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As Of Filer Filing For·On·As Docs:Size 10/25/19 Edwards Lifesciences Corp 10-Q 9/30/19 87:12M |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 1.43M 2: EX-31.1 Certification -- §302 - SOA'02 HTML 32K 3: EX-31.2 Certification -- §302 - SOA'02 HTML 32K 4: EX-32 Certification -- §906 - SOA'02 HTML 28K 74: R1 Cover Page HTML 79K 49: R2 Consolidated Condensed Balance Sheets HTML 125K 19: R3 Consolidated Condensed Balance Sheets HTML 48K (Parenthetical) 64: R4 Consolidated Condensed Statements of Operations HTML 85K 73: R5 Consolidated Condensed Statements of Comprehensive HTML 54K Income 48: R6 Consolidated Condensed Statements of Cash Flows HTML 127K 18: R7 Consolidated Condensed Statements of Stockholders' HTML 101K Equity 63: R8 Basis of Presentation HTML 34K 77: R9 Other Consolidated Financial Statement Details HTML 76K 60: R10 Leases HTML 57K 71: R11 Special Charge (Gain) HTML 29K 39: R12 Investments HTML 152K 10: R13 Acquisition HTML 45K 61: R14 Fair Value Measurements HTML 141K 72: R15 Derivative Instruments and Hedging Activities HTML 288K 40: R16 Stock-Based Compensation HTML 86K 11: R17 Accelerated Share Repurchase HTML 53K 62: R18 Commitments and Contingencies HTML 38K 70: R19 Accumulated Other Comprehensive Loss HTML 114K 37: R20 Earnings Per Share HTML 64K 27: R21 Income Taxes HTML 41K 56: R22 Segment Information HTML 167K 85: R23 Basis of Presentation (Policies) HTML 34K 38: R24 Other Consolidated Financial Statement Details HTML 78K (Tables) 28: R25 Leases (Tables) HTML 53K 57: R26 Investments (Tables) HTML 155K 86: R27 Acquisition (Tables) HTML 40K 36: R28 Fair Value Measurements (Tables) HTML 134K 29: R29 Derivative Instruments and Hedging Activities HTML 352K (Tables) 14: R30 Stock-Based Compensation (Tables) HTML 88K 42: R31 Accelerated Share Repurchase (Tables) HTML 50K 69: R32 Accumulated Other Comprehensive Loss (Tables) HTML 116K 59: R33 Earnings Per Share (Tables) HTML 62K 13: R34 Segment Information (Tables) HTML 168K 41: R35 Basis of Presentation (Details) HTML 33K 68: R36 OTHER CONSOLIDATED FINANCIAL STATEMENT DETAILS - HTML 46K Schedule of Inventory (Details) 58: R37 OTHER CONSOLIDATED FINANCIAL STATEMENT DETAILS - HTML 63K Schedule of Accounts Payable and Accrued Liabilities (Details) 12: R38 OTHER CONSOLIDATED FINANCIAL STATEMENT DETAILS - HTML 42K Supplemental Cash Flow Information (Details) 43: R39 LEASES - Narrative (Details) HTML 43K 23: R40 LEASES - Assets and Liabilities of Operating HTML 34K Leases (Details) 31: R41 LEASES - Future Minimum Rental Payments After HTML 49K Adoption of Topic 842 (Details) 84: R42 LEASES - Future Minimum Rental Payments Prior to HTML 46K Adopting Topic 842 (Details) 55: R43 Special Charge (GAIN) Narrative (Details) HTML 34K 22: R44 INVESTMENTS - Schedule of Investments in Debt HTML 68K Securities (Details) 30: R45 INVESTMENTS - Schedule of Cost and Fair Value of HTML 47K Investments in Debt Securities, By Contractual Maturity (Details) 83: R46 INVESTMENTS - Schedule of Investments in HTML 57K Continuous Loss Position (Details) 54: R47 INVESTMENTS - Schedule of Investments in HTML 39K Unconsolidated Affiliates (Details) 21: R48 INVESTMENTS - Narrative (Details) HTML 35K 33: R49 ACQUISITION - Narrative (Details) HTML 44K 46: R50 ACQUISITION - Summary of Fair Values of Assets HTML 58K Acquired and Liabilities Assumed (Details) 15: R51 FAIR VALUE MEASUREMENTS - Narrative (Details) HTML 44K 66: R52 FAIR VALUE MEASUREMENTS - Summary of Financial HTML 109K Instruments Measured at Fair Value on a Recurring Basis (Details) 78: R53 FAIR VALUE MEASUREMENTS - Summary of Changes in HTML 31K Fair Value of Contingent Consideration Obligation (Details) 47: R54 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - HTML 33K Summary of Derivative Financial Instruments Used to Manage Currency Exchange Rate Risk and Interest Rate Risk (Details) 16: R55 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - HTML 44K Narrative (Details) 67: R56 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - HTML 49K Schedule of Location and Fair Value Amounts of Derivative Instruments Reported in Consolidated Condensed Balance Sheets (Details) 79: R57 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - HTML 80K Schedule of Effect of Master-Netting Agreements and Rights of Offset, Derivative Assets and Liabilities (Details) 44: R58 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - HTML 63K Schedule of Effect of Derivative Instruments on Consolidated Condensed Statements of Operations and Consolidated Condensed Statements of Comprehensive Income (Details) 17: R59 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - HTML 65K Schedule of Cash Flow Hedge Effects on Statement of Operations (Details) 50: R60 STOCK-BASED COMPENSATION - Schedule of Stock-Based HTML 37K Compensation Expense (Details) 81: R61 STOCK-BASED COMPENSATION - Narrative (Details) HTML 66K 34: R62 STOCK-BASED COMPENSATION - Schedule of HTML 47K Weighted-Average Assumptions for Options and ESPP Subscriptions Granted Granted (Details) 25: R63 ACCELERATED SHARE REPURCHASE - Schedule of HTML 56K Accelerated Share Repurchases (Details) 51: R64 Commitments and Contingencies (Details) HTML 27K 82: R65 ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary of HTML 54K Activity for Each Component of Accumulated Other Comprehensive Loss (Details) 35: R66 ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of HTML 66K Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) 26: R67 EARNINGS PER SHARE - Schedule of Computation of HTML 54K Basic and Diluted Earnings Per Share (Details) 53: R68 EARNINGS PER SHARE - Narrative (Details) HTML 31K 80: R69 Income Taxes (Details) HTML 49K 76: R70 SEGMENT INFORMATION - Information About Reportable HTML 50K Segments (Details) 65: R71 SEGMENT INFORMATION - Reconciliations of Segment HTML 62K Net Sales to Consolidated Net Sales and Segment Pre-Tax Income to Consolidated Pre-Tax Income (Details) 20: R72 SEGMENT INFORMATION - Enterprise-Wide Information HTML 57K (Details) 45: R9999 Uncategorized Items - ew10-qq32019.htm HTML 38K 75: XML IDEA XML File -- Filing Summary XML 165K 87: XML XBRL Instance -- ew10-qq32019_htm XML 3.69M 32: EXCEL IDEA Workbook of Financial Reports XLSX 91K 6: EX-101.CAL XBRL Calculations -- ew-20190930_cal XML 301K 7: EX-101.DEF XBRL Definitions -- ew-20190930_def XML 640K 8: EX-101.LAB XBRL Labels -- ew-20190930_lab XML 1.73M 9: EX-101.PRE XBRL Presentations -- ew-20190930_pre XML 1.06M 5: EX-101.SCH XBRL Schema -- ew-20190930 XSD 146K 52: JSON XBRL Instance as JSON Data -- MetaLinks 392± 615K 24: ZIP XBRL Zipped Folder -- 0001099800-19-000024-xbrl Zip 619K
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 1,186.6 | $ | i 714.1 | |||
Short-term
investments (Note 5) | i 170.3 | i 242.4 | |||||
Accounts
and other receivables, net of allowances of $8.8 and $8.9, respectively | i 570.0 | i 537.3 | |||||
Inventories
(Note 2) | i 611.1 | i 607.0 | |||||
Prepaid
expenses | i 57.3 | i 54.3 | |||||
Other
current assets | i 144.4 | i 131.8 | |||||
Total
current assets | i 2,739.7 | i 2,286.9 | |||||
Long-term
investments (Note 5) | i 386.0 | i 506.3 | |||||
Property,
plant, and equipment, net | i 973.6 | i 867.5 | |||||
Operating
lease right-of-use assets (Note 3) | i 73.3 | — | |||||
Goodwill | i 1,156.6 | i 1,112.2 | |||||
Other
intangible assets, net | i 381.1 | i 343.2 | |||||
Deferred
income taxes | i 155.8 | i 174.0 | |||||
Other
assets | i 100.2 | i 33.6 | |||||
Total
assets | $ | i 5,966.3 | $ | i 5,323.7 | |||
LIABILITIES
AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities | |||||||
Accounts payable and accrued liabilities (Note 2) | $ | i 751.7 | $ | i 876.6 | |||
Operating
lease liabilities (Note 3) | i 24.1 | — | |||||
Total current liabilities | i 775.8 | i 876.6 | |||||
Long-term
debt | i 594.2 | i 593.8 | |||||
Contingent
consideration liabilities (Note 7) | i 191.0 | i 178.6 | |||||
Taxes
payable | i 236.5 | i 259.4 | |||||
Operating
lease liabilities (Note 3) | i 52.4 | — | |||||
Uncertain tax positions | i 141.7 | i 124.9 | |||||
Other
long-term liabilities | i 159.9 | i 150.0 | |||||
Commitments
and contingencies (Note 11) | i | i | |||||
Stockholders'
equity | |||||||
Preferred stock, $.01 par value, authorized 50.0 shares, no shares outstanding | i — | i — | |||||
Common
stock, $1.00 par value, 350.0 shares authorized, 217.5 and 215.2 shares issued, and 208.5 and 207.7 shares outstanding, respectively | i 217.5 | i 215.2 | |||||
Additional
paid-in capital | i 1,570.4 | i 1,384.4 | |||||
Retained
earnings | i 3,461.4 | i 2,694.7 | |||||
Accumulated
other comprehensive loss (Note 12) | ( i 155.8 | ) | ( i 138.5 | ) | |||
Treasury
stock, at cost, 9.0 and 7.5 shares, respectively | ( i 1,278.7 | ) | ( i 1,015.4 | ) | |||
Total
stockholders' equity | i 3,814.8 | i 3,140.4 | |||||
Total
liabilities and stockholders' equity | $ | i 5,966.3 | $ | i 5,323.7 |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net sales | $ | i 1,094.0 | $ | i 906.6 | $ | i 3,173.9 | $ | i 2,745.1 | |||||||
Cost
of sales | i 292.4 | i 224.9 | i 828.2 | i 704.7 | |||||||||||
Gross
profit | i 801.6 | i 681.7 | i 2,345.7 | i 2,040.4 | |||||||||||
Selling,
general, and administrative expenses | i 306.2 | i 269.5 | i 895.0 | i 800.4 | |||||||||||
Research
and development expenses | i 195.5 | i 161.8 | i 558.8 | i 459.1 | |||||||||||
Intellectual
property litigation expenses | i 7.9 | i 7.9 | i 19.5 | i 19.1 | |||||||||||
Change
in fair value of contingent consideration liabilities, net (Note 7) | ( i 2.3 | ) | ( i 6.4 | ) | i 12.4 | i 8.3 | |||||||||
Special
charge (Note 4) | i — | — | i 24.0 | — | |||||||||||
Operating
income | i 294.3 | i 248.9 | i 836.0 | i 753.5 | |||||||||||
Interest
(income) expense, net | ( i 2.8 | ) | i 0.5 | ( i 7.2 | ) | ( i 0.3 | ) | ||||||||
Special
gain (Note 4) | i — | i — | i — | ( i 7.1 | ) | ||||||||||
Other
income, net | ( i 4.6 | ) | ( i 0.3 | ) | ( i 7.8 | ) | ( i 2.3 | ) | |||||||
Income
before provision for income taxes | i 301.7 | i 248.7 | i 851.0 | i 763.2 | |||||||||||
Provision
for income taxes | i 27.0 | i 22.8 | i 84.3 | i 48.0 | |||||||||||
Net
income | $ | i 274.7 | $ | i 225.9 | $ | i 766.7 | $ | i 715.2 | |||||||
Share
information (Note 13) | |||||||||||||||
Earnings per share: | |||||||||||||||
Basic | $ | i 1.32 | $ | i 1.08 | $ | i 3.68 | $ | i 3.41 | |||||||
Diluted | $ | i 1.30 | $ | i 1.06 | $ | i 3.61 | $ | i 3.34 | |||||||
Weighted-average
number of common shares outstanding: | |||||||||||||||
Basic | i 208.2 | i 209.0 | i 208.1 | i 209.5 | |||||||||||
Diluted | i 212.1 | i 213.2 | i 212.1 | i 214.1 |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | i 274.7 | $ | i 225.9 | $ | i 766.7 | $ | i 715.2 | |||||||
Other
comprehensive (loss) income, net of tax (Note 12): | |||||||||||||||
Foreign currency translation adjustments | ( i 23.5 | ) | ( i 2.0 | ) | ( i 27.1 | ) | ( i 34.9 | ) | |||||||
Unrealized
gain on hedges | i 5.6 | i 13.1 | i 3.8 | i 36.9 | |||||||||||
Defined
benefit pension plans | ( i 0.2 | ) | ( i 0.2 | ) | ( i 0.3 | ) | i 0.3 | ||||||||
Unrealized
gain (loss) on available-for-sale investments | i 0.5 | i 0.3 | i 6.0 | ( i 3.7 | ) | ||||||||||
Reclassification
of net realized investment loss to earnings | i — | i 0.6 | i 0.3 | i 2.9 | |||||||||||
Other
comprehensive (loss) income | ( i 17.6 | ) | i 11.8 | ( i 17.3 | ) | i 1.5 | |||||||||
Comprehensive
