Avanos Medical (AVNS) 10-Q 12 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2015	Aug. 07, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	HALYARD HEALTH, INC.
Entity Central Index Key	1,606,498
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		46,611,678

CONDENSED CONSOLIDATED INCOME S

CONDENSED CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Net Sales (including prior year related party sales of $24.3 and $45.6, respectively)	$ 389.3	$ 413.5	$ 783.5	$ 824.2
Cost of products sold (including prior year related party purchases of $22.3 and $41.7, respectively)	254.4	308.6	516.5	564.3
Gross Profit	134.9	104.9	267	259.9
Research and development expenses	6.3	9.3	12.3	17.6
Selling and general expenses	105.8	101.3	203	186.8
Other expense (income), net	0.7	(1.2)	(11.3)	(1.7)
Operating Profit (Loss)	22.1	(4.5)	63	57.2
Interest income	0.1	0.9	0.2	1.9
Interest expense	(8.9)	0	(17.2)	0
Income (Loss) Before Income Taxes	13.3	(3.6)	46	59.1
Provision for income taxes	(5.3)	(0.9)	(16.3)	(22.2)
Net Income (Loss)	$ 8	$ (4.5)	$ 29.7	$ 36.9
Per Share Basis
Basic (usd per share)	$ 0.17	$ (0.10)	$ 0.64	$ 0.79
Diluted (usd per share)	$ 0.17	$ (0.10)	$ 0.63	$ 0.79

CONDENSED CONSOLIDATED INCOME 3

CONDENSED CONSOLIDATED INCOME STATEMENTS (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net Sales	$ 389.3	$ 413.5	$ 783.5	$ 824.2
Cost of products sold	254.4	308.6	516.5	564.3
Kimberly Clark and Affiliates | Affiliated entity
Net Sales	0	24.3	0	45.6
Cost of products sold	$ 0	$ 22.3	$ 0	$ 41.7

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME Statement - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ 8	$ (4.5)	$ 29.7	$ 36.9
Other Comprehensive (Loss) Income, Net of Tax
Unrealized currency translation adjustments	(3)	1.2	(9.8)	3.8
Defined benefit pension plans	0.2	0	0.2	0
Cash flow hedges	(0.5)	1.8	(0.2)	4.2
Total Other Comprehensive (Loss) Income, Net of Tax	(3.3)	3	(9.8)	8
Comprehensive Income (Loss)	$ 4.7	$ (1.5)	$ 19.9	$ 44.9

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Current Assets
Cash and cash equivalents	$ 114.3	$ 149
Accounts receivable, net	200.1	233.9
Inventories	323.9	283.1
Current deferred income taxes and other current assets	14.8	18.9
Total Current Assets	653.1	684.9
Property, Plant and Equipment, Net	286	277.8
Assets Held for Sale	0	2.6
Goodwill	1,422.8	1,426.1
Other Intangible Assets	95.4	108.3
Other Assets	28.2	27.9
TOTAL ASSETS	2,485.5	2,527.6
Current Liabilities
Debt payable within one year	0	3.9
Trade accounts payable	200.6	168.7
Accrued expenses	123.4	183.4
Total Current Liabilities	324	356
Long-Term Debt	585.8	632.3
Other Long-Term Liabilities	53.9	48.1
Total Liabilities	$ 963.7	$ 1,036.4
Commitments and Contingencies
Stockholders’ Equity
Preferred stock - $0.01 par value - authorized 20,000,000 shares, none issued	$ 0	$ 0
Common stock - $0.01 par value - authorized 300,000,000 shares, 46,605,790 outstanding as of June 30, 2015 and 46,535,951 as of December 31, 2014	0.5	0.5
Additional paid-in capital	1,514.3	1,502.5
Retained earnings	36.9	7.3
Treasury stock	(1)	0
Accumulated other comprehensive loss	(28.9)	(19.1)
Total Stockholders’ Equity	1,521.8	1,491.2
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 2,485.5	$ 2,527.6

CONDENSED CONSOLIDATED BALANCE6

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value (usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	46,605,790	46,535,951
Common stock, shares outstanding	46,605,790	46,535,951

CONDENSED CONSOLIDATED CASH FLO

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating Activities
Net income	$ 29.7	$ 36.9
Depreciation and amortization	32.3	34.8
Stock-based compensation expense	10.7	2.1
Asset impairment	0	41.9
Net (gain) loss on asset dispositions	(9.8)	2.4
Changes in operating assets and liabilities:
Accounts receivable	33.6	7.9
Inventories	(40.9)	(15.9)
Prepaid expenses and other assets	2.7	1
Accounts payable	46.4	8.1
Accrued expenses	(49.2)	(23.3)
Other	0.2	(12.2)
Cash Provided by Operating Activities	55.7	83.7
Investing Activities
Capital expenditures	(45.2)	(28)
Proceeds from property dispositions	7.7	0
Cash Used in Investing Activities	(37.5)	(28)
Financing Activities
Debt proceeds	0	1.3
Debt repayments	(51)	(2.9)
Purchase of treasury stock	(1)	0
Proceeds from the exercise of stock options	0.9	0
Change in Kimberly-Clark's net investment	0	(51)
Other	0	1.8
Cash Used in Financing Activities	(51.1)	(50.8)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(1.8)	(0.5)
Increase (Decrease) in Cash and Cash Equivalents	(34.7)	4.4
Cash and Cash Equivalents - Beginning of Period	149	44.1
Cash and Cash Equivalents - End of Period	$ 114.3	$ 48.5

Accounting Policies

Accounting Policies	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Accounting Policies	Accounting Policies Background and Basis of Presentation Halyard Health, Inc. is a global business which seeks to advance health and healthcare by preventing infection, eliminating pain and speeding recovery. Our products and solutions are designed to address some of today’s most important healthcare needs, namely, preventing infections and reducing the use of narcotics while helping patients move from surgery to recovery. We market and support the efficacy, safety and economic benefit of our products with a significant body of clinical evidence. We operate in two business segments: Surgical and Infection Prevention (“S&IP”) and Medical Devices. References to “Halyard,” “we,” “our” and “us” refer to Halyard Health, Inc. References to “Kimberly-Clark” mean Kimberly-Clark Corporation, a Delaware corporation, and its subsidiaries, other than Halyard, unless the context otherwise requires. In November 2013, Kimberly-Clark announced its intention to evaluate a potential tax-free spin-off of its health care business (the “Spin-off”). Halyard Health, Inc. was incorporated in Delaware in February 2014 for the purpose of holding the health care business following the separation. The Spin-off was completed on October 31, 2014 and Kimberly-Clark’s health care business became Halyard Health, Inc. The condensed consolidated financial statements for the three and six months ended June 30, 2015 represent our financial position, results of operations and cash flows as an independent publicly-traded company. The condensed combined financial statements for the three and six months ended June 30, 2014 represent the results of operations and cash flows of Kimberly-Clark’s health care business. Interim Financial Statements We prepared the accompanying condensed consolidated financial statements according to accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The condensed consolidated financial statements in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2014. Our unaudited interim condensed consolidated financial statements contain all material adjustments which are of a normal and recurring nature necessary to fairly state our financial condition, results of operations and cash flows for the periods presented. Certain prior period amounts have been conformed to current presentation. Use of Estimates Preparation of our condensed consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Estimates are used in accounting for, among other things, distributor rebate accruals, future cash flows associated with impairment testing for goodwill and long-lived assets, loss contingencies, and deferred tax assets and potential income tax assessments. Actual results could differ from these estimates, and the effect of the change could be material to our financial statements. Changes in these estimates are recorded when known. As described in our Annual Report on Form 10-K, we completed the required annual testing of goodwill for impairment for all reporting units using the beginning of the third quarter of 2014 as the measurement date and our analysis indicated that we had no impairment of goodwill. During the three and six months ended June 30, 2015 , we determined that there were no conditions or changes that would indicate that our goodwill may be impaired. New Accounting Standards In April 2015 , the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This ASU provides guidance about whether a cloud computing arrangement includes a software license and the appropriate accounting for such arrangements. Notably, the guidance in this ASU already exists in the FASB Accounting Standards Codification (“ASC”) Subtopic 985-605, Software - Revenue Recognition, which is used by cloud service providers to determine whether an arrangement includes the sale or license of software. This ASU will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 . Early adoption of this ASU is permitted. The application of this ASU is not expected to have a material effect on our financial position, results of operations or cash flows. In April 2015 , the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. This ASU addresses the different balance sheet presentation requirements for debt issuance costs, discounts and premiums under the FASB ASC Subtopic 835-30, Interest - Imputation of Interest . Currently, GAAP recognizes debt issuance costs as a deferred charge (i.e., an asset), which conflicts with FASB Concepts Statement No. 6, Elements of Financial Statements , which says that debt issuance costs are similar to debt discounts and reduce the proceeds of borrowing, thereby increasing the effective interest rate. Accordingly, ASU No. 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 . Early adoption will be permitted for financial statements that have not been previously issued. Application of this ASU will result in the reclassification of our debt issuance costs of approximately $9 million as of each quarter ended March 31, 2016 and December 31, 2015 from other assets to long-term debt. In January 2015 , the FASB issued ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU No. 2015-01 eliminates ASC Subtopic 225-20, Income Statement - Extraordinary and Unusual Items , which, until now, required that an entity separately classify, present, and disclose transactions and events that were determined to be both unusual and infrequent as extraordinary items. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 . A reporting entity may apply the amendments (i) prospectively or (ii) retrospectively to all prior periods presented in the financial statements. The application of this ASU is not expected to have a material effect on our financial position, results of operations and cash flows. In August 2014 , the FASB issued ASU 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern, that will require management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. In connection with each annual and interim period, management will assess if there is substantial doubt about an entity’s ability to continue as a going concern within one year after the issuance date. Substantial doubt exists if it is probable that the entity will be unable to meet its obligations within one year after the issuance date. The new standard defines substantial doubt and provides example indicators. Disclosures will be required if conditions give rise to substantial doubt. However, management will need to assess if its plans will alleviate substantial doubt to determine the specific disclosures. This ASU will become effective for annual periods ending after December 15, 2016 . Earlier application is permitted. The application of this ASU is not expected to have a material effect on our financial position, results of operations and cash flows. In May 2014 , the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers , which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2017 . Adoption prior to interim periods beginning after December 15, 2016 is not permitted. The guidance permits two implementation approaches, one requiring retrospective application of the new ASU with restatement of prior years and one requiring prospective application of the new ASU with disclosure of results under old standards. The effects of this ASU on our financial position, results of operations and cash flows are not yet known.

Spin-Off Transition Costs

Spin-Off Transition Costs	6 Months Ended
	Jun. 30, 2015
Restructuring and Related Activities [Abstract]
Spin-Off Transition Costs	Spin-Off Transition Costs Completion of the Sale of Disposable Glove Facility In June 2014 , Kimberly-Clark initiated a plan to exit one of the disposable glove facilities in Thailand and outsource the related production to improve the competitive position of the S&IP business. In December 2014 , we entered into a definitive agreement to sell the disposable glove facility to a third party and received advance cash payments of $8 million before the end of 2014 , which were included in “Accrued Expenses” in the accompanying condensed consolidated balance sheet as of December 31, 2014 . The net book value of the disposable glove facility was $3 million and was classified as “Assets Held for Sale” in the accompanying condensed consolidated balance sheet as of December 31, 2014 . We received the remaining $8 million of the sale price when the sale closed in January 2015 . The sale resulted in a net gain of $12 million , which was recorded in “Other income, net” in the accompanying condensed consolidated income statement for the six months ended June 30, 2015 . There were no remaining accrued expenses related to this plan as of June 30, 2015 . In the three and six months ended June 30, 2014 , we recognized $49 million of costs related to this plan consisting of an asset impairment charge of $42 million and workforce reduction costs of $7 million . Manufacturing Alignment, Marketing and Rebranding and Incremental Transition Services from Kimberly-Clark As a result of the Spin-off, we are making changes to our plant and equipment, primarily in North America to align with our manufacturing requirements. These changes will include modifications to certain equipment and the movement of health care equipment from Kimberly-Clark locations to Halyard facilities. We are undertaking efforts to ensure our customers’ transition from the Kimberly-Clark brand to our Halyard-branded products. We have entered into a royalty agreement under which we have access to use the Kimberly-Clark brand for up to 24 months as we manage the packaging changes with global regulatory bodies. Royalties are required to be paid for products sold bearing the Kimberly-Clark brand only. In addition to royalty expense, we expect to incur costs for packaging, marketing and regulatory approval in order to complete this transition. While building our own capabilities as a stand-alone company, we have entered into transition service agreements with Kimberly-Clark to provide temporary supporting services until we have the necessary resources and infrastructure in place. In the three and six months ended June 30, 2015 we have incurred $20 million and $30 million , respectively, for the above programs. In the three and six months ended June 30, 2014 we incurred $19 million and $26 million , respectively, for Spin-off related transaction costs.

