View Filing Data

Net loss (income) allocated to participating securities

$ (681)

$ (134)

$ 2,832

$ (297)

$ (776)

$ 1,565

$ 226

$ (3,855)

$ (3,007)

$ 1,325

$ 3,163

$ 2,223

$ 1,720

$ (2,840)

$ 3,704

(12)

(63)

Net income (loss) allocated to common shareholders

$ 1,708

$ (2,813)

$ 3,641

Basic weighted-average common shares outstanding

37,118

36,412

33,008

Basic income (loss) per common share

$ 0.05

$ (0.08)

$ 0.11

Diluted (loss) income per common share

Net (income) loss allocated to participating securities

$ (681)

$ (134)

$ 2,832

$ (297)

$ (776)

$ 1,565

$ 226

$ (3,855)

$ (3,007)

$ 1,325

$ 3,163

$ 2,223

$ 1,720

$ (2,840)

$ 3,704

(12)

(61)

Net income (loss) allocated to common shareholders

$ 1,708

$ (2,813)

$ 3,643

Basic weighted-average common shares outstanding

37,118

36,412

33,008

Effect of dilutive stock options and awards

742

1,155

Diluted weighted-average common shares outstanding

37,860

36,412

34,163

Diluted income (loss) per common share

$ (0.02)

$ 0.00

$ 0.07

$ (0.01)

$ (0.02)

$ 0.04

$ 0.01

$ (0.11)

$ (0.09)

$ 0.04

$ 0.09

$ 0.06

$ 0.05

^[2]

$ (0.08)

^[2]

$ 0.11

^[2]

[1]

In December 2017 we completed our acquisition of JOTEC, which is operated as a wholly-owned subsidiary of CryoLife.

[2]

We excluded stock options from the calculation of diluted weighted-average common shares outstanding if the per share value, including the sum of (i) the exercise price of the options and (ii) the amount of the compensation cost attributed to future services and not yet recognized, was greater than the average market price of the shares, because the inclusion of these stock options would be antidilutive to (loss) income per common share. For the year ended December 31, 2018 all stock options and awards were excluded from the calculation of weighted-average common shares outstanding as these would be antidilutive to the net loss. For the years ended December 31, 2019 and 2017 stock options to purchase 131,000 and 227,000 shares, respectively, were excluded from the calculation of diluted weighted-average common shares outstanding.

Stock Compensation (Schedule Of Stock Grant Activity For PSAs) (Details) - Performance Stock Awards (PSAs) [Member] - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Unvested, Beginning Balance, Shares			250,000
Granted, Shares
Vested, Shares			(250,000)
Forfeited, Shares
Unvested, Ending Balance, Shares
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value			$ 10.18
Granted, Weighted Average Grant Date Fair Value
Vested, Weighted Average Grant Date Fair Value			10.18
Forfeited, Weighted Average Grant Date Fair Value
Unvested, Ending Balance, Weighted Average Grant Date Fair Value

Goodwill And Other Intangible Assets (Narrative) (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Impairment of indefinite lived intangible assets		$ 0	$ 0
E-nside European Business In-Process R&D To Defined Lived Intangible Assets [Member]
Reclassification	$ 7,400,000
In Process R&D [Member]
Useful life of amortizable assets, years		20 years

Leases (Schedule Of Supplemental Cash Flow Information Related To Leases) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Leases [Abstract]
Operating cash flows for finance leases	$ 124
Operating cash flows for operating leases	6,827
Financing cash flows for finance leases	$ 728

Segment And Geographic Information

12 Months Ended

Dec. 31, 2019

Segment And Geographic Information [Abstract]

Segment And Geographic Information

18. Segment and Geographic Information

We have two reportable segments organized according to our products and services: Medical Devices and Preservation Services. The Medical Devices segment includes external revenues from product sales of BioGlue, JOTEC products, On-X products,

CardioGenesis cardiac laser therapy, PerClot and PhotoFix. The Preservation Services segment includes external services revenues from the preservation of cardiac and vascular tissues. There are no intersegment revenues.

The primary measure of segment performance, as viewed by our management, is segment gross margin, or net external revenues less cost of products and preservation services. We do not segregate assets by segment; therefore, asset information is excluded from the segment disclosures below.

The following table summarizes revenues, cost of products and preservation services, and gross margins for our operating segments (in thousands):


	2019		2018		2017
Revenues:
Medical devices	$	197,246	$	187,394	$	119,631
Preservation services		78,976		75,447		70,071
Total revenues		276,222		262,841		189,702

Cost of products and preservation services:
Medical devices		55,022		53,772		29,798
Preservation services		38,187		36,085		31,262
Total cost of products and preservation services		93,209		89,857		61,060

Gross margin:
Medical devices		142,224		133,622		89,833
Preservation services		40,789		39,362		38,809
Total gross margin	$	183,013	$	172,984	$	128,642

Net revenues by product for the years ended December 31, 2019, 2018, and 2017 were as follows (in thousands):


	2019		2018		2017
Products:
BioGlue	$	68,611	$	66,660	$	65,939
JOTEC		64,974		63,341		4,136
On-X		50,096		44,832		37,041
CardioGenesis cardiac laser therapy		6,016		6,217		6,866
PerClot		3,795		3,767		3,533
PhotoFix		3,754		2,577		2,116
Total products		197,246		187,394		119,631

Preservation services:
Cardiac tissue		40,879		35,683		32,510
Vascular tissue		38,097		39,764		37,561
Total preservation services		78,976		75,447		70,071

Total revenues	$	276,222	$	262,841	$	189,702

Net revenues by geographic location attributed to countries based on the location of the customer for the years ended December 31, 2019, 2018, and 2017 were as follows (in thousands):


	2019		2018		2017
U.S.	$	150,553	$	144,651	$	135,102
International		125,669		118,190		54,600
Total revenues	$	276,222	$	262,841	$	189,702

For the years ended December 31, 2019 and 2018, revenues attributed to customers in Germany accounted for 10% of total revenues as a result of the acquisition of JOTEC in December 2017. During December 31, 2017 revenues attributed to customers in any individual country outside the U.S. were 10% or less of total revenues.

At December 31, 2019 and 2018, 57% of our long-lived assets were held in the U.S., where the corporate headquarters and a portion of our manufacturing facilities are located. Our long-lived international assets were $14.1 million as of December 31, 2019, of which 97% were located in Hechingen, Germany. Our long-lived international assets were $13.1 million as of December 31, 2018, of which 98% were located in Hechingen, Germany. At December 31, 2019 and 2018, $186.7 million and $188.8 million, respectively, of our goodwill was allocated entirely to our Medical Devices segment.

Acquisition Of JOTEC (Narrative) (Details) - USD ($) $ in Thousands		12 Months Ended
	Dec. 01, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Total consideration	$ 222,200
Term loan balance		$ 223,176	$ 225,953
Cash consideration				$ 409
JOTEC [Member]
Business Acquisition [Line Items]
Agreement date		Dec. 01, 2017
Acquisition price	225,000
Cash consideration	$ 169,100
Transaction and integration costs		$ 1,000	$ 7,400	$ 7,700
JOTEC [Member] \| Common Stock [Member]
Business Acquisition [Line Items]
Common shares issued	2,682,754
Common stock value issued in business combination	$ 53,100
Term Loan [Member]
Business Acquisition [Line Items]
Term loan balance	225,000
Term Loan [Member] \| JOTEC [Member]
Business Acquisition [Line Items]
Term loan balance	225,000
Secured Debt [Member]
Business Acquisition [Line Items]
Credit facility aggregate commitments	255,000
Secured Debt [Member] \| JOTEC [Member]
Business Acquisition [Line Items]
Credit facility aggregate commitments	255,000
Revolving Credit Facility [Member]
Business Acquisition [Line Items]
Credit facility aggregate commitments	30,000
Revolving Credit Facility [Member] \| JOTEC [Member]
Business Acquisition [Line Items]
Credit facility aggregate commitments	$ 30,000

Leases (Schedule Of Supplemental Balance Sheet Information Related To Leases) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Mar. 08, 2019	Jan. 01, 2019	Dec. 31, 2018
Leases [Abstract]
Operating lease right-of-use assets	$ 27,007
Accumulated amortization	(5,013)
Operating lease right-of-use assets, net	21,994
Current maturities of operating leases	5,487
Non-current maturities of operating lease	17,918
Total operating lease liabilities	23,405
Finance leases, Property and equipment, at cost	7,161			$ 7,674
Finance leases, Accumulated amortization	(1,279)			882
Finance leases, property and equipment, net	5,882			6,792
Current maturities of finance leases	597			729
Non-current maturities of finance leases	5,415			$ 5,937
Total finance lease liabilities	$ 6,012
Weighted average remaining lease term (in years): Operating leases	5 years 6 months		6 years
Weighted average remaining lease term (in years): Finance leases	10 years 7 months 6 days
Weighted average discount rate: Operating leases	5.40%	5.83%	5.50%
Weighted average discount rate: Finance leases	2.00%

Transactions With Related Parties

12 Months Ended

Dec. 31, 2019

Transactions With Related Parties [Abstract]

Transactions With Related Parties

17. Transactions with Related Parties

A member of our Board of Directors and a shareholder of the Company, who retired from the Board of Directors during 2018, was the former Chief of Thoracic Surgery of a university hospital that generated product and preservation services revenues of $499,000, $443,000, and $133,000 for us in 2019, 2018, and 2017, respectively. Additionally, the son of this former member of our Board of Directors received a retainer for performing heart and lung transplants from a medical center that generated product and preservation services revenues of $1.1 million, $745,000, and $793,000 for us in 2019, 2018, and 2017, respectively.

A member of our Board of Directors and a shareholder of the Company, who joined our Board of Directors during 2018, is the CEO of a hospital that generated product and preservation services revenues of $341,000 and $296,000 in 2019 and 2018, respectively.

Inventories And Deferred Preservation Costs (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Inventory [Line Items]
Consignment inventory	$ 12.0	$ 11.2
Domestic [Member]
Inventory [Line Items]
Consignment inventory percentage	51.00%	55.00%
Foreign [Member]
Inventory [Line Items]
Consignment inventory percentage	49.00%	45.00%

Goodwill And Other Intangible Assets (Schedule Of Goodwill By Reportable Segment) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Goodwill And Other Intangible Assets [Abstract]
Beginning balance	$ 188,781	$ 188,305
Goodwill from JOTEC acquisition		5,100
Revaluation of goodwill denominated in foreign currency	(2,084)	(4,624)
Ending balance	$ 186,697	$ 188,781

Segment And Geographic Information (Schedule Of Net Revenues By Geographic Location) (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2019

^[1]

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

^[1]

Sep. 30, 2017

^[1]

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

$ 69,697

$ 67,881

$ 71,139

$ 67,505

$ 67,799

$ 64,598

$ 68,496

$ 61,948

$ 52,826

$ 43,999

$ 47,818

$ 45,059

$ 276,222

$ 262,841

$ 189,702

Domestic [Member]

150,553

144,651

135,102

Foreign [Member]

$ 125,669

$ 118,190

$ 54,600

[1]	In December 2017 we completed our acquisition of JOTEC, which is operated as a wholly-owned subsidiary of CryoLife.

Goodwill And Other Intangible Assets (Schedule Of Gross Carrying Values, Accumulated Amortization, And Approximate Amortization Period Of Definite Lived Intangible Assets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Acquired Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 140,193	$ 134,999
Accumulated amortization	24,778	16,815
Customer Lists And Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	31,131	31,169
Accumulated amortization	6,581	5,068
Distribution And Manufacturing Rights And Know-How [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	13,826	4,059
Accumulated amortization	3,005	2,107
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	3,664	3,656
Accumulated amortization	3,074	2,970
Other [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	1,919	1,154
Accumulated amortization	$ 608	$ 235
Minimum [Member] \| Acquired Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization Period	11 years	11 years
Minimum [Member] \| Customer Lists And Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization Period	13 years	13 years
Minimum [Member] \| Distribution And Manufacturing Rights And Know-How [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization Period	5 years	11 years
Minimum [Member] \| Other [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization Period	3 years	3 years
Maximum [Member] \| Acquired Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization Period	22 years	22 years
Maximum [Member] \| Customer Lists And Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization Period	22 years	22 years
Maximum [Member] \| Distribution And Manufacturing Rights And Know-How [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization Period	15 years	15 years
Maximum [Member] \| Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization Period	17 years	17 years
Maximum [Member] \| Other [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization Period	5 years	5 years

Financial Instruments (Reconciliation Of Changes In Fair Value Of Level 3 Liabilities) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Financial Instruments [Abstract]
Beginning balance
Initial value of Endospan Loan	358
Change in valuation of Endospan Loan
Ending balance	$ 358

Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes [Abstract]
Tax expense (benefit) at statutory rate	$ 345	$ (1,340)	$ 1,211
Nondeductible executive compensation	778	320	145
Foreign income taxes	425	(250)	364
Foreign deferred items	365
Net operating losses	355
Foreign interest disallowance	292
Nondeductible entertainment expenses	201	206	258
Valuation allowance change	153	719	54
Prior year provision to return adjustments	43
State income taxes, net of federal benefit	(108)	(8)	212
Impact of Tax Cuts and Job Act	(155)	(238)	(255)
Unrealized income on investments	(203)	(337)	(163)
Net change in uncertain tax positions	(360)	(154)	(67)
Research and development credit	(400)	(557)	(525)
Equity compensation	(1,921)	(2,081)	(2,664)
Nondeductible transaction costs			1,676
Federal tax rate differential			(100)
Foreign tax credit			(133)
Domestic production activities deduction			(174)
Other	114	169	18
Income tax (benefit) expense	$ (76)	$ (3,551)	$ (143)

Debt (Schedule Of Short-Term And Long-Term Balances Of Term Loan) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 01, 2017
Debt Instrument [Line Items]
Term loan balance	$ 223,176	$ 225,953
Less unamortized loan origination costs	(7,441)	(9,072)
Total borrowed	215,735	216,881
Less short-term loan balance	(1,164)	(1,160)
Long-term loan balance	214,571	215,721
2.45% Sparkasse Zollernalb (KFW Loan 1) [Member]
Debt Instrument [Line Items]
Term loan balance	1,061	1,318
1.40% Sparkasse Zollernalb (KFW Loan 2) [Member]
Debt Instrument [Line Items]
Term loan balance	$ 1,615	$ 1,885
Term Loan [Member]
Debt Instrument [Line Items]
Term loan balance			$ 225,000

Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Shareholders' Equity [Abstract]

Shareholders' Equity

12. Shareholders’ Equity

In December 2017 we issued 2,682,754 shares of CryoLife common stock, as part of the consideration for the JOTEC Acquisition. The stock had a value of $53.1 million as determined on the date of the closing. See Note 3 for further discussion of the JOTEC Acquisition.

Stock Compensation (Schedule Of Stock Grant Activity For RSUs) (Details) - Restricted Stock Units (RSUs) [Member] - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested, Beginning Balance, Shares	251,000	286,000	178,000
Granted, Shares	103,000	115,000	196,000
Vested, Shares	(101,000)	(99,000)	(64,000)
Forfeited, Shares	(27,000)	(51,000)	(24,000)
Unvested, Ending Balance, Shares	226,000	251,000	286,000	178,000
Vested and expected to vest, Shares	226,000
Outstanding, Weighted Average Remaining Contractual Term in Years	11 months 4 days	1 year 18 days	1 year 3 months 3 days	1 year 2 months 26 days
Vested and expected to vest, Weighted Average Remaining Contractual Term in Years	11 months 4 days
Outstanding, Aggregate Intrinsic Value	$ 6,131,000	$ 7,123,000	$ 5,477,000	$ 3,405,000
Vested and expected to vest, Aggregate Intrinsic Value	$ 6,131,000

Cash Equivalents And Restricted Cash And Securities (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted securities	$ 528,000	$ 747,000
Gross realized gains or losses on cash equivalents	0	0	$ 0
Money Market Funds [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted securities	528,000	747,000
Maturity Date Within Three Months [Member] \| Money Market Funds [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted securities	$ 528,000	512,000
Maturity Date Between Three Months And One Year [Member] \| Money Market Funds [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted securities		$ 235,000
Minimum [Member] \| Maturity Date Between Three Months And One Year [Member] \| Money Market Funds [Member] \| Measurement Input, Expected Term [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted securities maturity period		3 months
Maximum [Member] \| Maturity Date Within Three Months [Member] \| Money Market Funds [Member] \| Measurement Input, Expected Term [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted securities maturity period	3 months	3 months
Maximum [Member] \| Maturity Date Between Three Months And One Year [Member] \| Money Market Funds [Member] \| Measurement Input, Expected Term [Member]
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted securities maturity period		1 year

Stock Compensation (Schedule Of Weighted-Average Assumptions Used To Determine The Fair Value Of Options) (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of options	5 years	5 years	4 years 9 months
Expected stock price volatility	0.40%	0.40%	0.40%
Risk-free interest rate	2.54%	2.64%	1.87%
ESPP Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of options	6 months	6 months	6 months
Expected stock price volatility	0.39%	0.34%	0.39%
Risk-free interest rate	2.35%	1.73%	0.85%

Segment And Geographic Information (Summary Of Net Revenues By Product And Service) (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2019

^[1]

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

^[1]

Sep. 30, 2017

^[1]

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

$ 69,697

$ 67,881

$ 71,139

$ 67,505

$ 67,799

$ 64,598

$ 68,496

$ 61,948

$ 52,826

$ 43,999

$ 47,818

$ 45,059

$ 276,222

$ 262,841

$ 189,702

BioGlue [Member]

68,611

66,660

65,939

JOTEC [Member]

64,974

63,341

4,136

On-X [Member]

CardioGenesis Cardiac Laser Therapy [Member]

50,096

44,832

37,041

6,016

6,217

6,866

PerClot [Member]

3,795

3,767

3,533

PhotoFix [Member]

3,754

2,577

2,116

Cardiac Tissue [Member]

40,879

35,683

32,510

Vascular Tissue [Member]

Preservation Services [Member]

38,097

39,764

37,561

Operating Segments [Member] | Medical Devices [Member]

78,976

75,447

70,071

Operating Segments [Member] | Preservation Services [Member]

197,246

187,394

119,631

Goodwill And Other Intangible Assets [Abstract]

$ 78,976

$ 75,447

$ 70,071

[1]	In December 2017 we completed our acquisition of JOTEC, which is operated as a wholly-owned subsidiary of CryoLife.

Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill And Other Intangible Assets

7. Goodwill and Other Intangible Assets

Indefinite Lived Intangible Assets

As of December 31, 2019 and 2018, the carrying values of our indefinite lived intangible assets are as follows (in thousands):


	2019		2018
Goodwill	$	186,697	$	188,781
In-process R&D		2,190		9,382
Procurement contracts and agreements		2,013		2,013
Trademarks		844		844

We monitor the phases of development of our acquired in-process R&D projects, including the risks associated with further development and the amount and timing of benefits expected to be derived from the completed projects. Incremental costs associated with development are charged to expense as incurred. Capitalized costs are amortized over the estimated useful life of the developed asset once completed. Our in-process R&D projects are reviewed for impairment annually, or more frequently, if events or changes in circumstances indicate that the asset might be impaired. The company did not record any impairment of indefinite lived intangible assets during the twelve months ended December 31, 2019 and 2018.

During the three months ended December 31, 2019, the Company received CE Mark for the E-nside multibranch stent graft system for the endovascular treatment of thoraco-abdominal aneurysms. The company reclassed $7.4 million related to the E-nside European business from in-process R&D and into defined lived intangible assets with a useful life of 20 years.

Based on our experience with similar agreements, we believe that our acquired procurement contracts and agreements have indefinite useful lives, as we expect to continue to renew these contracts for the foreseeable future. We believe that our trademarks have indefinite useful lives as we currently anticipate that these trademarks will contribute to our cash flows indefinitely.

As of December 31, 2019 and 2018, the value of our goodwill, all of which is related to our Medical Devices segment, is as follows (in thousands):



	2019		2018
Balance as of January 1,	$	188,781	$	188,305
Goodwill from JOTEC Acquisition		--		5,100
Revaluation of goodwill denominated in foreign currency		(2,084)		(4,624)
Balance as of December 31,	$	186,697	$	188,781

Definite Lived Intangible Assets

As of December 31, 2019 and 2018, gross carrying values, accumulated amortization, and approximate amortization periods of our definite lived intangible assets are as follows (dollars in thousands):


	Gross Carrying		Accumulated		Amortization
December 31, 2019	Value		Amortization		Period
Acquired technology	$	140,193		24,778	11	–	22	Years
Customer lists and relationships		31,131		6,581	13	–	22	Years
Distribution and manufacturing rights and know-how		13,826		3,005	5	–	15	Years
Patents		3,664		3,074			17	Years
Other		1,919		608	3	–	5	Years


	Gross Carrying		Accumulated		Amortization
December 31, 2018	Value		Amortization		Period
Acquired technology	$	134,999		16,815	11	–	22	Years
Customer lists and relationships		31,169		5,068	13	–	22	Years
Distribution and manufacturing rights and know-how		4,059		2,107	11	–	15	Years
Patents		3,656		2,970			17	Years
Other		1,154		235	3	–	5	Years

Amortization Expense

Amortization expense recorded in general, administrative, and marketing expenses on our Consolidated Statements of Operations and Comprehensive (Loss) Income for the years ended December 31 is as follows (in thousands):



	2019		2018		2017
Amortization expense	$	10,850	$	10,792	$	5,085

As of December 31, 2019 scheduled amortization of intangible assets for the next five years is as follows (in thousands):



	2020		2021		2022		2023		2024		Total
Amortization expense	$	12,406	$	12,383	$	11,838	$	11,499	$	11,279	$	59,405

‎

Stock Compensation (Summary Of Total Stock Compensation Expenses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
RSA, RSU, And PSU Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 7,451	$ 5,076	$ 5,335
Stock Option And ESPP Option Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 1,960	$ 1,732	$ 1,978

Stock Compensation (Schedule Of Stock Grant Activity For RSAs) (Details) - Restricted Stock Awards (RSAs) [Member] - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested, Beginning Balance, Shares	326,000	383,000	392,000
Granted, Shares	93,000	128,000	138,000
Vested, Shares	(149,000)	(136,000)	(129,000)
Forfeited, Shares	(27,000)	(49,000)	(18,000)
Unvested, Ending Balance, Shares	243,000	326,000	383,000
Unvested, Beginning Balance, Weighted Average Grant Date Fair Value	$ 17.19	$ 12.81	$ 10.64
Granted, Weighted Average Grant Date Fair Value	29.77	23.83	17.00
Vested, Weighted Average Grant Date Fair Value	14.45	12.96	10.84
Forfeited, Weighted Average Grant Date Fair Value	20.53	12.07	11.78
Unvested, Ending Balance, Weighted Average Grant Date Fair Value	$ 23.30	$ 17.19	$ 12.81

Stock Compensation

12 Months Ended

Dec. 31, 2019

Stock Compensation [Abstract]

Stock Compensation

15. Stock Compensation

Overview

We are currently authorized to grant and have available for grant the following number of shares under our stock plans as of December 31, 2019 and 2018:



	Authorized	Available for Grant
Plan	Shares	2019	2018
1996 Discounted Employee Stock Purchase Plan, as amended	1,900,000	234,000	295,000
2009 Equity and Cash Incentive Plan	9,000,000	2,100,000	958,000
Total	10,900,000	2,334,000	1,253,000

During 2019 the Company amended the 2009 Equity and Cash Incentive Plan to increase the authorized shares under the plan by 1.9 million shares. Upon the exercise of stock options or grants of RSAs, PSAs, RSUs, or PSUs, we may issue the required shares out of authorized but unissued common stock or out of treasury stock, at our discretion.

Stock Awards

In 2019 the Compensation Committee of our Board of Directors (the “Committee”) authorized awards from approved stock incentive plans of RSAs to non-employee directors, RSUs to certain employees, and RSAs and PSUs to certain Company officers, which, counting PSUs at target levels, together totaled 507,000 shares and had an aggregate grant date market value of $15.0 million. Two types of PSUs were granted in 2019, an annual grant with a one-year performance period (“Annual PSU”) and a special Long-Term Incentive Program PSU grant (“LTIP”), which has multiple performance periods over a five-year period. If the highest performance threshold is met, the Annual PSU granted in 2019 represents the right to receive up to 150% of the target number of shares of common stock. The performance component of the Annual PSU awards granted in 2019 is based on attaining specified levels of adjusted earnings before interest, taxes, depreciation, and amortization, (“EBITDA”), as defined in the Annual PSU grant documents, for the 2019 calendar year. The Annual PSU granted in 2019 earned approximately 83% of the target number of shares. If the highest performance thresholds are met, the PSUs granted in 2019 under the LTIP represent the right to receive up to 288%, and up to 192% for a certain key executive, of the target number of shares of common stock. The performance component of the LTIP awards granted in 2019 is based on attaining specified levels of adjusted revenue growth and gross margin, as defined in the LTIP grant document, for the years 2019 through 2023. The first performance period under the LTIP will not conclude until December 31, 2021.

In 2018 the Committee authorized awards from approved stock incentive plans of RSAs to non-employee Directors, RSUs to certain employees, and RSAs and PSUs to certain Company officers, which, counting PSUs at target levels, together totaled 328,000 shares of common stock and had an aggregate grant date market value of $7.5 million. The performance component of PSU awards granted in 2018 was based on attaining specified levels of adjusted EBITDA, as defined in the PSU grant documents, for the 2018 calendar year. The PSUs granted in 2018 earned approximately 80% of the target number of shares.

In 2017 the Committee authorized awards from approved stock incentive plans of RSAs to non-employee Directors, RSUs to certain employees, and RSAs, PSAs, and PSUs to certain Company officers, which, counting PSUs at target levels, together totaled 426,000 shares of common stock and had an aggregate grant date market value of $7.1 million. The performance component of PSU awards granted in 2017 was based on attaining specified levels of adjusted EBITDA, adjusted inventory levels, and adjusted trade accounts receivable days’ sales outstanding, each as defined in the PSU grant documents, for the 2017 calendar year. The PSUs granted in 2017 earned approximately 92% of the target number of shares.

A summary of stock grant activity for the years ended December 31, 2019, 2018, and 2017 for RSAs, PSAs, RSUs, and PSUs, based on the target number of shares, is as follows:


		Weighted
		Average
		Grant Date
RSAs	Shares	Fair Value
Unvested at December 31, 2016	392,000	$	10.64
Granted	138,000		17.00
Vested	(129,000)		10.84
Forfeited	(18,000)		11.78
Unvested at December 31, 2017	383,000		12.81
Granted	128,000		23.83
Vested	(136,000)		12.96
Forfeited	(49,000)		12.07
Unvested at December 31, 2018	326,000		17.19
Granted	93,000		29.77
Vested	(149,000)		14.45
Forfeited	(27,000)		20.53
Unvested at December 31, 2019	243,000		23.30


		Weighted
		Average
		Grant Date
PSAs	Shares	Fair Value
Unvested at December 31, 2016	250,000	$	10.18
Granted	--		--
Vested	(250,000)		10.18
Forfeited	--		--
Unvested at December 31, 2017	--		--
Granted	--		--
Vested	--		--
Forfeited	--		--
Unvested at December 31, 2018	-		--
Granted	--		--
Vested	--		--
Forfeited	--		--
Unvested at December 31, 2019	-		--


		Weighted
		Average
		Remaining		Aggregate
		Contractual		Intrinsic
RSUs	Shares	Term in years		Value
Unvested at December 31, 2016	178,000		1.24	$	3,405,000
Granted	196,000
Vested	(64,000)
Forfeited	(24,000)
Unvested at December 31, 2017	286,000		1.26		5,477,000
Granted	115,000
Vested	(99,000)
Forfeited	(51,000)
Unvested at December 31, 2018	251,000		1.05		7,123,000
Granted	103,000
Vested	(101,000)
Forfeited	(27,000)
Unvested at December 31, 2019	226,000		0.93		6,131,000

Vested and expected to vest	226,000		0.93	$	6,131,000


		Weighted
		Average
		Remaining		Aggregate
		Contractual		Intrinsic
PSUs	Shares	Term in years		Value
Unvested at December 31, 2016	188,000		0.77	$	3,603,000
Granted	126,000
Vested	(128,000)
Forfeited	(17,000)
Unvested at December 31, 2017	169,000		0.71		3,236,000
Granted	104,000
Vested	(109,000)
Forfeited	(17,000)
Unvested at December 31, 2018	147,000		0.72		4,179,000
Granted	322,000
Vested	(87,000)
Forfeited	(35,000)
Unvested at December 31, 2019	347,000		2.33		9,400,000

Vested and expected to vest	347,000		2.33	$	9,400,000

During the years ended December 31, 2019, 2018, and 2017 the total fair value of $9.8 million, $7.3 million, and $11.1 million, respectively, in combined RSAs, PSAs, RSUs, and PSUs vested.

Stock Options

The Compensation Committee of our Board of Directors authorized grants of stock options from approved stock incentive plans to certain Company officers and employees totaling 169,000, 219,000, and 260,000 shares in 2019, 2018, and 2017, respectively, with exercise prices equal to the stock prices on the respective grant dates.

A summary of our stock option activity for the years ended December 31, 2019, 2018, and 2017 is as follows:



				Weighted
				Average
		Weighted		Remaining		Aggregate
		Average		Contractual		Intrinsic
	Shares	Exercise Price		Term in years		Value
Outstanding at December 31, 2016	1,911,000	$	8.59		3.55	$	20,179,000
Granted	260,000		16.30
Exercised	(394,000)		6.30
Forfeited	(31,000)		12.47
Expired	(5,000)		7.01
Outstanding at December 31, 2017	1,741,000		10.19		3.64		15,598,000
Granted	219,000		21.55
Exercised	(578,000)		7.59
Forfeited	(49,000)		14.10
Expired	--		--
Outstanding at December 31, 2018	1,333,000		13.04		3.93		20,439,000
Granted	169,000		29.62
Exercised	(334,000)		9.87
Forfeited	(39,000)		22.64
Expired	--		--
Outstanding at December 31, 2019	1,129,000		16.14		3.67		12,763,000

Vested and expected to vest	1,129,000	$	16.14		3.67	$	12,763,000
Exercisable at December 31, 2019	782,000	$	12.55		2.89	$	11,371,000

Other information concerning stock options for the years ended December 31 is as follows:



	2019		2018		2017
Weighted-average fair value of options granted	$	11.47	$	8.38	$	5.97
Intrinsic value of options exercised		6,519,000		9,961,000		4,748,000

Employees purchased common stock totaling 61,000, 83,000, and 93,000 shares in 2019, 2018, and 2017, respectively, through our ESPP.

Stock Compensation Expense

The following weighted-average assumptions were used to determine the fair value of options:



	2019		2018		2017
	Stock	ESPP	Stock	ESPP	Stock	ESPP
	Options	Options	Options	Options	Options	Options
Expected life of options	5.00 Years	0.50 Years	5.00 Years	0.50 Years	4.75 Years	0.50 Years
Expected stock price volatility	0.40	0.39	0.40	0.34	0.40	0.39
Risk-free interest rate	2.54%	2.35%	2.64%	1.73%	1.87%	0.85%

The following table summarizes stock compensation expense (in thousands):



	2019		2018		2017
RSA, PSA, RSU, and PSU expense	$	7,451	$	5,076	$	5,335
Stock option and ESPP option expense		1,960		1,732		1,978
Total stock compensation expense	$	9,411	$	6,808	$	7,313

Included in the total stock compensation expense, as applicable in each period, were expenses related to RSAs, PSAs, RSUs, PSUs, and stock options issued in each respective year, as well as those issued in prior periods that continue to vest during the period, and compensation related to our ESPP. These amounts were recorded as stock compensation expense and were subject to or normal allocation of expenses to inventory costs and deferred preservation costs. We capitalized $612,000, $484,000, and $394,000 in the years ended December 31, 2019, 2018, and 2017, respectively, of the stock compensation expense into our inventory costs and deferred preservation costs.

As of December 31, 2019 we had total unrecognized compensation costs of $11.9 million related to RSAs, RSUs, and PSUs and $2.0 million related to unvested stock options. As of December 31, 2019 this expense is expected to be recognized over a weighted-average period of 1.5 years for RSUs, 1.4 years for stock options, 1.0 years for RSAs, and 2.3 years for PSUs.
‎

Transactions With Related Parties (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Member Of Board Of Directors , Retired [Member]
Related Party Transaction [Line Items]
Revenue from related parties	$ 499,000	$ 443,000	$ 133,000
Son Of Member Of Board Of Directors [Member]
Related Party Transaction [Line Items]
Revenue from related parties	1,100,000	745,000	$ 793,000
Member Of Board Of Directors Joining 2018 [Member]
Related Party Transaction [Line Items]
Revenue from related parties	$ 341,000	$ 296,000

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Taxes [Abstract]

Income Taxes

8. Income Taxes

Income Tax Expense

Income (loss) before income taxes consists of the following (in thousands):


	2019		2018		2017
Domestic	$	6,369	$	4,560	$	5,086
Foreign		(4,725)		(10,951)		(1,525)
Income (loss) before income taxes	$	1,644	$	(6,391)	$	3,561

Income tax expense (benefit) consists of the following (in thousands):


	2019		2018		2017
Current:
Federal	$	48	$	402	$	521
State		80		246		110
Foreign		2,041		2,009		460
		2,169		2,657		1,091
Deferred:
Federal		(850)		(2,188)		(714)
State		(131)		(154)		70
Foreign		(1,264)		(3,866)		(590)
		(2,245)		(6,208)		(1,234)
Income tax benefit	$	(76)	$	(3,551)	$	(143)

Our income tax benefit in 2019, 2018, and 2017 included our federal, state, and foreign tax obligations. Our effective income tax rate was a tax benefit of 5%, 56%, and 4% for the years ended December 31, 2019, 2018, and 2017, respectively. Our income tax rate for the year ended December 31, 2019 was primary affected by excess tax benefits on stock compensation, the research and development tax credit, and releases of uncertain tax position liabilities. These tax benefits were partially offset by nondeductible executive compensation, intercompany interest expense disallowance, and nondeductible meals and entertainment expenses. Our income tax rate for the year ended December 31, 2018 was primarily affected by excess tax benefits on stock compensation, the research and development tax credit and non-includable income related to the On-X settlement which increased our benefit. These tax benefits were offset by changes in valuation allowances on future tax benefits, and nondeductible meals and entertainment expenses. Our income tax rate for the year ended December 31, 2017 was primarily affected by excess tax benefits on stock compensation and the research and development tax credit, offset by nondeductible transaction costs related to the JOTEC Acquisition and nondeductible meals and entertainment expenses.

The income tax benefit amounts differ from the amounts computed by applying the U.S. federal statutory income tax rate of 21% for the years ended December 31, 2019 and 2018 and 34% for the year ended December 31, 2017 to pretax income as a result of the following (in thousands):


	2019		2018		2017
Tax expense (benefit) at statutory rate	$	345	$	(1,340)	$	1,211
Increase (reduction) in income taxes resulting from:
Nondeductible executive compensation		778		320		145
Foreign income taxes		425		(250)		364
Foreign deferred items		365		--		--
Net operating losses		355		--		--
Foreign interest disallowance		292		--		--
Nondeductible entertainment expenses		201		206		258
Valuation allowance change		153		719		54
Prior year provision to return adjustments		43		--		--
State income taxes, net of federal benefit		(108)		(8)		212
Impact of Tax Cuts and Jobs Act		(155)		(238)		(255)
Unrealized income on investments		(203)		(337)		(163)
Net change in uncertain tax positions		(360)		(154)		(67)
Research and development credit		(400)		(557)		(525)
Equity compensation		(1,921)		(2,081)		(2,664)
Nondeductible transaction costs		--		--		1,676
Federal tax rate differential		--		--		(100)
Foreign tax credit		--		--		(133)
Domestic production activities deduction		--		--		(174)
Other		114		169		18
Total income tax benefit	$	(76)	$	(3,551)	$	(143)

Tax Cuts and Jobs Act of 2017

On December 22, 2017 the United States 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. As of December 31, 2017 we remeasured

certain deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future (which was generally from 35% to 21%), which resulted in a nominal provisional amount for 2017. Upon further analysis of certain aspects of the Tax Act and refinement of our calculations during the year ended December 31, 2018, we made immaterial adjustments to our provisional estimate in accordance with SEC Staff Accounting Bulletin 118, which are included as a component of income tax expense from continuing operations.

We elected to account for the global intangible low-taxed income (“GILTI”) tax in the period in which it is incurred, and therefore, have not provided any deferred tax impacts of GILTI in its consolidated financial statements for the years ended December 31, 2019 and 2018. For the years ending December 31, 2019 and 2018 our GILTI inclusion was nominal.

The Tax Act also created a new provision, foreign derived intangible income (“FDII”), whereby certain sales made from the U.S. to overseas markets are taxed at a lower U.S. rate. We are favorably impacted by the new FDII provision and as of December 31, 2019 and 2018 our FDII deduction was $737,000 and $525,000, respectively.

We are also affected by the new interest deductibility rule under the Tax Act. This rule disallows interest expense to the extent it exceeds 30% of adjusted taxable income. For the year ending December 31, 2019 and 2018 our interest deduction was limited to $10.5 million and $6.6 million, respectively. The excess interest not deducted in 2019 and 2018 of $2.4 million and $17.7 million, respectively, can be carried forward indefinitely for use in future years.

