QUARTERLY 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 For the transition period from _______ to _______ |
(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 | ||||||
☒ | Accelerated Filer | ☐ | ||||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ☐ | |||||||||||
Emerging Growth Company | ☐ |
Page | ||||||||
December 31, 2020 | March 31, 2020 | |||||||||||||
(Unaudited) | ||||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Accounts receivable (net of allowances of $ | ||||||||||||||
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 8) | ||||||||||||||
Ordinary shares, with $ | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Total shareholders’ equity | ||||||||||||||
Noncontrolling interests | ||||||||||||||
Total equity | ||||||||||||||
Total liabilities and equity | $ | $ |
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
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 (loss) attributable to noncontrolling interests | ( | |||||||||||||||||||||||||
Net income attributable to shareholders | $ | $ | $ | $ | ||||||||||||||||||||||
Net income per share attributed to shareholders | ||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted | $ | $ | $ | $ | ||||||||||||||||||||||
Cash dividends declared per share ordinary outstanding | $ | $ | $ | $ |
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | ( | |||||||||||||||||||||||||
Net income attributable to shareholders | ||||||||||||||||||||||||||
Other comprehensive income (loss) | ||||||||||||||||||||||||||
Amortization of pension and postretirement benefit plan costs, (net of taxes of $ | ( | ( | ( | ( | ||||||||||||||||||||||
Change in cumulative currency translation adjustment | ||||||||||||||||||||||||||
Total other comprehensive income | ||||||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Nine Months Ended December 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
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 on sale of businesses, net | ||||||||||||||
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 | ||||||||||||||
Acquisition of businesses, net of cash acquired | ( | ( | ||||||||||||
Other | ( | |||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
Financing activities: | ||||||||||||||
Proceeds from the issuance of long-term obligations | ||||||||||||||
Payments on long-term obligations | ( | |||||||||||||
Proceeds (payments) under credit facilities, net | ( | |||||||||||||
Deferred financing fees and debt issuance costs | ( | ( | ||||||||||||
Acquisition related deferred or contingent consideration | ( | ( | ||||||||||||
Repurchases of ordinary shares | ( | ( | ||||||||||||
Cash dividends paid to ordinary shareholders | ( | ( | ||||||||||||
Contributions from noncontrolling interest | ||||||||||||||
Distributions to noncontrolling interest | ( | ( | ||||||||||||
Payment for acquisition of subsidiary's interests in noncontrolling interest | ( | |||||||||||||
Stock option and other equity transactions, net | ||||||||||||||
Net cash provided by (used in) financing activities | ( | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | ||||||||||||||
(Decrease) in cash and cash equivalents | ( | ( | ||||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||||
Cash and cash equivalents at end of period | $ | $ |
Three Months Ended December 31, 2020 | ||||||||||||||||||||
Ordinary Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest | Total Equity | ||||||||||||||||
Number | Amount | |||||||||||||||||||
Balance at September 30, 2020 | $ | $ | $ | ( | $ | $ | ||||||||||||||
Comprehensive income: | ||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||
Other comprehensive income | — | — | — | — | ||||||||||||||||
Repurchases of ordinary shares | ( | ( | — | — | ( | |||||||||||||||
Equity compensation programs and other | — | — | — | |||||||||||||||||
Cash dividends – $ | — | — | ( | — | — | ( | ||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | ( | ( | ||||||||||||||
Payment for acquisition of subsidary's interests in noncontrolling interest | — | — | — | — | ( | ( | ||||||||||||||
Other changes in noncontrolling interest | — | — | — | — | ( | ( | ||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | ( | $ | $ |
Nine Months Ended December 31, 2020 | ||||||||||||||||||||
Ordinary Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest | Total Equity | ||||||||||||||||
Number | Amount | |||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | ( | $ | $ | ||||||||||||||
Comprehensive income: | ||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||
Other comprehensive income | — | — | — | — | ||||||||||||||||
Repurchases of ordinary shares | ( | ( | — | — | ( | |||||||||||||||
Equity compensation programs and other | — | — | — | |||||||||||||||||
Cash dividends – $ | — | — | ( | — | — | ( | ||||||||||||||
Contributions from noncontrolling interest | — | — | — | — | ||||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | ( | ( | ||||||||||||||
Payment for acquisition of subsidary's interests in noncontrolling interest | — | — | — | — | ( | ( | ||||||||||||||
Other changes in noncontrolling interest | — | — | — | — | ||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | ( | $ | $ |
Three Months Ended December 31, 2019 | ||||||||||||||||||||
Ordinary Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest | Total Equity | ||||||||||||||||
Number | Amount | |||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | ( | $ | $ | ||||||||||||||
Comprehensive income: | ||||||||||||||||||||
Net income | — | — | — | ( | ||||||||||||||||
Other comprehensive income | — | — | — | — | ||||||||||||||||
Repurchases of ordinary shares | ( | ( | ( | — | — | ( | ||||||||||||||
Equity compensation programs and other | — | — | — | |||||||||||||||||
Cash dividends $ | — | — | ( | — | — | ( | ||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | ( | ( | ||||||||||||||
Contributions from noncontrolling interest | — | — | — | — | ||||||||||||||||
Other changes in noncontrolling interest | — | — | — | — | ( | ( | ||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | ( | $ | $ |
Nine Months Ended December 31, 2019 | ||||||||||||||||||||
Ordinary Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest | Total Equity | ||||||||||||||||
Number | Amount | |||||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | ( | $ | $ | ||||||||||||||
Comprehensive income: | ||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||
Other comprehensive income | — | — | — | — | ||||||||||||||||
Repurchases of ordinary shares | ( | ( | — | — | ( | |||||||||||||||
Equity compensation programs and other | — | — | — | |||||||||||||||||
Cash dividends – $ | — | — | ( | — | — | ( | ||||||||||||||
Distributions to noncontrolling interest | — | — | — | — | ( | ( | ||||||||||||||
Contributions from noncontrolling interest | — | — | — | — | ||||||||||||||||
Other changes in noncontrolling interest | — | — | — | — | ( | ( | ||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | ( | $ | $ |
Standard | Date of Issuance | Description | Date of Adoption | Effect on the financial statements or other significant matters | ||||||||||||||||||||||
Standards that have been adopted in fiscal 2021 | ||||||||||||||||||||||||||
ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" | June 2016 | The standard required 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 was effective for annual periods beginning after December 15, 2019. | First Quarter Fiscal 2021 | We adopted this standard effective April 1, 2020 with no material impact to 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 modified 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 was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. | First Quarter Fiscal 2021 | We adopted this standard effective April 1, 2020 with no 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 modified 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 clarified disclosure requirements for defined benefit pension plans relating to the projected benefit obligation and accumulated benefit obligation. The standard was effective for fiscal years ending after December 15, 2019. | First Quarter Fiscal 2021 | We adopted this standard effective April 1, 2020 with no 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 aligned 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 was effective for fiscal years beginning after December 15, 2019. | First Quarter Fiscal 2021 | We adopted this standard on April 1, 2020 using the prospective method. The adoption of this standard did not have a material impact on our consolidated financial statements and disclosures. | ||||||||||||||||||||||
Standards that have not yet been adopted | ||||||||||||||||||||||||||
ASU 2020-06 "Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)" | August 2020 | This standard simplifies the accounting for convertible instruments and its application of the derivatives scope exception for contracts in an entity’s own equity. The standard reduces the number of accounting models that require separating embedded conversion features from convertible instruments. As a result, only conversion features accounted for under the substantial premium model and those that require bifurcation will be accounted for separately. For contracts in an entity’s own equity, the new standard eliminates some of the current requirements for equity classification. The standard also addresses how convertible instruments are accounted for in the diluted earnings per share calculation and requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. The standard is effective for annual periods beginning after December 15, 2021 and interim periods within that year. Early adoption is permitted for annual periods beginning after December 15, 2020 and interim periods within that year. | N/A | We are in the process of evaluating the impact that the standard will have 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 beginning 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. | ||||||||||||||||||||||
(dollars in thousands) | Key Surgical (1) | |||||||
Cash | $ | |||||||
Accounts receivable | ||||||||
Inventory | ||||||||
Property, plant and equipment | ||||||||
Other assets | ||||||||
Intangible assets (2) | ||||||||
Goodwill | ||||||||
Total Assets | $ | |||||||
Current liabilities | ( | |||||||
Non-current liabilities | ( | |||||||
Total Liabilities | ( | |||||||
Net Assets | $ |
December 31, 2020 | March 31, 2020 | |||||||||||||
Raw materials | $ | $ | ||||||||||||
Work in process | ||||||||||||||
Finished goods | ||||||||||||||
LIFO reserve | ( | ( | ||||||||||||
Reserve for excess and obsolete inventory | ( | ( | ||||||||||||
Inventories, net | $ | $ |
December 31, 2020 | March 31, 2020 | |||||||||||||
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 | $ | $ |
December 31, 2020 | March 31, 2020 | |||||||||||||
Credit Agreement | $ | $ | ||||||||||||
Term Loan | ||||||||||||||
Private Placement | ||||||||||||||
Deferred financing costs | ( | ( | ||||||||||||
Total long term debt | $ | $ |
December 31, 2020 | March 31, 2020 | |||||||||||||
Accrued payroll and other related liabilities: | ||||||||||||||
Compensation and related items | $ | $ | ||||||||||||
Accrued vacation/paid time off | ||||||||||||||
Accrued bonuses | ||||||||||||||
Accrued employee commissions | ||||||||||||||
Other postretirement benefit 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 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 postretirement benefit 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 | ||||||||||||||
Other | ||||||||||||||
Total other liabilities | $ | $ |
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Healthcare | $ | $ | $ | $ | ||||||||||||||||||||||
Applied Sterilization Technologies | ||||||||||||||||||||||||||
Life Sciences | ||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Operating income (loss): | ||||||||||||||||||||||||||
Healthcare | $ | $ | $ | $ | ||||||||||||||||||||||
Applied Sterilization Technologies | ||||||||||||||||||||||||||
Life Sciences | ||||||||||||||||||||||||||
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 | ( | ( | ||||||||||||||||||||||||
Net loss on divestiture of businesses (1) | ||||||||||||||||||||||||||
Amortization of inventory and property "step up" to fair value (1) | ||||||||||||||||||||||||||
COVID-19 incremental costs (4) | ||||||||||||||||||||||||||
Restructuring charges (5) | ||||||||||||||||||||||||||
Total operating income | $ | $ | $ | $ |
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Healthcare: | ||||||||||||||||||||||||||
Capital equipment | $ | $ | $ | |||||||||||||||||||||||
Consumables | ||||||||||||||||||||||||||
Service | ||||||||||||||||||||||||||
Total Healthcare Revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Applied Sterilization Technologies Service Revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Life Sciences: | ||||||||||||||||||||||||||
Capital equipment | $ | $ | $ | $ | ||||||||||||||||||||||
Consumables | ||||||||||||||||||||||||||
Service | ||||||||||||||||||||||||||
Total Life Sciences Revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Total Revenues | $ | $ | $ | $ |
Three Months Ended December 31, | Nine Months Ended December 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Ireland | $ | $ | $ | $ | |||||||||||||||||||
United States | |||||||||||||||||||||||
Other locations | |||||||||||||||||||||||
Total Revenues | $ | $ | $ | $ |
December 31, 2020 | March 31, 2020 | |||||||||||||
Assets: | ||||||||||||||
Healthcare and Life Sciences | $ | $ | ||||||||||||
Applied Sterilization Technologies | ||||||||||||||
Total assets | $ | $ |
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||
Denominator (shares in thousands): | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Weighted average shares outstanding—basic | ||||||||||||||||||||||||||
Dilutive effect of share equivalents | ||||||||||||||||||||||||||
Weighted average shares outstanding and share equivalents—diluted |
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||
(shares in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Number of share options |
Fiscal 2021 | Fiscal 2020 | |||||||||||||
Risk-free interest rate | % | % | ||||||||||||
Expected life of options | ||||||||||||||
Expected dividend yield of stock | % | % | ||||||||||||
Expected volatility of stock | % | % |
Number of Options | Weighted Average Exercise Price Per Share | Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||||||||||||||
Outstanding at March 31, 2020 | $ | |||||||||||||||||||||||||
Granted | ||||||||||||||||||||||||||
Exercised | ( | |||||||||||||||||||||||||
Forfeited | ( | |||||||||||||||||||||||||
Outstanding at December 31, 2020 | $ | $ | ||||||||||||||||||||||||
Exercisable at December 31, 2020 | $ | $ |
Number of Restricted Shares | Number of Restricted Share Units | Weighted-Average Grant Date Fair Value | ||||||||||||||||||
Non-vested at March 31, 2020 | $ | |||||||||||||||||||
Granted | ||||||||||||||||||||
Vested | ( | ( | ||||||||||||||||||
Forfeited | ( | ( | ||||||||||||||||||
Non-vested at December 31, 2020 | $ |
Warranties | |||||
Balance, March 31, 2020 | $ | ||||
Warranties issued during the period | |||||
Settlements made during the period | ( | ||||
Balance, December 31, 2020 | $ |
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||
Fair Value at | Fair Value at | Fair Value at | Fair Value at | |||||||||||||||||||||||
Balance sheet location | December 31, 2020 | March 31, 2020 | December 31, 2020 | March 31, 2020 | ||||||||||||||||||||||
Prepaid & Other | $ | $ | $ | $ | ||||||||||||||||||||||
Accrued expenses and other | $ | $ | $ | $ |
Location of gain (loss) recognized in income | Amount of gain (loss) recognized in income | |||||||||||||||||||||||||||||||
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||
Foreign currency forward contracts | Selling, general and administrative | $ | $ | $ | $ | |||||||||||||||||||||||||||
