(Mark One) | |
ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 94-1381833 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
1000 Alfred Nobel Drive, Hercules, California | 94547 | |
(Address of principal executive offices) | (Zip Code) |
Yes x | No o |
Yes x | No o |
Large accelerated filer | x | Accelerated filer | o | |
Non-accelerated filer | o | (Do not check if smaller reporting company) | Smaller reporting company | o |
Yes o | No x |
Title of Class | Shares Outstanding at October 27, 2016 | |
Class A Common Stock, Par Value $0.0001 per share | ||
Class B Common Stock, Par Value $0.0001 per share |
September 30, 2016 | December 31, 2015 | ||||||
ASSETS: | (Unaudited) | ||||||
Cash and cash equivalents | $ | $ | |||||
Short-term investments | |||||||
Restricted investments | |||||||
Accounts receivable, net | |||||||
Inventories: | |||||||
Raw materials | |||||||
Work in process | |||||||
Finished goods | |||||||
Total inventories | |||||||
Other current assets | |||||||
Total current assets | |||||||
Property, plant and equipment, at cost | |||||||
Less: accumulated depreciation and amortization | ( | ) | ( | ) | |||
Property, plant and equipment, net | |||||||
Goodwill, net | |||||||
Purchased intangibles, net | |||||||
Other investments | |||||||
Other assets | |||||||
Total assets | $ | $ | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||
Accounts payable, accrued payroll and employee benefits | $ | $ | |||||
Current maturities of long-term debt and notes payable | |||||||
Income and other taxes payable | |||||||
Other current liabilities | |||||||
Total current liabilities | |||||||
Long-term debt, net of current maturities | |||||||
Deferred income taxes | |||||||
Deferred revenue | |||||||
Other long-term liabilities | |||||||
Total liabilities | |||||||
Stockholders’ equity: | |||||||
Class A common stock, shares issued 24,417,541 and 24,230,448 at 2016 and 2015, respectively; shares outstanding 24,417,419 and 24,230,326 at 2016 and 2015, respectively | |||||||
Class B common stock, shares issued 5,124,738 and 5,130,558 at 2016 and 2015, respectively; shares outstanding 5,123,821 and 5,129,641 at 2016 and 2015, respectively | |||||||
Additional paid-in capital | |||||||
Class A treasury stock at cost, 122 shares at 2016 and 2015 | ( | ) | ( | ) | |||
Class B treasury stock at cost, 917 shares at 2016 and 2015 | ( | ) | ( | ) | |||
Retained earnings | |||||||
Accumulated other comprehensive income | |||||||
Total stockholders’ equity | |||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||
Cost of goods sold | |||||||||||||||
Gross profit | |||||||||||||||
Selling, general and administrative expense | |||||||||||||||
Research and development expense | |||||||||||||||
Income from operations | |||||||||||||||
Interest expense | |||||||||||||||
Foreign currency exchange losses, net | |||||||||||||||
Other (income) expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Income before income taxes | |||||||||||||||
Provision for income taxes | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net income | $ | $ | $ | $ | |||||||||||
Basic earnings per share: | |||||||||||||||
Net income per basic share | $ | $ | $ | $ | |||||||||||
Weighted average common shares - basic | |||||||||||||||
Diluted earnings per share: | |||||||||||||||
Net income per diluted share | $ | $ | $ | $ | |||||||||||
Weighted average common shares - diluted |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | $ | $ | $ | |||||||||||
Other comprehensive income: | |||||||||||||||
Foreign currency translation adjustments | ( | ) | ( | ) | |||||||||||
Foreign other post-employment benefits adjustments, net of income taxes | ( | ) | |||||||||||||
Net unrealized holding gains on available-for-sale (AFS) investments, net of income taxes | |||||||||||||||
Other comprehensive income, net of income taxes | |||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Nine Months Ended | |||||||
September 30, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Cash received from customers | $ | $ | |||||
Cash paid to suppliers and employees | ( | ) | ( | ) | |||
Interest paid, net | ( | ) | ( | ) | |||
Income tax payments, net | ( | ) | ( | ) | |||
Investment proceeds and miscellaneous receipts, net | |||||||
Excess tax benefits from share-based compensation | ( | ) | ( | ) | |||
(Payments for) proceeds from forward foreign exchange contracts, net | ( | ) | |||||
Net cash provided by operating activities | |||||||
Cash flows from investing activities: | |||||||
Capital expenditures | ( | ) | ( | ) | |||
Proceeds from dispositions of property, plant and equipment | |||||||
Payments for acquisition and long-term investment | ( | ) | ( | ) | |||
Payments for purchases of intangible assets | ( | ) | ( | ) | |||
Payments for purchases of marketable securities and investments | ( | ) | ( | ) | |||
Proceeds from sales of marketable securities and investments | |||||||
Proceeds from maturities of marketable securities and investments | |||||||
Net cash used in investing activities | ( | ) | ( | ) | |||
Cash flows from financing activities: | |||||||
Net borrowings from line-of-credit arrangements and notes payable | |||||||
Payments on long-term borrowings | ( | ) | ( | ) | |||
Payments of contingent consideration | ( | ) | ( | ) | |||
Proceeds from issuances of common stock for share-based compensation | |||||||
Excess tax benefits from share-based compensation | |||||||
Net cash provided by financing activities | |||||||
Effect of foreign exchange rate changes on cash | ( | ) | |||||
Net (decrease) increase in cash and cash equivalents | ( | ) | |||||
Cash and cash equivalents at beginning of period | |||||||
Cash and cash equivalents at end of period | $ | $ | |||||
Reconciliation of net income to net cash provided by operating activities: | |||||||
Net income | $ | $ | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Share-based compensation | |||||||
Gains on dispositions of securities | ( | ) | ( | ) | |||
Excess tax benefits from share-based compensation | ( | ) | ( | ) | |||
Changes in fair value of contingent consideration | ( | ) | ( | ) | |||
Decrease in accounts receivable | |||||||
Increase in inventories | ( | ) | ( | ) | |||
(Increase) decrease in other current assets | ( | ) | |||||
(Decrease) increase in accounts payable and other current liabilities | ( | ) | |||||
(Decrease) increase in income taxes payable | ( | ) | |||||
(Decrease) increase in deferred income taxes | ( | ) | |||||
Net decrease/increase in other long-term assets/liabilities | ( | ) | |||||
Net cash provided by operating activities | $ | $ |
• | Level 1: Quoted prices in active markets for identical instruments |
• | Level 2: Other significant observable inputs (including quoted prices in active markets for similar instruments) |
• | Level 3: Significant unobservable inputs (including assumptions in determining the fair value of certain investments) |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Financial Assets Carried at Fair Value: | |||||||||||||||
Cash equivalents: | |||||||||||||||
Commercial paper | $ | $ | $ | $ | |||||||||||
Municipals | |||||||||||||||
Foreign time deposits | |||||||||||||||
Domestic time deposits | |||||||||||||||
Money market funds | |||||||||||||||
Total cash equivalents (a) | |||||||||||||||
Restricted investment: | |||||||||||||||
Available-for-sale investments: | |||||||||||||||
Corporate debt securities | |||||||||||||||
U.S. government sponsored agencies | |||||||||||||||
Foreign government obligations | |||||||||||||||
Brokered CD's | |||||||||||||||
Municipal obligations | |||||||||||||||
Marketable equity securities | |||||||||||||||
Asset-backed securities | |||||||||||||||
Total available-for-sale investments (b) | |||||||||||||||
Forward foreign exchange contracts (c) | |||||||||||||||
Total financial assets carried at fair value | $ | $ | $ | $ | |||||||||||
Financial Liabilities Carried at Fair Value: | |||||||||||||||
Forward foreign exchange contracts (d) | $ | $ | $ | $ | |||||||||||
Contingent consideration (e) | |||||||||||||||
Total financial liabilities carried at fair value | $ | $ | $ | $ |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Financial Assets Carried at Fair Value: | |||||||||||||||
Cash equivalents: | |||||||||||||||
Commercial paper | $ | $ | $ | $ | |||||||||||
Foreign government obligations | |||||||||||||||
Foreign time deposits | |||||||||||||||
U.S. government sponsored agencies | |||||||||||||||
Money market funds | |||||||||||||||
Total cash equivalents (a) | |||||||||||||||
Restricted investment: | |||||||||||||||
Available-for-sale investments: | |||||||||||||||
Corporate debt securities | |||||||||||||||
U.S. government sponsored agencies | |||||||||||||||
Foreign government obligations | |||||||||||||||
Municipal obligations | |||||||||||||||
Marketable equity securities | |||||||||||||||
Asset-backed securities | |||||||||||||||
Total available-for-sale investments (b) | |||||||||||||||
Forward foreign exchange contracts (c) | |||||||||||||||
Total financial assets carried at fair value | $ | $ | $ | $ | |||||||||||
Financial Liabilities Carried at Fair Value: | |||||||||||||||
Forward foreign exchange contracts (d) | $ | $ | $ | $ | |||||||||||
Contingent consideration (e) | |||||||||||||||
Total financial liabilities carried at fair value | $ | $ | $ | $ |
(a) |
(b) |
September 30, 2016 | December 31, 2015 | ||||||
Short-term investments | $ | $ | |||||
Other investments | |||||||
Total | $ | $ |
(c) |
(d) |
(e) |
September 30, 2016 | December 31, 2015 | ||||||
Other current liabilities | $ | $ | |||||
Other long-term liabilities | |||||||
Total | $ | $ |
2016 | |||
January 1 | $ | ||
Cell sorting system: | |||
Payment of sales milestone | ( | ) | |
Decrease in estimated fair value of contingent consideration included in Selling, general and administrative expense | ( | ) | |
Analytical flow cytometer platform: | |||
Acquisition of high performance analytical flow cytometer platform | |||
September 30 | $ |
Range | |||||
Valuation Technique | Unobservable Input | From | To | ||
Cell sorting system | Probability-weighted income approach | Sales milestones: | |||
Credit adjusted discount rates | N/A | ||||
Projected volatility of growth rate | N/A | ||||
Market price of risk | N/A | ||||
Analytical flow cytometer platform | Probability-weighted income approach | Sales milestones: | |||
Market price of risk | % | ||||
Volatility | % | ||||
September 30, 2016 | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
Short-term investments: | |||||||||||||||
Corporate debt securities | $ | $ | $ | ( | ) | $ | |||||||||
Brokered certificates of deposit | |||||||||||||||
Municipal obligations | |||||||||||||||
Asset-backed securities | ( | ) | |||||||||||||
U.S. government sponsored agencies | ( | ) | |||||||||||||
Foreign government obligations | |||||||||||||||
Marketable equity securities | ( | ) | |||||||||||||
( | ) | ||||||||||||||
Long-term investments: | |||||||||||||||
Marketable equity securities | |||||||||||||||
Asset-backed securities | |||||||||||||||
Total | $ | $ | $ | ( | ) | $ |
December 31, 2015 | |||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | ||||||||||||
Short-term investments: | |||||||||||||||
Corporate debt securities | $ | $ | $ | ( | ) | $ | |||||||||
Municipal obligations | |||||||||||||||
Asset-backed securities | ( | ) | |||||||||||||
U.S. government sponsored agencies | ( | ) | |||||||||||||
Foreign government obligations | |||||||||||||||
Marketable equity securities | ( | ) | |||||||||||||
( | ) | ||||||||||||||
Long-term investments: | |||||||||||||||
Marketable equity securities | |||||||||||||||
Asset-backed securities | ( | ) | |||||||||||||
( | ) | ||||||||||||||
Total | $ | $ | $ | ( | ) | $ |
September 30, 2016 | December 31, 2015 | ||||||
Fair value of investments in a loss position 12 months or more | $ | $ | |||||
Fair value of investments in a loss position less than 12 months | $ | $ | |||||
Gross unrealized losses for investments in a loss position 12 months or more | $ | $ | |||||
Gross unrealized losses for investments in a loss position less than 12 months | $ | $ |
September 30, | |||
2016 | |||
Contracts maturing in October through December 2016 to sell foreign currency: | |||
Notional value | $ | ||
Unrealized gain | $ | ||
Contracts maturing in October through December 2016 to purchase foreign currency: | |||
Notional value | $ | ||
Unrealized loss | $ | ( | ) |
Amortized Cost | Estimated Fair Value | ||||||
Mature in less than one year | $ | $ | |||||
Mature in one to five years | |||||||
Mature in more than five years | |||||||
Total | $ | $ |
September 30, 2016 | December 31, 2015 | ||||||||||||||||||
Carrying Amount | Estimated Fair Value | Fair Value Hierarchy Level | Carrying Amount | Estimated Fair Value | Fair Value Hierarchy Level | ||||||||||||||
Other investments | $ | $ | 2 | $ | $ | 2 | |||||||||||||
Total long-term debt, excluding leases and current maturities | $ | $ | 2 | $ | $ | 2 |
Life Science | Clinical Diagnostics | Total | |||||||||