Deferred Taxes

We generate deferred tax assets primarily as a result of net operating losses, excess interest carryforward, accrued compensation, stock compensation, and capital leases. Our deferred tax liabilities are primarily made up of intangible assets acquired in previous years.

The tax effects of temporary differences which give rise to deferred tax assets and liabilities at December 31 are as follows (in thousands):


	2019		2018
Deferred tax assets:
Loss carryforwards	$	7,030	$	8,266
Finance and operating leases		7,497		1,824
Excess interest carryforward		4,544		4,786
Stock compensation		2,153		2,138
Accrued expenses		1,890		2,723
Deferred compensation		1,107		778
Property		1,147		--
Credit carryforwards		710		939
UNICAP		425		404
Inventory and deferred preservation costs write-downs		299		289
Tax benefit of tax reserves		52		217
Other		1,659		310
Less valuation allowance		(3,218)		(3,372)
Total deferred tax assets		25,295		19,302

	2019		2018
Deferred tax liabilities:
Intangible assets		(35,555)		(38,414)
Finance and operating leases		(7,048)		--
Debt costs		(1,917)		(2,331)
Property		(28)		(1,060)
Prepaid items		(494)		(477)
Other		(616)		(176)
Total deferred tax liabilities		(45,658)		(42,458)

Total net deferred tax liabilities	$	(20,363)	$	(23,156)

As of December 31, 2019 we maintained a total of $3.2 million in valuation allowances against deferred tax assets, related primarily to state and foreign net operating loss carryforwards, and a net deferred tax liability of $20.4 million. As of December 31, 2018 we maintained a total of $3.4 million in valuation allowances against deferred tax assets, related primarily to state and foreign net operating loss carryforwards, and a net deferred tax liability of $23.2 million.

As of December 31, 2019 we had approximately $2.7 million tax-effected federal net operating loss carryforwards related to the acquisitions of Cardiogenesis and Hemosphere that we anticipate fully utilizing before expiration, $2.8 million of tax-effected state net operating loss carryforwards, that will begin to expire in 2022, approximately $1.6 million of foreign net operating loss carryforwards that will begin to expire in 2024, $631,000 in research and development tax credit carryforwards that begin to expire in 2026, and $128,000 in credits from the state of Texas that expire in 2027.

Reinvestment of Unremitted Earnings

We intend to reinvest substantially all of the unremitted earnings of our non-U.S. subsidiaries to fund working capital, strategic investments, and debt repayment and postpone their remittance indefinitely. Accordingly, no provision for state and local taxes or foreign withholding taxes was recorded on these unremitted earnings in the accompanying Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company is permanently reinvested with respect to the outside basis differences in its non-U.S. subsidiaries with the exception of one of its German subsidiaries. The Company has recorded approximately $35,000 of a deferred tax liability for the tax effects of this outside basis difference in its Consolidated Statements of Operations and Comprehensive (Loss) Income.

Uncertain Tax Positions

A reconciliation of the beginning and ending balances of our uncertain tax position liability, excluding interest and penalties, is as follows (in thousands):


	2019		2018		2017
Beginning balance	$	3,889	$	4,328	$	3,390
Increases related to current year tax positions		691		368		143
Decreases due to the lapsing of statutes of limitations		(880)		(467)		(254)
Decreases related to prior year tax positions		(154)		--		(106)
(Decreases) increases for foreign exchange differences		(22)		16		--
(Decreases) increases related to prior year tax positions		(1)		249		1,155
Decreases related to settlements		--		(605)		--
Ending balance	$	3,523	$	3,889	$	4,328

A reconciliation of the beginning and ending balances of our liability for interest and penalties on uncertain tax positions is as follows (in thousands):


	2019		2018		2017
Beginning balance	$	402	$	315	$	208
Accrual of interest and penalties		227		161		169
Decreases related to prior year tax positions		(195)		(74)		(62)
Ending balance	$	434	$	402	$	315

As of December 31, 2019 our uncertain tax liability of $4.0 million, including interest and penalties, was recorded as a reduction to deferred tax assets of $300,000, and a non-current liability of $3.7 million on our Consolidated Balance Sheets, all of which, except for the portion related to interest and penalties, is expected to impact our tax rate when recognized. The uncertain tax position decrease related to prior year tax positions is primarily due to the lapse of the statute of limitations in various jurisdictions. As of December 31, 2018 our total uncertain tax liability, including interest and penalties of $4.3 million, was recorded as a reduction to deferred tax assets of $286,000 and as a non-current liability of $4.0 million on our Consolidated Balance Sheets.

We believe it is reasonably possible that approximately $1.0 million of our uncertain tax liability will be recognized in 2020 due to the lapsing of various federal and state and foreign statutes of limitations, of which substantially all would affect the tax rate.

Other

Our tax years 2016 and forward generally remain open to examination by the major taxing jurisdictions to which we are subject. However, certain returns from years prior to 2016, in which net operating losses and tax credits have arisen, are still open for examination by the tax authorities.

Employee Benefit Plans (Narrative) (Details) - 401(K) [Member] - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Contribution Plan Disclosure [Line Items]
Company's matching percentage of employees' contribution	100.00%
Company's matching contribution of employees' salary	3.50%	3.00%	3.00%
Company's total contributions	$ 1,600,000	$ 1,400,000	$ 1,400,000
Discretionary contributions	$ 0	$ 0	$ 0

Goodwill And Other Intangible Assets (Schedule Of Carrying Values Of Indefinite Lived Intangible Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Indefinite-lived Intangible Assets [Line Items]
Goodwill	$ 186,697	$ 188,781	$ 188,305
In Process R&D [Member]
Indefinite-lived Intangible Assets [Line Items]
Total indefinite lived intangible assets	2,190	9,382
Procurement Contracts And Agreements [Member]
Indefinite-lived Intangible Assets [Line Items]
Total indefinite lived intangible assets	2,013	2,013
Trademarks [Member]
Indefinite-lived Intangible Assets [Line Items]
Total indefinite lived intangible assets	$ 844	$ 844

Selected Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Selected Quarterly Financial Information (Unaudited) [Abstract]

Schedule Of Quarterly Financial Information



	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
REVENUE:
2019	$	67,505	$	71,139	$	67,881	$	69,697
2018		61,948		68,496		64,598		67,799
2017		45,059		47,818		43,999		52,826	^*

GROSS MARGIN:
2019	$	44,273	$	46,966	$	45,222	$	46,552
2018		39,228		45,851		42,714		45,191
2017		29,512		32,905		29,862		36,363	^*

NET (LOSS) INCOME:
2019	$	(297)	$	2,832	$	(134)	$	(681)
2018		(3,855)		226		1,565		(776)
2017		2,223		3,163		1,325		(3,007)	^*

(LOSS) INCOME PER COMMON SHARE—DILUTED:
2019	$	(0.01)	$	0.07	$	0.00	$	(0.02)
2018		(0.11)		0.01		0.04		(0.02)
2017		0.06		0.09		0.04		(0.09)	^*

_____________________

^*In December 2017 we completed our acquisition of JOTEC, which is operated as a wholly-owned subsidiary of CryoLife.

Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt [Abstract]

Schedule Of Short-Term And Long-Term Balances Of Term Loan


	As of December 31,
	2019		2018
Term loan balance	$	220,500	$	222,750
2.45% Sparkasse Zollernalb (KFW Loan 1)		1,061		1,318
1.40% Sparkasse Zollernalb (KFW Loan 2)		1,615		1,885
Total loan Balance		223,176		225,953
Less unamortized loan origination costs		(7,441)		(9,072)
Total borrowed		215,735		216,881
Less short-term loan balance		(1,164)		(1,160)
Long-term loan balance	$	214,571	$	215,721

Stock Compensation (Schedule Of Stock Grant Activity For PSUs) (Details) - Performance Stock Units (PSUs) [Member] - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested, Beginning Balance, Shares	147,000	169,000	188,000
Granted, Shares	322,000	104,000	126,000
Vested, Shares	(87,000)	(109,000)	(128,000)
Forfeited, Shares	(35,000)	(17,000)	(17,000)
Unvested, Ending Balance, Shares	347,000	147,000	169,000	188,000
Vested and expected to vest, Shares	347,000
Outstanding, Weighted Average Remaining Contractual Term in Years	2 years 3 months 29 days	8 months 19 days	8 months 15 days	9 months 7 days
Vested and expected to vest, Weighted Average Remaining Contractual Term in Years	2 years 3 months 29 days
Outstanding, Aggregate Intrinsic Value	$ 9,400,000	$ 4,179,000	$ 3,236,000	$ 3,603,000
Vested and expected to vest, Aggregate Intrinsic Value	$ 9,400,000

Summary Of Significant Accounting Policies (Schedule Of Supplemental Disclosures Of Cash Flow Information) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Interest	$ 13,297	$ 15,005	$ 2,561
Income taxes	$ 1,944	$ 1,699	3,358
JOTEC [Member]
Issuance of common stock for acquisition of intangible assets			$ 53,119

Document And Entity Information - USD ($)

12 Months Ended

Dec. 31, 2019

Feb. 14, 2020

Jun. 30, 2019

Document And Entity Information [Abstract]

Document Type

10-K

Document Annual Report

true

Document Period End Date

Dec. 31, 2019

Current Fiscal Year End Date

--12-31

Document Transition Report

false

Entity File Number

1-13165

Entity Registrant Name

CRYOLIFE, INC.

Entity Incorporation, State or Country Code

Entity Tax Identification Number

59-2417093

Entity Address, Address Line One

1655 Roberts Boulevard N.W.

Entity Address, City or Town

Kennesaw

Entity Address, State or Province

Entity Address, Postal Zip Code

30144

City Area Code

770

Local Phone Number

419-3355

Title of 12(b) Security

Common Stock, $.01 par value

Trading Symbol

pursuant

Security Exchange Name

NYSE

Entity Well-known Seasoned Issuer

Yes

Entity Voluntary Filers

Entity Current Reporting Status

Yes

Entity Interactive Data Current

Yes

Entity Filer Category

Large Accelerated Filer

Entity Small Business

false

Entity Emerging Growth Company

false

Entity Shell Company

false

Entity Public Float

$ 1,078,303,225

Entity Common Stock, Shares Outstanding

39,081,335

Documents Incorporated By Reference


Document		Parts Into Which Incorporated
Proxy Statement for the Annual Meeting of Stockholders to be filed within 120 days after December 31, 2019		Part III

‎

Document Fiscal Year Focus

2019

Entity Central Index Key

0000784199

Document Fiscal Period Focus

Amendment Flag

false

Goodwill And Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill And Other Intangible Assets [Abstract]

Schedule Of Carrying Values Of Indefinite Lived Intangible Assets


	2019		2018
Goodwill	$	186,697	$	188,781
In-process R&D		2,190		9,382
Procurement contracts and agreements		2,013		2,013
Trademarks		844		844

Schedule Of Goodwill By Reportable Segment



	2019		2018
Balance as of January 1,	$	188,781	$	188,305
Goodwill from JOTEC Acquisition		--		5,100
Revaluation of goodwill denominated in foreign currency		(2,084)		(4,624)
Balance as of December 31,	$	186,697	$	188,781

Schedule Of Gross Carrying Values, Accumulated Amortization, And Approximate Amortization Period Of Definite Lived Intangible Assets


	Gross Carrying		Accumulated		Amortization
December 31, 2019	Value		Amortization		Period
Acquired technology	$	140,193		24,778	11	–	22	Years
Customer lists and relationships		31,131		6,581	13	–	22	Years
Distribution and manufacturing rights and know-how		13,826		3,005	5	–	15	Years
Patents		3,664		3,074			17	Years
Other		1,919		608	3	–	5	Years


	Gross Carrying		Accumulated		Amortization
December 31, 2018	Value		Amortization		Period
Acquired technology	$	134,999		16,815	11	–	22	Years
Customer lists and relationships		31,169		5,068	13	–	22	Years
Distribution and manufacturing rights and know-how		4,059		2,107	11	–	15	Years
Patents		3,656		2,970			17	Years
Other		1,154		235	3	–	5	Years

Summary Of Amortization Expense



	2019		2018		2017
Amortization expense	$	10,850	$	10,792	$	5,085

Scheduled Amortization Of Intangible Assets For Next Five Years



	2020		2021		2022		2023		2024		Total
Amortization expense	$	12,406	$	12,383	$	11,838	$	11,499	$	11,279	$	59,405

Revenue Recognition

12 Months Ended

Dec. 31, 2019

Revenue Recognition [Abstract]

Revenue Recognition

14. Revenue Recognition

Sources of Revenue

We have identified the following revenues disaggregated by revenue source:

Domestic Hospitals – direct sales of products and preservation services.

International Hospitals – direct sales of products and preservation services.

International Distributors – generally these contracts specify a geographic area that the distributor will service, terms and conditions of the relationship, and purchase targets for the next calendar year.

CardioGenesis Cardiac Laser Console Trials and Sales – CardioGenesis cardiac trialed laser consoles are delivered under separate agreements.

For the years ended December 31, 2019, 2018, and 2017 the sources of revenue were as follows (in thousands):


		2019		2018		2017
Domestic hospitals	$	144,538	$	138,432	$	128,240
International hospitals		85,241		81,203		23,791
International distributors		40,427		36,989		30,805
CardioGenesis cardiac laser therapy		6,016		6,217		6,866
Total sources of revenue	$	276,222	$	262,841	$	189,702

Also see segment and geographic disclosure in Note 18 below.

Contract Balances

We may generate contract assets during the pre-delivery design and manufacturing stage of E-xtra DESIGN ENGINEERING product order fulfillment. We assess the balance related to any arrangements in process and determine if the enforceable right to payment creates a material contract asset requiring disclosure. No material arrangements in process existed as of December 31, 2019 and 2018.

We also incur contract obligations on general customer purchase orders that have been accepted but unfulfilled. Due to the short duration of time between order acceptance and delivery of the related product or service, we have determined that the balance related to these contract obligations is generally immaterial at any point in time. We monitor the value of orders accepted but unfulfilled at the close of each reporting period to determine if disclosure is appropriate. The value of orders accepted but unfulfilled as of December 31, 2019 and 2018 were not material.

Revenue Recognition (Disaggregation Of Revenue) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Total sources of revenue	$ 276,222	$ 262,841	$ 189,702
Domestic Hospitals [Member]
Disaggregation of Revenue [Line Items]
Total sources of revenue	144,538	138,432	128,240
International Hospitals [Member]
Disaggregation of Revenue [Line Items]
Total sources of revenue	85,241	81,203	23,791
International Distributors [Member]
Disaggregation of Revenue [Line Items]
Total sources of revenue	40,427	36,989	30,805
Cardiogenesis [Member]
Disaggregation of Revenue [Line Items]
Total sources of revenue	$ 6,016	$ 6,217	$ 6,866

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Other assets noncurrent:
Other intangibles, accumulated amortization	$ 13,460	$ 10,572
Shareholders' equity:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	39,018,000	38,463,000
Acquired Technology [Member]
Other assets noncurrent:
Other intangibles, accumulated amortization	$ 24,778	$ 16,815

Summary Of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Summary Of Significant Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

1. Summary of Significant Accounting Policies

Nature of Business

CryoLife, Inc. (“CryoLife,” the “Company,” “we,” or “us”) is a leader in the manufacturing, processing, and distribution of medical devices and implantable human tissues used in cardiac and vascular surgical procedures for patients with aortic disease. We have four major product families: BioGlue^® Surgical Adhesive (“BioGlue”) products, JOTEC GmbH (“JOTEC”) stent grafts and surgical products, On-X mechanical heart valves and surgical products, and implantable cardiac and vascular human tissues. In addition to these four major product families, we sell or distribute PhotoFix^TM bovine surgical patch, PerClot^® hemostatic powder, NEXUS^TM endovascular stent graft system, and CardioGenesis cardiac laser therapy.

Basis of Presentation and Principles of Consolidation

We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior-year amounts have been reclassified to conform to the current year presentation.

Translation of Foreign Currencies

Our revenues and expenses transacted in foreign currencies are translated as they occur at exchange rates in effect at the time of each transaction. Realized and unrealized gains and losses on foreign currency transactions are recorded as a component of other expense (income), net on our Consolidated Statements of Operations and Comprehensive (Loss) Income. Realized and unrealized gains and losses were a loss of $1.2 million, a loss of $2.6 million, and a gain of $257,000 for the years ended December 31, 2019, 2018, and 2017, respectively. Losses incurred during 2019 were primarily related to cross currency intercompany receivables and payables resulting from large inventory transfers during 2019, impacted by fluctuations in the Euro relative to other currencies. Our assets and liabilities denominated in foreign currencies are translated at the exchange rate in effect as of the balance sheet date and are recorded as a separate component of accumulated other comprehensive (loss) income in the shareholders' equity section of our Consolidated Balance Sheets.

Use of Estimates

The preparation of the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Estimates and assumptions are used when accounting for allowance for doubtful accounts, inventory, deferred preservation costs, acquired assets or businesses, intangible assets, deferred income taxes, commitments and contingencies (including product and tissue processing liability claims, claims incurred but not reported, and amounts recoverable from insurance companies), stock based compensation, certain accrued liabilities (including accrued procurement fees, income taxes, and financial instruments), and other items as appropriate.

Revenue Recognition

Contracts with Customers

We adopted Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers effective January 1, 2018 using the modified retrospective method applied to those contracts which were not substantially completed as of January 1, 2018. These standards provide guidance on recognizing revenue, including a five-step model to determine when revenue recognition is appropriate. The standard requires that an entity recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenues for 2019 and 2018 are reported under ASC 606, while 2017 amounts are not adjusted and continue to be reported under ASC 605, Revenue Recognition.

We routinely enter into contracts with customers that include general commercial terms and conditions, notification requirements for price increases, shipping terms and, in most cases, prices for the products and services that we offer. These agreements, however, do not obligate us to provide goods or services to the customer, and there is no consideration promised to us at the onset of these arrangements. For customers without separate agreements, we have a standard list price established by geography and by currency for all products and services, and our invoices contain standard terms and conditions that are applicable to those customers where a

separate agreement is not controlling. Our performance obligations are established when a customer submits a purchase order notification (in writing, electronically or verbally) for goods and services, and we accept the order. We identify performance obligations as the delivery of the requested product or service in appropriate quantities and to the location specified in the customer’s contract and/or purchase order. We generally recognize revenue upon the satisfaction of these criteria when control of the product or service has been transferred to the customer at which time we have an unconditional right to receive payment. Our prices are fixed and are not affected by contingent events that could impact the transaction price. We do not offer price concessions and do not accept payment that is less than the price stated when we accept the purchase order, except in rare credit related circumstances. We do not have any material performance obligations where we are acting as an agent for another entity.

