Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-15525 | ||
Entity Registrant Name | EDWARDS LIFESCIENCES CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-4316614 | ||
Entity Address, Address Line One | One Edwards Way | ||
Entity Address, City or Town | Irvine | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92614 | ||
City Area Code | 949 | ||
Local Phone Number | 250-2500 | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Trading Symbol | EW | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 34,109,197,847 | ||
Entity Common Stock, Shares Outstanding | 209,122,578 | ||
Documents Incorporated by Reference | Portions of the registrant's proxy statement for the 2020 Annual Meeting of Stockholders (to be filed within 120 days of December 31, 2019 ) are incorporated by reference into Part III, as indicated herein. | ||
Entity Central Index Key | 0001099800 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 1,179.1 | $ 714.1 |
Short-term investments (Note 7) | 337.8 | 242.4 |
Accounts receivable, net (Note 5) | 543.6 | 456.9 |
Other receivables | 55.5 | 80.4 |
Inventories (Note 5) | 640.9 | 607 |
Prepaid expenses | 59.1 | 54.3 |
Other current assets | 168 | 131.8 |
Total current assets | 2,984 | 2,286.9 |
Long-term investments (Note 7) | 585.5 | 506.3 |
Property, plant, and equipment, net (Note 5) | 1,060.3 | 867.5 |
Operating lease right-of-use assets (Note 6) | 80.1 | |
Goodwill (Note 9) | 1,167.7 | 1,112.2 |
Other intangible assets, net (Note 9) | 336.5 | 343.2 |
Deferred income taxes | 172.2 | 174 |
Other assets | 101.8 | 33.6 |
Total assets | 6,488.1 | 5,323.7 |
Current liabilities | ||
Accounts payable | 180.4 | 134 |
Accrued and other liabilities (Note 5) | 696.5 | 742.6 |
Operating lease liabilities (Note 6) | 25.5 | |
Total current liabilities | 902.4 | 876.6 |
Long-term debt (Note 10) | 594.4 | 593.8 |
Contingent consideration liabilities (Notes 8 and 11) | 172.5 | 178.6 |
Taxes payable (Note 17) | 236.6 | 259.4 |
Operating lease liabilities (Note 6) | 58.9 | |
Uncertain tax positions (Note 17) | 171.7 | 124.9 |
Other long-term liabilities | 203.3 | 150 |
Commitments and contingencies (Notes 6, 10 and 18) | ||
Stockholders' equity (Note 14) | ||
Preferred stock, $.01 par value, authorized 50.0 shares, no shares outstanding | 0 | 0 |
Common stock, $1.00 par value, 350.0 shares authorized, 218.1 and 215.2 shares issued, and 209.1 and 207.7 shares outstanding, respectively | 218.1 | 215.2 |
Additional paid-in capital | 1,623.3 | 1,384.4 |
Retained earnings | 3,741.6 | 2,694.7 |
Accumulated other comprehensive loss | (156) | (138.5) |
Treasury stock, at cost, 9.0 and 7.5 shares, respectively | (1,278.7) | (1,015.4) |
Total stockholders' equity | 4,148.3 | 3,140.4 |
Total liabilities and stockholders' equity | $ 6,488.1 | $ 5,323.7 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, shares issued (in shares) | 218,100,000 | 215,200,000 |
Common stock, shares outstanding (in shares) | 209,100,000 | 207,700,000 |
Treasury stock, shares (in shares) | 9,000,000 | 7,500,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 4,348 | $ 3,722.8 | $ 3,435.3 |
Cost of sales | 1,114.4 | 939.4 | 875.3 |
Gross profit | 3,233.6 | 2,783.4 | 2,560 |
Selling, general, and administrative expenses | 1,242.2 | 1,088.5 | 990.8 |
Research and development expenses | 752.7 | 622.2 | 552.6 |
Intellectual property litigation expenses (income), net (Note 3) | 33.4 | 214 | (73.3) |
Change in fair value of contingent consideration liabilities | (6.1) | (5.7) | (9.9) |
Special charges, net (Note 4) | 64.6 | 116.2 | 9.7 |
Other operating expenses | 0 | 0 | 0.7 |
Operating income | 1,146.8 | 748.2 | 1,089.4 |
Interest expense | 20.7 | 29.9 | 23.2 |
Interest income | (32.2) | (32) | (20.3) |
Special (gains) charges, net (Note 4) | 0 | (7.1) | 50.2 |
Other (income) expense, net (Note 16) | (8.2) | (4) | 1.4 |
Income before provision for income taxes | 1,166.5 | 761.4 | 1,034.9 |
Provision for income taxes (Note 17) | 119.6 | 39.2 | 451.3 |
Net income | $ 1,046.9 | $ 722.2 | $ 583.6 |
Earnings per share: | |||
Basic (in dollars per share) | $ 5.03 | $ 3.45 | $ 2.77 |
Diluted (in dollars per share) | $ 4.93 | $ 3.38 | $ 2.70 |
Weighted-average number of common shares outstanding: | |||
Basic (in shares) | 208.3 | 209.2 | 210.9 |
Diluted (in shares) | 212.2 | 213.6 | 215.9 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,046.9 | $ 722.2 | $ 583.6 |
Other comprehensive (loss) income, net of tax (Note 15): | |||
Foreign currency translation adjustments | (11.2) | (38.6) | 97.5 |
Unrealized (loss) gain on cash flow hedges | (11.1) | 40.4 | (30.6) |
Defined benefit pension plans | (1.9) | 0.6 | 3.5 |
Unrealized gain (loss) on available-for-sale investments | 6.3 | (3.3) | (7.8) |
Reclassification of net realized investment loss to earnings | 0.4 | 2.9 | 3.1 |
Other comprehensive (loss) income, net of tax | (17.5) | 2 | 65.7 |
Comprehensive income | $ 1,029.4 | $ 724.2 | $ 649.3 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income | $ 1,046.9 | $ 722.2 | $ 583.6 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 89.3 | 77.4 | 81.9 |
Non-cash operating lease cost | 25.3 | ||
Stock-based compensation (Notes 2 and 14) | 81.3 | 71 | 61.6 |
Inventory write off | 73.1 | 0 | 0 |
Impairment charges (Note 4) | 40.6 | 118.8 | 31 |
Change in fair value of contingent consideration liabilities | (6.1) | (5.7) | (9.9) |
Deferred income taxes | 12.1 | (27.3) | 17.8 |
Purchased in-process research and development | 24 | 0 | 6.7 |
Other | (2.8) | 13 | (6.2) |
Changes in operating assets and liabilities: | |||
Accounts and other receivables, net | (88) | (28.7) | (27.8) |
Inventories | (105.4) | (65.7) | (124) |
Accounts payable and accrued liabilities | (63.5) | 192.5 | 93.8 |
Income taxes | 43.2 | (157.8) | 293.7 |
Prepaid expenses and other current assets | (6.8) | 15.7 | (9.9) |
Other | 16.2 | 1.4 | 8.4 |
Net cash provided by operating activities | 1,179.4 | 926.8 | 1,000.7 |
Cash flows from investing activities | |||
Capital expenditures | (254.4) | (238.7) | (168.1) |
Deposit of cash in escrow | 0 | 0 | (25) |
Purchases of held-to-maturity investments (Note 7) | (130.2) | (210) | (804.9) |
Proceeds from sales and maturities of held-to-maturity investments (Note 7) | 50 | 578.1 | 654.7 |
Purchases of available-for-sale investments (Note 7) | (437.9) | (249.3) | (529.8) |
Proceeds from sales and maturities of available-for-sale investments (Note 7) | 359.9 | 223.2 | 448.7 |
Acquisitions (Notes 8 and 9) | (100.2) | 0 | (192.9) |
Payment for acquisition option | (35) | 0 | 0 |
Investments in intangible assets and in-process research and development | (24) | (3) | (7.4) |
Other | (24) | (23.6) | (22.5) |
Net cash (used in) provided by investing activities | (595.8) | 76.7 | (647.2) |
Cash flows from financing activities | |||
Proceeds from issuance of debt | 18.9 | 688 | 994.7 |
Payments on debt and finance lease obligations | (28.9) | (1,125.3) | (818.4) |
Purchases of treasury stock | (263.3) | (795.5) | (763.3) |
Proceeds from stock plans | 160.5 | 147 | 113.8 |
Payment of contingent consideration | 0 | (15.1) | 0 |
Other | (2.8) | (0.3) | 0 |
Net cash used in financing activities | (115.6) | (1,101.2) | (473.2) |
Effect of currency exchange rate changes on cash and cash equivalents | (3) | (6.5) | 7.9 |
Net increase (decrease) in cash and cash equivalents | 465 | (104.2) | (111.8) |
Cash and cash equivalents at beginning of year | 714.1 | 818.3 | 930.1 |
Cash and cash equivalents at end of year | $ 1,179.1 | $ 714.1 | $ 818.3 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2016 | 242.6 | 31 | ||||
Beginning balance at Dec. 31, 2016 | $ 2,619 | $ 242.6 | $ (2,499.3) | $ 1,167.8 | $ 3,906.3 | $ (198.4) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 583.6 | 583.6 | ||||
Other comprehensive income, net of tax | 65.7 | 65.7 | ||||
Common stock issued under equity plans, including tax benefits (in shares) | 3 | |||||
Common stock issued under equity plans | 113.8 | $ 3 | 110.8 | |||
Stock-based compensation expense | 61.6 | 61.6 | ||||
Stock issued to acquire business (in shares) | (2.8) | |||||
Shares issued in payment for contingent consideration liabilities | 266.5 | $ 264.3 | 2.2 | |||
Purchases of treasury stock (in shares) | 7.7 | |||||
Purchases of treasury stock | (763.3) | $ (763.3) | ||||
Retirement of treasury stock (in shares) | (33.6) | (33.6) | ||||
Retirement of treasury stock | 0 | $ (33.6) | $ 2,746.2 | (175.5) | (2,537.1) | |
Ending balance (in shares) at Dec. 31, 2017 | 212 | 2.3 | ||||
Ending balance at Dec. 31, 2017 | 2,956.2 | $ 212 | $ (252.1) | 1,166.9 | 1,962.1 | (132.7) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 722.2 | 722.2 | ||||
Other comprehensive income, net of tax | 2 | 2 | ||||
Common stock issued under equity plans, including tax benefits (in shares) | 3.2 | |||||
Common stock issued under equity plans | 147 | $ 3.2 | 143.8 | |||
Stock-based compensation expense | 71 | 71 | ||||
Stock issued to acquire business (in shares) | (0.3) | |||||
Shares issued in payment for contingent consideration liabilities | 34.9 | $ 32.2 | 2.7 | |||
Purchases of treasury stock (in shares) | 5.5 | |||||
Purchases of treasury stock | (795.5) | $ (795.5) | ||||
Retirement of treasury stock | $ 0 | |||||
Ending balance (in shares) at Dec. 31, 2018 | 215.2 | 7.5 | ||||
Ending balance at Dec. 31, 2018 | 3,140.4 | $ 215.2 | $ (1,015.4) | 1,384.4 | 2,694.7 | (138.5) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 1,046.9 | 1,046.9 | ||||
Other comprehensive income, net of tax | (17.5) | (17.5) | ||||
Common stock issued under equity plans, including tax benefits (in shares) | 2.9 | |||||
Common stock issued under equity plans | 160.5 | $ 2.9 | 157.6 | |||
Stock-based compensation expense | 81.3 | 81.3 | ||||
Purchases of treasury stock (in shares) | 1.5 | |||||
Purchases of treasury stock | (263.3) | $ (263.3) | ||||
Retirement of treasury stock | $ 0 | |||||
Ending balance (in shares) at Dec. 31, 2019 | 218.1 | 9 | ||||
Ending balance at Dec. 31, 2019 | $ 4,148.3 | $ 218.1 | $ (1,278.7) | $ 1,623.3 | $ 3,741.6 | $ (156) |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS Edwards Lifesciences Corporation ("Edwards Lifesciences" or the "Company") conducts operations worldwide and is managed in the following geographical regions: United States, Europe, Japan, and Rest of World. Edwards Lifesciences is focused on technologies that treat structural heart disease and critically ill patients. The products and technologies provided by Edwards Lifesciences are categorized into the following main areas: Transcatheter Aortic Valve Replacement, Transcatheter Mitral and Tricuspid Therapies, Surgical Structural Heart, and Critical Care. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements include the accounts of Edwards Lifesciences and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company reviews its investments in other entities to determine whether the Company is the primary beneficiary of a variable interest entity ("VIE"). The Company would be the primary beneficiary of the VIE, and would be required to consolidate the VIE, if it has the power to direct the significant activities of the entity and the obligation to absorb losses or receive benefits from the entity that may be significant to the VIE. Based on the Company's analysis, it determined it is not the primary beneficiary of any VIEs; however, future events may require VIEs to be consolidated if the Company becomes the primary beneficiary. Use of Estimates The consolidated financial statements of Edwards Lifesciences have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") which have been applied consistently in all material respects. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. Foreign Currency Translation When the local currency of the Company's foreign entities is the functional currency, all assets and liabilities are translated into United States dollars at the rate of exchange in effect at the balance sheet date. Income and expense items are translated at the weighted-average exchange rate prevailing during the period. The effects of foreign currency translation adjustments for these entities are deferred and reported in stockholders' equity as a component of " Accumulated Other Comprehensive Loss ." The effects of foreign currency transactions denominated in a currency other than an entity's functional currency are included in " Other (Income) Expense, net. " Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those products or services. The Company generates nearly all of its revenue from direct product sales and sales of products under consignment arrangements. Revenue from direct product sales is recognized at a point in time when the performance obligation is satisfied upon delivery of the product. Revenue from sales of consigned inventory is recognized at a point in time when the performance obligation is satisfied once the product has been implanted or used by the customer. The Company periodically reviews consignment inventories to confirm the accuracy of customer reporting. The Company also generates a small portion of its revenue from service contracts, and recognizes revenue from service contracts ratably over the term of the contracts. Sales taxes and other similar taxes that the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company does not typically have any significant unusual payment terms beyond 90 days in its contracts with customers. In addition, the Company receives royalty payments for the licensing of certain intellectual property and recognizes the royalty when the subsequent sale of product using the intellectual property occurs. The amount of consideration the Company ultimately receives varies depending upon the return terms, sales rebates, discounts, and other incentives that the Company may offer, which are accounted for as variable consideration when estimating the amount of revenue to recognize. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely upon an assessment of historical payment experience, historical relationship to revenues, estimated customer inventory levels, and current contract sales terms with direct and indirect customers. The Company's sales adjustment related to distributor rebates given to the Company's United States distributors represents the difference between the Company's sales price to the distributor and the negotiated price to be paid by the end-customer. This distributor rebate is recorded as a reduction to sales and a reduction to the distributor's accounts receivable at the time of sale to a distributor. The Company periodically monitors current pricing trends and distributor inventory levels to ensure the credit for future distributor rebates is fairly stated. The Company also offers volume rebates to certain group purchasing organizations ("GPOs") and customers based upon target sales levels. Volume rebates offered to GPOs are recorded as a reduction to sales and an obligation to the GPOs, as the Company expects to pay in cash. Volume rebates offered to customers are recorded as a reduction to sales and either accounts receivable if the Company expects a net payment from the customer, or as an obligation to the customer if the Company expects to pay in cash. The provision for volume rebates is estimated based on customers' contracted rebate programs, projected sales levels, and historical experience of rebates paid. The Company periodically monitors its customer rebate programs to ensure that the allowance and liability for accrued rebates is fairly stated. Product returns are typically not significant because returns are generally not allowed unless the product is damaged at time of receipt. In limited circumstances, the Company may allow customers to return previously purchased products, such as for next-generation product offerings. For these transactions, the Company defers recognition of revenue on the sale of the earlier generation product based upon an estimate of the amount of product to be returned when the next-generation products are shipped to the customer. The Company sells separately priced service contracts, which range from 12 months to 36 months, to owners of its hemodynamic monitors. The Company invoices the customer the total amount of consideration at the inception of the contract and recognizes revenue ratably over the term of the contract. As of December 31, 2019 and December 31, 2018 , $8.4 million and $7.6 million , respectively, of deferred revenue associated with outstanding service contracts was recorded in “ Accrued and Other Liabilities ” and " Other Long-term Liabilities. " During 2019 , the Company recognized as revenue $5.5 million that was included in the balance of deferred revenue as of December 31, 2018 , and during 2018 , the Company recognized as revenue $2.9 million that was included in the balance of deferred revenue as of December 31, 2017 . A limited number of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the transaction price is allocated to each performance obligation based on its relative standalone selling price charged to other customers. The Company applies the optional exemption of not disclosing the amount of the transaction price allocated to unsatisfied performance obligations for contracts with an original expected duration of one year or less. Shipping and Handling Costs Shipping costs, which are costs incurred to physically move product from the Company's premises or third party distribution centers, including storage, to the customer's premises, are included in " Selling, General, and Administrative Expenses ." Handling costs, which are costs incurred to store at the Company's premises, move, and prepare products for shipment, are included in " Cost of Sales ." For the years ended December 31, 2019 , 2018 , and 2017 , shipping costs of $71.5 million , $70.6 million , and $72.6 million , respectively, were included in " Selling, General, and Administrative Expenses ." Cash Equivalents The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. These investments are valued at cost, which approximates fair value. Investments The Company invests its excess cash in fixed-rate debt securities, including time deposits, commercial paper, U.S. government and agency securities, asset-backed securities, corporate debt securities, and municipal debt securities. Investments with maturities of one year or less are classified as short-term, and investments with maturities greater than one year are classified as long-term. Investments that the Company has the ability and intent to hold until maturity are classified as held-to-maturity and carried at amortized cost. Investments in debt securities that are classified as available-for-sale are carried at fair value with unrealized gains and losses included in " Accumulated Other Comprehensive Loss ." The Company determines the appropriate classification of its investments in fixed-rate debt securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company also has long-term equity investments in companies that are in various stages of development. These investments are reported at fair value or under the equity method of accounting, as appropriate. Equity investments that do not have readily determinable fair values are recorded at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The Company accounts for investments in limited partnerships and limited liability corporations, whereby the Company owns a minimum of 5% of the investee's outstanding voting stock, under the equity method of accounting. These investments are recorded at the amount of the Company's investment and adjusted each period for the Company's share of the investee's income or loss, and dividends paid. Realized gains and losses on investments that are sold are determined using the specific identification method, or the first-in, first-out method, depending on the investment type, and recorded to " Other (Income) Expense, net ." Income relating to investments in fixed-rate debt securities is recorded to " Interest Income. " The Company periodically reviews its investments for impairment. When the fair value of an investment declines below cost, management uses the following criteria to determine if such a decline should be considered other-than-temporary and result in a recognized loss: • the duration and extent to which the market value has been less than cost; • the financial condition and near term prospects of the investee/issuer; • the reasons for the decline in market value; • the Company's ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value; and • the investee's performance against product development milestones. Allowance for Doubtful Accounts The Company records allowances for doubtful accounts based on customer-specific analysis and general matters such as current assessments of past due balances and economic conditions. When evaluating its allowances for doubtful accounts related to receivables from customers in certain European countries that have historically paid beyond the stated terms, the Company's analysis considers a number of factors, including evidence of the customer's ability to comply with credit terms, economic conditions, and procedures implemented by the Company to collect the historical receivables. Additional allowances for doubtful accounts may be required if there is deterioration in past due balances, if economic conditions are less favorable than the Company has anticipated, or for customer-specific circumstances, such as financial difficulty. The allowance for doubtful accounts related to both short-term and long-term receivables was $14.7 million and $13.6 million at December 31, 2019 and 2018 , respectively. Inventories Inventories are stated at the lower of cost (first-in, first-out method) or market value. Market value for raw materials is based on replacement costs, and for other inventory classifications is based on net realizable value. A write-down for excess or slow moving inventory is recorded for inventory which is obsolete, nearing its expiration date (generally triggered at six months prior to expiration), is damaged, or slow moving (generally defined as quantities in excess of a two -year supply). The allowance for excess and slow moving inventory was $42.6 million and $30.3 million at December 31, 2019 and 2018 , respectively. The Company allocates to inventory general and administrative costs that are related to the production process. These costs include insurance, manufacturing accounting personnel, human resources personnel, and information technology. During the years ended December 31, 2019 , 2018 , and 2017 , the Company allocated $56.6 million , $45.0 million , and $39.3 million , respectively, of general and administrative costs to inventory. General and administrative costs included in inventory at December 31, 2019 and 2018 were $22.8 million and $18.3 million , respectively. At December 31, 2019 and 2018 , $128.7 million and $106.5 million , respectively, of the Company's finished goods inventories were held on consignment. Property, Plant, and Equipment Property, plant, and equipment are recorded at cost. Depreciation is principally calculated for financial reporting purposes on the straight-line method over the estimated useful lives of the related assets, which range from 10 to 40 years for buildings and improvements, from 3 to 15 years for machinery and equipment, and from 3 to 5 years for software. Leasehold improvements are amortized over the life of the related facility leases or the asset, whichever is shorter. Straight-line and accelerated methods of depreciation are used for income tax purposes. Construction in progress is not depreciated until the asset is ready for its intended use and placed into service. Depreciation expense for property, plant, and equipment was $84.7 million , $74.9 million , and $74.1 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Impairment of Goodwill and Long-lived Assets Goodwill is reviewed for impairment annually in the fourth quarter of each fiscal year, or whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, then the Company performs a quantitative impairment test. The Company determined, after performing a qualitative review of each reporting unit, that it is more likely than not that the fair value of each of its reporting units substantially exceeds the respective carrying amounts. Accordingly, in 2019 , 2018 , and 2017 , the Company did not record any impairment loss. Indefinite-lived intangible assets relate to in-process research and development acquired in business combinations. The estimated fair values of in-process research and development projects acquired in a business combination which have not reached technological feasibility are capitalized and accounted for as indefinite-lived intangible assets subject to impairment testing until completion or abandonment of the projects. Upon successful completion of the project, the capitalized amount is amortized over its estimated useful life. If the project is abandoned, all remaining capitalized amounts are written off immediately. Indefinite-lived intangible assets are reviewed for impairment annually, or whenever an event occurs or circumstances change that would indicate the carrying amount may be impaired. An impairment loss is recognized when the asset's carrying value exceeds its fair value. In-process research and development projects acquired in an asset acquisition are expensed unless the project has an alternative future use. Management reviews the carrying amounts of other finite-lived intangible assets and long-lived tangible assets whenever events or circumstances indicate that the carrying amounts of an asset may not be recoverable. Impairment indicators include, among other conditions, cash flow deficits, historic or anticipated declines in revenue or operating profit, and adverse legal or regulatory developments. If it is determined that such indicators are present and the review indicates that the assets will not be fully recoverable, based on undiscounted estimated cash flows over the remaining amortization periods, their carrying values are reduced to estimated fair market value. Estimated fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. For the purposes of identifying and measuring impairment, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. In 2019 , the Company recorded a $40.6 million charge related to the impairment of certain in-process research and development assets. In 2018 , the Company recorded a $116.2 million charge related to the impairment of certain developed technology and in-process research and development assets. See Note 4 for further information. In 2017 , the Company did not record any impairment loss related to its in-process research and development assets. Income Taxes The Company is subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment is required in evaluating the Company's uncertain tax positions and determining its provision for income taxes. The Company recognizes the financial statement benefit of a tax position only after determining that a position would more likely than not be sustained based upon its technical merit if challenged by the relevant taxing authority and taken by management to the court of last resort. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon settlement with the relevant tax authority. The Company recognizes interest and penalties related to income tax matters in income tax expense. The Company has made an accounting policy election to recognize the U.S. tax effects of global intangible low-taxed income as a component of income tax expense in the period the tax arises. Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns. The Company evaluates quarterly the realizability of its deferred tax assets by assessing its valuation allowance and adjusting the amount, if necessary. The factors used to assess the likelihood of realization are both historical experience and the Company's forecast of future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. Failure to achieve forecasted taxable income in the applicable taxing jurisdictions could affect the ultimate realization of deferred tax assets and could result in an increase in the Company's effective tax rate on future earnings. Research and Development Costs Research and development costs are charged to expense when incurred. Earnings per Share Basic earnings per share is computed by dividing net income by the weighted-average common shares outstanding during a period. Diluted earnings per share is computed based on the weighted-average common shares outstanding plus the effect of dilutive potential common shares outstanding during the period calculated using the treasury stock method. Dilutive potential common shares include employee equity share options, nonvested shares, and similar equity instruments granted by the Company. Potential common share equivalents have been excluded where their inclusion would be anti-dilutive. The table below presents the computation of basic and diluted earnings per share (in millions, except for per share information): Years Ended December 31, 2019 2018 2017 Basic: Net income $ 1,046.9 $ 722.2 $ 583.6 Weighted-average shares outstanding 208.3 209.2 210.9 Basic earnings per share $ 5.03 $ 3.45 $ 2.77 Diluted: Net income $ 1,046.9 $ 722.2 $ 583.6 Weighted-average shares outstanding 208.3 209.2 210.9 Dilutive effect of stock plans 3.9 4.4 5.0 Dilutive weighted-average shares outstanding 212.2 213.6 215.9 Diluted earnings per share $ 4.93 $ 3.38 $ 2.70 Stock options, restricted stock units, and market-based restricted stock units to purchase approximately 0.5 million , 1.1 million , and 1.9 million shares for the years ended December 31, 2019 , 2018 , and 2017 , respectively, were outstanding, but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. Stock-based Compensation The Company measures and recognizes compensation expense for all stock-based awards based on estimated fair values. Stock-based awards consist of stock options, restricted stock units (service-based, market-based, and performance-based), and employee stock purchase subscriptions. Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period (vesting period) on a straight-line basis. For performance-based restricted stock units, the Company recognizes stock-based compensation expense if and when the Company concludes that it is probable that the performance condition will be achieved, net of estimated forfeitures. The Company reassesses the probability of vesting at each quarter end and adjusts the stock-based compensation expense based on its probability assessment. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Upon exercise of stock options or vesting of restricted stock units, the Company issues common stock. Total stock-based compensation expense was as follows (in millions): Years Ended December 31, 2019 2018 2017 Cost of sales $ 14.7 $ 11.4 $ 9.2 Selling, general, and administrative expenses 51.2 46.3 40.7 Research and development expenses 15.4 13.3 11.7 Total stock-based compensation expense $ 81.3 $ 71.0 $ 61.6 Upon a participant's retirement, all unvested stock options and performance-based restricted stock units are immediately forfeited. In addition, upon retirement, a participant will immediately vest in 25% of service-based restricted stock units for each full year of employment with the Company measured from the grant date. All remaining unvested service-based restricted stock units are immediately forfeited. For market-based restricted stock units, upon retirement and in certain other specified cases, a participant will receive a pro-rated portion of the shares that would ultimately be issued based on attainment of the performance goals as determined on the vesting date. The pro-rated portion is based on the participant's whole months of service with the Company during the performance period prior to the date of termination. Derivatives The Company uses derivative financial instruments to manage interest rate and foreign currency risks. It is the Company's policy not to enter into derivative financial instruments for speculative purposes. Derivative financial instruments involve credit risk in the event the counterparty should default. It is the Company's policy to execute such instruments with global financial institutions that the Company believes to be creditworthy. The Company diversifies its derivative financial instruments among counterparties to minimize exposure to any one of these entities. The Company also uses International Swap Dealers Association master-netting agreements. The master-netting agreements provide for the net settlement of all contracts through a single payment in a single currency in the event of default, as defined by the agreements. The Company uses foreign currency forward exchange contracts, cross currency swap contracts, and foreign currency denominated debt to manage its exposure to changes in currency exchange rates from (1) future cash flows associated with intercompany transactions and certain local currency expenses expected to occur within the next 13 months (designated as cash flow hedges), (2) its net investment in certain foreign subsidiaries (designated as net investment hedges) and (3) foreign currency denominated assets or liabilities (designated as fair value hedges). The Company also uses foreign currency forward exchange contracts that are not designated as hedging instruments to offset the transaction gains and losses associated with certain assets and liabilities denominated in currencies other than their functional currencies resulting principally from intercompany and local currency transactions. The Company at times has used interest rate swaps to convert a portion of its fixed-rate debt into variable-rate debt. These interest rate swaps were designated as fair value hedges and met the shortcut method requirements under the accounting standards for derivatives and hedging. Accordingly, changes in the fair values of the interest rate swaps were considered to exactly offset changes in the fair value of the underlying long-term debt. All derivative financial instruments are recognized at fair value in the consolidated balance sheets. For each derivative instrument that is designated as a fair value hedge, the gain or loss on the derivative included in the assessment of hedge effectiveness is recognized immediately to earnings, and offsets the loss or gain on the underlying hedged item. The Company reports in " Accumulated Other Comprehensive Loss " the gain or loss on derivative financial instruments that are designated, and that qualify, as cash flow hedges. The Company reclassifies these gains and losses into earnings in the same line item and in the same period in which the underlying hedged transactions affect earnings. Changes in the fair value of net investment hedges are reported in " Accumulated Other Comprehensive Loss " as a part of the cumulative translation adjustment and would be reclassified into earnings if the underlying net investment is sold or substantially liquidated. The portion of the change in fair value related to components excluded from the hedge effectiveness assessment are amortized into earnings over the life of the derivative. The gains and losses on derivative financial instruments for which the Company does not elect hedge accounting treatment are recognized in the consolidated statements of operations in each period based upon the change in the fair value of the derivative financial instrument. Cash flows from net investment hedges are reported as investing activities in the consolidated statements of cash flows, and cash flows from all other derivative financial instruments are reported as operating activities. Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued an amendment to the guidance on leases. The amendment improves transparency and comparability among companies by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. The guidance was effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach was required upon adoption. Reporting entities could elect to adjust comparative periods and record the cumulative effect adjustment at the beginning of the earliest comparative period, or to not adjust comparative periods and record the cumulative effect adjustment at the effective date. The Company adopted the new guidance as of the effective date of January 1, 2019 with no adjustments to the comparative period presented in the financial statements. In addition, the Company elected the package of practical expedients permitted under the transition guidance to not reassess (1) whether any expired or existing contracts are, or contain, leases, (2) the lease classification for expired or existing leases, and (3) initial direct costs for existing leases. The Company implemented internal controls and system solutions to enable the preparation and disclosure of financial information about its leasing arrangements upon adoption. The adoption of the guidance resulted in the recognition of right-of-use assets and additional lease liabilities for operating leases of $58.7 million as of January 1, 2019. The guidance did not have an impact on the Company's consolidated statements of operations. See Note 6 for disclosures related to the Company's leases. New Accounting Standards Not Yet Adopted In January 2020, the FASB issued an amendment clarifying the interaction between accounting standards related to equity securities, equity method investments, and certain derivatives. The guidance is effective for fiscal years beginning after December 15, 2020. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial statements. In December 2019, the FASB issued an amendment to the guidance on income taxes which is intended to simplify the accounting for income taxes. The amendment eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The amendment also clarifies existing guidance related to the recognition of franchise tax, the evaluation of a step up in the tax basis of goodwill, and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact the guidance will have on its consolidated financial statements. In August 2018, the FASB issued an amendment to the accounting guidance on cloud computing service arrangements. The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance also requires an entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial statements. In August 2018, the FASB issued an amendment to the accounting guidance on retirement benefits. The guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The guidance is effective for fiscal years ending after December 15, 2020 and must be applied retrospectively to all periods presented. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial statements. In August 2018, the FASB issued an amendment to the accounting guidance on fair value measurements. The guidance modifies the disclosure requirements on fair value measurements, including the removal of disclosures of the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The guidance also adds certain disclosure requirements related to Level 3 fair value measurements. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after Decemb |