Commodity swap contracts | Cost of revenues | $ | $ | ( | $ | $ |
Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||
Carrying Value | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||
December 31, | March 31, | December 31, | March 31, | December 31, | March 31, | December 31, | March 31, | |||||||||||||||||||||||||||||||
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, 2020 | $ | |||||||
Additions | ||||||||
Assumed in acquisition of Key Surgical | ||||||||
Payments | ( | |||||||
Reversal | ( | |||||||
Currency translation adjustments | ||||||||
Balance at December 31, 2020 | $ |
Defined Benefit Plans (1) | Currency Translation (2) | Total Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||||||
Three Months | Nine Months | Three Months | Nine Months | Three Months | Nine Months | ||||||||||||||||||||||||||||||
Beginning Balance | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||
Other Comprehensive Income before reclassifications | |||||||||||||||||||||||||||||||||||
Amounts reclassified from Accumulated Other Comprehensive (Loss) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Net current-period Other Comprehensive (Loss) Income | ( | ( | |||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | ( | $ | ( | $ | $ | $ | ( | $ | ( |
Defined Benefit Plans (1) | Currency Translation (2) | Total Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||
Three Months | Nine Months | Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||||||||||||||
Beginning Balance | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||||
Other Comprehensive Income (Loss) before reclassifications | ||||||||||||||||||||||||||||||||||||||
Amounts reclassified from Accumulated Other Comprehensive (Loss) | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Net current-period Other Comprehensive (Loss) | ( | ( | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
Nine Months Ended December 31, | ||||||||||||||
(dollars in thousands) | 2020 | 2019 | ||||||||||||
Net cash provided by operating activities | $ | 501,785 | $ | 391,326 | ||||||||||
Purchases of property, plant, equipment and intangibles, net | (164,497) | (153,649) | ||||||||||||
Proceeds from the sale of property, plant, equipment and intangibles | 417 | 387 | ||||||||||||
Free cash flow | $ | 337,705 | $ | 238,064 |
Three Months Ended December 31, | ||||||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | Change | Percent Change | ||||||||||||||||||||||
Total revenues | $ | 808,924 | $ | 774,261 | $ | 34,663 | 4.5 | % | ||||||||||||||||||
Revenues by type: | ||||||||||||||||||||||||||
Service revenues | 433,610 | 410,466 | 23,144 | 5.6 | % | |||||||||||||||||||||
Consumable revenues | 198,466 | 176,625 | 21,841 | 12.4 | % | |||||||||||||||||||||
Capital equipment revenues | 176,848 | 187,170 | (10,322) | (5.5) | % | |||||||||||||||||||||
Revenues by geography: | ||||||||||||||||||||||||||
Ireland revenues | 20,316 | 16,126 | 4,190 | 26.0 | % | |||||||||||||||||||||
United States revenues | 572,397 | 562,502 | 9,895 | 1.8 | % | |||||||||||||||||||||
Other foreign revenues | 216,211 | 195,633 | 20,578 | 10.5 | % |
Nine Months Ended December 31, | ||||||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | Change | Percent Change | ||||||||||||||||||||||
Total revenues | $ | 2,233,988 | $ | 2,207,904 | $ | 26,084 | 1.2 | % | ||||||||||||||||||
Revenues by type: | ||||||||||||||||||||||||||
Service revenues | 1,218,062 | 1,198,708 | 19,354 | 1.6 | % | |||||||||||||||||||||
Consumable revenues | 519,652 | 495,309 | 24,343 | 4.9 | % | |||||||||||||||||||||
Capital equipment revenues | 496,274 | 513,887 | (17,613) | (3.4) | % | |||||||||||||||||||||
Revenues by geography: | ||||||||||||||||||||||||||
Ireland revenues | 51,779 | 46,405 | 5,374 | 11.6 | % | |||||||||||||||||||||
United States revenues | 1,613,554 | 1,611,755 | 1,799 | 0.1 | % | |||||||||||||||||||||
Other foreign revenues | 568,655 | 549,744 | 18,911 | 3.4 | % |
Three Months Ended December 31, | Change | Percent Change | ||||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | ||||||||||||||||||||||||
Gross profit: | ||||||||||||||||||||||||||
Product | $ | 172,433 | $ | 168,690 | $ | 3,743 | 2.2 | % | ||||||||||||||||||
Service | 173,428 | 162,663 | 10,765 | 6.6 | % | |||||||||||||||||||||
Total gross profit | $ | 345,861 | $ | 331,353 | $ | 14,508 | 4.4 | % | ||||||||||||||||||
Gross profit percentage: | ||||||||||||||||||||||||||
Product | 45.9 | % | 46.4 | % | ||||||||||||||||||||||
Service | 40.0 | % | 39.6 | % | ||||||||||||||||||||||
Total gross profit percentage | 42.8 | % | 42.8 | % |
Nine Months Ended December 31, | Change | Percent Change | ||||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | ||||||||||||||||||||||||
Gross profit: | ||||||||||||||||||||||||||
Product | $ | 480,692 | $ | 469,532 | $ | 11,160 | 2.4 | % | ||||||||||||||||||
Service | 480,774 | 486,331 | (5,557) | (1.1) | % | |||||||||||||||||||||
Total gross profit | $ | 961,466 | $ | 955,863 | $ | 5,603 | 0.6 | % | ||||||||||||||||||
Gross profit percentage: | ||||||||||||||||||||||||||
Product | 47.3 | % | 46.5 | % | ||||||||||||||||||||||
Service | 39.5 | % | 40.6 | % | ||||||||||||||||||||||
Total gross profit percentage | 43.0 | % | 43.3 | % |
Three Months Ended December 31, | Change | Percent Change | ||||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Selling, general, and administrative | $ | 182,373 | $ | 172,927 | $ | 9,446 | 5.5 | % | ||||||||||||||||||
Research and development | 16,438 | 16,487 | (49) | (0.3) | % | |||||||||||||||||||||
Restructuring expenses | 20 | (448) | 468 | NM | ||||||||||||||||||||||
Total operating expenses | $ | 198,831 | $ | 188,966 | $ | 9,865 | 5.2 | % |
Nine Months Ended December 31, | Change | Percent Change | ||||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Selling, general, and administrative | $ | 510,250 | $ | 527,667 | $ | (17,417) | (3.3) | % | ||||||||||||||||||
Research and development | 48,812 | 48,321 | 491 | 1.0 | % | |||||||||||||||||||||
Restructuring expenses | 110 | 667 | (557) | NM | ||||||||||||||||||||||
Total operating expenses | $ | 559,172 | $ | 576,655 | $ | (17,483) | (3.0) | % | ||||||||||||||||||
NM - Not meaningful. |
Three Months Ended December 31, | ||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | Change | |||||||||||||||||
Non-operating expenses, net: | ||||||||||||||||||||
Interest expense | $ | 8,899 | $ | 9,813 | $ | (914) | ||||||||||||||
Interest income and miscellaneous expense | (1,299) | (1,378) | 79 | |||||||||||||||||
Non-operating expenses, net | $ | 7,600 | $ | 8,435 | $ | (835) |
Nine Months Ended December 31, | ||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | Change | |||||||||||||||||
Non-operating expenses, net: | ||||||||||||||||||||
Interest expense | $ | 27,056 | $ | 30,702 | $ | (3,646) | ||||||||||||||
Interest income and miscellaneous expense | (4,776) | (2,163) | (2,613) | |||||||||||||||||
Non-operating expenses, net | $ | 22,280 | $ | 28,539 | $ | (6,259) |
Three Months Ended December 31, | Change | Percent Change | ||||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | ||||||||||||||||||||||||
Income tax expense | $ | 24,842 | $ | 29,285 | $ | (4,443) | (15.2)% | |||||||||||||||||||
Effective income tax rate | 17.8 | % | 21.9 | % |
Nine Months Ended December 31, | Change | Percent Change | ||||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | ||||||||||||||||||||||||
Income tax expense | $ | 71,294 | $ | 66,083 | $ | 5,211 | 7.9% | |||||||||||||||||||
Effective income tax rate | 18.8 | % | 18.8 | % |
Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||||||||||||
(dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Healthcare | $ | 521,662 | $ | 509,222 | $ | 1,392,247 | $ | 1,440,237 | ||||||||||||||||||
Applied Sterilization Technologies | 176,462 | 156,266 | 498,371 | 463,459 | ||||||||||||||||||||||
Life Sciences | 110,800 | 108,773 | 343,370 | 304,208 | ||||||||||||||||||||||
Total revenues | $ | 808,924 | $ | 774,261 | $ | 2,233,988 | $ | 2,207,904 | ||||||||||||||||||
Operating income (loss): | ||||||||||||||||||||||||||
Healthcare | $ | 115,412 | $ | 105,227 | $ | 302,565 | $ | 298,777 | ||||||||||||||||||
Applied Sterilization Technologies | 81,626 | 65,468 | 222,416 | 198,889 | ||||||||||||||||||||||
Life Sciences | 41,541 | 37,731 | 136,435 | 103,085 | ||||||||||||||||||||||
Corporate | (47,941) | (45,260) | (158,463) | (151,613) | ||||||||||||||||||||||
Total operating income before adjustments | $ | 190,638 | $ | 163,166 | $ | 502,953 | $ | 449,138 | ||||||||||||||||||
Less: Adjustments | ||||||||||||||||||||||||||
Amortization of acquired intangible assets (1) | $ | 23,194 | $ | 17,508 | $ | 62,649 | $ | 53,407 | ||||||||||||||||||
Acquisition and integration related charges (2) | 11,563 | 1,721 | 13,984 | 5,585 | ||||||||||||||||||||||
Redomiciliation and tax restructuring costs (3) | 296 | 487 | 850 | 3,274 | ||||||||||||||||||||||
(Gain) on fair value adjustment of acquisition related contingent consideration | (500) | — | (500) | — | ||||||||||||||||||||||
Net loss on divestiture of businesses (1) | — | 76 | 5 | 2,553 | ||||||||||||||||||||||
Amortization of inventory and property "step up" to fair value (1) | 1,784 | 602 | 3,101 | 1,783 | ||||||||||||||||||||||
COVID-19 incremental costs (4) | 7,251 | — | 20,460 | — | ||||||||||||||||||||||
Restructuring charges (5) | 20 | 385 | 110 | 3,328 | ||||||||||||||||||||||
Total operating income | $ | 147,030 | $ | 142,387 | $ | 402,294 | $ | 379,208 |
Nine Months Ended December 31, | ||||||||||||||
(dollars in thousands) | 2020 | 2019 | ||||||||||||
Net cash provided by operating activities | $ | 501,785 | $ | 391,326 | ||||||||||
Net cash (used in) investing activities | $ | (1,035,903) | $ | (259,989) | ||||||||||
Net cash provided by (used in) financing activities | $ | 442,533 | $ | (153,874) | ||||||||||
Debt-to-total capital ratio | 30.7 | % | 25.2 | % | ||||||||||
Free cash flow | $ | 337,705 | $ | 238,064 |
Risk or uncertainty | Discussion | ||||
Acquisition of Cantel Medical Corp. | |||||
Failure to complete the acquisition or delays in completion could negatively impact the price of our shares as well as our future business and financial results. | The definitive agreement to acquire Cantel (the “Merger Agreement”) contains a number of conditions that must be satisfied or waived prior to the completion of the acquisition, including, without limitation, regulatory approvals and the approval of the acquisition by Cantel’s stockholders. There can be no assurance that all of the conditions to the acquisition will be so satisfied or waived. If the conditions to the acquisition are not satisfied or waived, we will be unable to complete the acquisition and the Merger Agreement may be terminated. Furthermore, the delay in the fulfillment of such conditions could result in unanticipated expenditures of funds and other resources and/or reduce the benefits of the acquisition of Cantel, even if ultimately consummated. | ||||
If the acquisition is delayed or not completed for any reason, we may experience a variety of adverse impacts. These include, without limitation, potential negative impacts to the market price of our shares and potential negative reactions from Customers, employees, vendors, business partners and other third parties. Further, we will have expended time and resources that could otherwise have been spent on our existing business and the pursuit of other opportunities that could have been beneficial to us, and our ongoing business and financial results may be adversely affected. | |||||
We will be subject to business uncertainties while the acquisition is pending, which could adversely affect our business. | Uncertainty about the effect of the acquisition on employees and Customers may have an adverse effect on our business. These uncertainties may impair our ability to attract, retain and motivate key personnel until the acquisition is completed and for a period of time thereafter, and could cause Customers and others that deal with us or Cantel to seek to change those existing business relationships. In addition, the Merger Agreement restricts us from entering into certain corporate transactions and taking other specified actions without the consent of the other party. These restrictions may prevent us from pursuing attractive business opportunities that may arise prior to the completion of the acquisition. | ||||
We will incur significant transaction and merger-related costs in connection with the acquisition, which may be in excess of those anticipated. | We have incurred substantial expenses in connection with the negotiation and effectuation of the transactions contemplated by the Merger Agreement and we expect to continue to incur a number of associated non-recurring costs. These costs have been, and will continue to be, significant. Non-recurring costs for the time period prior to the completion of the acquisition will include, among others, fees paid to financial, legal and accounting advisors and filing fees. We will also incur costs related to formulating and implementing integration plans. | ||||
We will continue to assess the magnitude of these costs. Additional unanticipated costs may be incurred. Although we expect that the elimination of duplicative costs, as well as the realization of other efficiencies related to the integration of the two companies’ businesses, will allow us to offset our costs over time, this net benefit may not be achieved or may not be achieved to the level expected. | |||||
The costs described above could have a material adverse effect on our financial condition and operating results. Many of these costs will be borne by us even if the acquisition is not completed. | |||||
We expect to incur a substantial amount of debt to complete the acquisition. Increased debt may limit our financial flexibility. | We expect to incur additional long-term debt (which may include debt incurred under term loan and/or “bridge” facilities and/or debt securities) for purposes of funding the payment of the cash portion of the acquisition consideration, the satisfaction of certain Cantel debt obligations, including those that may be accelerated or subject to put or conversion rights in connection with the acquisition, and the payment of certain related fees and expenses. The success of such efforts will depend on, among other things, our and Cantel’s financial position and performance, results of reviews by bond rating agencies, if any, as well as prevailing market conditions and other factors beyond our control. There can be no assurance that we will be able to execute such financing transactions on favorable terms or at all. | ||||
Our increased indebtedness could have important consequences to investors, including: increasing our vulnerability to general adverse economic and industry conditions; limiting our ability to obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements and limit our ability to pay dividends or repurchase our stock; requiring the use of a substantial portion of our cash flow from operations for the payment of principal and interest on our indebtedness, thereby reducing our ability to use our cash flow to fund working capital, acquisitions, capital expenditures, dividends, stock repurchases and general corporate requirements; limiting our flexibility in planning for, or reacting to, changes in our business and industry; and putting us at a disadvantage compared to our competitors with less indebtedness. |
(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 (in thousands) | |||||||||||||||||||||||
October 1-31 | — | $ | — | — | $ | 333,932 | ||||||||||||||||||||
November 1-30 | — | — | — | 333,932 | ||||||||||||||||||||||
December 1-31 | — | $ | — | — | $ | 333,932 | ||||||||||||||||||||
Total | — | — | — | 333,932 |
Exhibit Number | Exhibit Description | ||||