Balances as of January 1, 2016: | |||||||||||
Goodwill | $ | $ | $ | ||||||||
Accumulated impairment losses | ( | ) | ( | ) | ( | ) | |||||
Goodwill, net | |||||||||||
Acquisitions | |||||||||||
Currency fluctuations | |||||||||||
Balances as of September 30, 2016: | |||||||||||
Goodwill | |||||||||||
Accumulated impairment losses | ( | ) | ( | ) | ( | ) | |||||
Goodwill, net | $ | $ | $ |
September 30, 2016 | |||||||||||||
Average Remaining Life (years) | Purchase Price | Accumulated Amortization | Net Carrying Amount | ||||||||||
Customer relationships/lists | 1-9 | $ | $ | ( | ) | $ | |||||||
Know how | 1-9 | ( | ) | ||||||||||
Developed product technology | 3-13 | ( | ) | ||||||||||
Licenses | 2-10 | ( | ) | ||||||||||
Tradenames | 5-8 | ( | ) | ||||||||||
Covenants not to compete | 2-10 | ( | ) | ||||||||||
Total definite-lived intangible assets | ( | ) | |||||||||||
In-process research and development | — | ||||||||||||
Total purchased intangible assets | $ | $ | ( | ) | $ |
December 31, 2015 | |||||||||||||
Average Remaining Life (years) | Purchase Price | Accumulated Amortization | Net Carrying Amount | ||||||||||
Customer relationships/lists | 2-10 | $ | $ | ( | ) | $ | |||||||
Know how | 1-10 | ( | ) | ||||||||||
Developed product technology | 4-12 | ( | ) | ||||||||||
Licenses | 3-10 | ( | ) | ||||||||||
Tradenames | 5-9 | ( | ) | ||||||||||
Covenants not to compete | 3-7 | ( | ) | ||||||||||
Total definite-lived intangible assets | ( | ) | |||||||||||
In-process research and development | — | ||||||||||||
Total purchased intangible assets | $ | $ | ( | ) | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Amortization expense | $ | $ | $ | $ |
January 1, 2016 | $ | ||
Provision for warranty | |||
Actual warranty costs | ( | ) | |
September 30, 2016 | $ |
September 30, 2016 | December 31, 2015 | ||||||
4.875% Senior Notes due 2020 principal amount | $ | $ | |||||
Less unamortized discount and debt issuance costs | ( | ) | ( | ) | |||
Long-term debt less unamortized discount and debt issuance costs | |||||||
Capital leases and other debt | |||||||
Less current maturities | ( | ) | ( | ) | |||
Long-term debt | $ | $ |
Foreign currency translation adjustments | Foreign other post-employment benefits adjustments | Net unrealized holding gains on available-for-sale investments | Total accumulated other comprehensive income | |||||||||
Balances as of January 1, 2016: | $ | $ | ( | ) | $ | $ | ||||||
Other comprehensive income (loss), before reclassifications | ( | ) | ||||||||||
Amounts reclassified from Accumulated other comprehensive income | ( | ) | ||||||||||
Income tax effects | ( | ) | ( | ) | ( | ) | ||||||
Other comprehensive income, net of income taxes | ||||||||||||
Balances as of September 30, 2016: | $ | $ | ( | ) | $ | $ |
Foreign currency translation adjustments | Foreign other post-employment benefits adjustments | Net unrealized holding gains on available-for-sale investments | Total accumulated other comprehensive income | |||||||||
Balances as of January 1, 2015: | $ | $ | ( | ) | $ | $ | ||||||
Other comprehensive (loss) income, before reclassifications | ( | ) | ||||||||||
Amounts reclassified from Accumulated other comprehensive income | ( | ) | ||||||||||
Income tax effects | ( | ) | ( | ) | ||||||||
Other comprehensive (loss) income, net of income taxes | ( | ) | ||||||||||
Balances as of September 30, 2015: | $ | $ | ( | ) | $ | $ |
Income before taxes impact (in millions): | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
Components of Comprehensive income | 2016 | 2015 | 2016 | 2015 | Location | |||||||||||||
Amortization of foreign other post-employment benefit items | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | Selling, general and administrative expense | |||||
Net holding gains on available-for-sale investments | $ | $ | $ | $ | Other (income) expense, net |
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Basic weighted average shares outstanding | |||||||||||
Effect of potentially dilutive stock options and restricted stock awards | |||||||||||
Diluted weighted average common shares | |||||||||||
Anti-dilutive shares |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest and investment income | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Net realized gain on investments | ( | ) | ( | ) | ( | ) | |||||||||
Other (income) expense, net | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Life Science | Clinical Diagnostics | Other Operations | ||||||||||
Segment net sales | 2016 | $ | $ | $ | ||||||||
2015 | $ | $ | $ | |||||||||
Segment net (loss) profit | 2016 | $ | ( | ) | $ | $ | ||||||
2015 | $ | ( | ) | $ | $ |
Life Science | Clinical Diagnostics | Other Operations | ||||||||||
Segment net sales | 2016 | $ | $ | $ | ||||||||
2015 | $ | $ | $ | |||||||||
Segment net (loss) profit | 2016 | $ | ( | ) | $ | $ | ||||||
2015 | $ | ( | ) | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Total segment profit | $ | $ | $ | $ | |||||||||||
Foreign currency exchange losses, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Net corporate operating, interest and other expense not allocated to segments | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Other income (expense), net | |||||||||||||||
Consolidated income before income taxes | $ | $ | $ | $ |
Life Science | Clinical Diagnostics | Total | ||||||||||
Balance at December 31, 2015 | $ | $ | $ | |||||||||
Charged to expense | $ | |||||||||||
Adjustment to expense | ( | ) | ( | ) | $ | ( | ) | |||||
Cash payments | ( | ) | ( | ) | ( | ) | ||||||
Balance at September 30, 2016 | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Net sales | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
Cost of goods sold | 45.1 | 43.9 | 45.0 | 43.9 | |||||||
Gross profit | 54.9 | 56.1 | 55.0 | 56.1 | |||||||
Selling, general and administrative expense | 39.6 | 39.9 | 39.9 | 39.3 | |||||||
Research and development expense | 9.8 | 9.2 | 10.1 | 9.5 | |||||||
Net income | 3.6 | 3.7 | 3.3 | 4.4 |
• | more cash paid to suppliers and employees primarily related to higher payments to inventory suppliers as payments were delayed in the latter part of 2015 mostly associated with the second deployment of the ERP system, higher annual performance-based compensation payments in 2016, and higher legal and other professional fees, |
• | net payments in 2016 compared to net cash received in 2015 for forward foreign exchange contracts, and |
• | higher federal income tax payments in 2016 and lower income tax refunds received than in 2015, partially offset by |
• | higher cash received from customers primarily due to delays in the latter part of 2015 mostly associated with the second deployment of the ERP system, and |
• | higher investment income received. |
• | The trend towards managed care, together with healthcare reform of the delivery system in the United States and efforts to reform in Europe, has resulted in increased pressure on healthcare providers and other participants in the healthcare industry to reduce selling prices. Consolidation among healthcare providers has resulted in fewer, more powerful groups, whose purchasing power gives them cost containment leverage. In particular, there has been a consolidation of blood transfusion centers, as well as an industry decline in the number of blood transfusions. These industry trends and competitive forces place constraints on the levels of overall pricing, and thus could have a material adverse effect on our gross margins for products we sell in clinical diagnostic markets. |
• | Third party payors, such as Medicare and Medicaid in the United States, have reduced their reimbursements for certain medical products and services. Our Clinical Diagnostics business is impacted by the level of reimbursement available for clinical tests from third party payors. In the United States payment for many diagnostic tests furnished to Medicare fee-for-service beneficiaries is made based on the Medicare Clinical Laboratory Fee Schedule (CLFS), a fee schedule established and adjusted from time to time by the Centers for Medicare and Medicaid Services (CMS). Some commercial payors are guided by the CLFS in establishing their reimbursement rates. Clinicians may decide not to order clinical diagnostic tests if third party payments are inadequate, and we cannot predict whether third party payors will offer adequate reimbursement for tests utilizing our products to make them commercially attractive. Legislation, such as the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act (PPACA) and the Middle Class Tax Relief and Job Creation Act of 2012, has reduced the payments for clinical laboratory services paid under the CLFS. In addition, the Protecting Access to Medicare Act of 2014 will make significant changes to the way Medicare will pay for clinical laboratory services, which will further reduce reimbursement rates. |
• | The PPACA has also imposed a 2.3% excise tax on the sales of certain medical devices in the U.S., which we are required to pay on most of our United States Clinical Diagnostic sales. However, the Consolidated Appropriations Act, 2016 (Pub. L. 114-113), signed into law on December 18, 2015, includes a two year moratorium on the medical device excise tax during the period beginning on January 1, 2016, and ending on December 31, 2017. |
• | assimilate the operations and personnel of acquired companies; |
• | retain acquired business customers; |
• | minimize potential disruption to our ongoing business; |
• | retain key technical and management personnel; |
• | integrate acquired companies into our strategic and financial plans; |
• | accurately assess the value of target companies, products and technologies; |
• | comply with new regulatory requirements; |
• | harmonize standards, controls, procedures and policies; |
• | minimize the impact to our relationships with our employees and customers; and |
• | assess, document and remediate any deficiencies in disclosure controls and procedures and internal control over financial reporting. |
• | make it more difficult for us to satisfy our financial obligations, including those relating to our outstanding debt; |
• | require us to dedicate a substantial portion of our cash flow from operations to the payment of interest and principal due under our debt, which will reduce funds available for other business purposes; |
• | increase our vulnerability to general adverse economic and industry conditions; |
• | limit our flexibility in planning for, or reacting to, changes in our business and the industries in which we operate; |
• | place us at a competitive disadvantage compared with some of our competitors that have less debt; and |
• | limit our ability to obtain additional financing required to fund working capital and capital expenditures and for other general corporate purposes. |
• | the U.S. federal Anti-Kickback Statute, which prohibits, among other things, persons or entities from soliciting, receiving, offering or providing remuneration, directly or indirectly, in return for or to induce either the referral of an individual for, or the purchase order or recommendation of, any item or services for which payment may be made under a federal healthcare program such as the Medicare and Medicaid programs; |
• | U.S. federal false claims laws, which prohibit, among other things, individuals or entities from knowingly presenting, or causing to be presented, claims for payment from Medicare, Medicaid, or other third-party payors that are false or fraudulent. In addition, the U.S. federal government may assert that a claim including items or services resulting from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the false claims statutes; |
• | the U.S. Physician Payment Sunshine Act, which requires certain manufacturers of drugs, biologics, devices and medical supplies to record any transfers of value to U.S. physicians and U.S. teaching hospitals; |
• | the Health Insurance Portability and Accountability Act ("HIPAA"), as amended by the Health Information Technology for Economic and Clinical Health Act, which governs the conduct of certain electronic healthcare transactions and protects the security and privacy of protected health information; and |
• | state or foreign law equivalents of each of the U.S. federal laws above, such as anti-kickback and false claims laws, which may apply to items or services reimbursed by any third-party payor, including commercial insurers. |
Exhibit No. | |
31.1 | Chief Executive Officer Section 302 Certification |
31.2 | Chief Financial Officer Section 302 Certification |
32.1 | Chief Executive Officer Certification pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
32.2 | Chief Financial Officer Certification pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
101.INS | 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 Labels Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
BIO-RAD LABORATORIES, INC. | |||
(Registrant) | |||
Date: | November 2, 2016 | /s/ Norman Schwartz | |
Norman Schwartz, Chairman of the Board, | |||