Revenues for products, including: BioGlue, On-X products, JOTEC products, PerClot, PhotoFix and other medical devices, are typically recognized at the time the product is shipped, at which time the title passes to the customer, and there are no further performance obligations. Revenues from consignment are recognized when the medical device is implanted. We recognize revenues for preservation services when tissue is shipped to the customer.

Our E-xtra DESIGN ENGINEERING products are specifically designed to meet specifications of a particular patient, and therefore, do not create an asset with an alternative use. We evaluate open orders for these products each reporting period, and when material, we recognize the revenue and related contract asset based on the amount of payment we believe we are entitled to at that time.

In certain limited circumstances, CardioGenesis cardiac laser consoles are provided to a customer for their use without transfer of title for evaluation purposes. We have determined that a portion of the revenue for the handpieces purchased during these evaluations constitutes revenues associated with the use of the laser console, however, these are immaterial to reported revenues.

Warranty

Our general product warranties do not extend beyond an assurance that the products or services delivered will be consistent with stated specifications and do not include separate performance obligations. Warranties included with our CardioGenesis cardiac laser products provide for annual maintenance services, which are priced separately and are recognized as revenues at the stand-alone price over the service period, whether invoiced separately or recognized based on our allocation of the transaction price.

Significant Judgments in the Application of the Guidance in ASC 606

There are no significant judgments associated with the satisfaction of our performance obligations. We generally satisfy performance obligations upon shipment of the product or service to the customer. This is consistent with the time in which the customer obtains control of the product or service. Performance obligations are also generally settled quickly after the purchase order acceptance, other than as identified for the E-xtra DESIGN ENGINEERING product, therefore, the value of unsatisfied performance obligations at the end of any reporting period is immaterial.

For performance obligations provided through our E-xtra DESIGN ENGINEERING product line, we determine the value of our enforceable right to payment based on the time required and costs incurred for design services and manufacture of the in-process device in relation to the total inputs required to complete the device.

We consider variable consideration in establishing the transaction price. Forms of variable consideration potentially applicable to our arrangements include sales returns, rebates, volume-based bonuses, and prompt pay discounts. We use historical information along with an analysis of the expected value to properly calculate and to consider the need to constrain estimates of variable consideration. Such amounts are included as a reduction to revenue from the sale of products and services in the periods in which the related revenue is recognized and adjusted in future periods as necessary.

Commissions and Contract Costs

Sales commissions are earned upon completion of each performance obligation, and therefore, are expensed when incurred. These costs are included in general, administrative, and marketing expenses in the Consolidated Statements of Operations and Comprehensive (Loss) Income. We generally do not incur incremental charges associated with securing agreements with customers which would require capitalization and recovery over the life of the agreement.

Practical Expedients

Our payment terms for sales direct to customers are substantially less than the one-year collection period that falls within the practical expedient in the determination of whether a significant financing component exists.

Shipping and Handling Charges

Fees charged to customers for shipping and handling of products and tissues are included in product and preservation service revenues. The costs for shipping and handling of products and tissues are included as a component of cost of products and cost of preservation services.

Taxes Collected from Customers

Taxes collected on the value of transaction revenue are excluded from product and service revenues and cost of sales and are accrued in current liabilities until remitted to governmental authorities.

Advertising Costs

The costs to develop, produce, and communicate our advertising are expensed as incurred and are classified as general, administrative, and marketing expenses. We record the cost to print or copy certain sales materials as a prepaid expense and amortize these costs as an advertising expense over the period they are expected to be used, typically six months to one year. The total amount of advertising expense included in our Consolidated Statements of Operations and Comprehensive (Loss) Income was $1.7 million, $732,000, and $606,000 for the years ended December 31, 2019, 2018, and 2017, respectively.

Stock-Based Compensation

We have stock option and stock incentive plans for employees and non-employee directors that provide for grants of restricted stock awards (“RSA”s), performance stock awards (“PSA”s), restricted stock units (“RSU”s), performance stock units (“PSU”s), and options to purchase shares of our common stock at exercise prices generally equal to the fair values of such stock at the dates of grant. We also maintain a shareholder approved Employee Stock Purchase Plan (the “ESPP”) for the benefit of our employees. The ESPP allows eligible employees the right to purchase common stock on a regular basis at the lower of 85% of the market price at the beginning or end of each offering period. The RSAs, PSAs, RSUs, PSUs, and stock options granted by us typically vest over a one to three-year period. The stock options granted by us typically expire within seven years of the grant date.

We value our RSAs, PSAs, RSUs, and PSUs based on the stock price on the date of grant. We expense the related compensation cost of RSAs, PSAs, and RSUs using the straight-line method over the vesting period. We expense the related compensation cost of PSUs based on the number of shares expected to be issued, if achievement of the performance component is probable, using a straight-line method over each vesting tranche of the award which results in accelerated recognition of expenses. The amount of compensation costs expensed related to PSUs is adjusted as needed if we deem that achievement of the performance component is no longer probable or if our expectation of the number of shares to be issued changes. We use a Black-Scholes model to value our stock option grants and expense the related compensation cost using the straight-line method over the vesting period. The fair value of our ESPP options is also determined using a Black-Scholes model and is expensed over the vesting period.

The fair value of stock options and ESPP options is determined on the grant date using assumptions for the expected term, volatility, dividend yield, and the risk-free interest rate. The expected term is primarily based on the contractual term of the option and our data related to historic exercise and post-vesting forfeiture patterns, which is adjusted based on our expectations of future results. Our anticipated volatility level is primarily based on the historic volatility of our common stock, adjusted to remove the effects of certain periods of unusual volatility not expected to recur, and adjusted based on our expectations of future volatility, for the life of the option or option group. Our model was updated to include a zero-dividend yield assumption when our quarterly dividends were discontinued after the fourth quarter of 2015, and we do not anticipate paying dividends in the future. The risk-free interest rate is based on recent U.S. Treasury note auction results with a similar life to that of the option. Our model does not include a discount for post-vesting restrictions, as we have not issued awards with such restrictions.

The period expense for our stock compensation is determined based on the valuations discussed above and forfeitures are accounted for in the period awards are forfeited.

Change in Accounting for Employee Share-Based Payments

As of January 1, 2017 we made an entity-wide accounting policy election in accordance with Accounting Standards Update (“ASU”) No. 2016-09, Improvements to Employee Share-Based Payment Accounting, (“ASU 2016-09”) to change our accounting policy to account for stock compensation forfeitures in the period awards are forfeited rather than estimating the effect of forfeitures. We elected to make this accounting policy change to simplify the accounting for share-based compensation and believe this method provides a more accurate reflection of periodic share-based compensation cost from the grant date forward. We used the modified retrospective transition method to record a net $238,000 cumulative-effect adjustment decrease to retained earnings for the accounting policy change, which included a $379,000 increase to additional paid-in capital and a $141,000 increase in deferred tax assets.

Additionally, as of January 1, 2017 and in accordance with the guidance in ASU 2016-09, we made a change to account for excess tax benefits and deficiencies resulting from the settlement or vesting of share-based awards in income tax expense in our Consolidated Statement of Operations and Comprehensive (Loss) Income instead of accounting for these effects through additional paid in-capital on our Consolidated Balance Sheets. We applied this amendment prospectively and prior periods have not been adjusted.

Income Per Common Share

Income per common share is computed using the two-class method, which requires us to include unvested RSAs and PSAs that contain non-forfeitable rights to dividends (whether paid or unpaid) as participating securities in the income per common share calculation.

Under the two-class method, net income is allocated to the weighted-average number of common shares outstanding during the period and the weighted-average participating securities outstanding during the period. The portion of net income that is allocated to the participating securities is excluded from basic and dilutive net income per common share. Diluted net income per share is computed using the weighted-average number of common shares outstanding plus the dilutive effects of outstanding stock options and awards and other dilutive instruments as appropriate.

Dividends

Payment of dividends was discontinued in the fourth quarter of 2015. We did not pay dividends in 2019, 2018 or 2017 and do not currently anticipate paying out dividends in the next year.

Financial Instruments

Our financial instruments include cash equivalents, restricted securities, accounts receivable, notes receivable, accounts payable, and debt obligations. We typically value financial assets and liabilities at their carrying values, such as receivables, and accounts payable due to their short-term duration, and debt obligations as they contain variable interest rates that approximate market values. Other financial instruments are recorded as discussed in the sections below.

Fair Value Measurements

We record certain financial instruments at fair value on a recurring basis, including cash equivalents and certain restricted securities. We may make an irrevocable election to measure other financial instruments at fair value on an instrument-by-instrument basis. Fair value financial instruments are recorded in accordance with the fair value measurement framework.

We also measure certain assets at fair value on a non-recurring basis. These non-recurring valuations include evaluating assets such as certain financial assets, long-lived assets, and non-amortizing intangible assets for impairment, allocating value to assets in an acquired asset group and applying accounting for business combinations. We use the fair value measurement framework to value these assets and report these fair values in the periods in which they are recorded or written down.

The fair value measurement framework includes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair values in their broad levels. These levels from highest to lowest priority are as follows:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities;

Level 2: Quoted prices in active markets for similar assets or liabilities or observable prices that are based on inputs not quoted on active markets, but corroborated by market data; and

Level 3: Unobservable inputs or valuation techniques that are used when little or no market data is available.

The determination of fair value and the assessment of a measurement’s placement within the hierarchy requires judgment. Level 3 valuations often involve a higher degree of judgment and complexity. Level 3 valuations may require the use of various cost, market, or income valuation methodologies applied to our unobservable estimates and assumptions. Our assumptions could vary depending on the asset or liability valued and the valuation method used. Such assumptions could include: estimates of prices, earnings, costs, actions of market participants, market factors, or the weighting of various valuation methods. We may also engage external advisors to assist in determining fair value, as appropriate.

Although we believe that the recorded fair values of our financial instruments are appropriate, these fair values may not be indicative of net realizable value or reflective of future fair values.

Cash and Cash Equivalents

Cash equivalents consist primarily of highly liquid investments with maturity dates of three months or less at the time of acquisition. The carrying value of cash equivalents approximates fair value. We maintain depository accounts with certain financial institutions. Although these depository accounts may exceed government insured depository limits, we have evaluated the credit worthiness of these applicable financial institutions and determined the risk of material financial loss due to the exposure of such credit risk to be minimal.

Cash Flow Supplemental Disclosures

Supplemental disclosures of cash flow information for the years ended December 31 (in thousands):



	2019		2018		2017
Cash paid during the year for:
Interest	$	13,297	$	15,005	$	2,561
Income taxes		1,944		1,699		3,358

Non-cash investing and financing activities:
Issuance of common stock for acquisition of JOTEC intangible assets	$	--	$	--	$	53,119

Accounts Receivable and Allowance for Doubtful Accounts

Our accounts receivable are primarily from hospitals and distributors that either use or distribute our products and tissues. We assess the likelihood of collection based on a number of factors, including past transaction history and the credit worthiness of the customer, as well as the potential increased risks related to international customers and large distributors. We determine the allowance for doubtful accounts based upon specific reserves for known collection issues, as well as a non-specific reserve based upon aging buckets. We charge off uncollectable amounts against the reserve in the period in which we determine they are uncollectible. Our accounts receivable balances are reported net of allowance for doubtful accounts of $966,000 and $533,000 as of December 31, 2019 and 2018, respectively.

Inventories

Inventories are comprised of finished goods for our major product lines including: BioGlue; JOTEC products; On-X products; CardioGenesis cardiac laser therapy laser consoles, handpieces, and accessories; PerClot; PhotoFix; other medical devices; work-in-process; and raw materials. Inventories for finished goods are valued at the lower of cost or market on a first-in, first-out basis and raw materials are valued on a moving average cost basis. Typically, upon shipment, or upon implant of a medical device on consignment, revenue is recognized, and the related inventory costs are expensed as cost of products. Cost of products also includes, as applicable, lower of cost or market write-downs and impairments for products not deemed to be recoverable and, as incurred, idle facility expense, excessive spoilage, extra freight, and re-handling costs.

Inventory costs for manufactured products consist primarily of direct labor and materials (including salary and fringe benefits, raw materials, and supplies) and indirect costs (including allocations of costs from departments that support manufacturing activities and facility allocations). The allocation of fixed production overhead costs is based on actual production levels, to the extent that they are within the range of the facility’s normal capacity. Inventory costs for products purchased for resale or manufactured under contract consist primarily of the purchase cost, freight-in charges, and indirect costs as appropriate.

We regularly evaluate our inventory to determine if the costs are appropriately recorded at the lower of cost or market value. We also evaluate our inventory for costs not deemed to be recoverable, including inventory not expected to ship prior to its expiration. Lower of cost or market value write-downs are recorded if the book value exceeds the estimated net realizable value of the inventory, based on recent sales prices at the time of the evaluation. Impairment write-downs are recorded based on the book value of inventory deemed to be impaired. Actual results may differ from these estimates. Write-downs of inventory are expensed as cost of products, and these write-downs are permanent impairments that create a new cost basis, which cannot be restored to its previous levels if our estimates change.

We recorded write-downs to our inventory totaling $601,000, $212,000, and $1.2 million for the years ended December 31, 2019, 2018, and 2017, respectively. The 2019 write-down is primarily related to PerClot inventory not expected to ship prior to the expiration date. The 2018 write-down is primarily related to On-X ascending aortic prosthesis (“AAP”) inventory not expected to ship prior to the expiration date and the disposal of obsolete surgical sealant product packaging materials. The 2017 write-down is primarily related to AAP inventory not expected to ship prior to the expiration date.

Deferred Preservation Costs

Deferred preservation costs include costs of cardiac and vascular tissues available for shipment, tissues currently in active processing, and tissues held in quarantine pending release to implantable status. By federal law, human tissues cannot be bought or sold; therefore, the tissues we preserve are not held as inventory. The costs we incur to procure and process cardiac and vascular tissues are instead accumulated and deferred. Deferred preservation costs are stated at the lower of cost or market value on a first-in, first-out basis and are deferred until revenue is recognized. Upon shipment of tissue to an implanting facility, revenue is recognized, and the related deferred preservation costs are expensed as cost of preservation services. Cost of preservation services also includes, as applicable, lower of cost or market write-downs and impairments for tissues not deemed to be recoverable, and includes, as incurred, idle facility expense, excessive spoilage, extra freight, and re-handling costs.

The calculation of deferred preservation costs involves judgment and complexity and uses the same principles as inventory costing. Donated human tissue is procured from deceased human donors by organ and tissue procurement organizations (“OPOs”) and tissue banks, that consign the tissue to us for processing, preservation, and distribution. Deferred preservation costs consist primarily of the procurement fees charged by the OPOs and tissue banks, direct labor and materials (including salary and fringe benefits, laboratory supplies and expenses, and freight-in charges), and indirect costs (including allocations of costs from support departments and facility allocations). Fixed production overhead costs are allocated based on actual tissue processing levels, to the extent that they are within the range of the facility’s normal capacity.

These costs are then allocated among the tissues processed during the period based on cost drivers, such as the number of donors or number of tissues processed. We apply a yield estimate to all tissues in process and in quarantine to estimate the portion of tissues that will ultimately become implantable. We estimate quarantine and in process yields based on our experience and reevaluate these estimates periodically. Actual yields could differ significantly from our estimates, which could result in a change in tissues available for shipment and could increase or decrease the balance of deferred preservation costs. These changes could result in additional cost of preservation services expense or could increase per tissue preservation costs, which would impact gross margins on tissue preservation services in future periods.

We regularly evaluate our deferred preservation costs to determine if the costs are appropriately recorded at the lower of cost or market value. We also evaluate our deferred preservation costs for costs not deemed to be recoverable, including tissues not expected to ship prior to the expiration date of their packaging. Lower of cost or market value write-downs are recorded if the tissue processing costs incurred exceed the estimated market value of the tissue services, based on recent average service fees at the time of the evaluation. Impairment write-downs are recorded based on the book value of tissues deemed to be impaired. Actual results may differ from these estimates. Write-downs of deferred preservation costs are expensed as cost of preservation services, and these write-downs are permanent impairments that create a new cost basis, which cannot be restored to its previous levels if our estimates change.

We recorded write-downs to our deferred preservation costs totaling $787,000, $437,000, and $922,000 for the years ended December 31, 2019, 2018, and 2017, respectively, due primarily to tissues not expected to ship prior to the expiration date of the packaging.

Property and Equipment

Property and equipment is stated at cost. Depreciation is provided over the estimated useful lives of the assets, generally three to ten years, on a straight-line basis. Leasehold improvements are amortized on a straight-line basis over the remaining lease term at the time the assets are capitalized or the estimated useful lives of the assets, whichever is shorter.

Depreciation expense for the years ended December 31 is as follows (in thousands):



	2019		2018		2017
Depreciation expense	$	7,467	$	7,303	$	4,648

Goodwill and Other Intangible Assets

Our intangible assets consist of goodwill, acquired technology, customer lists and relationships, patents, trademarks, and other intangible assets, as discussed in Note 7. Our goodwill is attributable to a segment or segments of our business, as appropriate, as the related acquired business that generated the goodwill is integrated into our operations. Upon divestiture of a component of our business, the goodwill related to the operating segment is allocated to the divested business using the relative fair value allocation method.

Our definite lived intangible assets consist of acquired technologies, customer lists and relationships, distribution and manufacturing rights and know-how, patents, and other intangible assets. We amortize our definite lived intangible assets over their

expected useful lives using the straight-line method, which we believe approximates the period of economic benefits of the related assets. Our indefinite lived intangible assets do not amortize but are instead subject to periodic impairment testing as discussed in “Impairments of Long-Lived Assets and Non-Amortizing Intangible Assets” below.

Impairments of Long-Lived Assets and Non-Amortizing Intangible Assets

We assess the potential impairment of our property and equipment and amortizing intangible long-lived assets to be held and used whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors that could trigger an impairment review include, but are not limited to, the following:

Significant underperformance relative to expected historical or projected future operating results;

Significant negative industry or economic trends;

Significant decline in our stock price for a sustained period; or

Significant decline in our market capitalization relative to net book value.

If we determine that an impairment review is necessary, we will evaluate the assets or asset groups by comparing their carrying values to the sum of the undiscounted future cash flows expected to result from their use and eventual disposition. If the carrying values exceed the future cash flows, then the asset or asset group is considered impaired, and we will write down the value of the asset or asset group. For the years ended December 31, 2019, 2018, and 2017 we did not experience any factors that indicated that an impairment review of our long-lived assets was warranted.

