(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) | |||||||||||||||||||
(Address of principal executive offices) | (Zip code) |
Title of each class | Trading Symbol | Name of exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Emerging growth company | ||||||||||||
Smaller reporting company |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net Sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of products sold | |||||||||||||||||||||||
Gross Profit | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Selling and general expenses | |||||||||||||||||||||||
Other (income) expense, net | ( | ||||||||||||||||||||||
Operating Income (Loss) | ( | ||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Income (Loss) Before Income Taxes | ( | ( | |||||||||||||||||||||
Income tax provision | ( | ( | ( | ( | |||||||||||||||||||
Income (Loss) from Continuing Operations | ( | ( | |||||||||||||||||||||
(Loss) Income from discontinued operations, net of tax | ( | ( | ( | ||||||||||||||||||||
Net Income (Loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Basic Earnings (Loss) Per Share | |||||||||||||||||||||||
Continuing operations | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Discontinued operations | ( | ( | ( | ||||||||||||||||||||
Basic Earnings (Loss) Per Share | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Diluted Earnings (Loss) Per Share | |||||||||||||||||||||||
Continuing operations | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Discontinued operations | ( | ( | ( | ||||||||||||||||||||
Diluted Earnings (Loss) Per Share | $ | $ | ( | $ | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net Income (Loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax | |||||||||||||||||||||||
Unrealized currency translation adjustments | ( | ( | |||||||||||||||||||||
Defined benefit plans | ( | ||||||||||||||||||||||
Cash flow hedges | ( | ||||||||||||||||||||||
Total Other Comprehensive Income (Loss), Net of Tax | ( | ( | |||||||||||||||||||||
Comprehensive Income (Loss) | $ | $ | ( | $ | ( | $ | ( |
September 30, 2024 | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowances | |||||||||||
Inventories | |||||||||||
Prepaid and other current assets | |||||||||||
Assets held for sale | |||||||||||
Total Current Assets | |||||||||||
Property, Plant and Equipment, net | |||||||||||
Operating Lease Right-of-Use Assets | |||||||||||
Goodwill | |||||||||||
Other Intangible Assets, net | |||||||||||
Deferred Tax Assets | |||||||||||
Other Assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current Liabilities | |||||||||||
Current portion of long-term debt | $ | $ | |||||||||
Current portion of operating lease liabilities | |||||||||||
Trade accounts payable | |||||||||||
Accrued expenses | |||||||||||
Liabilities held for sale | |||||||||||
Total Current Liabilities | |||||||||||
Long-Term Debt | |||||||||||
Operating Lease Liabilities | |||||||||||
Deferred Tax Liabilities | |||||||||||
Other Long-Term Liabilities | |||||||||||
Total Liabilities | |||||||||||
Commitments and Contingencies | |||||||||||
Stockholders’ Equity | |||||||||||
Preferred stock - $ | |||||||||||
Common stock - $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Treasury stock | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Stockholders’ Equity | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Common Stock | $ | $ | $ | $ | |||||||||||||||||||
Additional Paid-in Capital, beginning of period | |||||||||||||||||||||||
Exercise or redemption of share-based awards | |||||||||||||||||||||||
Stock-based compensation expense | |||||||||||||||||||||||
Additional Paid-in Capital, end of period | |||||||||||||||||||||||
Accumulated Deficit, beginning of period | ( | ( | ( | ( | |||||||||||||||||||
Net income (loss) | ( | ( | |||||||||||||||||||||
Accumulated Deficit, end of period | ( | ( | ( | ( | |||||||||||||||||||
Treasury Stock, beginning of period | ( | ( | ( | ( | |||||||||||||||||||
Purchases of treasury stock | ( | ( | ( | ( | |||||||||||||||||||
Treasury Stock, end of period | ( | ( | ( | ( | |||||||||||||||||||
Accumulated Other Comprehensive Loss, beginning of period | ( | ( | ( | ( | |||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||
Accumulated Other Comprehensive Loss, end of period | ( | ( | ( | ( | |||||||||||||||||||
Total Stockholders’ Equity, end of period | $ | $ | $ | $ |
Nine Months Ended September 30, | |||||||||||
2024 | 2023 | ||||||||||
Operating Activities | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation expense | |||||||||||
Goodwill impairment | |||||||||||
Net loss on asset dispositions and impairments | |||||||||||
Changes in operating assets and liabilities, net of acquisition: | |||||||||||
Accounts receivable | ( | ||||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses and other assets | |||||||||||
Accounts payable | ( | ( | |||||||||
Accrued expenses | ( | ( | |||||||||
Deferred income taxes and other | ( | ||||||||||
Cash Provided by Operating Activities | |||||||||||
Investing Activities | |||||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from RH Divestiture post-closing settlement | |||||||||||
Acquisition of assets and investments in businesses | ( | ||||||||||
Investment in Note Receivable | ( | ||||||||||
Cash Used in Investing Activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Secured debt repayments | ( | ( | |||||||||
Revolving credit facility proceeds | |||||||||||
Revolving credit facility repayments | ( | ( | |||||||||
Purchases of treasury stock | ( | ( | |||||||||
Proceeds from the exercise of stock options | |||||||||||
Payment of contingent consideration liabilities | ( | ||||||||||
Cash (Used in) Provided by Financing Activities | ( | ||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | ( | ||||||||||
Increase (Decrease) in Cash and Cash Equivalents | ( | ||||||||||
Cash and Cash Equivalents - Beginning of Period | |||||||||||
Cash and Cash Equivalents - End of Period | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net Sales | $ | $ | $ | $ | |||||||||||||||||||
Cost of products sold | |||||||||||||||||||||||
Gross Profit | ( | ( | |||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Selling and general expenses | |||||||||||||||||||||||
Pretax loss on classification as discontinued operations | |||||||||||||||||||||||
Other (income) expense, net | ( | ||||||||||||||||||||||
(Loss) Income from discontinued operations before income taxes | ( | ( | ( | ||||||||||||||||||||
Income tax benefit (provision) from discontinued operations | ( | ( | |||||||||||||||||||||
Net (Loss) Income from discontinued operations, net of tax | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
(Loss) Earnings Per Share | |||||||||||||||||||||||
Basic | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Diluted | $ | ( | $ | $ | ( | $ | ( |
September 30, 2024 | December 31, 2023 | ||||||||||
Assets held for sale - discontinued operations | |||||||||||
Inventories | $ | $ | |||||||||
Property, Plant and Equipment, net | |||||||||||
Operating Lease Right-of-Use Assets | |||||||||||
Total assets classified as held for sale | $ | $ | |||||||||
Liabilities held for sale - discontinued operations | |||||||||||
Current Portion of Operating Lease Liabilities | $ | $ | |||||||||
Accrued expenses | |||||||||||
Non-Current Operating Lease Liability | |||||||||||
Total liabilities held for sale - discontinued operations | $ | $ |
Nine Months Ended September 30, | |||||||||||
2024 | 2023 | ||||||||||
Operating Activities: | |||||||||||
Depreciation and amortization | $ | $ | |||||||||
Stock-based compensation expense | |||||||||||
Investing Activities: | |||||||||||
Capital expenditures |
As of September 30, 2024 | |||||
Beginning balance | $ | ||||
Restructuring and transformation costs, excluding non-cash charges | |||||
Payments and adjustments, net | ( | ||||
Ending balance | $ |
Current assets, net of cash acquired | $ | ||||
Current liabilities, excluding contingent consideration | ( | ||||
Contingent consideration | ( | ||||
Other noncurrent liabilities, net | ( | ||||
Deferred tax liabilities | ( | ||||
Identifiable intangible assets | |||||
Goodwill | |||||
Total | $ |
Identifiable Intangible Asset Amount | Weighted Average Useful Lives (Years) | |||||||
Trade names and trademarks | $ | |||||||
Customer relationships | ||||||||
Developed technology and other | ||||||||
Total | $ |
September 30, 2024 | December 31, 2023 | ||||||||||
Accounts receivable | $ | $ | |||||||||
Income tax receivable | |||||||||||
Allowances and doubtful accounts: | |||||||||||
Doubtful accounts | ( | ( | |||||||||
Sales discounts | ( | ( | |||||||||
Accounts receivable, net | $ | $ |
September 30, 2024 | December 31, 2023 | ||||||||||
Raw materials | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Supplies and other | |||||||||||
Total Inventory | $ | $ |
September 30, 2024 | December 31, 2023 | ||||||||||
Land | $ | $ | |||||||||
Buildings and leasehold improvements | |||||||||||
Machinery and equipment | |||||||||||
Construction in progress | |||||||||||
Less accumulated depreciation | ( | ( | |||||||||
Total | $ | $ |
Goodwill | |||||
Balance, December 31, 2023 | $ | ||||
Currency translation adjustment | ( | ||||
Balance, September 30, 2024 | $ |
September 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
