☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |||
(Address of principal executive offices) | (Zip code) | |||
Title of each class | Trading symbol(s) | Name of Exchange on Which Registered |
x | Accelerated filer | ☐ | |
Non-accelerated filer | o | Smaller reporting company | ☐ |
Emerging growth company | ☐ | ||
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Part I | |||
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Item 1A | |||
Item 1B | |||
Item 2 | |||
Item 3 | |||
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Part II | |||
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Item 7 | |||
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Item 9A | |||
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Part III | |||
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Part IV | |||
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ITEM 1. | BUSINESS |
Name | Age | Position | ||
Karen L. Burton | 52 | Vice President, Controller and Chief Accounting Officer | ||
Daniel A. Carestio | 47 | Senior Vice President and Chief Operating Officer | ||
Cary L. Majors | 45 | Senior Vice President, North America Commercial Operations | ||
Walter M Rosebrough, Jr. | 66 | President and Chief Executive Officer | ||
Renato G. Tamaro | 51 | Vice President and Corporate Treasurer | ||
Michael J. Tokich | 51 | Senior Vice President and Chief Financial Officer | ||
J. Adam Zangerle | 53 | Senior Vice President, General Counsel, and Secretary | ||
ITEM 1A. | RISK FACTORS |
Risk or uncertainty | Discussion |
Doing business internationally | |
We conduct manufacturing, sales and distribution operations on a worldwide basis and are subject to a variety of risks associated with doing business internationally. Implementation and achievement of international growth objectives also may be impeded by political, social, and economic uncertainties or unrest in countries in which we conduct operations or market or distribute our products. | We maintain significant international operations, including operations in the U.S., Canada, Mexico, Europe, Asia Pacific and Latin America. As a result, we are subject to a number of risks and complications associated with international manufacturing, sales, services, and other operations. These include: risks associated with currency exchange rate fluctuations; difficulties in enforcing agreements and collecting receivables through some foreign legal systems; enhanced credit risks in certain European countries as well as emerging market regions; Customers with longer payment cycles than Customers in the United States; significant variations in tax rates among the countries in which we do business, and tax withholding obligations in respect of our earnings; tax laws that restrict our ability to use tax credits, offset gains, or repatriate funds; tariffs, exchange controls or other trade restrictions including transfer pricing restrictions when products produced in one country are sold to an affiliated entity in another country; the impact of the COVID-19 pandemic on our supply chain and the industries in which we operate; general economic and political conditions in countries where we operate or where end users of our products are situated, including the potential implications of the COVID-19 pandemic, the U.K. “Brexit”, for the U.K. and/or regional or global economies, or the withdrawal from the EU of other member countries; difficulties associated with managing a large organization spread throughout various countries; difficulties in enforcing intellectual property rights or weaker intellectual property right protections in some countries and difficulties associated with compliance with a variety of laws and regulations governing international trade, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act and laws and regulations dealing with trade with persons in sanctioned countries. |
Compliance with multiple, and potentially conflicting, international laws and regulations, import and export limitations, anti-corruption laws, and exchange controls may be difficult, burdensome or expensive. | We are subject to compliance with various laws and regulations, including the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act, and similar anti-bribery laws, which generally prohibit companies and their intermediaries from making improper payments to officials for the purpose of obtaining or retaining business. We are also subject to limitations on trade with persons in sanctioned countries. While our employees and agents are required to comply with these laws, we cannot assure you that our internal policies and procedures will always protect us from violations of these laws, despite our commitment to legal compliance and corporate ethics. |
Risk or uncertainty | Discussion |
Economic conditions and financial market access | |
The COVID-19 pandemic has disrupted our operations and could have a material adverse effect on our business and financial condition. | The COVID-19 pandemic, along with the response to the pandemic by governmental and other actors, has disrupted our operations. We have experienced temporary mandatory and voluntary facility closures in certain jurisdictions in which we operate. Furthermore, we have experienced less demand for some of our products and services as a result of official prohibitions or voluntary deferrals of certain medical procedures, and other factors, which we believe has been exacerbated by the impact of stay-at-home orders. Additionally, the COVID-19 outbreak has, caused temporary disruptions in our supply chain. Long-term facility closures or other restrictions could materially adversely affect our ability to adequately staff, supply or otherwise maintain our operations. Such restrictions also may have a substantial impact on our Customers and our sales cycles. The COVID-19 pandemic may put pressure on overall spending for our products and services, and may cause our Customers to modify spending priorities or delay or abandon purchasing decisions. Moreover, because a large number of our employees have transitioned to working from home, we may be subject to increased vulnerability to cyber and other information technology risks. We have modified, and may further modify, our business practices in response to the risks and negative impacts associated with the COVID-19 pandemic. However, there can be no assurance that these measures will be temporary or successful. The impact of the COVID-19 pandemic continues to evolve and its ultimate duration, severity and disruption to our business, Customers and supply chain, and the related financial impact to us, cannot be accurately forecasted at this time. Should such disruption continue for an extended period, the adverse effect on our business, results of operations and financial condition could be more severe. Additionally, continued weak economic conditions generally could result in extended weak demand for our products and services. Furthermore, future public health crises are possible and could involve some or all of the risks discussed above. |
Changes in economic climate may adversely affect us. | Adverse economic cycles or conditions, and Customer, regulatory or government response to those cycles or conditions, have affected and could further affect our results of operations. The onset of these cycles or conditions may not be foreseeable and there can be no assurance when they will begin to improve after they occur. There also can be no assurance as to the strength or length of any recovery from a business downturn or recession. Credit and liquidity problems may make it difficult for some businesses to access credit markets and obtain financing and may cause some businesses to curtail spending to conserve cash in anticipation of persistent business slowdowns and liquidity needs. If our Customers have difficulty financing their purchases due to tight credit markets or related factors or because of other operational or utilization problems they may be experiencing or otherwise decide to curtail their purchases, our business could be adversely affected. Our exposure to bad debt losses could also increase if Customers are unable to pay for products previously ordered and delivered. Many of our Customers are governmental entities or other entities that rely on government healthcare systems or government funding. If government funding for healthcare becomes limited or restricted in countries in which we operate, including as a result of the impacts of the COVID-19 pandemic, our Customers may be unable to pay their obligations on a timely basis or to make payment in full and it may become necessary to increase reserves. In addition, there can be no assurance that there will not be an increase in collection difficulties. Prospectively, additional adverse effects resulting from these conditions may include decreased healthcare utilization, further pricing pressure on our products and services, and/or weaker overall demand for our products and services, particularly capital products. |
Our acquisition activity and ability to grow organically may be adversely affected if we are unable to continue to access the financial markets. | Our recent acquisitions have been financed largely through cash on hand and borrowings under our bank credit facilities. Future acquisitions or other capital requirements will necessitate additional cash. To the extent our existing sources of cash are insufficient to fund these or other future activities, we may need to raise additional funds through new or expanded borrowing arrangements or equity. There can be no assurance that we will be able to obtain additional funds beyond those available under existing bank credit facilities on terms favorable to us, or at all, or that such facilities can be replaced when they terminate. |
Risk or uncertainty | Discussion |
Healthcare laws and reimbursement | |
Changes in healthcare laws or government and other third-party payor reimbursement levels to healthcare providers, or failure to meet healthcare reimbursement or other requirements, might negatively impact our business. | We sell many of our products and services to hospitals and other healthcare providers and pharmaceutical manufacturers. Many of these Customers are subject to or supported by government programs or receive reimbursement for services from third-party payors, such as government programs, including Medicare and Medicaid in the U.S., private insurance plans, and managed care programs. Reimbursement systems vary significantly by country. Government-managed healthcare systems control reimbursement for healthcare services in many countries. Public budgetary constraints may significantly impact the ability of hospitals, pharmaceutical manufacturers, and other Customers supported by such systems to purchase our products. Government or other third-party payors may deny or change coverage, reduce their current levels of reimbursement for healthcare services, or otherwise implement measures to regulate pricing or contain costs. In addition, our costs may increase more rapidly than reimbursement levels or permissible pricing increases or we may not satisfy the standards or requirements for reimbursement. Among other provisions, the U.S. Patient Protection and Affordable Care Act, as amended by the Health Care and Education Affordability Reconciliation Act, imposed an excise tax on medical devices manufactured or offered for sale in the United States. Late in 2019, U.S. Congress enacted legislation that repealed the excise tax, which had been suspended during calendar years 2016 through 2019. In addition, we have been required to commit significant resources to “Sunshine Act” compliance. Various additional health care reform proposals have emerged at the federal and state level, and we are unable to predict which, if any, of those proposals will be enacted. |
Risk or uncertainty | Discussion |
Product and service related regulations and claims | |
We are subject to extensive regulatory requirements and must receive and maintain regulatory clearance or approval for many products and operations. Failure to receive or maintain, or delays in receiving, clearance or approvals may hurt our revenues, profitability, financial condition, or value. | Our operations are subject to extensive regulation in the countries where we do business. In the United States, our products and services are regulated by the FDA and other regulatory authorities. In many foreign countries, sales of our products and services are subject to extensive regulations that may or may not be comparable to those of the FDA. In Europe, our products are regulated primarily by country and community regulations of those countries within the European Economic Area and must conform to the requirements of those authorities. Government regulation applies to nearly all aspects of testing, manufacturing, safety, labeling, storing, recordkeeping, reporting, promoting, distributing, and importing or exporting of medical devices, products, and services. In general, unless an exemption applies, a sterilization, decontamination or medical device or product or service must receive regulatory approval or clearance before it can be marketed or sold. Modifications to existing products or the marketing of new uses for existing products also may require regulatory approvals, approval supplements or clearances. If we are unable to obtain any required approvals, approval supplements or clearances for any modification to a previously cleared or approved device, we may be required to cease manufacturing and sale, or recall or restrict the use of such modified device, pay fines, or take other action until such time as appropriate clearance or approval is obtained. Regulatory agencies may refuse to grant approval or clearance, or review and disagree with our interpretation of approvals or clearances, or with our decision that regulatory approval is not required or has been maintained. Regulatory submissions may require the provision of additional data and may be time consuming and costly, and their outcome is uncertain. Regulatory agencies may also change policies, adopt additional regulations, or revise existing regulations, each of which could prevent or delay approval or clearance of devices, or could impact our ability to market a previously cleared, approved, or unregulated device. Our failure to comply with the regulatory requirements of the FDA or other applicable regulatory requirements in the United States or elsewhere might subject us to administratively or judicially imposed sanctions. These sanctions include, among others, warning letters, fines, civil penalties, criminal penalties, injunctions, debarment, product seizure or detention, product recalls and total or partial suspension of production, sale and/or promotion. |
The COVID-19 pandemic may disrupt the operations of regulatory bodies with responsibility for oversight of healthcare and health and medical products. Such disruptions could result in the focus and prioritization of regulatory resources on emergent matters, which could divert regulatory resources away from more routine regulatory matters that are not COVID-19 related but that have the potential to impact our business. For example, there could be delays in FDA review of applications for marketing authorization, including those which may be necessary for or in connection with proposed changes to our products or the changes to the processes by which they are manufactured. It is unknown how long these disruptions could continue, were they to occur. Any elongation or de-prioritization or delay in regulatory review resulting from such disruptions could materially affect our ongoing device design, development, and commercialization plans. | |
Our products are subject to recalls and restrictions, even after receiving United States or foreign regulatory clearance or approval. | Ongoing medical device reporting regulations require that we report to appropriate governmental authorities in the United States and/or other countries when our products cause or contribute to a death or serious injury or malfunction in a way that would be reasonably likely to contribute to a death or serious injury if the malfunction were to recur. Governmental authorities can require product recalls or impose restrictions for product design, manufacturing, labeling, clearance, or other issues. For the same reasons, we may voluntarily elect to recall or restrict the use of a product. Any recall or restriction could divert managerial and financial resources and might harm our reputation among our Customers and other healthcare professionals who use or recommend our products and services. |
We may be adversely affected by product liability claims or other legal actions or regulatory or compliance matters. | We face an inherent business risk of exposure to product liability claims and other legal and regulatory actions. A significant increase in the number, severity, amount, or scope of these claims and actions may, as described above with respect to recalls and restrictions, result in substantial costs and harm our reputation or otherwise adversely affect product sales and our business. Product liability claims and other legal and regulatory actions may also distract management from other business responsibilities. We are also subject to a variety of other types of claims, proceedings, investigations, and litigation initiated by government agencies or third parties and other potential risks and liabilities. These include compliance matters, product regulation or safety, taxes, employee benefit plans, employment discrimination, health and safety, environmental, antitrust, customs, import/export, government contract compliance, financial controls or reporting, intellectual property, allegations of misrepresentation, false claims or false statements, commercial claims, claims regarding promotion of our products and services, or other similar or different matters. Any such claims, proceedings, investigations or litigation, regardless of the merits, might result in substantial costs, restrictions on product use or sales, or otherwise injure our business. Administratively or judicially imposed or agreed sanctions might include warning letters, fines, civil penalties, criminal penalties, loss of tax benefits, injunctions, product seizure, recalls, suspensions or restrictions, re-labeling, detention, and/or debarment. We also might be required to take actions such as payment of substantial amounts, or revision of financial statements, or to take, or be subject to, the following types of actions with respect to our products, services, or business: redesign, re-label, restrict, or recall products; cease manufacturing and selling products; seizure of product inventory; comply with a court injunction restricting or prohibiting further marketing and sale of products or services; comply with a consent decree, which could result in further regulatory constraints; dedication of significant internal and external resources and costs to respond to and comply with legal and regulatory issues and constraints; respond to claims, litigation, and other proceedings brought by Customers, users, governmental agencies, and others; disruption of product improvements and product launches; discontinuation of certain product lines or services; or other restrictions or limitations on product sales, use or operation, or other activities or business practices. Some product replacements or substitutions may not be possible or may be prohibitively costly or time consuming. The impact of any legal, regulatory, or compliance claims, proceeding, investigation, or litigation, is difficult to predict. We maintain product liability and other insurance with coverages believed to be adequate. However, product liability or other claims may exceed insurance coverage limits, fines, penalties and regulatory sanctions may not be covered by insurance, or insurance may not continue to be available or available on commercially reasonable terms. Additionally, our insurers might deny claim coverage for valid or other reasons or may become insolvent. |
Our business and financial condition could be adversely affected by difficulties in acquiring or maintaining a proprietary intellectual ownership position. | To maintain our competitive position for our products, we need to obtain patent or other proprietary rights for new and improved products and to maintain and enforce our existing patents and other proprietary rights. We typically apply for patents in the United States and in strategic other countries. We may also acquire patents through acquisitions. We may encounter difficulties in obtaining or protecting patents. We rely on a combination of patents, trademarks, trade secrets, know-how, and confidentiality agreements to protect the proprietary aspects of our technology. These measures afford only limited protection, and competitors may gain access to our intellectual property and proprietary information. Litigation may be necessary to enforce or defend our intellectual property rights, to protect our trade secrets, and to determine the validity and scope of our proprietary rights. Litigation may also be brought against us claiming that we have violated the intellectual property rights of others. Litigation may be costly and may divert management’s attention from other matters. Additionally, in some foreign countries with weaker intellectual property rights, it may be difficult to maintain and enforce patents and other proprietary rights or defend against claims of infringement. |
Tax and trade risks | |
Current economic and political conditions make tax rules in any jurisdiction subject to significant change. | The U.S. Tax Cuts and Jobs Act (“TCJA”) was signed into law on December 22, 2017. Guidance continues to be issued clarifying the application of this new legislation. We cannot predict the overall impact that the additional guidance may have on our business. It is reasonable to expect that global taxing authorities will be reviewing current legislation for potential modifications in reaction to the implementation of the TCJA. In addition, further changes in the tax laws of other jurisdictions could arise, including as a result of the base erosion and profit shifting (BEPS) project undertaken by the Organization for Economic Cooperation and Development (OECD). The OECD, which represents a coalition of member countries, has issued recommendations that, in some cases, would make substantial changes to numerous long-standing tax positions and principles. These contemplated changes, to the extent adopted by OECD members and/or other countries, could increase tax uncertainty and may adversely impact our provision for income taxes. |
Our tax rate is uncertain and may vary from expectations, which could have a material impact on our results of operations and earnings per share. | There can be no assurance that we will be able to maintain any particular worldwide effective corporate tax rate. We cannot give any assurance as to what our effective tax rate will be in the future because of, among other things, uncertainty regarding the tax policies of the jurisdictions in which we and our affiliates operate. Our actual effective tax rate may vary from our expectations, and such variance may be material. Additionally, tax laws or their implementation and applicable tax authority practices in any particular jurisdiction could change in the future, possibly on a retroactive basis, and any such change could have a material adverse impact on us and our affiliates. |
Changes in tax treaties and trade agreements could negatively impact our costs, results of operations and earnings per share. | Legislative and regulatory action may be taken in the U.S. which, if ultimately adopted, could override or otherwise adversely impact tax treaties upon which we rely or broaden the circumstances under which STERIS plc would be considered a U.S. resident, each of which could materially and adversely affect our tax obligations. We cannot predict the outcome of any specific legislative or regulatory proposals. However, if proposals were adopted that had the effect of disregarding our organization in Ireland or limiting our ability as an Irish company to take advantage of tax treaties with the U.S., we could be subject to increased taxation and/or potentially significant expense. Existing free trade laws and regulations provide certain beneficial duties and tariffs for qualifying imports and exports, subject to compliance with the applicable classification and other requirements. Changes in laws and regulations or policies governing the terms of foreign trade, and in particular, increased trade restrictions, including as a result of the COVID-19 pandemic, tariffs or taxes on imports from countries where we manufacture products could have a material adverse impact on our business and financial results. |
Proposed legislation relating to the denial of U.S. federal or state governmental contracts to U.S. companies that redomicile abroad could adversely affect our business. | Various U.S. federal and state legislative proposals that would deny governmental contracts to redomiciled companies may adversely affect us if adopted into law. We are unable to predict the likelihood that any such proposed legislation might become law, the nature of regulations that may be promulgated under any future legislative enactments, or the effect such enactments or increased regulatory scrutiny could have on our business. |
The U.S. Internal Revenue Service (the “IRS”) may not agree that we are a foreign corporation for U.S. federal tax purposes. | Although we are organized under the laws of Ireland and are a tax resident in Ireland for Irish tax purposes, the IRS may assert that we should be treated as a U.S. corporation (and, therefore, a U.S. tax resident) for U.S. federal tax purposes pursuant to Section 7874 of the Internal Revenue Code of 1986, as amended (the “Code” and such Section, “Section 7874”). For U.S. federal tax purposes, a company generally is considered to be a tax resident in the jurisdiction of its organization. Because we are organized under the laws of Ireland, we would generally be classified as a non-U.S. corporation (and, therefore, a non-U.S. tax resident) under these rules. Section 7874, however, provides an exception to this general rule under which a non-U.S. organized entity may be treated as a U.S. corporation for U.S. federal tax purposes. If we were to be treated as a U.S. corporation for U.S. federal tax purposes, we could be subject to substantial additional U.S. tax liability. Additionally, if we were treated as a U.S. corporation for U.S. federal tax purposes, non-U.S. holders of our ordinary shares would be subject to U.S. withholding tax on the gross amount of any dividends we paid to such shareholders. For Irish tax purposes, we are expected, regardless of any application of Section 7874, to be treated as an Ireland tax resident. Consequently, if we are treated as a U.S. corporation for U.S. federal tax purposes under Section 7874, we could be liable for both U.S. and Ireland taxes, which could have a material adverse effect on our financial condition and results of operations. |
Risk or uncertainty | Discussion |
Competition | |
Our businesses are highly competitive, and if we fail to compete successfully, our revenues and results of operations may be hurt. | We operate in a highly competitive global environment. Our businesses compete with other broad-line manufacturers, as well as many smaller businesses specializing in particular products or services, primarily on the basis of brand, design, quality, safety, ease of use, serviceability, price, product features, warranty, delivery, service, and technical support. We face increased competition from new infection prevention, sterile processing, contamination control, surgical support, cleaning consumables, gastrointestinal endoscopy accessories, contract sterilization, and other products and services entering the market. Competitors and potential competitors also are attempting to develop alternate technologies and sterilizing agents, as well as disposable medical instruments and other devices designed to address the risk of contamination. |
Consolidations among our healthcare and pharmaceutical Customers may result in a loss of Customers or more significant pricing pressures. | A number of our Customers have consolidated. These consolidations are due in part to healthcare cost reduction measures initiated by competitive pressures as well as legislators, regulators and third-party payors. This may result in greater pricing pressures on us and in some cases loss of Customers. Additional consolidations could result in a loss of Customers or more significant pricing pressures. |
