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As Of Filer Filing For·On·As Docs:Size 7/27/20 Edwards Lifesciences Corp 10-Q 6/30/20 78:12M |
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Document |
i ☒ | QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i ☐ | TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i Delaware | i 36-4316614 | |||
(State
or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title
of each class | Trading Symbol(s) | Name of each exchange on which registered |
i Common Stock, par value $1.00 per share | i EW | i New
York Stock Exchange |
i Large
accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | i ☐ | Emerging growth company | i ☐ |
Page Number | ||
ASSETS | |||||||
Current assets | |||||||
Cash
and cash equivalents | $ | i 903.5 | $ | i 1,179.1 | |||
Short-term
investments (Note 5) | i 260.3 | i 337.8 | |||||
Accounts
and other receivables, net of allowances of $9.3 and $8.7, respectively | i 567.9 | i 599.1 | |||||
Inventories
(Note 2) | i 735.1 | i 640.9 | |||||
Prepaid
expenses | i 57.3 | i 59.1 | |||||
Other
current assets | i 166.2 | i 168.0 | |||||
Total
current assets | i 2,690.3 | i 2,984.0 | |||||
Long-term
investments (Note 5) | i 594.4 | i 585.5 | |||||
Property,
plant, and equipment, net | i 1,195.6 | i 1,060.3 | |||||
Operating
lease right-of-use assets | i 84.7 | i 80.1 | |||||
Goodwill
| i 1,167.7 | i 1,167.7 | |||||
Other
intangible assets, net | i 333.5 | i 336.5 | |||||
Deferred
income taxes | i 204.1 | i 172.2 | |||||
Other
assets | i 153.8 | i 101.8 | |||||
Total
assets | $ | i 6,424.1 | $ | i 6,488.1 | |||
LIABILITIES
AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities | |||||||
Accounts payable and accrued liabilities (Note 2) | $ | i 849.4 | $ | i 876.9 | |||
Operating
lease liabilities | i 23.8 | i 25.5 | |||||
Total
current liabilities | i 873.2 | i 902.4 | |||||
Long-term
debt | i 594.7 | i 594.4 | |||||
Contingent
consideration liabilities (Note 6) | i 189.9 | i 172.5 | |||||
Taxes
payable | i 214.2 | i 236.6 | |||||
Operating
lease liabilities | i 66.0 | i 58.9 | |||||
Uncertain
tax positions | i 181.3 | i 171.7 | |||||
Other
long-term liabilities (Note 2) | i 465.7 | i 203.3 | |||||
Commitments
and contingencies (Note 9) | i | i | |||||
Stockholders'
equity | |||||||
Preferred stock, $.01 par value, authorized 50.0 shares, no shares outstanding | i — | i — | |||||
Common
stock, $1.00 par value, 1,050.0 shares authorized, 633.5 and 218.1 shares issued, and 621.4 and 209.1 shares outstanding, respectively (Note 1) | i 633.5 | i 218.1 | |||||
Additional
paid-in capital | i 1,323.9 | i 1,623.3 | |||||
Retained
earnings | i 3,930.3 | i 3,741.6 | |||||
Accumulated
other comprehensive loss (Note 10) | ( i 146.1 | ) | ( i 156.0 | ) | |||
Treasury
stock, at cost, 12.1 and 9.0 shares, respectively | ( i 1,902.5 | ) | ( i 1,278.7 | ) | |||
Total
stockholders' equity | i 3,839.1 | i 4,148.3 | |||||
Total
liabilities and stockholders' equity | $ | i 6,424.1 | $ | i 6,488.1 |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net sales | $ | i 925.0 | $ | i 1,086.9 | $ | i 2,053.7 | $ | i 2,079.9 | |||||||
Cost
of sales | i 238.2 | i 304.0 | i 503.3 | i 535.8 | |||||||||||
Gross
profit | i 686.8 | i 782.9 | i 1,550.4 | i 1,544.1 | |||||||||||
Selling,
general, and administrative expenses | i 274.9 | i 308.5 | i 582.7 | i 588.8 | |||||||||||
Research
and development expenses | i 182.1 | i 191.9 | i 369.5 | i 363.3 | |||||||||||
Intellectual
property litigation expenses (Note 3) | i 379.9 | i 7.0 | i 392.4 | i 11.6 | |||||||||||
Change
in fair value of contingent consideration liabilities, net (Note 6) | i 19.6 | i 8.0 | i 17.4 | i 14.7 | |||||||||||
Special
charge (Note 4) | i — | i — | i — | i 24.0 | |||||||||||
Operating
(loss) income | ( i 169.7 | ) | i 267.5 | i 188.4 | i 541.7 | ||||||||||
Interest
income, net | ( i 1.8 | ) | ( i 2.4 | ) | ( i 6.3 | ) | ( i 4.4 | ) | |||||||
Other
expense (income), net | i 0.3 | ( i 1.4 | ) | ( i 1.6 | ) | ( i 3.2 | ) | ||||||||
(Loss)
income before (benefit from) provision for income taxes | ( i 168.2 | ) | i 271.3 | i 196.3 | i 549.3 | ||||||||||
(Benefit
from) provision for income taxes | ( i 46.3 | ) | i 29.0 | i 7.6 | i 57.3 | ||||||||||
Net
(loss) income | $ | ( i 121.9 | ) | $ | i 242.3 | $ | i 188.7 | $ | i 492.0 | ||||||
Share
information (Notes 1 and 11) | |||||||||||||||
(Loss) earnings per share: | |||||||||||||||
Basic | $ | ( i 0.20 | ) | $ | i 0.39 | $ | i 0.30 | $ | i 0.79 | ||||||
Diluted | $ | ( i 0.20 | ) | $ | i 0.38 | $ | i 0.30 | $ | i 0.77 | ||||||
Weighted-average
number of common shares outstanding: | |||||||||||||||
Basic | i 620.3 | i 624.4 | i 622.5 | i 624.1 | |||||||||||
Diluted | i 620.3 | i 636.2 | i 627.7 | i 636.4 |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net (loss) income | $ | ( i 121.9 | ) | $ | i 242.3 | $ | i 188.7 | $ | i 492.0 | ||||||
Other
comprehensive (loss) income, net of tax (Note 10): | |||||||||||||||
Foreign currency translation adjustments | i 1.7 | i 9.5 | i 4.0 | ( i 3.6 | ) | ||||||||||
Unrealized
loss on hedges | ( i 7.3 | ) | ( i 9.0 | ) | ( i 0.7 | ) | ( i 1.8 | ) | |||||||
Defined
benefit pension plans | i — | i — | ( i 0.2 | ) | ( i 0.1 | ) | |||||||||
Unrealized
gain on available-for-sale investments | i 11.3 | i 2.2 | i 6.7 | i 5.5 | |||||||||||
Reclassification
of net realized investment loss to earnings | i 0.2 | i 0.3 | i 0.1 | i 0.3 | |||||||||||
Other