INTELLECTUAL PROPERTY LITIGATIO
INTELLECTUAL PROPERTY LITIGATION EXPENSES (INCOME), NET | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
INTELLECTUAL PROPERTY LITIGATION EXPENSES (INCOME), NET | INTELLECTUAL PROPERTY LITIGATION EXPENSES (INCOME), NET The Company incurred intellectual property litigation expenses, including settlements and external legal costs, of $33.4 million , $214.0 million and $39.2 million during 2019 , 2018 and 2017 , respectively. In January 2019, the Company reached an agreement with Boston Scientific Corporation ("Boston Scientific") to settle all outstanding patent disputes for a one-time payment to Boston Scientific of $180.0 million , which was included as an expense in 2018. The settlement covers alleged past damages and no further royalties will be owed by either party. In November 2017, the Company recorded a $112.5 million litigation gain related to the theft of trade secrets. |
SPECIAL CHARGES
SPECIAL CHARGES | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
SPECIAL CHARGES | SPECIAL CHARGES Impairment of Long-lived Assets In December 2019, the Company recorded a charge of $40.6 million related to the impairment of certain in-process research and development assets, and in December 2018, the Company recorded a charge of $116.2 million related to the impairment of certain developed technology and in-process research and development assets. These assets were acquired as part of the acquisition of Valtech Cardio Ltd. ("Valtech"). The Company measured the amount of the impairments by calculating the amount by which the carrying values exceeded the estimated fair values, which were based on projected discounted future net cash flows. Based on market and clinical trial developments at the time of the impairments, the Company re-evaluated the clinical development plans for the technologies acquired from Valtech, which resulted in a reduction to the projected near-term discounted future net cash flows related to the acquired mitral technology for the 2018 charge, and related to the acquired mitral and tricuspid technology for the 2019 charge. The impairments were recorded to the Company’s Rest of World segment. In June 2017, the Company recorded a $31.2 million charge related to the impairment of one of its cost method investments and an associated long-term asset related to the Company's option to acquire this investee. The Company concluded that the impairment of these assets was other-than-temporary based upon a recent review of the investee's clinical data and trial results, which did not support continuation of the product development effort, and the financial condition and near-term prospects of the investee. Acquisition of Intellectual Property In March 2019, the Company recorded a $24.0 million charge related to the acquisition of early-stage transcatheter intellectual property and associated clinical and regulatory experience. Charitable Foundation Contribution In December 2017, the Company contributed $25.0 million to the Edwards Lifesciences Foundation, a related-party not-for-profit organization whose mission is to support health- and community-focused charitable organizations. The contribution was irrevocable and was recorded as an expense at the time of payment. Gain on Step Acquisition In December 2017, the Company acquired Harpoon Medical, Inc. As a result of the acquisition, the Company remeasured at fair value its previously held ownership in Harpoon Medical, Inc. and recognized a gain of $6.5 million . See Note 8 for further information. Realignment Expenses In March 2018, the Company recorded a $7.1 million gain related to the curtailment of its defined benefit plan in Switzerland resulting from the closure of its manufacturing plant. In September 2017, the Company recorded a $10.2 million charge related primarily to severance expenses (impacting 232 employees) and other costs associated with the planned closure of its manufacturing plant in Switzerland. As of December 31, 2019 , payments related to the realignment were complete. |
OTHER CONSOLIDATED FINANCIAL S
OTHER CONSOLIDATED FINANCIAL STATEMENT DETAILS | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OTHER CONSOLIDATED FINANCIAL STATEMENT DETAILS | OTHER CONSOLIDATED FINANCIAL STATEMENT DETAILS Composition of Certain Financial Statement Captions Components of selected captions in the consolidated balance sheets are as follows: As of December 31, 2019 2018 (in millions) Accounts receivable, net Trade accounts receivable $ 552.3 $ 465.8 Allowance for doubtful accounts (8.7 ) (8.9 ) $ 543.6 $ 456.9 Inventories Raw materials $ 118.0 $ 111.5 Work in process 121.7 144.8 Finished products 401.2 350.7 $ 640.9 $ 607.0 Property, plant, and equipment, net Land $ 98.0 $ 90.7 Buildings and leasehold improvements 619.8 497.4 Machinery and equipment 466.3 432.4 Equipment with customers 35.6 41.1 Software 87.9 92.4 Construction in progress 265.0 168.8 1,572.6 1,322.8 Accumulated depreciation (512.3 ) (455.3 ) $ 1,060.3 $ 867.5 Accrued and other liabilities Employee compensation and withholdings $ 295.8 $ 226.1 Litigation and insurance reserves (Note 18) 20.0 196.7 Taxes payable 52.9 31.3 Accrued rebates 67.1 80.0 Property, payroll, and other taxes 51.4 39.5 Research and development accruals 51.4 48.9 Fair value of derivatives 6.4 4.4 Accrued marketing expenses 17.5 22.3 Accrued professional services 10.1 11.0 Accrued realignment reserves 16.7 6.8 Accrued relocation costs 17.4 11.3 Other accrued liabilities 89.8 64.3 $ 696.5 $ 742.6 In 2019, the Company recorded a $73.1 million charge to " Cost of Sales ," primarily comprised of the write off of inventory related to strategic decisions regarding its transcatheter aortic valve portfolio, including the decision to discontinue its CENTERA program. Supplemental Cash Flow Information (in millions) Years Ended December 31, 2019 2018 2017 Cash paid during the year for: Interest $ 19.9 $ 30.1 $ 19.9 Income taxes $ 61.5 $ 223.7 $ 143.7 Amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 28.6 $ — $ — Non-cash investing and financing transactions: Fair value of shares issued in payment for contingent consideration liabilities (Note 11) $ — $ 34.3 $ — Fair value of shares issued in connection with business combinations (Note 8) $ — $ — $ 266.5 Right-of-use assets obtained in exchange for new lease liabilities $ 49.6 $ — $ — Capital expenditures accruals $ 50.8 $ 18.7 $ 21.6 Retirement of treasury stock $ — $ — $ 2,746.2 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company determines whether a contract is, or contains, a lease at inception. Right-of-use assets represent the Company’s right to use an underlying asset during the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at lease commencement in determining the present value of unpaid lease payments. The Company's incremental borrowing rate is determined based on the estimated rate of interest for collateralized borrowing over a similar term as the associated lease. Right-of-use assets also include any lease payments made at or before lease commencement and any initial direct costs incurred, and exclude any lease incentives received. The Company determines the lease term as the noncancellable period of the lease, and may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Leases with a term of 12 months or less are not recognized on the balance sheet. Certain of the Company’s leases include variable lease payments that are based on costs incurred or actual usage, or adjusted periodically based on an index or a rate. The Company’s leases do not contain any residual value guarantees. The Company accounts for the lease and non-lease components as a single lease component for all of its leases except vehicle leases, for which the lease and non-lease components are accounted for separately. Operating leases are included in “ Operating Lease Right-of-Use Assets ” and “ Operating Lease Liabilities ” on the Company’s consolidated condensed balance sheets. The Company leases certain office space, manufacturing facilities, land, apartments, warehouses, vehicles, and equipment with remaining lease terms ranging from less than 1 year to 21 years , some of which include options to extend or terminate the leases. Operating lease costs for the year ended December 31, 2019 were $27.9 million . Short-term and variable lease costs were not material for the year ended December 31, 2019 . Supplemental balance sheet information related to operating leases was as follows (in millions, except lease term and discount rate): December 31, Operating lease right-of-use assets $ 80.1 Operating lease liabilities, current portion $ 25.5 Operating lease liabilities, long-term portion 58.9 Total operating lease liabilities $ 84.4 Maturities of operating lease liabilities at December 31, 2019 were as follows (in millions): 2020 $ 27.4 2021 20.0 2022 14.2 2023 10.1 2024 5.6 Thereafter 14.5 Total lease payments 91.8 Less: imputed interest (7.4 ) Total lease liabilities $ 84.4 Weighted-average remaining lease term (in years) 5.3 Weighted-average discount rate 2.8 % As of December 31, 2019 , the Company had additional operating lease commitments of $1.6 million for office space that have not yet commenced. These leases will commence during 2020 with lease terms of 6 months to 7 years. Disclosures related to periods prior to adopting the new lease guidance Certain facilities and equipment are leased under operating leases expiring at various dates. Most of the operating leases contain renewal options. Total expense for all operating leases was $27.0 million and $27.3 million for the years 2018 and 2017 , respectively. Future minimum lease payments (including interest) under non-cancelable operating leases at December 31, 2018 were as follows (in millions): Operating 2019 $ 25.6 2020 21.5 2021 13.5 2022 9.9 2023 6.4 Thereafter 14.3 Total obligations and commitments $ 91.2 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS Debt Securities Investments in debt securities at the end of each period were as follows (in millions): December 31, 2019 December 31, 2018 Held-to-maturity Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Bank time deposits $ 100.2 $ — $ — $ 100.2 $ 20.0 $ — $ — $ 20.0 Available-for-sale Bank time deposits $ 13.1 $ — $ — $ 13.1 $ — $ — $ — $ — Commercial paper 34.3 — — 34.3 56.7 — — 56.7 U.S. government and agency securities 113.2 0.6 — 113.8 79.7 0.2 (0.7 ) 79.2 Foreign government bonds 1.7 — — 1.7 1.7 — — 1.7 Asset-backed securities 141.2 0.6 (0.1 ) 141.7 110.6 0.1 (0.5 ) 110.2 Corporate debt securities 487.0 2.3 (0.1 ) 489.2 459.8 0.1 (4.3 ) 455.6 Municipal securities — — — — 2.8 — — 2.8 $ 790.5 $ 3.5 $ (0.2 ) $ 793.8 $ 711.3 $ 0.4 $ (5.5 ) $ 706.2 The cost and fair value of investments in debt securities, by contractual maturity, as of December 31, 2019 were as follows: Held-to-Maturity Available-for-Sale Cost Fair Value Cost Fair Value (in millions) Due in 1 year or less $ 100.2 $ 100.2 $ 237.2 $ 237.6 Due after 1 year through 5 years — — 439.1 441.7 Instruments not due at a single maturity date — — 114.2 114.5 $ 100.2 $ 100.2 $ 790.5 $ 793.8 Actual maturities may differ from the contractual maturities due to call or prepayment rights. The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2019 and 2018 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in millions): December 31, 2019 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Asset-backed securities 73.4 (0.1 ) — — 73.4 (0.1 ) Corporate debt securities 81.4 (0.1 ) — — 81.4 (0.1 ) $ 154.8 $ (0.2 ) $ — $ — $ 154.8 $ (0.2 ) December 31, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. government and agency securities $ 0.7 $ (0.1 ) $ 56.5 $ (0.6 ) $ 57.2 $ (0.7 ) Asset-backed securities 4.0 — 61.3 (0.5 ) 65.3 (0.5 ) Corporate debt securities 177.4 (1.1 ) 203.7 (3.2 ) 381.1 (4.3 ) $ 182.1 $ (1.2 ) $ 321.5 $ (4.3 ) $ 503.6 $ (5.5 ) Investments in Unconsolidated Affiliates The Company has a number of equity investments in privately and publicly held companies. Investments in these unconsolidated affiliates are recorded in " Long-term Investments " on the consolidated balance sheets, and are as follows: December 31, 2019 2018 (in millions) Equity method investments Cost $ 10.7 $ 9.1 Equity in losses (4.5 ) (4.7 ) Carrying value of equity method investments 6.2 4.4 Equity securities Carrying value of non-marketable equity securities 23.1 18.1 Total investments in unconsolidated affiliates $ 29.3 $ 22.5 Non-marketable equity securities consist of investments in privately held companies without readily determinable fair values, and are reported at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The Company recorded an upward adjustment of $0.3 million during 2019 based on observable price changes. As of December 31, 2019 , the Company had recorded accumulated upward adjustments of $2.0 million based on observable price changes, and accumulated downward adjustments of $1.9 million due to impairment and observable price changes. During 2019 , 2018 , and 2017 , the gross realized gains or losses from sales of available-for-sale investments were not material. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS CAS Medical Systems, Inc. On February 11, 2019, the Company entered into an agreement and plan of merger to acquire all the outstanding shares of CAS Medical Systems, Inc. ("CASMED") for an aggregate cash purchase price of $2.45 per share of common stock, or an equity value of approximately $100 million . The transaction closed on April 18, 2019, and the cash purchase price was $100.8 million . Acquisition-related costs of $2.0 million were recorded in “ Selling, General, and Administrative Expenses ” during the year ended December 31, 2019 . CASMED is a medical technology company dedicated to noninvasive monitoring of tissue oxygenation in the brain. The Company plans to integrate the acquired technology platform into its hemodynamic monitoring platform. The acquisition was accounted for as a business combination. Tangible and intangible assets acquired were recorded based on their estimated fair values at the acquisition date. The excess of the purchase price over the fair value of net assets acquired was recorded to goodwill. The following table summarizes the fair values of the assets acquired and liabilities assumed (in millions): Current assets $ 6.1 Property and equipment, net 1.3 Goodwill 64.4 Developed technology 35.9 Customer relationships 8.8 Deferred tax assets 2.2 Liabilities assumed (17.9 ) Total purchase price 100.8 Less: cash acquired (0.6 ) Total purchase price, net of cash acquired $ 100.2 Goodwill includes expected synergies and other benefits the Company believes will result from the acquisition. Goodwill was assigned to the Company’s United States segment and is not deductible for tax purposes. Developed technology assets are being amortized over a weighted-average useful life of 14 years. Customer relationships assets are being amortized over a weighted-average useful life of 10 years. The results of operations for CASMED have been included in the accompanying consolidated financial statements from the date of acquisition. Pro forma results have not been presented as the results of CASMED are not material in relation to the consolidated financial statements of Edwards Lifesciences. Harpoon Medical, Inc. On December 1, 2017, the Company acquired all the outstanding shares of Harpoon Medical, Inc. for an aggregate cash purchase price of $119.5 million , which includes $16.0 million paid previously for a cost method investment and an exclusive option to acquire Harpoon Medical, Inc., and is net of $8.0 million received from the sale of the Company's previous ownership interest. The Company remeasured its previously held ownership in Harpoon Medical, Inc., which had a carrying value at the date of acquisition of $1.5 million and represented approximately 6% of the fully-diluted outstanding shares of Harpoon Medical, Inc., and recognized a gain of $6.5 million in " Special (Gains) Charges, net ." In addition, the Company agreed to pay up to an additional $150.0 million in pre-specified milestone-driven payments over the next 10 years. The Company recognized in " Contingent Consideration Liabilities " a $59.7 million liability for the estimated fair value of the contingent milestone payments. The fair value of the contingent milestone payments are remeasured each quarter, with changes in the fair value recognized within operating expenses on the consolidated statements of operations. For further information on the fair value of the contingent milestone payments, see Note 11. In connection with the acquisition, the Company placed $10.0 million of the purchase price into escrow to satisfy any claims for indemnification made in accordance with the merger agreement. Funds remaining 12 months after the acquisition date were disbursed to Harpoon Medical, Inc.'s former shareholders. Acquisition-related costs of $0.4 million were recorded in “ Selling, General, and Administrative Expenses ” during the year ended December 31, 2017. Harpoon Medical, Inc. is a medical technology company pioneering beating-heart repair for degenerative mitral regurgitation. The Company plans to add this technology to its portfolio of mitral and tricuspid repair products. The acquisition was accounted for as a business combination. Tangible and intangible assets acquired were recorded based on their estimated fair values at the acquisition date. The excess of the purchase price over the fair value of net assets acquired was recorded to goodwill. The following table summarizes the fair values of the assets acquired and liabilities assumed (in millions): Current assets $ 3.6 Property and equipment, net 0.3 Goodwill 142.1 In-process research and development assets 53.1 Other assets 0.1 Current liabilities assumed (0.8 ) Deferred income taxes (12.7 ) Total purchase price 185.7 Less: cash acquired (3.5 ) Total purchase price, net of cash acquired $ 182.2 Goodwill includes expected synergies and other benefits the Company believes will result from the acquisition. Goodwill was assigned to the Company’s United States segment and is not deductible for tax purposes. In-process research and development has been capitalized at fair value as an intangible asset with an indefinite life and will be assessed for impairment in subsequent periods. The fair value of the in-process research and development assets was determined using the income approach. This approach determines fair value based on cash flow projections which are discounted to present value using a risk-adjusted rate of return. The discount rates used to determine the fair value of the in-process research and development assets ranged from 18.0% to 19.0% . Completion of successful design developments, bench testing, pre-clinical studies and human clinical studies are required prior to selling any product. The risks and uncertainties associated with completing development within a reasonable period of time include those related to the design, development, and manufacturability of the product, the success of pre-clinical and clinical studies, and the timing of regulatory approvals. The valuation assumed $41.4 million of additional research and development expenditures would be incurred prior to the date of product introduction. In the valuation, net cash inflows were modeled to commence in Europe in 2018, and in the United States and Japan in 2022. The Company does not currently anticipate significant changes to forecasted research and development expenditures, and net cash inflows are now expected to commence in Europe in 2020. Upon completion of development, the underlying in-process research and development asset will be amortized over its estimated useful life. The results of operations for Harpoon Medical, Inc. have been included in the accompanying consolidated financial statements from the date of acquisition. Pro forma results have not been presented as the results of Harpoon Medical, Inc. are not material in relation to the consolidated financial statements of Edwards Lifesciences. Valtech Cardio Ltd. On November 26, 2016, the Company entered into an agreement and plan of merger to acquire Valtech Cardio Ltd. ("Valtech") for approximately $340.0 million , subject to certain adjustments, with the potential for up to an additional $350.0 million in pre-specified milestone-driven payments over the next 10 years. The transaction closed on January 23, 2017, and the consideration paid included the issuance of approximately 2.8 million shares of the Company's common stock (fair value of $266.5 million ) and cash of $86.2 million . The Company recognized in " Contingent Consideration Liabilities " a $162.9 million liability for the estimated fair value of the contingent milestone payments. For further information on the fair value of the contingent milestone payments, see Note 11. Prior to the close of the transaction, Valtech spun off its early-stage transseptal mitral valve replacement technology program. Concurrent with the closing, the Company entered into an agreement for an exclusive option to acquire that program and its associated intellectual property for approximately $200.0 million , subject to certain adjustments, plus an additional $50.0 million if a certain European regulatory approval is obtained within 10 years of the acquisition closing date. The option expired in January 2020. In-process research and development assets acquired as part of this transaction were capitalized at fair value, which was determined using the income approach. This approach determines fair value based on cash flow projections which are discounted to present value using a risk-adjusted rate of return. The valuation assumed $87.3 million of additional research and development expenditures would be incurred prior to the date of product introduction and that net cash inflows would commence in 2019. In December 2018, the Company recorded a $116.2 million impairment charge related to Valtech's intangible assets, and in December 2019, the Company recorded a $40.6 million impairment charge to write off the remaining in-process research and development assets. For further information, see Note 4. CardiAQ Valve Technologies, Inc. On July 3, 2015, the Company entered into an agreement and plan of merger to acquire CardiAQ Valve Technologies, Inc. ("CardiAQ") for an aggregate cash purchase price of $350.0 million , subject to certain adjustments. The transaction closed on August 26, 2015, and the cash purchase price after the adjustments was $348.0 million . In addition, the Company agreed to pay an additional $50.0 million if a certain European regulatory approval is obtained within 48 months of the acquisition closing date. The Company recognized in " Contingent Consideration Liabilities " a $30.3 million liability for the estimated fair value of this contingent milestone payment. The Company does not expect this milestone to be achieved and reversed the liability in 2018. For further information on the fair value of the contingent milestone payment, see Note 11. In-process research and development assets acquired as part of this acquisition were capitalized at fair value, which was determined using the income approach. This approach determines fair value based on cash flow projections which are discounted to present value using a risk-adjusted rate of return. Completion of successful design developments, bench testing, pre-clinical studies and human clinical studies are required prior to selling any product. The risks and uncertainties associated with completing development within a reasonable period of time include those related to the design, development, and manufacturability of the product, the success of pre-clinical and clinical studies, and the timing of regulatory approvals. The valuation assumed $97.7 million |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and in-process research and development assets resulting from purchase business combinations are not subject to amortization. Other acquired intangible assets with finite lives are amortized over their expected useful lives on a straight-line basis, or if reliably determinable, based on the pattern in which the economic benefit of the asset is expected to be used. The Company expenses costs incurred to renew or extend the term of acquired intangible assets. In April 2019, the Company acquired CASMED. This transaction resulted in an increase to goodwill of $64.4 million and developed technology of $35.9 million . For further information, see Note 8. The changes in the carrying amount of goodwill, by segment, during the years ended December 31, 2019 and 2018 were as follows: United Europe Rest of World Total (in millions) Goodwill at December 31, 2017 $ 709.3 $ 67.2 $ 350.0 $ 1,126.5 Currency translation adjustment — (3.0 ) (11.3 ) (14.3 ) Goodwill at December 31, 2018 709.3 64.2 338.7 1,112.2 Goodwill acquired during the year 64.4 — — 64.4 Currency translation adjustment — (1.4 ) (7.5 ) (8.9 ) Goodwill at December 31, 2019 $ 773.7 $ 62.8 $ 331.2 $ 1,167.7 Other intangible assets consist of the following (in millions): December 31, Weighted-Average Useful Life (in years) 2019 2018 Cost Accumulated Net Cost Accumulated Net Finite-lived intangible assets Patents 7.4 $ 185.7 $ (182.1 ) $ 3.6 $ 185.8 $ (181.2 ) $ 4.6 Developed technology (Note 4) 12.9 153.5 (46.6 ) 106.9 119.8 (44.2 ) 75.6 Other 10.0 12.3 (4.4 ) 7.9 — — — 12.4 351.5 (233.1 ) 118.4 305.6 (225.4 ) 80.2 Indefinite-lived intangible assets In-process research and development (Note 4) 218.1 — 218.1 263.0 — 263.0 $ 569.6 $ (233.1 ) $ 336.5 $ 568.6 $ (225.4 ) $ 343.2 Amortization expense related to other intangible assets for the years ended December 31, 2019 , 2018 , and 2017 was $4.6 million , $2.5 million , and $7.8 million , respectively. Estimated amortization expense for each of the years ending December 31 is as follows (in millions): 2020 $ 7.2 2021 7.6 2022 7.9 2023 9.4 2024 13.1 |
DEBT AND CREDIT FACILITIES
DEBT AND CREDIT FACILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT AND CREDIT FACILITIES | DEBT AND CREDIT FACILITIES In June 2018, the Company issued $600.0 million of fixed-rate unsecured senior notes (the "Notes") due June 15, 2028. Interest is payable semi-annually in arrears, with payments due in June and December of each year. The Company may redeem the Notes, in whole or in part, at any time and from time to time at specified redemption prices. In addition, upon the occurrence of certain change of control triggering events, the Company may be required to repurchase all or a portion of the Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest. The Notes also include covenants that limit the Company's ability to incur secured indebtedness, enter into sale and leaseback transactions, and consolidate, merge, or transfer all or substantially all of its assets. The following is a summary of the Notes as of December 31, 2019 and 2018 : December 31, 2019 2018 Amount Effective Amount Effective (in millions) (in millions) Fixed-rate 4.300% 2018 Notes $ 600.0 4.329 % $ 600.0 4.329 % Unamortized discount (1.2 ) (1.3 ) Unamortized debt issuance costs (4.4 ) (4.9 ) Total carrying amount $ 594.4 $ 593.8 As of December 31, 2019 and 2018 , the fair value of the Notes was $667.6 million and $607.0 million , respectively, based on observable market prices in less active markets and categorized as Level 2 (Note 11). The debt issuance costs, as well as the discount, are being amortized to interest expense over the term of the notes. The Company has a Five -Year Credit Agreement ("the Credit Agreement") which matures on April 28, 2023. The Credit Agreement provides up to an aggregate of $750.0 million in borrowings in multiple currencies. The Company may increase the amount available under the Credit Agreement, subject to agreement of the lenders, by up to an additional $250.0 million in the aggregate. Borrowings generally bear interest at the London interbank offered rate ("LIBOR") plus a spread ranging from 0.9% to 1.3% , depending on the leverage ratio, as defined in the Credit Agreement. The Company also pays a facility fee ranging from 0.1% to 0.2% , depending on the leverage ratio, on the entire credit commitment available, whether drawn or not. The facility fee is expensed as incurred. During 2019 , the spread over LIBOR was 0.9% and the facility fee was 0.1% . Issuance costs of $2.4 million are being amortized to interest expense over the term of the Credit Agreement. As of December 31, 2019 and 2018 , there were no borrowings outstanding under the Credit Agreement. All amounts outstanding under the Credit Agreement have been classified as long-term obligations in accordance with the terms of the Credit Agreement. The Credit Agreement is unsecured and contains various financial and other covenants, including a maximum leverage ratio, as defined in the Credit Agreement. The Company was in compliance with all covenants at December 31, 2019 . The weighted-average interest rate under all debt obligations was 3.4% and 3.4% at December 31, 2019 and 2018 , respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The consolidated financial statements include financial instruments for which the fair market value of such instruments may differ from amounts reflected on a historical cost basis. Financial instruments of the Company consist of cash deposits, accounts and other receivables, investments, accounts payable, certain accrued liabilities, and borrowings under a revolving credit agreement. The carrying value of these financial instruments generally approximates fair value due to their short-term nature. Financial instruments also include notes payable. See Note 10 for further information on the fair value of the notes payable. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Company prioritizes the inputs used to determine fair values in one of the following three categories: Level 1—Quoted market prices in active markets for identical assets or liabilities. Level 2—Inputs, other than quoted prices in active markets, that are observable, either directly or indirectly. Level 3—Unobservable inputs that are not corroborated by market data. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table summarizes the Company's financial instruments which are measured at fair value on a recurring basis as of December 31, 2019 and 2018 (in millions): December 31, 2019 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 0.7 $ 31.7 $ — $ 32.4 Available-for-sale investments: Bank time deposits — 13.1 — 13.1 Corporate debt securities — 489.2 — 489.2 Asset-backed securities — 141.7 — 141.7 U.S. government and agency securities 76.1 37.7 — 113.8 Foreign government bonds — 1.7 — 1.7 Commercial paper — 34.3 — 34.3 Investments held for deferred compensation plans 88.9 — — 88.9 Derivatives — 30.7 — 30.7 $ 165.7 $ 780.1 $ — $ 945.8 Liabilities Derivatives $ — $ 6.4 $ — $ 6.4 Deferred compensation plans 88.7 — — 88.7 Contingent consideration liabilities — — 172.5 172.5 $ 88.7 $ 6.4 $ 172.5 $ 267.6 December 31, 2018 Assets Cash equivalents $ — $ 11.8 $ — $ 11.8 Available-for-sale investments: Corporate debt securities — 455.6 — 455.6 Asset-backed securities — 110.2 — 110.2 U.S. government and agency securities 19.6 59.6 — 79.2 Foreign government bonds — 1.7 — 1.7 Commercial paper — 56.7 — 56.7 Municipal securities — 2.8 — 2.8 Investments held for deferred compensation plans 67.6 — — 67.6 Derivatives — 29.9 — 29.9 $ 87.2 $ 728.3 $ — $ 815.5 Liabilities Derivatives $ — $ 5.2 $ — $ 5.2 Deferred compensation plans 68.5 — — 68.5 Contingent consideration liabilities — — 178.6 178.6 $ 68.5 $ 5.2 $ 178.6 $ 252.3 The following table summarizes the changes in fair value of the contingent consideration obligation for the year ended December 31, 2019 (in millions): December 31, 2019 2018 Fair value, beginning of year $ 178.6 $ 244.3 Payments (cash and issued shares) — (60.0 ) Changes in fair value (6.1 ) (5.7 ) Fair value, end of year $ 172.5 $ 178.6 During 2019 and 2018, the contingent consideration liability related to certain of the Company's previous business acquisitions was reduced by $24.1 million and $26.8 million , respectively, due to delays in product development, which reduced the probability of milestone achievement. These reductions were partially offset by changes in the fair value of the liabilities associated primarily with adjustments to discount rates and accretion of interest due to the passage of time. Cash Equivalents and Available-for-sale Investments The Company estimates the fair values of its money market funds based on quoted prices in active markets for identical assets. The Company estimates the fair values of its time deposits, commercial paper, U.S. and foreign government and agency securities, municipal securities, asset-backed securities, and corporate debt securities by taking into consideration valuations obtained from third-party pricing services. The pricing services use industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades and broker-dealer quotes on the same or similar securities, benchmark yields, credit spreads, prepayment and default projections based on historical data, and other observable inputs. The Company independently reviews and validates the pricing received from the third-party pricing service by comparing the prices to prices reported by a secondary pricing source. The Company’s validation procedures have not resulted in an adjustment to the pricing received from the pricing service. Deferred Compensation Plans The Company holds investments in trading securities related to its deferred compensation plans. The investments are in a variety of stock, bond, and money market mutual funds. The fair values of these investments and the corresponding liabilities are based on quoted market prices. Derivative Instruments The Company uses derivative financial instruments in the form of foreign currency forward exchange contracts and cross currency swap contracts to manage foreign currency exposures. All derivatives contracts are recognized on the balance sheet at their fair value. The fair value of foreign currency derivative financial instruments and the cross currency swap contracts was estimated based on quoted market foreign exchange rates, cross currency swap basis rates, and market discount rates. Judgment was employed in interpreting market data to develop estimates of fair value; accordingly, the estimates presented herein are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The use of different market assumptions or valuation methodologies could have a material effect on the estimated fair value amounts. Contingent Consideration Liabilities Certain of the Company's acquisitions involve contingent consideration arrangements. Payment of additional consideration is contingent upon the acquired company reaching certain performance milestones, such as attaining specified revenue levels or obtaining regulatory approvals. These contingent consideration liabilities are measured at estimated fair value using either a probability weighted discounted cash flow analysis or a Monte Carlo simulation model, both of which consider significant unobservable inputs. These inputs include (1) the discount rate used to present value the projected cash flows (ranging from 1.5% to 10.6% ), (2) the probability of milestone achievement (ranging from 2.0% to 98.5% ), (3) the projected payment dates (ranging from 2022 to 2026), and (4) the volatility of future revenue ( 45.0% ). The use of different assumptions could have a material effect on the estimated fair value amounts. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company uses derivative financial instruments to manage its currency exchange rate risk and its interest rate risk as summarized below. Notional amounts are stated in United States dollar equivalents at spot exchange rates at the respective dates. The Company does not enter into these arrangements for trading or speculation purposes. Notional Amount December 31, 2019 December 31, 2018 (in millions) Foreign currency forward exchange contracts $ 1,336.5 $ 1,378.2 Cross currency swap contracts 300.0 300.0 The following table presents the location and fair value amounts of derivative instruments reported in the consolidated balance sheets (in millions): Fair Value Balance Sheet Location December 31, 2019 December 31, 2018 Derivatives designated as hedging instruments Assets Foreign currency contracts Other current assets $ 14.2 $ 29.1 Foreign currency contracts Other assets $ 3.2 — Cross currency swap contracts Other assets $ 13.3 $ 0.8 Liabilities Foreign currency contracts Accrued and other liabilities $ 6.4 $ 4.4 Foreign currency contracts Other long-term liabilities $ — $ 0.8 The following table presents the effect of master-netting agreements and rights of offset on the consolidated balance sheets (in millions): Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheet December 31, 2019 Gross Amounts Financial Instruments Cash Collateral Received Net Amount Derivative Assets Foreign currency contracts $ 17.4 $ — $ 17.4 $ (5.7 ) $ — $ 11.7 Cross currency swap contracts $ 13.3 $ — $ 13.3 $ — $ — $ 13.3 Derivative Liabilities Foreign currency contracts $ 6.4 $ — $ 6.4 $ (5.7 ) $ — $ 0.7 December 31, 2018 Derivative Assets Foreign currency contracts $ 29.1 $ — $ 29.1 $ (3.6 ) $ — $ 25.5 Cross currency swap contracts $ 0.8 $ — $ 0.8 $ — $ — $ 0.8 Derivative Liabilities Foreign currency contracts $ 5.2 $ — $ 5.2 $ (3.6 ) $ — $ 1.6 The following tables present the effect of derivative and non-derivative hedging instruments on the consolidated statements of operations and consolidated statements of comprehensive income: Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income 2019 2018 2019 2018 (in millions) (in millions) Cash flow hedges Foreign currency contracts $ 23.5 $ 35.9 Cost of sales $ 40.9 $ (17.3 ) Selling, general, and administrative expenses $ 1.9 $ (2.3 ) Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) 2019 2018 2019 2018 (in millions) (in millions) Net investment hedges Cross currency swap contracts $ 12.5 $ 0.8 Interest expense $ 6.6 $ 3.5 Foreign currency denominated debt $ — $ 6.8 In June 2018, the Company repaid and dedesignated its €370.0 million of outstanding long-term debt which had been previously designated as a net investment hedge, and concurrently entered into cross currency swap contracts, which were designated as a net investment hedge. The cross currency swaps have an expiration date of June 15, 2028. At maturity of the cross currency swap contracts, the Company will deliver the notional amount of €257.2 million and will receive $300.0 million from the counterparties. The Company will receive semi-annual interest payments from the counterparties based on a fixed interest rate until maturity of the agreements. Amount of Gain or (Loss) Recognized in Income on Derivative (a) Location of Gain or (Loss) Recognized in Income on Derivative 2019 2018 2017 (in millions) Fair value hedges Foreign currency contracts Other (income) expense, net $ 1.4 $ 0.5 $ — Interest rate swap agreements Interest expense $ — $ — $ (1.1 ) ___________________________________________________________ (a) The gains and losses on the interest rate swap agreements were fully offset by the changes in the fair value of the fixed-rate debt being hedged. In December 2017, the interest rate swap was settled at a loss of $0.7 million , which was amortized to interest expense over the remaining life of the debt. Amount of Gain or (Loss) Recognized in Income on Derivative Location of Gain or (Loss) Recognized in Income on Derivative 2019 2018 2017 (in millions) Derivatives not designated as hedging instruments Foreign currency contracts Other (income) expense, net $ 0.3 $ 9.7 $ (11.5 ) The following table presents the effect of cash flow hedge accounting on the consolidated statements of operations: Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Twelve Months Ended December 31, 2019 Cost of sales Selling, general, and administrative expenses Other (Income) Expense, net Total amounts of income and expense line items shown in the consolidated statements of operations in which the effects of fair value or cash flow hedges are recorded $ (1,114.4 ) $ (1,242.2 ) $ 8.2 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships: Foreign currency contracts: Hedged items — — 2.9 Derivatives designated as hedging instruments — — (2.9 ) Amount excluded from effectiveness testing recognized in earnings based on an amortization approach — — 4.3 Gain (loss) on cash flow hedging relationships: Foreign currency contracts: Amount of gain (loss) reclassified from accumulated OCI into income $ 40.9 $ 1.9 $ — Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Twelve Months Ended December 31, 2018 Cost of sales Selling, general, and administrative expenses Other (Income) Expense, net Total amounts of income and expense line items shown in the consolidated statements of operations in which the effects of fair value or cash flow hedges are recorded $ (939.4 ) $ (1,088.5 ) $ 4.0 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships: Foreign currency contracts: Hedged items — — — Derivatives designated as hedging instruments — — — Amount excluded from effectiveness testing recognized in earnings based on an amortization approach — — 0.5 Gain (loss) on cash flow hedging relationships: Foreign currency contracts: Amount of gain (loss) reclassified from accumulated OCI into income $ (17.3 ) $ (2.3 ) $ — The Company expects that during 2020 it will reclassify to earnings a $6.5 million gain currently recorded in " Accumulated Other Comprehensive Loss ." For the years ended December 31, 2019 , 2018 , and 2017 , the Company did not record any gains or losses due to hedge ineffectiveness. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Defined Benefit Plans Edwards Lifesciences maintains defined benefit pension plans in Japan and certain European countries. In 2018, the Company curtailed its defined benefit plan in Horw, Switzerland (see Note 4) and at the end of 2017, redesigned one of its defined benefit plans in Nyon, Switzerland into a defined contribution plan upon changes in local legislation. Years Ended December 31, 2019 2018 (in millions) Change in projected benefit obligation: Beginning of year $ 97.4 $ 114.9 Service cost 5.2 6.0 Interest cost 0.9 0.8 Participant contributions 1.3 1.2 Actuarial loss 8.2 0.7 Benefits paid (4.2 ) (0.3 ) Plan amendment (4.6 ) (2.0 ) Settlements and curtailment gain — (22.5 ) Currency exchange rate changes and other 1.0 (1.4 ) End of year $ 105.2 $ 97.4 Change in fair value of plan assets: Beginning of year $ 60.4 $ 71.2 Actual return on plan assets 2.0 (0.8 ) Employer contributions 2.6 3.9 Participant contributions 1.3 1.2 Settlements — (14.4 ) Benefits paid (4.2 ) (0.3 ) Currency exchange rate changes and other 1.1 (0.4 ) End of year $ 63.2 $ 60.4 Funded Status Projected benefit obligation $ (105.2 ) $ (97.4 ) Plan assets at fair value 63.2 60.4 Underfunded status $ (42.0 ) $ (37.0 ) Net amounts recognized on the consolidated balance sheet: Other long-term liabilities $ 42.0 $ 37.0 Accumulated other comprehensive loss, net of tax: Net actuarial loss $ (26.3 ) $ (19.4 ) Net prior service cost 6.7 2.3 Deferred income tax benefit 4.2 3.6 Total $ (15.4 ) $ (13.5 ) The accumulated benefit obligation ("ABO") for all defined benefit pension plans was $101.1 million and $93.5 million as of December 31, 2019 and 2018 , respectively. The projected benefit obligation and ABO were in excess of plan assets for all pension plans as of December 31, 2019 and 2018 . The components of net periodic pension benefit cost (credit) are as follows (in millions): Years Ended 2019 2018 2017 Service cost, net $ 5.2 $ 6.0 $ 7.9 Interest cost 0.9 0.8 1.0 Expected return on plan assets (1.4 ) (1.3 ) (2.0 ) Settlements and curtailment gain — (7.4 ) (6.3 ) Special termination benefits — — 0.6 Amortization of actuarial loss 0.9 0.8 0.9 Amortization of prior service (credit) cost (0.2 ) (0.1 ) 0.2 Net periodic pension benefit cost (credit) $ 5.4 $ (1.2 ) $ 2.3 The net actuarial loss and prior service credit that will be amortized from " Accumulated Other Comprehensive Loss " into net periodic pension benefit cost in 2020 are expected to be $1.5 million and $(0.7) million , respectively. Expected long-term returns for each of the plans' strategic asset classes were developed through consultation with investment advisors. Several factors were considered, including survey of investment managers' expectations, current market data, minimum guaranteed returns in certain insurance contracts, and historical market returns over long periods. Using policy target allocation percentages and the asset class expected returns, a weighted-average expected return was calculated. To select the discount rates for the defined benefit pension plans, the Company uses a modeling process that involves matching the expected duration of its benefit plans to a yield curve constructed from a portfolio of AA-rated fixed-income debt instruments, or their equivalent. For each country, the Company uses the implied yield of this hypothetical portfolio at the appropriate duration as a discount rate benchmark. The weighted-average assumptions used to determine the benefit obligations are as follows: December 31, 2019 2018 Discount rate 0.5 % 0.9 % Rate of compensation increase 2.7 % 2.8 % Social securities increase 1.6 % 1.8 % Pension increase 1.8 % 1.8 % The weighted-average assumptions used to determine the net periodic pension benefit cost are as follows: Years ended December 31, 2019 2018 2017 Discount rate 0.9 % 0.9 % 0.7 % Expected return on plan assets 2.3 % 2.3 % 2.4 % Rate of compensation increase 2.8 % 2.6 % 2.5 % Social securities increase 1.8 % 1.5 % 1.4 % Pension increase 1.8 % 1.8 % 0.3 % Plan Assets The Company's investment strategy for plan assets is to seek a competitive rate of return relative to an appropriate level of risk and to earn performance rates of return in accordance with the benchmarks adopted for each asset class. Risk management practices include diversification across asset classes and investment styles, and periodic rebalancing toward asset allocation targets. The Administrative and Investment Committee decides on the defined benefit plan provider in each location and that provider decides the target allocation for the Company's defined benefit plan at that location. The target asset allocation selected reflects a risk/return profile the Company feels is appropriate relative to the plans' liability structure and return goals. In certain plans, asset allocations may be governed by local requirements. Target weighted-average asset allocations at December 31, 2019 , by asset category, are as follows: Equity securities 22.3 % Debt securities 48.3 % Real estate 6.9 % Other 22.5 % Total 100.0 % The fair values of the Company's defined benefit plan assets at December 31, 2019 and 2018 , by asset category, are as follows (in millions): December 31, 2019 Level 1 Level 2 Level 3 Total Asset Category Cash $ 3.8 $ — $ — $ 3.8 Equity securities: United States equities 3.0 — — 3.0 International equities 11.2 — — 11.2 Debt securities: United States government bonds 8.2 — — 8.2 International government bonds 22.3 — — 22.3 Real estate — 4.4 — 4.4 Mortgages — 2.3 — 2.3 Insurance contracts — — 0.9 0.9 Total plan assets measured at fair value $ 48.5 $ 6.7 $ 0.9 56.1 Alternative investments measured at net asset value (a) 7.1 Total plan assets $ 63.2 December 31, 2018 Level 1 Level 2 Level 3 Total Asset Category Cash $ 7.0 $ — $ — $ 7.0 Equity securities: United States equities 0.5 — — 0.5 International equities 9.3 — — 9.3 Debt securities: United States government bonds 6.4 — — 6.4 International government bonds 23.2 — — 23.2 Real estate — 4.1 — 4.1 Mortgages — 2.2 — 2.2 Insurance contracts — — 1.0 1.0 Total plan assets $ 46.4 $ 6.3 $ 1.0 $ 53.7 Alternative investments measured at net asset value (a) 6.7 Total plan assets $ 60.4 _______________________________________ (a) Certain investments that were measured at net asset value per share have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the total plan assets. The following table summarizes the changes in fair value of the Company's defined benefit plan assets that have been classified as Level 3 for the years ended December 31, 2019 and 2018 (in millions): Insurance Balance at December 31, 2017 $ 2.7 Actual return on plan assets: Relating to assets still held at December 31, 2018 (1.6 ) Currency exchange rate impact (0.1 ) Balance at December 31, 2018 1.0 Purchases, sales and settlements (0.1 ) Balance at December 31, 2019 $ 0.9 Equity and debt securities are valued at fair value based on quoted market prices reported on the active markets on which the individual securities are traded. Real estate investments are valued by discounting to present value the cash flows expected to be generated by the specific properties. Investments in mortgages are valued at cost, which is deemed to approximate its fair value. The insurance contracts are valued at the cash surrender value of the contracts, which is deemed to approximate its fair value. Alternative investments include hedge funds, private equity funds and other miscellaneous investments, and are valued using the net asset value provided by the fund administrator as a practical expedient. The net asset value is based on the fair value of the underlying assets owned by the fund divided by the number of shares outstanding. The following benefit payments, which reflect expected future service, as appropriate, at December 31, 2019 , are expected to be paid (in millions): 2020 $ 4.0 2021 3.6 2022 4.1 2023 5.7 2024 5.1 2024-2026 28.1 As of December 31, 2019 , expected employer contributions for 2020 are $1.9 million . Defined Contribution Plans The Company's employees in the United States and Puerto Rico are eligible to participate in a qualified defined contribution plan. In the United States, participants may contribute up to 25% of their eligible compensation (subject to tax code limitation) to the plan. Edwards Lifesciences matches the first 4% of the participant's annual eligible compensation contributed to the plan on a dollar-for-dollar basis. Edwards Lifesciences matches the next 2% of the participant's annual eligible compensation to the plan on a 50% basis. In Puerto Rico, participants may contribute up to 25% of their annual compensation (subject to tax code limitation) to the plan. Edwards Lifesciences matches the first 4% of participant's annual eligible compensation contributed to the plan on a 50% basis. The Company also provides a 2% profit sharing contribution calculated on eligible earnings for each employee. Matching contributions relating to Edwards Lifesciences employees were $31.4 million , $26.6 million , and $19.9 million in 2019 , 2018 , and 2017 , respectively. The Company also has nonqualified deferred compensation plans for a select group of employees. The plans provide eligible participants the opportunity to defer eligible compensation to future dates specified by the participant with a return based on investment alternatives selected by the participant. The amount accrued under these nonqualified plans was $88.7 million and $68.5 million at December 31, 2019 and 2018 , respectively. |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
COMMON STOCK | COMMON STOCK Treasury Stock In November 2017, the Board of Directors approved a stock repurchase program authorizing the Company to purchase up to $1.0 billion of the Company's common stock. In May 2019, the Board of Directors approved a new stock repurchase program authorizing the Company to purchase up to an additional $1.0 billion of the Company's common stock. The repurchase programs do not have an expiration date. Stock repurchased under the programs may be used to offset obligations under the Company's employee stock-based benefit programs and stock-based business acquisitions, and will reduce the total shares outstanding. During 2019 , 2018 , and 2017 , the Company repurchased 1.5 million , 5.5 million , and 7.7 million shares, respectively, at an aggregate cost of $263.3 million , $795.5 million , and $763.3 million , respectively, including shares purchased under the accelerated share repurchase ("ASR") agreements described below and shares acquired to satisfy tax withholding obligations in connection with the vesting of restricted stock units issued to employees. The timing and size of any future stock repurchases are subject to a variety of factors, including expected dilution from stock plans, cash capacity, and the market price of the Company's common stock. Accelerated Share Repurchase During 2019 , 2018 , and 2017 , the Company entered into ASR agreements providing for the repurchase of the Company's common stock based on the volume-weighted average price ("VWAP") of the Company's common stock during the term of the agreements, less a discount. The following table summarizes the terms of the ASR agreements (dollars and shares in millions, except per share data): Initial Delivery Final Settlement Agreement Date Amount Paid Shares Received Price per Share (a) Value of Shares as % of Contract Value Settlement Date Total Shares Received Average Price per Share (a) November 2017 $ 150.0 1.1 $ 109.86 80 % December 2017 1.3 $ 114.85 April 2018 $ 400.0 2.5 $ 127.36 80 % July 2018 2.8 $ 142.37 October 2018 $ 250.0 1.4 $ 139.22 80 % November 2018 1.7 $ 150.54 May 2019 $ 150.0 0.7 $ 178.66 80 % May 2019 0.8 $ 178.42 May 2019 $ 100.0 0.5 $ 170.02 80 % June 2019 0.6 $ 178.46 The ASR agreements were accounted for as two separate transactions: (1) the value of the initial delivery of shares was recorded as shares of common stock acquired in a treasury stock transaction on the acquisition date and (2) the remaining amount of the purchase price paid was recorded as a forward contract indexed to the Company's own common stock and was recorded in " Additional Paid-in Capital " on the consolidated balance sheets. The initial delivery of shares resulted in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings per share. The Company determined that the forward contract indexed to the Company's common stock met all the applicable criteria for equity classification and, therefore, was not accounted for as a derivative instrument. Employee and Director Stock Plans The Edwards Lifesciences Corporation Long-term Stock Incentive Compensation Program (the "Program") provides for the grant of incentive and non-qualified stock options, restricted stock, and restricted stock units for eligible employees and contractors of the Company. Under the Program, these grants are awarded at a price equal to the fair market value at the date of grant based upon the closing price on that date. Options to purchase shares of the Company's common stock granted under the Program generally vest over predetermined periods of between three to four years and expire seven years after the date of grant. Service-based restricted stock units of the Company's common stock granted under the Program generally vest over predetermined periods ranging from three to four years after the date of grant. Market-based restricted stock units of the Company's common stock granted under the Program vest over three years based on a combination of certain service and market conditions. The actual number of shares issued will be determined based on the Company's total stockholder return relative to a selected industry peer group. Performance-based restricted stock units vest based on a combination of certain service conditions and upon achievement of specified milestones. Under the Program, the number of shares of common stock available for issuance under the Program was 109.2 million shares. No more than 11.2 million shares reserved for issuance may be granted in the form of restricted stock or restricted stock units. The Company also maintains the Nonemployee Directors Stock Incentive Compensation Program (the "Nonemployee Directors Program"). Under the Nonemployee Directors Program, annually each nonemployee director may receive up to 40,000 stock options or 16,000 restricted stock units of the Company's common stock, or a combination thereof, provided that in no event may the total value of the combined annual award exceed $0.2 million . These grants generally vest over one year from the date of grant. Under the Nonemployee Directors Program, an aggregate of 2.8 million shares of the Company's common stock has been authorized for issuance. The Company has an employee stock purchase plan for United States employees and a plan for international employees (collectively "ESPP"). Under the ESPP, eligible employees may purchase shares of the Company's common stock at 85% of the lower of the fair market value of Edwards Lifesciences common stock on the effective date of subscription or the date of purchase. Under the ESPP, employees can authorize the Company to withhold up to 12% of their compensation for common stock purchases, subject to certain limitations. The ESPP is available to all active employees of the Company paid from the United States payroll and to eligible employees of the Company outside the United States, to the extent permitted by local law. The ESPP for United States employees is qualified under Section 423 of the Internal Revenue Code. The number of shares of common stock authorized for issuance under the ESPP was 15.3 million shares. The fair value of each option award and employee stock purchase subscription is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following tables. The risk-free interest rate is estimated using the U.S. Treasury yield curve and is based on the expected term of the award. Expected volatility is estimated based on a blend of the weighted-average of the historical volatility of Edwards Lifesciences' stock and the implied volatility from traded options on Edwards Lifesciences' stock. The expected term of awards granted is estimated from the vesting period of the award, as well as historical exercise behavior, and represents the period of time that awards granted are expected to be outstanding. The Company uses historical data to estimate forfeitures and has estimated an annual forfeiture rate of 6.4% . The Black-Scholes option pricing model was used with the following weighted-average assumptions for options granted during the following periods: Option Awards 2019 2018 2017 Average risk-free interest rate 2.3 % 2.9 % 1.8 % Expected dividend yield None None None Expected volatility 30 % 29 % 33 % Expected life (years) 5.1 5.0 4.6 Fair value, per share $ 54.51 $ 42.51 $ 33.74 The Black-Scholes option pricing model was used with the following weighted-average assumptions for ESPP subscriptions granted during the following periods: ESPP 2019 2018 2017 Average risk-free interest rate 2.4 % 1.7 % 0.8 % Expected dividend yield None None None Expected volatility 32 % 33 % 33 % Expected life (years) 0.6 0.6 0.6 Fair value, per share $ 49.29 $ 36.53 $ 25.69 The fair value of market-based restricted stock units was determined using a Monte Carlo simulation model, which uses multiple input variables to determine the probability of satisfying the market condition requirements. The weighted-average assumptions used to determine the fair value of the market-based restricted stock units during the years ended December 31, 2019 , 2018 , and 2017 included a risk-free interest rate of 2.2% , 2.7% , and 1.7% , respectively, and an expected volatility rate of 29.4% , 29.7% , and 30.2% , respectively. Stock option activity during the year ended December 31, 2019 under the Program and the Nonemployee Directors Program was as follows (in millions, except years and per-share amounts): Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of December 31, 2018 7.2 $ 73.42 Options granted 0.7 179.53 Options exercised (2.2 ) 49.59 Outstanding as of December 31, 2019 5.7 96.57 3.4 years $ 780.9 Exercisable as of December 31, 2019 3.8 72.07 2.5 years 611.4 Vested and expected to vest as of December 31, 2019 5.4 94.13 3.3 years 756.7 The following table summarizes nonvested restricted stock unit activity during the year ended December 31, 2019 under the Program and the Nonemployee Directors Program (in millions, except per-share amounts): Shares Weighted- Average Grant-Date Fair Value Nonvested as of December 31, 2018 1.0 $ 113.86 Granted (a) 0.3 182.70 Vested (0.3 ) 90.78 Forfeited (b) (0.1 ) 118.74 Nonvested as of December 31, 2019 0.9 140.68 _______________________________________________________________________________ (a) The shares granted includes 33,225 shares of market-based restricted stock units granted during 2019 , which represents the targeted number of shares to be issued. (b) The shares forfeited includes 10,660 shares related to the cancellation of market-based restricted stock units since the payout percentage achieved at the end of the performance period was less than target. As described above, the actual number of shares ultimately issued is determined based on the Company's total stockholder return relative to a selected industry peer group. The intrinsic value of stock options exercised and restricted stock units vested during the years ended December 31, 2019 , 2018 , and 2017 were $382.1 million , $281.1 million , and $205.2 million , respectively. The intrinsic value of stock options is calculated as the amount by which the market price of the Company's common stock exceeds the exercise price of the option. During the years ended December 31, 2019 , 2018 , and 2017 , the Company received cash from exercises of stock options of $110.4 million , $103.7 million , and $77.6 million , respectively, and tax benefits from exercises of stock options and vesting of restricted stock units of $85.1 million , $62.5 million , and $66.9 million , respectively. The total grant-date fair value of stock options vested during the years ended December 31, 2019 , 2018 , and 2017 were $31.2 million , $29.0 million , and $26.3 million , respectively. As of December 31, 2019 , the total remaining unrecognized compensation expense related to nonvested stock options, restricted stock units, and employee stock purchase subscriptions amounted to $126.3 million , which will be amortized over the weighted-average remaining requisite service period of 30 months . |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Presented below is a summary of activity for each component of " Accumulated Other Comprehensive Loss " for the years ended December 31, 2019 , 2018 , and 2017 . Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Hedges Unrealized Gain (Loss) on Available-for-sale Investments Unrealized Pension Costs (a) Total Accumulated Other Comprehensive Loss (in millions) December 31, 2016 $ (197.6 ) $ 16.7 $ 0.1 $ (17.6 ) $ (198.4 ) Other comprehensive income (loss) before reclassifications 84.1 (43.5 ) (8.3 ) 9.7 42.0 Amounts reclassified from accumulated other comprehensive loss — (6.5 ) 3.1 (5.1 ) (8.5 ) Deferred income tax benefit (expense) 13.4 19.4 0.5 (1.1 ) 32.2 December 31, 2017 (100.1 ) (13.9 ) (4.6 ) (14.1 ) (132.7 ) Impact from adoption of ASU 2016-16 and ASU 2018-02 (4.9 ) (2.9 ) — — (7.8 ) January 1, 2018 (105.0 ) (16.8 ) (4.6 ) (14.1 ) (140.5 ) Other comprehensive (loss) income before reclassifications (36.7 ) 35.1 (3.1 ) 7.6 2.9 Amounts reclassified from accumulated other comprehensive loss — 19.1 2.9 (6.7 ) 15.3 Deferred income tax expense (1.9 ) (13.8 ) (0.2 ) (0.3 ) (16.2 ) December 31, 2018 (143.6 ) 23.6 (5.0 ) (13.5 ) (138.5 ) Other comprehensive (loss) income before reclassifications (1.5 ) 27.9 7.9 (3.2 ) 31.1 Amounts reclassified from accumulated other comprehensive loss (6.6 ) (44.2 ) 0.4 0.7 (49.7 ) Deferred income tax (expense) benefit (3.1 ) 5.2 (1.6 ) 0.6 1.1 December 31, 2019 $ (154.8 ) $ 12.5 $ 1.7 $ (15.4 ) $ (156.0 ) _______________________________________________________________________________ (a) For the years ended December 31, 2019 , 2018 , and 2017 , the change in unrealized pension costs consisted of the following (in millions): Pre-Tax Tax (Expense) Benefit Net of Tax 2019 Prior service credit arising during period $ 4.6 $ (0.6 ) $ 4.0 Amortization of prior service credit (0.2 ) 0.1 (0.1 ) Net prior service credit arising during period 4.4 (0.5 ) 3.9 Net actuarial loss arising during period (6.9 ) 1.1 (5.8 ) Unrealized pension costs, net $ (2.5 ) $ 0.6 $ (1.9 ) 2018 Prior service credit arising during period $ 3.3 $ (0.9 ) $ 2.4 Amortization of prior service credit (0.1 ) — (0.1 ) Net prior service credit arising during period 3.2 (0.9 ) 2.3 Net actuarial loss arising during period (2.3 ) 0.6 (1.7 ) Unrealized pension credits, net $ 0.9 $ (0.3 ) $ 0.6 2017 Prior service credit arising during period $ 3.5 $ (0.4 ) $ 3.1 Amortization of prior service cost 0.2 — 0.2 Net prior service credit arising during period 3.7 (0.4 ) 3.3 Net actuarial gain arising during period 0.9 (0.7 ) 0.2 Unrealized pension credits, net $ 4.6 $ (1.1 ) $ 3.5 The following table provides information about amounts reclassified from " Accumulated Other Comprehensive Loss " (in millions): Years Ended December 31, Details about Accumulated Other Comprehensive Loss Components 2019 2018 Affected Line on Consolidated Statements of Operations Foreign currency translation adjustments $ 6.6 $ — Other (income) expense, net (1.6 ) — Provision for income taxes $ 5.0 $ — Net of tax Gain (loss) on hedges $ 40.9 $ (17.3 ) Cost of sales 1.9 (2.3 ) Selling, general, and administrative expenses 1.4 0.5 Other (income) expense, net 44.2 (19.1 ) Total before tax (11.0 ) 4.4 Provision for income taxes $ 33.2 $ (14.7 ) Net of tax Gain (loss) on available-for-sale investments $ (0.4 ) $ (2.9 ) Other (income) expense, net (0.3 ) 0.2 Provision for income taxes $ (0.7 ) $ (2.7 ) Net of tax Amortization of pension adjustments $ — $ 7.1 Special (gains) charges, net (0.7 ) (0.4 ) Other (income) expense, net (0.7 ) 6.7 Total before tax 0.1 (0.6 ) Provision for income taxes $ (0.6 ) $ 6.1 Net of tax |
OTHER (INCOME) EXPENSE, NET