income | $ | i 257.1 | $ | i 237.7 | $ | i 749.4 | $ | i 716.7 |
Nine
Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | i 766.7 | $ | i 715.2 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | i 65.4 | i 57.5 | |||||
Non-cash
operating lease cost | i 18.7 | — | |||||
Stock-based compensation (Note 9) | i 62.9 | i 55.0 | |||||
Inventory
write off | i 73.1 | i — | |||||
Change
in fair value of contingent consideration liabilities, net (Note 7) | i 12.4 | i 8.3 | |||||
Deferred
income taxes | i 9.5 | i 29.8 | |||||
Purchase
of intellectual property (Note 4) | i 24.0 | i — | |||||
Other | ( i 4.8 | ) | i 3.0 | ||||
Changes
in operating assets and liabilities: | |||||||
Accounts and other receivables, net | ( i 70.3 | ) | ( i 0.3 | ) | |||
Inventories | ( i 83.9 | ) | ( i 43.5 | ) | |||
Accounts
payable and accrued liabilities | ( i 109.2 | ) | i 4.0 | ||||
Income
taxes | i 17.0 | ( i 208.6 | ) | ||||
Prepaid
expenses and other current assets | ( i 2.5 | ) | i 10.9 | ||||
Other | i 1.0 | i 2.5 | |||||
Net
cash provided by operating activities | i 780.0 | i 633.8 | |||||
Cash
flows from investing activities | |||||||
Capital expenditures | ( i 182.9 | ) | ( i 181.1 | ) | |||
Purchases
of held-to-maturity investments (Note 5) | ( i 30.0 | ) | ( i 190.0 | ) | |||
Proceeds
from held-to-maturity investments (Note 5) | i 50.0 | i 388.1 | |||||
Purchases
of available-for sale investments (Note 5) | ( i 95.0 | ) | ( i 115.3 | ) | |||
Proceeds
from available-for-sale investments (Note 5) | i 278.3 | i 193.1 | |||||
Investments
in intangible assets (Note 4) | ( i 24.0 | ) | ( i 3.0 | ) | |||
Payment
of contingent consideration | i — | ( i 10.0 | ) | ||||
Acquisition
(Note 6) | ( i 100.2 | ) | i — | ||||
Payment
for acquisition option | ( i 35.0 | ) | i — | ||||
Other | ( i 11.7 | ) | ( i 10.8 | ) | |||
Net
cash (used in) provided by investing activities | ( i 150.5 | ) | i 71.0 | ||||
Cash
flows from financing activities | |||||||
Proceeds from issuance of debt, net | i 12.0 | i 686.4 | |||||
Payments
on debt and capital lease obligations | ( i 23.7 | ) | ( i 524.1 | ) | |||
Purchases
of treasury stock | ( i 263.3 | ) | ( i 523.5 | ) | |||
Proceeds
from stock plans | i 125.5 | i 119.3 | |||||
Payment
of contingent consideration | i — | ( i 15.1 | ) | ||||
Other | ( i 3.1 | ) | i 0.5 | ||||
Net
cash used in financing activities | ( i 152.6 | ) | ( i 256.5 | ) | |||
Effect
of currency exchange rate changes on cash and cash equivalents | ( i 4.4 | ) | ( i 5.3 | ) | |||
Net
increase in cash and cash equivalents | i 472.5 | i 443.0 | |||||
Cash
and cash equivalents at beginning of period | i 714.1 | i 818.3 | |||||
Cash
and cash equivalents at end of period | $ | i 1,186.6 | $ | i 1,261.3 |
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 income, 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 income, 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 | |||||||||||||
Net
income | i 274.7 | i 274.7 | |||||||||||||||||||||||||||
Other
comprehensive income, net of tax | ( i 17.6 | ) | ( i 17.6 | ) | |||||||||||||||||||||||||
Common
stock issued under equity plans | i 0.6 | i 0.6 | i 38.3 | i 38.9 | |||||||||||||||||||||||||
Stock-based
compensation expense | i 19.8 | i 19.8 | |||||||||||||||||||||||||||
Purchases
of treasury stock | i — | ( i 1.3 | ) | ( i 1.3 | ) | ||||||||||||||||||||||||
Balance
at September 30, 2019 | i 217.5 | $ | i 217.5 | i 9.0 | $ | ( i 1,278.7 | ) | $ | i 1,570.4 | $ | i 3,461.4 | $ | ( i 155.8 | ) | $ | i 3,814.8 |
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, 2017 | i 212.0 | $ | i 212.0 | i 2.3 | $ | ( i 252.1 | ) | $ | i 1,166.9 | $ | i 1,962.1 | $ | ( i 132.7 | ) | $ | i 2,956.2 | |||||||||||||
Impact
to retained earnings from adoption of ASU 2016-16 and ASU 2018-02 | i 10.4 | ( i 7.8 | ) | i 2.6 | |||||||||||||||||||||||||
Balance
at January 1, 2018 | i 212.0 | i 212.0 | i 2.3 | ( i 252.1 | ) | i 1,166.9 | i 1,972.5 | ( i 140.5 | ) | i 2,958.8 | |||||||||||||||||||
Net
income | i 206.6 | i 206.6 | |||||||||||||||||||||||||||
Other
comprehensive loss, net of tax | i 19.2 | i 19.2 | |||||||||||||||||||||||||||
Common
stock issued under equity plans | i 1.0 | i 1.0 | i 43.8 | i 44.8 | |||||||||||||||||||||||||
Stock-based
compensation expense | i 18.4 | i 18.4 | |||||||||||||||||||||||||||
Purchases
of treasury stock | ( i 2.1 | ) | ( i 2.1 | ) | |||||||||||||||||||||||||
Balance
at March 31, 2018 | i 213.0 | $ | i 213.0 | i 2.3 | $ | ( i 254.2 | ) | $ | i 1,229.1 | $ | i 2,179.1 | $ | ( i 121.3 | ) | $ | i 3,245.7 | |||||||||||||
Net
income | i 282.7 | i 282.7 | |||||||||||||||||||||||||||
Other
comprehensive loss, net of tax | ( i 29.5 | ) | ( i 29.5 | ) | |||||||||||||||||||||||||
Common
stock issued under equity plans | i 1.0 | i 1.0 | i 38.5 | i 39.5 | |||||||||||||||||||||||||
Stock-based
compensation expense | i 19.2 | i 19.2 | |||||||||||||||||||||||||||
Shares
issued in payment for contingent consideration liabilities | ( i 0.3 | ) | i 32.2 | i 2.7 | i 34.9 | ||||||||||||||||||||||||
Purchases
of treasury stock | i 2.8 | ( i 348.3 | ) | ( i 80.0 | ) | ( i 428.3 | ) | ||||||||||||||||||||||
Balance
at June 30, 2018 | i 214.0 | $ | i 214.0 | i 4.8 | $ | ( i 570.3 | ) | $ | i 1,209.5 | $ | i 2,461.8 | $ | ( i 150.8 | ) | $ | i 3,164.2 | |||||||||||||
Net
income | i 225.9 | i 225.9 | |||||||||||||||||||||||||||
Other
comprehensive loss, net of tax | i 11.8 | i 11.8 | |||||||||||||||||||||||||||
Common
stock issued under equity plans | i 0.8 | i 0.8 | i 34.3 | i 35.1 | |||||||||||||||||||||||||
Stock-based
compensation expense | i 17.4 | i 17.4 | |||||||||||||||||||||||||||
Purchases
of treasury stock | i 0.9 | ( i 173.1 | ) | i 80.0 | ( i 93.1 | ) | |||||||||||||||||||||||