President and Chief Executive Officer | |||
Date: | November 2, 2016 | /s/ Christine A. Tsingos | |
Christine A. Tsingos, Executive Vice President, | |||
Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Bio-Rad Laboratories, Inc. |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report fairly present, in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | November 2, 2016 | /s/ Norman Schwartz | |
Norman Schwartz, Chairman of the Board, | |||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Bio-Rad Laboratories, Inc. |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report fairly present, in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | November 2, 2016 | /s/ Christine A.Tsingos | |
Christine A. Tsingos | |||
Executive Vice President, | |||
Chief Financial Officer |
(1) | the Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2016 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | November 2, 2016 | /s/ Norman Schwartz | |
Norman Schwartz, Chairman of the Board, | |||
President and Chief Executive Officer |
(1) | the Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2016 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and |
(2) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | November 2, 2016 | /s/ Christine A. Tsingos | |
Christine A. Tsingos | |||
Executive Vice President, | |||
Chief Financial Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Oct. 27, 2016 |
|
Entity Registrant Name | BIO RAD LABORATORIES INC | |
Entity Central Index Key | 0000012208 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Common Class A [Member] | ||
Entity Common Stock, Shares Outstanding | 24,417,421 | |
Common Class B [Member] | ||
Entity Common Stock, Shares Outstanding | 5,123,819 |
Condensed Consolidated Balance Sheets Parenthetical - shares |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Common Class A [Member] | ||
Common Stock, Shares, Issued | 24,417,541 | 24,230,448 |
Common Stock, Shares, Outstanding | 24,417,419 | 24,230,326 |
Common Class B [Member] | ||
Common Stock, Shares, Issued | 5,124,738 | 5,130,558 |
Common Stock, Shares, Outstanding | 5,123,821 | 5,129,641 |
Treasury Class A [Member] | ||
Treasury Stock, Shares | 122 | 122 |
Treasury Class B [Member] | ||
Treasury Stock, Shares | 917 | 917 |
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Net sales | $ 508,745 | $ 469,961 | $ 1,496,719 | $ 1,448,884 |
Cost of goods sold | 229,276 | 206,509 | 672,989 | 635,729 |
Gross profit | 279,469 | 263,452 | 823,730 | 813,155 |
Selling, general and administrative expense | 201,452 | 187,445 | 596,704 | 568,845 |
Research and Development Expense | 49,924 | 43,336 | 150,681 | 137,085 |
Segment profit (loss) | 28,093 | 32,671 | 76,345 | 107,225 |
Interest expense | 5,634 | 5,822 | 16,846 | 15,658 |
Foreign exchange losses, net | 1,210 | 2,166 | 3,576 | 8,910 |
Other (income) expense, net | (1,439) | (732) | (13,824) | (8,992) |
Income before income taxes | 22,688 | 25,415 | 69,747 | 91,649 |
Provision for income taxes | (4,283) | (8,045) | (21,052) | (28,038) |
Net income including noncontrolling interests | 48,695 | 63,611 | ||
Net income attributable to Bio-Rad | $ 18,405 | $ 17,370 | $ 48,695 | $ 63,611 |
Basic earnings per share: | ||||
Net income per share basic attributable to Bio-Rad | $ 0.63 | $ 0.59 | $ 1.66 | $ 2.18 |
Weighted average common shares - basic | 29,444 | 29,195 | 29,402 | 29,141 |
Diluted earnings per share: | ||||
Net income per share diluted attributable to Bio-Rad | $ 0.62 | $ 0.59 | $ 1.65 | $ 2.17 |
Weighted average common shares - diluted | 29,671 | 29,439 | 29,592 | 29,372 |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Net Income (Loss) Attributable to Parent | $ 18,405 | $ 17,370 | $ 48,695 | $ 63,611 |
Foreign currency translation adjustments | 3,423 | (27,743) | 22,936 | (10,147) |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | 32 | 89 | (73) | 513 |
Net unrealized holding gains (losses) on available-for-sale investments net of tax expense | 58,387 | 74,987 | 116,402 | 170,069 |
Total other comprehensive income (loss) net of tax | 61,842 | 47,333 | 139,265 | 160,435 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 80,247 | $ 64,703 | $ 187,960 | $ 224,046 |
1. Organization, Consolidation and Presentation of Financial Statements |
9 Months Ended |
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Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | 1.BASIS OF PRESENTATION AND USE OF ESTIMATES Basis of Presentation In this report, “Bio-Rad,” “we,” “us,” “the Company” and “our” refer to Bio-Rad Laboratories, Inc. and its subsidiaries. The accompanying unaudited condensed consolidated financial statements of Bio-Rad have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and reflect all adjustments which are, in the opinion of management, necessary to fairly state the results of the interim periods presented. All such adjustments are of a normal recurring nature. Results for the interim period are not necessarily indicative of the results for the entire year. The condensed consolidated balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2015. We evaluate subsequent events and the evidence they provide about conditions existing at the date of the balance sheet as well as conditions that arose after the balance sheet date but through the date the financial statements are issued. The effects of conditions that existed at the balance sheet date are recognized in the financial statements. Events and conditions arising after the balance sheet date but before the financial statements are issued are evaluated to determine if disclosure is required to keep the financial statements from being misleading. To the extent such events and conditions exist, disclosures are made regarding the nature of events and the estimated financial effects of those events and conditions. Use of Estimates The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting periods. Bio-Rad bases its estimates on historical experience and on various other market-specific and other relevant assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates. Recent Accounting Standards Updates In October 2016, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. (“ASU”) 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory." ASU 2016-16 requires immediate recognition of income tax consequences of intercompany asset transfers, other than inventory transfers. Existing GAAP prohibits recognition of income tax consequences of intercompany asset transfers whereby the seller defers any net tax effect and the buyer is prohibited from recognizing a deferred tax asset on the difference between the newly created tax basis of the asset in its tax jurisdiction and its financial statement carrying amount as reported in the consolidated financial statements. ASU 2016-16 specifically excludes from its scope intercompany inventory transfers whereby the recognition of tax consequences will take place when the inventory is sold to third parties. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements have not been issued or made available for issuance. We are currently evaluating the effect ASU 2016-16 will have on our consolidated financial statements. In August 2016, FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the effect ASU 2016-15 will have on our consolidated statements of cash flows. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." ASU 2016-13 will replace the current incurred loss approach with an expected loss model for instruments measured at amortized cost and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount under the current other-than-temporary impairment model. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018, and interim periods therein. We are currently evaluating the effect ASU 2016-13 will have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 will require all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It also will allow an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and early adoption is permitted. We are currently evaluating the effect ASU 2016-09 will have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, "Simplifying the Transition to the Equity Method of Accounting," which eliminates the requirement to retrospectively apply the equity method in previous periods when an investor initially obtains significant influence over an investee. Under current guidance, an investor that doesn’t consolidate an investment and initially accounts for it under a method other than the equity method is required to retrospectively apply the equity method in prior periods in which it held the investment when it subsequently obtained significant influence. ASU 2016-07 will be applied on a prospective basis and is effective for all entities for fiscal years beginning after December 15, 2016, and interim periods within those years and early adoption is permitted. We do not plan to early adopt ASU 2016-07 and currently do not expect it to affect our consolidated financial statements when adopted on January 1, 2017. In February 2016, the FASB issued ASU 2016-02, "Leases," which will require, among other items, lessees to recognize most leases as assets and liabilities on the balance sheet. Qualitative and quantitative disclosures will be enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. We do not plan to early adopt. ASU 2016-02 will be adopted on a modified retrospective basis, with elective reliefs, which requires application of ASU 2016-02 for all periods presented. We are currently evaluating the effect ASU 2016-02 will have on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities." Amendments under ASU 2016-01, among other items, require that all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. There will no longer be an available-for-sale classification, for which changes in fair value are reported in other comprehensive income, for equity securities with readily determinable fair values. For equity investments without readily determinable fair values, the cost method is also eliminated. However, entities will be able to elect to record equity investments without readily determinable fair values at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Changes in the basis of these equity investments will be reported in current earnings. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We are currently evaluating the effect ASU 2016-01 will have, if any, on our consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments," which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Under ASU 2015-16, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The measurement period cannot exceed one year from the date of the acquisition. ASU 2015-16 was effective on January 1, 2016, and we adopted it at the same time as a change in accounting policy, which had no impact on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory.” Under current guidance, an entity subsequently measures inventory at the lower of cost or market, with market defined as replacement cost, net realizable value (NRV), or NRV less a normal profit margin. An entity uses current replacement cost provided that it is not above NRV (i.e., the ceiling) or below NRV less an “approximately normal profit margin” (i.e., the floor). ASU 2015-11 eliminates this analysis and requires entities to measure most inventory “at the lower of cost and NRV.” ASU 2015-11 is effective prospectively for annual periods beginning after December 15, 2016, and interim periods therein, with early adoption permitted. We will not early adopt. We do not expect ASU 2015-11 to have a material impact to our consolidated financial statements when adopted on January 1, 2017. In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 was issued to simplify the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. This makes the presentation of debt issuance costs consistent with the presentation of debt discounts or premiums. Under prior U.S. GAAP, debt issuance costs were reported on the balance sheet as assets and amortized as interest expense. Under ASU 2015-03, debt issuance costs will continue to be amortized to interest expense using the effective interest method. In August 2015, the FASB issued ASU 2015-15, "Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements" to clarify the SEC staff’s position that it would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, which is our current practice. We adopted ASU 2015-03 on January 1, 2016 on a retrospective basis as a change in accounting policy. The Condensed Consolidated Balance Sheet as of December 31, 2015, was retrospectively adjusted by decreasing Other assets and Long-term debt, net of current maturities by $1.8 million, respectively. |
2. Acquisitions |
9 Months Ended |
