Document
false--12-31Q220190000917520P3Y5.505.004.504.00P1MP7Y371900043940002000002000000.010.0124000000024000000088044000883510001300000000.060000090000000010000035600000150000001500000000P18MP6Y0290000028810002869000 0000917520 2019-01-01 2019-06-30 0000917520 2019-07-23 0000917520 2019-04-01 2019-06-30 0000917520 2018-01-01 2018-06-30 0000917520 2018-04-01 2018-06-30 0000917520 2019-06-30 0000917520 2018-12-31 0000917520 2017-12-31 0000917520 2018-06-30 0000917520 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000917520 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0000917520 us-gaap:TreasuryStockMember 2019-01-01 2019-03-31 0000917520 us-gaap:TreasuryStockMember 2019-06-30 0000917520 us-gaap:TreasuryStockMember 2019-03-31 0000917520 2019-01-01 2019-03-31 0000917520 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000917520 us-gaap:CommonStockMember 2019-03-31 0000917520 us-gaap:TreasuryStockMember 2018-12-31 0000917520 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000917520 us-gaap:TreasuryStockMember 2019-04-01 2019-06-30 0000917520 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0000917520 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0000917520 us-gaap:RetainedEarningsMember 2019-03-31 0000917520 us-gaap:CommonStockMember 2018-12-31 0000917520 us-gaap:RetainedEarningsMember 2019-06-30 0000917520 us-gaap:RetainedEarningsMember 2018-12-31 0000917520 2019-03-31 0000917520 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0000917520 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000917520 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000917520 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000917520 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0000917520 us-gaap:CommonStockMember 2019-06-30 0000917520 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0000917520 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000917520 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0000917520 2018-01-01 2018-03-31 0000917520 us-gaap:AccountingStandardsUpdate201409Member us-gaap:RetainedEarningsMember 2018-01-01 0000917520 us-gaap:CommonStockMember 2018-01-01 2018-03-31 0000917520 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000917520 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0000917520 us-gaap:TreasuryStockMember 2018-04-01 2018-06-30 0000917520 us-gaap:CommonStockMember 2018-03-31 0000917520 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000917520 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0000917520 us-gaap:CommonStockMember 2018-06-30 0000917520 us-gaap:TreasuryStockMember 2018-01-01 2018-03-31 0000917520 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0000917520 us-gaap:TreasuryStockMember 2017-12-31 0000917520 us-gaap:CommonStockMember 2017-12-31 0000917520 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000917520 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0000917520 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0000917520 us-gaap:TreasuryStockMember 2018-03-31 0000917520 us-gaap:RetainedEarningsMember 2018-06-30 0000917520 us-gaap:TreasuryStockMember 2018-06-30 0000917520 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000917520 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0000917520 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0000917520 us-gaap:AccountingStandardsUpdate201409Member 2018-01-01 0000917520 us-gaap:RetainedEarningsMember 2017-12-31 0000917520 2018-03-31 0000917520 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000917520 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000917520 us-gaap:RetainedEarningsMember 2018-03-31 0000917520 iart:PublicOfferingMember 2018-05-01 2018-05-31 0000917520 us-gaap:AccountingStandardsUpdate201602Member 2019-01-01 0000917520 iart:IntegratedShoulderCollaborationInc.Member us-gaap:LicensingAgreementsMember 2019-01-04 2019-01-04 0000917520 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-01-01 2018-06-30 0000917520 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-04-01 2018-06-30 0000917520 iart:NeurosurgeryMember iart:CodmanSpecialtySurgicalMember 2018-01-01 2018-06-30 0000917520 iart:ExtremityOrthopedicsMember iart:OrthopedicsandTissueTechnologiesMember 2019-01-01 2019-06-30 0000917520 iart:PrivateLabelMember iart:OrthopedicsandTissueTechnologiesMember 2019-01-01 2019-06-30 0000917520 iart:RegenerativeSkinAndWoundMember iart:OrthopedicsandTissueTechnologiesMember 2018-01-01 2018-06-30 0000917520 iart:RegenerativeSkinAndWoundMember iart:OrthopedicsandTissueTechnologiesMember 2018-04-01 2018-06-30 0000917520 iart:NeurosurgeryMember iart:CodmanSpecialtySurgicalMember 2019-04-01 2019-06-30 0000917520 iart:RegenerativeSkinAndWoundMember iart:OrthopedicsandTissueTechnologiesMember 2019-04-01 2019-06-30 0000917520 iart:InstrumentsMember iart:CodmanSpecialtySurgicalMember 2018-01-01 2018-06-30 0000917520 iart:PrivateLabelMember iart:OrthopedicsandTissueTechnologiesMember 2019-04-01 2019-06-30 0000917520 iart:PrivateLabelMember iart:OrthopedicsandTissueTechnologiesMember 2018-01-01 2018-06-30 0000917520 iart:OrthopedicsandTissueTechnologiesMember 2018-04-01 2018-06-30 0000917520 iart:PrivateLabelMember iart:OrthopedicsandTissueTechnologiesMember 2018-04-01 2018-06-30 0000917520 iart:CodmanSpecialtySurgicalMember 2019-01-01 2019-06-30 0000917520 iart:ExtremityOrthopedicsMember iart:OrthopedicsandTissueTechnologiesMember 2019-04-01 2019-06-30 0000917520 iart:ExtremityOrthopedicsMember iart:OrthopedicsandTissueTechnologiesMember 2018-04-01 2018-06-30 0000917520 iart:InstrumentsMember iart:CodmanSpecialtySurgicalMember 2018-04-01 2018-06-30 0000917520 iart:OrthopedicsandTissueTechnologiesMember 2019-04-01 2019-06-30 0000917520 iart:InstrumentsMember iart:CodmanSpecialtySurgicalMember 2019-01-01 2019-06-30 0000917520 iart:NeurosurgeryMember iart:CodmanSpecialtySurgicalMember 2018-04-01 2018-06-30 0000917520 iart:CodmanSpecialtySurgicalMember 2018-04-01 2018-06-30 0000917520 iart:InstrumentsMember iart:CodmanSpecialtySurgicalMember 2019-04-01 2019-06-30 0000917520 iart:ExtremityOrthopedicsMember iart:OrthopedicsandTissueTechnologiesMember 2018-01-01 2018-06-30 0000917520 iart:OrthopedicsandTissueTechnologiesMember 2018-01-01 2018-06-30 0000917520 iart:CodmanSpecialtySurgicalMember 2019-04-01 2019-06-30 0000917520 iart:RegenerativeSkinAndWoundMember iart:OrthopedicsandTissueTechnologiesMember 2019-01-01 2019-06-30 0000917520 iart:CodmanSpecialtySurgicalMember 2018-01-01 2018-06-30 0000917520 iart:NeurosurgeryMember iart:CodmanSpecialtySurgicalMember 2019-01-01 2019-06-30 0000917520 iart:OrthopedicsandTissueTechnologiesMember 2019-01-01 2019-06-30 0000917520 2019-07-01 2019-06-30 0000917520 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-01-01 0000917520 iart:PrivateLabelMember us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member us-gaap:TransferredOverTimeMember 2018-01-01 0000917520 srt:MaximumMember 2019-01-01 2019-06-30 0000917520 srt:MinimumMember 2019-01-01 2019-06-30 0000917520 iart:CodmanSpecialtySurgicalMember 2018-12-31 0000917520 iart:OrthopedicsandTissueTechnologiesMember 2019-06-30 0000917520 iart:CodmanSpecialtySurgicalMember 2019-06-30 0000917520 iart:OrthopedicsandTissueTechnologiesMember 2018-12-31 0000917520 iart:ContractManufacturingCustomerNotifiedByFDAToRemoveProductFromMarketMember iart:PrivateLabelMember us-gaap:CustomerRelationshipsMember 2019-04-01 2019-06-30 0000917520 iart:SupplierRelationShipsMember 2018-12-31 0000917520 us-gaap:CustomerRelationshipsMember 2018-01-01 2018-06-30 0000917520 iart:TrademarksBrandNamesMember 2018-01-01 2018-06-30 0000917520 iart:AllOtherMember 2018-12-31 0000917520 us-gaap:TradeNamesMember 2018-12-31 0000917520 iart:CompletedTechnologyMember 2018-12-31 0000917520 iart:AllOtherMember 2018-01-01 2018-06-30 0000917520 iart:TrademarksBrandNamesMember 2018-12-31 0000917520 us-gaap:CustomerRelationshipsMember 2018-12-31 0000917520 iart:SupplierRelationShipsMember 2018-01-01 2018-06-30 0000917520 iart:CompletedTechnologyMember 2018-01-01 2018-06-30 0000917520 iart:SupplierRelationShipsMember 2019-01-01 2019-06-30 0000917520 us-gaap:TradeNamesMember 2019-06-30 0000917520 iart:TrademarksBrandNamesMember 2019-06-30 0000917520 iart:CompletedTechnologyMember 2019-06-30 0000917520 iart:SupplierRelationShipsMember 2019-06-30 0000917520 us-gaap:CustomerRelationshipsMember 2019-01-01 2019-06-30 0000917520 