Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 25, 2018 | |
Entity Registrant Name | BIO-RAD LABORATORIES, INC. | |
Entity Central Index Key | 12,208 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Common Class A [Member] | ||
Entity Common Stock, Shares Outstanding | 24,859,577 | |
Common Class B [Member] | ||
Entity Common Stock, Shares Outstanding | 5,102,627 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS: | ||
Cash and cash equivalents | $ 434,517 | $ 383,824 |
Short-term investments | 426,053 | 371,154 |
Restricted investments | 5,560 | 5,560 |
Accounts receivable, net | 381,526 | 464,847 |
Inventories: | ||
Raw materials | 117,544 | 113,925 |
Work in process | 149,249 | 142,589 |
Finished goods | 334,260 | 338,290 |
Total inventories | 601,053 | 594,804 |
Other current assets | 185,488 | 156,460 |
Total current assets | 2,034,197 | 1,976,649 |
Property, plant and equipment, at cost | 1,295,884 | 1,305,150 |
Less: accumulated depreciation and amortization | (811,561) | (811,654) |
Property, plant and equipment, net | 484,323 | 493,496 |
Goodwill, net | 501,903 | 506,069 |
Purchased intangibles, net | 150,662 | 174,113 |
Other investments | 3,474,321 | 1,027,736 |
Other assets | 73,256 | 94,949 |
Total assets | 6,718,662 | 4,273,012 |
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||
Accounts payable, accrued payroll and employee benefits | 257,028 | 306,814 |
Current maturities of long-term debt and notes payable | 1,772 | 420 |
Income and other taxes payable | 44,783 | 39,941 |
Other current liabilities | 149,576 | 155,521 |
Total current liabilities | 453,159 | 502,696 |
Long-term debt, net of current maturities | 438,803 | 434,581 |
Deferred income taxes | 753,948 | 222,209 |
Other long-term liabilities | 172,271 | 183,276 |
Total liabilities | 1,818,181 | 1,342,762 |
Stockholders' equity: | ||
Additional paid-in capital | 382,393 | 361,231 |
Retained earnings | 4,550,601 | 1,830,439 |
Accumulated other comprehensive income | (32,299) | 738,794 |
Total stockholders' equity | 4,900,481 | 2,930,250 |
Total liabilities and stockholders' equity | 6,718,662 | 4,273,012 |
Common Class A [Member] | ||
Stockholders' equity: | ||
Common stock | 2 | 2 |
Common Class B [Member] | ||
Stockholders' equity: | ||
Common stock | 1 | 1 |
Treasury Class A [Member] | ||
Stockholders' equity: | ||
Treasury Stock, Value | (128) | (128) |
Treasury Class B [Member] | ||
Stockholders' equity: | ||
Treasury Stock, Value | $ (89) | $ (89) |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Allowance for Doubtful Accounts Receivable, Current | $ 26,559 | $ 25,549 |
Common Class A [Member] | ||
Common Stock, Shares, Issued | 24,860,159 | 24,679,127 |
Common Stock, Shares, Outstanding | 24,859,577 | 24,678,545 |
Common Class B [Member] | ||
Common Stock, Shares, Issued | 5,103,544 | 5,107,674 |
Common Stock, Shares, Outstanding | 5,102,627 | 5,106,757 |
Treasury Class A [Member] | ||
Treasury Stock, Shares | 582 | 582 |
Treasury Class B [Member] | ||
Treasury Stock, Shares | 917 | 917 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net sales | $ 545,138 | $ 534,141 | $ 1,672,568 | $ 1,538,858 |
Cost of goods sold | 258,422 | 235,133 | 781,982 | 696,412 |
Gross profit | 286,716 | 299,008 | 890,586 | 842,446 |
Selling, general and administrative expense | 201,196 | 198,169 | 620,751 | 605,060 |
Research and Development Expense | 49,245 | 62,077 | 146,122 | 174,116 |
Segment profit (loss) | 36,275 | 38,762 | 123,713 | 63,270 |
Interest expense | 6,064 | 5,872 | 17,823 | 17,233 |
Foreign exchange (gains) losses, net | 672 | 3,363 | 1,911 | 7,668 |
Unrealized Gain on Securities | (318,007) | 0 | (1,420,339) | 0 |
Nonoperating Income (Expense) | 2,585 | 1,061 | 29,588 | 13,486 |
Income before income taxes | 350,131 | 30,588 | 1,553,906 | 51,855 |
(Provision) benefit for income taxes | (80,805) | (8,521) | (359,763) | (12,340) |
Net income attributable to Bio-Rad | $ 269,326 | $ 22,067 | $ 1,194,143 | $ 39,515 |
Basic earnings per share: | ||||
Net income per share basic attributable to Bio-Rad | $ 9.02 | $ 0.74 | $ 40.04 | $ 1.33 |
Weighted average common shares - basic | 29,863 | 29,660 | 29,822 | 29,618 |
Diluted earnings per share: | ||||
Net income per share diluted attributable to Bio-Rad | $ 8.89 | $ 0.73 | $ 39.50 | $ 1.32 |
Weighted average common shares - diluted | 30,292 | 30,052 | 30,234 | 29,994 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net Income (Loss) Attributable to Parent | $ 269,326 | $ 22,067 | $ 1,194,143 | $ 39,515 |
Foreign currency translation adjustments | (13,556) | 10,604 | (91,128) | 71,126 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | 105 | 192 | 1,281 | (1,861) |
Net unrealized holding gains (losses) on available-for-sale investments net of tax expense | (138) | (4,582) | (1,989) | 130,131 |
Total other comprehensive income (loss) net of tax | (13,589) | 6,214 | (91,836) | 199,396 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 255,737 | $ 28,281 | $ 1,102,307 | $ 238,911 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Cash received from customers | $ 1,715,960 | $ 1,518,057 |
Cash paid to suppliers and employees | (1,494,794) | (1,430,371) |
Interest paid, net | (11,721) | (11,397) |
Income tax payments, net | (57,840) | (39,821) |
Investment proceeds and miscellaneous receipts, net | 21,601 | 14,338 |
Proceeds from (payments for) forward foreign exchange contracts, net | 7,279 | (16,034) |
Net cash provided by operating activities | 180,485 | 34,772 |
Cash flows from investing activities: | ||
Capital expenditures | (75,951) | (85,264) |
Proceeds from dispositions of property, plant and equipment | 4,273 | 62 |
Proceeds from divestiture of a product line | 6,964 | 0 |
Proceeds from (payments for) acquisitions | 266 | |
Payments for acquisitions and long-term investments | (74,874) | |
Payments for purchases of intangible assets | (3) | (3,790) |
Payments for purchases of marketable securities and investments | (286,826) | (233,766) |
Proceeds from Sale of Debt Securities, Available-for-sale | 60,488 | |
Proceeds from sales of marketable securities and investments | 83,883 | |
Proceeds from maturities of marketable securities and investments | 158,622 | 151,260 |
Net cash used in investing activities | (132,167) | (162,489) |
Cash flows from financing activities: | ||
Net payments on line-of-credit arrangements and notes payable | 0 | (36) |
Payments on long-term borrowings | (1,595) | (220) |
Payments of contingent consideration | (2,078) | (3,681) |
Proceeds from issuance of common stock for shared-based compensation | 1,996 | 3,622 |
Payments for purchases of treasury stock | 0 | (2,920) |
Net cash used in financing activities | (1,677) | (3,235) |
Effect of foreign exchange rate changes on cash | 3,965 | 3,823 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 50,606 | (127,129) |
Beginning Cash, Cash Equivalents, and Restricted Cash | 384,983 | 457,171 |
Cash and cash equivalents | 434,517 | 328,894 |
Restricted Cash, Current | 102 | 812 |
Restricted Cash, Noncurrent | 970 | 336 |
Ending Cash, Cash Equivalents, and Restricted Cash | $ 435,589 | $ 330,042 |
1. Organization, Consolidation
1. Organization, Consolidation and Presentation of Financial Statements | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | 1. BASIS OF PRESENTATION AND USE OF ESTIMATES Basis of Presentation In this report, “Bio-Rad,” “we,” “us,” “the Company” and “our” refer to Bio-Rad Laboratories, Inc. and its subsidiaries. The accompanying unaudited condensed consolidated financial statements of Bio-Rad have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and reflect all adjustments which are, in the opinion of management, necessary to fairly state the results of the interim periods presented. All such adjustments are of a normal recurring nature. Results for the interim period are not necessarily indicative of the results for the entire year. The condensed consolidated balance sheet at December 31, 2017 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2017 . We evaluate subsequent events and the evidence they provide about conditions existing at the date of the balance sheet as well as conditions that arose after the balance sheet date but through the date the financial statements are issued. The effects of conditions that existed at the balance sheet date are recognized in the financial statements. Events and conditions arising after the balance sheet date but before the financial statements are issued are evaluated to determine if disclosure is required to keep the financial statements from being misleading. To the extent such events and conditions exist, disclosures are made regarding the nature of events and the estimated financial effects of those events and conditions. Use of Estimates The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting periods. Bio-Rad bases its estimates on historical experience and on various other market-specific and other relevant assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates. Revenue Recognition On January 1, 2018, we adopted Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers," using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under prior revenue guidance ASC 605, "Revenue Recognition." We recorded a net reduction to opening retained earnings of $0.1 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606 with the impact primarily related to a customer loyalty program in the United States for which the resulting non-cash consideration is treated as variable consideration under the new revenue recognition accounting standard. The impact to revenue as a result of applying ASC 606 as compared to ASC 605 for the nine months ended September 30, 2018 was not significant. We recognize revenue from operations through the sale of products, services, and rental of instruments. Revenue from contracts with customers is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally accounted for as distinct performance obligations. Revenue is recognized net of any taxes collected from customers (sales tax, value added tax, etc.), which are subsequently remitted to government authorities. Our contracts from customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment and may or may not impact the timing of revenue recognition. Revenue associated with equipment that requires factory installation is not recorded until installation is complete and customer acceptance, if required, has occurred. Certain equipment requires installation due to the fact that the instruments are being operated in a clinical/laboratory environment, and the installation services could result in modification of the equipment in order to ensure that the instruments are working according to specifications of the customer which are subject to validation tests upon completion of the installation. In these arrangements, which require factory installation, the delivery of the equipment and the installation are separate performance obligations. We will recognize the transaction price allocated to the equipment only upon customer acceptance, as the transfer of control has occurred in relation to the equipment at that point in time as the customer has the ability to direct the use of and obtain substantially all of the remaining benefits from the asset. The transaction price allocated to the installation services is also recognized upon completion of the services because without the completion of the installation services and related customer acceptance the customer cannot receive any of the benefits of the service. At the time revenue is recognized, a provision is recognized for estimated product returns as this right is considered variable consideration. Accordingly, when product revenues are recognized, the transaction price is reduced to the estimated amount that we expect to receive in exchange for transferring control for those products. Service revenues on extended warranty contracts are recognized ratably over the life of the service agreement as a stand-ready performance obligation. For arrangements that include a combination of products and services, transaction prices are allocated to performance obligations based on stand-alone selling prices. The method used to determine the stand-alone selling prices for service revenues is based on the observable prices when the services have been sold separately. In those instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simple and predictable methods of purchasing our products and services, not to either provide or receive financing to or from our customers. We record contract liabilities when cash payments are received or due in advance of our performance. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less and for contracts in which we recognize revenue at the amount to which we have the right to invoice for services performed. Our payment terms vary by the type and location of our customer, and the products and services offered. The term between invoicing and when payment is due is not significant. Reagent Rental Agreements Reagent rental agreements are a diagnostic industry sales method that provides use of an instrument and consumables (reagents) to a customer on a per test basis. These agreements may also include maintenance of the underlying instruments retained at customer locations as well as initial training. We concluded that the use of the instrument and related maintenance services (collectively known as “lease elements”) are not within the guidance of ASC 606 but rather ASC 840 Leases. Accordingly, we first allocate the transaction price between the lease elements and the non-lease elements based on relative standalone selling prices. The determination of the transaction price requires judgment and requires consideration of any fixed/minimum payments as well as estimates of variable consideration. After determining what portion of the transaction price should be allocated to the lease elements, any fixed consideration would be considered the minimum lease payment to be amortized straight line over the lease term and any variable consideration would be contingent rent to be recognized monthly as earned, which coincides with the transfer of control of the non-lease elements. For the portion of the transaction price allocated to the non-lease elements, which are principally the reagents, the related revenue will be recognized at a point in time when control transfers. Generally, the terms of the arrangements result in the transfer of control upon either (i) when the consumables are delivered or (ii) when the consumables are consumed by the customer. Revenue allocated to the lease elements of these reagent rental arrangements represent approximately 5% of total revenue and are included as part of the Net sales in our Condensed Consolidated Statements of Income. Contract costs: As a practical expedient, we expense as incurred costs to obtain contracts as the amortization period would have been one year or less. These costs, recorded within Selling, general and administrative expense, include our internal sales force compensation programs and certain partner sales incentive programs, as we have determined that annual compensation is commensurate with annual selling activities. Disaggregation of Revenue: The following table presents our revenues disaggregated by geographic region based primarily on the location of the use of the product or service (in millions, unaudited): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Europe $ 182.7 $ 190.3 $ 579.5 $ 539.3 Pacific Rim 110.3 105.7 341.7 307.9 United States 218.3 203.3 649.8 593.2 Other (primarily Canada and Latin America) 33.8 34.8 101.6 98.5 Total Net sales $ 545.1 $ 534.1 $ 1,672.6 $ 1,538.9 The disaggregation of our revenue by industry segment sources is presented in our Segment Information footnote (see Note 10). Deferred revenues represent mostly unrecognized fees billed or collected for extended service arrangements. Deferred revenues are recognized as (or when) we perform under the contract, which is generally recognized ratably over the term of the service contract. A majority of our deferred revenue balance is classified as current with an expected length of one year or less. The increase in our total deferred revenue balance from $36.7 million at December 31, 2017 to $39.3 million at September 30, 2018 is primarily driven by $30.8 million , net, of cash payments received or due in advance of satisfying our performance obligations, offset by $28.2 million of revenue recognized that were included in our deferred revenue balance as of December 31, 2017 . We warrant certain equipment against defects in design, materials and workmanship, generally for a period of one year. Upon revenue recognition of that equipment, we establish, as part of Cost of goods sold, a provision for the expected costs of such warranty based on historical experience, specific warranty terms and customer feedback. A review is performed on a quarterly basis to assess the adequacy of our warranty accrual. Components of the warranty accrual, included in Other current liabilities and Other long-term liabilities in the Condensed Consolidated