2.1 | |||||
2.2 | |||||
3.1 | |||||
10.1 | |||||
10.2 | |||||
10.3 | |||||
10.4 | |||||
10.5 | |||||
10.6 | |||||
10.7 | |||||
15.1 | |||||
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 Exhibit 101). |
STERIS plc | ||
/s/ KAREN L. BURTON | ||
Karen L. Burton | ||
Vice President, Controller and Chief Accounting Officer | ||
February 9, 2021 |
KS Apollo Holdings Inc. | |||||
/s/ Michael J. Tokich | |||||
Name: Michael J. Tokich | |||||
Title: President | |||||
KS Apollo LLC | |||||
/s/ Michael J. Tokich | |||||
Name: Michael J. Tokich | |||||
Title: President | |||||
Key Surgical LLC | |||||
/s/ Michael J. Tokich | |||||
Name: Michael J. Tokich | |||||
Title: President |
By: | |||||
/s/ Stacey Zoland | |||||
Name: Stacey Zoland | |||||
Title: Executive Director |
KS Apollo Holdings Inc. | |||||
/s/ Michael J. Tokich | |||||
Name: Michael J. Tokich | |||||
Title: President | |||||
KS Apollo LLC | |||||
/s/ Michael J. Tokich | |||||
Name: Michael J. Tokich | |||||
Title: President | |||||
Key Surgical LLC | |||||
/s/ Michael J. Tokich | |||||
Name: Michael J. Tokich | |||||
Title: President |
By: | |||||
/s/ Stacey Zoland | |||||
Name: Stacey Zoland | |||||
Title: Executive Director |
KS Apollo Holdings Inc. | |||||
/s/ Michael J. Tokich | |||||
Name: Michael J. Tokich | |||||
Title: President | |||||
KS Apollo LLC | |||||
/s/ Michael J. Tokich | |||||
Name: Michael J. Tokich | |||||
Title: President | |||||
KEY Surgical LLC | |||||
/s/ Michael J. Tokich | |||||
Name: Michael J. Tokich | |||||
Title: President |
By: | /s/ Michael J. Tokich | |||||||
Name: | Michael J. Tokich | |||||||
Title: | Director |
KS Apollo Holdings Inc. | |||||
/s/ Michael J. Tokich | |||||
Name: Michael J. Tokich | |||||
Title: President | |||||
KS Apollo LLC | |||||
/s/ Michael J. Tokich | |||||
Name: Michael J. Tokich | |||||
Title: President | |||||
Key Surgical LLC | |||||
Key Surgical LLC | |||||
/s/ Michael J. Tokich | |||||
Name: Michael J. Tokich | |||||
Title: President |
By: | /s/ Michael J. Tokich | |||||||
Name: | Michael J. Tokich | |||||||
Title: | Director |
KS Apollo Holdings Inc. | |||||
/s/ Michael J. Tokich | |||||
Name: Michael J. Tokich | |||||
Title: President | |||||
KS Apollo LLC | |||||
/s/ Michael J. Tokich | |||||
Name: Michael J. Tokich | |||||
Title: President | |||||
Key Surgical LLC | |||||
Key Surgical LLC | |||||
/s/ Michael J. Tokich | |||||
Name: Michael J. Tokich | |||||
Title: President |
By: | /s/ Michael J. Tokich | |||||||
Name: | Michael J. Tokich | |||||||
Title: | Director |
Registration Number | Description | |||||||
333-230557 | Form S-8 Registration Statement of STERIS plc pertaining to the STERIS Corporation 401(k) Plan | |||||||
333-230558 | Form S-8 Registration Statement of STERIS plc pertaining to the STERIS plc 2006 Long-Term Equity Incentive Plan (As Assumed, Amended and Restated Effective March 28, 2019) |
Date: | February 9, 2021 | ||||
/s/ WALTER M ROSEBROUGH, JR | |||||
Walter M Rosebrough, Jr. President and Chief Executive Officer |
Date: | February 9, 2021 | ||||
/s/ MICHAEL J. TOKICH | |||||
Michael J. Tokich Senior Vice President and Chief Financial Officer |
/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 |
CONSOLIDATED BALANCE SHEETS (unaudited) Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Capital Lease Obligations, Noncurrent | $ 130,217 | $ 114,114 |
Capital Lease Obligations, Current | 21,364 | 19,809 |
Operating Lease, Right-of-Use Asset | 149,741 | 131,837 |
Goodwill | 2,926,551 | 2,356,085 |
Allowance for Doubtful Accounts Receivable, Current | $ 11,605 | $ 12,051 |
Preferred Stock, Shares Authorized | 50,000,000 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 85,337,000 | 84,924,000 |
Common Stock, Shares, Outstanding | 85,337,000 | 84,924,000 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Intangible Assets, Net (Excluding Goodwill) | $ 1,043,904 | $ 565,473 |
Deferred Income Taxes and Other Tax Liabilities, Noncurrent | $ 264,041 | $ 160,270 |
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Revenues: | ||||
Total revenues | $ 808,924 | $ 774,261 | $ 2,233,988 | $ 2,207,904 |
Cost of revenues: | ||||
Total cost of revenues | 463,063 | 442,908 | 1,272,522 | 1,252,041 |
Gross Profit | 345,861 | 331,353 | 961,466 | 955,863 |
Operating expenses: | ||||
Selling, general, and administrative | 182,373 | 172,927 | 510,250 | 527,667 |
Research and development | 16,438 | 16,487 | 48,812 | 48,321 |
Restructuring Costs | 20 | (448) | 110 | 667 |
Total operating expenses | 198,831 | 188,966 | 559,172 | 576,655 |
Income from operations | 147,030 | 142,387 | 402,294 | 379,208 |
Non-operating expenses, net: | ||||
Interest expense | 8,899 | 9,813 | 27,056 | 30,702 |
Interest income and miscellaneous expense | (1,299) | (1,378) | (4,776) | (2,163) |
Total non-operating expenses, net | 7,600 | 8,435 | 22,280 | 28,539 |
Income before income tax expense | 139,430 | 133,952 | 380,014 | 350,669 |
Income tax expense | 24,842 | 29,285 | 71,294 | 66,083 |
Net Income | 114,588 | 104,667 | 308,720 | 284,586 |
Less: Net Income Attributable to Noncontrolling Interest | 87 | (263) | 171 | 297 |
Net income (loss) attributable to shareholders | $ 114,501 | $ 104,930 | $ 308,549 | $ 284,289 |
Net income per common share [Abstract] | ||||
Basic | $ 1.34 | $ 1.24 | $ 3.62 | $ 3.35 |
Diluted | 1.33 | 1.23 | 3.59 | 3.32 |
Cash dividends declared per common share outstanding | $ 0.40 | $ 0.37 | $ 1.17 | $ 1.08 |
Product [Member] | ||||
Revenues: | ||||
Total revenues | $ 375,314 | $ 363,795 | $ 1,015,926 | $ 1,009,196 |
Cost of revenues: | ||||
Cost of Goods and Services Sold | 202,881 | 195,105 | 535,234 | 539,664 |
Service [Member] | ||||
Revenues: | ||||
Total revenues | 433,610 | 410,466 | 1,218,062 | 1,198,708 |
Cost of revenues: | ||||
Cost of Goods and Services Sold | $ 260,182 | $ 247,803 | $ 737,288 | $ 712,377 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
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Net Income | $ 114,588 | $ 104,667 | $ 308,720 | $ 284,586 |
Less: Net Income Attributable to Noncontrolling Interest | 87 | (263) | 171 | 297 |
Net Income (Loss) Attributable to Parent | 114,501 | 104,930 | 308,549 | 284,289 |
Other comprehensive (loss) income | ||||
Amortization of pension and postretirement benefits plans costs, (net of taxes of $173 ,$171, $520 and $512, respectively) | (510) | (504) | (1,530) | (1,515) |
Change in cumulative foreign current translation adjustment | 128,737 | 77,299 | 234,607 | 12,371 |
Total other comprehensive (loss) income | 128,227 | 76,795 | 233,077 | 10,856 |
Comprehensive income | $ 242,728 | $ 181,725 | $ 541,626 | $ 295,145 |
Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
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Statement of Comprehensive Income [Abstract] | ||||
Amortization of pension and postretirement benefits plans costs, tax | $ 173 | $ 171 | $ 520 | $ 512 |
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY Statement - USD ($) shares in Thousands, $ in Thousands |
Total |
Noncontrolling Interest [Member] |
AOCI Attributable to Parent [Member] |
Retained Earnings [Member] |
Common Stock [Member] |
---|---|---|---|---|---|
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 3,185,798 | $ 7,988 | $ (159,778) | $ 1,339,024 | $ 1,998,564 |
Shares, Issued | 84,517 | ||||
Net Income (Loss) Attributable to Parent | 284,289 | 284,289 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 297 | 297 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 284,586 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 10,856 | 10,856 | |||
Treasury Stock, Shares, Acquired | 304 | ||||
Payments for Repurchase of Common Stock | 40,322 | (12,777) | $ 53,099 | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 578 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 41,642 | $ 41,642 | |||
Dividends, Common Stock, Cash | 91,595 | 91,595 | |||
Proceeds from issuance of equity to minority shareholders | 6,050 | 6,050 | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (840) | (840) | |||
Non controlling interest period increase (decrease) from translation and other | $ (109) | (109) | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.08 | ||||
Net Income (Loss) Attributable to Parent | $ 284,289 | 284,289 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 297 | 297 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 284,586 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 10,856 | 10,856 | |||
Treasury Stock, Shares, Acquired | (304) | ||||
Payments for Repurchase of Common Stock | (40,322) | 12,777 | $ (53,099) | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 578 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 41,642 | $ 41,642 | |||
Dividends, Common Stock, Cash | (91,595) | (91,595) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,237,645 | 8,977 | (225,717) | 1,472,725 | $ 1,981,660 |
Shares, Issued | 84,797 | ||||
Net Income (Loss) Attributable to Parent | 104,930 | 104,930 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | (263) | (263) | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 104,667 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 76,795 | 76,795 | |||
Treasury Stock, Shares, Acquired | 25 | ||||
Payments for Repurchase of Common Stock | 2,454 | 1,785 | $ 669 | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 19 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 6,116 | $ 6,116 | |||
Dividends, Common Stock, Cash | 31,375 | 31,375 | |||
Proceeds from issuance of equity to minority shareholders | 6,050 | 6,050 | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (840) | (840) | |||
Non controlling interest period increase (decrease) from translation and other | $ (538) | (538) | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.37 | ||||
Net Income (Loss) Attributable to Parent | $ 104,930 | 104,930 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | (263) | (263) | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 104,667 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 76,795 | 76,795 | |||
Treasury Stock, Shares, Acquired | (25) | ||||
Payments for Repurchase of Common Stock | (2,454) | (1,785) | $ (669) | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 19 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 6,116 | $ 6,116 | |||
Dividends, Common Stock, Cash | (31,375) | (31,375) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,396,066 | ||||
Stockholders' Equity Attributable to Parent | (148,922) | 1,544,495 | $ 1,987,107 | ||
Noncontrolling interest | 13,386 | ||||
Shares, Issued | 84,791 | ||||
Stockholders' Equity Attributable to Parent | (148,922) | 1,544,495 | $ 1,987,107 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 13,386 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,406,724 | 12,848 | (235,463) | 1,647,175 | $ 1,982,164 |
Stockholders' Equity Attributable to Parent | 3,393,876 | ||||
Noncontrolling interest | 12,848 | ||||
Shares, Issued | 84,924 | ||||
Stockholders' Equity Attributable to Parent | 3,393,876 | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | 12,848 | ||||
Net Income (Loss) Attributable to Parent | 308,549 | 308,549 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 171 | 171 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 308,720 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 233,077 | 233,077 | |||
Treasury Stock, Shares, Acquired | 121 | ||||
Payments for Repurchase of Common Stock | 14,560 | (16,505) | $ 31,065 | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 534 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 45,744 | $ 45,744 | |||
Dividends, Common Stock, Cash | 99,696 | 99,696 | |||
Proceeds from issuance of equity to minority shareholders | 2,258 | 2,258 | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (627) | (627) | |||
Payments for Repurchase of Other Equity | (3,552) | (3,552) | |||
Non controlling interest period increase (decrease) from translation and other | $ 104 | 104 | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.17 | ||||
Net Income (Loss) Attributable to Parent | $ 308,549 | 308,549 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 171 | 171 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 308,720 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 233,077 | 233,077 | |||
Treasury Stock, Shares, Acquired | (121) | ||||
Payments for Repurchase of Common Stock | (14,560) | 16,505 | $ (31,065) | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 534 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 45,744 | $ 45,744 | |||
Dividends, Common Stock, Cash | (99,696) | (99,696) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,662,455 | 15,310 | (130,613) | 1,786,878 | $ 1,990,880 |
Shares, Issued | 85,251 | ||||
Net Income (Loss) Attributable to Parent | 114,501 | 114,501 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 87 | 87 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 114,588 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 128,227 | 128,227 | |||
Treasury Stock, Shares, Acquired | 9 | ||||
Payments for Repurchase of Common Stock | 127 | (5,290) | $ 5,417 | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 95 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 11,380 | $ 11,380 | |||
Dividends, Common Stock, Cash | 34,136 | 34,136 | |||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (627) | (627) | |||
Payments for Repurchase of Other Equity | 3,552 | 3,552 | |||
Non controlling interest period increase (decrease) from translation and other | $ (16) | (16) | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.40 | ||||
Net Income (Loss) Attributable to Parent | $ 114,501 | 114,501 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 87 | 87 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 114,588 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 128,227 | 128,227 | |||
Treasury Stock, Shares, Acquired | (9) | ||||
Payments for Repurchase of Common Stock | (127) | 5,290 | $ (5,417) | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 95 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | 11,380 | $ 11,380 | |||
Dividends, Common Stock, Cash | (34,136) | (34,136) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,878,192 | ||||
Stockholders' Equity Attributable to Parent | 3,866,990 | (2,386) | 1,872,533 | $ 1,996,843 | |
Noncontrolling interest | 11,202 | 11,202 | |||
Shares, Issued | 85,337 | ||||
Stockholders' Equity Attributable to Parent | 3,866,990 | $ (2,386) | $ 1,872,533 | $ 1,996,843 | |
Stockholders' Equity Attributable to Noncontrolling Interest | $ 11,202 | $ 11,202 |
Nature of Operations and Summary of Significant Accounting Policies(Notes) |
