x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 33-0022692 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
951 Calle Amanecer, San Clemente, California | 92673 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer o | |
Non-accelerated filer o | Smaller reporting company o | |
Emerging growth company o |
Class | Outstanding at October 31, 2018 | |
Common | 20,489,181 |
ICU MEDICAL, INC. AND SUBSIDIARIES Form 10-Q September 30, 2018 Table of Contents | |||
PART I. | Financial Information | Page Number | |
Item 1. | Financial Statements (Unaudited) | ||
Condensed Consolidated Balance Sheet, at September 30, 2018 and December 31, 2017 | |||
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2018 and 2017 | |||
Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2018 and 2017 | |||
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2018 and 2017 | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II. | |||
Item 1. | |||
Item1A. | |||
Item 2. | |||
Item 6. | |||
Item1. | Financial Statements (Unaudited) |
September 30, 2018 | December 31, 2017 | ||||||
(Unaudited) | (1) | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 318,816 | $ | 290,072 | |||
Short-term investment securities | 36,960 | 10,061 | |||||
TOTAL CASH, CASH EQUIVALENTS AND INVESTMENT SECURITIES | 355,776 | 300,133 | |||||
Accounts receivable, net of allowance for doubtful accounts of $5,088 at September 30, 2018 and $3,311 at December 31, 2017 | 144,535 | 112,696 | |||||
Inventories | 291,840 | 288,657 | |||||
Prepaid income tax | 24,447 | 10,594 | |||||
Prepaid expenses and other current assets | 26,306 | 41,286 | |||||
Related-party receivable | 70,408 | 98,807 | |||||
Assets held-for-sale | — | 12,489 | |||||
TOTAL CURRENT ASSETS | 913,312 | 864,662 | |||||
PROPERTY AND EQUIPMENT, net | 424,897 | 398,684 | |||||
LONG-TERM INVESTMENT SECURITIES | 2,922 | 14,579 | |||||
GOODWILL | 13,199 | 12,357 | |||||
INTANGIBLE ASSETS, net | 131,811 | 143,753 | |||||
DEFERRED INCOME TAXES | 20,341 | 24,775 | |||||
OTHER ASSETS | 38,693 | 38,141 | |||||
TOTAL ASSETS | $ | 1,545,175 | $ | 1,496,951 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 70,566 | $ | 78,228 | |||
Accrued liabilities | 131,954 | 132,064 | |||||
TOTAL CURRENT LIABILITIES | 202,520 | 210,292 | |||||
CONTINGENT EARN-OUT LIABILITY | 47,500 | 27,000 | |||||
OTHER LONG-TERM LIABILITIES | 29,057 | 55,326 | |||||
DEFERRED INCOME TAXES | 1,193 | 1,487 | |||||
INCOME TAX LIABILITY | 4,592 | 4,592 | |||||
COMMITMENTS AND CONTINGENCIES | — | — | |||||
STOCKHOLDERS’ EQUITY: | |||||||
Convertible preferred stock, $1.00 par value Authorized—500 shares; Issued and outstanding— none | — | — | |||||
Common stock, $0.10 par value — Authorized, 80,000 shares; Issued and outstanding, 20,489 shares at September 30, 2018 and 20,210 shares at December 31, 2017 | 2,049 | 2,021 | |||||
Additional paid-in capital | 651,752 | 625,568 | |||||
Treasury stock, at cost | (128 | ) | — | ||||
Retained earnings | 628,101 | 585,624 | |||||
Accumulated other comprehensive loss | (21,461 | ) | (14,959 | ) | |||
TOTAL STOCKHOLDERS' EQUITY | 1,260,313 | 1,198,254 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,545,175 | $ | 1,496,951 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
REVENUE: | |||||||||||||||
Net sales | $ | 327,169 | $ | 343,084 | $ | 1,059,662 | $ | 921,544 | |||||||
Other | — | 152 | — | 945 | |||||||||||
TOTAL REVENUE | 327,169 | 343,236 | 1,059,662 | 922,489 | |||||||||||
COST OF GOODS SOLD | 192,582 | 231,638 | 624,274 | 633,884 | |||||||||||
GROSS PROFIT | 134,587 | 111,598 | 435,388 | 288,605 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Selling, general and administrative | 78,068 | 76,820 | 248,603 | 226,812 | |||||||||||
Research and development | 13,181 | 12,769 | 39,342 | 37,377 | |||||||||||
Restructuring, strategic transaction and integration | 24,012 | 18,711 | 64,271 | 68,033 | |||||||||||
Change in fair value of contingent earn-out | 18,500 | 7,000 | 20,500 | 13,000 | |||||||||||
Contract settlement | — | — | 28,917 | — | |||||||||||
TOTAL OPERATING EXPENSES | 133,761 | 115,300 | 401,633 | 345,222 | |||||||||||
INCOME (LOSS) FROM OPERATIONS | 826 | (3,702 | ) | 33,755 | (56,617 | ) | |||||||||
BARGAIN PURCHASE GAIN | — | 8,534 | — | 71,771 | |||||||||||
INTEREST EXPENSE | (283 | ) | (705 | ) | (548 | ) | (1,743 | ) | |||||||
OTHER INCOME (EXPENSE) | 894 | 583 | 1,650 | (2,030 | ) | ||||||||||
INCOME BEFORE INCOME TAXES | 1,437 | 4,710 | 34,857 | 11,381 | |||||||||||
(PROVISION) BENEFIT FOR INCOME TAXES | (1,218 | ) | (4,574 | ) | 1,291 | 7,558 | |||||||||
NET INCOME | $ | 219 | $ | 136 | $ | 36,148 | $ | 18,939 | |||||||
NET INCOME PER SHARE | |||||||||||||||
Basic | $ | 0.01 | $ | 0.01 | $ | 1.78 | $ | 0.97 | |||||||
Diluted | $ | 0.01 | $ | 0.01 | $ | 1.67 | $ | 0.92 | |||||||
WEIGHTED AVERAGE NUMBER OF SHARES | |||||||||||||||
Basic | 20,474 | 19,984 | 20,362 | 19,433 | |||||||||||
Diluted | 21,633 | 21,106 | 21,588 | 20,603 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
NET INCOME | $ | 219 | $ | 136 | $ | 36,148 | $ | 18,939 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Cash flow hedge adjustments, net of taxes of $(372) and $82 for the three months ended September 30, 2018 and 2017 and $(376) and $(603) for the nine months ended September 30, 2018 and 2017, respectively | 1,178 | (134 | ) | 1,192 | 985 | ||||||||||
Foreign currency translation adjustment, net of taxes of $0 for the three months ended September 30, 2018 and 2017, and $0 and $56 for the nine months ended September 30, 2018 and 2017, respectively | (5,415 | ) | 5,833 | (7,705 | ) | 16,747 | |||||||||
Other adjustments, net of taxes of $0 for all periods | 6 | (90 | ) | 11 | (238 | ) | |||||||||
Other comprehensive (loss) income, net of taxes | (4,231 | ) | 5,609 | (6,502 | ) | 17,494 | |||||||||
TOTAL COMPREHENSIVE (LOSS) INCOME | $ | (4,012 | ) | $ | 5,745 | $ | 29,646 | $ | 36,433 |
Nine months ended September 30, | |||||||
2018 | 2017 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 36,148 | $ | 18,939 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 55,069 | 47,512 | |||||
Provision for doubtful accounts | 638 | 1,906 | |||||
Provision for warranty and returns | 1,817 | 3,639 | |||||
Stock compensation | 17,992 | 13,387 | |||||
Loss on disposal of property and equipment | 760 | 3,177 | |||||
Bond premium amortization | 313 | 12 | |||||
Debt issuance costs amortization | 216 | — | |||||
Bargain purchase gain | — | (71,771 | ) | ||||
Change in fair value of contingent earn-out | 20,500 | 13,000 | |||||
Impairment of assets held for sale | 269 | — | |||||
Write-off of acquired intangible | 5,000 | — | |||||
Other | 2,100 | 1,690 | |||||
Changes in operating assets and liabilities, net of effects of acquisitions: | |||||||
Accounts receivable | (38,957 | ) | (51,498 | ) | |||
Inventories | 12,201 | 148,482 | |||||
Prepaid expenses and other assets | (1,826 | ) | 6,214 | ||||
Related-party receivables | 31,004 | (131,617 | ) | ||||
Accounts payable | (2,094 | ) | 17,551 | ||||
Accrued liabilities | (18,509 | ) | 63,234 | ||||
Income taxes, including excess tax benefits and deferred income taxes | (12,359 | ) | (13,982 | ) | |||
Net cash provided by operating activities | 110,282 | 69,875 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property and equipment | (75,057 | ) | (51,702 | ) | |||
Proceeds from sale of asset | 13,000 | 2 | |||||
Business acquisitions, net of cash acquired | (1,300 | ) | (157,097 | ) | |||
Intangible asset additions | (5,375 | ) | (3,718 | ) | |||
Purchases of investment securities | (30,495 | ) | (24,743 | ) | |||
Proceeds from sale of investment securities | 14,940 | — | |||||
Net cash used in investing activities | (84,287 | ) | (237,258 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from exercise of stock options | 14,211 | 19,967 | |||||
Proceeds from employee stock purchase plan | — | 2,705 | |||||
Tax withholding payments related to net share settlement of equity awards | (6,119 | ) | (3,951 | ) | |||
Net cash provided by financing activities | 8,092 | 18,721 | |||||
Effect of exchange rate changes on cash | (5,343 | ) | 4,194 | ||||
NET INCREASE (DECREASE) CASH AND CASH EQUIVALENTS | 28,744 | (144,468 | ) | ||||
CASH AND CASH EQUIVALENTS, beginning of period | 290,072 | 445,082 | |||||
CASH AND CASH EQUIVALENTS, end of period | $ | 318,816 | $ | 300,614 |
Nine months ended September 30, | |||||||
2018 | 2017 | ||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES: | |||||||
Accounts payable for property and equipment | $ | 1,184 | $ | 1,435 | |||
Detail of acquisitions: | |||||||
Fair value of assets acquired | $ | 893,582 | |||||
Cash paid for acquisitions, net of cash acquired | (157,097 | ) | |||||
Non-cash seller note | (75,000 | ) | |||||
Estimated working capital adjustment | 7,512 | ||||||
Contingent consideration | (19,000 | ) | |||||
Issuance of common stock | (413,139 | ) | |||||
Bargain purchase gain | (71,771 | ) | |||||
Goodwill | 1,015 | ||||||
Liabilities assumed | $ | 166,102 |
Note 1: | Basis of Presentation |
Cash consideration for acquired assets | $ | 180,785 | ||
Fair value of Seller Note | 75,000 | |||
Fair value of contingent consideration payable to Pfizer (long-term) | 19,000 | |||
Issuance of ICU Medical, Inc. common shares: | ||||
Number of shares issued to Pfizer | 3,200 | |||
Price per share (ICU's trading closing share price on the Closing Date) | $ | 140.75 | ||
Market price of ICU shares issued to Pfizer | $ | 450,400 | ||
Less: Discount due to lack of marketability of 8.3% | (37,261 | ) | ||
Equity portion of purchase price | 413,139 | |||
Total Consideration | $ | 687,924 | ||
Purchase Price Allocation: | ||||
Cash and cash equivalents | $ | 31,082 | ||
Trade receivables | 362 | |||
Inventories | 417,622 | |||
Prepaid expenses and other assets | 13,911 | |||
Property and equipment | 288,134 | |||
Intangible assets(1) | 131,000 | |||
Other assets | 29,270 | |||
Accounts payable | (12,381 | ) | ||
Accrued liabilities | (47,936 | ) | ||
Long-term liabilities(2) | (67,170 | ) | ||
Total identifiable net assets acquired | $ | 783,894 | ||
Deferred tax liability | (25,080 | ) | ||
Gain on Bargain Purchase | (70,890 | ) | ||
Purchase Consideration | $ | 687,924 |
Accrued Balance December 31, 2017 | Charges Incurred | Payments | Other Adjustments | Accrued Balance September 30, 2018 | |||||||||||||||
Severance pay and benefits | $ | 915 | $ | 2,870 | $ | (3,327 | ) | $ | — | $ | 458 | ||||||||
Employment agreement buyout | 1,114 | — | (287 | ) | 2 | 829 | |||||||||||||
Facility closure expenses | — | 160 | (160 | ) | — | — | |||||||||||||
$ | 2,029 | $ | 3,030 | $ | (3,774 | ) | $ | 2 | $ | 1,287 |
For the three months ended September 30, 2018 | For the nine months ended September 30, 2018 | ||||||||||||||||||||||
As Reported | Without Adoption of ASC 606 | Effect of Adoption | As Reported | Without Adoption of ASC 606 | Effect of Adoption | ||||||||||||||||||
Revenue | $ | 327,169 | $ | 340,671 | $ | (13,502 | ) | $ | 1,059,662 | $ | 1,062,980 | $ | (3,318 | ) | |||||||||
Cost of goods sold | $ | 192,582 | $ | 196,159 | $ | (3,577 | ) | $ | 624,274 | $ | 626,810 | $ | (2,536 | ) | |||||||||
Gross Profit | $ | 134,587 | $ | 144,512 | $ | (9,925 | ) | $ | 435,388 | $ | 436,170 | $ | (782 | ) |
As of September 30, 2018 | |||||||||||
As Reported | Without Adoption of ASC Topic 606 | Effect of Adoption | |||||||||
Prepaid expenses and other current assets | 26,306 | $ | 26,872 | $ | (566 | ) | |||||
Accrued liabilities | 131,954 | $ | 140,107 | $ | (8,153 | ) | |||||
Deferred income taxes | 20,341 | $ | 22,340 | $ | (1,999 | ) |
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||
Geography | 2018 | 2017 (1) | 2018 | 2017 (1) | |||||||||||
EMEA | $ | 30,759 | $ | 31,034 | $ | 104,150 | $ | 87,892 | |||||||
APAC | 17,779 | 16,982 | 54,813 | 44,071 | |||||||||||
LATAM | 16,051 | 16,349 | 44,701 | 42,034 | |||||||||||
North America | 17,739 | 21,939 | 54,684 | 50,037 | |||||||||||
Other | — | 120 | 80 | 120 | |||||||||||
Total Foreign | 82,328 | 86,424 | 258,428 | 224,154 | |||||||||||
United States | 244,841 | 256,812 | 801,234 | 698,335 | |||||||||||
Total Revenues | $ | 327,169 | $ | 343,236 | $ | 1,059,662 | $ | 922,489 |
For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||
Product line | 2018 | 2017 (1) | 2018 | 2017 (1) | |||||||||||
Infusion Consumables | $ | 117,797 | $ | 92,612 | $ | 361,490 | $ | 245,885 | |||||||
IV Solutions | 114,433 | 143,710 | 394,198 | 375,494 | |||||||||||
Infusion Systems (2) | 81,456 | 82,798 | 263,271 | 202,590 | |||||||||||
Critical Care | 13,483 | 12,950 | 40,703 | 37,221 | |||||||||||
Other | — | 11,166 | — | 61,299 | |||||||||||
Total Revenues | $ | 327,169 | $ | 343,236 | $ | 1,059,662 | $ | 922,489 |
• | Identifying the various performance obligations of these arrangements. |
• | Estimating the relative standalone selling price of each performance obligation, typically using directly observable method or calculated on a cost plus margin basis method. |
Contract Liabilities | |||
Beginning balance, January 1, 2018 | $ | (7,066 | ) |
Equipment revenue recognized | 3,136 | ||
Equipment revenue deferred due to implementation | (4,086 | ) | |
Software revenue recognized | 5,649 | ||
Software revenue deferred due to implementation | (5,507 | ) | |
Ending balance, September 30, 2018 | $ | (7,874 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income | $ | 219 | $ | 136 | $ | 36,148 | $ | 18,939 | |||||||
Weighted-average number of common shares outstanding (for basic calculation) | 20,474 | 19,984 | 20,362 | 19,433 | |||||||||||
Dilutive securities | 1,159 | 1,122 | 1,226 | 1,170 | |||||||||||
Weighted-average common and common equivalent shares outstanding (for diluted calculation) | 21,633 | 21,106 | 21,588 | 20,603 | |||||||||||
EPS — basic | $ | 0.01 | $ | 0.01 | $ | 1.78 | $ | 0.97 | |||||||
EPS — diluted | $ | 0.01 | $ | 0.01 | $ | 1.67 | $ | 0.92 |
Derivatives | |||||||||
Condensed Consolidated Balance Sheet Location | September 30, 2018 | December 31, 2017 | |||||||
Derivatives designated as cash flow hedging instruments | |||||||||
Foreign exchange forward contract: | |||||||||
Prepaid expenses and other current assets | $ | 885 | $ | — | |||||
Other assets | 94 | — | |||||||
Accrued Liabilities | — | 187 | |||||||
Other long-term liabilities | — | 402 | |||||||
Total derivatives designated as cash flow hedging instruments | $ | 979 | $ | 589 |
Line Item in the Condensed Consolidated Statements of Operations | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||
Derivatives designated as cash flow hedging instruments | ||||||||||||||||||
Foreign exchange forward contracts | Cost of goods sold | $ | 192 | $ | 534 | $ | 687 | $ | 556 |
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives | Amount of Gain Reclassified From Accumulated Other Comprehensive Income into Income | |||||||||||||||||
Three months ended September 30, | Three months ended September 30, | |||||||||||||||||
2018 | 2017 | Location of Gain Reclassified From Accumulated Other Comprehensive Income into Income | 2018 | 2017 | ||||||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||||||||
Foreign exchange forward contract | $ | 1,743 | $ | 318 | Cost of goods sold | $ | 192 | $ | 534 | |||||||||
Total derivatives designated as cash flow hedging instruments | $ | 1,743 | $ | 318 | $ | 192 | $ | 534 |
Amount of Gain Recognized in Other Comprehensive Income on Derivatives | Amount of Gain Reclassified From Accumulated Other Comprehensive Income into Income | |||||||||||||||||
Nine months ended September 30, | Nine months ended September 30, | |||||||||||||||||
2018 | 2017 | Location of Gain Reclassified From Accumulated Other Comprehensive Income into Income | 2018 | 2017 | ||||||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||||||||
Foreign exchange forward contract | $ | 2,256 | $ | 2,144 | Cost of goods sold | $ | 687 | $ | 556 | |||||||||
Total derivatives designated as cash flow hedging instruments | $ | 2,256 | $ | 2,144 | $ | 687 | $ | 556 |
• | Level 1: quoted prices in active markets for identical assets or liabilities; |
• | Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or |
• | Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities. |
Earn-out Liability | ||||
Accrued balance, December 31, 2017 | $ | 27,000 | ||
Change in fair value of earn-out (included in income from operations as a separate line item) | 20,500 | |||
Accrued balance, September 30, 2018 | $ | 47,500 |
Simulation Input | As of September 30, 2018 | As of December 31, 2017 | ||||
Adjusted EBITDA Volatility | 25.00 | % | 26.00 | % | ||
WACC | 8.25 | % | 8.75 | % | ||
20-year risk free rate | 3.13 | % | 2.58 | % | ||
Market price of risk | 4.99 | % | 5.99 | % | ||
Cost of debt | 4.74 | % | 4.08 | % |
Fair value measurements at September 30, 2018 | |||||||||||||||
Total carrying value | Quoted prices in active markets for identical assets (level 1) | Significant other observable inputs (level 2) | Significant unobservable inputs (level 3) | ||||||||||||
Assets: | |||||||||||||||
Available for sale securities: | |||||||||||||||
Short-term | $ | 36,960 | $ | — | $ | 36,960 | $ | — | |||||||
Long-term | 2,922 | — | 2,922 | — | |||||||||||
Foreign exchange forwards: | |||||||||||||||
Prepaid expenses and other current assets | 885 | — | 885 | — | |||||||||||
Other assets | 94 | — | 94 | — | |||||||||||
Total Assets | $ | 40,861 | $ | — | $ | 40,861 | $ | — | |||||||