Decreased availability or increased costs of raw materials or energy supplies or other supplies might increase our production costs or limit our production capabilities or curtail our operations. | We purchase raw materials, fabricated and other components, and energy supplies from a variety of suppliers. Key materials include stainless steel, organic and inorganic chemicals, fuel, cobalt-60, EO, and plastic components. The availability and prices of raw materials and energy supplies are subject to volatility and are influenced by worldwide economic conditions, speculative action, world supply and demand balances, inventory levels, availability of substitute materials, currency exchange rates, anticipated or perceived shortages, and other factors. Also, certain of our key materials and components have a limited number of suppliers. Some are single-sourced in certain regions of the world, such as cobalt-60 and EO, which are necessary to our AST operations. Changes in regulatory requirements regarding the use of, the unavailability or short supply of these products might disrupt or cause shutdowns of portions of our AST operations or have other adverse consequences. We have developed a plan to expand our irradiation processing capacity with accelerator-based technologies which may reduce the potential supply risk. Shortages in supply, increased regulatory or security requirements, or increases in the price of raw materials, components and energy supplies may adversely affect us. |
Our operations, and those of our suppliers, are subject to a variety of business continuity hazards and risks, any of which could interrupt production or operations or otherwise adversely affect our performance, results, or value. | Business continuity hazards and other risks include: explosions, fires, earthquakes, public health crises, inclement weather, and other disasters; utility or other mechanical failures; unscheduled downtime; labor difficulties; inability to obtain or maintain any required licenses or permits; disruption of communications; data security, preservation and redundancy disruptions; inability to hire or retain key management or employees; disruption of supply or distribution; and regulation of the safety, security or other aspects of our operations. The occurrence of these types of events has disrupted and may in the future disrupt or shut down operations, or otherwise adversely impact the production or profitability of a particular facility, or our operations as a whole. Certain casualties also might cause personal injury and loss of life, or severe damage to or destruction of property and equipment, and for casualties occurring at our facilities, result in liability claims against us. Although we maintain property and casualty insurance and liability and similar insurance of the types and in the amounts that we believe are customary for our industries, our insurance coverages have limits and we are not fully insured against all potential hazards and risks incident to our business. |
Our operations are subject to regulations and permitting, which may be changed or amended by the relevant authorities, and which may limit or eliminate our current operations or increase the complexity, burden, or expense of compliance and regulated materials or processes that we use in our operations may become the focus of litigation. | Our Applied Sterilization Technologies (“AST”) segment is a technology-neutral contract sterilization service that offers our Customers a wide range of sterilization modalities through a worldwide network of over 50 contract sterilization and laboratory facilities. One of the modalities offered by our AST operations is Ethylene Oxide (“EO”) sterilization. In the United States, several regulators, including the U.S. Environmental Protection Agency (“EPA”), U.S. Food and Drug Administration (“FDA”), and agencies at the state and local level, play a role in regulating the use of EO sterilization. In 2016, the EPA changed the cancer risk basis for EO and determined that EO is carcinogenic to humans. Recent announcements of the temporary or permanent closure of EO sterilization facilities operated by others have been associated with state and/or local regulatory or other legal action related to EO emissions at those facilities. Our AST operations have taken and will continue to take measures to comply with all applicable emissions regulations and to reduce emissions. However, no assurance can be given that current or future legislative or regulatory action, or current or future litigation to which we are or may become a party, will not significantly increase the costs of conducting our EO contract sterilization operations or curtail or eliminate the use of EO in our contract sterilization operations. A significant reduction in our EO contract sterilization activities may have a material adverse effect on our financial condition and results of operations. Further, we could be liable for damages and fines as a result of legislative or regulatory action or litigation, and any liability could exceed our insurance and indemnification coverage, if any, and have a material adverse effect on our financial condition. Additionally, for many medical devices, EO sterilization may be the only current method of sterilization that effectively sterilizes and does not damage the device during the sterilization process. In the event of regulatory, legislative, or legal action that curtails or eliminates EO sterilization, there could be a shortage of medical devices and consequently a decline in surgical procedures. A decline in surgical procedures could result in a decline in demand for the products and services provided by our Healthcare Products and Healthcare Specialty Services businesses, which may have a material adverse effect on our financial condition and results of operations. |
We engage in acquisitions and affiliations, divestitures, and other business arrangements. Our growth may be adversely affected if we are unable to successfully identify, price, and integrate strategic business candidates or otherwise optimize our business portfolio. | Our success depends, in part, on strategic acquisitions and joint ventures, which are intended to complement or expand our businesses, divestiture of non-strategic businesses, and other actions intended to optimize our portfolio of businesses. This strategy depends upon our ability to identify, appropriately price, and complete these types of business development transactions or arrangements and to obtain any necessary financing. In the last several fiscal years we have made a number of acquisitions. We also completed several divestitures of non-strategic businesses or product lines during the last several years. Our success with respect to these recent and future acquisitions will depend on our ability to integrate the businesses acquired, retain key personnel, realize identified cost synergies and otherwise execute our strategies. Our success will also depend on our ability to develop satisfactory working arrangements with our strategic partners in joint ventures or other affiliations, or to divest or realign businesses. Competition for strategic business candidates may result in increases in costs and price for acquisition candidates and market valuation issues may reduce the value available for divestiture of non-strategic businesses. These types of transactions are also subject to a number of other risks and uncertainties, including: delays in realizing or failure to realize anticipated benefits of the transactions; diversion of management’s time and attention from other business concerns; difficulties in retaining key employees, Customers, or suppliers of the acquired or divested businesses; difficulties in maintaining uniform standards, controls, procedures and policies, or other integration or divestiture difficulties; adverse effects on existing business relationships with suppliers or Customers; other events contributing to difficulties in generating future cash flows; risks associated with the assumption of contingent or other liabilities of acquisition targets or retention of liabilities for divested businesses and difficulties in obtaining financing. |
If our continuing efforts to create a lean business and in-source production to reduce costs are not successful, our profitability may be hurt or our business otherwise might be adversely affected. | We have undertaken various activities to create a lean business, including in-sourcing. We continue to look for opportunities to in-source production that is currently provided by third parties.These activities may not produce the full efficiencies and cost reduction benefits that we expect or efficiencies and benefits might be delayed. Implementation costs also might exceed expectations. |
The COVID-19 pandemic or similar public health crises could have a material adverse impact on ability to staff our operations. | As supplier to Healthcare and Life Sciences Customers, we fall within a “critical infrastructure” sector, and are also considered an essential business and therefore exempt under various stay at home/shelter in place orders. Accordingly, our employees continue to work because of the importance of our operations to the health and well-being of citizens in the countries in which we operate. We have implemented telework policies wherever possible for appropriate categories of employees. However, our employees that are unable to telework continue to work at our facilities and those of our Customers, and we have implemented appropriate safety measures, such as social distancing and increased cleaning protocols. While we believe that we have taken appropriate measures to ensure the health and well-being of our employees, there can be no assurances that our measures will be sufficient to protect our employees in our workplace or that they may not otherwise be exposed to COVID-19 outside of our workplace. If a number of our essential employees become ill, incapacitated or are otherwise unable or unwilling to continue working during the current or any future health crises, our operations may be adversely impacted. |
Our business and results of operations may be adversely affected if we are unable to recruit and retain qualified management and other personnel or other compliance matters adversely impact our personnel. | Our continued success depends, in large part, on our ability to hire and retain highly qualified people and if we are unable to do so, our business and operations may be impaired or disrupted. Competition for highly qualified people is intense and there is no assurance that we will be successful in attracting or retaining replacements to fill vacant positions, successors to fill retirements or employees moving to new positions, or other highly qualified personnel. In addition, legal, regulatory or compliance matters create significant distraction or diversion of significant or unanticipated resources or attention that could have a material adverse effect on the responsibilities and retention of qualified employees. |
We could experience a failure of a key information technology system, process or site or a breach of information security, including a cybersecurity breach or failure of one or more key information technology systems, networks, processes, associated sites or service providers. | We rely extensively on information technology (IT) systems to conduct business. In addition, we rely on networks and services, including internet sites, data hosting and processing facilities and tools and other hardware, software and technical applications and platforms, some of which are managed, hosted, provided and/or used by third-parties or their vendors, to assist in conducting our business. Numerous and evolving cybersecurity threats pose potential risks to the security of our IT systems, networks and services, as well as the confidentiality, availability and integrity of our data. While we have made investments seeking to address these threats, including monitoring of networks and systems, hiring of experts, employee training and security policies for employees and third-party providers, the techniques used in these attacks change frequently and may be difficult to detect for periods of time and we may face difficulties in anticipating and implementing adequate preventative measures. If our IT systems are damaged or cease to function properly, the networks or service providers we rely upon fail to function properly, or we or one of our third-party providers suffer a loss or disclosure of our business or stakeholder information due to any number of causes ranging from catastrophic events or power outages to improper data handling or security breaches and our business continuity plans do not effectively address these failures on a timely basis, we may be exposed to reputational, competitive and business harm as well as litigation and regulatory action. In addition, the COVID-19 pandemic may increase the risk of such vulnerability and attacks, including unauthorized access or attacks exploiting the fact that a large number of employees are working remotely during government shutdowns and closures. Enforcement of the General Data Protection Regulation (“GDPR”) was effective as of May 2018. The GDPR is focused on the protection of personal data not merely the privacy of personal data. The GDPR creates a range of new compliance obligations and will significantly increase financial penalties for noncompliance (including possible fines of up to 4% of global annual revenues for the preceding financial year or €20 million (whichever is higher) for the most serious infringements). |
Location | U.S./INTL* | Leased/Owned | ||
Montgomery, AL | U.S. | Owned/Leased | ||
St. Louis, MO | U.S. | Owned/Leased | ||
Mentor, OH | U.S. | Owned/Leased | ||
Sharon Hill, PA | U.S. | Owned | ||
Franklin Park, IL | U.S. | Leased | ||
Point Richmond, CA | U.S. | Leased | ||
Quebec City, Canada | INTL | Owned | ||
Tuusula, Finland | INTL | Owned/Leased | ||
Bordeaux, France | INTL | Owned | ||
Leicester, England | INTL | Owned/Leased | ||
Shanghai, China | INTL | Leased | ||
Guadalupe, Mexico | INTL | Leased | ||
Bishop Stortford, England | INTL | Leased | ||
ITEM 3. | LEGAL PROCEEDINGS |
ITEM 5. | MARKET FOR REGISTRANT’S ORDINARY EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
(a) Total Number of Shares Purchased | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans | (d) Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans at Period End (dollars in thousands) | |||||||||||
January 1-31 | — | $ | — | — | $ | 348,979 | ||||||||
February 1-29 | 22,500 | 166.20 | 22,500 | 345,239 | ||||||||||
March 1-31 | 45,700 | 136.55 | 45,700 | 338,979 | ||||||||||
Total | 68,200 | (1) | $ | 146.08 | (1) | 68,200 | $ | 338,979 | ||||||
Years Ended March 31, | ||||||||||||||||||||
(in thousands, except per share data) | 2020 (1) | 2019 (1) (2) | 2018 (2) | 2017 (2) | 2016 (2) | |||||||||||||||
Statements of Income Data: | ||||||||||||||||||||
Revenues | $ | 3,030,895 | $ | 2,782,170 | $ | 2,619,996 | $ | 2,612,756 | $ | 2,238,764 | ||||||||||
Gross profit | 1,319,923 | 1,175,427 | 1,092,746 | 1,026,213 | 895,348 | |||||||||||||||
Restructuring expenses | 673 | 30,987 | 103 | 215 | (820 | ) | ||||||||||||||
Income from continuing operations | 536,973 | 411,465 | 399,883 | 226,206 | 237,576 | |||||||||||||||
Income taxes | 90,876 | 64,394 | 63,360 | 74,015 | 60,299 | |||||||||||||||
Net income attributable to shareholders | 407,605 | 304,051 | 290,915 | 109,965 | 110,763 | |||||||||||||||
Basic income per ordinary share: | ||||||||||||||||||||
Net income | $ | 4.81 | $ | 3.59 | $ | 3.42 | $ | 1.29 | $ | 1.57 | ||||||||||
Shares used in computing net income per ordinary share – basic | 84,778 | 84,577 | 85,028 | 85,473 | 70,698 | |||||||||||||||
Diluted income per ordinary share: | ||||||||||||||||||||
Net income | $ | 4.76 | $ | 3.56 | $ | 3.39 | $ | 1.28 | $ | 1.56 | ||||||||||
Shares used in computing net income per ordinary share – diluted | 85,641 | 85,468 | 85,713 | 86,094 | 71,184 | |||||||||||||||
Dividends per ordinary share | $ | 1.45 | $ | 1.33 | $ | 1.21 | $ | 1.09 | $ | 0.98 | ||||||||||
Balance Sheets Data: | ||||||||||||||||||||
Working capital | $ | 705,144 | $ | 588,539 | $ | 591,195 | $ | 636,219 | $ | 571,919 | ||||||||||
Total assets | 5,425,582 | 5,073,071 | 5,200,334 | 4,924,555 | 5,346,416 | |||||||||||||||
Long-term indebtedness | 1,150,521 | 1,183,227 | 1,316,001 | 1,478,361 | 1,567,796 | |||||||||||||||
Total liabilities | 2,018,858 | 1,887,273 | 1,983,034 | 2,114,422 | 2,307,524 | |||||||||||||||
Total shareholders’ equity | $ | 3,393,876 | $ | 3,177,810 | $ | 3,205,960 | $ | 2,798,602 | $ | 3,023,034 | ||||||||||
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | what factors affect our business; |
• | what our earnings and costs were; |
• | why those earnings and costs were different from the year before; |
• | where our earnings came from; |
• | how this affects our overall financial condition; |
• | what our expenditures for capital projects were; and |
• | where cash will come from to fund future debt principal repayments, growth outside of core operations, repurchase ordinary shares, pay cash dividends and fund future working capital needs. |
• | Backlog – We define backlog as the amount of unfilled capital equipment purchase orders at a point in time. We use this figure as a measure to assist in the projection of short-term financial results and inventory requirements. |
• | Debt-to-total capital – We define debt-to-total capital as total debt divided by the sum of total debt and shareholders’ equity. We use this figure as a financial liquidity measure to gauge our ability to borrow and fund growth. |
• | Days sales outstanding (“DSO”) – We define DSO as the average collection period for accounts receivable. It is calculated as net accounts receivable divided by the trailing four quarters’ revenues, multiplied by 365 days. We use this figure to help gauge the quality of accounts receivable and expected time to collect. |
• | Revenues – Our revenues are presented net of sales returns and allowances. |
• | Product Revenues – We define product revenues as revenues generated from sales of consumable and capital equipment products. |
• | Service Revenues – We define service revenues as revenues generated from parts and labor associated with the maintenance, repair, and installation of our capital equipment. Service revenues also include hospital sterilization services, instrument and scope repairs, and linen management as well as revenues generated from contract sterilization and laboratory services offered through our Applied Sterilization Technologies segment. |
• | Capital Equipment Revenues – We define capital equipment revenues as revenues generated from sales of capital equipment, which includes steam sterilizers, low temperature liquid chemical sterilant processing systems, including SYSTEM 1 and 1E, washing systems, VHP® technology, water stills, and pure steam generators; surgical lights and tables; and integrated OR. |
• | Consumable Revenues – We define consumable revenues as revenues generated from sales of the consumable family of products, which includes SYSTEM 1 and 1E consumables, V-PRO consumables, gastrointestinal endoscopy accessories, sterility assurance products, skin care products, cleaning consumables, barrier product solutions and surgical instruments. |
• | Recurring Revenues – We define recurring revenues as revenues generated from sales of consumable products and service revenues. |
Years Ended March 31, | ||||||||
(dollars in thousands) | 2020 | 2019 | ||||||
Net cash flows provided by operating activities | $ | 590,559 | $ | 539,505 | ||||
Purchases of property, plant, equipment and intangibles, net | (214,516 | ) | (189,715 | ) | ||||
Proceeds from the sale of property, plant, equipment and intangibles | 4,156 | 5,567 | ||||||
Free cash flow | $ | 380,199 | $ | 355,357 | ||||
Years Ended March 31, | Percent | ||||||||||||||
(dollars in thousands) | 2020 | 2019 | Change | Change | |||||||||||
Total revenues | $ | 3,030,895 | $ | 2,782,170 | $ | 248,725 | 8.9 | % | |||||||
Revenues by type: | |||||||||||||||
Service revenues | 1,628,107 | 1,486,145 | 141,962 | 9.6 | % | ||||||||||
Consumable revenues | 672,329 | 605,631 | 66,698 | 11.0 | % | ||||||||||
Capital equipment revenues | 730,459 | 690,394 | 40,065 | 5.8 | % | ||||||||||
Revenues by geography: | |||||||||||||||
Ireland revenues | 63,821 | 56,784 | 7,037 | 12.4 | % | ||||||||||
United States revenues | 2,211,722 | 1,976,814 | 234,908 | 11.9 | % | ||||||||||
Other foreign revenues | 755,352 | 748,572 | 6,780 | 0.9 | % | ||||||||||
Years Ended March 31, | Change | Percent Change | |||||||||||||
(dollars in thousands) | 2020 | 2019 | |||||||||||||
Gross profit: | |||||||||||||||
Product | $ | 652,586 | $ | 593,730 | $ | 58,856 | 9.9 | % | |||||||
Service | 667,337 | 581,697 | 85,640 | 14.7 | % | ||||||||||
Total gross profit | $ | 1,319,923 | $ | 1,175,427 | $ | 144,496 | 12.3 | % | |||||||
Gross profit percentage: | |||||||||||||||
Product | 46.5 | % | 45.8 | % | |||||||||||
Service | 41.0 | % | 39.1 | % | |||||||||||
Total gross profit percentage | 43.5 | % | 42.2 | % | |||||||||||
Years Ended March 31, | Change | Percent Change | |||||||||||||
(dollars in thousands) | 2020 | 2019 | |||||||||||||
Operating expenses: | |||||||||||||||
Selling, general, and administrative | $ | 716,731 | $ | 669,937 | $ | 46,794 | 7.0 | % | |||||||
Research and development | 65,546 | 63,038 | 2,508 | 4.0 | % | ||||||||||
Restructuring expenses | 673 | 30,987 | (30,314 | ) | NM | ||||||||||
Total operating expenses | $ | 782,950 | $ | 763,962 | $ | 18,988 | 2.5 | % | |||||||
Fiscal 2019 Restructuring Plan | Year Ended March 31, 2020 | Year Ended March 31, 2019 | ||||
(dollars in thousands) | ||||||
Severance and other compensation related costs | $ | 1,554 | $ | 5,651 | ||
Accelerated depreciation and amortization | — | 16,194 | ||||
(Gain) on disposal of asset | (1,164 | ) | — | |||
Asset impairment | — | 4,312 | ||||
Lease termination costs and other | 283 | 4,830 | ||||
Product rationalization (1) | 2,470 | 9,721 | ||||
Total restructuring expenses | $ | 3,143 | $ | 40,708 | ||
Years Ended March 31, | ||||||||||||
(dollars in thousands) | 2020 | 2019 | Change | |||||||||
Non-operating expenses, net: | ||||||||||||
Interest expense | $ | 40,279 | $ | 45,015 | $ | (4,736 | ) | |||||
Interest income and miscellaneous expense | (1,987 | ) | (3,020 | ) | 1,033 | |||||||
Non-operating expenses, net | $ | 38,292 | $ | 41,995 | $ | (3,703 | ) | |||||
Years Ended March 31, | Change | Percent Change | ||||||||||||
(dollars in thousands) | 2020 | 2019 | ||||||||||||
Income tax expense | $ | 90,876 | $ | 64,394 | $ | 26,482 | 41.1% | |||||||
Effective income tax rate | 18.2 | % | 17.4 | % | ||||||||||
Years ended March 31, | Percent | ||||||||||||||
(dollars in thousands) | 2020 | 2019 | Change | Change | |||||||||||
Revenues: | |||||||||||||||
Healthcare Products | $ | 1,423,198 | $ | 1,338,428 | $ | 84,770 | 6.3 | % | |||||||
Healthcare Specialty Services | 563,611 | 510,057 | 53,554 | 10.5 | % | ||||||||||
Life Sciences | 416,939 | 378,558 | 38,381 | 10.1 | % | ||||||||||
Applied Sterilization Technologies | 627,147 | 555,127 | 72,020 | 13.0 | % | ||||||||||
Total revenues | $ | 3,030,895 | $ | 2,782,170 | $ | 248,725 | 8.9 | % | |||||||
Operating income (loss): | |||||||||||||||
Healthcare Products | 356,419 | 323,684 | 32,735 | 10.1 | % | ||||||||||
Healthcare Specialty Services | 64,217 | 64,222 | (5 | ) | — | % | |||||||||
Life Sciences | 144,088 | 132,129 | 11,959 | 9.1 | % | ||||||||||
Applied Sterilization Technologies | 270,917 | 221,828 | 49,089 | 22.1 | % | ||||||||||
Corporate | (207,015 | ) | (184,900 | ) | (22,115 | ) | 12.0 | % | |||||||
Total operating income before adjustments | $ | 628,626 | $ | 556,963 | $ | 71,663 | 12.9 | % | |||||||
Less: Adjustments | |||||||||||||||
Amortization of acquired intangible assets (1) | 71,675 | 86,878 | |||||||||||||
Acquisition and integration related charges (2) | 8,225 | 8,901 | |||||||||||||
Redomiciliation and tax restructuring costs (3) | 3,699 | 8,783 | |||||||||||||
(Gain) on fair value adjustment of acquisition related contingent consideration (1) | — | (842 | ) | ||||||||||||
Net loss (gain) on divestiture of businesses (1) | 1,770 | (1,370 | ) | ||||||||||||
Amortization of property "step up" to fair value (1) | 2,392 | 2,440 | |||||||||||||
Restructuring charges (4) | 3,143 | 40,708 | |||||||||||||
COVID-19 incremental costs (5) | 749 | — | |||||||||||||
Total operating income | $ | 536,973 | $ | 411,465 | |||||||||||
Years Ended March 31, | ||||||||
(dollars in thousands) | 2020 | 2019 | ||||||
Net cash provided by operating activities | $ | 590,559 | $ | 539,505 | ||||
Net cash used in investing activities | (319,735 | ) | (213,224 | ) | ||||
Net cash used in financing activities | (163,146 | ) | (294,792 | ) | ||||
Debt-to-total capital ratio | 25.3 | % | 27.1 | % | ||||
Free cash flow | $ | 380,199 | $ | 355,357 | ||||
• | Net cash provided by operating activities increased in fiscal 2020 by 9.5%, as compared to fiscal 2019, primarily due to higher net income attainment in the fiscal 2020 period, which was partially offset by higher cash requirements to fund operating assets and liabilities. |
• | Purchases of property, plant, equipment, and intangibles, net – Capital expenditures totaled $214.5 million and $189.7 million for fiscal 2020 and 2019, respectively. The fiscal 2020 increase was primarily due to our previously announced expansion projects in the Applied Sterilization Technologies and Healthcare Specialty Services segments. |
• | Proceeds from the sale of property, plant, equipment and intangibles – During fiscal 2020 and 2019 we received $4.2 million and $5.6 million respectively, for proceeds from the sale of property, plant, equipment and intangibles. The majority of the fiscal 2020 and fiscal 2019 proceeds were related to the sale of Healthcare Products facilities located in the U.K. |
• | Proceeds from the sale of business – During fiscal 2020 and 2019 we received $0.4 million and $2.5 million, respectively, for proceeds from the sale of certain non-core businesses. For more information, refer to our Note 18 to our consolidated financial statements, titled "Business Acquisitions and Divestitures". |
• | Purchases of investments – During fiscal 2019, we completed an equity investment for approximately $5.0 million. |
• | Investments in business, net of cash acquired – During fiscal 2020 and 2019, we used $109.8 million and $13.3 million, respectively, for acquisitions. For more information on these acquisitions refer to Note 18 to our consolidated financial statements titled, "Business Acquisitions and Divestitures". |
• | Other – During fiscal 2019 we provided approximately $13.4 million under borrowing agreements. For more information on these agreements refer to our Note 18 to our consolidated financial statements, titled "Business Acquisitions and Divestitures". |
• | Payments on long-term obligations – During fiscal 2019 we repaid $85.0 million in private placement notes that matured on August 15, 2018. For more information on our debt refer to Note 6 to our consolidated financial statements titled, "Debt". |
• | (Payments) proceeds under credit facilities, net – At the end of fiscal 2020, $275.4 million of debt was outstanding under our bank credit facility, compared to $301.8 million of debt outstanding under this facility at the end of fiscal 2019. We provide additional information about our bank credit facility in Note 6 to our consolidated financial statements titled, “Debt”. |
• | Repurchases of shares – During fiscal 2020, we purchased 273,259 of our ordinary shares in the aggregate amount of $40.0 million. We also obtained 122,884 of our ordinary shares in connection with our stock-based compensation award programs in the amount of $11.2 million. During fiscal 2019, we purchased 659,393 of our ordinary shares in the aggregate amount of $73.2 million, which included $0.4 million of taxes and commissions. We also obtained 112,356 of our ordinary shares in connection with our stock-based compensation award programs in the amount $8.3 million. We provide additional information about our share repurchases in Note 13 to our consolidated financial statements titled, “Repurchases of Ordinary Shares.” |
• | Deferred financing fees and debt issuance costs – We paid $1.3 million and $0.5 million in fiscal 2020 and 2019 respectively, for financing fees and debt issuance costs related to our Credit Agreement and Private Placement debt. For more information on our debt refer to Note 6 to our consolidated financial statements titled, "Debt". |