us-gaap:CustomerRelationshipsMember 2019-06-30 0000917520 iart:AllOtherMember 2019-01-01 2019-06-30 0000917520 iart:CompletedTechnologyMember 2019-01-01 2019-06-30 0000917520 iart:AllOtherMember 2019-06-30 0000917520 iart:TrademarksBrandNamesMember 2019-01-01 2019-06-30 0000917520 us-gaap:StandbyLettersOfCreditMember 2018-05-03 0000917520 us-gaap:FairValueInputsLevel2Member 2019-06-30 0000917520 iart:SeniorCreditFacilityMember us-gaap:FederalFundsEffectiveSwapRateMember 2019-01-01 2019-06-30 0000917520 iart:SeniorCreditFacilityMember 2018-04-01 2018-06-30 0000917520 iart:SwinglineLoanMember 2018-05-03 0000917520 srt:MaximumMember iart:SeniorCreditFacilityMember 2019-01-01 2019-06-30 0000917520 us-gaap:StandbyLettersOfCreditMember iart:SeniorCreditFacilityMember 2019-06-30 0000917520 srt:MaximumMember iart:SeniorCreditFacilityMember us-gaap:EurodollarMember 2019-01-01 2019-06-30 0000917520 us-gaap:SecuredDebtMember iart:TermLoanAFacilityMember 2019-06-30 0000917520 us-gaap:RevolvingCreditFacilityMember 2018-12-31 0000917520 iart:SeniorCreditFacilityMember iart:OneMonthEurodollarRateMember 2019-01-01 2019-06-30 0000917520 us-gaap:SecuredDebtMember iart:TermLoanFacilityMember 2018-05-03 0000917520 srt:MinimumMember iart:SeniorCreditFacilityMember us-gaap:EurodollarMember 2019-01-01 2019-06-30 0000917520 us-gaap:RevolvingCreditFacilityMember 2019-06-30 0000917520 us-gaap:RevolvingCreditFacilityMember 2018-05-03 0000917520 us-gaap:SecuredDebtMember iart:TermLoanFacilityMember us-gaap:FairValueInputsLevel2Member 2019-06-30 0000917520 srt:MaximumMember iart:SeniorCreditFacilityMember us-gaap:PrimeRateMember 2019-01-01 2019-06-30 0000917520 srt:MinimumMember iart:SeniorCreditFacilityMember 2019-01-01 2019-06-30 0000917520 us-gaap:SecuredDebtMember iart:TermLoanAFacilityMember 2018-12-31 0000917520 srt:MinimumMember iart:SeniorCreditFacilityMember us-gaap:FederalFundsEffectiveSwapRateMember 2019-01-01 2019-06-30 0000917520 srt:MinimumMember iart:SeniorCreditFacilityMember us-gaap:PrimeRateMember 2019-01-01 2019-06-30 0000917520 iart:SecuredDebtCurrentMember us-gaap:SecuredDebtMember iart:TermLoanAFacilityMember 2019-06-30 0000917520 srt:MaximumMember iart:SeniorCreditFacilityMember us-gaap:FederalFundsEffectiveSwapRateMember 2019-01-01 2019-06-30 0000917520 2018-05-03 0000917520 us-gaap:RevolvingCreditFacilityMember us-gaap:FairValueInputsLevel2Member 2019-06-30 0000917520 srt:MaximumMember iart:SeniorCreditFacilityMember iart:OneMonthEurodollarRateMember 2019-01-01 2019-06-30 0000917520 iart:SeniorCreditFacilityMember 2018-06-30 0000917520 srt:MinimumMember iart:SeniorCreditFacilityMember iart:OneMonthEurodollarRateMember 2019-01-01 2019-06-30 0000917520 2018-10-01 2018-12-31 0000917520 us-gaap:StandbyLettersOfCreditMember iart:SeniorCreditFacilityMember 2018-12-31 0000917520 iart:DebtCovenantPeriod1Member iart:SeniorCreditFacilityMember 2019-06-30 0000917520 iart:DebtCovenantPeriod2Member iart:SeniorCreditFacilityMember 2019-06-30 0000917520 iart:DebtCovenantPeriod4Member iart:SeniorCreditFacilityMember 2019-06-30 0000917520 iart:DebtCovenantPeriod3Member iart:SeniorCreditFacilityMember 2019-06-30 0000917520 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 us-gaap:OtherLiabilitiesMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 us-gaap:OtherLiabilitiesMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 us-gaap:OtherAssetsMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 us-gaap:OtherLiabilitiesMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 us-gaap:OtherLiabilitiesMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 iart:AccruedExpensesAndOtherCurrentLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 us-gaap:OtherAssetsMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 iart:AccruedExpensesAndOtherCurrentLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 us-gaap:OtherLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 iart:SwapThreeMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 iart:SwapOneMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:LongMember 2019-06-30 0000917520 iart:SwapTwoMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ShortMember 2019-06-30 0000917520 iart:SwapThreeMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ShortMember 2019-06-30 0000917520 iart:SwapTwoMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:LongMember 2019-06-30 0000917520 iart:SwapOneMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ShortMember 2019-06-30 0000917520 iart:SwapTwoMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 iart:SwapOneMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 iart:SwapThreeMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:LongMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractOneMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 iart:CrossCurrencyInterestRateContractThreeMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:LongMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractFourMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:LongMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractOneMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ShortMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractThreeMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 iart:CrossCurrencyInterestRateContractFiveMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:LongMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractFourMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ShortMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractFiveMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractThreeMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractThreeMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ShortMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractTwoMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:LongMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractFiveMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 iart:CrossCurrencyInterestRateContractOneMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractOneMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:LongMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractTwoMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ShortMember 2019-06-30 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractFourMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 iart:CrossCurrencyInterestRateContractTwoMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractFiveMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ShortMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractFourMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 iart:CrossCurrencyInterestRateContractTwoMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestIncomeMember 2019-01-01 2019-06-30 0000917520 us-gaap:DesignatedAsHedgingInstrumentMember 2018-01-01 2018-06-30 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-03-31 0000917520 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestExpenseMember 2019-04-01 2019-06-30 0000917520 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestExpenseMember 2018-12-31 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-04-01 2019-06-30 0000917520 us-gaap:DesignatedAsHedgingInstrumentMember 2019-04-01 2019-06-30 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-12-31 0000917520 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestIncomeMember 2019-04-01 2019-06-30 0000917520 us-gaap:DesignatedAsHedgingInstrumentMember 2019-01-01 2019-06-30 0000917520 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestExpenseMember 2019-06-30 0000917520 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestExpenseMember 2018-06-30 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-04-01 2018-06-30 0000917520 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestExpenseMember 2018-01-01 2018-06-30 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-06-30 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-01-01 2019-06-30 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestIncomeMember 2019-06-30 0000917520 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestExpenseMember 2018-04-01 2018-06-30 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-01-01 2018-06-30 0000917520 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestExpenseMember 2018-03-31 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestIncomeMember 2018-12-31 