Balance Sheets, were as follows (in millions): January 1, 2018 $ 18.7 Provision for warranty 25.8 Actual warranty costs (27.7 ) September 30, 2018 $ 16.8 Recent Accounting Pronouncements Adopted In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. ("ASU") 2018-03, "Technical Corrections and Improvements to Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2018-03 amends certain items in ASU 2016-01 (see below) such as equity securities without a readily determinable fair value. ASU 2018-03 clarifies that an entity that uses the measurement alternative for equity securities without readily determinable fair values can change its measurement approach to fair value and once made the election is irrevocable. If an entity measures equity securities without readily determinable fair values at fair value, it must record a cumulative-effect adjustment to Retained earnings as of the beginning of the fiscal year in which the guidance is adopted. We adopted ASU 2018-03 on January 1, 2018 and made an irrevocable election to account for our investment of the ordinary shares of Sartorius AG at fair value (see ASU 2016-01 below). In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities." Amendments under ASU 2016-01, among other items, require that all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. Changes in fair value for equity securities will no longer be reported in other comprehensive income. For equity investments without readily determinable fair values, the cost method is also eliminated. We adopted ASU 2016-01 on January 1, 2018 and record equity investments without readily determinable fair values at cost, less impairment, and plus or minus subsequent adjustments for observable price changes and were valued at $0.6 million as of September 30, 2018 . Changes in the basis of these equity investments are reported in current earnings. For equity securities that are affected by ASU 2016-01 and ASU 2018-03, see Note 2 to the condensed consolidated financial statements, which primarily consists of our investment in Sartorius AG. The impact of the adoption of ASU 2016-01 and ASU 2018-03 on January 1, 2018 was through a cumulative-effect adjustment of $864.5 million to Total stockholders' equity by increasing Retained earnings of $1,543.7 million and decreasing Accumulated other comprehensive income of $679.2 million , including increasing Deferred income taxes by $232.9 million and an increase in Other investments of $1,097.4 million in our Condensed Consolidated Balance Sheet. As a result of ASU 2016-01 and ASU 2018-03 for the three and nine months ended September 30, 2018 , we recorded $318.0 million and $1,420.3 million , respectively, for the Change in fair market value of equity securities in the Condensed Consolidated Statement of Income that resulted in a deferred tax expense for the three and nine months ended September 30, 2018 of $70.0 million and $313.7 million , respectively. In March 2017, the FASB issued ASU 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which changed how we present the net periodic benefit cost of our defined benefit pension and/or other postretirement plans. We adopted ASU 2017-07 on January 1, 2018 and applied the practical expedient to estimate amounts for comparative purposes utilizing the information disclosed in Note 12 to the consolidated financial statements in our Form 10-K for the year ended December 31, 2017. The interest costs are recorded in Interest expense, and the other costs are recorded in Other (income) expense, net in the Condensed Consolidated Statements of Income. For the third quarter of 2017 for interest costs and other costs, we reclassified $0.076 million , $0.538 million , and $0.036 million from Costs of goods sold (COGS), Selling, general and administrative expense (SG&A) and Research and development expense (R&D), respectively, to Interest expense of $0.275 million and Other (income) expense, net of $0.375 million . For the first nine months of 2017 for interest costs and other costs, we reclassified $0.228 million , $1.614 million , and $0.108 million from COGS, SG&A and R&D, respectively, to Interest expense of $0.825 million and Other (income) expense, net of $1.125 million . In November 2016, the FASB issued ASU 2016-18, "Restricted Cash," which required us to cease to present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. We adopted ASU 2016-18 on January 1, 2018 and updated the Condensed Consolidated Statements of Cash Flows to incorporate restricted cash included in Other current assets and Other assets of $1.1 million as of September 30, 2018 and $1.1 million as of September 30, 2017 . In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory," which required immediate recognition of income tax consequences of intercompany asset transfers, other than inventory transfers. We adopted ASU 2016-16 on January 1, 2018 on a modified retrospective basis through a cumulative-effect adjustment by decreasing Retained earnings by $17.6 million , and decreasing Prepaid taxes by $22.8 million and increasing Deferred tax assets by $5.2 million that are both recorded in Other assets in our Condensed Consolidated Balance Sheet. In August 2016, FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments" and adopted it on January 1, 2018, which did not have an impact to our statement of cash flows presentation. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ("ASC 606"), an updated standard on revenue recognition. The new standard provides enhancements to the quality and consistency of how revenue is reported under the principle that revenue should be recognized in an amount that reflects the consideration to which we expect to be entitled in exchange for the transfer of promised goods or services. We adopted ASC 606 as of January 1, 2018 using the cumulative effect transition method as more fully described above under the caption “Revenue Recognition.” Recent Accounting Pronouncements to be Adopted In August 2018, the FASB issued ASU 2018-15, "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." ASU 2018-15 amends the definition of a hosting arrangement and requires a customer in a hosting arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. The internal-use software guidance states that only qualifying costs incurred during the application development stage can be capitalized. ASU 2018-15 is effective for fiscal years ending after December 15, 2019. Early adoption is permitted and entities have the option to apply the guidance prospectively to all implementation costs incurred after the date of adoption or retrospectively. We are currently evaluating the effect ASU 2018-15 will have on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." ASU 2018-14 eliminates and adds certain disclosures for defined benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 using a retrospective approach, with early adoption permitted. We are currently evaluating the disclosures and the timing of adoption but do not expect ASU 2018-14 to have a material impact to our disclosures for defined benefit plans. In August 2018, the FASB issued ASU 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." ASU 2018-13 eliminates, adds and modifies certain disclosures for fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Early adoption is permitted in interim periods, including periods for which financial statements have not yet been issued. We do not expect ASU 2018-13 to have a material impact to our fair value disclosures and we currently do not plan to early adopt. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." ASU 2016-13 will replace the current incurred loss approach with an expected loss model for instruments measured at amortized cost and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount under the current other-than-temporary impairment model. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018, and interim periods therein. We are currently evaluating the effect ASU 2016-13 will have on our consolidated financial statements. |
2. Fair Value Measurements
2. Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS We determine the fair value of an asset or liability based on the assumptions that market participants would use in pricing the asset or liability in an orderly transaction between market participants at the measurement date. The identification of market participant assumptions provides a basis for determining what inputs are to be used for pricing each asset or liability. A fair value hierarchy has been established which gives precedence to fair value measurements calculated using observable inputs over those using unobservable inputs. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1: Quoted prices in active markets for identical instruments • Level 2: Other significant observable inputs (including quoted prices in active markets for similar instruments) • Level 3: Significant unobservable inputs (including assumptions in determining the fair value of certain investments) Financial assets and liabilities carried at fair value and measured on a recurring basis as of September 30, 2018 are classified in the hierarchy as follows (in millions): Level 1 Level 2 Level 3 Total Financial Assets Carried at Fair Value: Cash equivalents: Commercial paper $ — $ 70.7 $ — $ 70.7 Asset backed — 0.1 — 0.1 Time deposits 24.0 10.0 — 34.0 Money market funds 35.0 — — 35.0 Total cash equivalents (a) 59.0 80.8 — 139.8 Restricted investment 5.6 — — 5.6 Equity securities (b) 3,502.7 — — 3,502.7 Available-for-sale investments: Corporate debt securities — 223.5 — 223.5 U.S. government sponsored agencies — 76.1 — 76.1 Foreign government obligations — 3.3 — 3.3 Municipal obligations — 15.6 — 15.6 Asset-backed securities — 61.0 — 61.0 Total available-for-sale investments (c) — 379.5 — 379.5 Forward foreign exchange contracts (d) — 1.5 — 1.5 Total financial assets carried at fair value $ 3,567.3 $ 461.8 $ — $ 4,029.1 Financial Liabilities Carried at Fair Value: Forward foreign exchange contracts (e) $ — $ 1.5 $ — $ 1.5 Contingent consideration (f) — — 8.1 8.1 Total financial liabilities carried at fair value $ — $ 1.5 $ 8.1 $ 9.6 As of first quarter 2018, our equity securities are no longer reported as Available-for-sale investments due to the implementation of ASU 2016-01. Changes in fair value of equity securities are now reported on the Condensed Consolidated Statements of Income rather than Other Comprehensive Income (see Note 1). Financial assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2017 are classified in the hierarchy as follows (in millions): Level 1 Level 2 Level 3 Total Financial Assets Carried at Fair Value: Cash equivalents: Commercial paper $ — $ 36.0 $ — $ 36.0 Time deposits 43.7 10.0 — 53.7 U.S. government sponsored agencies — 11.2 — 11.2 Money market funds 3.4 — — 3.4 Total cash equivalents (a) 47.1 57.2 — 104.3 Restricted investment 5.6 — — 5.6 Available-for-sale investments: Corporate debt securities — 185.7 — 185.7 U.S. government sponsored agencies — 67.6 — 67.6 Foreign government obligations — 3.4 — 3.4 Brokered certificates of deposit — 0.7 — 0.7 Municipal obligations — 15.0 — 15.0 Marketable equity securities 973.4 — — 973.4 Asset-backed securities — 55.6 — 55.6 Total available-for-sale investments (c) 973.4 328.0 — 1,301.4 Forward foreign exchange contracts (d) — 0.5 — 0.5 Total financial assets carried at fair value $ 1,026.1 $ 385.7 $ — $ 1,411.8 Financial Liabilities Carried at Fair Value: Forward foreign exchange contracts (e) $ — $ 1.6 $ — $ 1.6 Contingent consideration (f) — — 16.7 16.7 Total financial liabilities carried at fair value $ — $ 1.6 $ 16.7 $ 18.3 (a) Cash equivalents are included in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (b) Equity securities are included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): September 30, 2018 Short-term investments $ 46.7 Other investments 3,456.0 Total $ 3,502.7 The unrealized gains on our equity securities still held as of September 30, 2018 are $1,420.3 million and are primarily due to our investment in Sartorius AG and is recorded in our Condensed Consolidated Statements of Income due to the adoption of ASU 2016-01 (see Note 1). (c) Available-for-sale investments are included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): September 30, 2018 December 31, 2017 Short-term investments $ 379.3 $ 371.2 Other investments 0.2 930.2 Total $ 379.5 $ 1,301.4 In accordance with our adoption of ASU 2016-01 January 1, 2018, our investment in Sartorius AG preferred shares, which was reported within marketable equity securities as Available-for-sale as of December 31, 2017 , is now reported as an Equity security as of September 30, 2018 (see Note 1 and footnote (b) above). (d) Forward foreign exchange contracts in an asset position are included in Other current assets in the Condensed Consolidated Balance Sheets. (e) Forward foreign exchange contracts in a liability position are included in Other current liabilities in the Condensed Consolidated Balance Sheets. (f) Contingent consideration liability is included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): September 30, 2018 December 31, 2017 Other current liabilities $ 3.1 $ 2.7 Other long-term liabilities 5.0 14.0 Total $ 8.1 $ 16.7 During the first quarter of 2016, we recognized a contingent consideration liability upon our acquisition of a high performance analytical flow cytometer platform from Propel. At the acquisition date, the amount of contingent consideration was determined based on a probability-weighted income approach related to the achievement of sales milestones, ranging from 39% to 20% for the calendar years 2018 through 2020 . The sales milestones could potentially range from $0 to an unlimited amount. In the first and third quarters of 2018, we paid $1.3 million and $0.8 million , respectively, per the purchase agreement. Since 2016 we have decreased the cumulative valuation of the sales milestones by $12.5 million . The contingent consideration was accrued at its estimated fair value of $8.1 million as of September 30, 2018 . The following table provides a reconciliation of the Level 3 analytical flow cytometer platform contingent consideration liabilities measured at estimated fair value (in millions): January 1, 2018 $ 16.7 Payment of sales milestone (2.1 ) Decrease in estimated fair value of contingent consideration included in Selling, general and administrative expense (6.5 ) September 30, 2018 $ 8.1 The following table provides quantitative information about Level 3 inputs for fair value measurement of our analytical flow cytometer platform contingent consideration liability as of September 30, 2018 . Significant increases or decreases in these inputs in isolation could result in a significantly lower or higher fair value measurement. Valuation Technique Unobservable Input Analytical flow cytometer platform Probability-weighted income approach Sales milestones: Discount rate 11.3 % Cost of debt 4.9 % To estimate the fair value of Level 2 debt securities as of September 30, 2018 and December 31, 2017 , our primary pricing provider uses Securities Evaluations as the primary pricing source. Our pricing process allows us to select a hierarchy of pricing sources for securities held. If Securities Evaluations does not price a Level 2 security that we hold, then the pricing provider will utilize our custodian supplied pricing as the secondary pricing source. For commercial paper as of September 30, 2018 and December 31, 2017 , pricing is determined by a straight-line calculation, starting with the purchase price on the date of purchase and increasing to par at maturity. Interest bearing certificates of deposit and commercial paper are priced at par. In the event that an additional lot of the same commercial paper issue has been purchased within the same account, then the price of all holdings of that issue in that account will be the price of the most recent lot purchased. Our pricing provider performs daily reasonableness testing of the Securities Evaluations prices. Price changes of 5% or greater are investigated and resolved. In addition, we perform a quarterly comparison of the Securities Evaluations prices to custodian reported prices. Price differences outside a tolerable variance of approximately 1% are investigated and resolved. Available-for-sale investments consist of the following (in millions): September 30, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate debt securities $ 224.7 $ 0.1 $ (1.3 ) $ 223.5 Municipal obligations 15.7 — (0.1 ) 15.6 Asset-backed securities 61.1 — (0.3 ) 60.8 U.S. government sponsored agencies 77.6 — (1.5 ) 76.1 Foreign government obligations 3.3 — — 3.3 382.4 0.1 (3.2 ) 379.3 Long-term investments: Asset-backed securities 0.2 — — 0.2 0.2 — — 0.2 Total $ 382.6 $ 0.1 $ (3.2 ) $ 379.5 The following is a summary of the amortized cost and estimated fair value of our debt securities at September 30, 2018 by contractual maturity date (in millions): Amortized Cost Estimated Fair Value Mature in less than one year $ 170.3 $ 170.0 Mature in one to five years 164.9 163.3 Mature in more than five years 47.4 46.2 Total $ 382.6 $ 379.5 Available-for-sale investments consist of the following (in millions): December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate debt securities $ 185.9 $ 0.3 $ (0.5 ) $ 185.7 Brokered certificates of deposit 0.7 — — 0.7 Municipal obligations 15.1 — (0.1 ) 15.0 Asset-backed securities 55.6 — (0.2 ) 55.4 U.S. government sponsored agencies 68.3 — (0.7 ) 67.6 Foreign government obligations 3.4 — — 3.4 Marketable equity securities 34.4 9.0 — 43.4 363.4 9.3 (1.5 ) 371.2 Long-term investments: Marketable equity securities 54.5 875.5 — 930.0 Asset-backed securities 0.2 — — 0.2 54.7 875.5 — 930.2 Total $ 418.1 $ 884.8 $ (1.5 ) $ 1,301.4 The following is a summary of investments with gross unrealized losses and the associated fair value (in millions): September 30, 2018 December 31, 2017 Fair value of investments in a loss position 12 months or more $ 70.7 $ 43.9 Fair value of investments in a loss position less than 12 months $ 242.8 $ 168.7 Gross unrealized losses for investments in a loss position 12 months or more $ 1.5 $ 0.7 Gross unrealized losses for investments in a loss position less than 12 months $ 1.7 $ 0.8 The unrealized losses on these securities are due to a number of factors, including changes in interest rates, changes in economic conditions and changes in market outlook for various industries, among others. Because Bio-Rad has the ability and intent to hold these investments with unrealized losses until a recovery of fair value, or for a reasonable period of time sufficient for a forecasted recovery of fair value, which may be maturity, we do not consider these investments to be other-than-temporarily impaired at September 30, 2018 or at December 31, 2017 . As part of distributing our products, we regularly enter into intercompany transactions. We enter into forward foreign exchange contracts to manage foreign exchange risk of future movements in foreign exchange rates that affect foreign currency denominated intercompany receivables and payables. We do not use derivative financial instruments for speculative or trading purposes. We do not seek hedge accounting treatment for these contracts. As a result, these contracts, generally with maturity dates of 90 days or less and denominated primarily in currencies of industrial countries, are recorded at their fair value at each balance sheet date. The notional principal amounts provide one measure of the transaction volume outstanding as of September 30, 2018 and do not represent the amount of Bio-Rad's exposure to loss. The estimated fair value of these contracts was derived using the spot rates from Reuters on the last business day of the quarter and the points provided by counterparties. The resulting gains or losses offset exchange gains or losses on the related receivables and payables, both of which are included in Foreign currency exchange losses, net in the Condensed Consolidated Statements of Income. The following is a summary of our forward foreign exchange contracts (in millions): September 30, 2018 Contracts maturing in October through December 2018 to sell foreign currency: Notional value $ 52.4 Unrealized loss $ 0.2 Contracts maturing in October through December 2018 to purchase foreign currency: Notional value $ 288.0 Unrealized loss $ — The estimated fair value of financial instruments that are not recognized at fair value in the Condensed Consolidated Balance Sheets and are included in Other investments, are presented in the table below. Fair value has been determined using significant observable inputs, including quoted prices in active markets for similar instruments. Estimates are not necessarily indicative of the amounts that could be realized in a current market exchange as considerable judgment is required in interpreting market data used to develop estimates of fair value. The use of different market assumptions or estimation techniques could have a material effect on the estimated fair value. Other investments include financial instruments, the majority of which have fair value based on similar, actively traded stock adjusted for various discounts, including a discount for marketability. Long-term debt, excluding leases and current maturities, has an estimated fair value based on quoted market prices for the same or similar issues. The estimated fair value of the financial instruments discussed above and the level of the fair value hierarchy within which the fair value measurement is categorized are as follows (in millions): September 30, 2018 December 31, 2017 Carrying Amount Estimated Fair Value Fair Value Hierarchy Level Carrying Amount Estimated Fair Value Fair Value Hierarchy Level Other investments — — $ 91.8 $ 1,249.4 2 Total long-term debt, excluding leases and current maturities $ 423.6 $ 436.4 2 $ 423.1 $ 449.8 2 We own shares of ordinary voting stock of Sartorius AG (Sartorius), of Goettingen, Germany, a process technology supplier to the biotechnology, pharmaceutical, chemical and food and beverage industries. We own over 37% of the outstanding voting shares (excluding treasury shares) of Sartorius as of September 30, 2018 . The Sartorius family trust and Sartorius family members hold a controlling interest of the outstanding voting shares. We do not have any representative or designee on Sartorius’ Board of Directors, nor do we have the ability to exercise significant influence over the operating and financial policies of Sartorius. As of September 30, 2018 , due to the adoption of |
3. Intangible Assets, Goodwill
3. Intangible Assets, Goodwill and Other | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS Changes to goodwill by segment were as follows (in millions): Life Science Clinical Diagnostics Total Balances as of January 1, 2018: Goodwill $ 234.7 $ 324.6 $ 559.3 Accumulated impairment losses (35.9 ) (17.3 ) (53.2 ) Goodwill, net 198.8 307.3 506.1 Divestiture — (1.4 ) (1.4 ) Currency fluctuations (0.2 ) (2.6 ) (2.8 ) Balances as of September 30, 2018: Goodwill 234.5 320.6 555.1 Accumulated impairment losses (35.9 ) (17.3 ) (53.2 ) Goodwill, net $ 198.6 $ 303.3 $ 501.9 In March 2018, we wrote off $1.4 million of goodwill from our Clinical Diagnostics segment as a result of a divestiture of a product line. Other than goodwill, we have no intangible assets with indefinite lives. Information regarding our identifiable purchased intangible assets with definite lives is as follows (in millions): September 30, 2018 Average Remaining Life (years) Purchase Price Accumulated Amortization Net Carrying Amount Customer relationships/lists 1-7 $ 89.1 $ (67.0 ) $ 22.1 Know how 1-7 191.7 (159.7 ) 32.0 Developed product technology 2-11 131.3 (76.1 ) 55.2 Licenses 1-11 76.4 (39.7 ) 36.7 Tradenames 2-6 3.9 (3.2 ) 0.7 Covenants not to compete 1-8 7.9 (3.9 ) 4.0 Total definite-lived intangible assets $ 500.3 $ (349.6 ) $ 150.7 December 31, 2017 Average Remaining Life (years) Purchase Price Accumulated Amortization Net Carrying Amount Customer relationships/lists 1-7 $ 92.3 $ (64.4 ) $ 27.9 Know how 1-8 194.9 (157.9 ) 37.0 Developed product technology 1-12 133.3 (70.3 ) 63.0 Licenses 1-12 76.7 (36.0 ) 40.7 Tradenames 1-6 3.9 (3.0 ) 0.9 Covenants not to compete 1-8 7.9 (3.3 ) 4.6 Total definite-lived intangible assets $ 509.0 $ (334.9 ) $ 174.1 Amortization expense related to purchased intangible assets is as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Amortization expense $ 7.0 $ 7.8 $ 21.8 $ 23.4 |
4. Supplemental Cash Flow Info
4. Supplemental Cash Flow Information (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | SUPPLEMENTAL CASH FLOW INFORMATION The reconciliation of net income to net cash provided by operating activities is as follows (in millions): Nine Months Ended September 30, 2018 September 30, 2017 Net income $ 1,194.1 $ 39.5 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 103.6 106.0 Share-based compensation 19.2 16.6 Losses on dispositions of securities 1.0 0.2 Changes in fair market value of equity securities (1,420.3 ) — Gain on divestiture of a product line (5.1 ) — Losses on dispositions of fixed assets 1.2 6.8 Gain on sale of land (4.1 ) — Changes in fair value of contingent consideration (6.5 ) (11.7 ) Decrease (increase) in accounts receivable 72.2 (22.4 ) Increase in inventories (26.3 ) (52.6 ) Increase in other current assets (8.9 ) (18.4 ) Decrease in accounts payable and other current liabilities (43.1 ) (14.5 ) Decrease in income taxes payable (22.1 ) (29.2 ) Increase in deferred income taxes 316.7 0.2 Net increase in other long-term assets/liabilities 8.9 14.3 Net cash provided by operating activities $ 180.5 $ 34.8 |
5. Long-Term Debt
5. Long-Term Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | LONG-TERM DEBT The principal components of long-term debt are as follows (in millions): September 30, December 31, 4.875% Senior Notes due 2020 principal amount $ 425.0 $ 425.0 Less unamortized discount and debt issuance costs (1.4 ) (1.9 ) 4.875% Senior Notes less unamortized discount and debt issuance costs 423.6 423.1 Capital leases and other debt 17.0 11.9 440.6 435.0 Less current maturities (1.8 ) (0.4 ) Long-term debt $ 438.8 $ 434.6 Senior Notes due 2020 In December 2010, Bio-Rad sold $425.0 million principal amount of Senior Notes due 2020 ( 4.875% Notes). The sale yielded net cash proceeds of $422.6 million at an effective rate of 4.946% . The 4.875% Notes pay a fixed rate of interest of 4.875% per year. We have the option to redeem any or all of the 4.875% Notes at any time at a redemption price of 100% of the principal amount (plus a specified make-whole premium as defined in the indenture governing the 4.875% Notes) and accrued and unpaid interest thereon to the redemption date. Our obligations under the 4.875% Notes are not secured and rank equal in right of payment with all of our existing and future unsubordinated indebtedness. Certain covenants apply at each year end to the 4.875% Notes including limitations on the following: liens, sale and leaseback transactions, mergers, consolidations or sales of assets and other covenants. There are no restrictive covenants relating to total indebtedness, interest coverage, stock repurchases, recapitalizations, dividends and distributions to shareholders or current ratios. Credit Agreement In June 2014, Bio-Rad entered into a $200.0 million unsecured Credit Agreement. Borrowings under the Credit Agreement are on a revolving basis and can be used to make permitted acquisitions, for working capital and for other general corporate purposes. We had no outstanding borrowings under the Credit Agreement as of September 30, 2018 or December 31, 2017 , however $0.5 million was utilized for domestic standby letters of credit that reduced our borrowing availability as of September 30, 2018 . The Credit Agreement matures in June 2019 . If we had borrowed against our Credit Agreement, the borrowing rate would have been 3.523% at September 30, 2018 . The Credit Agreement requires Bio-Rad to comply with certain financial ratios and covenants, among other things. These ratios and covenants include a leverage ratio test and an interest coverage test, as well as restrictions on our ability to declare or pay dividends, incur debt, guarantee debt, enter into transactions with affiliates, merge or consolidate, sell assets, make investments and create liens. We were in compliance with all of these ratios and covenants as of September 30, 2018 |
6. Accumulated Other Comprehen
6. Accumulated Other Comprehensive Income 6. Accumulated Other Comprehensive Income (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | . ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income included in our Condensed Consolidated Balance Sheets consists of the following components (in millions): Foreign currency translation adjustments Foreign other post-employment benefits adjustments Net unrealized holding gains on available-for-sale investments Total accumulated other comprehensive income Balances as of January 1, 2018*: $ 77.4 $ (22.3 ) $ 4.5 $ 59.6 Other comprehensive (loss) income, before reclassifications (91.2 ) 0.5 (2.3 ) (93.0 ) Amounts reclassified from Accumulated other comprehensive income — 1.2 0.3 1.5 Income tax effects — (0.4 ) — (0.4 ) Other comprehensive (loss) income, net of income taxes (91.2 ) 1.3 (2.0 ) (91.9 ) Balances as of September 30, 2018: $ (13.8 ) $ (21.0 ) $ 2.5 $ (32.3 ) Foreign currency translation adjustments Foreign other post-employment benefits adjustments Net unrealized holding gains on available-for-sale investments Total accumulated other comprehensive income Balances as of January 1, 2017: $ 1.3 $ (18.6 ) $ 435.0 $ 417.7 Other comprehensive income (loss), before reclassifications 71.1 (1.9 ) 206.2 275.4 Amounts reclassified from Accumulated other comprehensive income — (0.5 ) (0.3 ) (0.8 ) Income tax effects — 0.6 (75.8 ) (75.2 ) Other comprehensive income (loss), net of income taxes 71.1 (1.8 ) 130.1 199.4 Balances as of September 30, 2017: $ 72.4 $ (20.4 ) $ 565.1 $ 617.1 *The beginning balance has been updated as a result of adopting ASU 2016-01. See Note 1, "Basis of Presentation and Use of Estimates" under "Recent Accounting Pronouncements Adopted." The amounts reclassified out of Accumulated other comprehensive income into the Condensed Consolidated Statements of Income, with presentation location, were as follows: Income before taxes impact (in millions): Three Months Ended Nine Months Ended September 30, September 30, Components of Comprehensive income 2018 2017 2018 2017 Location Amortization of foreign other post-employment benefit items $ (0.4 ) $ 0.5 $ (1.2 ) $ 0.5 Other (income) expense, net Net holding (losses) gains on equity securities and available-for-sale investments $ (0.1 ) $ 0.3 $ (0.3 ) $ 0.3 Other (income) expense, net |
7. Earnings Per Share
7. Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | . EARNINGS PER SHARE Basic earnings per share is computed by dividing net income attributable to Bio-Rad by the weighted average number of common shares outstanding for that period. Diluted earnings per share takes into account the effect of dilutive instruments, such as stock options and restricted stock, and uses the average share price for the period in determining the number of potential common shares that are to be added to the weighted average number of shares outstanding. Potential common shares are excluded from the diluted earnings per share calculation if the effect of including such securities would be anti-dilutive. The weighted average number of common shares outstanding used to calculate basic and diluted earnings per share, and the anti-dilutive shares that are excluded from the diluted earnings per share calculation are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Basic weighted average shares outstanding 29,863 29,660 29,822 29,618 Effect of potentially dilutive stock options and restricted stock awards 429 392 412 376 Diluted weighted average common shares 30,292 30,052 30,234 29,994 Anti-dilutive shares 64 12 35 22 |
8. Other Income and Expenses
8. Other Income and Expenses | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure | . OTHER INCOME AND EXPENSE, NET Other (income) expense, net includes the following components (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Interest and investment income $ (2.6 ) $ (1.4 ) $ (20.9 ) $ (14.5 ) Net realized loss (gain) on investments 0.1 (0.2 ) 0.3 (0.3 ) Gain on sale of land — — (4.1 ) — Gain on divestiture of product line — — (5.1 ) — Other (income) expense (0.1 ) 0.5 0.2 1.3 Other (income) expense, net $ (2.6 ) $ (1.1 ) $ (29.6 ) $ (13.5 ) |
9. Income Taxes
9. Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | . INCOME TAXES Our effective income tax rate was 23% and 28% for the three months ended September 30, 2018 and 2017 , respectively. Our effective income tax rate was 23% and 24% for the nine months ended September 30, 2018 and 2017 , respectively. The effective tax rate for the three and nine months ended September 30, 2018 was driven primarily by the $318.0 million and $1.4 billion gain on equity investments, respectively, taxable at the U.S. federal and state rate of approximately 22% . The effective tax rate for the three and nine months ended September 30, 2017 was lower than the U.S. federal statutory rate of 35% due to the impact of discrete items. In accordance with SAB 118, our accounting for the following elements of the Tax Act was incomplete at December 31, 2017. However, we were able to make reasonable estimates of certain effects and, therefore, recorded provisional estimates as follows: • Our deferred tax assets and liabilities were remeasured at the enacted tax rate that will apply when these temporary differences are expected to be realized or settled. • The Tax Act imposes a Transition Tax payable over eight years. The Transition Tax is assessed on the U.S. shareholders’ share of certain foreign corporations’ accumulated untaxed foreign earnings. Earnings in the form of cash and cash equivalents are taxed at a rate of 15.5% and all other earnings are taxed at a rate of 8.0%. In December 2017, we recorded a provisional income tax expense of $55 million for Transition Tax. • For certain other elements of the Tax Act, our accounting was incomplete, and we were not able to make reasonable estimates of those effects. For example, we did not make a determination as to our accounting policy with respect to the new Global Intangible Low-Taxed Income ("GILTI"). During the quarter ended September 30, 2018 , the Internal Revenue Service and U.S. Treasury issued proposed regulations related to Transition Tax and GILTI. While these regulations are not considered authoritative and are subject to change in the regulatory review process, they contain a number of rules that may impact us including but not limited to tax basis adjustment and anti-avoidance rules. We will continue our analysis of these provisional amounts including collecting necessary data during the measurement period, and record any adjustments to our provisional estimates in the fourth quarter. For the period ended September 30, 2018 , we did not record adjustments to our provisional amounts. As regulatory guidance and interpretations become available, further adjustments may be necessary in future periods. We assess our ability to realize our net deferred tax assets on a quarterly basis and establish a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized in the foreseeable future. Due to the weight of negative evidence, including our history of losses in certain jurisdictions, we believe that it is more-likely-than-not that certain foreign deferred tax assets will not be realized as of September 30, 2018 . Accordingly, we have maintained a valuation allowance on such deferred tax assets. Our income tax returns are routinely audited by U.S. federal, state and foreign tax authorities. We are currently under examination by many of these tax authorities. There are differing interpretations of tax laws and regulations, and as a result, significant disputes may arise with these tax authorities involving issues of the timing and amount of deductions and allocations of income among various tax jurisdictions. We evaluate our exposures associated with our tax filing positions on a quarterly basis. We record liabilities for unrecognized tax benefits related to uncertain tax positions. We do not believe any currently pending uncertain tax positions will have a material adverse effect on our condensed consolidated financial statements, although an adverse resolution of one or more of these uncertain tax positions in any period may have a material impact on the results of operations for that period. As of September 30, 2018 , based on the expected outcome of certain examinations or as a result of the expiration of statute of limitations for certain jurisdictions, we believe that within the next 12 months it is reasonably possible that our previously unrecognized tax benefits could decrease by up to $3 million |
10. Segment Information
10. Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | EGMENT INFORMATION Information regarding industry segments for the three months ended September 30, 2018 and 2017 is as follows (in millions): Life Science Clinical Diagnostics Other Operations Segment net sales 2018 $ 206.6 $ 334.0 $ 4.5 2017 $ 192.7 $ 338.0 $ 3.4 Segment net profit 2018 $ 10.2 $ 22.4 $ 0.1 2017 $ 5.3 $ 30.3 $ 0.2 Information regarding industry segments for the nine months ended September 30, 2018 and 2017 is as follows (in millions): Life Science Clinical Diagnostics Other Operations Segment net sales 2018 $ 622.2 $ 1,038.8 $ 11.6 2017 $ 546.5 $ 982.3 $ 10.1 Segment net profit (loss) 2018 $ 25.7 $ 86.8 $ 0.1 2017 $ (36.4 ) $ 90.4 $ 0.6 Prior year amounts have been adjusted (see Note 1 to the condensed consolidated financial statements in regard to ASU 2017-07 for pension and other postretirement benefits). Segment results are presented in the same manner as we present our operations internally to make operating decisions and assess performance. Net corporate operating, interest and other expense for segment results consists of receipts and expenditures that are not the primary responsibility of segment operating management and therefore are not allocated to the segments for performance assessment by our chief operating decision maker. Interest expense is charged to segments based on the carrying amount of inventory and receivables employed by that segment. For the three and nine months ended September 30, 2018 compared to the same periods in 2017 , our Life Science segment had increased sales and gross profit. In addition, the Life Science segment gross margin included a $10.0 million one-time expense associated with the RainDance acquisition in the first quarter of 2017. The following reconciles total segment profit to consolidated income before taxes (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Total segment profit $ 32.7 $ 35.8 $ 112.6 $ 54.6 Foreign currency exchange losses, net (0.7 ) (3.4 ) (1.9 ) (7.7 ) Net corporate operating, interest and other expense not allocated to segments (2.5 ) (2.9 ) (6.7 ) (8.5 ) Change in fair market value of equity securities 318.0 — 1,420.3 — Other income (expense), net 2.6 1.1 29.6 13.5 Consolidated income before income taxes $ 350.1 $ 30.6 $ 1,553.9 $ 51.9 |
11. Legal Proceedings
11. Legal Proceedings | 9 Months Ended |
Sep. 30, 2018 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Legal Proceedings. | 11. LEGAL PROCEEDINGS On May 27, 2015, our former general counsel, Sanford S. Wadler, filed a lawsuit in the U.S. District Court, Northern District of California, against us and four of our then current directors and one former director. The plaintiff’s suit alleged whistleblower retaliation in violation of the Sarbanes-Oxley Act and the Dodd-Frank Act for raising FCPA-related concerns. Mr. Wadler also alleged wrongful termination in violation of public policy, non-payment of wages and waiting time penalties in violation of the California Labor Code. The plaintiff sought back pay, compensatory damages for lost wages, earnings, retirement benefits and other employee benefits, compensation for mental pain and anguish and emotional distress, waiting time penalties, punitive damages, litigation costs (including attorneys’ fees) and reinstatement of employment. On July 28, 2015 we filed a motion to dismiss the plaintiff's complaint and specifically requested dismissal of the claims alleged against us under the Dodd-Frank Act and California Labor Code 1102.5 and the claims against the directors under the Sarbanes-Oxley Act and the Dodd-Frank Act. On October 23, 2015, the District Court granted our motion with respect to the alleged violations of the Sarbanes-Oxley Act against all the director defendants except Norman Schwartz with prejudice. The Court denied our motion to dismiss the claims under the Dodd-Frank Act as against both us and the director defendants. The trial commenced on January 17, 2017 and concluded on February 6, 2017. Mr. Wadler was awarded $10.92 million , plus prejudgment interest of $141,608 , post-judgment interest, and Mr. Wadler’s litigation costs, expert witness fees, and reasonable attorneys’ fees as approved by the Court. We have provided for the judgment, interest and Mr. Wadler's litigation costs. On June 6, 2017 we filed a notice of appeal with the United States Court of Appeals for the Ninth Circuit. Oral arguments are scheduled for November 14, 2018. |
12. Restructuring Costs (Notes)
12. Restructuring Costs (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring Costs [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | 12. RESTRUCTURING COSTS Restructuring Costs for European Reorganization In May, 2016, we announced that we would take certain actions in our Europe geographic region designed to better align expenses to our revenue and gross margin profile and position us for improved operating performance. These actions, aligned with the evolution of our organization structure and coordinated with the implementation of our global single instance enterprise resource planning ("ERP") platform, are expected to be incurred through 2019. From May 2016 to September 30, 2018 , total expenses were $13.0 million . The liability of $2.0 million as of September 30, 2018 was recorded in Accrued payroll and employee benefits in the Condensed Consolidated Balance Sheets. The following table summarizes the activity of our European reorganization restructuring reserves for severance (in millions): Life Science Clinical Diagnostics Total Balances as of January 1, 2018: $ 2.2 $ 4.1 $ 6.3 Cash payments (1.5 ) (2.7 ) (4.2 ) Foreign currency translation gains — (0.1 ) (0.1 ) Balances as of September 30, 2018: $ 0.7 $ 1.3 $ 2.0 Restructuring Costs for Termination of a Diagnostics Research and Development Project and a Facility Closure In December 2017, we announced the termination of a diagnostics research and development project in Europe. From December 2017 to September 30, 2018 , total expenses were $19.9 million . We recorded $(0.6) million and $(1.2) million of adjustments in restructuring charges related to severance and employee benefits, and exit costs for the three and nine months ended September 30, 2018 , respectively. The adjustments were due to a decrease in severance accrual as a result of a reduction in the number of employees being terminated than originally estimated, and a decrease in exit costs as a result of actual legal settlement being lower than the estimate. In June 2018, we announced the closure of a manufacturing facility in Germany. As a result, we recorded $1.3 million of expense in restructuring charges related to severance and employee benefits for the three months ended June 30, 2018. No additional expenses or adjustments were recorded in the three months ended September 30, 2018. Restructuring charges for the termination of a diagnostics research and development project and the facility closure are both included in our Clinical Diagnostics segment's results of operations. The respective amounts recorded for the three and nine months ended September 30, 2018 were reflected in Cost of goods sold of $0 million and $1.3 million , and in Research and development expense of $(0.5) million and $(1.2) million in the Condensed Consolidated Statements of Income. The liability of $7.2 million as of September 30, 2018 for the termination of a diagnostics research and development project and the facility closure was recorded in Accrued payroll and employee benefits in the Condensed Consolidated Balance Sheets. The following table summarizes the activity for the termination of the diagnostics research and development project and the facility closure restructuring reserves for severance and exit costs (in millions): Balances as of January 1, 2018: $ 14.1 Charged to expense 1.3 Adjustment to expense (1.2 ) Cash payments (6.7 ) Foreign currency translation gains (0.3 ) Balances as of September 30, 2018: $ 7.2 |
1. Basis of Presentation and U
1. Basis of Presentation and Use of Estimates Organization, Consolidation and Presentation of Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Adopted In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. ("ASU") 2018-03, "Technical Corrections and Improvements to Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities." ASU 2018-03 amends certain items in ASU 2016-01 (see below) such as equity securities without a readily determinable fair value. ASU 2018-03 clarifies that an entity that uses the measurement alternative for equity securities without readily determinable fair values can change its measurement approach to fair value and once made the election is irrevocable. If an entity measures equity securities without readily determinable fair values at fair value, it must record a cumulative-effect adjustment to Retained earnings as of the beginning of the fiscal year in which the guidance is adopted. We adopted ASU 2018-03 on January 1, 2018 and made an irrevocable election to account for our investment of the ordinary shares of Sartorius AG at fair value (see ASU 2016-01 below). In January 2016, the FASB issued ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities." Amendments under ASU 2016-01, among other items, require that all equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) will generally be measured at fair value through earnings. Changes in fair value for equity securities will no longer be reported in other comprehensive income. For equity investments without readily determinable fair values, the cost method is also eliminated. We adopted ASU 2016-01 on January 1, 2018 and record equity investments without readily determinable fair values at cost, less impairment, and plus or minus subsequent adjustments for observable price changes and were valued at $0.6 million as of September 30, 2018 . Changes in the basis of these equity investments are reported in current earnings. For equity securities that are affected by ASU 2016-01 and ASU 2018-03, see Note 2 to the condensed consolidated financial statements, which primarily consists of our investment in Sartorius AG. The impact of the adoption of ASU 2016-01 and ASU 2018-03 on January 1, 2018 was through a cumulative-effect adjustment of $864.5 million to Total stockholders' equity by increasing Retained earnings of $1,543.7 million and decreasing Accumulated other comprehensive income of $679.2 million , including increasing Deferred income taxes by $232.9 million and an increase in Other investments of $1,097.4 million in our Condensed Consolidated Balance Sheet. As a result of ASU 2016-01 and ASU 2018-03 for the three and nine months ended September 30, 2018 , we recorded $318.0 million and $1,420.3 million , respectively, for the Change in fair market value of equity securities in the Condensed Consolidated Statement of Income that resulted in a deferred tax expense for the three and nine months ended September 30, 2018 of $70.0 million and $313.7 million , respectively. In March 2017, the FASB issued ASU 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which changed how we present the net periodic benefit cost of our defined benefit pension and/or other postretirement plans. We adopted ASU 2017-07 on January 1, 2018 and applied the practical expedient to estimate amounts for comparative purposes utilizing the information disclosed in Note 12 to the consolidated financial statements in our Form 10-K for the year ended December 31, 2017. The interest costs are recorded in Interest expense, and the other costs are recorded in Other (income) expense, net in the Condensed Consolidated Statements of Income. For the third quarter of 2017 for interest costs and other costs, we reclassified $0.076 million , $0.538 million , and $0.036 million from Costs of goods sold (COGS), Selling, general and administrative expense (SG&A) and Research and development expense (R&D), respectively, to Interest expense of $0.275 million and Other (income) expense, net of $0.375 million . For the first nine months of 2017 for interest costs and other costs, we reclassified $0.228 million , $1.614 million , and $0.108 million from COGS, SG&A and R&D, respectively, to Interest expense of $0.825 million and Other (income) expense, net of $1.125 million . In November 2016, the FASB issued ASU 2016-18, "Restricted Cash," which required us to cease to present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. We adopted ASU 2016-18 on January 1, 2018 and updated the Condensed Consolidated Statements of Cash Flows to incorporate restricted cash included in Other current assets and Other assets of $1.1 million as of September 30, 2018 and $1.1 million as of September 30, 2017 . In October 2016, the FASB issued ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory," which required immediate recognition of income tax consequences of intercompany asset transfers, other than inventory transfers. We adopted ASU 2016-16 on January 1, 2018 on a modified retrospective basis through a cumulative-effect adjustment by decreasing Retained earnings by $17.6 million , and decreasing Prepaid taxes by $22.8 million and increasing Deferred tax assets by $5.2 million that are both recorded in Other assets in our Condensed Consolidated Balance Sheet. In August 2016, FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments" and adopted it on January 1, 2018, which did not have an impact to our statement of cash flows presentation. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ("ASC 606"), an updated standard on revenue recognition. The new standard provides enhancements to the quality and consistency of how revenue is reported under the principle that revenue should be recognized in an amount that reflects the consideration to which we expect to be entitled in exchange for the transfer of promised goods or services. We adopted ASC 606 as of January 1, 2018 using the cumulative effect transition method as more fully described above under the caption “Revenue Recognition.” Recent Accounting Pronouncements to be Adopted In August 2018, the FASB issued ASU 2018-15, "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." ASU 2018-15 amends the definition of a hosting arrangement and requires a customer in a hosting arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. The internal-use software guidance states that only qualifying costs incurred during the application development stage can be capitalized. ASU 2018-15 is effective for fiscal years ending after December 15, 2019. Early adoption is permitted and entities have the option to apply the guidance prospectively to all implementation costs incurred after the date of adoption or retrospectively. We are currently evaluating the effect ASU 2018-15 will have on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." ASU 2018-14 eliminates and adds certain disclosures for defined benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 using a retrospective approach, with early adoption permitted. We are currently evaluating the disclosures and the timing of adoption but do not expect ASU 2018-14 to have a material impact to our disclosures for defined benefit plans. In August 2018, the FASB issued ASU 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." ASU 2018-13 eliminates, adds and modifies certain disclosures for fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Early adoption is permitted in interim periods, including periods for which financial statements have not yet been issued. We do not expect ASU 2018-13 to have a material impact to our fair value disclosures and we currently do not plan to early adopt. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments." ASU 2016-13 will replace the current incurred loss approach with an expected loss model for instruments measured at amortized cost and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount under the current other-than-temporary impairment model. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018, and interim periods therein. We are currently evaluating the effect ASU 2016-13 will have on our consolidated financial statements. |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition On January 1, 2018, we adopted Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers," using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported under prior revenue guidance ASC 605, "Revenue Recognition." We recorded a net reduction to opening retained earnings of $0.1 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606 with the impact primarily related to a customer loyalty program in the United States for which the resulting non-cash consideration is treated as variable consideration under the new revenue recognition accounting standard. The impact to revenue as a result of applying ASC 606 as compared to ASC 605 for the nine months ended September 30, 2018 was not significant. We recognize revenue from operations through the sale of products, services, and rental of instruments. Revenue from contracts with customers is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally accounted for as distinct performance obligations. Revenue is recognized net of any taxes collected from customers (sales tax, value added tax, etc.), which are subsequently remitted to government authorities. Our contracts from customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment and may or may not impact the timing of revenue recognition. Revenue associated with equipment that requires factory installation is not recorded until installation is complete and customer acceptance, if required, has occurred. Certain equipment requires installation due to the fact that the instruments are being operated in a clinical/laboratory environment, and the installation services could result in modification of the equipment in order to ensure that the instruments are working according to specifications of the customer which are subject to validation tests upon completion of the installation. In these arrangements, which require factory installation, the delivery of the equipment and the installation are separate performance obligations. We will recognize the transaction price allocated to the equipment only upon customer acceptance, as the transfer of control has occurred in relation to the equipment at that point in time as the customer has the ability to direct the use of and obtain substantially all of the remaining benefits from the asset. The transaction price allocated to the installation services is also recognized upon completion of the services because without the completion of the installation services and related customer acceptance the customer cannot receive any of the benefits of the service. At the time revenue is recognized, a provision is recognized for estimated product returns as this right is considered variable consideration. Accordingly, when product revenues are recognized, the transaction price is reduced to the estimated amount that we expect to receive in exchange for transferring control for those products. Service revenues on extended warranty contracts are recognized ratably over the life of the service agreement as a stand-ready performance obligation. For arrangements that include a combination of products and services, transaction prices are allocated to performance obligations based on stand-alone selling prices. The method used to determine the stand-alone selling prices for service revenues is based on the observable prices when the services have been sold separately. In those instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simple and predictable methods of purchasing our products and services, not to either provide or receive financing to or from our customers. We record contract liabilities when cash payments are received or due in advance of our performance. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less and for contracts in which we recognize revenue at the amount to which we have the right to invoice for services performed. Our payment terms vary by the type and location of our customer, and the products and services offered. The term between invoicing and when payment is due is not significant. Reagent Rental Agreements Reagent rental agreements are a diagnostic industry sales method that provides use of an instrument and consumables (reagents) to a customer on a per test basis. These agreements may also include maintenance of the underlying instruments retained at customer locations as well as initial training. We concluded that the use of the instrument and related maintenance services (collectively known as “lease elements”) are not within the guidance of ASC 606 but rather ASC 840 Leases. Accordingly, we first allocate the transaction price between the lease elements and the non-lease elements based on relative standalone selling prices. The determination of the transaction price requires judgment and requires consideration of any fixed/minimum payments as well as estimates of variable consideration. After determining what portion of the transaction price should be allocated to the lease elements, any fixed consideration would be considered the minimum lease payment to be amortized straight line over the lease term and any variable consideration would be contingent rent to be recognized monthly as earned, which coincides with the transfer of control of the non-lease elements. For the portion of the transaction price allocated to the non-lease elements, which are principally the reagents, the related revenue will be recognized at a point in time when control transfers. Generally, the terms of the arrangements result in the transfer of control upon either (i) when the consumables are delivered or (ii) when the consumables are consumed by the customer. Revenue allocated to the lease elements of these reagent rental arrangements represent approximately 5% of total revenue and are included as part of the Net sales in our Condensed Consolidated Statements of Income. Contract costs: As a practical expedient, we expense as incurred costs to obtain contracts as the amortization period would have been one year or less. These costs, recorded within Selling, general and administrative expense, include our internal sales force compensation programs and certain partner sales incentive programs, as we have determined that annual compensation is commensurate with annual selling activities. Disaggregation of Revenue: The following table presents our revenues disaggregated by geographic region based primarily on the location of the use of the product or service (in millions, unaudited): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Europe $ 182.7 $ 190.3 $ 579.5 $ 539.3 Pacific Rim 110.3 105.7 341.7 307.9 United States 218.3 203.3 649.8 593.2 Other (primarily Canada and Latin America) 33.8 34.8 101.6 98.5 Total Net sales $ 545.1 $ 534.1 $ 1,672.6 $ 1,538.9 The disaggregation of our revenue by industry segment sources is presented in our Segment Information footnote (see Note 10). Deferred revenues represent mostly unrecognized fees billed or collected for extended service arrangements. Deferred revenues are recognized as (or when) we perform under the contract, which is generally recognized ratably over the term of the service contract. A majority of our deferred revenue balance is classified as current with an expected length of one year or less. The increase in our total deferred revenue balance from $36.7 million at December 31, 2017 to $39.3 million at September 30, 2018 is primarily driven by $30.8 million , net, of cash payments received or due in advance of satisfying our performance obligations, offset by $28.2 million of revenue recognized that were included in our deferred revenue balance as of December 31, 2017 . We warrant certain equipment against defects in design, materials and workmanship, generally for a period of one year. Upon revenue recognition of that equipment, we establish, as part of Cost of goods sold, a provision for the expected costs of such warranty based on historical experience, specific warranty terms and customer feedback. A review is performed on a quarterly basis to assess the adequacy of our warranty accrual. Components of the warranty accrual, included in Other current liabilities and Other long-term liabilities in the Condensed Consolidated Balance Sheets, were as follows (in millions): January 1, 2018 $ 18.7 Provision for warranty 25.8 Actual warranty costs (27.7 ) September 30, 2018 $ 16.8 |
1. Basis of Presentation and_2
1. Basis of Presentation and Use of Estimates Schedule of Revenue from External Customers Geographic (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | |
Revenue from External Customers by Geographic Areas [Table Text Block] | The following table presents our revenues disaggregated by geographic region based primarily on the location of the use of the product or service (in millions, unaudited): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Europe $ 182.7 $ 190.3 $ 579.5 $ 539.3 Pacific Rim 110.3 105.7 341.7 307.9 United States 218.3 203.3 649.8 593.2 Other (primarily Canada and Latin America) 33.8 34.8 101.6 98.5 Total Net sales $ 545.1 $ 534.1 $ 1,672.6 $ 1,538.9 |
Schedule of Product Warranty Liability [Table Text Block] | Components of the warranty accrual, included in Other current liabilities and Other long-term liabilities in the Condensed Consolidated Balance Sheets, were as follows (in millions): January 1, 2018 $ 18.7 Provision for warranty 25.8 Actual warranty costs (27.7 ) September 30, 2018 $ 16.8 |
2. Fair Value Measurements (Ta
2. Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Debt Securities, Available-for-sale [Table Text Block] | Available-for-sale investments consist of the following (in millions): September 30, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate debt securities $ 224.7 $ 0.1 $ (1.3 ) $ 223.5 Municipal obligations 15.7 — (0.1 ) 15.6 Asset-backed securities 61.1 — (0.3 ) 60.8 U.S. government sponsored agencies 77.6 — (1.5 ) 76.1 Foreign government obligations 3.3 — — 3.3 382.4 0.1 (3.2 ) 379.3 Long-term investments: Asset-backed securities 0.2 — — 0.2 0.2 — — 0.2 Total $ 382.6 $ 0.1 $ (3.2 ) $ 379.5 |
Schedule of financial assets and liabilities carried at fair value on a recurring basis | Financial assets and liabilities carried at fair value and measured on a recurring basis as of September 30, 2018 are classified in the hierarchy as follows (in millions): Level 1 Level 2 Level 3 Total Financial Assets Carried at Fair Value: Cash equivalents: Commercial paper $ — $ 70.7 $ — $ 70.7 Asset backed — 0.1 — 0.1 Time deposits 24.0 10.0 — 34.0 Money market funds 35.0 — — 35.0 Total cash equivalents (a) 59.0 80.8 — 139.8 Restricted investment 5.6 — — 5.6 Equity securities (b) 3,502.7 — — 3,502.7 Available-for-sale investments: Corporate debt securities — 223.5 — 223.5 U.S. government sponsored agencies — 76.1 — 76.1 Foreign government obligations — 3.3 — 3.3 Municipal obligations — 15.6 — 15.6 Asset-backed securities — 61.0 — 61.0 Total available-for-sale investments (c) — 379.5 — 379.5 Forward foreign exchange contracts (d) — 1.5 — 1.5 Total financial assets carried at fair value $ 3,567.3 $ 461.8 $ — $ 4,029.1 Financial Liabilities Carried at Fair Value: Forward foreign exchange contracts (e) $ — $ 1.5 $ — $ 1.5 Contingent consideration (f) — — 8.1 8.1 Total financial liabilities carried at fair value $ — $ 1.5 $ 8.1 $ 9.6 As of first quarter 2018, our equity securities are no longer reported as Available-for-sale investments due to the implementation of ASU 2016-01. Changes in fair value of equity securities are now reported on the Condensed Consolidated Statements of Income rather than Other Comprehensive Income (see Note 1). Financial assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2017 are classified in the hierarchy as follows (in millions): Level 1 Level 2 Level 3 Total Financial Assets Carried at Fair Value: Cash equivalents: Commercial paper $ — $ 36.0 $ — $ 36.0 Time deposits 43.7 10.0 — 53.7 U.S. government sponsored agencies — 11.2 — 11.2 Money market funds 3.4 — — 3.4 Total cash equivalents (a) 47.1 57.2 — 104.3 Restricted investment 5.6 — — 5.6 Available-for-sale investments: Corporate debt securities — 185.7 — 185.7 U.S. government sponsored agencies — 67.6 — 67.6 Foreign government obligations — 3.4 — 3.4 Brokered certificates of deposit — 0.7 — 0.7 Municipal obligations — 15.0 — 15.0 Marketable equity securities 973.4 — — 973.4 Asset-backed securities — 55.6 — 55.6 Total available-for-sale investments (c) 973.4 328.0 — 1,301.4 Forward foreign exchange contracts (d) — 0.5 — 0.5 Total financial assets carried at fair value $ 1,026.1 $ 385.7 $ — $ 1,411.8 Financial Liabilities Carried at Fair Value: Forward foreign exchange contracts (e) $ — $ 1.6 $ — $ 1.6 Contingent consideration (f) — — 16.7 16.7 Total financial liabilities carried at fair value $ — $ 1.6 $ 16.7 $ 18.3 (a) Cash equivalents are included in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (b) Equity securities are included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): September 30, 2018 Short-term investments $ 46.7 Other investments 3,456.0 Total $ 3,502.7 The unrealized gains on our equity securities still held as of September 30, 2018 are $1,420.3 million and are primarily due to our investment in Sartorius AG and is recorded in our Condensed Consolidated Statements of Income due to the adoption of ASU 2016-01 (see Note 1). (c) Available-for-sale investments are included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): September 30, 2018 December 31, 2017 Short-term investments $ 379.3 $ 371.2 Other investments 0.2 930.2 Total $ 379.5 $ 1,301.4 In accordance with our adoption of ASU 2016-01 January 1, 2018, our investment in Sartorius AG preferred shares, which was reported within marketable equity securities as Available-for-sale as of December 31, 2017 , is now reported as an Equity security as of September 30, 2018 (see Note 1 and footnote (b) above). (d) Forward foreign exchange contracts in an asset position are included in Other current assets in the Condensed Consolidated Balance Sheets. (e) Forward foreign exchange contracts in a liability position are included in Other current liabilities in the Condensed Consolidated Balance Sheets. (f) Contingent consideration liability is included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): September 30, 2018 December 31, 2017 Other current liabilities $ 3.1 $ 2.7 Other long-term liabilities 5.0 14.0 Total $ 8.1 $ 16.7 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table provides a reconciliation of the Level 3 analytical flow cytometer platform contingent consideration liabilities measured at estimated fair value (in millions): January 1, 2018 $ 16.7 Payment of sales milestone (2.1 ) Decrease in estimated fair value of contingent consideration included in Selling, general and administrative expense (6.5 ) September 30, 2018 $ 8.1 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | The following table provides quantitative information about Level 3 inputs for fair value measurement of our analytical flow cytometer platform contingent consideration liability as of September 30, 2018 . Significant increases or decreases in these inputs in isolation could result in a significantly lower or higher fair value measurement. Valuation Technique Unobservable Input Analytical flow cytometer platform Probability-weighted income approach Sales milestones: Discount rate 11.3 % Cost of debt 4.9 % |