Trademarks | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Patents and acquired technologies | ( | ( | |||||||||||||||||||||||||||||||||
Other | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | ( | $ |
Amount | ||||||||
Remainder of 2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total | $ |
September 30, 2024 | December 31, 2023 | ||||||||||
Accrued rebates and customer incentives | $ | $ | |||||||||
Accrued salaries and wages | |||||||||||
Accrued taxes and other | |||||||||||
Other | |||||||||||
Total | $ | $ |
September 30, 2024 | December 31, 2023 | ||||||||||
Accrued compensation and benefits | $ | $ | |||||||||
Other | |||||||||||
Total | $ | $ |
September 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||
Fair Value Hierarchy Level | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | $ | $ | $ | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Revolving Credit Facility | 2 | $ | $ | $ | $ | ||||||||||||||||||||||||
Term Loan Facility | 2 | ||||||||||||||||||||||||||||
Contingent consideration related to acquisition | 3 |
Weighted-Average Interest Rate | Maturity | September 30, 2024 | December 31, 2023 | ||||||||||||||||||||
Revolving Credit Facility | % | 2027 | $ | $ | |||||||||||||||||||
Term Loan Facility | % | 2027 | |||||||||||||||||||||
Unamortized debt issuance costs | ( | ( | |||||||||||||||||||||
Current portion of long-term debt | ( | ( | |||||||||||||||||||||
Total Long-Term Debt, net | $ | $ |
Amount | ||||||||
Remainder of 2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Total | $ |
Unrealized Currency Translation | Cash Flow Hedges | Defined Benefit Plans | Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Balance, December 31, 2023 | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Other comprehensive loss | ( | ( | ( | ( | |||||||||||||||||||
Balance, September 30, 2024 | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Unrealized currency translation | $ | $ | ( | $ | ( | $ | |||||||||||||||||
Defined benefit pension plans | ( | ||||||||||||||||||||||
Defined benefit pension plans, net of tax | ( | ||||||||||||||||||||||
Cash flow hedges | ( | ||||||||||||||||||||||
Tax effect | ( | ( | |||||||||||||||||||||
Cash flow hedges, net of tax | ( | ||||||||||||||||||||||
Change in AOCI | $ | $ | ( | $ | ( | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Stock options | $ | $ | $ | $ | |||||||||||||||||||
Time-based restricted share units | |||||||||||||||||||||||
Performance-based restricted share units | ( | ||||||||||||||||||||||
Employee stock purchase plan | |||||||||||||||||||||||
Total stock-based compensation | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net income (loss) from continuing operations | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Net (loss) income from discontinued operations | ( | ( | ( | ||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Weighted Average Shares Outstanding: | |||||||||||||||||||||||
Basic weighted average shares outstanding | |||||||||||||||||||||||
Dilutive effect of stock options and restricted share unit awards | |||||||||||||||||||||||
Diluted weighted average shares outstanding | |||||||||||||||||||||||
Earnings (Loss) Per Share | |||||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Continuing Operations | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Discontinued Operations | ( | ( | ( | ||||||||||||||||||||
Basic Earnings (Loss) Per Share | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Diluted: | |||||||||||||||||||||||
Continuing Operations | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Discontinued Operations | ( | ( | ( | ||||||||||||||||||||
Diluted Earnings (Loss) Per Share | $ | $ | ( | $ | $ | ( |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Digestive Health | $ | $ | $ | $ | |||||||||||||||||||
Pain Management and Recovery: | |||||||||||||||||||||||
Surgical pain and recovery | |||||||||||||||||||||||
Interventional pain | |||||||||||||||||||||||
Total Pain Management and Recovery | |||||||||||||||||||||||
Total Net Sales | $ | $ | $ | $ |
September 30, 2024 | December 31, 2023 | ||||||||||
Accrued rebates | $ | $ | |||||||||
Accrued customer incentives | |||||||||||
Accrued rebates and customer incentives | |||||||||||
Accrued sales returns(a) | |||||||||||
Total estimated liabilities | $ | $ |
Shares Repurchased | Aggregate Purchase Price (in millions) | Average Price per Share | Amount Remaining in Program for Purchase (in millions) | |||||||||||||||||||||||||||||
# of Shares | Program to Date | |||||||||||||||||||||||||||||||
First quarter of 2024 | $ | $ | $ | |||||||||||||||||||||||||||||
Second quarter of 2024 | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||||||||||||||
Digestive Health | $ | 98.2 | $ | 95.0 | 3.4 | % | $ | 290.6 | $ | 276.8 | 5.0 | % | |||||||||||||||||||||||
Pain Management and Recovery: | |||||||||||||||||||||||||||||||||||
Surgical pain and recovery | 30.3 | 34.1 | (11.1) | % | 93.8 | 103.6 | (9.5) | % | |||||||||||||||||||||||||||
Interventional pain | 41.9 | 42.2 | (0.7) | % | 123.8 | 119.6 | 3.5 | % | |||||||||||||||||||||||||||
Total Pain Management and Recovery | 72.2 | 76.3 | (5.4) | % | 217.6 | 223.2 | (2.5) | % | |||||||||||||||||||||||||||
Total Net Sales | $ | 170.4 | $ | 171.3 | (0.5) | % | $ | 508.2 | $ | 500.0 | 1.6 | % | |||||||||||||||||||||||
Total | Volume | Pricing/Mix | Currency | Other(a) | |||||||||||||||||||||||||||||||
Net sales - percentage change | QTD | (0.5) | % | 2.4 | % | (2.9) | % | (0.1) | % | 0.1 | % | ||||||||||||||||||||||||
Net sales - percentage change | YTD | 1.6 | % | 3.6 | % | (1.9) | % | (0.1) | % | — | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2024 | 2023 | Change | 2024 | 2023 | Change | ||||||||||||||||||||||||||||||
North America | $ | 134.3 | $ | 136.4 | (1.5) | % | $ | 403.0 | $ | 401.0 | 0.5 | % | |||||||||||||||||||||||
Europe, Middle East and Africa | 23.2 | 20.9 | 11.0 | 69.7 | 61.1 | 14.1 | |||||||||||||||||||||||||||||
Asia Pacific and Latin America | 12.9 | 14.0 | (7.9) | 35.5 | 37.9 | (6.3) | |||||||||||||||||||||||||||||
Total net sales | $ | 170.4 | $ | 171.3 | (0.5) | % | $ | 508.2 | $ | 500.0 | 1.6 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net sales | $ | 170.4 | $ | 171.3 | $ | 508.2 | $ | 500.0 | |||||||||||||||
Cost of products sold | 77.5 | 75.8 | 224.9 | 215.3 | |||||||||||||||||||
Gross profit | 92.9 | 95.5 | 283.3 | 284.7 | |||||||||||||||||||
Gross profit margin | 54.5 | % | 55.8 | % | 55.7 | % | 56.9 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Research and development | $ | 7.2 | $ | 6.1 | $ | 20.5 | $ | 20.4 | |||||||||||||||
Percentage of net sales | 4.2 | % | 3.6 | % | 4.0 | % | 4.1 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Selling and general expenses | $ | 74.3 | $ | 78.7 | $ | 238.8 | $ | 260.5 | |||||||||||||||
Percentage of net sales | 43.6 | % | 45.9 | % | 47.0 | % | 52.1 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Other (income) expense, net | $ | (0.6) | $ | 9.5 | $ | 1.7 | $ | 10.8 | |||||||||||||||
Percentage of net sales | (0.4) | % | 5.5 | % | 0.3 | % | 2.2 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Operating profit (loss) | $ | 12.0 | $ | 1.2 | $ | 22.3 | $ | (7.0) | |||||||||||||||
Operating profit margin | 7.0 | % | 0.7 | % | 4.4 | % | (1.4) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Operating profit (loss), as reported (GAAP) | $ | 12.0 | $ | 1.2 | $ | 22.3 | $ | (7.0) | |||||||||||||||
Acquisition and integration-related charges | 1.6 | 0.6 | 4.1 | 2.4 | |||||||||||||||||||
Restructuring and transformation charges | 0.7 | 4.3 | 5.2 | 23.0 | |||||||||||||||||||
Post-RH Divestiture transition charges | 0.7 | — | 2.2 | — | |||||||||||||||||||
Post-RH Divestiture restructuring | 2.3 | — | 6.4 | — | |||||||||||||||||||
Divestiture related | — | 1.4 | — | 5.1 | |||||||||||||||||||
EU MDR Compliance | 1.6 | 0.8 | 4.4 | 2.8 | |||||||||||||||||||
Litigation and legal | — | 8.5 | — | 8.5 | |||||||||||||||||||
Intangibles amortization | 6.4 | 6.2 | 18.8 | 17.8 | |||||||||||||||||||
Adjusted operating profit (non-GAAP) | $ | 25.3 | $ | 23.0 | $ | 63.4 | $ | 52.6 |
Exhibit Number | Description | |||||||
10.1* | ||||||||
32(a)** | ||||||||
32(b)** | ||||||||
101.INS | XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
AVANOS MEDICAL, INC. | |||||||||||
(Registrant) | |||||||||||
October 30, 2024 | By: | /s/ Warren J. Machan | |||||||||
Warren J. Machan | |||||||||||
Interim Chief Financial Officer | |||||||||||
(Principal Financial Officer) | |||||||||||
October 30, 2024 | By: | /s/ John J. Hurley | |||||||||
John J. Hurley | |||||||||||
Controller | |||||||||||
(Principal Accounting Officer) |
Name | Type of Participant | ||||
Michael Greiner | Executive Participant* | ||||
Mojirade James | Executive Participant | ||||
Kerr Holbrook | Executive Participant | ||||
Sig Delgado | Executive Participant | ||||
Scott Galovan | Executive Participant | ||||
Vinny Sastri | Executive Participant | ||||
Chip Zimliki | Executive Participant | ||||
John Cato | Executive Participant | ||||
Katrine Kubis | Executive Participant |
Date: October 30, 2024 | /s/ Michael C. Greiner | |||||||
Michael C. Greiner Interim Chief Executive Officer (Principal Executive Officer) |
Date: October 30, 2024 | /s/ Warren J. Machan | |||||||
Warren J. Machan Interim Chief Financial Officer (Principal Financial Officer) |
