Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Dec. 31, 2017 | Feb. 02, 2018 | |
Entity Information [Line Items] | ||
Entity Registrant Name | STERIS plc | |
Entity Central Index Key | 1,624,899 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 84,848,063 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 283,844 | $ 282,918 |
Accounts receivable (net of allowances of $11,708 and $10,357 respectively) | 472,060 | 483,451 |
Inventories, net | 219,495 | 197,837 |
Prepaid expenses and other current assets | 57,528 | 53,596 |
Total current assets | 1,032,927 | 1,017,802 |
Property, plant, and equipment, net | 983,841 | 915,908 |
Intangible Assets, Net (Including Goodwill) | 3,102,361 | 2,956,190 |
Other assets | 37,875 | 34,555 |
Total assets | 5,157,004 | 4,924,455 |
Current liabilities: | ||
Accounts payable | 122,107 | 133,479 |
Accrued income taxes | 6,298 | 14,640 |
Accrued payroll and other related liabilities | 72,807 | 78,575 |
Accrued expenses and other | 165,404 | 154,889 |
Total current liabilities | 366,616 | 381,583 |
Long-term indebtedness | 1,420,049 | 1,478,361 |
Deferred income taxes, net | 156,112 | 171,805 |
Other Liabilities, Noncurrent | 96,439 | 82,673 |
Total liabilities | 2,039,216 | 2,114,422 |
Commitments and contingencies (see Note 8) | ||
Preferred shares, with GBP 0.10 par value; 100 shares authorized; 100 issued and outstanding | 15 | 15 |
Common shares, with GBP 0.10 par value; GBP 17,006 shares in the aggregate par amount authorized; 84,908 shares issued; and 84,948 shares outstanding | 2,063,870 | 2,085,134 |
Retained earnings | 1,097,726 | 954,155 |
Accumulated other comprehensive income | (54,983) | (240,702) |
Total shareholders' equity | 3,106,628 | 2,798,602 |
Noncontrolling interest | 11,160 | 11,431 |
Total equity | 3,117,788 | 2,810,033 |
Total liabilities and equity | $ 5,157,004 | $ 4,924,455 |
CONSOLIDATED BALANCE SHEETS (u3
CONSOLIDATED BALANCE SHEETS (unaudited) Consolidated Balance Sheet (Parenthetical) £ in Thousands, $ in Thousands | Dec. 31, 2017GBP (£)£ / sharesshares | Dec. 31, 2017USD ($)shares | Mar. 31, 2017GBP (£)£ / sharesshares | Mar. 31, 2017USD ($)shares |
Allowance for Doubtful Accounts Receivable, Current | $ | $ 11,708 | $ 10,357 | ||
Preferred Stock, Shares Authorized | 100,000 | 100,000 | 100,000 | 100,000 |
Preferred Stock, Shares Issued | 100,000 | 100,000 | 100,000 | 100,000 |
Preferred Stock, Shares Outstanding | 100,000 | 100,000 | 100,000 | 100,000 |
Preferred Stock, Par or Stated Value Per Share | £ / shares | £ 0.10 | £ 0.10 | ||
Common Stock, Shares Authorized | £ | £ 17,006 | £ 17,006 | ||
Common Stock, Shares, Issued | 84,908,000 | 84,908,000 | 84,948,000 | 84,948,000 |
Common Stock, Shares, Outstanding | 84,908,000 | 84,908,000 | 84,948,000 | 84,948,000 |
Common Stock, Par or Stated Value Per Share | £ / shares | £ 0.10 | £ 0.10 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues: | |||||
Product | $ 309,461 | $ 302,260 | $ 869,623 | $ 866,226 | |
Service | 352,439 | 344,514 | 1,034,400 | 1,065,341 | |
Total revenues | 661,900 | 646,774 | 1,904,023 | 1,931,567 | |
Cost of revenues: | |||||
Product | 162,611 | 152,879 | 458,467 | 450,688 | |
Service | 220,701 | 236,286 | 644,086 | 735,372 | |
Total cost of revenues | 383,312 | 389,165 | 1,102,553 | 1,186,060 | |
Gross Profit | 278,588 | 257,609 | 801,470 | 745,507 | |
Operating expenses: | |||||
Selling, general, and administrative | 159,143 | 158,760 | 468,310 | 474,326 | |
Goodwill, Impairment Loss | [1] | 0 | 58,356 | 0 | 58,356 |
Research and development | 15,195 | 14,591 | 43,173 | 43,636 | |
Restructuring Costs | 78 | 18 | 156 | 220 | |
Total operating expenses | 174,416 | 231,725 | 511,639 | 576,538 | |
Income from operations | 104,172 | 25,884 | 289,831 | 168,969 | |
Non-operating expenses, net: | |||||
Interest expense | 12,461 | 10,980 | 37,610 | 32,975 | |
Interest income and miscellaneous expense | (225) | (539) | (1,316) | (1,317) | |
Total non-operating expenses, net | 12,236 | 10,441 | 36,294 | 31,658 | |
Income before income tax expense | 91,936 | 15,443 | 253,537 | 137,311 | |
Income tax expense | (3,404) | 19,790 | 35,538 | 52,745 | |
Net Income | 95,340 | (4,347) | 217,999 | 84,566 | |
Less: Net Income Attributable to Noncontrolling Interest | 559 | 649 | 682 | 744 | |
Net income attributable to shareholders | $ 94,781 | $ (4,996) | $ 217,317 | $ 83,822 | |
Net income per common share [Abstract] | |||||
Basic | $ 1.12 | $ (0.06) | $ 2.55 | $ 0.98 | |
Diluted | 1.11 | (0.06) | 2.53 | 0.97 | |
Cash dividends declared per common share outstanding | $ 0.31 | $ 0.28 | $ 0.90 | $ 0.81 | |
[1] | (4) For more information related to our goodwill impairment loss, see our Annual Report on Form 10-K for the year ended March 31, 2017, dated May 26, 2017. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Income | $ 95,340 | $ (4,347) | $ 217,999 | $ 84,566 |
Less: Net Income Attributable to Noncontrolling Interest | 559 | 649 | 682 | 744 |
Net income attributable to shareholders | 94,781 | (4,996) | 217,317 | 83,822 |
Other comprehensive (loss) income | ||||
Unrealized loss on available for sale securities, (net of taxes of $693, $29, $1,179 and $78, respectively) | 2,738 | (55) | 4,509 | (149) |
Amortization of pension and postretirement benefits plans costs, (net of taxes of $250, $241, $749 and $723, respectively) | (404) | (391) | (1,212) | (1,171) |
Change in cumulative foreign current translation adjustment | 22,742 | (180,084) | 182,422 | (205,079) |
Total other comprehensive (loss) income | 25,076 | (180,530) | 185,719 | (206,399) |
Comprehensive income | 119,857 | (185,526) | 403,036 | (122,577) |
Other comprehensive (loss) income (parenthetical) | ||||
Unrealized loss on available for sale securities, tax | 693 | 29 | 1,179 | 78 |
Amortization of pension and postretirement benefits plans costs, tax | $ 250 | $ 241 | $ 749 | $ 723 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Net Income | $ 217,999 | $ 84,566 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion, and amortization | 133,855 | 135,245 | |
Deferred income taxes | (27,318) | 46,753 | |
Share-based compensation | 17,041 | 14,393 | |
(Gain) loss on the disposal of property, plant, and equipment, and intangibles, net | 819 | 394 | |
Loss on sale of businesses, net | [1] | 12,538 | 42,771 |
Goodwill, Impairment Loss | [2] | 0 | 58,356 |
Other items | 11,410 | (26,636) | |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable, net | 15,149 | (213) | |
Inventories, net | (21,567) | (27,368) | |
Other current assets | (4,843) | 4,223 | |
Accounts payable | (10,601) | (5,778) | |
Accruals and other, net | (16,627) | (37,301) | |
Net cash provided by operating activities | 327,855 | 289,405 | |
Investing activities: | |||
Purchases of property, plant, equipment, and intangibles, net | (113,511) | (112,225) | |
Proceeds from the sale of property, plant, equipment, and intangibles | 2,094 | 4,785 | |
Proceeds from Divestiture of Businesses | 8,907 | 136,255 | |
Purchase of investments | 0 | (6,356) | |
Acquisition of businesses, net of cash acquired | (46,323) | (65,322) | |
Net cash used in investing activities | (148,833) | (42,863) | |
Financing activities: | |||
Payments on long-term obligations | (22,500) | (15,000) | |
Proceeds (Payments) under credit facilities, net | (58,729) | (30,879) | |
Deferred financing fees and debt issuance costs | (44) | 0 | |
Acquisition related deferred or contingent consideration | (2,064) | (6,352) | |
Repurchases of ordinary shares | (43,851) | (95,188) | |
Cash dividends paid to ordinary shareholders | (76,633) | (69,411) | |
Proceeds from issuance of equity to minority shareholders | 0 | 5,022 | |
Stock option and other equity transactions, net | 8,005 | 3,221 | |
Net cash used in financing activities | (195,816) | (208,587) | |
Effect of exchange rate changes on cash and cash equivalents | 17,720 | (21,939) | |
Increase (decrease) in cash and cash equivalents | 926 | 16,016 | |
Cash and cash equivalents at beginning of period | 282,918 | 248,841 | |
Cash and cash equivalents at end of period | $ 283,844 | $ 264,857 | |
[1] | For more information regarding our recent acquisitions and divestitures see Note 2 titled, "Business Acquisitions and Divestitures", as well as our Annual Report on Form 10-K for the year ended March 31, 2017, dated May 26, 2017. | ||
[2] | (4) For more information related to our goodwill impairment loss, see our Annual Report on Form 10-K for the year ended March 31, 2017, dated May 26, 2017. |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies(Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Notes To Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations and Summary of Significant Accounting Policies Nature of Operations STERIS plc (“Parent”) was organized in 2014 under the name Solar New HoldCo Limited as a private limited company for the purpose of effecting under the laws of England and Wales the combination (“Combination”) of STERIS Corporation, an Ohio corporation (“Old STERIS”), and Synergy Health plc, a public limited company organized under the laws of England and Wales (“Synergy”). Effective November 2, 2015 the Parent was re-registered as a public company under the name STERIS plc and the Combination closed. As a result of the Combination closing, STERIS plc became the ultimate parent company of Old STERIS and Synergy. Synergy has been re-registered under the name of Synergy Health Limited. STERIS offers Customers capital equipment products, such as sterilizers and surgical tables; connectivity solutions such as operating room integration; consumable products, such as detergents, gastrointestinal endoscopy accessories, barrier product solutions, and other products and services, including: equipment installation and maintenance, microbial reduction of medical devices, instrument and scope repair solutions, among other services. Our fiscal year ends on March 31. References in this Quarterly Report to a particular “year” or “year-end” mean our fiscal year. The significant accounting policies applied in preparing the accompanying consolidated financial statements of the Company are summarized below: Interim Financial Statements We prepared the accompanying unaudited consolidated financial statements of the Company according to accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. This means that they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Our unaudited interim consolidated financial statements contain all material adjustments (including normal recurring accruals and adjustments) management believes are necessary to fairly state our financial condition, results of operations, and cash flows for the periods presented. These interim consolidated financial statements should be read together with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended March 31, 2017 dated May 26, 2017 . The Consolidated Balance Sheet at March 31, 2017 was derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Principles of Consolidation We use the consolidation method to report our investment in our subsidiaries. Therefore, the accompanying consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. We eliminate inter-company accounts and transactions when we consolidate these accounts. Investments in equity of unconsolidated affiliates, over which the Company has significant influence, but not control, over the financial and operating polices, are accounted for primarily using the equity method. These investments are immaterial to the Company's Consolidated Financial Statements. Use of Estimates We make certain estimates and assumptions when preparing financial statements according to U.S. GAAP that affect the reported amounts of assets and liabilities at the financial statement dates and the reported amounts of revenues and expenses during the periods presented. These estimates and assumptions involve judgments with respect to many factors that are difficult to predict and are beyond our control. Actual results could be materially different from these estimates. We revise the estimates and assumptions as new information becomes available. This means that operating results for the three and nine month periods ended December 31, 2017 are not necessarily indicative of results that may be expected for future quarters or for the full fiscal year ending March 31, 2018. Recently Issued Accounting Standards Impacting the Company Recently issued accounting standards impacting the Company are presented in the following table: Standard Date of Issuance Description Date of Adoption Effect on the financial statements or other significant matters Standards that have recently been adopted ASU 2016-07, "Investments - Equity Method and Joint Ventures, Simplifying the Transition to the Equity Method of Accounting" (Topic 323) March 2016 The standard replaces the previous requirement to retroactively adopt the equity method. The new standard requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The standard is effective for annual periods beginning after December 15, 2016 and interim periods within that period. Early adoption is permitted. First Quarter Fiscal 2018 The prospective adoption of this standard did not have a material impact on our consolidated financial statements. ASU 2015-11, "Inventory - Simplifying the Measurement of Inventory" (Topic 330) July 2015 The standard requires an entity to measure inventory within the scope of this update at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years and should be applied prospectively. Early adoption is permitted. First Quarter Fiscal 2018 The prospective adoption of this standard did not have a material impact on our consolidated financial statements. ASU 2017-04, "Intangibles - Goodwill and Other, Simplifying the Test for Goodwill Impairment" (Topic 350) January 2017 The standard eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedures that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments of this standard, an entity would perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. The loss should not exceed the total amount of goodwill allocated to that reporting unit. Tax effects should be considered. The standard is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. Third Quarter Fiscal 2018 The prospective adoption of this standard did not have a material impact on our consolidated financial statements. Standards that have yet to be adopted ASU 2014-09, "Revenue from Contracts with Customers" and subsequently issued amendments May 2014 The standard will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date. The standard is effective for annual periods beginning after December 15, 2017 and interim periods within that period. Early adoption is not permitted before the original public entity effective date of December 15, 2016. N/A We plan to adopt this standard on April 1, 2018 using the modified retrospective method. While we are still in the process of evaluating the full impact, we have identified certain historical revenue transactions for which the timing of recognition would have been different under this standard. The actual amount of the cumulative adjustment will depend on the timing of revenue recognition of similar transactions at the end of fiscal 2018. While we cannot determine the specific amount based on information currently available, we do not expect it to have a material impact on our consolidated financial statements. Our preliminary conclusions and assessments remain subject to change. We are in the process of updating our revenue accounting policy and implementing changes to our business processes, disclosures and controls. ASU 2016-01, "Financial Instruments - Overall - Recognition and Measurement of Financial Assets and Liabilities" January 2016 The standard changes how equity investments are measured and the presentation of changes in the fair value of financial liabilities measured under the fair value option. Presentation and disclosure requirements for financial instruments are also affected. Entities will be required to measure equity investments that do not result in consolidation and are not recorded under the equity method at fair value with changes in fair value recognized in net income. The standard clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale securities. The accounting for other financial instruments, such as loans, investments in debt securities, and financial liabilities is largely unchanged. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. N/A We are in the process of evaluating the impact that the standard will have on our consolidated financial statements. ASU 2016-02, "Leases" (Topic 842) February 2016 The update will require lessees to record all leases, whether finance or operating, on the balance sheet. An asset will be recorded to represent the right to use the leased asset, and a liability will be recorded to represent the lease obligation. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within that period. Early adoption is permitted. N/A We are in the process of evaluating the impact that the standard will have on our consolidated financial statements. ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" June 2016 The update requires a financial asset (or group of financial assets) measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. The standard is effective for annual periods beginning after December 15, 2019. Early adoption is permitted. N/A We are in the process of evaluating the impact that the standard will have on our consolidated financial statements. ASU 2016-15, "Statement of Cash Flows" (Topic 230) August 2016 This update provides guidance on the following several specific cash flow issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. The standard is effective for annual periods beginning after December 15, 2017 and interim periods within that period. Early adoption is permitted. N/A We are in the process of evaluating the impact that the standard will have on our consolidated financial statements. ASU 2016-16, "Income Taxes, Intra-Entity Transfers of Assets Other Than Inventory" October 2016 The update improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The new standard requires the recognition of income tax consequences resulting from an intra-entity transfer of an asset other than inventory when the transfer occurs. The standard is effective for annual periods beginning after December 15, 2018. Early adoption is permitted. N/A We are in the process of evaluating the impact that the standard will have on our consolidated financial statements. ASU 2017-07 "Compensation - Retirement Benefits - Improving the Presentation of Net Periodic Pension and Net Periodic Postretirement Benefit Cost" (Topic 715) March 2017 This standard requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside the subtotal of income from operations, if one is presented. The standard is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. N/A We are in the process of evaluating the impact that the standard will have on our consolidated financial statements. ASU 2017-09 "Compensation - Stock Compensation" (Topic 718) May 2017 The update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. This standard is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. N/A We are in the process of evaluating the impact that the standard will have on our consolidated financial statements. A detailed description of our significant and critical accounting policies, estimates, and assumptions is included in our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2017 dated May 26, 2017 . Our significant and critical accounting policies, estimates, and assumptions have not changed materially from March 31, 2017 . |
Business Acquisitions and Dives
Business Acquisitions and Divestitures Business Acquisitions and Divestitures (Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Business Acquisitions and Divestitures [Abstract] | |
Business acquisitions and divestitures | 2. Business Acquisitions and Divestitures Fiscal 2018 Acquisitions We completed six minor purchases that continued to expand our product and service offerings in the Healthcare Products, Healthcare Specialty Services and the Applied Sterilization Technologies segments. The aggregate purchase price associated with these transactions was approximately $51.6 million , net of cash acquired and including potential contingent consideration of $5.3 million . The purchase price for the acquisitions was financed with both cash on hand and with credit facility borrowings. Acquisition related costs are recorded in the Selling, General and Administrative line of the Consolidated Statements of Income and amounts are not material. Purchase price allocations will be finalized within a measurement period not to exceed one year from closing. Fiscal 2018 Divestitures On November 20, 2017, we sold our Synergy Health Healthcare Consumable Solutions ("HCS") business to Vernacare. Annual revenues for the HCS business were approximately $40.0 million and were included in the Healthcare Products segment. We recorded proceeds of $8.2 million , net of cash divested, and subject to a working capital adjustment. We also recognized a pre-tax loss on the sale, subject to final working capital adjustments, of $12.0 million in Selling, general, and administrative expense in the Consolidated Statement of Income. Fiscal 2017 Acquisitions Compass Medical, Inc. On September 16, 2016, we purchased the assets of Compass Medical, Inc., for approximately $16.0 million . The purchase price was financed with credit facility borrowings. Compass Medical, Inc. specialized in the sale and repair of flexible endoscopes. On an annual basis, Compass Medical, Inc. generated revenues of approximately $6.0 million and is being integrated into our Healthcare Specialty Services segment. Phoenix Surgical Holdings, Ltd. and Endo-Tek LLP On August 31, 2016, we purchased 100% of the shares of Phoenix Surgical Holdings, Ltd. and the assets of Endo-Tek LLP for approximately $14.3 million combined, net of cash acquired. The purchase price was financed with cash on hand. On an annual basis, these operations, which specialize in the repair of endoscopes, generated approximately $8.0 million in combined revenue. These operations are being integrated into our Healthcare Specialty Services segment. Medisafe On July 22, 2016, we purchased 100% of the shares of Medisafe Holdings, Ltd., a U.K. manufacturer of washer/disinfector equipment and related consumables and services for approximately $34.5 million , net of cash acquired. The purchase price was financed with cash on hand. On an annual basis, the Medisafe product line generated approximately $18.0 million in revenue. The acquisition of Medisafe provides washer manufacturing and research and development capabilities in the U.K. Medisafe's products and services are being integrated into our Healthcare Products segment. The Consolidated Financial Statements include the operating results of acquisitions from the acquisition dates. The table below summarizes the allocation of the purchase price to the net assets acquired based on fair values at the acquisition date for fiscal 2017 acquisitions. Medisafe Compass Phoenix and Endo-Tek Cash $ 3,751 $ — $ 769 Accounts receivable 3,634 629 1,123 Inventory 2,454 659 950 Property, plant and equipment 639 13 1,092 Other assets — 31 46 Intangible assets 17,151 5,992 7,824 Goodwill 19,599 8,987 5,938 Total Assets 47,228 16,311 17,742 Current liabilities (5,562 ) (309 ) (1,373 ) Non-current liabilities (3,398 ) — (1,263 ) Total Liabilities (8,960 ) (309 ) (2,636 ) Net Assets $ 38,268 $ 16,002 $ 15,106 Fiscal 2017 Divestitures Netherlands Linen Management Services On February 9, 2017, we sold our Synergy Health Netherlands Linen Management Services business to EMEA B.V. Annual revenues for Synergy Health Netherlands Linen Management Services were approximately $75 million and were included in the Healthcare Specialty Services segment. We recorded a $42.9 million pre-tax loss on the sale in Selling, general, and administrative expense in the Consolidated Statements of Income as a result of the divestiture. In connection with the divestiture, we entered into a loan agreement with the purchasers to provide financing of up to €15 million for a term of up to 15 years . Loans carry an interest rate of 4 percent for the first four years and 12 percent thereafter. No borrowings were outstanding at December 31, 2017 . US Linen Management Services On November 3, 2016 we sold our Synergy Health US Linen Management Services business to SRI Healthcare LLC. Annual revenues for the US Linen Management Services were approximately $50 million and were included in the Healthcare Specialty Services segment. We recorded proceeds of $4.5 million and recognized a pre-tax loss on the sale, subject to final adjustments, of $31.2 million in Selling, general, and administrative expense in the Consolidated Statement of Income. Synergy Health Labs On September 2, 2016 we sold Synergy Health Laboratory Services to SYNLAB International. Annual revenues for the Synergy Health Labs were approximately $15 million and were included in the Applied Sterilization Technologies segment. We recorded proceeds of $26.3 million , net of cash divested, and recognized a pre-tax gain on the sale of $18.7 million in Selling, general, and administrative expense in the Consolidated Statement of Income. Applied Infection Control On August 31, 2016 we completed the sale of our Applied Infection Control ("AIC") product line to DEB USA, Inc., a wholly-owned subsidiary of S.C Johnson & Son, Inc. Annual revenues for the AIC product line were typically less than $50 million and were included in the Healthcare Products segment. We recorded proceeds of $41.8 million and recognized a pre-tax gain on the sale of $36.2 million in Selling, general, and administrative expense in the Consolidated Statement of Income. UK Linen Management Services On July 1, 2016 we sold our Synergy Health UK Linen Management Services business to STAR Mayan Limited. Annual revenues for the UK Linen Management Services were approximately $50 million and were included in the Healthcare Specialty Services segment. We recorded proceeds of $65.4 million , net of cash divested, and recognized a pre-tax loss on the sale of $66.4 million after allocation of a portion of the identified intangibles and goodwill associated with the Combination in Selling, general, and administrative expense in the Consolidated Statement of Income. |
Inventories, Net (Notes)
Inventories, Net (Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net We use the last-in, first-out (“LIFO”) and first-in, first-out (“FIFO”) cost methods to value inventory. Inventory valued using the LIFO cost method is stated at the lower of cost or market. Inventory valued using the FIFO cost method is stated at the lower of cost or net realizable value. An actual valuation of inventory under the LIFO method is made only at the end of the fiscal year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and are subject to the final fiscal year-end LIFO inventory valuation. Inventory costs include material, labor, and overhead. Inventories, net consisted of the following: December 31, March 31, Raw materials $ 85,446 $ 65,300 Work in process 32,670 26,538 Finished goods 140,003 140,559 LIFO reserve (17,640 ) (16,706 ) Reserve for excess and obsolete inventory (20,984 ) (17,854 ) Inventories, net $ 219,495 $ 197,837 |
Property, Plant and Equipment (
Property, Plant and Equipment (Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Information related to the major categories of our depreciable assets is as follows: December 31, March 31, Land and land improvements (1) $ 49,584 $ 46,848 Buildings and leasehold improvements 411,168 393,692 Machinery and equipment 515,353 508,247 Information systems 137,208 119,920 Radioisotope 471,903 436,787 Construction in progress (1) 147,363 77,421 Total property, plant, and equipment 1,732,579 1,582,915 Less: accumulated depreciation and depletion (748,738 ) (667,007 ) Property, plant, and equipment, net $ 983,841 $ 915,908 (1) Land is not depreciated. Construction in progress is not depreciated until placed in service. |
Debt (Notes)
Debt (Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Indebtedness was as follows: December 31, March 31, Private Placement $ 980,773 $ 960,684 Deferred financing costs (3,539 ) (3,927 ) Credit Agreement 442,815 521,604 Total long term debt $ 1,420,049 $ 1,478,361 Additional information regarding our indebtedness is included in the notes to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2017 dated May 26, 2017 . |
Additional Consolidated Balance
Additional Consolidated Balance Sheets Information (Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Notes To Financial Statements [Abstract] | |