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supplemental Balance Sheet Information	Supplemental Balance Sheet Information Accounts Receivable Accounts receivable consist of the following (in millions): June 30, 2015 December 31, 2014 Accounts receivable $ 201.4 $ 234.9 Allowance for sales discounts and doubtful accounts (1.3 ) (1.0 ) Accounts receivable, net $ 200.1 $ 233.9 Inventories Inventories at the lower of cost (determined on the LIFO/FIFO or weighted-average cost methods) or market consist of the following (in millions): June 30, 2015 December 31, 2014 LIFO Non- Total LIFO Non- Total Raw materials $ 52.7 $ 0.7 $ 53.4 $ 48.4 $ 1.3 $ 49.7 Work in process 52.5 0.7 53.2 47.7 0.3 48.0 Finished goods 179.5 42.8 222.3 157.8 37.5 195.3 Supplies and other — 12.2 12.2 — 11.8 11.8 284.7 56.4 341.1 253.9 50.9 304.8 Excess of FIFO or weighted-average cost over LIFO cost (17.2 ) — (17.2 ) (21.7 ) — (21.7 ) Total $ 267.5 $ 56.4 $ 323.9 $ 232.2 $ 50.9 $ 283.1 Property, Plant and Equipment Property, plant and equipment consists of the following (in millions): June 30, 2015 December 31, 2014 Land $ 2.2 $ 2.3 Buildings 84.3 67.9 Machinery and equipment 461.2 436.3 Construction in progress 46.4 62.2 594.1 568.7 Less accumulated depreciation (308.1 ) (290.9 ) Total $ 286.0 $ 277.8 Depreciation expense was $9 million and $19 million for the three and six months ended June 30, 2015 , respectively, compared to $10 million and $19 million for the three and six months ended June 30, 2014 , respectively. Goodwill and Intangible Assets The changes in the carrying amount of goodwill by business segment are as follows (in millions): S&IP Medical Devices Total Balance at December 31, 2014 $ 744.5 $ 681.6 $ 1,426.1 Currency translation adjustment (1.9 ) (1.4 ) (3.3 ) Balance at June 30, 2015 $ 742.6 $ 680.2 $ 1,422.8 As of June 30, 2015 and December 31, 2014 , we had intangible assets with indefinite useful lives of $7 million related to acquired in-process research and development. Intangible assets subject to amortization consist of the following (in millions): June 30, 2015 December 31, 2014 Gross Accumulated Net Carrying Amount Gross Accumulated Net Carrying Amount Trademarks $ 126.5 $ (88.3 ) $ 38.2 $ 126.6 $ (86.1 ) $ 40.5 Patents and acquired technologies 149.1 (108.3 ) 40.8 149.1 (99.3 ) 49.8 Other 48.4 (38.7 ) 9.7 48.3 (37.0 ) 11.3 Total $ 324.0 $ (235.3 ) $ 88.7 $ 324.0 $ (222.4 ) $ 101.6 Amortization expense for intangible assets was $6 million and $13 million for the three and six months ended June 30, 2015 , respectively, compared to $8 million and $16 million for the three and six months ended June 30, 2014 , respectively. We estimate amortization expense for the remainder of 2015 and the following four years and beyond will be as follows (in millions): For the years ending December 31, 2015 $ 12.5 2016 20.2 2017 14.9 2018 11.1 2019 6.9 Thereafter 23.1 Total $ 88.7 Accrued Expenses Accrued expenses consist of the following (in millions): June 30, 2015 December 31, 2014 Accrued rebates $ 66.9 $ 82.2 Accrued salaries and wages 25.3 46.4 Accrued taxes - income and other 12.6 23.4 Deposit received on pending sale of assets — 7.8 Other 18.6 23.6 Total $ 123.4 $ 183.4 Other Long-Term Liabilities Other long-term liabilities consist of the following (in millions): June 30, 2015 December 31, 2014 Deferred income taxes $ 29.2 $ 27.9 Taxes payable 1.6 1.6 Other 23.1 18.6 Total $ 53.9 $ 48.1

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt As of June 30, 2015 and December 31, 2014 , our debt balances were as follows (in millions): Weighted-Average Interest Rate Maturities June 30, 2015 December 31, 2014 Senior Secured Term Loan 4.00 % 2021 $ 335.8 $ 386.2 Senior Unsecured Notes 6.25 % 2022 250.0 250.0 Total long-term debt 585.8 636.2 Less debt payable within one year — 3.9 Long-term portion $ 585.8 $ 632.3 Senior Unsecured Notes The senior unsecured notes (the “Notes”) will mature on October 15, 2022 and interest will accrue at a rate of 6.25% per annum and will be payable semi-annually in arrears on April 15 and October 15 of each year. Senior Secured Term Loan and Revolving Credit Facility The senior secured term loan is under a credit agreement that established credit facilities in an aggregate principal amount of $640 million , including a five -year senior secured revolving credit facility allowing borrowings of up to $250 million , with a letter of credit sub-facility in an amount of $75 million and a swingline sub-facility in an amount of $25 million (the “Revolving Credit Facility”), and a seven -year senior secured term loan of $390 million (the “Term Loan Facility” and together with the Revolving Credit Facility, the “Senior Credit Facilities”). The Term Loan Facility is secured by substantially all of our assets located in the United States and a certain percentage of our foreign subsidiaries’ capital stock. On April 30, 2015 , we made a $50 million principal payment on our senior secured term loan without prepayment penalties pursuant to the terms of the governing loan agreement. We recognized a charge of $1 million in the three months ended June 30, 2015 related to the write-off of related debt issuance costs and original issue discount. Following this principal payment, quarterly amortization payments are no longer required for the senior secured term loan, resulting in the balance of the loan to be classified as long-term debt. Borrowings under the Term Loan Facility bear interest, at Halyard’s option, at either (i) a reserve-adjusted LIBOR rate, subject to a floor of 0.75% , plus 3.25% , or (ii) a base rate, subject to a floor of 0.75% , (calculated as the greatest of (1) the prime rate, (2) the U.S. federal funds effective rate plus 0.50% or (3) the one month LIBOR rate plus 1.00% ) plus 2.25% . The Term Loan Facility requires quarterly amortization payments equal to 0.25% of the aggregate principal amount of the term loans outstanding on the closing date. As of June 30, 2015 , the interest rate in effect for the Term Loan Facility was 4.00% . Borrowings under the Revolving Credit Facility will bear interest, at Halyard’s option, at either (i) a reserve-adjusted LIBOR rate, plus a margin initially equal to 2.25% and then, following Halyard’s delivery under the credit agreement of Halyard’s financial statements for Halyard’s fiscal quarter ending June 30, 2015 , ranging between 1.75% to 2.50% per annum, depending on Halyard’s consolidated total leverage ratio, or (ii) the base rate plus a margin initially equal to 1.25% and then, following Halyard’s delivery of those financial statements, ranging between 0.75% to 1.50% per annum, depending on Halyard’s consolidated total leverage ratio. The unused portion of Halyard’s Revolving Credit Facility will be subject to a commitment fee equal to (i) 0.25% per annum, when Halyard’s consolidated total leverage ratio is less than 2.25 to 1.00 and (ii) 0.40% per annum, otherwise. As of June 30, 2015 , we had no borrowings and letters of credit of $3 million outstanding under the Revolving Credit Facility, leaving $247 million available for borrowing.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments The derivative liabilities for foreign exchange contracts as of each June 30, 2015 and December 31, 2014 were $1 million and are included in the condensed consolidated balance sheet in accrued expenses. The derivative assets for foreign exchange contracts as of June 30, 2015 and December 31, 2014 were not significant. For derivative instruments that are designated and qualify as cash flow hedges, gains or losses recognized to earnings were not significant in the three or six months ended June 30, 2015 and 2014 . As of June 30, 2015 , the aggregate notional values of outstanding foreign exchange derivative contracts designated as cash flow hedges were $40 million . Cash flow hedges resulted in no significant ineffectiveness in the three or six months ended June 30, 2015 and 2014 . For the three and six months ended June 30, 2015 and 2014 , no gains or losses were reclassified into earnings as a result of the discontinuance of cash flow hedges due to the original forecasted transaction no longer being probable of occurring. At June 30, 2015 , amounts to be reclassified from Accumulated Other Comprehensive Income during the next twelve months are not expected to be significant. The maximum maturity of cash flow hedges in place at June 30, 2015 is June 2016 . Gains or losses on undesignated foreign exchange hedging instruments are immediately recognized in other income and expense, net. These gains or losses have not been significant for the three or six months ended June 30, 2015 and 2014 . The effect on earnings from the use of these non-designated derivatives is substantially neutralized by the transactional gains and losses recorded on the underlying assets and liabilities. As of June 30, 2015 , the notional amount of these undesignated derivative instruments was $89 million .

Fair Value Information

Fair Value Information	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Information	Fair Value Information The following fair value information is based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels in the hierarchy used to measure fair value are: Level 1—Unadjusted quoted prices in active markets accessible at the reporting date for identical assets and liabilities. Level 2—Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets and liabilities in markets that are not considered active or financial instruments for which all significant inputs are observable, either directly or indirectly. Level 3—Prices or valuations that require inputs that are significant to the valuation and are unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. In the three and six months ended June 30, 2015 , there were no transfers among Level 1, 2 or 3 fair value determinations. The derivative liabilities for foreign exchange contracts were $1 million as of both June 30, 2015 and December 31, 2014 and are included in the condensed consolidated balance sheet in accrued expenses. These derivatives are classified as Level 2 of the fair value hierarchy. The fair values of derivatives used to manage foreign currency risk is based on published quotations of spot currency rates and forward points, which are converted into implied forward currency rates. The following table includes the fair value of our cash, cash equivalents and financial instruments for which fair value disclosure is required (in millions): June 30, 2015 December 31, 2014 Fair Value Hierarchy Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents 1 $ 114.3 $ 114.3 $ 149.0 $ 149.0 Liabilities Debt 2 585.8 603.6 636.2 644.0 Cash equivalents are recorded at cost, which approximates fair value due to their short-term nature.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income The changes in the components of Accumulated Other Comprehensive Income (“AOCI”) are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Unrealized translation $ (3.0 ) $ 1.2 $ (9.8 ) $ 3.8 Defined benefit pension plans 0.1 — 0.1 — Cash flow hedges (0.8 ) 2.1 (0.3 ) 5.0 (3.7 ) 3.3 (10.0 ) 8.8 Tax effect 0.4 (0.3 ) 0.2 (0.8 ) Change in AOCI $ (3.3 ) $ 3.0 $ (9.8 ) $ 8.0

