending when we have obtained, prepared, and analyzed the information needed in order to complete the accounting requirements, but the measurement period cannot extend beyond one year from the enactment date.

As of September 30, 2018 we have not fully completed our accounting for the income tax effects of all elements of the Tax Act, but we have completed our analysis of the 2017 repatriation transition tax. Our final transition tax calculation was not materially different from the provisional nominal tax benefit recorded at December 31, 2017. For elements of the Tax Act for which our analysis is not yet complete, we made reasonable estimates of the effects and recorded provisional adjustments. If we were not yet able to make reasonable estimates of the impact of certain elements, we have not recorded any adjustments related to those elements and have continued accounting for them in accordance with ASC 740 based on the tax laws in effect before the Tax Act.

For our calendar year beginning in 2018, we are subject to several provisions of the Tax Act including computations under Global Intangible Low Taxed Income (“GILTI”), Foreign Derived Intangible Income (“FDII”), Base Erosion and Anti-Abuse Tax (“BEAT”), and Internal Revenue Code Section 163(j) interest limitation (“Interest Limitation”) rules. Based on preliminary information and analysis, we have recorded a provisional estimate for a FDII deduction of $565,000 in our effective tax rate for the nine months ended September 30, 2018. We estimate the Interest Limitation will apply, but not affect our 2018 tax rate. We are not subject to BEAT at this time based on revenue trends. We will continue to refine our provisional estimates for our computations of the GILTI, FDII, and Interest Limitation rules as we gather additional information.

We currently estimate that other provisions of the Tax Act generally will not materially impact our 2018 effective rate, other than the potential impact of changes to the deductibility of meals and entertainment and executive compensation. We continue to gather new information on the interpretation of these new law changes and refine our provisional estimates.

As we complete our analysis of the Tax Act, further collect and analyze data, interpret any additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service, and other standard-setting bodies, we may adjust our provisional amounts. Those adjustments may materially impact our provision for income taxes.

Deferred Income Taxes

We generate deferred tax assets primarily as a result of write-downs of inventory and deferred preservation costs, accruals for product and tissue processing liability claims, investment and asset impairments, and due to operating losses. We acquired significant deferred tax assets, primarily net operating loss carryforwards, from our acquisitions of JOTEC in 2017, On-X in 2016, Hemosphere, Inc. in 2012, and Cardiogenesis Corporation in 2011. We believe utilization of these net operating losses will not have a material impact on income taxes for the 2018 tax year. We recorded significant deferred tax liabilities in 2017 related to the intangible assets acquired in the JOTEC Acquisition.

As of September 30, 2018 we maintained a total of $2.5 million in valuation allowances against deferred tax assets, related to state net operating loss carryforwards, and had a net deferred tax liability of $22.7 million. As of December 31, 2017 we had a total of $2.5 million in valuation allowances against deferred tax assets, related to state net operating loss carryforwards, and a net deferred tax liability of $28.8 million.