Additional Consolidated Balance Sheets Information | Additional Consolidated Balance Sheet Information Additional information related to our Consolidated Balance Sheets is as follows: December 31, March 31, Accrued payroll and other related liabilities: Compensation and related items $ 18,878 $ 29,777 Accrued vacation/paid time off 11,473 8,651 Accrued bonuses 25,693 20,715 Accrued employee commissions 13,146 16,201 Other postretirement benefit obligations-current portion 2,187 2,187 Other employee benefit plans obligations-current portion 1,430 1,044 Total accrued payroll and other related liabilities $ 72,807 $ 78,575 Accrued expenses and other: Deferred revenues $ 77,212 $ 71,020 Self-insured risk reserves-current portion 8,550 6,633 Accrued dealer commissions 15,130 16,122 Accrued warranty 6,629 6,861 Asset retirement obligation-current portion 1,350 — Other 56,533 54,253 Total accrued expenses and other $ 165,404 $ 154,889 Other liabilities: Self-insured risk reserves-long-term portion $ 15,584 $ 15,584 Other postretirement benefit obligations-long-term portion 13,082 13,821 Defined benefit pension plans obligations-long-term portion 26,809 27,234 Other employee benefit plans obligations-long-term portion 3,643 3,661 Accrued long-term income taxes 10,927 2,089 Asset retirement obligation-long-term portion 9,445 9,953 Other 16,949 10,331 Total other liabilities $ 96,439 $ 82,673 |
Income Tax Expense (Notes)
Income Tax Expense (Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | Income Tax Expense On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “TCJA”). The SEC staff issued Staff Accounting Bulletin No.118 (“SAB 118”), which provides guidance on accounting for the tax effects of the TCJA. SAB 118, provides a measurement period that should not extend beyond one year from the TCJA enactment date for companies to complete the accounting under Accounting Standards Codification (“ASC”) Topic 740, Income Taxes. Our accounting for the various elements of the TCJA is incomplete. However, in accordance with SAB 118 guidance, we were able to make what we believe to be reasonable estimates of certain effects and therefore, have recorded a provisional net tax benefit of approximately $25,680 related to the reduction of the U.S. federal corporate income tax rate and the deemed repatriation transition tax. This provisional adjustment was recorded as a discrete item in the period ended December 31, 2017. While we were able to make what we believe to be reasonable estimates of the tax rate reduction and transition tax effects, both items may be affected by other analyses related to the TCJA as well as actual activities to occur in the remainder of the Company’s fiscal year. We are continuing to gather information and will reflect final effects within the measurement period permitted by SAB 118. Our accounting for the remaining elements of the TCJA is incomplete, as we are not yet able to make reasonable estimates of the effects. Therefore, no provisional adjustments were recorded for those remaining elements in the period ended December 31, 2017. The effective income tax rates for the three month periods ended December 31, 2017 and 2016 were (3.7)% and 128.1% , respectively. The effective income tax rates for the nine month periods ended December 31, 2017 and 2016 were 14.0% and 38.4% , respectively. During the current year, the tax rates were significantly reduced due to the initially calculated impact from the TCJA. The fiscal 2017 periods were unfavorably impacted by non-deductible goodwill impairment charges occurring in the third quarter. Income tax expense is provided on an interim basis based upon our estimate of the annual effective income tax rate, adjusted each quarter for discrete items. In determining the estimated annual effective income tax rate, we analyze various factors, including projections of our annual earnings and taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, our ability to use tax credits and net operating loss carry forwards, and available tax planning alternatives. We operate in numerous taxing jurisdictions and are subject to regular examinations by various United States federal, state and local tax authorities, as well as non-United States jurisdictions. We are no longer subject to United States federal examinations for years before fiscal 2015 and, with limited exceptions, we are no longer subject to United States state and local, or non-United States, income tax examinations by tax authorities for years before fiscal 2012. We remain subject to tax authority audits in various jurisdictions wherever we do business. We do not expect the results of these examinations to have a material adverse effect on our consolidated financial statements. |
Contingencies (Notes)
Contingencies (Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Commitments and Contingencies We are, and will likely continue to be, involved in a number of legal proceedings, government investigations, and claims, which we believe generally arise in the course of our business, given our size, history, complexity, and the nature of our business, products, Customers, regulatory environment, and industries in which we participate. These legal proceedings, investigations and claims generally involve a variety of legal theories and allegations, including, without limitation, personal injury (e.g., slip and falls, burns, vehicle accidents), product liability or regulation (e.g., based on product operation or claimed malfunction, failure to warn, failure to meet specification, or failure to comply with regulatory requirements), product exposure (e.g., claimed exposure to chemicals, asbestos, contaminants, radiation), property damage (e.g., claimed damage due to leaking equipment, fire, vehicles, chemicals), commercial claims (e.g., breach of contract, economic loss, warranty, misrepresentation), financial (e.g., taxes, reporting), employment (e.g., wrongful termination, discrimination, benefits matters), and other claims for damage and relief. We believe we have adequately reserved for our current litigation and claims that are probable and estimable, and further believe that the ultimate outcome of these pending lawsuits and claims will not have a material adverse effect on our consolidated financial position or results of operations taken as a whole. Due to their inherent uncertainty, however, there can be no assurance of the ultimate outcome or effect of current or future litigation, investigations, claims or other proceedings (including without limitation the matters discussed below). For certain types of claims, we presently maintain insurance coverage for personal injury and property damage and other liability coverages in amounts and with deductibles that we believe are prudent, but there can be no assurance that these coverages will be applicable or adequate to cover adverse outcomes of claims or legal proceedings against us. On May 31, 2012, our Albert Browne Limited subsidiary received a warning letter from the FDA regarding chemical indicators manufactured in the United Kingdom. These devices are intended for the monitoring of certain sterilization and other processes. The FDA warning letter states that the agency has concerns regarding operational business processes. We do not believe that the FDA's concerns are related to product performance, or that they result from Customer complaints. We have reviewed our processes with the agency and finalized our remediation measures, and are awaiting FDA reinspection. We do not currently believe that the impact of this event will have a material adverse effect on our financial results. Civil, criminal, regulatory or other proceedings involving our products or services could possibly result in judgments, settlements or administrative or judicial decrees requiring us, among other actions, to pay damages or fines or effect recalls, or be subject to other governmental, Customer or other third party claims or remedies, which could materially effect our business, performance, prospects, value, financial condition, and results of operations. For additional information regarding these matters, see the following portions of our Annual Report on Form 10-K for the year ended March 31, 2017 dated May 26, 2017 : Item 1 titled “Business - Information with respect to our Business in General - Government Regulation”, and the “Risk Factors” in Item 1A titled "Product related regulations and claims". From time to time, STERIS is also involved in legal proceedings as a plaintiff involving contract, patent protection, and other claims asserted by us. Gains, if any, from these proceedings are recognized when they are realized. We are subject to taxation from United States federal, state and local, and non-U.S. jurisdictions. Tax positions are settled primarily through the completion of audits within each individual jurisdiction or the closing of statutes of limitation. Changes in applicable tax law or other events may also require us to revise past estimates. We describe income taxes further in Note 7 to our consolidated financial statements titled, “Income Tax Expense” in this Quarterly Report on Form 10-Q. Additional information regarding our contingencies is included in Item 2 titled, “Management’s Discussion and Analysis of Financial Conditions and Results of Operations" under "Contingencies". |
Business Segment Information (N
Business Segment Information (Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We operate and report our financial information in four reportable business segments: Healthcare Products, Healthcare Specialty Services, Life Sciences, and Applied Sterilization Technologies. Corporate, which is presented separately, contains costs that are associated with being a publicly traded company and certain other corporate costs. Our Healthcare Products segment offers infection prevention and procedural solutions for healthcare providers worldwide, including consumable products, equipment maintenance and installation services, and capital equipment. Our Healthcare Specialty Services segment provides a range of specialty services for healthcare providers including hospital sterilization services, and instrument and scope repairs. Linen Management Services were divested in fiscal 2017. Our Life Sciences segment offers consumable products, equipment maintenance and specialty services for pharmaceutical manufacturers and research facilities, and capital equipment. Our Applied Sterilization Technologies segment offers contract sterilization and laboratory services for medical device and pharmaceutical Customers and others. Certain minor organizational changes were made to better align with our Customers, resulting in several smaller operations shifting among the segments. The prior period revenues and operating income measures have been recast for comparability. The accounting policies for reportable segments are the same as those for the consolidated Company. Management evaluates performance and allocates resources based on a segment operating income measure. Operating income (loss) for each segment is calculated as the segment’s gross profit less direct expenses and indirect cost allocations, which result in the full allocation of all distribution and research and development expenses, and the partial allocation of corporate costs. These allocations are based upon variables such as segment headcount and revenues. Products and services are transferred between segments at cost. Corporate includes certain unallocated corporate costs related to being a publicly traded company and legacy pension and post-retirement benefits. Segment operating income excludes certain adjustments which include acquisition related costs, amortization of acquired intangibles, restructuring costs and other charges that management believes may or may not recur with similar materiality or impact on operating income in future periods. Management believes that by excluding these items they gain better insight and greater transparency of the operating performance of the segments, thus aiding them in more meaningful financial trend analysis and operational decision making. For the three and nine months ended December 31, 2017 , revenues from a single Customer did not represent ten percent or more of any reportable segment’s revenues. Additional information regarding our segments is included in our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2017 , dated May 26, 2017 . Financial information for each of our segments is presented in the following table: Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Revenues: Healthcare Products $ 324,895 $ 324,529 $ 916,053 $ 913,882 Healthcare Specialty Services 117,389 129,178 346,934 418,814 Life Sciences 90,895 78,631 261,291 241,548 Applied Sterilization Technologies 128,721 114,436 379,745 357,323 Total revenues $ 661,900 $ 646,774 $ 1,904,023 $ 1,931,567 Segment operating income: Healthcare Products $ 64,033 $ 65,708 $ 153,763 $ 152,531 Healthcare Specialty Services 6,524 1,903 21,841 5,746 Life Sciences 27,164 23,880 76,625 70,595 Applied Sterilization Technologies 43,195 36,647 127,787 118,595 Corporate (3,506 ) (2,420 ) (13,573 ) (9,143 ) Total segment operating income $ 137,410 $ 125,718 $ 366,443 $ 338,324 Less: Adjustments Restructuring charges (1) $ 78 $ 18 $ 156 $ 220 Amortization of acquired intangible assets (2) 16,700 5,598 50,173 42,908 Acquisition and integration related charges (3) 4,428 7,032 11,850 18,893 Loss on fair value adjustment of acquisition related contingent consideration (2) — — — 1,850 Net loss on divestiture of businesses (2) 11,405 28,969 12,538 42,771 Amortization of inventory and property "step up" to fair value (2) 627 (139 ) 1,895 4,357 Goodwill impairment loss (4) — 58,356 — 58,356 Total operating income $ 104,172 $ 25,884 $ 289,831 $ 168,969 (1) For more information related to restructuring, see our Annual Report on Form 10-K for the year ended March 31, 2017 , dated May 26, 2017 . (2) For more information regarding our recent acquisitions and divestitures see Note 2 titled, "Business Acquisitions and Divestitures", as well as our Annual Report on Form 10-K for the year ended March 31, 2017 , dated May 26, 2017 . (3) Acquisition and integration related charges include transaction costs and integration expenses associated with acquisitions. (4) For more information related to our goodwill impairment loss, see our Annual Report on Form 10-K for the year ended March 31, 2017 , dated May 26, 2017 . |
Shares and Preferred Shares (No