We evaluate our goodwill and other non-amortizing intangible assets for impairment on an annual basis as of October 31 and, if necessary, during interim periods if factors indicate that an impairment review is warranted. As of October 31, 2019 and 2018, our non-amortizing intangible assets consisted of goodwill, in-process research and development, acquired procurement contracts and agreements, and trademarks. We performed an analysis of our non-amortizing intangible assets as of October 31, 2019 and 2018 and determined that the fair value of the assets and the fair value of the reporting unit exceeded their associated carrying values and were, therefore, not impaired. We will continue to evaluate the recoverability of these non-amortizing intangible assets.

Accrued Procurement Fees

Donated tissue is procured from deceased human donors by OPOs and tissue banks, which consign the tissue to us for processing, preservation, and distribution. We reimburse the OPOs and tissue banks for their costs to recover the tissue and include these costs as part of deferred preservation costs, as discussed above. We accrue estimated procurement fees due to the OPOs and tissue banks at the time tissues are received based on contractual agreements between us and the OPOs and tissue banks.

Leases

We have operating and finance lease obligations resulting from the lease of land and buildings that comprise our corporate headquarters and various manufacturing facilities; leases related to additional manufacturing, office, and warehouse space; leases on Company vehicles; and leases on a variety of office and other equipment, as discussed in Note 9. Certain of our leases contain escalation clauses, rent concessions, and renewal options for additional periods.

In February 2016 the FASB amended its ASC and created a new Topic 842, Leases. The final guidance requires lessees to recognize a right-of-use asset and a lease liability for all long-term leases at the commencement date and recognize expenses on their statements of income similar to the former Topic 840, Leases. We adopted ASC 842, Leases effective January 1, 2019 using the modified retrospective approach, which allows application of the standard at the adoption date rather than at the beginning of the earliest comparative period presented. Therefore, no changes have been made to the 2018 or 2017 financial statements.

The adoption of this standard resulted in the recognition of operating lease liability with a net present value of $22.7 million, and corresponding right-of-use assets obtained in the same amount, at January 1, 2019. The leases recognized were calculated using a weighted average discount rate of 5.5% and a weighted average remaining lease term of six years. In addition, deferred rent obligations of approximately $2.4 million recognized under prior lease rules were offset against the corresponding right-of-use asset and will be reflected in amortization over the remaining life of the lease. Our leases had remaining lease terms of one year up to 11 years, some of which had options to extend the leases for up to 29 years and one lease contained a termination option with a two year notice requirement. The adoption of the new leasing standard had no significant impact on covenants or other provisions of our current term and revolver loan facility agreements.

We exercised judgment in the adoption of the new leasing standard, including the determination of whether a financial arrangement includes a lease and in determining the appropriate discount rates to be applied to leases based on our general collateralized credit standing and the geographical market considerations impacting lease rates across all locations. When available,

we used the implicit discount rate in the lease contract to discount lease payments to present value. If an implicit discount rate was not available in the lease contract, we used our incremental borrowing rate. We elected the package of practical expedients permitted under the transition guidance of the new leasing standard which includes a provision that allows us to carry forward the historical lease classification of identified leasing arrangements and not reassess (i) classification for any existing leases, (ii) whether any expired or existing agreements are or contain a lease, or (iii) whether any initial direct costs qualified for capitalization. We have also elected the practical expedients that allow us to omit leases with initial terms of 12 months or less from our balance sheet, which are expensed on a straight-line basis over the life of the lease. We have elected not to separate lease and non-lease components for future leases.

Our operating and finance lease liabilities result from the lease of land and buildings that comprise our corporate headquarters, various manufacturing facilities and related space, leases on company vehicles, and leases on a variety of office and other equipment. Our leases do not include terms or conditions which would result in variable lease payments other than for small office equipment leases with an additional charge for volume of usage. These incremental payments are excluded from our calculation of lease liability and the related right-of-use asset. We do not include option terms in the determination of lease liabilities and the related right-of-use assets unless we determine at lease commencement that the exercise of the option is reasonably certain. Our leases do not contain residual value guarantee provisions or other restrictions or financial covenant provisions.

On March 8, 2019 we executed a modification to extend the lease of our On-X manufacturing facilities. This modification resulted in an increase in the net present value and corresponding right-of-use asset of $3.7 million, using a discount rate of 5.83%. We have not executed any material lease arrangements which have not commenced. We do not have any related party leasing arrangements.

Debt Issuance Costs

Debt issuance costs related to our term loan and line of credit are capitalized and reported net of the current and long-term debt or as a prepaid asset when there are no outstanding borrowings. If there is unamortized debt issuance costs related to our line of credit but only borrowings on the term loan, these debt issuance costs will be combined with the debt issuance costs related to the term loan and reported net of the current and long-term debt for the term loan. We amortize debt issuance costs to interest expense on our term loan using the effective interest method over the life of the debt agreement. We amortize debt issuance costs to interest expense on our line of credit on a straight-line basis over the life of the debt agreement.

Liability Claims

In the normal course of business, we are made aware of adverse events involving our products and tissues. Future adverse events could ultimately give rise to a lawsuit against us, and liability claims may be asserted against us in the future based on past events that we are not aware of at the present time. We maintain claims-made insurance policies to mitigate our financial exposure to product and tissue processing liability claims. Claims-made insurance policies generally cover only those asserted claims and incidents that are reported to the insurance carrier while the policy is in effect. Thus, a claims-made policy does not generally represent a transfer of risk for claims and incidents that have been incurred but not reported to the insurance carrier during the policy period. Any punitive damage components of claims are uninsured.

We engage external advisors to assist us in estimating our liability and any related amount recoverable under our insurance policies as of each balance sheet date. We use a frequency-severity approach to estimate our unreported product and tissue processing liability claims, whereby projected losses are calculated by multiplying the estimated number of claims by the estimated average cost per claim. The estimated claims are determined based on the reported claim development method and the Bornhuetter-Ferguson method using a blend of our historical claim experience and industry data. The estimated cost per claim is calculated using a lognormal claims model blending our historical average cost per claim with industry claims data. We use a number of assumptions in order to estimate the unreported loss liability including: the future claim reporting time lag, the frequency of reported claims, the average cost per claim, and the maximum liability per claim. We believe that the assumptions we use provide a reasonable basis for our calculation. However, the accuracy of the estimates is limited by various factors, including, but not limited to, our specific conditions, uncertainties surrounding the assumptions used, and the scarcity of industry data directly relevant to our business activities. Due to these factors, actual results may differ significantly from our assumptions and from the amounts accrued.

We accrue our estimate of unreported product and tissue processing liability claims as a component of other long-term liabilities and record the related recoverable insurance amounts as a component of other long-term assets. The amounts recorded represent our estimate of the probable losses and anticipated recoveries for unreported claims related to products sold and services performed prior to the balance sheet date.

Legal Contingencies

We accrue losses from a legal contingency when the loss is both probable and reasonably estimable. The accuracy of our estimates of losses for legal contingencies is limited by uncertainties surrounding litigation. Therefore, actual results may differ significantly from the amounts accrued, if any. We accrue for legal contingencies as a component of accrued expenses and/or other long-term liabilities. Gains from legal contingencies are recorded when the contingency is resolved.

Legal Fees

We expense the costs of legal services, including legal services related to product and tissue processing liability claims and legal contingencies, as they are incurred. Reimbursement of legal fees by an insurance company or other third party is recorded as a reduction to legal expense.

Uncertain Tax Positions

We periodically assess our uncertain tax positions and recognize tax benefits if they are “more-likely-than-not” to be upheld upon review by the appropriate taxing authority. We measure the tax benefit by determining the maximum amount that has a “greater than 50 percent likelihood” of ultimately being realized. We reverse previously accrued liabilities for uncertain tax positions when audits are concluded, statutes expire, administrative practices dictate that a liability is no longer warranted, or in other circumstances, as deemed necessary. These assessments can be complex, and we often obtain assistance from external advisors to make these assessments. We recognize interest and penalties related to uncertain tax positions in other expense (income), net on our Consolidated Statements of Operations and Comprehensive (Loss) Income. See Note 8 for further discussion of our liabilities for uncertain tax positions.

Deferred Income Taxes

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and tax return purposes. We periodically assess the recoverability of our deferred tax assets, as necessary, when we experience changes that could materially affect our determination of the recoverability of our deferred tax assets. We provide a valuation allowance against our deferred tax assets when, as a result of this analysis, we believe it is more likely than not that some portion or all of our deferred tax assets will not be realized.

Assessing the recoverability of deferred tax assets involves judgment and complexity in conjunction with prudent and feasible tax planning. Estimates and judgments used in the determination of the need for a valuation allowance and in calculating the amount of a needed valuation allowance include, but are not limited to, the following:

Projected future operating results;

Anticipated future state tax apportionment;

Timing and amounts of anticipated future taxable income;

Timing of the anticipated reversal of book/tax temporary differences;

Evaluation of statutory limits regarding usage of certain tax assets; and

Evaluation of the statutory periods over which certain tax assets can be utilized.

Significant changes in the factors above, or other factors, could affect our ability to use our deferred tax assets. Such changes could have a material, adverse impact on our profitability, financial position, and cash flows. We will continue to assess the recoverability of our deferred tax assets, as necessary, when we experience changes that could materially affect our prior determination of the recoverability of our deferred tax assets.

We believe that the realizability of our acquired net operating loss carryforwards will be limited in future periods due to a change in control of our former subsidiaries Hemosphere, Inc. (“Hemosphere”) and Cardiogenesis Corporation (“Cardiogenesis”), as mandated by Section 382 of the Internal Revenue Code of 1986, as amended. We believe that our acquisitions of these companies each constituted a change in control as defined in Section 382 and that, prior to our acquisition, Hemosphere had experienced other equity ownership changes that should be considered such a change in control. We also acquired net operating loss carryforwards in certain foreign jurisdictions in our recent acquisition of JOTEC. We believe these loss carryforwards will be fully realizable. The deferred tax assets recorded on our Consolidated Balance Sheets exclude amounts that we expect will not be realizable due to changes in control. A portion of the acquired net operating loss carryforwards is related to state income taxes for which we believe it is more likely than not, that some will not be realized. Therefore, we recorded a valuation allowance against these state net operating loss carryforwards.

Valuation of Acquired Assets or Businesses

As part of our corporate strategy, we are seeking to identify and capitalize upon acquisition opportunities of complementary product lines and companies. We evaluate and account for acquired patents, licenses, distribution rights, and other tangible or intangible assets as the purchase of an asset or asset group, or as a business combination, as appropriate. The determination of whether the purchase of a group of assets should be accounted for as an asset group or as a business combination requires judgment based on the weight of available evidence.

For the purchase of an asset group, we allocate the cost of the asset group, including transaction costs, to the individual assets purchased based on their relative estimated fair values. In-process research and development acquired as part of an asset group is expensed upon acquisition.

We account for business combinations using the acquisition method. Under this method, the allocation of the purchase price is based on the fair value of the tangible and identifiable intangible assets acquired and the liabilities assumed as of the date of the acquisition. The excess of the purchase price over the estimated fair value of the tangible net assets and identifiable intangible assets is recorded as goodwill. The identifiable intangible assets typically consist of developed technology, trade names, customer relationships, and in-process research and development costs. Transaction costs related to business combinations are expensed as incurred. In-process research and development acquired as part of a business combination is accounted for as an indefinite-lived intangible asset until the related research and development project gains regulatory approval or is discontinued.

We typically engage external advisors to assist us in determining the fair value of acquired asset groups or business combinations, using valuation methodologies such as: the excess earnings, the discounted cash flow, or the relief from royalty methods. The determination of fair value in accordance with the fair value measurement framework requires significant judgments and estimates, including, but not limited to: timing of product life cycles, estimates of future revenues, estimates of profitability for new or acquired products, cost estimates for new or changed manufacturing processes, estimates of the cost or timing of obtaining regulatory approvals, estimates of the success of competitive products, and discount rates and represent level 3 measurements. We, in consultation with our advisors, make these estimates based on our prior experiences and industry knowledge. We believe that our estimates are reasonable, but actual results could differ significantly from our estimates. A significant change in our estimates used to value acquired asset groups or business combinations could result in future write-downs of tangible or intangible assets acquired by us and, therefore, could materially impact our financial position and profitability. If the value of the liabilities assumed by us, including contingent liabilities, is determined to be significantly different from the amounts previously recorded in purchase accounting, we may need to record additional expenses or write-downs in future periods, which could materially impact our financial position and profitability.

New Accounting Pronouncements

Recently Adopted

As of January 1, 2019 we adopted the Accounting Standards Codification (“ASC”) Topic 842, Leases (“ASC 842”). The final guidance requires lessees to recognize a right-of-use asset and a lease liability for all leases (with the exception of short-term leases) at the commencement date and recognize expenses on their income statements similar to former Topic 840, Leases. We used the modified retrospective approach, which allows application of the standard at the adoption date rather than at the beginning of the earliest comparative period presented. The adoption of this standard resulted in the recognition of operating lease agreements with a net present value of $22.7 million and corresponding right-of-use assets obtained in the same amount at January 1, 2019. See Note 9 for further discussion of leases.

As of January 1, 2018 we adopted ASU No. 2014-09, Revenue from Contracts with Customers and the additional related ASUs (“ASC 606”). These standards provide guidance on recognizing revenue, including a five-step model to determine when revenue recognition is appropriate. ASC 606 provides that we recognize revenue to depict the transfer of control of promised goods or services to our customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. We used the modified retrospective method applied to those contracts that were not substantially completed as of January 1, 2018. As a result of the adoption, we recorded an immaterial adjustment to increase retained earnings to recognize the impact of contract assets under the new revenue recognition guidance.

Adoption of ASC 606 did not have a material impact on our consolidated financial statements and is not expected to have a material impact in future periods. During our evaluation of the impact of adopting the new revenue standard, which included a detailed review of performance obligations for all material revenue streams, we identified two noteworthy items:

Certain distributor agreements have historically included inventory buyback provisions under defined change of business conditions. Transactions under these terms would not qualify as a completed revenue transaction until sale through to the end customer, resulting in a revenue deferral until the proper criteria were satisfied. These agreements were modified or replaced to remove the buyback provisions effective on or before January 1, 2018 which eliminated any retrospective adjustment requirements.

Certain JOTEC products discussed above are manufactured to order, have no alternative use, and contain an enforceable right to receive payment for the performance completed. These factors qualify the transactions for revenue recognition over time. Upon adoption of the new standard, we evaluated all appropriate contracts in progress to determine the value of unbilled revenues representing outstanding contract assets. We recorded an immaterial cumulative effect adjustment to recognize the impact of contract assets.

See Note 14 for further discussion of revenue recognition.

In August 2016 the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). ASU 2016-18 is intended to address diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We adopted ASU 2016-18 as of January 1, 2018 and disclosure revisions have been made for the periods presented on the Consolidated Statement of Cash Flows.

Not Yet Effective

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASC Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The purpose of Update No. 2016-13 is to replace the current incurred loss impairment methodology for financial assets measured at amortized cost with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information, including forecasted information, to develop credit loss estimates. Update No. 2016-13 is effective for annual periods beginning after December 15, 2019. We are currently evaluating the impact related to the adoption of ASU 2016-13 on its financial condition, profitability, and cash flows.

Segment And Geographic Information (Tables)

12 Months Ended

Dec. 31, 2019

Segment And Geographic Information [Abstract]

Revenues, Cost Of Products And Services, And Gross Margins For Operating Segments


	2019		2018		2017
Revenues:
Medical devices	$	197,246	$	187,394	$	119,631
Preservation services		78,976		75,447		70,071
Total revenues		276,222		262,841		189,702

Cost of products and preservation services:
Medical devices		55,022		53,772		29,798
Preservation services		38,187		36,085		31,262
Total cost of products and preservation services		93,209		89,857		61,060

Gross margin:
Medical devices		142,224		133,622		89,833
Preservation services		40,789		39,362		38,809
Total gross margin	$	183,013	$	172,984	$	128,642

Summary Of Net Revenues By Product And Service


	2019		2018		2017
Products:
BioGlue	$	68,611	$	66,660	$	65,939
JOTEC		64,974		63,341		4,136
On-X		50,096		44,832		37,041
CardioGenesis cardiac laser therapy		6,016		6,217		6,866
PerClot		3,795		3,767		3,533
PhotoFix		3,754		2,577		2,116
Total products		197,246		187,394		119,631

Preservation services:
Cardiac tissue		40,879		35,683		32,510
Vascular tissue		38,097		39,764		37,561
Total preservation services		78,976		75,447		70,071

Total revenues	$	276,222	$	262,841	$	189,702

Schedule Of Net Revenues By Geographic Location


	2019		2018		2017
U.S.	$	150,553	$	144,651	$	135,102
International		125,669		118,190		54,600
Total revenues	$	276,222	$	262,841	$	189,702

Selected Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2019

Selected Quarterly Financial Information (Unaudited) [Abstract]

Selected Quarterly Financial Information (Unaudited)

SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

(in thousands, except per share data)



	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
REVENUE:
2019	$	67,505	$	71,139	$	67,881	$	69,697
2018		61,948		68,496		64,598		67,799
2017		45,059		47,818		43,999		52,826	^*

GROSS MARGIN:
2019	$	44,273	$	46,966	$	45,222	$	46,552
2018		39,228		45,851		42,714		45,191
2017		29,512		32,905		29,862		36,363	^*

NET (LOSS) INCOME:
2019	$	(297)	$	2,832	$	(134)	$	(681)
2018		(3,855)		226		1,565		(776)
2017		2,223		3,163		1,325		(3,007)	^*

(LOSS) INCOME PER COMMON SHARE—DILUTED:
2019	$	(0.01)	$	0.07	$	0.00	$	(0.02)
2018		(0.11)		0.01		0.04		(0.02)
2017		0.06		0.09		0.04		(0.09)	^*

_____________________

^*In December 2017 we completed our acquisition of JOTEC, which is operated as a wholly-owned subsidiary of CryoLife.