0000917520 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-03-31 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherNonoperatingIncomeExpenseMember 2017-12-31 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-06-30 0000917520 us-gaap:DesignatedAsHedgingInstrumentMember 2018-04-01 2018-06-30 0000917520 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestExpenseMember 2019-03-31 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestIncomeMember 2019-03-31 0000917520 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000917520 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestExpenseMember 2019-01-01 2019-06-30 0000917520 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:InterestExpenseMember 2017-12-31 0000917520 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000917520 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-01-01 2019-06-30 0000917520 iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember 2018-01-01 2018-06-30 0000917520 iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-04-01 2018-06-30 0000917520 iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember 2019-01-01 2019-06-30 0000917520 iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:OtherNonoperatingIncomeExpenseMember 2018-01-01 2018-06-30 0000917520 iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:LongMember 2017-10-02 0000917520 iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:ShortMember 2017-10-02 0000917520 iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember 2019-06-30 0000917520 us-gaap:InterestRateSwapMember 2019-06-30 0000917520 iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-01-01 2019-06-30 0000917520 iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember 2019-04-01 2019-06-30 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-04-01 2019-06-30 0000917520 iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember 2018-04-01 2018-06-30 0000917520 iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-01-01 2019-06-30 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-04-01 2019-06-30 0000917520 iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-04-01 2019-06-30 0000917520 us-gaap:CrossCurrencyInterestRateContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-01-01 2019-06-30 0000917520 iart:InterestRateSwapDesignatedFebruary62017Tranche2Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedOctober102018Tranche1Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedOctober102018Tranche2Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedJune222016Tranche1Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:ThreeMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedJuly122016Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedDecember132017Tranche3Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedFebruary62017Tranche1Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:ThreeMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedDecember132017Tranche4Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedDecember182018Tranche1Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2018-12-31 0000917520 iart:InterestRateSwapDesignatedOctober102018Tranche3Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2018-12-31 0000917520 iart:InterestRateSwapDesignatedDecember182018Tranche1Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedDecember132017Tranche2Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedMarch272017Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedDecember182018Tranche2Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedOctober102018Tranche3Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedJune222016Tranche2Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:ThreeMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedMarch272017Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2018-12-31 0000917520 us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedJune222016Tranche1Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:ThreeMonthUSDLIBORMember 2018-12-31 0000917520 iart:InterestRateSwapDesignatedDecember132017Tranche1Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedDecember132017Tranche5Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2018-12-31 0000917520 iart:InterestRateSwapDesignatedDecember132017Tranche4Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2018-12-31 0000917520 iart:InterestRateSwapDesignatedJune222016Tranche2Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:ThreeMonthUSDLIBORMember 2018-12-31 0000917520 us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 iart:InterestRateSwapDesignatedOctober102018Tranche1Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2018-12-31 0000917520 iart:InterestRateSwapDesignatedOctober102018Tranche2Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2018-12-31 0000917520 iart:InterestRateSwapDesignatedFebruary62017Tranche2Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2018-12-31 0000917520 iart:InterestRateSwapDesignatedDecember132017Tranche5Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2019-06-30 0000917520 iart:InterestRateSwapDesignatedDecember132017Tranche1Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2018-12-31 0000917520 iart:InterestRateSwapDesignatedJuly122016Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2018-12-31 0000917520 iart:InterestRateSwapDesignatedDecember182018Tranche2Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2018-12-31 0000917520 iart:InterestRateSwapDesignatedDecember132017Tranche3Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2018-12-31 0000917520 iart:InterestRateSwapDesignatedDecember132017Tranche2Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:OneMonthUSDLIBORMember 2018-12-31 0000917520 iart:InterestRateSwapDesignatedFebruary62017Tranche1Member us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember iart:ThreeMonthUSDLIBORMember 2018-12-31 0000917520 iart:SwapOneMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:LongMember 2018-12-31 0000917520 iart:SwapThreeMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 iart:SwapThreeMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ShortMember 2018-12-31 0000917520 iart:SwapOneMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ShortMember 2018-12-31 0000917520 iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 iart:SwapTwoMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ShortMember 2018-12-31 0000917520 iart:SwapTwoMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:LongMember 2018-12-31 0000917520 iart:SwapOneMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 iart:SwapThreeMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:LongMember 2018-12-31 0000917520 iart:SwapTwoMember iart:CodmanMember us-gaap:CrossCurrencyInterestRateContractMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000917520 us-gaap:InterestRateSwapMember 2018-12-31 0000917520 srt:MaximumMember iart:DirectorsandCertainExecutiveOfficersMember us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0000917520 iart:PerformanceStockAndRestrictedStockAwardsMember 2019-01-01 2019-06-30 0000917520 iart:RestrictedStockAwardsAndUnitsMember 2019-01-01 2019-06-30 0000917520 us-gaap:PerformanceSharesMember 2019-01-01 2019-06-30 0000917520 iart:EmployeeMember us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0000917520 srt:MaximumMember us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0000917520 srt:DirectorMember us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0000917520 iart:RestrictedStockAwardsAndUnitsMember 2019-06-30 0000917520 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0000917520 us-gaap:EmployeeStockOptionMember 2019-06-30 0000917520 srt:MinimumMember iart:DirectorsandCertainExecutiveOfficersMember us-gaap:EmployeeStockOptionMember 2019-01-01 2019-06-30 0000917520 iart:ThirdPartiesMember 2019-06-30 0000917520 iart:RelatedPartiesMember 2019-06-30 0000917520 us-gaap:BuildingMember 2019-06-30 0000917520 us-gaap:VehiclesMember 2019-06-30 0000917520 iart:RelatedPartiesMember 2019-01-01 2019-06-30 0000917520 iart:RelatedPartiesMember iart:FiveYearOptionLeaseFromNovember12032ThroughOctober312037Member 2019-01-01 2019-06-30 0000917520 stpr:NJ 2019-06-30 0000917520 iart:RelatedPartiesMember iart:FiveYearOptionLeaseFromNovember12037ThroughOctober312042Member 2019-01-01 2019-06-30 0000917520 iart:RelatedPartiesMember 2018-01-01 2018-12-31 