Shares and Preferred Shares (Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Ordinary shares We calculate basic earnings per share based upon the weighted average number of shares outstanding. We calculate diluted earnings per share based upon the weighted average number of shares outstanding plus the dilutive effect of share equivalents calculated using the treasury stock method. The following is a summary of shares and share equivalents outstanding used in the calculations of basic and diluted earnings per share: Three Months Ended December 31, Nine Months Ended December 31, Denominator (shares in thousands): 2017 2016 2017 2016 Weighted average shares outstanding—basic 85,004 85,074 85,097 85,654 Dilutive effect of share equivalents 715 451 672 472 Weighted average shares outstanding and share equivalents—diluted 85,719 85,525 85,769 86,126 Options to purchase the following number of shares were outstanding but excluded from the computation of diluted earnings per share because the combined exercise prices, unamortized fair values, and assumed tax benefits upon exercise were greater than the average market price for the shares during the periods, so including these options would be anti-dilutive: Three Months Ended December 31, Nine Months Ended December 31, (shares in thousands) 2017 2016 2017 2016 Number of share options 294 683 426 558 Preferred Shares Pursuant to an engagement letter dated October 23, 2015, we issued 100,000 preferred shares, par value of £0.10 each, for an aggregate consideration of approximately $15 , in satisfaction of debt owed to a service provider. The holders of the preferred shares are entitled to a fixed cumulative preferential annual dividend of 5 percent on the amount paid periodically on the preferred shares respectively held by them. On a return of capital of the Company whether on liquidation or otherwise, the holders of the preferred shares shall be entitled to receive the sum of £0.10 per preferred share plus any accrued but unpaid dividends out of the assets of the Company available for distribution to its shareholders, but will not be entitled to any further participation in the assets of the Company. The holders of the preferred shares will have no right to attend, speak or vote, whether in person or by proxy, at any general meeting of the Company or any meeting of a class of members of the Company in respect of the preferred shares and will not be entitled to receive any notice of meetings. |
Repurchases of Shares (Notes)
Repurchases of Shares (Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Notes To Financial Statements [Abstract] | |
Repurchases of shares | Repurchases of Ordinary Shares On August 9, 2016, the Company announced that its Board of Directors had authorized the purchase of up to $300 million of our ordinary shares. We may enter into share repurchase contracts until August 2, 2021 to effect these purchases. Shares may be repurchased from time to time through open market transactions, including 10b5-1 plans. The repurchase program may be suspended or discontinued at any time. During the first nine months of fiscal 2018 , we repurchased 436,547 of our ordinary shares for the aggregate amount of $38,171 pursuant to this authorization. During the first nine months of fiscal 2018 , we obtained 114,809 of our ordinary shares in the aggregate amount of $6,197 in connection with share based compensation award programs. |
Share-Based Compensation (Notes
Share-Based Compensation (Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation We maintain a long-term incentive plan that makes available shares for grants, at the discretion of the Compensation Committee of the Board of Directors, or the Board of Directors, to officers, directors, and key employees in the form of stock options, restricted shares, restricted share units, stock appreciation rights and share grants. We satisfy share award incentives through the issuance of new ordinary shares. Stock options provide the right to purchase our shares at the market price on the date of grant, subject to the terms of the option plan and agreements. Generally, one-fourth of the stock options granted become exercisable for each full year of employment following the grant date. Stock options granted generally expire ten years after the grant date, or in some cases earlier if the option holder is no longer employed by us. Restricted shares and restricted share units generally cliff vest after a four year period or vest in tranches of one-fourth of the number granted for each full year of employment after the grant date. As of December 31, 2017 , 4,994,447 shares remained available for grant under the long-term incentive plan. The fair value of stock option awards was estimated at their grant date using the Black-Scholes-Merton option pricing model. This model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable, characteristics that are not present in our option grants. If the model permitted consideration of the unique characteristics of employee stock options, the resulting estimate of the fair value of the stock options could be different. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our Consolidated Statements of Income. The expense is classified as cost of goods sold or selling, general and administrative expenses in a manner consistent with the employee’s compensation and benefits. The following weighted-average assumptions were used for options granted during the first nine months of fiscal 2018 and 2017: Fiscal 2018 Fiscal 2017 Risk-free interest rate 2.01% 1.29% Expected life of options 5.7 years 5.7 years Expected dividend yield of stock 1.58% 1.54% Expected volatility of stock 22.08% 22.92% The risk-free interest rate is based upon the U.S. Treasury yield curve. The expected life of options is reflective of historical experience, vesting schedules and contractual terms. The expected dividend yield of stock represents our best estimate of the expected future dividend yield. The expected volatility of stock is derived by referring to our historical stock prices over a time frame similar to that of the expected life of the grant. An estimated forfeiture rate of 2.25% and 1.85% was applied in fiscal 2018 and 2017 , respectively. This rate is calculated based upon historical activity and represents an estimate of the granted options not expected to vest. If actual forfeitures differ from this calculated rate, we may be required to make additional adjustments to compensation expense in future periods. The assumptions used above are reviewed at the time of each significant option grant, or at least annually. A summary of share option activity is as follows: Number of Options Weighted Average Exercise Price Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at March 31, 2017 1,945,274 $ 50.28 Granted 429,360 77.75 Exercised (267,687 ) 34.37 Forfeited (17,497 ) 67.13 Outstanding at December 31, 2017 2,089,450 $ 57.82 6.7 years $ 61,946 Exercisable at December 31, 2017 1,201,768 $ 47.97 5.4 years $ 47,473 We estimate that 869,452 of the non-vested stock options outstanding at December 31, 2017 will ultimately vest. The aggregate intrinsic value in the table above represents the total pre-tax difference between the $87.47 closing price of our ordinary shares on December 31, 2017 over the exercise prices of the stock options, multiplied by the number of options outstanding or outstanding and exercisable, as applicable. The aggregate intrinsic value is not recorded for financial accounting purposes and the value changes daily based on the daily changes in the fair market value of ordinary shares. The total intrinsic value of stock options exercised during the first nine months of fiscal 2018 and fiscal 2017 was $12,495 and $4,160 , respectively. Net cash proceeds from the exercise of stock options were $9,080 and $3,221 for the first nine months of fiscal 2018 and fiscal 2017 , respectively. The weighted average grant date fair value of stock option grants was $15.51 and $13.42 for the first nine months of fiscal 2018 and fiscal 2017 , respectively. Stock appreciation rights (“SARS”) carry generally the same terms and vesting requirements as stock options except that they are settled in cash upon exercise and therefore, are classified as liabilities. The fair value of the outstanding SARS as of December 31, 2017 and 2016 was $1,733 and $1,736 , respectively. A summary of the non-vested restricted share and share unit activity is presented below: Number of Restricted Shares Number of Restricted Share Units Weighted-Average Grant Date Fair Value Non-vested at March 31, 2017 780,526 34,013 $ 60.87 Granted 233,107 23,259 77.93 Vested (206,388 ) (21,181 ) 54.86 Forfeited (33,758 ) (660 ) 68.73 Non-vested at December 31, 2017 773,487 35,431 $ 67.64 Restricted shares granted are valued based on the closing stock price at the grant date. The value of restricted shares and restricted share units that vested during the first nine months of fiscal 2018 was $12,484 . As of December 31, 2017 , there was a total of $40,019 in unrecognized compensation cost related to non-vested share-based compensation granted under our share-based compensation plan. We expect to recognize the cost over a weighted average period of 2.2 years . |
Financial and Other Guarantees(
Financial and Other Guarantees(Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty Disclosure | Financial and Other Guarantees We generally offer a limited parts and labor warranty on capital equipment. The specific terms and conditions of those warranties vary depending on the product sold and the countries where we conduct business. We record a liability for the estimated cost of product warranties at the time product revenues are recognized. The amounts we expect to incur on behalf of our Customers for the future estimated cost of these warranties are recorded as a current liability on the accompanying Consolidated Balance Sheets. Factors that affect the amount of our warranty liability include the number and type of installed units, historical and anticipated rates of product failures, and material and service costs per claim. We periodically assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. Changes in our warranty liability during the first nine months of fiscal 2018 were as follows: Warranties Balance, March 31, 2017 $ 6,861 Warranties issued during the period 8,953 Settlements made during the period (9,185 ) Balance, December 31, 2017 $ 6,629 We also sell product maintenance contracts to our Customers. These contracts range in terms from one to five years and require us to maintain and repair the product over the maintenance contract term. We initially record amounts due from Customers under these contracts as a liability for deferred service contract revenue on the accompanying Consolidated Balance Sheets within “Accrued expenses and other.” The liability recorded for such deferred service revenue was $33,311 and $34,264 as of December 31, 2017 and March 31, 2017 , respectively. Such deferred revenue is then amortized on a straight-line basis over the contract term and recognized as service revenue on our accompanying Consolidated Statements of Income. The activity related to the liability for deferred service contract revenue is excluded from the table presented above. |
Deritvatives and Hedging (Notes
Deritvatives and Hedging (Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | Derivatives and Hedging From time to time, we enter into forward contracts to hedge potential foreign currency gains and losses that arise from transactions denominated in foreign currencies, including inter-company transactions. We may also enter into commodity swap contracts to hedge price changes in nickel that impact raw materials included in our cost of revenues. During the first nine months of fiscal 2018, we also entered into forward foreign currency contracts in order to hedge a portion of our expected non-U.S. dollar denominated earnings against our reporting currency, the U.S. dollar. These foreign currency exchange contracts will mature during fiscal 2018. We did not elect hedge accounting for these forward foreign currency contracts; however, we may seek to apply hedge accounting in future scenarios. We do not use derivative financial instruments for speculative purposes. None of these contracts are designated as hedging instruments and do not receive hedge accounting treatment; therefore, changes in their fair value are not deferred but are recognized immediately in the Consolidated Statements of Income. At December 31, 2017 , we held foreign currency forward contracts to buy 128.6 million Mexican pesos, 13.7 million Canadian dollars and 3.8 million Brazilian reais; and to sell 3.8 million euros and 1.6 million British pounds sterling. At December 31, 2017 , we held commodity swap contracts to buy 177.2 thousand pounds of nickel. Asset Derivatives Liability Derivatives Fair Value at Fair Value at Fair Value at Fair Value at Balance sheet location December 31, 2017 March 31, 2017 December 31, 2017 March 31, 2017 Prepaid & Other $ 502 $ 160 $ — $ — Accrued expenses and other — — 839 35 The following table presents the impact of derivative instruments and their location within the Consolidated Statements of Income: Location of gain (loss) recognized in income Amount of gain (loss) recognized in income Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Foreign currency forward contracts Selling, general and administrative $ (842 ) $ (945 ) $ (1,358 ) $ (2,495 ) Commodity swap contracts Cost of revenues $ 200 $ (24 ) $ 226 $ 392 Additionally, we hold our debt in multiple currencies to fund our operations and investments in certain subsidiaries. We designate portions of foreign currency denominated intercompany loans as hedges of portions of net investments in foreign operations. Net debt designated as non-derivative net investment hedging instruments totaled $66.4 million at December 31, 2017 . These hedges are designed to be fully effective and any associated gain or loss is recognized in Accumulated Other Comprehensive Income and will be reclassified to income in the same period when a gain or loss related to the net investment in the foreign operation is included in income. |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. We estimate the fair value of financial assets and liabilities using available market information and generally accepted valuation methodologies. The inputs used to measure fair value are classified into three tiers. These tiers include Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring the entity to develop its own assumptions. The following table shows the fair value of our financial assets and liabilities at December 31, 2017 and March 31, 2017 : Fair Value Measurements Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 December 31 March 31 December 31 March 31 December 31 March 31 December 31 March 31 Assets: Cash and cash equivalents $ 283,844 $ 282,918 $ 283,844 $ 282,918 $ — $ — $ — $ — Forward and swap contracts (1) 502 160 — — 502 160 — — Investments (2) $ 19,172 12,552 19,172 