Date: October 30, 2024 | /s/ Michael C. Greiner | |||||||
Michael C. Greiner Interim Chief Executive Officer (Principal Executive Officer) |
Date: October 30, 2024 | /s/ Warren J. Machan | |||||||
Warren J. Machan Interim Chief Financial Officer (Principal Financial Officer) |
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 4.3 | $ (3.7) | $ 5.2 | $ (72.3) |
Other Comprehensive Income (Loss), Net of Tax | ||||
Unrealized currency translation adjustments | 0.3 | (4.6) | (8.0) | 2.8 |
Defined benefit plans | 0.1 | 0.0 | (0.1) | 0.0 |
Cash flow hedges | 0.2 | 0.0 | (1.8) | 0.0 |
Total Other Comprehensive Income (Loss), Net of Tax | 0.6 | (4.6) | (9.9) | 2.8 |
Comprehensive Income (Loss) | $ 4.9 | $ (8.3) | $ (4.7) | $ (69.5) |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares outstanding (in shares) | 45,954,931 | 46,174,337 |
Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2024 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies Background and Basis of Presentation Avanos Medical, Inc. is a medical technology company focused on delivering clinically superior medical device solutions that will help patients get back to the things that matter. Headquartered in Alpharetta, Georgia, we are committed to addressing some of today’s most important healthcare needs, including providing a vital lifeline for nutrition to patients from hospital to home, and reducing the use of opioids while helping patients move from surgery to recovery. We develop, manufacture and market our recognized brands globally and hold leading market positions in multiple categories across our portfolio. References herein to “Avanos,” “the Company,” “we,” “our” and “us” refer to Avanos Medical, Inc. and its consolidated subsidiaries. Interim Financial Statements We prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements, and the condensed consolidated financial statements in this Form 10-Q should be read in conjunction with the Form 10-K. Our unaudited interim condensed consolidated financial statements contain all necessary material adjustments, which are of a normal and recurring nature, to fairly state our financial condition, results of operations and cash flows for the periods presented. Use of Estimates Preparation of our condensed consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Estimates are used in accounting for, among other things, certain amounts included in discontinued operations, certain amounts included in assets and liabilities held for sale, distributor rebate accruals, future cash flows associated with impairment testing for goodwill and long-lived assets, loss contingencies, and deferred tax assets and potential income tax assessments. Actual results could differ from these estimates, and the effect of any change could be material to our financial statements. Changes in these estimates are recorded when known. Goodwill We test goodwill for impairment annually or more frequently whenever events or circumstances more likely than not indicate that the fair value of the reporting unit may be below its carrying value. We operate as a single reportable operating segment with one reporting unit. The fair value of our reporting unit is estimated using a combination of income (discounted cash flow analysis) and market approaches. The income approach is dependent upon several assumptions regarding future periods such as sales growth and a terminal growth rate. A weighted average cost of capital (“WACC”) was used to discount future estimated cash flows to their present values. The WACC was based on externally observable data considering market participants’ cost of equity and debt, optimal capital structure and risk factors specific to us. The market approach estimates the value of our company using a market capitalization methodology. We determined that the fair value of our reporting unit exceeded the net carrying amount in our most recent goodwill impairment test on July 1, 2024. However, there can be no assurance that the assumptions and estimates made for purposes of the annual goodwill impairment test will prove to be accurate. Volatility in the equity and debt markets, or increases in interest rates, could result in a higher discount rate. Changes in sales volumes, selling prices and costs of goods sold, and increases in interest rates could cause changes in our forecasted cash flows. Unfavorable changes in any of the factors described above, as well as a decline in our stock price, could result in a goodwill impairment charge in the future. Hedging and Derivatives All derivative instruments are recorded as assets or liabilities on the balance sheet at fair value. Changes in the fair value of derivatives are either recorded in the income statement or other comprehensive income, as appropriate. The effective portion of the gain or loss on derivatives designated as cash flow hedges is included in other comprehensive income in the period that changes in fair value occur, and is reclassified to income in the same period that the hedged item affects income. Our policies allow the use of derivatives for risk management purposes and prohibit their use for speculation. Our policies also prohibit the use of any leveraged derivative instrument. Consistent with our policies, foreign currency derivative instruments are entered into with major financial institutions. At inception, we formally designate certain derivatives as cash flow hedges and establish how the effectiveness of these hedges will be assessed and measured. This process links the derivatives to the transactions they are hedging. See Note 11, “Derivative Financial Instruments,” for disclosures about derivative instruments and hedging activities. Recently Adopted Accounting Pronouncements Effective January 1, 2023, we adopted ASU No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU pertains to acquired revenue contracts with customers in a business combination and addresses diversity in practice and inconsistency related to recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. Adoption of this ASU did not have a material effect on our financial position, results of operations or cash flows. Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvement to Income Tax Disclosures. This ASU pertains to disaggregation of income tax disclosures and enhances annual income tax disclosures to address investor requests for more information about the tax risks and opportunities present in an entity’s worldwide operations. The two primary enhancements disaggregate existing income tax disclosures related to the effective tax rate reconciliation and income taxes paid, and requires entities to disclose a tabular reconciliation of expected tax and reported tax on income from continuing operations using both percentages and amounts, broken out into specific categories with certain reconciling items at or above 5% of the expected tax further broken out by nature and/or jurisdiction. Additionally, this ASU requires disclosure around income taxes paid (net of refunds received) broken out between federal, state, local and foreign, and income taxes paid (net of refunds received) to an individual jurisdiction when greater than 5% of total income taxes paid. This ASU will be effective for annual periods beginning after December 15, 2024, with early adoption permitted. Adoption of this ASU is not expected to have a material effect on our financial position, results of operations or cash flows. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures. This ASU enhances segment reporting under Topic 280 by expanding the breadth and frequency of segment disclosures, and aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This ASU will be effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Adoption of this ASU will require us to expand our current disclosures around significant expenses and disclose an aggregate amount and composition of other segment items related to our single operating segment. On an annual basis, this ASU will require us to disclose the Chief Operating Decision Maker’s (CODM) title and position, as well as how the CODM uses each reported measure of segment profit or loss to assess performance and allocate resources to the segment. We will retrospectively adopt this ASU in the fiscal period ending December 31, 2024 as required by ASU No. 2023-07. In August 2023, the FASB issued ASU No. 2023-05, Business Combinations: Joint Venture Formations. This ASU is intended to address diversity in practice regarding accounting and provide decision-useful information related to contributions made to joint ventures and requires entities that qualify as either a joint venture or a corporate joint venture to apply a new basis of accounting upon the formation of the joint venture. Specifically, the ASU provides that a joint venture or a corporate joint venture must initially measure its assets and liabilities at fair value on the formation date. This ASU will be effective for all newly formed joint venture entities with a formation date on or after January 1, 2025, with early adoption permitted. Joint ventures formed prior to the adoption date may elect to apply the new guidance retrospectively back to their original formation date. Adoption of this ASU is not expected to have a material effect on our financial position, results of operations or cash flows.