0000917520 stpr:NJ 2018-12-31 0000917520 2018-01-01 2018-12-31 0000917520 iart:ThirdPartiesMember 2018-12-31 0000917520 iart:RelatedPartiesMember 2018-12-31 0000917520 iart:RelatedPartiesMember 2018-01-01 2018-06-30 0000917520 2018-12-10 0000917520 2018-12-11 0000917520 us-gaap:ForeignCountryMember us-gaap:SwissFederalTaxAdministrationFTAMember 2019-01-01 2019-06-30 0000917520 iart:VestedPerformanceSharesandVestedRestrictedUnitsMember 2019-01-01 2019-06-30 0000917520 us-gaap:OtherExpenseMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-06-30 0000917520 us-gaap:InterestIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-06-30 0000917520 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-06-30 0000917520 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0000917520 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-06-30 0000917520 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-31 0000917520 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-06-30 0000917520 us-gaap:AccumulatedTranslationAdjustmentMember 2019-06-30 0000917520 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0000917520 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-06-30 0000917520 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-06-30 0000917520 us-gaap:OperatingSegmentsMember 2019-04-01 2019-06-30 0000917520 us-gaap:OperatingSegmentsMember iart:OrthopedicsandTissueTechnologiesMember 2018-01-01 2018-06-30 0000917520 us-gaap:CorporateNonSegmentMember 2018-01-01 2018-06-30 0000917520 us-gaap:OperatingSegmentsMember 2018-01-01 2018-06-30 0000917520 us-gaap:OperatingSegmentsMember iart:CodmanSpecialtySurgicalMember 2019-04-01 2019-06-30 0000917520 us-gaap:MaterialReconcilingItemsMember 2019-01-01 2019-06-30 0000917520 us-gaap:CorporateNonSegmentMember 2019-01-01 2019-06-30 0000917520 us-gaap:OperatingSegmentsMember iart:CodmanSpecialtySurgicalMember 2019-01-01 2019-06-30 0000917520 us-gaap:MaterialReconcilingItemsMember 2019-04-01 2019-06-30 0000917520 us-gaap:OperatingSegmentsMember 2018-04-01 2018-06-30 0000917520 us-gaap:OperatingSegmentsMember iart:CodmanSpecialtySurgicalMember 2018-04-01 2018-06-30 0000917520 us-gaap:OperatingSegmentsMember iart:CodmanSpecialtySurgicalMember 2018-01-01 2018-06-30 0000917520 us-gaap:MaterialReconcilingItemsMember 2018-04-01 2018-06-30 0000917520 us-gaap:CorporateNonSegmentMember 2019-04-01 2019-06-30 0000917520 us-gaap:CorporateNonSegmentMember 2018-04-01 2018-06-30 0000917520 us-gaap:OperatingSegmentsMember iart:OrthopedicsandTissueTechnologiesMember 2019-01-01 2019-06-30 0000917520 us-gaap:OperatingSegmentsMember iart:OrthopedicsandTissueTechnologiesMember 2019-04-01 2019-06-30 0000917520 us-gaap:OperatingSegmentsMember iart:OrthopedicsandTissueTechnologiesMember 2018-04-01 2018-06-30 0000917520 us-gaap:MaterialReconcilingItemsMember 2018-01-01 2018-06-30 0000917520 us-gaap:OperatingSegmentsMember 2019-01-01 2019-06-30 0000917520 country:US 2019-01-01 2019-06-30 0000917520 country:US 2018-01-01 2018-06-30 0000917520 srt:EuropeMember 2018-01-01 2018-06-30 0000917520 srt:AsiaPacificMember 2018-01-01 2018-06-30 0000917520 srt:AsiaPacificMember 2018-04-01 2018-06-30 0000917520 srt:AsiaPacificMember 2019-01-01 2019-06-30 0000917520 country:US 2018-04-01 2018-06-30 0000917520 iart:RestOfWorldMember 2018-04-01 2018-06-30 0000917520 srt:EuropeMember 2019-04-01 2019-06-30 0000917520 srt:EuropeMember 2019-01-01 2019-06-30 0000917520 srt:AsiaPacificMember 2019-04-01 2019-06-30 0000917520 iart:RestOfWorldMember 2018-01-01 2018-06-30 0000917520 iart:RestOfWorldMember 2019-01-01 2019-06-30 0000917520 srt:EuropeMember 2018-04-01 2018-06-30 0000917520 iart:RestOfWorldMember 2019-04-01 2019-06-30 0000917520 country:US 2019-04-01 2019-06-30 0000917520 us-gaap:OtherNoncurrentLiabilitiesMember iart:DermaSciencesMember us-gaap:FairValueInputsLevel3Member iart:ContingentConsiderationLiabilityMember 2019-06-30 0000917520 us-gaap:OtherNoncurrentLiabilitiesMember iart:DermaSciencesMember us-gaap:FairValueInputsLevel3Member iart:ContingentConsiderationLiabilityMember 2018-12-31 0000917520 us-gaap:OtherNoncurrentLiabilitiesMember iart:DermaSciencesMember us-gaap:FairValueInputsLevel3Member iart:ContingentConsiderationLiabilityMember 2018-06-30 0000917520 us-gaap:OtherNoncurrentLiabilitiesMember iart:DermaSciencesMember us-gaap:FairValueInputsLevel3Member iart:ContingentConsiderationLiabilityMember 2018-01-01 2018-06-30 0000917520 iart:AccruedExpensesAndOtherCurrentLiabilitiesMember iart:ConfluentSurgicalInc.Member us-gaap:FairValueInputsLevel3Member iart:ContingentConsiderationLiabilityMember 2018-06-30 0000917520 iart:AccruedExpensesAndOtherCurrentLiabilitiesMember iart:DermaSciencesMember us-gaap:FairValueInputsLevel3Member iart:ContingentConsiderationLiabilityMember 2017-12-31 0000917520 iart:AccruedExpensesAndOtherCurrentLiabilitiesMember iart:DermaSciencesMember us-gaap:FairValueInputsLevel3Member iart:ContingentConsiderationLiabilityMember 2018-01-01 2018-06-30 0000917520 us-gaap:OtherNoncurrentLiabilitiesMember iart:DermaSciencesMember us-gaap:FairValueInputsLevel3Member iart:ContingentConsiderationLiabilityMember 2017-12-31 0000917520 iart:AccruedExpensesAndOtherCurrentLiabilitiesMember iart:ConfluentSurgicalInc.Member us-gaap:FairValueInputsLevel3Member iart:ContingentConsiderationLiabilityMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-01-01 2018-06-30 0000917520 iart:AccruedExpensesAndOtherCurrentLiabilitiesMember iart:ConfluentSurgicalInc.Member us-gaap:FairValueInputsLevel3Member iart:ContingentConsiderationLiabilityMember 2017-12-31 0000917520 iart:AccruedExpensesAndOtherCurrentLiabilitiesMember iart:DermaSciencesMember us-gaap:FairValueInputsLevel3Member iart:ContingentConsiderationLiabilityMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-01-01 2018-06-30 0000917520 iart:AccruedExpensesAndOtherCurrentLiabilitiesMember iart:DermaSciencesMember us-gaap:FairValueInputsLevel3Member iart:ContingentConsiderationLiabilityMember 2018-06-30 0000917520 iart:AccruedExpensesAndOtherCurrentLiabilitiesMember iart:ConfluentSurgicalInc.Member us-gaap:FairValueInputsLevel3Member iart:ContingentConsiderationLiabilityMember 2018-01-01 2018-06-30 0000917520 us-gaap:OtherNoncurrentLiabilitiesMember iart:DermaSciencesMember us-gaap:FairValueInputsLevel3Member iart:ContingentConsiderationLiabilityMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-01-01 2018-06-30 0000917520 iart:DermaSciencesMember iart:MedihoneyEarnoutPaymentsMember 2017-02-24 0000917520 iart:ConfluentSurgicalInc.Member iart:ContingentConsiderationLiabilityMember us-gaap:MeasurementInputDiscountRateMember 2014-01-15 0000917520 iart:DermaSciencesMember iart:BioDEarnoutPaymentsMember 2017-02-24 0000917520 iart:DermaSciencesMember iart:MedihoneyEarnoutPaymentsMember 2019-06-30 0000917520 iart:DermaSciencesMember iart:BioDEarnoutPaymentsMember 2017-02-24 2017-02-24 0000917520 iart:DermaSciencesMember iart:BioDEarnoutPaymentsMember 2017-08-01 2017-08-31 0000917520 iart:ConfluentSurgicalInc.Member iart:CashConsiderationOneMember 2014-01-15 0000917520 iart:DermaSciencesMember iart:BioDEarnoutPaymentsMember us-gaap:MeasurementInputDiscountRateMember 2017-02-24 0000917520 iart:ConfluentSurgicalInc.Member 2014-01-15 0000917520 iart:ConfluentSurgicalInc.Member iart:CashConsiderationTwoMember 2014-01-15 0000917520 iart:DermaSciencesMember iart:ProductPaymentContingentConsiderationMember 2017-05-25 2017-05-25 0000917520 iart:ConfluentSurgicalInc.Member 2018-10-01 2018-10-31 0000917520 iart:DermaSciencesMember iart:MedihoneyEarnoutPaymentsMember us-gaap:MeasurementInputDiscountRateMember 2017-02-24 0000917520 iart:DermaSciencesMember iart:MedihoneyEarnoutPaymentsMember 2017-02-24 2017-02-24 0000917520 iart:DermaSciencesMember iart:BioDEarnoutPaymentsMember 2017-02-14 0000917520 iart:DermaSciencesMember iart:MedihoneyEarnoutPaymentsMember 2018-04-01 2018-06-30 0000917520 iart:ConfluentSurgicalInc.Member 2018-03-31 0000917520 iart:DermaSciencesMember iart:MedihoneyEarnoutPaymentsMember 2018-12-31 0000917520 iart:DermaSciencesMember iart:MedihoneyEarnoutPaymentsMember 2018-06-30 iso4217:GBP xbrli:pure iart:asset iso4217:CHF iso4217:EUR iso4217:USD xbrli:shares iso4217:USD xbrli:shares iart:renewal_option iart:plan iart:Segment iart:product
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 10-Q
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             
COMMISSION FILE NO. 0-26224
 
