LivaNova (LIVN) 10-Q 9 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 07, 2017
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Entity Registrant Name	LIVANOVA PLC
Entity Central Index Key	1,639,691
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		48,181,815
Trading Symbol	LIVN

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Net sales	$ 321,387	$ 321,047	$ 606,492	$ 608,016
Cost of sales	108,888	130,654	210,351	254,221
Product remediation	1,723	848	931	1,554
Gross profit	210,776	189,545	395,210	352,241
Operating expenses:
Selling, general and administrative	120,369	120,645	232,766	236,511
Research and development	43,007	30,211	72,658	61,901
Merger and integration expenses	3,522	6,200	5,730	12,961
Restructuring expenses	1,118	4,246	11,268	32,838
Amortization of intangibles	11,681	6,292	23,095	22,184
Total operating expenses	179,697	167,594	345,517	366,395
Income (loss) from operations	31,079	21,951	49,693	(14,154)
Interest income	252	321	525	534
Interest expense	(1,578)	(1,978)	(3,893)	(3,170)
Gain on acquisition of Caisson Interventional, LLC	39,428	0	39,428	0
Foreign exchange and other (losses) gains	(2,973)	617	466	(1,218)
Income (loss) before income taxes	66,208	20,911	86,219	(18,008)
Income tax expense	3,313	8,418	8,968	7,160
Losses from equity method investments	(15,397)	(3,536)	(18,482)	(6,253)
Net income (loss)	$ 47,498	$ 8,957	$ 58,769	$ (31,421)
Basic income (loss) per share (in Dollars per Share)	$ 0.99	$ 0.18	$ 1.22	$ (0.64)
Diluted income (loss) per share (in Dollars per Share)	$ 0.98	$ 0.18	$ 1.22	$ (0.64)
Shares used in computing basic income (loss) per share (in Shares)	48,140	49,056	48,104	48,987
Shares used in computing diluted income (loss) per share (in Shares)	48,303	49,162	48,241	48,987

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 47,498	$ 8,957	$ 58,769	$ (31,421)
Other comprehensive income (loss):
Net change in unrealized loss on derivatives	(1,310)	(3,501)	(3,943)	(7,266)
Tax effect	559	1,800	1,283	2,186
Net of tax	(751)	(1,701)	(2,660)	(5,080)
Foreign currency translation adjustment, net of tax	56,587	(14,098)	72,017	34,403
Total other comprehensive income (loss)	55,836	(15,799)	69,357	29,323
Total comprehensive income (loss)	$ 103,334	$ (6,842)	$ 128,126	$ (2,098)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 42,690	$ 39,789
Accounts receivable, net	305,355	275,730
Inventories	204,680	183,489
Prepaid and refundable taxes	55,584	60,615
Assets held for sale	13,859	4,477
Prepaid expenses and other current assets	49,213	55,973
Total Current Assets	671,381	620,073
Property, plant and equipment, net	211,164	223,842
Goodwill	763,525	691,712
Intangible assets, net	713,176	609,197
Investments	41,013	61,092
Deferred tax assets, net	11,981	6,017
Other assets	121,445	130,698
Total Assets	2,533,685	2,342,631
Current Liabilities:
Current debt obligations	55,776	47,650
Accounts payable	105,109	92,952
Accrued liabilities and other	90,046	75,567
Taxes payable	22,654	22,340
Accrued employee compensation and related benefits	68,863	78,302
Total Current Liabilities	342,448	316,811
Long-term debt obligations	69,741	75,215
Deferred income taxes liability	169,208	172,541
Long-term employee compensation and related benefits	33,102	31,668
Other long-term liabilities	75,666	39,487
Total Liabilities	690,165	635,722
Commitments and contingencies (Note 9)
Stockholders’ Equity:
Ordinary Shares, £1.00 par value: unlimited shares authorized; 48,215,885 shares issued and 48,163,627 shares outstanding at June 30, 2017; 48,156,690 shares issued and 48,028,413 shares outstanding at December 31, 2016	74,652	74,578
Additional paid-in capital	1,726,235	1,719,893
Accumulated other comprehensive income (loss)	870	(68,487)
Retained earnings (deficit)	44,194	(14,575)
Treasury stock at cost, 52,258 shares at June 30, 2017 and 128,277 shares at December 31, 2016	(2,431)	(4,500)
Total Stockholders’ Equity	1,843,520	1,706,909
Total Liabilities and Stockholders’ Equity	$ 2,533,685	$ 2,342,631

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) - £ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Ordinary shares, par value (in Pounds per Share)	£ 1	£ 1
Ordinary shares issued (shares)	48,215,885	48,156,690
Ordinary shares outstanding (shares)	48,163,627	48,028,413
Treasury stock (shares)	52,258	128,277

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Accumulated Other Comprehensive Income (Loss)
Beginning Balance at Dec. 31, 2015		$ (54,228)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ (31,421)
Other comprehensive income	29,323
Ending Balance at Jun. 30, 2016		(24,905)
Beginning Balance at Dec. 31, 2016	$ 1,706,909	(68,487)
Balance (shares) at Dec. 31, 2016	48,156,690
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 58,769
Other comprehensive income	69,357
Ending Balance at Jun. 30, 2017	$ 1,843,520	$ 870
Balance (shares) at Jun. 30, 2017	48,215,885

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating Activities:
Net income (loss)	$ 58,769	$ (31,421)
Non-cash items included in net income (loss):
Depreciation	17,998	19,483
Amortization	23,095	22,184
Stock-based compensation	8,564	10,807
Deferred income tax benefit	(19,791)	(12,845)
Losses from equity method investments	18,482	6,253
Gain on acquisition of Caisson Interventional, LLC	(39,428)	0
Impairment of property, plant and equipment	4,581	0
Amortization of income taxes payable on inter-company transfers of property	17,770	8,656
Other	1,830	4,723
Changes in operating assets and liabilities:
Accounts receivable, net	(15,912)	(27,174)
Inventories	(6,927)	24,735
Other current and non-current assets	(13,904)	(14,998)
Restructuring reserve	(11,129)	16,803
Accounts payable and accrued current and non-current liabilities	(12,438)	(14,622)
Net cash provided by operating activities	31,560	12,584
Investing Activities:
Purchases of property, plant and equipment and other	(14,923)	(16,656)
Acquisition of Caisson Interventional, LLC, net of cash acquired	(14,194)	0
Proceeds from sale of cost method investment	3,192	0
Proceeds from asset sales	5,170	0
Purchases of short-term investments	0	(7,028)
Maturities of short-term investments	0	7,026
Other	(145)	609
Net cash used in investing activities	(20,900)	(16,049)
Financing Activities:
Change in short-term borrowing, net	(12,812)	(15,599)
Proceeds from short-term borrowing (maturities greater than 90 days)	20,000	0
Repayment of long-term debt obligations	(11,306)	(11,066)
Loans to cost and equity method investees	(6,834)	(3,775)
Repayment of trade receivable advances	0	(21,626)
Proceeds from exercise of stock options and SARs	2,442	4,722
Other	(1,691)	1,168
Net cash used in financing activities	(10,201)	(46,176)
Effect of exchange rate changes on cash and cash equivalents	2,442	914
Net increase (decrease) in cash and cash equivalents	2,901	(48,727)
Cash and cash equivalents at beginning of period	39,789	112,613
Cash and cash equivalents at end of period	$ 42,690	$ 63,886