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Notes To Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Nature of Operations STERIS plc is a leading provider of infection prevention and other procedural products and services. Our MISSION IS TO HELP OUR CUSTOMERS CREATE A HEALTHIER AND SAFER WORLD by providing innovative healthcare and life science product and service solutions around the globe. We offer our Customers a unique mix of innovative consumable products, such as detergents, gastrointestinal ("GI") endoscopy accessories, barrier product solutions, and other products and services, including: equipment installation and maintenance, microbial reduction of medical devices, instrument and scope repair solutions, laboratory testing services, on-site and off-site reprocessing, and capital equipment products, such as sterilizers and surgical tables, and connectivity solutions such as operating room (“OR”) integration. Our fiscal year ends on March 31. References in this Quarterly Report to a particular “year” or “year-end” mean our fiscal year. The significant accounting policies applied in preparing the accompanying consolidated financial statements of the Company are summarized below: Interim Financial Statements We prepared the accompanying unaudited consolidated financial statements of the Company according to accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. This means that they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Our unaudited interim consolidated financial statements contain all material adjustments (including normal recurring accruals and adjustments) management believes are necessary to fairly state our financial condition, results of operations, and cash flows for the periods presented. These interim consolidated financial statements should be read together with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended March 31, 2020 dated May 29, 2020. The Consolidated Balance Sheet at March 31, 2020 was derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Principles of Consolidation We use the consolidation method to report our investment in our subsidiaries. Therefore, the accompanying consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. We eliminate inter-company accounts and transactions when we consolidate these accounts. Investments in equity of unconsolidated affiliates, over which the Company has significant influence, but not control, over the financial and operating polices, are accounted for primarily using the equity method. These investments are immaterial to the Company's Consolidated Financial Statements. Use of Estimates We make certain estimates and assumptions when preparing financial statements according to U.S. GAAP that affect the reported amounts of assets and liabilities at the financial statement dates and the reported amounts of revenues and expenses during the periods presented. These estimates and assumptions involve judgments with respect to many factors that are difficult to predict and are beyond our control. Actual results could be materially different from these estimates. We revise the estimates and assumptions as new information becomes available. This means that operating results for the three and nine month periods ended December 31, 2020 are not necessarily indicative of results that may be expected for future quarters or for the full fiscal year ending March 31, 2021. 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. At the time of adoption, certain of our capital equipment contracts were comprised of a single integrated performance obligation, which resulted in the deferral of the corresponding capital equipment revenue and cost of revenues until installation was complete. Since the adoption of the standard, there have been changes made in our selling philosophy, product architecture, and manufacturing processes with respect to this product line, that impact whether the promises to transfer the individual goods or services to the Customer are separately identifiable from other promises in the contract. After review of these changes, we have concluded that these contracts consist of multiple performance obligations that are capable of being distinct and meet the criteria for revenue to be recognized when the Customer obtains control of the asset, which is upon delivery of each performance obligation. Revenues and costs of revenues related to these contracts totaling $14,609 and $7,560, respectively, that had previously been deferred were recognized in our fiscal 2021 first quarter. 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 December 31, 2020, assets related to costs to fulfill a contract were not material to our Consolidated Financial Statements. Refer to Note 9, 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 capital equipment products is deferred until installation is complete if the capital equipment and installation are highly integrated and form a single performance obligation. Service Revenue Within our Healthcare 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 Group Purchasing Organization ("GPO") agreement. For maintenance, repair and installation of capital equipment, revenue is recognized upon completion of the service. Healthcare service revenues also include 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. 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 cancellable 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 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 the first nine months of fiscal 2021, $38,181 of the March 31, 2020 deferred revenue balance was recorded as revenue. During the first nine months of fiscal 2020, $46,744 of the March 31, 2019 deferred revenue balance was recorded as revenue. Refer to Note 6, titled "Additional Consolidated Balance Sheet Information" for Deferred revenue balances. Service Liabilities Payments received in advance of performance for cancellable preventive 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. Refer to Note 6, 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 December 31 2020, the transaction price allocated to remaining performance obligations was approximately $1,014,800. We expect to recognize approximately 50% of the transaction price within one year and approximately 42% beyond one year. The remainder has yet to be scheduled for delivery. Recently Issued Accounting Standards Impacting the Company Recently Issued Accounting Standards Impacting the Company are presented in the following table:
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Business Acquisitions and Divestitures Business Acquisitions and Divestitures (Notes) |
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Business Combination Disclosure | Business Acquisitions and Divestitures Fiscal 2021 On November 18, 2020, we acquired all of the outstanding units and equity of Key Surgical, LLC ("Key Surgical"). Key Surgical is a global provider of sterile processing, operating room and endoscopy consumable products serving hospitals and surgical facilities. Key Surgical is being integrated into our Healthcare segment. The total purchase price of the acquisition was $849,717, net of cash acquired and remains subject to customary working capital adjustments. Acquisition related costs of $10,842 are reported in the selling, general, and administrative expense line of the Consolidated Statements of Income. The purchase price for the acquisition was financed with a combination of cash on hand, credit facility borrowings and proceeds from the issuance of new long-term obligations. Please refer to note 5 titled, "Debt" for more information. The table below summarizes the preliminary allocation of the purchase price to the net assets acquired for the Key Surgical acquisition based on fair values at the acquisition date.
(1) Purchase price allocation is still preliminary as of December 31, 2020, as valuation has not been finalized. (2) Intangible assets resulting from the Key Surgical acquisition may consists of patents, trade names, Customer Relationships, non-compete agreements, and technologies, pending the outcome of the final valuation. In addition to Key Surgical, we also completed two tuck-in acquisitions during the third quarter fiscal 2021, which continued to expand our product and service offerings in the Healthcare segment. The aggregate purchase price associated with these transactions was approximately $20,908, net of cash acquired and including deferred consideration of $1,194. Acquisition related costs are reported in the selling, general, and administrative expense line of the Consolidated Statements of Income and amounts are not material. Purchase price allocations will be finalized within a measurement period not to exceed one year from closing. Fiscal 2020 During the first nine months of fiscal 2020, we completed several tuck-in acquisitions which continued to expand our product and service offerings in the Healthcare and Applied Sterilization Technologies segments. The aggregate purchase price associated with these transactions was approximately $117,259, net of cash acquired and including deferred consideration of $894. Acquisition related costs are reported in the selling, general, and administrative expense line of the Consolidated Statements of Income and amounts are not material. The purchase price for the acquisitions was financed with both cash on hand and with credit facility borrowings. Purchase price allocations were finalized within a measurement period not to exceed one year from closing. Any final adjustments recorded were not material. During the first quarter of fiscal 2020, we sold the operations of our hospital sterilization services business that was located in China. We recorded proceeds of $439, net of cash divested, and recognized a pre-tax loss on the sale of $2,330 in the selling, general and administrative expense line of the Consolidated Statements of Income. The business generated annual revenues of approximately $5,000.
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Inventories, Net (Notes) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, Net | Inventories, Net We use the last-in, first-out (“LIFO”) and first-in, first-out (“FIFO”) cost methods to value inventory. Inventory valued using the LIFO cost method is stated at the lower of cost or market. Inventory valued using the FIFO cost method is stated at the lower of cost or net realizable value. An actual valuation of inventory under the LIFO method is made only at the end of the fiscal year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and are subject to the final fiscal year-end LIFO inventory valuation. Inventory costs include material, labor, and overhead. Inventories, net consisted of the following:
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Property, Plant and Equipment (Notes) |
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Property, Plant and Equipment | 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.
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Debt (Notes) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Indebtedness was as follows:
On November 18, 2020, we entered into a Term Loan Agreement with various financial institutions as lenders, and JPMorgan Chase Bank, N.A., as Administrative Agent (the “Credit Agreement”) providing for a $550,000 Term Loan (the “Term Loan”) in connection with our acquisition of Key Surgical. The proceeds of the Term Loan were used to fund a portion of the purchase price, to prepay and terminate existing indebtedness of Key Surgical and to pay fees and expenses incurred in connection with the Key Surgical acquisition and entry into the Credit Agreement. For more information on the Key Surgical acquisition refer to Note 2 titled, "Business Acquisitions and Divestitures". The Term Loan matures on November 20, 2023. No principal payments are due on the Term Loan for the period ending December 31, 2021. For the period beginning January 1, 2022 through December 31, 2022, quarterly principal payments, each in the amount of 1.25% of the original principal amount of the Term Loan, are due on the last business day of each fiscal quarter. For the period beginning January 1, 2023 through September 30, 2023, quarterly principal payments, each in the amount of 1.875% of the original principal amount of the Term Loan, are due on the last business day of each fiscal quarter. The remaining unpaid principal balance of the Term Loan, together with accrued and unpaid interest thereon, is due and payable on November 20, 2023. The Term Loan bears interest from time to time at either the Base Rate or the Eurocurrency Rate, plus the Applicable Margin, as calculated and defined in the Credit Agreement. The Applicable Margin is determined based on the ratio of Consolidated Total Debt to Consolidated EBITDA, each as defined in the Credit Agreement. Interest on borrowings made at the Base Rate (“Base Rate Advances”) is payable quarterly in arrears and interest on borrowings made at the Eurocurrency Rate (“Eurocurrency Rate Advances”) is payable at the end of the relevant interest period therefor, but in no event less frequently than every three months. There is no premium or penalty for prepayment of Base Rate Advances, but prepayments of Eurocurrency Rate Advances are subject to a breakage fee. All of the lenders under the Credit Agreement are also lenders under our revolving credit agreement dated as of March 23, 2018. Additional information regarding our indebtedness is included in the notes to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2020 dated May 29, 2020.
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Additional Consolidated Balance Sheets Information (Notes) |
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Notes To Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Consolidated Balance Sheets Information | Additional Consolidated Balance Sheet Information Additional information related to our Consolidated Balance Sheets is as follows:
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Income Tax Expense (Notes) |
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Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | Income Tax Expense The Tax Cuts and Jobs Act (the “TCJA”) was enacted on December 22, 2017. The TCJA reduced the U.S. federal corporate income tax rate to 21.0%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign sourced earnings. The Company applied the guidance in Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cut and Jobs Act when accounting for the enactment-date effects of the TCJA. We consider the tax expense recorded for the TCJA to be complete at this time. However, it is possible that additional legislation, regulations and/or guidance may be issued in the future that may result in additional adjustments to the tax expense recorded related to the TCJA. We will continue to monitor and assess the impact of any new developments. The effective income tax rates for the three month periods ended December 31, 2020 and 2019 were 17.8% and 21.9%, respectively. The effective income tax rates for the nine month periods ended December 31, 2020 and 2019 were 18.8% and 18.8%, respectively. The fiscal 2021 effective tax rate for the current quarter decreased when compared to fiscal 2020, primarily due to an increase in favorable discrete items. Income tax expense is provided on an interim basis based upon our estimate of the annual effective income tax rate, adjusted each quarter for discrete items. In determining the estimated annual effective income tax rate, we analyze various factors, including projections of our annual earnings and taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, our ability to use tax credits and net operating loss carry forwards, and available tax planning alternatives. We operate in numerous taxing jurisdictions and are subject to regular examinations by various United States federal, state and local, as well as foreign jurisdictions. We are no longer subject to United States federal examinations for years before fiscal 2016 and, with limited exceptions, we are no longer subject to United States state and local, or non-United States, income tax examinations by tax authorities for years before fiscal 2015. We remain subject to tax authority audits in various jurisdictions wherever we do business. In May 2019, we received two notices of proposed tax adjustment from the U.S. Internal Revenue Service (the “IRS”) regarding the deductibility of interest paid on certain intercompany debt. The notices relate to fiscal years 2016 and 2017. In September 2019, we received another notice of proposed adjustment for the same issue, for the 2018 fiscal year. The IRS adjustments would result in a cumulative tax liability of approximately $40,000. Notices have not been received for subsequent periods. We are contesting the IRS’s assertions. We have not established reserves related to these notices. An unfavorable outcome is not expected to have a material adverse impact on our consolidated financial position but could be material to our consolidated results of operations and cash flows for any one period.