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Aggregate stock-based compensation expense for the three and six months ended June 30, 2015 was $6 million and $11 million , which reflects expense incurred for stock option and restricted stock unit awards granted under the Halyard Health, Inc. Equity Participation Plan and the Halyard Health, Inc. Outside Directors’ Compensation Plan (together, the “Plans”). Aggregate stock-based compensation expense for the three and six months ended June 30, 2014 was $1 million and $2 million , which reflects expense allocated to us for awards granted under Kimberly-Clark’s equity incentive plans. Stock Options Stock-based compensation expense related to stock options was $3 million and $4 million for the three and six months ended June 30, 2015 . A summary of stock option activity under the Plans is presented below: Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding at December 31, 2014 611 $ 34.94 Granted 628 45.52 Exercises (30 ) 30.84 Forfeitures (44 ) 35.52 Outstanding at June 30, 2015 1,165 $ 40.65 9.1 $ 2.9 Exercisable at June 30, 2015 219 $ 33.12 7.7 $ 1.6 The following table summarizes information about options outstanding as of June 30, 2015 : Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Shares (in thousands) Weighted- Average Remaining Contractual Term (Years) Shares (in thousands) Weighted- Average Exercise Price $25 to $35 223 7.4 133 $ 29.93 $35 to $45 323 8.9 80 37.45 $45+ 619 9.8 6 45.53 1,165 9.1 219 $ 33.12 Restricted Share Units Stock-based compensation expense related to restricted share units was $3 million and $7 million for the three and six months ended June 30, 2015 . A summary of restricted share unit activity is presented below: Shares (in thousands) Weighted- Average Fair Value Outstanding at December 31, 2014 375 $ 37.88 Granted 213 45.59 Exercises (60 ) 38.30 Forfeitures (18 ) 38.95 Outstanding at June 30, 2015 510 $ 41.02 Vested at June 30, 2015 27 $ 44.32 Prior Year Expense under Kimberly-Clark Equity Incentive Plans Kimberly-Clark maintains several equity incentive plans in which our executives and employees participated prior to the Spin-off. All awards granted under Kimberly-Clark’s plans were based on common shares of Kimberly-Clark stock and, as such, were reflected in Kimberly-Clark’s consolidated statements of equity and not in our combined statement of invested equity. Prior to the Spin-off, Kimberly-Clark allocated stock-based compensation expense to Halyard for employees of Kimberly-Clark’s health care business that became Halyard employees upon the Spin-off. Stock-based compensation expense charged to us by Kimberly-Clark under their incentive plans was $1 million and $2 million for the three and six months ended June 30, 2014 , respectively.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We are subject to various legal proceedings, claims and governmental inspections, audits or investigations pertaining to issues such as contract disputes, product liability, tax matters, patents and trademarks, advertising, governmental regulations, employment and other matters, including the matters described below. Under the terms of the distribution agreement we entered into with Kimberly-Clark prior to the Spin-off, legal proceedings, claims and other liabilities that are primarily related to our business are our responsibility and we are obligated to indemnify and hold Kimberly-Clark harmless for such matters (“Indemnification Obligation”). The only exception to the Indemnification Obligation relates to the pain pump litigation referenced in this paragraph. We are one of several manufacturers of continuous infusion medical devices, such as our ON-Q PAINBUSTER pain pumps, that are involved in several different pending or threatened litigation matters from multiple plaintiffs alleging that use of the continuous infusion device to deliver anesthetics directly into a synovial joint after surgery resulted in postarthroscopic glenohumeral chondrolysis, or a disintegration of the cartilage covering the bones in the joint (typically, in the shoulder). Plaintiffs generally seek monetary damages and attorneys’ fees. While Kimberly-Clark is retaining the liabilities related to these matters, the distribution agreement between us and Kimberly-Clark provides that we will indemnify Kimberly-Clark for any such claims or causes of actions arising after the Spin-off. We have an Indemnification Obligation for, and have assumed the defense of, the matter styled Shahinian, et al. v. Kimberly-Clark Corporation, et al., No. 2:14-cv-08390-DMG-SH (C.D. Cal.), filed on October 29, 2014. In that case, the plaintiff brings a putative nationwide class action asserting claims for common law fraud (affirmative misrepresentation and fraudulent concealment), negligent misrepresentation, and violation of California’s Unfair Competition Law in connection with our marketing and sale of MicroCool surgical gowns. On February 6, 2015, we moved to dismiss the complaint on multiple grounds. On July 10, 2015, the Court issued an order on the motion to dismiss, dismissing the negligent misrepresentation claim but permitting the remaining claims to stand and proceed to discovery. At this stage of the proceedings, we are not able to estimate any range of potential loss. We intend to continue our vigorous defense of the matter. In June 2015, we were served with a subpoena from the Department of Veterans Affairs Office of the Inspector General (“VA OIG”) seeking information related to the design, manufacture, testing, sale and promotion of MicroCool and other Company surgical gowns, and, in July, also became aware that the subpoena and an earlier VA OIG subpoena served on Kimberly-Clark requesting information about gown sales to the federal government are related to a United States Department of Justice (“DOJ”) investigation. No claims have been asserted against Kimberly-Clark or the Company by the VA OIG or the DOJ at this time. If a claim is asserted against Kimberly-Clark relating to MicroCool gowns, we expect that such a claim would give rise to an Indemnification Obligation under the distribution agreement with Kimberly-Clark. The Company is cooperating with the VA OIG’s request and the DOJ investigation. We operate in an industry characterized by extensive patent litigation and competitors may claim that our products infringe upon their intellectual property. Resolution of patent litigation or other intellectual property claims is typically time consuming and costly and can result in significant damage awards and injunctions that could prevent the manufacture and sale of the affected products or require us to make significant royalty payments in order to continue selling the affected products. At any given time we are involved as either a plaintiff or a defendant in a number of patent infringement actions, the outcomes of which may not be known for prolonged periods of time. Although the results of litigation and claims cannot be predicted with certainty, we believe that the ultimate disposition of these matters, to the extent not previously provided for, will not have a material adverse effect, individually or in the aggregate, on our business, financial condition, results of operations or liquidity. We are subject to federal, state and local environmental protection laws and regulations with respect to our business operations and are operating in compliance with, or taking action aimed at ensuring compliance with, these laws and regulations. None of our compliance obligations with environmental protection laws and regulations, individually or in the aggregate, is expected to have a material adverse effect on our business, financial condition, results of operations or liquidity.

Earnings Per Share ("EPS")

Earnings Per Share ("EPS")	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Earnings Per Share (“EPS”)	Earnings Per Share (“EPS”) Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during each period. Diluted earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding and the effect of all dilutive common stock equivalents outstanding during each period, as determined using the treasury stock method. The contribution of Kimberly-Clark’s Health Care business to us was treated as a reorganization of entities under common control under Kimberly-Clark. Consequently, we are retrospectively reporting EPS for the prior year using the 46.5 million weighted average shares outstanding as of the Spin-off date for both basic and diluted EPS as no Halyard common stock or dilutive stock-based compensation awards were authorized or outstanding prior to the Spin-off. The calculation of basic and diluted earnings per share for the three and six months ended June 30, 2015 and June 30, 2014 is set forth in the following table (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income (loss) $ 8.0 $ (4.5 ) $ 29.7 $ 36.9 Weighted Average Shares Outstanding: Basic weighted average shares outstanding 46.6 46.5 46.6 46.5 Dilutive effect of stock options and restricted share unit awards 0.2 — 0.2 — Diluted weighted average shares outstanding 46.8 46.5 46.8 46.5 Earnings Per Share Basic $ 0.17 $ (0.10 ) $ 0.64 $ 0.79 Diluted $ 0.17 $ (0.10 ) $ 0.63 $ 0.79

Business Segment Information

Business Segment Information	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Business Segment Information	Business Segment Information Information concerning unaudited consolidated operations by business segment is presented in the following table (in millions): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net Sales S&IP $ 255.3 $ 285.5 $ 510.1 $ 561.0 Medical Devices 126.9 121.4 249.2 251.0 Corporate & Other (a) 7.1 6.6 24.2 12.2 Total Net Sales 389.3 413.5 783.5 824.2 Operating Profit S&IP 25.5 41.2 45.0 81.3 Medical Devices 33.3 24.8 58.1 56.2 Corporate & Other (b) (36.0 ) (71.7 ) (51.4 ) (82.0 ) Other income, net (c) (0.7 ) 1.2 11.3 1.7 Total Operating Profit 22.1 (4.5 ) 63.0 57.2 Interest income 0.1 0.9 0.2 1.9 Interest expense (8.9 ) — (17.2 ) — Income before Income Taxes $ 13.3 $ (3.6 ) $ 46.0 $ 59.1 _________________________________________________ (a) Corporate and Other net sales include sales of non-healthcare products to Kimberly-Clark. (b) Corporate and Other for the three and six months ended June 30, 2015 includes $20 million and $30 million , respectively, of post-spin related transition expenses. Corporate and Other for the three and six months ended June 30, 2014 includes $19 million and $26 million , respectively, of spin-off related transaction costs and $49 million of costs related to the exit from one of our disposable glove facilities in Thailand. (c) Other income, net for the six months ended June 30, 2015 includes a $12 million net gain on the disposal of one of our disposable glove facilities in Thailand.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In the prior year, we utilized manufacturing facilities and resources managed by affiliates of Kimberly-Clark to conduct our business. The expenses associated with these transactions, which primarily relate to production of semi-finished goods for our S&IP business, are included in cost of products sold in our combined income statement for the three and six months ended June 30, 2014 . Following the Spin-off, Kimberly-Clark is not considered a related party. In the prior year, our combined financial statements include certain expenses of Kimberly-Clark which were allocated to us for certain functions, including general expenses related to supply chain, finance, legal, information technology, human resources, compliance, shared services, insurance, employee benefits and incentives and stock-based compensation. These expenses were allocated to us on the basis of direct usage when identifiable, with the remainder allocated on the relative percentage of net sales or headcount. The total amount of these allocations from Kimberly-Clark was approximately as follows (in millions): Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Cost of products sold $ 6 $ 12 Selling and general expenses 15 31 Research expenses 2 5 Total $ 23 $ 48