• | Cash dividends paid to ordinary shareholders – During fiscal 2020, we paid cash dividends totaling $123.0 million or $1.45 per outstanding share. During fiscal 2019, we paid cash dividends totaling $112.5 million or $1.33 per outstanding share. |
• | Stock option and other equity transactions, net – We generally receive cash for issuing shares upon the exercise of options under our employee stock option program. During fiscal 2020 and fiscal 2019, we received cash proceeds totaling $34.7 million and $13.3 million, respectively, under these programs. During fiscal 2020, we received contributions from noncontrolling interest holders of $6.1 million and paid $1.2 million in distributions to noncontrolling interest holders. During fiscal 2019 we paid $0.3 million in distributions to noncontrolling interest holders. |
(dollars in thousands) | Maximum Amounts Available | Reductions in Available Credit Facility for Other Financial Instruments | March 31, 2020 Amounts Outstanding | March 31, 2020 Amounts Available | |||||||||||
Sources of Credit | |||||||||||||||
Private placement | $ | 878,409 | $ | — | $ | 878,409 | $ | — | |||||||
Credit Agreement (1) | 1,000,000 | 6,768 | 275,449 | 717,783 | |||||||||||
Total Sources of Credit | $ | 1,878,409 | $ | 6,768 | $ | 1,153,858 | $ | 717,783 | |||||||
• | On March 23, 2018, STERIS UK and certain of its subsidiaries entered into a Credit Agreement (the "Credit Agreement") with various financial institutions as lenders, and JPMorgan Chase Bank, N.A., as Administrative Agent. STERIS Ireland subsequently became a borrower and guarantor under the Credit Agreement. The Credit Agreement replaced a bank credit facility dated March 31, 2015. The Credit Agreement provides up to $1.0 billion of credit, in the form of a revolver facility, which may be utilized for revolving credit borrowings, swing line borrowings and letters of credit, with sublimits for swing line borrowings and letters of credit. The revolver facility may be increased in specified circumstances by up to $500.0 million. The Credit Agreement will mature on March 23, 2023, and all unpaid borrowings, together with accrued and unpaid interest thereon, are repayable on that date. The Credit Agreement contains leverage and interest coverage covenants. Borrowings may be taken in U.S. dollars, euros, and pounds sterling and certain other specified currencies and bear interest at our option based upon either the Base Rate or the Eurocurrency Rate, plus the Applicable Margin in effect from time to time under the Credit Agreement. The Applicable Margin is determined based on the ratio of Consolidated Total Debt to Consolidated EBITDA (as such terms are defined in the Credit Agreement). Interest on Base Rate Advances is payable quarterly in arrears and interest on Eurocurrency Rate Advances is payable at the end of the relevant interest period therefor, but in no event less frequently than every three months. Borrowings at closing were used to repay outstanding balances of debt outstanding under the former bank credit facility dated March 31, 2015 that was scheduled to mature on March 31, 2020 and for other general corporate purposes. |
• | The Credit Agreement was amended in March 2019, in connection with the Redomiciliation to permit the Redomiciliation. The amendments did not effect any material changes in the terms of the Credit Agreement regarding borrowings or the issuance of letters of credit. |
(dollars in thousands) | Applicable Note Purchase Agreement | Maturity Date | U.S. Dollar Value at March 31, 2020 | |||||
$35,000 Senior notes at 6.43% | 2008 Private Placement | August 2020 | 35,000 | |||||
$91,000 Senior notes at 3.20% | 2012 Private Placement | December 2022 | 91,000 | |||||
$80,000 Senior notes at 3.35% | 2012 Private Placement | December 2024 | 80,000 | |||||
$25,000 Senior notes at 3.55% | 2012 Private Placement | December 2027 | 25,000 | |||||
$125,000 Senior notes at 3.45% | 2015 Private Placement | May 2025 | 125,000 | |||||
$125,000 Senior notes at 3.55% | 2015 Private Placement | May 2027 | 125,000 | |||||
$100,000 Senior notes at 3.70% | 2015 Private Placement | May 2030 | 100,000 | |||||
$50,000 Senior notes at 3.93% | 2017 Private Placement | February 2027 | 50,000 | |||||
€60,000 Senior notes at 1.86% | 2017 Private Placement | February 2027 | 66,342 | |||||
$45,000 Senior notes at 4.03% | 2017 Private Placement | February 2029 | 45,000 | |||||
€20,000 Senior notes at 2.04% | 2017 Private Placement | February 2029 | 22,114 | |||||
£45,000 Senior notes at 3.04% | 2017 Private Placement | February 2029 | 55,767 | |||||
€19,000 Senior notes at 2.30% | 2017 Private Placement | February 2032 | 21,008 | |||||
£30,000 Senior notes at 3.17% | 2017 Private Placement | February 2032 | 37,178 | |||||
Total Senior Notes | $ | 878,409 | ||||||
• | On February 27, 2017, STERIS UK issued and sold an aggregate principal amount of $95.0 million, €99.0 million, and £75.0 million, of senior notes in a private placement to certain institutional investors in an offering that was exempt from the registration requirements of the Securities Act of 1933. These notes have maturities of between 10 and 15 years from the issue date. The agreement governing these notes contains leverage and interest coverage covenants. |
• | On May 15, 2015, STERIS Corporation issued and sold $350.0 million of senior notes, in a private placement to certain institutional investors in an offering that was exempt from the registration requirements of the Securities Act of 1933. These notes have maturities of 10 to 15 years from the issue date. The agreement governing these notes contains leverage and interest coverage covenants. |
• | The agreements governing certain senior notes issued and sold in February 2013, December 2012, and August 2008, were amended and restated in their entirety on March 31, 2015. All of these notes were issued and sold in private placements to certain institutional investors in offerings that were exempt from the registration requirements of the Securities Act of 1933. The amended and restated agreements, which have been consolidated into a single agreement for the 2013 and 2012 notes, and a separate single agreement for the 2008 notes, contain leverage and interest coverage covenants. |
• | All of the note agreements were amended in March 2019, in connection with the Redomiciliation. The amendments waived certain repurchase rights of the note holders and increased the size of certain baskets to more closely align with Credit Agreement baskets. |
Payments due by March 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2022 | 2023 | 2024 | 2025 and thereafter | Total | ||||||||||||||||||
Contractual Obligations: | ||||||||||||||||||||||||
Debt | $ | 35,000 | $ | — | $ | 366,449 | $ | — | $ | 752,409 | $ | 1,153,858 | ||||||||||||
Operating leases | 25,302 | 21,064 | 17,271 | 14,045 | 96,249 | 173,931 | ||||||||||||||||||
Purchase obligations | 67,866 | 75,968 | 10,297 | — | — | 154,131 | ||||||||||||||||||
Benefit payments under defined benefit plans | 5,872 | 6,025 | 6,600 | 6,336 | 41,810 | 66,643 | ||||||||||||||||||
Trust assets available for benefit payments under defined benefit plans | (5,872 | ) | (6,025 | ) | (6,600 | ) | (6,336 | ) | (41,810 | ) | (66,643 | ) | ||||||||||||
Benefit payments under other post-retirement benefits plans | 1,510 | 1,392 | 1,252 | 1,115 | 4,733 | 10,002 | ||||||||||||||||||
Expected contributions to defined benefit plans | 3,839 | 3,954 | 1,991 | — | — | 9,784 | ||||||||||||||||||
Total Contractual Obligations | $ | 133,517 | $ | 102,378 | $ | 397,260 | $ | 15,160 | $ | 853,391 | $ | 1,501,706 | ||||||||||||
Amount of Commitment Expiring March 31, | ||||||||||||||||||||||||
(dollars in thousands) | 2021 | 2022 | 2023 | 2024 | 2025 and thereafter | Totals | ||||||||||||||||||
Commercial Commitments: | ||||||||||||||||||||||||
Letters of credit and surety bonds | $ | 56,899 | $ | 7,062 | $ | 1,118 | $ | 353 | $ | 2,324 | $ | 67,756 | ||||||||||||
Letters of credit as security for self-insured risk retention policies | 12,474 | — | — | — | — | 12,474 | ||||||||||||||||||
Total Commercial Commitments | $ | 69,373 | $ | 7,062 | $ | 1,118 | $ | 353 | $ | 2,324 | $ | 80,230 | ||||||||||||
Synergy Health plc | Isotron BV | Synergy Health Daniken AG | Synergy Health Radeberg | Synergy Health Allershausen | Harwell Dosimeters Ltd | U.S. Post- Retirement Benefits Plan | ||||||||
Funding Status | Funded | Funded | Funded | Unfunded | Unfunded | Funded | Unfunded | |||||||
Assumptions used to determine March 31, 2020 | ||||||||||||||
Benefit obligations: | ||||||||||||||
Discount rate | 2.40 | % | 1.60 | % | 0.20 | % | 1.60 | % | 0.50 | % | 2.45 | % | 3.00 | % |
Assumptions used to determine fiscal 2020 | ||||||||||||||
Net periodic benefit costs: | ||||||||||||||
Discount rate | 2.50 | % | 1.20 | % | 0.20 | % | 1.60 | % | 1.75 | % | 2.45 | % | 3.50 | % |
Expected return on plan assets | 4.80 | % | 1.20 | % | 0.65 | % | n/a | n/a | n/a | n/a | ||||
100 Basis Point | |||||||
(dollars in thousands) | Increase | Decrease | |||||
Effect on total service and interest cost components | $ | — | $ | — | |||
Effect on postretirement benefit obligation | 7 | (6 | ) | ||||
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Page | ||
Consolidated Financial Statements: | ||
Financial Statement Schedule: | ||
Description of the Matter | Uncertain Tax Positions As discussed in Note 8 to the consolidated financial statements, the Company received three notices of proposed tax adjustments from the U.S. Internal Revenue Service (the “IRS”) regarding the deductibility of interest paid on certain intercompany debt for the fiscal years 2016, 2017 and 2018. The IRS adjustments would result in a cumulative tax liability of approximately $40 million. The Company believes it is more-likely-than-not that they will be able to sustain the interest deductions taken in the U.S. and has not recorded a liability for an uncertain tax position related to this matter. Auditing management’s analysis of tax positions related to interest paid on certain intercompany debt was challenging as the analysis is highly judgmental due to complex interpretations of tax laws and legal rulings. This tax position must be evaluated, and there may be uncertainties around initial recognition and de-recognition of tax positions, including regulatory changes, litigation and examination activity. |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s accounting process for uncertain tax positions. For example, we tested controls over management’s identification of uncertain tax positions and its application of the recognition and measurement principles, including management’s review of the facts and circumstances and the corresponding tax laws relied upon to conclude that it is currently more-likely-than-not that they will realize the benefit recorded. Our audit procedures included, among others, involving income tax professionals to assess the technical merits of the Company’s tax positions related to certain intercompany debt and cross border transactions. We assessed the Company’s correspondence with the relevant tax authorities and evaluated income tax opinions and other third-party advice obtained by the Company. We analyzed the Company’s assumptions and data used to determine the amount of tax benefit to recognize and we tested the accuracy of the calculations performed. We also evaluated the adequacy of the Company’s disclosures included in Note 8 to the consolidated financial statements in relation to these matters. |
March 31, | 2020 | 2019 | ||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Accounts receivable (net of allowances of $12,051 and $9,645, respectively) | ||||||||
Inventories, net | ||||||||
Prepaid expenses and other current assets | ||||||||
Total current assets | ||||||||
Property, plant, and equipment, net | ||||||||
Lease right-of-use assets, net | ||||||||
Goodwill | ||||||||
Intangibles, net | ||||||||
Other assets | ||||||||
Total assets | $ | $ | ||||||
Liabilities and equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | $ | ||||||
Accrued income taxes | ||||||||
Accrued payroll and other related liabilities | ||||||||
Lease obligations due within one year | ||||||||
Accrued expenses and other | ||||||||
Total current liabilities | ||||||||
Long-term indebtedness | ||||||||
Deferred income taxes, net | ||||||||
Long-term lease obligations | ||||||||
Other liabilities | ||||||||
Total liabilities | $ | $ | ||||||
Commitments and contingencies (see Note 10) | ||||||||
Ordinary shares, with $0.001 and $75.00 par value, respectively; 500,000 shares authorized; 84,924 and 84,517 ordinary shares issued and outstanding, respectively | ||||||||
Retained earnings | ||||||||
Accumulated other comprehensive (loss) | ( | ) | ( | ) | ||||
Total shareholders’ equity | ||||||||
Noncontrolling interests | ||||||||
Total equity | ||||||||
Total liabilities and equity | $ | $ | ||||||
Years Ended March 31, | 2020 | 2019 | 2018 | |||||||||
Revenues: | ||||||||||||
Product | $ | $ | $ | |||||||||
Service | ||||||||||||
Total revenues | ||||||||||||
Cost of revenues: | ||||||||||||
Product | ||||||||||||
Service | ||||||||||||
Total cost of revenues | ||||||||||||
Gross profit | ||||||||||||
Operating expenses: | ||||||||||||
Selling, general, and administrative | ||||||||||||
Research and development | ||||||||||||
Restructuring expenses | ||||||||||||
Total operating expenses | ||||||||||||
Income from operations | ||||||||||||
Non-operating expenses, net: | ||||||||||||
Interest expense | ||||||||||||
Interest income and miscellaneous expense | ( | ) | ( | ) | ( | ) | ||||||
Total non-operating expenses, net | ||||||||||||
Income before income tax expense | ||||||||||||
Income tax expense | ||||||||||||
Net income | ||||||||||||
Less: Net income attributable to noncontrolling interests | ||||||||||||
Net income attributable to shareholders | $ | $ | $ | |||||||||
Net income per share attributable to shareholders: | ||||||||||||
Basic | $ | $ | ||||||||||
Diluted | $ | $ | ||||||||||
Cash dividends declared per ordinary share outstanding | $ | $ | $ | |||||||||
Years Ended March 31, | 2020 | 2019 | 2018 | |||||||||
Net income | $ | $ | $ | |||||||||
Less: Net income attributable to noncontrolling interests | ||||||||||||
Net income attributable to shareholders | $ | $ | $ | |||||||||
Other comprehensive (loss) income | ||||||||||||
Unrealized gain on available for sale securities, (net of taxes of $0, $0 and $516, respectively) | ||||||||||||
Pension and postretirement benefit plan changes (net of taxes of $295, ($423), and $1,860, respectively) | ( | ) | ( | ) | ||||||||
Change in cumulative foreign currency translation adjustment | ( | ) | ( | ) | ||||||||
Total other comprehensive (loss) income attributable to shareholders | ( | ) | ( | ) | ||||||||
Comprehensive income attributable to shareholders | $ | $ | $ | |||||||||
Years Ended March 31, | 2020 | 2019 | 2018 | |||||||||
Operating activities: | ||||||||||||
Net income | $ | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation, depletion, and amortization | ||||||||||||
Deferred income taxes | ( | ) | ( | ) | ||||||||
Share-based compensation expense | ||||||||||||
Loss (gain) on the disposal of property, plant, equipment, and intangibles, net | ( | ) | ||||||||||
Loss (gain) on sale of businesses | ( | ) | ||||||||||
Other items | ( | ) | ||||||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||||||
Accounts receivable, net | ( | ) | ( | ) | ( | ) | ||||||
Inventories, net | ( | ) | ( | ) | ( | ) | ||||||
Other current assets | ( | ) | ( | ) | ||||||||
Accounts payable | ( | ) | ||||||||||
Accruals and other, net | ( | ) | ||||||||||
Net cash provided by operating activities | ||||||||||||
Investing activities: | ||||||||||||
Purchases of property, plant, equipment, and intangibles, net | ( | ) | ( | ) | ( | ) | ||||||
Proceeds from the sale of property, plant, equipment, and intangibles | ||||||||||||
Proceeds from the sale of businesses | ||||||||||||
Purchases of investments | ( | ) | ||||||||||
Acquisition of business, net of cash acquired | ( | ) | ( | ) | ( | ) | ||||||
Other | ( | ) | ( | ) | ||||||||
Net cash used in investing activities | ( | ) | ( | ) | ( | ) | ||||||
Financing activities: | ||||||||||||
Payments on long-term obligations | ( | ) | ( | ) | ||||||||
(Payments) proceeds under credit facilities, net | ( | ) | ( | ) | ||||||||
Deferred financing fees and debt issuance costs | ( | ) | ( | ) | ( | ) | ||||||
Acquisition related deferred or contingent consideration | ( | ) | ( | ) | ( | ) | ||||||
Repurchases of shares | ( | ) | ( | ) | ( | ) | ||||||
Cash dividends paid to common shareholders | ( | ) | ( | ) | ( | ) | ||||||
Contributions from noncontrolling interest | ||||||||||||
Distributions to noncontrolling interest | ( | ) | ( | ) | ( | ) | ||||||
Stock option and other equity transactions, net | ||||||||||||
Net cash used in financing activities | ( | ) | ( | ) | ( | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ) | ( | ) | ||||||||
Increase (decrease) in cash and cash equivalents | ( | ) | ||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||
Cash and cash equivalents at end of period | $ | $ | $ | |||||||||
Ordinary Shares | Preferred Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest | Total Equity | |||||||||||||||||
Number | Amount | Number | Amount | |||||||||||||||||||
Balance at March 31, 2017 | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||
Comprehensive income: | ||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | ||||||||||||||||
Repurchases of ordinary shares | ( | ) | ( | ) | — | — | — | — | ( | ) | ||||||||||||
Equity compensation programs | — | — | — | — | — | |||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||
Cash dividends – $1.21 per ordinary share | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||
Change in noncontrolling interest | — | — | — | — | — | — | ||||||||||||||||
Balance at March 31, 2018 | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||
Repurchases of ordinary shares | ( | ) | ( | ) | — | — | — | — | ( | ) | ||||||||||||
Equity compensation programs and other | — | — | — | — | — | |||||||||||||||||
Retirement of shares resulting from Redomiciliation | ( | ) | ( | ) | ( | ) | ( | ) | — | — | — | ( | ) | |||||||||
Issuance of shares resulting from Redomiciliation | — | — | — | — | — | |||||||||||||||||
Adoption of Accounting Standards (note 1) | — | — | — | — | ( | ) | ( | ) | — | ( | ) | |||||||||||
Cash dividends – $1.33 per ordinary share | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||
Distributions to noncontrolling interest | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||
Other changes in noncontrolling interest | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||
Comprehensive income: | ||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||
Other comprehensive income | — | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||
Repurchases of ordinary shares | ( | ) | ( | ) | — | — | — | — | ( | ) | ||||||||||||
Equity compensation programs and other | — | — | ||||||||||||||||||||
Cash dividends – $1.45 per ordinary share | — | — | — | ( | ) | ( | ) | |||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||
Contributions from noncontrolling interest | — | — | — | — | — | — | ||||||||||||||||
Other changes in noncontrolling interest | — | — | — | — | — | — | ( | ) | ( | ) | ||||||||||||
Balance at March 31, 2020 | $ | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||
Years Ended March 31, | 2020 | 2019 | 2018 | |||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | $ | $ | |||||||||
Income taxes | ||||||||||||
Cash received during the year for income tax refunds | ||||||||||||
Asset Type | Useful Life (years) | ||
Land improvements | 3-40 | ||
Buildings and leasehold improvements | 2-50 | ||
Machinery and equipment | 2-20 | ||
Information Systems | 2-20 | ||
Radioisotope (cobalt-60) | 20 | ||
Standard | Date of Issuance | Description | Date of Adoption | Effect on the financial statements or other significant matters | ||||
Standards that have recently been adopted | ||||||||
ASU 2016-02, "Leases" (Topic 842) | February 2016 | The standard requires lessees to record all leases, whether finance or operating, on the balance sheet. An asset will be recorded to represent the right to use the leased asset, and a liability will be recorded to represent the lease obligation. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within that period. Early adoption is permitted. | First Quarter Fiscal 2020 | We adopted this standard, and related amendments, effective April 1, 2019 using the modified retrospective transition method and have not restated prior periods. We elected to use the package of practical expedients permitted under the transition guidance, which allows the carry forward of historical lease classification of existing leases. We also elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing or expired agreements. We made an accounting policy election to not recognize lease assets or liabilities for leases with a term of 12 months or less and elected to not separate non-lease components from lease components to which they relate for all asset classes. We recorded lease right-of-use assets and lease liabilities for operating leases totaling $120,562. The adoption of the standard did not have a material impact to the Consolidated Statements of Income or Cash Flows. Additional information is disclosed in Note 10 under the heading "Leases". | ||||
ASU 2017-12 "Targeted Improvements to Accounting for Hedging Activities" (Topic 815) | August 2017 | The standard provides targeted improvements to accounting for hedging activities by expanding an entity’s ability to hedge non-financial and financial risk components and reduce complexity in fair value hedges of interest rate risk. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted in any interim period after issuance of the standard. | First Quarter Fiscal 2020 | We adopted this standard effective April 1, 2019 with no material impact to our Consolidated Balance Sheets. The impact to our Consolidated Statements of Income will depend on the value of future hedging activities. | ||||
ASU 2018-02 "Income Statement - Reporting Comprehensive Income" (Topic 220) | February 2018 | The standard allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act ("TCJA") and requires certain disclosures about stranded tax effects. The underlying guidance requiring that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. This standard is effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. | First Quarter Fiscal 2020 | We have elected not to reclassify the income tax effects of the TCJA from Accumulated Other Comprehensive Income ("AOCI") to retained earnings. Our policy is to release income tax effects from AOCI when individual units of account are sold or terminated. | ||||
Standards that have not yet been adopted | ||||||||
ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" | June 2016 | The standard requires a financial asset (or group of financial assets) measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. The standard is effective for annual periods beginning after December 15, 2019. Early adoption is permitted. | N/A | We do not expect this standard to have a material impact on our consolidated financial statements. | ||||
ASU 2018-13 "Fair Value Measurement (Topic 820) Disclosure Framework- Changes to Disclosure Requirements for Fair Value Measurement” | August 2018 | The standard modifies the disclosure requirements by adding, removing, and modifying certain required disclosures for fair value measurements for assets and liabilities disclosed within the fair value hierarchy. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 and early adoption is permitted. | N/A | We do not expect this standard to have a material impact on our consolidated financial statements as it modifies disclosure requirements only. | ||||
ASU 2018-14 "Compensation- Retirement Benefits - Defined Benefit Plans- General Topic (715-20): Disclosure Framework- Changes to the Disclosure Requirements for Defined Benefit Plans" | August 2018 | The standard modifies the disclosure requirements by adding, removing, and modifying certain required disclosures for employers that sponsor defined benefit pension or other post-retirement benefit plans. The standard also clarifies disclosure requirements for defined benefit pension plans relating to the projected benefit obligation and accumulated benefit obligation. The standard is effective for fiscal years ending after December 15, 2019 and early adoption is permitted. | N/A | We do not expect this standard to have a material impact on our consolidated financial statements as it modifies disclosure requirements only. | ||||
ASU 2018-15 "Intangibles- Goodwill and Other- Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract" | August 2018 | The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. | N/A | We do not expect this standard to have a material impact on our consolidated financial statements. | ||||
ASU 2019-12 "Income Taxes (Topic 740)" | December 2019 | The standard provides final guidance that simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The guidance simplifies accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for fiscal years ending after December 15, 2020 and early adoption is permitted. | N/A | We are in the process of evaluating the impact that the standard will have on our consolidated financial statements. | ||||
Fiscal 2019 Restructuring Plan | Year Ended March 31, 2020 | Year Ended March 31, 2019 | ||||
Severance and other compensation related costs | $ | $ | ||||
Accelerated depreciation and amortization | ||||||
(Gain) on disposal of asset | ( | ) | ||||
Asset impairment | ||||||
Lease termination costs and other | ||||||
Product rationalization (1) | ||||||
Total restructuring expenses | $ | $ | ||||
Fiscal 2019 Restructuring Plan | March 31, 2019 | Provisions | Payments /Impairments (1) | March 31, 2020 | ||||||||||||
Severance and termination benefits | $ | $ | $ | ( | ) | $ | ||||||||||
Lease termination obligations and other | ( | ) | ||||||||||||||
Total | $ | $ | $ | ( | ) | $ | ||||||||||
Fiscal 2019 Restructuring Plan | March 31, 2018 | Provisions | Payments /Impairments (1) | March 31, 2019 | |||||||||||||||
Severance and termination benefits | $ | $ | $ | ( | ) | $ | |||||||||||||
Lease termination obligations and other | ( | ) | |||||||||||||||||
Total | $ | — | $ | — | $ | ( | ) | — | $ | ||||||||||
Healthcare Products Segment | Healthcare Specialty Services Segment | Life Sciences Segment | Applied Sterilization Technologies Segment | Total | ||||||||||||||||
Balance at March 31, 2018 | ||||||||||||||||||||
Goodwill acquired or allocated | ( | ) | ( | ) | ||||||||||||||||
Foreign currency translation adjustments | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | $ | |||||||||||||||
Goodwill acquired or allocated | ||||||||||||||||||||
Divestitures | — | ( | ) | — | — | ( | ) | |||||||||||||
Foreign currency translation adjustments | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
Balance at March 31, 2020 | $ | $ | $ | $ | $ | |||||||||||||||
2020 | 2019 | |||||||||||||||
March 31, | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Customer relationships | $ | $ | $ | $ | ||||||||||||
Non-compete agreements | ||||||||||||||||
Patents and technology | ||||||||||||||||
Trademarks and tradenames | ||||||||||||||||
Supplier relationships | ||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||
2021 | 2022 | 2023 | 2024 | 2025 | ||||||||||||||||
Estimated amortization expense | $ | $ | $ | $ | $ | |||||||||||||||
March 31, | 2020 | 2019 | ||||||
Raw materials | $ | $ | ||||||
Work in process | ||||||||
Finished goods | ||||||||
LIFO reserve | ( | ) | ( | ) | ||||
Reserve for excess and obsolete inventory | ( | ) | ( | ) | ||||
Inventories, net | $ | $ | ||||||
March 31, | 2020 | 2019 | ||||||
Land and land improvements (1) | $ | $ | ||||||
Buildings and leasehold improvements | ||||||||
Machinery and equipment | ||||||||
Information systems | ||||||||
Radioisotope | ||||||||
Construction in progress (1) | ||||||||
Total property, plant, and equipment | ||||||||
Less: accumulated depreciation and depletion | ( | ) | ( | ) | ||||
Property, plant, and equipment, net | $ | $ | ||||||
Asset Retirement Obligations | |||
Balance at March 31, 2018 | $ | ||
Liabilities incurred during the period | |||
Accretion expense and change in estimate | |||