OTHER (INCOME) EXPENSE, NET | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE, NET | OTHER (INCOME) EXPENSE, NET Years Ended December 31, 2019 2018 2017 (in millions) Foreign exchange (gains) losses, net $ (5.9 ) $ (6.7 ) $ 5.4 (Gain) loss on investments (0.5 ) 1.7 2.7 Non-service cost components of net periodic pension benefit cost (credit) 0.2 (0.1 ) (6.1 ) Other (2.0 ) 1.1 (0.6 ) Total other (income) expense, net $ (8.2 ) $ (4.0 ) $ 1.4 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's income before provision for income taxes was generated from United States and international operations as follows (in millions): Years Ended December 31, 2019 2018 2017 United States $ 383.4 $ 266.1 $ 491.5 International, including Puerto Rico 783.1 495.3 543.4 $ 1,166.5 $ 761.4 $ 1,034.9 The provision for income taxes consists of the following (in millions): Years Ended December 31, 2019 2018 2017 Current United States: Federal $ 31.3 $ 10.9 $ 330.8 State and local 48.7 13.6 32.8 International, including Puerto Rico 29.1 35.9 60.6 Current income tax expense $ 109.1 $ 60.4 $ 424.2 Deferred United States: Federal $ 28.3 $ (16.1 ) $ 39.3 State and local (18.3 ) (22.4 ) (3.8 ) International, including Puerto Rico 0.5 17.3 (8.4 ) Deferred income tax expense (benefit) 10.5 (21.2 ) 27.1 Total income tax provision $ 119.6 $ 39.2 $ 451.3 The components of deferred tax assets and liabilities are as follows (in millions): December 31, 2019 2018 Deferred tax assets Compensation and benefits $ 91.6 $ 71.4 Benefits from uncertain tax positions 22.5 22.2 Net tax credit carryforwards 108.4 94.4 Net operating loss carryforwards 57.6 42.1 Accrued liabilities 6.1 57.9 Inventories 12.9 7.2 State income taxes 0.5 0.6 Investments 1.5 1.6 Lease liability obligations 18.4 — Other 1.9 4.1 Total deferred tax assets 321.4 301.5 Deferred tax liabilities Property, plant, and equipment (22.6 ) (24.5 ) Cash flow and net investment hedges (6.8 ) (4.5 ) Deferred tax on foreign earnings (0.1 ) (0.6 ) Right-of-use assets (17.5 ) — Inventories — (3.9 ) Other intangible assets (71.0 ) (77.1 ) Other (2.2 ) (0.1 ) Total deferred tax liabilities (120.2 ) (110.7 ) Valuation allowance (65.8 ) (46.7 ) Net deferred tax assets $ 135.4 $ 144.1 During 2019 , net deferred tax assets decreased $8.7 million , including items that were recorded to stockholders' equity and which did not impact the Company's income tax provision. The valuation allowance of $65.8 million as of December 31, 2019 reduces certain deferred tax assets to amounts that are more likely than not to be realized. This allowance primarily relates to the net operating loss carryforwards of certain non-United States subsidiaries and certain non-United States credit carryforwards. Net operating loss and capital loss carryforwards and the related carryforward periods at December 31, 2019 are summarized as follows (in millions): Carryforward Tax Benefit Valuation Net Tax Carryforward United States federal net operating losses $ 35.9 $ 7.5 $ — $ 7.5 2030-2037 United States federal net operating losses 11.3 2.4 — 2.4 Indefinite United States state net operating losses 32.1 2.1 (2.1 ) — 2026-2039 United States state net operating losses 1.0 — — — Indefinite Non-United States net operating losses 52.4 4.7 (4.1 ) 0.6 2020-2027 Non-United States net operating losses 239.1 40.7 (35.2 ) 5.5 Indefinite United States capital losses 34.1 0.5 (0.5 ) — 2022 Total $ 405.9 $ 57.9 $ (41.9 ) $ 16.0 Certain tax attributes are subject to an annual limitation as a result of the acquisitions of Harpoon Medical, Inc. and CAS Medical Systems, Inc. (see Note 8), which constitute a change of ownership as defined under Internal Revenue Code Section 382. The gross tax credit carryforwards and the related carryforward periods at December 31, 2019 are summarized as follows (in millions): Carryforward Valuation Net Tax Carryforward California research expenditure tax credits $ 124.4 $ — $ 124.4 Indefinite Federal research expenditure tax credits 1.5 — 1.5 2026-2039 Puerto Rico purchases credit 21.8 (21.8 ) — Indefinite Total $ 147.7 $ (21.8 ) $ 125.9 The Company has $124.4 million of California research expenditure tax credits it expects to use in future periods. The credits may be carried forward indefinitely. Based upon anticipated future taxable income, the Company expects that it is more likely than not that all California research expenditure tax credits will be utilized, although the utilization of the full benefit is expected to occur over a number of years and into the distant future. Accordingly, no valuation allowance has been provided. The Company has $21.8 million of Puerto Rico purchases credit. Throughout its history and into the future, the Puerto Rico operations generate or are expected to generate credits each year in excess of its ability to utilize credits in those years. As a result, even though the credits have an indefinite life, the Company continues to record a valuation allowance on the credit carryforwards. On December 22, 2017, Public Law 115-97, commonly referred to as the Tax Cuts and Jobs Act (the "2017 Act"), was signed into law. The 2017 Act (1) reduced the U.S. federal corporate tax rate from 35 percent to 21 percent for tax years beginning after December 31, 2017, (2) required companies to pay a one-time mandatory deemed repatriation tax on the cumulative earnings of certain foreign subsidiaries that were previously tax deferred, and (3) created new taxes on certain foreign earnings in future years. On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of generally accepted accounting principles in the United States of America in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the 2017 Act. In accordance with SAB 118, as of December 31, 2017, the Company had estimated provisional amounts for (1) $3.3 million of tax benefits in connection with the remeasurement of certain tax assets and liabilities, (2) $297.4 million of net tax expense (discussed below) in connection with the one-time mandatory deemed repatriation tax on cumulative earnings of certain foreign subsidiaries, and (3) $32.3 million of tax benefits associated with a tax reform related restructuring. In accordance with SAB 118, during 2018 the Company adjusted the provisional amounts as described below. As a result of Internal Revenue Service ("IRS") guidance issued subsequent to the 2017 Act, the $32.3 million of tax benefits associated with the tax reform related restructuring mentioned above were reversed in 2018. In addition, during 2018, the Company recorded a $12.8 million reduction in the repatriation tax and an additional benefit of $3.7 million in connection with the remeasurement of deferred tax assets. In accordance with SAB 118, the Company completed its accounting for the 2017 Act during the fourth quarter of 2018. In addition, the Company elected to pay the repatriation tax in installments over eight years . The Company asserts that $ 1.1 billion of its foreign earnings continue to be indefinitely reinvested and it intends to repatriate $ 140.7 million of its foreign earnings as of December 31, 2019 . The estimated net tax liability (after credits) on the indefinitely reinvested earnings if repatriated is $13.6 million . The Company has received tax incentives in certain non-U.S. tax jurisdictions, the primary benefit for which will expire in 2029. The tax reductions as compared to the local statutory rates were $157.6 million ( $0.75 per diluted share), $144.9 million ( $0.70 per diluted share), and $81.0 million ( $0.39 per diluted share) for the years ended December 31, 2019 , 2018 , and 2017 , respectively. A reconciliation of the United States federal statutory income tax rate to the Company's effective income tax rate is as follows (in millions): Years Ended December 31, 2019 2018 2017 Income tax expense at U.S. federal statutory rate $ 245.0 $ 159.9 $ 362.2 Foreign income taxed at different rates (75.0 ) (16.2 ) (106.9 ) State and local taxes, net of federal tax benefit 11.9 6.8 11.5 Tax credits, federal and state (42.9 ) (36.7 ) (25.8 ) Build (release) of reserve for prior years' uncertain tax positions 5.0 (35.5 ) (7.7 ) U.S. tax on foreign earnings, net of credits (2.9 ) (12.2 ) (30.3 ) Tax on global intangible low-taxed income 32.0 — — Foreign-derived intangible income deduction (7.2 ) (6.6 ) — Deductible employee share-based compensation (57.6 ) (41.8 ) (48.2 ) Nondeductible employee share-based compensation 3.2 2.8 3.9 Impact related to 2017 U.S. Tax Reform 2.8 15.8 294.1 Other 5.3 2.9 (1.5 ) Income tax provision $ 119.6 $ 39.2 $ 451.3 The Company's effective tax rate for 2019 increased in comparison to 2018 primarily because of the increase in the U.S. tax on global intangible low-taxed income and the tax benefit in 2018 from audit settlements. Uncertain Tax Positions As of December 31, 2019 and 2018 , the gross uncertain tax positions were $203.1 million and $150.7 million , respectively. The Company estimates that these liabilities would be reduced by $50.1 million and $42.7 million , respectively, from offsetting tax benefits associated with the correlative effects of potential transfer pricing adjustments, state income taxes, and timing adjustments. The net amounts of $153.0 million and $108.0 million , respectively, if not required, would favorably affect the Company's effective tax rate. A reconciliation of the beginning and ending amount of uncertain tax positions, excluding interest, penalties, and foreign exchange, is as follows (in millions): December 31, 2019 2018 2017 Uncertain gross tax positions, January 1 $ 150.7 $ 225.6 $ 245.5 Current year tax positions 55.4 37.8 77.7 Increase in prior year tax positions 0.8 13.9 63.7 Decrease in prior year tax positions (3.8 ) (78.8 ) (65.0 ) Settlements — (46.5 ) (95.3 ) Lapse of statutes of limitations — (1.3 ) (1.0 ) Uncertain gross tax positions, December 31 $ 203.1 $ 150.7 $ 225.6 The table above summarizes the gross amounts of uncertain tax positions without regard to reduction in tax liabilities or additions to deferred tax assets and liabilities if such uncertain tax positions were settled. The Company recognizes interest and penalties, if any, related to uncertain tax positions in the provision for income taxes. As of December 31, 2019 , the Company had accrued $9.3 million (net of $3.5 million tax benefit) of interest related to uncertain tax positions, and as of December 31, 2018 , the Company had accrued $4.6 million (net of $1.9 million tax benefit) of interest related to uncertain tax positions. During 2019 , 2018 , and 2017 , the Company recognized interest expense (benefit), net of tax benefit, of $4.7 million , $(2.8) million , and $(7.3) million , respectively, in " Provision for Income Taxes " on the consolidated statements of operations. The Company strives to resolve open matters with each tax authority at the examination level and could reach agreement with a tax authority at any time. While the Company has accrued for matters it believes are more likely than not to require settlement, the final outcome with a tax authority may result in a tax liability that is more or less than that reflected in the consolidated financial statements. Furthermore, the Company may later decide to challenge any assessments, if made, and may exercise its right to appeal. The uncertain tax positions are reviewed quarterly and adjusted as events occur that affect potential liabilities for additional taxes, such as lapsing of applicable statutes of limitations, proposed assessments by tax authorities, negotiations between tax authorities, identification of new issues, and issuance of new legislation, regulations, or case law. Management believes that adequate amounts of tax and related penalty and interest have been provided in income tax expense for any adjustments that may result from these uncertain tax positions. At December 31, 2019 , all material state, local, and foreign income tax matters have been concluded for years through 2008. During 2018, the Company signed agreements with the IRS to settle tax years 2009 through 2014, including transfer pricing matters and the tax treatment of a portion of a litigation settlement payment received in 2014. The IRS began its examination of the 2015 and 2016 tax years during the fourth quarter of 2018 and its examination of the 2017 tax year during the first quarter of 2019. During 2018, the Company executed an Advance Pricing Agreement ("APA") between the United States and Switzerland governments for tax years 2009 through 2020 covering various transfer pricing matters . Certain intercompany transactions covering tax years 2015 through 2019 were not resolved and those related tax positions remain uncertain. These transfer pricing matters may be significant to the Company's consolidated financial statements. Based upon the information currently available and numerous possible outcomes, the Company cannot reasonably estimate what, if any, changes in its existing uncertain tax positions may occur in the next 12 months and, therefore, has recorded the gross uncertain tax positions as a long-term liability. In addition, the Company executed other APAs as follows: during 2017, an APA between the United States and Japan covering tax years 2015 through 2019; and during 2018, APAs between Japan and Singapore and between Switzerland and Japan covering tax years 2015 through 2019. The Company is evaluating filing to renew some or all of these APAs for the years 2020 and forward. The execution of some or all of these APAs depends on a number of variables outside of the Company's control. |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | LEGAL PROCEEDINGS On January 28, 2019, Abbott Cardiovascular Systems, Inc. and Evalve, Inc., both subsidiaries of Abbott Laboratories (collectively "Abbott") filed a lawsuit against Edwards Lifesciences Corporation and Edwards Lifesciences, LLC, (“Edwards”) in the Federal District Court in the District of Delaware alleging that the Edwards PASCAL heart valve repair system infringes certain claims of Abbott’s U.S. Patent Nos. 7,288,097, 6,752,813, 7,563,267, 7,736,388, and 8,057,493, seeking unspecified monetary damages and preliminary and permanent injunctive relief. Thereafter, Abbott sought a preliminary injunction and a temporary restraining order and the court denied these requests. Trial is scheduled for May 6, 2020. On January 28, 2019, Abbott and its Abbott Medical UK Limited subsidiary (inclusively and collectively also "Abbott”) filed a lawsuit in the United Kingdom in the High Court of Justice, Chancery Division, Patents Court, against Edwards Lifesciences Limited, alleging that the Edwards PASCAL heart valve repair system infringes certain claims of Abbott’s UK national patents arising from EP 1 624 810 B1 (the " ‘810 patent") and EP 1 408 850 B1 (the “ ‘850 patent”). Abbott requested a preliminary injunction and the High Court denied this request. Trial proceedings began on December 9, 2019, and a decision is expected in early 2020. On January 28, 2019, Abbott Medical GmbH (inclusively and collectively also "Abbott”) filed a lawsuit in the District Court in Düsseldorf, Germany against Edwards Lifesciences Corporation and its German subsidiary, Edwards Lifesciences Services GmbH, alleging that the Edwards PASCAL heart valve repair system infringes certain claims of Abbott’s German national patents arising from the ‘810 and ‘850 European patents. The District Court has scheduled trial for March 19, 2020 for the '810 patent and for July 14, 2020 for the '850 patent. On March 15, 2019, Edwards filed a lawsuit in the German Patent Court in Munich, Germany, alleging that Abbott’s ‘850 patent is invalid. The Abbott ‘810 patent is subject to opposition proceedings at the European Patent Office, where a first instance opposition panel determined that the '810 patent was valid with amendment. Edwards will appeal. On January 28, 2019, Abbott and Abbott Medical AG (inclusively and collectively also "Abbott”) filed a lawsuit in the Federal Patent Court in St. Gallen, Switzerland against Edwards Lifesciences AG, Edwards Lifesciences Technology Sàrl, Edwards Lifesciences IPRM AG, and Mitral Valve Technologies Sàrl, alleging that the Edwards PASCAL heart valve repair system infringes Abbott’s Swiss national patents arising from the same European patents. The court subsequently granted Abbott's request for a preliminary injunction on the '850 patent and Edwards has appealed. On January 28, 2019, Abbott Cardiovascular System Inc., Abbott Medical Italia S.p.A and Evalve Inc. (inclusively and collectively also "Abbott”) filed a lawsuit in the Civil Court of Milan, Italy against Edwards Lifesciences Corporation, Edwards Lifesciences LLC, and Edwards Lifesciences Italia SpA, alleging that the Edwards PASCAL heart valve repair system infringes Abbott’s Italian national patent arising from its ‘850 European patent. The lawsuit seeks a preliminary injunction. The Company intends to defend itself vigorously in all of the above matters. On February 22, 2019, Edwards Lifesciences Corporation and Edwards Lifesciences, LLC filed a lawsuit against Abbott Cardiovascular Systems, Inc. in the Federal District Court in the Central District of California alleging that Abbott's MITRACLIP device infringes Edwards’ U.S. Patent Nos. 6,719,767, 7,011,669, and 8,062,313 related to heart implant technology and seeking unspecified monetary damages. A trial date has not yet been scheduled. Because the ultimate outcome of the above matters involve judgments, estimates, and inherent uncertainties, charges related to such matters could have a material adverse impact on the Company's consolidated financial results. The Company records accruals for loss contingencies to the extent it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated. Where a loss is reasonably possible (including potential losses in excess of the amounts accrued by the Company), the Company will disclose a reasonable estimate of the amount of loss or range of possible losses with respect to the loss contingency (including potential losses in excess of the amounts accrued by the Company), unless the Company is not able to reasonably estimate the amount or range of reasonably possible losses. With respect to the matters above, the Company is not able to estimate the amount or range of any loss for these matters. In addition, the Company is or may be a party to, or may otherwise be responsible for, pending or threatened lawsuits including those related to products and services currently or formerly manufactured or performed, as applicable, by the Company, workplace and employment matters or governmental investigations (the "Other Lawsuits"). The Other Lawsuits raise difficult and complex factual and legal issues and are subject to many uncertainties, including, but not limited to, the facts and circumstances of each particular case or claim, the jurisdiction in which each suit is brought, and differences in applicable law. Management does not believe that any loss relating to the Other Lawsuits would have a material adverse effect on the Company's overall financial condition, results of operations or cash flows. However, the resolution of one or more of the Other Lawsuits in any reporting period, could have a material adverse impact on the Company's financial results for that period. The Company is not able to estimate the amount or range of any loss for legal contingencies related to the Other Lawsuits for which there is no reserve or additional loss for matters already reserved. The Company is subject to various environmental laws and regulations both within and outside of the United States. The Company's operations, like those of other medical device companies, involve the use of substances regulated under environmental laws, primarily in manufacturing and sterilization processes. While it is difficult to quantify the potential impact of continuing compliance with environmental protection laws, management believes that such compliance will not have a material impact on the Company's financial results. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company conducts operations worldwide and is managed in the following geographical regions: United States, Europe, Japan, and Rest of World. All regions sell products that are used to treat advanced cardiovascular disease. The Company's geographic segments are reported based on the financial information provided to the Chief Operating Decision Maker (the Chief Executive Officer). The Company evaluates the performance of its geographic segments based on net sales and operating income. The accounting policies of the segments are substantially the same as those described in Note 2. Segment net sales and segment operating income are based on internally derived standard foreign exchange rates, which may differ from year to year, and do not include inter-segment profits. Because of the interdependence of the reportable segments, the operating profit as presented may not be representative of the geographical distribution that would occur if the segments were not interdependent. Net sales by geographic area are based on the location of the customer. Certain items are maintained at the corporate level and are not allocated to the segments. The non-allocated items include net interest expense, global marketing expenses, corporate research and development expenses, manufacturing variances, corporate headquarters costs, special gains and charges, stock-based compensation, foreign currency hedging activities, certain litigation costs, changes in the fair value of contingent consideration liabilities, and most of the Company's amortization expense. Although most of the Company's depreciation expense is included in segment operating income, due to the Company's methodology for cost build-up, it is impractical to determine the amount of depreciation expense included in each segment, and, therefore, a portion is maintained at the corporate level. The Company neither discretely allocates assets to its operating segments, nor evaluates the operating segments using discrete asset information. The table below presents information about Edwards Lifesciences' reportable segments (in millions): Years Ended December 31, 2019 2018 2017 Segment Net Sales United States $ 2,532.7 $ 2,055.2 $ 1,907.6 Europe 926.1 826.4 800.7 Japan 441.4 398.4 356.5 Rest of World 433.3 396.0 357.3 Total segment net sales $ 4,333.5 $ 3,676.0 $ 3,422.1 Segment Operating Income United States $ 1,742.3 $ 1,368.1 $ 1,242.3 Europe 472.0 394.8 378.4 Japan 272.3 237.0 201.1 Rest of World 127.9 115.6 92.8 Total segment operating income $ 2,614.5 $ 2,115.5 $ 1,914.6 The table below presents reconciliations of segment net sales to consolidated net sales and segment operating income to consolidated income before provision for income taxes ("pre-tax income") (in millions): Years Ended December 31, 2019 2018 2017 Net Sales Reconciliation Segment net sales $ 4,333.5 $ 3,676.0 $ 3,422.1 Foreign currency 14.5 46.8 13.2 Consolidated net sales $ 4,348.0 $ 3,722.8 $ 3,435.3 Pre-tax Income Reconciliation Segment operating income $ 2,614.5 $ 2,115.5 $ 1,914.6 Unallocated amounts: Corporate items (1,439.7 ) (1,058.1 ) (903.5 ) Special charges, net (64.6 ) (116.2 ) (9.7 ) Intellectual property litigation (expenses) income, net (33.4 ) (214.0 ) 73.3 Change in fair value of contingent consideration liabilities, net 6.1 5.7 9.9 Foreign currency 63.9 15.3 4.8 Consolidated operating income 1,146.8 748.2 1,089.4 Non-operating income (expense) 19.7 13.2 (54.5 ) Consolidated pre-tax income $ 1,166.5 $ 761.4 $ 1,034.9 Enterprise-Wide Information Enterprise-wide information is based on actual foreign exchange rates used in the Company's consolidated financial statements. As of or for the Years Ended 2019 2018 2017 (in millions) Net Sales by Geographic Area United States $ 2,532.7 $ 2,055.3 $ 1,907.6 Europe 941.2 885.1 831.0 Japan 444.7 396.8 350.3 Rest of World 429.4 385.6 346.4 $ 4,348.0 $ 3,722.8 $ 3,435.3 Net Sales by Major Product Area Transcatheter Aortic Valve Replacement $ 2,737.9 $ 2,283.8 $ 2,023.8 Transcatheter Mitral and Tricuspid Therapies 28.2 2.9 3.4 Surgical Structural Heart 841.7 761.6 807.1 Critical Care 740.2 674.5 601.0 $ 4,348.0 $ 3,722.8 $ 3,435.3 Long-lived Tangible Assets by Geographic Area United States $ 849.1 $ 642.1 $ 608.7 Europe 101.5 36.6 28.4 Japan 21.7 6.7 7.6 Rest of World 269.4 214.4 139.7 $ 1,241.7 $ 899.8 $ 784.4 |
QUARTERLY FINANCIAL RESULTS AND
QUARTERLY FINANCIAL RESULTS AND MARKET FOR THE COMPANY'S STOCK (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL RESULTS AND MARKET FOR THE COMPANY'S STOCK (UNAUDITED) | QUARTERLY FINANCIAL RESULTS AND MARKET FOR THE COMPANY'S STOCK (UNAUDITED) Years Ended December 31, First Quarter Second Quarter Third Quarter Fourth Quarter Total Year (in millions, except per share data) 2019 Net sales $ 993.0 $ 1,086.9 $ 1,094.0 $ 1,174.1 $ 4,348.0 Gross profit 761.2 782.9 801.6 887.9 3,233.6 Net income (a) 249.7 242.3 274.7 280.2 1,046.9 Earnings per common share (a): Basic 1.20 1.16 1.32 1.34 5.03 Diluted 1.18 1.14 1.30 1.32 4.93 Market price: High $ 197.86 $ 195.00 $ 228.19 $ 247.64 $ 247.64 Low 140.86 165.69 183.01 213.23 140.86 2018 Net sales $ 894.8 $ 943.7 $ 906.6 $ 977.7 $ 3,722.8 Gross profit 661.2 697.5 681.7 743.0 2,783.4 Net income (b) 206.6 282.7 225.9 7.0 722.2 Earnings per common share (b): Basic 0.98 1.35 1.08 0.03 3.45 Diluted 0.96 1.32 1.06 0.03 3.38 Market price: High $ 143.22 $ 155.22 $ 175.00 $ 174.99 $ 175.00 Low 110.68 123.00 134.53 136.44 110.68 _______________________________________________________________________________ (a) The first quarter of 2019 includes a $24.0 million charge related to the acquisition of early-stage transcatheter intellectual property and associated clinical and regulatory experience, the second and third quarters of 2019 include a $46.2 million and $26.9 million charge, respectively, related to the write off of inventory, and the fourth quarter of 2019 includes a $40.6 million charge related to the impairment of certain in-process research and development assets. (b) The fourth quarter of 2018 includes a $116.2 million charge related to the impairment of certain developed technology and in-process research and development assets and a $180.0 million |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | VALUATION AND QUALIFYING ACCOUNTS Additions Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions From Reserves Balance at End of Period (in millions) Year ended December 31, 2019 Allowance for doubtful accounts (a) $ 13.6 $ 4.7 $ 0.2 $ (3.8 ) $ 14.7 Tax valuation allowance (b) 46.7 18.9 0.2 — 65.8 Year ended December 31, 2018 Allowance for doubtful accounts (a) $ 13.7 $ 2.2 $ 1.0 $ (3.3 ) $ 13.6 Tax valuation allowance (b) 41.6 7.1 (1.8 ) (0.2 ) 46.7 Year ended December 31, 2017 Allowance for doubtful accounts (a) $ 12.8 $ 2.9 $ — $ (2.0 ) $ 13.7 Tax valuation allowance (b) 47.7 (8.9 ) 2.8 — 41.6 _______________________________________________________________________________ (a) The deductions related to allowances for doubtful accounts represent accounts receivable which are written off. (b) The tax valuation allowances are provided for other-than-temporary impairments and unrealized losses related to certain investments that may not be recognized due to the uncertainty of the ready marketability of certain impaired investments, and net operating loss and credit carryforwards that may not be recognized due to insufficient taxable income. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Edwards Lifesciences and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company reviews its investments in other entities to determine whether the Company is the primary beneficiary of a variable interest entity ("VIE"). The Company would be the primary beneficiary of the VIE, and would be required to consolidate the VIE, if it has the power to direct the significant activities of the entity and the obligation to absorb losses or receive benefits from the entity that may be significant to the VIE. Based on the Company's analysis, it determined it is not the primary beneficiary of any VIEs; however, future events may require VIEs to be consolidated if the Company becomes the primary beneficiary. |
Use of Estimates | Use of Estimates The consolidated financial statements of Edwards Lifesciences have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") which have been applied consistently in all material respects. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. |
Foreign Currency Translation | Foreign Currency Translation When the local currency of the Company's foreign entities is the functional currency, all assets and liabilities are translated into United States dollars at the rate of exchange in effect at the balance sheet date. Income and expense items are translated at the weighted-average exchange rate prevailing during the period. The effects of foreign currency translation adjustments for these entities are deferred and reported in stockholders' equity as a component of " Accumulated Other Comprehensive Loss ." The effects of foreign currency transactions denominated in a currency other than an entity's functional currency are included in " Other (Income) Expense, net. " |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those products or services. The Company generates nearly all of its revenue from direct product sales and sales of products under consignment arrangements. Revenue from direct product sales is recognized at a point in time when the performance obligation is satisfied upon delivery of the product. Revenue from sales of consigned inventory is recognized at a point in time when the performance obligation is satisfied once the product has been implanted or used by the customer. The Company periodically reviews consignment inventories to confirm the accuracy of customer reporting. The Company also generates a small portion of its revenue from service contracts, and recognizes revenue from service contracts ratably over the term of the contracts. Sales taxes and other similar taxes that the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company does not typically have any significant unusual payment terms beyond 90 days in its contracts with customers. In addition, the Company receives royalty payments for the licensing of certain intellectual property and recognizes the royalty when the subsequent sale of product using the intellectual property occurs. The amount of consideration the Company ultimately receives varies depending upon the return terms, sales rebates, discounts, and other incentives that the Company may offer, which are accounted for as variable consideration when estimating the amount of revenue to recognize. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely upon an assessment of historical payment experience, historical relationship to revenues, estimated customer inventory levels, and current contract sales terms with direct and indirect customers. The Company's sales adjustment related to distributor rebates given to the Company's United States distributors represents the difference between the Company's sales price to the distributor and the negotiated price to be paid by the end-customer. This distributor rebate is recorded as a reduction to sales and a reduction to the distributor's accounts receivable at the time of sale to a distributor. The Company periodically monitors current pricing trends and distributor inventory levels to ensure the credit for future distributor rebates is fairly stated. The Company also offers volume rebates to certain group purchasing organizations ("GPOs") and customers based upon target sales levels. Volume rebates offered to GPOs are recorded as a reduction to sales and an obligation to the GPOs, as the Company expects to pay in cash. Volume rebates offered to customers are recorded as a reduction to sales and either accounts receivable if the Company expects a net payment from the customer, or as an obligation to the customer if the Company expects to pay in cash. The provision for volume rebates is estimated based on customers' contracted rebate programs, projected sales levels, and historical experience of rebates paid. The Company periodically monitors its customer rebate programs to ensure that the allowance and liability for accrued rebates is fairly stated. Product returns are typically not significant because returns are generally not allowed unless the product is damaged at time of receipt. In limited circumstances, the Company may allow customers to return previously purchased products, such as for next-generation product offerings. For these transactions, the Company defers recognition of revenue on the sale of the earlier generation product based upon an estimate of the amount of product to be returned when the next-generation products are shipped to the customer. The Company sells separately priced service contracts, which range from 12 months to 36 months, to owners of its hemodynamic monitors. The Company invoices the customer the total amount of consideration at the inception of the contract and recognizes revenue ratably over the term of the contract. As of December 31, 2019 and December 31, 2018 , $8.4 million and $7.6 million , respectively, of deferred revenue associated with outstanding service contracts was recorded in “ Accrued and Other Liabilities ” and " Other Long-term Liabilities. " During 2019 , the Company recognized as revenue $5.5 million that was included in the balance of deferred revenue as of December 31, 2018 , and during 2018 , the Company recognized as revenue $2.9 million that was included in the balance of deferred revenue as of December 31, 2017 . A limited number of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the transaction price is allocated to each performance obligation based on its relative standalone selling price charged to other customers. The Company applies the optional exemption of not disclosing the amount of the transaction price allocated to unsatisfied performance obligations for contracts with an original expected duration of one year or less. Shipping and Handling Costs Shipping costs, which are costs incurred to physically move product from the Company's premises or third party distribution centers, including storage, to the customer's premises, are included in " Selling, General, and Administrative Expenses ." Handling costs, which are costs incurred to store at the Company's premises, move, and prepare products for shipment, are included in " Cost of Sales |
Cash Equivalents | Cash Equivalents The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. These investments are valued at cost, which approximates fair value. |
Investments | Investments The Company invests its excess cash in fixed-rate debt securities, including time deposits, commercial paper, U.S. government and agency securities, asset-backed securities, corporate debt securities, and municipal debt securities. Investments with maturities of one year or less are classified as short-term, and investments with maturities greater than one year are classified as long-term. Investments that the Company has the ability and intent to hold until maturity are classified as held-to-maturity and carried at amortized cost. Investments in debt securities that are classified as available-for-sale are carried at fair value with unrealized gains and losses included in " Accumulated Other Comprehensive Loss ." The Company determines the appropriate classification of its investments in fixed-rate debt securities at the time of purchase and reevaluates such designation at each balance sheet date. The Company also has long-term equity investments in companies that are in various stages of development. These investments are reported at fair value or under the equity method of accounting, as appropriate. Equity investments that do not have readily determinable fair values are recorded at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The Company accounts for investments in limited partnerships and limited liability corporations, whereby the Company owns a minimum of 5% of the investee's outstanding voting stock, under the equity method of accounting. These investments are recorded at the amount of the Company's investment and adjusted each period for the Company's share of the investee's income or loss, and dividends paid. Realized gains and losses on investments that are sold are determined using the specific identification method, or the first-in, first-out method, depending on the investment type, and recorded to " Other (Income) Expense, net ." Income relating to investments in fixed-rate debt securities is recorded to " Interest Income. " The Company periodically reviews its investments for impairment. When the fair value of an investment declines below cost, management uses the following criteria to determine if such a decline should be considered other-than-temporary and result in a recognized loss: • the duration and extent to which the market value has been less than cost; • the financial condition and near term prospects of the investee/issuer; • the reasons for the decline in market value; • the Company's ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value; and • the investee's performance against product development milestones. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts |
Inventories | Inventories Inventories are stated at the lower of cost (first-in, first-out method) or market value. Market value for raw materials is based on replacement costs, and for other inventory classifications is based on net realizable value. A write-down for excess or slow moving inventory is recorded for inventory which is obsolete, nearing its expiration date (generally triggered at six months prior to expiration), is damaged, or slow moving (generally defined as quantities in excess of a two -year supply). The allowance for excess and slow moving inventory was $42.6 million and $30.3 million at December 31, 2019 and 2018 , respectively. |