Balance
at September 30, 2018 | i 214.8 | $ | i 214.8 | i 5.7 | $ | ( i 743.4 | ) | $ | i 1,341.2 | $ | i 2,687.7 | $ | ( i 139.0 | ) | $ | i 3,361.3 |
Inventories | |||||||
Raw materials | $ | i 125.8 | $ | i 111.5 | |||
Work
in process | i 148.6 | i 144.8 | |||||
Finished
products | i 336.7 | i 350.7 | |||||
$ | i 611.1 | $ | i 607.0 |
Accounts payable and accrued liabilities | |||||||
Accounts payable | $ | i 135.9 | $ | i 134.0 | |||
Employee
compensation and withholdings | i 262.2 | i 226.1 | |||||
Taxes
payable (Note 14) | i 18.9 | i 31.3 | |||||
Property,
payroll, and other taxes | i 43.2 | i 39.5 | |||||
Research
and development accruals | i 61.2 | i 48.9 | |||||
Accrued
rebates | i 78.0 | i 80.0 | |||||
Fair
value of derivatives | i 4.5 | i 4.4 | |||||
Accrued
marketing expenses | i 14.7 | i 22.3 | |||||
Litigation
and insurance reserves | i 18.9 | i 196.7 | |||||
Accrued
relocation costs | i 16.7 | i 11.3 | |||||
Accrued
professional services | i 12.2 | i 11.0 | |||||
Accrued
realignment reserves | i 16.4 | i 6.8 | |||||
Other
accrued liabilities | i 68.9 | i 64.3 | |||||
$ | i 751.7 | $ | i 876.6 |
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Cash paid during the year for: | |||||||
Income
taxes | $ | i 53.9 | $ | i 227.3 | |||
Amounts
included in the measurement of lease liabilities: | |||||||
Operating cash flows from operating leases | $ | i 19.5 | $ | i — | |||
Non-cash
investing and financing transactions: | |||||||
Fair value of shares issued in payment for contingent consideration liabilities | $ | i — | $ | i 34.3 | |||
Right-of-use
assets obtained in exchange for new lease liabilities | $ | i 33.2 | $ | i — | |||
Capital
expenditures accruals | $ | i 26.4 | $ | i 23.7 |
Operating lease ROU assets | $ | i 73.3 | |
Operating lease liabilities, current portion | $ | i 24.1 | |
Operating
lease liabilities, long-term portion | i 52.4 | ||
Total operating lease liabilities | $ | i 76.5 |
2019 | $ | i 6.8 | |
2020 | i 25.2 | ||
2021 | i 17.6 | ||
2022 | i 12.3 | ||
2023 | i 8.9 | ||
Thereafter | i 11.7 | ||
Total
lease payments | i 82.5 | ||
Less: imputed interest | ( i 6.0 | ) | |
Total
lease liabilities | $ | i 76.5 | |
Weighted-average remaining lease term (in years) | i 4.5 | ||
Weighted-average
discount rate | i 2.9 | % |
Operating Leases | |||
2019 | $ | i 25.6 | |
2020 | i 21.5 | ||
2021 | i 13.5 | ||
2022 | i 9.9 | ||
2023 | i 6.4 | ||
Thereafter | i 14.3 | ||
Total
obligations and commitments | $ | i 91.2 |
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 20.0 | $ | i — | $ | i — | $ | i 20.0 | |||||||||||||||
Available-for-sale | |||||||||||||||||||||||||||||||
Commercial
paper | $ | i 10.9 | $ | i — | $ | i — | $ | i 10.9 | $ | i 56.7 | $ | i — | $ | i — | $ | i 56.7 | |||||||||||||||
U.S.
government and agency securities | i 75.4 | i 0.6 | i — | i 76.0 | i 79.7 | i 0.2 | ( i 0.7 | ) | i 79.2 | ||||||||||||||||||||||
Foreign
government bonds | i 1.6 | i — | i — | i 1.6 | i 1.7 | i — | i — | i 1.7 | |||||||||||||||||||||||
Asset-backed
securities | i 80.7 | i 0.6 | i — | i 81.3 | i 110.6 | i 0.1 | ( i 0.5 | ) | i 110.2 | ||||||||||||||||||||||
Corporate
debt securities | i 354.9 | i 2.0 | ( i 0.1 | ) | i 356.8 | i 459.8 | i 0.1 | ( i 4.3 | ) | i 455.6 | |||||||||||||||||||||
Municipal
securities | i 2.7 | i — | i — | i 2.7 | i 2.8 | i — | i — | i 2.8 | |||||||||||||||||||||||
Total | $ | i 526.2 | $ | i 3.2 | $ | ( i 0.1 | ) | $ | i 529.3 | $ | i 711.3 | $ | i 0.4 | $ | ( i 5.5 | ) | $ | i 706.2 |
Available-for-Sale | |||||||
Cost | Fair Value | ||||||
(in
millions) | |||||||
Due in 1 year or less | $ | i 169.9 | $ | i 170.3 | |||
Due
after 1 year through 5 years | i 292.4 | i 294.5 | |||||
Instruments
not due at a single maturity date | i 63.9 | i 64.5 | |||||
$ | i 526.2 | $ | i 529.3 |
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross
Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
Corporate debt securities | $ | i — | $ | i — | $ | i 41.4 | $ | ( i 0.1 | ) | $ | i 41.4 | $ | ( i 0.1 | ) |
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross
Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
U.S. government and agency securities | $ | i 0.7 | $ | ( i 0.1 | ) | $ | i 56.5 | $ | ( i 0.6 | ) | $ | i 57.2 | $ | ( i 0.7 | ) | ||||||||
Asset-backed
securities | i 4.0 | i — | i 61.3 | ( i 0.5 | ) | i 65.3 | ( i 0.5 | ) | |||||||||||||||
Corporate
debt securities | i 177.4 | ( i 1.1 | ) | i 203.7 | ( i 3.2 | ) | i 381.1 | ( i 4.3 | ) | ||||||||||||||
$ | i 182.1 | $ | ( i 1.2 | ) | $ | i 321.5 | $ | ( i 4.3 | ) | $ | i 503.6 | $ | ( i 5.5 | ) |
(in millions) | |||||||
Equity method investments | |||||||
Cost | $ | i 10.7 | $ | i 9.1 | |||
Equity
in losses | ( i 3.8 | ) | ( i 4.7 | ) | |||
Carrying
value of equity method investments | i 6.9 | i 4.4 | |||||
Equity
securities | |||||||
Carrying value of non-marketable equity securities | i 20.1 | i 18.1 | |||||
Total
investments in unconsolidated affiliates | $ | i 27.0 | $ | i 22.5 |
Current assets | $ | i 6.1 | |||
Property
and equipment, net | i 1.3 | ||||
Goodwill | i 64.4 | ||||
Developed
technology | i 35.9 | ||||
Customer
relationships | i 8.8 | ||||
Deferred
tax assets | i 2.2 | ||||
Liabilities assumed | ( i 17.9 | ) | |||
Total
purchase price | i 100.8 | ||||
Less: cash acquired | ( i 0.6 | ) | |||
Total
purchase price, net of cash acquired | $ | i 100.2 |
Level 1 | Level
2 | Level 3 | Total | ||||||||||||
Assets | |||||||||||||||
Cash
equivalents | $ | i 248.1 | $ | i 66.5 | $ | i — | $ | i 314.6 | |||||||
Available-for-sale
investments: | |||||||||||||||
Corporate debt securities | i — | i 356.8 | i — | i 356.8 | |||||||||||
Asset-backed
securities | i — | i 81.3 | i — | i 81.3 | |||||||||||
U.S.