12,552 — — — — Liabilities: Forward and swap contracts (1) $ 839 $ 35 $ — $ — $ 839 $ 35 $ — $ — Deferred compensation plans (2) 1,818 1,677 1,818 1,677 — — — — Long term debt (3) 1,420,049 1,478,361 — — 1,443,978 1,496,966 — — Contingent consideration obligations (4) 8,113 4,451 — — — — 8,113 4,451 (1) The fair values of forward and swap contracts are based on period-end forward rates and reflect the value of the amount that we would pay or receive for the contracts involving the same notional amounts and maturity dates. (2) We maintain a frozen domestic non-qualified deferred compensation plan covering certain employees, which allows for the deferral of payment of previously earned compensation for an employee-specified term or until retirement or termination. Amounts deferred can be allocated to various hypothetical investment options (compensation deferrals have been frozen under the plan). We hold investments to satisfy the future obligations of the plan. Changes in the value of the investment accounts are recognized each period based on the fair value of the underlying investments. Employees who made deferrals are entitled to receive distributions of their hypothetical account balances (amounts deferred, together with earnings (losses)). We also hold an investment in the common stock of Servizi Italia, S.p.A, a leading provider of integrated linen washing and outsourced sterile processing services to hospital Customers. Changes in the value of the investment are recognized each period based on the fair value of the investment. (3) We estimate the fair value of our long-term debt using discounted cash flow analyses, based on our current incremental borrowing rates for similar types of borrowing arrangements. (4) Contingent consideration obligations arise from business acquisitions. The fair values are based on discounted cash flow analyses reflecting the possible achievement of specified performance measures or events and captures the contractual nature of the contingencies, commercial risk, and the time value of money. Contingent consideration obligations are classified in the consolidated balance sheets as accrued expense (short-term) and other liabilities (long-term), as appropriate based on the contractual payment dates. The changes in Level 3 assets and liabilities measured at fair value on a recurring basis at December 31, 2017 are summarized as follows: Contingent Consideration Balance at March 31, 2017 $ 4,451 Additions 5,310 Payments (1,735 ) Currency translation adjustments 87 Balance at December 31, 2017 $ 8,113 Information regarding our investments is as follows: Investments at December 31, 2017 and March 31, 2017 Cost Unrealized Gains (1) Unrealized Losses (1) Fair Value December 31 March 31 December 31 March 31 December 31 March 31 December 31 March 31 Available-for-sale securities: Marketable equity securities and other $ 11,037 $ 11,037 $ 6,418 $ — $ — $ (72 ) $ 17,455 $ 10,965 Mutual funds 1,069 1,091 648 496 — — 1,717 1,587 Total available-for-sale securities $ 12,106 $ 12,128 $ 7,066 $ 496 $ — $ (72 ) $ 19,172 $ 12,552 (1) Amounts reported include the impact of currency movements relative to the U.S. dollar. |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Notes) | 9 Months Ended |
Dec. 31, 2017 | |
Reclassifications out of AOCI [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amounts in Accumulated Other Comprehensive Income (Loss) are presented net of the related tax. Currency Translation is not adjusted for income taxes. Changes in our Accumulated Other Comprehensive Income (Loss) balances, net of tax, for the three and nine months ended December 31, 2017 were as follows: Gain (Loss) on Available for Sale Securities (1) Defined Benefit Plans (2) Currency Translation (3) Total Accumulated Other Comprehensive Income (Loss) Three Months Nine Months Three Months Nine Months Three Months Nine Months Three Months Nine Months Beginning Balance $ 1,949 $ 178 $ (3,163 ) $ (2,355 ) $ (78,845 ) $ (238,525 ) $ (80,059 ) $ (240,702 ) Other Comprehensive Income (Loss) before reclassifications 2,729 4,474 120 360 22,742 182,422 25,591 187,256 Amounts reclassified from Accumulated Other Comprehensive Income (Loss) 9 35 (524 ) (1,572 ) — — (515 ) (1,537 ) Net current-period Other Comprehensive Income (Loss) 2,738 4,509 (404 ) (1,212 ) 22,742 182,422 25,076 185,719 Balance at December 31, 2017 $ 4,687 $ 4,687 $ (3,567 ) $ (3,567 ) $ (56,103 ) $ (56,103 ) $ (54,983 ) $ (54,983 ) Changes in our Accumulated Other Comprehensive Income (Loss) balances, net of tax, for the three and nine months ended December 31, 2016 were as follows: Gain (Loss) on Available for Sale Securities (1) Defined Benefit Plans (2) Currency Translation (3) Total Accumulated Other Comprehensive Income Three Months Nine Months Three Months Nine Months Three Months Nine Months Three Months Nine Months Beginning Balance $ (767 ) $ (673 ) $ 4,328 $ 5,108 $ (97,589 ) $ (72,594 ) $ (94,028 ) $ (68,159 ) Other Comprehensive Income (Loss) before reclassifications (68 ) (199 ) 102 308 (180,084 ) (205,079 ) (180,050 ) (204,970 ) Amounts reclassified from Accumulated Other Comprehensive Income (Loss) 13 50 (493 ) (1,479 ) — — (480 ) (1,429 ) Net current-period Other Comprehensive Income (Loss) (55 ) (149 ) (391 ) (1,171 ) (180,084 ) (205,079 ) (180,530 ) (206,399 ) Balance at December 31, 2016 $ (822 ) $ (822 ) $ 3,937 $ 3,937 $ (277,673 ) $ (277,673 ) $ (274,558 ) $ (274,558 ) (1) Realized gain (loss) on available for sale securities is reported in the Interest income and miscellaneous expense line of the Consolidated Statements of Income. (2) Amortization (gain) of defined benefit pension items is reported in the Selling, general and administrative expense line of the Consolidated Statements of Income. (3) The effective portion of gain or loss on net debt designated as non-derivative net investment hedging instruments is recognized in Accumulated Other Comprehensive Income and is reclassified to income in the same period when a gain or loss related to the net investment is included in income. |
Nature of Operations and Summ23
Nature of Operations and Summary of Significant Accounting Policies Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation We use the consolidation method to report our investment in our subsidiaries. Therefore, the accompanying consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. We eliminate inter-company accounts and transactions when we consolidate these accounts. Investments in equity of unconsolidated affiliates, over which the Company has significant influence, but not control, over the financial and operating polices, are accounted for primarily using the equity method. These investments are immaterial to the Company's Consolidated Financial Statements. |
Use of Estimates | Use of Estimates We make certain estimates and assumptions when preparing financial statements according to U.S. GAAP that affect the reported amounts of assets and liabilities at the financial statement dates and the reported amounts of revenues and expenses during the periods presented. These estimates and assumptions involve judgments with respect to many factors that are difficult to predict and are beyond our control. Actual results could be materially different from these estimates. We revise the estimates and assumptions as new information becomes available. This means that operating results for the three and nine month periods ended December 31, 2017 are not necessarily indicative of results that may be expected for future quarters or for the full fiscal year ending March 31, 2018. |
Recently Issued Accounting Standards Impacting the Company | Recently Issued Accounting Standards Impacting the Company Recently issued accounting standards impacting the Company are presented in the following table: Standard Date of Issuance Description Date of Adoption Effect on the financial statements or other significant matters Standards that have recently been adopted ASU 2016-07, "Investments - Equity Method and Joint Ventures, Simplifying the Transition to the Equity Method of Accounting" (Topic 323) March 2016 The standard replaces the previous requirement to retroactively adopt the equity method. The new standard requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The standard is effective for annual periods beginning after December 15, 2016 and interim periods within that period. Early adoption is permitted. First Quarter Fiscal 2018 The prospective adoption of this standard did not have a material impact on our consolidated financial statements. ASU 2015-11, "Inventory - Simplifying the Measurement of Inventory" (Topic 330) July 2015 The standard requires an entity to measure inventory within the scope of this update at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO or the retail inventory method. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years and should be applied prospectively. Early adoption is permitted. First Quarter Fiscal 2018 The prospective adoption of this standard did not have a material impact on our consolidated financial statements. ASU 2017-04, "Intangibles - Goodwill and Other, Simplifying the Test for Goodwill Impairment" (Topic 350) January 2017 The standard eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedures that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments of this standard, an entity would perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. The loss should not exceed the total amount of goodwill allocated to that reporting unit. Tax effects should be considered. The standard is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. Third Quarter Fiscal 2018 The prospective adoption of this standard did not have a material impact on our consolidated financial statements. Standards that have yet to be adopted ASU 2014-09, "Revenue from Contracts with Customers" and subsequently issued amendments May 2014 The standard will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date. The standard is effective for annual periods beginning after December 15, 2017 and interim periods within that period. Early adoption is not permitted before the original public entity effective date of December 15, 2016. N/A We plan to adopt this standard on April 1, 2018 using the modified retrospective method. While we are still in the process of evaluating the full impact, we have identified certain historical revenue transactions for which the timing of recognition would have been different under this standard. The actual amount of the cumulative adjustment will depend on the timing of revenue recognition of similar transactions at the end of fiscal 2018. While we cannot determine the specific amount based on information currently available, we do not expect it to have a material impact on our consolidated financial statements. Our preliminary conclusions and assessments remain subject to change. We are in the process of updating our revenue accounting policy and implementing changes to our business processes, disclosures and controls. ASU 2016-01, "Financial Instruments - Overall - Recognition and Measurement of Financial Assets and Liabilities" January 2016 The standard changes how equity investments are measured and the presentation of changes in the fair value of financial liabilities measured under the fair value option. Presentation and disclosure requirements for financial instruments are also affected. Entities will be required to measure equity investments that do not result in consolidation and are not recorded under the equity method at fair value with changes in fair value recognized in net income. The standard clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale securities. The accounting for other financial instruments, such as loans, investments in debt securities, and financial liabilities is largely unchanged. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. N/A We are in the process of evaluating the impact that the standard will have on our consolidated financial statements. ASU 2016-02, "Leases" (Topic 842) February 2016 The update will require lessees to record all leases, whether finance or operating, on the balance sheet. An asset will be recorded to represent the right to use the leased asset, and a liability will be recorded to represent the lease obligation. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within that period. Early adoption is permitted. N/A We are in the process of evaluating the impact that the standard will have on our consolidated financial statements. ASU 2016-13, "Measurement of Credit Losses on Financial Instruments" June 2016 The update requires a financial asset (or group of financial assets) measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. The standard is effective for annual periods beginning after December 15, 2019. Early adoption is permitted. N/A We are in the process of evaluating the impact that the standard will have on our consolidated financial statements. ASU 2016-15, "Statement of Cash Flows" (Topic 230) August 2016 This update provides guidance on the following several specific cash flow issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. The standard is effective for annual periods beginning after December 15, 2017 and interim periods within that period. Early adoption is permitted. N/A We are in the process of evaluating the impact that the standard will have on our consolidated financial statements. ASU 2016-16, "Income Taxes, Intra-Entity Transfers of Assets Other Than Inventory" October 2016 The update improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The new standard requires the recognition of income tax consequences resulting from an intra-entity transfer of an asset other than inventory when the transfer occurs. The standard is effective for annual periods beginning after December 15, 2018. Early adoption is permitted. N/A We are in the process of evaluating the impact that the standard will have on our consolidated financial statements. ASU 2017-07 "Compensation - Retirement Benefits - Improving the Presentation of Net Periodic Pension and Net Periodic Postretirement Benefit Cost" (Topic 715) March 2017 This standard requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside the subtotal of income from operations, if one is presented. The standard is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. N/A We are in the process of evaluating the impact that the standard will have on our consolidated financial statements. ASU 2017-09 "Compensation - Stock Compensation" (Topic 718) May 2017 The update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. This standard is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. N/A We are in the process of evaluating the impact that the standard will have on our consolidated financial statements. |