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Financial Statements	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Unaudited Condensed Consolidated Financial Statements	Unaudited Condensed Consolidated Financial Statements Basis of Presentation The accompanying condensed consolidated financial statements of LivaNova as of, and for the three and six months ended , June 30, 2017 and June 30, 2016 , have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S.” and such principles, “U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of regulation S-X. The accompanying condensed consolidated balance sheet of LivaNova at December 31, 2016 has been derived from audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2016 , but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the operating results of LivaNova and its subsidiaries, for the three and six months ended June 30, 2017 and are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . The financial information presented herein should be read in conjunction with the audited consolidated financial statements and notes thereto accompanying our Annual Report on Form 10-K for the year ended December 31, 2016 . Description of the Mergers On October 19, 2015 LivaNova became the holding company of the combined businesses of Cyberonics, Inc. (“Cyberonics”) and Sorin S.p.A. (“Sorin”) (the “Mergers”). Based on the structure of the Mergers, management determined that Cyberonics was considered to be the accounting acquirer and predecessor for accounting purposes. Reclassification of Prior Year Comparative Period Presentation To conform the condensed consolidated statement of income (loss) for the three and six months ended June 30, 2016 , to the current period presentation, we reclassified $0.8 million and $1.6 million , respectively, of Litigation Related Expenses to the Product Remediation line, and $0.5 million and $0.8 million , respectively, of Litigation Related Expenses to Selling, General and Administrative Expenses. To conform the condensed consolidated balance sheet as of December 31, 2016 to the current period presentation, we reclassified $4.5 million of Assets Held for Sale, relating to our plan to exit the Costa Rica manufacturing operation, to a separate line item in the condensed consolidated balance sheet from Prepaid Expenses and Other Current Assets. We received $4.9 million in proceeds from the sale of our Costa Rica manufacturing operation during the three months ended June 30, 2017. To conform the condensed consolidated statement of cash flows for the six months ended June 30, 2016 to the current period presentation, certain amounts were reclassified within Operating Activities. Significant Accounting Policies Our significant accounting policies are detailed in "Note 2: Basis of Presentation, Use of Accounting Estimates and Significant Accounting Policies" of our Annual Report on Form 10-K for the year ended December 31, 2016. A further explanation of our Foreign Currency accounting policy is discussed below: Foreign Currency Our functional currency is the U.S. dollar, however, a portion of the revenues earned and expenses incurred by certain of our subsidiaries are denominated in currencies other than the U.S. dollar. We determine the functional currency of our subsidiaries that exist and operate in different economic and currency environments based on the primary economic environment in which the subsidiary operates, that is, the currency of the environment in which an entity primarily generates and expends cash. Our significant foreign subsidiaries are located in Europe and the U.S. The functional currency of our significant European subsidiaries is the euro and the functional currency of our significant U.S. subsidiaries is the U.S. dollar. Assets and liabilities for subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars based on a combination of both current and historical exchange rates, while their revenues earned and expenses incurred are translated into U.S. dollars at average period exchange rates. Translation adjustments are included as in Accumulated Other Comprehensive Income (Loss) in the condensed consolidated balance sheets. Gains and losses arising from transactions denominated in a currency different from an entity’s functional currency are included in Foreign exchange and other gains (losses) in our condensed consolidated statements of income (loss).

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Acquisitions	Acquisitions In support of our strategic growth initiatives, on May 2, 2017, we acquired the remaining 51% equity interests in Caisson Interventional, LLC (“Caisson”) for a purchase price of up to $72.0 million , net of $6.3 million of debt forgiveness, consisting of $18.0 million paid at closing, $14.4 million to be paid after 12 months, and contingent consideration of up to $39.6 million to be paid on a schedule driven primarily by regulatory approvals and sales earnouts. Caisson, a clinical-stage medical device company based in Maple Grove, Minnesota, is focused on the design, development and clinical evaluation of a novel transcatheter mitral valve replacement (“TMVR”) implant device with a fully transvenous delivery system. The following table presents the acquisition date fair-value of the consideration transferred and the fair value of our interest in Caisson prior to the acquisition (in thousands): Cash (1) $ 15,660 Debt forgiven (2) 6,309 Deferred consideration (1) 12,994 Contingent consideration (1) 29,303 Fair value of consideration transferred 64,266 Fair value of our interest prior to the acquisition (2) 52,505 Fair value of total consideration $ 116,771 (1) Concurrent with the acquisition, we recognized $5.8 million of post-combination compensation expense. Of this amount, $2.4 million is reflected as a reduction of $18.0 million in cash paid at closing of the acquisition, while $3.4 million increased the deferred consideration and contingent consideration liabilities recognized at the date of the acquisition to a total of $14.1 million and $31.7 million , respectively. (2) On the acquisition date, we remeasured the notes receivable from Caisson and our existing investment in Caisson at fair value and recognized a pre-tax non-cash gain of $1.3 million and $38.1 million , respectively, which are included in Gain on acquisition of Caisson Interventional, LLC in the condensed consolidated statements of income (loss). The following table presents the preliminary purchase price allocation at fair value for the Caisson acquisition (in thousands): Cash and cash equivalents $ 1,468 In-process research and development 89,000 Goodwill 42,417 Other assets 918 Current liabilities 1,023 Deferred income tax liabilities, net 16,009 Net assets acquired $ 116,771 Acquired goodwill of $9.6 million is expected to be deductible for tax purposes. Additionally, $3.0 million of the initial cash payment has been deposited in escrow for future claims indemnification. Of this amount, $2.0 million is included in Prepaid expenses and other current assets and the remaining $1.0 million is included in Other long-term assets on the condensed consolidated balance sheet at June 30, 2017. We recognized acquisition-related expense of approximately $1.0 million for legal and valuation expenses during the three months ended June 30, 2017. These expenses are included within selling, general and administrative expenses in the condensed consolidated statements of income (loss). Additionally, the results of Caisson for the period of May 2, 2017 through June 30, 2017 added no revenue and $2.0 million in expenses in our condensed consolidated statement of income (loss) for the three and six months ended June 30, 2017 . The contingent consideration arrangements are composed of potential cash payments upon the achievement of certain regulatory milestones and a sales-based earnout associated with sales of products covered by the purchase agreement. The sales-based earnout was valued using projected sales from our internal strategic plans. Both arrangements are Level 3 fair value measurements and include the following significant unobservable inputs (in thousands): Fair value at May 2, 2017 Valuation Technique Unobservable Input Ranges Regulatory milestone-based payments $ 14,883 Discounted cash flow Discount rate 2.6% - 3.4% Probability of payment 90-95% Projected payment years 2018-2023 Sales-based earnout 16,805 Monte Carlo simulation Discount rate 11.5-12.7% Sales volatility 36.9% Projected years of sales 2019-2033 $ 31,688

Restructuring

Restructuring	6 Months Ended
	Jun. 30, 2017
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring Our 2015 and 2016 Reorganization Plans (the “Plans”) were initiated October 2015 and March 2016, respectively, in conjunction with the completion of the Mergers. We initiated these plans to leverage economies of scale, streamline distribution and logistics and strengthen operational and administrative effectiveness in order to reduce overall costs. Costs associated with these plans were reported as ‘Restructuring expenses’ in our operating results in the condensed consolidated statements of income (loss). We estimate that the Plans will result in a net reduction of approximately 323 personnel of which 270 have occurred as of June 30, 2017 . In March 2017, we committed to a plan to sell our Suzhou Industrial Park facility in Shanghai, China. As a result of this exit plan we recorded an impairment of the building and equipment of $4.6 million and accrued $0.5 million of additional costs, primarily related to employee severance, during the six months ended June 30, 2017 . In addition, the remaining carrying value of the land, building and equipment was reclassified to Assets Held for Sale in March 2017, with a balance of $13.9 million as of June 30, 2017 , on the condensed consolidated balance sheet. The following table presents restructuring expense accrual detail (in thousands): Employee severance and other termination costs Other Total Balance at December 31, 2016 $ 21,092 $ 3,056 $ 24,148 Charges 6,193 5,075 11,268 Cash payments and adjustments (20,312 ) (5,457 ) (25,769 ) Balance at June 30, 2017 $ 6,973 $ 2,674 $ 9,647 The following table presents restructuring expense by reportable segment (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cardiac Surgery $ 501 $ 751 $ 6,503 $ 4,962 Cardiac Rhythm Management (1,479 ) 855 (1,359 ) 16,021 Neuromodulation (185 ) 1,973 499 4,136 Other 2,281 667 5,625 7,719 Total $ 1,118 $ 4,246 $ 11,268 $ 32,838