Supplemental Guarantor Financia

Supplemental Guarantor Financial Information	6 Months Ended
	Jun. 30, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Supplemental Guarantor Financial Information	Supplemental Guarantor Financial Information In October 2014, Halyard Health, Inc. (referred to below as “Parent”) issued the Notes (described in Note 4 , “Long-Term Debt”). The Notes are guaranteed, jointly and severally by each of our domestic subsidiaries that guarantees the Senior Credit Facilities (each, a “Guarantor Subsidiary” and collectively, the “Guarantor Subsidiaries”). The guarantees are full and unconditional, subject to certain customary release provisions as defined in the Indenture dated October 17, 2014. Each Guarantor Subsidiary is directly or indirectly 100% -owned by Halyard Health, Inc. Each of the guarantees of the Notes is a general unsecured obligation of each Guarantor and ranks equally in right of payment with all existing and future indebtedness and all other obligations (except subordinated indebtedness) of each Guarantor. The following condensed consolidating balance sheets as of June 30, 2015 and December 31, 2014 and the condensed consolidating statements of income for each of the three and six months ended June 30, 2015 and 2014 and cash flows for the six months ended June 30, 2015 and 2014 provide condensed consolidating financial information for Halyard Health, Inc. (“Parent”), the Guarantor Subsidiaries on a combined basis, the Non-Guarantor subsidiaries on a combined basis and the Parent and its subsidiaries on a consolidating basis. The Parent and the Guarantor Subsidiaries use the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation. Eliminating entries in the following condensed consolidating financial information represent adjustments to (i) eliminate intercompany transactions between or among the Parent, the Guarantor Subsidiaries and the non-guarantor subsidiaries and (ii) eliminate the investments in subsidiaries. HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING INCOME AND COMPREHENSIVE INCOME STATEMENTS (In millions) (Unaudited) Three Months Ended June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 364.6 $ 113.5 $ (88.8 ) $ 389.3 Cost of products sold — 247.0 96.2 (88.8 ) 254.4 Gross Profit — 117.6 17.3 — 134.9 Research and development expenses — 6.3 — — 6.3 Selling and general expenses 9.1 81.1 15.6 — 105.8 Other (income) and expense, net (0.2 ) 2.5 (1.6 ) — 0.7 Operating (Loss) Profit (8.9 ) 27.7 3.3 — 22.1 Interest income 0.3 — 1.7 (1.9 ) 0.1 Interest expense (10.0 ) (0.7 ) (0.1 ) 1.9 (8.9 ) (Loss) Income Before Income Taxes (18.6 ) 27.0 4.9 — 13.3 Benefit from (Provision for) income taxes 13.4 (18.7 ) — — (5.3 ) Equity in earnings of consolidated subsidiaries 13.2 2.9 — (16.1 ) — Net Income 8.0 11.2 4.9 (16.1 ) 8.0 Total other comprehensive loss, net of tax — (0.2 ) (3.1 ) — (3.3 ) Comprehensive Income $ 8.0 $ 11.0 $ 1.8 $ (16.1 ) $ 4.7 HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED COMBINED CONSOLIDATING INCOME AND COMPREHENSIVE INCOME STATEMENTS (In millions) (Unaudited) Three Months Ended June 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated and Combined Net Sales $ — $ 352.3 $ 163.0 $ (101.8 ) $ 413.5 Cost of products sold — 237.3 173.1 (101.8 ) 308.6 Gross Profit (Loss) — 115.0 (10.1 ) — 104.9 Research and development expenses — 9.3 — — 9.3 Selling and general expenses — 87.3 14.0 — 101.3 Other income, net — (0.3 ) (0.9 ) — (1.2 ) Operating Profit (Loss) — 18.7 (23.2 ) — (4.5 ) Interest income — 0.9 — — 0.9 Income (Loss) Before Income Taxes — 19.6 (23.2 ) — (3.6 ) Benefit from (Provision for) income taxes — (6.8 ) 5.9 — (0.9 ) Equity in earnings of consolidated subsidiaries (4.5 ) (47.8 ) — 52.3 — Net Loss (4.5 ) (35.0 ) (17.3 ) 52.3 (4.5 ) Total other comprehensive income, net of tax — 0.8 2.2 — 3.0 Comprehensive Loss $ (4.5 ) $ (34.2 ) $ (15.1 ) $ 52.3 $ (1.5 ) HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING INCOME AND COMPREHENSIVE INCOME STATEMENTS (In millions) (Unaudited) Six Months Ended June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 724.9 $ 227.2 $ (168.6 ) $ 783.5 Cost of products sold — 490.6 194.5 (168.6 ) 516.5 Gross Profit — 234.3 32.7 — 267.0 Research and development expenses — 12.3 — — 12.3 Selling and general expenses 18.2 154.3 30.5 — 203.0 Other (income) and expense, net (0.4 ) 4.8 (15.7 ) — (11.3 ) Operating (Loss) Profit (17.8 ) 62.9 17.9 — 63.0 Interest income 0.3 — 1.8 (1.9 ) 0.2 Interest expense (17.8 ) (1.0 ) (0.3 ) 1.9 (17.2 ) (Loss) Income Before Income Taxes (35.3 ) 61.9 19.4 — 46.0 Benefit from (Provision for) income taxes 13.4 (24.2 ) (5.5 ) — (16.3 ) Equity in earnings of consolidated subsidiaries 51.6 16.1 — (67.7 ) — Net Income 29.7 53.8 13.9 (67.7 ) 29.7 Total other comprehensive loss, net of tax — (0.3 ) (9.5 ) — (9.8 ) Comprehensive Income $ 29.7 $ 53.5 $ 4.4 $ (67.7 ) $ 19.9 HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED COMBINED CONSOLIDATING INCOME AND COMPREHENSIVE INCOME STATEMENTS (In millions) (Unaudited) Six Months Ended June 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated and Combined Net Sales $ — $ 704.5 $ 321.2 $ (201.5 ) $ 824.2 Cost of products sold — 471.0 294.8 (201.5 ) 564.3 Gross Profit — 233.5 26.4 — 259.9 Research and development expenses — 17.6 — — 17.6 Selling and general expenses — 159.0 27.8 — 186.8 Other income, net — (0.6 ) (1.1 ) — (1.7 ) Operating Profit (Loss) — 57.5 (0.3 ) — 57.2 Interest income — 1.7 0.2 — 1.9 Income (Loss) Before Income Taxes — 59.2 (0.1 ) — 59.1 Provision for income taxes — (22.1 ) (0.1 ) — (22.2 ) Equity in earnings of consolidated subsidiaries (4.5 ) (33.4 ) — 37.9 — Net (Loss) Income (4.5 ) 3.7 (0.2 ) 37.9 36.9 Total other comprehensive income, net of tax — 1.5 6.5 — 8.0 Comprehensive (Loss) Income $ (4.5 ) $ 5.2 $ 6.3 $ 37.9 $ 44.9 HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS (In millions) (Unaudited) As of June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 93.6 $ 0.3 $ 20.4 $ — $ 114.3 Accounts receivable, net 3.3 375.6 215.9 (394.7 ) 200.1 Inventories — 280.9 43.0 — 323.9 Current deferred income taxes and other current assets 7.0 6.1 1.7 — 14.8 Total Current Assets 103.9 662.9 281.0 (394.7 ) 653.1 Property, Plant and Equipment, Net — 228.7 57.3 — 286.0 Investment in Consolidated Subsidiaries 2,220.0 268.7 — (2,488.7 ) — Goodwill — 1,373.6 49.2 — 1,422.8 Other Intangible Assets — 95.4 — — 95.4 Other Assets 7.4 2.4 18.4 — 28.2 TOTAL ASSETS $ 2,331.3 $ 2,631.7 $ 405.9 $ (2,883.4 ) $ 2,485.5 LIABILITIES AND EQUITY Current Liabilities Trade accounts payable $ 218.3 $ 335.8 $ 41.2 $ (394.7 ) $ 200.6 Accrued expenses 5.2 95.2 23.0 — 123.4 Total Current Liabilities 223.5 431.0 64.2 (394.7 ) 324.0 Long-Term Debt 585.8 — — — 585.8 Other Long-Term Liabilities 0.2 47.4 6.3 — 53.9 Total Liabilities 809.5 478.4 70.5 (394.7 ) 963.7 Total Equity 1,521.8 2,153.3 335.4 (2,488.7 ) 1,521.8 TOTAL LIABILITIES AND EQUITY $ 2,331.3 $ 2,631.7 $ 405.9 $ (2,883.4 ) $ 2,485.5 HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED COMBINED CONSOLIDATING BALANCE SHEETS (In millions) (Unaudited) As of December 31, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated and Combined ASSETS Current Assets Cash and cash equivalents $ 101.2 $ 3.9 $ 43.9 $ — $ 149.0 Accounts receivable, net 45.4 366.4 229.8 (407.7 ) 233.9 Inventories — 244.1 39.0 — 283.1 Current deferred income taxes and other current assets 5.4 12.5 1.0 — 18.9 Total Current Assets 152.0 626.9 313.7 (407.7 ) 684.9 Property, Plant and Equipment, Net — 216.7 61.1 — 277.8 Assets Held for Sale — — 2.6 — 2.6 Investment in Consolidated Subsidiaries 2,144.6 241.6 — (2,386.2 ) — Goodwill — 1,373.6 52.5 — 1,426.1 Other Intangible Assets — 108.3 — — 108.3 Other Assets 10.1 0.2 17.6 — 27.9 TOTAL ASSETS $ 2,306.7 $ 2,567.3 $ 447.5 $ (2,793.9 ) $ 2,527.6 LIABILITIES AND EQUITY Current Liabilities Debt payable within one year $ 3.9 $ — $ — $ — $ 3.9 Trade accounts payable 165.2 325.6 85.6 (407.7 ) 168.7 Accrued expenses 12.6 137.4 33.4 — 183.4 Total Current Liabilities 181.7 463.0 119.0 (407.7 ) 356.0 Long-Term Debt 632.3 — — — 632.3 Other Long-Term Liabilities 1.5 42.2 4.4 — 48.1 Total Liabilities 815.5 505.2 123.4 (407.7 ) 1,036.4 Total Equity 1,491.2 2,062.1 324.1 (2,386.2 ) 1,491.2 TOTAL LIABILITIES AND EQUITY $ 2,306.7 $ 2,567.3 $ 447.5 $ (2,793.9 ) $ 2,527.6 HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Six Months Ended June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Operating Activities Cash (Used in) Provided by Operating Activities $ (18.9 ) $ 22.4 $ 52.2 $ — $ 55.7 Investing Activities Capital expenditures — (39.1 ) (6.1 ) — (45.2 ) Proceeds from property dispositions — — 7.7 — 7.7 Cash (Used in) Provided by Investing Activities — (39.1 ) 1.6 — (37.5 ) Financing Activities Intercompany contributions 62.4 13.2 (75.6 ) — — Debt repayments (51.0 ) — — — (51.0 ) Purchase of treasury stock (1.0 ) — — — (1.0 ) Proceeds from the exercise of stock options 0.9 — — — 0.9 Cash Provided by (Used in) Financing Activities 11.3 13.2 (75.6 ) — (51.1 ) Effect of Exchange Rate on Cash and Cash Equivalents — (0.1 ) (1.7 ) — (1.8 ) Decrease in Cash and Cash Equivalents (7.6 ) (3.6 ) (23.5 ) — (34.7 ) Cash and Cash Equivalents, Beginning of Period 101.2 3.9 43.9 — 149.0 Cash and Cash Equivalents, End of Period $ 93.6 $ 0.3 $ 20.4 $ — $ 114.3 HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED COMBINED CONSOLIDATING STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Six Months Ended June 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated and Combined Operating Activities Cash Provided by Operating Activities $ — $ 38.4 $ 45.3 $ — $ 83.7 Investing Activities Capital expenditures — (23.5 ) (4.5 ) — (28.0 ) Cash Used in Investing Activities — (23.5 ) (4.5 ) — (28.0 ) Financing Activities Debt proceeds — — 1.3 — 1.3 Debt repayments — (2.9 ) — — (2.9 ) Change in Kimberly-Clark's net investment — (12.2 ) (38.8 ) — (51.0 ) Other — 1.8 — — 1.8 Cash Used in Financing Activities — (13.3 ) (37.5 ) — (50.8 ) Effect of Exchange Rate on Cash and Cash Equivalents — (0.1 ) (0.4 ) — (0.5 ) Increase in Cash and Cash Equivalents — 1.5 2.9 — 4.4 Cash and Cash Equivalents, Beginning of Period — 3.1 41.0 — 44.1 Cash and Cash Equivalents, End of Period $ — $ 4.6 $ 43.9 $ — $ 48.5

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Background and Basis of Presentation	Background and Basis of Presentation Halyard Health, Inc. is a global business which seeks to advance health and healthcare by preventing infection, eliminating pain and speeding recovery. Our products and solutions are designed to address some of today’s most important healthcare needs, namely, preventing infections and reducing the use of narcotics while helping patients move from surgery to recovery. We market and support the efficacy, safety and economic benefit of our products with a significant body of clinical evidence. We operate in two business segments: Surgical and Infection Prevention (“S&IP”) and Medical Devices. References to “Halyard,” “we,” “our” and “us” refer to Halyard Health, Inc. References to “Kimberly-Clark” mean Kimberly-Clark Corporation, a Delaware corporation, and its subsidiaries, other than Halyard, unless the context otherwise requires. In November 2013, Kimberly-Clark announced its intention to evaluate a potential tax-free spin-off of its health care business (the “Spin-off”). Halyard Health, Inc. was incorporated in Delaware in February 2014 for the purpose of holding the health care business following the separation. The Spin-off was completed on October 31, 2014 and Kimberly-Clark’s health care business became Halyard Health, Inc. The condensed consolidated financial statements for the three and six months ended June 30, 2015 represent our financial position, results of operations and cash flows as an independent publicly-traded company. The condensed combined financial statements for the three and six months ended June 30, 2014 represent the results of operations and cash flows of Kimberly-Clark’s health care business. Interim Financial Statements We prepared the accompanying condensed consolidated financial statements according to accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The condensed consolidated financial statements in this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2014. Our unaudited interim condensed consolidated financial statements contain all material adjustments which are of a normal and recurring nature necessary to fairly state our financial condition, results of operations and cash flows for the periods presented. Certain prior period amounts have been conformed to current presentation.
Use of Estimates	Use of Estimates Preparation of our condensed consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Estimates are used in accounting for, among other things, distributor rebate accruals, future cash flows associated with impairment testing for goodwill and long-lived assets, loss contingencies, and deferred tax assets and potential income tax assessments. Actual results could differ from these estimates, and the effect of the change could be material to our financial statements. Changes in these estimates are recorded when known. As described in our Annual Report on Form 10-K, we completed the required annual testing of goodwill for impairment for all reporting units using the beginning of the third quarter of 2014 as the measurement date and our analysis indicated that we had no impairment of goodwill. During the three and six months ended June 30, 2015 , we determined that there were no conditions or changes that would indicate that our goodwill may be impaired.
New Accounting Standards	New Accounting Standards In April 2015 , the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This ASU provides guidance about whether a cloud computing arrangement includes a software license and the appropriate accounting for such arrangements. Notably, the guidance in this ASU already exists in the FASB Accounting Standards Codification (“ASC”) Subtopic 985-605, Software - Revenue Recognition, which is used by cloud service providers to determine whether an arrangement includes the sale or license of software. This ASU will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 . Early adoption of this ASU is permitted. The application of this ASU is not expected to have a material effect on our financial position, results of operations or cash flows. In April 2015 , the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. This ASU addresses the different balance sheet presentation requirements for debt issuance costs, discounts and premiums under the FASB ASC Subtopic 835-30, Interest - Imputation of Interest . Currently, GAAP recognizes debt issuance costs as a deferred charge (i.e., an asset), which conflicts with FASB Concepts Statement No. 6, Elements of Financial Statements , which says that debt issuance costs are similar to debt discounts and reduce the proceeds of borrowing, thereby increasing the effective interest rate. Accordingly, ASU No. 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU will become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 . Early adoption will be permitted for financial statements that have not been previously issued. Application of this ASU will result in the reclassification of our debt issuance costs of approximately $9 million as of each quarter ended March 31, 2016 and December 31, 2015 from other assets to long-term debt. In January 2015 , the FASB issued ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU No. 2015-01 eliminates ASC Subtopic 225-20, Income Statement - Extraordinary and Unusual Items , which, until now, required that an entity separately classify, present, and disclose transactions and events that were determined to be both unusual and infrequent as extraordinary items. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 . A reporting entity may apply the amendments (i) prospectively or (ii) retrospectively to all prior periods presented in the financial statements. The application of this ASU is not expected to have a material effect on our financial position, results of operations and cash flows. In August 2014 , the FASB issued ASU 2014-15, Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern, that will require management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. In connection with each annual and interim period, management will assess if there is substantial doubt about an entity’s ability to continue as a going concern within one year after the issuance date. Substantial doubt exists if it is probable that the entity will be unable to meet its obligations within one year after the issuance date. The new standard defines substantial doubt and provides example indicators. Disclosures will be required if conditions give rise to substantial doubt. However, management will need to assess if its plans will alleviate substantial doubt to determine the specific disclosures. This ASU will become effective for annual periods ending after December 15, 2016 . Earlier application is permitted. The application of this ASU is not expected to have a material effect on our financial position, results of operations and cash flows. In May 2014 , the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers , which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2017 . Adoption prior to interim periods beginning after December 15, 2016 is not permitted. The guidance permits two implementation approaches, one requiring retrospective application of the new ASU with restatement of prior years and one requiring prospective application of the new ASU with disclosure of results under old standards. The effects of this ASU on our financial position, results of operations and cash flows are not yet known.