government and agency securities | i 45.5 | i 30.5 | i — | i 76.0 | |||||||||||
Foreign
government bonds | i — | i 1.6 | i — | i 1.6 | |||||||||||
Commercial
paper | i — | i 10.9 | i — | i 10.9 | |||||||||||
Municipal
securities | i — | i 2.7 | i — | i 2.7 | |||||||||||
Investments
held for deferred compensation plans | i 81.4 | i — | i — | i 81.4 | |||||||||||
Derivatives | i — | i 48.5 | i — | i 48.5 | |||||||||||
$ | i 375.0 | $ | i 598.8 | $ | i — | $ | i 973.8 | ||||||||
Liabilities | |||||||||||||||
Derivatives | $ | i — | $ | i 4.4 | $ | i — | $ | i 4.4 | |||||||
Deferred
compensation plans | i 82.0 | i — | i — | i 82.0 | |||||||||||
Contingent
consideration liabilities | i — | i — | i 191.0 | i 191.0 | |||||||||||
$ | i 82.0 | $ | i 4.4 | $ | i 191.0 | $ | i 277.4 | ||||||||
Assets | |||||||||||||||
Cash
equivalents | $ | i — | $ | i 11.8 | $ | i — | $ | i 11.8 | |||||||
Available-for-sale
investments: | |||||||||||||||
Corporate debt securities | i — | i 455.6 | i — | i 455.6 | |||||||||||
Asset-backed
securities | i — | i 110.2 | i — | i 110.2 | |||||||||||
U.S.
government and agency securities | i 19.6 | i 59.6 | i — | i 79.2 | |||||||||||
Foreign
government bonds | i — | i 1.7 | i — | i 1.7 | |||||||||||
Commercial
paper | i — | i 56.7 | i — | i 56.7 | |||||||||||
Municipal
securities | i — | i 2.8 | i — | i 2.8 | |||||||||||
Investments
held for deferred compensation plans | i 67.6 | i — | i — | i 67.6 | |||||||||||
Derivatives | i — | i 29.9 | i — | i 29.9 | |||||||||||
$ | i 87.2 | $ | i 728.3 | $ | i — | $ | i 815.5 | ||||||||
Liabilities | |||||||||||||||
Derivatives | $ | i — | $ | i 5.2 | $ | i — | $ | i 5.2 | |||||||
Deferred
compensation plans | i 68.5 | i — | i — | i 68.5 | |||||||||||
Contingent
consideration liabilities | i — | i — | i 178.6 | i 178.6 | |||||||||||
$ | i 68.5 | $ | i 5.2 | $ | i 178.6 | $ | i 252.3 |
Balance at December 31, 2018 | $ | i 178.6 | ||
Changes
in fair value | i 12.4 | |||
Balance at September 30, 2019 | $ | i 191.0 |
Notional Amount | |||||||
(in millions) | |||||||
Foreign currency forward exchange contracts | $ | i 1,247.7 | $ | i 1,378.2 | |||
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 27.7 | $ | i 29.1 | |||||
Foreign
currency contracts | Other assets | $ | i 1.6 | $ | i — | |||||
Cross
currency swap contracts | Other assets | $ | i 19.2 | $ | i 0.8 | |||||
Liabilities | ||||||||||
Foreign
currency contracts | Accounts payable and accrued liabilities | $ | i 4.4 | $ | i 4.4 | |||||
Foreign
currency contracts | Other long-term liabilities | $ | i — | $ | i 0.8 |
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 29.3 | $ | i — | $ | i 29.3 | $ | ( i 4.0 | ) | $ | i — | $ | i 25.3 | ||||||||||
Cross
currency swap contracts | $ | i 19.2 | $ | i — | $ | i 19.2 | $ | i — | $ | i — | $ | i 19.2 | |||||||||||
Derivative
liabilities | |||||||||||||||||||||||
Foreign
currency contracts | $ | i 4.4 | $ | i — | $ | i 4.4 | $ | ( i 4.0 | ) | $ | i — | $ | i 0.4 | ||||||||||
Derivative
assets | |||||||||||||||||||||||
Foreign
currency contracts | $ | i 29.1 | $ | i — | $ | i 29.1 | $ | ( i 3.6 | ) | $ | i — | $ | i 25.5 | ||||||||||
Cross
currency swap contracts | $ | i 0.8 | $ | i — | $ | i 0.8 | $ | i — | $ | i — | $ | i 0.8 | |||||||||||
Derivative
liabilities | |||||||||||||||||||||||
Foreign
currency contracts | $ | i 5.2 | $ | i — | $ | i 5.2 | $ | ( i 3.6 | ) | $ | i — | $ | i 1.6 |
Amount of Gain or (Loss) Recognized
in OCI on Derivative | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | |||||||||||||||||
Three Months Ended September 30, | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income | Three
Months Ended September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Cash
flow hedges | ||||||||||||||||||
Foreign currency contracts | $ | i 22.1 | $ | i 12.1 | Cost
of sales | $ | i 12.8 | $ | ( i 4.6 | ) | ||||||||
Selling,
general, and administrative expenses | $ | i 0.6 | $ | ( i 0.4 | ) |
Amount
of Gain or (Loss) Recognized in OCI on Derivative | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | |||||||||||||||||
Nine Months Ended September 30, | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income | Nine
Months Ended September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Cash
flow hedges | ||||||||||||||||||
Foreign currency contracts | $ | i 32.9 | $ | i 28.2 | Cost
of sales | $ | i 31.7 | $ | ( i 18.8 | ) | ||||||||
Selling,
general, and administrative expenses | $ | i 1.4 | $ | ( i 2.5 | ) |
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 September 30, | Location of Gain or (Loss) Recognized
in Income on Derivative (Amount Excluded from Effectiveness Testing) | Three Months Ended September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Net
investment hedges | ||||||||||||||||||
Cross currency swap contracts | $ | i 16.3 | $ | ( i 0.5 | ) | Interest
(income) expense, net | $ | i 1.7 | $ | i 1.6 |
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) | |||||||||||||||||
Nine Months Ended September 30, | Location of Gain or (Loss) Reclassified from Accumulated OCI into Income | Nine
Months Ended September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Net
investment hedges | ||||||||||||||||||
Cross currency swap contracts | $ | i 18.4 | $ | ( i 10.5 | ) | Interest
(income) expense, net | $ | i 5.0 | $ | i 1.8 | ||||||||
Foreign
currency denominated debt | $ | i — | $ | i 6.8 |
Amount
of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
Three Months Ended September 30, | ||||||||||