comprehensive income | i 5.9 | i 3.0 | i 9.9 | i 0.3 | |||||||||||
Comprehensive
(loss) income | $ | ( i 116.0 | ) | $ | i 245.3 | $ | i 198.6 | $ | i 492.3 |
Six
Months Ended June 30, | |||||||
2020 | 2019 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | i 188.7 | $ | i 492.0 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | i 49.0 | i 42.3 | |||||
Non-cash
operating lease cost | i 13.3 | i 11.8 | |||||
Stock-based
compensation (Note 8) | i 48.7 | i 43.1 | |||||
Inventory
write off | i — | i 46.2 | |||||
Change
in fair value of contingent consideration liabilities, net (Note 6) | i 17.4 | i 14.7 | |||||
Deferred
income taxes | ( i 39.2 | ) | i 12.9 | ||||
Purchase
of intellectual property (Note 4) | i — | i 24.0 | |||||
Other | i 4.8 | ( i 7.7 | ) | ||||
Changes
in operating assets and liabilities: | |||||||
Accounts and other receivables, net | i 21.5 | ( i 89.2 | ) | ||||
Inventories | ( i 99.2 | ) | ( i 61.9 | ) | |||
Accounts
payable and accrued liabilities | ( i 135.3 | ) | ( i 10.6 | ) | |||
Income
taxes | i 9.1 | ( i 3.5 | ) | ||||
Prepaid
expenses and other current assets | ( i 0.3 | ) | i 3.9 | ||||
Litigation
settlement accrual (Note 3) | i 367.9 | ( i 180.0 | ) | ||||
Other | ( i 8.2 | ) | i 4.7 | ||||
Net
cash provided by operating activities | i 438.2 | i 342.7 | |||||
Cash
flows from investing activities | |||||||
Capital expenditures | ( i 190.5 | ) | ( i 106.8 | ) | |||
Purchases
of held-to-maturity investments (Note 5) | ( i 112.0 | ) | ( i 30.0 | ) | |||
Proceeds
from held-to-maturity investments (Note 5) | i 212.2 | i 50.0 | |||||
Purchases
of available-for-sale investments (Note 5) | ( i 275.7 | ) | ( i 75.4 | ) | |||
Proceeds
from available-for-sale investments (Note 5) | i 255.0 | i 190.8 | |||||
Investments
in intangible assets (Note 4) | i — | ( i 24.0 | ) | ||||
Acquisition | i — | ( i 100.2 | ) | ||||
Payment
for acquisition option | ( i 10.0 | ) | ( i 35.0 | ) | |||
Issuances
of notes receivable | ( i 21.9 | ) | ( i 5.4 | ) | |||
Other | ( i 2.0 | ) | ( i 1.8 | ) | |||
Net
cash used in investing activities | ( i 144.9 | ) | ( i 137.8 | ) | |||
Cash
flows from financing activities | |||||||
Proceeds from issuance of debt, net | i 10.6 | i 9.7 | |||||
Payments
on debt and finance lease obligations | ( i 11.8 | ) | ( i 20.2 | ) | |||
Purchases
of treasury stock | ( i 623.8 | ) | ( i 262.0 | ) | |||
Proceeds
from stock plans | i 67.4 | i 86.5 | |||||
Other | ( i 4.7 | ) | ( i 1.0 | ) | |||
Net
cash used in financing activities | ( i 562.3 | ) | ( i 187.0 | ) | |||
Effect
of currency exchange rate changes on cash and cash equivalents | ( i 6.6 | ) | ( i 5.2 | ) | |||
Net
(decrease) increase in cash and cash equivalents | ( i 275.6 | ) | i 12.7 | ||||
Cash
and cash equivalents at beginning of period | i 1,179.1 | i 714.1 | |||||
Cash
and cash equivalents at end of period | $ | i 903.5 | $ | i 726.8 |
Common
Stock | Treasury Stock | ||||||||||||||||||||||||||||
Shares | Par
Value | Shares | Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | ||||||||||||||||||||||
Balance
at December 31, 2019 | i 218.1 | $ | i 218.1 | i 9.0 | $ | ( i 1,278.7 | ) | $ | i 1,623.3 | $ | i 3,741.6 | $ | ( i 156.0 | ) | $ | i 4,148.3 | |||||||||||||
Net
income | i 310.6 | i 310.6 | |||||||||||||||||||||||||||
Other
comprehensive income, net of tax | i 4.0 | i 4.0 | |||||||||||||||||||||||||||
Common
stock issued under equity plans | i 0.4 | i 0.4 | i 28.7 | i 29.1 | |||||||||||||||||||||||||
Stock-based
compensation expense | i 23.9 | i 23.9 | |||||||||||||||||||||||||||
Purchases
of treasury stock | i 3.0 | ( i 614.8 | ) | ( i 614.8 | ) | ||||||||||||||||||||||||
Balance
at March 31, 2020 | i 218.5 | $ | i 218.5 | i 12.0 | $ | ( i 1,893.5 | ) | $ | i 1,675.9 | $ | i 4,052.2 | $ | ( i 152.0 | ) | $ | i 3,901.1 | |||||||||||||
Net
loss | ( i 121.9 | ) | ( i 121.9 | ) | |||||||||||||||||||||||||
Other
comprehensive income, net of tax | i 5.9 | i 5.9 | |||||||||||||||||||||||||||
Common
stock issued under equity plans | i 1.2 | i 1.2 | i 37.0 | i 38.2 | |||||||||||||||||||||||||
Stock-based
compensation expense | i 24.8 | i 24.8 | |||||||||||||||||||||||||||
Purchases
of treasury stock | i 0.1 | ( i 9.0 | ) | ( i 9.0 | ) | ||||||||||||||||||||||||
Stock
issued to effect stock split (Note 1) | i 413.8 | i 413.8 | ( i 413.8 | ) | i — | ||||||||||||||||||||||||
Balance
at June 30, 2020 | i 633.5 | $ | i 633.5 | i 12.1 | $ | ( i 1,902.5 | ) | $ | i 1,323.9 | $ | i 3,930.3 | $ | ( i 146.1 | ) | $ | i 3,839.1 |
Common
Stock | Treasury Stock | ||||||||||||||||||||||||||||
Shares | Par
Value | Shares | Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | ||||||||||||||||||||||
Balance
at December 31, 2018 | i 215.2 | $ | i 215.2 | i 7.5 | $ | ( i 1,015.4 | ) | $ | i 1,384.4 | $ | i 2,694.7 | $ | ( i 138.5 | ) | $ | i 3,140.4 | |||||||||||||
Net
income | i 249.7 | i 249.7 | |||||||||||||||||||||||||||
Other
comprehensive loss, net of tax | ( i 2.7 | ) | ( i 2.7 | ) | |||||||||||||||||||||||||
Common
stock issued under equity plans | i 0.8 | i 0.8 | i 44.2 | i 45.0 | |||||||||||||||||||||||||
Stock-based
compensation expense | i 20.8 | i 20.8 | |||||||||||||||||||||||||||
Purchases
of treasury stock | i 0.1 | ( i 5.7 | ) | ( i 5.7 | ) | ||||||||||||||||||||||||
Balance
at March 31, 2019 | i 216.0 | $ | i 216.0 | i 7.6 | $ | ( i 1,021.1 | ) | $ | i 1,449.4 | $ | i 2,944.4 | $ | ( i 141.2 | ) | $ | i 3,447.5 | |||||||||||||
Net
income | i 242.3 | i 242.3 | |||||||||||||||||||||||||||