Foreign currency and other | ( | ) | |
Balance at March 31, 2019 | $ | ||
Liabilities incurred during the period | |||
Liabilities settled during the period | ( | ) | |
Accretion expense and change in estimate | |||
Foreign currency and other | ( | ) | |
Balance at March 31, 2020 | $ | ||
2020 | 2019 | |||||||
Credit Agreement | $ | $ | ||||||
Private Placement | ||||||||
Deferred financing fees | ( | ) | ( | ) | ||||
Other | ||||||||
Total long term debt | $ | $ | ||||||
Applicable Note Purchase Agreement | Maturity Date | U.S. Dollar Value at March 31, 2020 | U.S. Dollar Value at March 31, 2019 | |||||||||
$35,000 Senior notes at 6.43% | 2008 Private Placement | August 2020 | ||||||||||
$91,000 Senior notes at 3.20% | 2012 Private Placement | December 2022 | ||||||||||
$80,000 Senior notes at 3.35% | 2012 Private Placement | December 2024 | ||||||||||
$25,000 Senior notes at 3.55% | 2012 Private Placement | December 2027 | ||||||||||
$125,000 Senior notes at 3.45% | 2015 Private Placement | May 2025 | ||||||||||
$125,000 Senior notes at 3.55% | 2015 Private Placement | May 2027 | ||||||||||
$100,000 Senior notes at 3.70% | 2015 Private Placement | May 2030 | ||||||||||
$50,000 Senior notes at 3.93% | 2017 Private Placement | February 2027 | ||||||||||
€60,000 Senior notes at 1.86% | 2017 Private Placement | February 2027 | ||||||||||
$45,000 Senior notes at 4.03% | 2017 Private Placement | February 2029 | ||||||||||
€20,000 Senior notes at 2.04% | 2017 Private Placement | February 2029 | ||||||||||
£45,000 Senior notes at 3.04% | 2017 Private Placement | February 2029 | ||||||||||
€19,000 Senior notes at 2.30% | 2017 Private Placement | February 2032 | ||||||||||
£30,000 Senior notes at 3.17% | 2017 Private Placement | February 2032 | ||||||||||
Total Senior Notes | $ | $ | ||||||||||
2021 (1) | $ | ||
2022 | |||
2023 | |||
2024 | |||
2025 and thereafter | |||
Total | $ | ||
March 31, | 2020 | 2019 | ||||||
Accrued payroll and other related liabilities: | ||||||||
Compensation and related items | $ | $ | ||||||
Accrued vacation/paid time off | ||||||||
Accrued bonuses | ||||||||
Accrued employee commissions | ||||||||
Other post-retirement benefits obligations-current portion | ||||||||
Other employee benefit plans' obligations-current portion | ||||||||
Total accrued payroll and other related liabilities | $ | $ | ||||||
Accrued expenses and other: | ||||||||
Deferred revenues | $ | $ | ||||||
Service liabilities | ||||||||
Self-insured and related risk reserves-current portion | ||||||||
Accrued dealer commissions | ||||||||
Accrued warranty | ||||||||
Asset retirement obligation-current portion | ||||||||
Other | ||||||||
Total accrued expenses and other | $ | $ | ||||||
Other liabilities: | ||||||||
Self-insured risk reserves-long-term portion | $ | $ | ||||||
Other post-retirement benefits obligations-long-term portion | ||||||||
Defined benefit pension plans obligations-long-term portion | ||||||||
Other employee benefit plans obligations-long-term portion | ||||||||
Accrued long-term income taxes | ||||||||
Asset retirement obligation-long-term portion | ||||||||
Contingent consideration obligations- long term portion | ||||||||
Other | ||||||||
Total other liabilities | $ | $ | ||||||
Years Ended March 31, | 2020 | 2019 | 2018 | |||||||||
United States operations | $ | $ | $ | |||||||||
Ireland operations | ||||||||||||
Other locations operations | ||||||||||||
$ | $ | $ | ||||||||||
Years Ended March 31, | 2020 | 2019 | 2018 | |||||||||
Current: | ||||||||||||
United States federal | $ | $ | $ | |||||||||
United States state and local | ||||||||||||
Ireland | ||||||||||||
Other locations | ||||||||||||
Deferred: | ||||||||||||
United States federal | ( | ) | ||||||||||
United States state and local | ||||||||||||
Ireland | ( | ) | ( | ) | ( | ) | ||||||
Other locations | ( | ) | ( | ) | ( | ) | ||||||
( | ) | ( | ) | |||||||||
Total Provision for Income Taxes | $ | $ | $ | |||||||||
Years Ended March 31, | 2020 | 2019 | 2018 | ||||||
National statutory tax rate | % | % | % | ||||||
Increase (decrease) in accruals for uncertain tax positions | ( | )% | % | % | |||||
U.S. state and local taxes, net of federal income tax benefit | % | % | % | ||||||
Increase in valuation allowances | % | % | % | ||||||
U.S. research and development credit | ( | )% | ( | )% | ( | )% | |||
U.S. foreign income tax credit | ( | )% | ( | )% | ( | )% | |||
Difference in non-Ireland tax rates | % | % | % | ||||||
Difference in non-United Kingdom tax rates | % | % | % | ||||||
U.S. manufacturing deduction | % | % | ( | )% | |||||
Excess tax benefit for equity compensation | ( | )% | ( | )% | ( | )% | |||
Tax rate changes on deferred tax assets and liabilities | % | ( | )% | ( | )% | ||||
U.S. transition tax on foreign earnings | % | ( | )% | % | |||||
U.S. tax reform impact, GILTI and FDII | % | % | % | ||||||
Acquisitions and divestitures | % | % | % | ||||||
Capitalized acquisition, redomiciliation costs | % | % | % | ||||||
All other, net | % | % | % | ||||||
Total Provision for Income Taxes | % | % | % | ||||||
2020 | 2019 | |||||||
Unrecognized Tax Benefits Balance at April 1 | $ | $ | ||||||
Increases for tax provisions of current year | ||||||||
Decreases for tax provisions of prior year | ( | ) | ( | ) | ||||
Other, including currency translation | ( | ) | ( | ) | ||||
Unrecognized Tax Benefits Balance at March 31 | $ | $ | ||||||
March 31, | 2020 | 2019 | ||||||
Deferred Tax Assets: | ||||||||
Post-retirement benefit accrual | $ | $ | ||||||
Compensation | ||||||||
Net operating loss carryforwards | ||||||||
Accrued expenses | ||||||||
Insurance | ||||||||
Deferred income | ||||||||
Bad debt | ||||||||
Pension | ||||||||
Operating leases (1) | ||||||||
Other | ||||||||
Deferred Tax Assets | ||||||||
Less: Valuation allowance | ||||||||
Total Deferred Tax Assets | ||||||||
Deferred Tax Liabilities: | ||||||||
Depreciation and depletion | ||||||||
Operating leases (1) | ||||||||
Intangibles | ||||||||
Other | ||||||||
Total Deferred Tax Liabilities | ||||||||
Net Deferred Tax Assets (Liabilities) | $ | ( | ) | $ | ( | ) | ||
Other Defined Benefit Pension Plans | Other Post-Retirement Benefits Plan | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Change in Benefit Obligations: | |||||||||||||||
Benefit Obligations at Beginning of Year | $ | $ | $ | $ | |||||||||||
Service cost | |||||||||||||||
Prior service cost | |||||||||||||||
Interest cost | |||||||||||||||
Actuarial loss (gain) | ( | ) | ( | ) | ( | ) | |||||||||
Benefits and expenses | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Employee contributions | |||||||||||||||
Impact of foreign currency exchange rate changes | ( | ) | ( | ) | |||||||||||
Benefit Obligations at End of Year | |||||||||||||||
Change in Plan Assets: | |||||||||||||||
Fair Value of Plan Assets at Beginning of Year | |||||||||||||||
Actual return on plan assets | |||||||||||||||
Employer contributions | |||||||||||||||
Employee contributions | |||||||||||||||
Benefits and expenses paid | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Impact of foreign currency exchange rate changes | ( | ) | ( | ) | |||||||||||
Fair Value of Plan Assets at End of Year | |||||||||||||||
Funded Status of the Plans | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Other Defined Benefit Pension Plans | Other Post-Retirement Benefits Plan | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Current liabilities | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||
Noncurrent liabilities | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
$ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Defined Benefit Pension Plans | Other Post-Retirement Benefits Plan | |||||||
Actuarial loss | $ | $ | ||||||
Prior Service Cost | ( | ) | ||||||
Other Defined Benefit Pension Plans | ||||||||
2020 | 2019 | |||||||
Aggregate fair value of plan assets | $ | $ | ||||||
Aggregate accumulated benefit obligations | ||||||||
Aggregate projected benefit obligations | ||||||||
Other Defined Benefit Pension Plans | Other Post-Retirement Benefits Plan | |||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Interest cost | ||||||||||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Prior service cost recognition | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Net amortization and deferral | ||||||||||||||||||||||||
Net periodic benefit (credit) cost | $ | ( | ) | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||||||
Recognized in other comprehensive loss (income) before tax: | ||||||||||||||||||||||||
Net loss (gain) occurring during year | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ||||||||||||
Amortization of prior service credit | ( | ) | ||||||||||||||||||||||
Amortization of net loss | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||
Total recognized in other comprehensive loss (income) | ( | ) | ( | ) | ||||||||||||||||||||
Total recognized in total benefits cost and other comprehensive loss (income) | $ | $ | ( | ) | $ | $ | $ | $ | ||||||||||||||||
2020 | 2019 | |||||
Discount Rate: | ||||||
Synergy Health plc Retirement Benefits Scheme | % | % | ||||
Isotron BV Pension Plan | % | % | ||||
Synergy Health Daniken AG | % | % | ||||
Synergy Health Radeberg | % | % | ||||
Synergy Health Allershausen | % | % | ||||
Harwell Dosimeters Ltd Retirement Benefits Scheme | % | % | ||||
Other post-retirement plan | % | % | ||||
2020 | 2019 | 2018 | |||||||
Discount Rate: | |||||||||
Synergy Health plc Retirement Benefits Scheme | % | % | % | ||||||
Isotron BV Pension Plan | % | % | % | ||||||
Synergy Health Daniken AG | % | % | % | ||||||
Synergy Health Radeberg | % | % | % | ||||||
Synergy Health Allershausen | % | % | % | ||||||
Harwell Dosimeters Ltd Retirement Benefits Scheme | % | % | % | ||||||
Other post-retirement plan | % | % | % | ||||||
Expected Return on Plan Assets: | |||||||||
Synergy Health plc Retirement Benefits Scheme | % | % | % | ||||||
Isotron BV Pension Plan | % | % | % | ||||||
Synergy Health Daniken AG | % | % | % | ||||||
2020 | 2019 | 2018 | |||||||
Healthcare cost trend rate – medical | % | % | % | ||||||
Healthcare cost trend rate – prescription drug | % | % | % | ||||||
Long-term healthcare cost trend rate | % | % | % | ||||||
One-Percentage Point | ||||||||
Increase | Decrease | |||||||
Effect on total service and interest cost components | $ | $ | ||||||
Effect on other post-retirement benefit obligation | ( | ) | ||||||
Fair Value Measurements at March 31, 2020 | ||||||||||||||||
(In thousands) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | ||||||||||||
Cash | $ | $ | $ | $ | ||||||||||||
Insured annuities | ||||||||||||||||
Insurance contracts | ||||||||||||||||
Common and collective trusts valued at net asset value: | ||||||||||||||||
Equity security trusts | — | — | — | |||||||||||||
Debt security trusts | — | — | — | |||||||||||||
Total Plan Assets | $ | $ | $ | $ | ||||||||||||
Fair Value Measurements at March 31, 2019 | ||||||||||||||||
(In thousands) | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | ||||||||||||
Cash | $ | $ | $ | $ | ||||||||||||
Insured annuities | ||||||||||||||||
Insurance contracts | ||||||||||||||||
Common and collective trusts valued at net asset value: | ||||||||||||||||
Equity security trusts | — | — | — | |||||||||||||
Debt security trusts | — | — | — | |||||||||||||
Total Plan Assets | $ | $ | $ | $ | ||||||||||||
Insurance contracts | ||||
Balance at March 31, 2018 | $ | |||
Gains (losses) related to assets still held at year-end | ||||
Transfers out of Level 3 | ( | ) | ||
Foreign currency | ( | ) | ||
Balance at March 31, 2019 | $ | |||
Gains (losses) related to assets still held at year-end | ||||
Transfers out of Level 3 | ( | ) | ||
Foreign currency | ( | ) | ||
Balance at March 31, 2020 | $ | |||
Other Defined Benefit Pension Plans | Other Post-Retirement Benefits Plan | |||||||
2021 | $ | $ | ||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026-2031 | ||||||||
Year Ended March 31, 2020 | |||
Fixed operating lease expense | $ | ||
Variable operating lease expense | |||
Total operating lease expense | $ | ||
Year Ended March 31, 2020 | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | ||
Right-of-use assets obtained in exchange for operating lease obligations, net | $ | ||
March 31, 2020 | |||
2021 | $ | ||
2022 | |||
2023 | |||
2024 | |||
2025 and thereafter | |||
Total operating lease payments | |||
Less imputed interest | |||
Total operating lease liabilities | $ | ||
March 31, | ||
2020 | ||
Weighted-average remaining lease term of operating leases | ||
Weighted-average discount rate of operating leases | % | |
March 31, 2019 | ||||
2020 | $ | |||
2021 | ||||
2022 | ||||
2023 | ||||
2024 and thereafter | ||||
Total minimum lease payments | $ | |||
Years Ended March 31, | 2020 | 2019 | 2018 | |||||||||
Revenues: | ||||||||||||
Healthcare Products | $ | $ | $ | |||||||||
Healthcare Specialty Services | ||||||||||||
Life Sciences | ||||||||||||
Applied Sterilization Technologies | ||||||||||||
Total revenues | $ | $ | $ | |||||||||
Operating income (loss): | ||||||||||||
Healthcare Products | ||||||||||||
Healthcare Specialty Services | ||||||||||||
Life Sciences | ||||||||||||
Applied Sterilization Technologies | ||||||||||||
Total reportable segments | ||||||||||||
Corporate | ( | ) | ( | ) | ( | ) | ||||||
Total operating income before adjustments | $ | $ | $ | |||||||||
Less: Adjustments | ||||||||||||
Amortization of acquired intangible assets (1) | ||||||||||||
Acquisition and integration related charges (2) | ||||||||||||
Redomiciliation and tax restructuring costs (3) | ||||||||||||
(Gain) on fair value adjustment of acquisition related contingent consideration (1) | — | ( | ) | ( | ) | |||||||
Net loss (gain) on divestiture of businesses (1) | ( | ) | ||||||||||
Amortization of property "step up" to fair value (1) | ||||||||||||
Restructuring charges (4) | ||||||||||||
Impact of the U.S. Tax Cuts and Jobs Act (5) | — | |||||||||||
COVID-19 incremental costs (6) | ||||||||||||
Total operating income | $ | $ | $ | |||||||||
March 31, | 2020 | 2019 | ||||||
Assets: | ||||||||
Healthcare Products and Life Sciences | $ | $ | ||||||
Healthcare Specialty Services | ||||||||
Applied Sterilization Technologies | ||||||||
Total assets | $ | $ | ||||||
Years Ended March 31, | 2020 | 2019 | 2018 | |||||||||
Capital Expenditures | ||||||||||||
Healthcare Products and Life Sciences | $ | $ | $ | |||||||||
Healthcare Specialty Services | ||||||||||||
Applied Sterilization Technologies | ||||||||||||
Total Capital Expenditures | $ | $ | $ | |||||||||
Depreciation, Depletion, and Amortization | ||||||||||||
Healthcare Products and Life Sciences (1) (2) | $ | $ | $ | |||||||||
Healthcare Specialty Services | ||||||||||||
Applied Sterilization Technologies (1) | ||||||||||||
Total Depreciation, Depletion, and Amortization | $ | $ | $ | |||||||||
March 31, | 2020 | 2019 | ||||||
Property, Plant, and Equipment, Net | ||||||||
Ireland | $ | $ | ||||||
United States | ||||||||
Other locations | ||||||||
Property, Plant, and Equipment, Net | $ | $ | ||||||
Years Ended March 31, | 2020 | 2019 | 2018 | |||||||||
Revenues: | ||||||||||||
Ireland | $ | $ | $ | |||||||||
United States | ||||||||||||
Other locations | ||||||||||||
Total Revenues | $ | $ | $ | |||||||||
Years Ended March 31, | 2020 | 2019 | 2018 | |||||||||
Healthcare Products: | ||||||||||||
Capital equipment | $ | |||||||||||
Consumables | ||||||||||||
Service | ||||||||||||
Total Healthcare Products Revenues | $ | $ | $ | |||||||||
Total Healthcare Specialty Services Revenues | $ | $ | $ | |||||||||
Life Sciences: | ||||||||||||
Capital equipment | $ | |||||||||||
Consumables | ||||||||||||
Service | ||||||||||||
Total Life Sciences Revenues | $ | $ | $ | |||||||||
Applied Sterilization Technologies Service Revenues | $ | $ | $ | |||||||||
Total Revenues | $ | $ | $ | |||||||||
Years ended March 31, | 2020 | 2019 | 2018 | ||||||
Denominator (shares in thousands): | |||||||||
Weighted average shares outstanding—basic | |||||||||
Dilutive effect of share equivalents | |||||||||
Weighted average shares outstanding and share equivalents—diluted | |||||||||
Years ended March 31, | 2020 | 2019 | 2018 | ||||||
Number of ordinary share options (shares in thousands) | |||||||||
Fiscal 2020 | Fiscal 2019 | Fiscal 2018 | |||||||
Risk-free interest rate | % | % | % | ||||||
Expected life of options | |||||||||
Expected dividend yield of stock | % | % | % | ||||||
Expected volatility of stock | % | % | % | ||||||
Number of Options | Weighted Average Exercise Price | Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||
Outstanding at March 31, 2019 | $ | ||||||||||||
Granted | |||||||||||||
Exercised | ( | ) | |||||||||||
Forfeited | ( | ) | |||||||||||
Outstanding at March 31, 2020 | $ | $ | |||||||||||
Exercisable at March 31, 2020 | $ | $ | |||||||||||
Number of Restricted Shares | Number of Restricted Share Units | Weighted-Average Grant Date Fair Value | ||||||||
Non-vested at March 31, 2019 | $ | |||||||||
Granted | ||||||||||
Vested | ( | ) | ( | ) | ||||||
Forfeited | ( | ) | ( | ) | ||||||
Non-vested at March 31, 2020 | $ | |||||||||
Years Ended March 31, | 2020 | 2019 | 2018 | |||||||||
Balance, Beginning of Year | $ | $ | $ | |||||||||
Warranties issued during the period | ||||||||||||
Settlements made during the period | ( | ) | ( | ) | ( | ) | ||||||
Balance, End of Year | $ | $ | $ | |||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
Fair Value at | Fair Value at | Fair Value at | Fair Value at | |||||||||||||
Balance Sheet Location | March 31, 2020 | March 31, 2019 | March 31, 2020 | March 31, 2019 | ||||||||||||
Prepaid & Other | $ | $ | $ | $ | ||||||||||||
Accrued expenses and other | $ | $ | $ | $ | ||||||||||||
Location of (loss) gain recognized in income | Amount of (loss) gain recognized in income | |||||||||||||
Years Ended March 31, | ||||||||||||||
2020 | 2019 | 2018 | ||||||||||||
Foreign currency forward contracts | Selling, general and administrative | $ | $ | $ | ( | ) | ||||||||
Commodity swap contracts | Cost of revenues | $ | ( | ) | $ | $ | ||||||||
Fair Value Measurements | ||||||||||||||||||||||||||||
At March 31, | Carrying Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Forward and swap contracts (1) | ||||||||||||||||||||||||||||
Equity investments (2) | — | — | — | — | ||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||
Forward and swap contracts (1) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Deferred compensation plans (2) | ||||||||||||||||||||||||||||
Long term debt (3) | ||||||||||||||||||||||||||||
Contingent consideration obligations (4) | ||||||||||||||||||||||||||||
Contingent Consideration | ||||
Balance at March 31, 2018 | $ | |||
Payments | ( | ) | ||
Reductions and adjustments | ( | ) | ||
Foreign currency translation adjustments | ||||
Balance at March 31, 2019 | $ | |||
Additions | ||||
Foreign currency translation adjustments | ||||
Balance at March 31, 2020 | $ | |||
Fiscal Year 2020 | Fiscal Year 2019 | Fiscal Year 2018 | |||||||||
(dollars in thousands) | All Acquisitions (1) | All Acquisitions | All Acquisitions | ||||||||
Cash | $ | $ | $ | ||||||||
Accounts receivable | |||||||||||
Inventory | |||||||||||
Property, plant and equipment | |||||||||||
Lease right-of-use assets, net | |||||||||||
Other assets | |||||||||||
Intangible assets | |||||||||||
Goodwill | |||||||||||
Total Assets | |||||||||||
Current liabilities | ( | ) | ( | ) | ( | ) | |||||
Non-current liabilities | ( | ) | ( | ) | ( | ) | |||||
Total Liabilities | ( | ) | ( | ) | ( | ) | |||||
Net Assets | $ | $ | $ | ||||||||
Gain (Loss) on Available for Sale Securities (1) (4) | Defined Benefit Plans (2) | Foreign Currency Translation (3) | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||||||||||
Beginning Balance | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||||||
Other Comprehensive Income (Loss) before reclassifications | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||||
Reclassified from Accumulated Other Comprehensive Income (Loss) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Net current-period Other Comprehensive Income (Loss) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||||
Cumulative adjustment to Retained Earnings (4) | $ | — | $ | ( | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | ( | ) | $ | — | ||||||||||
Ending Balance | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||
Quarters Ended | March 31, | December 31, | September 30, | June 30, | |||||||||||
Fiscal 2020 | |||||||||||||||
Revenues: | |||||||||||||||
Product | $ | $ | $ | $ | |||||||||||
Service | |||||||||||||||
Total Revenues | |||||||||||||||
Cost of Revenues: | |||||||||||||||
Product | |||||||||||||||
Service | |||||||||||||||
Total Cost of Revenues | |||||||||||||||
Gross Profit | |||||||||||||||
Percentage of Revenues | % | % | % | % | |||||||||||
Restructuring Expenses | ( | ) | ( | ) | |||||||||||
Net Income Attributable to Shareholders | $ | $ | $ | $ | |||||||||||
Basic Income Per Ordinary Share Attributable to Shareholders: | |||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Diluted Income Per Ordinary Share Attributable to Shareholders: | |||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Fiscal 2019 | |||||||||||||||
Revenues: | |||||||||||||||
Product | $ | $ | $ | $ | |||||||||||
Service | |||||||||||||||
Total Revenues | |||||||||||||||
Cost of Revenues: | |||||||||||||||
Product | |||||||||||||||
Service | |||||||||||||||
Total Cost of Revenues | |||||||||||||||
Gross Profit | |||||||||||||||
Percentage of Revenues | % | % | % | % | |||||||||||
Restructuring Expenses | |||||||||||||||
Net Income Attributable to Shareholders | $ | $ | $ | $ | |||||||||||
Basic Income Per Ordinary Share Attributable to Shareholders: | |||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Diluted Income Per Ordinary Share Attributable to Shareholders: | |||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Description | Balance at Beginning of Period | Charges to Costs and Expenses | Charges to Other Accounts | Deductions | Balance at End of Period | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Year ended March 31, 2020 | |||||||||||||||||||||||
Deducted from asset accounts: | |||||||||||||||||||||||
Allowance for trade accounts receivable (1) | $ | $ | $ | ( | ) | (3) | $ | ( | ) | (4) | $ | ||||||||||||
Inventory valuation reserve | ( | ) | (2) | (3) | — | ||||||||||||||||||
Deferred tax asset valuation allowance | ( | ) | (3) | ( | ) | ||||||||||||||||||
Recorded within liabilities: | |||||||||||||||||||||||
Casualty loss reserves | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
Year ended March 31, 2019 | |||||||||||||||||||||||
Deducted from asset accounts: | |||||||||||||||||||||||
Allowance for trade accounts receivable (1) | $ | $ | $ | ( | ) | (3) | $ | ( | ) | (4) | $ | ||||||||||||
Inventory valuation reserve | ( | ) | (2) | (3) | — | ||||||||||||||||||
Deferred tax asset valuation allowance | ( | ) | (3) | ( | ) | ||||||||||||||||||
Recorded within liabilities: | |||||||||||||||||||||||
Casualty loss reserves | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||
Year ended March 31, 2018 | |||||||||||||||||||||||
Deducted from asset accounts: | |||||||||||||||||||||||
Allowance for trade accounts receivable (1) | $ | $ | $ | (3) | $ | ( | ) | (4) | $ | ||||||||||||||
Inventory valuation reserve | (2) | ( | ) | (3) | — | ||||||||||||||||||
Deferred tax asset valuation allowance | (3) | ( | ) | ||||||||||||||||||||
Recorded within liabilities: | |||||||||||||||||||||||
Casualty loss reserves | $ | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||||||||
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
ITEM 9B. | OTHER INFORMATION |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights ($) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||
(a) | (b) | (c) | ||||
Equity compensation plans approved by security holders | 1,796,126 | $91.29 | 3,961,998 | |||
Equity compensation plans not approved by security holders | — | — | — | |||
Total | 1,796,126 | $91.29 | 3,961,998 | |||
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
Exhibit Number | Exhibit Description |
3.1 | |
4.1 | |
10.1 | |
10.2 | |
10.3 | |
10.4 | |
10.5 | |
10.6 | |
10.7 | |
10.8 | |
10.9 | |
10.10 | |
10.11 | |
10.12 | |
10.13 | |
10.14 | |
10.15 | |
10.16 | |
10.17 | |
10.18 | |
10.19 | |
10.20 | |
10.21 | |
10.22 | |
10.23 | |
10.24 | |
10.25 | |
10.26 | |
10.27 | |
10.28 | |
10.29 | |
10.30 | |
10.31 | |
10.32 | |
10.33 | |
10.34 | |
10.35 | |
10.36 | |
10.37 | |
10.38 | |
10.39 | |
10.40 | |
10.41 | |
10.42 | |
10.43 | |
10.44 | |
10.45 | |
10.46 | |
10.47 | |
10.48 | |
10.49 | |
10.50 | |
10.51 | |
10.52 | |
10.53 | |
10.54 | |
10.55 | |
10.56 | |
10.57 | |
10.58 | |
10.59 | |
10.60 | |
10.61 | |
10.62 | |
10.63 | |
10.64 | |
10.65 | |
10.66 | |
10.67 | |
10.68 | |
10.69 | |
10.70 | |
10.71 | |
21.1 | |
23.1 | |
24.1 | |
31.1 | |
31.2 | |
32.1 | |
101.SCH | Inline Schema Document. |
101.CAL | Inline Calculation Linkbase Document. |
101.DEF | Inline Definition Linkbase Document. |
101.LAB | Inline Labels Linkbase Document. |
101.PRE | Inline Presentation Linkbase Document. |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibits 101). |
* | A management contract or compensatory plan or arrangement required to be filed as an exhibit hereto. |
STERIS plc (Registrant) | |||
Date: | May 29, 2020 | By: | /S/ KAREN L. BURTON |
Karen L. Burton | |||
Vice President, Controller, and Chief Accounting Officer | |||
SIGNATURE | TITLE | DATE | ||
/S/ WALTER M ROSEBROUGH, JR. | President, Chief Executive Officer and Director | May 29, 2020 | ||
Walter M Rosebrough, Jr. | ||||
/S/ MICHAEL J. TOKICH | Senior Vice President and Chief Financial Officer (Principal Financial Officer) | May 29, 2020 | ||
Michael J. Tokich | ||||
/S/ KAREN L. BURTON | Vice President, Controller and Chief Accounting Officer | May 29, 2020 | ||
Karen L. Burton | ||||
* | Chairman and Director | May 29, 2020 | ||
Mohsen M. Sohi | ||||
* | Director | May 29, 2020 | ||
Richard C. Breeden | ||||
* | Director | May 29, 2020 | ||
Cynthia L. Feldmann | ||||
* | Director | May 29, 2020 | ||
David B. Lewis | ||||
* | Director | May 29, 2020 | ||
Jacqueline B. Kosecoff | ||||
* | Director | May 29, 2020 | ||
Nirav R. Shah | ||||
* | Director | May 29, 2020 | ||
Richard M. Steeves | ||||
* | The undersigned, by signing his name hereto, does sign and execute this Annual Report on Form 10-K pursuant to the Powers of Attorney executed by the above-named directors of the Registrant and filed with the Securities and Exchange Commission on behalf of such directors. |
Date: | May 29, 2020 | By: | /S/ J. ADAM ZANGERLE |
J. Adam Zangerle, Attorney-in-Fact for Directors | |||
1. | Section 2 of the Plan is amended and restated in its entirety effective as of the date of execution hereof to provide as follows: |
2. | Except as modified hereby, the Plan shall remain in full force and effect and unmodified. |
Albert Browne Limited | England & Wales |
American Sterilizer Company | Pennsylvania |
Bioster Mottahedoon Egypt SAE | Egypt |
Birkova Products | Indiana |
Bizworth Gammarad Sdn Bhd | Malaysia |
Black Diamond Video, Inc. | California |
Bryton Corporation | Indiana |
CLBV Limited | England & Wales |
Controlled Environment Certification Services, Inc. | Ohio |
Diagmed Healthcare Limited | England & Wales |
Dover UK I Limited | England & Wales |
Dover UK II Limited | England & Wales |
Dover UK III Limited | England & Wales |
Electron Beam Sdn Bhd | Malaysia |
Eschmann Holdings Limited | England & Wales |
Genii, Inc. | Minnesota |
Harwell Dosimeters Limited | England & Wales |
Herotron E-Beam Service GmbH | Germany |
Hungaroptics kft | Hungary |
Isomedix Inc. | Delaware |
Isomedix Operations Inc. | Delaware |
Isotron Limited | England & Wales |
Medisafe America, L.L.C. | Florida |
Medisafe Holdings Limited | England & Wales |
Medisafe UK Limited | England & Wales |
PeriOptimum, Inc. | Delaware |
SATYAtek S.A. | Switzerland |
Sercon Indústria E Comércio De Aparelhos Médicos E Hospitalares Ltda. | Brazil |
Shiloh Limited | England & Wales |
Shiloh Properties Limited | England & Wales |
Solar New US Holding Co, LLC | Delaware |
Solar New US Parent Co, LLC | Delaware |
Solar US Acquisition Co, LLC | Delaware |
STE Hong Kong Limited | Hong Kong |
STE UK HoldCo Limited | England & Wales |
STE UK Sub HoldCo Limited | England & Wales |
STE No. Two Corporation | Delaware |
Sterile Supplies Limited | England & Wales |
STERIS AB | Sweden |
STERIS Applied Sterilization Technologies ULC | Canada |
STERIS Asia Pacific, Inc. | Delaware |
STERIS AST CZ s.r.o. | Czech Republic |
STERIS AST d.o.o. | Slovenia |
STERIS AST SK s.r.o. | Slovakia |
STERIS Barrier Products Solutions, Inc. | Pennsylvania |