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Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Discontinued Operations On June 7, 2023, we entered into a Purchase Agreement (“the Purchase Agreement”) by and among us and certain of our affiliates and SunMed Group Holdings, LLC (“Buyer”) pursuant to which Buyer agreed to purchase substantially all of the assets primarily relating to or primarily used in our Respiratory Health (“RH”) business (the “RH Divestiture”). On October 2, 2023, we closed the RH Divestiture for a total purchase price of $110 million in cash, subject to certain adjustments as provided in the Purchase Agreement based on the indebtedness and inventory transferred to Buyer at the closing and the chargebacks assumed by Buyer but that would otherwise have been payable by the Company and its subsidiaries on or after October 2, 2023 to distributors of the Company’s RH products located in the United States (the “Initial Closing”). The RH Divestiture represents a key component of Avanos’ ongoing three-year transformation process, and is aimed at accelerating the Company’s efforts to focus its portfolio on markets where it is well positioned to succeed. At or before the closing of the RH Divestiture, we and Buyer entered into various transition services agreements pursuant to which we, Buyer and each company’s respective affiliates provide to each other various transitional services, including, but not limited to, product manufacturing and distribution, facilities, order fulfillment, invoicing, quality assurance, regulatory support, audit support and other services. The services generally commenced on the closing date of the Divestiture and terminate no later than to three years thereafter. We have also entered into distribution agreements with Buyer under which we will remain a limited risk distributor for RH products on Buyer’s behalf for sales outside of the United States. As a result, we had $6.6 million of RH products included in “Prepaid expenses and other current assets” in the accompanying consolidated balance sheet as of September 30, 2024, compared to $11.9 million as of December 31, 2023. While our agreements with Buyer allows for limited risk distributor (“LRD”) arrangements for up to three years from the date of the Purchase Agreement, we expect the LRD arrangements to terminate by the end of this year. As a result of the RH Divestiture, the results of operations from our RH business are reported as “Net (Loss) Income from discontinued operations, net of tax” and the related assets and liabilities are classified as “held for sale” in the condensed consolidated financial statements. Pursuant to an agreement under which we provide manufacturing services for the Buyer, certain manufacturing facilities and equipment did not transfer to the Buyer upon the Initial Closing, and remained in “Assets Held for Sale” as of September 30, 2024 with a corresponding liability representing our obligation to transfer the manufacturing facilities and equipment to the buyer at a later date. Likewise, the results of operations from these manufacturing operations continue to be classified as “Net Loss from discontinued operations, net of tax. On October 1, 2024, we finalized the RH Divestiture and completed the transfer of the manufacturing facilities and equipment to Buyer. Accordingly, we expect to finalize adjustments to our pretax loss on discontinued operations in the fourth quarter of 2024. The following table summarizes the financial results of our discontinued operations for all periods presented herein (in millions):
In accordance with accounting principles generally accepted in the United States (“GAAP”), only expenses specifically identifiable and related to a business to be disposed may be allocated to discontinued operations. Accordingly, the cost of products sold, research and development, selling and general expenses and other expense, net in discontinued operations include expenses incurred directly to solely support our respiratory health business. Details on assets and liabilities classified as held for sale in the accompanying consolidated balance sheets are presented in the following table (in millions):
Assets and liabilities held for sale as of September 30, 2024 were classified as current since we expect the RH Divestiture to be completed within one year. The following table provides operating and investing cash flow information for our discontinued operations (in millions):
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Restructuring Activities |
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||
Restructuring Activities | Restructuring Activities Post-RH Divestiture Restructuring Plan During 2024, we initiated a post-RH Divestiture restructuring plan (the “Plan”). The Plan is intended to align our organizational structure, distribution and operational footprint with our remaining business. We expect the Plan will be substantially complete by the end of 2025 and currently expect to incur between $10.0 million and $11.0 million of cash expenses, primarily for employee termination benefits. In the three and nine months ended September 30, 2024, we incurred $2.3 million and $6.4 million, respectively, of costs related to the Plan. These costs were included in “Cost of products sold” and “Selling and general expenses” in the accompanying condensed consolidated income statements. Transformation Process In January 2023, we initiated a three-year restructuring initiative intended to align the Company under a single commercial organization, rationalize our product portfolio, undertake additional cost management activities to enhance the Company’s operating profitability and pursue efficient capital allocation strategies (the “Transformation Process”). The RH Divestiture represents a key component of the three-year Transformation Process. We expect the Transformation Process will be substantially complete by the end of 2025. We expect to incur up to $30.0 million of cash expenses in connection with the Transformation Process, consisting of between $9.0 million and $12.0 million of program management consulting and employee retention expenses; between $8.0 million and $11.0 million of expenses associated with manufacturing and supply chain improvements and portfolio rationalization; and the remainder for expenses associated with organization design and alignment and other related activities. These amounts include between $6.0 million and $8.0 million of employee severance and benefits costs. In the three and nine months ended September 30, 2024, we incurred expenses of $0.7 million and $5.2 million, respectively, primarily related to employee severance and benefits costs in connection with the Transformation Process, compared to $4.3 million and $23.0 million in the three and nine months ended September 30, 2023. These costs were included in “Cost of products sold” and “Selling and general expenses” in the accompanying condensed consolidated income statements. Plan-to- date we have incurred expenses of $33.4 million in connection with the Transformation Process, which includes $28.1 million of cash expenses. Restructuring Liability Our liability for costs associated with our restructuring initiatives as of September 30, 2024 is summarized below (in millions):
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Business Acquisition |
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Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition | Business Acquisition Diros Technology On June 17, 2023 we entered into a definitive agreement to acquire Diros Technology Inc. (“Diros”), a leading manufacturer of innovative radiofrequency ablation (“RFA”) products used to treat chronic pain conditions. On July 24, 2023, we closed the acquisition of Diros. The total purchase price paid in connection with our acquisition of Diros was $53.0 million, consisting of $2.5 million in cash paid upon entry into the definitive agreement and $50.5 million in cash paid at closing (subject to certain working capital and other adjustments), with up to an additional $7.0 million payable in contingent cash consideration based on achievement of certain performance objectives defined in the purchase agreement (the “Diros Acquisition”). The purchase price for the Diros Acquisition was funded by proceeds from our Revolving Credit Facility. The accompanying condensed consolidated income statement includes $4.6 million and $14.4 million of net sales from Diros for the three and nine months ended September 30, 2024, respectively. The accompanying condensed consolidated income statement includes $2.4 million of net sales from Diros since the acquisition date for the three and nine months ended September 30, 2023. In the three and nine months ended September 30, 2024, we incurred $1.5 million and $2.1 million of costs in connection with the Diros Acquisition, compared to $0.6 million and $0.9 million of costs in the three and nine months ended September 30, 2023, respectively. These costs are included in “Selling and general expenses,” In the nine months ended September 30, 2024, we made contingent consideration payments of $4.6 million and to date we have made contingent consideration payments of $6.1 million. Under the acquisition method of accounting for business combinations, the purchase price paid is allocated to the underlying net assets in proportion to their respective fair values. Any excess of the purchase price over the estimated fair values is recorded as goodwill. Fair values of assets acquired and liabilities assumed are being determined using discounted cash flow analyses and the fair value of the contingent consideration is being estimated using a Monte Carlo simulation. Assumptions supporting the estimated fair values are based on facts and circumstances that existed on the valuation date. The purchase price allocation is shown in the table below (in millions):
The identifiable intangible assets relating to the Diros Acquisition include the following (in millions, except years):
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Supplemental Balance Sheet Information |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Accounts Receivable Accounts receivable consist of the following (in millions):
Losses on receivables are estimated based on known troubled accounts and historical experience. Receivables are considered impaired and written off when it is probable that payments due will not be collected. Allowance for doubtful accounts was $0.1 million for the three months ended September 30, 2024 and $0.2 million for the nine months ended September 30, 2024, compared to a net benefit of $0.4 million and an expense of $0.2 million for the three and nine months ended September 30, 2023, respectively. Inventories Inventories at the lower of cost (determined on the FIFO method) or net realizable value consists of the following (in millions):
We incurred $2.8 million and $4.3 million of expense for inventory write-offs and obsolescence in the three and nine months ended September 30, 2024, compared to $2.0 million and $6.3 million in the three and nine months ended September 30, 2023, respectively. Property, Plant and Equipment Property, plant and equipment consists of the following (in millions):
Depreciation expense was $5.3 million and $15.6 million for the three and nine months ended September 30, 2024, respectively, compared to $4.8 million and $14.2 million for the three and nine months ended September 30, 2023, respectively. Goodwill and Intangible Assets The changes in the carrying amount of goodwill are as follows (in millions):
Intangible assets subject to amortization consist of the following (in millions):
Amortization expense for intangible assets is included in “Cost of products sold” and “Selling and general expenses” and was $6.4 million and $18.8 million for the three and nine months ended September 30, 2024, respectively, compared to $6.2 million and $17.8 million for the three and nine months ended September 30, 2023, respectively. As of September 30, 2024 we had unrealized currency translation adjustments of $0.3 million related to our acquired intangibles from the acquisition of Diros. Amortization expense for the remainder of 2024, the following four years and thereafter is estimated as follows (in millions):