Liabilities: | |||||||||||||||
Earn-out liability | $ | 47,500 | $ | — | $ | — | $ | 47,500 | |||||||
Total Liabilities | $ | 47,500 | $ | — | $ | — | $ | 47,500 |
Fair value measurements at December 31, 2017 | |||||||||||||||
Total carrying value | Quoted prices in active markets for identical assets (level 1) | Significant other observable inputs (level 2) | Significant unobservable inputs (level 3) | ||||||||||||
Assets: | |||||||||||||||
Available for sale securities: | |||||||||||||||
Short-term | $ | 10,061 | $ | — | $ | 10,061 | $ | — | |||||||
Long-term | 14,579 | — | 14,579 | — | |||||||||||
Total Assets | $ | 24,640 | $ | — | $ | 24,640 | $ | — | |||||||
Liabilities: | |||||||||||||||
Earn-out liability | $ | 27,000 | $ | — | $ | — | $ | 27,000 | |||||||
Foreign exchange forwards: | |||||||||||||||
Accrued liabilities | 187 | — | 187 | — | |||||||||||
Other long-term liabilities | 402 | — | 402 | — | |||||||||||
Total Liabilities | $ | 27,589 | $ | — | $ | 589 | $ | 27,000 |
Fair value measurements at December 31, 2017 | |||||||||||||||
Total carrying value | Quoted prices in active markets for identical assets (level 1) | Significant other observable inputs (level 2) | Significant unobservable inputs (level 3) | ||||||||||||
Assets: | |||||||||||||||
Assets held-for-sale | $ | 12,489 | $ | — | $ | — | $ | 12,489 | |||||||
Total Assets | $ | 12,489 | $ | — | $ | — | $ | 12,489 |
As of September 30, 2018 | |||||||||||
Amortized Cost | Unrealized Holding Gains (Losses) | Fair Value | |||||||||
Short-term corporate bonds | $ | 36,960 | $ | — | $ | 36,960 | |||||
Long-term corporate bonds | 2,922 | — | 2,922 | ||||||||
Total investment securities | $ | 39,882 | $ | — | $ | 39,882 | |||||
As of December 31, 2017 | |||||||||||
Amortized Cost | Unrealized Holding Gains (Losses) | Fair Value | |||||||||
Short-term corporate bonds | $ | 10,061 | $ | — | $ | 10,061 | |||||
Long-term corporate bonds | 14,579 | — | 14,579 | ||||||||
Total investment securities | $ | 24,640 | $ | — | $ | 24,640 |
September 30, 2018 | December 31, 2017 | |||||||
Deposits | $ | 606 | $ | 21,940 | ||||
Other prepaid expenses and receivables | 11,727 | 4,208 | ||||||
Prepaid insurance and property taxes | 393 | 2,580 | ||||||
VAT/GST receivable | 5,873 | 8,097 | ||||||
Deferred tax charge | 2,368 | 1,326 | ||||||
Other | 5,339 | 3,135 | ||||||
$ | 26,306 | $ | 41,286 |
September 30, 2018 | December 31, 2017 | |||||||
Third-party receivables due from Pfizer | $ | 68,878 | $ | 36,425 | ||||
HIS business acquisition related | 1,530 | 62,382 | ||||||
$ | 70,408 | $ | 98,807 |
September 30, 2018 | December 31, 2017 | ||||||
Raw material | $ | 71,511 | $ | 82,397 | |||
Work in process | 64,137 | 42,304 | |||||
Finished goods | 156,192 | 163,956 | |||||
Total inventories | $ | 291,840 | $ | 288,657 |
September 30, 2018 | December 31, 2017 | ||||||
Machinery and equipment | $ | 195,278 | $ | 220,999 | |||
Land, building and building improvements | 213,764 | 206,846 | |||||
Molds | 56,304 | 56,253 | |||||
Computer equipment and software | 43,490 | 44,408 | |||||
Furniture and fixtures | 8,284 | 7,361 | |||||
Instruments placed with customers* | 58,247 | 15,812 | |||||
Construction in progress | 98,967 | 57,144 | |||||
Total property and equipment, cost | 674,334 | 608,823 | |||||
Accumulated depreciation | (249,437 | ) | (210,139 | ) | |||
Property and equipment, net | $ | 424,897 | $ | 398,684 |
Total | ||||
Balance as of December 31, 2017 | $ | 12,357 | ||
Goodwill acquired | 1,300 | |||
Other | — | |||
Currency translation | (458 | ) | ||
Balance as of September 30, 2018 | $ | 13,199 |
Weighted Average | September 30, 2018 | |||||||||||||
Amortization Life in Years | Cost | Accumulated Amortization | Net | |||||||||||
Patents | 10 | $ | 18,906 | $ | 11,839 | $ | 7,067 | |||||||
Customer contracts | 9 | 5,319 | 5,177 | 142 | ||||||||||
Non-contractual customer relationships | 9 | 55,695 | 11,553 | 44,142 | ||||||||||
Trademarks | 4 | 425 | 425 | — | ||||||||||
Trade name | 15 | 7,310 | 1,462 | 5,848 | ||||||||||
Developed technology | 11 | 81,848 | 13,280 | 68,568 | ||||||||||
Total amortized intangible assets | $ | 169,503 | $ | 43,736 | $ | 125,767 | ||||||||
IPR&D | $ | 6,044 | — | $ | 6,044 | |||||||||
Total intangible assets | $ | 175,547 | $ | 43,736 | $ | 131,811 |
Weighted Average | December 31, 2017 | |||||||||||||
Amortization Life in Years | Cost | Accumulated Amortization | Net | |||||||||||
Patents | 10 | $ | 17,064 | $ | 10,970 | $ | 6,094 | |||||||
Customer contracts | 9 | 5,319 | 4,892 | 427 | ||||||||||
Non-contractual customer relationships | 9 | 55,080 | 6,562 | 48,518 | ||||||||||
Trademarks | 4 | 425 | 425 | — | ||||||||||
Trade name | 15 | 7,310 | 1,096 | 6,214 | ||||||||||
Developed technology | 11 | 81,846 | 7,571 | 74,275 | ||||||||||
Total amortized intangible assets | $ | 167,044 | $ | 31,516 | $ | 135,528 | ||||||||
IPR&D | $ | 8,225 | $ | 8,225 | ||||||||||
Total intangible assets | $ | 175,269 | $ | 31,516 | $ | 143,753 |
Remainder of 2018 | $ | 4,004 | ||
2019 | 16,013 | |||
2020 | 15,867 | |||
2021 | 15,578 | |||
2022 | 15,426 | |||
Thereafter | 58,879 | |||
Total | $ | 125,767 |
September 30, 2018 | December 31, 2017 | |||||||
Salaries and benefits | $ | 22,768 | $ | 20,745 | ||||
Incentive compensation | 34,012 | 40,682 | ||||||
Accrued product field action | 5,706 | 11,810 | ||||||
Third-party inventory | 9,090 | 4,284 | ||||||
Consigned inventory | 1,118 | 5,210 | ||||||
Accrued sales taxes | 3,424 | 6,291 | ||||||
Restructuring accrual | 829 | 1,290 | ||||||
Contract liabilities | 6,408 | 3,326 | ||||||
Accrued other taxes | 1,810 | 2,771 | ||||||
Accrued professional fees | 19,120 | 13,319 | ||||||
Legal accrual | 1,699 | 3,538 | ||||||
Outside commissions | 750 | 725 | ||||||
Warranties and returns | 2,553 | 3,360 | ||||||
Accrued freight | 5,026 | 5,696 | ||||||
Accrued rebates | 2,229 | — | ||||||
Other | 15,412 | 9,017 | ||||||
$ | 131,954 | $ | 132,064 |
September 30, 2018 | December 31, 2017 | |||||||
Unfavorable contract liabilities | $ | 16,713 | $ | 40,148 | ||||
Contract settlement | 2,083 | — | ||||||
Capital lease | 1,936 | — | ||||||
Benefits | 1,775 | 2,104 | ||||||
Contract liabilities | 1,466 | 7,099 | ||||||
Other | 5,084 | 5,975 | ||||||
$ | 29,057 | $ | 55,326 |
Foreign Currency Translation Adjustments | Unrealized Gains on Cash Flow Hedges | Other Adjustments | Total | |||||||||||||
Balance as of December 31, 2017 | $ | (14,578 | ) | $ | (365 | ) | $ | (16 | ) | $ | (14,959 | ) | ||||
Other comprehensive income before reclassifications | (7,705 | ) | 1,714 | 11 | (5,980 | ) | ||||||||||
Amounts reclassified from AOCI | — | (522 | ) | — | (522 | ) | ||||||||||
Other comprehensive (loss) income | (7,705 | ) | 1,192 | 11 | (6,502 | ) | ||||||||||
Balance as of September 30, 2018 | $ | (22,283 | ) | $ | 827 | $ | (5 | ) | $ | (21,461 | ) |
• | Clave® needlefree products, including the MicroClave, MicroClave Clear, and NanoClave brand of connectors, accessories, extension and administration sets used for the administration of IV fluids and medications. |
• | Neutron® Catheter Patency Connector, used to help maintain patency of central venous catheters. |
• | SwabCap® Disinfecting Cap, used to protect and disinfect any needlefree connector, including competitive brands of connectors. |
• | Tego® Hemodialysis Connector |
• | NovaCath® and SuperCath® Peripheral IV Catheters |
• | ChemoLock® Closed System Transfer Device (CSTD) is a pharmacy preferred CSTD used for the preparation and administration of hazardous drugs. |
• | ChemoClave® CSTD, is an ISO standard and universally compatible CSTD used for the preparation and administration of hazardous drugs. |
• | Diana™ hazardous drug compounding system, used for the preparation of hazardous drugs. |
• | Sterile Solutions - IV solutions, normal saline, and ringers are used to replenish fluids and electrolytes by IV infusion. |
• | Irrigation Solutions - Used externally on open wounds to hydrate the wound, remove deep debris, assist with visual examination, prevent infection and improve healing. |
• | Nutritionals - Solutions that feed vitamins, minerals and other natural therapeutic substances directly into the blood stream. We are committed to helping our customers deliver more comprehensive patient-care therapies, delivering an extensive source of nutrients for patients who cannot consume a normal diet. |
▪ | Plum 360™: The Plum 360™ infusion pump is a ICU Medical MedNet™ ready large volume infusion pump with an extensive drug library and wireless capability. |
▪ | LifeCare PCA™: The LifeCare PCA™ infusion pump is a ICU Medical MedNet™ ready patient-controlled analgesia pump. |
• | Hemodynamic Monitoring Systems. |
• | Cogent® 2-in-1 Hemodynamic Monitoring System |
• | LiDCO LX1TM Noninvasive Hemodynamic Monitoring System |
• | CardioFlo® Hemodynamic Monitoring Sensor |
• | TriOx® PICC Minimally Invasive Venous Oximetry Sensor |
• | SafeSet® Closed Blood Sampling and Conservation System. |
• | Transpac® Consumable Blood Pressure Transducers. |
• | Q2 Plus™ CCO/SvO2 (continuous cardiac output/oximetry). |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||
$ | % of Revenue | $ | % of Revenue | $ | % of Revenue | $ | % of Revenue | ||||||||||||||||||||
Domestic | $ | 244.9 | 75 | % | $ | 256.8 | 75 | % | $ | 801.3 | 76 | % | $ | 698.3 | 76 | % | |||||||||||
International | 82.3 | 25 | % | 86.4 | 25 | % | 258.4 | 24 | % | 224.2 | 24 | % | |||||||||||||||
Total Revenue | $ | 327.2 | 100 | % | $ | 343.2 | 100 | % | $ | 1,059.7 | 100 | % | $ | 922.5 | 100 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||
Product line | 2018 | 2017 | 2018 | 2017 | |||||||
Infusion Consumables | 36 | % | 27 | % | 34 | % | 27 | % | |||
IV Solutions | 35 | % | 42 | % | 37 | % | 41 | % | |||
Infusion Systems | 25 | % | 24 | % | 25 | % | 22 | % | |||
Critical Care | 4 | % | 4 | % | 4 | % | 4 | % | |||
Other | — | % | 3 | % | — | % | 6 | % | |||
100 | % | 100 | % | 100 | % | 100 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Total revenue | 100 | % | 100 | % | 100 | % | 100 | % | |||
Gross margin | 41 | % | 33 | % | 41 | % | 31 | % | |||
Selling, general and administrative expenses | 24 | % | 22 | % | 23 | % | 25 | % | |||
Research and development expenses | 4 | % | 4 | % | 4 | % | 4 | % | |||
Restructuring and strategic transaction | 7 | % | 5 | % | 6 | % | 7 | % | |||
Change in fair value of contingent earn-out | 6 | % | 2 | % | 2 | % | 1 | % | |||
Contract settlement | — | % | — | % | 3 | % | — | % | |||
Total operating expenses | 41 | % | 33 | % | 38 | % | 37 | % | |||
Income (loss) from operations | — | % | — | % | 3 | % | (6 | )% | |||
Bargain purchase gain | — | % | 2 | % | — | % | 8 | % | |||
Interest expense | — | % | — | % | — | % | — | % | |||
Other income, net | — | % | — | % | — | % | — | % | |||
Income (loss) before income taxes | — | % | 2 | % | 3 | % | 2 | % | |||
Benefit for income taxes | — | % | 1 | % | — | % | (1 | )% | |||
Net income (loss) | — | % | 1 | % | 3 | % | 3 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||
2018 | 2017 | $ Change | % Change | 2018 | 2017 | $ Change | % Change | ||||||||||||||||||||||
Infusion Consumables | $ | 117.8 | $ | 92.7 | $ | 25.1 | 27.1 | % | $ | 361.5 | $ | 245.9 | $ | 115.6 | 47.0 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||
2018 | 2017 | $ Change | % Change | 2018 | 2017 | $ Change | % Change | ||||||||||||||||||||||
IV Solutions | $ | 114.4 | $ | 143.7 | $ | (29.3 | ) | (20.4 | )% | $ | 394.2 | $ | 375.5 | $ | 18.7 | 5.0 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||
2018 | 2017 | $ Change | % Change | 2018 | 2017 | $ Change | % Change | ||||||||||||||||||||||
Infusion Systems | $ | 81.5 | $ | 82.8 | $ | (1.3 | ) | (1.6 | )% | $ | 263.3 | $ | 202.6 | $ | 60.7 | 30.0 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||
2018 | 2017 | $ Change | % Change | 2018 | 2017 | $ Change | % Change | ||||||||||||||||||||||
Critical Care | $ | 13.5 | $ | 12.9 | $ | 0.6 | 4.7 | % | $ | 40.7 | $ | 37.2 | $ | 3.5 | 9.4 | % |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
2018 | 2017 | $ Change | % Change | 2018 | 2017 | $ Change | % Change | |||||||||||||||||||
Other Revenue | $ | — | $ | 11.1 | $ | (11.1 | ) | (100.0 | )% | $ | — | $ | 61.3 | * | * |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||
2018 | 2017 | $ Change | % Change | 2018 | 2017 | $ Change | % Change | ||||||||||||||||||||||
SG&A | $ | 78.1 | $ | 76.8 | $ | 1.3 | 2 | % | $ | 248.6 | $ | 226.8 | $ | 21.8 | 10 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||
2018 | 2017 | $ Change | % Change | 2018 | 2017 | $ Change | % Change | ||||||||||||||||||||||
R&D | $ | 13.2 | $ | 12.8 | $ | 0.4 | 3.1 | % | $ | 39.3 | $ | 37.4 | $ | 1.9 | 5.1 | % |
Nine months ended September 30, | ||||||||||||
2018 | 2017 | Change | ||||||||||
Investing Cash Flows: | ||||||||||||
Purchases of property and equipment | $ | (75,057 | ) | $ | (51,702 | ) | $ | (23,355 | ) | (1) | ||
Proceeds from sale of assets | 13,000 | 2 | 12,998 | (2) | ||||||||
Business acquisitions, net of cash acquired | (1,300 | ) | (157,097 | ) | 155,797 | (3) | ||||||
Intangible asset additions | (5,375 | ) | (3,718 | ) | (1,657 | ) | ||||||
Purchases of investment securities | (30,495 | ) | (24,743 | ) | (5,752 | ) | (4) | |||||
Proceeds from sale of investment securities | 14,940 | — | 14,940 | (5) | ||||||||
Net cash used in investing activities | $ | (84,287 | ) | $ | (237,258 | ) | $ | 152,971 |
(2) | In 2018, we sold the land and building related to our Dominican Republic manufacturing facilities acquired as part of the 2017 HIS acquisition. |
(3) | Our business acquisitions will vary from period to period based upon our current growth strategy and our ability to execute on desirable target companies. On February 3, 2017, we acquired HIS for $260 million in cash consideration (net of working capital adjustments), financed with existing cash balances and a three-year interest-only seller note of $75 million and we delivered 3.2 million shares of our common stock to Pfizer. |
(4) | Our purchases of investment securities will vary from period to period based on current cash needs, planning for known future transactions and due to changes in our investment strategy. |
Nine months ended September 30, | ||||||||||||
2018 | 2017 | Change | ||||||||||
Financing Cash Flows: | ||||||||||||
Proceeds from exercise of stock options | $ | 14,211 | $ | 19,967 | $ | (5,756 | ) | (1) | ||||
Proceeds from employee stock purchase plan | — | 2,705 | (2,705 | ) | (2) | |||||||
Tax withholding payments related to net share settlement of equity awards | (6,119 | ) | (3,951 | ) | (2,168 | ) | (3) | |||||
Net cash provided by financing activities | $ | 8,092 | $ | 18,721 | $ | (10,629 | ) |
• | future growth; future operating results and various elements of operating results, including future expenditures and effects with respect to sales and marketing and product development and acquisition efforts; future sales and unit volumes of products; expected increases and decreases in sales; deferred revenue; accruals for restructuring charges, future license, royalty and revenue share income; production costs; gross margins; litigation expense; future SG&A and R&D expenses; manufacturing expenses; future costs of expanding our business; income; losses; cash flow; amortization; source of funds for capital purchases and operations; future tax rates; alternative sources of capital or financing; changes in working capital items such as receivables and inventory; selling prices; and income taxes; |
• | factors affecting operating results, such as shipments to specific customers; reduced dependence on current proprietary products; loss of a strategic relationship; change in demand; domestic and international sales; expansion in international markets, selling prices; future increases or decreases in sales of certain products and in certain markets and distribution channels; maintaining strategic relationships and securing long-term and multi-product contracts with large healthcare providers and major buying organizations; increases in systems capabilities; introduction, development and sales of new products, acquisition and integration of |
• | new or extended contracts with manufacturers and buying organizations; dependence on a small number of customers; loss of larger distributors and the ability to locate other distributors; the impact of our acquisition of the HIS business; growth of our Clave products in future years; design features of Clave products; the outcome of our strategic initiatives; regulatory approvals and compliance; outcome of litigation; patent protection and intellectual property landscape; patent infringement claims and the impact of newly issued patents on other medical devices; competitive and market factors, including continuing development of competing products by other manufacturers; improved production processes and higher volume production; innovation requirements; consolidation of the healthcare provider market and downward pressure on selling prices; distribution or financial capabilities of competitors; healthcare reform legislation; use of treasury stock; working capital requirements; liquidity and realizable value of our investment securities; future investment alternatives; foreign currency denominated financial instruments; foreign exchange risk; commodity price risk; our expectations regarding liquidity and capital resources over the next twelve months; capital expenditures; plans to convert existing space; acquisitions of other businesses or product lines, indemnification liabilities and contractual liabilities. |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of a publicly announced program | Approximate dollar value that may yet be purchased under the program(1) | ||||||||||