Other
comprehensive loss, net of tax | i 3.0 | i 3.0 | |||||||||||||||||||||||||||
Common
stock issued under equity plans | i 0.9 | i 0.9 | i 40.6 | i 41.5 | |||||||||||||||||||||||||
Stock-based
compensation expense | i 22.3 | i 22.3 | |||||||||||||||||||||||||||
Purchases
of treasury stock | i 1.4 | ( i 256.3 | ) | — | ( i 256.3 | ) | |||||||||||||||||||||||
Balance
at June 30, 2019 | i 216.9 | $ | i 216.9 | i 9.0 | $ | ( i 1,277.4 | ) | $ | i 1,512.3 | $ | i 3,186.7 | $ | ( i 138.2 | ) | $ | i 3,500.3 |
Inventories | |||||||
Raw materials | $ | i 126.2 | $ | i 118.0 | |||
Work
in process | i 144.3 | i 121.7 | |||||
Finished
products | i 464.6 | i 401.2 | |||||
$ | i 735.1 | $ | i 640.9 |
(in millions) | |||||||
Accounts payable and accrued liabilities | |||||||
Accounts payable | $ | i 153.4 | $ | i 180.4 | |||
Employee
compensation and withholdings | i 198.9 | i 295.8 | |||||
Taxes
payable (Note 12) | i 67.6 | i 52.9 | |||||
Property,
payroll, and other taxes | i 43.6 | i 51.4 | |||||
Research
and development accruals | i 51.5 | i 51.4 | |||||
Accrued
rebates | i 50.0 | i 67.1 | |||||
Fair
value of derivatives | i 6.4 | i 6.4 | |||||
Accrued
marketing expenses | i 12.0 | i 17.5 | |||||
Litigation
settlement (Note 3) | i 112.5 | i — | |||||
Litigation
and insurance reserves | i 19.8 | i 20.0 | |||||
Accrued
relocation costs | i 19.2 | i 17.4 | |||||
Accrued
professional services | i 10.8 | i 10.1 | |||||
Accrued
realignment reserves | i 13.1 | i 16.7 | |||||
Other
accrued liabilities | i 90.6 | i 89.8 | |||||
$ | i 849.4 | $ | i 876.9 | ||||
Other
long-term liabilities | |||||||
Litigation settlement (Note 3) | $ | i 255.4 | $ | i — | |||
Deferred
compensation | i 90.5 | i 88.7 | |||||
Pension
liabilities | i 44.7 | i 41.6 | |||||
Deferred
tax liabilities | i 36.8 | i 36.9 | |||||
Other | i 38.3 | i 36.1 | |||||
$ | i 465.7 | $ | i 203.3 |
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
Cash paid during the year for: | |||||||
Amounts included in the measurement of lease liabilities: | |||||||
Operating
cash flows from operating leases | $ | i 14.1 | $ | i 12.7 | |||
Non-cash
investing and financing transactions: | |||||||
Right-of-use assets obtained in exchange for new lease liabilities | $ | i 19.5 | $ | i 23.5 | |||
Capital
expenditures accruals | $ | i 41.7 | $ | i 21.8 |
Held-to-maturity | Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Cost | Gross
Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||
Bank time deposits | $ | i — | $ | i — | $ | i — | $ | i — | $ | i 100.2 | $ | i — | $ | i — | $ | i 100.2 | |||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||||||
Bank
time deposits | $ | i 33.2 | $ | i — | $ | i — | $ | i 33.2 | $ | i 13.1 | $ | i — | $ | i — | $ | i 13.1 | |||||||||||||||
Commercial
paper | i 47.5 | i — | i — | i 47.5 | i 34.3 | i — | i — | i 34.3 | |||||||||||||||||||||||
U.S.
government and agency securities | i 128.0 | i 3.0 | i — | i 131.0 | i 113.2 | i 0.6 | i — | i 113.8 | |||||||||||||||||||||||
Foreign
government bonds | i 1.7 | i — | i — | i 1.7 | i 1.7 | i — | i — | i 1.7 | |||||||||||||||||||||||
Asset-backed
securities | i 141.6 | i 1.7 | ( i 0.1 | ) | i 143.2 | i 141.2 | i 0.6 | ( i 0.1 | ) | i 141.7 | |||||||||||||||||||||
Corporate
debt securities | i 458.0 | i 7.4 | ( i 0.1 | ) | i 465.3 | i 487.0 | i 2.3 | ( i 0.1 | ) | i 489.2 | |||||||||||||||||||||
Total | $ | i 810.0 | $ | i 12.1 | $ | ( i 0.2 | ) | $ | i 821.9 | $ | i 790.5 | $ | i 3.5 | $ | ( i 0.2 | ) | $ | i 793.8 |
Available-for-Sale | |||||||
Cost | Fair
Value | ||||||
(in millions) | |||||||
Due in 1 year or less | $ | i 259.1 | $ | i 260.3 | |||
Due
after 1 year through 5 years | i 402.2 | i 410.5 | |||||
Instruments
not due at a single maturity date | i 148.7 | i 151.1 | |||||
$ | i 810.0 | $ | i 821.9 |
Less
than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair
Value | Gross Unrealized Losses | ||||||||||||||||||
Asset-backed securities | $ | i 4.8 | $ | ( i 0.1 | ) | $ | i — | $ | i — | $ | i 4.8 | $ | ( i 0.1 | ) | |||||||||
Corporate
debt securities | i 9.7 | ( i 0.1 | ) | i — | i — | i 9.7 | ( i 0.1 | ) | |||||||||||||||
$ | i 14.5 | $ | ( i 0.2 | ) | $ | i — | $ | i — | $ | i 14.5 | $ | ( i 0.2 | ) |
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross
Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
Asset-backed securities | $ | i 73.4 | $ | ( i 0.1 | ) | $ | i — | $ | i — | $ | i 73.4 | $ | ( i 0.1 | ) | |||||||||
Corporate
debt securities | i 81.4 | ( i 0.1 | ) | i — | i — | i 81.4 | ( i 0.1 | ) | |||||||||||||||
$ | i 154.8 | $ | ( i 0.2 | ) | $ | i — | $ | i — | $ | i 154.8 | $ | ( i 0.2 | ) |
(in millions) | |||||||
Equity method investments | |||||||
Cost | $ | i 9.5 | $ | i 10.7 | |||
Equity
in losses | ( i 4.3 | ) | ( i 4.5 | ) | |||
Carrying
value of equity method investments | i 5.2 | i 6.2 | |||||
Equity
securities | |||||||
Carrying value of non-marketable equity securities | i 27.6 | i 23.1 | |||||
Total
investments in unconsolidated affiliates | $ | i 32.8 | $ | i 29.3 |
Level 1 | Level
2 | Level 3 | Total | ||||||||||||
Assets | |||||||||||||||
Cash
equivalents | $ | i 9.9 | $ | i 18.0 | $ | i — | $ | i 27.9 | |||||||
Available-for-sale
investments: | |||||||||||||||
Bank time deposits | i — | i 33.2 | i — | i 33.2 | |||||||||||
Corporate
debt securities | i — | i 465.3 | i — | i 465.3 | |||||||||||
Asset-backed
securities | i — | i 143.2 | i — | i 143.2 | |||||||||||
U.S.