INTEGRA LIFESCIENCES HOLDINGS CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
 
Delaware
 
51-0317849
(STATE OR OTHER JURISDICTION OF
INCORPORATION OR ORGANIZATION)
 
(I.R.S. EMPLOYER
IDENTIFICATION NO.)
 
 
311 Enterprise Drive
 
08536
Plainsboro
,
New Jersey
 
(ZIP CODE)
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
 
Registrant's Telephone Number, Including Area Code: (609275-0500
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report:
Securities registered pursuant to Section 12(b) of the Act:
TITLE OF EACH CLASS
TRADING SYMBOL
NAME OF EACH EXCHANGE ON WHICH REGISTERED
COMMON STOCK
IART
NASDAQ
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
 
 
 
 
Non-accelerated filer
  
Smaller reporting company
 
 
 
 
Emerging growth company
 
 




If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes      No  
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.  Yes      No  
The number of shares of the registrant’s Common Stock, $0.01 par value, outstanding as of July 23, 2019 was 85,534,454.
INTEGRA LIFESCIENCES HOLDINGS CORPORATION
INDEX
 

 
Page
Number
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EX-101 INSTANCE DOCUMENT
 
EX-101 SCHEMA DOCUMENT
 
EX-101 CALCULATION LINKBASE DOCUMENT
 
EX-101 DEFINITION LINKBASE DOCUMENT
 
EX-101 LABELS LINKBASE DOCUMENT
 
EX-101 PRESENTATION LINKBASE DOCUMENT
 


Table of Contents




Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

INTEGRA LIFESCIENCES HOLDINGS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME
(UNAUDITED)
(In thousands, except per share amounts)
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Total revenue, net
$
383,645

 
$
366,190

 
$
743,335

 
$
723,272

Costs and expenses:
 
 
 
 
 
 

Cost of goods sold
143,671

 
137,565

 
272,583

 
281,787

Research and development
17,633

 
19,108

 
35,954

 
37,433

Selling, general and administrative
165,378

 
176,597

 
340,247

 
340,163

Intangible asset amortization
11,004

 
5,286

 
16,284

 
10,676

Total costs and expenses
337,686

 
338,556

 
665,068

 
670,059

Operating income
45,959

 
27,634

 
78,267

 
53,213

Interest income
2,710

 
174

 
5,138

 
250

Interest expense
(13,384
)
 
(17,504
)
 
(26,533
)
 
(36,272
)
Other income, net
1,098

 
2,427

 
4,334

 
4,672

Income before income taxes
36,383

 
12,731

 
61,206

 
21,863

Income tax expense (benefit)
6,647

 
1,355

 
(1,286
)
 
(505
)
Net income
$
29,736

 
$
11,376

 
$
62,492

 
$
22,368

 
 
 
 
 
 
 
 
Net income per share
 
 
 
 
 
 
 
Basic
$
0.35

 
$
0.14

 
$
0.73

 
$
0.28

Diluted
$
0.34

 
$
0.14

 
$
0.72

 
$
0.27

 
 
 
 
 
 
 
 
Weighted average common shares outstanding (See Note 13):
 
 
 
 
 
 
 
Basic
85,577

 
82,423

 
85,460

 
80,491

Diluted
86,257

 
83,513

 
86,407

 
81,702

Comprehensive income (See Note 14)
$
17,714

 
$
(12,269
)
 
$
39,235

 
$
21,401



The accompanying unaudited notes are an integral part of these condensed consolidated financial statements.

4

Table of Contents

INTEGRA LIFESCIENCES HOLDINGS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands, except per share amounts)
 
 
June 30, 2019
 
December 31, 2018
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
176,084

 
$
138,838

Trade accounts receivable, net of allowances of $4,394 and $3,719
296,507

 
265,737

Inventories, net
296,505

 
280,347

Prepaid expenses and other current assets
99,576

 
90,160

  Total current assets
868,672

 
775,082

Property, plant and equipment, net
316,445

 
300,112

Right of use asset - operating leases
97,783

 

Intangible assets, net
1,041,620

 
1,079,496

Goodwill
926,732

 
926,475

Deferred tax assets, net
22,438

 
6,805

Other assets
16,720

 
19,917

Total assets
$
3,290,410

 
$
3,107,887

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Current portion of borrowings under senior credit facility
$
45,000

 
$
22,500

Current portion of lease liability - operating leases
13,448

 

Accounts payable, trade
107,191

 
76,050

Contract liabilities
3,507

 
3,764

Accrued compensation
64,272

 
75,693

Accrued expenses and other current liabilities
81,693

 
84,545

  Total current liabilities
315,111

 
262,552

Long-term borrowings under senior credit facility
1,204,537

 
1,210,513

Long-term borrowings under securitization facility
102,400

 
121,200

Lease liability - operating leases
94,197

 

Deferred tax liabilities
53,086

 
57,778

Other liabilities
100,128

 
80,048

Total liabilities
1,869,459

 
1,732,091

Commitments and contingencies (Refer to Note 16)

 

Stockholders’ equity:
 
 
 
Preferred stock; no par value; 15,000 authorized shares; none outstanding

 

Common stock; $0.01 par value; 240,000 authorized shares; 88,351 and 88,044 issued at June 30, 2019 and December 31, 2018, respectively
883

 
880

Additional paid-in capital
1,198,010

 
1,192,601

Treasury stock, at cost; 2,869 shares and 2,881 shares at June 30, 2019 and December 31, 2018, respectively
(120,107
)
 
(120,615
)
Accumulated other comprehensive loss
(68,700
)
 
(45,443
)
Retained earnings
410,865

 
348,373

Total stockholders’ equity
1,420,951

 
1,375,796

Total liabilities and stockholders’ equity
$
3,290,410

 
$
3,107,887



The accompanying unaudited notes are an integral part of these condensed consolidated financial statements.