Business Acquisitions and Div24
Business Acquisitions and Divestitures Business Acquisitions and Divestitures (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Business Acquisitions and Divestitures [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The table below summarizes the allocation of the purchase price to the net assets acquired based on fair values at the acquisition date for fiscal 2017 acquisitions. Medisafe Compass Phoenix and Endo-Tek Cash $ 3,751 $ — $ 769 Accounts receivable 3,634 629 1,123 Inventory 2,454 659 950 Property, plant and equipment 639 13 1,092 Other assets — 31 46 Intangible assets 17,151 5,992 7,824 Goodwill 19,599 8,987 5,938 Total Assets 47,228 16,311 17,742 Current liabilities (5,562 ) (309 ) (1,373 ) Non-current liabilities (3,398 ) — (1,263 ) Total Liabilities (8,960 ) (309 ) (2,636 ) Net Assets $ 38,268 $ 16,002 $ 15,106 |
Inventories, Net Inventories, N
Inventories, Net Inventories, Net (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory costs include material, labor, and overhead. Inventories, net consisted of the following: December 31, March 31, Raw materials $ 85,446 $ 65,300 Work in process 32,670 26,538 Finished goods 140,003 140,559 LIFO reserve (17,640 ) (16,706 ) Reserve for excess and obsolete inventory (20,984 ) (17,854 ) Inventories, net $ 219,495 $ 197,837 |
Property, Plant and Equipment P
Property, Plant and Equipment Property, Plant and Equipment (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Information related to the major categories of our depreciable assets is as follows: December 31, March 31, Land and land improvements (1) $ 49,584 $ 46,848 Buildings and leasehold improvements 411,168 393,692 Machinery and equipment 515,353 508,247 Information systems 137,208 119,920 Radioisotope 471,903 436,787 Construction in progress (1) 147,363 77,421 Total property, plant, and equipment 1,732,579 1,582,915 Less: accumulated depreciation and depletion (748,738 ) (667,007 ) Property, plant, and equipment, net $ 983,841 $ 915,908 (1) Land is not depreciated. Construction in progress is not depreciated until placed in service. |
Debt Debt (Tables)
Debt Debt (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Indebtedness was as follows: December 31, March 31, Private Placement $ 980,773 $ 960,684 Deferred financing costs (3,539 ) (3,927 ) Credit Agreement 442,815 521,604 Total long term debt $ 1,420,049 $ 1,478,361 |
Additional Consolidated Balan28
Additional Consolidated Balance Sheets Information Additional Consolidated Balance Sheets Information (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Notes To Financial Statements [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Additional information related to our Consolidated Balance Sheets is as follows: December 31, March 31, Accrued payroll and other related liabilities: Compensation and related items $ 18,878 $ 29,777 Accrued vacation/paid time off 11,473 8,651 Accrued bonuses 25,693 20,715 Accrued employee commissions 13,146 16,201 Other postretirement benefit obligations-current portion 2,187 2,187 Other employee benefit plans obligations-current portion 1,430 1,044 Total accrued payroll and other related liabilities $ 72,807 $ 78,575 Accrued expenses and other: Deferred revenues $ 77,212 $ 71,020 Self-insured risk reserves-current portion 8,550 6,633 Accrued dealer commissions 15,130 16,122 Accrued warranty 6,629 6,861 Asset retirement obligation-current portion 1,350 — Other 56,533 54,253 Total accrued expenses and other $ 165,404 $ 154,889 Other liabilities: Self-insured risk reserves-long-term portion $ 15,584 $ 15,584 Other postretirement benefit obligations-long-term portion 13,082 13,821 Defined benefit pension plans obligations-long-term portion 26,809 27,234 Other employee benefit plans obligations-long-term portion 3,643 3,661 Accrued long-term income taxes 10,927 2,089 Asset retirement obligation-long-term portion 9,445 9,953 Other 16,949 10,331 Total other liabilities $ 96,439 $ 82,673 |
Business Segment Information Bu
Business Segment Information Business Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Financial information for each of our segments is presented in the following table: Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Revenues: Healthcare Products $ 324,895 $ 324,529 $ 916,053 $ 913,882 Healthcare Specialty Services 117,389 129,178 346,934 418,814 Life Sciences 90,895 78,631 261,291 241,548 Applied Sterilization Technologies 128,721 114,436 379,745 357,323 Total revenues $ 661,900 $ 646,774 $ 1,904,023 $ 1,931,567 Segment operating income: Healthcare Products $ 64,033 $ 65,708 $ 153,763 $ 152,531 Healthcare Specialty Services 6,524 1,903 21,841 5,746 Life Sciences 27,164 23,880 76,625 70,595 Applied Sterilization Technologies 43,195 36,647 127,787 118,595 Corporate (3,506 ) (2,420 ) (13,573 ) (9,143 ) Total segment operating income $ 137,410 $ 125,718 $ 366,443 $ 338,324 Less: Adjustments Restructuring charges (1) $ 78 $ 18 $ 156 $ 220 Amortization of acquired intangible assets (2) 16,700 5,598 50,173 42,908 Acquisition and integration related charges (3) 4,428 7,032 11,850 18,893 Loss on fair value adjustment of acquisition related contingent consideration (2) — — — 1,850 Net loss on divestiture of businesses (2) 11,405 28,969 12,538 42,771 Amortization of inventory and property "step up" to fair value (2) 627 (139 ) 1,895 4,357 Goodwill impairment loss (4) — 58,356 — 58,356 Total operating income $ 104,172 $ 25,884 $ 289,831 $ 168,969 |
Shares and Preferred Shares Sha
Shares and Preferred Shares Shares and Preferred Shares (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares [Table Text Block] | The following is a summary of shares and share equivalents outstanding used in the calculations of basic and diluted earnings per share: Three Months Ended December 31, Nine Months Ended December 31, Denominator (shares in thousands): 2017 2016 2017 2016 Weighted average shares outstanding—basic 85,004 85,074 85,097 85,654 Dilutive effect of share equivalents 715 451 672 472 Weighted average shares outstanding and share equivalents—diluted 85,719 85,525 85,769 86,126 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Options to purchase the following number of shares were outstanding but excluded from the computation of diluted earnings per share because the combined exercise prices, unamortized fair values, and assumed tax benefits upon exercise were greater than the average market price for the shares during the periods, so including these options would be anti-dilutive: Three Months Ended December 31, Nine Months Ended December 31, (shares in thousands) 2017 2016 2017 2016 Number of share options 294 683 426 558 |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Assumptions Used | The following weighted-average assumptions were used for options granted during the first nine months of fiscal 2018 and 2017: Fiscal 2018 Fiscal 2017 Risk-free interest rate 2.01% 1.29% Expected life of options 5.7 years 5.7 years Expected dividend yield of stock 1.58% 1.54% Expected volatility of stock 22.08% 22.92% |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding | A summary of share option activity is as follows: Number of Options Weighted Average Exercise Price Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at March 31, 2017 1,945,274 $ 50.28 Granted 429,360 77.75 Exercised (267,687 ) 34.37 Forfeited (17,497 ) 67.13 Outstanding at December 31, 2017 2,089,450 $ 57.82 6.7 years $ 61,946 Exercisable at December 31, 2017 1,201,768 $ 47.97 5.4 years $ 47,473 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of the non-vested restricted share and share unit activity is presented below: Number of Restricted Shares Number of Restricted Share Units Weighted-Average Grant Date Fair Value Non-vested at March 31, 2017 780,526 34,013 $ 60.87 Granted 233,107 23,259 77.93 Vested (206,388 ) (21,181 ) 54.86 Forfeited (33,758 ) (660 ) 68.73 Non-vested at December 31, 2017 773,487 35,431 $ 67.64 |
Financial and Other Guarantees
Financial and Other Guarantees Financial and Other Gurantees (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | Changes in our warranty liability during the first nine months of fiscal 2018 were as follows: Warranties Balance, March 31, 2017 $ 6,861 Warranties issued during the period 8,953 Settlements made during the period (9,185 ) Balance, December 31, 2017 $ 6,629 |
Derivatives and Hedging Derivat
Derivatives and Hedging Derivatives and Hedging (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Asset Derivatives Liability Derivatives Fair Value at Fair Value at Fair Value at Fair Value at Balance sheet location December 31, 2017 March 31, 2017 December 31, 2017 March 31, 2017 Prepaid & Other $ 502 $ 160 $ — $ — Accrued expenses and other — — 839 35 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table presents the impact of derivative instruments and their location within the Consolidated Statements of Income: Location of gain (loss) recognized in income Amount of gain (loss) recognized in income Three Months Ended December 31, Nine Months Ended December 31, 2017 2016 2017 2016 Foreign currency forward contracts Selling, general and administrative $ (842 ) $ (945 ) $ (1,358 ) $ (2,495 ) Commodity swap contracts Cost of revenues $ 200 $ (24 ) $ 226 $ 392 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table shows the fair value of our financial assets and liabilities at December 31, 2017 and March 31, 2017 : Fair Value Measurements Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Level 1 Level 2 Level 3 December 31 March 31 December 31 March 31 December 31 March 31 December 31 March 31 Assets: Cash and cash equivalents $ 283,844 $ 282,918 $ 283,844 $ 282,918 $ — $ — $ — $ — Forward and swap contracts (1) 502 160 — — 502 160 — — Investments (2) $ 19,172 12,552 19,172 12,552 — — — — Liabilities: Forward and swap contracts (1) $ 839 $ 35 $ — $ — $ 839 $ 35 $ — $ — Deferred compensation plans (2) 1,818 1,677 1,818 1,677 — — — — Long term debt (3) 1,420,049 1,478,361 — — 1,443,978 1,496,966 — — Contingent consideration obligations (4) 8,113 4,451 — — — — 8,113 4,451 (1) The fair values of forward and swap contracts are based on period-end forward rates and reflect the value of the amount that we would pay or receive for the contracts involving the same notional amounts and maturity dates. (2) We maintain a frozen domestic non-qualified deferred compensation plan covering certain employees, which allows for the deferral of payment of previously earned compensation for an employee-specified term or until retirement or termination. Amounts deferred can be allocated to various hypothetical investment options (compensation deferrals have been frozen under the plan). We hold investments to satisfy the future obligations of the plan. Changes in the value of the investment accounts are recognized each period based on the fair value of the underlying investments. Employees who made deferrals are entitled to receive distributions of their hypothetical account balances (amounts deferred, together with earnings (losses)). We also hold an investment in the common stock of Servizi Italia, S.p.A, a leading provider of integrated linen washing and outsourced sterile processing services to hospital Customers. Changes in the value of the investment are recognized each period based on the fair value of the investment. (3) We estimate the fair value of our long-term debt using discounted cash flow analyses, based on our current incremental borrowing rates for similar types of borrowing arrangements. (4) Contingent consideration obligations arise from business acquisitions. The fair values are based on discounted cash flow analyses reflecting the possible achievement of specified performance measures or events and captures the contractual nature of the contingencies, commercial risk, and the time value of money. Contingent consideration obligations are classified in the consolidated balance sheets as accrued expense (short-term) and other liabilities (long-term), as appropriate based on the contractual payment dates. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis at December 31, 2017 are summarized as follows: Contingent Consideration Balance at March 31, 2017 $ 4,451 Additions 5,310 Payments (1,735 ) Currency translation adjustments 87 Balance at December 31, 2017 $ 8,113 |
Unrealized Gain (Loss) on Investments [Table Text Block] | Information regarding our investments is as follows: Investments at December 31, 2017 and March 31, 2017 Cost Unrealized Gains (1) Unrealized Losses (1) Fair Value December 31 March 31 December 31 March 31 December 31 March 31 December 31 March 31 Available-for-sale securities: Marketable equity securities and other $ 11,037 $ 11,037 $ 6,418 $ — $ — $ (72 ) $ 17,455 $ 10,965 Mutual funds 1,069 1,091 648 496 — — 1,717 1,587 Total available-for-sale securities $ 12,106 $ 12,128 $ 7,066 $ 496 $ — $ (72 ) $ 19,172 $ 12,552 |
Reclassifications out of Accu35
Reclassifications out of Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Reclassifications out of AOCI [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in our Accumulated Other Comprehensive Income (Loss) balances, net of tax, for the three and nine months ended December 31, 2017 were as follows: Gain (Loss) on Available for Sale Securities (1) Defined Benefit Plans (2) Currency Translation (3) Total Accumulated Other Comprehensive Income (Loss) Three Months Nine Months Three Months Nine Months Three Months Nine Months Three Months Nine Months Beginning Balance $ 1,949 $ 178 $ (3,163 ) $ (2,355 ) $ (78,845 ) $ (238,525 ) $ (80,059 ) $ (240,702 ) Other Comprehensive Income (Loss) before reclassifications 2,729 4,474 120 360 22,742 182,422 25,591 187,256 Amounts reclassified from Accumulated Other Comprehensive Income (Loss) 9 35 (524 ) (1,572 ) — — (515 ) (1,537 ) Net current-period Other Comprehensive Income (Loss) 2,738 4,509 (404 ) (1,212 ) 22,742 182,422 25,076 185,719 Balance at December 31, 2017 $ 4,687 $ 4,687 $ (3,567 ) $ (3,567 ) $ (56,103 ) $ (56,103 ) $ (54,983 ) $ (54,983 ) Changes in our Accumulated Other Comprehensive Income (Loss) balances, net of tax, for the three and nine months ended December 31, 2016 were as follows: Gain (Loss) on Available for Sale Securities (1) Defined Benefit Plans (2) Currency Translation (3) Total Accumulated Other Comprehensive Income Three Months Nine Months Three Months Nine Months Three Months Nine Months Three Months Nine Months Beginning Balance $ (767 ) $ (673 ) $ 4,328 $ 5,108 $ (97,589 ) $ (72,594 ) $ (94,028 ) $ (68,159 ) Other Comprehensive Income (Loss) before reclassifications (68 ) (199 ) 102 308 (180,084 ) (205,079 ) (180,050 ) (204,970 ) Amounts reclassified from Accumulated Other Comprehensive Income (Loss) 13 50 (493 ) (1,479 ) — — (480 ) (1,429 ) Net current-period Other Comprehensive Income (Loss) (55 ) (149 ) (391 ) (1,171 ) (180,084 ) (205,079 ) (180,530 ) (206,399 ) Balance at December 31, 2016 $ (822 ) $ (822 ) $ 3,937 $ 3,937 $ (277,673 ) $ (277,673 ) $ (274,558 ) $ (274,558 ) (1) Realized gain (loss) on available for sale securities is reported in the Interest income and miscellaneous expense line of the Consolidated Statements of Income. (2) Amortization (gain) of defined benefit pension items is reported in the Selling, general and administrative expense line of the Consolidated Statements of Income. (3) The effective portion of gain or loss on net debt designated as non-derivative net investment hedging instruments is recognized in Accumulated Other Comprehensive Income and is reclassified to income in the same period when a gain or loss related to the net investment is included in income. |