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Schedule Of Supplemental Balance Sheet Information Related To Leases


Operating leases:	December 31, 2019
Operating lease right-of-use assets	$	27,007
Accumulated amortization		(5,013)
Operating lease right-of-use assets, net	$	21,994

Current maturities of operating leases	$	5,487
Non-current maturities of operating lease		17,918
Total operating lease liabilities	$	23,405

Finance leases:
Property and equipment, at cost	$	7,161
Accumulated amortization		(1,279)
Property and equipment, net	$	5,882

Current maturities of finance leases	$	597
Non-current maturities of finance leases		5,415
Total finance lease liabilities	$	6,012

Weighted average remaining lease term (in years):
Operating leases		5.5
Finance leases		10.6

Weighted average discount rate:
Operating leases		5.4%
Finance leases		2.0%

Schedule Of Assets Acquired Under Finance Leases


	Gross
	Carrying		Accumulated		Net Book
	Value		Amortization		Value
Equipment	$	1,066	$	375	$	691
Leasehold improvements		6,608		507		6,101
Total	$	7,674	$	882	$	6,792

Summary Of Lease Costs



	2019
Amortization of property and equipment	$	771
Interest expense on finance leases		124
Total finance lease expense		895
Operating lease expense^a		6,624
Sublease income		(905)
Total lease expense	$	6,614

Schedule Of Supplemental Cash Flow Information Related To Leases



Cash paid for amounts included in the measurement of lease liabilities:	2019
Operating cash flows for finance leases	$	124
Operating cash flows for operating leases		6,827
Financing cash flows for finance leases		728

Schedule Of Minimum Lease Payments For Finance, Operating, And Sublease Income Leases


	Finance		Operating		Sublease
	Leases		Leases		Income
2020	$	712	$	6,585	$	905
2021		658		6,280		905
2022		613		3,809		306
2023		612		2,584		--
2024		610		2,570		--
Thereafter		3,467		5,027		--
Total minimum lease payments	$	6,672	$	26,855	$	2,116
Less amount representing interest		660		3,450
Present value of net minimum lease payments		6,012		23,405
Less current maturities		597		5,487
Finance lease obligations, less current maturities	$	5,415	$	17,918

Commitments And Contingencies

12 Months Ended

Dec. 31, 2019

Commitments And Contingencies [Abstract]

Commitments And Contingencies

11. Commitments and Contingencies

Liability Claims

At December 31, 2019 and 2018 our unreported loss liability was $1.9 million and $1.7 million, respectively. As of December 31, 2019 and 2018, the related insurance recoverable amounts were $935,000 and $693,000, respectively. We accrue our estimate of unreported product and tissue processing liability claims as other long-term liabilities and record the related recoverable insurance amounts as other long-term assets. Further analysis indicated that the liability as of December 31, 2019 could be estimated to be as high as $3.7 million, after including a reasonable margin for statistical fluctuations calculated based on actuarial simulation techniques.

Employment Agreements

In July 2014 our Board of Directors appointed Mr. James P. Mackin as President and Chief Executive Officer (“CEO”), and we and Mr. Mackin entered into an employment agreement, which became effective September 2, 2014. The employment agreement has an initial three-year term. Beginning on the second anniversary of the effective date, and subject to earlier termination pursuant to the agreement, the employment term will, on a daily basis, automatically extend by one day. The agreement provides for a severance payment, which would become payable upon the occurrence of certain employment termination events, including termination by us without cause.

PerClot Technology

On September 28, 2010 we entered into a worldwide distribution agreement (the “Distribution Agreement”) and a license and manufacturing agreement (the “License Agreement”) with Starch Medical, Inc. (“SMI”), for PerClot, a polysaccharide hemostatic agent used in surgery. The Distribution Agreement has a term of 15 years, but we can terminate it for any reason before the expiration date by providing 180 days’ notice. The Distribution Agreement also contains minimum purchase requirements that expire upon the termination of the Distribution Agreement or following U.S. regulatory approval for PerClot. Separate and apart from the terms of the Distribution Agreement, pursuant to the License Agreement, as amended by a September 2, 2011 technology transfer agreement, we can manufacture and sell PerClot, assuming appropriate regulatory approvals, in the U.S. and certain other jurisdictions and may be required to pay royalties to SMI at certain rates on net revenues of products.

We paid $500,000 to SMI in January 2015 related to the achievement of a contingent milestone. We may make additional contingent payments to SMI of up to $1.0 million if certain U.S. regulatory and certain commercial milestones are achieved.

We are conducting our pivotal clinical trial to gain approval to commercialize PerClot for surgical indications in the U.S. Enrollment was completed in January 2019. We anticipate Premarket Approval (“PMA”) submission to the U.S. Food and Drug Administration (“FDA”) during the second half of 2020.

As of December 31, 2019 we had $1.5 million in prepaid royalties, $2.0 million in net intangible assets, and $1.3 million in property and equipment, net on our Consolidated Balance Sheets related to the PerClot product line. If we do not ultimately pursue or receive FDA approval to commercialize PerClot in the U.S., these assets could be materially impaired in future periods.

Summary Of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Summary Of Significant Accounting Policies [Abstract]

Nature Of Business

Nature of Business

Basis Of Presentatin And Principles Of Consolidation

Basis of Presentation and Principles of Consolidation

Translation Of Foreign Currencies

Translation of Foreign Currencies

Use Of Estimates

Use of Estimates

Revenue Recognition

Contracts with Customers

Warranty

Significant Judgments in the Application of the Guidance in ASC 606

Commissions and Contract Costs

Practical Expedients

Shipping and Handling Charges

Taxes Collected from Customers

Taxes collected on the value of transaction revenue are excluded from product and service revenues and cost of sales and are accrued in current liabilities until remitted to governmental authorities.

Advertising Costs

Stock-Based Compensation

The period expense for our stock compensation is determined based on the valuations discussed above and forfeitures are accounted for in the period awards are forfeited.

Change in Accounting for Employee Share-Based Payments

Income Per Common Share

Dividends

Payment of dividends was discontinued in the fourth quarter of 2015. We did not pay dividends in 2019, 2018 or 2017 and do not currently anticipate paying out dividends in the next year.

Financial Instruments

Fair Value Measurements

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities;

Level 2: Quoted prices in active markets for similar assets or liabilities or observable prices that are based on inputs not quoted on active markets, but corroborated by market data; and

Level 3: Unobservable inputs or valuation techniques that are used when little or no market data is available.

Although we believe that the recorded fair values of our financial instruments are appropriate, these fair values may not be indicative of net realizable value or reflective of future fair values.

Cash And Cash Equivalents

Cash and Cash Equivalents

Cash Flow Supplemental Disclosures

Supplemental disclosures of cash flow information for the years ended December 31 (in thousands):



	2019		2018		2017
Cash paid during the year for:
Interest	$	13,297	$	15,005	$	2,561
Income taxes		1,944		1,699		3,358

Non-cash investing and financing activities:
Issuance of common stock for acquisition of JOTEC intangible assets	$	--	$	--	$	53,119

Accounts Receivable And Allowance For Doubtful Accounts

Accounts Receivable and Allowance for Doubtful Accounts

Inventories

Deferred Preservation Costs

Property And Equipment

Property and Equipment

Depreciation expense for the years ended December 31 is as follows (in thousands):



	2019		2018		2017
Depreciation expense	$	7,467	$	7,303	$	4,648

Goodwill And Other Intangible Assets

Goodwill and Other Intangible Assets

Impairments Of Long-Lived Assets And Non-Amortizing Intangible Assets

Impairments of Long-Lived Assets and Non-Amortizing Intangible Assets

Significant underperformance relative to expected historical or projected future operating results;

Significant negative industry or economic trends;

Significant decline in our stock price for a sustained period; or

Significant decline in our market capitalization relative to net book value.

Accrued Procurement Fees

Uncertain Tax Positions

Deferred Income Taxes

Projected future operating results;

Anticipated future state tax apportionment;

Timing and amounts of anticipated future taxable income;

Timing of the anticipated reversal of book/tax temporary differences;

Evaluation of statutory limits regarding usage of certain tax assets; and

Evaluation of the statutory periods over which certain tax assets can be utilized.

Valuation Of Acquired Assets Or Businesses

Valuation of Acquired Assets or Businesses

New Accounting Pronouncements

Recently Adopted

See Note 14 for further discussion of revenue recognition.

Not Yet Effective

Debt

12 Months Ended

Dec. 31, 2019

Debt [Abstract]

Debt

10. Debt

Credit Agreement

On December 1, 2017 we entered into a credit and guaranty agreement for a new $255.0 million senior secured credit facility, consisting of a $225.0 million secured term loan facility (the “Term Loan Facility”) and a $30.0 million secured revolving credit facility (“the Revolving Credit Facility” and, together with the Term Loan Facility, the “Credit Agreement”). We and each of our existing domestic subsidiaries (subject to certain exceptions and exclusions) guarantee the obligations under the Credit Agreement (the “Guarantors”). The Credit Agreement is secured by a security interest in substantially all existing and after-acquired real and personal property (subject to certain exceptions and exclusions) of us and the Guarantors.

On December 1, 2017 we borrowed the entire $225.0 million Term Loan Facility. The proceeds of the Term Loan Facility were used along with cash on hand and shares of CryoLife common stock to (i) fund the previously announced JOTEC Acquisition, (ii) pay certain fees and expenses related to the JOTEC Acquisition and the Credit Agreement and (iii) pay the outstanding balance of our existing credit facility under the Amended Debt Agreement. The Revolving Credit Facility is undrawn following the JOTEC Acquisition and may be used for working capital, capital expenditures, acquisitions permitted under the Credit Agreement, and other general corporate purposes pursuant to the terms of the Credit Agreement.

Loans under the Term Loan Facility are repayable on a quarterly basis according to the amortization provisions set forth in the Credit Agreement. We have the right to prepay loans under the Credit Agreement in whole or in part at any time. Amounts repaid in respect of loans under the Term Loan Facility may not be reborrowed. Amounts repaid in respect of loans under the Revolving Credit

Facility may be reborrowed. All outstanding principal and interest in respect of (i) the Term Loan Facility must be repaid on or before December 1, 2024 and (ii) the Revolving Credit Facility must be repaid on or before December 1, 2022.

In October 2018 we finalized an amendment to the Credit Agreement to reprice, resulting in a reduction in the interest rate margins over base rates on the Term Loan Facility. The loans under the Term Loan Facility bear interest, at our option, at a floating annual rate equal to either, the base rate plus a margin of 2.25%, or LIBOR plus a margin of 3.25%. Prior to the repricing, the optional floating annual rate was equal to either, the base rate plus a margin of 3.00%, or LIBOR plus a margin of 4.00%. The loans under the Revolving Credit Facility bear interest, at our option, at a floating annual rate equal to either the base rate plus a margin of between 3.00% and 3.25%, depending on our consolidated leverage ratio, or LIBOR plus a margin of between 4.00% and 4.25%, depending on our consolidated leverage ratio. While a payment or bankruptcy event of default exists, we are obligated to pay a per annum default rate of interest of 2.00% in excess of the interest rate otherwise payable with respect to the overdue principal amount of any loans outstanding and overdue interest payments and other overdue fees and amounts. As of December 31, 2019 the aggregate interest rate was 5.19%. We were obligated to pay an unused commitment fee equal to 0.50% of the un-utilized portion of the revolving loans. In addition, we are also obligated to pay other customary fees for a credit facility of this size and type.

The Credit Agreement contains certain customary affirmative and negative covenants, including covenants that limit our ability, and the ability of our subsidiaries to, among other things, grant liens, incur debt, dispose of assets, make loans and investments, make acquisitions, make certain restricted payments, merge or consolidate, change their business or accounting or reporting practices, in each case subject to customary exceptions for a credit facility of this size and type. In addition, with respect to the Revolving Credit Facility, when the principal amount of loans outstanding thereunder is in excess of 25% of the Revolving Credit Facility, the Credit Agreement requires us to comply with a specified maximum first lien net leverage ratio. The Credit Agreement prohibits the payment of certain restricted payments, including cash dividends.

The Credit Agreement includes certain customary events of default that include, among other things, non-payment of principal, interest or fees, inaccuracy of representations and warranties, breach of covenants, cross-default to certain material indebtedness, bankruptcy and insolvency and change of control. Upon the occurrence and during the continuance of an event of default, the lenders may declare all outstanding principal and accrued but unpaid interest under the Credit Agreement immediately due and payable and may exercise the other rights and remedies provided under the Credit Agreement and related loan documents.

Government Supported Bank Debt

In June 2015, JOTEC GmbH obtained two loans of Sparkasse Zollernalb, which are government sponsored by the Kreditanstalt für Wiederaufbau Bank (KFW). Both KFW loans have a term of nine years and the interest rates are 2.45% and 1.4%.

The short-term and long-term balances of our term loans are as follows (in thousands):


	As of December 31,
	2019		2018
Term loan balance	$	220,500	$	222,750
2.45% Sparkasse Zollernalb (KFW Loan 1)		1,061		1,318
1.40% Sparkasse Zollernalb (KFW Loan 2)		1,615		1,885
Total loan Balance		223,176		225,953
Less unamortized loan origination costs		(7,441)		(9,072)
Total borrowed		215,735		216,881
Less short-term loan balance		(1,164)		(1,160)
Long-term loan balance	$	214,571	$	215,721

At December 31, 2019 the aggregate maturities of long-term debt for the next five years is as follows (in thousands):


	2020		2021		2022		2023		2024		Thereafter		Total
Maturities	$	2,780	$	2,780	$	2,780	$	2,780	$	211,843	$	213	$	223,176

Our aggregate maturity schedule is subject to change due to a provision within the Credit Agreement that requires us to make annual prepayments based on an excess cash flow calculation.

Interest

Total interest expense was $14.9 million, $15.8 million, and $4.9 million in 2019, 2018, and 2017, respectively. Interest expense includes interest on debt and uncertain tax positions in all periods.

Income (Loss) Per Common Share

12 Months Ended

Dec. 31, 2019

Income (Loss) Per Common Share [Abstract]

Income (Loss) Per Common Share

16. Income (Loss) Per Common Share

The following table sets forth the computation of basic and diluted (loss) income per common share (in thousands, except per share data):


Basic income (loss) per common share	2019		2018		2017
Net income (loss)	$	1,720	$	(2,840)	$	3,704
Net (income) loss allocated to participating securities		(12)		27		(63)
Net income (loss) allocated to common shareholders	$	1,708	$	(2,813)	$	3,641

Basic weighted-average common shares outstanding		37,118		36,412		33,008
Basic income (loss) per common share	$	0.05	$	(0.08)	$	0.11

Diluted income (loss) per common share	2019		2018		2017
Net income (loss)	$	1,720	$	(2,840)	$	3,704
Net (income) loss allocated to participating securities		(12)		27		(61)
Net income (loss) allocated to common shareholders	$	1,708	$	(2,813)	$	3,643

Basic weighted-average common shares outstanding		37,118		36,412		33,008
Effect of dilutive options and awards^a		742		-		1,155
Diluted weighted-average common shares outstanding		37,860		36,412		34,163
Diluted income (loss) per common share	$	0.05	$	(0.08)	$	0.11

_____________________

^aWe excluded stock options from the calculation of diluted weighted-average common shares outstanding if the per share value, including the sum of (i) the exercise price of the options and (ii) the amount of the compensation cost attributed to future services and not yet recognized, was greater than the average market price of the shares, because the inclusion of these stock options would be antidilutive to (loss) income per common share. For the year ended December 31, 2018 all stock options and awards were excluded from the calculation of weighted-average common shares outstanding as these would be antidilutive to the net loss. For the years ended December 31, 2019 and 2017 stock options to purchase 131,000 and 227,000 shares, respectively, were excluded from the calculation of diluted weighted-average common shares outstanding.

Consolidated Statements Of Operations And Comprehensive (Loss) Income - USD ($)
shares in Thousands, $ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Revenues:

Cost of products and preservation services:

$ 276,222

$ 262,841

$ 189,702

General, administrative, and marketing

93,209

89,857

61,060

Gross margin

183,013

172,984

128,642

Operating expenses:

143,011

140,574

101,211

Research and development

22,960

23,098

19,461

Total operating expenses

165,971

163,672

120,672

Operating income

17,042

9,312

7,970

Interest expense

14,886

15,788

4,881

Interest income

(738)

(226)

(212)

Other expense (income), net

1,250

141

(260)

Income (loss) before income taxes

1,644

(6,391)

3,561

Income tax (benefit) expense

(76)

(3,551)

(143)

Weighted-average common shares outstanding:

$ 1,720

$ (2,840)

$ 3,704

Income (loss) per common share:

Basic

$ 0.05

$ (0.08)

$ 0.11

Diluted

^[1]

$ 0.05

$ (0.08)

$ 0.11

Basic

37,118

36,412

33,008

Diluted

37,860

36,412

34,163

Other comprehensive (loss) income

$ 1,720

$ (2,840)

$ 3,704

(2,517)

(7,929)

2,286

Comprehensive (loss) income

(797)

(10,769)

5,990

Products [Member]

Revenues:

Cost of products and preservation services:

197,246

187,394

119,631

Preservation Services [Member]

55,022

53,772

29,798

Revenues:

Cost of products and preservation services:

78,976

75,447

70,071

Summary Of Financial Instruments Measured At Fair Value

$ 38,187

$ 36,085

$ 31,262

[1]

Goodwill And Other Intangible Assets (Scheduled Amortization Of Intangible Assets For Next Five Years) (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Goodwill And Other Intangible Assets [Abstract]
2020	$ 12,406
2021	12,383
2022	11,838
2023	11,499
2024	11,279
Total	$ 59,405

Shareholders' Equity (Narrative) (Details) - Common Stock [Member] - JOTEC [Member] $ in Millions	Dec. 01, 2017 USD ($) shares
Equity, Class of Treasury Stock [Line Items]
Common shares issued \| shares	2,682,754
Common stock consideration \| $	$ 53.1

Leases (Schedule Of Minimum Lease Payments For Finance, Operating, And Sublease Income Leases) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Leases [Abstract]
Finance Leases, 2020	$ 712
Finance Leases, 2021	658
Finance Leases, 2022	613
Finance Leases, 2023	612
Finance Leases, 2024	610
Finance Leases, Thereafter	3,467
Finance Leases, Total minimum lease payments	6,672
Finance Leases, Less amount representing interest	660
Finance Leases, Present value of net minimum lease payments	6,012
Finance Leases, Less current maturities	597	$ 729
Finance Leases, Lease liabilities, less current maturities	5,415	$ 5,937
Operating Leases, 2020	6,585
Operating Leases, 2021	6,280
Operating Leases, 2022	3,809
Operating Leases, 2023	2,584
Operating Leases, 2024	2,570
Operating Leases, Thereafter	5,027
Operating Leases, Total minimum lease payments	26,855
Operating Leases, Less amount representing interest	3,450
Operating Leases, Present value of net minimum lease payments	23,405
Operating Leases, Less current maturities	5,487
Operating Leases, Lease liabilities, less current maturities	17,918
Sublease Income, 2020	905
Sublease Income, 2021	905
Sublease Income, 2022	306
Sublease Income, Total minimum lease payments	$ 2,116

Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

Employee Benefit Plans [Abstract]

Employee Benefit Plans

13. Employee Benefit Plans

401(k) Plan

We have a 401(k) savings plan (“401(k) Plan”) providing retirement benefits to all employees who have completed at least three months of service. We made matching contributions of 100% of each participant's contribution for up to 3.5% of each participant’s salary in 2019 and 3% in 2018 and 2017. Our contributions approximated $1.6 million, $1.4 million, and $1.4 million for the years

ended 2019, 2018, and 2017, respectively. We may make discretionary contributions to the 401(k) Plan; however, no discretionary contributions were made in any of the past three years.