STERIS Brazil Holdings, LLC | Delaware |
STERIS (BVI) I Limited | British Virgin Islands |
STERIS Canada Sales ULC | Canada |
STERIS Canada ULC | Canada |
STERIS CH Limited | England & Wales |
STERIS China Holdings Limited | Hong Kong |
STERIS Corporation | Ohio |
STERIS Corporation de Costa Rica, S.A. | Costa Rica |
STERIS Deutschland GmbH | Germany |
STERIS Dover AST Holdings Limited | England & Wales |
STERIS Dover Canada Holdings Limited | England & Wales |
STERIS Dover Limited | England & Wales |
STERIS Emerald IE Limited | Ireland |
STERIS Enterprises LLC | Russia |
STERIS Europe, Inc. | Delaware |
STERIS FinCo S.à r.l. | Luxembourg |
STERIS FinCo II S.à r.l. | Luxembourg |
STERIS GmbH | Switzerland |
STERIS Holdings B.V. | Netherlands |
STERIS Iberia, S.A. | Spain |
STERIS IMS Canada Inc. | Canada |
STERIS IMS Limited | England & Wales |
STERIS Inc. | Delaware |
STERIS (India) Private Limited | India |
STERIS Instrument Management Services, Inc. | Delaware |
STERIS Ireland Limited | Ireland |
STERIS Irish FinCo Unlimited Company | Ireland |
STERIS Irish FinCo II Unlimited Company | Ireland |
STERIS Isomedix Puerto Rico, LLC | Puerto Rico |
STERIS Japan Inc. | Japan |
STERIS LLC | Delaware |
STERIS Laboratories, Inc. | Minnesota |
STERIS Latin America, Inc. | Delaware |
STERIS Luxembourg Finance S.à r.l. | Luxembourg |
STERIS Luxembourg Holding S.à r.l. | Luxembourg |
STERIS Mauritius Limited | Republic of Mauritius |
STERIS Mexico, S. de R.L. de C.V. | Mexico |
STERIS NV | Belgium |
STERIS Personnel Services, Inc. | Delaware |
STERIS Personnel Services Mexico, S. de R.L. de C.V. | Mexico |
STERIS S.r.l. | Italy |
STERIS SAS | France |
STERIS SEA Sdn. Bhd. | Malaysia |
STERIS Solutions Korea Limited | Korea |
STERIS Solutions S. de R.L. de C.V. | Mexico |
STERIS (Shanghai) Trading Co., Ltd. | China |
STERIS Singapore Pte Ltd | Singapore |
STERIS Solutions Limited | England & Wales |
STERIS Solutions Pte. Limited | Singapore |
STERIS S.p.A. | Italy |
STERIS TOMOE (Thailand) Ltd. | Thailand |
STERIS UK Holding Limited | England & Wales |
STERIS-Austar Pharmaceutical Systems Hong Kong Limited | Hong Kong |
STERIS-Austar Pharmaceutical Systems (Shanghai) Limited | China |
Strategic Technology Enterprises, Inc. | Delaware |
Synergy Health Allershausen GmbH | Germany |
Synergy Health Amsterdam B.V. | The Netherlands |
Synergy Health AST, LLC | Delaware |
Synergy Health AST S.r.l. | Costa Rica |
Synergy Health Däniken AG | Switzerland |
Synergy Health Ede B.V. | The Netherlands |
Synergy Health France SAS | France |
Synergy Health Holding B.V. | The Netherlands |
Synergy Health Holdings Limited | England & Wales |
Synergy Health Investments Limited | England & Wales |
Synergy Health Ireland Limited | Ireland |
Synergy Health Limited | England & Wales |
Synergy Health Logistics B.V. | The Netherlands |
Synergy Health Marseille SAS | France |
Synergy Health Nederland B.V. | The Netherlands |
Synergy Health Radeberg GmbH | Germany |
Synergy Health Sterilisation UK Limited | England & Wales |
Synergy Health (Suzhou) Limited | China |
STERIS Sterilization Technologies (Suzhou) Ltd. | China |
Synergy Health Systems Limited | England & Wales |
Synergy Health (Thailand) Limited | Thailand |
Synergy Health True North, LLC | New York |
Synergy Health (UK) Limited | England & Wales |
Synergy Health US Holdings, Inc. | Delaware |
Synergy Health Utrecht B.V. | The Netherlands |
Synergy Health Westport Limited | Ireland |
Synergy Sterilisation KL (M) Sdn Bhd | Malaysia |
Synergy Sterilisation Kulim (M) Sdn Bhd | Malaysia |
Synergy Sterilisation (M) Sdn Bhd | Malaysia |
Synergy Sterilisation Rawang (M) Sdn Bhd | Malaysia |
Synergy Sterilisation South Africa (Proprietary) Limited | South Africa |
United States Endoscopy Group, Inc. | Ohio |
Vernon and Co. Limited | England & Wales |
Vernon-Carus Limited | England & Wales |
(1) | The names of one or more subsidiaries which, considered in the aggregate as a single subsidiary, would not constitute at the end of fiscal 2020 a “significant subsidiary” within the meaning of Rule 1-02(w) of Regulation S-X have been excluded. |
(1) | Registration Statement (Form S-8, No. 333-230557) of STERIS plc pertaining to the STERIS Corporation 401(k) Plan, and |
(2) | Registration Statement (Form S-8, No. 333-230558) of STERIS plc pertaining to the STERIS plc 2006 Long-Term Equity Incentive Plan (As Assumed, Amended and Restated Effective March 28, 2019); |
/s/ RICHARD C. BREEDEN | /s/ CYNTHIA L. FELDMANN | |
Richard C. Breeden, Director | Cynthia L. Feldmann, Director | |
/s/ JACQUELINE B. KOSECOFF | /s/ DAVID B. LEWIS | |
Jacqueline B. Kosecoff, Director | David B. Lewis, Director | |
/s/ MOHSEN M. SOHI | /s/ RICHARD M. STEEVES | |
Mohsen M. Sohi, Director | Richard M. Steeves, Director | |
/s/ NIRAV R. SHAH | /s/ WALTER M ROSEBROUGH, JR | |
Nirav R. Shah, Director | Walter M Rosebrough, Jr. | |
President and Chief Executive Officer | ||
(Principal Executive Officer), Director | ||
/s/ MICHAEL J. TOKICH | ||
Michael J. Tokich | ||
Senior Vice President, and Chief Financial Officer | ||
(Principal Financial Officer) | ||
/s/ KAREN L. BURTON | ||
Karen L. Burton | ||
Vice President and Controller | ||
(Controller and Principal Accounting Officer) | ||
1. | I have reviewed this annual report on Form 10-K of STERIS plc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 29, 2020 |
/S/ WALTER M ROSEBROUGH, JR. | |
Walter M Rosebrough, Jr. President and Chief Executive Officer | |
1. | I have reviewed this annual report on Form 10-K of STERIS plc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 29, 2020 |
/S/ MICHAEL J. TOKICH | |
Michael J. Tokich Senior Vice President and Chief Financial Officer | |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report. |
/S/ WALTER M ROSEBROUGH, JR. | ||
Name: | Walter M Rosebrough, Jr. | |
Title: | President and Chief Executive Officer | |
/S/ MICHAEL J. TOKICH | ||
Name: | Michael J. Tokich | |
Title: | Senior Vice President and Chief Financial Officer | |
Debt (Details) € in Thousands, £ in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|---|
|
Jun. 30, 2015
USD ($)
|
Mar. 31, 2017 |
Mar. 31, 2020
USD ($)
|
Mar. 31, 2019
USD ($)
|
Feb. 27, 2017
GBP (£)
|
Feb. 27, 2017
USD ($)
|
Feb. 27, 2017
EUR (€)
|
|||
| Debt Instrument [Line Items] | |||||||||
| Senior Notes | $ 350,000 | $ 878,409 | $ 884,967 | ||||||
| Long-term Debt, Current Maturities | [1] | 35,000 | |||||||
| Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000 | ||||||||
| Deferred Finance Costs, Own-share Lending Arrangement, Issuance Costs, Net | (3,337) | (3,619) | |||||||
| Other Long-term Debt, Noncurrent | 0 | 33 | |||||||
| Line of Credit Facility, Amount Outstanding | 275,449 | 301,846 | |||||||
| Long-term Debt | 1,153,858 | ||||||||
| Long-term Debt | 1,150,521 | $ 1,183,227 | |||||||
| Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | ||||||||
| Long-term Debt, Maturities, Repayments of Principal in Year Three | 366,449 | ||||||||
| Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | ||||||||
| Long-term Debt, Maturities, Repayments of Principal after Year Five | 752,409 | ||||||||
| 10 year maturity | |||||||||
| Debt Instrument [Line Items] | |||||||||
| Debt Instrument, Term | 10 years | 10 years | |||||||
| 12 year maturity | |||||||||
| Debt Instrument [Line Items] | |||||||||
| Debt Instrument, Term | 10 years | ||||||||
| 15 year maturity | |||||||||
| Debt Instrument [Line Items] | |||||||||
| Debt Instrument, Term | 15 years | ||||||||
| Debt Instrument, Maturity Date, Description | P15Y | ||||||||
| Revolving Credit Facility [Member] | |||||||||
| Debt Instrument [Line Items] | |||||||||
| Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | ||||||||
| United States of America, Dollars | |||||||||
| Debt Instrument [Line Items] | |||||||||
| Senior Notes | $ 95,000 | ||||||||
| United Kingdom, Pounds | |||||||||
| Debt Instrument [Line Items] | |||||||||
| Senior Notes | £ | £ 75,000 | ||||||||
| Euro Member Countries, Euro | |||||||||
| Debt Instrument [Line Items] | |||||||||
| Senior Notes | € | € 99,000 | ||||||||
| |||||||||
Benefit Plans (Change in benefit obligations funded status) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | $ (142) | $ (292) | |
| Defined benefit plan repayment of obligation [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 3,839 | ||
| Other Postretirement Benefit Plans, Defined Benefit | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 1,510 | ||
| Defined Benefit Plan, Benefit Obligation | 11,368 | 12,551 | $ 14,100 |
| Defined Benefit Plan, Service Cost | 0 | 0 | 0 |
| Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | |
| Defined benefit plan, change in benefit obligation, interest cost | 408 | 457 | |
| Defined Benefit Plan, Actuarial Net (Gains) Losses | 181 | (106) | |
| Defined Benefit Plan, Benefit Obligation, Benefits Paid | 1,772 | 1,900 | |
| Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 0 | 0 | |
| Defined Benefit Plan, Benefits Paid (Deprecated 2017-01-31) | (1,772) | (1,900) | |
| Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 0 | 0 | |
| Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | 0 |
| Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 0 | 0 | |
| Defined Benefit Plan, Plan Assets, Contributions by Employer | 1,772 | 1,900 | |
| Defined Benefit Plan, Funded (Unfunded) Status of Plan | (11,368) | (12,551) | |
| Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | 0 | 0 | |
| Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 0 | 0 | |
| Other Defined Benefit Pension Plans [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 5,872 | ||
| Defined Benefit Plan, Benefit Obligation | 123,190 | 133,672 | 148,848 |
| Defined Benefit Plan, Service Cost | 1,380 | 2,394 | 2,402 |
| Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 831 | |
| Defined benefit plan, change in benefit obligation, interest cost | 2,955 | 3,255 | |
| Defined Benefit Plan, Actuarial Net (Gains) Losses | (3,736) | (4,402) | |
| Defined Benefit Plan, Benefit Obligation, Benefits Paid | 6,466 | 6,150 | |
| Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 1,046 | 743 | |
| Defined Benefit Plan, Benefits Paid (Deprecated 2017-01-31) | (6,466) | (6,150) | |
| Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 1,045 | 742 | |
| Defined Benefit Plan, Plan Assets, Amount | 112,203 | 117,504 | $ 119,441 |
| Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 228 | 6,543 | |
| Defined Benefit Plan, Plan Assets, Contributions by Employer | 5,071 | 5,005 | |
| Defined Benefit Plan, Funded (Unfunded) Status of Plan | (10,987) | (16,168) | |
| Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | (5,179) | (8,077) | |
| Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | $ (5,661) | $ (11,847) | |
Benefit Plans (Projected benefit obligation exceeding the fair value of plan assets) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
Sep. 30, 2008 |
|
| Defined Benefit Plan Disclosure [Line Items] | ||||
| Defined Benefit Plan, Accumulated Benefit Obligation | $ 46,001 | |||
| Other Defined Benefit Pension Plans [Member] | ||||
| Defined Benefit Plan Disclosure [Line Items] | ||||
| Defined Benefit Plan, Benefit Obligation | $ 123,190 | $ 133,672 | $ 148,848 | |
| Defined Benefit Plan, Plan Assets, Amount | 112,203 | 117,504 | 119,441 | |
| Defined Benefit Plan, Accumulated Benefit Obligation | 120,084 | 130,669 | ||
| Defined Benefit Plan, Service Cost | 1,380 | 2,394 | 2,402 | |
| Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 69 | 51 | 0 | |
| Defined Benefit Plan, Interest Cost | 2,876 | 3,139 | 3,262 | |
| Defined Benefit Plan, Actuarial Net (Gains) Losses | (3,736) | (4,402) | ||
| Defined Benefit Plan, Benefit Obligation, Benefits Paid | 6,466 | 6,150 | ||
| Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 1,046 | 743 | ||
| Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | (5,661) | (11,847) | ||
| Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 228 | 6,543 | ||
| Defined Benefit Plan, Plan Assets, Contributions by Employer | 5,071 | 5,005 | ||
| Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 1,045 | 742 | ||
| Defined Benefit Plan, Plan Assets, Benefits Paid | 6,466 | 6,150 | ||
| Defined Benefit Plan, Funded (Unfunded) Status of Plan | (10,987) | (16,168) | ||
| Other Postretirement Benefit Plans, Defined Benefit | ||||
| Defined Benefit Plan Disclosure [Line Items] | ||||
| Defined Benefit Plan, Benefit Obligation | 11,368 | 12,551 | 14,100 | |
| Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | 0 | |
| Defined Benefit Plan, Service Cost | 0 | 0 | 0 | |
| Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (3,263) | (3,263) | (3,263) | |
| Defined Benefit Plan, Interest Cost | 409 | 457 | $ 519 | |
| Defined Benefit Plan, Actuarial Net (Gains) Losses | 181 | (106) | ||
| Defined Benefit Plan, Benefit Obligation, Benefits Paid | 1,772 | 1,900 | ||
| Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 0 | 0 | ||
| Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 0 | 0 | ||
| Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 0 | 0 | ||
| Defined Benefit Plan, Plan Assets, Contributions by Employer | 1,772 | 1,900 | ||
| Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 0 | 0 | ||
| Defined Benefit Plan, Plan Assets, Benefits Paid | 1,772 | 1,900 | ||
| Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (11,368) | $ (12,551) | ||
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
12 Months Ended | ||||||
|---|---|---|---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|||||
| Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 407,805 | $ 305,076 | $ 291,622 | ||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
| Depreciation, depletion, and amortization | 197,235 | 225,921 | 178,332 | ||||
| Deferred income taxes | 9,423 | (6,511) | (24,722) | ||||
| Share-based compensation | 23,811 | 23,965 | 22,187 | ||||
| Loss on the disposal of property, plant, equipment, and intangibles, net | (174) | 924 | 2,582 | ||||
| Loss (Gain) on Disposition of Business | 1,770 | (1,370) | [1] | 14,547 | [1] | ||
| Other items | 426 | (18,397) | 32,229 | ||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable, net | (17,866) | (48,486) | (37,731) | ||||
| Inventories, net | (39,067) | (14,617) | (5,178) | ||||
| Other current assets | 3,784 | (7,371) | (1,244) | ||||
| Accounts payable | (2,779) | 21,244 | 563 | ||||
| Accruals and other, net | 6,191 | 59,127 | (15,555) | ||||
| Net cash provided by operating activities | 590,559 | 539,505 | 457,632 | ||||
| Investing activities: | |||||||
| Purchases of property, plant, equipment, and intangibles, net | (214,516) | (189,715) | (165,457) | ||||
| Proceeds from the sale of property, plant, equipment, and intangibles | 4,156 | 5,567 | 2,094 | ||||
| Proceeds from Divestiture of Businesses | 439 | 2,478 | 8,888 | ||||
| Payments to Acquire Investments | 0 | (4,955) | 0 | ||||
| Investments in businesses, net of cash acquired | (109,814) | (13,313) | (46,271) | ||||
| Payments for (Proceeds from) Other Investing Activities | 0 | (13,286) | (3,083) | ||||
| Net cash used in investing activities | (319,735) | (213,224) | (203,829) | ||||
| Financing activities: | |||||||
| Repayments of Long-term Debt | 0 | (85,000) | (222,500) | ||||
| Proceeds Under Credit Facility, net | (26,500) | (27,087) | 29,065 | ||||
| Amortization of Financing Costs | (1,281) | (488) | (2,029) | ||||
| Payments of Merger Related Costs, Financing Activities | (626) | (1,327) | (2,064) | ||||
| Repurchases of ordinary shares | (51,241) | (81,494) | (65,485) | ||||
| Cash dividends paid to common shareholders | (123,034) | (112,503) | (102,929) | ||||
| Proceeds from Noncontrolling Interests | 6,050 | 0 | 0 | ||||
| Payments to Noncontrolling Interests | (1,245) | (255) | (1,400) | ||||
| Proceeds from (Payments for) Other Financing Activities | 34,731 | 13,362 | 11,158 | ||||
| Net cash (used in) provided by financing activities | (163,146) | (294,792) | (356,184) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (8,730) | (12,390) | 20,997 | ||||
| Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 98,948 | 19,099 | (81,384) | ||||
| Cash and cash equivalents at beginning of period | 220,633 | 201,534 | 282,918 | ||||
| Cash and cash equivalents at end of period | $ 319,581 | $ 220,633 | $ 201,534 | ||||
| |||||||
Financial and Other Guarantees (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes To Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Guarantor Obligations | Changes in our warranty liability during the periods presented are as follows:
|
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Contingencies lease tables (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lessee, Operating Lease, Disclosure [Table Text Block] | Supplemental cash flow information related to operating leases is as follows:
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| Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of lease liabilities at March 31, 2020 are as follows:
In the preceding table, the future minimum annual rentals payable under noncancelable leases denominated in foreign currencies have been calculated using March 31, 2020 foreign currency exchange rates. Supplemental information related to operating leases is as follows:
Prior to the adoption of ASU 2016-02, " Leases" (Topic 842) future minimum annual rentals payable under noncancelable operating lease agreements in excess of one year as of March 31, 2019 were as follows:
In the preceding table, the future minimum annual rentals payable under noncancelable leases denominated in foreign currencies have been calculated using March 31, 2019 foreign currency exchange rates.
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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands |
Mar. 31, 2020 |
Mar. 31, 2019 |
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| Statement of Financial Position [Abstract] | |||||
| Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||
| Preferred Stock, Shares Outstanding | 0 | 0 | |||
| Common Stock, Shares Authorized | 500,000,000 | 500,000,000 | |||
| Accounts Receivable, Allowance for Credit Loss, Current | $ 12,051 | $ 9,645 | [1] | ||
| Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 | |||
| Current assets: | |||||
| Cash and cash equivalents | $ 319,581 | $ 220,633 | |||
| Accounts receivable (net of allowances of $12,051 and $9,645 respectively) | 586,481 | 564,830 | |||
| Inventories, net | 248,259 | 208,243 | |||
| Prepaid expenses and other current assets | 54,430 | 60,029 | |||
| Total current assets | 1,208,751 | 1,053,735 | |||
| Property, plant, and equipment, net | 1,111,855 | 1,031,582 | |||
| Operating Lease, Right-of-Use Asset | 131,837 | 0 | |||
| Intangible Assets, Net (Including Goodwill) | 565,473 | 604,614 | |||
| Goodwill | 2,356,085 | 2,322,928 | |||
| Other assets | 51,581 | 60,212 | |||
| Total assets | 5,425,582 | 5,073,071 | |||
| Current liabilities: | |||||
| Accounts payable | 149,341 | 152,913 | |||
| Accrued Income Taxes, Current | 14,013 | 15,460 | |||
| Accrued payroll and other related liabilities | 128,261 | 109,058 | |||
| Capital Lease Obligations, Current | 19,809 | 0 | |||
| Accrued expenses and other | 192,183 | 187,765 | |||
| Total current liabilities | 503,607 | 465,196 | |||
| Long-term indebtedness | 1,150,521 | 1,183,227 | |||
| Deferred income taxes, net | 160,270 | 151,038 | |||
| Capital Lease Obligations, Noncurrent | 114,114 | 0 | |||
| Other Liabilities, Noncurrent | 90,346 | 87,812 | |||
| Total liabilities | 2,018,858 | 1,887,273 | |||
| Commitments and contingencies (see note 10) | |||||
| Ordinary shares, with $0.001 and $75.00 par value, respectively; 500,000 shares authorized; 84,924 and 84,517 ordinary shares issued and outstanding, respectively | 1,982,164 | 1,998,564 | |||
| Retained earnings | 1,647,175 | 1,339,024 | |||
| Accumulated other comprehensive income | (235,463) | (159,778) | |||
| Total shareholders' equity | 3,393,876 | 3,177,810 | |||
| Noncontrolling interest | 12,848 | 7,988 | |||
| Total equity | 3,406,724 | 3,185,798 | |||
| Total liabilities and equity | $ 5,425,582 | $ 5,073,071 | |||
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Share-Based Compensation |
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| Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Compensation | 14. SHARE-BASED COMPENSATION We maintain a long-term incentive plan that makes available shares for grants, at the discretion of the Board of Directors or Compensation Committee of the Board of Directors, to officers, directors, and key employees in the form of stock options, restricted shares, restricted share units, stock appreciation rights and share grants. We satisfy share award incentives through the issuance of new ordinary shares. Stock options provide the right to purchase our shares at the market price on the date of grant, or for options granted to employees in fiscal 2019 and thereafter, 110% of the market price on the date of grant, subject to the terms of the plan and agreements. Generally, one-fourth of the stock options granted to employees become exercisable for each full year of employment following the grant date. Stock options granted generally expire 10 years after the grant date, or in some cases earlier if the option holder is no longer employed by us. Restricted shares and restricted share units generally cliff vest after a four year period or vest in tranches of one-fourth of the number granted for each year of employment after the grant date. As of March 31, 2020, 3,961,998 shares remained available for grant under the long-term incentive plan. The fair value of share-based stock option compensation awards was estimated at their grant date using the Black-Scholes-Merton option pricing model. This model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable, characteristics that are not present in our option grants. If the model permitted consideration of the unique characteristics of employee stock options, the resulting estimate of the fair value of the stock options could be different. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our Consolidated Statements of Income. The expense is classified as cost of goods sold or selling, general and administrative expenses in a manner consistent with the employee’s compensation and benefits. The following weighted-average assumptions were used for options granted during fiscal 2020, fiscal 2019 and fiscal 2018:
The risk-free interest rate is based upon the U.S. Treasury yield curve. The expected life of options is reflective of historical experience, vesting schedules and contractual terms. The expected dividend yield of stock represents our best estimate of the expected future dividend yield. The expected volatility of stock is derived by referring to our historical stock prices over a time frame similar to that of the expected life of the grant. An estimated forfeiture rate of 2.77%, 2.37% and 2.25% was applied in fiscal 2020, 2019 and 2018 respectively. This rate is calculated based upon historical activity and represents an estimate of the granted options not expected to vest. If actual forfeitures differ from this calculated rate, we may be required to make additional adjustments to compensation expense in future periods. The assumptions used above are reviewed at the time of each significant option grant, or at least annually. A summary of share option activity is as follows:
We estimate that 857,860 of the non-vested stock options outstanding at March 31, 2020 will ultimately vest. The aggregate intrinsic value in the table above represents the total pre-tax difference between the $139.97 closing price of our ordinary shares on March 31, 2020 over the exercise prices of the stock options, multiplied by the number of options outstanding or outstanding and exercisable, as applicable. The aggregate intrinsic value is not recorded for financial accounting purposes and the value changes daily based on the daily changes in the fair market value of our ordinary shares. The total intrinsic value of stock options exercised during the years ended March 31, 2020, 2019 and 2018 was $57,683, $25,371 and $16,096, respectively. Net cash proceeds from the exercise of stock options were $34,731, $13,308 and $11,093 for the years ended March 31, 2020, 2019 and 2018, respectively. The tax benefit from stock option exercises was $16,440, $8,306 and $6,581 for the years ended March 31, 2020, 2019 and 2018, respectively. The weighted average grant date fair value of stock option grants was $23.52, $18.12 and $15.51 for the years ended March 31, 2020, 2019 and 2018, respectively. Stock appreciation rights (“SARS”) carry generally the same terms and vesting requirements as stock options except that they are settled in cash upon exercise and therefore, are classified as liabilities. The fair value of the outstanding SARS as of March 31, 2020, 2019 and 2018 was $544, $889, and $1,437, respectively. The fair value of outstanding SARS is revalued at each reporting date and the related liability and expense are adjusted appropriately. A summary of the non-vested restricted share activity is presented below:
Restricted shares granted are valued based on the closing stock price at the grant date. The value of restricted shares and units that vested during fiscal 2020 was $17,657. As of March 31, 2020, there was a total of $42,056 in unrecognized compensation cost related to non-vested share-based compensation granted under our share-based compensation plans. We expect to recognize the cost over a weighted average period of 2.1 years.
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Reclassifications out of AOCI (Notes) |
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| Reclassifications out of AOCI Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reclassifications Out of AOCI [Text Block] | 19. RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Amounts in Accumulated Other Comprehensive Income (Loss) are presented net of the related tax. Foreign Currency Translation is not adjusted for income taxes. Accumulated other comprehensive income (loss) shown in our Consolidated Statements of Shareholders' Equity and changes in our balances, net of tax, for the years ended March 31, 2020, 2019 and 2018 were as follows:
(1) Realized gain (loss) on available for sale securities is reported in the Interest income and miscellaneous expense line of the Consolidated Statements of Income for fiscal 2018. (2) Amortization (gain) of defined benefit plan items are reported in the Interest income and miscellaneous expense line of our Consolidated Statements of Income. (3) The effective portion of gain or loss on net debt designated as non-derivative net investment hedging instruments is recognized in Accumulated Other Comprehensive Income and is reclassified to income in the same period when a gain or loss related to the net investment is included in income. (4) As a result of the adoption of ASC 2016-01 we recorded a cumulative effect adjustment to our opening fiscal 2019 retained earnings balance that increased retained earnings and decreased accumulated other comprehensive income. See Note 1 titled, "Nature of Operations and Summary of Significant Accounting Policies" for further details.
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| Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amounts in Accumulated Other Comprehensive Income (Loss) are presented net of the related tax. Foreign Currency Translation is not adjusted for income taxes. Accumulated other comprehensive income (loss) shown in our Consolidated Statements of Shareholders' Equity and changes in our balances, net of tax, for the years ended March 31, 2020, 2019 and 2018 were as follows:
(1) Realized gain (loss) on available for sale securities is reported in the Interest income and miscellaneous expense line of the Consolidated Statements of Income for fiscal 2018. (2) Amortization (gain) of defined benefit plan items are reported in the Interest income and miscellaneous expense line of our Consolidated Statements of Income. (3) The effective portion of gain or loss on net debt designated as non-derivative net investment hedging instruments is recognized in Accumulated Other Comprehensive Income and is reclassified to income in the same period when a gain or loss related to the net investment is included in income. (4) As a result of the adoption of ASC 2016-01 we recorded a cumulative effect adjustment to our opening fiscal 2019 retained earnings balance that increased retained earnings and decreased accumulated other comprehensive income. See Note 1 titled, "Nature of Operations and Summary of Significant Accounting Policies" for further details.