Product Remediation Liability

Product Remediation Liability	6 Months Ended
	Jun. 30, 2017
Environmental Remediation Obligations [Abstract]
Product Remediation Liability	Product Remediation Liability At December 31, 2016, we recognized a liability for a product remediation plan related to our 3T Heater-Cooler device (“3T device”). The remediation plan we developed consists primarily of a modification of the 3T device design to include internal sealing and addition of a vacuum system to new and existing devices. These changes are intended to address regulatory actions and further reduce the risk of possible dispersion of aerosols from 3T devices in the operating room. The deployment of this solution for commercially distributed devices will occur upon final validation and verification of the design changes and approval or clearance by regulatory authorities worldwide, including FDA clearance in the United States (“U.S.”) In April 2017, we obtained CE Mark in Europe for the design change of the 3T device. As part of this plan, we also intend to perform a no-charge deep disinfection service for 3T device users who have reported confirmed M. chimaera mycobacterium contamination. Although the deep disinfection service is not yet available in the U.S., it is currently offered in many countries around the world and will be expanded to additional geographies as regulatory approvals are received. We are continuing with the loaner program for 3T devices, initiated in the fourth quarter of 2016, to provide existing 3T device users with a new loaner 3T device at no charge pending regulatory approval and implementation of the vacuum system addition and deep disinfection service worldwide. This loaner program began in the U.S. and is being progressively made available on a global basis, prioritizing and allocating devices to 3T device users based on pre-established criteria. Finally, in May 2017 we completed our first vacuum and sealing upgrade on a customer-owned device. As capacity of upgrade components increases, we anticipate expanding the vacuum and sealing upgrade program to as many countries as possible throughout the remainder of 2017. Changes in the carrying amount of the product remediation liability are as follows (in thousands): Balance at December 31, 2016 $ 33,487 Adjustments (15 ) Remediation activity (3,076 ) Effect of changes in foreign currency exchange rates 1,579 Balance at June 30, 2017 $ 31,975 It is reasonably possible that our estimate of the remediation liability could materially change in future periods due to the various significant assumptions involved such as customer behavior, market reaction and the timing of approvals or clearance by regulatory authorities worldwide. We recognize changes in estimates on a prospective basis. For further information, please refer to “Note 9. Commitments and Contingencies - 3T Heater-Cooler Devices.” At this stage, no liability has been recognized with respect to any lawsuits involving us related to the 3T device, while related legal costs are expensed as incurred.

Investments

Investments	6 Months Ended
	Jun. 30, 2017
Investments [Abstract]
Investments	Investments Cost-Method Investments Our cost-method investments are included in Investments in the condensed consolidated balance sheets and consist of our equity positions in the following privately-held companies (in thousands): June 30, 2017 December 31, 2016 Respicardia Inc. (1) $ 20,046 $ 17,518 ImThera Medical, Inc. (2) 12,000 12,000 Rainbow Medical Ltd. (3) 4,045 3,733 MD Start II 571 526 Other (4) 145 — $ 36,807 $ 33,777 (1) Respicardia Inc. (“Respicardia”) is a privately funded U.S. company developing an implantable device designed to restore a more natural breathing pattern during sleep in patients with central sleep apnea ("CSA") by transvenously stimulating the phrenic nerve. During the six months ended June 30, 2017, we loaned Respicardia $1.4 million , which is included in Prepaid expenses and other current assets on the condensed consolidated balance sheet. (2) ImThera Medical Inc. (“ImThera”) is a privately funded U.S. company developing a neurostimulation device system for the treatment of obstructive sleep apnea. During the six months ended June 30, 2017, we loaned ImThera $1.0 million , which is included in Other assets on the condensed consolidated balance sheet. (3) Rainbow Medical Ltd. is a private Israeli venture capital company that seeds and grows companies developing medical devices in a diverse range of medical fields. (4) During the six months ended June 30, 2017, we sold our investment in Istituto Europeo di Oncologia S.R.L, for a gain of $3.2 million . This gain is included in Foreign exchange and other (losses) gains in the condensed consolidated statement of income (loss). Equity Method Investments Our equity-method investments consist of our equity position in the following entities (in thousands, except for percent ownership): % Ownership (1) June 30, 2017 December 31, 2016 Caisson Interventional LLC (2) $ — $ 16,423 Highlife S.A.S. (3) 38.0 % 883 6,009 MicroPort Sorin CRM (Shanghai) Co. Ltd. 49.0 % 3,306 4,867 Other 17 16 Total $ 4,206 $ 27,315 (1) Ownership percentages as of June 30, 2017 . (2) On May 2, 2017, we acquired the 51% remaining equity interests in Caisson Interventional LLC (“Caisson”), and we began consolidating the results of Caisson as of the acquisition date. Refer to “Note 2. Acquisitions” and to “Note 6. Fair Value Measurements” for further information. (3) Highlife S.A.S is a privately held clinical-stage medical device company located in France and is focused on the development of a unique transcatheter mitral valve replacement system to treat patients with mitral regurgitation. During the three months ended June 30, 2017, we recognized an impairment of our investment in, and notes receivable from, Highlife, see the paragraph below for further details. Highlife Impairment We recognized an impairment of our equity-method investment in, and notes receivable from, Highlife S.A.S. (“Highlife”) during the three months ended June 30, 2017 . Certain factors, including a revision in our investment strategy, indicated that the carrying value of our aggregate investment might not be recoverable and that the decrease in value of our aggregate investment was other than temporary. We, therefore, estimated the fair value of our investment and notes receivable using the market approach. The estimated fair value of our aggregate investment was below our carrying value by $13.0 million . This aggregate impairment was included in Losses from Equity Method Investments in the condensed consolidated statements of income (loss). The updated carrying value of our notes receivable from Highlife at June 30, 2017 was $0.8 million and is included in Other Assets on the condensed consolidated balance sheet.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table provides information by level for assets and liabilities that are measured at fair value on a recurring basis (in thousands): Fair Value Fair Value Measurements Using Inputs Considered as: June 30, 2017 Level 1 Level 2 Level 3 Assets: Derivative assets - designated as cash flow hedges (FX) $ 1,813 $ — $ 1,813 $ — Liabilities: Derivative liabilities - designated as cash flow hedges (interest rate swaps) $ 1,899 $ — $ 1,899 $ — Derivative liabilities - freestanding instruments (FX) 84 — 84 — Contingent payments (1) 36,080 — — 36,080 $ 38,063 $ — $ 1,983 $ 36,080 Fair Value Fair Value Measurements Using Inputs Considered as: December 31, 2016 Level 1 Level 2 Level 3 Assets: Derivative assets - designated as cash flow hedges (FX) $ 4,911 $ — $ 4,911 $ — Derivative assets - freestanding instruments (FX) 3,358 — 3,358 — $ 8,269 $ — $ 8,269 $ — Liabilities: Derivative liabilities - designated as cash flow hedges (FX) $ 942 $ — $ 942 $ — Derivative Liabilities - designated as cash flow hedges (interest rate swaps) 1,392 — 1,392 — Contingent payments (1) 3,890 — — 3,890 $ 6,224 $ — $ 2,334 $ 3,890 (1) These contingent payments arose as a result of acquisitions, refer to “Note 15. Supplemental Financial Information - Other Long-Term Liabilities” for further information.

Financing Arrangements

Financing Arrangements	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Financing Arrangements	Financing Arrangements The outstanding principal amount of long-term debt (in thousands, except interest rates): June 30, 2017 December 31, 2016 Maturity Interest Rate European Investment Bank (1) $ 76,072 $ 78,987 June 2021 0.95 % Banca del Mezzogiorno (2) 6,283 6,747 December 2019 0.50% - 3.15% Mediocredito Italiano (3) 7,404 7,276 December 2023 0.50% - 3.07% Bpifrance (ex-Oséo) 1,724 1,909 October 2019 2.58 % Region Wallonne 804 798 December 2023 and June 2033 0.00% - 2.42% Mediocredito Italiano - mortgages and other 803 799 September 2021 and September 2026 0.40% - 0.65% Total debt 93,090 96,516 Less current portion of long-term debt 23,349 21,301 Total long-term debt $ 69,741 $ 75,215 (1) The European Investment Bank (“EIB”) loan was obtained in July 2014 to support product development projects. The interest rate for the EIB loan is reset by the lender each quarter based on the Euribor. Interest payments are paid quarterly and principal payments are paid semi-annually. (2) The Banca del Mezzogiorno loan was obtained in January 2015 to support R&D projects as a part of the Large Strategic Project program of the Italian Ministry of Education. (3) We obtained the Mediocredito Italiano Bank loan in July 2016 as part of the Fondo Innovazione Teconologica program implemented by the Italian Ministry of Education. Revolving Credit The outstanding principal amount of our short-term unsecured revolving credit agreements and other agreements with various banks was $32.4 million and $26.4 million , at June 30, 2017 and December 31, 2016 , respectively, with interest rates ranging from 0.2% to 12.6% and loan terms ranging from one day to 365 days . European Investment Bank Financing Agreement On June 29, 2017 , we entered into a new finance contract (the “Finance Contract”) with the EIB to support financing of certain of our R&D projects. The Finance Contract has a borrowing base of €100 million (or approximately $114 million USD equivalent) and can be drawn in up to two tranches, each in a minimum amount of €50 million (or approximately $57 million USD equivalent). Drawdowns must occur by December 30, 2018 , and the last repayment date of any tranche will be no earlier than four years and no later than eight years after the disbursement of the relevant tranche. Loans under the Finance Contract are subject to certain covenants and other terms and conditions. No loan drawdowns have occurred as of June 30, 2017 .