Schedule of available-for-sale investments | Available-for-sale investments consist of the following (in millions): December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate debt securities $ 185.9 $ 0.3 $ (0.5 ) $ 185.7 Brokered certificates of deposit 0.7 — — 0.7 Municipal obligations 15.1 — (0.1 ) 15.0 Asset-backed securities 55.6 — (0.2 ) 55.4 U.S. government sponsored agencies 68.3 — (0.7 ) 67.6 Foreign government obligations 3.4 — — 3.4 Marketable equity securities 34.4 9.0 — 43.4 363.4 9.3 (1.5 ) 371.2 Long-term investments: Marketable equity securities 54.5 875.5 — 930.0 Asset-backed securities 0.2 — — 0.2 54.7 875.5 — 930.2 Total $ 418.1 $ 884.8 $ (1.5 ) $ 1,301.4 |
Summary of fair value of gross unrealized losses for investments with unrealized losses | The following is a summary of investments with gross unrealized losses and the associated fair value (in millions): September 30, 2018 December 31, 2017 Fair value of investments in a loss position 12 months or more $ 70.7 $ 43.9 Fair value of investments in a loss position less than 12 months $ 242.8 $ 168.7 Gross unrealized losses for investments in a loss position 12 months or more $ 1.5 $ 0.7 Gross unrealized losses for investments in a loss position less than 12 months $ 1.7 $ 0.8 |
Discussion of current derivative risk management | The following is a summary of our forward foreign exchange contracts (in millions): September 30, 2018 Contracts maturing in October through December 2018 to sell foreign currency: Notional value $ 52.4 Unrealized loss $ 0.2 Contracts maturing in October through December 2018 to purchase foreign currency: Notional value $ 288.0 Unrealized loss $ — |
Summary of amortized cost and estimated fair value of debt securities by contractual maturity date | The following is a summary of the amortized cost and estimated fair value of our debt securities at September 30, 2018 by contractual maturity date (in millions): Amortized Cost Estimated Fair Value Mature in less than one year $ 170.3 $ 170.0 Mature in one to five years 164.9 163.3 Mature in more than five years 47.4 46.2 Total $ 382.6 $ 379.5 |
Estimated fair value of financial instruments | The estimated fair value of the financial instruments discussed above and the level of the fair value hierarchy within which the fair value measurement is categorized are as follows (in millions): September 30, 2018 December 31, 2017 Carrying Amount Estimated Fair Value Fair Value Hierarchy Level Carrying Amount Estimated Fair Value Fair Value Hierarchy Level Other investments — — $ 91.8 $ 1,249.4 2 Total long-term debt, excluding leases and current maturities $ 423.6 $ 436.4 2 $ 423.1 $ 449.8 2 |
3. Intangible Assets, Goodwi_2
3. Intangible Assets, Goodwill and Other (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes to goodwill by segment | Changes to goodwill by segment were as follows (in millions): Life Science Clinical Diagnostics Total Balances as of January 1, 2018: Goodwill $ 234.7 $ 324.6 $ 559.3 Accumulated impairment losses (35.9 ) (17.3 ) (53.2 ) Goodwill, net 198.8 307.3 506.1 Divestiture — (1.4 ) (1.4 ) Currency fluctuations (0.2 ) (2.6 ) (2.8 ) Balances as of September 30, 2018: Goodwill 234.5 320.6 555.1 Accumulated impairment losses (35.9 ) (17.3 ) (53.2 ) Goodwill, net $ 198.6 $ 303.3 $ 501.9 In March 2018, we wrote off $1.4 million of goodwill from our Clinical Diagnostics segment as a result of a divestiture of a product line. |
Schedule of identifiable purchased intangible assets with definite lives | Information regarding our identifiable purchased intangible assets with definite lives is as follows (in millions): September 30, 2018 Average Remaining Life (years) Purchase Price Accumulated Amortization Net Carrying Amount Customer relationships/lists 1-7 $ 89.1 $ (67.0 ) $ 22.1 Know how 1-7 191.7 (159.7 ) 32.0 Developed product technology 2-11 131.3 (76.1 ) 55.2 Licenses 1-11 76.4 (39.7 ) 36.7 Tradenames 2-6 3.9 (3.2 ) 0.7 Covenants not to compete 1-8 7.9 (3.9 ) 4.0 Total definite-lived intangible assets $ 500.3 $ (349.6 ) $ 150.7 December 31, 2017 Average Remaining Life (years) Purchase Price Accumulated Amortization Net Carrying Amount Customer relationships/lists 1-7 $ 92.3 $ (64.4 ) $ 27.9 Know how 1-8 194.9 (157.9 ) 37.0 Developed product technology 1-12 133.3 (70.3 ) 63.0 Licenses 1-12 76.7 (36.0 ) 40.7 Tradenames 1-6 3.9 (3.0 ) 0.9 Covenants not to compete 1-8 7.9 (3.3 ) 4.6 Total definite-lived intangible assets $ 509.0 $ (334.9 ) $ 174.1 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Amortization expense related to purchased intangible assets is as follows (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Amortization expense $ 7.0 $ 7.8 $ 21.8 $ 23.4 |
4. Supplemental Cash Flow In_2
4. Supplemental Cash Flow Information Cash Flow, Supplemental Disclosure (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The reconciliation of net income to net cash provided by operating activities is as follows (in millions): Nine Months Ended September 30, 2018 September 30, 2017 Net income $ 1,194.1 $ 39.5 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 103.6 106.0 Share-based compensation 19.2 16.6 Losses on dispositions of securities 1.0 0.2 Changes in fair market value of equity securities (1,420.3 ) — Gain on divestiture of a product line (5.1 ) — Losses on dispositions of fixed assets 1.2 6.8 Gain on sale of land (4.1 ) — Changes in fair value of contingent consideration (6.5 ) (11.7 ) Decrease (increase) in accounts receivable 72.2 (22.4 ) Increase in inventories (26.3 ) (52.6 ) Increase in other current assets (8.9 ) (18.4 ) Decrease in accounts payable and other current liabilities (43.1 ) (14.5 ) Decrease in income taxes payable (22.1 ) (29.2 ) Increase in deferred income taxes 316.7 0.2 Net increase in other long-term assets/liabilities 8.9 14.3 Net cash provided by operating activities $ 180.5 $ 34.8 |
5. Long-Term Debt (Tables)
5. Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The principal components of long-term debt are as follows (in millions): September 30, December 31, 4.875% Senior Notes due 2020 principal amount $ 425.0 $ 425.0 Less unamortized discount and debt issuance costs (1.4 ) (1.9 ) 4.875% Senior Notes less unamortized discount and debt issuance costs 423.6 423.1 Capital leases and other debt 17.0 11.9 440.6 435.0 Less current maturities (1.8 ) (0.4 ) Long-term debt $ 438.8 $ 434.6 |
6. Accumulated Other Compreh_2
6. Accumulated Other Comprehensive Income 6. Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive income included in our Condensed Consolidated Balance Sheets consists of the following components (in millions): Foreign currency translation adjustments Foreign other post-employment benefits adjustments Net unrealized holding gains on available-for-sale investments Total accumulated other comprehensive income Balances as of January 1, 2018*: $ 77.4 $ (22.3 ) $ 4.5 $ 59.6 Other comprehensive (loss) income, before reclassifications (91.2 ) 0.5 (2.3 ) (93.0 ) Amounts reclassified from Accumulated other comprehensive income — 1.2 0.3 1.5 Income tax effects — (0.4 ) — (0.4 ) Other comprehensive (loss) income, net of income taxes (91.2 ) 1.3 (2.0 ) (91.9 ) Balances as of September 30, 2018: $ (13.8 ) $ (21.0 ) $ 2.5 $ (32.3 ) Foreign currency translation adjustments Foreign other post-employment benefits adjustments Net unrealized holding gains on available-for-sale investments Total accumulated other comprehensive income Balances as of January 1, 2017: $ 1.3 $ (18.6 ) $ 435.0 $ 417.7 Other comprehensive income (loss), before reclassifications 71.1 (1.9 ) 206.2 275.4 Amounts reclassified from Accumulated other comprehensive income — (0.5 ) (0.3 ) (0.8 ) Income tax effects — 0.6 (75.8 ) (75.2 ) Other comprehensive income (loss), net of income taxes 71.1 (1.8 ) 130.1 199.4 Balances as of September 30, 2017: $ 72.4 $ (20.4 ) $ 565.1 $ 617.1 |
Reclassification Out of Accumulated Other Comprehensive Income [Table Text Block] | The amounts reclassified out of Accumulated other comprehensive income into the Condensed Consolidated Statements of Income, with presentation location, were as follows: Income before taxes impact (in millions): Three Months Ended Nine Months Ended September 30, September 30, Components of Comprehensive income 2018 2017 2018 2017 Location Amortization of foreign other post-employment benefit items $ (0.4 ) $ 0.5 $ (1.2 ) $ 0.5 Other (income) expense, net Net holding (losses) gains on equity securities and available-for-sale investments $ (0.1 ) $ 0.3 $ (0.3 ) $ 0.3 Other (income) expense, net |
7. Earnings Per Share (Tables)
7. Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of weighted-average common shares outstanding used to calculate basic and diluted earnings per shares and the anti-dilutive shares | The weighted average number of common shares outstanding used to calculate basic and diluted earnings per share, and the anti-dilutive shares that are excluded from the diluted earnings per share calculation are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Basic weighted average shares outstanding 29,863 29,660 29,822 29,618 Effect of potentially dilutive stock options and restricted stock awards 429 392 412 376 Diluted weighted average common shares 30,292 30,052 30,234 29,994 Anti-dilutive shares 64 12 35 22 |
8. Other Income and Expenses (
8. Other Income and Expenses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of other income (expense), net | Other (income) expense, net includes the following components (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Interest and investment income $ (2.6 ) $ (1.4 ) $ (20.9 ) $ (14.5 ) Net realized loss (gain) on investments 0.1 (0.2 ) 0.3 (0.3 ) Gain on sale of land — — (4.1 ) — Gain on divestiture of product line — — (5.1 ) — Other (income) expense (0.1 ) 0.5 0.2 1.3 Other (income) expense, net $ (2.6 ) $ (1.1 ) $ (29.6 ) $ (13.5 ) |
10. Segment Information (Table
10. Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Net sales | Information regarding industry segments for the three months ended September 30, 2018 and 2017 is as follows (in millions): Life Science Clinical Diagnostics Other Operations Segment net sales 2018 $ 206.6 $ 334.0 $ 4.5 2017 $ 192.7 $ 338.0 $ 3.4 Segment net profit 2018 $ 10.2 $ 22.4 $ 0.1 2017 $ 5.3 $ 30.3 $ 0.2 Information regarding industry segments for the nine months ended September 30, 2018 and 2017 is as follows (in millions): Life Science Clinical Diagnostics Other Operations Segment net sales 2018 $ 622.2 $ 1,038.8 $ 11.6 2017 $ 546.5 $ 982.3 $ 10.1 Segment net profit (loss) 2018 $ 25.7 $ 86.8 $ 0.1 2017 $ (36.4 ) $ 90.4 $ 0.6 |
Reconciliation of segment profit to consolidated income before taxes | The following reconciles total segment profit to consolidated income before taxes (in millions): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Total segment profit $ 32.7 $ 35.8 $ 112.6 $ 54.6 Foreign currency exchange losses, net (0.7 ) (3.4 ) (1.9 ) (7.7 ) Net corporate operating, interest and other expense not allocated to segments (2.5 ) (2.9 ) (6.7 ) (8.5 ) Change in fair market value of equity securities 318.0 — 1,420.3 — Other income (expense), net 2.6 1.1 29.6 13.5 Consolidated income before income taxes $ 350.1 $ 30.6 $ 1,553.9 $ 51.9 |
12. Restructuring Costs (Tables
12. Restructuring Costs (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The following table summarizes the activity of our European reorganization restructuring reserves for severance (in millions): Life Science Clinical Diagnostics Total Balances as of January 1, 2018: $ 2.2 $ 4.1 $ 6.3 Cash payments (1.5 ) (2.7 ) (4.2 ) Foreign currency translation gains — (0.1 ) (0.1 ) Balances as of September 30, 2018: $ 0.7 $ 1.3 $ 2.0 Balances as of January 1, 2018: $ 14.1 Charged to expense 1.3 Adjustment to expense (1.2 ) Cash payments (6.7 ) Foreign currency translation gains (0.3 ) Balances as of September 30, 2018: $ 7.2 |
1. Basis of Presentation and_3
1. Basis of Presentation and Use of Estimates Organization, Consolidation and Presentation of Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net sales | $ 545,138 | $ 534,141 | $ 1,672,568 | $ 1,538,858 | ||
Cost of goods sold | 258,422 | 235,133 | 781,982 | 696,412 | ||
Deferred Revenue | 39,300 | 39,300 | $ 36,700 | |||
Deferred Revenue, Period Increase (Decrease) | 30,800 | |||||
Revenue, Net | 28,200 | |||||
Retained earnings | 4,550,601 | 4,550,601 | 1,830,439 | |||
Accumulated other comprehensive income | (32,299) | (32,299) | 738,794 | |||
Total stockholders' equity | 4,900,481 | $ 4,900,481 | 2,930,250 | |||
Revenue Allocation Percent To Lease Elements | 5.00% | |||||
Additional paid-in-capital | 382,393 | $ 382,393 | $ 361,231 | |||
Unrealized Gain on Securities | 318,007 | 0 | 1,420,339 | 0 | ||
Selling, general and administrative expense | 201,196 | 198,169 | 620,751 | 605,060 | ||
Research and Development Expense | 49,245 | 62,077 | 146,122 | 174,116 | ||
Interest expense | 6,064 | 5,872 | 17,823 | 17,233 | ||
Prepaid Taxes | $ (22,800) | |||||
Deferred Tax Assets, Net, Noncurrent | 5,200 | |||||
Accounting Standards Update 2014-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | 100 | |||||
Accounting Standards Update 2016-01 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other Investments | 600 | 600 | ||||
Accumulated other comprehensive income | 679,200 | |||||
Adjustments for New Accounting Pronouncement [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Investments | 1,097,400 | |||||
Deferred Income Tax Expense (Benefit) | 70,000 | 313,700 | ||||
Cost of goods sold | (76) | (228) | ||||
Retained earnings | 1,543,700 | |||||
Deferred Income Tax Assets, Net | 232,900 | |||||
Total stockholders' equity | 864,500 | |||||
Unrealized Gain on Securities | 318,000 | 1,420,300 | ||||
Selling, general and administrative expense | (538) | (1,614) | ||||
Research and Development Expense | (36) | (108) | ||||
Interest expense | 275 | 825 | ||||
Other Nonoperating Income (Expense) | 375 | 1,125 | ||||
Restricted Cash | 1,100 | 1,100 | 1,100 | 1,100 | ||
Accounting Standards Update 2016-16 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | $ (17,600) | |||||
Europe [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net sales | 182,700 | 190,300 | 579,500 | 539,300 | ||
Asia Pacific [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net sales | 110,300 | 105,700 | 341,700 | 307,900 | ||
UNITED STATES | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net sales | 218,300 | 203,300 | 649,800 | 593,200 | ||
Americas [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net sales | $ 33,800 | $ 34,800 | $ 101,600 | $ 98,500 |
1. Basis of Presentation and_4
1. Basis of Presentation and Use of Estimates Warranty Rollforward (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Accounting Policies [Abstract] | |
Warranty accrual, beginning of period | $ 18.7 |
Provision for warranty | 25.8 |
Actual warranty costs | (27.7) |
Warranty accrual, end of period | $ 16.8 |
2. Fair Value Measurements Fai
2. Fair Value Measurements Fair Value Level Table (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unrealized Gain on Securities | $ 1,420.3 | ||
Debt Securities, Available-for-sale | 379.5 | ||
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted Investments, at Fair Value | 5.6 | $ 5.6 | |
Available-for-sale Securities | [1] | 1,301.4 | |
Equity Securities | [1] | 3,502.7 | |
Debt Securities, Available-for-sale | [1] | 379.5 | |
Forward Foreign Exchange Contracts, Asset, Fair Value Disclosure | [2] | 1.5 | 0.5 |
Assets, Fair Value Disclosure | 4,029.1 | 1,411.8 | |
Forward Foreign Exchange Contracts, Liability, Fair Value Disclosure | [3] | 1.5 | 1.6 |
Business Combination, Contingent Consideration, Liability | [4] | 8.1 | 16.7 |
Liabilities, Fair Value Disclosure | 9.6 | 18.3 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted Investments, at Fair Value | 5.6 | 5.6 | |
Available-for-sale Securities | [1] | 973.4 | |
Equity Securities | [1] | 3,502.7 | |
Debt Securities, Available-for-sale | [1] | 0 | |
Forward Foreign Exchange Contracts, Asset, Fair Value Disclosure | [2] | 0 | 0 |
Assets, Fair Value Disclosure | 3,567.3 | 1,026.1 | |
Forward Foreign Exchange Contracts, Liability, Fair Value Disclosure | [3] | 0 | 0 |
Business Combination, Contingent Consideration, Liability | [4] | 0 | 0 |
Liabilities, Fair Value Disclosure | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted Investments, at Fair Value | 0 | 0 | |
Available-for-sale Securities | [1] | 328 | |
Equity Securities | [1] | 0 | |
Debt Securities, Available-for-sale | [1] | 379.5 | |
Forward Foreign Exchange Contracts, Asset, Fair Value Disclosure | [2] | 1.5 | 0.5 |
Assets, Fair Value Disclosure | 461.8 | 385.7 | |
Forward Foreign Exchange Contracts, Liability, Fair Value Disclosure | [3] | 1.5 | 1.6 |
Business Combination, Contingent Consideration, Liability | [4] | 0 | 0 |
Liabilities, Fair Value Disclosure | 1.5 | 1.6 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Restricted Investments, at Fair Value | 0 | 0 | |
Available-for-sale Securities | [1] | 0 | |
Equity Securities | [1] | 0 | |
Debt Securities, Available-for-sale | [1] | 0 | |