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Inventories, Net (Tables) |
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| Notes To Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Inventory, Current | Inventories, net consisted of the following:
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Nature of Operations and Summary of Significant Accounting Policies (Tables) |
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| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Impact of ASC 2014-09 Adoption [Table Text Block] | Revenue Recognition and Associated Liabilities. We adopted Accounting Standards Update ("ASU") 2014-09 “Revenue from Contracts with Customers” and the subsequently issued amendments on April 1, 2018 using the modified retrospective approach to contracts that were not completed as of April 1, 2018. Under this standard, certain capital equipment contracts are comprised of a single performance obligation, resulting in the deferral of the corresponding capital equipment revenue and cost of revenues until installation is complete. Previously, these capital equipment revenues and cost of revenues were recognized based upon shipping terms. We recorded a cumulative effect adjustment in the beginning of fiscal 2019 to Retained earnings of $5,637, based on the terms and conditions for certain open capital equipment contracts as of March 31, 2018. Revenue is recognized when obligations under the terms of the contract are satisfied and control of the promised products or services have transferred to the Customer. Revenues are measured at the amount of consideration that we expect to be paid in exchange for the products or services. Product revenue is recognized when control passes to the Customer, which is generally based on contract or shipping terms. Service revenue is recognized when the Customer benefits from the service, which occurs either upon completion of the service or as it is provided to the Customer. Our Customers include end users as well as dealers and distributors who market and sell our products. Our revenue is not contingent upon resale by the dealer or distributor, and we have no further obligations related to bringing about resale. Our standard return and restocking fee policies are applied to sales of products. Shipping and handling costs charged to Customers are included in Product revenues. The associated expenses are treated as fulfillment costs and are included in Cost of revenues. Revenues are reported net of sales and value-added taxes collected from Customers. We have individual Customer contracts that offer discounted pricing. Dealers and distributors may be offered sales incentives in the form of rebates. We reduce revenue for discounts and estimated returns, rebates, and other similar allowances in the same period the related revenues are recorded. The reduction in revenue for these items is estimated based on historical experience and trend analysis to the extent that it is probable that a significant reversal of revenue will not occur. Estimated returns are recorded gross on the Consolidated Balance Sheets. In transactions that contain multiple performance obligations, such as when products, maintenance services, and other services are combined, we recognize revenue as each product is delivered or service is provided to the Customer. We allocate the total arrangement consideration to each performance obligation based on its relative standalone selling price, which is the price for the product or service when it is sold separately. Payment terms vary by the type and location of the Customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not significant. We do not evaluate whether the selling price contains a financing component for contracts that have a duration of less than one year. We do not capitalize sales commissions as substantially all of our sales commission programs have an amortization period of one year or less. Certain costs to fulfill a contract are capitalized and amortized over the term of the contract if they are recoverable, directly related to a contract and generate resources that we will use to fulfill the contract in the future. At March 31, 2020, assets related to costs to fulfill a contract were not material to our Consolidated Financial Statements. Refer to Note 11, titled "Business Segment Information" for disaggregation of revenue. Product Revenue Product revenues consist of revenues generated from sales of consumables and capital equipment. These contracts are primarily based on a Customer’s purchase order and may include a Distributor, Dealer or Group Purchasing Organization (GPO) agreement. We recognize revenue for sales of product when control passes to the Customer, which generally occurs either when the products are shipped or when they are received by the Customer. Revenue related to certain capital equipment products is deferred until installation is complete as the capital equipment and installation are highly integrated and form a single performance obligation. Service Revenue Within our Healthcare Products and Life Sciences segments, service revenues consist of revenue generated from parts and labor associated with the maintenance, repair and installation of capital equipment. These contracts are primarily based on a Customer’s purchase order and may include a Distributor, Dealer, or GPO agreement. For maintenance, repair and installation of capital equipment, revenue is recognized upon completion of the service. We also offer preventive maintenance and separately priced extended warranty agreements to our Customers, which require us to maintain and repair our products over the duration of the contract. Generally, these contract terms are cancelable without penalty and range from one to five years. Amounts received under these Customer contracts are initially recorded as a service liability and are recognized as service revenue ratably over the contract term using a time-based input measure. Within our Healthcare Specialty Services segment, revenues relate primarily to outsourced reprocessing services and instrument repairs. Contracts for outsourced reprocessing services are primarily based on an agreement with a Customer, ranging in length from several months to 15 years. Outsourced reprocessing services revenue is recognized ratably over the contract term using a time-based input measure, adjusted for volume and other performance metrics, to the extent that it is probable that a significant reversal of revenue will not occur. Contracts for instrument repairs are primarily based on a Customer’s purchase order, and the associated revenue is recognized upon completion of the repair. Within our Applied Sterilization Technologies segment, service revenues include contract sterilization and laboratory services. Sales contracts for contract sterilization and laboratory services are primarily based on a Customer’s purchase order and associated Customer agreement and revenues are generally recognized upon completion of the service. Contract Liabilities Payments received from Customers are based on invoices or billing schedules as established in contracts with Customers. Deferred revenue is recorded when payment is received in advance of performance under the contract. Deferred revenue is recognized as revenue upon completion of the performance obligation, which generally occurs within one year. During fiscal 2020, we recognized revenue of $48,602 that was included in our contract liability balance at the beginning of the period. During fiscal 2019, we recognized revenue of $30,169 that was included in our contract liability balance at the beginning of the period. Refer to Note 7, titled "Additional Consolidated Balance Sheet Information" for Deferred revenue balances. Service Liabilities Payments received in advance of performance for cancelable preventative maintenance and separately priced extended warranty contracts are recorded as service liabilities. Service liabilities are recognized as revenue as performance is rendered under the contract. Prior to the adoption of Accounting Standards Codification ("ASC") 606, these amounts were included in Deferred revenues. Refer to Note 7, titled "Additional Consolidated Balance Sheet Information" for Service liability balances. Remaining Performance Obligations Remaining performance obligations reflect only the performance obligations related to agreements for which we have a firm commitment from a Customer to purchase, and exclude variable consideration related to unsatisfied performance obligations. With regard to products, these remaining performance obligations include capital equipment and consumable orders which have not shipped. With regard to service, these remaining performance obligations primarily include installation, certification, and outsourced reprocessing services. As of March 31, 2020, the transaction price allocated to remaining performance obligations was approximately $940,000. We expect to recognize approximately 49% of the transaction price within one year and approximately 45% beyond one year. The remainder has yet to be scheduled for delivery.
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| Cash Flow, Supplemental Disclosures | Information supplementing our Consolidated Statements of Cash Flows is as follows:
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| Property, Plant and Equipment | We generally depreciate or deplete property, plant, and equipment over the useful lives presented in the following table:
Information related to the major categories of our depreciable assets is as follows:
(1) Land is not depreciated. Construction in progress is not depreciated until placed in service.
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Business Acquisitions and Divestitures Business Acquisitions and Divestitures (Notes) |
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| Business Combinations and Divestitures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination Disclosure [Text Block] | 18. BUSINESS ACQUISITIONS AND DIVESTITURES Fiscal 2020 Acquisitions During fiscal 2020, we completed several tuck-in acquisitions which continued to expand our product and service offerings in the Healthcare Products, Healthcare Specialty Services and Applied Sterilization Technologies segments. The aggregate purchase price associated with these transactions was approximately $120,537, net of cash acquired and including potential contingent consideration of $9,830 and deferred consideration of $893. Fiscal 2019 Acquisitions During fiscal 2019, we completed a minor purchase to expand our service offerings in the Applied Sterilization Technologies segment. The total purchase price was $13,313, and was financed with both cash on hand and with credit facility borrowings. Purchase price allocations will be finalized within a measurement period not to exceed one year from closing. Fiscal 2018 Acquisitions We completed several minor purchases that continued to expand our product and service offerings in the Healthcare Products, Healthcare Specialty Services and Applied Sterilization Technologies segments. The aggregate purchase price associated with these transactions was approximately $52,292, net of cash acquired and including contingent consideration of $5,018. The purchase price for the acquisitions was financed with both cash on hand and with credit facility borrowings. Fair Value of Assets Acquired and Liabilities Assumed The table below summarizes the allocation of the purchase price to the net assets acquired based on fair values at the acquisition dates for our fiscal 2020, 2019 and 2018 acquisitions.
(1) Purchase price allocation is still preliminary as of March 31, 2020, as valuations have not been finalized. Acquisition related transaction and integration costs totaled $8,225, $8,901, and $16,211 for the fiscal years ended March 31, 2020, 2019, and 2018, respectively. These costs are included in Selling, general, and administrative expenses in the Consolidated Statements of Income. Divestitures Fiscal 2020 During fiscal 2020, we sold the operations of our Healthcare Specialty Services business that were located in China. We recorded proceeds of $439, net of cash divested, and recognized a pre-tax loss on the sale of $2,365 in the selling, general and administrative expense line of the Consolidated Statements of Income. The business generated annual revenues of approximately $5,000. Fiscal 2018 Synergy Health Healthcare Consumable Solutions On November 20, 2017, we sold our Synergy Health Healthcare Consumable Solutions ("HCS") business to Vernacare. Annual revenues for the HCS business were approximately $40,000 and were included in the Healthcare Products segment. We recorded proceeds of $8,891, net of cash divested, including a working capital adjustment. We also recognized a pre-tax loss on the sale, subject to final working capital adjustments, of $12,972 in Selling, general, and administrative expense in the Consolidated Statement of Income. Loans Receivable In connection with an equity investment of $4,955, we agreed to provide a credit facility of up to approximately $10,000 for a term of up to seven years ending in 2025. The loan carries an interest rate of 4% compounded daily and interest is payable annually. Outstanding borrowings under the agreement totaled $7,084 at March 31, 2020 and $7,465 at March 31, 2019. In connection with the fiscal 2017 divestiture of Synergy Health Netherlands Linen Management Services, we entered into a loan agreement to provide financing of up to €15,000 for a term of up to 15 years. The loan carried an interest rate of 4% for the first four years and 12% thereafter. The loan was renegotiated during the third quarter of fiscal 2020. According to the new terms of the loan agreement, the outstanding balance at October 31, 2019, of €7,300, will be repaid in six equal annual installments beginning on October 18, 2022. The loan carries an interest rate of 4% for the first four years and 8% thereafter. Outstanding borrowings under the agreement totaled $8,072 (or €7,300) at March 31, 2020 and $8,494 (or €7,550) at March 31, 2019. Amounts for loan receivables as noted above are recorded in the "Other assets" line of our Consolidated balance sheets. Interest income is not material.
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Debt |
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| Notes To Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | 6. DEBT Indebtedness as of March 31, 2020 and 2019 was as follows:
On March 23, 2018, STERIS UK and certain of its subsidiaries entered into a Credit Agreement (the "Credit Agreement") with various financial institutions as lenders, and JPMorgan Chase Bank, N.A., as Administrative Agent. STERIS Ireland subsequently became a borrower and guarantor under the Credit Agreement. The Credit Agreement replaced a bank credit facility dated March 31, 2015. The Credit Agreement provides up to $1,000,000 of credit, in the form of a revolver facility, which may be utilized for revolving credit borrowings, swing line borrowings and letters of credit, with sublimits for swing line borrowings and letters of credit. The revolver facility may be increased in specified circumstances by up to $500,000. The Credit Agreement will mature on March 23, 2023, and all unpaid borrowings, together with accrued and unpaid interest thereon, are repayable on that date. The Credit Agreement contains leverage and interest coverage covenants. Borrowings may be taken in U.S. dollars, euros, and pounds sterling and certain other specified currencies and bear interest at our option based upon either the Base Rate or the Eurocurrency Rate, plus the Applicable Margin in effect from time to time under the Credit Agreement. The Applicable Margin is determined based on the ratio of Consolidated Total Debt to Consolidated EBITDA (as such terms are defined in the Credit Agreement). Interest on Base Rate Advances is payable quarterly in arrears and interest on Eurocurrency Rate Advances is payable at the end of the relevant interest period therefor, but in no event less frequently than every three months. Borrowings at closing were used to repay outstanding balances of debt outstanding under the former bank credit facility dated March 31, 2015 that was scheduled to mature on March 31, 2020 and for other general corporate purposes. The Credit Agreement was amended in March 2019, in connection with the Redomiciliation to permit the Redomiciliation. The amendments did not effect any material changes in the terms of the Credit Agreement regarding borrowings or the issuance of letters of credit. As of March 31, 2020 a total of $275,449 of Credit Agreement and Swing Line Facility borrowings were outstanding under the Credit Agreement, based on currency exchange rates as of March 31, 2020. Our outstanding Senior Notes at March 31, 2020 and 2019 were as follows:
On February 27, 2017, STERIS UK issued and sold an aggregate principal amount of $95,000, €99,000, and £75,000, of senior notes in a private placement to certain institutional investors in an offering that was exempt from the registration requirements of the Securities Act of 1933. These notes have maturities of between 10 years and 15 years from the issue date. The agreement governing these notes contains leverage and interest coverage covenants. On May 15, 2015, STERIS Corporation issued and sold $350,000 of senior notes, in a private placement to certain institutional investors in an offering that was exempt from the registration requirements of the Securities Act of 1933. These notes have maturities of 10 years to 15 years from the issue date. The agreement governing these notes contains leverage and interest coverage covenants. The agreements governing certain senior notes issued and sold in February 2013, December 2012, and August 2008, were amended and restated in their entirety on March 31, 2015. All of these notes were issued and sold in private placements to certain institutional investors in offerings that were exempt from the registration requirements of the Securities Act of 1933. The amended and restated agreements, which have been consolidated into a single agreement for the 2013 and 2012 notes, and a separate single agreement for the 2008 notes, contain leverage and interest coverage covenants. All of the note agreements were amended in March 2019, in connection with the Redomiciliation. The amendments waived certain repurchase rights of the note holders and increased the size of certain baskets to more closely align with Credit Agreement baskets. At March 31, 2020, we were in compliance with all financial covenants associated with our indebtedness. The combined annual aggregate amount of maturities of our outstanding debt by fiscal year is as follows:
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Contingencies |
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| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Loss Contingencies by Contingency [Text Block] | 10. COMMITMENTS AND CONTINGENCIES We are, and will likely continue to be, involved in a number of legal proceedings, government investigations, and claims, which we believe generally arise in the course of our business, given our size, history, complexity, and the nature of our business, products, Customers, regulatory environment, and industries in which we participate. These legal proceedings, investigations and claims generally involve a variety of legal theories and allegations, including, without limitation, personal injury (e.g., slip and falls, burns, vehicle accidents), product liability or regulation (e.g., based on product operation or claimed malfunction, failure to warn, failure to meet specification, or failure to comply with regulatory requirements), product exposure (e.g., claimed exposure to chemicals, asbestos, contaminants, radiation), property damage (e.g., claimed damage due to leaking equipment, fire, vehicles, chemicals), commercial claims (e.g., breach of contract, economic loss, warranty, misrepresentation), financial (e.g., taxes, reporting), employment (e.g., wrongful termination, discrimination, benefits matters), and other claims for damage and relief. We believe we have adequately reserved for our current litigation and claims that are probable and estimable, and further believe that the ultimate outcome of these pending lawsuits and claims will not have a material adverse effect on our consolidated financial position or results of operations taken as a whole. Due to their inherent uncertainty, however, there can be no assurance of the ultimate outcome or effect of current or future litigation, investigations, claims or other proceedings (including without limitation the matters discussed below). For certain types of claims, we presently maintain insurance coverage for personal injury and property damage and other liability coverages in amounts and with deductibles that we believe are prudent, but there can be no assurance that these coverages will be applicable or adequate to cover adverse outcomes of claims or legal proceedings against us. On May 31, 2012, our Albert Browne Limited subsidiary received a warning letter from the FDA regarding chemical indicators manufactured in the United Kingdom. These devices are intended for the monitoring of certain sterilization and other processes. The FDA warning letter stated that the agency had concerns regarding operational business processes. In the second half of calendar 2019, the FDA conducted a comprehensive inspection of the Albert Browne facility in question. In a May 12, 2020 email, the FDA provided the Company with a copy of the Inspection Report. In that same email the FDA advised the Company that the email would serve as a "No Action Indicated" notice and that it was finalizing a Warning Letter Closeout to be provided to the Company. These actions bring this matter to a favorable conclusion for the Company. Civil, criminal, regulatory or other proceedings involving our products or services could possibly result in judgments, settlements or administrative or judicial decrees requiring us, among other actions, to pay damages or fines or effect recalls, or be subject to other governmental, Customer or other third party claims or remedies, which could materially effect our business, performance, prospects, value, financial condition, and results of operations. For additional information regarding these matters, see the risks and uncertainties described under the title "product related regulations and claims" in Item 1A. of this Annual Report on Form 10-K. From time to time, STERIS is also involved in legal proceedings as a plaintiff involving contract, patent protection, and other claims asserted by us. Gains, if any, from these proceedings are recognized when they are realized. We are subject to taxation from United States federal, state and local, and foreign jurisdictions. Tax positions are settled primarily through the completion of audits within each individual jurisdiction or the closing of statutes of limitation. Changes in applicable tax law or other events may also require us to revise past estimates. We describe income taxes further in Note 8 to our consolidated financial statements titled, “Income Taxes” in this Annual Report on Form 10-K. Additional information regarding our contingencies is included in Item 7 of Part II titled, “Management’s Discussion and Analysis of Financial Conditions and Results of Operations under "Contingencies". As of March 31, 2020 and 2019, our commercial commitments totaled $80,230 and $73,765, respectively. Commercial commitments include standby letters of credit, letters of credit required as security under our self-insured risk retention policies, and other potential cash outflows resulting from an event that requires payment by us. Approximately $12,474 and $7,794 of the March 31, 2020 and 2019 totals, respectively, relate to letters of credit required as security under our self-insured risk retention policies. As of March 31, 2020, we had minimum purchase commitments with suppliers for raw material purchases totaling $63,054. As of March 31, 2020, we also had commitments of $91,077 for long term construction contracts. Leases We lease manufacturing, warehouse and office space, service facilities, vehicles, equipment and communication systems. Certain leases contain options that provide us with the ability to extend the lease term. Such options are included in the lease term when it is reasonably certain that the option will be exercised. We made an accounting policy election to not recognize lease assets or lease liabilities for leases with a lease term of twelve months or less. We determine if an agreement contains a lease and classify our leases as operating or finance at the lease commencement date. Finance leases are generally those leases for which we will pay substantially all the underlying asset’s fair value or will use the asset for all or a major part of its economic life, including circumstances in which we will ultimately own the asset. Lease assets arising from finance leases are included in property, plant and equipment, net and the liabilities are included in other liabilities. For finance leases, we recognize interest expense using the effective interest method and we recognize amortization expense on the lease asset over the shorter of the lease term or the useful life of the asset. Our finance leases are not material as of March 31, 2020 and for the twelve month period then ended. Operating lease assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. As most leases do not provide an implicit interest rate, we estimate an incremental borrowing rate to determine the present value of lease payments. Our estimated incremental borrowing rate reflects a secured rate based on recent debt issuances, our estimated credit rating, lease term, as well as publicly available data for instruments with similar characteristics. For operating leases, we recognize lease cost on a straight-line basis over the term of the lease. When accounting for leases, we combine payments for leased assets, related services and other components of a lease. The components of operating lease expense are as follows:
Supplemental cash flow information related to operating leases is as follows:
Maturities of lease liabilities at March 31, 2020 are as follows:
In the preceding table, the future minimum annual rentals payable under noncancelable leases denominated in foreign currencies have been calculated using March 31, 2020 foreign currency exchange rates. Supplemental information related to operating leases is as follows:
Prior to the adoption of ASU 2016-02, " Leases" (Topic 842) future minimum annual rentals payable under noncancelable operating lease agreements in excess of one year as of March 31, 2019 were as follows:
In the preceding table, the future minimum annual rentals payable under noncancelable leases denominated in foreign currencies have been calculated using March 31, 2019 foreign currency exchange rates.
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Benefit Plans (Details Textual) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
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| Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 27,818 | $ 25,935 | $ 24,037 |
| Defined Contribution Plan, Fair Value of Plan Assets | $ 668,960 | ||
| STERIS Corporation shares held in defined contribution plan | 555,080 | ||
| Fair value of STERIS Corporatio stock held in defined contribution plan | $ 77,695 | ||
| Defined Contribution Plan, Dividends Paid | 855 | 826 | $ 781 |
| Deferred Compensation Plan Assets | $ 1,273 | $ 1,400 | |
| Equity Securities [Member] | |||
| Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 75.00% | ||
| Debt Securities | |||
| Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 25.00% | ||
Accumulated Other Comprehensive Incom (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2017 |
|---|---|---|---|---|
| Equity [Abstract] | ||||
| Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (235,463) | $ (159,778) | $ 11,685 | $ (240,702) |
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
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| Share-based Compensation Arrangement by Share-based Payment Award [Line Item] | |||
| Remaining shares available for grant | 3,961,998 | ||
| Weighted-average assumptions used for options granted: | |||
| Risk-free interest rate | 2.26% | 2.64% | 2.01% |
| Expected life of options | 6 years 2 months 12 days | 6 years 2 months 12 days | 5 years 8 months 12 days |
| Exptected dividend yield of stock | 1.22% | 1.47% | 1.58% |
| Expected volatility of stock | 20.27% | 19.91% | 22.08% |
| Estimated forfeiture rate | 2.77% | 2.37% | 2.25% |
| Summary of share option activity: | |||
| Number of Options, Outstanding, Beginning of Period | 2,104,685 | ||
| Weighted Average Exercise Price, Outstanding, Beginning of Period | $ 72.82 | ||
| Number of Options, Granted | 345,138 | ||
| Weighted Average Exercise Price, Granted | $ 147.22 | ||
| Number of Options, Exercised | (613,086) | ||
| Weighted Average Exercise Price, Exercised | $ 57.29 | ||
| Number of Options, Forfeited | (40,611) | ||
| Weighted Average Exercise Price, Forfeited | $ 122.61 | ||
| Number of Options, Outstanding, End of Period | 1,796,126 | 2,104,685 | |
| Weighted Average Exercise Price, Outstanding, End of Period | $ 91.29 | $ 72.82 | |
| Average Remaining Contractual Term, Outstanding | 6 years 9 months 18 days | ||
| Aggregate Intrinsic Value, Outstanding | $ 89,800 | ||
| Number of Options, Exercisable | 922,708 | ||
| Weighted Average Exercise Price, Exercisable | $ 69.52 | ||
| Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 7 months 6 days | ||
| Aggregate Intrinsic Value, Exercisable | $ 65,136 | ||
| Non-vested stock options outstanding expected to vest | 857,860 | ||
| Common Stock, Fair Market Value Per Share | $ 139.97 | ||
| Total intrinsic value of stock options exercised | $ 57,683 | $ 25,371 | $ 16,096 |
| Net cash proceeds from the exercise of stock options | 34,731 | 13,308 | 11,093 |
| Tax benefit from stock option exercises | $ 16,440 | $ 8,306 | $ 6,581 |
| Weighted average grant date fair value of stock option grants, per share | $ 23.52 | $ 18.12 | $ 15.51 |
| Summary of non-vested restricted share activity: | |||
| Number of Restricted Shares, Non-vested at Beginning of Period | 33,219 | ||
| Number of Restricted Shares, Granted | 14,553 | ||
| Number of Restricted Shares, Vested | (14,999) | ||
| Number of Restricted Shares, Canceled | (1,879) | ||
| Number of Restricted Shares, Non-vested at End of Period | 30,894 | 33,219 | |
| Unrecognized compensation cost related to nonvested share-based compensation granted | $ 42,056 | ||
| Weighted average period for recognition of unrecognized compensation cost | 2 years 1 month 6 days | ||
| Stock Appreciation Rights (SARs) | |||
| Summary of non-vested restricted share activity: | |||
| FairValueOfOutstandingStockAppreciationRights | $ 544 | $ 889 | $ 1,437 |
| Restricted Stock | |||
| Summary of non-vested restricted share activity: | |||
| Number of Restricted Shares, Non-vested at Beginning of Period | 676,373 | ||
| Weighted-Average Grant Date Fair Value, Non-vested at Beginning of Period | $ 80.86 | ||
| Number of Restricted Shares, Granted | 156,901 | ||
| Weighted-Average Grant Date Fair Value, Granted | $ 135.86 | ||
| Number of Restricted Shares, Vested | (221,606) | ||
| Weighted-Average Grant Date Fair Value, Vested | $ 74.63 | ||
| Number of Restricted Shares, Canceled | (35,838) | ||
| Weighted-Average Grant Date Fair Value, Canceled | $ 93.56 | ||
| Number of Restricted Shares, Non-vested at End of Period | 575,830 | 676,373 | |
| Weighted-Average Grant Date Fair Value, Non-vested at End of Period | $ 98.07 | $ 80.86 | |
| Fair Value, Share-based Payment Awards, Other than Options | $ 17,657 | ||
Benefit Plans (Effect of one-percentage-point change in assumed healthcare cost trend rates) (Details) $ in Thousands |
12 Months Ended |
|---|---|
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Mar. 31, 2020
USD ($)
| |
| Postemployment Benefits [Abstract] | |
| Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | $ 0 |
| Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | 0 |
| Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 7 |
| Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ (6) |
Benefit Plans (Components of the annual net periodic benefit cost) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
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| Defined Benefit Plan Disclosure [Line Items] | |||
| Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | $ 14,405 | ||
| Other Postretirement Benefit Plans, Defined Benefit | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 181 | $ (106) | |
| Defined Benefit Plan, Service Cost | 0 | 0 | $ 0 |
| Defined Benefit Plan, Interest Cost | 409 | 457 | 519 |
| Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0 | 0 | 0 |
| Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (3,263) | (3,263) | (3,263) |
| Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (2,372) | (2,254) | (2,096) |
| Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 482 | 552 | 648 |
| Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | (181) | 106 | 501 |
| Defined Benefit Plan, Amortization of Net Prior Service Cost (Credit) | 3,263 | 3,263 | 3,263 |
| Defined Benefit Plan, Amortization of Net Gains (Losses) | (482) | (552) | (648) |
| Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 2,600 | 2,817 | 3,116 |
| Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Gain (Loss), before Tax | 228 | 563 | 1,020 |
| Other Defined Benefit Pension Plans [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (3,736) | (4,402) | |
| Defined Benefit Plan, Service Cost | 1,380 | 2,394 | 2,402 |
| Defined Benefit Plan, Interest Cost | 2,876 | 3,139 | 3,262 |
| Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (4,735) | (4,930) | (4,835) |
| Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 69 | 51 | 0 |
| Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (401) | 1,128 | 955 |
| Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 9 | 474 | 126 |
| Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | 890 | (6,545) | (697) |
| Defined Benefit Plan, Amortization of Net Prior Service Cost (Credit) | (78) | 781 | 0 |
| Defined Benefit Plan, Amortization of Net Gains (Losses) | 0 | (468) | (126) |
| Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 812 | (6,232) | (823) |
| Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Gain (Loss), before Tax | 411 | $ (5,104) | $ 132 |
| Amortization of prior service cost next fiscal year | 69 | ||
| Other Pension Plan [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Amortization of prior service cost next fiscal year | $ (3,263) | ||
Contingencies (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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| Loss Contingencies [Line Items] | ||
| Operating Lease, Weighted Average Remaining Lease Term | 11 years 6 months | |
| Operating Lease, Payments | $ 27,613 | |
| Fixed Operating Lease Expense | 28,252 | |
| Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 24,008 | |
| Commitments and Contingencies | ||
| Letters of credit as security for self insurance risk and retention policies | 12,474 | 7,794 |
| Purchase Commitment, Remaining Minimum Amount Committed | 63,054 | |
| Operating Leases, Future Minimum Payments, Due Thereafter | 93,939 | |
| Operating Leases, Future Minimum Payments Due | 162,360 | |
| Variable Operating Lease Expense | 5,449 | |
| Operating Lease, Expense | 33,701 | |
| Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 44,636 | |
| Lessee, Operating Lease, Liability, Payments, Due Year Two | 25,302 | |
| Lessee, Operating Lease, Liability, Payments, Due Year Two | 21,064 | |
| Lessee, Operating Lease, Liability, Payments, Due Year Three | 17,271 | |
| Lessee, Operating Lease, Liability, Payments, Due Year Five | 14,045 | |
| Lessee, Operating Lease, Liability, Payments, Due after Year Five | 96,249 | |
| Lessee, Operating Lease, Liability, Payments, Due | 173,931 | |
| Lessee, Operating Lease, Liability, Undiscounted Excess Amount | $ 40,008 | |
| Operating Lease, Weighted Average Discount Rate, Percent | 4.40% | |
| Operating Lease, Liability | $ 133,923 | |
| Operating Leases, Future Minimum Payments Receivable, in Two Years | 18,567 | |
| Operating Leases, Future Minimum Payments Receivable, in Three Years | 13,917 | |
| Operating Leases, Future Minimum Payments Receivable, in Four Years | 11,929 | |
| Commercial commitments [Member] | ||
| Loss Contingencies [Line Items] | ||
| Commitments and Contingencies | 80,230 | $ 73,765 |
| Long term Construction Contracts [Member] [Member] | ||
| Loss Contingencies [Line Items] | ||
| Commitments and Contingencies | $ 91,077 | |
Business Acquisitions and Divestitures Synergy Acquisition (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|---|---|---|---|
| Business Acquisition [Line Items] | |||
| Goodwill | $ 2,356,085 | $ 2,322,928 | $ 2,433,784 |
Goodwill and Intangible Assets Other Intangible Assets (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
|---|---|---|---|
Dec. 31, 2018 |
Mar. 31, 2020 |
Mar. 31, 2019 |
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| Summary of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
| Asset Impairment Charges | $ 16,249 | ||
| Finite-Lived Intangible Assets, Gross | $ 995,252 | $ 973,357 | |
| Finite-Lived Intangible Assets, Accumulated Amortization | 429,779 | 368,743 | |
| Customer Relationships [Member] | |||
| Summary of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
| Finite-Lived Intangible Assets, Gross | 614,162 | 623,774 | |
| Finite-Lived Intangible Assets, Accumulated Amortization | 227,581 | 189,752 | |
| Noncompete Agreements [Member] | |||
| Summary of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
| Finite-Lived Intangible Assets, Gross | 4,646 | 4,693 | |
| Finite-Lived Intangible Assets, Accumulated Amortization | 4,012 | 3,945 | |
| Patented Technology [Member] | |||
| Summary of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
| Finite-Lived Intangible Assets, Gross | 259,101 | 226,520 | |
| Finite-Lived Intangible Assets, Accumulated Amortization | 145,457 | 126,149 | |
| Trademarks and Trade Names [Member] | |||
| Summary of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
| Finite-Lived Intangible Assets, Gross | 62,543 | 63,570 | |
| Finite-Lived Intangible Assets, Accumulated Amortization | 39,942 | 38,850 | |
| supplier relationships [Member] | |||
| Summary of Finite-Lived and Indefinite-Lived Intangible Assets [Line Items] | |||
| Finite-Lived Intangible Assets, Gross | 54,800 | 54,800 | |
| Finite-Lived Intangible Assets, Accumulated Amortization | $ 12,787 | $ 10,047 |
Property, Plant and Equipment (Tables) |
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| Notes To Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Change in Asset Retirement Obligation [Table Text Block] | The following table summarizes the activity in the liability for asset retirement obligations.