Property, Plant and Equipment | Property, Plant, and Equipment Property, plant, and equipment are recorded at cost. Depreciation is principally calculated for financial reporting purposes on the straight-line method over the estimated useful lives of the related assets, which range from 10 to 40 years for buildings and improvements, from 3 to 15 years for machinery and equipment, and from 3 to 5 years for software. Leasehold improvements are amortized over the life of the related facility leases or the asset, whichever is shorter. Straight-line and accelerated methods of depreciation are used for income tax purposes. Construction in progress is not depreciated until the asset is ready for its intended use and placed into service. |
Impairment of Goodwill and Long-lived Assets | Impairment of Goodwill and Long-lived Assets Goodwill is reviewed for impairment annually in the fourth quarter of each fiscal year, or whenever an event occurs or circumstances change that would indicate that the carrying amount may be impaired. Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, then the Company performs a quantitative impairment test. The Company determined, after performing a qualitative review of each reporting unit, that it is more likely than not that the fair value of each of its reporting units substantially exceeds the respective carrying amounts. Accordingly, in 2019 , 2018 , and 2017 , the Company did not record any impairment loss. Indefinite-lived intangible assets relate to in-process research and development acquired in business combinations. The estimated fair values of in-process research and development projects acquired in a business combination which have not reached technological feasibility are capitalized and accounted for as indefinite-lived intangible assets subject to impairment testing until completion or abandonment of the projects. Upon successful completion of the project, the capitalized amount is amortized over its estimated useful life. If the project is abandoned, all remaining capitalized amounts are written off immediately. Indefinite-lived intangible assets are reviewed for impairment annually, or whenever an event occurs or circumstances change that would indicate the carrying amount may be impaired. An impairment loss is recognized when the asset's carrying value exceeds its fair value. In-process research and development projects acquired in an asset acquisition are expensed unless the project has an alternative future use. Management reviews the carrying amounts of other finite-lived intangible assets and long-lived tangible assets whenever events or circumstances indicate that the carrying amounts of an asset may not be recoverable. Impairment indicators include, among other conditions, cash flow deficits, historic or anticipated declines in revenue or operating profit, and adverse legal or regulatory developments. If it is determined that such indicators are present and the review indicates that the assets will not be fully recoverable, based on undiscounted estimated cash flows over the remaining amortization periods, their carrying values are reduced to estimated fair market value. Estimated fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. For the purposes of identifying and measuring impairment, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. In 2019 , the Company recorded a $40.6 million charge related to the impairment of certain in-process research and development assets. In 2018 , the Company recorded a $116.2 million charge related to the impairment of certain developed technology and in-process research and development assets. See Note 4 for further information. In 2017 , the Company did not record any impairment loss related to its in-process research and development assets. |
Income Taxes | Income Taxes The Company is subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment is required in evaluating the Company's uncertain tax positions and determining its provision for income taxes. The Company recognizes the financial statement benefit of a tax position only after determining that a position would more likely than not be sustained based upon its technical merit if challenged by the relevant taxing authority and taken by management to the court of last resort. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon settlement with the relevant tax authority. The Company recognizes interest and penalties related to income tax matters in income tax expense. The Company has made an accounting policy election to recognize the U.S. tax effects of global intangible low-taxed income as a component of income tax expense in the period the tax arises. Deferred tax assets and liabilities are recognized for the expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns. The Company evaluates quarterly the realizability of its deferred tax assets by assessing its valuation allowance and adjusting the amount, if necessary. The factors used to assess the likelihood of realization are both historical experience and the Company's forecast of future taxable income and available tax planning strategies that could be implemented to realize the net deferred tax assets. Failure to achieve forecasted taxable income in the applicable taxing jurisdictions could affect the ultimate realization of deferred tax assets and could result in an increase in the Company's effective tax rate on future earnings. |
Research and Development Costs | Research and Development Costs Research and development costs are charged to expense when incurred. |
Earnings per Share | Earnings per Share Basic earnings per share is computed by dividing net income by the weighted-average common shares outstanding during a period. Diluted earnings per share is computed based on the weighted-average common shares outstanding plus the effect of dilutive potential common shares outstanding during the period calculated using the treasury stock method. Dilutive potential common shares include employee equity share options, nonvested shares, and similar equity instruments granted by the Company. Potential common share equivalents have been excluded where their inclusion would be anti-dilutive. |
Stock-based Compensation | Stock-based Compensation The Company measures and recognizes compensation expense for all stock-based awards based on estimated fair values. Stock-based awards consist of stock options, restricted stock units (service-based, market-based, and performance-based), and employee stock purchase subscriptions. Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period (vesting period) on a straight-line basis. For performance-based restricted stock units, the Company recognizes stock-based compensation expense if and when the Company concludes that it is probable that the performance condition will be achieved, net of estimated forfeitures. The Company reassesses the probability of vesting at each quarter end and adjusts the stock-based compensation expense based on its probability assessment. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Upon exercise of stock options or vesting of restricted stock units, the Company issues common stock. Total stock-based compensation expense was as follows (in millions): Years Ended December 31, 2019 2018 2017 Cost of sales $ 14.7 $ 11.4 $ 9.2 Selling, general, and administrative expenses 51.2 46.3 40.7 Research and development expenses 15.4 13.3 11.7 Total stock-based compensation expense $ 81.3 $ 71.0 $ 61.6 Upon a participant's retirement, all unvested stock options and performance-based restricted stock units are immediately forfeited. In addition, upon retirement, a participant will immediately vest in 25% of service-based restricted stock units for each full year of employment with the Company measured from the grant date. All remaining unvested service-based restricted stock units are immediately forfeited. For market-based restricted stock units, upon retirement and in certain other specified cases, a participant will receive a pro-rated portion of the shares that would ultimately be issued based on attainment of the performance goals as determined on the vesting date. The pro-rated portion is based on the participant's whole months of service with the Company during the performance period prior to the date of termination. |
Derivatives | Derivatives The Company uses derivative financial instruments to manage interest rate and foreign currency risks. It is the Company's policy not to enter into derivative financial instruments for speculative purposes. Derivative financial instruments involve credit risk in the event the counterparty should default. It is the Company's policy to execute such instruments with global financial institutions that the Company believes to be creditworthy. The Company diversifies its derivative financial instruments among counterparties to minimize exposure to any one of these entities. The Company also uses International Swap Dealers Association master-netting agreements. The master-netting agreements provide for the net settlement of all contracts through a single payment in a single currency in the event of default, as defined by the agreements. The Company uses foreign currency forward exchange contracts, cross currency swap contracts, and foreign currency denominated debt to manage its exposure to changes in currency exchange rates from (1) future cash flows associated with intercompany transactions and certain local currency expenses expected to occur within the next 13 months (designated as cash flow hedges), (2) its net investment in certain foreign subsidiaries (designated as net investment hedges) and (3) foreign currency denominated assets or liabilities (designated as fair value hedges). The Company also uses foreign currency forward exchange contracts that are not designated as hedging instruments to offset the transaction gains and losses associated with certain assets and liabilities denominated in currencies other than their functional currencies resulting principally from intercompany and local currency transactions. The Company at times has used interest rate swaps to convert a portion of its fixed-rate debt into variable-rate debt. These interest rate swaps were designated as fair value hedges and met the shortcut method requirements under the accounting standards for derivatives and hedging. Accordingly, changes in the fair values of the interest rate swaps were considered to exactly offset changes in the fair value of the underlying long-term debt. All derivative financial instruments are recognized at fair value in the consolidated balance sheets. For each derivative instrument that is designated as a fair value hedge, the gain or loss on the derivative included in the assessment of hedge effectiveness is recognized immediately to earnings, and offsets the loss or gain on the underlying hedged item. The Company reports in " Accumulated Other Comprehensive Loss " the gain or loss on derivative financial instruments that are designated, and that qualify, as cash flow hedges. The Company reclassifies these gains and losses into earnings in the same line item and in the same period in which the underlying hedged transactions affect earnings. Changes in the fair value of net investment hedges are reported in " Accumulated Other Comprehensive Loss " as a part of the cumulative translation adjustment and would be reclassified into earnings if the underlying net investment is sold or substantially liquidated. The portion of the change in fair value related to components excluded from the hedge effectiveness assessment are amortized into earnings over the life of the derivative. The gains and losses on derivative financial instruments for which the Company does not elect hedge accounting treatment are recognized in the consolidated statements of operations in each period based upon the change in the fair value of the derivative financial instrument. Cash flows from net investment hedges are reported as investing activities in the consolidated statements of cash flows, and cash flows from all other derivative financial instruments are reported as operating activities. |
Recently Adopted Accounting Standards and New Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued an amendment to the guidance on leases. The amendment improves transparency and comparability among companies by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. The guidance was effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach was required upon adoption. Reporting entities could elect to adjust comparative periods and record the cumulative effect adjustment at the beginning of the earliest comparative period, or to not adjust comparative periods and record the cumulative effect adjustment at the effective date. The Company adopted the new guidance as of the effective date of January 1, 2019 with no adjustments to the comparative period presented in the financial statements. In addition, the Company elected the package of practical expedients permitted under the transition guidance to not reassess (1) whether any expired or existing contracts are, or contain, leases, (2) the lease classification for expired or existing leases, and (3) initial direct costs for existing leases. The Company implemented internal controls and system solutions to enable the preparation and disclosure of financial information about its leasing arrangements upon adoption. The adoption of the guidance resulted in the recognition of right-of-use assets and additional lease liabilities for operating leases of $58.7 million as of January 1, 2019. The guidance did not have an impact on the Company's consolidated statements of operations. See Note 6 for disclosures related to the Company's leases. New Accounting Standards Not Yet Adopted In January 2020, the FASB issued an amendment clarifying the interaction between accounting standards related to equity securities, equity method investments, and certain derivatives. The guidance is effective for fiscal years beginning after December 15, 2020. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial statements. In December 2019, the FASB issued an amendment to the guidance on income taxes which is intended to simplify the accounting for income taxes. The amendment eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The amendment also clarifies existing guidance related to the recognition of franchise tax, the evaluation of a step up in the tax basis of goodwill, and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact the guidance will have on its consolidated financial statements. In August 2018, the FASB issued an amendment to the accounting guidance on cloud computing service arrangements. The guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance also requires an entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial statements. In August 2018, the FASB issued an amendment to the accounting guidance on retirement benefits. The guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The guidance is effective for fiscal years ending after December 15, 2020 and must be applied retrospectively to all periods presented. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial statements. In August 2018, the FASB issued an amendment to the accounting guidance on fair value measurements. The guidance modifies the disclosure requirements on fair value measurements, including the removal of disclosures of the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The guidance also adds certain disclosure requirements related to Level 3 fair value measurements. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial statements. In June 2016, the FASB issued an amendment to the guidance on the measurement of credit losses on financial instruments. The amendment updates the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the “incurred loss” model with an “expected loss” model. Accordingly, these financial assets will be presented at the net amount expected to be collected. The amendment also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than reducing the carrying amount under the current, other-than-temporary-impairment model. The guidance is effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted for annual periods after December 15, 2018. The Company does not expect the adoption of this guidance will have a material impact on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The table below presents the computation of basic and diluted earnings per share (in millions, except for per share information): Years Ended December 31, 2019 2018 2017 Basic: Net income $ 1,046.9 $ 722.2 $ 583.6 Weighted-average shares outstanding 208.3 209.2 210.9 Basic earnings per share $ 5.03 $ 3.45 $ 2.77 Diluted: Net income $ 1,046.9 $ 722.2 $ 583.6 Weighted-average shares outstanding 208.3 209.2 210.9 Dilutive effect of stock plans 3.9 4.4 5.0 Dilutive weighted-average shares outstanding 212.2 213.6 215.9 Diluted earnings per share $ 4.93 $ 3.38 $ 2.70 |
Schedule of Stock-Based Compensation Expense | Total stock-based compensation expense was as follows (in millions): Years Ended December 31, 2019 2018 2017 Cost of sales $ 14.7 $ 11.4 $ 9.2 Selling, general, and administrative expenses 51.2 46.3 40.7 Research and development expenses 15.4 13.3 11.7 Total stock-based compensation expense $ 81.3 $ 71.0 $ 61.6 |
OTHER CONSOLIDATED FINANCIAL_2
OTHER CONSOLIDATED FINANCIAL STATEMENT DETAILS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Components of Selected Captions in the Consolidated Balance Sheets | Components of selected captions in the consolidated balance sheets are as follows: As of December 31, 2019 2018 (in millions) Accounts receivable, net Trade accounts receivable $ 552.3 $ 465.8 Allowance for doubtful accounts (8.7 ) (8.9 ) $ 543.6 $ 456.9 Inventories Raw materials $ 118.0 $ 111.5 Work in process 121.7 144.8 Finished products 401.2 350.7 $ 640.9 $ 607.0 Property, plant, and equipment, net Land $ 98.0 $ 90.7 Buildings and leasehold improvements 619.8 497.4 Machinery and equipment 466.3 432.4 Equipment with customers 35.6 41.1 Software 87.9 92.4 Construction in progress 265.0 168.8 1,572.6 1,322.8 Accumulated depreciation (512.3 ) (455.3 ) $ 1,060.3 $ 867.5 Accrued and other liabilities Employee compensation and withholdings $ 295.8 $ 226.1 Litigation and insurance reserves (Note 18) 20.0 196.7 Taxes payable 52.9 31.3 Accrued rebates 67.1 80.0 Property, payroll, and other taxes 51.4 39.5 Research and development accruals 51.4 48.9 Fair value of derivatives 6.4 4.4 Accrued marketing expenses 17.5 22.3 Accrued professional services 10.1 11.0 Accrued realignment reserves 16.7 6.8 Accrued relocation costs 17.4 11.3 Other accrued liabilities 89.8 64.3 $ 696.5 $ 742.6 |
Supplemental Cash Flow Information | Supplemental Cash Flow Information (in millions) Years Ended December 31, 2019 2018 2017 Cash paid during the year for: Interest $ 19.9 $ 30.1 $ 19.9 Income taxes $ 61.5 $ 223.7 $ 143.7 Amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 28.6 $ — $ — Non-cash investing and financing transactions: Fair value of shares issued in payment for contingent consideration liabilities (Note 11) $ — $ 34.3 $ — Fair value of shares issued in connection with business combinations (Note 8) $ — $ — $ 266.5 Right-of-use assets obtained in exchange for new lease liabilities $ 49.6 $ — $ — Capital expenditures accruals $ 50.8 $ 18.7 $ 21.6 Retirement of treasury stock $ — $ — $ 2,746.2 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Assets And Liabilities Of Lessee | Supplemental balance sheet information related to operating leases was as follows (in millions, except lease term and discount rate): December 31, Operating lease right-of-use assets $ 80.1 Operating lease liabilities, current portion $ 25.5 Operating lease liabilities, long-term portion 58.9 Total operating lease liabilities $ 84.4 |
Lessee, Operating Lease, Liability, Maturity | Maturities of operating lease liabilities at December 31, 2019 were as follows (in millions): 2020 $ 27.4 2021 20.0 2022 14.2 2023 10.1 2024 5.6 Thereafter 14.5 Total lease payments 91.8 Less: imputed interest (7.4 ) Total lease liabilities $ 84.4 Weighted-average remaining lease term (in years) 5.3 Weighted-average discount rate 2.8 % |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments (including interest) under non-cancelable operating leases at December 31, 2018 were as follows (in millions): Operating 2019 $ 25.6 2020 21.5 2021 13.5 2022 9.9 2023 6.4 Thereafter 14.3 Total obligations and commitments $ 91.2 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments in Debt Securities | Investments in debt securities at the end of each period were as follows (in millions): December 31, 2019 December 31, 2018 Held-to-maturity Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Bank time deposits $ 100.2 $ — $ — $ 100.2 $ 20.0 $ — $ — $ 20.0 Available-for-sale Bank time deposits $ 13.1 $ — $ — $ 13.1 $ — $ — $ — $ — Commercial paper 34.3 — — 34.3 56.7 — — 56.7 U.S. government and agency securities 113.2 0.6 — 113.8 79.7 0.2 (0.7 ) 79.2 Foreign government bonds 1.7 — — 1.7 1.7 — — 1.7 Asset-backed securities 141.2 0.6 (0.1 ) 141.7 110.6 0.1 (0.5 ) 110.2 Corporate debt securities 487.0 2.3 (0.1 ) 489.2 459.8 0.1 (4.3 ) 455.6 Municipal securities — — — — 2.8 — — 2.8 $ 790.5 $ 3.5 $ (0.2 ) $ 793.8 $ 711.3 $ 0.4 $ (5.5 ) $ 706.2 |
Schedule of Cost and Fair Value of Investments in Debt Securities, by Contractual Maturity | The cost and fair value of investments in debt securities, by contractual maturity, as of December 31, 2019 were as follows: Held-to-Maturity Available-for-Sale Cost Fair Value Cost Fair Value (in millions) Due in 1 year or less $ 100.2 $ 100.2 $ 237.2 $ 237.6 Due after 1 year through 5 years — — 439.1 441.7 Instruments not due at a single maturity date — — 114.2 114.5 $ 100.2 $ 100.2 $ 790.5 $ 793.8 |
Gross Unrealized Losses and Fair Values for Investments in Unrealized Loss Position | The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2019 and 2018 , aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in millions): December 31, 2019 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Asset-backed securities 73.4 (0.1 ) — — 73.4 (0.1 ) Corporate debt securities 81.4 (0.1 ) — — 81.4 (0.1 ) $ 154.8 $ (0.2 ) $ — $ — $ 154.8 $ (0.2 ) December 31, 2018 Less than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. government and agency securities $ 0.7 $ (0.1 ) $ 56.5 $ (0.6 ) $ 57.2 $ (0.7 ) Asset-backed securities 4.0 — 61.3 (0.5 ) 65.3 (0.5 ) Corporate debt securities 177.4 (1.1 ) 203.7 (3.2 ) 381.1 (4.3 ) $ 182.1 $ (1.2 ) $ 321.5 $ (4.3 ) $ 503.6 $ (5.5 ) |
Schedule of Investments in Unconsolidated Affiliates | Investments in these unconsolidated affiliates are recorded in " Long-term Investments " on the consolidated balance sheets, and are as follows: December 31, 2019 2018 (in millions) Equity method investments Cost $ 10.7 $ 9.1 Equity in losses (4.5 ) (4.7 ) Carrying value of equity method investments 6.2 4.4 Equity securities Carrying value of non-marketable equity securities 23.1 18.1 Total investments in unconsolidated affiliates $ 29.3 $ 22.5 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed (in millions): Current assets $ 3.6 Property and equipment, net 0.3 Goodwill 142.1 In-process research and development assets 53.1 Other assets 0.1 Current liabilities assumed (0.8 ) Deferred income taxes (12.7 ) Total purchase price 185.7 Less: cash acquired (3.5 ) Total purchase price, net of cash acquired $ 182.2 Current assets $ 6.1 Property and equipment, net 1.3 Goodwill 64.4 Developed technology 35.9 Customer relationships 8.8 Deferred tax assets 2.2 Liabilities assumed (17.9 ) Total purchase price 100.8 Less: cash acquired (0.6 ) Total purchase price, net of cash acquired $ 100.2 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill, by Segment | The changes in the carrying amount of goodwill, by segment, during the years ended December 31, 2019 and 2018 were as follows: United Europe Rest of World Total (in millions) Goodwill at December 31, 2017 $ 709.3 $ 67.2 $ 350.0 $ 1,126.5 Currency translation adjustment — (3.0 ) (11.3 ) (14.3 ) Goodwill at December 31, 2018 709.3 64.2 338.7 1,112.2 Goodwill acquired during the year 64.4 — — 64.4 Currency translation adjustment — (1.4 ) (7.5 ) (8.9 ) Goodwill at December 31, 2019 $ 773.7 $ 62.8 $ 331.2 $ 1,167.7 |
Schedule of Finite-Lived Other Intangible Assets | Other intangible assets consist of the following (in millions): December 31, Weighted-Average Useful Life (in years) 2019 2018 Cost Accumulated Net Cost Accumulated Net Finite-lived intangible assets Patents 7.4 $ 185.7 $ (182.1 ) $ 3.6 $ 185.8 $ (181.2 ) $ 4.6 Developed technology (Note 4) 12.9 153.5 (46.6 ) 106.9 119.8 (44.2 ) 75.6 Other 10.0 12.3 (4.4 ) 7.9 — — — 12.4 351.5 (233.1 ) 118.4 305.6 (225.4 ) 80.2 Indefinite-lived intangible assets In-process research and development (Note 4) 218.1 — 218.1 263.0 — 263.0 $ 569.6 $ (233.1 ) $ 336.5 $ 568.6 $ (225.4 ) $ 343.2 |
Schedule of Indefinite-Lived Other Intangible Assets | Other intangible assets consist of the following (in millions): December 31, Weighted-Average Useful Life (in years) 2019 2018 Cost Accumulated Net Cost Accumulated Net Finite-lived intangible assets Patents 7.4 $ 185.7 $ (182.1 ) $ 3.6 $ 185.8 $ (181.2 ) $ 4.6 Developed technology (Note 4) 12.9 153.5 (46.6 ) 106.9 119.8 (44.2 ) 75.6 Other 10.0 12.3 (4.4 ) 7.9 — — — 12.4 351.5 (233.1 ) 118.4 305.6 (225.4 ) 80.2 Indefinite-lived intangible assets In-process research and development (Note 4) 218.1 — 218.1 263.0 — 263.0 $ 569.6 $ (233.1 ) $ 336.5 $ 568.6 $ (225.4 ) $ 343.2 |
Schedule of Estimated Amortization Expense | Estimated amortization expense for each of the years ending December 31 is as follows (in millions): 2020 $ 7.2 2021 7.6 2022 7.9 2023 9.4 2024 13.1 |
DEBT AND CREDIT FACILITIES (Tab
DEBT AND CREDIT FACILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of the Notes | The following is a summary of the Notes as of December 31, 2019 and 2018 : December 31, 2019 2018 Amount Effective Amount Effective (in millions) (in millions) Fixed-rate 4.300% 2018 Notes $ 600.0 4.329 % $ 600.0 4.329 % Unamortized discount (1.2 ) (1.3 ) Unamortized debt issuance costs (4.4 ) (4.9 ) Total carrying amount $ 594.4 $ 593.8 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Instruments Measured at Fair Value on a Recurring Basis | The following table summarizes the Company's financial instruments which are measured at fair value on a recurring basis as of December 31, 2019 and 2018 (in millions): December 31, 2019 Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 0.7 $ 31.7 $ — $ 32.4 Available-for-sale investments: Bank time deposits — 13.1 — 13.1 Corporate debt securities — 489.2 — 489.2 Asset-backed securities — 141.7 — 141.7 U.S. government and agency securities 76.1 37.7 — 113.8 Foreign government bonds — 1.7 — 1.7 Commercial paper — 34.3 — 34.3 Investments held for deferred compensation plans 88.9 — — 88.9 Derivatives — 30.7 — 30.7 $ 165.7 $ 780.1 $ — $ 945.8 Liabilities Derivatives $ — $ 6.4 $ — $ 6.4 Deferred compensation plans 88.7 — — 88.7 Contingent consideration liabilities — — 172.5 172.5 $ 88.7 $ 6.4 $ 172.5 $ 267.6 December 31, 2018 Assets Cash equivalents $ — $ 11.8 $ — $ 11.8 Available-for-sale investments: Corporate debt securities — 455.6 — 455.6 Asset-backed securities — 110.2 — 110.2 U.S. government and agency securities 19.6 59.6 — 79.2 Foreign government bonds — 1.7 — 1.7 Commercial paper — 56.7 — 56.7 Municipal securities — 2.8 — 2.8 Investments held for deferred compensation plans 67.6 — — 67.6 Derivatives — 29.9 — 29.9 $ 87.2 $ 728.3 $ — $ 815.5 Liabilities Derivatives $ — $ 5.2 $ — $ 5.2 Deferred compensation plans 68.5 — — 68.5 Contingent consideration liabilities — — 178.6 178.6 $ 68.5 $ 5.2 $ 178.6 $ 252.3 |
Summary of Changes in Fair Value of Contingent Consideration Obligation | The following table summarizes the changes in fair value of the contingent consideration obligation for the year ended December 31, 2019 (in millions): December 31, 2019 2018 Fair value, beginning of year $ 178.6 $ 244.3 Payments (cash and issued shares) — (60.0 ) Changes in fair value (6.1 ) (5.7 ) Fair value, end of year $ 172.5 $ 178.6 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Financial Instruments Used to Manage Currency Exchange and Interest Rate Risk | The Company uses derivative financial instruments to manage its currency exchange rate risk and its interest rate risk as summarized below. Notional amounts are stated in United States dollar equivalents at spot exchange rates at the respective dates. The Company does not enter into these arrangements for trading or speculation purposes. Notional Amount December 31, 2019 December 31, 2018 (in millions) Foreign currency forward exchange contracts $ 1,336.5 $ 1,378.2 Cross currency swap contracts 300.0 300.0 |
Schedule of Location and Fair Value Amounts of Derivative Instruments | The following table presents the location and fair value amounts of derivative instruments reported in the consolidated balance sheets (in millions): Fair Value Balance Sheet Location December 31, 2019 December 31, 2018 Derivatives designated as hedging instruments Assets Foreign currency contracts Other current assets $ 14.2 $ 29.1 Foreign currency contracts Other assets $ 3.2 — Cross currency swap contracts Other assets $ 13.3 $ 0.8 Liabilities Foreign currency contracts Accrued and other liabilities $ 6.4 $ 4.4 Foreign currency contracts Other long-term liabilities $ — $ 0.8 |
Schedule of Effect of Master-Netting Agreements and Rights of Offset, Assets | The following table presents the effect of master-netting agreements and rights of offset on the consolidated balance sheets (in millions): Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheet December 31, 2019 Gross Amounts Financial Instruments Cash Collateral Received Net Amount Derivative Assets Foreign currency contracts $ 17.4 $ — $ 17.4 $ (5.7 ) $ — $ 11.7 Cross currency swap contracts $ 13.3 $ — $ 13.3 $ — $ — $ 13.3 Derivative Liabilities Foreign currency contracts $ 6.4 $ — $ 6.4 $ (5.7 ) $ — $ 0.7 December 31, 2018 Derivative Assets Foreign currency contracts $ 29.1 $ — $ 29.1 $ (3.6 ) $ — $ 25.5 Cross currency swap contracts $ 0.8 $ — $ 0.8 $ — $ — $ 0.8 Derivative Liabilities Foreign currency contracts $ 5.2 $ — $ 5.2 $ (3.6 ) $ — $ 1.6 |
Schedule of Effect of Master-Netting Agreements and Rights of Offset, Liabilities | The following table presents the effect of master-netting agreements and rights of offset on the consolidated balance sheets (in millions): Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheet December 31, 2019 Gross Amounts Financial Instruments Cash Collateral Received Net Amount Derivative Assets Foreign currency contracts $ 17.4 $ — $ 17.4 $ (5.7 ) $ — $ 11.7 Cross currency swap contracts $ 13.3 $ — $ 13.3 $ — $ — $ 13.3 Derivative Liabilities Foreign currency contracts $ 6.4 $ — $ 6.4 $ (5.7 ) $ — $ 0.7 December 31, 2018 Derivative Assets Foreign currency contracts $ 29.1 $ — $ 29.1 $ (3.6 ) $ — $ 25.5 Cross currency swap contracts $ 0.8 $ — $ 0.8 $ — $ — $ 0.8 Derivative Liabilities Foreign currency contracts $ 5.2 $ — $ 5.2 $ (3.6 ) $ — $ 1.6 |
Schedule of Effect of Derivative Instruments | The following tables present the effect of derivative and non-derivative hedging instruments on the consolidated statements of operations and consolidated statements of comprehensive income: Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income 2019 2018 2019 2018 (in millions) (in millions) Cash flow hedges Foreign currency contracts $ 23.5 $ 35.9 Cost of sales $ 40.9 $ (17.3 ) Selling, general, and administrative expenses $ 1.9 $ (2.3 ) Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) Location of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) 2019 2018 2019 2018 (in millions) (in millions) Net investment hedges Cross currency swap contracts $ 12.5 $ 0.8 Interest expense $ 6.6 $ 3.5 Foreign currency denominated debt $ — $ 6.8 In June 2018, the Company repaid and dedesignated its €370.0 million of outstanding long-term debt which had been previously designated as a net investment hedge, and concurrently entered into cross currency swap contracts, which were designated as a net investment hedge. The cross currency swaps have an expiration date of June 15, 2028. At maturity of the cross currency swap contracts, the Company will deliver the notional amount of €257.2 million and will receive $300.0 million from the counterparties. The Company will receive semi-annual interest payments from the counterparties based on a fixed interest rate until maturity of the agreements. Amount of Gain or (Loss) Recognized in Income on Derivative (a) Location of Gain or (Loss) Recognized in Income on Derivative 2019 2018 2017 (in millions) Fair value hedges Foreign currency contracts Other (income) expense, net $ 1.4 $ 0.5 $ — Interest rate swap agreements Interest expense $ — $ — $ (1.1 ) ___________________________________________________________ (a) The gains and losses on the interest rate swap agreements were fully offset by the changes in the fair value of the fixed-rate debt being hedged. In December 2017, the interest rate swap was settled at a loss of $0.7 million , which was amortized to interest expense over the remaining life of the debt. Amount of Gain or (Loss) Recognized in Income on Derivative Location of Gain or (Loss) Recognized in Income on Derivative 2019 2018 2017 (in millions) Derivatives not designated as hedging instruments Foreign currency contracts Other (income) expense, net $ 0.3 $ 9.7 $ (11.5 ) |
Disclosure of Fair Value Hedging Instruments and Cash Flow Hedging Instruments, Statements Of Financial Performance And Financial Position, Location | The following table presents the effect of cash flow hedge accounting on the consolidated statements of operations: Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Twelve Months Ended December 31, 2019 Cost of sales Selling, general, and administrative expenses Other (Income) Expense, net Total amounts of income and expense line items shown in the consolidated statements of operations in which the effects of fair value or cash flow hedges are recorded $ (1,114.4 ) $ (1,242.2 ) $ 8.2 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships: Foreign currency contracts: Hedged items — — 2.9 Derivatives designated as hedging instruments — — (2.9 ) Amount excluded from effectiveness testing recognized in earnings based on an amortization approach — — 4.3 Gain (loss) on cash flow hedging relationships: Foreign currency contracts: Amount of gain (loss) reclassified from accumulated OCI into income $ 40.9 $ 1.9 $ — Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Twelve Months Ended December 31, 2018 Cost of sales Selling, general, and administrative expenses Other (Income) Expense, net Total amounts of income and expense line items shown in the consolidated statements of operations in which the effects of fair value or cash flow hedges are recorded $ (939.4 ) $ (1,088.5 ) $ 4.0 The effects of fair value and cash flow hedging: Gain (loss) on fair value hedging relationships: Foreign currency contracts: Hedged items — — — Derivatives designated as hedging instruments — — — Amount excluded from effectiveness testing recognized in earnings based on an amortization approach — — 0.5 Gain (loss) on cash flow hedging relationships: Foreign currency contracts: Amount of gain (loss) reclassified from accumulated OCI into income $ (17.3 ) $ (2.3 ) $ — |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Information Regarding Defined Benefit Pension Plans | Years Ended December 31, 2019 2018 (in millions) Change in projected benefit obligation: Beginning of year $ 97.4 $ 114.9 Service cost 5.2 6.0 Interest cost 0.9 0.8 Participant contributions 1.3 1.2 Actuarial loss 8.2 0.7 Benefits paid (4.2 ) (0.3 ) Plan amendment (4.6 ) (2.0 ) Settlements and curtailment gain — (22.5 ) Currency exchange rate changes and other 1.0 (1.4 ) End of year $ 105.2 $ 97.4 Change in fair value of plan assets: Beginning of year $ 60.4 $ 71.2 Actual return on plan assets 2.0 (0.8 ) Employer contributions 2.6 3.9 Participant contributions 1.3 1.2 Settlements — (14.4 ) Benefits paid (4.2 ) (0.3 ) Currency exchange rate changes and other 1.1 (0.4 ) End of year $ 63.2 $ 60.4 Funded Status Projected benefit obligation $ (105.2 ) $ (97.4 ) Plan assets at fair value 63.2 60.4 Underfunded status $ (42.0 ) $ (37.0 ) Net amounts recognized on the consolidated balance sheet: Other long-term liabilities $ 42.0 $ 37.0 Accumulated other comprehensive loss, net of tax: Net actuarial loss $ (26.3 ) $ (19.4 ) Net prior service cost 6.7 2.3 Deferred income tax benefit 4.2 3.6 Total $ (15.4 ) $ (13.5 ) |