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Contingencies (Notes) |
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Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 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. 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 following portions of our Annual Report on Form 10-K for the year ended March 31, 2020 dated May 29, 2020: Item 1 titled “Business - Information with respect to our Business in General - Government Regulation”, and the “Risk Factors” in Item 1A titled "Product related regulations and claims". 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 non-U.S. 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 7 to our consolidated financial statements titled, “Income Tax Expense” in this Quarterly Report on Form 10-Q.
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Business Segment Information (Notes) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | Business Segment Information We operate and report our financial information in three reportable business segments: Healthcare, Applied Sterilization Technologies and Life Sciences. Non-allocated operating costs that support the entire Company and items not indicative of operating trends are excluded from segment operating income. Prior to April 1, 2020, we operated and reported our financial information in four reportable business segments: Healthcare Products, Healthcare Specialty Services, Life Sciences, and Applied Sterilization Technologies. The Healthcare Products and Healthcare Specialty Services segments were combined and are now reported as one segment, simply called Healthcare, consistent with the way management now operates and views the business. Prior periods have been recast in the financial tables below for comparability. Our Healthcare segment offers infection prevention and procedural solutions for healthcare providers worldwide, including consumable products, equipment maintenance and installation services, and capital equipment. The segment also provides a range of specialty services for healthcare providers including hospital sterilization services and instrument and scope repairs. Our Applied Sterilization Technologies ("AST") segment provides contract sterilization and testing services for medical device and pharmaceutical manufacturers. Our Life Sciences segment designs, manufactures and sells consumable products, equipment maintenance, specialty services and capital equipment primarily to pharmaceutical manufacturers around the world. We disclose a measure of segment income that is consistent with the way management operates and views the business. The accounting policies for reportable segments are the same as those for the consolidated Company. For the three and nine months ended December 31, 2020, revenues from a single Customer did not represent ten percent or more of any reportable segment’s revenues. Additional information regarding our segments is included in our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2020, dated May 29, 2020. Financial information for each of our segments is presented in the following table:
(1) For more information regarding our recent acquisitions and divestitures refer to Note 2 titled" Business Acquisitions and Divestitures" and our Annual Report on Form 10-K for the year ended March 31, 2020, dated May 29, 2020. (2) Acquisition and integration related charges include transaction costs and integration expenses associated with acquisitions. (3) Costs incurred in connection with the Redomiciliation and tax restructuring. (4) COVID-19 incremental costs includes the additional costs attributable to COVID-19 such as enhanced cleaning protocols, personal protective equipment for our employees, event cancellation fees, and payroll costs associated with our response to COVID-19, net of any government subsidies available. (5) For more information regarding our restructuring efforts refer to Note 17 titled, "Restructuring". Additional information regarding our fiscal 2021 and fiscal 2020 revenue is disclosed in the following tables:
Assets include the current and long-lived assets directly attributable to the segment based on the management of the location or on utilization. Certain corporate assets were allocated to the reportable segments based on revenues. Assets attributed to sales and distribution locations are only allocated to the Healthcare and Life Sciences segments. Individual facilities, equipment, and intellectual properties are utilized for production by both the Healthcare and Life Sciences segments at varying levels over time. As a result, an allocation of total assets, capital expenditures, and depreciation and amortization is not meaningful to the individual performance of the Healthcare and Life Sciences segments. Therefore, their respective amounts are reported together.
The fiscal 2021 increase in Healthcare and Life Sciences was primarily due to the acquisition of Key Surgical.
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Shares and Preferred Shares (Notes) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Shares and Preferred Shares Ordinary shares We calculate basic earnings per share based upon the weighted average number of shares outstanding. We calculate diluted earnings per share based upon the weighted average number of shares outstanding plus the dilutive effect of share equivalents calculated using the treasury stock method. The following is a summary of shares and share equivalents outstanding used in the calculations of basic and diluted earnings per share:
Options to purchase the following number of shares were outstanding but excluded from the computation of diluted earnings per share because the combined exercise prices, unamortized fair values, and assumed tax benefits upon exercise were greater than the average market price for the shares during the periods, so including these options would be anti-dilutive:
Additional Authorized Shares The Company has an additional authorized share capital of 50,000,000 preferred shares of $0.001 par value each, plus 25,000 deferred ordinary shares of €1.00 par value each, in order to satisfy minimum statutory capital requirements for all Irish public limited companies.
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Equity |
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Dec. 31, 2020 | |
Equity [Abstract] | |
Treasury Stock | Repurchases of Ordinary Shares On May 7, 2019, our Board of Directors authorized a share repurchase program resulting in a share repurchase authorization of approximately $78,979 (net of taxes, fees and commissions). On July 30, 2019, our Board of Directors approved an increase in the May 7, 2019 authorization of an additional amount of $300,000 (net of taxes, fees and commissions). As of December 31, 2020, there was approximately $333,932 (net of taxes, fees and commissions) of remaining availability under the Board authorized share repurchase program. The share repurchase program has no specified expiration date. Under the authorization, the Company may repurchase its shares from time to time through open market purchases, including 10b5-1 plans. Any share repurchases may be activated, suspended or discontinued at any time. Due to the uncertainty surrounding the COVID-19 pandemic, share repurchases were suspended on April 9, 2020. From the start of fiscal 2021 through April 9, 2020, we repurchased 35,000 of our ordinary shares for the aggregate amount of $5,047 (net of fees and commissions) pursuant to the authorizations. During the first nine months of fiscal 2020, we repurchased 205,059 of our ordinary shares for the aggregate amount of $30,000 (net of fees and commissions) pursuant to the authorizations. During the first nine months of fiscal 2021 we obtained 85,574 of our ordinary shares in the aggregate amount of $9,512 in connection with share based compensation award programs. During the first nine months of fiscal 2020, we obtained 100,124 of our ordinary shares in the aggregate amount of $10,318 in connection with share based compensation award programs.
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Share-Based Compensation (Notes) |
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Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | 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 the Compensation and Organizational Development 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 December 31, 2020, 3,592,261 ordinary shares remained available for grant under the long-term incentive plan. The fair value of stock option 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 the first nine months of fiscal 2021 and 2020:
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 2.78% and 2.77% was applied in fiscal 2021 and 2020, 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 736,801 of the non-vested stock options outstanding at December 31, 2020 will ultimately vest. The aggregate intrinsic value in the table above represents the total pre-tax difference between the $189.54 closing price of our ordinary shares on December 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 ordinary shares. The total intrinsic value of stock options exercised during the first nine months of fiscal 2021 and fiscal 2020 was $36,850 and $36,939, respectively. Net cash proceeds from the exercise of stock options were $26,018 and $22,958 for the first nine months of fiscal 2021 and fiscal 2020, respectively. The weighted average grant date fair value of stock option grants was $27.66 and $23.52 for the first nine months of fiscal 2021 and fiscal 2020, 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 December 31, 2020 and 2019 was $491 and $629, respectively. A summary of the non-vested restricted share and share unit 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 the first nine months of fiscal 2021 at the time of grant was $14,764. As of December 31, 2020, there was a total of $51,583 in unrecognized compensation cost related to non-vested share-based compensation granted under our share-based compensation plan. We expect to recognize the cost over a weighted average period of 2.1 years.
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Financial and Other Guarantees(Notes) |
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Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||
Product Warranty Disclosure | Financial and Other Guarantees We generally offer a limited parts and labor warranty on capital equipment. The specific terms and conditions of those warranties vary depending on the product sold and the countries where we conduct business. We record a liability for the estimated cost of product warranties at the time product revenues are recognized. The amounts we expect to incur on behalf of our Customers for the future estimated cost of these warranties are recorded as a current liability on the accompanying Consolidated Balance Sheets. Factors that affect the amount of our warranty liability include the number and type of installed units, historical and anticipated rates of product failures, and material and service costs per claim. We periodically assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. Changes in our warranty liability during the first nine months of fiscal 2021 were as follows:
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Derivatives and Hedging (Notes) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure | Derivatives and HedgingFrom time to time, we enter into forward contracts to hedge potential foreign currency gains and losses that arise from transactions denominated in foreign currencies, including inter-company transactions. We may also enter into commodity swap contracts to hedge price changes in nickel that impact raw materials included in our cost of revenues. During the third quarter of fiscal 2021, we also held forward foreign currency contracts to hedge a portion of our expected non-U.S. dollar denominated earnings against our reporting currency, the U.S. dollar. These foreign currency exchange contracts will mature during fiscal 2021. We did not elect hedge accounting for these forward foreign currency contracts; however, we may seek to apply hedge accounting in future scenarios. We do not use derivative financial instruments for speculative purposes. None of these contracts are designated as hedging instruments and do not receive hedge accounting treatment; therefore, changes in their fair value are not deferred but are recognized immediately in the Consolidated Statements of Income. At December 31, 2020, we held foreign currency forward contracts to buy 30.5 million British pounds, 35.0 million Mexican pesos and 2.2 million Canadian dollars; and to sell 4.0 million euros. At December 31, 2020 we held commodity swap contracts to buy 946.8 thousand pounds of nickel.
The following table presents the impact of derivative instruments and their location within the Consolidated Statements of Income:
Additionally, we hold our debt in multiple currencies to fund our operations and investments in certain subsidiaries. We designate portions of foreign currency denominated intercompany loans as hedges of portions of net investments in foreign operations. Net debt designated as non-derivative net investment hedging instruments totaled $51,323 at December 31, 2020. These hedges are designed to be fully effective and any associated gain or loss is recognized in Accumulated Other Comprehensive Income and will be reclassified to income in the same period when a gain or loss related to the net investment in the foreign operation is included in income.
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Fair Value Measurements (Notes) |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures | . Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. We estimate the fair value of financial assets and liabilities using available market information and generally accepted valuation methodologies. The inputs used to measure fair value are classified into three tiers. These tiers include Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring the entity to develop its own assumptions. The following table shows the fair value of our financial assets and liabilities at December 31, 2020 and March 31, 2020:
(1) The fair values of forward and swap contracts are based on period-end forward rates and reflect the value of the amount that we would pay or receive for the contracts involving the same notional amounts and maturity dates. (2) We maintain a frozen domestic non-qualified deferred compensation plan covering certain employees, which allows for the deferral of payment of previously earned compensation for an employee-specified term or until retirement or termination. Amounts deferred can be allocated to various hypothetical investment options (compensation deferrals have been frozen under the plan). We hold investments to satisfy the future obligations of the plan. Employees who made deferrals are entitled to receive distributions of their hypothetical account balances (amounts deferred, together with earnings (losses)). We also hold an investment in the common stock of Servizi Italia, S.p.A, a leading provider of integrated linen washing and outsourced sterile processing services to hospital Customers. Changes in the fair value of these investments are recorded in the "Interest income and miscellaneous expense line" of the Consolidated Statement of Income. During the third quarter and first nine months of fiscal 2021, we recorded gains of $210 and $138, respectively, related to these investments. During the third quarter and first nine months of fiscal 2020, we recorded gains (losses) of $636 and $(1,843), respectively, related to these investments. (3) We estimate the fair value of our long-term debt using discounted cash flow analyses, based on our current incremental borrowing rates for similar types of borrowing arrangements. (4) Contingent consideration obligations arise from business acquisitions. The fair values are based on discounted cash flow analyses reflecting the possible achievement of specified performance measures or events and captures the contractual nature of the contingencies, commercial risk, and the time value of money. Contingent consideration obligations are classified in the consolidated balance sheets as accrued expense (short-term) and other liabilities (long-term), as appropriate based on the contractual payment dates. The changes in Level 3 assets and liabilities measured at fair value on a recurring basis at December 31, 2020 are summarized as follows:
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Reclassifications out of Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Notes) |
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Reclassifications out of AOCI [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amounts in Accumulated Other Comprehensive Income (Loss) are presented net of the related tax. Currency Translation is not adjusted for income taxes. Changes in our Accumulated Other Comprehensive Income (Loss) balances, net of tax, for the three months ended December 31, 2020 and 2019 were as follows:
(1) The amortization (gain) of defined benefit pension items is reported in the Interest income and miscellaneous expense line of our Consolidated Statements of Income. (2) 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.
(1) The amortization (gain) of defined benefit pension items is reported in the Interest income and miscellaneous expense line of our Consolidated Statements of Income. (2) 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.
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Loans Receivable (Notes) |
9 Months Ended |
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Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Loans Receivable In connection with an equity investment of $4,955, we agreed to provide a credit facility of up to approximately $11,606 for a term of up to seven years ending in 2025. The loan carries an interest rate of 4% compounded daily and payable annually. Outstanding principal borrowings under the agreement totaled $10,326 at December 31, 2020 and $7,084 at March 31, 2020. On January 4, 2021, we purchased the remaining outstanding shares of this equity investment. The acquisition agreement included the capitalization of the outstanding principal and interest borrowings of this credit facility in the amount of $10,536. For more information refer to Note 20, titled, "Subsequent Events". 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 principal borrowings under the agreement totaled $8,966 (or €7,300) at December 31, 2020 and $8,072 (or €7,300) at March 31, 2020. 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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Restructuring (Notes) |
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Dec. 31, 2020 | |
Restructuring [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | 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 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 $43,961 related to these restructuring actions, of which $31,660 was recorded as restructuring expenses and $12,301 was recorded in cost of revenues, with a total of $34,062, $7,568 and $668 related to the Healthcare, Applied Sterilization Technologies and Life Sciences segments, respectively. Corporate related restructuring charges were $1,663. Additional restructuring expenses related to this plan are not expected to be material to our results of operations. 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 remaining liability balances at December 31, 2020 and March 31, 2020 are not material. For more information relating to our restructuring efforts, please refer to our Annual Report on Form 10-K for the year ended March 31, 2020 dated May 29, 2020.