government and agency securities | i 59.2 | i 71.8 | i — | i 131.0 | |||||||||||
Foreign
government bonds | i — | i 1.7 | i — | i 1.7 | |||||||||||
Commercial
paper | i — | i 47.5 | i — | i 47.5 | |||||||||||
Investments
held for deferred compensation plans | i 89.9 | i — | i — | i 89.9 | |||||||||||
Derivatives | i — | i 52.0 | i — | i 52.0 | |||||||||||
$ | i 159.0 | $ | i 832.7 | $ | i — | $ | i 991.7 | ||||||||
Liabilities | |||||||||||||||
Derivatives | $ | i — | $ | i 6.4 | $ | i — | $ | i 6.4 | |||||||
Deferred
compensation plans | i 90.5 | i — | i — | i 90.5 | |||||||||||
Contingent
consideration liabilities | i — | i — | i 189.9 | i 189.9 | |||||||||||
$ | i 90.5 | $ | i 6.4 | $ | i 189.9 | $ | i 286.8 | ||||||||
Assets | |||||||||||||||
Cash
equivalents | $ | i 0.7 | $ | i 31.7 | $ | i — | $ | i 32.4 | |||||||
Available-for-sale
investments: | |||||||||||||||
Bank time deposits | i — | i 13.1 | i — | i 13.1 | |||||||||||
Corporate
debt securities | i — | i 489.2 | i — | i 489.2 | |||||||||||
Asset-backed
securities | i — | i 141.7 | i — | i 141.7 | |||||||||||
U.S.
government and agency securities | i 76.1 | i 37.7 | i — | i 113.8 | |||||||||||
Foreign
government bonds | i — | i 1.7 | i — | i 1.7 | |||||||||||
Commercial
paper | i — | i 34.3 | i — | i 34.3 | |||||||||||
Investments
held for deferred compensation plans | i 88.9 | i — | i — | i 88.9 | |||||||||||
Derivatives | i — | i 30.7 | i — | i 30.7 | |||||||||||
$ | i 165.7 | $ | i 780.1 | $ | i — | $ | i 945.8 | ||||||||
Liabilities | |||||||||||||||
Derivatives | $ | i — | $ | i 6.4 | $ | i — | $ | i 6.4 | |||||||
Deferred
compensation plans | i 88.7 | i — | i — | i 88.7 | |||||||||||
Contingent
consideration liabilities | i — | i — | i 172.5 | i 172.5 | |||||||||||
$ | i 88.7 | $ | i 6.4 | $ | i 172.5 | $ | i 267.6 |
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Balance
at December 31 | $ | i 172.5 | $ | i 178.6 | ||||
Changes
in fair value | i 17.4 | i 14.7 | ||||||
Balance
at June 30 | $ | i 189.9 | $ | i 193.3 |
Notional Amount | |||||||
(in millions) | |||||||
Foreign currency forward exchange contracts | $ | i 1,297.7 | $ | i 1,336.5 | |||
Cross
currency swap contracts | i 300.0 | i 300.0 |
Fair Value | ||||||||||
Derivatives designated as hedging instruments | Balance
Sheet Location | |||||||||
Assets | ||||||||||
Foreign
currency contracts | Other current assets | $ | i 11.4 | $ | i 14.2 | |||||
Foreign
currency contracts | Other assets | $ | i 5.0 | $ | i 3.2 | |||||
Cross
currency swap contracts | Other assets | $ | i 35.6 | $ | i 13.3 | |||||
Liabilities | ||||||||||
Foreign
currency contracts | Accounts payable and accrued liabilities | $ | i 6.4 | $ | i 6.4 |
Gross
Amounts Not Offset in the Consolidated Balance Sheet | |||||||||||||||||||||||
Gross Amounts Offset in the Consolidated Balance Sheet | |||||||||||||||||||||||
Net
Amounts Presented in the Consolidated Balance Sheet | |||||||||||||||||||||||
Gross Amounts | Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||||||||
Derivative
assets | |||||||||||||||||||||||
Foreign
currency contracts | $ | i 16.4 | $ | i — | $ | i 16.4 | $ | ( i 5.1 | ) | $ | i — | $ | i 11.3 | ||||||||||
Cross
currency swap contracts | $ | i 35.6 | $ | i — | $ | i 35.6 | $ | i — | $ | i — | $ | i 35.6 | |||||||||||
Derivative
liabilities | |||||||||||||||||||||||
Foreign
currency contracts | $ | i 6.4 | $ | i — | $ | i 6.4 | $ | ( i 5.1 | ) | $ | i — | $ | i 1.3 | ||||||||||
Derivative
assets | |||||||||||||||||||||||
Foreign
currency contracts | $ | i 17.4 | $ | i — | $ | i 17.4 | $ | ( i 5.7 | ) | $ | i — | $ | i 11.7 | ||||||||||
Cross
currency swap contracts | $ | i 13.3 | $ | i — | $ | i 13.3 | $ | i — | $ | i — | $ | i 13.3 | |||||||||||
Derivative
liabilities | |||||||||||||||||||||||
Foreign
currency contracts | $ | i 6.4 | $ | i — | $ | i 6.4 | $ | ( i 5.7 | ) | $ | i — | $ | i 0.7 |
Amount of Gain or (Loss) Recognized
in OCI on Derivative | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | |||||||||||||||||
Three Months Ended June 30, | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income | Three
Months Ended June 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||
Cash
flow hedges | ||||||||||||||||||
Foreign currency contracts | $ | ( i 4.9 | ) | $ | ( i 2.1 | ) | Cost
of sales | $ | i 7.7 | $ | i 11.3 | |||||||
Selling,
general, and administrative expenses | $ | i 0.9 | $ | i 0.5 |
Amount
of Gain or (Loss) Recognized in OCI on Derivative | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | |||||||||||||||||
Six Months Ended June 30, | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income | Six
Months Ended June 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||
Cash
flow hedges | ||||||||||||||||||
Foreign currency contracts | $ | i 12.6 | $ | i 10.8 | Cost
of sales | $ | i 13.8 | $ | i 18.9 | |||||||||
Selling,
general, and administrative expenses | $ | i 1.7 | $ | i 0.8 |
Amount
of Gain or (Loss) Recognized in OCI on Derivative | Amount of Gain or (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | |||||||||||||||||