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Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | ACQUISITIONS Propel Labs, Inc. In January 2016, we acquired a high performance analytical flow cytometer platform from Propel Labs (Propel) that will enable advanced and novice users to perform basic and multi-parameter cytometry for a wide range of applications and chemistries. This asset acquisition was accounted for as a business combination, as the new analytical flow cytometer platform represented an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return and therefore constitutes a business in accordance with GAAP. The amount of the acquisition-related cost was minimal as Bio-Rad primarily represented itself during the acquisition process. This business acquisition is included in our Life Science segment’s results of operations from the acquisition date. The fair value of the consideration as of the acquisition date was $38.8 million, which included $9.5 million paid in cash at the closing date and $29.3 million in contingent consideration potentially payable to Propel. The contingent consideration was based on a probability-weighted income approach related to the achievement of certain sales milestones, and was recognized at its estimated fair value of $29.3 million as of September 30, 2016 (see Note 3, "Fair Value Measurements"). The final fair values of the net assets acquired from Propel as of the acquisition date were determined to be $36.0 million of definite-lived intangible assets and $2.8 million of goodwill. We expect the goodwill recorded to be deductible for income tax purposes. The acquired analytical flow cytometer platform fits well into Bio-Rad’s existing Life Science segment product offerings and may offer researchers greater access to this technology. |
3. Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | 3.FAIR VALUE MEASUREMENTS We determine the fair value of an asset or liability based on the assumptions that market participants would use in pricing the asset or liability in an orderly transaction between market participants at the measurement date. The identification of market participant assumptions provides a basis for determining what inputs are to be used for pricing each asset or liability. A fair value hierarchy has been established which gives precedence to fair value measurements calculated using observable inputs over those using unobservable inputs. This hierarchy prioritizes the inputs into three broad levels as follows:
Financial assets and liabilities carried at fair value and measured on a recurring basis as of September 30, 2016 are classified in the hierarchy as follows (in millions):
Financial assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2015 are classified in the hierarchy as follows (in millions):
In 2012, we recognized a contingent consideration liability for certain milestones of $44.6 million upon our acquisition of a new cell sorting system from Propel. Since 2012, we have paid $28.9 million upon reaching the milestones and have reduced the valuation of the milestones by $12.3 million to its estimated fair value of $3.4 million as of September 30, 2016. During the first quarter of 2016, we recognized a contingent consideration liability upon our acquisition of a new high performance analytical flow cytometer platform from Propel. At the acquisition date, the contingent consideration was based on a probability-weighted income approach related to the achievement of sales milestones, ranging from 39% to 20% for the calendar years 2017 through 2020. The sales milestones could potentially range from $0 to an unlimited amount through December 31, 2020. The contingent consideration was recognized at its estimated fair value of $29.3 million as of September 30, 2016. The following table provides a reconciliation of the Level 3 cell sorting system and analytical flow cytometer platform contingent consideration liabilities measured at estimated fair value based on original valuations and updated quarterly for the nine months ended September 30, 2016 (in millions):
The following table provides quantitative information about Level 3 inputs for fair value measurement of our cell sorting system and analytical flow cytometer platform contingent consideration liabilities as of September 30, 2016. Significant increases or decreases in these inputs in isolation could result in a significantly lower or higher fair value measurement.
In 2014, we recognized a contingent consideration liability upon our acquisition of GnuBIO. The contingent consideration for the milestones was valued at $10.7 million at the acquisition date based on assumptions regarding the probability of achieving the milestones, with such amounts discounted to present value. The Level 3 contingent consideration was revalued to a fair value of $10.0 million as of September 30, 2016 and December 31, 2015. To estimate the fair value of Level 2 debt securities as of September 30, 2016 and December 31, 2015, our primary pricing provider uses S&P Capital IQ as the primary pricing source. Our pricing process allows us to select a hierarchy of pricing sources for securities held. The chosen pricing hierarchy for our Level 2 securities, other than certificates of deposit and commercial paper, is S&P Capital IQ as the primary pricing source and then our custodian as the secondary pricing source. If S&P Capital IQ does not price a Level 2 security that we hold, then the pricing provider will utilize our custodian supplied pricing. For commercial paper as of September 30, 2016 and December 31, 2015, pricing is determined by a straight-line calculation, starting with the purchase price on the date of purchase and increasing to par at maturity. Interest bearing certificates of deposit and commercial paper are priced at par. Our pricing provider performs daily reasonableness testing of the S&P Capital IQ prices. Price changes of 5% or greater are investigated and resolved. In addition, we perform a quarterly testing of the S&P Capital IQ prices to custodian reported prices. Price differences outside a tolerable variance of approximately 1% are investigated and resolved. Available-for-sale investments consist of the following (in millions):
The unrealized gains of our long-term marketable equity securities are primarily due to our investment in Sartorius AG preferred shares. The following is a summary of investments with gross unrealized losses and the associated fair value (in millions):
The unrealized losses on these securities are due to a number of factors, including changes in interest rates, changes in economic conditions and changes in market outlook for various industries, among others. Because Bio-Rad has the ability and intent to hold these investments with unrealized losses until a recovery of fair value, or for a reasonable period of time sufficient for a forecasted recovery of fair value, which may be maturity, we do not consider these investments to be other-than-temporarily impaired at September 30, 2016 or at December 31, 2015. As part of distributing our products, we regularly enter into intercompany transactions. We enter into forward foreign exchange contracts to manage foreign exchange risk of future movements in foreign exchange rates that affect foreign currency denominated intercompany receivables and payables. We do not use derivative financial instruments for speculative or trading purposes. We do not seek hedge accounting treatment for these contracts. As a result, these contracts, generally with maturity dates of 90 days or less and denominated primarily in currencies of industrial countries, are recorded at their fair value at each balance sheet date. The notional principal amounts provide one measure of the transaction volume outstanding as of September 30, 2016 and do not represent the amount of Bio-Rad's exposure to loss. The estimated fair value of these contracts was derived using the spot rates from Reuters on the last business day of the quarter and the points provided by counterparties. The resulting gains or losses offset exchange gains or losses on the related receivables and payables, both of which are included in Foreign currency exchange losses, net in the Condensed Consolidated Statements of Income. The following is a summary of our forward foreign exchange contracts (in millions):
The following is a summary of the amortized cost and estimated fair value of our debt securities at September 30, 2016 by contractual maturity date (in millions):
The estimated fair value of financial instruments that are not recognized at fair value in the Condensed Consolidated Balance Sheets and are included in Other investments, are presented in the table below. Fair value has been determined using significant observable inputs, including quoted prices in active markets for similar instruments. Estimates are not necessarily indicative of the amounts that could be realized in a current market exchange as considerable judgment is required in interpreting market data used to develop estimates of fair value. The use of different market assumptions or estimation techniques could have a material effect on the estimated fair value. Other investments include financial instruments, the majority of which have fair value based on similar, actively traded stock adjusted for various discounts, including a discount for marketability. Long-term debt, excluding leases and current maturities, has an estimated fair value based on quoted market prices for the same or similar issues. The estimated fair value of the financial instruments discussed above and the level of the fair value hierarchy within which the fair value measurement is categorized are as follows (in millions):
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4. Intangible Assets, Goodwill and Other |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure | GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS Changes to goodwill by segment were as follows (in millions):
In conjunction with the purchase of certain assets from Propel in January 2016 (see Note 2, "Acquisitions"), we recorded $2.8 million of goodwill and $36.0 million of definite-lived intangible assets: $33.0 million of developed product technology and $3.0 million of covenants not to compete. Information regarding our identifiable purchased intangible assets with definite and indefinite lives is as follows (in millions):
Amortization expense related to purchased intangible assets is as follows (in millions):
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5. Product Warranty Liability |
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Product Warranty Liability | 5.PRODUCT WARRANTY LIABILITY We warrant certain equipment against defects in design, materials and workmanship, generally for a period of one year. Upon delivery of that equipment, we establish, as part of Cost of goods sold, a provision for the expected costs of such warranty based on historical experience, specific warranty terms and customer feedback. A review is performed on a quarterly basis to assess the adequacy of our warranty accrual. Components of the warranty accrual, included in Other current liabilities and Other long-term liabilities in the Condensed Consolidated Balance Sheets, were as follows (in millions):
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6. Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | 6. LONG-TERM DEBT The principal components of long-term debt are as follows (in millions):
Senior Notes due 2020 In December 2010, Bio-Rad sold $425.0 million principal amount of Senior Notes due 2020 (4.875% Notes). The sale yielded net cash proceeds of $422.6 million at an effective rate of 4.946%. The 4.875% Notes pay a fixed rate of interest of 4.875% per year. We have the option to redeem any or all of the 4.875% Notes at any time at a redemption price of 100% of the principal amount (plus a specified make-whole premium as defined in the indenture governing the 4.875% Notes) and accrued and unpaid interest thereon to the redemption date. Our obligations under the 4.875% Notes are not secured and rank equal in right of payment with all of our existing and future unsubordinated indebtedness. Certain covenants apply at each year end to the 4.875% Notes including limitations on the following: liens, sale and leaseback transactions, mergers, consolidations or sales of assets and other covenants. There are no restrictive covenants relating to total indebtedness, interest coverage, stock repurchases, recapitalizations, dividends and distributions to shareholders or current ratios. Credit Agreement In June 2014, Bio-Rad entered into a $200.0 million unsecured Credit Agreement, replacing the Amended and Restated Credit Agreement of June 2010, which expired on June 21, 2014. Borrowings under the Credit Agreement are on a revolving basis and can be used to make permitted acquisitions, for working capital and for other general corporate purposes. We had no outstanding borrowings under the Credit Agreement as of September 30, 2016 or December 31, 2015, however $0.8 million was utilized for domestic standby letters of credit that reduced our borrowing availability. The Credit Agreement matures in June 2019. If we had borrowed against our Credit Agreement, the borrowing rate would have been 2.10% at September 30, 2016. |