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Unusual or Infrequently Occurring Items |
9 Months Ended |
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Dec. 31, 2020 | |
Unusual or Infrequent Items, or Both [Abstract] | |
COVID-19 Pandemic | COVID-19 PandemicThe COVID-19 pandemic began to impact our business late in fiscal 2020. The pandemic and related public health recommendations and mandated precautions to mitigate the spread of COVID-19, including deferral of medical procedures and treatments and shelter-in-place orders or similar measures, have negatively affected and are expected to continue to negatively affect some of our operations, which may impact our financial position and cash flows. We have experienced and expect to continue to experience unpredictable fluctuations in demand for certain of our products and services, including some products and services that are experiencing increased demand. To date, we do not believe that the COVID-19 pandemic has had a significant impact on our operations, as we have been able to continue to operate our manufacturing facilities and meet the demand for essential products and services of our Customers. In response to the pandemic, we have implemented several measures that we believe will help us to protect the health and safety of our employees, preserve liquidity and enhance our financial flexibility. For our employees, we allowed employees to work remotely when possible and have implemented additional safety measures in compliance with applicable regulations to allow personnel to continue to work in our facilities. We suspended all non-essential travel and enacted a temporary hiring freeze on certain positions. To manage liquidity, we have suspended our stock repurchase program and deferred certain planned capital expenditures; however, we have continued to invest in expansion projects as planned. We do not believe that these actions will negatively impact our long-term ability to generate revenues or meet existing and future financial obligations. While we have been impacted and expect this situation to continue to have an impact on our business, the full impact to our results of operations and financial position cannot be reasonably estimated at this time. For additional information and our risk factors related to the COVID-19 pandemic, please refer to our Annual Report on Form 10-K for the year ended March 31, 2020 dated May 29, 2020. |
Subsequent Events |
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Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 12, 2021, we announced the signing of a definitive agreement to acquire Cantel Medical Corp. (NYSE: CMD "Cantel"), through a U.S. subsidiary. Cantel is a global provider of infection prevention products and services primarily to endoscopy and dental Customers. Under the terms of the agreement, we will acquire Cantel in a cash and stock transaction valued at $84.66 per Cantel common share, based on STERIS’s closing share price of $200.46 on January 11, 2021. This represents a total equity value of approximately $3.6 billion and a total enterprise value of approximately $4.6 billion. The agreement has been unanimously approved by the Boards of Directors of both companies. The acquisition is subject to certain closing conditions, including Cantel shareholder vote and regulatory approvals. We expect to fund the cash portion of the transaction consideration and repay or otherwise satisfy a significant amount of Cantel’s existing debt obligations with approximately $2.0 billion of new debt. We have fully committed bridge financing and are working with our lenders and advisors on a long-term plan. On January 4, 2021, we purchased the remaining outstanding shares of an equity investment that we made in fiscal 2019, for approximately $44,255, subject to any working capital adjustments. In addition to the purchase price, the acquisition agreement included the capitalization of the outstanding principal and accumulated interest under a credit facility in the amount of $10,536. For more information refer to Note 18 titled, "Loans Receivable". We plan to integrate the business into our Applied Sterilization Technologies business segment and to fund the transaction through a combination of cash on hand and credit facility borrowings.
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Nature of Operations and Summary of Significant Accounting Policies Accounting Policies (Policies) |
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Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation We use the consolidation method to report our investment in our subsidiaries. Therefore, the accompanying consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. We eliminate inter-company accounts and transactions when we consolidate these accounts. Investments in equity of unconsolidated affiliates, over which the Company has significant influence, but not control, over the financial and operating polices, are accounted for primarily using the equity method. These investments are immaterial to the Company's Consolidated Financial Statements.
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Use of Estimates | Use of Estimates We make certain estimates and assumptions when preparing financial statements according to U.S. GAAP that affect the reported amounts of assets and liabilities at the financial statement dates and the reported amounts of revenues and expenses during the periods presented. These estimates and assumptions involve judgments with respect to many factors that are difficult to predict and are beyond our control. Actual results could be materially different from these estimates. We revise the estimates and assumptions as new information becomes available. This means that operating results for the three and nine month periods ended December 31, 2020 are not necessarily indicative of results that may be expected for future quarters or for the full fiscal year ending March 31, 2021.
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Revenue | 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. At the time of adoption, certain of our capital equipment contracts were comprised of a single integrated performance obligation, which resulted in the deferral of the corresponding capital equipment revenue and cost of revenues until installation was complete. Since the adoption of the standard, there have been changes made in our selling philosophy, product architecture, and manufacturing processes with respect to this product line, that impact whether the promises to transfer the individual goods or services to the Customer are separately identifiable from other promises in the contract. After review of these changes, we have concluded that these contracts consist of multiple performance obligations that are capable of being distinct and meet the criteria for revenue to be recognized when the Customer obtains control of the asset, which is upon delivery of each performance obligation. Revenues and costs of revenues related to these contracts totaling $14,609 and $7,560, respectively, that had previously been deferred were recognized in our fiscal 2021 first quarter. 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 December 31, 2020, assets related to costs to fulfill a contract were not material to our Consolidated Financial Statements. Refer to Note 9, 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 capital equipment products is deferred until installation is complete if the capital equipment and installation are highly integrated and form a single performance obligation. Service Revenue Within our Healthcare 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 Group Purchasing Organization ("GPO") agreement. For maintenance, repair and installation of capital equipment, revenue is recognized upon completion of the service. Healthcare service revenues also include 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. 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 cancellable 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 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 the first nine months of fiscal 2021, $38,181 of the March 31, 2020 deferred revenue balance was recorded as revenue. During the first nine months of fiscal 2020, $46,744 of the March 31, 2019 deferred revenue balance was recorded as revenue. Refer to Note 6, titled "Additional Consolidated Balance Sheet Information" for Deferred revenue balances. Service Liabilities Payments received in advance of performance for cancellable preventive 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. Refer to Note 6, 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 December 31 2020, the transaction price allocated to remaining performance obligations was approximately $1,014,800. We expect to recognize approximately 50% of the transaction price within one year and approximately 42% beyond one year. The remainder has yet to be scheduled for delivery
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Accounting Policies (Tables) |
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncement, Early Adoption | Recently Issued Accounting Standards Impacting the Company are presented in the following table:
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Business Acquisitions and Divestitures Business Acquisitions and Divestitures (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisitions and Divestitures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The table below summarizes the preliminary allocation of the purchase price to the net assets acquired for the Key Surgical acquisition based on fair values at the acquisition date.
(1) Purchase price allocation is still preliminary as of December 31, 2020, as valuation has not been finalized. (2) Intangible assets resulting from the Key Surgical acquisition may consists of patents, trade names, Customer Relationships, non-compete agreements, and technologies, pending the outcome of the final valuation
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Inventories, Net Inventories, Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventory costs include material, labor, and overhead. Inventories, net consisted of the following:
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Additional Consolidated Balance Sheets Information Additional Consolidated Balance Sheets Information (Tables) |
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Notes To Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional Consolidated Balance Sheets Information | Additional Consolidated Balance Sheet Information Additional information related to our Consolidated Balance Sheets is as follows:
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Schedule of Accrued Liabilities [Table Text Block] | Additional information related to our Consolidated Balance Sheets is as follows:
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Business Segment Information Business Segment Information (Tables) |
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Financial information for each of our segments is presented in the following table:
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Revenue from External Customers by Products and Services [Table Text Block] |
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Revenue from External Customers by Geographic Areas [Table Text Block] |
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Reconciliation of Assets from Segment to Consolidated | Assets include the current and long-lived assets directly attributable to the segment based on the management of the location or on utilization. Certain corporate assets were allocated to the reportable segments based on revenues. Assets attributed to sales and distribution locations are only allocated to the Healthcare and Life Sciences segments. Individual facilities, equipment, and intellectual properties are utilized for production by both the Healthcare and Life Sciences segments at varying levels over time. As a result, an allocation of total assets, capital expenditures, and depreciation and amortization is not meaningful to the individual performance of the Healthcare and Life Sciences segments. Therefore, their respective amounts are reported together.
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Shares and Preferred Shares Shares and Preferred Shares (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares [Table Text Block] |
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Options to purchase the following number of shares were outstanding but excluded from the computation of diluted earnings per share because the combined exercise prices, unamortized fair values, and assumed tax benefits upon exercise were greater than the average market price for the shares during the periods, so including these options would be anti-dilutive:
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Share-Based Compensation Share-Based Compensation (Tables) |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used | The following weighted-average assumptions were used for options granted during the first nine months of fiscal 2021 and 2020:
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Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding | A summary of share option activity is as follows:
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Share-based Compensation Arrangements by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest | A summary of the non-vested restricted share and share unit activity is presented below:
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Financial and Other Guarantees Financial and Other Gurantees (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Product Warranty Liability | Changes in our warranty liability during the first nine months of fiscal 2021 were as follows:
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Derivatives and Hedging Derivatives and Hedging (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [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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Fair Value Measurements Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis at December 31, 2020 are summarized as follows:
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Fair Value Option, Disclosures | The following table shows the fair value of our financial assets and liabilities at December 31, 2020 and March 31, 2020:
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Reclassifications out of Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Reclassifications out of AOCI [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in our Accumulated Other Comprehensive Income (Loss) balances, net of tax, for the three months ended December 31, 2020 and 2019 were as follows:
(1) The amortization (gain) of defined benefit pension items is reported in the Interest income and miscellaneous expense line of our Consolidated Statements of Income. (2) 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.
(1) The amortization (gain) of defined benefit pension items is reported in the Interest income and miscellaneous expense line of our Consolidated Statements of Income. (2) 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.
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Restructuring (Tables) |
9 Months Ended |
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Dec. 31, 2020 | |
Restructuring [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | 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 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 $43,961 related to these restructuring actions, of which $31,660 was recorded as restructuring expenses and $12,301 was recorded in cost of revenues, with a total of $34,062, $7,568 and $668 related to the Healthcare, Applied Sterilization Technologies and Life Sciences segments, respectively. Corporate related restructuring charges were $1,663. Additional restructuring expenses related to this plan are not expected to be material to our results of operations. Liabilities related to restructuring activities are recorded as current liabilities on the accompanying Consolidated Balance Sheets within “Accrued payroll and other related liabilities” and “Accrued expenses and other.” The remaining liability balances at December 31, 2020 and March 31, 2020 are not material. For more information relating to our restructuring efforts, please refer to our Annual Report on Form 10-K for the year ended March 31, 2020 dated May 29, 2020.