Accrued Expenses Accrued expenses consist of the following (in millions):
Other Long-Term Liabilities Other long-term liabilities consist of the following (in millions):
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Fair Value Information |
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Information | Fair Value Information The following fair value information is based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels in the hierarchy used to measure fair value are: Level 1: Unadjusted quoted prices in active markets accessible at the reporting date for identical assets and liabilities. Level 2: Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets and liabilities in markets that are not considered active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3: Prices or valuations that require inputs that are significant to the valuation and are unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following table includes the fair value of our financial instruments for which disclosure of fair value is required (in millions): Cash equivalents are recorded at cost, which approximates fair value due to their short-term nature. The fair value of amounts borrowed under our Revolving Credit Facility and Term Loan Facility approximates carrying value because borrowings are subject to a variable rate as described in Note 7, “Debt”.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt As of September 30, 2024 and December 31, 2023, our respective debt balances were as follows (in millions):
On June 24, 2022, we entered into a credit agreement (the “Credit Agreement”) with certain lenders which established credit facilities in an aggregate principal amount of $500.0 million, consisting of a five-year senior secured term loan of $125.0 million (the “Term Loan Facility”) and a five-year senior secured revolving credit facility allowing borrowings of up to $375.0 million, with a letter of credit sub-facility in an amount of $75.0 million (the “Revolving Credit Facility”). All obligations under the Credit Agreement and certain hedging agreements and cash management arrangements thereunder are: (i) guaranteed by each of the Company’s direct and indirect, existing and future, material wholly owned domestic subsidiaries (“Guarantors”) and (ii) secured by a first priority lien on substantially all the assets of the Company and the Guarantors. The Credit Agreement contains an accordion feature that allows us to incur incremental term loans under the Term Loan Facility or under new term loan facilities or to increase the amount of the commitments under the Revolving Credit Facility, including through the establishment of one or more tranches under the Revolving Credit Facility. The Credit Agreement will mature on June 24, 2027. Borrowings under the Term Loan Facility and Revolving Credit Facility bear interest at our option at either: (i) an adjusted term secured overnight financing rate (“SOFR”), plus a margin ranging between 1.50% to 2.00% per annum, depending on our consolidated total leverage ratio; (ii) an adjusted daily simple SOFR rate, plus a margin ranging between 1.50% to 2.00% per annum, depending on our consolidated total leverage ratio; or (iii) a base rate (calculated as the greatest of (a) the prime rate, (b) the NYFRB rate (being the greater of the federal funds effective rate or the overnight bank funding rate) plus 0.50%, and (c) the one month adjusted term SOFR rate plus 1.00%), plus a margin ranging between 0.50% to 1.00% per annum, depending on our consolidated total leverage ratio. The unused portion of the Revolving Credit Facility will be subject to a commitment fee ranging between 0.20% to 0.25% per annum, depending on our consolidated total leverage ratio. Unamortized debt discount and issuance costs are being amortized to interest expense over the life of the Term Loan Facility using the interest method, resulting in an effective interest rate of 7.1% as of September 30, 2024. The Credit Agreement requires compliance with certain customary operational and financial covenants. As of September 30, 2024, we were in compliance with these covenants. In addition, the Credit Agreement contains certain other customary limitations on our ability to, among other things: incur additional indebtedness; pay dividends on or repurchase or redeem our capital stock; make loans, investments and acquisitions; sell, transfer or otherwise dispose of assets; guarantee other obligations; create or grant liens; and enter into certain types of transactions with affiliates. Notwithstanding such limitations, the Credit Agreement allows us to pay dividends, repurchase stock and make investments up to an “Available Amount,” as defined in the Credit Agreement, provided no event of default has occurred and certain financial ratios have been achieved on a pro forma basis. We are permitted to prepay all or a portion of the Term Loan Facility and the Revolving Credit Facility at any time without premium or penalty. Debt Payments The Credit Agreement requires quarterly principal installment payments on the Term Loan Facility of 10% of the total principal borrowed for the first eight quarters following funding and then quarterly installment payments of 20% of the total principal borrowed, at which time the remaining unpaid principal amount of the Term Loan Facility is due and payable by the Company upon the maturity date of June 24, 2027. The current portion of the Term Loan Facility is $9.4 million. Interest is payable quarterly. We have the right to voluntarily prepay the Term Loan Facility in accordance with the terms of the Credit Agreement. Interest is payable at the same rates set forth above for the Revolving Credit Facility. During the nine months ended September 30, 2024, we repaid $6.3 million of the Term Loan Facility. During the nine months ended September 30, 2024, we borrowed $20.0 million and repaid $20.0 million of the Revolving Credit Facility. As of September 30, 2024, we had letters of credit outstanding of $6.3 million. As of September 30, 2024, the aggregate amounts of long-term debt that will mature during each of the next four years are as follows (in millions):
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Accumulated Other Comprehensive Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The changes in the components of Accumulated Other Comprehensive Income (“AOCI”), net of tax, are as follows (in millions):
The net changes in the components of AOCI, including the tax effect, are as follows (in millions):
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense is included in “Cost of products sold,” “Research and development,” and “Sales and general expenses.” Stock-based compensation expense for the three and nine months ended September 30, 2024 and 2023 is shown in the table below (in millions):
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Commitments and Contingencies |
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Sep. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters We are subject to various legal proceedings, claims and governmental inspections, audits or investigations pertaining to issues such as contract disputes, product liability, tax matters, patents and trademarks, advertising, governmental regulations, employment and other matters. Under the terms of the distribution agreement we entered into with Kimberly-Clark Corporation (“Kimberly-Clark”) prior to our 2014 spin-off from Kimberly-Clark, legal proceedings, claims and other liabilities that are primarily related to our business are our responsibility and we are obligated to indemnify and hold Kimberly-Clark harmless for such matters. Government Investigation In June 2015, we were served with a subpoena from the Department of Veterans Affairs Office of the Inspector General (“VA OIG”) seeking information related to the design, manufacture, testing, sale and promotion of MicroCool and other surgical gowns produced by the Company. In July 2015, we became aware that the VA OIG subpoena and an earlier VA OIG subpoena served on Kimberly-Clark requesting information about gown sales to the federal government were related to a United States Department of Justice (“DOJ”) investigation. In May 2016, April 2017 and September 2018, we received additional subpoenas from the DOJ seeking further information related to the Company’s surgical gowns. On July 6, 2021, we entered into a Deferred Prosecution Agreement (“DPA”) with the DOJ that resolved their criminal investigation related to our MicroCool surgical gowns. Pursuant to the terms of the DPA, in July 2021 the Company made a payment of $22.2 million. The DPA term expired on July 7, 2024. Under the DPA, the DOJ has up to six months following the term’s expiration to seek dismissal of the case. Patent Litigation We operate in an industry characterized by extensive patent litigation. Competitors may claim that our products infringe upon their intellectual property. Resolution of patent litigation or other intellectual property claims is typically time consuming and costly and can result in significant damage awards and injunctions that could prevent the manufacture and sale of the affected products or require us to make significant royalty payments in order to continue selling the affected products. At any given time, we may be involved as either a plaintiff or a defendant in a number of patent infringement actions, the outcomes of which may not be known for prolonged periods of time. General While we maintain general and professional liability, product liability and other insurance, our insurance policies may not cover all of these matters and may not fully cover liabilities arising out of these matters. In addition, we may be obligated to indemnify our directors and officers against these matters. We record provisions in the consolidated financial statements for pending litigation when we determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. For any matters that are reasonably possible to result in loss and for which no possible loss or range of loss is disclosed in this Form 10-Q, management has determined that it is unable to estimate the possible loss or range of loss because, in each case, at least the following facts applied: (a) the matter is at an early stage of the proceedings; (b) the damages are indeterminate, unspecified or determined to be immaterial; and (c) significant factual issues have yet to be resolved. At present, although the results of litigation and claims cannot be predicted with certainty, we believe that the ultimate resolution of any pending legal proceeding to which we are a party will not have a material adverse effect on our business, financial condition, results of operations or liquidity. Environmental Compliance We are subject to federal, state and local environmental protection laws and regulations with respect to our business operations. We believe we are operating in compliance with, or are taking action aimed at ensuring compliance with, these laws and regulations. None of our compliance obligations with environmental protection laws and regulations, individually or in the aggregate, is expected to have a material adverse effect on our business, financial condition, results of operations or liquidity.
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Derivative Financial Instruments |
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Sep. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments During the second quarter of 2024, we began to enter into derivative instruments to hedge a portion of forecasted cash flows denominated in Mexican pesos. The derivative instruments used to manage these exposures are designated and qualify as cash flow hedges. The derivative liability for foreign exchange contracts was $2.1 million as of September 30, 2024 and is included in the condensed consolidated balance sheet in accrued expenses. The effective portion of the gain or loss on a derivative instrument is initially recorded in AOCI, net of related income taxes, and recognized in earnings in the same period that the hedged exposure affects earnings. The loss recognized in earnings was not material in the three and nine months ended September 30, 2024. As of September 30, 2024, the aggregate notional values of outstanding foreign currency swap contracts designated as cash flow hedges were $17.8 million.