Components of Net Periodic Benefit Cost | The components of net periodic pension benefit cost (credit) are as follows (in millions): Years Ended 2019 2018 2017 Service cost, net $ 5.2 $ 6.0 $ 7.9 Interest cost 0.9 0.8 1.0 Expected return on plan assets (1.4 ) (1.3 ) (2.0 ) Settlements and curtailment gain — (7.4 ) (6.3 ) Special termination benefits — — 0.6 Amortization of actuarial loss 0.9 0.8 0.9 Amortization of prior service (credit) cost (0.2 ) (0.1 ) 0.2 Net periodic pension benefit cost (credit) $ 5.4 $ (1.2 ) $ 2.3 |
Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations | The weighted-average assumptions used to determine the benefit obligations are as follows: December 31, 2019 2018 Discount rate 0.5 % 0.9 % Rate of compensation increase 2.7 % 2.8 % Social securities increase 1.6 % 1.8 % Pension increase 1.8 % 1.8 % The weighted-average assumptions used to determine the net periodic pension benefit cost are as follows: Years ended December 31, 2019 2018 2017 Discount rate 0.9 % 0.9 % 0.7 % Expected return on plan assets 2.3 % 2.3 % 2.4 % Rate of compensation increase 2.8 % 2.6 % 2.5 % Social securities increase 1.8 % 1.5 % 1.4 % Pension increase 1.8 % 1.8 % 0.3 % |
Schedule of Target Weighted-Average Asset Allocations and Fair Value | Target weighted-average asset allocations at December 31, 2019 , by asset category, are as follows: Equity securities 22.3 % Debt securities 48.3 % Real estate 6.9 % Other 22.5 % Total 100.0 % The fair values of the Company's defined benefit plan assets at December 31, 2019 and 2018 , by asset category, are as follows (in millions): December 31, 2019 Level 1 Level 2 Level 3 Total Asset Category Cash $ 3.8 $ — $ — $ 3.8 Equity securities: United States equities 3.0 — — 3.0 International equities 11.2 — — 11.2 Debt securities: United States government bonds 8.2 — — 8.2 International government bonds 22.3 — — 22.3 Real estate — 4.4 — 4.4 Mortgages — 2.3 — 2.3 Insurance contracts — — 0.9 0.9 Total plan assets measured at fair value $ 48.5 $ 6.7 $ 0.9 56.1 Alternative investments measured at net asset value (a) 7.1 Total plan assets $ 63.2 December 31, 2018 Level 1 Level 2 Level 3 Total Asset Category Cash $ 7.0 $ — $ — $ 7.0 Equity securities: United States equities 0.5 — — 0.5 International equities 9.3 — — 9.3 Debt securities: United States government bonds 6.4 — — 6.4 International government bonds 23.2 — — 23.2 Real estate — 4.1 — 4.1 Mortgages — 2.2 — 2.2 Insurance contracts — — 1.0 1.0 Total plan assets $ 46.4 $ 6.3 $ 1.0 $ 53.7 Alternative investments measured at net asset value (a) 6.7 Total plan assets $ 60.4 _______________________________________ (a) Certain investments that were measured at net asset value per share have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the total plan assets. |
Summary of Changes in Fair Value of Defined Benefit Plan Assets Classified as Level 3 | The following table summarizes the changes in fair value of the Company's defined benefit plan assets that have been classified as Level 3 for the years ended December 31, 2019 and 2018 (in millions): Insurance Balance at December 31, 2017 $ 2.7 Actual return on plan assets: Relating to assets still held at December 31, 2018 (1.6 ) Currency exchange rate impact (0.1 ) Balance at December 31, 2018 1.0 Purchases, sales and settlements (0.1 ) Balance at December 31, 2019 $ 0.9 |
Schedule of Benefit Payments Which Reflect Expected Future Service | The following benefit payments, which reflect expected future service, as appropriate, at December 31, 2019 , are expected to be paid (in millions): 2020 $ 4.0 2021 3.6 2022 4.1 2023 5.7 2024 5.1 2024-2026 28.1 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accelerated Share Repurchases | The following table summarizes the terms of the ASR agreements (dollars and shares in millions, except per share data): Initial Delivery Final Settlement Agreement Date Amount Paid Shares Received Price per Share (a) Value of Shares as % of Contract Value Settlement Date Total Shares Received Average Price per Share (a) November 2017 $ 150.0 1.1 $ 109.86 80 % December 2017 1.3 $ 114.85 April 2018 $ 400.0 2.5 $ 127.36 80 % July 2018 2.8 $ 142.37 October 2018 $ 250.0 1.4 $ 139.22 80 % November 2018 1.7 $ 150.54 May 2019 $ 150.0 0.7 $ 178.66 80 % May 2019 0.8 $ 178.42 May 2019 $ 100.0 0.5 $ 170.02 80 % June 2019 0.6 $ 178.46 |
Schedule of Weighted-Average Assumptions for Options Granted | The Black-Scholes option pricing model was used with the following weighted-average assumptions for options granted during the following periods: Option Awards 2019 2018 2017 Average risk-free interest rate 2.3 % 2.9 % 1.8 % Expected dividend yield None None None Expected volatility 30 % 29 % 33 % Expected life (years) 5.1 5.0 4.6 Fair value, per share $ 54.51 $ 42.51 $ 33.74 |
Schedule of Weighted-Average Assumptions for ESPP Subscriptions | The Black-Scholes option pricing model was used with the following weighted-average assumptions for ESPP subscriptions granted during the following periods: ESPP 2019 2018 2017 Average risk-free interest rate 2.4 % 1.7 % 0.8 % Expected dividend yield None None None Expected volatility 32 % 33 % 33 % Expected life (years) 0.6 0.6 0.6 Fair value, per share $ 49.29 $ 36.53 $ 25.69 |
Schedule of Stock Option Activity | Stock option activity during the year ended December 31, 2019 under the Program and the Nonemployee Directors Program was as follows (in millions, except years and per-share amounts): Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding as of December 31, 2018 7.2 $ 73.42 Options granted 0.7 179.53 Options exercised (2.2 ) 49.59 Outstanding as of December 31, 2019 5.7 96.57 3.4 years $ 780.9 Exercisable as of December 31, 2019 3.8 72.07 2.5 years 611.4 Vested and expected to vest as of December 31, 2019 5.4 94.13 3.3 years 756.7 |
Schedule of Restricted Stock Unit Activity | The following table summarizes nonvested restricted stock unit activity during the year ended December 31, 2019 under the Program and the Nonemployee Directors Program (in millions, except per-share amounts): Shares Weighted- Average Grant-Date Fair Value Nonvested as of December 31, 2018 1.0 $ 113.86 Granted (a) 0.3 182.70 Vested (0.3 ) 90.78 Forfeited (b) (0.1 ) 118.74 Nonvested as of December 31, 2019 0.9 140.68 _______________________________________________________________________________ (a) The shares granted includes 33,225 shares of market-based restricted stock units granted during 2019 , which represents the targeted number of shares to be issued. (b) The shares forfeited includes 10,660 shares related to the cancellation of market-based restricted stock units since the payout percentage achieved at the end of the performance period was less than target. As described above, the actual number of shares ultimately issued is determined based on the Company's total stockholder return relative to a selected industry peer group. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of Activity for Each Component of Accumulated Other Comprehensive Loss | Presented below is a summary of activity for each component of " Accumulated Other Comprehensive Loss " for the years ended December 31, 2019 , 2018 , and 2017 . Foreign Currency Translation Adjustments Unrealized Gain (Loss) on Hedges Unrealized Gain (Loss) on Available-for-sale Investments Unrealized Pension Costs (a) Total Accumulated Other Comprehensive Loss (in millions) December 31, 2016 $ (197.6 ) $ 16.7 $ 0.1 $ (17.6 ) $ (198.4 ) Other comprehensive income (loss) before reclassifications 84.1 (43.5 ) (8.3 ) 9.7 42.0 Amounts reclassified from accumulated other comprehensive loss — (6.5 ) 3.1 (5.1 ) (8.5 ) Deferred income tax benefit (expense) 13.4 19.4 0.5 (1.1 ) 32.2 December 31, 2017 (100.1 ) (13.9 ) (4.6 ) (14.1 ) (132.7 ) Impact from adoption of ASU 2016-16 and ASU 2018-02 (4.9 ) (2.9 ) — — (7.8 ) January 1, 2018 (105.0 ) (16.8 ) (4.6 ) (14.1 ) (140.5 ) Other comprehensive (loss) income before reclassifications (36.7 ) 35.1 (3.1 ) 7.6 2.9 Amounts reclassified from accumulated other comprehensive loss — 19.1 2.9 (6.7 ) 15.3 Deferred income tax expense (1.9 ) (13.8 ) (0.2 ) (0.3 ) (16.2 ) December 31, 2018 (143.6 ) 23.6 (5.0 ) (13.5 ) (138.5 ) Other comprehensive (loss) income before reclassifications (1.5 ) 27.9 7.9 (3.2 ) 31.1 Amounts reclassified from accumulated other comprehensive loss (6.6 ) (44.2 ) 0.4 0.7 (49.7 ) Deferred income tax (expense) benefit (3.1 ) 5.2 (1.6 ) 0.6 1.1 December 31, 2019 $ (154.8 ) $ 12.5 $ 1.7 $ (15.4 ) $ (156.0 ) _______________________________________________________________________________ |
Change in Unrealized Pension Costs | For the years ended December 31, 2019 , 2018 , and 2017 , the change in unrealized pension costs consisted of the following (in millions): Pre-Tax Tax (Expense) Benefit Net of Tax 2019 Prior service credit arising during period $ 4.6 $ (0.6 ) $ 4.0 Amortization of prior service credit (0.2 ) 0.1 (0.1 ) Net prior service credit arising during period 4.4 (0.5 ) 3.9 Net actuarial loss arising during period (6.9 ) 1.1 (5.8 ) Unrealized pension costs, net $ (2.5 ) $ 0.6 $ (1.9 ) 2018 Prior service credit arising during period $ 3.3 $ (0.9 ) $ 2.4 Amortization of prior service credit (0.1 ) — (0.1 ) Net prior service credit arising during period 3.2 (0.9 ) 2.3 Net actuarial loss arising during period (2.3 ) 0.6 (1.7 ) Unrealized pension credits, net $ 0.9 $ (0.3 ) $ 0.6 2017 Prior service credit arising during period $ 3.5 $ (0.4 ) $ 3.1 Amortization of prior service cost 0.2 — 0.2 Net prior service credit arising during period 3.7 (0.4 ) 3.3 Net actuarial gain arising during period 0.9 (0.7 ) 0.2 Unrealized pension credits, net $ 4.6 $ (1.1 ) $ 3.5 |
Schedule of Information About Amounts Reclassified from Accumulated Other Comprehensive Loss | The following table provides information about amounts reclassified from " Accumulated Other Comprehensive Loss " (in millions): Years Ended December 31, Details about Accumulated Other Comprehensive Loss Components 2019 2018 Affected Line on Consolidated Statements of Operations Foreign currency translation adjustments $ 6.6 $ — Other (income) expense, net (1.6 ) — Provision for income taxes $ 5.0 $ — Net of tax Gain (loss) on hedges $ 40.9 $ (17.3 ) Cost of sales 1.9 (2.3 ) Selling, general, and administrative expenses 1.4 0.5 Other (income) expense, net 44.2 (19.1 ) Total before tax (11.0 ) 4.4 Provision for income taxes $ 33.2 $ (14.7 ) Net of tax Gain (loss) on available-for-sale investments $ (0.4 ) $ (2.9 ) Other (income) expense, net (0.3 ) 0.2 Provision for income taxes $ (0.7 ) $ (2.7 ) Net of tax Amortization of pension adjustments $ — $ 7.1 Special (gains) charges, net (0.7 ) (0.4 ) Other (income) expense, net (0.7 ) 6.7 Total before tax 0.1 (0.6 ) Provision for income taxes $ (0.6 ) $ 6.1 Net of tax |
OTHER (INCOME) EXPENSE, NET (Ta
OTHER (INCOME) EXPENSE, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense, Net | Years Ended December 31, 2019 2018 2017 (in millions) Foreign exchange (gains) losses, net $ (5.9 ) $ (6.7 ) $ 5.4 (Gain) loss on investments (0.5 ) 1.7 2.7 Non-service cost components of net periodic pension benefit cost (credit) 0.2 (0.1 ) (6.1 ) Other (2.0 ) 1.1 (0.6 ) Total other (income) expense, net $ (8.2 ) $ (4.0 ) $ 1.4 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Provisions for Income Taxes | The Company's income before provision for income taxes was generated from United States and international operations as follows (in millions): Years Ended December 31, 2019 2018 2017 United States $ 383.4 $ 266.1 $ 491.5 International, including Puerto Rico 783.1 495.3 543.4 $ 1,166.5 $ 761.4 $ 1,034.9 |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following (in millions): Years Ended December 31, 2019 2018 2017 Current United States: Federal $ 31.3 $ 10.9 $ 330.8 State and local 48.7 13.6 32.8 International, including Puerto Rico 29.1 35.9 60.6 Current income tax expense $ 109.1 $ 60.4 $ 424.2 Deferred United States: Federal $ 28.3 $ (16.1 ) $ 39.3 State and local (18.3 ) (22.4 ) (3.8 ) International, including Puerto Rico 0.5 17.3 (8.4 ) Deferred income tax expense (benefit) 10.5 (21.2 ) 27.1 Total income tax provision $ 119.6 $ 39.2 $ 451.3 |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows (in millions): December 31, 2019 2018 Deferred tax assets Compensation and benefits $ 91.6 $ 71.4 Benefits from uncertain tax positions 22.5 22.2 Net tax credit carryforwards 108.4 94.4 Net operating loss carryforwards 57.6 42.1 Accrued liabilities 6.1 57.9 Inventories 12.9 7.2 State income taxes 0.5 0.6 Investments 1.5 1.6 Lease liability obligations 18.4 — Other 1.9 4.1 Total deferred tax assets 321.4 301.5 Deferred tax liabilities Property, plant, and equipment (22.6 ) (24.5 ) Cash flow and net investment hedges (6.8 ) (4.5 ) Deferred tax on foreign earnings (0.1 ) (0.6 ) Right-of-use assets (17.5 ) — Inventories — (3.9 ) Other intangible assets (71.0 ) (77.1 ) Other (2.2 ) (0.1 ) Total deferred tax liabilities (120.2 ) (110.7 ) Valuation allowance (65.8 ) (46.7 ) Net deferred tax assets $ 135.4 $ 144.1 |
Summary of Net Operating Loss Carryforwards | Net operating loss and capital loss carryforwards and the related carryforward periods at December 31, 2019 are summarized as follows (in millions): Carryforward Tax Benefit Valuation Net Tax Carryforward United States federal net operating losses $ 35.9 $ 7.5 $ — $ 7.5 2030-2037 United States federal net operating losses 11.3 2.4 — 2.4 Indefinite United States state net operating losses 32.1 2.1 (2.1 ) — 2026-2039 United States state net operating losses 1.0 — — — Indefinite Non-United States net operating losses 52.4 4.7 (4.1 ) 0.6 2020-2027 Non-United States net operating losses 239.1 40.7 (35.2 ) 5.5 Indefinite United States capital losses 34.1 0.5 (0.5 ) — 2022 Total $ 405.9 $ 57.9 $ (41.9 ) $ 16.0 |
Summary of Tax Credit Carryforwards | The gross tax credit carryforwards and the related carryforward periods at December 31, 2019 are summarized as follows (in millions): Carryforward Valuation Net Tax Carryforward California research expenditure tax credits $ 124.4 $ — $ 124.4 Indefinite Federal research expenditure tax credits 1.5 — 1.5 2026-2039 Puerto Rico purchases credit 21.8 (21.8 ) — Indefinite Total $ 147.7 $ (21.8 ) $ 125.9 |
Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate | A reconciliation of the United States federal statutory income tax rate to the Company's effective income tax rate is as follows (in millions): Years Ended December 31, 2019 2018 2017 Income tax expense at U.S. federal statutory rate $ 245.0 $ 159.9 $ 362.2 Foreign income taxed at different rates (75.0 ) (16.2 ) (106.9 ) State and local taxes, net of federal tax benefit 11.9 6.8 11.5 Tax credits, federal and state (42.9 ) (36.7 ) (25.8 ) Build (release) of reserve for prior years' uncertain tax positions 5.0 (35.5 ) (7.7 ) U.S. tax on foreign earnings, net of credits (2.9 ) (12.2 ) (30.3 ) Tax on global intangible low-taxed income 32.0 — — Foreign-derived intangible income deduction (7.2 ) (6.6 ) — Deductible employee share-based compensation (57.6 ) (41.8 ) (48.2 ) Nondeductible employee share-based compensation 3.2 2.8 3.9 Impact related to 2017 U.S. Tax Reform 2.8 15.8 294.1 Other 5.3 2.9 (1.5 ) Income tax provision $ 119.6 $ 39.2 $ 451.3 |
Reconciliation of Beginning and Ending Amount of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of uncertain tax positions, excluding interest, penalties, and foreign exchange, is as follows (in millions): December 31, 2019 2018 2017 Uncertain gross tax positions, January 1 $ 150.7 $ 225.6 $ 245.5 Current year tax positions 55.4 37.8 77.7 Increase in prior year tax positions 0.8 13.9 63.7 Decrease in prior year tax positions (3.8 ) (78.8 ) (65.0 ) Settlements — (46.5 ) (95.3 ) Lapse of statutes of limitations — (1.3 ) (1.0 ) Uncertain gross tax positions, December 31 $ 203.1 $ 150.7 $ 225.6 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Information About Reportable Segments and Reconciliation of Segment Net Sales and Pre-Tax Income | The table below presents reconciliations of segment net sales to consolidated net sales and segment operating income to consolidated income before provision for income taxes ("pre-tax income") (in millions): Years Ended December 31, 2019 2018 2017 Net Sales Reconciliation Segment net sales $ 4,333.5 $ 3,676.0 $ 3,422.1 Foreign currency 14.5 46.8 13.2 Consolidated net sales $ 4,348.0 $ 3,722.8 $ 3,435.3 Pre-tax Income Reconciliation Segment operating income $ 2,614.5 $ 2,115.5 $ 1,914.6 Unallocated amounts: Corporate items (1,439.7 ) (1,058.1 ) (903.5 ) Special charges, net (64.6 ) (116.2 ) (9.7 ) Intellectual property litigation (expenses) income, net (33.4 ) (214.0 ) 73.3 Change in fair value of contingent consideration liabilities, net 6.1 5.7 9.9 Foreign currency 63.9 15.3 4.8 Consolidated operating income 1,146.8 748.2 1,089.4 Non-operating income (expense) 19.7 13.2 (54.5 ) Consolidated pre-tax income $ 1,166.5 $ 761.4 $ 1,034.9 The table below presents information about Edwards Lifesciences' reportable segments (in millions): Years Ended December 31, 2019 2018 2017 Segment Net Sales United States $ 2,532.7 $ 2,055.2 $ 1,907.6 Europe 926.1 826.4 800.7 Japan 441.4 398.4 356.5 Rest of World 433.3 396.0 357.3 Total segment net sales $ 4,333.5 $ 3,676.0 $ 3,422.1 Segment Operating Income United States $ 1,742.3 $ 1,368.1 $ 1,242.3 Europe 472.0 394.8 378.4 Japan 272.3 237.0 201.1 Rest of World 127.9 115.6 92.8 Total segment operating income $ 2,614.5 $ 2,115.5 $ 1,914.6 |
Schedule of Enterprise-Wide Information | Enterprise-wide information is based on actual foreign exchange rates used in the Company's consolidated financial statements. As of or for the Years Ended 2019 2018 2017 (in millions) Net Sales by Geographic Area United States $ 2,532.7 $ 2,055.3 $ 1,907.6 Europe 941.2 885.1 831.0 Japan 444.7 396.8 350.3 Rest of World 429.4 385.6 346.4 $ 4,348.0 $ 3,722.8 $ 3,435.3 Net Sales by Major Product Area Transcatheter Aortic Valve Replacement $ 2,737.9 $ 2,283.8 $ 2,023.8 Transcatheter Mitral and Tricuspid Therapies 28.2 2.9 3.4 Surgical Structural Heart 841.7 761.6 807.1 Critical Care 740.2 674.5 601.0 $ 4,348.0 $ 3,722.8 $ 3,435.3 Long-lived Tangible Assets by Geographic Area United States $ 849.1 $ 642.1 $ 608.7 Europe 101.5 36.6 28.4 Japan 21.7 6.7 7.6 Rest of World 269.4 214.4 139.7 $ 1,241.7 $ 899.8 $ 784.4 |
QUARTERLY FINANCIAL RESULTS A_2
QUARTERLY FINANCIAL RESULTS AND MARKET FOR THE COMPANY'S STOCK (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Results and Market for the Company's Stock | Years Ended December 31, First Quarter Second Quarter Third Quarter Fourth Quarter Total Year (in millions, except per share data) 2019 Net sales $ 993.0 $ 1,086.9 $ 1,094.0 $ 1,174.1 $ 4,348.0 Gross profit 761.2 782.9 801.6 887.9 3,233.6 Net income (a) 249.7 242.3 274.7 280.2 1,046.9 Earnings per common share (a): Basic 1.20 1.16 1.32 1.34 5.03 Diluted 1.18 1.14 1.30 1.32 4.93 Market price: High $ 197.86 $ 195.00 $ 228.19 $ 247.64 $ 247.64 Low 140.86 165.69 183.01 213.23 140.86 2018 Net sales $ 894.8 $ 943.7 $ 906.6 $ 977.7 $ 3,722.8 Gross profit 661.2 697.5 681.7 743.0 2,783.4 Net income (b) 206.6 282.7 225.9 7.0 722.2 Earnings per common share (b): Basic 0.98 1.35 1.08 0.03 3.45 Diluted 0.96 1.32 1.06 0.03 3.38 Market price: High $ 143.22 $ 155.22 $ 175.00 $ 174.99 $ 175.00 Low 110.68 123.00 134.53 136.44 110.68 _______________________________________________________________________________ (a) The first quarter of 2019 includes a $24.0 million charge related to the acquisition of early-stage transcatheter intellectual property and associated clinical and regulatory experience, the second and third quarters of 2019 include a $46.2 million and $26.9 million charge, respectively, related to the write off of inventory, and the fourth quarter of 2019 includes a $40.6 million charge related to the impairment of certain in-process research and development assets. (b) The fourth quarter of 2018 includes a $116.2 million charge related to the impairment of certain developed technology and in-process research and development assets and a $180.0 million charge related to a litigation settlement. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Deferred revenue | $ 8.4 | $ 7.6 |
Revenue recognized that was previously deferred | $ 5.5 | $ 2.9 |
Hemodynamic Monitors | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract length | The Company sells separately priced service contracts, which range from 12 months to 36 months, to owners of its hemodynamic monitors. |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Shipping and Handling Costs (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Product Information [Line Items] | |||
Cost of sales | $ 1,114.4 | $ 939.4 | $ 875.3 |
Shipping and Handling | |||
Product Information [Line Items] | |||
Cost of sales | $ 71.5 | $ 70.6 | $ 72.6 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investments (Narrative) (Details) | Dec. 31, 2019 |
Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investment, ownership percentage | 5.00% |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Allowance for Doubtful Accounts (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 14.7 | $ 13.6 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Period prior to expiration date which triggers write-down of inventory | 6 months | ||
Period used to evaluate slow-moving inventory levels | 2 years | ||
Allowance for excess and slow moving inventory | $ 42.6 | $ 30.3 | |
General and administrative costs allocated to inventory | 56.6 | 45 | $ 39.3 |
General and administrative costs included in inventory | 22.8 | 18.3 | |
Finished goods inventories held on consignment | $ 128.7 | $ 106.5 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant, and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense for property, plant and equipment | $ 84.7 | $ 74.9 | $ 74.1 |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 40 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 15 years | ||
Software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | |
In-process research and development (Note 4) | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment of intangible assets | $ 40.6 | ||
Developed Technology and In-process Research and Development | Valtech | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment of intangible assets | $ 116.2 | $ 116.2 | $ 116.2 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic: | |||||||||||
Net income | $ 280.2 | $ 274.7 | $ 242.3 | $ 249.7 | $ 7 | $ 225.9 | $ 282.7 | $ 206.6 | $ 1,046.9 | $ 722.2 | $ 583.6 |
Weighted-average shares outstanding (in shares) | 208.3 | 209.2 | 210.9 | ||||||||
Basic earnings per share (in dollars per share) | $ 1.34 | $ 1.32 | $ 1.16 | $ 1.20 | $ 0.03 | $ 1.08 | $ 1.35 | $ 0.98 | $ 5.03 | $ 3.45 | $ 2.77 |
Diluted: | |||||||||||
Net income | $ 280.2 | $ 274.7 | $ 242.3 | $ 249.7 | $ 7 | $ 225.9 | $ 282.7 | $ 206.6 | $ 1,046.9 | $ 722.2 | $ 583.6 |
Weighted-average shares outstanding (in shares) | 208.3 | 209.2 | 210.9 | ||||||||
Dilutive effect of stock plans (in shares) | 3.9 | 4.4 | 5 | ||||||||
Dilutive weighted-average shares outstanding (in shares) | 212.2 | 213.6 | 215.9 | ||||||||
Diluted earnings per share (in dollars per share) | $ 1.32 | $ 1.30 | $ 1.14 | $ 1.18 | $ 0.03 | $ 1.06 | $ 1.32 | $ 0.96 | $ 4.93 | $ 3.38 | $ 2.70 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings per Share (Narrative) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock compensation plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the computation of earnings per share (in shares) | 0.5 | 1.1 | 1.9 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allocation of stock-based compensation expense | |||
Total stock-based compensation expense | $ 81.3 | $ 71 | $ 61.6 |
Cost of sales | |||
Allocation of stock-based compensation expense | |||
Total stock-based compensation expense | 14.7 | 11.4 | 9.2 |
Selling, general, and administrative expenses | |||
Allocation of stock-based compensation expense | |||
Total stock-based compensation expense | 51.2 | 46.3 | 40.7 |
Research and development expenses | |||
Allocation of stock-based compensation expense | |||
Total stock-based compensation expense | $ 15.4 | $ 13.3 | $ 11.7 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock-based Compensation (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage vesting upon retirement for each full year of employment subsequent to the grant date | 25.00% |
SUMMARY OF SIGNIFICANT ACCOU_15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivatives (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Period when cash flows associated with future transactions and certain local currency expenses are expected to occur | 13 months |
SUMMARY OF SIGNIFICANT ACCOU_16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - New Accounting Standards (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Concentration Risk [Line Items] | ||
Operating lease right-of-use assets | $ 80.1 | |
Operating lease liability | $ 84.4 | |
Accounting Standards Update 2016-02 | ||
Concentration Risk [Line Items] | ||
Operating lease right-of-use assets | $ 58.7 | |
Operating lease liability | $ 58.7 |
INTELLECTUAL PROPERTY LITIGAT_2
INTELLECTUAL PROPERTY LITIGATION EXPENSES (INCOME), NET (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2019 | Nov. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | ||||||
Gain (loss) on litigation settlement | $ 180 | |||||
Transcatheter Mitral Valve Replacement | ||||||
Loss Contingencies [Line Items] | ||||||
Legal fees | $ 33.4 | $ 214 | $ 39.2 | |||
Gain (loss) on litigation settlement | $ 112.5 | |||||
Boston Scientific | ||||||
Loss Contingencies [Line Items] | ||||||
Legal fees | $ 180 |
SPECIAL CHARGES - Impairment of
SPECIAL CHARGES - Impairment of Long-lived Assets (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | ||||||
Other than temporary impairment | $ 31.2 | |||||
Developed Technology and In-process Research and Development | Valtech | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of intangible assets | $ 116.2 | $ 116.2 | $ 116.2 | |||
Rest of World | Developed technology (Note 4) | Valtech | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of intangible assets | $ 40.6 | $ 40.6 | ||||
Rest of World | Developed Technology and In-process Research and Development | Valtech | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of intangible assets | $ 116.2 |
SPECIAL CHARGES - Acquisition o
SPECIAL CHARGES - Acquisition of Intellectual Property (Details) $ in Millions | Mar. 31, 2019USD ($) |
Early-stage Transcatheter Intellectual Property | |
Business Acquisition [Line Items] | |
Acquisition transaction costs | $ 24 |
SPECIAL CHARGES - Charitable Fo
SPECIAL CHARGES - Charitable Foundation Contribution (Narrative) (Details) $ in Millions | 1 Months Ended |
Dec. 31, 2017USD ($) | |
Contribution to the Edwards Lifesciences Foundation | Edwards Lifesciences Foundation | |
Related Party Transaction [Line Items] | |
Company contribution to the Edwards Lifesciences Foundation | $ 25 |
SPECIAL CHARGES - Gain on Step
SPECIAL CHARGES - Gain on Step Acquisition (Details) $ in Millions | 1 Months Ended |
Dec. 31, 2017USD ($) | |
Harpoon Medical | |
Business Acquisition [Line Items] | |
Remeasurement gain | $ 6.5 |
SPECIAL CHARGES - Realignment E
SPECIAL CHARGES - Realignment Expenses (Details) $ in Millions | 1 Months Ended | |
Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($)employee | |
Facility Closing | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 10.2 | |
Expected number of positions eliminated | employee | 232 | |
Defined benefit pension plans | ||
Restructuring Cost and Reserve [Line Items] | ||
Gain due to curtailment | $ 7.1 |
OTHER CONSOLIDATED FINANCIAL_3
OTHER CONSOLIDATED FINANCIAL STATEMENT DETAILS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts receivable, net | |||||
Trade accounts receivable | $ 552.3 | $ 465.8 | |||
Allowance for doubtful accounts | (8.7) | (8.9) | |||
Total accounts receivable, net | 543.6 | 456.9 | |||
Inventories | |||||
Raw materials | 118 | 111.5 | |||
Work in process | 121.7 | 144.8 | |||
Finished products | 401.2 | 350.7 | |||
Total inventories | 640.9 | 607 | |||
Property, plant, and equipment, net | |||||
Land | 98 | 90.7 | |||
Buildings and leasehold improvements | 619.8 | 497.4 | |||
Machinery and equipment | 466.3 | 432.4 | |||
Equipment with customers | 35.6 | 41.1 | |||
Software | 87.9 | 92.4 | |||
Construction in progress | 265 | 168.8 | |||
Total property, plant and equipment, gross | 1,572.6 | 1,322.8 | |||
Accumulated depreciation | (512.3) | (455.3) | |||
Total property, plant and equipment, net | 1,060.3 | 867.5 | |||
Accrued and other liabilities | |||||
Employee compensation and withholdings | 295.8 | 226.1 | |||
Litigation and insurance reserves (Note 18) | 20 | 196.7 | |||
Taxes payable | 52.9 | 31.3 | |||
Accrued rebates | 67.1 | 80 | |||
Property, payroll, and other taxes | 51.4 | 39.5 | |||
Research and development accruals | 51.4 | 48.9 | |||
Fair value of derivatives | 6.4 | 4.4 | |||
Accrued marketing expenses | 17.5 | 22.3 | |||
Accrued professional services | 10.1 | 11 | |||
Accrued realignment reserves | 16.7 | 6.8 | |||
Accrued relocation costs | 17.4 | 11.3 | |||
Other accrued liabilities | 89.8 | 64.3 | |||
Total accrued and other liabilities | 696.5 | 742.6 | |||
Inventory write off | $ 26.9 | $ 46.2 | 73.1 | 0 | $ 0 |
Cash paid during the year for: | |||||
Interest | 19.9 | 30.1 | 19.9 | ||
Income taxes | 61.5 | 223.7 | 143.7 | ||
Amounts included in the measurement of lease liabilities: | |||||
Operating Lease, Payments | 28.6 | ||||
Non-cash investing and financing transactions: | |||||
Fair value of shares issued in payment for contingent consideration liabilities (Note 11) | 0 | 34.3 | 0 | ||
Fair value of shares issued in connection with business combinations (Note 8) | 0 | 0 | 266.5 | ||
Right-of-use assets obtained in exchange for new lease liabilities | 49.6 | ||||
Capital expenditures accruals | 50.8 | 18.7 | 21.6 | ||
Treasury Stock | |||||
Retirement of treasury stock | 0 | ||||
Treasury Stock | |||||
Treasury Stock | |||||
Retirement of treasury stock | $ 0 | $ 0 | $ 2,746.2 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | $ 27.9 | ||
Lease commitments for leases not yet commenced | $ 1.6 | ||
Operating leases expense | $ 27 | $ 27.3 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 1 year | ||
Lease not yet commenced term of contract | 6 months | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 21 years | ||
Lease not yet commenced term of contract | 7 years |
LEASES - Assets and Liabilities
LEASES - Assets and Liabilities of Operating Leases (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 80.1 |
Operating lease liabilities, current portion | 25.5 |
Operating lease liabilities, long-term portion | 58.9 |
Total operating lease liabilities | $ 84.4 |
LEASES - Future Minimum Rental
LEASES - Future Minimum Rental Payments After Adoption of Topic 842 (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 27.4 |
2021 | 20 |
2022 | 14.2 |
2023 | 10.1 |
2024 | 5.6 |
Thereafter | 14.5 |
Total lease payments | 91.8 |
Imputed Interest | (7.4) |
Total lease liabilities | $ 84.4 |
Weighted-average remaining lease term (in years) | 5 years 3 months 18 days |
Weighted-average discount rate | 2.80% |
LEASES - Future Minimum Renta_2
LEASES - Future Minimum Rental Payments Prior to Adopting Topic 842 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 25.6 |
2020 | 21.5 |
2021 | 13.5 |
2022 | 9.9 |
2023 | 6.4 |
Thereafter | 14.3 |
Total obligations and commitments | $ 91.2 |
INVESTMENTS - Schedule of Inves
INVESTMENTS - Schedule of Investments in Debt Securities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale | ||
Cost | $ 790.5 | $ 711.3 |
Gross Unrealized Gains | 3.5 | 0.4 |
Gross Unrealized Losses | (0.2) | (5.5) |
Fair Value | 793.8 | 706.2 |
Held-to-maturity | ||
Cost | 100.2 | |
Fair Value | 100.2 | |
Bank time deposits | ||
Available-for-sale | ||
Cost | 13.1 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 13.1 | 0 |
Held-to-maturity | ||
Cost | 100.2 | 20 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 100.2 | 20 |
Commercial paper | ||
Available-for-sale | ||
Cost | 34.3 | 56.7 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 34.3 | 56.7 |
U.S. government and agency securities | ||
Available-for-sale | ||
Cost | 113.2 | 79.7 |
Gross Unrealized Gains | 0.6 | 0.2 |
Gross Unrealized Losses | 0 | (0.7) |
Fair Value | 113.8 | 79.2 |
International government bonds | ||
Available-for-sale | ||
Cost | 1.7 | 1.7 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1.7 | 1.7 |
Asset-backed securities | ||
Available-for-sale | ||
Cost | 141.2 | 110.6 |
Gross Unrealized Gains | 0.6 | 0.1 |
Gross Unrealized Losses | (0.1) | (0.5) |
Fair Value | 141.7 | 110.2 |
Corporate debt securities | ||
Available-for-sale | ||
Cost | 487 | 459.8 |
Gross Unrealized Gains | 2.3 | 0.1 |
Gross Unrealized Losses | (0.1) | (4.3) |
Fair Value | 489.2 | 455.6 |
Municipal securities | ||
Available-for-sale | ||
Cost | 0 | 2.8 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 0 | $ 2.8 |
INVESTMENTS - Schedule of Cost
INVESTMENTS - Schedule of Cost and Fair Value of Investments in Debt Securities, by Contractual Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Cost | ||
Due in 1 year or less | $ 100.2 | |
Due after 1 year through 5 years | 0 | |
Instruments not due at a single maturity date | 0 | |
Cost | 100.2 | |
Fair Value | ||
Due in 1 year or less | 100.2 | |
Due after 1 year through 5 years | 0 | |
Instruments not due at a single maturity date | 0 | |
Total | 100.2 | |
Cost | ||
Due in 1 year or less | 237.2 | |
Due after 1 year through 5 years | 439.1 | |
Instruments not due at a single maturity date | 114.2 | |
Cost | 790.5 | $ 711.3 |
Fair Value | ||
Due in 1 year or less | 237.6 | |
Due after 1 year through 5 years | 441.7 | |
Instruments not due at a single maturity date | 114.5 | |
Total | $ 793.8 | $ 706.2 |
INVESTMENTS - Schedule of Unrea
INVESTMENTS - Schedule of Unrealized Losses on Debt Securities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, continuous loss position less than 12 months | $ 154.8 | $ 182.1 |
Gross unrealized losses, continuous loss position less than 12 months | (0.2) | (1.2) |
Fair value, continuous loss position 12 months or greater | 0 | 321.5 |
Gross unrealized losses, continuous loss position 12 months or greater | 0 | (4.3) |
Total fair value, continuous loss position | 154.8 | 503.6 |
Total gross unrealized losses, continuous loss position | (0.2) | (5.5) |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, continuous loss position less than 12 months | 0.7 | |
Gross unrealized losses, continuous loss position less than 12 months | (0.1) | |
Fair value, continuous loss position 12 months or greater | 56.5 | |