07/01/2018 — 07/31/2018 | — | $ | — | — | $ | 7,169,000 | ||||||||
08/01/2018 — 08/31/2018 | — | $ | — | — | $ | 7,169,000 | ||||||||
09/01/2018 — 09/30/2018 | — | $ | — | — | $ | 7,169,000 | ||||||||
Third quarter of 2018 total | — | $ | — | — | $ | 7,169,000 |
(1) | Our common stock purchase plan, which authorized the repurchase of up to $40.0 million of our common stock, was authorized by our Board of Directors and publicly announced on July 19, 2010. This plan has no expiration date. We are not obligated to make any purchases under our stock purchase program. Subject to applicable state and federal corporate and securities laws, purchases under a stock purchase program may be made at such times and in such amounts as we deem appropriate. Purchases made under our stock purchase program can be discontinued at any time we feel additional purchases are not warranted. |
(Registrant) | ||
/s/ Scott E. Lamb | Date: | November 8, 2018 |
Scott E. Lamb | ||
Chief Financial Officer | ||
(Principal Financial Officer) |
Exhibit 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
Exhibit 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
Exhibit 32.1 | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
Exhibit 101.INS | XBRL Instance Document | |
Exhibit 101.SCH | XBRL Taxonomy Extension Schema Document | |
Exhibit 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
Exhibit 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
Exhibit 101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
Exhibit 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
1. | I have reviewed this quarterly report on Form 10-Q of ICU Medical, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 8, 2018 | /s/ Vivek Jain |
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of ICU Medical, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 8, 2018 | /s/ Scott E. Lamb |
Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
November 8, 2018 | /s/ Vivek Jain |
Vivek Jain |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
November 8, 2018 | /s/ Scott E. Lamb |
Scott E. Lamb |
DEI Document - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Oct. 31, 2018 |
|
Entity Information [Line Items] | ||
Entity Registrant Name | ICU MEDICAL INC/DE | |
Entity Central Index Key | 0000883984 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Trading Symbol | icui | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 20,489,181 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
REVENUES: | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 327,169 | $ 343,236 | $ 1,059,662 | $ 922,489 |
Cost of goods sold | 192,582 | 231,638 | 624,274 | 633,884 |
Gross Profit | 134,587 | 111,598 | 435,388 | 288,605 |
OPERATING EXPENSES: | ||||
Selling, general and administrative | 78,068 | 76,820 | 248,603 | 226,812 |
Research and development | 13,181 | 12,769 | 39,342 | 37,377 |
Restructuring, strategic transaction and integration | 24,012 | 18,711 | 64,271 | 68,033 |
Change in fair value of contingent earn-out | 18,500 | 7,000 | 20,500 | 13,000 |
Contract settlement | 0 | 0 | 28,917 | 0 |
TOTAL OPERATING EXPENSES | 133,761 | 115,300 | 401,633 | 345,222 |
INCOME (LOSS) FROM OPERATIONS | 826 | (3,702) | 33,755 | (56,617) |
Bargain purchase gain | 0 | 8,534 | 0 | 71,771 |
Interest Expense | (283) | (705) | (548) | (1,743) |
OTHER INCOME (EXPENSE), net | 894 | 583 | 1,650 | (2,030) |
INCOME BEFORE INCOME TAXES | 1,437 | 4,710 | 34,857 | 11,381 |
(PROVISION) BENEFIT FOR INCOME TAXES | (1,218) | (4,574) | 1,291 | 7,558 |
NET INCOME | $ 219 | $ 136 | $ 36,148 | $ 18,939 |
NET INCOME (LOSS) PER SHARE | ||||
Basic (in dollars per share) | $ 0.01 | $ 0.01 | $ 1.78 | $ 0.97 |
Diluted (in dollars per share) | $ 0.01 | $ 0.01 | $ 1.67 | $ 0.92 |
WEIGHTED AVERAGE NUMBER OF SHARES | ||||
Basic (in shares) | 20,474 | 19,984 | 20,362 | 19,433 |
Diluted (in shares) | 21,633 | 21,106 | 21,588 | 20,603 |
Product [Member] | ||||
REVENUES: | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 327,169 | $ 343,084 | $ 1,059,662 | $ 921,544 |
Product and Service, Other [Member] | ||||
REVENUES: | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | $ 152 | $ 0 | $ 945 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Net Income | $ 219 | $ 136 | $ 36,148 | $ 18,939 |
Other comprehensive income (loss), net of tax | ||||
Cash flow hedge adjustments, net of taxes of $(372) and $82 for the three and months ended September 30, 2018 and 2017, respectively and $(376) and $(603) for the nine months ended September 30, 2018 and 2017, respectively | 1,178 | (134) | 1,192 | 985 |
Foreign currency translation adjustment, net of taxes of $0 for the three months ended September 30, 2018 and 2017 and $0 and $56 for the nine months ended September 30, 2018 and 2017, respectively | (5,415) | 5,833 | (7,705) | 16,747 |
Other Adjustments, Net of Taxes of $0 for all periods | 6 | (90) | (238) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | 11 | |||
Other comprehensive (loss) income, net of taxes | (4,231) | 5,609 | (6,502) | 17,494 |
Comprehensive (Loss) Income | (4,012) | 5,745 | 29,646 | 36,433 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | (372) | 82 | (376) | (603) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 0 | 0 | 0 | (56) |
Other Comprehensive (Income) Loss, Other Adjustments, Tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
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Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
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CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
Net Income | $ 219 | $ 136 | $ 36,148 | $ 18,939 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Depreciation and amortization | 55,069 | 47,512 | |||||||
Provision for doubtful accounts | 638 | 1,906 | |||||||
Provision for warranty and returns | 1,817 | 3,639 | |||||||
Stock compensation | 17,992 | 13,387 | |||||||
Loss on disposal of property and equipment | 760 | 3,177 | |||||||
Bond premium amortization | 313 | 12 | |||||||
Debt Issuance Costs amortization | 216 | 0 | |||||||
Bargain purchase gain | 0 | (71,771) | |||||||
Change in fair value of contingent earn-out | 18,500 | 7,000 | 20,500 | 13,000 | |||||
Asset Impairment Charges | 269 | 0 | |||||||
Impairment of Intangible Assets, Finite-lived | 5,000 | 0 | |||||||
Other Noncash Expense | 2,100 | 1,690 | |||||||
Cash provided by (used in) changes in operating assets and liabilities | |||||||||
Accounts receivable | (38,957) | (51,498) | |||||||
Inventories | 12,201 | 148,482 | |||||||
Prepaid expenses and other assets | (1,826) | 6,214 | |||||||
Related-party receivables | 31,004 | (131,617) | |||||||
Accounts payable | (2,094) | 17,551 | |||||||
Accrued liabilities | (18,509) | 63,234 | |||||||
Income taxes, including excess tax benefits and deferred income taxes | (12,359) | (13,982) | |||||||
Net cash provided by operating activities | 110,282 | 69,875 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
Purchases of property and equipment | (75,057) | (51,702) | |||||||
Proceeds from sale of asset | 13,000 | 2 | |||||||
Business acquisitions, net of cash acquired | (1,300) | (157,097) | |||||||
Intangible assets additions | (5,375) | (3,718) | |||||||
Purchases of investment securities | (30,495) | (24,743) | |||||||
Proceeds from sale of investment securities | 14,940 | 0 | |||||||
Net cash used in investing activities | (84,287) | (237,258) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
Proceeds from exercise of stock options | 14,211 | 19,967 | |||||||
Proceeds from employee stock purchase plan | 0 | 2,705 | |||||||
Payments Related to Tax Withholding for Share-based Compensation | 6,119 | 3,951 | |||||||
Net cash (used in) provided by financing activities | 8,092 | 18,721 | |||||||
Effect of exchange rate changes on cash | (5,343) | 4,194 | |||||||
NET INCREASE DECREASE IN CASH AND CASH EQUIVALENTS | 28,744 | (144,468) | |||||||
CASH AND CASH EQUIVALENTS, beginning of period | 290,072 | [1] | 445,082 | $ 445,082 | |||||
CASH AND CASH EQUIVALENTS, end of period | 318,816 | 300,614 | 318,816 | 300,614 | 290,072 | [1] | |||
NON-CASH INVESTING ACTIVITIES | |||||||||
Capital Expenditures Incurred but Not yet Paid | 1,184 | 1,435 | |||||||
Fair Value of Assets Acquired | 893,582 | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired | (157,097) | ||||||||
Proceeds from Issuance of Debt | (75,000) | (75,000) | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | 7,512 | ||||||||
Business Combination, Contingent Consideration, Liability, Noncurrent | (19,000) | (19,000) | (19,000) | ||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | (413,139) | $ (450,400) | |||||||
BARGAIN PURCHASE GAIN | $ 0 | $ (8,534) | 0 | (71,771) | |||||
Goodwill, Period Increase (Decrease) | 1,015 | ||||||||
Increase (Decrease) in Assumed Liabilities | 166,102 | ||||||||
Tangent [Member] | |||||||||
NON-CASH INVESTING ACTIVITIES | |||||||||
BARGAIN PURCHASE GAIN | $ (71,771) | ||||||||
|
Basis of Presentation: |
9 Months Ended |
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Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation [Text Block] | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S.") and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and reflect all adjustments, consisting of only normal recurring adjustments, which are, in the opinion of management, necessary for a fair statement of the consolidated results for the interim periods presented. Results for the interim period are not necessarily indicative of results for the full year. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K of ICU Medical, Inc., ("ICU") a Delaware corporation, filed with the SEC for the year ended December 31, 2017. We are engaged in the development, manufacturing and sale of innovative medical products used in infusion therapy, and critical care markets. We sell the majority of our products through our direct sales force and through independent distributors throughout the U. S. and internationally. Additionally, we sell our products on an original equipment manufacturer basis to other medical device manufacturers. All subsidiaries are wholly owned and are included in the condensed consolidated financial statements. All intercompany balances and transactions have been eliminated. |
New Accounting Pronouncements: |
9 Months Ended |
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Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | New Accounting Pronouncements Recently Adopted Accounting Standards In March 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. This update adds SEC paragraphs pursuant to the SEC Staff Accounting Bulletin No. 118, which expresses the view of the staff regarding application of Topic 740, Income Taxes, in the reporting period that includes December 22, 2017 - the date on which the Tax Cuts and Jobs Act (the "Tax Act") was signed into law. We adopted this ASU in the prior year and it did not have a material impact on our consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments in this update change both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results to facilitate financial reporting that more closely reflects an entity's risk management activities. The amendments in this update also make certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge documentation requirements and assessing hedge effectiveness. The amendments are effective for the fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2018. For cash flow and net investment hedges existing at the date of adoption, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the update. We early adopted this ASU on January 1, 2018 and this ASU did not have a material impact on our consolidated financial statements or related footnote disclosures. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Under the ASU, an entity will account for the effects of a modification unless (i) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified, (ii) the vesting conditions of the modified award are the same vesting conditions as the original award immediately before the original award is modified, and (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The amendments in this ASU are effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. We adopted this ASU on January 1, 2018 and this ASU did not have a material impact on our consolidated financial statements or related footnote disclosures. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The amendments in this update clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update provide a screen to determine when a set (integrated set of assets and activities) is not a business. If the screen is not met, it (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) removes the evaluation of whether a market participant could replace the missing elements. The amendments in ASU 2017-01 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. The amendments in this ASU should be applied prospectively on or after the effective date. We adopted this ASU on January 1, 2018 and this ASU did not have a material impact on our consolidated financial statements or related footnote disclosures. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. Current generally accepted accounting principles prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until after the asset has been sold to an outside party. The amendments in ASU 2016-16 eliminates this prohibition. Accordingly an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Amendments in this update are effective for annual reporting periods beginning after December 15, 2017. We adopted this ASU on January 1, 2018 and this ASU did not have a material impact on our consolidated financial statements or related footnote disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 provides specific guidance on eight cash flow issues where current guidance is unclear or does not include any specifics on classification. The eight specific cash flow issues are: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with zero coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies, including bank-owned policies; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments in ASU 2016-15 are effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. Amendments should be applied using a retrospective transition method to each period presented. We adopted this ASU on January 1, 2018 and this ASU did not have a material impact on our consolidated financial statements or related footnote disclosures. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in the consolidation of the investee). The amendments in this update will be effective for fiscal years beginning after December 15, 2017. We adopted this ASU on January 1, 2018 and this ASU did not have a material impact on our consolidated financial statements or related footnote disclosures. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 removes inconsistencies and weaknesses in revenue requirements, provides a more robust framework for addressing revenue issues, improves comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets, provides more useful information to users of financial statements through improved disclosure requirements and simplifies the preparation of financial statements by reducing the number of requirements to which an entity must refer. This guidance requires that an entity depict the consideration by applying a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. On April 1, 2015, the FASB voted for a one-year deferral of the effective date of the new revenue recognition standard, ASU 2014-09. On July 15, 2015, the FASB affirmed these changes, which requires public entities to apply the amendments in ASU 2014-09 for annual reporting beginning after December 15, 2017. Subsequent to the issuance of this ASU, the FASB issued three amendments: ASU No. 2016-08, which clarifies principal versus agent considerations; ASU 2016-10, which clarifies guidance related to identifying performance obligations and licensing implementation; and ASU 2016-12, which provides narrow-scope improvements and practical expedients. All of the amendments have the same effective date mentioned above. We adopted the standard effective January 1, 2018. See Note 5, Revenue for a discussion of the impact and the required enhanced disclosures. Recently Issued Accounting Standards In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements in Topic 820. The amendments remove from disclosure: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels 3; and the valuation processes for Level 3 fair value measurements. The amendments also made the following disclosure modifications: for investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly; and the amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The amendments also added the following disclosure requirements: the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in ASU 2018-02 are effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of this ASU on the consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments in this update also require certain disclosures about stranded tax effects. The amendments in ASU 2018-02 are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the impact of this ASU on the consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this update remove the second step of the impairment test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. The amendments in ASU 2017-04 are effective for the annual or interim impairment test in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. This ASU is not expected to have a material impact on our consolidated financial statements or related footnote disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This update amends the FASB's guidance on the impairment of financial instruments by requiring timelier recording of credit losses on loans and other financial instruments. The ASU adds an impairment model that is based on expected losses rather than incurred losses. The ASU also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The amendments in this update will be effective for fiscal years beginning after December 15, 2019. Early adoption is permitted as of the fiscal years beginning after December 15, 2018. The updated guidance requires a modified retrospective adoption. We are currently evaluating the impact of this ASU on the consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The amendments in this update require an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The updated guidance requires a modified retrospective adoption. In July 2018, the FASB issued ASU No. 2018-11, Targeted Improvements. The amendments in this update will provide entities with an additional (and optional) transition method to adopt the new lease requirements by allowing entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The amendments in this update also provide lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease contract. This expedient is limited to circumstances in which the nonlease components otherwise would be accounted for under the new revenue guidance and both (1) the timing and pattern of transfer are the same for the nonlease components and associated lease component and (2) the lease component, if accounted for separately, would be classified as an operating lease. If the lessor uses this practical expedient they would account for the lease contract in accordance with Topic 606 if the nonlease component is the predominant component otherwise, the lessor should account for the combined component as an operating lease in accordance with Topic 842. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases. This ASU clarifies certain language in ASU 2016-02 and corrects certain references and inconsistencies. As we have not yet adopted ASU 2016-02, the effective date of ASU 2018-11and ASU 2018-10 is the same as ASU 2016-02. We are currently evaluating the impact of these ASUs on the consolidated financial statements and related disclosures. Early adoption is permitted. The amendments in these updates will be effective for fiscal years beginning after December 15, 2018. |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Recently Issued Accounting Standards In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements in Topic 820. The amendments remove from disclosure: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels 3; and the valuation processes for Level 3 fair value measurements. The amendments also made the following disclosure modifications: for investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly; and the amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The amendments also added the following disclosure requirements: the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in ASU 2018-02 are effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of this ASU on the consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments in this update also require certain disclosures about stranded tax effects. The amendments in ASU 2018-02 are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the impact of this ASU on the consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this update remove the second step of the impairment test. An entity will apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. The amendments in ASU 2017-04 are effective for the annual or interim impairment test in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. This ASU is not expected to have a material impact on our consolidated financial statements or related footnote disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This update amends the FASB's guidance on the impairment of financial instruments by requiring timelier recording of credit losses on loans and other financial instruments. The ASU adds an impairment model that is based on expected losses rather than incurred losses. The ASU also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The amendments in this update will be effective for fiscal years beginning after December 15, 2019. Early adoption is permitted as of the fiscal years beginning after December 15, 2018. The updated guidance requires a modified retrospective adoption. We are currently evaluating the impact of this ASU on the consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The amendments in this update require an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The updated guidance requires a modified retrospective adoption. In July 2018, the FASB issued ASU No. 2018-11, Targeted Improvements. The amendments in this update will provide entities with an additional (and optional) transition method to adopt the new lease requirements by allowing entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The amendments in this update also provide lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease contract. This expedient is limited to circumstances in which the nonlease components otherwise would be accounted for under the new revenue guidance and both (1) the timing and pattern of transfer are the same for the nonlease components and associated lease component and (2) the lease component, if accounted for separately, would be classified as an operating lease. If the lessor uses this practical expedient they would account for the lease contract in accordance with Topic 606 if the nonlease component is the predominant component otherwise, the lessor should account for the combined component as an operating lease in accordance with Topic 842. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases. This ASU clarifies certain language in ASU 2016-02 and corrects certain references and inconsistencies. As we have not yet adopted ASU 2016-02, the effective date of ASU 2018-11and ASU 2018-10 is the same as ASU 2016-02. We are currently evaluating the impact of these ASUs on the consolidated financial statements and related disclosures. Early adoption is permitted. The amendments in these updates will be effective for fiscal years beginning after December 15, 2018. |
Acquisition and Strategic Transaction (Notes) |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | Acquisition, Strategic Transaction and Integration Expenses Acquisitions On February 1, 2017, we acquired 100% interest in Fannin (UK) Limited ("Fannin") for total consideration of approximately $1.5 million. Fannin provides infusion therapy consumable products to the healthcare sector in the United Kingdom and Ireland. On February 3, 2017, we acquired 100% interest in Pfizer Inc.’s (“Pfizer”) Hospira Infusion Systems ("HIS") business for total cash consideration of approximately $255.8 million (net of estimated working capital adjustments paid at closing), which was financed with existing cash balances and a $75 million three-year interest-only seller note. We also issued 3.2 million shares of our common stock. The fair value of the common shares issued to Pfizer was determined based on the closing price of our common shares on the issuance date, discounted to reflect a contractual lock-up period whereby Pfizer cannot transfer the shares, subject to certain exceptions, until the earlier of (i) the expiration of Pfizer’s services to us in the related transitional services agreement or (ii) eighteen months from the closing date. Additionally, Pfizer also may be entitled up to an additional $225 million in cash contingent consideration based on the achievement of performance targets for the combined company for the three years ending December 31, 2019 ("Earnout Period"). In the event that the sum of our Adjusted EBITDA as defined in the Amended and Restated Stock and Asset Purchase Agreement between us and Pfizer (the “HIS Purchase Agreement”) for the three years in the Earnout Period (the "Cumulative Adjusted EBITDA") is equal to or exceeds approximately $1 billion ("the "Earnout Target"), then Pfizer will be entitled to receive the full amount of the earnout. In the event that the Cumulative Adjusted EBITDA is equal to or greater than 85% of the Earnout Target (but less than the Earnout Target), Pfizer will be entitled to receive the corresponding percentage of the earnout. In the event that the Cumulative Adjusted EBITDA is less than 85% of the Earnout Target, then no earnout amount will be earned by Pfizer. The initial fair value of the earn-out was determined by employing a Monte Carlo simulation in a risk neutral framework. The underlying simulated variable was adjusted EBITDA. The adjusted EBITDA volatility estimate was based on a study of historical asset volatility for a set of comparable public companies. The model includes other assumptions including the market price of risk, which was calculated as the weighted average cost of capital ("WACC") less the long-term risk-free rate. We believe that the acquisition of the HIS business, which includes IV pumps, solutions and consumable devices complements our pre-existing business by creating a company that has a complete infusion therapy product portfolio. We believe that the acquisition significantly enhances our global footprint and platform for continued competitiveness and growth. The purchase price allocation for HIS was completed during the fourth quarter of 2017. Final Purchase Price The following table summarizes the final purchase price and the final allocation of the purchase price related to the assets and liabilities purchased (in thousands, except per share data):
______________________________ (1) Identifiable intangible assets includes $48 million of customer relationships, $44 million of developed technology - pumps and dedicated sets, $34 million of developed technology - consumables, and $5 million of in-process research and development ("IPR&D"). The weighted amortization period are as follows: approximately nine years for the total identifiable assets; eight years for customer relationships; ten years for the developed technology - pumps and dedicated sets; and twelve years for the developed technology - consumables. The IPR&D is non-amortizing until the associated research and development efforts are complete. (2) Long-term liabilities primarily consisted of contract liabilities, product liabilities and long-term employee benefits. The fair value of the assets acquired and liabilities assumed exceeded the fair value of the consideration to be paid resulting in a bargain purchase gain. Before recognizing a gain on a bargain purchase, we reassessed the methods used in the purchase accounting and verified that we had identified all of the assets acquired and all of the liabilities assumed, and that there were no additional assets or liabilities to be considered. We also reevaluated the fair value of the contingent consideration transferred to determine that it was appropriate. We determined that the bargain purchase gain was primarily attributable to expected restructuring costs as well as a reduction to the initially agreed upon transaction price caused primarily by revenue shortfalls across all market segments of the HIS business, negative manufacturing variance due to the drop in revenue and higher operating and required stand up costs, when compared to forecasts of the HIS business at the time that the purchase price was agreed upon. After the continuing review of the product demand and operations of the HIS business, including the resulting expected restructuring activities, we forecasted our estimated Adjusted EBITDA from the HIS business in 2017 to be $35 million - $40 million, which is considerably lower than the forecast contemplated in initial negotiations with Pfizer, which resulted in an estimated fair value of $19 million related to the $225 million earn out. Restructuring costs, if incurred, would be expensed in future periods (see Note 4: Restructuring Charges). The bargain purchase gain is separately stated below income from operations in the accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2017. The identifiable intangible assets and other long-lived assets acquired have been valued as Level 3 assets at fair market value. The estimated fair value of identifiable intangible assets were developed using the income approach and are based on critical estimates, judgments and assumptions derived from analysis of market conditions, discount rate, discounted cash flows, royalty rates, customer retention rates and estimated useful lives. Fixed assets were valued with the consideration of remaining economic lives. The raw materials inventory was valued at historical cost and adjusted for any obsolescence, the work in process was valued at estimated sales proceeds less costs to complete and costs to sell, and finished goods inventory was valued at estimated sales proceeds less costs to sell. The prepaid expenses and other current assets and assumed liabilities were recorded at their carrying values as of the date of the acquisition, as their carrying values approximated their fair values due to their short-term nature. On November 29, 2017, we acquired Medical Australia for total consideration of $9.0 million. Medical Australia delivers similar consumable Infusion products as our current businesses to Australia and surrounding regions. The purchase price allocation is preliminary and subject to future revision as the acquired assets and liabilities assumed are dependent upon the finalization of the related valuations. Strategic Transaction and Integration Expenses We incurred and expensed $23.5 million and $61.3 million in transaction and integration expenses during the three and nine months ended September 30, 2018 primarily related to the integration of the HIS business. These costs primarily related to consulting, legal and the transitional service agreement. We incurred $15.5 million and $49.0 million in transaction and integration expenses during the three and nine months ended September 30, 2017, respectively. The transaction and integration expenses were primarily related to our acquisition of the HIS business. |
Restructuring Charges (Notes) |
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Restructuring Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Charges During the nine months ended September 30, 2018 and the year ended December 31, 2017, restructuring charges were incurred as a result of integrating the HIS acquired operations into our business and include severance costs related to involuntary employee terminations and facility exit costs related to the closure of the Dominican Republic manufacturing facility, which was sold in March 2018. All material charges in regard to these restructuring activities have been incurred as of September 30, 2018. The cumulative amount incurred to date in connection with the HIS acquisition is $21.8 million. Restructuring charges are included in the restructuring, strategic transaction and integration line item in our condensed consolidated statement of operations. During the year ended December 31, 2015, we incurred restructuring charges related to an agreement with Dr. Lopez, a member of our Board of Directors and a former employee in our research and development department, pursuant to which we bought out Dr. Lopez's right to employment under his then-existing employment agreement. The buy-out, including payroll taxes, is paid in equal monthly installments until December 2020. The following table summarizes the details of changes in our restructuring-related accrual for the period ended September 30, 2018 (in thousands):