Business Acquisitions and Div36
Business Acquisitions and Divestitures Fiscal 2018 Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2017 | Aug. 31, 2016 | ||
Business Acquisition [Line Items] | ||||||||
Contingent consideration | $ 8,113 | $ 8,113 | $ 4,451 | |||||
Revenues | 661,900 | $ 646,774 | 1,904,023 | $ 1,931,567 | ||||
Proceeds from Divestiture of Businesses | 8,907 | 136,255 | ||||||
Gain (Loss) on Disposition of Business | [1] | (11,405) | $ 28,969 | (12,538) | (42,771) | |||
Fiscal 2018 [Member] [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price of acquired entity | 51,600 | 51,600 | ||||||
Phoenix and Endo-Tek [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price of acquired entity | $ 14,300 | |||||||
Revenues | $ 8,000 | |||||||
Series of Individually Immaterial Business Acquisitions | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration | $ 5,300 | 5,300 | ||||||
HCS [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Revenues | $ 40,000 | |||||||
Proceeds from Divestiture of Businesses | 8,200 | |||||||
Gain (Loss) on Disposition of Business | $ (12,000) | |||||||
[1] | For more information regarding our recent acquisitions and divestitures see Note 2 titled, "Business Acquisitions and Divestitures", as well as our Annual Report on Form 10-K for the year ended March 31, 2017, dated May 26, 2017. |
Business Acquisitions and Div37
Business Acquisitions and Divestitures Fiscal 2017 Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Sep. 16, 2016 | Aug. 31, 2016 | Jul. 22, 2016 | |
Business Acquisition [Line Items] | ||||||||
Revenues | $ 661,900 | $ 646,774 | $ 1,904,023 | $ 1,931,567 | ||||
Medisafe | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price of acquired entity | $ 34,500 | |||||||
Revenues | $ 18,000 | |||||||
Percent of shares acquired | 100.00% | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Cash | $ 3,751 | |||||||
Accounts receivable | 3,634 | |||||||
Inventory | 2,454 | |||||||
Property, plant, and equipment | 639 | |||||||
Other assets | 0 | |||||||
Intangible assets | 17,151 | |||||||
Goodwill | 19,599 | |||||||
Total Assets | 47,228 | |||||||
Current liabilities | 5,562 | |||||||
Non-current liabilities | 3,398 | |||||||
Total Liabilities | 8,960 | |||||||
Net Assets | $ 38,268 | |||||||
Compass Medical Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price of acquired entity | $ 16,000 | |||||||
Revenues | 6,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Cash | 0 | |||||||
Accounts receivable | 629 | |||||||
Inventory | 659 | |||||||
Property, plant, and equipment | 13 | |||||||
Other assets | 31 | |||||||
Intangible assets | 5,992 | |||||||
Goodwill | 8,987 | |||||||
Total Assets | 16,311 | |||||||
Current liabilities | 309 | |||||||
Non-current liabilities | 0 | |||||||
Total Liabilities | 309 | |||||||
Net Assets | $ 16,002 | |||||||
Phoenix Surgical Holdings, Ltd. and Endo-Tel LLP | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price of acquired entity | $ 14,300 | |||||||
Revenues | $ 8,000 | |||||||
Percent of shares acquired | 100.00% | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||
Cash | $ 769 | |||||||
Accounts receivable | 1,123 | |||||||
Inventory | 950 | |||||||
Property, plant, and equipment | 1,092 | |||||||
Other assets | 46 | |||||||
Intangible assets | 7,824 | |||||||
Goodwill | 5,938 | |||||||
Total Assets | 17,742 | |||||||
Current liabilities | 1,373 | |||||||
Non-current liabilities | 1,263 | |||||||
Total Liabilities | 2,636 | |||||||
Net Assets | $ 15,106 |
Business Acquisitions and Div38
Business Acquisitions and Divestitures Fiscal 2017 Divestitures (Details) $ in Thousands, € in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2017 | Mar. 31, 2016USD ($) | Feb. 09, 2017EUR (€) | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Revenues | $ 661,900 | $ 646,774 | $ 1,904,023 | $ 1,931,567 | |||||
Proceeds from sale of business | (8,907) | (136,255) | |||||||
Pre-tax gain or loss on sale of business | [1] | 11,405 | (28,969) | 12,538 | $ 42,771 | ||||
Loan agreement term, maximum | P15Y | ||||||||
Principal outstanding on loan receivable | $ 0 | $ 0 | |||||||
Maximum | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Loan agreement principal amount, maximum | € | € 15 | ||||||||
Years 1-4, 4% Int Rate | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Interest rate | 4.00% | 4.00% | |||||||
Years 5-15, 12% Int Rate | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Interest rate | 12.00% | 12.00% | |||||||
Netherlands Linen Management Services | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Revenues | $ 75,000 | ||||||||
Netherlands Linen Management Services | Selling, general, and administrative expense | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Pre-tax gain or loss on sale of business | $ 42,900 | ||||||||
US Linen Management Services | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Revenues | 50,000 | ||||||||
Proceeds from sale of business | (4,500) | ||||||||
US Linen Management Services | Selling, general, and administrative expense | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Pre-tax gain or loss on sale of business | 31,200 | ||||||||
Synergy Health Labs | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Revenues | 15,000 | ||||||||
Proceeds from sale of business | (26,300) | ||||||||
Synergy Health Labs | Selling, general, and administrative expense | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Pre-tax gain or loss on sale of business | (18,700) | ||||||||
Applied Infection Control | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Revenues | 50,000 | ||||||||
Proceeds from sale of business | (41,800) | ||||||||
Applied Infection Control | Selling, general, and administrative expense | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Pre-tax gain or loss on sale of business | (36,200) | ||||||||
UK Linen Management Services | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Revenues | $ 50,000 | ||||||||
Proceeds from sale of business | (65,400) | ||||||||
UK Linen Management Services | Selling, general, and administrative expense | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Pre-tax gain or loss on sale of business | $ 66,400 | ||||||||
[1] | For more information regarding our recent acquisitions and divestitures see Note 2 titled, "Business Acquisitions and Divestitures", as well as our Annual Report on Form 10-K for the year ended March 31, 2017, dated May 26, 2017. |
Inventories, Net Inventories,39
Inventories, Net Inventories, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Raw materials | $ 85,446 | $ 65,300 |
Work in process | 32,670 | 26,538 |
Finished goods | 140,003 | 140,559 |
LIFO reserve | (17,640) | (16,706) |
Reserve for excess and obsolete inventory | (20,984) | (17,854) |
Inventories, net | $ 219,495 | $ 197,837 |
Property, Plant and Equipment40
Property, Plant and Equipment Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 | ||
Property, Plant and Equipment [Line Items] | ||||
Land and land improvements | $ 49,584 | [1] | $ 46,848 | |
Buildings and leasehold improvements | 411,168 | 393,692 | ||
Machinery and equipment | 515,353 | 508,247 | ||
Information systems | 137,208 | 119,920 | ||
Radioisotope | 471,903 | 436,787 | ||
Construction in progress | [1] | 147,363 | 77,421 | |
Total property, plant, and equipment | 1,732,579 | 1,582,915 | ||
Less: accumulated depreciation and depletion | (748,738) | (667,007) | ||
Property, plant, and equipment, net | $ 983,841 | $ 915,908 | ||
[1] | Land is not depreciated. Construction in progress is not depreciated until placed in service. |
Debt Debt (Details)
Debt Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Debt Instrument [Line Items] | ||
Private Placement | $ 980,773 | $ 960,684 |
Deferred financing costs | 3,539 | 3,927 |
Credit Agreement | 442,815 | 521,604 |
Total long term debt | $ 1,420,049 | $ 1,478,361 |
Additional Consolidated Balan42
Additional Consolidated Balance Sheets Information Additional Consolidated Balance Sheets Information (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Accrued payroll and other related liabilities: | ||
Compensation and related items | $ 18,878 | $ 29,777 |
Accrued vacation/paid time off | 11,473 | 8,651 |
Accrued bonuses | 25,693 | 20,715 |
Accrued employee commissions | 13,146 | 16,201 |
Other postretirement benefit obligations-current portion | 2,187 | 2,187 |
Other employee benefit plans obligations-current portion | 1,430 | 1,044 |
Total accrued payroll and other related liabilities | 72,807 | 78,575 |
Accrued expenses and other: | ||
Deferred revenues | 77,212 | 71,020 |
Self-insured risk reserves-current portion | 8,550 | 6,633 |
Accrued dealer commissions | 15,130 | 16,122 |
Accrued warranty | 6,629 | 6,861 |
Asset retirement obligation-current portion | 1,350 | 0 |
Other | 56,533 | 54,253 |
Total accrued expenses and other | 165,404 | 154,889 |
Other liabilities: | ||
Self-insured risk reserves-long-term portion | 15,584 | 15,584 |
Other postretirement benefit obligations-long-term portion | 13,082 | 13,821 |
Defined benefit pension plans obligations-long-term portion | 26,809 | 27,234 |
Other employee benefit plans obligations-long-term portion | 3,643 | 3,661 |
Accrued long-term income taxes | 10,927 | 2,089 |
Asset retirement obligation-long-term portion | 9,445 | 9,953 |
Other | 16,949 | 10,331 |
Total other liabilities | $ 96,439 | $ 82,673 |
Income Tax Expense Income Tax E
Income Tax Expense Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Effective Income Tax Rate, Continuing Operations | (3.70%) | 128.10% | 14.00% | 38.40% |
Tax Adjustments, Settlements, and Unusual Provisions | $ 25,680 |
Business Segment Information 44
Business Segment Information Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 661,900 | $ 646,774 | $ 1,904,023 | $ 1,931,567 | |
Segment operating income | 104,172 | 25,884 | 289,831 | 168,969 | |
Restructuring Charges | [1] | 78 | 18 | 156 | 220 |
Amortization of acquired intangible assets | [2] | 16,700 | 5,598 | 50,173 | 42,908 |
Acquisition and integration related charges | [3] | 4,428 | 7,032 | 11,850 | 18,893 |
loss (gain) on fair value contingent consideration adjustments | [2] | 0 | 0 | 0 | |
Net loss on divestiture of businesses | [2] | 11,405 | (28,969) | 12,538 | 42,771 |
Amortization of inventory and property step-up to fair value | [2] | 627 | (139) | 1,895 | 4,357 |
Goodwill, Impairment Loss | [4] | 0 | 58,356 | 0 | 58,356 |
Healthcare Products | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 324,895 | 324,529 | 916,053 | 913,882 | |
Segment operating income | 64,033 | 65,708 | 153,763 | 152,531 | |
Healthcare Specialty Services | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 117,389 | 129,178 | 346,934 | 418,814 | |
Segment operating income | 6,524 | 1,903 | 21,841 | 5,746 | |
Life Sciences | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 90,895 | 78,631 | 261,291 | 241,548 | |
Segment operating income | 27,164 | 23,880 | 76,625 | 70,595 | |
Applied Sterilization Technologies | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 128,721 | 114,436 | 379,745 | 357,323 | |
Segment operating income | 43,195 | 36,647 | 127,787 | 118,595 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Segment operating income | (3,506) | (2,420) | (13,573) | (9,143) | |
Segment operating income | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 661,900 | 646,774 | 1,904,023 | 1,931,567 | |
Segment operating income | $ 137,410 | $ 125,718 | $ 366,443 | $ 338,324 | |
[1] | For more information related to restructuring, see our Annual Report on Form 10-K for the year ended March 31, 2017, dated May 26, 2017. | ||||
[2] | For more information regarding our recent acquisitions and divestitures see Note 2 titled, "Business Acquisitions and Divestitures", as well as our Annual Report on Form 10-K for the year ended March 31, 2017, dated May 26, 2017. | ||||
[3] | Acquisition and integration related charges include transaction costs and integration expenses associated with acquisition | ||||
[4] | (4) For more information related to our goodwill impairment loss, see our Annual Report on Form 10-K for the year ended March 31, 2017, dated May 26, 2017. |
Shares and Preferred Shares Ord
Shares and Preferred Shares Ordinary Shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Weighted average shares outstanding - basic | 85,004 | 85,074 | 85,097 | 85,654 |
Dilutive effect of share equivalents | 715 | 451 | 672 | 472 |
Weighted average shares outstanding and share equivalents - diluted | 85,719 | 85,525 | 85,769 | 86,126 |
Employee share option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of share options that are antidilutive | 294 | 683 | 426 | 558 |
Shares and Preferred Shares Pre
Shares and Preferred Shares Preferred Shares (Details) $ in Thousands | 9 Months Ended | |||||
Dec. 31, 2017£ / shares | Dec. 31, 2017USD ($)shares | Mar. 31, 2017£ / shares | Mar. 31, 2017USD ($)shares | Oct. 23, 2015£ / shares | Oct. 23, 2015USD ($)shares | |
Class of Stock [Line Items] | ||||||
Preferred shares, shares issued | shares | 100,000 | 100,000 | 100,000 | |||
Preferred shares, par value | £ 0.10 | £ 0.10 | ||||
Preferred shares, value issued | $ | $ 15 | $ 15 | ||||
Preferred shares, annual dividend rate | 5.00% | |||||
United States of America, Dollars | ||||||
Class of Stock [Line Items] | ||||||
Preferred shares, value issued | $ | $ 15 | |||||