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| Property, Plant and Equipment | We generally depreciate or deplete property, plant, and equipment over the useful lives presented in the following table:
Information related to the major categories of our depreciable assets is as follows:
(1) Land is not depreciated. Construction in progress is not depreciated until placed in service.
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Restructuring (Tables) |
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| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Costs [Table Text Block] | The following table summarizes our total pre-tax restructuring expenses for fiscal 2020 and 2019:
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| Schedule of Restructuring Reserve by Type of Cost [Table Text Block] |
(1) Certain amounts reported include the impact of foreign currency movements relative to the U.S. dollar.
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Benefit Plans |
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| Notes To Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Benefit Plans | 9. BENEFIT PLANS In the United States, we sponsor an unfunded post-retirement welfare benefits plan for two groups of United States retirees. Benefits under this plan include retiree life insurance and retiree medical insurance, including prescription drug coverage. During the second quarter of fiscal 2009, we amended our United States post-retirement welfare benefits plan, reducing the benefits to be provided to retirees under the plan and increasing their share of the costs. The amendments resulted in a decrease of $46,001 in the accumulated post-retirement benefit obligation. The impact of this change was recognized in our Consolidated Balance Sheets in fiscal 2009 and is being amortized as a component of the annual net periodic benefit cost over a period of approximately thirteen years. We sponsor several defined benefit pension schemes outside the United States: two in the UK, one in the Netherlands, two in Germany, and one in Switzerland. The Synergy Health plc Retirement Benefit Scheme is a defined benefit (final salary) funded pension scheme. In previous years, Synergy sponsored a funded defined benefit arrangement in the Netherlands. This was a separate fund holding the pension scheme assets to meet long-term pension liabilities for past and present employees. Accrual of benefits ceased under the scheme effective January 1, 2013. The Synergy Radeberg and Synergy Allershausen Schemes are unfunded defined pension schemes and are closed to new entrants. The Synergy Daniken Scheme is a defined benefit funded pension scheme. As a result of our fiscal 2018 acquisition of Harwell Dosimeters Ltd, we also sponsor in the Harwell Dosimeters Ltd Retirement Benefits Scheme which is a defined benefit funded pension scheme. We recognize the funded status of our defined benefit pension and post-retirement benefit plans in our Consolidated Balance Sheets, with a corresponding adjustment to accumulated other comprehensive income, net of tax. The funded status is measured as of March 31 each year and is calculated as the difference between the fair value of plan assets and the benefit obligation (which is the projected benefit obligation for pension plans and the accumulated post-retirement benefit obligation for post-retirement benefit plans). Accumulated comprehensive income (loss) represents the net unrecognized actuarial losses and unrecognized prior service cost. These amounts will be recognized in net periodic benefit cost as they are amortized. We will recognize future changes to the funded status of these plans in the year the change occurs, through other comprehensive income. Obligations and Funded Status. The following table reconciles the funded status of the defined benefit pension plans and the other post-retirement benefits plan to the amounts recorded on our Consolidated Balance Sheets at March 31, 2020 and 2019, respectively. Benefit obligation balances presented in the following table reflect the projected benefit obligations for our defined benefit pension plans and the accumulated other post-retirement benefit obligation for our post-retirement benefits plan. The measurement date of our defined benefit pension plans and other post-retirement benefits plan is March 31, for both periods presented.
Amounts recognized in the consolidated balance sheets consist of the following:
The pre-tax amount of unrecognized actuarial net loss and unamortized prior service cost included in accumulated other comprehensive (loss) income at March 31, 2020, was approximately $14,405 and $7,463, respectively. During fiscal 2021, we will amortize the following pre-tax amounts from accumulated other comprehensive income:
Defined benefit plans with an accumulated benefit obligation and projected benefit obligation exceeding the fair value of plan assets had the following plan assets and obligations at March 31, 2020 and 2019:
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income. Components of the annual net periodic benefit cost of our defined benefit pension plans and our other post-retirement benefits plan were as follows:
Assumptions Used in Calculating Benefit Obligations and Net Periodic Benefit Cost. The following table presents significant assumptions used to determine the projected benefit obligations at March 31:
The following table presents significant assumptions used to determine the net periodic benefit costs for the years ended March 31:
The net periodic benefit cost and the actuarial present value of projected benefit obligations are based upon assumptions that we review on an annual basis. These assumptions may be revised annually based upon an evaluation of long-term trends, as well as market conditions that may have an impact on the cost of providing benefits. We develop our expected long-term rate of return on plan assets assumptions by evaluating input from third-party professional advisers, taking into consideration the asset allocation of the portfolios and the long-term asset class return expectations. We develop our discount rate assumptions by evaluating input from third-party professional advisers, taking into consideration the current yield on country specific investment grade long-term bonds which provide for similar cash flow streams as our projected obligations. We have made assumptions regarding healthcare costs in computing our other post-retirement benefit obligation. The assumed rates of increase generally decline ratably over a five-year period from the assumed current year healthcare cost trend rate to the assumed long-term healthcare cost trend rate noted below.
To determine the healthcare cost trend rates, we evaluate a combination of information, including ongoing claims cost monitoring, annual statistical analyses of claims data, reconciliation of forecasted claims against actual claims, review of trend assumptions of other plan sponsors and national health trends, and adjustments for plan design changes, workforce changes, and changes in plan participant behavior. A one-percentage-point change in assumed healthcare cost trend rates (including medical, prescription drug, and long-term rates) would have had the following effect on our other post-retirement benefit obligation at March 31, 2020:
Plan Assets. The investment policies for our plans are generally established by the local pension plan trustees and seek to maintain the plans' ability to meet liabilities and to comply with local minimum funding requirements. Plan assets are invested in diversified portfolios that provide adequate levels of return at an acceptable level of risk. The investment policies are reviewed at least annually and revised, as deemed appropriate to ensure that the objectives are being met. At March 31, 2020, the targeted allocation for the plans were approximately 75% equity investments and 25% fixed income investments. Financial instruments included in pension plan assets are categorized into three tiers. These tiers include a fair value hierarchy of three levels, based on the degree of subjectivity inherent in the valuation methodology as follows: Level 1 - Quoted prices for identical assets in active markets. Level 2 - Quoted prices for similar assets in active markets with inputs that are observable, either directly or indirectly. Level 3 - Unobservable prices or inputs in which little or no market data exists. The fair value of our pension benefits plan assets at March 31, 2020 and 2019 by asset category is as follows:
Collective investment trusts are measured at fair value using the net asset value per share practical expedient. These trusts have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the total plan assets. The fair value measurement of plan assets using significant unobservable inputs (Level 3) changed during fiscal year 2020 due to the following:
Cash Flows. We contribute amounts to our defined benefit pension plans at least equal to the minimum amounts required by applicable employee benefit laws and local tax laws. We expect to make contributions of approximately $3,839 during fiscal 2021. Based upon the actuarial assumptions utilized to develop our benefit obligations at March 31, 2020, the following benefit payments are expected to be made to plan participants:
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Act”) provides a prescription drug benefit for Medicare beneficiaries, a benefit we provide to Medicare eligible retirees covered by our post-retirement benefits plan. We have concluded that the prescription drug benefit provided in our post-retirement benefit plan is considered to be actuarially equivalent to the benefit provided under the Act and thus qualifies for the subsidy under the Act. Benefits are subject to a per capita per month cost cap and any costs above the cap become the responsibility of the retiree. Under the plan, the subsidy is applied to reduce the retiree responsibility. As a result, the expected future subsidy no longer reduces our accumulated post-retirement benefit obligation and net periodic benefit cost. We collected subsidies totaling approximately $708 and $706, during fiscal 2020 and fiscal 2019, respectively, which reduced the retiree responsibility for costs in excess of the caps established in the post-retirement benefit plan. Defined Contribution Plans. We maintain a 401(k) defined contribution plan for eligible U.S. employees, a 401(k) defined contribution plan for eligible Puerto Rico employees and similar savings plans for certain employees in Canada, United Kingdom, Ireland, and Finland. We provide a match on a specified portion of an employee’s contribution. The U.S. plan assets are held in trust and invested as directed by the plan participants. The Canadian plan assets are held by insurance companies. The aggregate fair value of the U.S. plan assets was $668,960 at March 31, 2020. At March 31, 2020, the U.S. plan held 555,080 STERIS ordinary shares with a fair value of $77,695. We paid dividends of $855, $826, and $781 to the plan and participants on STERIS shares held by the plan for the years ended March 31, 2020, 2019, and 2018, respectively. We contributed approximately $27,818, $25,935, and $24,037, to the defined contribution plans for the years ended March 31, 2020, 2019, and 2018, respectively. We also maintain a domestic non-qualified deferred compensation plan covering certain employees, which formerly allowed for the deferral of compensation for an employee-specified term or until retirement or termination. There have been no employee contributions made to this plan since fiscal 2012. The Plan was amended in fiscal 2012 to disallow deferrals of salary payable in 2012 and subsequent calendar years and of commissions and other incentive compensation payable in respect of the 2013 and subsequent fiscal years. We hold investments in mutual funds to satisfy future obligations of the plan. We account for these assets as available-for-sale securities and they are included in “Other assets” on our accompanying Consolidated Balance Sheets, with a corresponding liability for the plan’s obligation recorded in “Accrued expenses and other.” The aggregate value of the assets was $1,273 and $1,400 at March 31, 2020 and March 31, 2019, respectively. Realized gains and losses on these investments are recorded in “Interest and miscellaneous income” within “Non-operating expenses” on our accompanying Consolidated Statements of Income. Changes in the fair value of the assets are recorded in other comprehensive income on our accompanying balance sheets.
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Restructuring (Notes) |
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities Disclosure [Text Block] | 2. RESTRUCTURING Fiscal 2019 Restructuring Plan. During the third quarter of fiscal 2019, we adopted and announced a targeted restructuring plan (the "Fiscal 2019 Restructuring Plan"), which included the closure of two manufacturing facilities, one in Brazil and one in England, as well as other actions including the rationalization of certain products. Fewer than 200 positions were eliminated. The Company has relocated the production of certain impacted products to other existing manufacturing operations during fiscal 2020. These restructuring actions were designed to enhance profitability and improve efficiency. Since inception of the Fiscal 2019 Restructuring Plan we have incurred pre-tax expenses totaling $43,851 related to these restructuring actions, of which $31,660 was recorded as restructuring expenses and $12,191 was recorded in cost of revenues, with a total of $31,162, $2,518, $668, and $7,798 related to the Healthcare Products, Healthcare Specialty Services, Life Sciences, and Applied Sterilization Technologies segments, respectively. Corporate related restructuring charges were $1,705. Additional restructuring expenses related to this plan are not expected to be material to our results of operations. The following table summarizes our total pre-tax restructuring expenses for fiscal 2020 and 2019:
Liabilities related to restructuring activities are recorded as current liabilities on the accompanying Consolidated Balance Sheets within “Accrued payroll and other related liabilities” and “Accrued expenses and other.” The following tables summarize our restructuring liability balances:
(1) Certain amounts reported include the impact of foreign currency movements relative to the U.S. dollar.
(1) Certain amounts reported include the impact of foreign currency movements relative to the U.S. dollar.
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Property, Plant and Equipment |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes To Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment | Information related to the major categories of our depreciable assets is as follows:
(1) Land is not depreciated. Construction in progress is not depreciated until placed in service. Depreciation and depletion expense were $122,707, $127,174 and $108,137, for the years ended March 31, 2020, 2019, and 2018, respectively. Asset Retirement Obligations We provide contract sterilization services including Gamma irradiation which utilizes cobalt-60 in the form of cobalt pencils. We have incurred asset retirement obligations (ARO) associated with the future disposal of these assets once depleted. Recognition of ARO includes: the present value of a liability and offsetting asset, the subsequent accretion of that liability and depletion of the asset, and the periodic review of the ARO liability estimates and discount rates used in the analysis. The following table summarizes the activity in the liability for asset retirement obligations.
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Financial and Other Guarantees (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2017 |
|
| Standard and Extended Product Warranty Accrual | $ 7,381 | $ 7,194 | $ 6,872 | $ 6,861 |
| Standard and Extended Product Warranty Accrual, Increase for Warranties Issued | 12,311 | 11,177 | 12,305 | |
| Standard Product Warranty Accrual, Decrease for Payments | $ (12,124) | $ (10,855) | $ (12,294) | |
Benefit Plans (Targeted asset allocation of plan assets and the actual allocation of plan assets) (Details) |
Mar. 31, 2020 |
|---|---|
| Equity Securities | |
| Defined Benefit Plan Disclosure [Line Items] | |
| Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 75.00% |
| Debt Securities | |
| Defined Benefit Plan Disclosure [Line Items] | |
| Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 25.00% |
Benefit Plans (Assumptions used in calculating benefit obligations and net periodic benefit cost) (Details) |
12 Months Ended | ||
|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
| Synergy Health PLC Plan [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.40% | 2.50% | |
| Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 4.80% | 5.02% | 4.97% |
| Isotron [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 1.60% | 1.20% | |
| Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 1.20% | 1.60% | 1.60% |
| Daniken [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 0.20% | 0.85% | |
| Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 0.65% | 1.20% | 1.40% |
| Radeberg [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 1.60% | 1.60% | |
| Allershausen [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 0.50% | 1.60% | |
| Harwell Dosimeters [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.45% | 2.35% | |
| Other Pension Plans, Defined Benefit [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.00% | 3.50% | |
Business Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Dec. 31, 2018 |
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Asset Impairment Charges | $ 16,249 | ||||||||||||||||||||||||||||||
| amortization of inventory and property step up to fair value | [1] | $ 2,392 | $ 2,440 | $ 1,599 | |||||||||||||||||||||||||||
| amortization and impairment of acquired intangible assets | [1] | 71,675 | 86,878 | 67,793 | |||||||||||||||||||||||||||
| Business Combination, Acquisition Related Costs | [2] | 8,225 | 8,901 | 16,211 | |||||||||||||||||||||||||||
| loss (gain) on fair value contingent consideration adjustments | [1] | (842) | (593) | ||||||||||||||||||||||||||||
| Gain (Loss) on Disposition of Business | 1,770 | (1,370) | [1] | 14,547 | [1] | ||||||||||||||||||||||||||
| Impact of TCJA on Operating Income | 0 | [3] | 10,264 | ||||||||||||||||||||||||||||
| COVID-19 incremental costs | 749 | [4] | 0 | 0 | |||||||||||||||||||||||||||
| redomiciliation costs | [5] | 3,699 | 8,783 | 0 | |||||||||||||||||||||||||||
| Restructuring expenses | [6] | 3,143 | 40,708 | 103 | |||||||||||||||||||||||||||
| Assets | $ 5,425,582 | $ 5,073,071 | 5,425,582 | 5,073,071 | |||||||||||||||||||||||||||
| Payments to Acquire Productive Assets | 214,516 | 189,715 | 165,457 | ||||||||||||||||||||||||||||
| Depreciation, Depletion and Amortization | 197,235 | 225,921 | 178,332 | ||||||||||||||||||||||||||||
| Property, Plant and Equipment, Net | 1,111,855 | 1,031,582 | 1,111,855 | 1,031,582 | |||||||||||||||||||||||||||
| Revenues | 822,991 | $ 774,261 | $ 736,840 | $ 696,803 | 768,213 | $ 696,238 | $ 678,961 | $ 638,758 | 3,030,895 | 2,782,170 | 2,619,996 | ||||||||||||||||||||
| Operating Income (Loss) | 536,973 | 411,465 | 399,883 | ||||||||||||||||||||||||||||
| Applied Sterilization Technologies [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Assets | 2,720,205 | 2,655,870 | 2,720,205 | 2,655,870 | |||||||||||||||||||||||||||
| Payments to Acquire Productive Assets | 129,868 | 100,077 | 96,193 | ||||||||||||||||||||||||||||
| Depreciation, Depletion and Amortization | 105,042 | [7] | 111,265 | [7] | 97,038 | ||||||||||||||||||||||||||
| Revenues | 627,147 | 555,127 | 513,287 | ||||||||||||||||||||||||||||
| Operating Income (Loss) | 270,917 | 221,828 | 196,297 | ||||||||||||||||||||||||||||
| Life Science Member [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Revenues | 416,939 | 378,558 | 361,590 | ||||||||||||||||||||||||||||
| Operating Income (Loss) | 144,088 | 132,129 | 123,889 | ||||||||||||||||||||||||||||
| Life Science Member [Member] | Consumable revenues [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Revenues | 185,904 | 161,780 | 150,656 | ||||||||||||||||||||||||||||
| Life Science Member [Member] | Capital equipment revenues [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Revenues | 112,747 | 102,714 | 100,555 | ||||||||||||||||||||||||||||
| Life Science Member [Member] | Service revenues [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Revenues | 118,288 | 114,064 | 110,379 | ||||||||||||||||||||||||||||
| OperatingSegmentAllExceptCorpandOther [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Revenues | 3,030,895 | 2,782,170 | 2,619,996 | ||||||||||||||||||||||||||||
| Operating Income (Loss) | 835,641 | 741,863 | 672,806 | ||||||||||||||||||||||||||||
| OperatingSegmentCorpandOther [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Operating Income (Loss) | (207,015) | (184,900) | (162,999) | ||||||||||||||||||||||||||||
| OperatingSegmentAll [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Revenues | 3,030,895 | 2,782,170 | 2,619,996 | ||||||||||||||||||||||||||||
| Operating Income (Loss) | 628,626 | 556,963 | 509,807 | ||||||||||||||||||||||||||||
| Healthcare and Life Sciences [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Assets | 1,809,636 | 1,611,852 | 1,809,636 | 1,611,852 | |||||||||||||||||||||||||||
| Payments to Acquire Productive Assets | 44,029 | 49,688 | 52,767 | ||||||||||||||||||||||||||||
| Depreciation, Depletion and Amortization | 59,150 | [7] | 81,264 | [7],[8] | 52,025 | ||||||||||||||||||||||||||
| Healthcare Specialty Services [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Assets | 895,741 | 805,349 | 895,741 | 805,349 | |||||||||||||||||||||||||||
| Payments to Acquire Productive Assets | 40,619 | 39,950 | 16,497 | ||||||||||||||||||||||||||||
| Depreciation, Depletion and Amortization | 33,043 | 33,392 | 29,269 | ||||||||||||||||||||||||||||
| Revenues | 563,611 | 510,057 | 469,065 | ||||||||||||||||||||||||||||
| Operating Income (Loss) | 64,217 | 64,222 | 58,458 | ||||||||||||||||||||||||||||
| Healthcare Products [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Revenues | 1,423,198 | 1,338,428 | 1,276,054 | ||||||||||||||||||||||||||||
| Operating Income (Loss) | 356,419 | 323,684 | 294,162 | ||||||||||||||||||||||||||||
| Healthcare Products [Member] | Consumable revenues [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Revenues | 454,518 | 414,969 | 412,495 | ||||||||||||||||||||||||||||
| Healthcare Products [Member] | Capital equipment revenues [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Revenues | 592,436 | 568,811 | 527,402 | ||||||||||||||||||||||||||||
| Healthcare Products [Member] | Service revenues [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Revenues | 376,244 | 354,648 | 336,157 | ||||||||||||||||||||||||||||
| IRELAND | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Property, Plant and Equipment, Net | 47,459 | 41,137 | 47,459 | 41,137 | |||||||||||||||||||||||||||
| Revenues | 63,821 | 56,784 | 48,246 | ||||||||||||||||||||||||||||
| UNITED STATES | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Property, Plant and Equipment, Net | 632,333 | 577,113 | 632,333 | 577,113 | |||||||||||||||||||||||||||
| Revenues | 2,211,722 | 1,976,814 | 1,836,414 | ||||||||||||||||||||||||||||
| Other foreign locations [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Revenues | 755,352 | 748,572 | $ 735,336 | ||||||||||||||||||||||||||||
| Other Foreign Entities [Member] | |||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||
| Property, Plant and Equipment, Net | $ 432,063 | $ 413,332 | $ 432,063 | $ 413,332 | |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||
Benefit Plans Benefit Plans (Rollforward of Level 3 assets) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
| Defined Benefit Plan Disclosure [Line Items] | |||
| Other Investments | $ 4,345 | $ 5,089 | $ 5,484 |
| Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Period Increase (Decrease) | 62 | 29 | |
| Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | (142) | (292) | |
| Fair Value, Inputs, Level 3 [Member] | |||
| Defined Benefit Plan Disclosure [Line Items] | |||
| Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Assets Transferred into (out of) Level 3 | $ (664) | $ (132) | |
Reclassifications out of AOCI (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
Mar. 31, 2017 |
||||||||||||
| Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (235,463) | $ (159,778) | $ 11,685 | $ (240,702) | |||||||||||
| Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 71,571 | 168,111 | (254,394) | ||||||||||||
| Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (4,114) | (1,382) | (2,007) | ||||||||||||
| Total other comprehensive (loss) income attributable to shareholders | 75,685 | 169,493 | (252,387) | ||||||||||||
| New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (5,637) | ||||||||||||||
| Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||||||||||||||
| AOCI, Debt Securities, Available-for-sale, Adjustment, after Tax | 0 | 0 | 1,970 | 178 | [1] | ||||||||||
| Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 0 | 0 | 1,703 | [1] | |||||||||||
| Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | (89) | [1] | |||||||||||
| Total other comprehensive (loss) income attributable to shareholders | 0 | 0 | 1,792 | ||||||||||||
| Accumulated Defined Benefit Plans Adjustment [Member] | |||||||||||||||
| Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (6,813) | (4,204) | [2] | (6,742) | [2] | (2,355) | [2] | ||||||||
| Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | [2] | 1,505 | 3,920 | (2,291) | |||||||||||
| Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [2] | 4,114 | 1,382 | 2,096 | |||||||||||
| Total other comprehensive (loss) income attributable to shareholders | (2,609) | 2,538 | (4,387) | ||||||||||||
| Accumulated Translation Adjustment [Member] | |||||||||||||||
| Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (228,650) | (155,574) | [3] | 16,457 | [3] | $ (238,525) | [3] | ||||||||
| Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | [3] | (73,076) | (172,031) | 254,982 | |||||||||||
| Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [3] | 0 | 0 | 0 | |||||||||||