Location of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
Fair
value hedges | 2019 | 2018 | ||||||||
Foreign currency contracts | Other income, net | $ | i 2.1 | $ | i — |
Amount
of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
Nine Months Ended September 30, | ||||||||||
Location of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
Fair
value hedges | 2019 | 2018 | ||||||||
Foreign currency contracts | Other income, net | $ | ( i 2.1 | ) | $ | i — |
Amount
of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
Three Months Ended September 30, | ||||||||||
Location of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
Derivatives
not designated as hedging instruments | 2019 | 2018 | ||||||||
Foreign currency contracts | Other income, net | $ | i 3.2 | $ | i 5.9 |
Amount
of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
Nine Months Ended September 30, | ||||||||||
Location of Gain or (Loss) Recognized in Income on Derivative | ||||||||||
Derivatives
not designated as hedging instruments | 2019 | 2018 | ||||||||
Foreign currency contracts | Other income, net | $ | i 1.7 | $ | i 7.3 |
Location
and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships | |||||||||||||||||||||||
Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | ||||||||||||||||||||||
Cost of sales | Selling, general, and administrative expenses | Other
Income, net | Cost of sales | Selling, general, and administrative expenses | Other Income, net | ||||||||||||||||||
Total amounts of income and expense
line items presented in the consolidated statements of operations in which the effects of fair value or cash flow hedges are recorded | $ | ( i 292.4 | ) | $ | ( i 306.2 | ) | $ | i 4.6 | $ | ( i 828.2 | ) | $ | ( i 895.0 | ) | $ | i 7.8 | |||||||
The
effects of fair value and cash flow hedging: | |||||||||||||||||||||||
Gain (loss) on fair value hedging relationships: | |||||||||||||||||||||||
Foreign
currency contracts: | |||||||||||||||||||||||
Hedged items | i — | i — | ( i 1.0 | ) | i — | i — | i 5.3 | ||||||||||||||||
Derivatives
designated as hedging instruments | i — | i — | i 1.0 | i — | i — | ( i 5.3 | ) | ||||||||||||||||
Amount
excluded from effectiveness testing recognized in earnings based on an amortization approach | i — | i — | i 1.1 | i — | i — | i 3.2 | |||||||||||||||||
Gain
(loss) on cash flow hedging relationships: | |||||||||||||||||||||||
Foreign currency contracts: | |||||||||||||||||||||||
Amount
of gain (loss) reclassified from accumulated OCI into income | $ | i 12.8 | $ | i 0.6 | $ | i — | $ | i 31.7 | $ | i 1.4 | $ | i — |
Location
and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships | |||||||||||||||||
Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | ||||||||||||||||
Cost of sales | Selling, general, and administrative expenses | Cost
of sales | Selling, general, and administrative expenses | ||||||||||||||
Total amounts of income and expense line items presented in the consolidated statements of operations in which the effects of fair value or cash flow hedges are recorded | $ | ( i 224.9 | ) | $ | ( i 269.5 | ) | $ | ( i 704.7 | ) | $ | ( i 800.4 | ) | |||||
The
effects of fair value and cash flow hedging: | |||||||||||||||||
Gain (loss) on cash flow hedging relationships: | |||||||||||||||||
Foreign
currency contracts: | |||||||||||||||||
Amount of gain (loss) reclassified from accumulated OCI into income | $ | ( i 4.6 | ) | $ | ( i 0.4 | ) | $ | ( i 18.8 | ) | $ | ( i 2.5 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Cost
of sales | $ | i 3.6 | $ | i 2.7 | $ | i 11.5 | $ | i 8.5 | |||||||
Selling,
general, and administrative expenses | i 12.4 | i 11.9 | i 39.4 | i 36.4 | |||||||||||
Research
and development expenses | i 3.8 | i 2.8 | i 12.0 | i 10.1 | |||||||||||
Total
stock-based compensation expense | $ | i 19.8 | $ | i 17.4 | $ | i 62.9 | $ | i 55.0 |
Option Awards | Three Months Ended September 30, | Nine
Months Ended September 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Average risk-free interest rate | i 1.8 | % | i 2.8 | % | i 2.3 | % | i 2.9 | % | |||||||
Expected
dividend yield | i None | i None | i None | i None | |||||||||||
Expected
volatility | i 29.7 | % | i 29.2 | % | i 29.6 | % | i 29.1 | % | |||||||
Expected
term (years) | i 5.2 | i 5.2 | i 5.1 | i 5.0 | |||||||||||
Fair
value, per option | $ | i 58.07 | $ | i 46.37 | $ | i 54.31 | $ | i 42.44 |
ESPP | Three Months Ended September 30, | Nine
Months Ended September 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Average risk-free interest rate | i 2.0 | % | i 2.2 | % | i 2.4 | % | i 1.7 | % | |||||||
Expected
dividend yield | i None | i None | i None | i None | |||||||||||
Expected
volatility | i 32.0 | % | i 34.3 | % | i 32.4 | % | i 32.8 | % | |||||||
Expected
term (years) | i 0.7 | i 0.7 | i 0.6 | i 0.6 | |||||||||||
Fair
value, per share | $ | i 57.31 | $ | i 46.58 | $ | i 49.29 | $ | i 36.53 |
Initial
Delivery | Final Settlement | ||||||||||||||||||||||
Agreement Date | Amount Paid | Shares Received | Price per Share (a) | Value
of Shares as % of Contract Value | Settlement Date | Total Shares Received | Average Price per Share (a) | ||||||||||||||||
April 2018 | $ | i 400.0 | i 2.5 | $ | i 127.36 | i 80 | % | July
2018 | i 2.8 | $ | i 142.37 | ||||||||||||
May
2019 | $ | i 150.0 | i 0.7 | $ | i 178.66 | i 80 | % | May
2019 | i 0.8 | $ | i 178.42 | ||||||||||||
May
2019 | $ | i 100.0 | i 0.5 | $ | i 170.02 | i 80 | % | June