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Nature of Operations and Summary of Significant Accounting Policies Revenue Table (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Jun. 30, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
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Revenue, Remaining Performance Obligation, Amount | $ 1,014,800 | ||
Deferred Revenues, Amount recognized in period from certain capital contracts | $ 14,609 | ||
Deferred Cost of Revenues, Amount recognized in period from certain capital contracts | $ 7,560 | ||
Deferred Revenue, Revenue Recognized | $ 38,181 | $ 46,744 | |
Expected recognition within the next year [Member] | |||
Revenue, Remaining Performance Obligation, Percentage | 50.00% | ||
Expected recognition beyond the next year [Member] [Member] | |||
Revenue, Remaining Performance Obligation, Percentage | 42.00% |
Business Acquisitions and Divestitures Fiscal 2018 Acquisitions (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Mar. 31, 2020 |
|||
Business Acquisition [Line Items] | |||||||
Contingent consideration | $ 17,931 | $ 17,931 | $ 15,988 | ||||
Deferred consideration | 1,194 | $ 894 | 1,194 | $ 894 | |||
Proceeds from Sales of Business, Affiliate and Productive Assets | 439 | ||||||
Gain (Loss) on Disposition of Business | [1] | $ 0 | $ (76) | (5) | (2,553) | ||
Approximate annual revenues of divested entity | 5,000 | ||||||
Business Combination, Acquisition Related Costs | $ 10,842 | ||||||
Business Acquisition, Date of Acquisition [Abstract] | |||||||
Business Acquisition, Effective Date of Acquisition | Nov. 18, 2020 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 869,431 | 107,166 | |||||
Series of Individually Immaterial Business Acquisitions | |||||||
Business Acquisition, Date of Acquisition [Abstract] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | 20,908 | $ 117,259 | |||||
Key Surgical [Domain] | |||||||
Business Acquisition, Date of Acquisition [Abstract] | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 849,717 | ||||||
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Business Acquisitions and Divestitures Fiscal 2017 Acquisitions (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Mar. 31, 2020 |
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Business Acquisition [Line Items] | |||||||
Revenues | $ 808,924 | $ 774,261 | $ 2,233,988 | $ 2,207,904 | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Cash | [1] | 12,615 | 12,615 | ||||
Accounts receivable | [1] | 13,967 | 13,967 | ||||
Inventory | [1] | 22,167 | 22,167 | ||||
Property, plant, and equipment | [1] | 6,032 | 6,032 | ||||
Other assets | [1] | 6,680 | 6,680 | ||||
Goodwill | 2,926,551 | 2,926,551 | $ 2,356,085 | ||||
Total Assets | [1] | 975,709 | 975,709 | ||||
Current liabilities | [1] | 17,683 | 17,683 | ||||
Non-current liabilities | [1] | 95,694 | 95,694 | ||||
Total Liabilities | [1] | 113,377 | 113,377 | ||||
Net Assets | [1] | $ 862,332 | $ 862,332 | ||||
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Business Acquisitions and Divestitures Fiscal 2017 Divestitures (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Revenues | $ 808,924 | $ 774,261 | $ 2,233,988 | $ 2,207,904 | ||
Pre-tax gain or loss on sale of business | [1] | 0 | 76 | 5 | 2,553 | |
Deferred consideration | $ 1,194 | $ 894 | $ 1,194 | $ 894 | ||
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Business Acquisitions and Divestitures Revenues by Type (Details) $ in Thousands |
9 Months Ended |
---|---|
Dec. 31, 2019
USD ($)
| |
Business Combinations [Abstract] | |
Loss on sale of HSS China Operations | $ 2,330 |
Business Acquisitions and Divestitures (Details) 2020 $ in Thousands |
Dec. 31, 2020
USD ($)
|
[1] | ||||
---|---|---|---|---|---|---|
Business Acquisitions and Divestitures [Abstract] | ||||||
Cash | $ 12,615 | |||||
Accounts receivable | 13,967 | |||||
Inventory | 22,167 | |||||
Property, plant, and equipment | 6,032 | |||||
Other assets | 6,680 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 491,009 | [2] | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 423,239 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 975,709 | |||||
Current liabilities | (17,683) | |||||
Non-current liabilities | (95,694) | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (113,377) | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 862,332 | |||||
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Inventories, Net Inventories, Net (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Raw materials | $ 102,212 | $ 94,321 |
Work in process | 42,109 | 35,643 |
Finished goods | 185,762 | 151,381 |
LIFO reserve | (18,753) | (16,937) |
Reserve for excess and obsolete inventory | (17,198) | (16,149) |
Inventories, net | $ 294,132 | $ 248,259 |
Property, Plant and Equipment Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
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Dec. 31, 2020 |
Mar. 31, 2020 |
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Property, Plant and Equipment [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.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Land and land improvements | [1] | $ 69,591 | $ 65,994 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Buildings and leasehold improvements | 567,113 | 531,267 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Machinery and equipment | 753,851 | 682,488 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Radioisotope | 567,353 | 508,593 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Construction in progress | [1] | 211,183 | 159,731 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total property, plant, and equipment | 2,355,512 | 2,129,185 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less: accumulated depreciation and depletion | (1,128,617) | (1,017,330) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant, and equipment, net | 1,226,895 | 1,111,855 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized Computer Hardware/Software, Gross | $ 186,421 | $ 181,112 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Debt Debt (Details) - USD ($) $ in Thousands |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 |
Mar. 31, 2020 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Indebtedness was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private Placement | $ 864,425 | $ 878,409 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred financing costs | 5,844 | 3,337 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Agreement | 304,618 | 275,449 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Payable to Bank | 550,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total long term debt | $ 1,713,199 | $ 1,150,521 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal repayment rate year 1 | 1.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term loan quarterly principal repayment rate year 2023 | 1.875% |
Additional Consolidated Balance Sheets Information Additional Consolidated Balance Sheets Information (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|
Accrued payroll and other related liabilities: | ||
Compensation and related items | $ 67,883 | $ 42,205 |
Accrued vacation/paid time off | 14,663 | 9,917 |
Accrued bonuses | 51,100 | 53,041 |
Accrued employee commissions | 14,591 | 19,298 |
Other postretirement benefit obligations-current portion | 1,488 | 1,488 |
Other employee benefit plans obligations-current portion | 2,606 | 2,312 |
Accrued expenses and other: | ||
Deferred revenues | 44,308 | 53,299 |
Service liabilities | 38,948 | 47,505 |
Self-insured risk reserves-current portion | 9,711 | 7,342 |
Accrued dealer commissions | 25,174 | 15,827 |
Accrued warranty | 6,796 | 7,381 |
Asset retirement obligation-current portion | 1,202 | 2,671 |
Other | 58,494 | 58,158 |
Total accrued expenses and other | 184,633 | 192,183 |
Other liabilities: | ||
Self-insured risk reserves-long-term portion | 17,452 | 17,452 |
Other postretirement benefit obligations-long-term portion | 8,587 | 9,880 |
Defined benefit pension plans obligations-long-term portion | 10,152 | 10,987 |
Other employee benefit plans obligations-long-term portion | 2,341 | 2,333 |
Accrued long-term income taxes | 10,841 | 11,959 |
Asset retirement obligation-long-term portion | 12,379 | 9,843 |
Long-term liabilities, other | 27,512 | 27,892 |
Other Liabilities, Noncurrent | 89,264 | 90,346 |
Employee-related Liabilities, Current | $ 152,331 | $ 128,261 |
Income Tax Expense Income Tax Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Effective Income Tax Rate, Continuing Operations | 17.80% | 21.90% | 18.80% | 18.80% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||
Uncertain Tax Liability Resulting From IRS Notice | $ 40,000 | $ 40,000 |
Business Segment Information Business Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Mar. 31, 2020 |
|||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | $ 808,924 | $ 774,261 | $ 2,233,988 | $ 2,207,904 | |||||||||||
Segment operating income | 147,030 | 142,387 | 402,294 | 379,208 | |||||||||||
Restructuring Charges | [1] | 20 | 385 | 110 | 3,328 | ||||||||||
Amortization of acquired intangible assets | [2] | 23,194 | 17,508 | 62,649 | 53,407 | ||||||||||
Business Combination, Acquisition Related Costs | [3] | 11,563 | 1,721 | 13,984 | 5,585 | ||||||||||
loss (gain) on fair value contingent consideration adjustments | (500) | 0 | (500) | 0 | |||||||||||
Impact of TCJA | [4] | 296 | 487 | 850 | 3,274 | ||||||||||
Net loss on divestiture of businesses | [2] | 0 | 76 | 5 | 2,553 | ||||||||||
Amortization of inventory and property step-up to fair value | [2] | 1,784 | 602 | 3,101 | 1,783 | ||||||||||
COVID-19 incremental costs | [5] | 7,251 | 0 | 20,460 | 0 | ||||||||||
Assets | 6,580,780 | 6,580,780 | $ 5,425,582 | ||||||||||||
Life Sciences | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 110,800 | 108,773 | 343,370 | 304,208 | |||||||||||
Segment operating income | 41,541 | 37,731 | 136,435 | 103,085 | |||||||||||
Applied Sterilization Technologies | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 176,462 | 156,266 | 498,371 | 463,459 | |||||||||||
Segment operating income | 81,626 | 65,468 | 222,416 | 198,889 | |||||||||||
Assets | 2,985,027 | 2,985,027 | 2,720,205 | ||||||||||||
Segment operating income | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 808,924 | 774,261 | 2,233,988 | 2,207,904 | |||||||||||
Segment operating income | 190,638 | 163,166 | 502,953 | 449,138 | |||||||||||
Healthcare [Member] [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 521,662 | 509,222 | 1,392,247 | 1,440,237 | |||||||||||
Segment operating income | 115,412 | 105,227 | 302,565 | 298,777 | |||||||||||
Healthcare and Life Sciences [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Assets | 3,595,753 | 3,595,753 | $ 2,705,377 | ||||||||||||
Corporate Segment [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Segment operating income | (47,941) | (45,260) | (158,463) | (151,613) | |||||||||||
Other foreign locations [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 216,211 | 195,633 | 568,655 | 549,744 | |||||||||||
UNITED STATES | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 572,397 | 562,502 | 1,613,554 | 1,611,755 | |||||||||||
UNITED KINGDOM | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 20,316 | 16,126 | 51,779 | 46,405 | |||||||||||
Consumable revenues [Member] | Life Sciences | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 49,627 | 46,370 | 164,262 | 132,939 | |||||||||||
Consumable revenues [Member] | Healthcare [Member] [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 148,839 | 130,255 | 355,390 | 362,370 | |||||||||||
Sales Revenue, Services, Net [Member] | Life Sciences | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 32,180 | 30,641 | 90,444 | 86,276 | |||||||||||
Sales Revenue, Services, Net [Member] | Healthcare [Member] [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 224,968 | 223,559 | 629,247 | 648,973 | |||||||||||
Capital equipment revenues [Member] | Life Sciences | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 28,993 | 31,762 | 88,664 | 84,993 | |||||||||||
Capital equipment revenues [Member] | Healthcare [Member] [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | $ 147,855 | $ 155,408 | $ 407,610 | $ 428,894 | |||||||||||
|
Shares and Preferred Shares Ordinary Shares (Details) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2020
$ / shares
shares
|
Dec. 31, 2019
shares
|
Dec. 31, 2020
$ / shares
shares
|
Dec. 31, 2019
shares
|
Dec. 31, 2020
EUR (€)
shares
|
Mar. 31, 2020
$ / shares
|
|
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||||
Weighted average shares outstanding - basic | 85,330,000 | 84,788,000 | 85,153,000 | 84,740,000 | ||
Dilutive effect of share equivalents | 702,000 | 840,000 | 698,000 | 890,000 | ||
Weighted average shares outstanding and share equivalents - diluted | 86,032,000 | 85,628,000 | 85,851,000 | 85,630,000 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Preferred Stock, Shares Authorized | 50,000,000 | |||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | ||||
Deferred Ordinary Shares | 25,000 | |||||
Employee share option | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Number of share options that are antidilutive | 278,000 | 347,000 | 370,000 | 270,000 | ||
Euro Member Countries, Euro | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Par Value (Euros) of Deferred Ordinary Shares | € | € 1.00 |
Shares and Preferred Shares Preferred Shares (Details) |
Dec. 31, 2020
$ / shares
|
---|---|
Class of Stock [Line Items] | |
Preferred shares, par value | $ 0.001 |
Repurchases of Shares (Details) - USD ($) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Jul. 30, 2019 |
May 07, 2019 |
|
Equity, Class of Treasury Stock [Line Items] | ||||
Share repurchase program, number of shares authorized | $ 333,932 | $ 300,000 | $ 78,979 | |
Shares repurchased during period, number | 35,000 | 205,059 | ||
Aggregate value of shares repurchased pursuant to authorization | $ 5,047 | $ 30,000 | ||
Shares obtained in connection with share based compensation award programs | 85,574 | 100,124 | ||
Payments for shares obtained in connection with share based compensation programs | $ 9,512 | $ 10,318 |
Share-Based Compensation Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Item] | ||
Remaining shares available for grant | 3,592,261 | |
Weighted-average assumptions used for options granted: | ||
Risk-free interest rate | 0.46% | 2.26% |
Expected life of options | 6 years | 6 years 2 months 12 days |
Exptected dividend yield of stock | 0.96% | 1.22% |
Expected volatility of stock | 23.04% | 20.27% |
Estimated forfeiture rate | 2.78% | 2.77% |
Summary of share option activity: | ||
Outstanding at March 31, 2017 | 1,796,126 | |
Granted | 288,936 | |
Exercised | (385,090) | |
Forfeited | (47,955) | |
Outstanding at June 30, 2017 | 1,652,017 | |
Exercisable at June 30, 2017 | 897,953 | |
Weighted average exercise price: | ||
Outstanding at March 31, 2017 | $ 91.29 | |
Granted | 181.33 | |
Exercised | 68.75 | |
Forfeited | 121.18 | |
Outstanding at June 30, 2017 | 111.43 | |
Exercisable at June 30, 2017 | $ 83.41 | |
Average Remaining Contractual Term, Outstanding at June 30, 2017 | 6 years 10 months 24 days | |
Aggregate Intrinsic Value, Outstanding at June 30, 2017 | $ 129,044 | |
Average Remaining Contractual Term, Exercisable at June 30, 2017 | 5 years 7 months 6 days | |
Aggregate Intrinsic Value, Exercisable at June 30, 2017 | $ 95,303 | |
Non-vested stock options outstanding expected to vest | 736,801 | |
Ordinary shares, closing price | $ 189.54 | |
Total intrinsic value of stock options exercised | $ 36,850 | $ 36,939 |
Net cash proceeds from the exercise of stock options | $ 26,018 | $ 22,958 |
Weighted average grant date fair value of stock option grants, per share | $ 27.66 | $ 23.52 |
Summary of non-vested restricted share activity: | ||
Unrecognized compensation cost related to nonvested share-based compensation granted | $ 51,583 | |
Weighted Average Period For Total Compensation Expense Not Yet Recognized | 2 years 1 month 6 days | |