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Revenue (Notes) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Text Block] | Revenue Adoption of ASC Topic 606, “Revenue from Contracts with Customers” We adopted ASU No. 2014-09, Revenue from Contracts with Customers (ASC Topic 606), effective January 1, 2018 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting beginning after January 1, 2018 are presented under ASC Topic 606, while prior period amounts are not adjusted and will continue to be reported in accordance with our historic accounting under ASC Topic 605, Revenue Recognition. Due to the cumulative impact, net of tax, of adopting ASC Topic 606, we recorded a net increase of $6.3 million to opening retained earnings as of January 1, 2018. The impact is primarily related to our bundled arrangements where we sell software licenses and implementation services, in addition to equipment, consumables and solutions. Under ASC Topic 605, revenue for the equipment was recognized upon delivery and software licenses and implementation services were typically recognized over the contract term. Under ASC Topic 606, revenue for the bundled equipment, software and software implementation services are recognized upon implementation. This results in an acceleration of software related revenue, offset by a delay in the recognition of related revenue of the equipment. Under ASC Topic 605, consumables and solutions revenues were typically recognized upon delivery. Under ASC 606, consumables and solutions revenues are recognized as the customer obtains control of the asset, which is at shipping point. This results in an acceleration in the recognition of consumables and solutions revenue. Additionally, the timing of revenue recognition for software license renewals changed under ASC Topic 606. Under ASC Topic 605, revenue related to software renewals was recognized on a ratable basis over the license period. Under ASC Topic 606, the license, which is considered functional IP, is considered to be transferred to the customer at a point in time, specifically, at the start of each annual renewal period. As a result, under ASC Topic 606, revenue related to our annual software license renewals is accelerated when compared to ASC Topic 605. Revenues are recognized when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The following tables represent the amounts by which each financial statement line item is affected in the current year as a result of applying ASC Topic 606 (in thousands):
Revenue Recognition The following table represents our revenues disaggregated by geography (in thousands):
The following table represents our revenues disaggregated by product (in thousands):
_______________________________ (1) As noted above, prior period amounts have not been adjusted under the modified retrospective method. (2) For the three and nine months ended September 30, 2018, Infusion Systems revenue includes $4.2 million and $10.2 million, respectively, in revenue recognized over time. The remainder of our revenue is recognized at a point in time. See below for details related to arrangements with multiple performance obligations. Our primary product lines are Infusion Consumables, IV Solutions, Infusion Systems and Critical Care. The vast majority of our sales of these products are made on a stand-alone basis to hospitals, group purchasing organization member hospitals and distributors. Our product sales are typically free on board shipping point and ownership of the product transfers to the customer on shipment. As a result, revenue is typically recognized upon transfer of control of the products, which we deem to be at point of shipment. Payment is typically due in full within 30 days of delivery or the start of the contract term. Revenue is recorded in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We offer certain volume-based rebates to our distribution customers, which we record as variable consideration when calculating the transaction price. Rebates are offered on both a fixed and tiered/variable basis. In both cases, we use information available at the time and our historical experience with each customer to estimate the most likely rebate amount. We also warrant products against defects and have a policy permitting the return of defective products, for which we accrue and expense at the time of sale using information available and our historical experience. We also provide for extended service-type warranties, which we consider to be separate performance obligations. We allocate a portion of the transaction price to the extended service-type warranty based on its estimated relative selling price, and recognize revenue over the period the warranty service is provided. Arrangements with Multiple Performance Obligations We also enter into arrangements which include multiple performance obligations. These arrangements typically consist of the sale of infusion systems equipment, along with annual software licenses and related software implementation services, as well as infusion consumables, IV solutions and extended warranties. For such arrangements, we allocate the transaction price to each performance obligation based on its relative standalone selling price. Equipment, software licenses and software implementation services are typically combined into a single performance obligation and recognized upon implementation. As annual software licenses are renewed, we recognize revenue for the license at a point in time, at the start of each annual renewal period. Consumables and solutions are separate performance obligations, recognized at a point in time. The most significant judgments related to these arrangements include:
Contract balances The following table presents our changes in the contract balances for the nine months ended September 30, 2018 (in thousands):
As of September 30, 2018, revenue from remaining performance obligations related to implementation of software and equipment is $6.4 million. We expect to recognize substantially all of this revenue within the next three months. Revenue from remaining performance obligations related to annual software licenses is $1.5 million. We expect to recognize substantially all of this revenue over the next twelve months. Costs to Obtain a Contract with a Customer As part of the cost to obtain a contract, we may pay incremental commissions to sales employees upon entering into a sales contract. Under ASC Topic 606, we have elected to expense these costs as incurred as the period of benefit is less than one year. Practical expedients and exemptions In addition to the practical expedient applied to sales commissions, under ASC Topic 606, we elected to apply the practical expedient for shipping and handling costs incurred after the customer has obtained control of a good. We will continue to treat these costs as a fulfillment cost rather than as an additional promised service. |
Net Income Per Share: |
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Net Income Per Share [Text Block] | Net Income (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period plus dilutive securities. Dilutive securities include outstanding common stock options and unvested restricted stock units, less the number of shares that could have been purchased with the proceeds from the exercise of the options, using the treasury stock method. Options that are anti-dilutive, where their exercise price exceeds the average market price of the common stock are not included in the treasury stock method calculation. There were 18 and 48 anti-dilutive securities for the three months ended September 30, 2018 and 2017, respectively. There were 3,694 and 590 anti-dilutive securities for the nine months ended September 30, 2018 and 2017, respectively. The following table presents the calculation of net earnings per common share (“EPS”) — basic and diluted (in thousands, except per share data):
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Derivative Financial Instruments (Notes) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivatives and Hedging Activities Hedge Accounting and Hedging Program During the second quarter of 2017, we implemented a cash flow hedging program. The purpose of our hedging program is to manage the foreign currency exchange rate risk on forecasted expenses denominated in currencies other than the functional currency of the operating unit. We do not issue derivatives for trading or speculative purposes. In May 2017, we entered into a two-year cross-currency par forward contract to hedge a portion of our Mexico forecasted expenses denominated in Pesos ("MXN"). To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. The par forward contract is designated and qualifies as a cash flow hedge. Our derivative instrument is recorded at fair value on the condensed consolidated balance sheets and is classified based on the instrument's maturity date. We record changes in the intrinsic value of the effective portion of the gain or loss on the derivative instrument as a component of Other Comprehensive Income and we reclassify that gain or loss into earnings in the same line item associated with the forecasted transaction and in the same period during which the hedged transaction affects earnings. The total notional amount of our outstanding derivative as of September 30, 2018 was approximately 240.1 million MXN. The term of our currency forward contract is May 1, 2017 to May 1, 2019. The derivative instrument matures in equal monthly amounts at a fixed forward rate of 20.01MXN/USD over the term of the two-year contract. In January 2018, we entered into an additional six-month cross-currency par forward contract that extends our current hedge of a portion of our Mexico forecasted expenses denominated in MXN. The total notional amount of this outstanding derivative as of September 30, 2018 was approximately 183.9 million MXN. The term of the six-month contract is May 1, 2019 to November 1, 2019. The derivative instrument matures in equal monthly amounts at a fixed forward rate of 20.43 MXN/USD over the term of the six-month contract. The following table presents the fair values of our derivative instruments included within the Condensed Consolidated Balance Sheet as of September 30, 2018 and December 31, 2017 (in thousands):
The following table presents the amounts affecting the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017 (in thousands):
We recognized the following gains on our foreign exchange contracts designated as a cash flow hedge (in thousands):
As of September 30, 2018, we expect approximately $0.9 million of the deferred gains on the outstanding derivatives in accumulated other comprehensive income to be reclassified to net income during the next 12 months concurrent with the underlying hedged transactions also being reported in net income. |
Fair Value Measurement: |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | Fair Value Measurement Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There are three levels of inputs that may be used to measure fair value:
During the first quarter of 2017, we recognized an earn-out liability upon the acquisition of HIS from Pfizer. Pfizer may be entitled up to $225 million in cash if certain performance targets for the combined company for the three years ending December 31, 2019 are achieved. The initial fair value of the earn-out was determined by employing a Monte Carlo simulation in a risk neutral framework. The underlying simulated variable was adjusted EBITDA. The adjusted EBITDA volatility estimate was based on a study of historical asset volatility for a set of comparable public companies. The model includes other assumptions including the market price of risk, which was calculated as the WACC less the long-term risk free-rate. The initial value assigned to the contingent consideration was a result of forecasted product demand of our HIS business, as discussed further in Note 3: Acquisition, Strategic Transaction and Integration Expenses. At each reporting date subsequent to the acquisition we re-measure the earn-out using the same methodology above and recognize any changes in value. If the probability of achieving the performance target significantly changes from what we initially anticipated, the change could have a significant impact on our financial statements in the period recognized. Our contingent earn-out liability is separately stated in our condensed consolidated balance sheets. The following table provides a reconciliation of the Level 3 earn-out liability measured at estimated fair value as of December 31, 2017 to September 30, 2018 (in thousands):
The fair value of the earn-out at September 30, 2018 changed from the fair value calculated at December 31, 2017 due to a change in the underlying cumulative adjusted EBITDA forecast, and changes in certain assumptions used in the Monte Carlo simulation, as detailed in the below table. The following table provides quantitative information about Level 3 inputs for fair value measurement of our earn-out liability as of December 31, 2017 and September 30, 2018. Significant increases or decreases in these inputs in isolation could result in a significant impact on our fair value measurement:
The fair value of our investments is estimated using observable market based inputs such as quoted prices, interest rates and yield curves or Level 2 inputs, which consisted of corporate bonds. The fair value of our Level 2 forward currency contracts are estimated using observable market inputs such as known notional value amounts, spot and forward exchange rates. These inputs relate to liquid, heavily traded currencies with active markets which are available for the full term of the derivative. The assets related to our Dominican Republic manufacturing facilities were classified as assets held-for-sale as of December 31, 2017. These assets are separately stated in our condensed consolidated balance sheet. The fair value of these Level 3 assets was determined as part of the HIS business valuation and was based on a market approach using comparable building and land sales data and the analysis of market conditions. There were no transfers between Levels during the nine months ended September 30, 2018. Our assets and liabilities measured at fair value on a recurring basis consisted of the following (Level 1, 2 and 3 inputs as defined above) (in thousands):
Our assets measured at fair value on a nonrecurring basis consisted of the following (Level 1, 2 and 3 inputs as defined above) (in thousands):
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Investment Securities (Notes) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investment Securities Our investment securities currently consist of short-term and long-term corporate bonds. Our investment securities are considered available-for-sale and are “investment grade” and carried at fair value. Available-for-sale securities are recorded at fair value, and unrealized holding gains and losses are recorded, net of tax, as a component of accumulated other comprehensive income (loss). Unrealized losses on available-for-sale securities are charged against net earnings when a decline in fair value is determined to be other than temporary. Our management reviews several factors to determine whether a loss is other than temporary, such as the length and extent of the fair value decline, the financial condition and near term prospects of the issuer, and for equity investments, our intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. The amortized cost of the debt securities are adjusted for the amortization of premiums computed under the effective interest method. Such amortization is included in investment income in other income on our condensed consolidated statements of operations. There have been no realized gains or losses on their disposal. Realized gains and losses are accounted for on the specific identification method. The scheduled maturities of the debt securities are between 2018 and 2020. All short-term investment securities are all callable within one year. Our short and long-term investment securities consisted of the following (in thousands):
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Prepaids and Other Current Assets (Notes) |
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Other Current Assets [Text Block] | Prepaid expenses and other current assets consist of the following (in thousands):
Related-party receivables consist of the following (in thousands):
Third-party receivables due from Pfizer relates to trade accounts receivable that has already been collected from customers by Pfizer on our behalf. HIS business acquisition related receivables include amounts due from Pfizer related to the manufacturing and supply agreements and amounts we prepaid to Pfizer for operational expenses under the transition services agreement. Pfizer became a related party to us when we issued 3.2 million shares of our common stock as partial consideration for the acquisition of HIS. On February 3, 2017, we entered into a transitional services agreement and two Manufacturing and Supply Agreements ("MSAs") with Pfizer (see Note 19, Collaborative and Other Arrangements). During the three and nine months ended September 30, 2018, the revenue for goods manufactured for Pfizer was $21.7 million and $59.3 million, respectively. During the three and nine months ended September 30, 2017, the revenue for goods manufactured for Pfizer was $16.2 million and $51.9 million, respectively. For the three and nine months ended September 30, 2018, the cost of product manufactured by Pfizer for us was $17.5 million and $57.4 million, respectively. For the three and nine months ended September 30, 2017, the cost of product manufactured by Pfizer for us was $16.1 million and $55.0 million, respectively. |
Inventories: |
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Inventories [Text Block] | Inventories Inventories consisted of the following (in thousands):
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Property and Equipment: |
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Property and Equipment [Text Block] | Property and Equipment Property and equipment consisted of the following (in thousands):