2019 | i 0.6 | $ | i 178.46 |
Foreign Currency Translation Adjustments | Unrealized
Gain on Hedges | Unrealized (Loss) Gain 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 17.6 | ) | i 35.1 | i 7.8 | ( i 0.3 | ) | i 25.0 | ||||||||||||
Amounts
reclassified from accumulated other comprehensive loss | ( i 5.0 | ) | ( i 31.0 | ) | i 0.3 | i — | ( i 35.7 | ) | |||||||||||
Deferred
income tax expense | ( i 4.5 | ) | ( i 0.3 | ) | ( i 1.8 | ) | i — | ( i 6.6 | ) | ||||||||||
$ | ( i 170.7 | ) | $ | i 27.4 | $ | i 1.3 | $ | ( i 13.8 | ) | $ | ( i 155.8 | ) |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Affected Line on Consolidated Condensed Statements of Operations | |||||||||||||||||
Details about Accumulated Other Comprehensive Loss Components | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Foreign
currency translation adjustments | $ | i 1.7 | $ | i — | $ | i 5.0 | $ | i — | Other
income, net | ||||||||
( i 0.4 | ) | i — | ( i 1.2 | ) | i — | Provision
for income taxes | |||||||||||
$ | i 1.3 | $ | i — | $ | i 3.8 | $ | i — | Net
of tax | |||||||||
Gain on hedges | $ | i 12.8 | $ | ( i 4.6 | ) | $ | i 31.7 | $ | ( i 18.8 | ) | Cost
of sales | ||||||
i 0.6 | ( i 0.4 | ) | i 1.4 | ( i 2.5 | ) | Selling,
general, and administrative expenses | |||||||||||
i 2.1 | i — | ( i 2.1 | ) | i — | Other
income, net | ||||||||||||
i 15.5 | ( i 5.0 | ) | i 31.0 | ( i 21.3 | ) | Total
before tax | |||||||||||
( i 3.5 | ) | i 1.1 | ( i 8.3 | ) | i 5.1 | Provision
for income taxes | |||||||||||
$ | i 12.0 | $ | ( i 3.9 | ) | $ | i 22.7 | $ | ( i 16.2 | ) | Net
of tax | |||||||
(Loss) gain on available-for-sale investments | $ | i — | $ | ( i 0.6 | ) | $ | ( i 0.3 | ) | $ | ( i 2.9 | ) | Other
income, net | |||||
i — | i — | i — | i 0.2 | Provision
for income taxes | |||||||||||||
$ | i — | $ | ( i 0.6 | ) | $ | ( i 0.3 | ) | $ | ( i 2.7 | ) | Net
of tax | ||||||
Unrealized pension costs | $ | i — | $ | i — | $ | i — | $ | ( i 0.6 | ) | Other
income, net | |||||||
i — | i — | i — | i 0.1 | Provision
for income taxes | |||||||||||||
$ | i — | $ | i — | $ | i — | $ | ( i 0.5 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Basic: | |||||||||||||||
Net
income | $ | i 274.7 | $ | i 225.9 | $ | i 766.7 | $ | i 715.2 | |||||||
Weighted-average
shares outstanding | i 208.2 | i 209.0 | i 208.1 | i 209.5 | |||||||||||
Basic
earnings per share | $ | i 1.32 | $ | i 1.08 | $ | i 3.68 | $ | i 3.41 | |||||||
Diluted: | |||||||||||||||
Net
income | $ | i 274.7 | $ | i 225.9 | $ | i 766.7 | $ | i 715.2 | |||||||
Weighted-average
shares outstanding | i 208.2 | i 209.0 | i 208.1 | i 209.5 | |||||||||||
Dilutive
effect of stock plans | i 3.9 | i 4.2 | i 4.0 | i 4.6 | |||||||||||
Dilutive
weighted-average shares outstanding | i 212.1 | i 213.2 | i 212.1 | i 214.1 | |||||||||||
Diluted
earnings per share | $ | i 1.30 | $ | i 1.06 | $ | i 3.61 | $ | i 3.34 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Segment
Net Sales | |||||||||||||||
United States | $ | i 647.8 | $ | i 518.5 | $ | i 1,835.5 | $ | i 1,510.2 | |||||||
Europe | i 219.8 | i 191.6 | i 684.3 | i 608.1 | |||||||||||
Japan | i 110.0 | i 95.4 | i 322.9 | i 288.4 | |||||||||||
Rest
of World | i 112.0 | i 96.8 | i 316.5 | i 290.2 | |||||||||||
Total
segment net sales | $ | i 1,089.6 | $ | i 902.3 | $ | i 3,159.2 | $ | i 2,696.9 | |||||||
Segment
Operating Income | |||||||||||||||
United States | $ | i 447.4 | $ | i 353.0 | $ | i 1,258.3 | $ | i 1,010.5 | |||||||
Europe | i 111.5 | i 90.9 | i 353.2 | i 295.6 | |||||||||||
Japan | i 70.7 | i 55.0 | i 202.8 | i 171.8 | |||||||||||
Rest
of World | i 36.7 | i 28.3 | i 99.8 | i 89.6 | |||||||||||
Total
segment operating income | $ | i 666.3 | $ | i 527.2 | $ | i 1,914.1 | $ | i 1,567.5 |
Three Months Ended September 30, | Nine
Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net Sales Reconciliation | |||||||||||||||
Segment
net sales | $ | i 1,089.6 | $ | i 902.3 | $ | i 3,159.2 | $ | i 2,696.9 | |||||||
Foreign
currency | i 4.4 | i 4.3 | i 14.7 | i 48.2 | |||||||||||
Consolidated
net sales | $ | i 1,094.0 | $ | i 906.6 | $ | i 3,173.9 | $ | i 2,745.1 | |||||||
Pre-tax
Income Reconciliation | |||||||||||||||
Segment operating income | $ | i 666.3 | $ | i 527.2 | $ | i 1,914.1 | $ | i 1,567.5 | |||||||
Unallocated
amounts: | |||||||||||||||
Corporate items | ( i 384.2 | ) | ( i 281.0 | ) | ( i 1,073.1 | ) | ( i 792.0 | ) | |||||||
Special
charge (Note 4) | i — | i — | ( i 24.0 | ) | i — | ||||||||||
Intellectual
property litigation expenses | ( i 7.9 | ) | ( i 7.9 | ) | ( i 19.5 | ) | ( i 19.1 | ) | |||||||
Change
in fair value of contingent consideration liabilities, net | i 2.3 | i 6.4 | ( i 12.4 | ) | ( i 8.3 | ) | |||||||||
Foreign
currency | i 17.8 | i 4.2 | i 50.9 | i 5.4 | |||||||||||
Consolidated
operating income | i 294.3 | i 248.9 | i 836.0 | i 753.5 | |||||||||||
Non-operating
income | i 7.4 | ( i 0.2 | ) | i 15.0 | i 9.7 | ||||||||||
Consolidated
pre-tax income | $ | i 301.7 | $ | i 248.7 | $ | i 851.0 | $ | i 763.2 |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in
millions) | |||||||||||||||
Net Sales by Geographic Area | |||||||||||||||
United
States | $ | i 647.8 | $ | i 518.7 | $ | i 1,835.5 | $ | i 1,510.3 | |||||||
Europe | i 222.6 | i 201.3 | i 699.0 | i 659.3 | |||||||||||
Japan | i 112.9 | i 94.2 | i 324.4 | i 289.5 | |||||||||||
Rest
of World | i 110.7 | i 92.4 | i 315.0 | i 286.0 | |||||||||||
$ | i 1,094.0 | $ | i 906.6 | $ | i 3,173.9 | $ | i 2,745.1 | ||||||||
Net