7. Accumulated Other Comprehensive Income 7. Accumulated Other Comprehensive Income (Notes) |
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Stockholders' Equity Note Disclosure [Text Block] | 7. ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated other comprehensive income included in our Condensed Consolidated Balance Sheets consists of the following components (in millions):
The amounts reclassified out of Accumulated other comprehensive income into the Condensed Consolidated Statements of Income, with presentation location, were as follows:
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8. Earnings Per Share |
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Earnings Per Share | 8. EARNINGS PER SHARE Basic earnings per share is computed by dividing net income attributable to Bio-Rad by the weighted average number of common shares outstanding for that period. Diluted earnings per share takes into account the effect of dilutive instruments, such as stock options and restricted stock, and uses the average share price for the period in determining the number of potential common shares that are to be added to the weighted average number of shares outstanding. Potential common shares are excluded from the diluted earnings per share calculation if the effect of including such securities would be anti-dilutive. The weighted average number of common shares outstanding used to calculate basic and diluted earnings per share, and the anti-dilutive shares that are excluded from the diluted earnings per share calculation are as follows (in thousands):
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9. Other Income and Expenses |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Other Expense Disclosure | 9. OTHER INCOME AND EXPENSE, NET Other (income) expense, net includes the following components (in millions):
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10. Income Taxes |
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Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. INCOME TAXES Our effective income tax rate was 19% and 32% for the three months ended September 30, 2016 and 2015, respectively. Our effective income tax rate was 30% and 31% for the first nine months of 2016 and 2015, respectively. The effective tax rate for the third quarter and the first nine months of 2016 was lower primarily due to adjustments related to U.S. foreign tax credits. The effective tax rate for the first nine months of 2016 and 2015 included a tax benefit from the release of U.S. tax liabilities as a result of lapses of statutes of limitations. Our foreign taxes result primarily from income earned in France and Switzerland. Many jurisdictions in which we operate including Switzerland, Russia, the U.K. and Singapore have statutory tax rates that are significantly lower than the U.S. statutory tax rate of 35%. Our effective tax rate may be impacted in the future, either favorably or unfavorably, by many factors including, but not limited to, changes to statutory tax rates, changes in tax laws or regulations, tax audits and settlements, and generation of tax credits. Our income tax returns are audited by U.S. federal, state and foreign tax authorities. We are currently under examination by many of these tax authorities. There are differing interpretations of tax laws and regulations, and as a result, significant disputes may arise with these tax authorities involving issues of the timing and amount of deductions and allocations of income among various tax jurisdictions. We evaluate our exposures associated with our tax filing positions on a quarterly basis. We record liabilities for unrecognized tax benefits related to uncertain tax positions. We do not believe any currently pending uncertain tax positions will have a material adverse effect on our condensed consolidated financial statements, although an adverse resolution of one or more of these uncertain tax positions in any period may have a material impact on the results of operations for that period. |
11. Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | SEGMENT INFORMATION Information regarding industry segments for the three months ended September 30, 2016 and 2015 is as follows (in millions):
Information regarding industry segments for the nine months ended September 30, 2016 and 2015 is as follows (in millions):
Segment results are presented in the same manner as we present our operations internally to make operating decisions and assess performance. Net corporate operating, interest and other expense for segment results consists of receipts and expenditures that are not the primary responsibility of segment operating management and therefore are not allocated to the segments for performance assessment by our chief operating decision maker. Interest expense is charged to segments based on the carrying amount of inventory and receivables employed by that segment. See Note 13 for a discussion of restructuring costs. The following reconciles total segment profit to consolidated income before taxes (in millions):
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12. Legal Proceedings |
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Sep. 30, 2016 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Legal Proceedings. | 12. LEGAL PROCEEDINGS On January 23, 2015, the City of Riviera Beach General Employees’ Retirement System filed a shareholder derivative lawsuit in the Superior Court of California, Contra Costa County, against three of our current directors and one former director. We are also named as a nominal defendant. In the complaint, the plaintiff alleges that our directors breached their fiduciary duty of loyalty by failing to ensure that we had sufficient internal controls and systems for compliance with the Foreign Corrupt Practices Act ("FCPA"); that we failed to provide adequate training on the FCPA; and that based on these actions, the directors have been unjustly enriched. Purportedly seeking relief on our behalf, the plaintiff seeks an award of restitution and unspecified damages, costs and expenses (including attorneys’ fees). On April 23, 2015, we and the individual defendants filed a demurrer requesting dismissal of the complaint in this case. The demurrer was heard on August 6, 2015, and the Court granted the demurrer for failure to make a demand on our Board of Directors on August 17, 2015, but provided leave to amend. On September 4, 2015, the plaintiff filed an amended complaint and simultaneously served a litigation demand letter on our Board of Directors ("Board") via its counsel in this action. The letter demands that we investigate and bring appropriate legal action against certain individuals, including the defendants in the City of Riviera Beach case and six current and former employees. The plaintiff also moved for a temporary stay in the proceedings, purportedly to enable the Board to respond to the demand. The Board formed a Demand Review Committee to respond to the demand. On February 24, 2016, the Demand Review Committee reported to the Board that it had concluded its investigation and unanimously determined that it is not in the best interests of the Company and its stockholders to pursue litigation against any individuals named in the City of Riviera Beach’s litigation demand letter. On October 6, 2015, we and the individual defendants filed a second demurrer, seeking to dismiss the case for failure to make a timely pre-suit demand. The case was stayed pending mediation. The caption is City of Riviera Beach General Employees’ Retirement System v. Schwartz et al., Case No. C-15-00140. The lawsuit and demand letter are referred to collectively as the “California Action”. On August 13, 2015 and August 18, 2015, respectively, each of International Brotherhood of Electrical Workers Local 38 Pension Fund and Wayne County Employees’ Retirement System filed a stockholder derivative complaint in the Delaware Court of Chancery against four of our current directors and one former director. We are named as a nominal defendant in the complaints. The complaints allege that the defendants failed to cause us to develop internal controls sufficient to ensure our compliance with the FCPA. The plaintiffs assert claims for breach of fiduciary duty and unjust enrichment and request an award of the damages we sustained as a result of the alleged violations, among other relief. The two lawsuits were consolidated on August 27, 2015. The case was stayed pending mediation. The caption of the consolidated case is In re Bio-Rad Laboratories, Inc. Stockholder Litigation, Consol. C.A. No. 11387-VCN (Del. Ch.). The cases filed in the Delaware Court of Chancery, together with the California Action, are referred to collectively as the “Derivative Actions”. On July 28, 2016, we signed a Term Sheet that summarizes the material terms of a proposed settlement of the Derivative Actions. The proposed settlement includes the dismissal with prejudice of all claims asserted in the Derivative Actions, an agreed-upon set of revised corporate procedures, and no monetary payment other than an award of attorneys’ fees and costs to the plaintiffs’ counsel. The proposed settlement is subject to review and approval by the Superior Court of California for Contra Costa County. We and the other defendants do not admit any liability or fault in connection with the proposed settlement. On May 27, 2015, our former general counsel, Sanford S. Wadler, filed a lawsuit in the U.S. District Court, Northern District of California, against us and four of our current directors and one former director. The plaintiff’s suit alleges whistleblower retaliation in violation of the Sarbanes-Oxley Act and the Dodd-Frank Act for raising FCPA-related concerns. Mr. Wadler also alleges wrongful termination in violation of public policy, non-payment of wages and waiting time penalties in violation of the California Labor Code. The plaintiff seeks back pay, compensatory damages for lost wages, earnings, retirement benefits and other employee benefits, compensation for mental pain and anguish and emotional distress, waiting time penalties, punitive damages, litigation costs (including attorneys’ fees) and reinstatement of employment. We believe this lawsuit is without merit, and on July 28, 2015 we filed a motion to dismiss the plaintiff's complaint and specifically requested dismissal of the claims alleged against us under the Dodd-Frank Act and California Labor Code 1102.5 and the claims against the directors under the Sarbanes-Oxley Act and the Dodd-Frank Act. On October 23, 2015, the District Court granted our motion with respect to the alleged violations of the Sarbanes-Oxley Act against all the director defendants except Norman Schwartz with prejudice. The Court denied our motion to dismiss the claims under the Dodd-Frank Act as against both us and the director defendants. Discovery is taking place. The parties engaged in mediation of the case on April 19, 2016 and on September 14, 2016. The mediations did not result in a settlement. The trial is scheduled to commence on January 9, 2017. |
13. Restructuring Costs (Notes) |
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Restructuring Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities Disclosure [Text Block] | 13. RESTRUCTURING COSTS For the three and nine months ended September 30, 2016, we recorded $(0.2) million and $11.5 million, respectively, related to restructuring actions that include the elimination or relocation of various positions. These actions are generally intended to streamline and focus our efforts and more properly align our cost structure with projected future revenue streams. The following table summarizes the activity of our restructuring reserves for severance, including a minimal amount of $38.8 thousand for the impact of foreign currency (in millions):
In May, 2016, management announced that it will take certain actions in our Europe geographic region designed to better align expenses to our revenue and gross margin profile and position us for improved operating performance. These actions, aligned with creation and evolution of our organization structure and coordinated with the implementation of our global single instance ERP platform, are expected to be incurred through 2019. As a result, we recorded approximately $(0.2) million and $11.5 million in restructuring charges related to severance and other employee benefits for the three and nine months ended September 30, 2016, respectively, of which $8.8 million is anticipated to be paid through 2019. The liability of $8.8 million as of September 30, 2016 encompassed a short-term liability of $5.8 million and a long-term liability of $3.0 million. The amounts recorded were reflected in Cost of goods sold of $0.2 million and $2.0 million, and in Selling, general and administrative expense of $(0.4) million and $9.5 million in the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2016, respectively. The amounts adjusted were primarily due to employees finding other positions within Bio-Rad or leaving prematurely.