______________________________ *Instruments placed with customers consist of drug-delivery and monitoring systems placed with customer under operating leases. Depreciation expense was $15.1 million and $42.8 million for the three and nine months ended September 30, 2018, respectively, and $14.0 million and $36.6 million for the three and nine months ended September 30, 2017. |
Goodwill and Intangible Assets (Notes) |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Intangible Assets, Net Goodwill The following table presents the changes in the carrying amount of our goodwill (in thousands):
Intangible Assets, Net Intangible assets, carried at cost less accumulated amortization and amortized on a straight-lined basis, were as follows (in thousands):
Intangible assets with definite lives are amortized on a straight-line basis over their estimated useful lives. Intangible asset amortization expense was $4.1 million and $12.2 million for the three and nine months ended September 30, 2018, respectively, and $3.6 million and $10.9 million for the three and nine months ended September 30, 2017, respectively. As of September 30, 2018 estimated annual amortization for our intangible assets for each of the next five years is approximately (in thousands):
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Accrued Liabilities (Notes) |
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Accounts Payable and Accrued Liabilities Disclosure [Text Block] | Accrued Liabilities and Other Long-Term Liabilities Accrued liabilities consist of the following (in thousands):
Other long-term liabilities consist of the following (in thousands):
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Income Taxes: |
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Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes On December 22, 2017, the Tax Act was enacted into legislation, which includes a broad range of provisions affecting businesses. The Tax Act significantly revises how companies compute their U.S. corporate tax liability by, among other provisions, reducing the corporate tax rate from 35% to 21% for tax years beginning after December 31, 2017. Our accounting for the Tax Act is incomplete. As noted at year-end, however, we were able to reasonably estimate certain effects and, therefore, recorded provisional adjustments associated with the toll charge on undistributed foreign earnings and profits and revaluation of deferred taxes. Measurement-period adjustments for the toll charge and revaluation of deferred taxes recognized during the three months ended September 30, 2018 did not have a material impact on our consolidated financial statements. The effect of the measurement-period adjustments on the 2018 effective tax rate was approximately a two percentage point increase. We are continuing to gather additional information to complete our accounting for these items and expect to complete our accounting within the prescribed measurement period. Income taxes were accrued at an estimated effective tax rate of 85% and 97% for the three months ended September 30, 2018 and 2017, respectively. Income taxes were accrued at an estimated effective tax rate of (4)% and (66)% for the nine months ended September 30, 2018 and 2017, respectively. Those rates differ from that computed at the federal statutory rate of 21% for the three and nine months ended September 30, 2018 and the federal statutory rate of 35% for the three and nine months ended September 30, 2017. The effective tax rate for the three and nine months ended September 30, 2018 differs from the federal statutory rate of 21% because of the effect in the mix of U.S. and foreign incomes, state income taxes and tax credits. It is also affected by discrete items that may occur in any given year but are not consistent from year to year. The nine months ended September 30, 2018 was impacted by a contract settlement. The contract settlement resulted in a tax benefit of $5.7 million, which is treated as a discrete item. The effective tax rate during the three and nine months ended September 30, 2018 also included a tax benefit of $1.6 million and $12.8 million, respectively related to the excess tax benefits recognized on stock option exercises and the vesting of restricted stock units during the period, which is treated as a discrete item and excluded from determining our annual estimated effective tax rate. In addition, a revaluation of the contingent consideration resulted in a discrete tax benefit of $4.4 million and $4.9 million, respectively for the three and nine months ended September 30, 2018, which was treated as a discrete item. The effective tax rate for the three and nine months ended September 30, 2017 differs from the federal statutory rate of 35% because of the effect the mix of U.S. and foreign incomes, state income taxes, tax credits and impact of the gain on bargain purchase. The tax effect of the gain on bargain purchase is treated as a discrete item part of purchase accounting and is not a component of the income tax provision. The effective tax rate during the three and nine months ended September 30, 2017 also included a material tax benefit of $2.7 million and $12.6 million, respectively related to the excess tax benefits recognized on stock option exercises and the vesting of restricted stock units during the period, which is treated as a discrete item and excluded from determining our annual estimated effective tax rate. |
Long-Term Obligations (Notes) |
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Sep. 30, 2018 | |
LOng-Term Obligations Disclosure [Abstract] | |
Long-term Debt [Text Block] | Long-Term Obligations Five-year Senior Secured Revolving Credit Facility ("Credit Facility") On November 8, 2017, we entered into a Credit Facility with various lenders for $150 million, with Wells Fargo Bank, N.A. as the administrative agent, swingline lender and issuing lender. As of September 30, 2018, we had no borrowings and $150 million of availability under the Credit Facility. The Credit Facility matures on November 8, 2022. Debt Covenants The Credit Facility contains certain financial covenants pertaining to Consolidated Fixed Charge Coverage and Consolidated Total Leverage Ratios. In addition, the Credit Facility has restrictions pertaining to limitations on debt, liens, negative pledges, loans, advances, acquisitions, other investments, dividends, distributions, redemptions, repurchases of equity interests, fundamental changes and asset sales and other dispositions, prepayments, redemptions and purchases of subordinated debt and other junior debt, transactions with affiliates, dividend and payment restrictions affecting subsidiaries, changes in line of business, fiscal year and accounting practices and amendment of organizational documents and junior debt documents. The Consolidated Leverage Ratio is defined as the ratio of Consolidated Total Funded Indebtedness on such date, to Consolidated Adjusted EBITDA, as defined under the Credit Facility Agreement, for the most recently completed four fiscal quarters. The maximum Consolidated Leverage Ratio is not more than 3.00 to 1.00. The Consolidated Fixed Charge Coverage Ratio is defined as the ratio of: (a) Consolidated Adjusted EBITDA less the sum of (i) capital expenditures, (ii) federal, state, local and foreign income taxes paid in cash and (iii) cash restricted payments made after the closing date, to (b) Consolidated Fixed Charges for the most recently completed four fiscal quarters, calculated on a pro forma basis. The minimum Consolidated Fixed Charge Coverage Ratio is 2.00 to 1.00. We were in compliance with all financial covenants as of September 30, 2018. |
Stockholders' Equity (Notes) |
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Stockholders' Equity Note Disclosure [Text Block] | Stockholders' Equity Treasury Stock In July 2010, our Board of Directors approved a common stock purchase plan to purchase up to $40.0 million of our common stock. This plan has no expiration date. During the nine months ended September 30, 2018, we did not purchase any shares of our common stock under the stock purchase plan. As of September 30, 2018, the remaining authorized amount under this purchase plan is approximately $7.2 million. We are currently limited on share purchases in accordance with the terms and conditions of our Credit Facility (see Note 16: Long-Term Obligations). For the nine months ended September 30, 2018, we withheld 25,745 shares of our common stock from employee vested restricted stock units in consideration for $6.1 million in payments made on the employee's behalf for their minimum statutory income tax withholding obligations. Treasury stock is used to issue shares for stock option exercises, restricted stock grants and employee stock purchase plan stock purchases. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income ("AOCI"), net of tax, were as follows (in thousands):
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Commitments and Contingencies: |
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Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | Commitments and Contingencies Legal Proceedings Beginning in November 2016, purported class actions were filed in the U.S. District Court for the Northern District of Illinois against Pfizer, Inc. subsidiaries, Hospira, Inc., Hospira Worldwide, Inc. and certain other defendants relating to the intravenous saline solutions part of the HIS business. Plaintiffs seek to represent classes consisting of all persons and entities in the U.S. who directly purchased intravenous saline solution sold by any of the defendants from January 1, 2013 until the time the defendants’ allegedly unlawful conduct ceases. Plaintiffs allege that U.S. manufacturer defendants conspired together to restrict output and artificially fix, raise, maintain and/or stabilize the prices of intravenous saline solution sold throughout the U.S. in violation of federal antitrust laws. Plaintiffs seek treble damages (for themselves and on behalf of the putative classes) and an injunction against defendants for alleged price overcharges for intravenous saline solution in the U.S. since January 1, 2013. On July 5, 2018, the District Court granted defendants’ motion to dismiss the operative complaint for failing to state a valid antitrust claim, but is allowing plaintiff to file a second amended complaint. On September 6, 2018, plaintiffs filed a second amended complaint adding new allegations in support of their conspiracy claims and adding ICU as a defendant. On February 3, 2017, we completed the acquisition of the HIS business from Pfizer. This litigation is the subject of a claim for indemnification against us by Pfizer and a cross-claim for indemnification against Pfizer by us under the HIS stock and asset purchase agreement (“SAPA”). In addition, in August 2015, the New York Attorney General issued a subpoena to Hospira, Inc. requesting that the company provide information regarding certain business practices in the intravenous solutions part of the HIS business. Separately, in April 2017, we received a grand jury subpoena issued by the United States District Court for the Eastern District of Pennsylvania, in connection with an investigation by the U.S. Department of Justice, Antitrust Division. The subpoena calls for production of documents related to the manufacturing, selling, pricing and shortages of intravenous solutions, including saline, as well as communications among market participants regarding these issues. The Department of Justice investigation is the subject of cross-claims for indemnification by both us and Pfizer under the HIS Purchase Agreement. We have coordinated with Pfizer to produce records to the New York Attorney General and the Department of Justice. In April 2018, the U.S. Department of Justice issued a HIPAA subpoena to Hospira, Inc., requesting production of documents and records regarding the manufacturing, production, testing, quality and validation of the Sapphire™ infusion pumps, sets and related accessories distributed by the Company. We are coordinating with Pfizer to produce the requested records to the Department of Justice. In March 2018, a dispute with a product partner resulted in a redefinition of our contractual arrangement and in the rights and remedies determined under such arrangement. The resolution of the dispute resulted in a $28.9 million net charge to the condensed consolidated statement of operations. From time to time, we are involved in various legal proceedings, most of which are routine litigation, in the normal course of business. Our management does not believe that the resolution of the unsettled legal proceedings that we are involved with will have a material adverse impact on our financial position or results of operations. Off Balance Sheet Arrangements In the normal course of business, we have agreed to indemnify our officers and directors to the maximum extent permitted under Delaware law and to indemnify customers as to certain intellectual property matters or other matters related to sales of our products. There is no maximum limit on the indemnification that may be required under these agreements. Although we can provide no assurances, we have never incurred, nor do we expect to incur, any material liability for indemnification. Contingencies We have a contractual earn-out arrangement in connection with our acquisition of the HIS business, whereby Pfizer may be entitled up to an additional $225 million in cash upon achievement of performance targets for the company for the three years ending December 31, 2019 (see Note 3: Acquisition, Strategic Transaction and Integration Expenses). The amount to be paid cannot be determined until the earn-out period has expired. Commitments Rental expense under our non-cancellable operating lease agreements was $2.4 million and $8.1 million for the three and nine months ended September 30, 2018, respectively, as compared to $2.3 million and $5.3 million for the three and nine months ended September 30, 2017, respectively. |
Collaborative and Other Arrangements (Notes) |
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Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborative Arrangement Disclosure [Text Block] | Collaborative and Other Arrangements On February 3, 2017, we entered into two MSAs, (i) whereby Pfizer will manufacture and supply us with certain agreed upon products for an initial five-year term with a one-time two-year option to extend and (ii) whereby we will manufacture and supply Pfizer certain agreed upon products for a term of five or ten years depending on the product, also with a one-time two-year option to extend. The MSAs provide each party with mutually beneficial interests and both of the MSA's are to be jointly managed by both Pfizer and ICU. The initial supply price, which will be annually updated, is in full consideration for all costs associated with the manufacture, documentation, packaging and certification of the products. On February 3, 2017, as part of the HIS business acquisition, we entered into an agreement with Pfizer, whereby Pfizer will provide certain transitional services to us for finance, business technology, regulatory, human resources, global operations, procurement, quality and global commercial operation services ("Enabling Function Services"). We pay a monthly service fee for each service provided, and share equally with Pfizer in certain set-up costs and, as applicable, service exit costs. Our share of the set-up costs and service exit costs, in the aggregate, are not to exceed $22.0 million. The service fees are subject to a fee cap of (i) $62.5 million during the initial twelve month period and (ii) $31.3 million during the subsequent six month period. Only the Enabling Function Services are subject to the fee cap, any services provided after expiration of the agreement or services that are not Enabling Function Services may result in service fees outside the fee cap. The service fees are intended to reasonably approximate Pfizer’s cost of providing the Enabling Function Services. We may terminate, in whole only, any particular service and the fee cap would be reduced proportionate to the services terminated. Partial reduction in the provision of any specific service may be made but only with the prior written consent of Pfizer. On February 3, 2017, as part of the HIS business acquisition, we also entered into a reverse transitional services agreement, where we will provide to Pfizer certain transitional services ranging in term from three to eighteen months. Services include support for real estate, research and development, infrastructure, logistics, quality, site operations, safety, commercial and finance, and regulatory support services. |
Restructuring Charges (Tables) |
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Restructuring and Related Costs [Table Text Block] | The following table summarizes the details of changes in our restructuring-related accrual for the period ended September 30, 2018 (in thousands):
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of ASC 606 in Current Period [Table Text Block] | The following tables represent the amounts by which each financial statement line item is affected in the current year as a result of applying ASC Topic 606 (in thousands):
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Disaggregation of Revenue [Table Text Block] | The following table represents our revenues disaggregated by geography (in thousands):
The following table represents our revenues disaggregated by product (in thousands):