Sales by Major Product and Service Area | |||||||||||||||
Transcatheter Aortic Valve Replacement | $ | i 700.0 | $ | i 557.1 | $ | i 1,975.4 | $ | i 1,692.2 | |||||||
Transcatheter
Mitral and Tricuspid Therapies | i 9.7 | i 0.7 | i 21.0 | i 2.1 | |||||||||||
Surgical
Structural Heart | i 204.1 | i 184.6 | i 636.6 | i 554.4 | |||||||||||
Critical
Care | i 180.2 | i 164.2 | i 540.9 | i 496.4 | |||||||||||
$ | i 1,094.0 | $ | i 906.6 | $ | i 3,173.9 | $ | i 2,745.1 |
(in millions) | |||||||
Long-lived Tangible Assets by Geographic Area | |||||||
United States | $ | i 791.5 | $ | i 642.1 | |||
Europe | i 73.7 | i 36.6 | |||||
Japan | i 23.1 | i 6.7 | |||||
Rest
of World | i 258.7 | i 214.4 | |||||
$ | i 1,147.0 | $ | i 899.8 |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
Percent
Change | Percent Change | ||||||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||||
United
States | $ | 647.8 | $ | 518.7 | $ | 129.1 | 24.9 | % | $ | 1,835.5 | $ | 1,510.3 | $ | 325.2 | 21.5 | % | |||||||||||||
Europe | 222.6 | 201.3 | 21.3 | 10.5 | % | 699.0 | 659.3 | 39.7 | 6.0 | % | |||||||||||||||||||
Japan | 112.9 | 94.2 | 18.7 | 19.9 | % | 324.4 | 289.5 | 34.9 | 12.1 | % | |||||||||||||||||||
Rest
of World | 110.7 | 92.4 | 18.3 | 19.6 | % | 315.0 | 286.0 | 29.0 | 10.2 | % | |||||||||||||||||||
International | 446.2 | 387.9 | 58.3 | 15.0 | % | 1,338.4 | 1,234.8 | 103.6 | 8.4 | % | |||||||||||||||||||
Total
net sales | $ | 1,094.0 | $ | 906.6 | $ | 187.4 | 20.7 | % | $ | 3,173.9 | $ | 2,745.1 | $ | 428.8 | 15.6 | % |
Three
Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
Percent
Change | Percent Change | ||||||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||||
Transcatheter
Aortic Valve Replacement | $ | 700.0 | $ | 557.1 | $ | 142.9 | 25.7 | % | $ | 1,975.4 | $ | 1,692.2 | $ | 283.2 | 16.7 | % | |||||||||||||
Transcatheter
Mitral and Tricuspid Therapies | 9.7 | 0.7 | 9.0 | NM | 21.0 | 2.1 | 18.9 | NM | |||||||||||||||||||||
Surgical
Structural Heart | 204.1 | 184.6 | 19.5 | 10.5 | % | 636.6 | 554.4 | 82.2 | 14.8 | % | |||||||||||||||||||
Critical
Care | 180.2 | 164.2 | 16.0 | 9.7 | % | 540.9 | 496.4 | 44.5 | 9.0 | % | |||||||||||||||||||
Total
net sales | $ | 1,094.0 | $ | 906.6 | $ | 187.4 | 20.7 | % | $ | 3,173.9 | $ | 2,745.1 | $ | 428.8 | 15.6 | % |
• | higher
sales of the Edwards SAPIEN 3 valve, particularly in the United States, driven by strong therapy adoption; and |
• | higher sales of the Edwards SAPIEN 3 Ultra System following its regulatory approval in Europe (November 2018) and the United States (December 2018); |
• | foreign
currency exchange rate fluctuations, which decreased net sales for the three and nine months ended September 30, 2019 by $4.2 million and $29.5 million, respectively, due primarily to the weakening of the Euro against the United States dollar. |
• | sales return reserves in the prior year periods of $14.4 million and $77.5 million, respectively, in the United States related to our conversion to a consignment inventory model; and |
• | increased sales of aortic tissue valves in the United States and Japan, primarily the INSPIRIS RESILIA aortic valve; |
• | foreign currency exchange rate fluctuations, which decreased net sales for the three and nine months ended September 30, 2019 by $1.3 million and $13.5 million, respectively, due primarily to the weakening of the Euro against the United States dollar. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Foreign exchange gains, net | $ | (1.0 | ) | $ | (0.6 | ) | $ | (4.6 | ) | $ | (4.9 | ) | |||
(Gain)
loss on investments | (1.6 | ) | — | (1.2 | ) | 2.1 | |||||||||
CASMED earn-out on sale of assets | (2.0 | ) | — | (2.0 | ) | — | |||||||||
Other | — | 0.3 | — | 0.5 | |||||||||||
Other
income, net | $ | (4.6 | ) | $ | (0.3 | ) | $ | (7.8 | ) | $ | (2.3 | ) |
Period | Total Number of
Shares (or Units) Purchased (a) | Average Price Paid per Share (or Unit) | 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) (b) | |||||||||||||
July 1, 2019 through July 31, 2019 | 1,014 | $ | 190.33 | — | $ | 1,239.6 | |||||||||||
August
1, 2019 through August 31, 2019 | — | — | — | 1,239.6 | |||||||||||||
September
1, 2019 through September 30, 2019 | 4,889 | 218.37 | — | 1,239.6 | |||||||||||||
Total | 5,903 | 213.55 | — | ||||||||||||||
(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) | 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. |
EDWARDS LIFESCIENCES CORPORATION | |||
(Registrant) | |||
Date: | By: | /s/ SCOTT B. ULLEM | |
Chief Financial Officer (Principal Financial Officer) | |||
Date: | By: | ||
Corporate Controller (Principal Accounting Officer) |
Exhibit No. | Description | |||
31.1 | ||||
31.2 | ||||
32 | ||||
101.INS | XBRL 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 |
This ‘10-Q’ Filing | Date | Other Filings | ||
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6/15/28 | ||||
4/28/23 | ||||
7/14/20 | 4 | |||
5/4/20 | ||||
Filed on: | 10/25/19 | 4 | ||
10/23/19 | 8-K | |||
For Period end: | 9/30/19 | |||
9/1/19 | ||||
8/31/19 | ||||
8/1/19 | 4 | |||
7/31/19 | 4 | |||
7/1/19 | 4 | |||
6/30/19 | 10-Q | |||
5/8/19 | 4, 8-K, DEF 14A | |||
4/18/19 | 4 | |||
3/31/19 | 10-Q | |||
3/15/19 | 4 | |||
2/22/19 | 3, 4 | |||
2/11/19 | 3, SC 13G/A | |||
1/28/19 | ||||
1/1/19 | ||||
12/31/18 | 10-K, 11-K, 5, SD | |||
12/15/18 | ||||
9/30/18 | 10-Q | |||
6/30/18 | 10-Q | |||
3/31/18 | 10-Q | |||
1/1/18 | ||||
12/31/17 | 10-K, 11-K, SD | |||
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