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1. Basis of Presentation and Use of Estimates Organization, Consolidation and Presentation of Financial Statements (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | In October 2016, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. (“ASU”) 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory." ASU 2016-16 requires immediate recognition of income tax consequences of intercompany asset transfers, other than inventory transfers. Existing GAAP prohibits recognition of income tax consequences of intercompany asset transfers whereby the seller defers any net tax effect and the buyer is prohibited from recognizing a deferred tax asset on the difference between the newly created tax basis of the asset in its tax jurisdiction and its financial statement carrying amount as reported in the consolidated financial statements. ASU 2016-16 specifically excludes from its scope intercompany inventory transfers whereby the recognition of tax consequences will take place when the inventory is sold to third parties. ASU 2016-16 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements have not been issued or made available for issuance. We are currently evaluating the effect ASU 2016-16 will have on our consolidated financial statements. In August 2016, FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the effect ASU 2016-15 will have on our consolidated statements of cash flows. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." ASU 2016-13 will replace the current incurred loss approach with an expected loss model for instruments measured at amortized cost and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount under the current other-than-temporary impairment model. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018, and interim periods therein. We are currently evaluating the effect ASU 2016-13 will have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 will require all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It also will allow an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and early adoption is permitted. We are currently evaluating the effect ASU 2016-09 will have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, "Simplifying the Transition to the Equity Method of Accounting," which eliminates the requirement to retrospectively apply the equity method in previous periods when an investor initially obtains significant influence over an investee. Under current guidance, an investor that doesn’t consolidate an investment and initially accounts for it under a method other than the equity method is required to retrospectively apply the equity method in prior periods in which it held the investment when it subsequently obtained significant influence. ASU 2016-07 will be applied on a prospective basis and is effective for all entities for fiscal years beginning after December 15, 2016, and interim periods within those years and early adoption is permitted. We do not plan to early adopt ASU 2016-07 and currently do not expect it to affect our consolidated financial statements when adopted on January 1, 2017. In February 2016, the FASB issued ASU 2016-02, "Leases," which will require, among other items, lessees to recognize most leases as assets and liabilities on the balance sheet. Qualitative and quantitative disclosures will be enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. We do not plan to early adopt. ASU 2016-02 will be adopted on a modified retrospective basis, with elective reliefs, which requires application of ASU 2016-02 for all periods presented. We are currently evaluating the effect ASU 2016-02 will have on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities." Amendments under ASU 2016-01, among other items, require that all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. There will no longer be an available-for-sale classification, for which changes in fair value are reported in other comprehensive income, for equity securities with readily determinable fair values. For equity investments without readily determinable fair values, the cost method is also eliminated. However, entities will be able to elect to record equity investments without readily determinable fair values at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. Changes in the basis of these equity investments will be reported in current earnings. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We are currently evaluating the effect ASU 2016-01 will have, if any, on our consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments," which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Under ASU 2015-16, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The measurement period cannot exceed one year from the date of the acquisition. ASU 2015-16 was effective on January 1, 2016, and we adopted it at the same time as a change in accounting policy, which had no impact on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory.” Under current guidance, an entity subsequently measures inventory at the lower of cost or market, with market defined as replacement cost, net realizable value (NRV), or NRV less a normal profit margin. An entity uses current replacement cost provided that it is not above NRV (i.e., the ceiling) or below NRV less an “approximately normal profit margin” (i.e., the floor). ASU 2015-11 eliminates this analysis and requires entities to measure most inventory “at the lower of cost and NRV.” ASU 2015-11 is effective prospectively for annual periods beginning after December 15, 2016, and interim periods therein, with early adoption permitted. We will not early adopt. We do not expect ASU 2015-11 to have a material impact to our consolidated financial statements when adopted on January 1, 2017. In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 was issued to simplify the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding debt liability. This makes the presentation of debt issuance costs consistent with the presentation of debt discounts or premiums. Under prior U.S. GAAP, debt issuance costs were reported on the balance sheet as assets and amortized as interest expense. Under ASU 2015-03, debt issuance costs will continue to be amortized to interest expense using the effective interest method. In August 2015, the FASB issued ASU 2015-15, "Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements" to clarify the SEC staff’s position that it would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, which is our current practice. We adopted ASU 2015-03 on January 1, 2016 on a retrospective basis as a change in accounting policy. The Condensed Consolidated Balance Sheet as of December 31, 2015, was retrospectively adjusted by decreasing Other assets and Long-term debt, net of current maturities by $1.8 million, respectively. |
3. Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial assets and liabilities carried at fair value on a recurring basis | Financial assets and liabilities carried at fair value and measured on a recurring basis as of September 30, 2016 are classified in the hierarchy as follows (in millions):
Financial assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2015 are classified in the hierarchy as follows (in millions):
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table provides a reconciliation of the Level 3 cell sorting system and analytical flow cytometer platform contingent consideration liabilities measured at estimated fair value based on original valuations and updated quarterly for the nine months ended September 30, 2016 (in millions):
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Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block] | The following table provides quantitative information about Level 3 inputs for fair value measurement of our cell sorting system and analytical flow cytometer platform contingent consideration liabilities as of September 30, 2016. Significant increases or decreases in these inputs in isolation could result in a significantly lower or higher fair value measurement.