Derivatives and Risk Management

Derivatives and Risk Management	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and Risk Management	Derivatives and Risk Management Due to the global nature of our operations, we are exposed to foreign currency exchange rate fluctuations. In addition, due to certain loans with floating interest rates, we are also subject to the impact of changes in interest rates on our interest payments. We enter into foreign currency exchange rate (“FX”) derivative contracts and interest rate swap contracts to reduce the impact of foreign currency rate and interest rate fluctuations on earnings and cash flow. We measure all outstanding derivatives each period end at fair value and report the fair value as either financial assets or liabilities in the consolidated balance sheets. We do not enter into derivative contracts for speculative purposes. At inception of the contract, the derivative is designated as either a freestanding derivative or a hedge. Derivatives that are not designated as hedging instruments are referred to as freestanding derivatives with changes in fair value included in earnings. If the derivative qualifies for hedge accounting, depending on the nature of the hedge and hedge effectiveness, changes in the fair value of the derivative will either be recognized immediately in earnings or recorded in other Accumulated Other Comprehensive Income (loss) (“AOCI”) until the hedged item is recognized in earnings upon settlement/termination. FX derivative gains and losses in AOCI are reclassified to the consolidated statement of income (loss) as shown in the tables below and interest rate swaps gains and losses in AOCI are reclassified to interest expense in the consolidated statement of income (loss). We evaluate hedge effectiveness at inception and on an ongoing basis. If a derivative is no longer expected to be highly effective, hedge accounting is discontinued. Hedge ineffectiveness, if any, is recorded in earnings. Cash flows from derivative contracts are reported as operating activities in the condensed consolidated statements of cash flows. Freestanding Derivative FX Contracts The gross notional amount of freestanding derivatives outstanding at June 30, 2017 and December 31, 2016 was $240.5 million and $489.1 million , respectively. These derivative contracts are designed to offset the FX effects in earnings of various intercompany loans, our European Investment Bank loan, and trade receivables. We recorded net losses for these freestanding derivatives of $5.4 million and $7.2 million for the three and six months ended June 30, 2017 , respectively, and net gains of $6.1 million and $2.2 million for the three and six months ended June 30, 2016 , respectively. These gains and losses are included in Foreign Exchange and Other (Losses) Gains in the condensed consolidated statements of income (loss). Cash Flow Hedges Notional amounts of open derivative contracts designated as cash flow hedges (in thousands): Description of contract: June 30, 2017 December 31, 2016 FX derivative contracts to be exchanged for British Pounds $ 19,268 $ 6,663 FX derivative contracts to be exchanged for Japanese Yen 58,902 57,840 FX derivative contracts to be exchanged for Canadian Dollars 15,868 — Interest rate swap contracts 60,907 63,246 $ 154,945 $ 127,749 After-tax net gain associated with derivatives designated as cash flow hedges recorded in the ending balance of Accumulated Other Comprehensive Income and the amount expected to be reclassified to earnings in the next 12 months (in thousands): Description of contract: June 30, 2017 Net amount expected to be reclassified to earnings in the next 12 months FX derivative contracts $ 613 $ 613 Interest rate swap contracts 346 87 $ 959 $ 700 Pre-tax gains (losses) for derivative contracts designated as cash flow hedges recognized in Other Comprehensive Income (Loss) (“OCI”) and the amount reclassified to earnings from Accumulated Other Comprehensive Income (Loss) (“AOCI”) (in thousands): Three Months Ended June 30, 2017 2016 Description of derivative contract Location in earnings of reclassified gain or loss Losses Recognized in OCI (Losses) Gains Reclassified from AOCI to Earnings: (Losses) Gains Recognized in OCI Losses Reclassified from AOCI to Earnings: FX derivative contracts Foreign Exchange and Other (Losses) Gains $ (755 ) $ (532 ) $ (4,887 ) $ (42 ) FX derivative contracts SG&A — 544 — (1,270 ) Interest rate swap contracts Interest expense — 543 18 (56 ) $ (755 ) $ 555 $ (4,869 ) $ (1,368 ) Six Months Ended June 30, 2017 2016 Description of derivative contract Location in earnings of reclassified gain or loss Losses Recognized in OCI (Losses) Gains Reclassified from AOCI to Earnings: Losses Recognized in OCI Gains (Losses)Reclassified from AOCI to Earnings: FX derivative contracts Foreign Exchange and Other (Losses) Gains $ (7,587 ) $ (5,210 ) $ (8,467 ) $ 148 FX derivative contracts SG&A — 1,354 — (1,561 ) Interest rate swap contracts Interest expense — 212 (301 ) (89 ) $ (7,587 ) $ (3,644 ) $ (8,768 ) $ (1,502 ) The following tables present the fair value on a gross basis, and the location of, derivative contracts reported in the condensed consolidated balance sheets (in thousands): June 30, 2017 Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments Balance Sheet Location Fair Value (1) Balance Sheet Location Fair Value (1) Interest rate swap contracts Prepaid expenses and other current assets $ — Accrued liabilities $ 897 Interest rate swap contracts Other assets — Other long-term liabilities 1,002 FX derivative contracts Prepaid expenses and other current assets 1,813 Accrued liabilities — Total derivatives designated as hedging instruments 1,813 1,899 Derivatives not designated as hedging instruments FX derivative contracts Prepaid expenses and other current assets — Accrued liabilities 84 Total derivatives not designated as hedging instruments — 84 $ 1,813 $ 1,983 December 31, 2016 Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments Balance Sheet Location Fair Value (1) Balance Sheet Location Fair Value (1) Interest rate swap contracts Prepaid expenses and other current assets $ — Accrued liabilities $ 942 Interest rate swap contracts Other assets — Other long-term liabilities 1,392 FX derivative contracts Prepaid expenses and other current assets 4,911 Accrued liabilities — Total derivatives designated as hedging instruments 4,911 2,334 Derivatives not designated as hedging instruments FX derivative contracts Prepaid expenses and other current assets 3,358 Accrued liabilities — Total derivatives not designated as hedging instruments 3,358 — $ 8,269 $ 2,334 (1) For the classification of input used to evaluate the fair value of our derivatives, refer to “Note 6. Fair Value Measurements.”