Three Months Ended June 30, | Location of Gain or (Loss) Recognized
in Income on Derivative (Amount Excluded from Effectiveness Testing) | Three Months Ended June 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||
Net
investment hedges | ||||||||||||||||||
Cross currency swap contracts | $ | ( i 9.0 | ) | $ | ( i 3.2 | ) | Interest
income, net | $ | i 1.6 | $ | i 1.7 |
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | Amount
of Gain or (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | |||||||||||||||||
Six Months Ended June 30, | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income | Six Months Ended June 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||
Net investment hedges | ||||||||||||||||||
Cross
currency swap contracts | $ | i 22.3 | $ | i 2.1 | Interest
income, net | $ | i 3.3 | $ | i 3.3 |
Amount
of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
Three Months Ended June 30, | ||||||||||
Location of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
2020 | 2019 | |||||||||
Fair
value hedges | ||||||||||
Foreign currency contracts | Other expense (income), net | $ | ( i 1.4 | ) | $ | ( i 3.3 | ) |
Amount
of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
Six Months Ended June 30, | ||||||||||
Location of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
2020 | 2019 | |||||||||
Fair
value hedges | ||||||||||
Foreign currency contracts | Other expense (income), net | $ | i 0.3 | $ | ( i 4.2 | ) |
Amount
of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
Three Months Ended June 30, | ||||||||||
Location of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
2020 | 2019 | |||||||||
Derivatives
not designated as hedging instruments | ||||||||||
Foreign currency contracts | Other expense (income), net | $ | ( i 6.9 | ) | $ | i — |
Amount
of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
Six Months Ended June 30, | ||||||||||
Location of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
2020 | 2019 | |||||||||
Derivatives
not designated as hedging instruments | ||||||||||
Foreign currency contracts | Other expense (income), net | $ | i 1.7 | $ | ( i 1.5 | ) |
Location
and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships | |||||||||||||||||||||||
Three Months Ended June 30, 2020 | Six Months Ended June 30, 2020 | ||||||||||||||||||||||
Cost of sales | Selling, general, and administrative expenses | Other
Expense (Income), net | Cost of sales | Selling, general, and administrative expenses | Other Expense (Income), net | ||||||||||||||||||
Total amounts
of income and expense line items presented in the consolidated condensed statements of operations in which the effects of fair value or cash flow hedges are recorded | $ | ( i 238.2 | ) | $ | ( i 274.9 | ) | $ | ( i 0.3 | ) | $ | ( i 503.3 | ) | $ | ( i 582.7 | ) | $ | i 1.6 | ||||||
The
effects of fair value and cash flow hedging: | |||||||||||||||||||||||
Gain (loss) on fair value hedging relationships: | |||||||||||||||||||||||
Foreign
currency contracts: | |||||||||||||||||||||||
Hedged items | $ | i — | $ | i — | $ | i 2.2 | $ | i — | $ | i — | $ | i 1.5 | |||||||||||
Derivatives
designated as hedging instruments | $ | i — | $ | i — | $ | ( i 2.2 | ) | $ | i — | $ | i — | $ | ( i 1.5 | ) | |||||||||
Amount
excluded from effectiveness testing recognized in earnings based on an amortization approach | $ | i — | $ | i — | $ | i 0.8 | $ | i — | $ | i — | $ | i 1.8 | |||||||||||
Gain
(loss) on cash flow hedging relationships: | |||||||||||||||||||||||
Foreign currency contracts: | |||||||||||||||||||||||
Amount
of gain (loss) reclassified from accumulated OCI into income | $ | i 7.7 | $ | i 0.9 | $ | i — | $ | i 13.8 | $ | i 1.7 | $ | i — |
Location
and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships | |||||||||||||||||||||||
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | ||||||||||||||||||||||
Cost of sales | Selling, general, and administrative expenses | Other
Expense (Income), net | Cost of sales | Selling, general, and administrative expenses | Other Expense (Income), net | ||||||||||||||||||
Total amounts
of income and expense line items presented in the consolidated condensed statements of operations in which the effects of fair value or cash flow hedges are recorded | $ | ( i 304.0 | ) | $ | ( i 308.5 | ) | $ | i 1.4 | $ | ( i 535.8 | ) | $ | ( i 588.8 | ) | $ | i 3.2 | |||||||
The
effects of fair value and cash flow hedging: | |||||||||||||||||||||||
Gain (loss) on fair value hedging relationships: | |||||||||||||||||||||||
Foreign
currency contracts: | |||||||||||||||||||||||
Hedged items | $ | i — | $ | i — | $ | i 4.5 | $ | i — | $ | i — | $ | i 6.3 | |||||||||||
Derivatives
designated as hedging instruments | $ | i — | $ | i — | $ | ( i 4.5 | ) | $ | i — | $ | i — | $ | ( i 6.3 | ) | |||||||||
Amount
excluded from effectiveness testing recognized in earnings based on an amortization approach | $ | i — | $ | i — | $ | i 1.2 | $ | i — | $ | i — | $ | i 2.1 | |||||||||||
Gain