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Contract with Customer, Asset and Liability [Table Text Block] | The following table presents our changes in the contract balances for the nine months ended September 30, 2018 (in thousands):
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Net Income Per Share (Tables) |
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Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table presents the calculation of net earnings per common share (“EPS”) — basic and diluted (in thousands, except per share data):
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Derivative Financial Instruments (Tables) |
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Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table presents the fair values of our derivative instruments included within the Condensed Consolidated Balance Sheet as of September 30, 2018 and December 31, 2017 (in thousands):
The following table presents the amounts affecting the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017 (in thousands):
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Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | We recognized the following gains on our foreign exchange contracts designated as a cash flow hedge (in thousands):
As of September 30, 2018, we expect approximately $0.9 million of the deferred gains on the outstanding derivatives in accumulated other comprehensive income to be reclassified to net income during the next 12 months concurrent with the underlying hedged transactions also being reported in net income. |
Fair Value Measurement (Tables) |
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table provides a reconciliation of the Level 3 earn-out liability measured at estimated fair value as of December 31, 2017 to September 30, 2018 (in thousands):
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Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | The following table provides quantitative information about Level 3 inputs for fair value measurement of our earn-out liability as of December 31, 2017 and September 30, 2018. Significant increases or decreases in these inputs in isolation could result in a significant impact on our fair value measurement:
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Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Our assets and liabilities measured at fair value on a recurring basis consisted of the following (Level 1, 2 and 3 inputs as defined above) (in thousands):
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Fair Value Measurements, Nonrecurring [Table Text Block] | Our assets measured at fair value on a nonrecurring basis consisted of the following (Level 1, 2 and 3 inputs as defined above) (in thousands):
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Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities [Table Text Block] | Our short and long-term investment securities consisted of the following (in thousands):
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Prepaids and Other Current Assets (Tables) - USD ($) $ in Thousands |
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Sep. 30, 2018 |
Dec. 31, 2017 |
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Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions [Table Text Block] | Related-party receivables consist of the following (in thousands):
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Related-party receivable | $ 70,408 | $ 98,807 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Prepaid expenses and other current assets consist of the following (in thousands):
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following (in thousands):
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Property and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] | Property and equipment consisted of the following (in thousands):
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Goodwill and Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill [Table Text Block] | The following table presents the changes in the carrying amount of our goodwill (in thousands):
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Schedule of Intangible Assets and Goodwill [Table Text Block] | Intangible assets, carried at cost less accumulated amortization and amortized on a straight-lined basis, were as follows (in thousands):
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | As of September 30, 2018 estimated annual amortization for our intangible assets for each of the next five years is approximately (in thousands):
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Accrued Liabilities (Tables) |
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Accrued Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities [Table Text Block] | Accrued Liabilities and Other Long-Term Liabilities Accrued liabilities consist of the following (in thousands):
Other long-term liabilities consist of the following (in thousands):
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Stockholders' Equity (Tables) |
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Stockholders' Equity Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of accumulated other comprehensive income ("AOCI"), net of tax, were as follows (in thousands):
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Acquisition and Strategic Transaction Fannin (Details) $ in Millions |
9 Months Ended |
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Sep. 30, 2017
USD ($)
| |
Business Acquisition [Line Items] | |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
Payments to Acquire Businesses, Gross | $ 255.8 |
Fannin [Member] | |
Business Acquisition [Line Items] | |
Payments to Acquire Businesses, Gross | $ 1.5 |
Acquisition and Strategic Transaction Hospira Text (Details) - USD ($) shares in Thousands, $ in Thousands |
9 Months Ended | 12 Months Ended | |
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Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
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Business Acquisition [Line Items] | |||
Business Combination, Contingent Consideration, Liability, Noncurrent | $ 19,000 | $ 19,000 | |
Payments to Acquire Businesses, Gross | $ 255,800 | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||
Proceeds from Issuance of Debt | $ 75,000 | $ 75,000 | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 3,200 | ||
contingent consideration gross | $ 225,000 | ||
Earn out Target | $ 1,000,000 | ||
Minimum [Member] | |||
Business Acquisition [Line Items] | |||
Adjusted EBITDA | 35,000 | ||
Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Adjusted EBITDA | $ 40,000 |
Acquisition and Strategic Transaction Purchase Price Allocation Table (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
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Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
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Business Acquisition [Line Items] | |||||
Payment to acquire business, net of working capital adjustments | $ 180,785 | ||||
Proceeds from Issuance of Debt | $ 75,000 | 75,000 | |||
Business Combination, Contingent Consideration, Liability, Noncurrent | $ 19,000 | 19,000 | $ 19,000 | ||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 3,200 | ||||
Business Acquisition, Share Price | $ 140.75 | ||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 413,139 | $ 450,400 | |||
Discount on equity issued as consideration | 37,261 | ||||
Business Combination, Consideration Transferred, Equity Issued, Fair Value | (413,139) | ||||
Business Combination, Consideration Transferred | 687,924 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 31,082 | ||||
Business Combination, Acquired Receivable, Fair Value | 362 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 417,622 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 13,911 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 288,134 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 131,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 25,080 | ||||
Bargain purchase gain | $ 0 | $ 8,534 | $ 0 | $ 71,771 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 29,270 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 12,381 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 47,936 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | 67,170 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 783,894 | ||||
Hospira [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 3,200 | ||||
Bargain purchase gain | $ 70,890 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | ||||
Customer Relationships [Member] | Hospira [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 48,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years | ||||
Pumps and dedicated sets [Domain] | Hospira [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 44,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||||
developed technology-consumables [Domain] | Hospira [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 34,000 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | ||||
In Process Research and Development [Member] | Hospira [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 5,000 |
Acquisition and Strategic Transaction MLA Text (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2017 |
Dec. 31, 2017 |
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Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Gross | $ 255.8 | |
Medical Australia Limited [Member] | ||
Business Acquisition [Line Items] | ||
Payments to Acquire Businesses, Gross | $ 9.0 |
Acquisition and Strategic Transaction Transaction Expenses (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Business Combinations [Abstract] | ||||
Strategic transaction expenses | $ 23.5 | $ 15.5 | $ 61.3 | $ 49.0 |
Restructuring Charges Restructuring Table (Details) $ in Thousands |
9 Months Ended |
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Sep. 30, 2018
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve | $ 2,029 |
Restructuring Charges | 3,030 |
Payments for Restructuring | (3,774) |
Restructuring Reserve, Accrual Adjustment | 2 |
Restructuring Reserve | 1,287 |
Employee Severance [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve | 915 |
Restructuring Charges | 2,870 |
Payments for Restructuring | (3,327) |
Restructuring Reserve, Accrual Adjustment | 0 |
Restructuring Reserve | 458 |
Special Termination Benefits [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve | 1,114 |
Restructuring Charges | 0 |
Payments for Restructuring | (287) |
Restructuring Reserve, Accrual Adjustment | 2 |
Restructuring Reserve | 829 |
Facility Closing [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring Reserve | 0 |
Restructuring Charges | 160 |
Payments for Restructuring | (160) |
Restructuring Reserve, Accrual Adjustment | 0 |
Restructuring Reserve | $ 0 |
Restructuring Charges Restructuring Text (Details) $ in Millions |
Sep. 30, 2018
USD ($)
|
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Restructuring and Related Activities [Abstract] | |
Restructuring and Related Cost, Cost Incurred to Date | $ 21.8 |
Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 327,169 | $ 343,236 | $ 1,059,662 | $ 922,489 |
Cumulative Effect on Retained Earnings, Net of Tax | 6,300 | |||
Infusion Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 81,456 | $ 82,798 | 263,271 | $ 202,590 |
Infusion Systems [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,200 | 10,200 | ||
Equipment revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Remaining Performance Obligation, Amount | 6,400 | 6,400 | ||
Software revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Remaining Performance Obligation, Amount | $ 1,500 | $ 1,500 |
Revenue Impact of ASC 606 in Current Period Income Statement (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenues | $ 327,169 | $ 343,236 | $ 1,059,662 | $ 922,489 |
Increase (Decrease) in Revenue | 13,502 | 3,318 | ||
Cost of goods sold | 192,582 | 231,638 | 624,274 | 633,884 |
Increase (Decrease) Cost of Goods Sold | (3,577) | (2,536) | ||
Gross Profit | 134,587 | $ 111,598 | 435,388 | $ 288,605 |
Increase (Decrease) Gross Profit | (9,925) | (782) | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenues | 340,671 | 1,062,980 | ||
Cost of goods sold | 196,159 | 626,810 | ||
Gross Profit | $ 144,512 | $ 436,170 |
Revenue Impact of ASC 606 in Current Period Balance Sheet (Details) - USD ($) $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
[1] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Prepaid expenses and other current assets | $ 26,306 | $ 41,286 | |||
Increase (Decrease) in Prepaid Expense and Other Assets | 566 | ||||
Accrued liabilities | 131,954 | 132,064 | |||
Increase (Decrease) in Accrued Liabilities | 8,153 | ||||
DEFERRED INCOME TAXES | 20,341 | $ 24,775 | |||
Deferred Tax Liabilities, Tax Deferred Income | 1,999 | ||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||
Prepaid expenses and other current assets | 26,872 | ||||
Accrued liabilities | 140,107 | ||||
DEFERRED INCOME TAXES | $ 22,340 | ||||
|
Revenue Disaggregated Revenue by Geography (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 327,169,000 | $ 343,236,000 | $ 1,059,662,000 | $ 922,489,000 |
EMEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 30,759,000 | 31,034,000 | 104,150,000 | 87,892,000 |
Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 17,779,000 | 16,982,000 | 54,813,000 | 44,071,000 |
Latin America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16,051,000 | 16,349,000 | 44,701,000 | 42,034,000 |
North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 17,739,000 | 21,939,000 | 54,684,000 | 50,037,000 |
Other foreign countries [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 120,000 | 80,000 | 120,000 |
Foreign [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 82,328,000 | 86,424,000 | 258,428,000 | 224,154,000 |
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 244,841,000 | $ 256,812,000 | $ 801,234,000 | $ 698,335,000 |
Revenue Disaggregated Revenue by Product Line (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 327,169,000 | $ 343,236,000 | $ 1,059,662,000 | $ 922,489,000 |
Infusion Consumables [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 117,797,000 | 92,612,000 | 361,490,000 | 245,885,000 |
IV Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 114,433,000 | 143,710,000 | 394,198,000 | 375,494,000 |
Infusion Systems [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 81,456,000 | 82,798,000 | 263,271,000 | 202,590,000 |
Critical Care [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13,483,000 | 12,950,000 | 40,703,000 | 37,221,000 |
Other Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 11,166,000 | $ 0 | $ 61,299,000 |
Revenue Contract Liabilities (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
| |
Movement in Deferred Revenue [Roll Forward] | |
Contract with Customer, Liability | $ 7,066 |
Contract with Customer, Liability | 7,874 |
Equipment revenue [Member] | |
Movement in Deferred Revenue [Roll Forward] | |
Deferred Revenue, Additions | 4,086 |
Increase (Decrease) in Deferred Revenue | (3,136) |
Software revenue [Member] | |
Movement in Deferred Revenue [Roll Forward] | |
Deferred Revenue, Additions | 5,507 |
Increase (Decrease) in Deferred Revenue | $ (5,649) |
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net Income | $ 219 | $ 136 | $ 36,148 | $ 18,939 |
Weighted average number of common shares outstanding (for basic calculation) | 20,474 | 19,984 | 20,362 | 19,433 |
Dilutive securities | 1,159 | 1,122 | 1,226 | 1,170 |
Diluted (in shares) | 21,633 | 21,106 | 21,588 | 20,603 |
EPS - basic | $ 0.01 | $ 0.01 | $ 1.78 | $ 0.97 |
Diluted (In dollars per share) | $ 0.01 | $ 0.01 | $ 1.67 | $ 0.92 |
Net Income Per Share (Details 1) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 18 | 48 | 3,694 | 590 |
Derivative Financial Instruments (Details) $ in Millions, $ in Millions |
Sep. 30, 2018
USD ($)
|
Sep. 30, 2018
MXN ($)
|
---|---|---|
Derivative [Line Items] | ||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ 0.9 | |
Hedge 1 [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 240.1 | |
Derivative, Forward Exchange Rate | 20.01 | 20.01 |
Hedge 2 [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 183.9 | |
Derivative, Forward Exchange Rate | 20.43 | 20.43 |
Derivative Financial Instruments Derivative Instruments and Hedging Activities - FV of Derivative Instruments Included Within Consolidated Balance Sheet (Details) - Foreign Exchange Forward [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 885 | $ 0 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 94 | 0 |
Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | 0 | 187 |
Other Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | 0 | 402 |
Derivative Financial Instruments, Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 979 | |
Derivative Financial Instruments, Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability | $ 589 |
Derivative Financial Instruments Derivative Instruments and Hedging Activities - Amounts Affecting Consolidated Statements of Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 192 | $ 534 | $ 687 | $ 556 |
Derivative Financial Instruments Derivative Instruments and Hedging Activities - Cash Flow Hedge Activity Included in Accumulated Other Comprehensive Income (Loss) (Details) - Cost of Sales [Member] - Foreign Exchange Forward [Member] - Cash Flow Hedging [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 1,743 | $ (318) | $ (2,256) | $ (2,144) |