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies 3T Heater-Cooler Devices FDA Warning Letter . On December 29, 2015, the FDA issued LivaNova a Warning Letter (the “Warning Letter”) alleging certain violations of FDA regulations applicable to medical device manufacturers at our Munich, Germany and Arvada, Colorado facilities. The FDA inspected the Munich facility from August 24, 2015 to August 27, 2015 and the Arvada facility from August 24, 2015 to September 1, 2015. On August 27, 2015, the FDA issued a Form 483 identifying two observed non-conformities with certain regulatory requirements at the Munich facility. We did not receive a Form 483 in connection with the FDA’s inspection of the Arvada facility. Following the receipt of the Form 483, we provided written responses to the FDA describing corrective and preventive actions that were underway or to be taken to address the FDA’s observations at the Munich facility. The Warning Letter responded in part to our responses and identified other alleged violations not previously included in the Form 483. The Warning Letter further stated that our 3T devices and other devices we manufactured at our Munich facility are subject to refusal of admission into the U.S. until resolution of the issues set forth by the FDA in the Warning Letter. The FDA has informed us that the import alert is limited to the 3T devices, but that the agency reserves the right to expand the scope of the import alert if future circumstances warrant such action. The Warning Letter did not request that existing users cease using the 3T device, and manufacturing and shipment of all of our products other than the 3T device remain unaffected by the import limitation. To help clarify these issues for current customers, we issued an informational Customer Letter in January 2016, and that same month agreed with the FDA on a process for shipping 3T devices to existing U.S. users pursuant to a certificate of medical necessity program. Lastly, the Warning Letter stated that premarket approval applications for Class III devices to which certain Quality System regulation deviations identified in the Warning Letter are reasonably related will not be approved until the violations have been corrected. However, this restriction applies only to the Munich and Arvada facilities, which do not manufacture or design devices subject to Class III premarket approval. We continue to work diligently to remediate the FDA’s inspectional observations for the Munich facility, as well as the additional issues identified in the Warning Letter. We take these matters seriously and intend to respond timely and fully to the FDA’s requests. CDC and FDA Safety Communications and Company Field Safety Notice Update On October 13, 2016 the Centers for Disease Control and Prevention (“CDC”) and FDA separately released safety notifications regarding the 3T devices. The CDC’s Morbidity and Mortality Weekly Report (“MMWR”) and Health Advisory Notice (“HAN”) reported that tests conducted by CDC and its affiliates indicate that there appears to be genetic similarity between both patient and 3T device strains of the non-tuberculous mycobacterium (“NTM”) bacteria M. chimaera isolated in hospitals in Iowa and Pennsylvania. Citing the geographic separation between the two hospitals referenced in the investigation, the report asserts that 3T devices manufactured prior to August 18, 2014 could have been contaminated during the manufacturing process. The CDC’s HAN and FDA’s Safety Communication, issued contemporaneously with the MMWR report, each assess certain risks associated with 3T devices and provide guidance for providers and patients. The CDC notification states that the decision to use the 3T device during a surgical operation is to be taken by the surgeon based on a risk approach and on patient need. Both the CDC’s and FDA’s communications confirm that 3T devices are critical medical devices and enable doctors to perform life-saving cardiac surgery procedures. Also on October 13, 2016, we issued a Field Safety Notice Update for U.S. users of 3T devices to proactively and voluntarily contact facilities to aid in implementation of the CDC and FDA recommendations. In the fourth quarter of 2016, we initiated a program to provide existing 3T device users with a new loaner 3T device at no charge pending regulatory approval and implementation of additional risk mitigation strategies worldwide. This loaner program began in the U.S. and is being progressively made available on a global basis, prioritizing and allocating devices to 3T device users based on pre-established criteria. We anticipate that this program will continue until we are able to address customer needs through a broader solution that includes implementation of one or more of the risk mitigation strategies currently under review with regulatory agencies. At December 31, 2016, we recognized a liability for our product remediation plan related to our 3T device. We concluded that it was probable that a liability had been incurred upon management’s approval of the plan and the commitments made by management to various regulatory authorities globally in November and December 2016, and furthermore, the cost associated with the plan was reasonably estimable. At June 30, 2017, the product remediation liability was $32.0 million . Refer to “Note 4. Product Remediation Liability” for additional information. Litigation On February 12, 2016, LivaNova was alerted that a class action complaint had been filed in the U.S. District Court for the Middle District of Pennsylvania with respect to our 3T devices, naming as evidence, in part, the Warning Letter issued by the FDA in December 2015. The named plaintiffs to the complaint underwent open heart surgeries at WellSpan York Hospital and Penn State Milton S. Hershey Medical Center in 2015, and the complaint alleges that: (i) patients were exposed to a harmful form of bacteria, known as nontuberculous mycobacterium (“NTM”), from our 3T devices; and (ii) we knew or should have known that design or manufacturing defects in 3T devices can lead to NTM bacterial colonization, regardless of the cleaning and disinfection procedures used (and recommended by us). Named plaintiffs seek to certify a class of plaintiffs consisting of all Pennsylvania residents who underwent open heart surgery at WellSpan York Hospital and Penn State Milton S. Hershey Medical Center between 2011 and 2015 and who are currently asymptomatic for NTM infection (approximately 3,600 patients). The putative class action, which has not been certified, seeks: (i) declaratory relief finding the 3T devices are defective and unsafe for intended uses; (ii) medical monitoring; (iii) general damages; and (iv) attorneys’ fees. On March 21, 2016, the plaintiffs filed a First Amended Complaint adding Sorin Group Deutschland GmbH and Sorin Group USA, Inc., wholly-owned subsidiaries of LivaNova PLC, as defendants. On September 29, 2016 the Court dismissed LivaNova PLC from the case, and on October 11, 2016, the Court denied our motion to dismiss Sorin Group Deutschland GmbH and Sorin Group USA, Inc. from the lawsuit. In addition to the case addressed in the preceding section, we have received additional lawsuits in the U.S. and Canada related to surgical cases in which a 3T device was allegedly used. Approximately 50 additional lawsuits have been filed against us in state and federal courts in the U.S. and three cases have been filed in Canada. We intend to defend each of these claims vigorously. Given the relatively early stage of each of these matters, we cannot give any assurances that additional legal proceedings making the same or similar allegations will not be filed against us or one of our subsidiaries, nor that the resolution of these complaints or other related litigation in connection therewith will not have a material adverse effect on our business, results of operations, financial condition and/or liquidity. We have not recognized an expense related to damages in connection with this matter because any potential loss is not currently probable or reasonably estimable. In addition we cannot reasonably estimate a range of potential loss, if any, that may result from this matter. Other Litigation SNIA Litigation Sorin was created as a result of a spin-off (the “Sorin spin-off”) from SNIA S.p.A. (“SNIA”). The Sorin spin-off, which spun off SNIA’s medical technology division, became effective on January 2, 2004. Pursuant to the Italian Civil Code, in a spin-off transaction, the parent and the spun-off company can be held jointly liable up to the actual value of the shareholders’ equity conveyed or received (we estimate that the value of the shareholders’ equity received was approximately €573 million (approximately $654 million USD equivalent) for certain indebtedness or liabilities of the pre-spin-off company. We believe and have argued before the relevant fora that Sorin is not jointly liable with SNIA for its alleged SNIA debts and liabilities. Specifically, between 1906 and 2010, SNIA’s subsidiaries Caffaro Chimica S.r.l. and Caffaro S.r.l. and their predecessors (the “SNIA Subsidiaries”), conducted certain chemical operations (the “Caffaro Chemical Operations”), at sites in Torviscosa, Brescia and Colleferro, Italy (the “Caffaro Chemical Sites”). These activities allegedly resulted in substantial and widely dispersed contamination of soil, water and ground water. In connection with SNIA’s Italian insolvency proceedings, the Italian Ministry of the Environment and the Protection of Land and Sea (the “Italian Ministry of the Environment”), sought compensation from SNIA in an aggregate amount of €3.4 billion (approximately $3.9 billion USD equivalent) for remediation costs relating to the environmental damage at the Caffaro Chemical Sites. In September 2011, the Bankruptcy Court of Udine, and in July 2014, the Bankruptcy Court of Milan each held (in proceedings to which we are not parties) that the Italian Ministry of the Environment and other Italian government agencies (the “Public Administrations”) were not creditors of either SNIA Subsidiaries or SNIA in connection with their claims in the context of their Italian insolvency proceedings. In January 2016, the Court of Udine rejected the appeal brought by the Italian Public Administrations. The Public Administrations have appealed that second loss in pending proceedings before the Italian Supreme Court. The appeal by the Public Administrations before the Court of Milan remains pending. In January 2012, SNIA filed a civil action against Sorin in the Civil Court of Milan asserting joint liability of a parent and a spun-off company. SNIA’s civil action against Sorin also named the Public Administrations Italian Ministry of the Environment and other Italian government agencies, as defendants, in order to have them bound to the final ruling. On April 1, 2016 (the “Decision”) the Court of Milan dismissed all legal actions of SNIA and of the Public