(loss) on cash flow hedging relationships: | |||||||||||||||||||||||
Foreign currency contracts: | |||||||||||||||||||||||
Amount
of gain (loss) reclassified from accumulated OCI into income | $ | i 11.3 | $ | i 0.5 | $ | i — | $ | i 18.9 | $ | i 0.8 | $ | i — |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Cost of sales | $ | i 4.7 | $ | i 3.9 | $ | i 9.3 | $ | i 7.9 | |||||||
Selling,
general, and administrative expenses | i 15.3 | i 14.3 | i 29.7 | i 27.0 | |||||||||||
Research
and development expenses | i 4.8 | i 4.1 | i 9.7 | i 8.2 | |||||||||||
Total
stock-based compensation expense | $ | i 24.8 | $ | i 22.3 | $ | i 48.7 | $ | i 43.1 |
Option Awards | Three Months Ended June 30, | Six
Months Ended June 30, | |||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Average risk-free interest rate | i 0.3 | % | i 2.3 | % | i 0.3 | % | i 2.3 | % | |||||||
Expected
dividend yield | i None | i None | i None | i None | |||||||||||
Expected
volatility | i 33.5 | % | i 29.7 | % | i 33.4 | % | i 29.6 | % | |||||||
Expected
term (years) | i 5.0 | i 5.0 | i 5.0 | i 5.0 | |||||||||||
Fair
value, per option | $ | i 21.58 | $ | i 18.01 | $ | i 21.61 | $ | i 18.01 |
ESPP | Three
Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Average risk-free interest rate | i 0.1 | % | i 2.4 | % | i 1.4 | % | i 2.4 | % | |||||||
Expected
dividend yield | i None | i None | i None | i None | |||||||||||
Expected
volatility | i 37.5 | % | i 31.9 | % | i 32.6 | % | i 26.6 | % | |||||||
Expected
term (years) | i 0.6 | i 0.6 | i 0.6 | i 0.6 | |||||||||||
Fair
value, per share | $ | i 18.42 | $ | i 15.58 | $ | i 16.06 | $ | i 16.14 |
Foreign Currency Translation Adjustments | Unrealized
Gain on Hedges | Unrealized Gain (Loss) on Available-for-sale Investments | Unrealized Pension Costs | Total Accumulated Other Comprehensive Loss | |||||||||||||||
$ | ( i 154.8 | ) | $ | i 12.5 | $ | i 1.7 | $ | ( i 15.4 | ) | $ | ( i 156.0 | ) | |||||||
Other
comprehensive gain (loss) before reclassifications | i 11.6 | i 19.0 | ( i 6.3 | ) | ( i 0.2 | ) | i 24.1 | ||||||||||||
Amounts
reclassified from accumulated other comprehensive loss | ( i 1.7 | ) | ( i 8.6 | ) | ( i 0.1 | ) | i — | ( i 10.4 | ) | ||||||||||
Deferred
income tax (expense) benefit | ( i 7.6 | ) | ( i 3.8 | ) | i 1.7 | i — | ( i 9.7 | ) | |||||||||||
( i 152.5 | ) | i 19.1 | ( i 3.0 | ) | ( i 15.6 | ) | ( i 152.0 | ) | |||||||||||
Other
comprehensive gain (loss) before reclassifications | i 1.2 | ( i 3.7 | ) | i 14.8 | i — | i 12.3 | |||||||||||||
Amounts
reclassified from accumulated other comprehensive loss | ( i 1.6 | ) | ( i 7.2 | ) | i 0.2 | i — | ( i 8.6 | ) | |||||||||||
Deferred
income tax benefit (expense) | i 2.1 | i 3.6 | ( i 3.5 | ) | i — | i 2.2 | |||||||||||||
$ | ( i 150.8 | ) | $ | i 11.8 | $ | i 8.5 | $ | ( i 15.6 | ) | $ | ( i 146.1 | ) |
Foreign Currency Translation Adjustments | Unrealized
Gain on Hedges | Unrealized Gain (Loss) on Available-for-sale Investments | Unrealized Pension Costs | Total Accumulated Other Comprehensive Loss | |||||||||||||||
$ | ( i 143.6 | ) | $ | i 23.6 | $ | ( i 5.0 | ) | $ | ( i 13.5 | ) | $ | ( i 138.5 | ) | ||||||
Other
comprehensive (loss) gain before reclassifications | ( i 10.2 | ) | i 15.6 | i 4.4 | ( i 0.1 | ) | i 9.7 | ||||||||||||
Amounts
reclassified from accumulated other comprehensive loss | ( i 1.6 | ) | ( i 7.0 | ) | i — | i — | ( i 8.6 | ) | |||||||||||
Deferred
income tax expense | ( i 1.3 | ) | ( i 1.4 | ) | ( i 1.1 | ) | i — | ( i 3.8 | ) | ||||||||||
( i 156.7 | ) | i 30.8 | ( i 1.7 | ) | ( i 13.6 | ) | ( i 141.2 | ) | |||||||||||
Other
comprehensive gain (loss) before reclassifications | i 10.4 | ( i 4.0 | ) | i 2.8 | i — | i 9.2 | |||||||||||||
Amounts
reclassified from accumulated other comprehensive loss | ( i 1.7 | ) | ( i 8.5 | ) | i 0.3 | i — | ( i 9.9 | ) | |||||||||||
Deferred
income tax benefit (expense) | i 0.8 | i 3.5 | ( i 0.6 | ) | i — | i 3.7 | |||||||||||||
$ | ( i 147.2 | ) | $ | i 21.8 | $ | i 0.8 | $ | ( i 13.6 | ) | $ | ( i 138.2 | ) |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Affected Line on Consolidated Condensed Statements of Operations | |||||||||||||||||
Details about Accumulated Other Comprehensive Loss Components | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Foreign
currency translation adjustments | $ | i 1.6 | $ | i 1.7 | $ | i 3.3 | $ | i 3.3 | Other
income, net | ||||||||
( i 0.4 | ) | ( i 0.4 | ) | ( i 0.8 | ) | ( i 0.8 | ) | Provision
for income taxes | |||||||||
$ | i 1.2 | $ | i 1.3 | $ | i 2.5 | $ | i 2.5 | Net
of tax | |||||||||
Gain on hedges | $ | i 7.7 | $ | i 11.3 | $ | i 13.8 | $ | i 18.9 | Cost
of sales | ||||||||
i 0.9 | i 0.5 | i 1.7 | i 0.8 | Selling,
general, and administrative expenses | |||||||||||||
( i 1.4 | ) | ( i 3.3 | ) | i 0.3 | ( i 4.2 | ) | Other
income, net | ||||||||||
i 7.2 | i 8.5 | i 15.8 | i 15.5 | Total
before tax | |||||||||||||
( i 2.1 | ) | ( i 2.8 | ) | ( i 4.0 | ) | ( i 4.8 | ) | Provision
for income taxes | |||||||||
$ | i 5.1 | $ | i 5.7 | $ | i 11.8 | $ | i 10.7 | Net