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Schedule of available-for-sale investments | Available-for-sale investments consist of the following (in millions):
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Summary of fair value of gross unrealized losses for investments with unrealized losses | The following is a summary of investments with gross unrealized losses and the associated fair value (in millions):
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Discussion of current derivative risk management | The following is a summary of our forward foreign exchange contracts (in millions):
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Summary of amortized cost and estimated fair value of debt securities by contractual maturity date | The following is a summary of the amortized cost and estimated fair value of our debt securities at September 30, 2016 by contractual maturity date (in millions):
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Estimated fair value of financial instruments | The estimated fair value of the financial instruments discussed above and the level of the fair value hierarchy within which the fair value measurement is categorized are as follows (in millions):
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4. Intangible Assets, Goodwill and Other (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes to goodwill by segment | Changes to goodwill by segment were as follows (in millions):
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Schedule of identifiable purchased intangible assets with definite lives | Information regarding our identifiable purchased intangible assets with definite and indefinite lives is as follows (in millions):
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Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Amortization expense related to purchased intangible assets is as follows (in millions):
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5. Product Warranty Liability (Tables) |
9 Months Ended | ||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||
Components of warranty accrual | Components of the warranty accrual, included in Other current liabilities and Other long-term liabilities in the Condensed Consolidated Balance Sheets, were as follows (in millions):
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6. Long-Term Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | The principal components of long-term debt are as follows (in millions):
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7. Accumulated Other Comprehensive Income 7. Accumulated Other Comprehensive Income (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive income included in our Condensed Consolidated Balance Sheets consists of the following components (in millions):
|
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Reclassification Out of Accumulated Other Comprehensive Income [Table Text Block] | The amounts reclassified out of Accumulated other comprehensive income into the Condensed Consolidated Statements of Income, with presentation location, were as follows:
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8. Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of weighted-average common shares outstanding used to calculate basic and diluted earnings per shares and the anti-dilutive shares | The weighted average number of common shares outstanding used to calculate basic and diluted earnings per share, and the anti-dilutive shares that are excluded from the diluted earnings per share calculation are as follows (in thousands):
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9. Other Income and Expenses (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other income (expense), net | Other (income) expense, net includes the following components (in millions):
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11. Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information regarding industry segments | Information regarding industry segments for the three months ended September 30, 2016 and 2015 is as follows (in millions):
Information regarding industry segments for the nine months ended September 30, 2016 and 2015 is as follows (in millions):
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Reconciliation of segment profit to consolidated income before taxes | The following reconciles total segment profit to consolidated income before taxes (in millions):
|
13. Restructuring Costs (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs [Table Text Block] | The following table summarizes the activity of our restructuring reserves for severance, including a minimal amount of $38.8 thousand for the impact of foreign currency (in millions):
|
1. Basis of Presentation and Use of Estimates Organization, Consolidation and Presentation of Financial Statements (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Long-term debt, net of current maturities | $ 434,137 | $ 433,883 |
Other assets | $ 63,821 | 64,618 |
Adjustments for New Accounting Pronouncement [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Long-term debt, net of current maturities | 1,800 | |
Other assets | $ 1,800 |
2. Acquisitions (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2016 |
Sep. 30, 2016 |
Jan. 06, 2016 |
Dec. 31, 2015 |
Apr. 10, 2014 |
|
Business Acquisition [Line Items] | |||||
Goodwill | $ 506,573 | $ 495,948 | |||
Goodwill, Acquired During Period | 2,800 | ||||
Analytical Flow Cytometer Platform [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Consideration Transferred | $ 38,800 | ||||
Payments to Acquire Businesses, Net of Cash Acquired | 9,500 | ||||
Business Combination, Contingent Consideration, Liability | 29,300 | $ 29,300 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 36,000 | ||||
Goodwill, Acquired During Period | $ 2,800 | ||||
GnuBIO [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Contingent Consideration, Liability | $ 10,000 | $ 10,700 |
3. Fair Value Measurements 3. Contingent Consideration (Details) - USD ($) $ in Millions |
9 Months Ended | 48 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2016 |
Jan. 06, 2016 |
Dec. 31, 2015 |
Apr. 10, 2014 |
Sep. 30, 2012 |
|||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $ 32.7 | $ 32.7 | $ 9.1 | |||||
CellSorter [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Contingent consideration milestone payments | (3.5) | (28.9) | ||||||
(Decrease) increase in fair value of contingent consideration included in SGA | (2.2) | (12.3) | ||||||
Business Combination, Contingent Consideration, Liability | 3.4 | 3.4 | $ 44.6 | |||||
Analytical Flow Cytometer Platform [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Business Combination, Contingent Consideration, Liability | 29.3 | 29.3 | $ 29.3 | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | 29.3 | |||||||
GnuBIO [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Business Combination, Contingent Consideration, Liability | $ 10.0 | $ 10.0 | $ 10.7 | |||||
Sales milestone percentage of annual invoices [Member] | Analytical Flow Cytometer Platform [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Business Acquisition, Contingent Consideration, Potential Percentage Payout | 39.00% | 39.00% | ||||||
Credit Adjusted Discount Rates Lower [Member] | CellSorter [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Fair Value Inputs, Entity Credit Risk | 0.50% | |||||||
Market Price of Risk [Member] | CellSorter [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Fair Value Inputs, Entity Credit Risk | 1.30% | |||||||
Market Price of Risk [Member] | Analytical Flow Cytometer Platform [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Fair Value Inputs, Entity Credit Risk | 6.00% | |||||||
Projected Volatility of Growth Rate [Member] | CellSorter [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Fair Value Inputs, Entity Credit Risk | 14.00% | |||||||
Projected Volatility of Growth Rate [Member] | Analytical Flow Cytometer Platform [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Fair Value Inputs, Entity Credit Risk | 10.00% | |||||||
Sales milestone percentage of annual invoices low [Member] | Analytical Flow Cytometer Platform [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Business Acquisition, Contingent Consideration, Potential Percentage Payout | 20.00% | 20.00% | ||||||
Sales milestone minimum amount [Member] | Analytical Flow Cytometer Platform [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 0.0 | $ 0.0 | ||||||
Fair Value, Measurements, Recurring [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Business Combination, Contingent Consideration, Liability | [1] | 42.7 | 42.7 | 19.1 | ||||
Other Noncurrent Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Business Combination, Contingent Consideration, Liability | 29.3 | 29.3 | 5.6 | |||||
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Business Combination, Contingent Consideration, Liability | $ 13.4 | $ 13.4 | $ 13.5 | |||||
|
3. Foreign Exchange Forward Contracts (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
| |
Forward foreign exchange contract to sell foreign currency [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional value | $ 19.3 |
Gain (Loss) on Foreign Currency Derivative Instruments not Designated as Hedging Instruments | 0.0 |
Forward foreign exchange contract to purchase foreign currency [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional value | 344.9 |
Gain (Loss) on Foreign Currency Derivative Instruments not Designated as Hedging Instruments | $ (0.3) |
3. Available-for-Sale Investments (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | $ 437.6 | $ 382.1 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 760.5 | 577.1 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (0.6) | (1.6) | |||
Estimated Fair Value | [1] | 1,197.5 | 957.6 | ||
Corporate Debt Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Estimated Fair Value | [1] | 185.6 | 156.9 | ||
Brokered certificates of deposit [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Estimated Fair Value | [1] | 3.1 | |||
Municipal obligations [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Estimated Fair Value | [1] | 14.8 | 6.4 | ||
Asset-backed Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Estimated Fair Value | [1] | 67.5 | 54.8 | ||
Marketable Equity Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Estimated Fair Value | [1] | 844.5 | 660.1 | ||
US Government Sponsored Agencies [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Estimated Fair Value | [1] | 76.8 | 74.8 | ||
Foreign Government Obligations [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Estimated Fair Value | [1] | 5.2 | 4.6 | ||
Other Long-term Investments [Member] | Asset-backed Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 0.3 | 0.3 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.0 | 0.0 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0.0 | (0.1) | |||
Estimated Fair Value | 0.3 | 0.2 | |||
Other Long-term Investments [Member] | Marketable Equity Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 54.5 | 54.5 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 754.5 | 574.2 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0.0 | 0.0 | |||
Estimated Fair Value | 809.0 | 628.7 | |||
Other Long-term Investments [Member] | Available-for-sale Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 54.8 | 54.8 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 754.5 | 574.2 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0.0 | (0.1) | |||
Estimated Fair Value | 809.3 | 628.9 | |||
Short-term Investments [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Estimated Fair Value | 388.2 | 328.7 | |||
Short-term Investments [Member] | Corporate Debt Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 184.7 | 157.2 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1.0 | 0.1 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (0.1) | (0.4) | |||
Estimated Fair Value | 185.6 | 156.9 | |||
Short-term Investments [Member] | Brokered certificates of deposit [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 3.1 | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.0 | ||||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0.0 | ||||
Estimated Fair Value | 3.1 | ||||
Short-term Investments [Member] | Municipal obligations [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 14.7 | 6.4 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.1 | 0.0 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0.0 | 0.0 | |||
Estimated Fair Value | 14.8 | 6.4 | |||
Short-term Investments [Member] | Asset-backed Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 67.1 | 54.8 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.2 | 0.0 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (0.1) | (0.2) | |||
Estimated Fair Value | 67.2 | 54.6 | |||
Short-term Investments [Member] | Marketable Equity Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 31.8 | 29.4 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 4.0 | 2.7 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (0.3) | (0.7) | |||
Estimated Fair Value | 35.5 | 31.4 | |||
Short-term Investments [Member] | Available-for-sale Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 382.8 | 327.3 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 6.0 | 2.9 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (0.6) | (1.5) | |||
Estimated Fair Value | 388.2 | 328.7 | |||
Short-term Investments [Member] | US Government Sponsored Agencies [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 76.2 | 74.9 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.7 | 0.1 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (0.1) | (0.2) | |||
Estimated Fair Value | 76.8 | 74.8 | |||
Short-term Investments [Member] | Foreign Government Obligations [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 5.2 | 4.6 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.0 | 0.0 | |||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0.0 | 0.0 | |||
Estimated Fair Value | $ 5.2 | $ 4.6 | |||
|