Administration against Sorin, further requiring the Public Administrations to pay Sorin €300,000 (or approximately $342,600 USD equivalent), as legal fees (of which SNIA is jointly liable for €50,000 ). On June 21, 2016, the Public Administrations filed an appeal against the Decision before the Court of Appeal of Milan. The first hearing of the appeal proceedings was held on December 20, 2016, and the final hearing is now scheduled for November 22, 2017. After such hearing, the parties will file their final briefs, and the Court is expected to render its decision in mid-2018. SNIA did not file an appeal. We (as successor to Sorin in the litigation) continue to believe that the risk of material loss relating to the SNIA litigation is not probable as a result of the reasoning contained in, and legal conclusions reached in, the recent court decisions described above. We also believe that the amount of potential losses relating to the SNIA litigation is, in any event, not estimable given that the underlying alleged damages, related remediation costs, allocation and apportionment of any such responsibility, which party is responsible, and various time periods involving different parties, all remain issues in dispute and that no final decision on a remediation plan has been approved. As a result, we have not made any accrual in connection with the SNIA litigation. Pursuant to European Union, United Kingdom and Italian cross-border merger regulations applicable to the Mergers, legacy Sorin liabilities, including any potential liabilities arising from the claims against Sorin relating to the SNIA litigation, are assumed by us as successor to Sorin. Although we believe the claims against Sorin in connection with the SNIA litigation are without merit and continue to contest them vigorously, there can be no assurance as to the outcome. A finding during any appeal or novel proceedings that we are liable for environmental damage at the Caffaro Chemical Sites or its alleged cause(s) could have a material adverse effect on our results of operations, financial condition and/or liquidity. Environmental Remediation Order On July 28, 2015, Sorin and other direct and indirect shareholders of SNIA received an administrative order from the Italian Ministry of the Environment (the “Remediation Order”), directing them to promptly commence environmental remediation efforts at the Caffaro Chemical Sites (as described above). We (as successor to Sorin) believe that we should not be liable for damages relating to the Caffaro Chemical Operations pursuant to the Italian statute on which the Remediation Order relies because, inter alia, the statute does not apply to activities occurring prior to 2006, the date on which the statute was enacted. (Sorin was spun off from SNIA in 2004). Additionally, we believe that Sorin should not be subject to the Remediation Order because Italian environmental regulations only permit such an order to be imposed on an “operator” of a remediation site, and Sorin never operated any activity of whatsoever nature at any of the industrial sites concerned and, further, was never identified in any legal proceeding as an operator at any of the Caffaro Chemical Sites and could not and in fact did not cause any environmental damage at any of the Caffaro Chemical Sites. Accordingly, we (as successor to Sorin) alongside other parties, challenged the Remediation Order before the Administrative Court of Lazio in Rome (the “TAR”). On March 21, 2016 the TAR annulled the Remediation Order based on the fact that (i) the Remediation Order lacks any detailed analysis of the causal link between the alleged damage and our activities, a pre-condition to imposition of the measures proposed in the Remediation Order, (ii) the situation of the Caffaro site does not require urgent safety measures, because no new pollution events have occurred and no additional information or evidence of a situation of contamination exists, and (iii) there was no proper legal basis for the Remediation Order, and in any event, the Ministry failed to verify the legal elements that could have led to a conclusion of legal responsibility of the recipients of the Remediation Order. The TAR decisions described above have been appealed by the Ministry before the Council of State. No information on the timing of the first hearing of this appeal is presently available. We have not recognized an expense in connection with this matter because any potential loss is not currently probable or reasonably estimable. In addition, we cannot reasonably estimate a range of potential loss, if any, that may result from this matter. Opposition to Merger Proceedings On July 28, 2015, the Public Administrations filed an opposition proceeding to the proposed merger between Sorin and Cyberonics (the “Merger”), before the Commercial Courts of Milan, asking the Court to prohibit the execution of the Merger. In its initial decision on August 20, 2015, the Court authorized the Merger and the Public Administrations did not appeal this decision. The proceeding then continued as a civil case, with the Public Administration seeking damages against us. The Commercial Court of Milan delivered a first instance decision on October 6, 2016 fully rejecting the Public Administration’s request and awarding us €200,000 (approximately $228,000 USD equivalent) in damages for frivolous litigation, plus €200,000 (approximately $228,000 USD equivalent) in legal fees. The Public Administrations has appealed this decision to the Court of Appeal of Milan. The final hearing is scheduled on January 17, 2018. The Court of Appeal is likely to make a decision in mid-June 2018. We have not recognized an expense in connection with this matter because any potential loss is not currently probable or reasonably estimable. In addition, we cannot reasonably estimate a range of potential loss, if any, that may result from this matter. Tax Litigation In a tax audit report received on October 30, 2009, the Regional Internal Revenue Office of Lombardy (the “Internal Revenue Office”) informed Sorin Group Italia S.r.l. that, among several issues, it was disallowing in part (for a total of €102.6 million (approximately $117.2 million USD equivalent), related to tax years 2002 through 2006) a tax-deductible write down of the investment in the U.S. company, Cobe Cardiovascular Inc., which Sorin Group Italia S.r.l. recognized in 2002 and deducted in five equal installments, beginning in 2002. In December 2009, the Internal Revenue Office issued notices of assessment for 2002, 2003 and 2004. The assessments for 2002 and 2003 were automatically voided for lack of merit. In December 2010 and October 2011, the Internal Revenue Office issued notices of assessment for 2005 and 2006, respectively. We challenged all three notices of assessment (for 2004, 2005 and 2006) before the relevant Provincial Tax Courts. The preliminary challenges filed for 2004, 2005 and 2006 were denied at the first jurisdictional level. We appealed these decisions. The appeal submitted against the first-level decision for 2004 was successful. The Internal Revenue Office appealed this second-level decision to the Italian Supreme Court (Corte di Cassazione) on February 3, 2017. The Italian Supreme Court’s decision is pending. The appeal submitted against the first-level decisions for 2005 and 2006 were rejected. We appealed these adverse decisions to the Italian Supreme Court, which is still pending. In November 2012, the Internal Revenue Office served a notice of assessment for 2007, and in July 2013, served a notice of assessment for 2008. In these matters the Internal Revenue Office claims an increase in taxable income due to a reduction (similar to the previous notices of assessment for 2004, 2005 and 2006) of the losses reported by Sorin Group Italia S.r.l. for the 2002, 2003 and 2004 tax periods, and subsequently utilized in 2007 and 2008. We challenged both notices of assessment. The Provincial Tax Court of Milano has stayed its decision for years 2007 and 2008 pending resolution of the litigation regarding years 2004, 2005, and 2006. The total amount of losses in dispute is €62.6 million (approximately $71.5 million USD equivalent). We have continuously reassessed our potential exposure in these matters, taking into account the recent, and generally adverse, trend to Italian taxpayers in this type of litigation. Although we believe that our defensive arguments are strong, noting the adverse trend in some of the court decisions, we have recognized a risk provision of €17.0 million (approximately $19.4 million USD equivalent). Other Matters Additionally, we are the subject of various pending or threatened legal actions and proceedings that arise in the ordinary course of our business. These matters are subject to many uncertainties and outcomes that are not predictable and that may not be known for extended periods of time. Since the outcome of these matters cannot be predicted with certainty, the costs associated with them could have a material adverse effect on our consolidated net income, financial position or cash flows.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity Comprehensive income The table below presents the change in each component of accumulated other comprehensive income (loss) (“AOCI”), net of tax, and the reclassifications out of AOCI into net earnings for the six months ended June 30, 2017 and June 30, 2016 (in thousands): Change in Unrealized Gain (Loss) on Derivatives Foreign Currency Translation Adjustments Gain (Loss) (1) Total As of December 31, 2016 $ 3,619 $ (72,106 ) $ (68,487 ) Other comprehensive (loss) income before reclassifications, before tax (7,587 ) 72,017 64,430 Tax benefit 1,821 — 1,821 Other comprehensive (loss) income before reclassifications, net of tax (5,766 ) 72,017 66,251 Reclassification of loss from accumulated other comprehensive income, before tax 3,644 — 3,644 Tax benefit (538 ) — (538 ) Reclassification of loss from accumulated other comprehensive income, after tax 3,106 — 3,106 Net current-period other comprehensive (loss) income, net of tax (2,660 ) 72,017 69,357 As of June 30, 2017 $ 959 $ (89 ) $ 870 As of December 31, 2015 $ 888 $ (55,116 ) $ (54,228 ) Other comprehensive (loss) income before reclassifications, before tax (8,768 ) 34,403 25,635 Tax benefit 2,639 — 2,639 Other comprehensive (loss) income before reclassifications, net of tax (6,129 ) 34,403 28,274 Reclassification of loss from accumulated other comprehensive income, before tax 1,502 — 1,502 Tax benefit (453 ) — (453 ) Reclassification of loss from accumulated other comprehensive income, after tax 1,049 — 1,049 Net current-period other comprehensive (loss) income, net of tax (5,080 ) 34,403 29,323 As of June 30, 2016 $ (4,192 ) $ (20,713 ) $ (24,905 ) (1) Taxes are not provided for foreign currency translation adjustments as translation adjustments are related to earnings that are intended to be reinvested in the countries where earned.