Gross unrealized losses, continuous loss position 12 months or greater | (0.6) | |
Total fair value, continuous loss position | 57.2 | |
Total gross unrealized losses, continuous loss position | (0.7) | |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, continuous loss position less than 12 months | 73.4 | 4 |
Gross unrealized losses, continuous loss position less than 12 months | (0.1) | 0 |
Fair value, continuous loss position 12 months or greater | 0 | 61.3 |
Gross unrealized losses, continuous loss position 12 months or greater | 0 | (0.5) |
Total fair value, continuous loss position | 73.4 | 65.3 |
Total gross unrealized losses, continuous loss position | (0.1) | (0.5) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value, continuous loss position less than 12 months | 81.4 | 177.4 |
Gross unrealized losses, continuous loss position less than 12 months | (0.1) | (1.1) |
Fair value, continuous loss position 12 months or greater | 0 | 203.7 |
Gross unrealized losses, continuous loss position 12 months or greater | 0 | (3.2) |
Total fair value, continuous loss position | 81.4 | 381.1 |
Total gross unrealized losses, continuous loss position | $ (0.1) | $ (4.3) |
INVESTMENTS - Schedule of Inv_2
INVESTMENTS - Schedule of Investments in Unconsolidated Affiliates (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Equity method investments | ||
Cost | $ 10.7 | $ 9.1 |
Equity in losses | (4.5) | (4.7) |
Carrying value of equity method investments | 6.2 | 4.4 |
Equity securities | ||
Carrying value of non-marketable equity securities | 23.1 | 18.1 |
Total investments in unconsolidated affiliates | $ 29.3 | $ 22.5 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | |
Equity securities without readily determinable fair value, upward price adjustment, annual amount | $ 0.3 |
Other (income) expense, net | |
Debt and Equity Securities, FV-NI [Line Items] | |
Equity securities without readily determinable fair value, upward price adjustment, cumulative amount | 2 |
Equity securities without readily determinable fair value, downward price adjustment, cumulative amount | $ 1.9 |
ACQUISITIONS - CAS Medical Syst
ACQUISITIONS - CAS Medical Systems, Inc. (Details) - CAS Medical Systems, Inc. - USD ($) $ / shares in Units, $ in Millions | Apr. 18, 2019 | Feb. 11, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Consideration per share to be transferred (in dollars per share) | $ 2.45 | ||
Acquisition price, subject uncertain adjustments | $ 100 | ||
Cash purchase price | $ 100.8 | ||
Acquisition-related costs | $ 2 | ||
Developed technology (Note 4) | |||
Business Acquisition [Line Items] | |||
Weighted average useful life | 14 years | ||
Customer Relationships | |||
Business Acquisition [Line Items] | |||
Weighted average useful life | 10 years |
ACQUISITIONS - Harpoon Medical,
ACQUISITIONS - Harpoon Medical, Inc. (Details) - Harpoon Medical - USD ($) $ in Millions | Dec. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Nov. 30, 2017 |
Business Acquisition [Line Items] | ||||
Purchase price subject to certain adjustments | $ 119.5 | |||
Cash previously paid for cost method investment | $ 16 | |||
Net proceeds from sale of previous ownership | $ 8 | |||
Carrying value at acquisition date | 1.5 | |||
Remeasurement gain | $ 6.5 | |||
Potential milestone-driven payments | $ 150 | |||
Period to make additional pre-specified milestone-driven payments | 10 years | |||
Liability for estimated fair value of contingent milestone payment | $ 59.7 | |||
Portion of purchase price in escrow | $ 10 | |||
Escrow fund released period after acquisition | 12 months | |||
Acquisition-related costs | $ 0.4 | |||
Additional research and development expenditures to be incurred prior to product introduction | $ 41.4 | |||
Measurement Input, Discount Rate | Minimum | In-process research and development (Note 4) | ||||
Business Acquisition [Line Items] | ||||
Discount rate used to determine fair value | 0.180 | |||
Measurement Input, Discount Rate | Maximum | In-process research and development (Note 4) | ||||
Business Acquisition [Line Items] | ||||
Discount rate used to determine fair value | 0.190 | |||
Harpoon Medical | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage | 6.00% |
ACQUISITIONS - Summary of Fair
ACQUISITIONS - Summary of Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Apr. 18, 2019 | Dec. 01, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,167.7 | $ 1,112.2 | $ 1,126.5 | ||
Total purchase price, net of cash acquired | $ 100.2 | $ 0 | $ 192.9 | ||
CAS Medical Systems, Inc. | |||||
Business Acquisition [Line Items] | |||||
Current assets | $ 6.1 | ||||
Property and equipment, net | 1.3 | ||||
Goodwill | 64.4 | ||||
Deferred tax assets | 2.2 | ||||
Liabilities assumed | (17.9) | ||||
Total purchase price | 100.8 | ||||
Less: cash acquired | (0.6) | ||||
Total purchase price, net of cash acquired | 100.2 | ||||
Harpoon Medical | |||||
Business Acquisition [Line Items] | |||||
Current assets | $ 3.6 | ||||
Property and equipment, net | 0.3 | ||||
Goodwill | 142.1 | ||||
Other assets | 0.1 | ||||
Liabilities assumed | (0.8) | ||||
Deferred income taxes | (12.7) | ||||
Total purchase price | 185.7 | ||||
Less: cash acquired | (3.5) | ||||
Total purchase price, net of cash acquired | 182.2 | ||||
Developed technology (Note 4) | CAS Medical Systems, Inc. | |||||
Business Acquisition [Line Items] | |||||
Finite lived intangible assets | 35.9 | ||||
Customer Relationships | CAS Medical Systems, Inc. | |||||
Business Acquisition [Line Items] | |||||
Finite lived intangible assets | $ 8.8 | ||||
In-process research and development (Note 4) | Harpoon Medical | |||||
Business Acquisition [Line Items] | |||||
Finite lived intangible assets | $ 53.1 |
ACQUISITIONS - Valtech Cardio,
ACQUISITIONS - Valtech Cardio, Ltd. (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | Jan. 23, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||
Fair value of shares issued in connection with business combinations (Note 8) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 266.5 | |
Valtech | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price subject to certain adjustments | $ 340 | ||||||
Potential milestone-driven payments | $ 350 | ||||||
Period to make additional pre-specified milestone-driven payments | 10 years | ||||||
Issuance of shares of common stock (in shares) | 2.8 | ||||||
Fair value of shares issued in connection with business combinations (Note 8) | $ 266.5 | ||||||
Cash paid to acquire business | 86.2 | ||||||
Liability for estimated fair value of contingent milestone payment | 162.9 | ||||||
Additional research and development expenditures to be incurred prior to product introduction | 87.3 | ||||||
Valtech spin off | |||||||
Business Acquisition [Line Items] | |||||||
Future option to acquire business, amount | 200 | ||||||
Future option to acquire business, additional amount subject to regulatory approval | $ 50 | ||||||
Future option to acquire business, period to obtain regulatory approval | 10 years | ||||||
Developed Technology and In-process Research and Development | Valtech | |||||||
Business Acquisition [Line Items] | |||||||
Impairment of intangible assets | 116.2 | $ 116.2 | $ 116.2 | ||||
Rest of World | Developed Technology and In-process Research and Development | Valtech | |||||||
Business Acquisition [Line Items] | |||||||
Impairment of intangible assets | $ 116.2 | ||||||
Rest of World | Developed technology (Note 4) | Valtech | |||||||
Business Acquisition [Line Items] | |||||||
Impairment of intangible assets | $ 40.6 | $ 40.6 |
ACQUISITIONS - CardiAQ Valve Te
ACQUISITIONS - CardiAQ Valve Technologies, Inc. (Narrative) (Details) - CardiAQ $ in Millions | Aug. 26, 2015USD ($) |
Business Acquisition [Line Items] | |
Cash purchase price subject to certain adjustments | $ 350 |
Purchase price subject to certain adjustments | 348 |
Additional payments if certain European regulatory approval is obtained | $ 50 |
Period to obtain certain European regulatory approval | 48 months |
Liability for estimated fair value of contingent milestone payment | $ 30.3 |
Additional research and development expenditures to be incurred prior to product introduction | $ 97.7 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Increase to goodwill | $ 64.4 | ||||
Amortization expense related to other intangible assets | $ 4.6 | $ 2.5 | $ 7.8 | ||
Casmed | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Increase to goodwill | $ 64.4 | ||||
Increase to intangible assets | $ 35.9 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Changes in the Carrying Amount of Goodwill, by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill | ||
Beginning balance | $ 1,126.5 | |
Goodwill acquired during the year | $ 64.4 | |
Currency translation adjustment | (8.9) | (14.3) |
Ending balance | 1,167.7 | 1,112.2 |
United States | ||
Goodwill | ||
Beginning balance | 709.3 | |
Goodwill acquired during the year | 64.4 | |
Currency translation adjustment | 0 | 0 |
Ending balance | 773.7 | 709.3 |
Europe | ||
Goodwill | ||
Beginning balance | 67.2 | |
Goodwill acquired during the year | 0 | |
Currency translation adjustment | (1.4) | (3) |
Ending balance | 62.8 | 64.2 |
Rest of World | ||
Goodwill | ||
Beginning balance | 350 | |
Goodwill acquired during the year | 0 | |
Currency translation adjustment | (7.5) | (11.3) |
Ending balance | $ 331.2 | $ 338.7 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-lived intangible assets | ||
Weighted-Average Useful Life (in years) | 12 years 4 months 24 days | |
Cost | $ 351.5 | $ 305.6 |
Accumulated Amortization | (233.1) | (225.4) |
Net Carrying Value | 118.4 | 80.2 |
Indefinite-lived intangible assets | ||
Cost | 569.6 | 568.6 |
Accumulated Amortization | (233.1) | (225.4) |
Net Carrying Value | 336.5 | 343.2 |
In-process research and development (Note 4) | ||
Indefinite-lived intangible assets | ||
Cost and Net Carrying Value | $ 218.1 | 263 |
Patents | ||
Finite-lived intangible assets | ||
Weighted-Average Useful Life (in years) | 7 years 4 months 24 days | |
Cost | $ 185.7 | 185.8 |
Accumulated Amortization | (182.1) | (181.2) |
Net Carrying Value | 3.6 | 4.6 |
Indefinite-lived intangible assets | ||
Accumulated Amortization | $ (182.1) | (181.2) |
Developed technology (Note 4) | ||
Finite-lived intangible assets | ||
Weighted-Average Useful Life (in years) | 12 years 10 months 24 days | |
Cost | $ 153.5 | 119.8 |
Accumulated Amortization | (46.6) | (44.2) |
Net Carrying Value | 106.9 | 75.6 |
Indefinite-lived intangible assets | ||
Accumulated Amortization | $ (46.6) | (44.2) |
Other | ||
Finite-lived intangible assets | ||
Weighted-Average Useful Life (in years) | 10 years | |
Cost | $ 12.3 | 0 |
Accumulated Amortization | (4.4) | 0 |
Net Carrying Value | 7.9 | 0 |
Indefinite-lived intangible assets | ||
Accumulated Amortization | $ (4.4) | $ 0 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Estimated Amortization Expense (Details) $ in Millions | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 7.2 |
2021 | 7.6 |
2022 | 7.9 |
2023 | 9.4 |
2024 | $ 13.1 |
DEBT AND CREDIT FACILITIES - Na
DEBT AND CREDIT FACILITIES - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Apr. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Weighted-average interest rate under all debt obligations (as a percent) | 3.40% | 3.40% | ||
2013 Notes | ||||
Debt Instrument [Line Items] | ||||
Price equal to principal amount, plus accrued and unpaid interest (as a percent) | 101.00% | |||
2013 Notes | Level 2 | ||||
Debt Instrument [Line Items] | ||||
Fair value of the notes, based on Level 2 inputs | $ 667,600,000 | $ 607,000,000 | ||
Senior Notes | Fixed-rate 4.300% 2018 Notes | ||||
Debt Instrument [Line Items] | ||||
Fixed-rate unsecured senior notes | $ 600,000,000 | |||
Credit Agreement Maturity April 2023 | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Aggregate borrowings in multiple currencies | $ 750,000,000 | |||
Facility fee (as a percent) | 0.10% | |||
Issuance costs | $ 2,400,000 | |||
Borrowings outstanding | $ 0 | |||
Credit Agreement Maturity April 2023 | Credit Facility | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 0.90% | |||
Credit Agreement Maturity April 2023 | Credit Facility | Low | ||||
Debt Instrument [Line Items] | ||||
Facility fee (as a percent) | 0.10% | |||
Credit Agreement Maturity April 2023 | Credit Facility | Low | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 0.90% | |||
Credit Agreement Maturity April 2023 | Credit Facility | High | ||||
Debt Instrument [Line Items] | ||||
Additional amount available, subject to lender approval | $ 250,000,000 | |||
Facility fee (as a percent) | 0.20% | |||
Credit Agreement Maturity April 2023 | Credit Facility | High | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 1.30% | |||
Credit agreement, maturity July 2019 | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Term of the credit agreement | 5 years |
DEBT AND CREDIT FACILITIES - Su
DEBT AND CREDIT FACILITIES - Summary of the Notes (Details) - Senior Notes - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Unamortized discount | $ (1.2) | $ (1.3) |
Unamortized debt issuance costs | (4.4) | (4.9) |
Total carrying amount | $ 594.4 | 593.8 |
Fixed-rate 4.300% 2018 Notes | ||
Debt Instrument [Line Items] | ||
Fixed interest rate | 4.30% | |
Amount | $ 600 | $ 600 |
Effective Interest Rate | 4.329% | 4.329% |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | |||
Fair Value | $ 793.8 | $ 706.2 | |
Fair Value on a Recurring Basis | Fair Value | |||
Assets | |||
Cash equivalents | 32.4 | 11.8 | |
Investments held for deferred compensation plans | 88.9 | 67.6 | |
Derivatives | 30.7 | 29.9 | |
Total assets | 945.8 | 815.5 | |
Liabilities | |||
Derivatives | 6.4 | 5.2 | |
Deferred compensation plans | 88.7 | 68.5 | |
Contingent consideration liabilities | 172.5 | 178.6 | |
Total liabilities | 267.6 | 252.3 | |
Fair Value on a Recurring Basis | Fair Value | Level 1 | |||
Assets | |||
Cash equivalents | 0.7 | 0 | |
Investments held for deferred compensation plans | 88.9 | 67.6 | |
Derivatives | 0 | 0 | |
Total assets | 165.7 | 87.2 | |
Liabilities | |||
Derivatives | 0 | 0 | |
Deferred compensation plans | 88.7 | 68.5 | |
Contingent consideration liabilities | 0 | 0 | |
Total liabilities | 88.7 | 68.5 | |
Fair Value on a Recurring Basis | Fair Value | Level 2 | |||
Assets | |||
Cash equivalents | 31.7 | 11.8 | |
Investments held for deferred compensation plans | 0 | 0 | |
Derivatives | 30.7 | 29.9 | |
Total assets | 780.1 | 728.3 | |
Liabilities | |||
Derivatives | 6.4 | 5.2 | |
Deferred compensation plans | 0 | 0 | |
Contingent consideration liabilities | 0 | 0 | |
Total liabilities | 6.4 | 5.2 | |
Fair Value on a Recurring Basis | Fair Value | Level 3 | |||
Assets | |||
Cash equivalents | 0 | 0 | |
Investments held for deferred compensation plans | 0 | 0 | |
Derivatives | 0 | 0 | |
Total assets | 0 | 0 | |
Liabilities | |||
Derivatives | 0 | 0 | |
Deferred compensation plans | 0 | 0 | |
Contingent consideration liabilities | 172.5 | 178.6 | |
Total liabilities | 172.5 | 178.6 | |
Bank time deposits | |||
Assets | |||
Fair Value | 13.1 | 0 | |
Bank time deposits | Fair Value on a Recurring Basis | Fair Value | |||
Assets | |||
Fair Value | $ 13.1 | ||
Bank time deposits | Fair Value on a Recurring Basis | Fair Value | Level 1 | |||
Assets | |||
Fair Value | 0 | ||
Bank time deposits | Fair Value on a Recurring Basis | Fair Value | Level 2 | |||
Assets | |||
Fair Value | 13.1 | ||
Bank time deposits | Fair Value on a Recurring Basis | Fair Value | Level 3 | |||
Assets | |||
Fair Value | $ 0 | ||
Corporate debt securities | |||
Assets | |||
Fair Value | 489.2 | 455.6 | |
Corporate debt securities | Fair Value on a Recurring Basis | Fair Value | |||
Assets | |||
Fair Value | 489.2 | 455.6 | |
Corporate debt securities | Fair Value on a Recurring Basis | Fair Value | Level 1 | |||
Assets | |||
Fair Value | 0 | 0 | |
Corporate debt securities | Fair Value on a Recurring Basis | Fair Value | Level 2 | |||
Assets | |||
Fair Value | 489.2 | 455.6 | |
Corporate debt securities | Fair Value on a Recurring Basis | Fair Value | Level 3 | |||
Assets | |||
Fair Value | 0 | 0 | |
Asset-backed securities | |||
Assets | |||
Fair Value | 141.7 | 110.2 | |
Asset-backed securities | Fair Value on a Recurring Basis | Fair Value | |||
Assets | |||
Fair Value | 141.7 | 110.2 | |
Asset-backed securities | Fair Value on a Recurring Basis | Fair Value | Level 1 | |||
Assets | |||
Fair Value | 0 | 0 | |
Asset-backed securities | Fair Value on a Recurring Basis | Fair Value | Level 2 | |||
Assets | |||
Fair Value | 141.7 | 110.2 | |
Asset-backed securities | Fair Value on a Recurring Basis | Fair Value | Level 3 | |||
Assets | |||
Fair Value | 0 | 0 | |
U.S. government and agency securities | |||
Assets | |||
Fair Value | 113.8 | 79.2 | |
U.S. government and agency securities | Fair Value on a Recurring Basis | Fair Value | |||
Assets | |||
Fair Value | 113.8 | 79.2 | |
U.S. government and agency securities | Fair Value on a Recurring Basis | Fair Value | Level 1 | |||
Assets | |||
Fair Value | 76.1 | 19.6 | |
U.S. government and agency securities | Fair Value on a Recurring Basis | Fair Value | Level 2 | |||
Assets | |||
Fair Value | 37.7 | 59.6 | |
U.S. government and agency securities | Fair Value on a Recurring Basis | Fair Value | Level 3 | |||
Assets | |||
Fair Value | 0 | 0 | |
International government bonds | |||
Assets | |||
Fair Value | 1.7 | 1.7 | |
International government bonds | Fair Value on a Recurring Basis | Fair Value | |||
Assets | |||
Fair Value | 1.7 | 1.7 | |
International government bonds | Fair Value on a Recurring Basis | Fair Value | Level 1 | |||
Assets | |||
Fair Value | 0 | 0 | |
International government bonds | Fair Value on a Recurring Basis | Fair Value | Level 2 | |||
Assets | |||
Fair Value | 1.7 | 1.7 | |
International government bonds | Fair Value on a Recurring Basis | Fair Value | Level 3 | |||
Assets | |||
Fair Value | 0 | 0 | |
Commercial paper | |||
Assets | |||
Fair Value | 34.3 | 56.7 | |
Commercial paper | Fair Value on a Recurring Basis | Fair Value | |||
Assets | |||
Fair Value | 34.3 | 56.7 | |
Commercial paper | Fair Value on a Recurring Basis | Fair Value | Level 1 | |||
Assets | |||
Fair Value | 0 | 0 | |
Commercial paper | Fair Value on a Recurring Basis | Fair Value | Level 2 | |||
Assets | |||
Fair Value | 34.3 | 56.7 | |
Commercial paper | Fair Value on a Recurring Basis | Fair Value | Level 3 | |||
Assets | |||
Fair Value | 0 | 0 | |
Municipal securities | |||
Assets | |||
Fair Value | $ 0 | 2.8 | |
Municipal securities | Fair Value on a Recurring Basis | Fair Value | |||
Assets | |||
Fair Value | 2.8 | ||
Municipal securities | Fair Value on a Recurring Basis | Fair Value | Level 1 | |||
Assets | |||
Fair Value | 0 | ||
Municipal securities | Fair Value on a Recurring Basis | Fair Value | Level 2 | |||
Assets | |||
Fair Value | 2.8 | ||
Municipal securities | Fair Value on a Recurring Basis | Fair Value | Level 3 | |||
Assets | |||
Fair Value | $ 0 |
FAIR VALUE MEASUREMENTS - Sum_2
FAIR VALUE MEASUREMENTS - Summary of Changes in Fair Value of Contingent Consideration Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Fair value, beginning of year | $ 178.6 | $ 244.3 |
Payments (cash and issued shares) | 0 | (60) |
Changes in fair value | (6.1) | (5.7) |
Fair value, end of year | $ 172.5 | $ 178.6 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Change in fair value of contingent consideration liabilities, net | $ 6.1 | $ 5.7 | $ 9.9 |
Measurement Input, Discount Rate | Minimum | Level 3 | Obligations | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Contingent consideration liability measurement input | 0.015 | ||
Measurement Input, Discount Rate | Maximum | Level 3 | Obligations | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Contingent consideration liability measurement input | 0.106 | ||
Measurement Input, Probability of Milestone Achievement | Minimum | Level 3 | Obligations | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Contingent consideration liability measurement input | 0.020 | ||
Measurement Input, Probability of Milestone Achievement | Maximum | Level 3 | Obligations | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Contingent consideration liability measurement input | 0.985 | ||
Measurement Input, Volatility of Future Revenue | Level 3 | Obligations | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Contingent consideration liability measurement input | 0.450 | ||
Two Previous Acquisitions | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Change in fair value of contingent consideration liabilities, net | $ 24.1 | $ 26.8 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Summary of Derivative Financial Instruments Used to Manage Currency Exchange and Interest Rate Risk (Details) - Derivatives designated as hedging instruments - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Foreign currency forward exchange contracts | ||
Derivative [Line Items] | ||
Notional Amount | $ 1,336.5 | $ 1,378.2 |
Cross currency swap contracts | ||
Derivative [Line Items] | ||
Notional Amount | $ 300 | $ 300 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Location and Fair Value Amounts of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Foreign currency contracts | ||
Assets | ||
Fair Value | $ 17.4 | $ 29.1 |
Liabilities | ||
Fair Value | 6.4 | 5.2 |
Cross currency swap contracts | ||
Assets | ||
Fair Value | 13.3 | 0.8 |
Derivatives designated as hedging instruments | Foreign currency contracts | Other current assets | ||
Assets | ||
Fair Value | 14.2 | 29.1 |
Derivatives designated as hedging instruments | Foreign currency contracts | Other assets | ||
Assets | ||
Fair Value | 3.2 | 0 |
Derivatives designated as hedging instruments | Foreign currency contracts | Accrued and other liabilities | ||
Liabilities | ||
Fair Value | 6.4 | 4.4 |
Derivatives designated as hedging instruments | Foreign currency contracts | Other long-term liabilities | ||
Liabilities | ||
Fair Value | 0 | 0.8 |
Derivatives designated as hedging instruments | Cross currency swap contracts | Other assets | ||
Assets | ||
Fair Value | $ 13.3 | $ 0.8 |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Effect of Master-Netting Agreements and Rights of Offset (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Foreign currency contracts | ||
Derivative Assets | ||
Gross Amounts | $ 17.4 | $ 29.1 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 17.4 | 29.1 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Financial Instruments | (5.7) | (3.6) |
Cash Collateral Received | 0 | 0 |
Net Amount | 11.7 | 25.5 |
Derivative Liabilities | ||
Gross Amounts | 6.4 | 5.2 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 6.4 | 5.2 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Financial Instruments | (5.7) | (3.6) |
Cash Collateral Received | 0 | 0 |
Net Amount | 0.7 | 1.6 |
Cross currency swap contracts | ||
Derivative Assets | ||
Gross Amounts | 13.3 | 0.8 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheet | 13.3 | 0.8 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Financial Instruments | 0 | 0 |
Cash Collateral Received | 0 | 0 |
Net Amount | $ 13.3 | $ 0.8 |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Effect of Derivative Instruments (Details) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019EUR (€) | Jun. 30, 2018EUR (€) | |
Foreign currency contracts | Other (income) expense, net | Derivatives not designated as hedging instruments | |||||
Derivative Instruments, Gain (Loss) | |||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ 0.3 | $ 9.7 | $ (11.5) | ||
Cross currency swap contracts | Derivatives designated as hedging instruments | |||||
Derivative Instruments, Gain (Loss) | |||||
Notional Amount | 300 | 300 | |||
Cash flow hedges | Foreign currency contracts | Derivatives designated as hedging instruments | |||||
Derivative Instruments, Gain (Loss) | |||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | 23.5 | 35.9 | |||
Cash flow hedges | Foreign currency contracts | Cost of sales | Derivatives designated as hedging instruments | |||||
Derivative Instruments, Gain (Loss) | |||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | 40.9 | (17.3) | |||
Cash flow hedges | Foreign currency contracts | Selling, general, and administrative expenses | Derivatives designated as hedging instruments | |||||
Derivative Instruments, Gain (Loss) | |||||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | 1.9 | (2.3) | |||
Net investment hedges | Cross currency swap contracts | Derivatives designated as hedging instruments | |||||
Derivative Instruments, Gain (Loss) | |||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | 12.5 | 0.8 | |||
Notional Amount | 300 | € 257.2 | |||
Net investment hedges | Cross currency swap contracts | Interest expense | Derivatives designated as hedging instruments | |||||
Derivative Instruments, Gain (Loss) | |||||
Amount of Gain or (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing) | 6.6 | 3.5 | |||
Net investment hedges | Foreign currency denominated debt | Derivatives designated as hedging instruments | |||||
Derivative Instruments, Gain (Loss) | |||||
Amount of Gain or (Loss) Recognized in OCI on Derivative (Effective Portion) | 0 | 6.8 | |||
Long term debt | € | € 370 | ||||
Fair value hedges | Foreign currency contracts | Other (income) expense, net | Derivatives designated as hedging instruments | |||||
Derivative Instruments, Gain (Loss) | |||||
Amount of Gain or (Loss) Recognized in Income on Derivative | 1.4 | 0.5 | 0 | ||
Fair value hedges | Interest rate swap agreements | Derivatives designated as hedging instruments | |||||
Derivative Instruments, Gain (Loss) | |||||
Deferred (gain) loss on discontinuation of fair value hedge | 0.7 | ||||
Fair value hedges | Interest rate swap agreements | Interest expense | Derivatives designated as hedging instruments | |||||
Derivative Instruments, Gain (Loss) | |||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ 0 | $ 0 | $ (1.1) |
DERIVATIVE INSTRUMENTS AND HE_7
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Location of Gain or Loss on Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) | |||
Cost of sales | $ (1,114.4) | $ (939.4) | $ (875.3) |
Selling, general, and administrative expenses | (1,242.2) | (1,088.5) | (990.8) |
Other (income) expense, net | 8.2 | 4 | $ (1.4) |
Gain (loss) on cash flow hedging relationships: | |||
Cash flow hedge gain (loss) to be reclassified | 6.5 | ||
Foreign currency contracts | Cost of sales | |||
Gain (loss) on fair value hedging relationships: | |||
Hedged items | 0 | 0 | |
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach | 0 | 0 | |
Gain (loss) on cash flow hedging relationships: | |||
Amount of gain (loss) reclassified from accumulated OCI into income | 40.9 | (17.3) | |
Foreign currency contracts | Cost of sales | Derivatives designated as hedging instruments | |||
Gain (loss) on fair value hedging relationships: | |||
Derivatives designated as hedging instruments | 0 | 0 | |
Foreign currency contracts | Selling, general, and administrative expenses | |||
Gain (loss) on fair value hedging relationships: | |||
Hedged items | 0 | 0 | |
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach | 0 | 0 | |
Gain (loss) on cash flow hedging relationships: | |||
Amount of gain (loss) reclassified from accumulated OCI into income | 1.9 | (2.3) | |
Foreign currency contracts | Selling, general, and administrative expenses | Derivatives designated as hedging instruments | |||
Gain (loss) on fair value hedging relationships: | |||
Derivatives designated as hedging instruments | 0 | 0 | |
Foreign currency contracts | Other (income) expense, net | |||
Gain (loss) on fair value hedging relationships: | |||
Hedged items | 2.9 | 0 | |
Amount excluded from effectiveness testing recognized in earnings based on an amortization approach | 4.3 | 0.5 | |
Gain (loss) on cash flow hedging relationships: | |||
Amount of gain (loss) reclassified from accumulated OCI into income | 0 | 0 | |
Foreign currency contracts | Other (income) expense, net | Derivatives designated as hedging instruments | |||
Gain (loss) on fair value hedging relationships: | |||
Derivatives designated as hedging instruments | $ (2.9) | $ 0 |
EMPLOYEE BENEFIT PLANS - Schedu
EMPLOYEE BENEFIT PLANS - Schedule of Information Regarding Defined Benefit Pension Plans (Details) - Defined benefit pension plans - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in projected benefit obligation: | |||||
Beginning of year | $ 97.4 | $ 114.9 | |||
Service cost | 5.2 | 6 | $ 7.9 | ||
Interest cost | 0.9 | 0.8 | 1 | ||
Participant contributions | 1.3 | 1.2 | |||
Actuarial loss | 8.2 | 0.7 | |||
Benefits paid | (4.2) | (0.3) | |||
Plan amendment | (4.6) | (2) | |||
Settlements and curtailment gain | 0 | (22.5) | |||
Currency exchange rate changes and other | 1 | (1.4) | |||
End of year | 105.2 | 97.4 | 114.9 | ||
Change in fair value of plan assets: | |||||
Beginning of year | 60.4 | 71.2 | |||
Actual return on plan assets | 2 | (0.8) | |||
Employer contributions | 2.6 | 3.9 | |||
Participant contributions | 1.3 | 1.2 | |||
Settlements | 0 | (14.4) | |||
Benefits paid | (4.2) | (0.3) | |||
Currency exchange rate changes and other | 1.1 | (0.4) | |||
End of year | 63.2 | 60.4 | 71.2 | ||
Funded Status | |||||
Projected benefit obligation | (97.4) | (97.4) | (114.9) | $ (105.2) | $ (97.4) |
Plan assets at fair value | $ 60.4 | $ 60.4 | $ 71.2 | 63.2 | 60.4 |
Underfunded status | (42) | (37) | |||
Accumulated other comprehensive loss, net of tax: | |||||
Net actuarial loss | (26.3) | (19.4) | |||
Net prior service cost | 6.7 | 2.3 | |||
Deferred income tax benefit | 4.2 | 3.6 | |||
Total | (15.4) | (13.5) | |||
Other long-term liabilities | |||||
Net amounts recognized on the consolidated balance sheet: | |||||
Other long-term liabilities | $ 42 | $ 37 |
EMPLOYEE BENEFIT PLANS - Define
EMPLOYEE BENEFIT PLANS - Defined Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Expected employer contributions | $ 1.9 | |
Defined benefit pension plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 101.1 | $ 93.5 |
Net actuarial loss that will be amortized | 1.5 | |
Prior service cost that will be amortized | $ (0.7) |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Net Periodic Benefit Cost (Details) - Defined benefit pension plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost, net | $ 5.2 | $ 6 | $ 7.9 |
Interest cost | 0.9 | 0.8 | 1 |
Expected return on plan assets | (1.4) | (1.3) | (2) |
Settlements and curtailment gain | 0 | (7.4) | (6.3) |
Special termination benefits | 0 | 0 | 0.6 |
Amortization of actuarial loss | 0.9 | 0.8 | 0.9 |
Amortization of prior service (credit) cost | (0.2) | (0.1) | 0.2 |
Net periodic pension benefit cost (credit) | $ 5.4 | $ (1.2) | $ 2.3 |
EMPLOYEE BENEFIT PLANS - Sche_2
EMPLOYEE BENEFIT PLANS - Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations (Details) - Defined benefit pension plans | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted-average assumptions used to determine the benefit obligations | |||
Discount rate | 0.50% | 0.90% | |
Rate of compensation increase | 2.70% | 2.80% | |
Social securities increase | 1.60% | 1.80% | |
Pension increase | 1.80% | 1.80% | |
Weighted-average assumptions used to determine the net periodic benefit cost | |||
Discount rate | 0.90% | 0.90% | 0.70% |
Expected return on plan assets | 2.30% | 2.30% | 2.40% |
Rate of compensation increase | 2.80% | 2.60% | 2.50% |
Social securities increase | 1.80% | 1.50% | 1.40% |
Pension increase | 1.80% | 1.80% | 0.30% |
EMPLOYEE BENEFIT PLANS - Sche_3
EMPLOYEE BENEFIT PLANS - Schedule of Target Weighted-Average Asset Allocations and Fair Value (Details) - Defined benefit pension plans - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocations (as a percent) | 100.00% | ||
Plan assets at fair value | $ 63.2 | $ 60.4 | $ 71.2 |
Total plan assets measured at fair value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 56.1 | 53.7 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 48.5 | 46.4 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 6.7 | 6.3 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0.9 | 1 | |
Alternative investments measured at net asset value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 7.1 | 6.7 | |
Cash | Total plan assets measured at fair value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 3.8 | 7 | |
Cash | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 3.8 | 7 | |
Cash | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Cash | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 0 | 0 | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocations (as a percent) | 22.30% | ||
United States equities | Total plan assets measured at fair value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 3 | 0.5 | |
United States equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 3 | 0.5 | |
United States equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
United States equities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
International equities | Total plan assets measured at fair value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 11.2 | 9.3 | |
International equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 11.2 | 9.3 | |
International equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
International equities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 0 | 0 | |
Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocations (as a percent) | 48.30% | ||
United States government bonds | Total plan assets measured at fair value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 8.2 | 6.4 | |
United States government bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 8.2 | 6.4 | |
United States government bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
United States government bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
International government bonds | Total plan assets measured at fair value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 22.3 | 23.2 | |
International government bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 22.3 | 23.2 | |
International government bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
International government bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 0 | 0 | |
Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocations (as a percent) | 6.90% | ||
Real estate | Total plan assets measured at fair value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 4.4 | 4.1 | |
Real estate | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Real estate | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 4.4 | 4.1 | |
Real estate | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Mortgages | Total plan assets measured at fair value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 2.3 | 2.2 | |
Mortgages | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Mortgages | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 2.3 | 2.2 | |
Mortgages | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Insurance contracts | Total plan assets measured at fair value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0.9 | 1 | |
Insurance contracts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Insurance contracts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Insurance contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 0.9 | $ 1 | $ 2.7 |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocations (as a percent) | 22.50% |
EMPLOYEE BENEFIT PLANS - Summar
EMPLOYEE BENEFIT PLANS - Summary of Changes in Fair Value of Defined Benefit Plan Assets Classified as Level 3 (Details) - Defined benefit pension plans - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Change in fair value of plan assets: | ||