5

Table of Contents



INTEGRA LIFESCIENCES HOLDINGS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)
 
Six Months Ended June 30,
 
2019
 
2018
OPERATING ACTIVITIES:
 
 
 
Net income
$
62,492

 
$
22,368

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
53,985

 
54,002

Non-cash impairment charges
5,764

 

Deferred income tax
(9,077
)
 
(423
)
Amortization of debt issuance costs
2,713

 
3,657

Loss on disposal of property and equipment
611

 
127

Change in fair value of contingent consideration and other
10

 
914

Share-based compensation
9,859

 
10,214

Changes in assets and liabilities, net of business acquisitions:
 
 
 
Accounts receivable
(30,356
)
 
(8,420
)
Inventories
(21,558
)
 
(3,596
)
Prepaid expenses and other current assets
(14,806
)
 
(1,959
)
Other non-current assets
2,846

 
(436
)
Accounts payable, accrued expenses and other current liabilities
16,410

 
(3,405
)
Contract liabilities
(1,971
)
 
(91
)
Other non-current liabilities
1,086

 
4,792

Net cash provided by operating activities
78,008

 
77,744

INVESTING ACTIVITIES:
 
 
 
Purchases of property and equipment
(33,750
)
 
(35,387
)
Proceeds from note receivable
495

 
446

Proceeds from sale of property and equipment
35

 
205

Cash provided by business acquisitions

 
26,704

Net cash used in investing activities
(33,220
)
 
(8,032
)
FINANCING ACTIVITIES:
 
 
 
Proceeds from borrowings of long-term indebtedness
101,200

 
50,000

Payments on debt
(105,000
)
 
(415,000
)
Payment of debt issuance costs

 
(4,221
)
Proceeds from the issuance of common stock, net of issuance costs

 
349,599

Net cash paid for financing liabilities from business acquisitions

 
(33,843
)
Proceeds from exercised stock options
2,213

 
3,727

Cash taxes paid in net equity settlement
(6,212
)
 
(7,240
)
Net cash used in financing activities
(7,799
)
 
(56,978
)
Effect of exchange rate changes on cash and cash equivalents
257

 
(3,898
)
Net increase in cash and cash equivalents
37,246

 
8,836

Cash and cash equivalents at beginning of period
138,838

 
174,935

Cash and cash equivalents at end of period
$
176,084

 
$
183,771


The accompanying unaudited notes are an integral part of these condensed consolidated financial statements.

6

Table of Contents

INTEGRA LIFESCIENCES HOLDINGS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
(UNAUDITED)
(In thousands)

 
Six Months Ended June 30, 2019
 
Common Stock
 
Treasury Stock
 
Additional Paid-In Capital
 
Accumulated Other Comprehensive Income (Loss)
 
Retained Earnings
 
Total Equity
Shares
 
Amount
Shares
 
Amount
 
(In thousands)
Balance, December 31, 2018
88,044

 
$
880

 
(2,881
)
 
$
(120,615
)
 
$
1,192,601

 
$
(45,443
)
 
$
348,373

 
$
1,375,796

Net income

 

 

 

 

 

 
32,756

 
32,756

Other comprehensive income (loss), net of tax

 

 

 

 

 
(11,236
)
 

 
(11,236
)
Issuance of common stock through employee stock purchase plan
17

 

 

 

 
716

 

 

 
716

Issuance of common stock for vesting of share based awards, net of shares withheld for taxes
243

 
2

 
12

 
506

 
(5,629
)
 

 

 
(5,121
)
Share-based compensation

 

 

 

 
4,119

 

 

 
4,119

Balance, March 31, 2019
88,304

 
$
882

 
(2,869
)
 
$
(120,109
)
 
$
1,191,807

 
$
(56,679
)
 
$
381,129

 
$
1,397,030

Net income

 

 

 

 

 

 
29,736

 
29,736

Other comprehensive income (loss), net of tax

 

 

 

 

 
(12,021
)
 

 
(12,021
)
Issuance of common stock for vesting of share based awards, net of shares withheld for taxes
47

 
1

 

 
2

 
405

 

 

 
408

Share-based compensation

 

 

 

 
5,798

 

 

 
5,798

Balance, June 30, 2019
88,351

 
$
883

 
(2,869
)
 
$
(120,107
)
 
$
1,198,010

 
$
(68,700
)
 
$
410,865

 
$
1,420,951



The accompanying unaudited notes are an integral part of these condensed consolidated financial statements.


7

Table of Contents



INTEGRA LIFESCIENCES HOLDINGS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
(UNAUDITED)
(In thousands)

 
Six Months Ended June 30, 2018
 
Common Stock
 
Treasury Stock
 
Additional Paid-In Capital
 
Accumulated Other Comprehensive Income (Loss)
 
Retained Earnings
 
Total Equity
Shares
 
Amount
Shares
 
Amount
 
(In thousands)
Balance, December 31, 2017
81,306

 
$
813

 
(2,927
)
 
$
(121,644
)
 
$
821,758

 
$
(23,807
)
 
$
285,186

 
$
962,306

Net income

 

 

 

 

 

 
10,992

 
10,992

Adoption of Update No. 2014-09

 

 

 

 

 

 
1,854

 
1,854

Other comprehensive income (loss), net of tax

 

 

 

 

 
22,144

 
(532
)
 
21,612

Issuance of common stock
297

 
3

 

 

 
3,107

 

 

 
3,110

Issuance of common stock through employee stock purchase plan

 

 

 

 
553

 

 

 
553

Issuance of common stock for vesting of share based awards, net of shares withheld for taxes
108

 
1

 
37

 
910

 
(7,643
)
 

 

 
(6,732
)
Share-based compensation

 

 

 

 
4,745

 

 

 
4,745

Balance, March 31, 2018
81,711

 
$
817

 
(2,890
)
 
$
(120,734
)
 
$
822,520

 
$
(1,663
)
 
$
297,500

 
$
998,440

Net income

 

 

 

 

 

 
11,376

 
11,376

Other comprehensive income (loss), net of tax

 

 

 

 

 
(23,643
)
 
1,065

 
(22,578
)
Issuance of common stock
39

 

 

 

 
65

 

 

 
65

Issuance of common stock for vesting of share based awards, net of shares withheld for taxes
(16
)
 

 

 
2

 
(469
)
 

 

 
(467
)
Equity offering
6,038

 
60

 

 

 
349,538

 

 

 
349,598

Share-based compensation

 

 

 

 
5,471

 

 

 
5,471

Balance, June 30, 2018
87,772

 
$
877

 
(2,890
)
 
$
(120,732
)
 
$
1,177,125

 
$
(25,306
)
 
$
309,941

 
$
1,341,905



The accompanying unaudited notes are an integral part of these condensed consolidated financial statements.