Supplemental Balance Sheet In22

Supplemental Balance Sheet Information (Tables)	6 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of accounts receivable	Accounts receivable consist of the following (in millions): June 30, 2015 December 31, 2014 Accounts receivable $ 201.4 $ 234.9 Allowance for sales discounts and doubtful accounts (1.3 ) (1.0 ) Accounts receivable, net $ 200.1 $ 233.9
Schedule of inventories at the lower of cost or market	Inventories at the lower of cost (determined on the LIFO/FIFO or weighted-average cost methods) or market consist of the following (in millions): June 30, 2015 December 31, 2014 LIFO Non- Total LIFO Non- Total Raw materials $ 52.7 $ 0.7 $ 53.4 $ 48.4 $ 1.3 $ 49.7 Work in process 52.5 0.7 53.2 47.7 0.3 48.0 Finished goods 179.5 42.8 222.3 157.8 37.5 195.3 Supplies and other — 12.2 12.2 — 11.8 11.8 284.7 56.4 341.1 253.9 50.9 304.8 Excess of FIFO or weighted-average cost over LIFO cost (17.2 ) — (17.2 ) (21.7 ) — (21.7 ) Total $ 267.5 $ 56.4 $ 323.9 $ 232.2 $ 50.9 $ 283.1
Schedule of property, plant and equipment	Property, plant and equipment consists of the following (in millions): June 30, 2015 December 31, 2014 Land $ 2.2 $ 2.3 Buildings 84.3 67.9 Machinery and equipment 461.2 436.3 Construction in progress 46.4 62.2 594.1 568.7 Less accumulated depreciation (308.1 ) (290.9 ) Total $ 286.0 $ 277.8
Changes in carrying amount of goodwill by business segment	The changes in the carrying amount of goodwill by business segment are as follows (in millions): S&IP Medical Devices Total Balance at December 31, 2014 $ 744.5 $ 681.6 $ 1,426.1 Currency translation adjustment (1.9 ) (1.4 ) (3.3 ) Balance at June 30, 2015 $ 742.6 $ 680.2 $ 1,422.8
Schedule of intangible assets subject to amortization	Intangible assets subject to amortization consist of the following (in millions): June 30, 2015 December 31, 2014 Gross Accumulated Net Carrying Amount Gross Accumulated Net Carrying Amount Trademarks $ 126.5 $ (88.3 ) $ 38.2 $ 126.6 $ (86.1 ) $ 40.5 Patents and acquired technologies 149.1 (108.3 ) 40.8 149.1 (99.3 ) 49.8 Other 48.4 (38.7 ) 9.7 48.3 (37.0 ) 11.3 Total $ 324.0 $ (235.3 ) $ 88.7 $ 324.0 $ (222.4 ) $ 101.6
Schedule of estimated amortization expense	We estimate amortization expense for the remainder of 2015 and the following four years and beyond will be as follows (in millions): For the years ending December 31, 2015 $ 12.5 2016 20.2 2017 14.9 2018 11.1 2019 6.9 Thereafter 23.1 Total $ 88.7
Schedule of accrued expenses	Accrued expenses consist of the following (in millions): June 30, 2015 December 31, 2014 Accrued rebates $ 66.9 $ 82.2 Accrued salaries and wages 25.3 46.4 Accrued taxes - income and other 12.6 23.4 Deposit received on pending sale of assets — 7.8 Other 18.6 23.6 Total $ 123.4 $ 183.4
Schedule of other long-term liabilities	Other long-term liabilities consist of the following (in millions): June 30, 2015 December 31, 2014 Deferred income taxes $ 29.2 $ 27.9 Taxes payable 1.6 1.6 Other 23.1 18.6 Total $ 53.9 $ 48.1

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Schedule of debt balances	As of June 30, 2015 and December 31, 2014 , our debt balances were as follows (in millions): Weighted-Average Interest Rate Maturities June 30, 2015 December 31, 2014 Senior Secured Term Loan 4.00 % 2021 $ 335.8 $ 386.2 Senior Unsecured Notes 6.25 % 2022 250.0 250.0 Total long-term debt 585.8 636.2 Less debt payable within one year — 3.9 Long-term portion $ 585.8 $ 632.3

Fair Value Information (Tables)

Fair Value Information (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Schedule of fair value of cash, cash equivalents and financial instruments	The following table includes the fair value of our cash, cash equivalents and financial instruments for which fair value disclosure is required (in millions): June 30, 2015 December 31, 2014 Fair Value Hierarchy Level Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Assets Cash and cash equivalents 1 $ 114.3 $ 114.3 $ 149.0 $ 149.0 Liabilities Debt 2 585.8 603.6 636.2 644.0

Accumulated Other Comprehensi25

Accumulated Other Comprehensive Income (Tables)	6 Months Ended
	Jun. 30, 2015
Equity [Abstract]
Schedule of changes in the components of Accumulated Other Comprehensive Income	The changes in the components of Accumulated Other Comprehensive Income (“AOCI”) are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Unrealized translation $ (3.0 ) $ 1.2 $ (9.8 ) $ 3.8 Defined benefit pension plans 0.1 — 0.1 — Cash flow hedges (0.8 ) 2.1 (0.3 ) 5.0 (3.7 ) 3.3 (10.0 ) 8.8 Tax effect 0.4 (0.3 ) 0.2 (0.8 ) Change in AOCI $ (3.3 ) $ 3.0 $ (9.8 ) $ 8.0

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of stock option activity	A summary of stock option activity under the Plans is presented below: Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding at December 31, 2014 611 $ 34.94 Granted 628 45.52 Exercises (30 ) 30.84 Forfeitures (44 ) 35.52 Outstanding at June 30, 2015 1,165 $ 40.65 9.1 $ 2.9 Exercisable at June 30, 2015 219 $ 33.12 7.7 $ 1.6
Summary of options outstanding	The following table summarizes information about options outstanding as of June 30, 2015 : Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Shares (in thousands) Weighted- Average Remaining Contractual Term (Years) Shares (in thousands) Weighted- Average Exercise Price $25 to $35 223 7.4 133 $ 29.93 $35 to $45 323 8.9 80 37.45 $45+ 619 9.8 6 45.53 1,165 9.1 219 $ 33.12
Summary of restricted share unit activity	A summary of restricted share unit activity is presented below: Shares (in thousands) Weighted- Average Fair Value Outstanding at December 31, 2014 375 $ 37.88 Granted 213 45.59 Exercises (60 ) 38.30 Forfeitures (18 ) 38.95 Outstanding at June 30, 2015 510 $ 41.02 Vested at June 30, 2015 27 $ 44.32

Earnings Per Share ("EPS") (Tab

Earnings Per Share ("EPS") (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share [Abstract]
Calculation of basic and diluted earnings per share	The calculation of basic and diluted earnings per share for the three and six months ended June 30, 2015 and June 30, 2014 is set forth in the following table (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income (loss) $ 8.0 $ (4.5 ) $ 29.7 $ 36.9 Weighted Average Shares Outstanding: Basic weighted average shares outstanding 46.6 46.5 46.6 46.5 Dilutive effect of stock options and restricted share unit awards 0.2 — 0.2 — Diluted weighted average shares outstanding 46.8 46.5 46.8 46.5 Earnings Per Share Basic $ 0.17 $ (0.10 ) $ 0.64 $ 0.79 Diluted $ 0.17 $ (0.10 ) $ 0.63 $ 0.79

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Jun. 30, 2015
Segment Reporting [Abstract]
Information concerning unaudited consolidated operations by business segment	Information concerning unaudited consolidated operations by business segment is presented in the following table (in millions): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net Sales S&IP $ 255.3 $ 285.5 $ 510.1 $ 561.0 Medical Devices 126.9 121.4 249.2 251.0 Corporate & Other (a) 7.1 6.6 24.2 12.2 Total Net Sales 389.3 413.5 783.5 824.2 Operating Profit S&IP 25.5 41.2 45.0 81.3 Medical Devices 33.3 24.8 58.1 56.2 Corporate & Other (b) (36.0 ) (71.7 ) (51.4 ) (82.0 ) Other income, net (c) (0.7 ) 1.2 11.3 1.7 Total Operating Profit 22.1 (4.5 ) 63.0 57.2 Interest income 0.1 0.9 0.2 1.9 Interest expense (8.9 ) — (17.2 ) — Income before Income Taxes $ 13.3 $ (3.6 ) $ 46.0 $ 59.1 _________________________________________________ (a) Corporate and Other net sales include sales of non-healthcare products to Kimberly-Clark. (b) Corporate and Other for the three and six months ended June 30, 2015 includes $20 million and $30 million , respectively, of post-spin related transition expenses. Corporate and Other for the three and six months ended June 30, 2014 includes $19 million and $26 million , respectively, of spin-off related transaction costs and $49 million of costs related to the exit from one of our disposable glove facilities in Thailand. (c) Other income, net for the six months ended June 30, 2015 includes a $12 million net gain on the disposal of one of our disposable glove facilities in Thailand.

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Schedule of expenses allocations from Kimberly-Clark	The total amount of these allocations from Kimberly-Clark was approximately as follows (in millions): Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Cost of products sold $ 6 $ 12 Selling and general expenses 15 31 Research expenses 2 5 Total $ 23 $ 48