Beginning of year | $ 60.4 | $ 71.2 |
Actual return on plan assets: | ||
Currency exchange rate impact | 1.1 | (0.4) |
End of year | 63.2 | 60.4 |
Level 3 | ||
Change in fair value of plan assets: | ||
Beginning of year | 1 | |
Actual return on plan assets: | ||
End of year | 0.9 | 1 |
Level 3 | Insurance Contracts | ||
Change in fair value of plan assets: | ||
Beginning of year | 1 | 2.7 |
Actual return on plan assets: | ||
Relating to assets still held at year end | (1.6) | |
Purchases, sales and settlements | (0.1) | |
Currency exchange rate impact | (0.1) | |
End of year | $ 0.9 | $ 1 |
EMPLOYEE BENEFIT PLANS - Sche_4
EMPLOYEE BENEFIT PLANS - Schedule of Benefit Payments Which Reflect Expected Future Service (Details) $ in Millions | Dec. 31, 2019USD ($) |
Retirement Benefits [Abstract] | |
2020 | $ 4 |
2021 | 3.6 |
2022 | 4.1 |
2023 | 5.7 |
2024 | 5.1 |
2024-2026 | $ 28.1 |
EMPLOYEE BENEFIT PLANS - Defi_2
EMPLOYEE BENEFIT PLANS - Defined Contribution Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plans | |||
Matching contributions relating to entity's employees | $ 31.4 | $ 26.6 | $ 19.9 |
Nonqualified deferred compensation plans | |||
Defined Contribution Plans | |||
Amount accrued under nonqualified plans | $ 88.7 | $ 68.5 | |
United States | |||
Defined Contribution Plans | |||
Maximum contributions of a participant's eligible compensation (as a percent) | 25.00% | ||
Dollar-for-dollar match of employee's annual eligible compensation (as a percent) | 4.00% | ||
Company match of eligible compensation after dollar-for-dollar basis (as a percent) | 2.00% | ||
Company match, second level (as a percent) | 50.00% | ||
Puerto Rico | |||
Defined Contribution Plans | |||
Maximum contributions of a participant's eligible compensation (as a percent) | 25.00% | ||
Dollar-for-dollar match of employee's annual eligible compensation (as a percent) | 4.00% | ||
Company match, first level (as a percent) | 50.00% | ||
Profit sharing contribution calculated on eligible earnings (as a percent) | 2.00% |
COMMON STOCK - Treasury Stock (
COMMON STOCK - Treasury Stock (Narrative) (Details) - USD ($) shares in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 31, 2019 | Nov. 30, 2017 | |
Treasury Stock | |||||
Aggregate cost of stock repurchases | $ 263,300,000 | $ 795,500,000 | $ 763,300,000 | ||
Treasury Stock | |||||
Treasury Stock | |||||
Shares repurchased (in shares) | 1.5 | 5.5 | 7.7 | ||
Aggregate cost of stock repurchases | $ 263,300,000 | $ 795,500,000 | $ 763,300,000 | ||
November 2017 | |||||
Treasury Stock | |||||
Authorized amount for share repurchase | $ 1,000,000,000 | ||||
May 2019 | |||||
Treasury Stock | |||||
Authorized amount for share repurchase | $ 1,000,000,000 |
COMMON STOCK - Accelerated Shar
COMMON STOCK - Accelerated Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | |||||||
Jun. 30, 2019 | May 31, 2019 | Nov. 30, 2018 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | |
November 2017 | ||||||||
Accelerated Share Repurchase | ||||||||
Amount Paid | $ 150,000,000 | |||||||
Shares repurchased (in shares) | 1.3 | 1.1 | ||||||
Initial delivery, price per share (in dollars per share) | $ 109.86 | |||||||
Value of shares as a percent of total contract value | 80.00% | |||||||
Final settlement per share price (in dollars per share) | $ 114.85 | |||||||
April 2018 | ||||||||
Accelerated Share Repurchase | ||||||||
Amount Paid | $ 400,000,000 | |||||||
Shares repurchased (in shares) | 2.8 | 2.5 | ||||||
Initial delivery, price per share (in dollars per share) | $ 127.36 | |||||||
Value of shares as a percent of total contract value | 80.00% | |||||||
Final settlement per share price (in dollars per share) | $ 142.37 | |||||||
October 2018 | ||||||||
Accelerated Share Repurchase | ||||||||
Amount Paid | $ 250,000,000 | |||||||
Shares repurchased (in shares) | 1.7 | 1.4 | ||||||
Initial delivery, price per share (in dollars per share) | $ 139.22 | |||||||
Value of shares as a percent of total contract value | 80.00% | |||||||
Final settlement per share price (in dollars per share) | $ 150.54 | |||||||
Initial Delivery of Shares Settled May 2019 | ||||||||
Accelerated Share Repurchase | ||||||||
Amount Paid | $ 150,000,000 | |||||||
Shares repurchased (in shares) | 0.7 | |||||||
Initial delivery, price per share (in dollars per share) | $ 178.66 | |||||||
Value of shares as a percent of total contract value | 80.00% | |||||||
Purchased and sold in May 2019 | ||||||||
Accelerated Share Repurchase | ||||||||
Shares repurchased (in shares) | 0.8 | |||||||
Final settlement per share price (in dollars per share) | $ 178.42 | |||||||
Initial Delivery Of Shares Settled June 2019 | ||||||||
Accelerated Share Repurchase | ||||||||
Amount Paid | $ 100,000,000 | |||||||
Shares repurchased (in shares) | 0.5 | |||||||
Initial delivery, price per share (in dollars per share) | $ 170.02 | |||||||
Value of shares as a percent of total contract value | 80.00% | |||||||
Purchased in May 2019 and sold in June 2019 | ||||||||
Accelerated Share Repurchase | ||||||||
Shares repurchased (in shares) | 0.6 | |||||||
Final settlement per share price (in dollars per share) | $ 178.46 |
COMMON STOCK - Employee and Dir
COMMON STOCK - Employee and Director Stock Plans (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Option Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Estimated annual forfeiture rate | 6.40% |
The Program | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock available for issuance (in shares) | 109,200,000 |
The Program | Option Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration date | 7 years |
The Program | Option Awards | Low | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
The Program | Option Awards | High | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
The Program | Restricted stock units | Low | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
The Program | Restricted stock units | High | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
The Program | MRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
The Program | Restricted stock or restricted stock units | High | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock available for issuance (in shares) | 11,200,000 |
Nonemployee Directors Program | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock available for issuance (in shares) | 2,800,000 |
Nonemployee Directors Program | Annual award to nonemployee director | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Limit on total value of the award | $ | $ 0.2 |
Nonemployee Directors Program | Option Awards | Awards granted in 2012 and later | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Nonemployee Directors Program | Option Awards | High | Annual award to nonemployee director | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock available for issuance (in shares) | 40,000 |
Nonemployee Directors Program | Restricted stock units | High | Annual award to nonemployee director | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock available for issuance (in shares) | 16,000 |
ESPP | ESPP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock available for issuance (in shares) | 15,300,000 |
Percentage of lower of fair market value of common stock on effective date of subscription or date of purchase | 85.00% |
Maximum percentage of compensation employees can authorize to be withheld for common stock purchases | 12.00% |
COMMON STOCK - Schedule of Weig
COMMON STOCK - Schedule of Weighted-Average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Option Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 2.30% | 2.90% | 1.80% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 30.00% | 29.00% | 33.00% |
Expected life | 5 years 1 month 6 days | 5 years | 4 years 7 months 6 days |
Fair value, per share (in dollars per share) | $ 54.51 | $ 42.51 | $ 33.74 |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 2.40% | 1.70% | 0.80% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 32.00% | 33.00% | 33.00% |
Expected life | 7 months 6 days | 7 months 6 days | 7 months 6 days |
Fair value, per share (in dollars per share) | $ 49.29 | $ 36.53 | $ 25.69 |
COMMON STOCK - Additional Infor
COMMON STOCK - Additional Information (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of stock options exercised and restricted stock units vested | $ 382.1 | $ 281.1 | $ 205.2 |
Cash from exercises of stock options | 110.4 | 103.7 | 77.6 |
Realized tax benefits from exercises of stock options and vesting of restricted stock units | 85.1 | 62.5 | 66.9 |
Total grant date fair value of stock options vested | 31.2 | $ 29 | $ 26.3 |
Employee stock purchase subscriptions | $ 126.3 | ||
Weighted-average remaining requisite service period | 30 months | ||
MRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk-free interest rate | 2.20% | 2.70% | 1.70% |
Expected volatility | 29.40% | 29.70% | 30.20% |
COMMON STOCK - Schedule of Stoc
COMMON STOCK - Schedule of Stock Option and Restricted Stock Unit Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stock option activity | ||
Shares | ||
Beginning balance (in shares) | 5,700,000 | 7,200,000 |
Options granted (in shares) | 700,000 | |
Options exercised (in shares) | (2,200,000) | |
Ending balance (in shares) | 5,700,000 | |
Exercisable as of period end (in shares) | 3,800,000 | |
Vested and expected to vest as of period end (in shares) | 5,400,000 | |
Weighted- Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 96.57 | $ 73.42 |
Options granted (in dollars per share) | 179.53 | |
Options exercised (in dollars per share) | $ 49.59 | |
Ending balance (in dollars per share) | 96.57 | |
Exercisable as of period end (in dollars per share) | 72.07 | |
Vested and expected to vest as of period end (in dollars per share) | $ 94.13 | |
Weighted- Average Remaining Contractual Term | ||
Outstanding as of period end | 3 years 4 months 24 days | |
Exercisable as of period end | 2 years 6 months | |
Vested and expected to vest as of period end | 3 years 3 months 18 days | |
Aggregate Intrinsic Value | ||
Outstanding as of period end | $ 780.9 | |
Exercisable as of period end | 611.4 | |
Vested and expected to vest as of period end | $ 756.7 | |
Nonvested restricted stock unit activity | ||
Shares | ||
Beginning balance (in shares) | 900,000 | 1,000,000 |
Granted (in shares) | 300,000 | |
Vested (in shares) | (300,000) | |
Forfeited (in shares) | (100,000) | |
Ending balance (in shares) | 900,000 | |
Weighted- Average Grant-Date Fair Value | ||
Beginning balance (in dollars per share) | $ 140.68 | $ 113.86 |
Granted (in dollars per share) | 182.70 | |
Vested (in dollars per share) | 90.78 | |
Forfeited (in dollars per share) | 118.74 | |
Ending balance (in dollars per share) | $ 140.68 | |
MRSUs | ||
Shares | ||
Granted (in shares) | 33,225 | |
Weighted- Average Grant-Date Fair Value | ||
Shares related to previous year's grant (in shares) | 10,660 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary of Activity for Each Component of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Jan. 01, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||
Beginning balance | $ 3,140.4 | $ 2,956.2 | $ 2,619 | ||
Impact to AOCI from adoption of ASUs | $ 2.6 | $ 9.3 | |||
Stockholders' equity, adjusted balance | 2,958.8 | 2,628.3 | |||
Other comprehensive income (loss) before reclassifications | 31.1 | 2.9 | 42 | ||
Amounts reclassified from accumulated other comprehensive loss | (49.7) | 15.3 | (8.5) | ||
Deferred income tax benefit (expense) | (1.1) | 16.2 | (32.2) | ||
Ending balance | 4,148.3 | 3,140.4 | 2,956.2 | ||
Foreign Currency Translation Adjustments | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||
Beginning balance | (143.6) | (100.1) | (197.6) | ||
Impact to AOCI from adoption of ASUs | (4.9) | ||||
Stockholders' equity, adjusted balance | (105) | ||||
Other comprehensive income (loss) before reclassifications | (1.5) | (36.7) | 84.1 | ||
Amounts reclassified from accumulated other comprehensive loss | (6.6) | 0 | 0 | ||
Deferred income tax benefit (expense) | 3.1 | 1.9 | (13.4) | ||
Ending balance | (154.8) | (143.6) | (100.1) | ||
Unrealized Gain (Loss) on Hedges | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||
Beginning balance | (13.9) | 16.7 | |||
Impact to AOCI from adoption of ASUs | (2.9) | ||||
Stockholders' equity, adjusted balance | (16.8) | ||||
Other comprehensive income (loss) before reclassifications | (43.5) | ||||
Amounts reclassified from accumulated other comprehensive loss | (6.5) | ||||
Deferred income tax benefit (expense) | (19.4) | ||||
Ending balance | (13.9) | ||||
Unrealized Gain (Loss) on Hedges | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||
Beginning balance | 23.6 | ||||
Other comprehensive income (loss) before reclassifications | 27.9 | 35.1 | |||
Amounts reclassified from accumulated other comprehensive loss | (44.2) | 19.1 | |||
Deferred income tax benefit (expense) | (5.2) | 13.8 | |||
Ending balance | 12.5 | 23.6 | |||
Unrealized Gain (Loss) on Available-for-sale Investments | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||
Beginning balance | (5) | (4.6) | 0.1 | ||
Impact to AOCI from adoption of ASUs | 0 | ||||
Stockholders' equity, adjusted balance | (4.6) | ||||
Other comprehensive income (loss) before reclassifications | 7.9 | (3.1) | (8.3) | ||
Amounts reclassified from accumulated other comprehensive loss | 0.4 | 2.9 | 3.1 | ||
Deferred income tax benefit (expense) | 1.6 | 0.2 | (0.5) | ||
Ending balance | 1.7 | (5) | (4.6) | ||
Unrealized Pension Costs | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||
Beginning balance | (13.5) | (14.1) | (17.6) | ||
Impact to AOCI from adoption of ASUs | 0 | ||||
Stockholders' equity, adjusted balance | (14.1) | ||||
Other comprehensive income (loss) before reclassifications | (3.2) | 7.6 | 9.7 | ||
Amounts reclassified from accumulated other comprehensive loss | 0.7 | (6.7) | (5.1) | ||
Deferred income tax benefit (expense) | (0.6) | 0.3 | 1.1 | ||
Ending balance | (15.4) | (13.5) | (14.1) | ||
Total Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||
Beginning balance | (138.5) | (132.7) | (198.4) | ||
Impact to AOCI from adoption of ASUs | (7.8) | ||||
Stockholders' equity, adjusted balance | $ (140.5) | $ (198.4) | |||
Ending balance | $ (156) | $ (138.5) | $ (132.7) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Change in Unrealized Pension Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pre-Tax Amount | |||
Prior service credit/cost arising during period | $ 31.1 | $ 2.9 | $ 42 |
Prior Service Credit | |||
Pre-Tax Amount | |||
Prior service credit/cost arising during period | 4.6 | 3.3 | 3.5 |
Amounts reclassified from accumulated other comprehensive loss | (0.2) | (0.1) | 0.2 |
Other comprehensive income (loss) | 4.4 | 3.2 | 3.7 |
Tax (Expense) Benefit | |||
Prior service credit/cost arising during period | (0.6) | (0.9) | (0.4) |
Amortization of prior service credit | 0.1 | 0 | 0 |
Other comprehensive income (loss) | (0.5) | (0.9) | (0.4) |
Net of Tax Amount | |||
Prior service credit/cost arising during period | 4 | 2.4 | 3.1 |
Net of tax amortization | (0.1) | (0.1) | 0.2 |
Other comprehensive income (loss) | 3.9 | 2.3 | 3.3 |
Net actuarial gain (loss) arising during period | |||
Pre-Tax Amount | |||
Other comprehensive income (loss) | (6.9) | (2.3) | 0.9 |
Tax (Expense) Benefit | |||
Other comprehensive income (loss) | 1.1 | 0.6 | (0.7) |
Net of Tax Amount | |||
Other comprehensive income (loss) | (5.8) | (1.7) | 0.2 |
Unrealized pension credits (cost), net | |||
Pre-Tax Amount | |||
Prior service credit/cost arising during period | (3.2) | 7.6 | 9.7 |
Other comprehensive income (loss) | (2.5) | 0.9 | 4.6 |
Tax (Expense) Benefit | |||
Other comprehensive income (loss) | 0.6 | (0.3) | (1.1) |
Net of Tax Amount | |||
Other comprehensive income (loss) | $ (1.9) | $ 0.6 | $ 3.5 |
ACCUMULATED OTHER COMPREHENSI_5
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Information About Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amounts reclassified from accumulated other comprehensive loss to affected line on Consolidated Statements of Operations | |||||||||||
Cost of sales | $ (1,114.4) | $ (939.4) | $ (875.3) | ||||||||
Selling, general, and administrative expenses | (1,242.2) | (1,088.5) | (990.8) | ||||||||
Other (income) expense, net | 0 | 0 | (0.7) | ||||||||
Income before provision for income taxes | 1,166.5 | 761.4 | 1,034.9 | ||||||||
Special (gains) charges, net | 0 | (7.1) | 50.2 | ||||||||
Other (income) expense, net | 8.2 | 4 | (1.4) | ||||||||
Provision for income taxes | (119.6) | (39.2) | (451.3) | ||||||||
Net income | $ 280.2 | $ 274.7 | $ 242.3 | $ 249.7 | $ 7 | $ 225.9 | $ 282.7 | $ 206.6 | 1,046.9 | 722.2 | $ 583.6 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Foreign Currency Translation Adjustments | |||||||||||
Amounts reclassified from accumulated other comprehensive loss to affected line on Consolidated Statements of Operations | |||||||||||
Other (income) expense, net | 6.6 | 0 | |||||||||
Provision for income taxes | (1.6) | 0 | |||||||||
Net income | 5 | 0 | |||||||||
Amount Reclassified from Accumulated Other Comprehensive Loss | Unrealized Gain (Loss) on Hedges | |||||||||||
Amounts reclassified from accumulated other comprehensive loss to affected line on Consolidated Statements of Operations | |||||||||||
Cost of sales | 40.9 | (17.3) | |||||||||
Selling, general, and administrative expenses | 1.9 | (2.3) | |||||||||
Other (income) expense, net | (1.4) | (0.5) | |||||||||
Income before provision for income taxes | 44.2 | (19.1) | |||||||||
Provision for income taxes | (11) | 4.4 | |||||||||
Net income | 33.2 | (14.7) | |||||||||
Amount Reclassified from Accumulated Other Comprehensive Loss | Gain (loss) on available-for-sale investments | |||||||||||
Amounts reclassified from accumulated other comprehensive loss to affected line on Consolidated Statements of Operations | |||||||||||
Other (income) expense, net | (0.4) | (2.9) | |||||||||
Provision for income taxes | (0.3) | 0.2 | |||||||||
Net income | (0.7) | (2.7) | |||||||||
Amount Reclassified from Accumulated Other Comprehensive Loss | Amortization of pension adjustments | |||||||||||
Amounts reclassified from accumulated other comprehensive loss to affected line on Consolidated Statements of Operations | |||||||||||
Income before provision for income taxes | (0.7) | 6.7 | |||||||||
Special (gains) charges, net | 0 | 7.1 | |||||||||
Other (income) expense, net | (0.7) | (0.4) | |||||||||
Provision for income taxes | 0.1 | (0.6) | |||||||||
Net income | $ (0.6) | $ 6.1 |
OTHER (INCOME) EXPENSE, NET (De
OTHER (INCOME) EXPENSE, NET (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Foreign exchange (gains) losses, net | $ (5.9) | $ (6.7) | $ 5.4 |
(Gain) loss on investments | (0.5) | 1.7 | 2.7 |
Non-service cost components of net periodic pension benefit cost (credit) | 0.2 | (0.1) | (6.1) |
Other | (2) | 1.1 | (0.6) |
Total other (income) expense, net | $ (8.2) | $ (4) | $ 1.4 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Before Provisions for Income Taxes and Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 383.4 | $ 266.1 | $ 491.5 |
International, including Puerto Rico | 783.1 | 495.3 | 543.4 |
Income before provision for income taxes | 1,166.5 | 761.4 | 1,034.9 |
United States: | |||
Federal | 31.3 | 10.9 | 330.8 |
State and local | 48.7 | 13.6 | 32.8 |
International, including Puerto Rico | 29.1 | 35.9 | 60.6 |
Current income tax expense | 109.1 | 60.4 | 424.2 |
United States: | |||
Federal | 28.3 | (16.1) | 39.3 |
State and local | (18.3) | (22.4) | (3.8) |
International, including Puerto Rico | 0.5 | 17.3 | (8.4) |
Deferred income tax expense (benefit) | 10.5 | (21.2) | 27.1 |
Total income tax provision | $ 119.6 | $ 39.2 | $ 451.3 |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Compensation and benefits | $ 91.6 | $ 71.4 |
Benefits from uncertain tax positions | 22.5 | 22.2 |
Net tax credit carryforwards | 108.4 | 94.4 |
Net operating loss carryforwards | 57.6 | 42.1 |
Accrued liabilities | 6.1 | 57.9 |
Inventories | 12.9 | 7.2 |
State income taxes | 0.5 | 0.6 |
Investments | 1.5 | 1.6 |
Lease liability obligations | 18.4 | |
Other | 1.9 | 4.1 |
Total deferred tax assets | 321.4 | 301.5 |
Deferred tax liabilities | ||
Property, plant, and equipment | (22.6) | (24.5) |
Cash flow and net investment hedges | (6.8) | (4.5) |
Deferred tax on foreign earnings | (0.1) | (0.6) |
Right-of-use assets | (17.5) | |
Inventories | 0 | (3.9) |
Other intangible assets | (71) | (77.1) |
Other | (2.2) | (0.1) |
Total deferred tax liabilities | (120.2) | (110.7) |
Valuation allowance | (65.8) | (46.7) |
Net deferred tax assets | $ 135.4 | $ 144.1 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||||
Net deferred tax assets increase | $ (8.7) | |||||
Valuation allowance that reduces certain deferred tax assets | 65.8 | $ 46.7 | ||||
Carryforward Amount | 147.7 | |||||
Tax benefit from remeasurement of deferred taxes | $ 3.3 | |||||
Effects of mandatory deemed repatriation | 297.4 | |||||
Tax benefit from harvesting foreign tax credits | 32.3 | |||||
Adjustment to transition tax | 12.8 | |||||
Deferred tax asset provisional income tax expense (benefit) | (3.7) | |||||
Foreign earnings to be indefinitely reinvested | 1,100 | |||||
Foreign earnings to be repatriated | 140.7 | |||||
Estimated net tax liability on permanently reinvested earnings | 13.6 | |||||
Gross uncertain tax positions | 203.1 | 150.7 | 225.6 | $ 203.1 | $ 245.5 | |
Reduction in liabilities from offsetting tax benefits | 50.1 | 42.7 | ||||
Net amounts that would favorably affect effective tax rate | 153 | 108 | ||||
Accrued interest related to unrecognized tax benefits, net of tax benefit | 9.3 | 4.6 | ||||
Tax benefit of accrued interest | 3.5 | 1.9 | ||||
Interest expense, net of tax benefit | 4.7 | (2.8) | (7.3) | |||
Non-U.S. | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Tax reductions compared to local statutory rates | $ 157.6 | $ 144.9 | $ 81 | |||
Tax reductions compared to local statutory rates per diluted share (in dollars per share) | $ 0.70 | $ 0.75 | $ 0.39 | |||
Research expenditure tax credits | Carryforward period indefinite | California | State and local jurisdiction | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Carryforward Amount | $ 124.4 | |||||
Puerto Rico purchases credit | Carryforward period indefinite | Puerto Rico | Non-U.S. | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Carryforward Amount | $ 21.8 |
INCOME TAXES - Summary of Net O
INCOME TAXES - Summary of Net Operating Loss Carryforwards (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating Loss Carryforwards [Line Items] | |
Carryforward Amount | $ 405.9 |
Tax Benefit Amount | 57.9 |
Valuation Allowance | (41.9) |
Net Tax Benefit | 16 |
United States Federal Tax Authority | United States | Carryforward Period Ends 2030-2037 | |
Operating Loss Carryforwards [Line Items] | |
Carryforward Amount | 35.9 |
Tax Benefit Amount | 7.5 |
Valuation Allowance | 0 |
Net Tax Benefit | 7.5 |
United States Federal Tax Authority | United States | Carryforward Period Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Carryforward Amount | 11.3 |
Tax Benefit Amount | 2.4 |
Valuation Allowance | 0 |
Net Tax Benefit | 2.4 |
United States Federal Tax Authority | United States | Carryforward Period Ends 2022 | |
Capital Loss Carryforward [Abstract] | |
Carryforward Amount | 34.1 |
Tax Benefit Amount | 0.5 |
Valuation Allowance | (0.5) |
Net Tax Benefit | 0 |
United States state net operating losses | United States | Carryforward Period Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Carryforward Amount | 1 |
Tax Benefit Amount | 0 |
Valuation Allowance | 0 |
Net Tax Benefit | 0 |
United States state net operating losses | United States | Carryforward Period Ends 2026-2039 | |
Operating Loss Carryforwards [Line Items] | |
Carryforward Amount | 32.1 |
Tax Benefit Amount | 2.1 |
Valuation Allowance | (2.1) |
Net Tax Benefit | 0 |
Non-United States net operating losses | International | Carryforward Period Indefinite | |
Operating Loss Carryforwards [Line Items] | |
Carryforward Amount | 239.1 |
Tax Benefit Amount | 40.7 |
Valuation Allowance | (35.2) |
Net Tax Benefit | 5.5 |
Non-United States net operating losses | International | Carryforward Period Ends 2020-2027 | |
Operating Loss Carryforwards [Line Items] | |
Carryforward Amount | 52.4 |
Tax Benefit Amount | 4.7 |
Valuation Allowance | (4.1) |
Net Tax Benefit | $ 0.6 |
INCOME TAXES - Summary of Tax C
INCOME TAXES - Summary of Tax Credit Carryforwards (Details) $ in Millions | Dec. 31, 2019USD ($) |
Tax credit carryforwards and the related carryforward periods | |
Carryforward Amount | $ 147.7 |
Valuation Allowance | (21.8) |
Net Tax Benefit | 125.9 |
California research expenditure tax credits | California | Research expenditure tax credits | Carryforward Period Indefinite | |
Tax credit carryforwards and the related carryforward periods | |
Carryforward Amount | 124.4 |
Valuation Allowance | 0 |
Net Tax Benefit | 124.4 |
Federal research expenditure tax credits | United States | Research expenditure tax credits | Carryforward Period Indefinite | |
Tax credit carryforwards and the related carryforward periods | |
Carryforward Amount | 1.5 |
Valuation Allowance | 0 |
Net Tax Benefit | 1.5 |
Puerto Rico purchases credit | Puerto Rico | Purchases credit | Carryforward Period Indefinite | |
Tax credit carryforwards and the related carryforward periods | |
Carryforward Amount | 21.8 |
Valuation Allowance | (21.8) |
Net Tax Benefit | $ 0 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense at U.S. federal statutory rate | $ 245 | $ 159.9 | $ 362.2 | ||
Foreign income taxed at different rates | (75) | (16.2) | (106.9) | ||
State and local taxes, net of federal tax benefit | 11.9 | 6.8 | 11.5 | ||
Tax credits, federal and state | (42.9) | (36.7) | (25.8) | ||
Build (release) of reserve for prior years' uncertain tax positions | 5 | (35.5) | (7.7) | ||
U.S. tax on foreign earnings, net of credits | (2.9) | (12.2) | (30.3) | ||
Tax on global intangible low-taxed income | $ 0 | $ 0 | 32 | ||
Foreign-derived intangible income deduction | (7.2) | (6.6) | 0 | ||
Deductible employee share-based compensation | (57.6) | (41.8) | (48.2) | ||
Nondeductible employee share-based compensation | 3.2 | 2.8 | 3.9 | ||
Impact related to 2017 U.S. Tax Reform | 2.8 | 15.8 | 294.1 | ||
Other | 5.3 | 2.9 | (1.5) | ||
Total income tax provision | $ 119.6 | $ 39.2 | $ 451.3 |
INCOME TAXES - Reconciliation_2
INCOME TAXES - Reconciliation of Beginning and Ending Amount of Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Uncertain gross tax positions, beginning balance | $ 150.7 | $ 225.6 | $ 245.5 |
Current year tax positions | 55.4 | 37.8 | 77.7 |
Increase in prior year tax positions | 0.8 | 13.9 | 63.7 |
Decrease in prior year tax positions | (3.8) | (78.8) | (65) |
Settlements | 0 | (46.5) | (95.3) |
Lapse of statutes of limitations | 0 | (1.3) | (1) |
Uncertain gross tax positions, ending balance | $ 203.1 | $ 150.7 | $ 225.6 |
LEGAL PROCEEDINGS (Details)
LEGAL PROCEEDINGS (Details) | 12 Months Ended |
Dec. 31, 2019lawsuit | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of lawsuits that if settled could have a material adverse impact on net income or cash flows | 1 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Information About Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Segment Net Sales | $ 1,174.1 | $ 1,094 | $ 1,086.9 | $ 993 | $ 977.7 | $ 906.6 | $ 943.7 | $ 894.8 | $ 4,348 | $ 3,722.8 | $ 3,435.3 |
Segment Operating Income | 1,166.5 | 761.4 | 1,034.9 | ||||||||
Operating segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Net Sales | 4,333.5 | 3,676 | 3,422.1 | ||||||||
Segment Operating Income | 2,614.5 | 2,115.5 | 1,914.6 | ||||||||
Operating segments | United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Net Sales | 2,532.7 | 2,055.2 | 1,907.6 | ||||||||
Segment Operating Income | 1,742.3 | 1,368.1 | 1,242.3 | ||||||||
Operating segments | Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Net Sales | 926.1 | 826.4 | 800.7 | ||||||||
Segment Operating Income | 472 | 394.8 | 378.4 | ||||||||
Operating segments | Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Net Sales | 441.4 | 398.4 | 356.5 | ||||||||
Segment Operating Income | 272.3 | 237 | 201.1 | ||||||||
Operating segments | Rest of World | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Net Sales | 433.3 | 396 | 357.3 | ||||||||
Segment Operating Income | $ 127.9 | $ 115.6 | $ 92.8 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Segment Net Sales and Pre-Tax Income to Consolidated Net Sales and Pre-Tax Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Sales Reconciliation | |||||||||||
Net sales | $ 1,174.1 | $ 1,094 | $ 1,086.9 | $ 993 | $ 977.7 | $ 906.6 | $ 943.7 | $ 894.8 | $ 4,348 | $ 3,722.8 | $ 3,435.3 |
Pre-tax Income Reconciliation | |||||||||||
Operating income | 1,146.8 | 748.2 | 1,089.4 | ||||||||
Unallocated amounts: | |||||||||||
Special charges, net | (64.6) | (116.2) | (9.7) | ||||||||
Change in fair value of contingent consideration liabilities, net | 6.1 | 5.7 | 9.9 | ||||||||
Foreign currency | 5.9 | 6.7 | (5.4) | ||||||||
Consolidated pre-tax income | 1,166.5 | 761.4 | 1,034.9 | ||||||||
Operating segments | |||||||||||
Net Sales Reconciliation | |||||||||||
Net sales | 4,333.5 | 3,676 | 3,422.1 | ||||||||
Pre-tax Income Reconciliation | |||||||||||
Operating income | 2,614.5 | 2,115.5 | 1,914.6 | ||||||||
Unallocated amounts: | |||||||||||
Consolidated pre-tax income | 2,614.5 | 2,115.5 | 1,914.6 | ||||||||
Segment reconciling items | |||||||||||
Net Sales Reconciliation | |||||||||||
Net sales | 14.5 | 46.8 | 13.2 | ||||||||
Unallocated amounts: | |||||||||||
Special charges, net | (64.6) | (116.2) | |||||||||
Intellectual property litigation (expenses) income, net | (33.4) | (214) | 73.3 | ||||||||
Foreign currency | 63.9 | 15.3 | 4.8 | ||||||||
Non-operating income (expense) | 19.7 | 13.2 | (54.5) | ||||||||
Corporate items | |||||||||||
Unallocated amounts: | |||||||||||
Corporate items | $ (1,439.7) | $ (1,058.1) | $ (903.5) |
SEGMENT INFORMATION - Schedul_2
SEGMENT INFORMATION - Schedule of Enterprise-Wide Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Sales by Geographic Area and by Major Product and Service Area | |||||||||||
Net sales | $ 1,174.1 | $ 1,094 | $ 1,086.9 | $ 993 | $ 977.7 | $ 906.6 | $ 943.7 | $ 894.8 | $ 4,348 | $ 3,722.8 | $ 3,435.3 |
Long-lived Tangible Assets by Geographic Area | |||||||||||
Long-lived tangible assets | 1,241.7 | 899.8 | 1,241.7 | 899.8 | 784.4 | ||||||
Transcatheter Aortic Valve Replacement | |||||||||||
Net Sales by Geographic Area and by Major Product and Service Area | |||||||||||
Net sales | 2,737.9 | 2,283.8 | 2,023.8 | ||||||||
Transcatheter Mitral and Tricuspid Therapies | |||||||||||
Net Sales by Geographic Area and by Major Product and Service Area | |||||||||||
Net sales | 28.2 | 2.9 | 3.4 | ||||||||
Surgical Structural Heart | |||||||||||
Net Sales by Geographic Area and by Major Product and Service Area | |||||||||||
Net sales | 841.7 | 761.6 | 807.1 | ||||||||
Critical Care | |||||||||||
Net Sales by Geographic Area and by Major Product and Service Area | |||||||||||
Net sales | 740.2 | 674.5 | 601 | ||||||||
United States | |||||||||||
Net Sales by Geographic Area and by Major Product and Service Area | |||||||||||
Net sales | 2,532.7 | 2,055.3 | 1,907.6 | ||||||||
Long-lived Tangible Assets by Geographic Area | |||||||||||
Long-lived tangible assets | 849.1 | 642.1 | 849.1 | 642.1 | 608.7 | ||||||
Europe | |||||||||||
Net Sales by Geographic Area and by Major Product and Service Area | |||||||||||
Net sales | 941.2 | 885.1 | 831 | ||||||||
Long-lived Tangible Assets by Geographic Area | |||||||||||
Long-lived tangible assets | 101.5 | 36.6 | 101.5 | 36.6 | 28.4 | ||||||
Japan | |||||||||||
Net Sales by Geographic Area and by Major Product and Service Area | |||||||||||
Net sales | 444.7 | 396.8 | 350.3 | ||||||||
Long-lived Tangible Assets by Geographic Area | |||||||||||
Long-lived tangible assets | 21.7 | 6.7 | 21.7 | 6.7 | 7.6 | ||||||
Rest of World | |||||||||||
Net Sales by Geographic Area and by Major Product and Service Area | |||||||||||
Net sales | 429.4 | 385.6 | 346.4 | ||||||||
Long-lived Tangible Assets by Geographic Area | |||||||||||
Long-lived tangible assets | $ 269.4 | $ 214.4 | $ 269.4 | $ 214.4 | $ 139.7 |
QUARTERLY FINANCIAL RESULTS A_3
QUARTERLY FINANCIAL RESULTS AND MARKET FOR THE COMPANY'S STOCK (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Net sales | $ 1,174.1 | $ 1,094 | $ 1,086.9 | $ 993 | $ 977.7 | $ 906.6 | $ 943.7 | $ 894.8 | $ 4,348 | $ 3,722.8 | $ 3,435.3 | ||
Gross profit | 887.9 | 801.6 | 782.9 | 761.2 | 743 | 681.7 | 697.5 | 661.2 | 3,233.6 | 2,783.4 | 2,560 | ||
Net income | $ 280.2 | $ 274.7 | $ 242.3 | $ 249.7 | $ 7 | $ 225.9 | $ 282.7 | $ 206.6 | $ 1,046.9 | $ 722.2 | $ 583.6 | ||
Earnings per common share (a): | |||||||||||||
Basic (in dollars per share) | $ 1.34 | $ 1.32 | $ 1.16 | $ 1.20 | $ 0.03 | $ 1.08 | $ 1.35 | $ 0.98 | $ 5.03 | $ 3.45 | $ 2.77 | ||
Diluted (in dollars per share) | 1.32 | $ 1.30 | $ 1.14 | $ 1.18 | $ 0.03 | 1.06 | 1.32 | 0.96 | $ 4.93 | $ 3.38 | $ 2.70 | ||
Class of Stock [Line Items] | |||||||||||||
Inventory write off | $ 26.9 | $ 46.2 | $ 73.1 | $ 0 | $ 0 | ||||||||
Gain (loss) on litigation settlement | $ 180 | ||||||||||||
Early-stage Transcatheter Intellectual Property | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Acquisition transaction costs | $ 24 | ||||||||||||
Developed Technology and In-process Research and Development | Valtech | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Impairment of intangible assets | $ 116.2 | $ 116.2 | $ 116.2 | ||||||||||
High | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Market price (in dollars per share) | 247.64 | $ 228.19 | $ 195 | $ 197.86 | $ 174.99 | 175 | 155.22 | 143.22 | $ 247.64 | $ 175 | |||
Low | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Market price (in dollars per share) | $ 213.23 | $ 183.01 | $ 165.69 | $ 140.86 | $ 136.44 | $ 134.53 | $ 123 | $ 110.68 | $ 140.86 | $ 110.68 | |||
Rest of World | Developed technology (Note 4) | Valtech | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Impairment of intangible assets | $ 40.6 | $ 40.6 | |||||||||||
Rest of World | Developed Technology and In-process Research and Development | Valtech | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Impairment of intangible assets | $ 116.2 |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Period | $ 13.6 | $ 13.7 | $ 12.8 |
Charged to Costs and Expenses | 4.7 | 2.2 | 2.9 |
Charged to Other Accounts | 0.2 | 1 | 0 |
Deductions From Reserves | (3.8) | (3.3) | (2) |
Balance at End of Period | 14.7 | 13.6 | 13.7 |
Tax valuation allowance | |||
Movement in Valuation Allowances and Reserves | |||
Balance at Beginning of Period | 46.7 | 41.6 | 47.7 |
Charged to Costs and Expenses | 18.9 | 7.1 | (8.9) |
Charged to Other Accounts | 0.2 | (1.8) | 2.8 |
Deductions From Reserves | 0 | (0.2) | 0 |
Balance at End of Period | $ 65.8 | $ 46.7 | $ 41.6 |
Uncategorized Items - ew10-kq42
Label | Element | Value |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 242,600,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 212,000,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,166,900,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,167,800,000 |
Treasury Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (2,499,300,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (252,100,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 10,400,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 9,300,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,972,500,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 3,915,600,000 |