| Total other comprehensive (loss) income attributable to shareholders | $ (73,076) | (172,031) | $ 254,982 | ||||||||||||
| Accounting Standards Update 2016-01 [Member] | |||||||||||||||
| New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | [4] | $ (1,970) | |||||||||||||
| |||||||||||||||
Business Acquisitions and Divestitures Business Acquisitions and Divestitures Narrative (Details) € in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Mar. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
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, 2020
USD ($)
|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
Mar. 31, 2020
EUR (€)
|
Oct. 31, 2019
EUR (€)
|
Mar. 31, 2019
EUR (€)
|
Mar. 31, 2017
EUR (€)
|
|||||||
| Business Acquisition [Line Items] | |||||||||||||||||||||
| Business Combination, Contingent Consideration, Liability | $ 15,988 | $ 5,950 | $ 15,988 | $ 5,950 | $ 8,068 | ||||||||||||||||
| Deferred consideration business acquisition | 893 | 893 | |||||||||||||||||||
| Amortization of Intangible Assets | 74,528 | 98,747 | 70,195 | ||||||||||||||||||
| Revenues | 822,991 | $ 774,261 | $ 736,840 | $ 696,803 | 768,213 | $ 696,238 | $ 678,961 | $ 638,758 | 3,030,895 | 2,782,170 | 2,619,996 | ||||||||||
| Business Combination, Acquisition Related Costs | [1] | $ 8,225 | 8,901 | 16,211 | |||||||||||||||||
| Document Period End Date | Mar. 31, 2020 | ||||||||||||||||||||
| Operating Income (Loss) | $ 536,973 | 411,465 | 399,883 | ||||||||||||||||||
| Proceeds from Divestiture of Businesses | 439 | 2,478 | 8,888 | ||||||||||||||||||
| Gain (Loss) on Disposition of Business | 1,770 | (1,370) | [2] | 14,547 | [2] | ||||||||||||||||
| Interest rate on loan receivable | 4.00% | ||||||||||||||||||||
| Investment Owned, at Cost | $ 4,955 | ||||||||||||||||||||
| Line of Credit Provided to Investee | $ 10,000 | ||||||||||||||||||||
| Series of Individually Immaterial Business Acquisitions [Member] | |||||||||||||||||||||
| Business Acquisition [Line Items] | |||||||||||||||||||||
| Business Combination, Contingent Consideration, Liability | 9,830 | 9,830 | 5,018 | ||||||||||||||||||
| Approximate purchase price of entity | 120,537 | 13,313 | 120,537 | 13,313 | 52,292 | ||||||||||||||||
| HCS China Divestiture [Domain] | |||||||||||||||||||||
| Business Acquisition [Line Items] | |||||||||||||||||||||
| Revenues | 5,000 | ||||||||||||||||||||
| Dutch Linen Loan [Domain] | |||||||||||||||||||||
| Business Acquisition [Line Items] | |||||||||||||||||||||
| Other Loan Receivable | € | € 15,000 | ||||||||||||||||||||
| Financing Receivable, after Allowance for Credit Loss | 8,072 | 8,494 | 8,072 | 8,494 | € 7,300 | € 7,550 | |||||||||||||||
| Other Receivables | € | € 7,300 | ||||||||||||||||||||
| Equity Investee Loan [Domain] | |||||||||||||||||||||
| Business Acquisition [Line Items] | |||||||||||||||||||||
| Interest Rate First Four Years | 7 years | ||||||||||||||||||||
| Financing Receivable, after Allowance for Credit Loss | $ 7,084 | $ 7,465 | 7,084 | $ 7,465 | |||||||||||||||||
| Years 5-6,8% Int Rate [Member] [Member] | |||||||||||||||||||||
| Business Acquisition [Line Items] | |||||||||||||||||||||
| Interest rate on loan receivable | 8.00% | ||||||||||||||||||||
| Years 1-4, 4% Int Rate [Member] | |||||||||||||||||||||
| Business Acquisition [Line Items] | |||||||||||||||||||||
| Interest rate on loan receivable | 4.00% | 4.00% | |||||||||||||||||||
| Years 5-15, 12% Int Rate [Member] | |||||||||||||||||||||
| Business Acquisition [Line Items] | |||||||||||||||||||||
| Interest rate on loan receivable | 12.00% | ||||||||||||||||||||
| China HCS [Member] | |||||||||||||||||||||
| Business Acquisition [Line Items] | |||||||||||||||||||||
| Gain (Loss) on Disposition of Business | $ 2,365 | ||||||||||||||||||||
| HCS [Member] | |||||||||||||||||||||
| Business Acquisition [Line Items] | |||||||||||||||||||||
| Revenues | 40,000 | ||||||||||||||||||||
| Proceeds from Divestiture of Businesses | 8,891 | ||||||||||||||||||||
| Gain (Loss) on Disposition of Business | $ 12,972 | ||||||||||||||||||||
| |||||||||||||||||||||
Goodwill and Intangible Assets Goodwill Rollforward (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|
| Goodwill [Line Items] | |||
| Goodwill | $ 2,356,085 | $ 2,322,928 | $ 2,433,784 |
| Goodwill, Other Increase (Decrease) | (199) | ||
| goodwill acquired or allocated member [Member] | |||
| Goodwill [Line Items] | |||
| Goodwill, Acquired During Period | 74,531 | 3,232 | |
| Foreign Currency Gain (Loss) [Member] | |||
| Goodwill [Line Items] | |||
| Goodwill, Foreign Currency Translation Gain (Loss) | (41,175) | (114,088) | |
| Healthcare Specialty Services [Member] | |||
| Goodwill [Line Items] | |||
| Goodwill | 368,259 | 374,910 | 388,025 |
| Goodwill, Other Increase (Decrease) | (199) | ||
| Healthcare Specialty Services [Member] | goodwill acquired or allocated member [Member] | |||
| Goodwill [Line Items] | |||
| Goodwill, Acquired During Period | 1,364 | (907) | |
| Healthcare Specialty Services [Member] | Foreign Currency Gain (Loss) [Member] | |||
| Goodwill [Line Items] | |||
| Goodwill, Foreign Currency Translation Gain (Loss) | (7,816) | (12,208) | |
| Life Science Member [Member] | |||
| Goodwill [Line Items] | |||
| Goodwill | 148,557 | 147,795 | 148,816 |
| Life Science Member [Member] | goodwill acquired or allocated member [Member] | |||
| Goodwill [Line Items] | |||
| Goodwill, Acquired During Period | 0 | 0 | |
| Life Science Member [Member] | Foreign Currency Gain (Loss) [Member] | |||
| Goodwill [Line Items] | |||
| Goodwill, Foreign Currency Translation Gain (Loss) | 762 | (1,021) | |
| Healthcare Products [Member] | |||
| Goodwill [Line Items] | |||
| Goodwill | 459,007 | 397,284 | 404,674 |
| Healthcare Products [Member] | goodwill acquired or allocated member [Member] | |||
| Goodwill [Line Items] | |||
| Goodwill, Acquired During Period | 65,222 | (1,202) | |
| Healthcare Products [Member] | Foreign Currency Gain (Loss) [Member] | |||
| Goodwill [Line Items] | |||
| Goodwill, Foreign Currency Translation Gain (Loss) | (3,499) | (6,188) | |
| Applied Sterilization Technologies [Member] | |||
| Goodwill [Line Items] | |||
| Goodwill | 1,380,262 | 1,402,939 | $ 1,492,269 |
| Applied Sterilization Technologies [Member] | goodwill acquired or allocated member [Member] | |||
| Goodwill [Line Items] | |||
| Goodwill, Acquired During Period | 7,945 | 5,341 | |
| Applied Sterilization Technologies [Member] | Foreign Currency Gain (Loss) [Member] | |||
| Goodwill [Line Items] | |||
| Goodwill, Foreign Currency Translation Gain (Loss) | $ (30,622) | $ (94,671) | |
Benefit Plans (Accumulated benefit obligation exceeding the fair value of plan assets) (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
Sep. 30, 2008 |
|---|---|---|---|---|
| Defined Benefit Plan Disclosure [Line Items] | ||||
| Defined Benefit Plan, Accumulated Benefit Obligation | $ 46,001 | |||
| Other Defined Benefit Pension Plans [Member] | ||||
| Defined Benefit Plan Disclosure [Line Items] | ||||
| Defined Benefit Plan, Plan Assets, Amount | $ 112,203 | $ 117,504 | $ 119,441 | |
| Defined Benefit Plan, Accumulated Benefit Obligation | 120,084 | 130,669 | ||
| defined benefit plans, aggregate projected benefit obligation | $ 123,190 | $ 132,672 |
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|||
| Effect of Fourth Quarter Events [Line Items] | |||||||||||||
| Revenues | $ 822,991 | $ 774,261 | $ 736,840 | $ 696,803 | $ 768,213 | $ 696,238 | $ 678,961 | $ 638,758 | $ 3,030,895 | $ 2,782,170 | $ 2,619,996 | ||
| Cost of revenues: | |||||||||||||
| Cost of Revenue | 458,931 | 442,908 | 418,173 | 390,960 | 433,497 | 409,241 | 394,297 | 369,708 | 1,710,972 | 1,606,743 | 1,527,250 | ||
| Gross Profit | $ 364,060 | $ 331,353 | $ 318,667 | $ 305,843 | $ 334,716 | $ 286,997 | $ 284,664 | $ 269,050 | 1,319,923 | 1,175,427 | 1,092,746 | ||
| Gross Profit Percentage | 44.20% | 42.80% | 43.20% | 43.90% | 43.60% | 41.20% | 41.90% | 42.10% | |||||
| Restructuring expenses | [1] | 3,143 | 40,708 | 103 | |||||||||
| Net Income (Loss) Attributable to Parent | $ 123,316 | $ 104,930 | $ 94,769 | $ 84,590 | $ 108,745 | $ 47,858 | $ 77,457 | $ 69,991 | $ 407,605 | $ 304,051 | $ 290,915 | ||
| Earnings Per Share, Basic | $ 1.45 | $ 1.24 | $ 1.12 | $ 1.00 | $ 1.29 | $ 0.57 | $ 0.92 | $ 0.83 | $ 4.81 | $ 3.59 | $ 3.42 | ||
| Earnings Per Share, Diluted | $ 1.44 | $ 1.23 | $ 1.11 | $ 0.99 | $ 1.27 | $ 0.56 | $ 0.91 | $ 0.82 | $ 4.76 | $ 3.56 | $ 3.39 | ||
| Operating Expense [Member] | |||||||||||||
| Cost of revenues: | |||||||||||||
| Restructuring expenses | $ 4,840 | $ 26,147 | $ 0 | $ 0 | |||||||||
| Service [Member] | |||||||||||||
| Effect of Fourth Quarter Events [Line Items] | |||||||||||||
| Revenues | $ 429,399 | $ 410,466 | $ 399,174 | $ 389,068 | 393,276 | 368,599 | 364,302 | 359,968 | $ 1,628,107 | $ 1,486,145 | $ 1,399,363 | ||
| Cost of revenues: | |||||||||||||
| Cost of Goods and Services Sold | 248,393 | 247,803 | 234,573 | 230,001 | 232,140 | 227,012 | 222,190 | 223,106 | 960,770 | 904,448 | 881,073 | ||
| Product [Member] | |||||||||||||
| Effect of Fourth Quarter Events [Line Items] | |||||||||||||
| Revenues | 393,592 | 363,795 | 337,666 | 307,735 | 374,937 | 327,639 | 314,659 | 278,790 | 1,402,788 | 1,296,025 | 1,220,633 | ||
| Cost of revenues: | |||||||||||||
| Cost of Goods and Services Sold | 210,538 | 195,105 | 183,600 | 160,959 | $ 201,357 | $ 182,229 | $ 172,107 | $ 146,602 | $ 750,202 | $ 702,295 | $ 646,177 | ||
| Operating Expense [Member] | |||||||||||||
| Cost of revenues: | |||||||||||||
| Restructuring expenses | $ 6 | $ (448) | $ (274) | $ 1,389 | |||||||||
| |||||||||||||
Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
|---|---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Mar. 31, 2018 |
|||
| Property, Plant and Equipment [Line Items] | |||||
| Document Period End Date | Mar. 31, 2020 | ||||
| Asset Retirement Obligation | $ 12,514 | $ 12,386 | $ 11,639 | ||
| Asset Retirement Obligation, Liabilities Incurred | 94 | 1,033 | |||
| Asset Retirement Obligation, Liabilities Settled | (168) | ||||
| Asset Retirement Obligation, Accretion Expense | 453 | 385 | |||
| Asset Retirement Obligation, Foreign Currency Translation Gain (Loss) | (251) | (671) | |||
| Land | [1] | 65,994 | 63,522 | ||
| Buildings and Improvements, Gross | 531,267 | 480,359 | |||
| Machinery and Equipment, Gross | 682,488 | 656,956 | |||
| Capitalized Computer Software, Gross | 181,112 | 169,711 | |||
| Materials, Supplies, and Other | 508,593 | 483,080 | |||
| Construction in Progress, Gross | [1] | 159,731 | 133,689 | ||
| Property, Plant and Equipment, Gross | 2,129,185 | 1,987,317 | |||
| Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (1,017,330) | (955,735) | |||
| Property, Plant and Equipment, Net | 1,111,855 | 1,031,582 | |||
| Depreciation | $ 122,707 | 127,174 | $ 108,137 | ||
| Operating Leases, Future Minimum Payments Due, Current | 24,008 | ||||
| Operating Leases, Future Minimum Payments, Due Thereafter | 93,939 | ||||
| Operating Leases, Future Minimum Payments Due | $ 162,360 | ||||
| |||||
Income Tax Expense (Details) $ / shares in Units, $ in Thousands |
12 Months Ended | |||
|---|---|---|---|---|
|
Mar. 31, 2020
USD ($)
$ / shares
|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
Mar. 31, 2017
USD ($)
|
|
| Operating Loss Carryforwards [Line Items] | ||||
| TCJA Effective U.S. Federal Tax Rate | 0.210 | |||
| Income Tax Examination, Penalties and Interest Accrued | $ 243 | $ 360 | ||
| Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 1,118 | |||
| Uncertain Tax Liability Resulting From IRS Notice | 40,000 | |||
| Deferred Tax Assets, Tax Credit Carryforwards | 2,547 | |||
| Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits | $ 2,871 | $ 3,142 | ||
| Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 12.50% | 12.50% | 19.00% | |
| Current Federal Tax Expense (Benefit) | $ 5,036 | $ 2,627 | $ 2,596 | |
| Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ 29,543 | $ 13,693 | $ 11,837 | |
| Effective Income Tax Rate, Continuing Operations | 18.20% | 17.40% | 17.80% | |
| Unrecognized Tax Benefits | $ 875 | $ 2,314 | $ 2,500 | |
| Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 498,681 | 369,470 | 354,982 | |
| Current State and Local Tax Expense (Benefit) | 9,971 | 12,484 | 7,727 | |
| Current Income Tax Expense (Benefit) | 81,639 | 71,878 | 84,793 | |
| Deferred Federal Income Tax Expense (Benefit) | (899) | (546) | (280) | |
| Deferred State and Local Income Tax Expense (Benefit) | 2,363 | 2,836 | 2,656 | |
| Increase (Decrease) in Deferred Income Taxes | 9,237 | (7,484) | (21,433) | |
| Income Tax Expense (Benefit) | $ 90,876 | $ 64,394 | $ 63,360 | |
| Effective Income Tax Rate Reconciliation, State and Local Income Taxes | 2.00% | 3.10% | 2.30% | |
| Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 0.50% | 0.40% | 0.10% | |
| Effective Tax Rate Reconciliation, Increase (decrease) in Valuation Allowances | (0.30%) | 0.00% | 0.10% | |
| Effective Income Tax Rate Reconciliation, Tax Credit, Research, Percent | (0.50%) | (0.60%) | (0.50%) | |
| Effective Income Tax Rate Reconciliation, Tax Credits, Foreign | (0.60%) | (0.20%) | (0.20%) | |
| Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential | 6.90% | 4.50% | 0.00% | |
| Effective Tax Rate Reconciliation, UK Tax Rate Differential | 0.00% | 0.00% | 4.10% | |
| Effective Income Tax Rate Reconciliation, Deductions, Qualified Production Activities | 0.00% | 0.00% | (0.80%) | |
| Effective Income Tax Rate Reconciliation, Tax Expense (Benefit), Share-based Payment Arrangement, Percent | (2.80%) | (2.20%) | (1.80%) | |
| Effective Tax Reconciliation, deferred tax assets and liabilities | 0.10% | (0.60%) | (10.30%) | |
| Change in Effective Income Tax US Transition tax | 0.00% | (0.30%) | 4.90% | |
| U.S. tax reform impact GILTI and FDII | 0.10% | 0.30% | 0.00% | |
| Effective Tax Rate Reconciliation, acquisitions and divestitures | 0.00% | 0.00% | 0.50% | |
| Capitalized Interest Costs- Effective tax rate | 0.10% | 0.50% | 0.00% | |
| Effective Income Tax Rate Reconciliation, Other Adjustments | 0.20% | 0.00% | 0.40% | |
| Unrecognized Tax Benefits, Increases Resulting from Current Period Tax Positions | $ 176 | $ 178 | ||
| Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions | (1,570) | (186) | ||
| Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation | (45) | (178) | ||
| Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits | 12,560 | 14,275 | ||
| Deferred Tax Assets, Operating Loss Carryforwards | 10,942 | |||
| Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | 5,490 | 4,858 | ||
| Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Self Insurance | 3,620 | 3,187 | ||
| Deferred Tax Assets, Deferred Income | 11,316 | 7,509 | ||
| Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | 1,820 | 1,386 | ||
| Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Pensions | 2,273 | 3,364 | ||
| Deferred Tax Assets, Operating leases | 28,945 | 0 | ||
| Deferred Tax Liabilities, Leasing Arrangements | 29,268 | 0 | ||
| Deferred Tax Assets, Other | 6,024 | 7,707 | ||
| Deferred Tax Assets, Gross, Current | 91,068 | 64,623 | ||
| Deferred Tax Assets, Valuation Allowance | 13,891 | 13,478 | $ 13,596 | $ 16,366 |
| Deferred Tax Assets, Net of Valuation Allowance | 77,177 | 51,145 | ||
| Deferred Tax Liabilities, Property, Plant and Equipment | 68,179 | 61,060 | ||
| Deferred Tax Liabilities, Goodwill and Intangible Assets, Intangible Assets | 129,951 | 128,479 | ||
| Deferred Tax and Other Liabilities, Noncurrent | 2,078 | 2,197 | ||
| Deferred tax liabilities, net of deferred tax assets | 229,476 | 191,736 | ||
| Deferred Tax Liabilities | (152,299) | (140,591) | ||
| Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 41,450 | |||
| Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 2,042 | |||
| Valuation Allowance, Deferred Tax Asset, Change in Amount | 413 | |||
| Deferred Tax Assets, Operating Loss Carryforwards | 16,149 | 19,195 | ||
| Undistributed Earnings of Foreign Subsidiaries | 1,600,000 | |||
| Costa Rica Exempt thorugh 2025 and partially exempt through 2029 [Member] | ||||
| Operating Loss Carryforwards [Line Items] | ||||
| Income Tax Holiday, Aggregate Dollar Amount | $ 1,900 | |||
| Income Tax Holiday, Income Tax Benefits Per Share | $ / shares | $ 0.02 | |||
| UNITED STATES | ||||
| Operating Loss Carryforwards [Line Items] | ||||
| Income (Loss) from Continuing Operations before Income Taxes, Foreign | $ 325,522 | 235,405 | 203,872 | |
| Current Foreign Tax Expense (Benefit) | 42,032 | 29,943 | 47,728 | |
| Deferred Foreign Income Tax Expense (Benefit) | 10,073 | 5,775 | (15,728) | |
| Other Foreign Entities [Member] | ||||
| Operating Loss Carryforwards [Line Items] | ||||
| Income (Loss) from Continuing Operations before Income Taxes, Foreign | 143,616 | 120,372 | 139,273 | |
| Current Foreign Tax Expense (Benefit) | 24,600 | 26,824 | 26,742 | |
| Deferred Foreign Income Tax Expense (Benefit) | (2,300) | $ (15,549) | $ (8,081) | |
| Maximum [Member] | ||||
| Operating Loss Carryforwards [Line Items] | ||||
| Tax Cuts and Jobs Act, Incomplete Accounting, Provisional Income Tax Expense (Benefit) | $ 15,000 | |||
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands |
Total |
Ordinary Shares |
Noncontrolling Interest |
Stock Issued in exchange in Redomiciliation [Member] |
Common Stock Retired in Redomiciliation [Member] [Member] |
AOCI Attributable to Parent [Member] |
Preferred Stock Retired in Redomiciliation [Member] [Member] |
Retained Earnings [Member] |
Stock retired in Redomiciliation [Member] [Member] |
|---|---|---|---|---|---|---|---|---|---|
| Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 2,810,033 | $ 2,085,134 | $ 11,431 | $ (240,702) | $ 954,155 | ||||
| Shares, Issued | 84,948,000 | ||||||||
| Preferred Stock, Shares Outstanding | 100,000 | ||||||||
| Preferred shares | $ 15 | ||||||||
| Ordinary Shares, Dividends, Per Share, Cash Paid | $ 1.21 | ||||||||
| Net Income (Loss) Attributable to Parent | $ 290,915 | 290,915 | |||||||
| Net Income (Loss) Attributable to Noncontrolling Interest | 707 | 707 | |||||||
| Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 291,622 | ||||||||
| Total other comprehensive loss attributable to shareholders | 252,387 | 252,387 | |||||||
| Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 592,000 | ||||||||
| Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 32,470 | $ 32,470 | |||||||
| Stock Repurchased and Retired During Period, Shares | (793,000) | ||||||||
| Stock Repurchased and Retired During Period, Value | (65,485) | $ (69,567) | 4,082 | ||||||
| Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (1,400) | (1,400) | |||||||
| Dividends, Ordinary Shares, Cash | (102,929) | (102,929) | |||||||
| Noncontrolling Interest, Change in Redemption Value | 602 | 602 | |||||||
| Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 3,217,300 | ||||||||
| Stockholders' Equity Attributable to Parent | $ 2,048,037 | 11,685 | 1,146,223 | ||||||
| Noncontrolling interest | 11,340 | ||||||||
| Shares, Issued | 84,747,000 | ||||||||
| Preferred Stock, Shares Outstanding | 100,000 | ||||||||
| Preferred shares | $ 15 | ||||||||
| Ordinary Shares, Dividends, Per Share, Cash Paid | $ 1.33 | ||||||||
| Net Income (Loss) Attributable to Parent | $ 304,051 | 304,051 | |||||||
| Net Income (Loss) Attributable to Noncontrolling Interest | 1,025 | 1,025 | |||||||
| Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 305,076 | ||||||||
| Total other comprehensive loss attributable to shareholders | (169,493) | (169,493) | |||||||
| Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 533,000 | ||||||||
| Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 36,941 | $ 36,941 | |||||||
| Stock Repurchased and Retired During Period, Shares | (763,000) | (84,514,000) | (100,000) | ||||||
| Stock Repurchased and Retired During Period, Value | (81,494) | $ (86,414) | $ (10,592,117) | $ (15) | 4,920 | $ (10,592,132) | |||
| Stock Issued During Period, Shares, New Issues | 84,514,000 | ||||||||
| Stock Issued During Period, Value, New Issues | $ 10,592,117 | ||||||||
| New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | (3,667) | ||||||||
| New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (5,637) | (1,970) | |||||||
| Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (255) | (255) | |||||||
| Dividends, Ordinary Shares, Cash | (112,503) | (112,503) | |||||||
| Noncontrolling Interest, Change in Redemption Value | (4,122) | (4,122) | |||||||
| Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,185,798 | ||||||||
| Stockholders' Equity Attributable to Parent | 3,177,810 | $ 1,998,564 | (159,778) | 1,339,024 | |||||
| Noncontrolling interest | $ 7,988 | 7,988 | |||||||
| Shares, Issued | 84,517,000 | ||||||||
| Preferred Stock, Shares Outstanding | 0 | ||||||||
| Preferred shares | $ 0 | ||||||||
| Ordinary Shares, Dividends, Per Share, Cash Paid | $ 1.45 | ||||||||
| Net Income (Loss) Attributable to Parent | $ 407,605 | 407,605 | |||||||
| Net Income (Loss) Attributable to Noncontrolling Interest | 200 | 200 | |||||||
| Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 407,805 | ||||||||
| Total other comprehensive loss attributable to shareholders | (75,685) | (75,685) | |||||||
| Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 803,000 | ||||||||
| Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 58,421 | $ 58,421 | 0 | 0 | 0 | ||||
| Stock Repurchased and Retired During Period, Shares | (396,000) | ||||||||
| Stock Repurchased and Retired During Period, Value | (51,241) | $ (74,821) | 23,580 | ||||||
| Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (1,245) | (1,245) | |||||||
| Contributions from noncontrolling interests | 6,050 | 6,050 | |||||||
| Dividends, Ordinary Shares, Cash | (123,034) | 0 | 0 | 0 | (123,034) | ||||
| Noncontrolling Interest, Change in Redemption Value | (145) | (145) | |||||||
| Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,406,724 | ||||||||
| Stockholders' Equity Attributable to Parent | 3,393,876 | $ 1,982,164 | $ (235,463) | $ 1,647,175 | |||||
| Noncontrolling interest | $ 12,848 | $ 12,848 | |||||||
| Shares, Issued | 84,924,000 | ||||||||
| Preferred Stock, Shares Outstanding | 0 | ||||||||
| Preferred shares | $ 0 |
Forward and Swap Contracts (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Notes To Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Derivative Instruments in Statement of Financial Position, Fair Value |
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| Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table presents the impact of derivative instruments and their location within the Consolidated Statements of Income:
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Business Segment Information (Tables) |
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| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Segment Reporting Information, by Segment |
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| Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area |
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| Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] |
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| Revenue from External Customers by Products and Services [Table Text Block] |
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| Other Expense | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Segment Reporting Information, by Segment |
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| Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Segment Reporting Information, by Segment |
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Mar. 31, 2019 |
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|---|---|---|---|---|---|
| Statement of Financial Position [Abstract] | |||||
| Accounts Receivable, Allowance for Credit Loss, Current | $ 12,051 | $ 9,645 | [1] | ||
| Serial preferred shares authorized | 50,000,000 | 50,000,000 | |||
| Preferred Stock, Shares Outstanding | 0 | 0 | |||
| Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||
| Common shares issued | 84,924,000 | 84,517,000 | |||
| Common shares outstanding | 84,924,000 | 84,517,000 | |||
| Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 75.00 | |||
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Repurchases of Common Shares |
12 Months Ended |
|---|---|
Mar. 31, 2020 | |
| Repurchases of Common Shares [Abstract] | |
| Schedule of Treasury Stock by Class [Text Block] | 13. REPURCHASE OF ORDINARY SHARES On August 9, 2016, STERIS UK announced that its Board of Directors had authorized the purchase of up to $300,000 (net of taxes, fees and commissions) of our ordinary shares. As a result of the Redomiciliation, that share repurchase authorization terminated. On May 7, 2019, our Board of Directors authorized the continuation of the share repurchase program resulting in a share repurchase authorization of $78,979 (net of taxes, fees and commissions). On July 30, 2019, our Board of Directors approved an increase to the May 7, 2019 authorization of an additional amount of $300,000 (net of taxes, fees and commissions). As of March 31, 2020, there was approximately $338,979 (net of taxes, fees and commissions) of remaining availability under the authorization. Under the authorizations, the Company may repurchase its shares from time to time through open market purchases, including 10b5-1 plans. Any repurchase program may be activated, suspended or discontinued at any time. During fiscal 2020, we repurchased 273,259 of our ordinary shares for the aggregate amount of $40,000 (net of fees and commissions) pursuant to the 2019 authorizations. During fiscal 2019, we repurchased 651,093 of our ordinary shares for the aggregate amount of $72,082 (net of fees and commissions) pursuant to the 2016 authorization. During fiscal 2018, we repurchased 664,963 of our ordinary shares for the aggregate amount of $58,939 (net of fees and commissions) pursuant to the 2016 authorization. During fiscal 2020, we obtained 122,884 of our ordinary shares in the aggregate amount of $11,235 in connection with share based compensation award programs. During fiscal 2019, we obtained 112,356 of our ordinary shares in the aggregate amount of $8,262 in connection with share based compensation award programs. During fiscal 2018, we obtained 127,903 of our ordinary shares in the aggregate amount of $7,014 in connection with share based compensation award programs.
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