Supplemental Guarantor Financ30

Supplemental Guarantor Financial Information (Tables)	6 Months Ended
	Jun. 30, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Consolidating Income and Comprehensive Income Statements	HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING INCOME AND COMPREHENSIVE INCOME STATEMENTS (In millions) (Unaudited) Three Months Ended June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 364.6 $ 113.5 $ (88.8 ) $ 389.3 Cost of products sold — 247.0 96.2 (88.8 ) 254.4 Gross Profit — 117.6 17.3 — 134.9 Research and development expenses — 6.3 — — 6.3 Selling and general expenses 9.1 81.1 15.6 — 105.8 Other (income) and expense, net (0.2 ) 2.5 (1.6 ) — 0.7 Operating (Loss) Profit (8.9 ) 27.7 3.3 — 22.1 Interest income 0.3 — 1.7 (1.9 ) 0.1 Interest expense (10.0 ) (0.7 ) (0.1 ) 1.9 (8.9 ) (Loss) Income Before Income Taxes (18.6 ) 27.0 4.9 — 13.3 Benefit from (Provision for) income taxes 13.4 (18.7 ) — — (5.3 ) Equity in earnings of consolidated subsidiaries 13.2 2.9 — (16.1 ) — Net Income 8.0 11.2 4.9 (16.1 ) 8.0 Total other comprehensive loss, net of tax — (0.2 ) (3.1 ) — (3.3 ) Comprehensive Income $ 8.0 $ 11.0 $ 1.8 $ (16.1 ) $ 4.7 HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED COMBINED CONSOLIDATING INCOME AND COMPREHENSIVE INCOME STATEMENTS (In millions) (Unaudited) Three Months Ended June 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated and Combined Net Sales $ — $ 352.3 $ 163.0 $ (101.8 ) $ 413.5 Cost of products sold — 237.3 173.1 (101.8 ) 308.6 Gross Profit (Loss) — 115.0 (10.1 ) — 104.9 Research and development expenses — 9.3 — — 9.3 Selling and general expenses — 87.3 14.0 — 101.3 Other income, net — (0.3 ) (0.9 ) — (1.2 ) Operating Profit (Loss) — 18.7 (23.2 ) — (4.5 ) Interest income — 0.9 — — 0.9 Income (Loss) Before Income Taxes — 19.6 (23.2 ) — (3.6 ) Benefit from (Provision for) income taxes — (6.8 ) 5.9 — (0.9 ) Equity in earnings of consolidated subsidiaries (4.5 ) (47.8 ) — 52.3 — Net Loss (4.5 ) (35.0 ) (17.3 ) 52.3 (4.5 ) Total other comprehensive income, net of tax — 0.8 2.2 — 3.0 Comprehensive Loss $ (4.5 ) $ (34.2 ) $ (15.1 ) $ 52.3 $ (1.5 ) HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING INCOME AND COMPREHENSIVE INCOME STATEMENTS (In millions) (Unaudited) Six Months Ended June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ — $ 724.9 $ 227.2 $ (168.6 ) $ 783.5 Cost of products sold — 490.6 194.5 (168.6 ) 516.5 Gross Profit — 234.3 32.7 — 267.0 Research and development expenses — 12.3 — — 12.3 Selling and general expenses 18.2 154.3 30.5 — 203.0 Other (income) and expense, net (0.4 ) 4.8 (15.7 ) — (11.3 ) Operating (Loss) Profit (17.8 ) 62.9 17.9 — 63.0 Interest income 0.3 — 1.8 (1.9 ) 0.2 Interest expense (17.8 ) (1.0 ) (0.3 ) 1.9 (17.2 ) (Loss) Income Before Income Taxes (35.3 ) 61.9 19.4 — 46.0 Benefit from (Provision for) income taxes 13.4 (24.2 ) (5.5 ) — (16.3 ) Equity in earnings of consolidated subsidiaries 51.6 16.1 — (67.7 ) — Net Income 29.7 53.8 13.9 (67.7 ) 29.7 Total other comprehensive loss, net of tax — (0.3 ) (9.5 ) — (9.8 ) Comprehensive Income $ 29.7 $ 53.5 $ 4.4 $ (67.7 ) $ 19.9 HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED COMBINED CONSOLIDATING INCOME AND COMPREHENSIVE INCOME STATEMENTS (In millions) (Unaudited) Six Months Ended June 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated and Combined Net Sales $ — $ 704.5 $ 321.2 $ (201.5 ) $ 824.2 Cost of products sold — 471.0 294.8 (201.5 ) 564.3 Gross Profit — 233.5 26.4 — 259.9 Research and development expenses — 17.6 — — 17.6 Selling and general expenses — 159.0 27.8 — 186.8 Other income, net — (0.6 ) (1.1 ) — (1.7 ) Operating Profit (Loss) — 57.5 (0.3 ) — 57.2 Interest income — 1.7 0.2 — 1.9 Income (Loss) Before Income Taxes — 59.2 (0.1 ) — 59.1 Provision for income taxes — (22.1 ) (0.1 ) — (22.2 ) Equity in earnings of consolidated subsidiaries (4.5 ) (33.4 ) — 37.9 — Net (Loss) Income (4.5 ) 3.7 (0.2 ) 37.9 36.9 Total other comprehensive income, net of tax — 1.5 6.5 — 8.0 Comprehensive (Loss) Income $ (4.5 ) $ 5.2 $ 6.3 $ 37.9 $ 44.9
Condensed Consolidating Balance Sheets	HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS (In millions) (Unaudited) As of June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 93.6 $ 0.3 $ 20.4 $ — $ 114.3 Accounts receivable, net 3.3 375.6 215.9 (394.7 ) 200.1 Inventories — 280.9 43.0 — 323.9 Current deferred income taxes and other current assets 7.0 6.1 1.7 — 14.8 Total Current Assets 103.9 662.9 281.0 (394.7 ) 653.1 Property, Plant and Equipment, Net — 228.7 57.3 — 286.0 Investment in Consolidated Subsidiaries 2,220.0 268.7 — (2,488.7 ) — Goodwill — 1,373.6 49.2 — 1,422.8 Other Intangible Assets — 95.4 — — 95.4 Other Assets 7.4 2.4 18.4 — 28.2 TOTAL ASSETS $ 2,331.3 $ 2,631.7 $ 405.9 $ (2,883.4 ) $ 2,485.5 LIABILITIES AND EQUITY Current Liabilities Trade accounts payable $ 218.3 $ 335.8 $ 41.2 $ (394.7 ) $ 200.6 Accrued expenses 5.2 95.2 23.0 — 123.4 Total Current Liabilities 223.5 431.0 64.2 (394.7 ) 324.0 Long-Term Debt 585.8 — — — 585.8 Other Long-Term Liabilities 0.2 47.4 6.3 — 53.9 Total Liabilities 809.5 478.4 70.5 (394.7 ) 963.7 Total Equity 1,521.8 2,153.3 335.4 (2,488.7 ) 1,521.8 TOTAL LIABILITIES AND EQUITY $ 2,331.3 $ 2,631.7 $ 405.9 $ (2,883.4 ) $ 2,485.5 HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED COMBINED CONSOLIDATING BALANCE SHEETS (In millions) (Unaudited) As of December 31, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated and Combined ASSETS Current Assets Cash and cash equivalents $ 101.2 $ 3.9 $ 43.9 $ — $ 149.0 Accounts receivable, net 45.4 366.4 229.8 (407.7 ) 233.9 Inventories — 244.1 39.0 — 283.1 Current deferred income taxes and other current assets 5.4 12.5 1.0 — 18.9 Total Current Assets 152.0 626.9 313.7 (407.7 ) 684.9 Property, Plant and Equipment, Net — 216.7 61.1 — 277.8 Assets Held for Sale — — 2.6 — 2.6 Investment in Consolidated Subsidiaries 2,144.6 241.6 — (2,386.2 ) — Goodwill — 1,373.6 52.5 — 1,426.1 Other Intangible Assets — 108.3 — — 108.3 Other Assets 10.1 0.2 17.6 — 27.9 TOTAL ASSETS $ 2,306.7 $ 2,567.3 $ 447.5 $ (2,793.9 ) $ 2,527.6 LIABILITIES AND EQUITY Current Liabilities Debt payable within one year $ 3.9 $ — $ — $ — $ 3.9 Trade accounts payable 165.2 325.6 85.6 (407.7 ) 168.7 Accrued expenses 12.6 137.4 33.4 — 183.4 Total Current Liabilities 181.7 463.0 119.0 (407.7 ) 356.0 Long-Term Debt 632.3 — — — 632.3 Other Long-Term Liabilities 1.5 42.2 4.4 — 48.1 Total Liabilities 815.5 505.2 123.4 (407.7 ) 1,036.4 Total Equity 1,491.2 2,062.1 324.1 (2,386.2 ) 1,491.2 TOTAL LIABILITIES AND EQUITY $ 2,306.7 $ 2,567.3 $ 447.5 $ (2,793.9 ) $ 2,527.6
Condensed Consolidating Statements of Cash Flows	HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Six Months Ended June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Operating Activities Cash (Used in) Provided by Operating Activities $ (18.9 ) $ 22.4 $ 52.2 $ — $ 55.7 Investing Activities Capital expenditures — (39.1 ) (6.1 ) — (45.2 ) Proceeds from property dispositions — — 7.7 — 7.7 Cash (Used in) Provided by Investing Activities — (39.1 ) 1.6 — (37.5 ) Financing Activities Intercompany contributions 62.4 13.2 (75.6 ) — — Debt repayments (51.0 ) — — — (51.0 ) Purchase of treasury stock (1.0 ) — — — (1.0 ) Proceeds from the exercise of stock options 0.9 — — — 0.9 Cash Provided by (Used in) Financing Activities 11.3 13.2 (75.6 ) — (51.1 ) Effect of Exchange Rate on Cash and Cash Equivalents — (0.1 ) (1.7 ) — (1.8 ) Decrease in Cash and Cash Equivalents (7.6 ) (3.6 ) (23.5 ) — (34.7 ) Cash and Cash Equivalents, Beginning of Period 101.2 3.9 43.9 — 149.0 Cash and Cash Equivalents, End of Period $ 93.6 $ 0.3 $ 20.4 $ — $ 114.3 HALYARD HEALTH, INC. AND SUBSIDIARIES CONDENSED COMBINED CONSOLIDATING STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Six Months Ended June 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated and Combined Operating Activities Cash Provided by Operating Activities $ — $ 38.4 $ 45.3 $ — $ 83.7 Investing Activities Capital expenditures — (23.5 ) (4.5 ) — (28.0 ) Cash Used in Investing Activities — (23.5 ) (4.5 ) — (28.0 ) Financing Activities Debt proceeds — — 1.3 — 1.3 Debt repayments — (2.9 ) — — (2.9 ) Change in Kimberly-Clark's net investment — (12.2 ) (38.8 ) — (51.0 ) Other — 1.8 — — 1.8 Cash Used in Financing Activities — (13.3 ) (37.5 ) — (50.8 ) Effect of Exchange Rate on Cash and Cash Equivalents — (0.1 ) (0.4 ) — (0.5 ) Increase in Cash and Cash Equivalents — 1.5 2.9 — 4.4 Cash and Cash Equivalents, Beginning of Period — 3.1 41.0 — 44.1 Cash and Cash Equivalents, End of Period $ — $ 4.6 $ 43.9 $ — $ 48.5

Accounting Policies (Details)

Accounting Policies (Details) $ in Millions	6 Months Ended
	Jun. 30, 2015	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of business segments	2
Adjustments for New Accounting Pronouncement | Forecasted
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclassification of debt issuance costs		$ 9	$ 9

Spin-Off Transition Costs (Deta

Spin-Off Transition Costs (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
Deposit received on pending sale of assets		$ 0		$ 0		$ 7.8
Net book value of disposable glove facility		0		$ 0		2.6
Proceeds from sale of disposable glove facility	$ 8
Duration of royalty agreement, in months				24 months
Spin-off
Restructuring Cost and Reserve [Line Items]
Restructuring charges		$ 20	$ 19	$ 30	$ 26
Disposable glove facilities, Thailand
Restructuring Cost and Reserve [Line Items]
Deposit received on pending sale of assets						8
Net book value of disposable glove facility						$ 3
Restructuring charges			49		49
Disposable glove facilities, Thailand | Asset impairment charge
Restructuring Cost and Reserve [Line Items]
Restructuring charges			42		42
Disposable glove facilities, Thailand | Workforce reduction costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 7		$ 7
Disposable glove facilities, Thailand | S&IP
Restructuring Cost and Reserve [Line Items]
Net gain on sale of disposable glove facility				$ 12

Supplemental Balance Sheet In33

Supplemental Balance Sheet Information - Accounts Receivable (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts receivable	$ 201.4	$ 234.9
Allowance for sales discounts and doubtful accounts	(1.3)	(1)
Accounts receivable, net	$ 200.1	$ 233.9

Supplemental Balance Sheet In34

Supplemental Balance Sheet Information - Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
LIFO
Raw materials	$ 52.7	$ 48.4
Work in process	52.5	47.7
Finished goods	179.5	157.8
Supplies and other	0	0
Inventory, gross	284.7	253.9
Excess of FIFO or weighted-average cost over LIFO cost	(17.2)	(21.7)
Inventories, net	267.5	232.2
Non- LIFO
Raw materials	0.7	1.3
Work in process	0.7	0.3
Finished goods	42.8	37.5
Supplies and other	12.2	11.8
Inventory, gross	56.4	50.9
Inventories, net	56.4	50.9
Total
Raw materials	53.4	49.7
Work in process	53.2	48
Finished goods	222.3	195.3
Supplies and other	12.2	11.8
Inventory, gross	341.1	304.8
Excess of FIFO or weighted-average cost over LIFO cost	(17.2)	(21.7)
Inventories, net	$ 323.9	$ 283.1

Supplemental Balance Sheet In35

Supplemental Balance Sheet Information - Property, Plant and Equipment (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 594.1		$ 594.1		$ 568.7
Less accumulated depreciation	(308.1)		(308.1)		(290.9)
Total	286		286		277.8
Depreciation expense	9	$ 10	19	$ 19
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2.2		2.2		2.3
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	84.3		84.3		67.9
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	461.2		461.2		436.3
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 46.4		$ 46.4		$ 62.2

Supplemental Balance Sheet In36

Supplemental Balance Sheet Information - Goodwill (Details) $ in Millions	6 Months Ended
	Jun. 30, 2015USD ($)
Goodwill [Roll Forward]
Balance at beginning of period	$ 1,426.1
Currency translation adjustment	(3.3)
Balance at end of period	1,422.8
S&IP
Goodwill [Roll Forward]
Balance at beginning of period	744.5
Currency translation adjustment	(1.9)
Balance at end of period	742.6
Medical Devices
Goodwill [Roll Forward]
Balance at beginning of period	681.6
Currency translation adjustment	(1.4)
Balance at end of period	$ 680.2

Supplemental Balance Sheet In37

Supplemental Balance Sheet Information - Intangible Assets with Indefinite Useful Lives (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
In-process research and development
Indefinite-lived Intangible Assets [Line Items]
Intangible assets with indefinite useful lives	$ 7	$ 7

Supplemental Balance Sheet In38

Supplemental Balance Sheet Information - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 324		$ 324		$ 324
Accumulated Amortization	(235.3)		(235.3)		(222.4)
Net Carrying Amount	88.7		88.7		101.6
Amortization expense for intangible assets	6	$ 8	13	$ 16
Trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	126.5		126.5		126.6
Accumulated Amortization	(88.3)		(88.3)		(86.1)
Net Carrying Amount	38.2		38.2		40.5
Patents and acquired technologies
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	149.1		149.1		149.1
Accumulated Amortization	(108.3)		(108.3)		(99.3)
Net Carrying Amount	40.8		40.8		49.8
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	48.4		48.4		48.3
Accumulated Amortization	(38.7)		(38.7)		(37)
Net Carrying Amount	$ 9.7		$ 9.7		$ 11.3

Supplemental Balance Sheet In39

Supplemental Balance Sheet Information - Estimated Amortization Expense (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
2,015	$ 12.5
2,016	20.2
2,017	14.9
2,018	11.1
2,019	6.9
Thereafter	23.1
Net Carrying Amount	$ 88.7	$ 101.6

Supplemental Balance Sheet In40

Supplemental Balance Sheet Information - Accrued Expenses (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued rebates	$ 66.9	$ 82.2
Accrued salaries and wages	25.3	46.4
Accrued taxes - income and other	12.6	23.4
Deposit received on pending sale of assets	0	7.8
Other	18.6	23.6
Total	$ 123.4	$ 183.4

Supplemental Balance Sheet In41

Supplemental Balance Sheet Information - Other Long-Term Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred income taxes	$ 29.2	$ 27.9
Taxes payable	1.6	1.6
Other	23.1	18.6
Total	$ 53.9	$ 48.1