Stock-Based Incentive Plans

Stock-Based Incentive Plans	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Incentive Plans	Stock-Based Incentive Plans Stock-based incentive plans compensation expense (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Service-based stock appreciation rights ("SARs") $ 1,866 $ 2,009 $ 3,466 $ 4,584 Service-based restricted stock units ("RSUs") 2,289 2,393 4,493 5,904 Market-based performance restricted stock units 177 — 181 3 Operating performance-based restricted stock units 388 289 424 316 Total stock-based compensation expense $ 4,720 $ 4,691 $ 8,564 $ 10,807 During the three months ended June 30, 2017, we executed stock-based compensatory grant agreements with contract terms agreed upon by us and the respective individuals, as approved by the Compensation Committee of our Board of Directors. Grants with service conditions vest ratably over four years subject to forfeiture unless service conditions are met. Market-based grants vest ratably over four years subject to forfeiture unless certain future prices of our shares on the NASDAQ Stock Market exceed certain threshold prices in the first year following the grant date. And finally, operating performance-based grants vest ratably over four years subject to forfeiture unless certain thresholds of adjusted net sales and adjusted net income are met for fiscal year 2017. Compensation expense related to grant agreements executed during the three months ended June 30, 2017 was $1.2 million . Stock-based compensation agreements executed during the three months ended June 30, 2017, representing potential shares and their weighted average grant date fair values by type follows (shares in thousands, fair value in dollars): Three Months Ended June 30, 2017 Shares Weighted Average Grant Date Fair Value Service-based SARs 639 $ 17.03 Service-based RSUs 108 57.37 Market-based performance RSUs 158 25.29 Operating performance-based RSUs 189 56.18

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes During the three and six months ended June 30, 2017 , we recorded consolidated income tax expense of $3.3 million and $9.0 million , respectively, with consolidated effective income tax rates of 5.0% and 10.4% , respectively. During the three and six months ended June 30, 2016 , we recorded consolidated income tax expense of $8.4 million and $7.2 million , respectively, with consolidated effective income tax rates of 40.3% and (39.8)% , respectively. Our consolidated effective income tax rates for the three and six months ended June 30, 2017 include the impact of various discrete tax items, including the acquisition of Caisson and the $38.1 million non-taxable gain recognized to re-measure our existing equity investment in Caisson at fair value on the acquisition date. Additionally, we recognized a $3.9 million deferred tax benefit associated with certain temporary differences arising from the Mergers. Discrete tax items for the six months ended June 30, 2017 also include the recognition of a $3.0 million deferred tax asset related to a reserve for an uncertain tax position recognized in a prior year, in addition to various other discrete items. Our consolidated effective tax rate for the three and six months ended June 30, 2016 was impacted by $58.7 million of unbenefited net operating losses in certain tax jurisdictions, including France and the U.K.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Income (Loss) Per Share	Net Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share, (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Numerator: Net income (loss) $ 47,498 $ 8,957 $ 58,769 $ (31,421 ) Denominator: Basic weighted average shares outstanding 48,140 49,056 48,104 48,987 Add effects of share-based compensation instruments (1) 163 106 137 — Diluted weighted average shares outstanding 48,303 49,162 48,241 48,987 Basic income (loss) per share $ 0.99 $ 0.18 $ 1.22 $ (0.64 ) Diluted income (loss) per share $ 0.98 $ 0.18 $ 1.22 $ (0.64 ) (1) Excluded from the computation of diluted earnings per share for the three and six months ended June 30, 2017 were approximately 1.8 million stock options, SARs and restricted share units outstanding as of June 30, 2017 , because to include them would be anti-dilutive. Excluded from the computation of diluted earnings per share for the three months ended June 30, 2016 were approximately 1.5 million stock options, SARs and restricted share units outstanding as of June 30, 2016 , because to include them would be anti-dilutive. Excluded from the computation of diluted earnings per share for the six months ended June 30, 2016 , were approximately 131 thousand average outstanding stock options, SARs and restricted share units that would have been dilutive but were excluded due to the net loss.

Geographic and Segment Informat

Geographic and Segment Information	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Geographic and Segment Information	Geographic and Segment Information Segment Information We identify operating segments based on the way we manage, evaluate and internally report our business activities for purposes of allocating resources and assessing performance. We have three reportable segments: Cardiac Surgery, Neuromodulation, and Cardiac Rhythm Management. The Cardiac Surgery segment generates its revenue from the development, production and sale of cardiovascular surgery products. Cardiac Surgery products include oxygenators, heart-lung machines, autotransfusion systems, mechanical heart valves and tissue heart valves. The Neuromodulation segment generates its revenue from the design, development and marketing of neuromodulation therapy for the treatment of drug-resistant epilepsy and treatment resistant depression. Neuromodulation products include the VNS Therapy System, which consists of an implantable pulse generator, a lead that connects the generator to the vagus nerve, surgical equipment to assist with the implant procedure, equipment to enable the treating physician to set the pulse generator stimulation parameters for the patient, instruction manuals and magnets to suspend or induce stimulation manually. The Cardiac Rhythm Management segment generates its revenue from the development, manufacturing and marketing of products for the diagnosis, treatment, and management of heart rhythm disorders and heart failure. Cardiac Rhythm Management products include high-voltage defibrillators, cardiac resynchronization therapy devices and low-voltage pacemakers. “Other” includes Corporate shared services expenses for finance, legal, human resources and information technology and Corporate business development (“New Ventures”). New Ventures, which includes our recent Caisson acquisition, is focused on new growth platforms and identification of other opportunities for expansion. Net sales of our reportable segments include end-customer revenues from the sale of products they each develop and manufacture or distribute. We define segment income as operating income before merger and integration, restructuring, and amortization of intangibles. Net sales and income (loss) from operations by segment (in thousands): Three Months Ended June 30, Six Months Ended June 30, Net Sales: 2017 2016 2017 2016 Cardiac Surgery $ 158,586 $ 161,051 $ 297,790 $ 304,494 Neuromodulation 97,015 90,039 184,174 171,397 Cardiac Rhythm Management 65,544 69,558 123,824 131,289 Other 242 399 704 836 $ 321,387 $ 321,047 $ 606,492 $ 608,016 Three Months Ended June 30, Six Months Ended June 30, Income (Loss) from Operations: 2017 2016 2017 2016 Cardiac Surgery $ 23,665 $ 9,020 $ 39,683 $ 11,406 Neuromodulation 51,747 47,240 93,425 87,822 Cardiac Rhythm Management 5,617 (335 ) 8,109 (9,834 ) Other (33,629 ) (17,236 ) (51,431 ) (35,565 ) Total Reportable Segments’ Income from Operations 47,400 38,689 89,786 53,829 Merger and integration expenses 3,522 6,200 5,730 12,961 Restructuring expenses 1,118 4,246 11,268 32,838 Amortization of intangibles 11,681 6,292 23,095 22,184 Income (Loss) from operations $ 31,079 $ 21,951 $ 49,693 $ (14,154 ) The following tables present our assets and capital expenditures by segment (in thousands): Assets: June 30, 2017 December 31, 2016 Cardiac Surgery $ 1,351,706 $ 1,277,799 Neuromodulation 600,074 611,085 Cardiac Rhythm Management 345,464 341,998 Other 236,441 111,749 $ 2,533,685 $ 2,342,631 Three Months Ended June 30, Six Months Ended June 30, Capital expenditures: 2017 2016 2017 2016 Cardiac Surgery $ 3,957 $ 4,820 $ 7,751 $ 10,309 Neuromodulation 517 1,906 1,978 3,821 Cardiac Rhythm Management 1,148 715 2,806 1,195 Other 1,185 258 2,388 1,331 $ 6,807 $ 7,699 $ 14,923 $ 16,656 The changes in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2017 were as follows (in thousands): Neuromodulation Cardiac Surgery Cardiac Rhythm Management Other Total December 31, 2016 $ 315,943 $ 375,769 $ — $ — $ 691,712 Goodwill as a result of acquisitions (1) — — — 42,418 42,418 Foreign currency adjustments — 29,395 — — 29,395 June 30, 2017 $ 315,943 $ 405,164 $ — $ 42,418 $ 763,525 (1) Goodwill recognized as a result of the Caisson acquisition. Refer to “Note 2. Acquisitions”. Geographic Information We operate under three geographic regions: United States, Europe, and Rest of World. Net sales to external customers by geography are determined based on the country the products are shipped to and are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, Net Sales 2017 2016 2017 2016 United States $ 129,558 $ 124,411 $ 243,907 $ 238,553 Europe (1) (2) 105,039 111,130 201,385 210,385 Rest of World 86,790 85,506 161,200 159,078 Total (3) $ 321,387 $ 321,047 $ 606,492 $ 608,016 (1) Net sales to external customers in the United Kingdom include $9.2 million and $17.3 million for the three and six months ended June 30, 2017 , respectively and $10.5 million and $19.1 million for the three and six months ended June 30, 2016 , respectively. (2) Includes those countries in Europe where we have a direct sales presence. Countries where sales are made through distributors are included in Rest of World. (3) No single customer represented over 10% of our consolidated net sales. Except for the U.S. and France, no country’s net sales exceeded 10% of our consolidated net sales. French sales were $34.1 million and $67.0 million for the three and six months ended June 30, 2017 , respectively, and $34.4 million and $67.0 million for the three and six months ended June 30, 2016 , respectively. Property, plant and equipment, net by geography are as follows (in thousands): PP&E June 30, 2017 December 31, 2016 United States $ 62,615 $ 61,279 Europe (1) 134,267 130,777 Rest of World 14,282 31,786 Total $ 211,164 $ 223,842 (1) Property, plant and equipment, net included with Europe includes $2.9 million and $3.0 million in the United Kingdom at June 30, 2017 and December 31, 2016 , respectively.