8

Table of Contents

INTEGRA LIFESCIENCES HOLDINGS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. BASIS OF PRESENTATION
General
The terms “we,” “our,” “us,” “Company” and “Integra” refer to Integra LifeSciences Holdings Corporation, a Delaware corporation, and its subsidiaries unless the context suggests otherwise.
In the opinion of management, the June 30, 2019 unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the financial position, results of operations and cash flows of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K. The December 31, 2018 consolidated balance sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. Operating results for the three and six month period ended June 30, 2019 are not necessarily indicative of the results to be expected for the entire year.
The preparation of consolidated financial statements is in conformity with generally accepted accounting principles in the United States ("GAAP") which requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent liabilities, and the reported amounts of revenues and expenses. Significant estimates affecting amounts reported or disclosed in the consolidated financial statements include allowances for doubtful accounts receivable and sales returns and allowances, net realizable value of inventories, valuation of intangible assets including amortization periods for acquired intangible assets, discount rates and estimated projected cash flows used to value and test impairments of long-lived assets and goodwill, estimates of projected cash flows and depreciation and amortization periods for long-lived assets, computation of taxes, valuation allowances recorded against deferred tax assets, the valuation of stock-based compensation, valuation of derivative instruments, valuation of pension assets and liabilities, valuation of contingent liabilities, the fair value of debt instruments and loss contingencies. These estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the current circumstances. Actual results could differ from these estimates.
Equity Offering
In May 2018, the Company commenced and closed on a public offering of common stock. The Company issued 6.0 million shares of common stock and received total proceeds, net of underwriting fees and offering expenses, of approximately $349.6 million. The net proceeds from the offering were used to reduce outstanding borrowings under the revolving credit portion of the Company's Senior Credit Facility.
Recently Issued Accounting Standards
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (the New Lease Standard). The New Lease Standard requires that lessees recognize virtually all of its leases on the balance sheet by recording a right-of-use asset and lease liability (other than leases that meet the definition of a "short-term lease"). This update became effective for all annual periods and interim reporting periods beginning after December 15, 2018.
The Company adopted the New Lease Standard as of January 1, 2019 using a modified retrospective transition. Under this method, financial results reported in periods prior to January 1, 2019 are unchanged. The Company elected the ‘package of practical expedients’ which permits us not to reassess our prior conclusions about lease identification, lease classification and initial direct costs under the new standard. The Company also elected the use-of-hindsight practical expedient. As most of the leases do not provide an implicit rate, the Company used our collateralized incremental borrowing rate based on the information available at the lease implementation date in determining the present value of the lease payments. The adoption of the New Lease Standard had an initial impact on the consolidated balance sheet due to the recognition of $76.4 million of lease liabilities with corresponding right-of-use assets ("ROU") of $67.3 million for operating leases. The difference between lease liabilities and right-of-use assets is primarily attributed to unamortized lease incentives which will be amortized over the term of each respective lease.
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets including trade receivables held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. The ASU is effective for

9

INTEGRA LIFESCIENCES HOLDINGS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company is evaluating the impact, if any, that this pronouncement will have on our financial position and results of operations.
In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans. The new guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans, including removing certain previous disclosure requirements, adding certain new disclosure requirements, and clarifying certain other disclosure requirements. The ASU will be effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. The adoption is not expected to have a material impact on the Condensed and Consolidated Financial Statements.
In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), relating to a customer's accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by a vendor (e.g., a service contract). Under the new guidance, a customer will apply the same criteria for capitalizing implementation costs as it would for an arrangement that has a software license. The new guidance also prescribes the balance sheet, income statement, and cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application is permitted. The Company can choose to adopt the new guidance (1) prospectively to eligible costs incurred on or after the date this guidance is first applied or (2) retrospectively. The Company is evaluating the impact, if any, that this pronouncement will have on our financial position and results of operations.
There are no other recently issued accounting pronouncements that are expected to have any significant effect on the Company's financial position, results of operations or cash flows.
2. BUSINESS DEVELOPMENT
Integrated Shoulder Collaboration, Inc.
On January 4, 2019, the Company entered into a licensing agreement with Integrated Shoulder Collaboration, Inc ("ISC"). Under the terms of the agreement, the Company paid ISC $1.7 million for the exclusive, worldwide license to commercialize its short stem and stemless shoulder system. A patent related to short stem and stemless shoulder systems was issued to ISC during the first quarter of 2019. ISC is eligible to receive royalties on sales of the short stem and stemless shoulder system. The Company has the option to acquire ISC at a date four years subsequent to the first commercial sale, which becomes mandatory upon the achievement of a certain sales thresholds of the short stem and stemless shoulder system, for an amount not to exceed $80.0 million. The transaction was accounted for as an asset acquisition as the Company concluded that it acquired primarily one asset. The total upfront payment of $1.7 million was expensed as a component of research and development expense and the future milestone and option payments will be recorded if the corresponding events become probable.
3. REVENUES FROM CONTRACTS WITH CUSTOMERS
Summary of Accounting Policies on Revenue Recognition
Revenue is recognized upon the transfer of control of promised products or services to the customers in an amount that reflects the consideration the Company expects to receive in exchange for those products and services.
Total revenue, net, includes product sales, product royalties and other revenues, such as fees received for services.
For products shipped with FOB shipping point terms, the control of the product passes to the customer at the time of shipment. For shipments in which the control of the product is transferred when the customer receives the product, the Company recognizes revenue upon receipt by the customer. Certain products that the Company produces for private label customers have no alternative use and the Company has a right of payment for performance to date. Revenues from those products are recognized over the period that the Company manufactures these products, which is typically one to three months. The Company uses the input method to measure the manufacturing activities completed to date, which depicts the progress of the Company's performance obligation of transferring control of goods being manufactured for private label customers.
A portion of the Company's product revenue is generated from consigned inventory maintained at hospitals and distributors, and also from inventory physically held by field sales representatives. For these types of product sales, the Company retains control until the product has been used or implanted, at which time revenue is recognized.   
Revenues from sale of products and services are evidenced by either a contract with the customer or a valid purchase order and an invoice which includes all relevant terms of sale. For product sales, invoices are generally issued upon the transfer of control (or upon the completion of the manufacturing in the case of the private label transactions recognized over time) and are typically payable thirty days after the invoice date. The Company performs a review of each specific customer's creditworthiness and ability