Deferred Compensation Plan

On January 1, 2011 we initiated a nonqualified Deferred Compensation Plan (“Deferred Plan”). The Deferred Plan allows certain of our employees to defer receipt of a portion of their salary and cash bonus. The Deferred Plan provides for tax-deferred growth of deferred compensation. Pursuant to the terms of the Deferred Plan, we agree to return the deferred amounts plus gains and losses, based on investment fund options chosen by each respective participant, to the plan participants upon distribution. All deferred amounts and deemed earnings thereon are vested at all times. We have no current plans to match any contributions. Amounts owed to plan participants are unsecured obligations of the Company. We have established a rabbi trust in which it will make contributions to fund our obligations under the Deferred Plan. Pursuant to the terms of the trust, we will be required to make contributions each year to fully match our obligations under the Deferred Plan. The trust’s funds are primarily invested in Company Owned Life Insurance (“COLI”), and we plan to hold the policies until the deaths of the insured.

Our deferred compensation liabilities are recorded as a component of other current liabilities or long-term deferred compensation liabilities, as appropriate, based on anticipated distribution dates. The cash surrender value of COLI is recorded in other long-term assets. Changes in the value of participant accounts and changes in the cash surrender value of COLI are recorded as part of our operating expenses and are subject to our normal allocation of expenses to inventory and deferred preservation costs.

Income Taxes (Schedule Of Income Before Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes [Abstract]
Domestic	$ 6,369	$ 4,560	$ 5,086
Foreign	(4,725)	(10,951)	(1,525)
Income (loss) before income taxes	$ 1,644	$ (6,391)	$ 3,561

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Financial Instruments [Abstract]


December 31, 2019	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	1,472		--		--	$	1,472
Restricted securities:
Money market funds		528		--		--		528
Endospan Loan		--		--		358		358
Total assets	$	2,000	$	--	$	358	$	2,358


December 31, 2018	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds		1,445		--		--		1,445
Restricted securities:
Money market funds		747		--		--		747
Total assets	$	2,192	$	--	$	--	$	2,192

Reconciliation Of Changes In Fair Value Of Level 3 Liabilities


		Endospan Loan
Balance as of December 31, 2018	$	--
Initial value of Endospan Loan		358
Change in valuation of Endospan Loan		--
Balance as of December 31, 2019	$	358

Acquisition Of JOTEC

12 Months Ended

Dec. 31, 2019

Acquisition Of JOTEC [Abstract]

Acquisition of JOTEC

3. Acquisition of JOTEC

Overview

On December 1, 2017 we acquired JOTEC (the “JOTEC Acquisition”) for a contract value of approximately $225.0 million, subject to certain adjustments. JOTEC is being operated as a wholly-owned subsidiary of CryoLife. In connection with the closing of the JOTEC Acquisition, CryoLife entered into a senior secured credit facility in an aggregate principal amount of $255.0 million, which includes a $225.0 million term loan and a $30.0 million revolving credit facility. See Note 10 for further discussion of the senior secured credit facility.

Accounting for the Transaction

The purchase price of the JOTEC Acquisition totaled approximately $222.2 million, including debt and cash acquired as determined on the date of closing, consisting of $169.1 million in cash and 2,682,754 shares of CryoLife common stock, with a value of $53.1 million on the date of the closing.

We incurred transaction and integration costs of $1.0 million, $7.4 million, and $7.7 million for the years ended December 31, 2019, 2018 and 2017, respectively, primarily related to the acquisition, which included, among other costs, expenses related to the termination of international agreements, severance costs, and legal, professional, and consulting costs. These costs were expensed as incurred and were primarily recorded as general, administrative, and marketing expenses on our Consolidated Statements of Operations and Comprehensive (Loss) Income.

Cash Equivalents And Restricted Cash And Securities

12 Months Ended

Dec. 31, 2019

Cash Equivalents And Restricted Cash And Securities [Abstract]

Cash Equivalents And Restricted Cash And Securities

5. Cash Equivalents and Restricted Cash and Securities

The following is a summary of cash equivalents and marketable securities (in thousands):



			Unrealized		Estimated
			Holding		Market
December 31, 2019	Cost Basis		Gains (Losses)		Value
Cash equivalents:
Money market funds	$	1,472		--	$	1,472
Restricted securities:
Money market funds		528		--		528

			Unrealized		Estimated
			Holding		Market
December 31, 2018	Cost Basis		Gains (Losses)		Value
Cash equivalents:
Money market funds	$	1,445		--	$	1,445
Restricted securities:
Money market funds		747		--		747

As of December 31, 2019 and 2018 $528,000 and $747,000, respectively, of our money market funds were designated as short-term restricted securities due to a contractual commitment to hold the securities as pledged collateral relating primarily to international tax obligations.

There were no gross realized gains or losses on cash equivalents or restricted securities for the years ended December 31, 2019, 2018, and 2017. As of December 31, 2019, $528,000 of our restricted securities had a maturity date within three months. As of December 31, 2018, $512,000 of our restricted securities had a maturity date within three months and $235,000 of our restricted securities had a maturity date between three months and one year.

Income Taxes (Narrative) (Details) - USD ($)	12 Months Ended
Income Taxes (Narrative) (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Effective income tax rate	5.00%	56.00%	4.00%
FDII deduction	$ (737,000)	$ (525,000)
Interest deductibility threshold	30.00%
Interest deduction limit	$ 10,500,000	6,600,000
Excess interest not deducted	$ 2,400,000	$ 17,700,000
Federal statutory income tax rate	21.00%	21.00%	34.00%
Valuation allowances against deferred tax assets	$ 3,218,000	$ 3,372,000
Net deferred tax liability	20,363,000	23,156,000
Federal net operating loss carryforwards related to the acquisitions of Cardiogenesis and Hemosphere	2,700,000
State net operating loss carryforwards	2,800,000
Foreign net operating loss carryforwards	$ 1,600,000
Operating loss carryforwards expiration date	Dec. 31, 2022
Research and development tax credit carryforwards	$ 631,000
Total uncertain tax liability including interest and penalties	4,000,000.0	4,300,000
Uncertain tax liability recorded as reduction to deferred tax assets	300,000	286,000
Uncertain tax liability recorded to non-current liability	3,700,000	$ 4,000,000.0
Approximate amount of uncertain tax liability to be recognized in 2020	$ 1,000,000.0
Research [Member]
Tax credit carryforwards expiration date	Dec. 31, 2026
Texas Tax Credit [Member]
State net operating loss carryforwards	$ 128,000
Tax credit carryforwards expiration date	Dec. 31, 2027
Foreign Authority [Member]
Net deferred tax liability	$ 35,000
Operating loss carryforwards expiration date	Dec. 31, 2024

Segment And Geographic Information (Revenues, Cost Of Products And Services, And Gross Margins For Operating Segments) (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2019

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

^[1]

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

$ 69,697

^[1]

$ 67,881

$ 71,139

$ 67,505

$ 67,799

$ 64,598

$ 68,496

$ 61,948

$ 52,826

^[1]

$ 43,999

$ 47,818

$ 45,059

$ 276,222

$ 262,841

$ 189,702

93,209

89,857

61,060

Total gross margin

46,552

^[1]

$ 45,222

$ 46,966

$ 44,273

45,191

$ 42,714

$ 45,851

$ 39,228

36,363

^[1]

$ 29,862

$ 32,905

$ 29,512

183,013

172,984

128,642

Goodwill

186,697

188,781

$ 188,305

186,697

188,781

188,305

Medical Devices [Member]

Operating Segments [Member] | Medical Devices [Member]

Goodwill

186,700

188,800

186,700

188,800

197,246

187,394

119,631

Operating Segments [Member] | Preservation Services [Member]

55,022

53,772

29,798

Total gross margin

142,224

133,622

89,833

78,976

75,447

70,071

38,187

36,085

31,262

Total gross margin

40,789

39,362

38,809

Domestic [Member]

Domestic [Member] | Long-Lived Assets [Member] | Geographic Concentration Risk [Member]

$ 150,553

144,651

$ 135,102

Concentration percentage

57.00%

GERMANY

GERMANY | Long-Lived Assets [Member] | Geographic Concentration Risk [Member]

Long-lived assets

$ 14,100

$ 13,100

$ 14,100

$ 13,100

Cash Equivalents And Restricted Cash And Securities [Abstract]

Concentration percentage

97.00%

98.00%

[1]	In December 2017 we completed our acquisition of JOTEC, which is operated as a wholly-owned subsidiary of CryoLife.

Financial Instruments (Summary Of Financial Instruments Measured At Fair Value) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	$ 2,358	$ 2,192
Money Market Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	1,472	1,445
Restricted securities	528	747
Endospan Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Endospan Loan	358
Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	2,000	2,192
Level 1 [Member] \| Money Market Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	1,472	1,445
Restricted securities	528	747
Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets
Level 2 [Member] \| Money Market Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents
Restricted securities
Level 2 [Member] \| Endospan Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Endospan Loan
Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	358
Level 3 [Member] \| Money Market Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents
Restricted securities
Level 3 [Member] \| Endospan Loan
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Endospan Loan	$ 358

Cash Equivalents And Restricted Cash And Securities (Tables)

12 Months Ended

Dec. 31, 2019

Summary Of Cash Equivalents And Restricted Securities



			Unrealized		Estimated
			Holding		Market
December 31, 2019	Cost Basis		Gains (Losses)		Value
Cash equivalents:
Money market funds	$	1,472		--	$	1,472
Restricted securities:
Money market funds		528		--		528

			Unrealized		Estimated
			Holding		Market
December 31, 2018	Cost Basis		Gains (Losses)		Value
Cash equivalents:
Money market funds	$	1,445		--	$	1,445
Restricted securities:
Money market funds		747		--		747

Goodwill And Other Intangible Assets (Summary Of Amortization Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill And Other Intangible Assets [Abstract]
Amortization expense	$ 10,850	$ 10,792	$ 5,085

Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Summary Of Significant Accounting Policies [Abstract]

Schedule Of Supplemental Disclosures Of Cash Flow Information



	2019		2018		2017
Cash paid during the year for:
Interest	$	13,297	$	15,005	$	2,561
Income taxes		1,944		1,699		3,358

Non-cash investing and financing activities:
Issuance of common stock for acquisition of JOTEC intangible assets	$	--	$	--	$	53,119

Schedule Of Depreciation Expense



	2019		2018		2017
Depreciation expense	$	7,467	$	7,303	$	4,648

Consolidated Statements Of Shareholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2016	$ 342,000	$ 187,061,000	$ 34,143,000	$ (429,000)	$ (12,134,000)	$ 208,983,000
Balance, shares at Dec. 31, 2016	34,230,000				(1,356,000)
Net income (loss)			3,704,000			3,704,000
Foreign currency translation gain (loss)				2,286,000		2,286,000
Comprehensive income (loss)						5,990,000
Stock issued for JOTEC transaction	$ 27,000	53,092,000				53,119,000
Stock issued for JOTEC transaction, shares	2,683,000
Equity compensation	$ 3,000	7,310,000				7,313,000
Equity compensation, shares	311,000
Exercise of options	$ 4,000	2,476,000			$ (585,000)	1,895,000
Exercise of options, shares	393,000				(30,000)
Employee stock purchase plan	$ 1,000	1,230,000				$ 1,231,000
Employee stock purchase plan, shares	93,000					93,000
Redemption and repurchase of stock to cover tax withholdings	$ (1,000)	(1,613,000)				$ (1,614,000)
Redemption and repurchase of stock to cover tax withholdings, shares	(92,000)
Balance at Dec. 31, 2017	$ 376,000	249,935,000	37,609,000	1,857,000	$ (12,719,000)	277,058,000
Balance, shares at Dec. 31, 2017	37,618,000				(1,386,000)
Cumulative effect of adjustment \| ASU 2016-09 [Member]		379,000	(238,000)			141,000
Net income (loss)			(2,840,000)			(2,840,000)
Foreign currency translation gain (loss)				(7,929,000)		(7,929,000)
Comprehensive income (loss)						(10,769,000)
Stock issued for JOTEC transaction, shares
Equity compensation	$ 3,000	6,806,000				6,809,000
Equity compensation, shares	287,000
Exercise of options	$ 5,000	4,382,000			$ (1,872,000)	2,515,000
Exercise of options, shares	578,000				(98,000)
Employee stock purchase plan	$ 1,000	1,338,000				$ 1,339,000
Employee stock purchase plan, shares	83,000					83,000
Redemption and repurchase of stock to cover tax withholdings		(2,100,000)				$ (2,100,000)
Redemption and repurchase of stock to cover tax withholdings, shares	(103,000)
Balance at Dec. 31, 2018	$ 385,000	260,361,000	34,984,000	(6,072,000)	$ (14,591,000)	275,067,000
Balance, shares at Dec. 31, 2018	38,463,000				(1,484,000)
Cumulative effect of adjustment \| ASU 606 [Member]			215,000			215,000
Net income (loss)			1,720,000			1,720,000
Foreign currency translation gain (loss)				(2,517,000)		(2,517,000)
Comprehensive income (loss)						(797,000)
Equity compensation	$ 2,000	9,409,000				9,411,000
Equity compensation, shares	254,000
Exercise of options	$ 3,000	3,292,000				3,295,000
Exercise of options, shares	334,000
Employee stock purchase plan	$ 1,000	1,462,000				$ 1,463,000
Employee stock purchase plan, shares	61,000					61,000
Redemption and repurchase of stock to cover tax withholdings	$ (1,000)	(2,742,000)				$ (2,743,000)
Redemption and repurchase of stock to cover tax withholdings, shares	(94,000)
Balance at Dec. 31, 2019	$ 390,000	271,782,000	36,704,000	$ (8,589,000)	$ (14,591,000)	$ 285,696,000
Balance, shares at Dec. 31, 2019	39,018,000				(1,484,000)
Cumulative effect of adjustment \| ASU 2016-09 [Member]		$ 379,000	$ (238,000)

Summary Of Significant Accounting Policies (Narrative) (Details)		12 Months Ended
	Mar. 08, 2019 USD ($)	Dec. 31, 2019 USD ($) $ / shares item	Dec. 31, 2018 USD ($) $ / shares	Dec. 31, 2017 USD ($) $ / shares	Jan. 01, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Foreign currency translation gain (loss)		$ (1,200,000)	$ (2,600,000)	$ 257,000
Advertising expense		$ 1,700,000	$ 732,000	$ 606,000
Quarterly cash dividend \| $ / shares		$ 0	$ 0	$ 0
Allowance for doubtful accounts		$ 966,000	$ 533,000
Write-down to inventory		601,000	212,000	$ 1,200,000
Write-downs to deferred preservation costs		787,000	437,000	922,000
Net present value of operating lease liability		23,405,000
Operating lease right-of-use assets, net		$ 21,994,000
Weighted average discount rate	5.83%	5.40%			5.50%
Weighted average remaining lease term		5 years 6 months			6 years
Deferred rent obligations		$ 2,400,000
Option to extend		29
Number of leases with termination option \| item		1
Operating lease, termination option, notice period requirement		2 years
Increase in net present value of right-of-use asset	$ 3,700,000
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Advertising expense amortization period		6 months
Estimated useful lives		3 years
Lease terms		1 year
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Advertising expense amortization period		1 year
Estimated useful lives		10 years
Lease terms		11 years
ESPP Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
ESPP, percentage of market price for eligible employees		85.00%
RSAs, PSAs, RSUs, PSUs And Stock Options [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		1 year
RSAs, PSAs, RSUs, PSUs And Stock Options [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Stock Options [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period within grant date stock options granted typically expire		7 years
ASU 2016-09 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative-effect adjustment				141,000
Net present value of operating lease liability					$ 22,700,000
Operating lease right-of-use assets, net					$ 22,700,000
ASU 606 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative-effect adjustment			215,000
Retained Earnings [Member] \| ASU 2016-09 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative-effect adjustment		$ (238,000)		(238,000)
Retained Earnings [Member] \| ASU 606 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative-effect adjustment			215,000
Additional Paid-In Capital [Member] \| ASU 2016-09 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative-effect adjustment		379,000		$ 379,000
Additional Paid-In Capital [Member] \| ASU 606 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative-effect adjustment
Deferred Tax Assets [Member] \| ASU 2016-09 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative-effect adjustment		$ 141,000

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes [Abstract]

Schedule Of Income Before Income Taxes


	2019		2018		2017
Domestic	$	6,369	$	4,560	$	5,086
Foreign		(4,725)		(10,951)		(1,525)
Income (loss) before income taxes	$	1,644	$	(6,391)	$	3,561

Schedule Of Income Tax Expense


	2019		2018		2017
Current:
Federal	$	48	$	402	$	521
State		80		246		110
Foreign		2,041		2,009		460
		2,169		2,657		1,091
Deferred:
Federal		(850)		(2,188)		(714)
State		(131)		(154)		70
Foreign		(1,264)		(3,866)		(590)
		(2,245)		(6,208)		(1,234)
Income tax benefit	$	(76)	$	(3,551)	$	(143)

Schedule Of Effective Income Tax Rate Reconciliation


	2019		2018		2017
Tax expense (benefit) at statutory rate	$	345	$	(1,340)	$	1,211
Increase (reduction) in income taxes resulting from:
Nondeductible executive compensation		778		320		145
Foreign income taxes		425		(250)		364
Foreign deferred items		365		--		--
Net operating losses		355		--		--
Foreign interest disallowance		292		--		--
Nondeductible entertainment expenses		201		206		258
Valuation allowance change		153		719		54
Prior year provision to return adjustments		43		--		--
State income taxes, net of federal benefit		(108)		(8)		212
Impact of Tax Cuts and Jobs Act		(155)		(238)		(255)
Unrealized income on investments		(203)		(337)		(163)
Net change in uncertain tax positions		(360)		(154)		(67)
Research and development credit		(400)		(557)		(525)
Equity compensation		(1,921)		(2,081)		(2,664)
Nondeductible transaction costs		--		--		1,676
Federal tax rate differential		--		--		(100)
Foreign tax credit		--		--		(133)
Domestic production activities deduction		--		--		(174)
Other		114		169		18
Total income tax benefit	$	(76)	$	(3,551)	$	(143)

Schedule Of Deferred Tax Assets And Liabilities


	2019		2018
Deferred tax assets:
Loss carryforwards	$	7,030	$	8,266
Finance and operating leases		7,497		1,824
Excess interest carryforward		4,544		4,786
Stock compensation		2,153		2,138
Accrued expenses		1,890		2,723
Deferred compensation		1,107		778
Property		1,147		--
Credit carryforwards		710		939
UNICAP		425		404
Inventory and deferred preservation costs write-downs		299		289
Tax benefit of tax reserves		52		217
Other		1,659		310
Less valuation allowance		(3,218)		(3,372)
Total deferred tax assets		25,295		19,302