Long-Term Debt - Schedule of De

Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Total long-term debt	$ 585.8	$ 636.2
Less debt payable within one year	0	3.9
Long-term portion	$ 585.8	632.3
Senior Secured Term Loan | Term loan facility
Debt Instrument [Line Items]
Weighted-Average Interest Rate	4.00%
Total long-term debt	$ 335.8	386.2
Senior Unsecured Notes | 6.25% Senior Notes
Debt Instrument [Line Items]
Weighted-Average Interest Rate	6.25%
Total long-term debt	$ 250	$ 250

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - USD ($)	Apr. 30, 2015	Jun. 30, 2015	Jun. 30, 2015
Debt Instrument [Line Items]
Write-off of related debt issuance costs and original issue discount		$ 1,000,000
Senior Secured Term Loan | Term loan facility
Debt Instrument [Line Items]
Weighted-average interest rate		4.00%	4.00%
Principal repayments on senior secured term loan	$ 50,000,000
6.25% Senior Notes | Senior Unsecured Notes
Debt Instrument [Line Items]
Weighted-average interest rate		6.25%	6.25%
Credit Facility | Revolving credit facility
Debt Instrument [Line Items]
Unused capacity, commitment fee percentage			0.40%
Consolidated total leverage ratio		2.25	2.25
Credit Facility | Revolving credit facility | Leverage Ratio, Less than 2.25
Debt Instrument [Line Items]
Unused capacity, commitment fee percentage			0.25%
Credit Facility | Revolving credit facility | Base rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate			0.75%
Credit Facility | Revolving credit facility | Base rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate			1.50%
Credit Facility | Revolving credit facility | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate			1.75%
Credit Facility | Revolving credit facility | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate			2.50%
Credit Facility | Secured line of credit
Debt Instrument [Line Items]
Borrowing capacity		$ 640,000,000	$ 640,000,000
Credit Facility | Secured line of credit | Revolving credit facility
Debt Instrument [Line Items]
Borrowing capacity		250,000,000	$ 250,000,000
Term of credit facility			5 years
Credit Facility | Secured line of credit | Letter of credit
Debt Instrument [Line Items]
Borrowing capacity		75,000,000	$ 75,000,000
Credit Facility | Secured line of credit | Swingline sub-facility
Debt Instrument [Line Items]
Borrowing capacity		25,000,000	25,000,000
Credit Facility | Secured line of credit | Term loan facility
Debt Instrument [Line Items]
Borrowing capacity		390,000,000	$ 390,000,000
Term of credit facility			7 years
Credit Facility | Senior Secured Term Loan | Revolving credit facility
Debt Instrument [Line Items]
Amount outstanding		0	$ 0
Amount available for borrowing		247,000,000	247,000,000
Credit Facility | Senior Secured Term Loan | Letter of credit
Debt Instrument [Line Items]
Amount outstanding		$ 3,000,000	$ 3,000,000
Credit Facility | Scenario 1 | Revolving credit facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate			2.25%
Credit Facility | Scenario 2 | Revolving credit facility | Base rate
Debt Instrument [Line Items]
Basis spread on variable rate			1.25%
Term loan facility | Senior Secured Term Loan | Revolving credit facility
Debt Instrument [Line Items]
Quarterly amortization payments			0.25%
Effective interest rate		4.00%	4.00%
Term loan facility | Scenario 1 | Senior Secured Term Loan | Revolving credit facility | Base rate
Debt Instrument [Line Items]
Interest rate floor			0.75%
Term loan facility | Scenario 1 | Senior Secured Term Loan | Revolving credit facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate			3.25%
Term loan facility | Scenario 2 | Senior Secured Term Loan | Revolving credit facility | U.S. federal funds effective rate
Debt Instrument [Line Items]
Basis spread on variable rate			0.50%
Term loan facility | Scenario 3 | Senior Secured Term Loan | Revolving credit facility | Base rate
Debt Instrument [Line Items]
Basis spread on variable rate			2.25%
Term loan facility | Scenario 3 | Senior Secured Term Loan | Revolving credit facility | One month LIBOR Rate
Debt Instrument [Line Items]
Basis spread on variable rate			1.00%

Derivative Financial Instrume44

Derivative Financial Instruments (Details) - Foreign exchange contracts - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Undesignated hedging instruments
Derivative [Line Items]
Aggregate notional amount	$ 89
Cash flow hedges | Designated as hedging instrument
Derivative [Line Items]
Aggregate notional amount	40
Fair Value Hierarchy Level 2
Derivative [Line Items]
Derivative liabilities	$ 1	$ 1

Fair Value Information (Details

Fair Value Information (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Fair Value Hierarchy Level 1 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 114.3	$ 149
Fair Value Hierarchy Level 1 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	114.3	149
Fair Value Hierarchy Level 2 | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	585.8	636.2
Fair Value Hierarchy Level 2 | Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	603.6	644
Foreign exchange contracts | Fair Value Hierarchy Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities	$ 1	$ 1

Accumulated Other Comprehensi46

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Equity [Abstract]
Unrealized translation	$ (3)	$ 1.2	$ (9.8)	$ 3.8
Defined benefit pension plans	0.1	0	0.1	0
Cash flow hedges	(0.8)	2.1	(0.3)	5
Other comprehensive income (loss), before tax	(3.7)	3.3	(10)	8.8
Tax effect	0.4	(0.3)	0.2	(0.8)
Total Other Comprehensive (Loss) Income, Net of Tax	$ (3.3)	$ 3	$ (9.8)	$ 8

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 6		$ 11
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	3		4
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 3		$ 7
Kimberly-Clark Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 1		$ 2

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Options (Details) - Jun. 30, 2015 - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	Total
Shares
Beginning of the period (in shares)	611
Granted (in shares)	628
Exercises (in shares)	(30)
Forfeitures (in shares)	(44)
End of the period (in shares)	1,165
Shares exercisable at end of period (in shares)	219
Weighted- Average Exercise Price
Beginning of the period (usd per share)	$ 34.94
Granted (usd per share)	45.52
Exercises (usd per share)	30.84
Forfeitures (usd per share)	35.52
End of the period (usd per share)	40.65
Weighted-Average Exercise Price, exercisable at end of period (usd per share)	$ 33.12
Weighted- Average Remaining Contractual Term, outstanding at end of period (term)	9 years 1 month 6 days
Weighted-Average Remaining Contractual Term, exercisable at end of period (term)	7 years 8 months 15 days
Aggregate Intrinsic Value, outstanding at end of period	$ 2.9
Aggregate Intrinsic Value, exercisable at end of period	$ 1.6

Stock-Based Compensation - Opti

Stock-Based Compensation - Options Outstanding, By Exercise Price Range (Details) - Jun. 30, 2015 - $ / shares shares in Thousands	Total
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding (in shares)	1,165
Weighted- Average Remaining Contractual Term	9 years 1 month 6 days
Stock Options Exercisable (in shares)	219
Stock Options Exercisable, Weighted-Average Exercise Price (usd per share)	$ 33.12
$25 to $35
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, minimum	25
Range of Exercise Prices, maximum	$ 35
Options Outstanding (in shares)	223
Weighted- Average Remaining Contractual Term	7 years 4 months 26 days
Stock Options Exercisable (in shares)	133
Stock Options Exercisable, Weighted-Average Exercise Price (usd per share)	$ 29.93
$35 to $45
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, minimum	35
Range of Exercise Prices, maximum	$ 45
Options Outstanding (in shares)	323
Weighted- Average Remaining Contractual Term	8 years 11 months
Stock Options Exercisable (in shares)	80
Stock Options Exercisable, Weighted-Average Exercise Price (usd per share)	$ 37.45
$45 plus
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, minimum	$ 45
Options Outstanding (in shares)	619
Weighted- Average Remaining Contractual Term	9 years 9 months 22 days
Stock Options Exercisable (in shares)	6
Stock Options Exercisable, Weighted-Average Exercise Price (usd per share)	$ 45.53

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Share Units (Details) - Jun. 30, 2015 - Restricted Stock Units - $ / shares shares in Thousands	Total
Shares
Beginning of the period (in shares)	375
Granted (in shares)	213
Exercises (in shares)	(60)
Forfeitures (in shares)	(18)
End of the period (in shares)	510
Vested at end of the period (in shares)	27
Weighted- Average Fair Value
Beginning of the period (usd per share)	$ 37.88
Granted (usd per share)	45.59
Exercises (usd per share)	38.30
Forfeitures (usd per share)	38.95
End of the period (usd per share)	41.02
Vested at end of the period	$ 44.32

Earnings Per Share ("EPS") (Det

Earnings Per Share ("EPS") (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Net income (loss)	$ 8	$ (4.5)	$ 29.7	$ 36.9
Weighted Average Shares Outstanding:
Basic weighted average shares outstanding (in shares)	46.6	46.5	46.6	46.5
Dilutive effect of stock options and restricted share unit awards (in shares)	0.2	0	0.2	0
Diluted weighted average shares outstanding (in shares)	46.8	46.5	46.8	46.5
Earnings Per Share, Basic (usd per share)	$ 0.17	$ (0.10)	$ 0.64	$ 0.79
Earnings Per Share, Diluted (usd per share)	$ 0.17	$ (0.10)	$ 0.63	$ 0.79

Business Segment Information (D

Business Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net Sales
Net Sales	$ 389.3	$ 413.5	$ 783.5	$ 824.2
Operating Profit
Operating Profit	22.1	(4.5)	63	57.2
Other income, net	(0.7)	1.2	11.3	1.7
Interest income	0.1	0.9	0.2	1.9
Interest expense	(8.9)	0	(17.2)	0
Income before Income Taxes	13.3	(3.6)	46	59.1
Selling and general expenses	105.8	101.3	203	186.8
Disposable glove facilities, Thailand
Operating Profit
Restructuring charges		49		49
Spin-off
Operating Profit
Restructuring charges	20	19	30	26
S&IP | Manufacturing footprint strategic changes
Operating Profit
Selling and general expenses		49		49
S&IP | Disposable glove facilities, Thailand
Operating Profit
Net gain on sale of disposable glove facility			12
Operating segments | S&IP
Net Sales
Net Sales	255.3	285.5	510.1	561
Operating Profit
Operating Profit	25.5	41.2	45	81.3
Operating segments | Medical Devices
Net Sales
Net Sales	126.9	121.4	249.2	251
Operating Profit
Operating Profit	33.3	24.8	58.1	56.2
Corporate & Other
Net Sales
Net Sales	7.1	6.6	24.2	12.2
Operating Profit
Operating Profit	$ (36)	$ (71.7)	$ (51.4)	$ (82)

Related Party Transactions (Det

Related Party Transactions (Details) - Jun. 30, 2014 - Kimberly Clark and Affiliates - Affiliated entity - USD ($) $ in Millions	Total	Total
Related Party Transaction [Line Items]
Allocated expenses	$ 23	$ 48
Cost of products sold
Related Party Transaction [Line Items]
Allocated expenses	6	12
Selling and general expenses
Related Party Transaction [Line Items]
Allocated expenses	15	31
Research expenses
Related Party Transaction [Line Items]
Allocated expenses	$ 2	$ 5

Supplemental Guarantor Financ54

Supplemental Guarantor Financial Information - Additional Information (Details)	6 Months Ended
	Jun. 30, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Ownership percentage	100.00%