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Earnings Per Share ("EPS") |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share (“EPS”) | Earnings Per Share (“EPS”) Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during each period. Diluted earnings per share is calculated by dividing net income by the number of common shares outstanding and the effect of all dilutive common stock equivalents outstanding during each period, as determined using the treasury stock method. The calculation of basic and diluted earnings (loss) per share for the three and nine months ended September 30, 2024 and 2023 is set forth in the following table (in millions, except per share amounts):
Restricted share units (“RSUs”) contain provisions allowing for the equivalent of any dividends paid on common stock during the restricted period to be reinvested into additional RSUs at the then fair market value of the common stock on the date the dividends are paid. Such awards are to be included in the EPS calculation under the two-class method. Currently, we do not anticipate any cash dividends for the foreseeable future and our outstanding RSU awards are not material in comparison to our weighted average shares outstanding. Accordingly, all EPS amounts reflect shares as if they were fully vested and the disclosures associated with the two-class method are not presented herein. For the three and nine months ended September 30, 2024, $1.0 million and $1.3 million of potentially dilutive stock options and RSU awards were excluded from the computation of earnings per share as their effect would have been anti-dilutive.
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Business and Products Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business and Products Information | Business and Products Information We conduct our business in one operating and reportable segment that provides our medical device products to healthcare providers and patients globally with manufacturing facilities in the United States and Mexico. Avanos develops, manufactures and markets its recognized brands globally and holds leading market positions in multiple categories across its portfolio. Our management evaluates net sales by product category within our single reportable segment as follows (in millions):
Digestive Health is a portfolio of products such as our MIC-KEY enteral feeding tubes, Corpak patient feeding solutions and NeoMed neonatal and pediatric feeding solutions. Pain Management and Recovery is a portfolio of products including: •Surgical pain and recovery products such as ON-Q and ambIT surgical pain pumps and Game Ready cold and compression therapy systems; and •Interventional pain solutions, which provide minimally invasive pain relief therapies, such as our COOLIEF pain therapy, OrthogenRx’s knee osteoarthritis HA pain relief injection products and Diros’ RFA products used to treat chronic pain conditions. Liabilities for estimated returns, rebates and incentives are presented in the table below (in millions):
__________________________________________________ (a)Accrued sales returns are included in “Other” in the accrued expenses table in Note 5, “Supplemental Balance Sheet Information”. Due to the nature of our business, we receive purchase orders for products under supply agreements which are normally fulfilled within three to four weeks. Our performance obligations under purchase orders are satisfied and revenue is recognized at a point in time, which is upon shipment or upon delivery of our products, depending on shipping terms. Accordingly, we normally do not have transactions that give rise to material unfulfilled performance obligations.
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Share Repurchase Program |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Repurchase Program | Share Repurchase Program On July 28, 2023, the Board of Directors approved a new one-year program under which we may repurchase up to $25.0 million of our common stock. Repurchases under this program will be made from time to time at management’s discretion on the open market or through privately negotiated transactions in compliance with Rule 10b-18 under the Exchange Act, subject to market conditions, applicable legal requirements and other relevant factors. We have established a pre-arranged trading plan under Rule 10b5-1 of the Exchange Act in connection with this share repurchase program. This share repurchase program does not obligate us to purchase any particular amount of common stock and may be suspended, modified or discontinued by us without prior notice. In the third quarter of 2023, we repurchased $9.2 million of our common stock and during the fourth quarter of 2023, we repurchased an additional $5.8 million of our common stock. For the nine months ended September 30, 2024, our repurchases of our common stock were as summarized in the table below.
In addition to the share repurchase program, we withheld 140,539 shares of common stock for $2.7 million in taxes associated with stock-based compensation transactions for the nine months ended September 30, 2024.
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Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2024 | |
Accounting Policies [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Avanos Medical, Inc. is a medical technology company focused on delivering clinically superior medical device solutions that will help patients get back to the things that matter. Headquartered in Alpharetta, Georgia, we are committed to addressing some of today’s most important healthcare needs, including providing a vital lifeline for nutrition to patients from hospital to home, and reducing the use of opioids while helping patients move from surgery to recovery. We develop, manufacture and market our recognized brands globally and hold leading market positions in multiple categories across our portfolio. References herein to “Avanos,” “the Company,” “we,” “our” and “us” refer to Avanos Medical, Inc. and its consolidated subsidiaries. Interim Financial Statements We prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements, and the condensed consolidated financial statements in this Form 10-Q should be read in conjunction with the Form 10-K. Our unaudited interim condensed consolidated financial statements contain all necessary material adjustments, which are of a normal and recurring nature, to fairly state our financial condition, results of operations and cash flows for the periods presented.
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Use of Estimates | Use of Estimates Preparation of our condensed consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Estimates are used in accounting for, among other things, certain amounts included in discontinued operations, certain amounts included in assets and liabilities held for sale, distributor rebate accruals, future cash flows associated with impairment testing for goodwill and long-lived assets, loss contingencies, and deferred tax assets and potential income tax assessments. Actual results could differ from these estimates, and the effect of any change could be material to our financial statements. Changes in these estimates are recorded when known.
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Goodwill | Goodwill We test goodwill for impairment annually or more frequently whenever events or circumstances more likely than not indicate that the fair value of the reporting unit may be below its carrying value. We operate as a single reportable operating segment with one reporting unit. The fair value of our reporting unit is estimated using a combination of income (discounted cash flow analysis) and market approaches. The income approach is dependent upon several assumptions regarding future periods such as sales growth and a terminal growth rate. A weighted average cost of capital (“WACC”) was used to discount future estimated cash flows to their present values. The WACC was based on externally observable data considering market participants’ cost of equity and debt, optimal capital structure and risk factors specific to us. The market approach estimates the value of our company using a market capitalization methodology. We determined that the fair value of our reporting unit exceeded the net carrying amount in our most recent goodwill impairment test on July 1, 2024. However, there can be no assurance that the assumptions and estimates made for purposes of the annual goodwill impairment test will prove to be accurate. Volatility in the equity and debt markets, or increases in interest rates, could result in a higher discount rate. Changes in sales volumes, selling prices and costs of goods sold, and increases in interest rates could cause changes in our forecasted cash flows. Unfavorable changes in any of the factors described above, as well as a decline in our stock price, could result in a goodwill impairment charge in the future.
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Hedging and Derivatives | Hedging and Derivatives All derivative instruments are recorded as assets or liabilities on the balance sheet at fair value. Changes in the fair value of derivatives are either recorded in the income statement or other comprehensive income, as appropriate. The effective portion of the gain or loss on derivatives designated as cash flow hedges is included in other comprehensive income in the period that changes in fair value occur, and is reclassified to income in the same period that the hedged item affects income. Our policies allow the use of derivatives for risk management purposes and prohibit their use for speculation. Our policies also prohibit the use of any leveraged derivative instrument. Consistent with our policies, foreign currency derivative instruments are entered into with major financial institutions. At inception, we formally designate certain derivatives as cash flow hedges and establish how the effectiveness of these hedges will be assessed and measured. This process links the derivatives to the transactions they are hedging.
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Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective January 1, 2023, we adopted ASU No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU pertains to acquired revenue contracts with customers in a business combination and addresses diversity in practice and inconsistency related to recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. Adoption of this ASU did not have a material effect on our financial position, results of operations or cash flows. Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvement to Income Tax Disclosures. This ASU pertains to disaggregation of income tax disclosures and enhances annual income tax disclosures to address investor requests for more information about the tax risks and opportunities present in an entity’s worldwide operations. The two primary enhancements disaggregate existing income tax disclosures related to the effective tax rate reconciliation and income taxes paid, and requires entities to disclose a tabular reconciliation of expected tax and reported tax on income from continuing operations using both percentages and amounts, broken out into specific categories with certain reconciling items at or above 5% of the expected tax further broken out by nature and/or jurisdiction. Additionally, this ASU requires disclosure around income taxes paid (net of refunds received) broken out between federal, state, local and foreign, and income taxes paid (net of refunds received) to an individual jurisdiction when greater than 5% of total income taxes paid. This ASU will be effective for annual periods beginning after December 15, 2024, with early adoption permitted. Adoption of this ASU is not expected to have a material effect on our financial position, results of operations or cash flows. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures. This ASU enhances segment reporting under Topic 280 by expanding the breadth and frequency of segment disclosures, and aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. This ASU will be effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Adoption of this ASU will require us to expand our current disclosures around significant expenses and disclose an aggregate amount and composition of other segment items related to our single operating segment. On an annual basis, this ASU will require us to disclose the Chief Operating Decision Maker’s (CODM) title and position, as well as how the CODM uses each reported measure of segment profit or loss to assess performance and allocate resources to the segment. We will retrospectively adopt this ASU in the fiscal period ending December 31, 2024 as required by ASU No. 2023-07. In August 2023, the FASB issued ASU No. 2023-05, Business Combinations: Joint Venture Formations. This ASU is intended to address diversity in practice regarding accounting and provide decision-useful information related to contributions made to joint ventures and requires entities that qualify as either a joint venture or a corporate joint venture to apply a new basis of accounting upon the formation of the joint venture. Specifically, the ASU provides that a joint venture or a corporate joint venture must initially measure its assets and liabilities at fair value on the formation date. This ASU will be effective for all newly formed joint venture entities with a formation date on or after January 1, 2025, with early adoption permitted. Joint ventures formed prior to the adoption date may elect to apply the new guidance retrospectively back to their original formation date. Adoption of this ASU is not expected to have a material effect on our financial position, results of operations or cash flows.