of tax | |||||||||
Gain (loss) on available-for-sale investments | $ | ( i 0.2 | ) | $ | ( i 0.3 | ) | $ | ( i 0.1 | ) | $ | ( i 0.3 | ) | Other
income, net | ||||
( i 0.1 | ) | i — | ( i 0.3 | ) | i — | Provision
for income taxes | |||||||||||
$ | ( i 0.3 | ) | $ | ( i 0.3 | ) | $ | ( i 0.4 | ) | $ | ( i 0.3 | ) | Net
of tax |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Basic: | |||||||||||||||
Net
(loss) income | $ | ( i 121.9 | ) | $ | i 242.3 | $ | i 188.7 | $ | i 492.0 | ||||||
Weighted-average
shares outstanding | i 620.3 | i 624.4 | i 622.5 | i 624.1 | |||||||||||
Basic
(loss) earnings per share | $ | ( i 0.20 | ) | $ | i 0.39 | $ | i 0.30 | $ | i 0.79 | ||||||
Diluted: | |||||||||||||||
Net
(loss) income | $ | ( i 121.9 | ) | $ | i 242.3 | $ | i 188.7 | $ | i 492.0 | ||||||
Weighted-average
shares outstanding | i 620.3 | i 624.4 | i 622.5 | i 624.1 | |||||||||||
Dilutive
effect of stock plans | i — | i 11.8 | i 5.2 | i 12.3 | |||||||||||
Dilutive
weighted-average shares outstanding | i 620.3 | i 636.2 | i 627.7 | i 636.4 | |||||||||||
Diluted
(loss) earnings per share | $ | ( i 0.20 | ) | $ | i 0.38 | $ | i 0.30 | $ | i 0.77 |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Segment Net Sales | |||||||||||||||
United
States | $ | i 516.2 | $ | i 624.9 | $ | i 1,183.6 | $ | i 1,187.7 | |||||||
Europe | i 206.9 | i 237.2 | i 454.4 | i 464.5 | |||||||||||
Japan | i 105.3 | i 113.7 | i 215.1 | i 212.9 | |||||||||||
Rest
of World | i 103.8 | i 107.7 | i 208.2 | i 204.5 | |||||||||||
Total
segment net sales | $ | i 932.2 | $ | i 1,083.5 | $ | i 2,061.3 | $ | i 2,069.6 | |||||||
Segment
Operating Income | |||||||||||||||
United States | $ | i 345.4 | $ | i 427.6 | $ | i 810.2 | $ | i 810.9 | |||||||
Europe | i 104.0 | i 122.3 | i 232.0 | i 241.7 | |||||||||||
Japan | i 69.0 | i 71.1 | i 140.7 | i 132.1 | |||||||||||
Rest
of World | i 34.7 | i 32.3 | i 69.6 | i 63.1 | |||||||||||
Total
segment operating income | $ | i 553.1 | $ | i 653.3 | $ | i 1,252.5 | $ | i 1,247.8 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net Sales Reconciliation | |||||||||||||||
Segment
net sales | $ | i 932.2 | $ | i 1,083.5 | $ | i 2,061.3 | $ | i 2,069.6 | |||||||
Foreign
currency | ( i 7.2 | ) | i 3.4 | ( i 7.6 | ) | i 10.3 | |||||||||
Consolidated
net sales | $ | i 925.0 | $ | i 1,086.9 | $ | i 2,053.7 | $ | i 2,079.9 | |||||||
Pre-tax
Income Reconciliation | |||||||||||||||
Segment operating income | $ | i 553.1 | $ | i 653.3 | $ | i 1,252.5 | $ | i 1,247.8 | |||||||
Unallocated
amounts: | |||||||||||||||
Corporate items | ( i 333.0 | ) | ( i 389.1 | ) | ( i 673.7 | ) | ( i 688.9 | ) | |||||||
Special
charge (Note 4) | i — | i — | i — | ( i 24.0 | ) | ||||||||||
Intellectual
property litigation expenses | ( i 379.9 | ) | ( i 7.0 | ) | ( i 392.4 | ) | ( i 11.6 | ) | |||||||
Change
in fair value of contingent consideration liabilities, net | ( i 19.6 | ) | ( i 8.0 | ) | ( i 17.4 | ) | ( i 14.7 | ) | |||||||
Foreign
currency | i 9.7 | i 18.3 | i 19.4 | i 33.1 | |||||||||||
Consolidated
operating (loss) income | ( i 169.7 | ) | i 267.5 | i 188.4 | i 541.7 | ||||||||||
Non-operating
income | i 1.5 | i 3.8 | i 7.9 | i 7.6 | |||||||||||
Consolidated
pre-tax (loss) income | $ | ( i 168.2 | ) | $ | i 271.3 | $ | i 196.3 | $ | i 549.3 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in
millions) | |||||||||||||||
Net Sales by Geographic Area | |||||||||||||||
United States | $ | i 516.2 | $ | i 624.9 | $ | i 1,183.6 | $ | i 1,187.7 | |||||||
Europe | i 204.7 | i 241.7 | i 454.0 | i 476.4 | |||||||||||
Japan | i 106.8 | i 113.1 | i 216.8 | i 211.5 | |||||||||||
Rest
of World | i 97.3 | i 107.2 | i 199.3 | i 204.3 | |||||||||||
$ | i 925.0 | $ | i 1,086.9 | $ | i 2,053.7 | $ | i 2,079.9 | ||||||||
Net
Sales by Major Product and Service Area | |||||||||||||||
Transcatheter Aortic Valve Replacement | $ | i 594.3 | $ | i 677.7 | $ | i 1,336.5 | $ | i 1,275.4 | |||||||
Transcatheter
Mitral and Tricuspid Therapies | i 6.1 | i 7.0 | i 16.6 | i 11.3 | |||||||||||
Surgical
Structural Heart | i 160.9 | i 217.8 | i 354.3 | i 432.5 | |||||||||||
Critical
Care | i 163.7 | i 184.4 | i 346.3 | i 360.7 | |||||||||||
$ | i 925.0 | $ | i 1,086.9 | $ | i 2,053.7 | $ | i 2,079.9 |
(in millions) | |||||||
Long-lived Tangible Assets by Geographic Area | |||||||
United States | $ | i 991.1 | $ | i 849.1 | |||
Europe | i 141.9 | i 101.5 | |||||
Japan | i 20.1 | i 21.7 | |||||
Rest
of World | i 280.5 | i 269.4 | |||||
$ | i 1,433.6 | $ | i 1,241.7 |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
Percent
Change | Percent Change | ||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||
United
States | $ | 516.2 | $ | 624.9 | $ | (108.7 | ) | (17.4 | )% | $ | 1,183.6 | $ | 1,187.7 | $ | (4.1 | ) | (0.3 | )% | |||||||||||
Europe | 204.7 | 241.7 | (37.0 | ) | (15.2 | )% | 454.0 | 476.4 | (22.4 | ) | (4.7 | )% | |||||||||||||||||
Japan | 106.8 | 113.1 | (6.3 | ) | (5.5 | )% | 216.8 | 211.5 | 5.3 | 2.5 | % | ||||||||||||||||||
Rest