Supplemental Guarantor Financ55

Supplemental Guarantor Financial Information - Condensed Consolidating Income and Comprehensive Income Statements (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Income Statements, Captions [Line Items]
Net Sales	$ 389.3	$ 413.5	$ 783.5	$ 824.2
Cost of products sold	254.4	308.6	516.5	564.3
Gross Profit (Loss)	134.9	104.9	267	259.9
Research and development expenses	6.3	9.3	12.3	17.6
Selling and general expenses	105.8	101.3	203	186.8
Other (income) and expense, net	0.7	(1.2)	(11.3)	(1.7)
Operating (Loss) Profit	22.1	(4.5)	63	57.2
Interest income	0.1	0.9	0.2	1.9
Interest expense	(8.9)	0	(17.2)	0
(Loss) Income Before Income Taxes	13.3	(3.6)	46	59.1
Benefit from (Provision for) income taxes	(5.3)	(0.9)	(16.3)	(22.2)
Equity in earnings of consolidated subsidiaries	0	0	0	0
Net Income (Loss)	8	(4.5)	29.7	36.9
Total other comprehensive income (loss), net of tax	(3.3)	3	(9.8)	8
Comprehensive (Loss) Income	4.7	(1.5)	19.9	44.9
Eliminations
Condensed Income Statements, Captions [Line Items]
Net Sales	(88.8)	(101.8)	(168.6)	(201.5)
Cost of products sold	(88.8)	(101.8)	(168.6)	(201.5)
Gross Profit (Loss)	0	0	0	0
Research and development expenses	0	0	0	0
Selling and general expenses	0	0	0	0
Other (income) and expense, net	0	0	0	0
Operating (Loss) Profit	0	0	0	0
Interest income	(1.9)	0	(1.9)	0
Interest expense	1.9		1.9
(Loss) Income Before Income Taxes	0	0	0	0
Benefit from (Provision for) income taxes	0	0	0	0
Equity in earnings of consolidated subsidiaries	(16.1)	52.3	(67.7)	37.9
Net Income (Loss)	(16.1)	52.3	(67.7)	37.9
Total other comprehensive income (loss), net of tax	0	0	0	0
Comprehensive (Loss) Income	(16.1)	52.3	(67.7)	37.9
Parent
Condensed Income Statements, Captions [Line Items]
Net Sales	0	0	0	0
Cost of products sold	0	0	0	0
Gross Profit (Loss)	0	0	0	0
Research and development expenses	0	0	0	0
Selling and general expenses	9.1	0	18.2	0
Other (income) and expense, net	(0.2)	0	(0.4)	0
Operating (Loss) Profit	(8.9)	0	(17.8)	0
Interest income	0.3	0	0.3	0
Interest expense	(10)		(17.8)
(Loss) Income Before Income Taxes	(18.6)	0	(35.3)	0
Benefit from (Provision for) income taxes	13.4	0	13.4	0
Equity in earnings of consolidated subsidiaries	13.2	(4.5)	51.6	(4.5)
Net Income (Loss)	8	(4.5)	29.7	(4.5)
Total other comprehensive income (loss), net of tax	0	0	0	0
Comprehensive (Loss) Income	8	(4.5)	29.7	(4.5)
Guarantor Subsidiaries
Condensed Income Statements, Captions [Line Items]
Net Sales	364.6	352.3	724.9	704.5
Cost of products sold	247	237.3	490.6	471
Gross Profit (Loss)	117.6	115	234.3	233.5
Research and development expenses	6.3	9.3	12.3	17.6
Selling and general expenses	81.1	87.3	154.3	159
Other (income) and expense, net	2.5	(0.3)	4.8	(0.6)
Operating (Loss) Profit	27.7	18.7	62.9	57.5
Interest income	0	0.9	0	1.7
Interest expense	(0.7)		(1)
(Loss) Income Before Income Taxes	27	19.6	61.9	59.2
Benefit from (Provision for) income taxes	(18.7)	(6.8)	(24.2)	(22.1)
Equity in earnings of consolidated subsidiaries	2.9	(47.8)	16.1	(33.4)
Net Income (Loss)	11.2	(35)	53.8	3.7
Total other comprehensive income (loss), net of tax	(0.2)	0.8	(0.3)	1.5
Comprehensive (Loss) Income	11	(34.2)	53.5	5.2
Non-Guarantor Subsidiaries
Condensed Income Statements, Captions [Line Items]
Net Sales	113.5	163	227.2	321.2
Cost of products sold	96.2	173.1	194.5	294.8
Gross Profit (Loss)	17.3	(10.1)	32.7	26.4
Research and development expenses	0	0	0	0
Selling and general expenses	15.6	14	30.5	27.8
Other (income) and expense, net	(1.6)	(0.9)	(15.7)	(1.1)
Operating (Loss) Profit	3.3	(23.2)	17.9	(0.3)
Interest income	1.7	0	1.8	0.2
Interest expense	(0.1)		(0.3)
(Loss) Income Before Income Taxes	4.9	(23.2)	19.4	(0.1)
Benefit from (Provision for) income taxes	0	5.9	(5.5)	(0.1)
Equity in earnings of consolidated subsidiaries	0	0	0	0
Net Income (Loss)	4.9	(17.3)	13.9	(0.2)
Total other comprehensive income (loss), net of tax	(3.1)	2.2	(9.5)	6.5
Comprehensive (Loss) Income	$ 1.8	$ (15.1)	$ 4.4	$ 6.3

Supplemental Guarantor Financ56

Supplemental Guarantor Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Current Assets
Cash and cash equivalents	$ 114.3	$ 149	$ 48.5	$ 44.1
Accounts receivable, net	200.1	233.9
Inventories	323.9	283.1
Current deferred income taxes and other current assets	14.8	18.9
Total Current Assets	653.1	684.9
Property, Plant and Equipment, Net	286	277.8
Assets Held for Sale	0	2.6
Investment in Consolidated Subsidiaries	0	0
Goodwill	1,422.8	1,426.1
Other Intangible Assets	95.4	108.3
Other Assets	28.2	27.9
TOTAL ASSETS	2,485.5	2,527.6
Current Liabilities
Debt payable within one year	0	3.9
Trade accounts payable	200.6	168.7
Accrued expenses	123.4	183.4
Total Current Liabilities	324	356
Long-Term Debt	585.8	632.3
Other Long-Term Liabilities	53.9	48.1
Total Liabilities	963.7	1,036.4
Total Equity	1,521.8	1,491.2
TOTAL LIABILITIES AND EQUITY	2,485.5	2,527.6
Eliminations
Current Assets
Cash and cash equivalents	0	0	0	0
Accounts receivable, net	(394.7)	(407.7)
Inventories	0	0
Current deferred income taxes and other current assets	0	0
Total Current Assets	(394.7)	(407.7)
Property, Plant and Equipment, Net	0	0
Assets Held for Sale		0
Investment in Consolidated Subsidiaries	(2,488.7)	(2,386.2)
Goodwill	0	0
Other Intangible Assets	0	0
Other Assets	0	0
TOTAL ASSETS	(2,883.4)	(2,793.9)
Current Liabilities
Debt payable within one year		0
Trade accounts payable	(394.7)	(407.7)
Accrued expenses	0	0
Total Current Liabilities	(394.7)	(407.7)
Long-Term Debt	0	0
Other Long-Term Liabilities	0	0
Total Liabilities	(394.7)	(407.7)
Total Equity	(2,488.7)	(2,386.2)
TOTAL LIABILITIES AND EQUITY	(2,883.4)	(2,793.9)
Parent
Current Assets
Cash and cash equivalents	93.6	101.2	0	0
Accounts receivable, net	3.3	45.4
Inventories	0	0
Current deferred income taxes and other current assets	7	5.4
Total Current Assets	103.9	152
Property, Plant and Equipment, Net	0	0
Assets Held for Sale		0
Investment in Consolidated Subsidiaries	2,220	2,144.6
Goodwill	0	0
Other Intangible Assets	0	0
Other Assets	7.4	10.1
TOTAL ASSETS	2,331.3	2,306.7
Current Liabilities
Debt payable within one year		3.9
Trade accounts payable	218.3	165.2
Accrued expenses	5.2	12.6
Total Current Liabilities	223.5	181.7
Long-Term Debt	585.8	632.3
Other Long-Term Liabilities	0.2	1.5
Total Liabilities	809.5	815.5
Total Equity	1,521.8	1,491.2
TOTAL LIABILITIES AND EQUITY	2,331.3	2,306.7
Guarantor Subsidiaries
Current Assets
Cash and cash equivalents	0.3	3.9	4.6	3.1
Accounts receivable, net	375.6	366.4
Inventories	280.9	244.1
Current deferred income taxes and other current assets	6.1	12.5
Total Current Assets	662.9	626.9
Property, Plant and Equipment, Net	228.7	216.7
Assets Held for Sale		0
Investment in Consolidated Subsidiaries	268.7	241.6
Goodwill	1,373.6	1,373.6
Other Intangible Assets	95.4	108.3
Other Assets	2.4	0.2
TOTAL ASSETS	2,631.7	2,567.3
Current Liabilities
Debt payable within one year		0
Trade accounts payable	335.8	325.6
Accrued expenses	95.2	137.4
Total Current Liabilities	431	463
Long-Term Debt	0	0
Other Long-Term Liabilities	47.4	42.2
Total Liabilities	478.4	505.2
Total Equity	2,153.3	2,062.1
TOTAL LIABILITIES AND EQUITY	2,631.7	2,567.3
Non-Guarantor Subsidiaries
Current Assets
Cash and cash equivalents	20.4	43.9	$ 43.9	$ 41
Accounts receivable, net	215.9	229.8
Inventories	43	39
Current deferred income taxes and other current assets	1.7	1
Total Current Assets	281	313.7
Property, Plant and Equipment, Net	57.3	61.1
Assets Held for Sale		2.6
Investment in Consolidated Subsidiaries	0	0
Goodwill	49.2	52.5
Other Intangible Assets	0	0
Other Assets	18.4	17.6
TOTAL ASSETS	405.9	447.5
Current Liabilities
Debt payable within one year		0
Trade accounts payable	41.2	85.6
Accrued expenses	23	33.4
Total Current Liabilities	64.2	119
Long-Term Debt	0	0
Other Long-Term Liabilities	6.3	4.4
Total Liabilities	70.5	123.4
Total Equity	335.4	324.1
TOTAL LIABILITIES AND EQUITY	$ 405.9	$ 447.5

Supplemental Guarantor Financ57

Supplemental Guarantor Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating Activities
Cash (Used in) Provided by Operating Activities	$ 55.7	$ 83.7
Investing Activities
Capital expenditures	(45.2)	(28)
Proceeds from property dispositions	7.7	0
Cash (Used in) Provided by Investing Activities	(37.5)	(28)
Financing Activities
Intercompany contributions	0
Debt proceeds	0	1.3
Debt repayments	(51)	(2.9)
Purchase of treasury stock	(1)	0
Proceeds from the exercise of stock options	0.9	0
Change in Kimberly-Clark's net investment	0	(51)
Other	0	1.8
Cash Provided by (Used in) Financing Activities	(51.1)	(50.8)
Effect of Exchange Rate on Cash and Cash Equivalents	(1.8)	(0.5)
Decrease (Increase) in Cash and Cash Equivalents	(34.7)	4.4
Cash and Cash Equivalents - Beginning of Period	149	44.1
Cash and Cash Equivalents - End of Period	114.3	48.5
Eliminations
Operating Activities
Cash (Used in) Provided by Operating Activities	0	0
Investing Activities
Capital expenditures	0	0
Proceeds from property dispositions	0
Cash (Used in) Provided by Investing Activities	0	0
Financing Activities
Intercompany contributions	0
Debt proceeds		0
Debt repayments	0	0
Purchase of treasury stock	0
Proceeds from the exercise of stock options	0
Change in Kimberly-Clark's net investment		0
Other		0
Cash Provided by (Used in) Financing Activities	0	0
Effect of Exchange Rate on Cash and Cash Equivalents	0	0
Decrease (Increase) in Cash and Cash Equivalents	0	0
Cash and Cash Equivalents - Beginning of Period	0	0
Cash and Cash Equivalents - End of Period	0	0
Parent
Operating Activities
Cash (Used in) Provided by Operating Activities	(18.9)	0
Investing Activities
Capital expenditures	0	0
Proceeds from property dispositions	0
Cash (Used in) Provided by Investing Activities	0	0
Financing Activities
Intercompany contributions	62.4
Debt proceeds		0
Debt repayments	(51)	0
Purchase of treasury stock	(1)
Proceeds from the exercise of stock options	0.9
Change in Kimberly-Clark's net investment		0
Other		0
Cash Provided by (Used in) Financing Activities	11.3	0
Effect of Exchange Rate on Cash and Cash Equivalents	0	0
Decrease (Increase) in Cash and Cash Equivalents	(7.6)	0
Cash and Cash Equivalents - Beginning of Period	101.2	0
Cash and Cash Equivalents - End of Period	93.6	0
Guarantor Subsidiaries
Operating Activities
Cash (Used in) Provided by Operating Activities	22.4	38.4
Investing Activities
Capital expenditures	(39.1)	(23.5)
Proceeds from property dispositions	0
Cash (Used in) Provided by Investing Activities	(39.1)	(23.5)
Financing Activities
Intercompany contributions	13.2
Debt proceeds		0
Debt repayments	0	(2.9)
Purchase of treasury stock	0
Proceeds from the exercise of stock options	0
Change in Kimberly-Clark's net investment		(12.2)
Other		1.8
Cash Provided by (Used in) Financing Activities	13.2	(13.3)
Effect of Exchange Rate on Cash and Cash Equivalents	(0.1)	(0.1)
Decrease (Increase) in Cash and Cash Equivalents	(3.6)	1.5
Cash and Cash Equivalents - Beginning of Period	3.9	3.1
Cash and Cash Equivalents - End of Period	0.3	4.6
Non-Guarantor Subsidiaries
Operating Activities
Cash (Used in) Provided by Operating Activities	52.2	45.3
Investing Activities
Capital expenditures	(6.1)	(4.5)
Proceeds from property dispositions	7.7
Cash (Used in) Provided by Investing Activities	1.6	(4.5)
Financing Activities
Intercompany contributions	(75.6)
Debt proceeds		1.3
Debt repayments	0	0
Purchase of treasury stock	0
Proceeds from the exercise of stock options	0
Change in Kimberly-Clark's net investment		(38.8)
Other		0
Cash Provided by (Used in) Financing Activities	(75.6)	(37.5)
Effect of Exchange Rate on Cash and Cash Equivalents	(1.7)	(0.4)
Decrease (Increase) in Cash and Cash Equivalents	(23.5)	2.9
Cash and Cash Equivalents - Beginning of Period	43.9	41
Cash and Cash Equivalents - End of Period	$ 20.4	$ 43.9