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Revenue (Notes)
3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block] Revenue
Revenue Recognition

    Following our acquisition of Smiths Medical, our primary product lines are Infusion Consumables, Infusion Systems, IV Solutions, Critical Care, Infusion Systems-Smiths Medical, Vascular Access-Smiths Medical and Vital Care-Smiths Medical. The vast majority of our sales of these products are made on a stand-alone basis to hospitals and distributors. Revenue is typically recognized upon transfer of control of the products, which we deem to be at point of shipment. However, for purposes of revenue recognition for our software licenses and renewals, we consider the control of these products to be transferred to a customer at a certain point in time; therefore, we recognize revenue at the start of the applicable license term.

    Payment is typically due in full within 30 days of delivery or the start of the contract term. Revenue is recorded in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We offer certain volume-based rebates to our distribution customers, which we record as variable consideration when calculating the transaction price. Rebates are offered on both a fixed and tiered/variable basis. In both cases, we use information available at the time and our historical experience with each customer to estimate the most likely rebate amount. We also provide chargebacks to distributors that sell to end customers at prices determined under a contract between us and the end customer. Chargebacks are the difference between the prices we charge our distribution customers and the contracted prices we have with the end customer which are processed as credits to our distribution customers. In estimating the expected value of chargeback amounts in order to determine the transaction price, we use information available at the time, including our historical experience.

    We also warranty products against defects and have a policy permitting the return of defective products, for which we accrue and expense at the time of sale using information available at that time and our historical experience. We also provide for extended service-type warranties, which we consider to be separate performance obligations. We allocate a portion of the transaction price to the extended service-type warranty based on its estimated relative selling price, and recognize revenue over
the period the warranty service is provided. Our revenues are recorded at the net sales price, which includes an estimate for variable consideration related to rebates, chargebacks and product returns.

Revenue disaggregated

The following table represents our revenues disaggregated by product line (in thousands):

Three months ended
March 31,
Product line20222021
Infusion Consumables$140,521 $126,370 
Infusion Systems87,012 84,334 
IV Solutions88,480 94,176 
Critical Care12,157 13,166 
Infusion Systems-Smiths Medical66,290 — 
Vascular Access-Smiths Medical79,008 — 
Vital Care-Smiths Medical69,654 — 
Total Revenues$543,122 $318,046 

Infusion Systems-Smiths Medical, Vascular Access-Smiths Medical and Vital Care-Smiths Medical represent our newly integrated product lines following our acquisition of Smiths Medical on January 6, 2022.

    The following table represents our revenues disaggregated by geography (in thousands):
Three months ended
March 31,
Geography20222021
Europe, the Middle East and Africa$86,204 $34,800 
Other Foreign109,127 55,895 
Total Foreign195,331 90,695 
United States347,791 227,351 
Total Revenues$543,122 $318,046 
    
Contract balances

    The following table presents the changes in our contract balances for the three months ended March 31, 2022 and 2021 (in thousands):
Contract Liabilities
Beginning balance, January 1, 2022$(7,461)
Fair value of acquired deferred revenue(51,245)
Equipment revenue recognized5,574 
Equipment revenue deferred due to implementation(3,447)
Software revenue recognized4,299 
Software revenue deferred due to implementation(4,777)
Government grant deferred revenue(2,266)
Government grant recognized171 
Other deferred revenue(767)
Other deferred revenue recognized1,683 
Ending balance, March 31, 2022$(58,236)
Beginning balance, January 1, 2021$(6,430)
Equipment revenue recognized461 
Equipment revenue deferred due to implementation(2,921)
Software revenue recognized1,796 
Software revenue deferred due to implementation(1,794)
Ending balance, March 31, 2021$(8,888)
    
    As of March 31, 2022, revenue from remaining performance obligations is as follows:

Recognition Timing
(in millions)< 12 Months> 12 Months
Equipment revenue$24.1 $— 
Software revenue7.72.6
Government grant revenue1.312.8
Other revenue*2.17.6
Total$35.2 $23.0 
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*Other deferred revenue includes pump development programs, purchased training and extended warranty.