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Discontinued Operations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Financial Results of Discontinued Operations | The following table summarizes the financial results of our discontinued operations for all periods presented herein (in millions):
Details on assets and liabilities classified as held for sale in the accompanying consolidated balance sheets are presented in the following table (in millions):
The following table provides operating and investing cash flow information for our discontinued operations (in millions):
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Restructuring Activities (Tables) |
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||
Summary of Accrual and Payment Activity | Our liability for costs associated with our restructuring initiatives as of September 30, 2024 is summarized below (in millions):
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Business Acquisition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Purchase Price Allocation | The purchase price allocation is shown in the table below (in millions):
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Summary of Identifiable Intangible Assets | The identifiable intangible assets relating to the Diros Acquisition include the following (in millions, except years):
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Supplemental Balance Sheet Information (Tables) |
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Accounts Receivable | Accounts receivable consist of the following (in millions):
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Summary of Inventories | Inventories at the lower of cost (determined on the FIFO method) or net realizable value consists of the following (in millions):
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Summary of Property, Plant and Equipment | Property, plant and equipment consists of the following (in millions):
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Summary of Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are as follows (in millions):
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Summary of Intangible Assets Subject to Amortization | Intangible assets subject to amortization consist of the following (in millions):
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Summary of Estimated Amortization Expense | Amortization expense for the remainder of 2024, the following four years and thereafter is estimated as follows (in millions):
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Summary of Accrued Expenses | Accrued expenses consist of the following (in millions):
Liabilities for estimated returns, rebates and incentives are presented in the table below (in millions):
__________________________________________________ (a)Accrued sales returns are included in “Other” in the accrued expenses table in Note 5, “Supplemental Balance Sheet Information”.
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Summary of Other Long-Term Liabilities | Other long-term liabilities consist of the following (in millions):
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Fair Value Information (Tables) |
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Value of Financial Instruments | The following table includes the fair value of our financial instruments for which disclosure of fair value is required (in millions):
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Debt Balances | As of September 30, 2024 and December 31, 2023, our respective debt balances were as follows (in millions):
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Summary of Maturities of Long-Term Debt | As of September 30, 2024, the aggregate amounts of long-term debt that will mature during each of the next four years are as follows (in millions):
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Accumulated Other Comprehensive Income (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in the Components of Accumulated Other Comprehensive Income | The changes in the components of Accumulated Other Comprehensive Income (“AOCI”), net of tax, are as follows (in millions):
The net changes in the components of AOCI, including the tax effect, are as follows (in millions):
|
Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock-Based Compensation Expense | Stock-based compensation expense is included in “Cost of products sold,” “Research and development,” and “Sales and general expenses.” Stock-based compensation expense for the three and nine months ended September 30, 2024 and 2023 is shown in the table below (in millions):
|
Earnings Per Share ("EPS") (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Calculation of Basic and Diluted Earnings Per Share | The calculation of basic and diluted earnings (loss) per share for the three and nine months ended September 30, 2024 and 2023 is set forth in the following table (in millions, except per share amounts):
|
Business and Products Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Net Sales by Product Category | Our management evaluates net sales by product category within our single reportable segment as follows (in millions):
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Summary of Accrued Expenses | Accrued expenses consist of the following (in millions):
Liabilities for estimated returns, rebates and incentives are presented in the table below (in millions):
__________________________________________________ (a)Accrued sales returns are included in “Other” in the accrued expenses table in Note 5, “Supplemental Balance Sheet Information”.
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Share Repurchase Program (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Class of Treasury Stock | For the nine months ended September 30, 2024, our repurchases of our common stock were as summarized in the table below.
|
Accounting Policies - Narratives (Details) |
9 Months Ended |
---|---|
Sep. 30, 2024
segment
| |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Number of reporting units | 1 |
Discontinued Operations - Schedule of Balance Sheet (Details) - RH Business - Disposed of by sale - USD ($) $ in Millions |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Inventories | $ 28.2 | $ 17.5 |
Property, Plant and Equipment, net | 43.0 | 43.9 |
Operating Lease Right-of-Use Assets | 2.7 | 3.1 |
Total assets classified as held for sale | 73.9 | 64.5 |
Current Portion of Operating Lease Liabilities | 0.7 | 0.8 |
Accrued expenses | 51.3 | 61.3 |
Non-Current Operating Lease Liability | 0.9 | 1.6 |
Total liabilities held for sale - discontinued operations | $ 52.9 | $ 63.7 |
Discontinued Operations- Schedule of Cashflow (Details) - Disposed of by sale - RH Business - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Operating Activities: | ||
Depreciation and amortization | $ 0.0 | $ 2.6 |
Stock-based compensation expense | 0.0 | 0.1 |
Investing Activities: | ||
Capital expenditures | $ 0.6 | $ 3.1 |
Restructuring Activities - Accrual and Payment Activity (Details) - Employee severance and benefits - Multi-year restructuring plan, initial phase $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2024
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 2.3 |
Restructuring and transformation costs, excluding non-cash charges | 10.3 |
Payments and adjustments, net | (9.2) |
Ending balance | $ 3.4 |
Business Acquisition - Narratives (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | 15 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jul. 24, 2023 |
Jun. 17, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
|
Business Acquisition [Line Items] | |||||||
Net Sales | $ 170.4 | $ 171.3 | $ 508.2 | $ 500.0 | |||
Payment of contingent consideration liabilities | 4.6 | $ 6.1 | |||||
Diros Technology Inc | |||||||
Business Acquisition [Line Items] | |||||||
Consideration transferred | $ 53.0 | ||||||
Payments to acquire businesses, gross | 50.5 | $ 2.5 | |||||
Future estimated payments | $ 7.0 | ||||||
Net Sales | 4.6 | 2.4 | 14.4 | 2.4 | |||
Business acquisition, transaction costs | $ 1.5 | $ 0.6 | $ 2.1 | $ 0.9 |
Business Acquisition - Purchase Price Allocation (Details) - USD ($) $ in Millions |
Sep. 30, 2024 |
Dec. 31, 2023 |
Jul. 24, 2023 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 795.1 | $ 796.1 | |
Diros Technology Inc | |||
Business Acquisition [Line Items] | |||
Current assets, net of cash acquired | $ 7.5 | ||
Current liabilities, excluding contingent consideration | (7.0) | ||
Contingent consideration | (5.3) | ||
Other noncurrent liabilities, net | (0.5) | ||
Deferred tax liabilities | (8.1) | ||
Identifiable intangible assets | 29.6 | ||
Goodwill | 33.4 | ||
Total | $ 49.6 |
Business Acquisition - Identifiable Intangible Assets (Details) - Diros Technology Inc $ in Millions |
Jul. 24, 2023
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Identifiable Intangible Asset Amount | $ 29.6 |
Trade names and trademarks | |
Business Acquisition [Line Items] | |
Identifiable Intangible Asset Amount | $ 2.9 |
Weighted Average Useful Lives (Years) | 15 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Identifiable Intangible Asset Amount | $ 21.2 |