3. Amortized Cost and Fair Value of Debt Securities (Details) $ in Millions |
Sep. 30, 2016
USD ($)
|
---|---|
Fair Value Disclosures [Abstract] | |
Mature in less than one year | $ 142.4 |
Mature in one to five years | 152.4 |
Mature in more than five years | 56.5 |
Total Amortized Cost | 351.3 |
Mature in less than one year | 142.5 |
Mature in one to five years | 152.9 |
Mature in more than five years | 57.6 |
Estimated Fair Value | $ 353.0 |
3. Fair Value and Gross Unrealized Losses with Unrealized Losses (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Price Change Debt Security | 5.00% | |
Tolerable variance Level 2 debt security pricing | 1.00% | |
Fair Value of Investments with Gross Unrealized Losses in loss position 12 months or more | $ 13.2 | $ 10.4 |
Cost Method Investment, Percentage Owned | 35.00% | |
Fair Value of Investments with Gross Unrealized Losses in loss position less than 12 months | $ 66.7 | 204.0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0.3 | 0.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 0.3 | $ 1.2 |
3. Fair Value Financial Instruments (Details) - USD ($) $ in Millions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other Investments | $ 88.5 | $ 86.5 |
Total long-term debt, excluding capital leases and current maturities | 422.3 | 421.9 |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other Investments | 1,084.0 | 843.2 |
Total long-term debt, excluding capital leases and current maturities | $ 465.1 | $ 454.3 |
4. Intangible Assets, Goodwill and Other (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Goodwill [Line Items] | ||
Goodwill | $ 534,800 | $ 524,100 |
Accumulated impairment loss | (28,200) | (28,200) |
Goodwill, net | 506,573 | 495,948 |
Goodwill, Acquired During Period | 2,800 | |
Currency fluctuations | 7,900 | |
Life Science [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 210,400 | 207,200 |
Accumulated impairment loss | (27,200) | (27,200) |
Goodwill, net | 183,200 | 180,000 |
Goodwill, Acquired During Period | 2,800 | |
Currency fluctuations | 400 | |
Clinical Diagnostics [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 324,400 | 316,900 |
Accumulated impairment loss | (1,000) | (1,000) |
Goodwill, net | 323,400 | $ 315,900 |
Goodwill, Acquired During Period | 0 | |
Currency fluctuations | $ 7,500 |
4. Intangible Assets, Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2016 |
Mar. 31, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Purchase Price | $ 457.8 | $ 457.8 | $ 417.5 | |||
Accumulated Amortization | (283.3) | (283.3) | (249.9) | |||
Net Carrying Amount | 174.5 | 174.5 | 167.6 | |||
Amortization [Abstract] | ||||||
Amortization expense | 9.5 | $ 9.2 | 28.5 | $ 27.7 | ||
Intangible Assets, Gross (Excluding Goodwill) | 504.2 | 504.2 | 463.9 | |||
Customer Relationships [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Purchase Price | 88.0 | 88.0 | 84.7 | |||
Accumulated Amortization | (53.4) | (53.4) | (46.8) | |||
Net Carrying Amount | 34.6 | 34.6 | 37.9 | |||
Know how [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Purchase Price | 186.8 | 186.8 | 184.0 | |||
Accumulated Amortization | (138.7) | (138.7) | (121.6) | |||
Net Carrying Amount | 48.1 | 48.1 | 62.4 | |||
Developed Technology Rights [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Purchase Price | 131.9 | 131.9 | 101.3 | |||
Accumulated Amortization | (55.9) | (55.9) | (48.9) | |||
Net Carrying Amount | 76.0 | 76.0 | 52.4 | |||
Licensing Agreements [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Purchase Price | 39.5 | 39.5 | 39.2 | |||
Accumulated Amortization | (30.3) | (30.3) | (28.5) | |||
Net Carrying Amount | 9.2 | 9.2 | 10.7 | |||
Trade Names [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Purchase Price | 3.7 | 3.7 | 3.5 | |||
Accumulated Amortization | (2.7) | (2.7) | (2.4) | |||
Net Carrying Amount | 1.0 | 1.0 | 1.1 | |||
Noncompete Agreements [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Purchase Price | 7.9 | 7.9 | 4.8 | |||
Accumulated Amortization | (2.3) | (2.3) | (1.7) | |||
Net Carrying Amount | 5.6 | $ 5.6 | $ 3.1 | |||
Minimum [Member] | Customer Relationships [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Average Remaining Life (years) | 1 year | 2 years | ||||
Minimum [Member] | Know how [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Average Remaining Life (years) | 1 year | 1 year | ||||
Minimum [Member] | Developed Technology Rights [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Average Remaining Life (years) | 3 years | 4 years | ||||
Minimum [Member] | Licensing Agreements [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Average Remaining Life (years) | 2 years | 3 years | ||||
Minimum [Member] | Trade Names [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Average Remaining Life (years) | 5 years | 5 years | ||||
Minimum [Member] | Noncompete Agreements [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Average Remaining Life (years) | 2 years | 3 years | ||||
Minimum [Member] | Other Intangible Assets [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Average Remaining Life (years) | 0 years | 0 years | ||||
Maximum [Member] | Customer Relationships [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Average Remaining Life (years) | 9 years | 10 years | ||||
Maximum [Member] | Know how [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Average Remaining Life (years) | 9 years | 10 years | ||||
Maximum [Member] | Developed Technology Rights [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Average Remaining Life (years) | 13 years | 12 years | ||||
Maximum [Member] | Licensing Agreements [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Average Remaining Life (years) | 10 years | 10 years | ||||
Maximum [Member] | Trade Names [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Average Remaining Life (years) | 8 years | 9 years | ||||
Maximum [Member] | Noncompete Agreements [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Average Remaining Life (years) | 10 years | 7 years | ||||
Maximum [Member] | Other Intangible Assets [Member] | ||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||
Average Remaining Life (years) | 0 years | 0 years | ||||
In Process Research and Development [Member] | ||||||
Amortization [Abstract] | ||||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 46.4 | $ 46.4 | $ 46.4 | |||
Analytical Flow Cytometer Platform [Member] | Developed Technology Rights [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 33.0 | |||||
Analytical Flow Cytometer Platform [Member] | Noncompete Agreements [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived Intangible Assets Acquired | $ 3.0 |
5. Product Warranty Liability (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
| |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Accrual at beginning of period | $ 17.4 |
Provision for warranty | 22.0 |
Actual warranty costs | (21.8) |
Accrual at end of period | $ 17.6 |
6. Long-Term Debt (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
Dec. 31, 2010 |
|
Debt Instrument [Line Items] | |||
Debt and Capital Lease Obligations | $ 434,400 | $ 434,200 | |
Less Current Maturities | (300) | (300) | |
Long-term debt, net of current maturities | 434,137 | 433,883 | |
Unsecured Debt [Member] | Senior Notes 4.875% due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | 425,000 | 425,000 | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 2,700 | 3,100 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | ||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||
Long-term debt | $ 422,300 | 421,900 | $ 422,600 |
Debt Instrument, Interest Rate, Effective Percentage | 4.946% | ||
Face amount of debt sold | $ 425,000 | ||
Capital Lease Obligations [Member] | Capital Leases and Other Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 12,100 | $ 12,300 | |
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | 200,000 | ||
Outstanding borrowings | $ 0 | ||
Line of Credit Facility, Interest Rate at Period End | 2.10% | ||
Standby Letters of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | $ 800 |
7. Accumulated Other Comprehensive Income 7. Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Selling, general and administrative expense | $ (201,452) | $ (187,445) | $ (596,704) | $ (568,845) | ||
Other (income) expense, net | (1,439) | (732) | (13,824) | (8,992) | ||
Accumulated other comprehensive income | 521,403 | 521,403 | $ 382,138 | |||
Total other comprehensive income (loss) net of tax | 61,842 | 47,333 | 139,265 | 160,435 | ||
Accumulated Translation Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income | 56,600 | 61,100 | 56,600 | 61,100 | 33,700 | $ 71,200 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 22,900 | (10,100) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | ||||
Other Comprehensive Income (Loss), Tax | 0 | 0 | ||||
Total other comprehensive income (loss) net of tax | 22,900 | (10,100) | ||||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income | (20,700) | (15,800) | (20,700) | (15,800) | (20,700) | (16,300) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (700) | 0 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 900 | 500 | ||||
Other Comprehensive Income (Loss), Tax | (200) | 0 | ||||
Total other comprehensive income (loss) net of tax | 0 | 500 | ||||
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Selling, general and administrative expense | (300) | (600) | (900) | (500) | ||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income | 485,500 | 334,000 | 485,500 | 334,000 | 369,100 | 164,000 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 184,800 | 269,400 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (600) | (400) | ||||
Other Comprehensive Income (Loss), Tax | (67,800) | (99,000) | ||||
Total other comprehensive income (loss) net of tax | 116,400 | 170,000 | ||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other (income) expense, net | (100) | (100) | (600) | (400) | ||
Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income | $ 521,400 | $ 379,300 | 521,400 | 379,300 | $ 382,100 | $ 218,900 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 207,000 | 259,300 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 300 | 100 | ||||
Other Comprehensive Income (Loss), Tax | (68,000) | (99,000) | ||||
Total other comprehensive income (loss) net of tax | $ 139,300 | $ 160,400 |
8. Earnings Per Share (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Basic weighted average shares outstanding | 29,444 | 29,195 | 29,402 | 29,141 |
Effect of potentially dilutive stock options and restricted stock awards | 227 | 244 | 190 | 231 |
Diluted weighted average common shares | 29,671 | 29,439 | 29,592 | 29,372 |
Anti-dilutive shares | 50 | 44 | 77 | 112 |
9. Other Income and Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Interest and investment income | $ (1,300) | $ (700) | $ (13,200) | $ (8,700) |
Net realized gain on investments | (100) | 0 | (600) | (300) |
Other (income) expense, net | $ (1,439) | $ (732) | $ (13,824) | $ (8,992) |
10. Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Effective tax rate | 19.00% | 32.00% | 30.00% | 31.00% |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 3.1 | $ 3.1 | ||
U.S. Federal [Member] | ||||
Statutory Rates | 35.00% | 35.00% | 35.00% | 35.00% |
11. Segment Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Segment Reporting Information [Line Items] | ||||
Net sales | $ 508,745 | $ 469,961 | $ 1,496,719 | $ 1,448,884 |
Income before income taxes | 22,688 | 25,415 | 69,747 | 91,649 |
Life Science [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 178,100 | 150,400 | 523,900 | 476,800 |
Income before income taxes | (4,400) | (12,300) | (12,900) | (20,400) |
Clinical Diagnostics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 327,100 | 316,200 | 962,500 | 961,900 |
Income before income taxes | 28,400 | 40,200 | 77,000 | 116,300 |
All Other Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 3,500 | 3,400 | 10,300 | 10,200 |
Income before income taxes | $ 300 | $ 400 | $ 500 | $ 200 |
11. Segment Profit Reconciliation (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before income taxes | $ 22,688 | $ 25,415 | $ 69,747 | $ 91,649 |
Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before income taxes | 24,300 | 28,300 | 64,600 | 96,100 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before income taxes | (1,800) | (1,400) | (5,100) | (4,600) |
Foreign Currency Gain (Loss) [Member] | Segment Reconciling Items [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before income taxes | (1,200) | (2,200) | (3,600) | (8,900) |
Other Nonoperating Income (Expense) [Member] | Segment Reconciling Items [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before income taxes | $ 1,400 | $ 700 | $ 13,800 | $ 9,000 |
13. Restructuring Costs (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Translation and Other Adjustment | $ 38,800 | ||
Restructuring Reserve | $ 8,800,000 | 8,800,000 | $ 0 |
Restructuring Reserve, Current | 5,800,000 | 5,800,000 | |
Restructuring Reserve, Noncurrent | 3,000,000.0 | 3,000,000.0 | |
Restructuring Charges | (200,000) | 11,500,000 | |
Restructuring Reserve, Accrual Adjustment | (200,000) | ||
Payments for Restructuring | (2,700,000) | ||
Cost of Goods, Total [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 200,000 | 2,000,000.0 | |
Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | (400,000) | 9,500,000 | |
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 11,700,000 | ||
Life Science [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 3,100,000 | 3,100,000 | 0 |
Restructuring Charges | 4,100,000 | ||
Restructuring Reserve, Accrual Adjustment | (100,000) | ||
Payments for Restructuring | (900,000) | ||
Clinical Diagnostics [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 5,700,000 | 5,700,000 | $ 0 |
Restructuring Charges | 7,600,000 | ||
Restructuring Reserve, Accrual Adjustment | (100,000) | ||
Payments for Restructuring | $ (1,800,000) |
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