United Kingdom, Pounds | ||||||
Class of Stock [Line Items] | ||||||
Preferred shares, par value | £ 0.10 | |||||
Preferred shares, redemption price per share | £ 0.10 |
Repurchases of Shares Repurchas
Repurchases of Shares Repurchases of Shares (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2017 | Aug. 09, 2016 | |
Equity, Class of Treasury Stock [Line Items] | ||
Share repurchase program, number of shares authorized | $ 300,000 | |
Shares repurchased during period, number | 436,547 | |
Aggregate value of shares repurchased pursuant to authorization | $ 38,171 | |
Shares obtained in connection with share based compensation award programs | 114,809 | |
Payments for shares obtained in connection with share based compensation programs | $ 6,197 |
Share-Based Compensation Shar48
Share-Based Compensation Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Item] | ||
Remaining shares available for grant | 4,994,447 | |
Weighted-average assumptions used for options granted: | ||
Risk-free interest rate | 2.01% | 1.29% |
Expected life of options | 5 years 8 months 16 days | 5 years 8 months 16 days |
Exptected dividend yield of stock | 1.58% | 1.54% |
Expected volatility of stock | 22.08% | 22.92% |
Estimated forfeiture rate | 2.25% | 1.85% |
Summary of share option activity: | ||
Outstanding at March 31, 2017 | 1,945,274 | |
Granted | 429,360 | |
Exercised | (267,687) | |
Forfeited | (17,497) | |
Outstanding at June 30, 2017 | 2,089,450 | |
Exercisable at June 30, 2017 | 1,201,768 | |
Weighted average exercise price: | ||
Outstanding at March 31, 2017 | $ 50.28 | |
Granted | 77.75 | |
Exercised | 34.37 | |
Forfeited | 67.13 | |
Outstanding at June 30, 2017 | 57.82 | |
Exercisable at June 30, 2017 | $ 47.97 | |
Average Remaining Contractual Term, Outstanding at June 30, 2017 | 6 years 8 months 12 days | |
Aggregate Intrinsic Value, Outstanding at June 30, 2017 | $ 61,946 | |
Average Remaining Contractual Term, Exercisable at June 30, 2017 | 5 years 4 months 24 days | |
Aggregate Intrinsic Value, Exercisable at June 30, 2017 | $ 47,473 | |
Non-vested stock options outstanding expected to vest | 869,452 | |
Ordinary shares, closing price | $ 87.47 | |
Total intrinsic value of stock options exercised | $ 12,495 | $ 4,160 |
Net cash proceeds from the exercise of stock options | $ 9,080 | $ 3,221 |
Weighted average grant date fair value of stock option grants, per share | $ 15.51 | $ 13.42 |
Summary of non-vested restricted share activity: | ||
Unrecognized compensation cost related to nonvested share-based compensation granted | $ 40,019 | |
Weighted Average Period For Total Compensation Expense Not Yet Recognized | 2 years 2 months 9 days | |
Stock Appreciation Rights (SARs) [Member] | ||
Weighted average exercise price: | ||
FairValueOfOutstandingStockAppreciationRights | $ 1,733 | $ 1,736 |
Restricted Stock | ||
Summary of non-vested restricted share activity: | ||
Number of Restricted Shares, Non-vested at Beginning of Period | 780,526 | |
Weighted-Average Grant Date Fair Value, Non-vested at Beginning of Period | $ 60.87 | |
Number of Restricted Shares, Granted | 233,107 | |
Weighted-Average Grant Date Fair Value, Granted | $ 77.93 | |
Number of Restricted Shares, Vested | (206,388) | |
Weighted-Average Grant Date Fair Value, Vested | $ 54.86 | |
Number of Restricted Shares, Canceled | (33,758) | |
Weighted-Average Grant Date Fair Value, Canceled | $ 68.73 | |
Number of Restricted Shares, Non-vested at End of Period | 773,487 | |
Weighted-Average Grant Date Fair Value, Non-vested at End of Period | $ 67.64 | |
Fair Value, Share-based Payment Awards, Other than Options | $ 12,484 | |
Restricted Stock Units (RSUs) | ||
Summary of non-vested restricted share activity: | ||
Number of Restricted Shares, Non-vested at Beginning of Period | 34,013 | |
Number of Restricted Shares, Granted | 23,259 | |
Number of Restricted Shares, Vested | (21,181) | |
Number of Restricted Shares, Canceled | (660) | |
Number of Restricted Shares, Non-vested at End of Period | 35,431 |
Financial and Other Guarantee49
Financial and Other Guarantees Financial and Other Guarantees (Details) $ in Thousands | 9 Months Ended |
Dec. 31, 2017USD ($) | |
Product Warranty Liability [Line Items] | |
Balance, March 31, 2017 | $ 6,861 |
Warranties issued during the period | 8,953 |
Settlement made during the period | (9,185) |
Balance, June 30, 2017 | $ 6,629 |
Financial and Other Guarantee50
Financial and Other Guarantees Deferred Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 |
Deferred Revenue [Abstract] | ||
Deferred Service Revenue | $ 33,311 | $ 34,264 |
Derivatives and Hedging Fair Va
Derivatives and Hedging Fair Value of Derivatives, Balance Sheet Location (Details) $ in Thousands, € in Millions, £ in Millions, MXN in Millions, CAD in Millions, BRL in Millions | 3 Months Ended | ||||||
Dec. 31, 2017MXNlb | Dec. 31, 2017GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2017CAD | Dec. 31, 2017BRL | Dec. 31, 2017EUR (€) | Mar. 31, 2017USD ($) | |
Derivative [Line Items] | |||||||
Non-derivative Net Investment Hedge | $ 66,400 | ||||||
Prepaid & Other | |||||||
Derivative [Line Items] | |||||||
Asset derivatives | 502 | $ 160 | |||||
Liability derivatives | 0 | 0 | |||||
Accrued expenses and other | |||||||
Derivative [Line Items] | |||||||
Asset derivatives | 0 | 0 | |||||
Liability derivatives | $ 839 | $ 35 | |||||
Commodity swap contracts | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount, weight | lb | 177,200 | ||||||
Mexican peso | Foreign currency forward contracts | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | MXN | MXN 128.6 | ||||||
Canadian dollar | Foreign currency forward contracts | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | CAD | CAD 13.7 | ||||||
Brazilian reals | Foreign currency forward contracts | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | BRL | BRL 3.8 | ||||||
euro | Foreign currency forward contracts | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | € | € 3.8 | ||||||
British pounds sterling | Foreign currency forward contracts | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | £ | £ 1.6 |
Derivatives and Hedging Gain (L
Derivatives and Hedging Gain (Loss) on Derivatives, Income Statement Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign currency forward contracts | Selling, general, and administrative expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income | $ (842) | $ (945) | $ (1,358) | $ (2,495) |
Commodity swap contracts | Cost of revenues | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain (loss) recognized in income | $ (200) | $ 24 | $ (226) | $ (392) |
Fair Value Measurements Fair 53
Fair Value Measurements Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 | |
Assets: | |||
Investments | $ 19,172 | $ 12,552 | |
Liabilities: | |||
Contingent consideration obligations | 8,113 | 4,451 | |
Level 1 | |||
Assets: | |||
Cash and cash equivalents | 283,844 | 282,918 | |
Forward and swap contracts | [1] | 0 | 0 |
Investments | [2] | 19,172 | 12,552 |
Liabilities: | |||
Forward and swap contracts | [1] | 0 | 0 |
Deferred compensation plans | [2] | 1,818 | 1,677 |
Long term debt | [3] | 0 | 0 |
Contingent consideration obligations | [4] | 0 | 0 |
Level 2 | |||
Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Forward and swap contracts | [1] | 502 | 160 |
Investments | [2] | 0 | 0 |
Liabilities: | |||
Forward and swap contracts | [1] | 839 | 35 |
Deferred compensation plans | [2] | 0 | 0 |
Long term debt | [3] | 1,443,978 | 1,496,966 |
Contingent consideration obligations | [4] | 0 | 0 |
Level 3 | |||
Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Forward and swap contracts | [1] | 0 | 0 |
Investments | [2] | 0 | 0 |
Liabilities: | |||
Forward and swap contracts | [1] | 0 | 0 |
Deferred compensation plans | [2] | 0 | 0 |
Long term debt | [3] | 0 | 0 |
Contingent consideration obligations | [4] | 8,113 | 4,451 |
Carrying Value | |||
Assets: | |||
Cash and cash equivalents | 283,844 | 282,918 | |
Forward and swap contracts | [1] | 502 | 160 |
Investments | [2] | 19,172 | 12,552 |
Liabilities: | |||
Forward and swap contracts | [1] | 839 | 35 |
Deferred compensation plans | [2] | 1,818 | 1,677 |
Long term debt | [3] | 1,420,049 | 1,478,361 |
Contingent consideration obligations | [4] | $ 8,113 | $ 4,451 |
[1] | (1) The fair values of forward and swap contracts are based on period-end forward rates and reflect the value of the amount that we would pay or receive for the contracts involving the same notional amounts and maturity dates. | ||
[2] | We maintain a frozen domestic non-qualified deferred compensation plan covering certain employees, which allows for the deferral of payment of previously earned compensation for an employee-specified term or until retirement or termination. Amounts deferred can be allocated to various hypothetical investment options (compensation deferrals have been frozen under the plan). We hold investments to satisfy the future obligations of the plan. Changes in the value of the investment accounts are recognized each period based on the fair value of the underlying investments. Employees who made deferrals are entitled to receive distributions of their hypothetical account balances (amounts deferred, together with earnings (losses)). We also hold an investment in the common stock of Servizi Italia, S.p.A, a leading provider of integrated linen washing and outsourced sterile processing services to hospital Customers. Changes in the value of the investment are recognized each period based on the fair value of the investment. | ||
[3] | We estimate the fair value of our long-term debt using discounted cash flow analyses, based on our current incremental borrowing rates for similar types of borrowing arrangements. | ||
[4] | Contingent consideration obligations arise from business acquisitions. The fair values are based on discounted cash flow analyses reflecting the possible achievement of specified performance measures or events and captures the contractual nature of the contingencies, commercial risk, and the time value of money. Contingent consideration obligations are classified in the consolidated balance sheets as accrued expense (short-term) and other liabilities (long-term), as appropriate based on the contractual payment dates. |
Fair Value Measurements Conting
Fair Value Measurements Contingent Consideration Rollforward (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2017 | Mar. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Contingent consideration | $ 8,113 | $ 4,451 |
Additions | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in contingent consideration | 5,310 | |
Payments | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in contingent consideration | (1,735) | |
Foreign currency translation adjustment | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in contingent consideration | $ 87 |
Fair Value Measurements Availab
Fair Value Measurements Available-for-sale securities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | $ 12,106 | $ 12,128 | |
Unrealized gains | [1] | 7,066 | 496 |
Unrealized losses | [1] | 0 | 72 |
Fair value | 19,172 | 12,552 | |
Marketable equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 11,037 | 11,037 | |
Unrealized gains | [1] | 6,418 | 0 |
Unrealized losses | [1] | 0 | 72 |
Fair value | 17,455 | 10,965 | |
Mutual funds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Cost | 1,069 | 1,091 | |
Unrealized gains | [1] | 648 | 496 |
Unrealized losses | [1] | 0 | 0 |
Fair value | $ 1,717 | $ 1,587 | |
[1] | Amounts reported include the impact of currency movements relative to the U.S. dollar. |
Reclassifications out of Accu56
Reclassifications out of Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | ||
Reclassifications from AOCI [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (54,983) | $ (274,558) | $ (54,983) | $ (274,558) | $ (80,059) | $ (240,702) | $ (94,028) | $ (68,159) | |
Other Comprehensive (Loss) Income, Available-for-sale Securities Adjustment, Net of Tax | (2,738) | 55 | (4,509) | 149 | |||||
Other Comprehensive Income (Loss), Net of Tax | 25,591 | (180,050) | 187,256 | (204,970) | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 515 | 480 | (1,537) | (1,429) | |||||
Other Comprehensive (Loss) Income, Net of Tax, Portion Attributable to Parent | (25,076) | 180,530 | (185,719) | 206,399 | |||||
Gain (Loss) on Available for Sale Securities | |||||||||
Reclassifications from AOCI [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | [1] | 4,687 | (822) | 4,687 | (822) | 1,949 | 178 | (767) | (673) |
Other Comprehensive (Loss) Income, Available-for-sale Securities Adjustment, Net of Tax | [1] | (2,729) | 68 | 4,474 | (199) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [1] | (9) | (13) | (35) | (50) | ||||
Other Comprehensive (Loss) Income, Net of Tax, Portion Attributable to Parent | [1] | (2,738) | 55 | 4,509 | (149) | ||||
Defined Benefit Plans | |||||||||
Reclassifications from AOCI [Line Items] | |||||||||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | [2] | 3,567 | (3,937) | 3,567 | (3,937) | 3,163 | (2,355) | (4,328) | 5,108 |
Other Comprehensive Income (Loss), Net of Tax | [2] | (120) | (102) | 360 | 308 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [2] | 524 | 493 | (1,572) | (1,479) | ||||
Other Comprehensive (Loss) Income, Net of Tax, Portion Attributable to Parent | [2] | 404 | 391 | 1,212 | 1,171 | ||||
Foreign Currency Translation | |||||||||
Reclassifications from AOCI [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | [3] | (56,103) | (277,673) | (56,103) | (277,673) | $ (78,845) | $ (238,525) | $ (97,589) | $ (72,594) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | [3] | 22,742 | (180,084) | 182,422 | (205,079) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [3] | 0 | 0 | 0 | 0 | ||||
Other Comprehensive (Loss) Income, Net of Tax, Portion Attributable to Parent | [3] | $ (22,742) | $ 180,084 | $ (182,422) | $ 205,079 | ||||
[1] | Realized gain (loss) on available for sale securities is reported in the Interest income and miscellaneous expense line of the Consolidated Statements of Income. | ||||||||
[2] | 2) Amortization (gain) of defined benefit pension items is reported in the Selling, general and administrative expense line of the Consolidated Statements of Income. | ||||||||
[3] | The effective portion of gain or loss on net debt designated as non-derivative net investment hedging instruments is recognized in Accumulated Other Comprehensive Income and is reclassified to income in the same period when a gain or loss related to the net investment is included in income |