Forward Foreign Exchange Contracts, Asset, Fair Value Disclosure | [2] | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 | |
Forward Foreign Exchange Contracts, Liability, Fair Value Disclosure | [3] | 0 | 0 |
Business Combination, Contingent Consideration, Liability | [4] | 8.1 | 16.7 |
Liabilities, Fair Value Disclosure | 8.1 | 16.7 | |
US Government Sponsored Agencies [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 11.2 | |
US Government Sponsored Agencies [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | |
US Government Sponsored Agencies [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 11.2 | |
US Government Sponsored Agencies [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0.1 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0.1 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | |
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 70.7 | 36 |
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | 0 |
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 70.7 | 36 |
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | 0 |
Time Deposits [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 34 | 53.7 |
Time Deposits [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 24 | 43.7 |
Time Deposits [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 10 | 10 |
Time Deposits [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | 0 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 35 | 3.4 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 35 | 3.4 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | 0 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | 0 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 139.8 | 104.3 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 59 | 47.1 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 80.8 | 57.2 |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | 0 |
Brokered certificates of deposit [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0.7 | |
Brokered certificates of deposit [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | |
Brokered certificates of deposit [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0.7 | |
Brokered certificates of deposit [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | |
Marketable Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 973.4 | |
Marketable Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 973.4 | |
Marketable Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | |
Marketable Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | |
Municipal Obligations (Member) | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 15 | |
Debt Securities, Available-for-sale | [1] | 15.6 | |
Municipal Obligations (Member) | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | |
Debt Securities, Available-for-sale | [1] | 0 | |
Municipal Obligations (Member) | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 15 | |
Debt Securities, Available-for-sale | [1] | 15.6 | |
Municipal Obligations (Member) | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | |
Debt Securities, Available-for-sale | [1] | 0 | |
Foreign Government Obligations [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 3.4 | |
Debt Securities, Available-for-sale | [1] | 3.3 | |
Foreign Government Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | |
Debt Securities, Available-for-sale | [1] | 0 | |
Foreign Government Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 3.4 | |
Debt Securities, Available-for-sale | [1] | 3.3 | |
Foreign Government Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | |
Debt Securities, Available-for-sale | [1] | 0 | |
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 185.7 | |
Debt Securities, Available-for-sale | [1] | 223.5 | |
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | |
Debt Securities, Available-for-sale | [1] | 0 | |
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 185.7 | |
Debt Securities, Available-for-sale | [1] | 223.5 | |
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | |
Debt Securities, Available-for-sale | [1] | 0 | |
US Government Sponsored Agencies [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 67.6 | |
Debt Securities, Available-for-sale | [1] | 76.1 | |
US Government Sponsored Agencies [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | |
Debt Securities, Available-for-sale | [1] | 0 | |
US Government Sponsored Agencies [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 67.6 | |
Debt Securities, Available-for-sale | [1] | 76.1 | |
US Government Sponsored Agencies [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | |
Debt Securities, Available-for-sale | [1] | 0 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 55.6 | |
Debt Securities, Available-for-sale | [1] | 61 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | |
Debt Securities, Available-for-sale | [1] | 0 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 55.6 | |
Debt Securities, Available-for-sale | [1] | 61 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | [1] | 0 | |
Debt Securities, Available-for-sale | [1] | 0 | |
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Combination, Contingent Consideration, Liability | 3.1 | 2.7 | |
Other Noncurrent Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Combination, Contingent Consideration, Liability | 5 | 14 | |
Short-term Investments [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 371.2 | ||
Equity Securities | 46.7 | ||
Debt Securities, Available-for-sale | 379.3 | ||
Short-term Investments [Member] | Brokered certificates of deposit [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 0.7 | ||
Short-term Investments [Member] | Marketable Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 43.4 | ||
Short-term Investments [Member] | Municipal Obligations (Member) | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 15 | ||
Debt Securities, Available-for-sale | 15.6 | ||
Short-term Investments [Member] | Foreign Government Obligations [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 3.4 | ||
Debt Securities, Available-for-sale | 3.3 | ||
Short-term Investments [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 185.7 | ||
Debt Securities, Available-for-sale | 223.5 | ||
Short-term Investments [Member] | US Government Sponsored Agencies [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 67.6 | ||
Debt Securities, Available-for-sale | 76.1 | ||
Short-term Investments [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | 55.4 | ||
Debt Securities, Available-for-sale | 60.8 | ||
Other Investments [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities | $ 930.2 | ||
Equity Securities | 3,456 | ||
Debt Securities, Available-for-sale | 0.2 | ||
Analytical Flow Cytometer Platform [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Combination, Contingent Consideration, Liability | 8.1 | ||
Sales milestone minimum amount [Member] | Analytical Flow Cytometer Platform [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 0 | ||
[1] | Available-for-sale investments are included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): September 30, 2018 December 31, 2017 Short-term investments $ 379.3 $ 371.2 Other investments 0.2 930.2 Total $ 379.5 $ 1,301.4 | ||
[2] | Forward foreign exchange contracts in an asset position are included in Other current assets in the Condensed Consolidated Balance Sheets. | ||
[3] | Forward foreign exchange contracts in a liability position are included in Other current liabilities in the Condensed Consolidated Balance Sheets. | ||
[4] | Contingent consideration liability is included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): September 30, 2018 December 31, 2017 Other current liabilities $ 3.1 $ 2.7 Other long-term liabilities 5.0 14.0 Total $ 8.1 $ 16.7 | ||
[5] | Cash equivalents are included in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. |
2. Fair Value Measurements 2.
2. Fair Value Measurements 2. Contingent Consideration (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 22 Months Ended | |||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 8.1 | $ 8.1 | $ 8.1 | $ 16.7 | ||
Analytical Flow Cytometer Platform [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent consideration milestone payments | (0.8) | $ (1.3) | (2.1) | |||
Business Combination, Contingent Consideration, Liability | $ 8.1 | 8.1 | 8.1 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | $ (6.5) | $ (12.5) | ||||
Sales milestone percentage of annual invoices [Member] | Analytical Flow Cytometer Platform [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business Acquisition, Contingent Consideration, Potential Percentage Payout | 39.00% | 39.00% | 39.00% | |||
Market Price of Risk [Member] | Analytical Flow Cytometer Platform [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Discount Rate | 11.30% | |||||
Projected Volatility of Growth Rate [Member] | Analytical Flow Cytometer Platform [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Discount Rate | 4.90% | |||||
Sales milestone percentage of annual invoices low [Member] | Analytical Flow Cytometer Platform [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business Acquisition, Contingent Consideration, Potential Percentage Payout | 20.00% | 20.00% | 20.00% | |||
Sales milestone minimum amount [Member] | Analytical Flow Cytometer Platform [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 0 | $ 0 | $ 0 | |||
Fair Value, Measurements, Recurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business Combination, Contingent Consideration, Liability | [1] | 8.1 | 8.1 | 8.1 | 16.7 | |
Other Noncurrent Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business Combination, Contingent Consideration, Liability | 5 | 5 | 5 | 14 | ||
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business Combination, Contingent Consideration, Liability | $ 3.1 | $ 3.1 | $ 3.1 | $ 2.7 | ||
[1] | Contingent consideration liability is included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): September 30, 2018 December 31, 2017 Other current liabilities $ 3.1 $ 2.7 Other long-term liabilities 5.0 14.0 Total $ 8.1 $ 16.7 |
2. Foreign Exchange Forward Co
2. Foreign Exchange Forward Contracts (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Forward foreign exchange contract to sell foreign currency [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional value | $ 52.4 |
Gain (Loss) on Foreign Currency Derivative Instruments not Designated as Hedging Instruments | (0.2) |
Forward foreign exchange contract to purchase foreign currency [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional value | 288 |
Gain (Loss) on Foreign Currency Derivative Instruments not Designated as Hedging Instruments | $ 0 |
2. Available-for-Sale Investme
2. Available-for-Sale Investments (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 382.6 | ||
Estimated Fair Value | 379.5 | ||
Fair Value, Measurements, Recurring [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | [1] | $ 1,301.4 | |
Amortized Cost | 382.6 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.1 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (3.2) | ||
Estimated Fair Value | [1] | 379.5 | |
Available-for-sale Securities, Amortized Cost Basis | 418.1 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 884.8 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1.5 | ||
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | [1] | 185.7 | |
Estimated Fair Value | [1] | 223.5 | |
Fair Value, Measurements, Recurring [Member] | Brokered certificates of deposit [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | [1] | 0.7 | |
Fair Value, Measurements, Recurring [Member] | Municipal obligations [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | [1] | 15 | |
Estimated Fair Value | [1] | 15.6 | |
Fair Value, Measurements, Recurring [Member] | Asset-backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | [1] | 55.6 | |
Estimated Fair Value | [1] | 61 | |
Fair Value, Measurements, Recurring [Member] | Marketable Equity Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | [1] | 973.4 | |
Fair Value, Measurements, Recurring [Member] | US Government Sponsored Agencies [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | [1] | 67.6 | |
Estimated Fair Value | [1] | 76.1 | |
Fair Value, Measurements, Recurring [Member] | Foreign Government Obligations [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | [1] | 3.4 | |
Estimated Fair Value | [1] | 3.3 | |
Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member] | Asset-backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | 0.2 | ||
Amortized Cost | 0.2 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Estimated Fair Value | 0.2 | ||
Available-for-sale Securities, Amortized Cost Basis | 0.2 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member] | Marketable Equity Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | 930 | ||
Available-for-sale Securities, Amortized Cost Basis | 54.5 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 875.5 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member] | Available-for-sale Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | 930.2 | ||
Available-for-sale Securities, Amortized Cost Basis | 54.7 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 875.5 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member] | Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 0.2 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Estimated Fair Value | 0.2 | ||
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | 371.2 | ||
Estimated Fair Value | 379.3 | ||
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Corporate Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | 185.7 | ||
Amortized Cost | 224.7 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.1 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (1.3) | ||
Estimated Fair Value | 223.5 | ||
Available-for-sale Securities, Amortized Cost Basis | 185.9 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.3 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0.5 | ||
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Brokered certificates of deposit [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | 0.7 | ||
Available-for-sale Securities, Amortized Cost Basis | 0.7 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Municipal obligations [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | 15 | ||
Amortized Cost | 15.7 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (0.1) | ||
Estimated Fair Value | 15.6 | ||
Available-for-sale Securities, Amortized Cost Basis | 15.1 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0.1 | ||
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Asset-backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | 55.4 | ||
Amortized Cost | 61.1 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (0.3) | ||
Estimated Fair Value | 60.8 | ||
Available-for-sale Securities, Amortized Cost Basis | 55.6 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0.2 | ||
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Marketable Equity Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | 43.4 | ||
Available-for-sale Securities, Amortized Cost Basis | 34.4 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 9 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Available-for-sale Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | 371.2 | ||
Available-for-sale Securities, Amortized Cost Basis | 363.4 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 9.3 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1.5 | ||
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | US Government Sponsored Agencies [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | 67.6 | ||
Amortized Cost | 77.6 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (1.5) | ||
Estimated Fair Value | 76.1 | ||
Available-for-sale Securities, Amortized Cost Basis | 68.3 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0.7 | ||
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Foreign Government Obligations [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | 3.4 | ||
Amortized Cost | 3.3 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Estimated Fair Value | 3.3 | ||
Available-for-sale Securities, Amortized Cost Basis | 3.4 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 382.4 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.1 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (3.2) | ||
Estimated Fair Value | 379.3 | ||
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale Securities | $ 930.2 | ||
Estimated Fair Value | $ 0.2 | ||
[1] | Available-for-sale investments are included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): September 30, 2018 December 31, 2017 Short-term investments $ 379.3 $ 371.2 Other investments 0.2 930.2 Total $ 379.5 $ 1,301.4 |
2. Amortized Cost and Fair Val
2. Amortized Cost and Fair Value of Debt Securities (Details) $ in Millions | Sep. 30, 2018USD ($) |
Fair Value Disclosures [Abstract] | |
Mature in less than one year | $ 170.3 |
Mature in one to five years | 164.9 |