Stock Appreciation Rights (SARs) [Member] | ||
Weighted average exercise price: | ||
FairValueOfOutstandingStockAppreciationRights | $ 491 | $ 629 |
Restricted Stock | ||
Summary of non-vested restricted share activity: | ||
Number of Restricted Shares, Non-vested at Beginning of Period | 575,830 | |
Weighted-Average Grant Date Fair Value, Non-vested at Beginning of Period | $ 98.07 | |
Number of Restricted Shares, Granted | 139,229 | |
Weighted-Average Grant Date Fair Value, Granted | $ 164.58 | |
Number of Restricted Shares, Vested | (158,250) | |
Weighted-Average Grant Date Fair Value, Vested | $ 84.61 | |
Number of Restricted Shares, Canceled | (23,997) | |
Weighted-Average Grant Date Fair Value, Canceled | $ 103.36 | |
Number of Restricted Shares, Non-vested at End of Period | 532,812 | |
Weighted-Average Grant Date Fair Value, Non-vested at End of Period | $ 120.26 | |
Fair Value, Share-based Payment Awards, Other than Options | $ 14,764 | |
Restricted Stock Units (RSUs) | ||
Summary of non-vested restricted share activity: | ||
Number of Restricted Shares, Non-vested at Beginning of Period | 30,894 | |
Number of Restricted Shares, Granted | 14,208 | |
Number of Restricted Shares, Vested | (16,238) | |
Number of Restricted Shares, Canceled | (228) | |
Number of Restricted Shares, Non-vested at End of Period | 28,636 |
Financial and Other Guarantees Financial and Other Guarantees (Details) $ in Thousands |
9 Months Ended |
---|---|
Dec. 31, 2020
USD ($)
| |
Product Warranty Liability [Line Items] | |
Balance, March 31, 2017 | $ 7,381 |
Warranties issued during the period | 7,411 |
Settlement made during the period | (7,996) |
Balance, June 30, 2017 | $ 6,796 |
Derivatives and Hedging Fair Value of Derivatives, Balance Sheet Location (Details) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2020
USD ($)
lb
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2020
GBP (£)
|
Dec. 31, 2020
MXN ($)
|
Dec. 31, 2020
CAD ($)
|
Dec. 31, 2020
EUR (€)
|
Dec. 31, 2020
USD ($)
|
Mar. 31, 2020
USD ($)
|
|
Derivative [Line Items] | ||||||||||
Non-derivative Net Investment Hedge | $ 51,323 | |||||||||
Prepaid & Other | ||||||||||
Derivative [Line Items] | ||||||||||
Asset derivatives | 1,377 | $ 124 | ||||||||
Liability derivatives | 0 | 0 | ||||||||
Accrued expenses and other | ||||||||||
Derivative [Line Items] | ||||||||||
Asset derivatives | 0 | 0 | ||||||||
Liability derivatives | $ 659 | $ 912 | ||||||||
Foreign currency forward contracts | Selling, general, and administrative expense | ||||||||||
Derivative [Line Items] | ||||||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ 741 | $ 79 | $ 661 | $ 784 | ||||||
Commodity swap contracts | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, notional amount, weight | lb | 946,800 | |||||||||
Commodity swap contracts | Cost of Sales [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ (153) | $ 398 | $ (904) | $ (271) | ||||||
Mexican peso | Foreign currency forward contracts | ||||||||||
Derivative [Line Items] | ||||||||||
Liability derivatives | $ 35,000 | |||||||||
Canadian dollar | Foreign currency forward contracts | ||||||||||
Derivative [Line Items] | ||||||||||
Liability derivatives | $ 2,200 | |||||||||
euro | Foreign currency forward contracts | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative Asset, Notional Amount | € | € 4,000 | |||||||||
British pounds sterling | Foreign currency forward contracts | ||||||||||
Derivative [Line Items] | ||||||||||
Liability derivatives | £ | £ 30,500 |
Derivatives and Hedging Gain (Loss) on Derivatives, Income Statement Location (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Foreign currency forward contracts | Selling, general, and administrative expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income | $ (741) | $ (79) | $ (661) | $ (784) |
Commodity swap contracts | Cost of revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income | $ 153 | $ (398) | $ 904 | $ 271 |
Fair Value Measurements Fair Value Hierarchy (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Mar. 31, 2020 |
|||||||||
Reported Value Measurement [Member] | |||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ 252,502 | $ 252,502 | $ 319,581 | ||||||||||
Forward and swap contracts | [1] | 1,377 | 1,377 | 124 | |||||||||
Equity Securities, FV-NI | [2] | 10,484 | 10,484 | 9,624 | |||||||||
Investments | 2,785 | 2,785 | 2,507 | ||||||||||
Liabilities: | |||||||||||||
Forward and swap contracts | [1] | 659 | 659 | 912 | |||||||||
Deferred compensation plans | [2] | 1,822 | 1,822 | 1,475 | |||||||||
Contingent consideration obligations | 17,931 | 17,931 | 15,988 | ||||||||||
Debt Instrument, Fair Value Disclosure | [3] | 1,713,199 | 1,713,199 | 1,150,521 | |||||||||
Debt and Equity Securities, Gain (Loss) | (210) | $ (636) | (138) | $ 1,843 | |||||||||
Investment Owned, at Cost | 4,955 | 4,955 | |||||||||||
Contingent consideration obligations | 17,931 | 17,931 | 15,988 | ||||||||||
Level 1 | |||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | 252,502 | 252,502 | 319,581 | ||||||||||
Forward and swap contracts | 0 | 0 | 0 | ||||||||||
Equity Securities, FV-NI | [2] | 10,484 | 10,484 | 9,624 | |||||||||
Investments | 2,785 | 2,785 | 2,507 | ||||||||||
Liabilities: | |||||||||||||
Forward and swap contracts | 0 | 0 | 0 | ||||||||||
Deferred compensation plans | [2] | 1,822 | 1,822 | 1,475 | |||||||||
Contingent consideration obligations | 0 | 0 | 0 | ||||||||||
Debt Instrument, Fair Value Disclosure | 0 | 0 | 0 | ||||||||||
Level 2 | |||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | ||||||||||
Forward and swap contracts | [1] | 1,377 | 1,377 | 124 | |||||||||
Equity Securities, FV-NI | 0 | 0 | 0 | ||||||||||
Investments | 0 | 0 | 0 | ||||||||||
Liabilities: | |||||||||||||
Forward and swap contracts | [1] | 659 | 659 | 912 | |||||||||
Deferred compensation plans | 0 | 0 | 0 | ||||||||||
Contingent consideration obligations | 0 | 0 | 0 | ||||||||||
Debt Instrument, Fair Value Disclosure | [3] | 1,781,304 | 1,781,304 | 1,143,978 | |||||||||
Level 3 | |||||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | ||||||||||
Forward and swap contracts | 0 | 0 | 0 | ||||||||||
Equity Securities, FV-NI | 0 | 0 | 0 | ||||||||||
Investments | 0 | 0 | 0 | ||||||||||
Liabilities: | |||||||||||||
Forward and swap contracts | 0 | 0 | 0 | ||||||||||
Deferred compensation plans | 0 | 0 | 0 | ||||||||||
Contingent consideration obligations | [4] | 17,931 | 17,931 | 15,988 | |||||||||
Debt Instrument, Fair Value Disclosure | $ 0 | $ 0 | $ 0 | ||||||||||
|
Fair Value Measurements Contingent Consideration Rollforward (Details) - USD ($) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2020 |
Mar. 31, 2020 |
|||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Contingent consideration | $ 17,931 | $ 15,988 | ||
Additions | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Change in contingent consideration | 334 | |||
Contingent consideration gain loss [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Change in contingent consideration | 2,940 | |||
Payments | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Change in contingent consideration | (917) | |||
Foreign currency translation adjustment | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Change in contingent consideration | 86 | |||
Reversal of Liability Balance | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Change in contingent consideration | (500) | |||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Contingent consideration | [1] | 17,931 | 15,988 | |
Fair value | $ 0 | $ 0 | ||
|
Fair Value Measurements Available-for-sale securities (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Debt Securities, Available-for-sale [Line Items] | ||||
Equity Securities, FV-NI, Gain (Loss) | $ 210 | $ 636 | $ 138 | $ (1,843) |
Reclassifications out of Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Sep. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2019 |
Mar. 31, 2019 |
|||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (2,386) | $ (148,922) | $ (2,386) | $ (148,922) | $ (130,613) | $ (235,463) | $ (225,717) | $ (159,778) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 129,060 | 77,494 | 235,579 | 12,947 | ||||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (833) | (699) | [1] | (2,502) | (2,091) | |||||||||||
Other Comprehensive (Loss) Income, Net of Tax, Portion Attributable to Parent | (128,227) | (76,795) | (233,077) | (10,856) | ||||||||||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (8,343) | (5,719) | (8,343) | (5,719) | (7,833) | (6,813) | (5,215) | (4,204) | ||||||||
Other Comprehensive Income (Loss), Net of Tax | 323 | 195 | 972 | 576 | ||||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [2] | (833) | (699) | (2,502) | (2,091) | |||||||||||
Other Comprehensive (Loss) Income, Net of Tax, Portion Attributable to Parent | 510 | 504 | 1,530 | 1,515 | ||||||||||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 5,957 | (143,203) | 5,957 | (143,203) | $ (122,780) | $ (228,650) | $ (220,502) | $ (155,574) | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 128,737 | 77,299 | 234,607 | 12,371 | ||||||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | [1] | 0 | 0 | [1] | 0 | [1] | |||||||||
Other Comprehensive (Loss) Income, Net of Tax, Portion Attributable to Parent | $ (128,737) | $ (77,299) | $ (234,607) | $ (12,371) | ||||||||||||
|
Loans Receivable (Details) € in Thousands, $ in Thousands |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Dec. 31, 2020
USD ($)
|
Dec. 31, 2020
EUR (€)
|
Mar. 31, 2020
USD ($)
|
Mar. 31, 2020
EUR (€)
|
Oct. 31, 2019
EUR (€)
|
Mar. 31, 2017
EUR (€)
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Investments | $ 4,955 | ||||||
Line of Credit Provide | 11,606 | ||||||
Loan Agreement Max Borrowing Amount Dutch Linen Sale | € | € 15,000 | ||||||
Balance under credit facility expected to be forgiven in acquisition | 10,536 | ||||||
Financing Receivable [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans Receivable, Net | 10,326 | $ 7,084 | |||||
Loans Receivable [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Interest Rate Period | 15 years | ||||||
Other Receivables | $ 8,966 | € 7,300 | $ 8,072 | € 7,300 | € 7,300 | ||
Years 1-4, 4% Int Rate [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Interest rate on loan receivable | 4.00% | 4.00% | |||||
Years 5-6,8% Int Rate [Member] [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Interest rate on loan receivable | 8.00% | ||||||
Loan Rate 4% [Member] [Domain] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Interest rate on loan receivable | 4.00% | 4.00% | |||||
Years 5-15, 12% Int Rate [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Interest rate on loan receivable | 12.00% |
Restructuring (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2020
USD ($)
plan
|
Dec. 31, 2019
USD ($)
|
|||
Restructuring and Related Cost, Expected Number of Positions Eliminated | plan | 200 | |||||
Restructuring Charges | [1] | $ 20 | $ 385 | $ 110 | $ 3,328 | |
Restructuring Costs | 20 | (448) | 110 | 667 | ||
Restructuring Costs LTD Since Plan Inception | 43,961 | |||||
Restructuring Costs | 20 | (448) | 110 | 667 | ||
Restructuring Charges | [1] | $ 20 | $ 385 | $ 110 | $ 3,328 | |
Restructuring and Related Activities Disclosure [Text Block] | 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 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 $43,961 related to these restructuring actions, of which $31,660 was recorded as restructuring expenses and $12,301 was recorded in cost of revenues, with a total of $34,062, $7,568 and $668 related to the Healthcare, Applied Sterilization Technologies and Life Sciences segments, respectively. Corporate related restructuring charges were $1,663. Additional restructuring expenses related to this plan are not expected to be material to our results of operations. 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 remaining liability balances at December 31, 2020 and March 31, 2020 are not material. For more information relating to our restructuring efforts, please refer to our Annual Report on Form 10-K for the year ended March 31, 2020 dated May 29, 2020.
|
|||||
Operating Income (Loss) [Member] | ||||||
Restructuring Costs | $ 31,660 | |||||
Restructuring Costs | 31,660 | |||||
Cost of Sales [Member] | ||||||
Restructuring Costs | 12,301 | |||||
Restructuring Costs | 12,301 | |||||
Applied Sterilization Technologies [Member] | ||||||
Restructuring Costs | 7,568 | |||||
Restructuring Costs | 7,568 | |||||
Life Science Member [Member] | ||||||
Restructuring Costs | 668 | |||||
Restructuring Costs | 668 | |||||
Healthcare | ||||||
Restructuring Costs | 34,062 | |||||
Restructuring Costs | 34,062 | |||||
Corporate Segment [Member] | ||||||
Restructuring Costs | 1,663 | |||||
Restructuring Costs | $ 1,663 | |||||
|
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Subsequent Events [Abstract] | ||||
Subsequent Events | Subsequent Events On January 12, 2021, we announced the signing of a definitive agreement to acquire Cantel Medical Corp. (NYSE: CMD "Cantel"), through a U.S. subsidiary. Cantel is a global provider of infection prevention products and services primarily to endoscopy and dental Customers. Under the terms of the agreement, we will acquire Cantel in a cash and stock transaction valued at $84.66 per Cantel common share, based on STERIS’s closing share price of $200.46 on January 11, 2021. This represents a total equity value of approximately $3.6 billion and a total enterprise value of approximately $4.6 billion. The agreement has been unanimously approved by the Boards of Directors of both companies. The acquisition is subject to certain closing conditions, including Cantel shareholder vote and regulatory approvals. We expect to fund the cash portion of the transaction consideration and repay or otherwise satisfy a significant amount of Cantel’s existing debt obligations with approximately $2.0 billion of new debt. We have fully committed bridge financing and are working with our lenders and advisors on a long-term plan. On January 4, 2021, we purchased the remaining outstanding shares of an equity investment that we made in fiscal 2019, for approximately $44,255, subject to any working capital adjustments. In addition to the purchase price, the acquisition agreement included the capitalization of the outstanding principal and accumulated interest under a credit facility in the amount of $10,536. For more information refer to Note 18 titled, "Loans Receivable". We plan to integrate the business into our Applied Sterilization Technologies business segment and to fund the transaction through a combination of cash on hand and credit facility borrowings.
|
|||
Business Acquisition, Date of Acquisition [Abstract] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 869,431 | $ 107,166 | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||
Proceeds from Issuance of Private Placement | $ 550,000 | $ 0 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Subsequent Event - Business Acquisition Equity Value of Acquiree | $ 3,600,000 | |||
Subsequent Event - Business Acquisition Enterprise Value of Acquiree | 4,600,000 | |||
Subsequent event- Forgiveness of Loan Receivable | 10,536 | |||
Business Acquisition, Date of Acquisition [Abstract] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | 44,255 | |||
Proceeds from Issuance of Private Placement | $ 2,000,000 | |||
Subsequent Event [Member] | Equity Investment [Domain] | ||||
Subsequent Events [Abstract] | ||||
Subsequent Event, Date | Jan. 04, 2021 | |||
Subsequent Event [Line Items] | ||||
Subsequent Event, Date | Jan. 04, 2021 | |||
Subsequent Event [Member] | Cantel [Domain] | ||||
Subsequent Events [Abstract] | ||||
Subsequent Event, Date | Jan. 12, 2021 | |||
Subsequent Event [Line Items] | ||||
Subsequent Event, Date | Jan. 12, 2021 | |||
Business Acquisition, Date of Acquisition [Abstract] | ||||
Common Stock, Par or Stated Value Per Share | $ 84.66 | |||
Business Acquisition, Share Price | $ 200.46 |
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