Weighted Average Useful Lives (Years) | 14 years |
Developed technology and other | |
Business Acquisition [Line Items] | |
Identifiable Intangible Asset Amount | $ 5.5 |
Weighted Average Useful Lives (Years) | 13 years |
Supplemental Balance Sheet Information - Accounts Receivable (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Dec. 31, 2023 |
|
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Accounts receivable | $ 137.3 | $ 137.3 | $ 134.0 | ||
Income tax receivable | 0.0 | 0.0 | 14.1 | ||
Accounts receivable, net | 131.9 | 131.9 | 142.8 | ||
Provision (reversal) for doubtful accounts | 0.1 | $ (0.4) | 0.2 | $ 0.2 | |
Doubtful accounts | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Allowances and doubtful accounts | (4.8) | (4.8) | (5.1) | ||
Sales discounts | |||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Allowances and doubtful accounts | $ (0.6) | $ (0.6) | $ (0.2) |
Supplemental Balance Sheet Information - Inventories (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Dec. 31, 2023 |
|
Inventory, Net | |||||
Raw materials | $ 47.4 | $ 47.4 | $ 50.3 | ||
Work in process | 23.2 | 23.2 | 19.8 | ||
Finished goods | 87.9 | 87.9 | 88.5 | ||
Supplies and other | 3.4 | 3.4 | 4.6 | ||
Total Inventory | 161.9 | 161.9 | $ 163.2 | ||
Inventory obsolescence | $ 2.8 | $ 2.0 | $ 4.3 | $ 6.3 |
Supplemental Balance Sheet Information - Property, Plant and Equipment (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
Dec. 31, 2023 |
|
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | $ 246.7 | $ 246.7 | $ 240.1 | ||
Less accumulated depreciation | (137.2) | (137.2) | (122.9) | ||
Total | 109.5 | 109.5 | 117.2 | ||
Depreciation expense | 5.3 | $ 4.8 | 15.6 | $ 14.2 | |
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 1.2 | 1.2 | 1.3 | ||
Buildings and leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 41.3 | 41.3 | 38.0 | ||
Machinery and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | 185.4 | 185.4 | 182.8 | ||
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant and equipment, gross | $ 18.8 | $ 18.8 | $ 18.0 |
Supplemental Balance Sheet Information - Goodwill (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2024
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 796.1 |
Currency translation adjustment | (1.0) |
Ending balance | $ 795.1 |
Supplemental Balance Sheet Information - Estimated Amortization Expense (Details) - USD ($) $ in Millions |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Estimated Amortization Expense | ||
Remainder of 2024 | $ 6.7 | |
2025 | 25.0 | |
2026 | 24.5 | |
2027 | 22.8 | |
2028 | 22.6 | |
Thereafter | 118.5 | |
Net Carrying Amount | $ 220.1 | $ 239.5 |
Supplemental Balance Sheet Information - Accrued Expenses (Details) - USD ($) $ in Millions |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued rebates and customer incentives | $ 23.6 | $ 17.7 |
Accrued salaries and wages | 29.8 | 31.5 |
Accrued taxes and other | 6.2 | 16.7 |
Other | 23.1 | 27.3 |
Total | $ 82.7 | $ 93.2 |
Supplemental Balance Sheet Information - Other Long-Term Liabilities (Details) - USD ($) $ in Millions |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued compensation and benefits | $ 6.7 | $ 5.9 |
Other | 3.9 | 4.1 |
Total | $ 10.6 | $ 10.0 |
Fair Value Information (Details) - USD ($) $ in Millions |
Sep. 30, 2024 |
Dec. 31, 2023 |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Assets | ||||
Cash and cash equivalents | $ 89.0 | $ 87.7 | $ 107.1 | $ 127.7 |
Level 1 | Carrying Amount | ||||
Assets | ||||
Cash and cash equivalents | 89.0 | 87.7 | ||
Level 1 | Estimated Fair Value | ||||
Assets | ||||
Cash and cash equivalents | 89.0 | 87.7 | ||
Level 2 | Carrying Amount | Revolving Credit Facility | ||||
Liabilities | ||||
Long-term debt, fair value | 50.0 | 50.0 | ||
Level 2 | Carrying Amount | Term Loan Facility | ||||
Liabilities | ||||
Long-term debt, fair value | 112.0 | 118.0 | ||
Level 2 | Estimated Fair Value | Revolving Credit Facility | ||||
Liabilities | ||||
Long-term debt, fair value | 50.0 | 50.0 | ||
Level 2 | Estimated Fair Value | Term Loan Facility | ||||
Liabilities | ||||
Long-term debt, fair value | 112.0 | 118.0 | ||
Level 3 | Carrying Amount | ||||
Liabilities | ||||
Contingent consideration related to acquisition | 0.0 | 5.3 | ||
Level 3 | Estimated Fair Value | ||||
Liabilities | ||||
Contingent consideration related to acquisition | $ 0.0 | $ 5.3 |
Debt - Summary of Debt (Details) - USD ($) $ in Millions |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Total Long-Term Debt, net | $ 162.5 | $ 168.8 |
Unamortized debt issuance costs | (0.5) | (0.8) |
Current portion of long-term debt | (9.4) | (8.6) |
Total Long-Term Debt, net | $ 152.6 | 159.4 |
Revolving Credit Facility | Unsecured debt | ||
Debt Instrument [Line Items] | ||
Weighted-Average Interest Rate | 6.83% | |
Total Long-Term Debt, net | $ 50.0 | 50.0 |
Term Loan Facility | Unsecured debt | ||
Debt Instrument [Line Items] | ||
Weighted-Average Interest Rate | 6.81% | |
Total Long-Term Debt, net | $ 112.5 | $ 118.8 |
Debt - Maturities of Long-Term Debt (Details) - USD ($) $ in Millions |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Debt Disclosure [Abstract] | ||
Remainder of 2024 | $ 2.3 | |
2025 | 9.4 | |
2026 | 10.2 | |
2027 | 140.6 | |
2028 | 0.0 | |
Total | $ 162.5 | $ 168.8 |
Accumulated Other Comprehensive Income - Net Changes in Components of AOCI, Including Tax Effect (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Equity [Abstract] | ||||
Unrealized currency translation | $ 0.3 | $ (4.6) | $ (8.0) | $ 2.8 |
Defined benefit pension plans | 0.1 | 0.0 | (0.1) | 0.0 |
Defined benefit pension plans, net of tax | 0.1 | 0.0 | (0.1) | 0.0 |
Cash flow hedges | 0.7 | 0.0 | (1.3) | 0.0 |
Tax effect | (0.5) | 0.0 | (0.5) | 0.0 |
Cash flow hedges, net of tax | 0.2 | 0.0 | (1.8) | 0.0 |
Total Other Comprehensive Income (Loss), Net of Tax | $ 0.6 | $ (4.6) | $ (9.9) | $ 2.8 |
Stock-Based Compensation (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 2.6 | $ 3.9 | $ 10.0 | $ 11.8 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 0.0 | 0.0 | 0.0 | 0.3 |
Time-based restricted share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 2.7 | 2.5 | 7.6 | 7.9 |
Performance-based restricted share units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | (0.1) | 1.3 | 2.3 | 3.4 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 0.0 | $ 0.1 | $ 0.1 | $ 0.2 |
Commitments and Contingencies (Details) $ in Millions |
Jul. 06, 2021
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingency accrual, payments | $ 22.2 |
Derivative Financial Instruments (Details) - Foreign exchange forward $ in Millions |
Sep. 30, 2024
USD ($)
|
---|---|
Derivative [Line Items] | |
Derivative liability | $ 2.1 |
Cash flow hedging | Designated as hedging instrument | |
Derivative [Line Items] | |
Derivative, notional amount | $ 17.8 |
Business and Products Information - Narratives (Details) |
9 Months Ended |
---|---|
Sep. 30, 2024
segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Business and Products Information - Net Sales by Product Category (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2024 |
Sep. 30, 2023 |
Sep. 30, 2024 |
Sep. 30, 2023 |
|
Disaggregation of Revenue [Line Items] | ||||
Total Net Sales | $ 170.4 | $ 171.3 | $ 508.2 | $ 500.0 |
Digestive Health | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Net Sales | 98.2 | 95.0 | 290.6 | 276.8 |
Total Pain Management and Recovery | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Net Sales | 72.2 | 76.3 | 217.6 | 223.2 |
Surgical pain and recovery | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Net Sales | 30.3 | 34.1 | 93.8 | 103.6 |
Interventional pain | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Net Sales | $ 41.9 | $ 42.2 | $ 123.8 | $ 119.6 |
Business and Products Information - Accrued Liabilities (Details) - USD ($) $ in Millions |
Sep. 30, 2024 |
Dec. 31, 2023 |
---|---|---|
Segment Reporting [Abstract] | ||
Accrued rebates | $ 13.7 | $ 10.4 |
Accrued customer incentives | 9.9 | 7.3 |
Accrued rebates and customer incentives | 23.6 | 17.7 |
Accrued sales returns | 0.1 | 0.1 |
Total estimated liabilities | $ 23.7 | $ 17.8 |
Share Repurchase Program - Narratives (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 28, 2023 |
Dec. 31, 2023 |
Sep. 30, 2023 |
Sep. 30, 2024 |
|
Equity [Abstract] | ||||
Repurchase program period (in years) | 1 year | |||
Stock repurchase program, authorized amount | $ 25.0 | |||
Value of common stock repurchased | $ 5.8 | $ 9.2 | ||
Shares withheld for tax withholding obligation (in shares) | 140,539 | |||
Stock issued, value, stock options exercised, net of tax benefit (expense) | $ 2.7 |
Share Repurchase Program - Summary of Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Jun. 30, 2024 |
Mar. 31, 2024 |
|
Equity [Abstract] | ||
Shares Repurchased (in shares) | 169,571 | 342,680 |
Shares repurchased, program to date (in shares) | 1,254,904 | 1,085,333 |
Aggregate Purchase Price (in millions) | $ 3.3 | $ 6.7 |
Average Price Per Share (in dollars per share) | $ 19.67 | $ 19.45 |
Amount Remaining in Program for Purchase (in millions) | $ 0.0 | $ 3.3 |
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