Mature in more than five years | 47.4 |
Total Amortized Cost | 382.6 |
Mature in less than one year | 170 |
Mature in one to five years | 163.3 |
Mature in more than five years | 46.2 |
Estimated Fair Value | $ 379.5 |
2. Fair Value and Gross Unreal
2. Fair Value and Gross Unrealized Losses with Unrealized Losses (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Price Change Debt Security | 5.00% | |
Tolerable variance Level 2 debt security pricing | 1.00% | |
Fair Value of Investments with Gross Unrealized Losses in loss position 12 months or more | $ 70.7 | $ 43.9 |
Percentage Owned Sartorius voting shares | 37.00% | |
Fair Value of Investments with Gross Unrealized Losses in loss position less than 12 months | $ 242.8 | 168.7 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1.5 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0.7 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 1.7 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 0.8 |
2. Fair Value Financial Instru
2. Fair Value Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other Investments | $ 91.8 | |
Total long-term debt, excluding capital leases and current maturities | $ 423.6 | 423.1 |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other Investments | 1,249.4 | |
Total long-term debt, excluding capital leases and current maturities | $ 436.4 | $ 449.8 |
3. Intangible Assets, Goodwi_3
3. Intangible Assets, Goodwill and Other (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||
Goodwill | $ 555,100 | $ 559,300 | |
Accumulated impairment loss | (53,200) | (53,200) | |
Goodwill, net | 501,903 | 506,069 | |
Goodwill, Written off Related to Sale of Business Unit | (1,400) | ||
Currency fluctuations | (2,800) | ||
Life Science [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 234,500 | 234,700 | |
Accumulated impairment loss | (35,900) | (35,900) | |
Goodwill, net | 198,600 | 198,800 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | ||
Currency fluctuations | (200) | ||
Clinical Diagnostics [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 320,600 | 324,600 | |
Accumulated impairment loss | (17,300) | (17,300) | |
Goodwill, net | 303,300 | $ 307,300 | |
Goodwill, Written off Related to Sale of Business Unit | $ (1,400) | (1,400) | |
Currency fluctuations | $ (2,600) |
3. Intangible Assets, Goodwi_4
3. Intangible Assets, Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Purchase Price | $ 500.3 | $ 500.3 | $ 509 | ||
Accumulated Amortization | (349.6) | (349.6) | (334.9) | ||
Net Carrying Amount | 150.7 | 150.7 | 174.1 | ||
Amortization [Abstract] | |||||
Amortization expense | 7 | $ 7.8 | 21.8 | $ 23.4 | |
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Purchase Price | 89.1 | 89.1 | 92.3 | ||
Accumulated Amortization | (67) | (67) | (64.4) | ||
Net Carrying Amount | 22.1 | 22.1 | 27.9 | ||
Know how [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Purchase Price | 191.7 | 191.7 | 194.9 | ||
Accumulated Amortization | (159.7) | (159.7) | (157.9) | ||
Net Carrying Amount | 32 | 32 | 37 | ||
Developed Technology Rights [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Purchase Price | 131.3 | 131.3 | 133.3 | ||
Accumulated Amortization | (76.1) | (76.1) | (70.3) | ||
Net Carrying Amount | 55.2 | 55.2 | 63 | ||
Licensing Agreements [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Purchase Price | 76.4 | 76.4 | 76.7 | ||
Accumulated Amortization | (39.7) | (39.7) | (36) | ||
Net Carrying Amount | 36.7 | 36.7 | 40.7 | ||
Trade Names [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Purchase Price | 3.9 | 3.9 | 3.9 | ||
Accumulated Amortization | (3.2) | (3.2) | (3) | ||
Net Carrying Amount | 0.7 | 0.7 | 0.9 | ||
Noncompete Agreements [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Purchase Price | 7.9 | 7.9 | 7.9 | ||
Accumulated Amortization | (3.9) | (3.9) | (3.3) | ||
Net Carrying Amount | $ 4 | $ 4 | $ 4.6 | ||
Minimum [Member] | Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Average Remaining Life (years) | 1 year | 1 year | |||
Minimum [Member] | Know how [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Average Remaining Life (years) | 1 year | 1 year | |||
Minimum [Member] | Developed Technology Rights [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Average Remaining Life (years) | 2 years | 1 year | |||
Minimum [Member] | Licensing Agreements [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Average Remaining Life (years) | 1 year | 1 year | |||
Minimum [Member] | Trade Names [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Average Remaining Life (years) | 2 years | 1 year | |||
Minimum [Member] | Noncompete Agreements [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Average Remaining Life (years) | 1 year | 1 year | |||
Minimum [Member] | Other Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Average Remaining Life (years) | 0 years | 0 years | |||
Maximum [Member] | Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Average Remaining Life (years) | 7 years | 7 years | |||
Maximum [Member] | Know how [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Average Remaining Life (years) | 7 years | 8 years | |||
Maximum [Member] | Developed Technology Rights [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Average Remaining Life (years) | 11 years | 12 years | |||
Maximum [Member] | Licensing Agreements [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Average Remaining Life (years) | 11 years | 12 years | |||
Maximum [Member] | Trade Names [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Average Remaining Life (years) | 6 years | 6 years | |||
Maximum [Member] | Noncompete Agreements [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Average Remaining Life (years) | 8 years | 8 years | |||
Maximum [Member] | Other Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Average Remaining Life (years) | 0 years | 0 years |
4. Supplemental Cash Flow In_3
4. Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||||
Net Income (Loss) Attributable to Parent | $ 269,326 | $ 22,067 | $ 1,194,143 | $ 39,515 |
Depreciation and Amortization | 103,600 | 106,000 | ||
Share-based Compensation | 19,200 | 16,600 | ||
Loss on Sale of Securities, Net | 1,000 | 200 | ||
Changes in fair market value of equity securities | (1,420,300) | 0 | ||
Gain on divestiture of a product line | (5,100) | 0 | ||
Loss on Disposition of Property Plant Equipment | 1,200 | 6,800 | ||
Gain on sale of land | $ 0 | $ 0 | (4,100) | 0 |
Changes in fair value of contingent consideration | (6,500) | (11,700) | ||
Decrease (increase) in accounts receivable | 72,200 | (22,400) | ||
Increase in inventories | (26,300) | (52,600) | ||
Increase in other current assets | (8,900) | (18,400) | ||
Decrease in accounts payable and other current liabilities | (43,100) | (14,500) | ||
Decrease in Income Taxes Payable | (22,100) | (29,200) | ||
Increase in Deferred Income Taxes | 316,700 | 200 | ||
Net increase in other long-term assets/liabilities | 8,900 | 14,300 | ||
Net cash provided by operating activities | $ 180,485 | $ 34,772 |
5. Long-Term Debt (Details)
5. Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2010 | |
Debt Instrument [Line Items] | |||
Debt and Capital Lease Obligations | $ 440,600 | $ 435,000 | |
Less Current Maturities | (1,800) | (400) | |
Long-term debt, net of current maturities | 438,803 | 434,581 | |
Unsecured Debt [Member] | Senior Notes 4.875% due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Debt | 425,000 | 425,000 | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 1,400 | 1,900 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | ||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||
Long-term debt | $ 423,600 | 423,100 | $ 422,600 |
Debt Instrument, Interest Rate, Effective Percentage | 4.946% | ||
Face amount of debt sold | $ 425,000 | ||
Capital Lease Obligations [Member] | Capital Leases and Other Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 17,000 | $ 11,900 | |
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | 200,000 | ||
Outstanding borrowings | $ 0 | ||
Line of Credit Facility, Interest Rate at Period End | 3.523% | ||
Standby Letters of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit maximum borrowing capacity | $ 500 |
6. Accumulated Other Compreh_3
6. Accumulated Other Comprehensive Income 6. Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, Accumulated other comprehensive income | $ 738,794 | |||
Total other comprehensive income (loss) net of tax | $ (13,589) | $ 6,214 | (91,836) | $ 199,396 |
Ending balance, Accumulated other comprehensive income | (32,299) | (32,299) | ||
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, Accumulated other comprehensive income | 77,400 | 1,300 | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (91,200) | 71,100 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Tax | 0 | 0 | ||
Total other comprehensive income (loss) net of tax | (91,200) | 71,100 | ||
Ending balance, Accumulated other comprehensive income | (13,800) | 72,400 | (13,800) | 72,400 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, Accumulated other comprehensive income | (22,300) | (18,600) | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 500 | (1,900) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1,200 | (500) | ||
Other Comprehensive Income (Loss), Tax | (400) | 600 | ||
Total other comprehensive income (loss) net of tax | 1,300 | (1,800) | ||
Ending balance, Accumulated other comprehensive income | (21,000) | (20,400) | (21,000) | (20,400) |
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other (income) expense, net | (400) | 500 | (1,200) | 500 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, Accumulated other comprehensive income | 4,500 | 435,000 | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (2,300) | 206,200 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 300 | (300) | ||
Other Comprehensive Income (Loss), Tax | 0 | (75,800) | ||
Total other comprehensive income (loss) net of tax | (2,000) | 130,100 | ||
Ending balance, Accumulated other comprehensive income | 2,500 | 565,100 | 2,500 | 565,100 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other (income) expense, net | 100 | (300) | 300 | (300) |
Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance, Accumulated other comprehensive income | 59,600 | 417,700 | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (93,000) | 275,400 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1,500 | (800) | ||
Other Comprehensive Income (Loss), Tax | (400) | (75,200) | ||
Total other comprehensive income (loss) net of tax | (91,900) | 199,400 | ||
Ending balance, Accumulated other comprehensive income | $ (32,300) | $ 617,100 | $ (32,300) | $ 617,100 |
7. Earnings Per Share (Details
7. Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Basic weighted average shares outstanding | 29,863 | 29,660 | 29,822 | 29,618 |
Effect of potentially dilutive stock options and restricted stock awards | 429 | 392 | 412 | 376 |
Diluted weighted average common shares | 30,292 | 30,052 | 30,234 | 29,994 |
Anti-dilutive shares | 64 | 12 | 35 | 22 |
8. Other Income and Expenses_2
8. Other Income and Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest and investment income | $ (2,600) | $ (1,400) | $ (20,900) | $ (14,500) |
Net realized loss (gain) on investments | 100 | (200) | 300 | (300) |
Gain on sale of land | 0 | 0 | (4,100) | 0 |
Gain on divestiture of a product line | 0 | 0 | (5,100) | 0 |
Other Nonoperating Income | (100) | |||
Other Nonoperating Expense | 500 | 200 | 1,300 | |
Nonoperating Income (Expense) | $ (2,585) | $ (1,061) | $ (29,588) | $ (13,486) |
9. Income Taxes (Details)
9. Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Jan. 01, 2018 | |
Effective tax rate | 23.00% | 28.00% | 23.00% | 24.00% | ||
Unrealized Gain on Securities | $ 318,007 | $ 0 | $ 1,420,339 | $ 0 | ||
Tax Cuts and Jobs Act, Incomplete Accounting, Provisional Income Tax Expense (Benefit) | $ 55,000 | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 3,000 | 3,000 | ||||
U.S. Federal [Member] | ||||||
Statutory Rates | 35.00% | |||||
Adjustments for New Accounting Pronouncement [Member] | ||||||
Unrealized Gain on Securities | 318,000 | 1,420,300 | ||||
Deferred Income Tax Assets, Net | $ 232,900 | |||||
Deferred Income Tax Expense (Benefit) | $ 70,000 | $ 313,700 | ||||
Federal and State [Member] | ||||||
Effective tax rate | 22.00% | 22.00% |
10. Segment Information (Detai
10. Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 545,138 | $ 534,141 | $ 1,672,568 | $ 1,538,858 |
Income before income taxes | 350,131 | 30,588 | 1,553,906 | 51,855 |
Life Science [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 206,600 | 192,700 | 622,200 | 546,500 |
Income before income taxes | 10,200 | 5,300 | 25,700 | (36,400) |
Clinical Diagnostics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 334,000 | 338,000 | 1,038,800 | 982,300 |
Income before income taxes | 22,400 | 30,300 | 86,800 | 90,400 |
All Other Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 4,500 | 3,400 | 11,600 | 10,100 |
Income before income taxes | $ 100 | $ 200 | $ 100 | $ 600 |
10. Segment Profit Reconciliat
10. Segment Profit Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Income before income taxes | $ 350,131 | $ 30,588 | $ 1,553,906 | $ 51,855 | |
Unrealized Gain on Securities | 318,007 | 0 | 1,420,339 | 0 | |
Operating Segments [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Income before income taxes | 32,700 | 35,800 | 112,600 | 54,600 | |
Corporate, Non-Segment [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Income before income taxes | (2,500) | (2,900) | (6,700) | (8,500) | |
Segment Reconciling Items [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Unrealized Gain on Securities | 318,000 | 0 | 1,420,300 | 0 | |
Foreign Currency Gain (Loss) [Member] | Segment Reconciling Items [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Income before income taxes | (700) | (3,400) | (1,900) | (7,700) | |
Other Nonoperating Income (Expense) [Member] | Segment Reconciling Items [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Income before income taxes | 2,600 | 1,100 | 29,600 | 13,500 | |
Life Science [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | $ 10,000 | ||||
Income before income taxes | 10,200 | 5,300 | 25,700 | (36,400) | |
Clinical Diagnostics [Member] | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Income before income taxes | $ 22,400 | $ 30,300 | $ 86,800 | $ 90,400 |
11. Legal Proceedings 11. Cont
11. Legal Proceedings 11. Contingent Liability (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Legal Proceedings [Abstract] | |
Loss Contingency, Damages Awarded, Value | $ 10,920,000 |
Litigation Settlement Interest | $ 141,608 |
12. Restructuring Costs (Detail
12. Restructuring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 10 Months Ended | 29 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
European Reorganization [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | $ 2 | $ 2 | $ 2 | $ 2 | $ 6.3 |
Restructuring Charges | 13 | ||||
Payments for Restructuring | (4.2) | ||||
Restructuring Reserve, Foreign Currency Translation (Gain) Loss | (0.1) | ||||
European Reorganization [Member] | Life Science [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 0.7 | 0.7 | 0.7 | 0.7 | 2.2 |
Payments for Restructuring | (1.5) | ||||
Restructuring Reserve, Foreign Currency Translation (Gain) Loss | 0 | ||||
European Reorganization [Member] | Clinical Diagnostics [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 1.3 | 1.3 | 1.3 | 1.3 | 4.1 |
Payments for Restructuring | (2.7) | ||||
Restructuring Reserve, Foreign Currency Translation (Gain) Loss | (0.1) | ||||
European Reorganization [Member] | Accounts Payable and Accrued Liabilities [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Current | 2 | 2 | 2 | 2 | |
Termination of a Diagnostics Research and Development Project [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 19.9 | ||||
Restructuring Reserve, Accrual Adjustment | (0.6) | (1.2) | |||
Facility Closing [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 1.3 | |||
Termination of a Diagnostics Research and Development Project and a Facility Closure [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 7.2 | 7.2 | 7.2 | 7.2 | $ 14.1 |
Restructuring Charges | 1.3 | ||||
Restructuring Reserve, Accrual Adjustment | (1.2) | ||||
Payments for Restructuring | (6.7) | ||||
Restructuring Reserve, Foreign Currency Translation (Gain) Loss | (0.3) | ||||
Termination of a Diagnostics Research and Development Project and a Facility Closure [Member] | Cost of Goods, Total [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 1.3 | |||
Termination of a Diagnostics Research and Development Project and a Facility Closure [Member] | Research and Development Expense [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Accrual Adjustment | (0.5) | (1.2) | |||
Termination of a Diagnostics Research and Development Project and a Facility Closure [Member] | Accounts Payable and Accrued Liabilities [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve, Current | $ 7.2 | $ 7.2 | $ 7.2 | $ 7.2 |