10

INTEGRA LIFESCIENCES HOLDINGS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

to pay prior to acceptance as a customer. Further, the Company performs periodic reviews of its customers' creditworthiness prospectively.
Performance Obligations
The Company's performance obligations consist mainly of transferring control of goods and services identified in the contracts, purchase orders, or invoices. The Company has no significant multi-element contracts with customers.
Significant Judgments
Usage-based royalties and licenses are estimated based on the provisions of contracts with customers and recognized in the same period that the royalty-based products are sold by the Company's strategic partners. The Company estimates and recognizes royalty revenue based upon communication with licensees, historical information, and expected sales trends. Differences between actual reported licensee sales and those that were estimated are adjusted in the period in which they become known, which is typically the following quarter. Historically, such adjustments have not been significant.
The Company estimates returns, price concessions, and discount allowances using the expected value method based on historical trends and other known factors. Rebate allowances are estimated using the most likely method based on each customer contract.
The Company's return policy, as set forth in its product catalogs and sales invoices, requires review and authorization in advance prior to the return of product. Upon the authorization, a credit will be issued for the goods returned within a set amount of days from the shipment, which is generally ninety days.
The Company disregards the effects of a financing component if the Company expects, at contract inception, that the period between the transfer and customer payment for the goods or services will be one year or less. The Company has no significant revenues recognized on payments expected to be received more than one year after the transfer of control of products or services to customers.
Contract Asset and Liability
Revenues recognized from the Company's private label business that are not invoiced to the customers as a result of recognizing revenue over time are recorded as a contract asset included in the prepaid expenses and other current assets account in the consolidated balance sheet.
Other operating revenues may include fees received under service agreements. Non-refundable fees received under multiple-period service agreements are recognized as revenue as the Company satisfies the performance obligations to the other party. A portion of the transaction price allocated to the performance obligations to be satisfied in the future periods is recognized as contract liability.
The following table summarizes the changes in the contract asset and liability balances for the six months ended June 30, 2019:
Contract Asset
 
Contract asset, January 1, 2019
$
4,193

Transferred to trade receivable of contract asset included
     in beginning of the year contract asset
(4,193
)
Contract asset, net of transferred to trade receivables on contracts during the period
8,185

Contract asset, June 30, 2019
$
8,185

 
 
Contract Liability
 
Contract liability, January 1, 2019
$
12,716

Recognition of revenue included in beginning of year contract liability
(3,665
)
Contract liability, net of revenue recognized on contracts during the period
1,509

Contract liability, June 30, 2019
$
10,560


At June 30, 2019, the short-term portion of the contract liability of $3.5 million and the long-term portion of $7.1 million were included in accrued expenses and other current liabilities and other liabilities in the consolidated balance sheet.
As of June 30, 2019, the Company is expected to recognize approximately 46.0% of our unsatisfied (or partially unsatisfied) performance obligations as revenue through 2020, with the remaining balance to be recognized in 2021 and thereafter.
Shipping and Handling Fees
The Company elected to account for shipping and handling activities as a fulfillment cost rather than a separate performance obligation. Amounts billed to customers for shipping and handling are included as part of the transaction price and recognized as

11

INTEGRA LIFESCIENCES HOLDINGS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

revenue when control of underlying products is transferred to the customer. The related shipping and freight charges incurred by the Company are included in the cost of goods sold.


12

INTEGRA LIFESCIENCES HOLDINGS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

Product Warranties
Certain of the Company's medical devices, including monitoring systems and neurosurgical systems, are designed to operate over long periods of time. These products are sold with warranties which may extend for up to two years from the date of purchase. The warranties are not considered a separate performance obligation. The Company estimates its product warranties using the expected value method based on historical trends and other known factors. The Company includes them in accrued expenses and other current liabilities in the consolidated balance sheet.
Taxes Collected from Customers
The Company elected to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer.
Disaggregated Revenue
The following table presents revenues disaggregated by the major sources of revenues for the three and six months ended June 30, 2019 and 2018 (amounts in thousands):
 
Three Months Ended June 30, 2019
Three Months Ended June 30, 2018
 
Six Months Ended June 30, 2019
Six Months Ended June 30, 2018
 
(amounts in thousands)
Neurosurgery
$
177,411

$
170,589

 
$
343,826

$
337,487

Precision Tools and Instruments
71,847

68,915

 
140,000

138,132

Total Codman Specialty Surgical
249,258

239,504

 
483,826

475,619

 
 
 
 
 
 
Wound Reconstruction and Care
82,282

78,311

 
157,245

150,598

Extremity Orthopedics
21,762

22,017

 
44,447

44,652

Private Label
30,343

26,358

 
57,817

52,403

Total Orthopedics and Tissue Technologies
134,387

126,686

 
259,509

247,653

Total revenue
$
383,645

$
366,190

 
$
743,335

$
723,272


Prior period amounts were reclassified between categories within the Orthopedics and Tissue Technologies segment to conform to the current period presentation.
See Note 15, Segment and Geographical Information, for details of revenues based on the location of the customer.
Effect of Adoption of ASC Topic 606
On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to all contracts which were not completed as of January 1, 2018. Results of operations for the reporting periods after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with Topic 605, Revenue Recognition.
The adoption of Topic 606 resulted in an increase to the opening retained earnings of $1.9 million, which was recorded net of taxes as of January 1, 2018 to reflect the change in timing of the recognition of revenue related to the Company's private label business from point in time to over time during the manufacturing process and goods in transit for which control was transferred to customers at the time of shipment. The total assets and liabilities increased by $7.1 million and $5.2 million, respectively, as of January 1, 2018.
The impact of adoption in the year of implementation of Topic 606 to the Company's consolidated statement of operations for the three and six months ended June 30, 2018 was as follows:

13

INTEGRA LIFESCIENCES HOLDINGS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

 
Three Months Ended June 30, 2018
Six Months Ended June 30, 2018
 
As Reported
Excluding Impact of Topic 606
As Reported
Excluding Impact of Topic 606
 
(Amounts in thousands)
Statement of Operations
 
 
 
 
Total revenue, net
$
366,190

$
363,381

$
723,272

$
719,420

Cost of goods sold
137,565

137,032

281,787

281,051

Income tax benefit
1,355

853

(505
)
(1,135
)
Net income
11,376

9,603

22,368

19,882



4. INVENTORIES
Inventories, net consisted of the following:
 
June 30, 2019
 
December 31, 2018
 
(In thousands)
Finished goods
$
189,737

 
$
179,885

Work in process
48,986

 
47,715

Raw materials
57,782

 
52,747

 
$
296,505

 
$
280,347



5. GOODWILL AND OTHER INTANGIBLE ASSETS
Changes in the carrying amount of goodwill for the six-month period ended June 30, 2019 were as follows:
 
Codman Specialty
Surgical
 
Orthopedics and
Tissue Technologies
 
Total
 
(In thousands)
Goodwill at December 31, 2018
$
625,760

 
$
300,715

 
$
926,475

Foreign currency translation
174

 
83

 
257

Goodwill at June 30, 2019
$
625,934

 
$
300,798

 
$
926,732


The components of the Company’s identifiable intangible assets were as follows:
 
June 30, 2019
 
Weighted
Average
Life
 
Cost
 
Accumulated
Amortization
 
Net
 
(Dollars in thousands)
Completed technology
19 years
 
$
856,730

 
$
(190,219
)
 
$
666,511

Customer relationships
13 years
 
222,784

 
(111,617
)
 
111,167

Trademarks/brand names
28 years
 
104,041

 
(26,688
)
 
77,353

Codman trade name
Indefinite
 
162,466

 

 
162,466

Supplier relationships
27 years
 
34,721

 
(17,233
)
 
17,488

All other
4 years
 
10,913

 
(4,278
)
 
6,635

 
 
 
$
1,391,655

 
$
(350,035
)
 
$
1,041,620



14

INTEGRA LIFESCIENCES HOLDINGS CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

 
December 31, 2018
 
Weighted
Average
Life
 
Cost
 
Accumulated
Amortization
 
Net
 
(Dollars in thousands)
Completed technology
19 years
 
$
855,679

 
$
(167,384
)
 
$
688,295

Customer relationships
13 years
 
231,448

 
(106,859
)
 
124,589

Trademarks/brand names
28 years
 
104,061

 
(24,764
)