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion | (1,743) | 318 | 2,256 | 2,144 |
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | $ 192 | $ 534 | $ 687 | $ 556 |
Fair Value Measurement Fair Value Measurements, Recurring Basis (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities, Current | $ 36,960 | $ 10,061 | [1] | ||
Available for sale securities, noncurrent | 2,922 | 14,579 | [1] | ||
Available-for-sale Securities | 24,640 | ||||
Assets, Fair Value Disclosure | 40,861 | ||||
Prepaid Expenses and Other Current Assets [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 885 | ||||
Other Assets [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 94 | ||||
Accrued Liabilities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 187 | ||||
Other Noncurrent Liabilities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 402 | ||||
Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities, Current | 0 | 0 | |||
Available for sale securities, noncurrent | 0 | 0 | |||
Available-for-sale Securities | 0 | ||||
Assets, Fair Value Disclosure | 0 | ||||
Fair Value, Inputs, Level 1 [Member] | Prepaid Expenses and Other Current Assets [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | ||||
Fair Value, Inputs, Level 1 [Member] | Other Assets [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | ||||
Fair Value, Inputs, Level 1 [Member] | Accrued Liabilities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | ||||
Fair Value, Inputs, Level 1 [Member] | Other Noncurrent Liabilities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | ||||
Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities, Current | 36,960 | 10,061 | |||
Available for sale securities, noncurrent | 2,922 | 14,579 | |||
Available-for-sale Securities | 24,640 | ||||
Assets, Fair Value Disclosure | 40,861 | ||||
Fair Value, Inputs, Level 2 [Member] | Prepaid Expenses and Other Current Assets [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 885 | ||||
Fair Value, Inputs, Level 2 [Member] | Other Assets [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 94 | ||||
Fair Value, Inputs, Level 2 [Member] | Accrued Liabilities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 187 | ||||
Fair Value, Inputs, Level 2 [Member] | Other Noncurrent Liabilities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 402 | ||||
Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities, Current | 0 | 0 | |||
Available for sale securities, noncurrent | 0 | 0 | |||
Available-for-sale Securities | 0 | ||||
Assets, Fair Value Disclosure | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Prepaid Expenses and Other Current Assets [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Other Assets [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Accrued Liabilities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Other Noncurrent Liabilities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | ||||
Earn-out liability [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Nonfinancial Liabilities Fair Value Disclosure | 47,500 | 27,000 | |||
Earn-out liability [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Nonfinancial Liabilities Fair Value Disclosure | 0 | 0 | |||
Earn-out liability [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Nonfinancial Liabilities Fair Value Disclosure | 0 | 0 | |||
Earn-out liability [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Nonfinancial Liabilities Fair Value Disclosure | 47,500 | 27,000 | |||
Liabilities, Total [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Nonfinancial Liabilities Fair Value Disclosure | 47,500 | 27,589 | |||
Liabilities, Total [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Nonfinancial Liabilities Fair Value Disclosure | 0 | 0 | |||
Liabilities, Total [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Nonfinancial Liabilities Fair Value Disclosure | 0 | 589 | |||
Liabilities, Total [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Nonfinancial Liabilities Fair Value Disclosure | $ 47,500 | $ 27,000 | |||
|
Fair Value Measurement Fair Value Measurement (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Fair Value Disclosures [Abstract] | |
contingent consideration gross | $ 225 |
Fair Value Measurement Fair Value Liabilities Measured on Recurring Basis, Unobservable Inputs (Details) - USD ($) $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
[1] | |||
Fair Value Disclosures [Abstract] | |||||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | $ 20,500 | ||||
CONTINGENT EARN-OUT LIABILITY | $ 47,500 | $ 27,000 | |||
|
Fair Value Measurement Fair Value Inputs, Liabilities, Quantitative Information (Details) |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
MeasurementinputadjustedEBITDAvolatility [Domain] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.2500 | 0.2600 |
Measurement Input, Discount Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.0825 | 0.0875 |
Measurement Input, Risk Free Interest Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.0313 | 0.0258 |
Measurement Input, Price Volatility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.0499 | 0.0599 |
Measurement Input, Cost of Debt [Domain] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.0474 | 0.0408 |
Fair Value Measurement Fair value nonrecurring basis (Details) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | $ 12,489 |
Fair Value, Inputs, Level 1 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 |
Fair Value, Inputs, Level 2 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 |
Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | $ 12,489 |
Investment Securities (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
| |
Investments, Debt and Equity Securities [Abstract] | |
Gain (Loss) on Sale of Investments | $ 0 |
Investment Contract Settlement Date Range End | Jul. 22, 2020 |
Investment Maturity Date Range Start | Jan. 15, 2018 |
Investment Securities Table (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Current | $ 36,960 | $ 10,061 |
Debt Securities, Available-for-sale, Noncurrent | 2,922 | 14,579 |
Debt Securities, Available-for-sale, Amortized Cost | 39,882 | 24,640 |
Debt Securities, Available-for-sale, Unrealized Loss | 0 | 0 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 36,960 | 10,061 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value | 2,922 | 14,579 |
Debt Securities, Available-for-sale | 39,882 | 24,640 |
Available-for-sale Debt Security Current [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Available-for-sale Debt Security Noncurrent [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 0 | $ 0 |
Prepaids and Other Current Assets Prepaids and Other Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Prepaid Expense and Other Assets, Current [Abstract] | |||||
Other Receivables | $ 606 | $ 21,940 | |||
Other Prepaid Expense, Current | 11,727 | 4,208 | |||
Prepaid insurance and property taxes | 393 | 2,580 | |||
Prepaid Taxes | 5,873 | 8,097 | |||
Deferred tax charge | 2,368 | 1,326 | |||
Other Assets, Current | 5,339 | 3,135 | |||
Prepaid expenses and other current assets | $ 26,306 | $ 41,286 | [1] | ||
|
Prepaids and Other Current Assets Related-party receivable details (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Related Party Transaction [Line Items] | |||||
Related-party receivable | $ 70,408 | $ 98,807 | [1] | ||
Accounts Receivable [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related-party receivable | 68,878 | 36,425 | |||
Prepaid Expenses and Other Current Assets [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related-party receivable | $ 1,530 | $ 62,382 | |||
|
Prepaids and Other Current Assets Text (Details) shares in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2017
shares
| |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 3,200 |
Hospira [Member] | |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 3,200 |
Prepaids and Other Current Assets Related Party Text (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Prepaid Expense and Other Assets, Current [Abstract] | ||||
Pfizer MSA Product Costs | $ 21.7 | $ 16.2 | $ 59.3 | $ 51.9 |
ICU Medical MSA Revenue | $ 17.5 | $ 16.1 | $ 57.4 | $ 55.0 |
Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Inventory Disclosure [Abstract] | |||||
Raw material | $ 71,511 | $ 82,397 | |||
Work in process | 64,137 | 42,304 | |||
Finished goods | 156,192 | 163,956 | |||
Total | $ 291,840 | $ 288,657 | [1] | ||
|
Property and Equipment (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, cost | $ 674,334 | $ 608,823 | |||
Accumulated depreciation | (249,437) | (210,139) | |||
Net property and equipment | 424,897 | 398,684 | [1] | ||
Machinery and Equipment, Gross | 195,278 | 220,999 | |||
Furniture and Fixtures, Gross | 8,284 | 7,361 | |||
Construction in Progress, Gross | 98,967 | 57,144 | |||
Land, Buildings and Improvements [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, cost | 213,764 | 206,846 | |||
Molds [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, cost | 56,304 | 56,253 | |||
Computer Equipment and Software [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, cost | 43,490 | 44,408 | |||
Instruments Placed with Customers [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Total property and equipment, cost | $ 58,247 | $ 15,812 | |||
|
Property and Equipment Text (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 15.1 | $ 14.0 | $ 42.8 | $ 36.6 |
Goodwill and Intangible Assets Goodwill Table (Details) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2018
USD ($)
| ||||
Goodwill [Line Items] | ||||
Goodwill, Acquired During Period | $ 1,300 | |||
Goodwill, Purchase Accounting Adjustments | 0 | |||
GOODWILL | 12,357 | [1] | ||
Goodwill, Foreign Currency Translation Gain (Loss) | (458) | |||
GOODWILL | $ 13,199 | |||
|
Goodwill and Intangible Assets Intangibles Table (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 169,503 | $ 167,044 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 43,736 | 31,516 | |||
Finite-Lived Intangible Assets, Net | 125,767 | 135,528 | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 6,044 | 8,225 | |||
Intangible Assets, Gross (Excluding Goodwill) | 175,547 | 175,269 | |||
INTANGIBLE ASSETS, net | $ 131,811 | $ 143,753 | [1] | ||
Patents [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 10 years | 10 years | |||
Finite-Lived Intangible Assets, Gross | $ 18,906 | $ 17,064 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 11,839 | 10,970 | |||
Finite-Lived Intangible Assets, Net | $ 7,067 | $ 6,094 | |||
Customer Contracts [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 9 years | 9 years | |||
Finite-Lived Intangible Assets, Gross | $ 5,319 | $ 5,319 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 5,177 | 4,892 | |||
Finite-Lived Intangible Assets, Net | $ 142 | $ 427 | |||
Customer-Related Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 9 years | 9 years | |||
Finite-Lived Intangible Assets, Gross | $ 55,695 | $ 55,080 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 11,553 | 6,562 | |||
Finite-Lived Intangible Assets, Net | $ 44,142 | $ 48,518 | |||
Trademarks [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 4 years | 4 years | |||
Finite-Lived Intangible Assets, Gross | $ 425 | $ 425 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 425 | 425 | |||
Finite-Lived Intangible Assets, Net | $ 0 | $ 0 | |||
Trade Names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 15 years | 15 years | |||
Finite-Lived Intangible Assets, Gross | $ 7,310 | $ 7,310 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 1,462 | 1,096 | |||
Finite-Lived Intangible Assets, Net | $ 5,848 | $ 6,214 | |||
Developed Technology Rights [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 11 years | 11 years | |||
Finite-Lived Intangible Assets, Gross | $ 81,848 | $ 81,846 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | 13,280 | 7,571 | |||
Finite-Lived Intangible Assets, Net | $ 68,568 | $ 74,275 | |||
|
Goodwill and Intangible Assets Text (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of Intangible Assets | $ 4.1 | $ 3.6 | $ 12.2 | $ 10.9 |
Goodwill and Intangible Assets 5-Year Amortization (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 4,004 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 16,013 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 15,867 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 15,578 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 15,426 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 58,879 | |
Finite-Lived Intangible Assets, Net | $ 125,767 | $ 135,528 |
Accrued Liabilities (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
||||
Accrued Liabilities [Abstract] | |||||
Salaries and benefits | $ 22,768 | $ 20,745 | |||
Incentive compensation | 34,012 | 40,682 | |||
Accrued Product Field Action | 5,706 | 11,810 | |||
Third-party Inventory | 9,090 | 4,284 | |||
Consigned inventory | 1,118 | 5,210 | |||
Sales taxes | 3,424 | 6,291 | |||
Restructuring accrual | 829 | 1,290 | |||
Contract with Customer, Liability, Current | 6,408 | 3,326 | |||
Accrued other taxes | 1,810 | 2,771 | |||
Accrued Professional Fees | 19,120 | 13,319 | |||
Legal accrual | 1,699 | 3,538 | |||
Outside commissions | 750 | 725 | |||
Warranties and returns | 2,553 | 3,360 | |||
Accrued freight | 5,026 | 5,696 | |||
Accrued rebates | 2,229 | 0 | |||
Other | 15,412 | 9,017 | |||
Accrued liabilities | $ 131,954 | $ 132,064 | [1] | ||
|
Accrued Liabilities Long-term liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Accrued Liabilities [Abstract] | |||||
Liabilities for contracts | $ 16,713 | $ 40,148 | |||
contract settlement | 2,083 | 0 | |||
Capital Lease Obligations, Noncurrent | 1,936 | 0 | |||
Accrued Employee Benefits | 1,775 | 2,104 | |||
Contract with Customer, Liability, Noncurrent | 1,466 | 7,099 | |||
Other Accrued Liabilities, Noncurrent | 5,084 | 5,975 | |||
OTHER LONG-TERM LIABILITIES | $ 29,057 | $ 55,326 | [1] | ||
|
Income Taxes Effective tax rate (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate | 85.00% | 97.00% | (4.00%) | (66.00%) |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | ||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 2.00% | |||
Income Tax Expense (Benefit) | $ 5.7 | |||
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | $ 1.6 | $ 2.7 | 12.8 | $ 12.6 |
Discretetaxbenefitcontingentconsiderationrevaluation | $ 4.4 | $ 4.9 |
Long-Term Obligations (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
| |
LOng-Term Obligations Disclosure [Abstract] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 150 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 150 |
Line of Credit Facility, Expiration Date | Nov. 08, 2022 |
Stockholders' Equity (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Stockholders' Equity Attributable to Parent [Abstract] | ||
Treasury Stock Purchase Plan | $ 40,000 | |
Treasury Stock Purchase Plan Remaining Available | $ 7,200 | |
Shares Paid for Tax Withholding for Share Based Compensation | 25,745 | |
Payments Related to Tax Withholding for Share-based Compensation | $ 6,119 | $ 3,951 |
Stockholders' Equity Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | [1] | $ (14,959) | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (5,980) | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (522) | |||||
Other Comprehensive (loss) income, net of Tax | $ (4,231) | $ 5,609 | (6,502) | $ 17,494 | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | (11) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (21,461) | (21,461) | ||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (14,578) | |||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (7,705) | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | |||||
Other Comprehensive (loss) income, net of Tax | (7,705) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (22,283) | (22,283) | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (365) | |||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 1,714 | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (522) | |||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | 1,192 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 827 | 827 | ||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (16) | |||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 11 | |||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | 0 | |||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | 11 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (5) | $ (5) | ||||
|
Commitments and Contingencies Earn-out (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Commitments and Contingencies Disclosure [Abstract] | |
contingent consideration gross | $ 225 |
Commitments and Contingencies Rent Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating Leases, Rent Expense | $ 2.4 | $ 2.3 | $ 8.1 | $ 5.3 |
Commitments and Contingencies Contingency (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Contract settlement | $ 0 | $ 0 | $ 28,917 | $ 0 |
Collaborative and Other Arrangements (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Transitional Service Agreement Set-up Costs | $ 22.0 |
Fee Cap - First Twelve Months | 62.5 |
Fee Cap Six months subsequent to first twelve months | $ 31.3 |