	2019		2018
Deferred tax liabilities:
Intangible assets		(35,555)		(38,414)
Finance and operating leases		(7,048)		--
Debt costs		(1,917)		(2,331)
Property		(28)		(1,060)
Prepaid items		(494)		(477)
Other		(616)		(176)
Total deferred tax liabilities		(45,658)		(42,458)

Total net deferred tax liabilities	$	(20,363)	$	(23,156)

Schedule Of Uncertain Tax Position Liability And Liability For Interest And Penalties On Uncertain Tax Positions


	2019		2018		2017
Beginning balance	$	3,889	$	4,328	$	3,390
Increases related to current year tax positions		691		368		143
Decreases due to the lapsing of statutes of limitations		(880)		(467)		(254)
Decreases related to prior year tax positions		(154)		--		(106)
(Decreases) increases for foreign exchange differences		(22)		16		--
(Decreases) increases related to prior year tax positions		(1)		249		1,155
Decreases related to settlements		--		(605)		--
Ending balance	$	3,523	$	3,889	$	4,328

A reconciliation of the beginning and ending balances of our liability for interest and penalties on uncertain tax positions is as follows (in thousands):


	2019		2018		2017
Beginning balance	$	402	$	315	$	208
Accrual of interest and penalties		227		161		169
Decreases related to prior year tax positions		(195)		(74)		(62)
Ending balance	$	434	$	402	$	315

Stock Compensation (Summary Of Other Information Concerning Stock Options) (Details) - Stock Options [Member] - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of options granted	$ 11.47	$ 8.38	$ 5.97
Intrinsic value of options exercised	$ 6,519,000	$ 9,961,000	$ 4,748,000

Summary Of Significant Accounting Policies (Schedule Of Depreciation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Summary Of Significant Accounting Policies [Abstract]
Depreciation expense	$ 7,467	$ 7,303	$ 4,648

Stock Compensation (Schedule Of Shares Available For Grant) (Details) - shares	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized Shares	10,900,000
Available for Grant	2,334,000	1,253,000
1996 Discounted Employee Stock Purchase Plan, As Amended [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized Shares	1,900,000
Available for Grant	234,000	295,000
2009 Equity And Cash Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized Shares	9,000,000
Available for Grant	2,100,000	958,000

Selected Quarterly Financial Information (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2019

^[1]

Sep. 30, 2019

Jun. 30, 2019

Mar. 31, 2019

Dec. 31, 2018

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

^[1]

Sep. 30, 2017

^[1]

Jun. 30, 2017

^[1]

Mar. 31, 2017

^[1]

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Selected Quarterly Financial Information (Unaudited) [Abstract]

REVENUE

$ 69,697

$ 67,881

$ 71,139

$ 67,505

$ 67,799

$ 64,598

$ 68,496

$ 61,948

$ 52,826

$ 43,999

$ 47,818

$ 45,059

$ 276,222

$ 262,841

$ 189,702

GROSS MARGIN

46,552

45,222

46,966

44,273

45,191

42,714

45,851

39,228

36,363

29,862

32,905

29,512

183,013

172,984

128,642

NET (LOSS) INCOME

$ (681)

$ (134)

$ 2,832

$ (297)

$ (776)

$ 1,565

$ 226

$ (3,855)

$ (3,007)

$ 1,325

$ 3,163

$ 2,223

$ 1,720

$ (2,840)

$ 3,704

(LOSS) INCOME PER COMMON SHARE — DILUTED

$ (0.02)

$ 0.00

$ 0.07

$ (0.01)

$ (0.02)

$ 0.04

$ 0.01

$ (0.11)

$ (0.09)

$ 0.04

$ 0.09

$ 0.06

$ 0.05

^[2]

$ (0.08)

^[2]

$ 0.11

^[2]

[1]

In December 2017 we completed our acquisition of JOTEC, which is operated as a wholly-owned subsidiary of CryoLife.

[2]

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=117327953&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=116637391&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=117326831&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=116634182&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=117326831&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Income Taxes (Schedule Of Uncertain Tax Position Liability And Liability For Interest And Penalties On Uncertain Tax Positions) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes [Abstract]
Beginning balance	$ 3,889	$ 4,328	$ 3,390
Increases related to current year tax positions	691	368	143
Decreases due to the lapsing of statutes of limitations	(880)	(467)	(254)
Decreases related to prior year tax positions	(154)		(106)
(Decreases) increases for foreign exchange differences	(22)
(Decreases) increases for foreign exchange differences		16
(Decreases) Increases related to prior year tax positions		249	1,155
(Decreases) increases related to prior year tax positions	(1)
Decreases related to settlements		(605)
Ending balance	3,523	3,889	4,328
Beginning Balance	402	315	208
Accrual of interest and penalties	227	161	169
Decreases related to prior year tax positions	(195)	(74)	(62)
Ending Balance	$ 434	$ 402	$ 315

Stock Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Stock Compensation [Abstract]

Schedule Of Shares Available For Grant



	Authorized	Available for Grant
Plan	Shares	2019	2018
1996 Discounted Employee Stock Purchase Plan, as amended	1,900,000	234,000	295,000
2009 Equity and Cash Incentive Plan	9,000,000	2,100,000	958,000
Total	10,900,000	2,334,000	1,253,000

Schedule Of Stock Grant Activity For RSAs


		Weighted
		Average
		Grant Date
RSAs	Shares	Fair Value
Unvested at December 31, 2016	392,000	$	10.64
Granted	138,000		17.00
Vested	(129,000)		10.84
Forfeited	(18,000)		11.78
Unvested at December 31, 2017	383,000		12.81
Granted	128,000		23.83
Vested	(136,000)		12.96
Forfeited	(49,000)		12.07
Unvested at December 31, 2018	326,000		17.19
Granted	93,000		29.77
Vested	(149,000)		14.45
Forfeited	(27,000)		20.53
Unvested at December 31, 2019	243,000		23.30

Schedule Of Stock Grant Activity For PSAs


		Weighted
		Average
		Grant Date
PSAs	Shares	Fair Value
Unvested at December 31, 2016	250,000	$	10.18
Granted	--		--
Vested	(250,000)		10.18
Forfeited	--		--
Unvested at December 31, 2017	--		--
Granted	--		--
Vested	--		--
Forfeited	--		--
Unvested at December 31, 2018	-		--
Granted	--		--
Vested	--		--
Forfeited	--		--
Unvested at December 31, 2019	-		--

Schedule Of Stock Grant Activity For RSUs


		Weighted
		Average
		Remaining		Aggregate
		Contractual		Intrinsic
RSUs	Shares	Term in years		Value
Unvested at December 31, 2016	178,000		1.24	$	3,405,000
Granted	196,000
Vested	(64,000)
Forfeited	(24,000)
Unvested at December 31, 2017	286,000		1.26		5,477,000
Granted	115,000
Vested	(99,000)
Forfeited	(51,000)
Unvested at December 31, 2018	251,000		1.05		7,123,000
Granted	103,000
Vested	(101,000)
Forfeited	(27,000)
Unvested at December 31, 2019	226,000		0.93		6,131,000

Vested and expected to vest	226,000		0.93	$	6,131,000

Schedule Of Stock Grant Activity For PSUs


		Weighted
		Average
		Remaining		Aggregate
		Contractual		Intrinsic
PSUs	Shares	Term in years		Value
Unvested at December 31, 2016	188,000		0.77	$	3,603,000
Granted	126,000
Vested	(128,000)
Forfeited	(17,000)
Unvested at December 31, 2017	169,000		0.71		3,236,000
Granted	104,000
Vested	(109,000)
Forfeited	(17,000)
Unvested at December 31, 2018	147,000		0.72		4,179,000
Granted	322,000
Vested	(87,000)
Forfeited	(35,000)
Unvested at December 31, 2019	347,000		2.33		9,400,000

Vested and expected to vest	347,000		2.33	$	9,400,000

Summary Of Stock Option Activity



				Weighted
				Average
		Weighted		Remaining		Aggregate
		Average		Contractual		Intrinsic
	Shares	Exercise Price		Term in years		Value
Outstanding at December 31, 2016	1,911,000	$	8.59		3.55	$	20,179,000
Granted	260,000		16.30
Exercised	(394,000)		6.30
Forfeited	(31,000)		12.47
Expired	(5,000)		7.01
Outstanding at December 31, 2017	1,741,000		10.19		3.64		15,598,000
Granted	219,000		21.55
Exercised	(578,000)		7.59
Forfeited	(49,000)		14.10
Expired	--		--
Outstanding at December 31, 2018	1,333,000		13.04		3.93		20,439,000
Granted	169,000		29.62
Exercised	(334,000)		9.87
Forfeited	(39,000)		22.64
Expired	--		--
Outstanding at December 31, 2019	1,129,000		16.14		3.67		12,763,000

Vested and expected to vest	1,129,000	$	16.14		3.67	$	12,763,000
Exercisable at December 31, 2019	782,000	$	12.55		2.89	$	11,371,000

Summary Of Other Information Concerning Stock Options



	2019		2018		2017
Weighted-average fair value of options granted	$	11.47	$	8.38	$	5.97
Intrinsic value of options exercised		6,519,000		9,961,000		4,748,000

Schedule Of Weighted-Average Assumptions Used To Determine The Fair Value Of Options



	2019		2018		2017
	Stock	ESPP	Stock	ESPP	Stock	ESPP
	Options	Options	Options	Options	Options	Options
Expected life of options	5.00 Years	0.50 Years	5.00 Years	0.50 Years	4.75 Years	0.50 Years
Expected stock price volatility	0.40	0.39	0.40	0.34	0.40	0.39
Risk-free interest rate	2.54%	2.35%	2.64%	1.73%	1.87%	0.85%

Summary Of Total Stock Compensation Expenses



	2019		2018		2017
RSA, PSA, RSU, and PSU expense	$	7,451	$	5,076	$	5,335
Stock option and ESPP option expense		1,960		1,732		1,978
Total stock compensation expense	$	9,411	$	6,808	$	7,313

Inventories And Deferred Preservation Costs (Schedule Of Inventories) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Inventories And Deferred Preservation Costs [Abstract]
Raw materials and supplies	$ 21,180	$ 17,381
Work-in-process	5,127	3,858
Finished goods	26,764	24,239
Total inventories	$ 53,071	$ 45,478

Income Taxes (Schedule Of Income Tax Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes [Abstract]
Current: Federal	$ 48	$ 402	$ 521
Current: State	80	246	110
Current: Foreign	2,041	2,009	460
Current: Income tax expense	2,169	2,657	1,091
Deferred: Federal	(850)	(2,188)	(714)
Deferred: State	(131)	(154)	70
Deferred: Foreign	(1,264)	(3,866)	(590)
Deferred: Income tax expense	(2,245)	(6,208)	(1,234)
Income tax (benefit) expense	$ (76)	$ (3,551)	$ (143)

Financial Instruments

12 Months Ended

Dec. 31, 2019

Financial Instruments [Abstract]

Financial Instruments

4. Financial Instruments

A summary of financial instruments measured at fair value is as follows (in thousands):


December 31, 2019	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds	$	1,472		--		--	$	1,472
Restricted securities:
Money market funds		528		--		--		528
Endospan Loan		--		--		358		358
Total assets	$	2,000	$	--	$	358	$	2,358


December 31, 2018	Level 1		Level 2		Level 3		Total
Cash equivalents:
Money market funds		1,445		--		--		1,445
Restricted securities:
Money market funds		747		--		--		747
Total assets	$	2,192	$	--	$	--	$	2,192

We used prices quoted from our investment management companies to determine the Level 1 valuation of our investments in money market funds. We recorded the Endospan Loan, classified as Level 3, as a result of an agreement with Endospan in September 2019. See Note 2 for further discussion of the Endospan Loan. Changes in fair value of Level 3 assets are listed in the table below (in thousands):


		Endospan Loan
Balance as of December 31, 2018	$	--
Initial value of Endospan Loan		358
Change in valuation of Endospan Loan		--
Balance as of December 31, 2019	$	358

During the year ended December 31, 2017 we initially recorded certain non-financial assets at fair value related to the acquisition JOTEC. Disclosure of this initial fair value determination is included in Note 3 above.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Income (Loss) Per Common Share (Tables)

12 Months Ended

Dec. 31, 2019

Income (Loss) Per Common Share [Abstract]

Computation Of Basic And Diluted (Loss) Income Per Common Share


Basic income (loss) per common share	2019		2018		2017
Net income (loss)	$	1,720	$	(2,840)	$	3,704
Net (income) loss allocated to participating securities		(12)		27		(63)
Net income (loss) allocated to common shareholders	$	1,708	$	(2,813)	$	3,641

Basic weighted-average common shares outstanding		37,118		36,412		33,008
Basic income (loss) per common share	$	0.05	$	(0.08)	$	0.11

Diluted income (loss) per common share	2019		2018		2017
Net income (loss)	$	1,720	$	(2,840)	$	3,704
Net (income) loss allocated to participating securities		(12)		27		(61)
Net income (loss) allocated to common shareholders	$	1,708	$	(2,813)	$	3,643

Basic weighted-average common shares outstanding		37,118		36,412		33,008
Effect of dilutive options and awards^a		742		-		1,155
Diluted weighted-average common shares outstanding		37,860		36,412		34,163
Diluted income (loss) per common share	$	0.05	$	(0.08)	$	0.11

_____________________

Leases (Summary Of Lease Costs) (Details) - USD ($)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Leases [Abstract]

Amortization of property and equipment

$ 771,000

Interest expense on finance leases

124,000

Total finance lease expense

895,000

Operating lease expense

6,624,000

^[1]

$ 6,400,000

$ 4,900,000

Sublease income

(905,000)

Total lease expense

$ 6,614,000

[1]	Total rental expense for operating leases was $6.4 million in 2018 and $4.9 million in 2017.

Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Income Taxes [Abstract]
Loss carryforwards	$ 7,030	$ 8,266
Finance and operating leases	7,497	1,824
Excess interest carryforward	4,544	4,786
Stock compensation	2,153	2,138
Accrued expenses	1,890	2,723
Deferred compensation	1,107	778
Property	1,147
Credit carryforwards	710	939
UNICAP	425	404
Inventory and deferred preservation costs write-downs	299	289
Tax benefit of tax reserves	52	217
Other	1,659	310
Less valuation allowance	(3,218)	(3,372)
Total deferred tax assets	25,295	19,302
Intangible assets	(35,555)	(38,414)
Finance and operating leases	(7,048)
Debt costs	(1,917)	(2,331)
Property	(28)	(1,060)
Prepaid items	(494)	(477)
Other	(616)	(176)
Total deferred tax liabilities	(45,658)	(42,458)
Total net deferred tax liabilities	$ (20,363)	$ (23,156)

Inventories And Deferred Preservation Costs (Tables)

12 Months Ended

Dec. 31, 2019

Inventories And Deferred Preservation Costs [Abstract]

Schedule Of Inventories


	2019		2018
Raw materials and supplies	$	21,180	$	17,381
Work-in-process		5,127		3,858
Finished goods		26,764		24,239
Total inventories	$	53,071	$	45,478

Schedule Of Deferred Preservation Costs


	2019		2018
Cardiac tissues	$	15,365	$	15,972
Vascular tissues		17,186		17,202
Total deferred preservation costs	$	32,551	$	33,174

Inventories And Deferred Preservation Costs

12 Months Ended

Dec. 31, 2019

Inventories And Deferred Preservation Costs [Abstract]

Inventories And Deferred Preservation Costs

6. Inventories and Deferred Preservation Costs

Inventories at December 31, 2019 and 2018 are comprised of the following (in thousands):


	2019		2018
Raw materials and supplies	$	21,180	$	17,381
Work-in-process		5,127		3,858
Finished goods		26,764		24,239
Total inventories	$	53,071	$	45,478

Deferred preservation costs at December 31, 2019 and 2018 are comprised of the following (in thousands):


	2019		2018
Cardiac tissues	$	15,365	$	15,972
Vascular tissues		17,186		17,202
Total deferred preservation costs	$	32,551	$	33,174

We maintain consignment inventory of our On-X heart valves at domestic hospital locations and On-X heart valves and JOTEC products at international hospital locations to facilitate usage. We retain title to and control over this consignment inventory until the device is implanted, at which time we invoice the hospital and recognize revenue. As of December 31, 2019 we had $12.0 million in consignment inventory, with approximately 51% in domestic locations and 49% in foreign locations. As of December 31, 2018 we had $11.2 million in consignment inventory, with approximately 55% in domestic locations and 45% in foreign locations.

Agreements With Endospan (Narrative) (Details) - Endospan [Member] - USD ($)			1 Months Ended	12 Months Ended
	Dec. 31, 2019	Sep. 11, 2019	Sep. 30, 2019	Dec. 31, 2019
Variable Interest Entity [Line Items]
Securities purchase option agreement		$ 1,000,000.0	$ 1,000,000.0
Securities purchase option agreement, expiration period				90 days
Transaction and integration costs				$ 1,000,000.0
Per three tranches of funding		$ 5,000,000.0	5,000,000.0
Required percentage of number of patients before third tranche of loan funding can be acquired		50.00%
Investment in VIE	$ 15,000,000.0		15,000,000.0
Endospan loan, fair value	358,000			358,000
Securities option agreement, fair value	4,800,000			4,800,000
Distribution agreements, fair value	$ 9,800,000			$ 9,800,000
Distribution agreement, amortization period				5 years
Minimum [Member]
Variable Interest Entity [Line Items]
Option to purchase outstanding securities			350,000,000.0
Maximum [Member]
Variable Interest Entity [Line Items]
Option to purchase outstanding securities			450,000,000.0
Secured Debt [Member]
Variable Interest Entity [Line Items]
Loan amount		$ 15,000,000.0
Interest rate on amounts borrowed		5.00%
JOTEC [Member]
Variable Interest Entity [Line Items]
Distribution fee		$ 9,000,000.0	$ 9,000,000.0

Segment And Geographic Information (Narrative) (Details)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2019

USD ($)

^[1]

Sep. 30, 2019

USD ($)

Jun. 30, 2019

USD ($)

Mar. 31, 2019

USD ($)

Dec. 31, 2018

USD ($)

Sep. 30, 2018

USD ($)

Jun. 30, 2018

USD ($)

Mar. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

^[1]

Sep. 30, 2017

USD ($)

^[1]

Jun. 30, 2017

USD ($)

^[1]

Mar. 31, 2017

USD ($)

^[1]

Dec. 31, 2019

USD ($)

segment

Dec. 31, 2018

USD ($)

Dec. 31, 2017

USD ($)

Number of reportable segments | segment

Revenues

$ 69,697

$ 67,881

$ 71,139

$ 67,505

$ 67,799

$ 64,598

$ 68,496

$ 61,948

$ 52,826

$ 43,999

$ 47,818

$ 45,059

$ 276,222

$ 262,841

$ 189,702

Intersegment Eliminations [Member]