of World | 97.3 | 107.2 | (9.9 | ) | (9.5 | )% | 199.3 | 204.3 | (5.0 | ) | (2.5 | )% | |||||||||||||||||
International | 408.8 | 462.0 | (53.2 | ) | (11.5 | )% | 870.1 | 892.2 | (22.1 | ) | (2.5 | )% | |||||||||||||||||
Total
net sales | $ | 925.0 | $ | 1,086.9 | $ | (161.9 | ) | (14.9 | )% | $ | 2,053.7 | $ | 2,079.9 | $ | (26.2 | ) | (1.3 | )% |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
Percent
Change | Percent Change | ||||||||||||||||||||||||||||
2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||
Transcatheter
Aortic Valve Replacement | $ | 594.3 | $ | 677.7 | $ | (83.4 | ) | (12.3 | )% | $ | 1,336.5 | $ | 1,275.4 | $ | 61.1 | 4.8 | % | ||||||||||||
Transcatheter
Mitral and Tricuspid Therapies | 6.1 | 7.0 | (0.9 | ) | (11.2 | )% | 16.6 | 11.3 | 5.3 | 47.6 | % | ||||||||||||||||||
Surgical
Structural Heart | 160.9 | 217.8 | (56.9 | ) | (26.1 | )% | 354.3 | 432.5 | (78.2 | ) | (18.1 | )% | |||||||||||||||||
Critical
Care | 163.7 | 184.4 | (20.7 | ) | (11.3 | )% | 346.3 | 360.7 | (14.4 | ) | (4.0 | )% | |||||||||||||||||
Total
net sales | $ | 925.0 | $ | 1,086.9 | $ | (161.9 | ) | (14.9 | )% | $ | 2,053.7 | $ | 2,079.9 | $ | (26.2 | ) | (1.3 | )% |
• | the prior year charge of $46.2 million related to strategic decisions regarding our transcatheter aortic valve portfolio, including the decision to discontinue our CENTERA program; |
• | a 0.5 percentage point and 0.4 percentage point decrease, respectively, due to the impact of foreign currency exchange rate fluctuations, including the settlement of foreign currency hedging contracts; and |
• | incremental costs associated with COVID-19. |
Three
Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Foreign exchange gains, net | $ | — | $ | (1.6 | ) | $ | (3.7 | ) | $ | (3.6 | ) | ||||
(Gain)
loss on investments | (1.2 | ) | 0.3 | 0.6 | 0.4 | ||||||||||
Other | 1.5 | (0.1 | ) | 1.5 | — | ||||||||||
Other
expense (income), net | $ | 0.3 | $ | (1.4 | ) | $ | (1.6 | ) | $ | (3.2 | ) |
Period | Total Number of
Shares (or Units) Purchased (a) | Average Price Paid per Share (or Unit) (b) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar
Value) of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) (c) | |||||||||||||
April 1, 2020 through April 30, 2020 | 170 | $ | 186.82 | — | $ | 625.0 | |||||||||||
May
1, 2020 through May 31, 2020 | 41,045 | 219.53 | — | 625.0 | |||||||||||||
June
1, 2020 through June 30, 2020 | — | — | — | 625.0 | |||||||||||||
Total | 41,215 | 219.39 | — | ||||||||||||||
(a) | The
difference between the total number of shares (or units) purchased and the total number of shares (or units) purchased as part of publicly announced plans or programs is due to shares withheld by us to satisfy tax withholding obligations in connection with the vesting of restricted stock units issued to employees. |
(b) | The three-for-one stock split distributed on May 29, 2020 excluded treasury shares. Because all treasury share purchases were transacted prior to the stock split, the average price paid per share presented in the table above is at pre-split market prices. |
(c) | On
May 8, 2019, the Board of Directors approved a stock repurchase program authorizing us to purchase on the open market, including pursuant to a Rule 10b5-1 plan and in privately negotiated transactions, up to $1.0 billion of our common stock. The repurchase program does not have an expiration date. |
Exhibit No. | Description | |||
3.1 | ||||
10.1 | ||||
10.2 | ||||
10.3 | ||||
10.4 | ||||
31.1 | ||||
31.2 | ||||
32 | ||||
101.INS | XBRL Inline Instance Document - the instance document does not appear in the Interactive Data File because
its XBRL tags are embedded within the Inline XBRL document. | |||
101.SCH | XBRL Taxonomy Extension Schema Document. | |||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||
101.DEF | XBRL
Taxonomy Extension Definition Linkbase Document | |||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||
104 | Cover
Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
EDWARDS
LIFESCIENCES CORPORATION | |||
(Registrant) | |||
Date: | By: | /s/ SCOTT B. ULLEM | |
Chief Financial Officer (Principal Financial Officer) | |||
Date: | By: | ||
Corporate
Controller (Principal Accounting Officer) |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
6/15/28 | ||||
4/28/23 | ||||
Filed on: | 7/27/20 | |||
7/22/20 | ||||
7/12/20 | ||||
For Period end: | 6/30/20 | |||
6/1/20 | 4 | |||
5/31/20 | ||||
5/29/20 | SD | |||
5/18/20 | 4 | |||
5/7/20 | 3, 4, 8-K, DEF 14A, PRE 14A | |||
5/1/20 | 4 | |||
4/30/20 | 4 | |||
4/28/20 | 10-Q | |||
4/1/20 | 4 | |||
3/31/20 | 10-Q | |||
1/1/20 | ||||
12/31/19 | 10-K, 11-K, 5, SD | |||
12/15/19 | ||||
6/30/19 | 10-Q | |||
5/8/19 | 4, 8-K, DEF 14A | |||
4/18/19 | 4 | |||
3/31/19 | 10-Q | |||
12/31/18 | 10-K, 11-K, 5, SD | |||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/12/24 Edwards Lifesciences Corp. 10-K 12/31/23 139:18M 2/13/23 Edwards Lifesciences Corp. 10-K 12/31/22 132:19M 2/14/22 Edwards Lifesciences Corp. 10-K 12/31/21 144:20M 2/12/21 Edwards Lifesciences Corp. 10-K 12/31/20 149:20M |