Supplemental Financial Informat

Supplemental Financial Information	6 Months Ended
	Jun. 30, 2017
Balance Sheet Related Disclosures [Abstract]
Supplemental Financial Information	Supplemental Financial Information Accounts receivable, net, consisted of the following (in thousands): June 30, 2017 December 31, 2016 Trade receivables from third parties $ 316,866 $ 285,336 Allowance for bad debt (11,511 ) (9,606 ) $ 305,355 $ 275,730 Inventories consisted of the following (in thousands): June 30, 2017 December 31, 2016 Raw materials $ 52,220 $ 47,704 Work-in-process 37,482 32,316 Finished goods 114,978 103,469 $ 204,680 $ 183,489 Inventories are reported net of the provision for obsolescence which totaled $12.3 million and $9.8 million at June 30, 2017 and December 31, 2016 , respectively. Prepaid expenses and other current assets consisted of the following (in thousands): June 30, 2017 December 31, 2016 Income taxes payable on inter-company transfers of property (1) $ 19,445 $ 19,445 Deposits and advances to suppliers 6,212 5,417 Earthquake grant receivable 4,824 4,748 Current loans and notes receivable 2,294 7,093 Escrow deposit - Caisson 2,000 — Derivative contract assets 1,813 8,269 Other prepaid expenses 12,625 11,001 $ 49,213 $ 55,973 (1) The income taxes payable on intercompany transfers of property asset is the asset account created to defer the income tax effect of an intercompany intellectual property sale and intercompany inventory sales pursuant to ASC 810-10-45-8. Other assets consisted of the following (in thousands): June 30, 2017 December 31, 2016 Income taxes payable on inter-company transfers of property (1) $ 113,779 $ 124,551 Investments (2) 3,105 2,537 Loans and notes receivable 1,931 2,029 Escrow deposit - Caisson 1,000 — Guaranteed deposits 768 940 Other 862 641 $ 121,445 $ 130,698 (1) The income taxes payable on intercompany transfers of property asset is the asset account created to defer the income tax effect of an intercompany intellectual property sale and intercompany inventory sales pursuant to ASC 810-10-45-8. (2) Primarily cash surrender value of company owned life insurance policies. Accrued liabilities and other consisted of the following (in thousands): June 30, 2017 December 31, 2016 Product remediation liability (1) $ 22,115 $ 23,464 Deferred compensation - Caisson acquisition 14,052 — Legal and other administrative costs 9,077 6,184 Provisions for agents, returns and other 7,984 7,271 Restructuring related liabilities 6,725 16,859 Product warranty obligations 2,278 2,736 Royalty costs 2,257 2,503 Escrow indemnity liability - Caisson 2,000 — Deferred income and government grants 3,039 1,708 Derivative contract liabilities (2) 981 942 Research and development costs 961 839 Other 18,577 13,061 $ 90,046 $ 75,567 (1) Refer to “Note 4. Product Remediation Liability.” (2) Refer to “Note 8. Derivatives and Risk Management.” Other long-term liabilities consisted of the following (in thousands): June 30, 2017 December 31, 2016 Contingent payments (1) $ 36,080 $ 3,890 Uncertain tax positions 11,553 11,108 Product remediation liability (2) 9,860 10,023 Government grants 6,256 3,803 Derivative contract liabilities (3) 1,002 1,392 Escrow indemnity liability - Caisson 1,000 — Unfavorable operating leases (4) 248 1,672 Other 9,667 7,599 $ 75,666 $ 39,487 (1) The contingent payments liability represents contingent payments related to three acquisitions: the first and second acquisitions, in September 2015, were Cellplex PTY Ltd. in Australia and the commercial activities of a local distributor in Colombia. The contingent payments for the first acquisition are based on achievement of sales targets by the acquiree through June 30, 2018 and the contingent payments for the second acquisition are based on sales of cardiopulmonary disposable products and heart lung machines of the acquiree through December 2019. Refer to “Note 6. Fair Value Measurements.” The third acquisition, Caisson, occurred in May 2017. Refer to “Note 2. Acquisitions”. (2) Refer to “Note 4. Product Remediation Liability.” (3) Refer to “Note 8. Derivatives and Risk Management.” (4) Unfavorable operating leases represent the adjustment to recognize future lease obligations at their estimated fair value in conjunction with the Mergers.

New Accounting Pronouncements

New Accounting Pronouncements	6 Months Ended
	Jun. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASC Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers . Update No. 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance when it becomes effective. This new standard is effective for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. The standard permits the use of either the retrospective or cumulative effect transition method. We expect to adopt the new standard under the cumulative effect transition method. We are evaluating the effect this standard will have on our consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . Update 2016-01 requires equity investments that do not result in consolidation and are not accounted for under the equity method to be measured at fair value with changes recognized in net income. However, an entity may elect to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The amendments, in addition, reduce complexity of the impairment assessment of equity investments without readily determinable fair values with regard to the other-than-temporary impairment guidance. The amendments also require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset and liability. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application of certain provisions is permitted. We are currently evaluating the effect this standard will have on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases. This guidance requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets. While many aspects of lessor accounting remain the same, the new standard makes some changes, such as eliminating the current real estate-specific guidance. The new standard requires lessees and lessors to classify most leases using a principle generally consistent with that of “IAS 17 - Leases,” which is similar to U.S. GAAP but without the use of bright lines. The standard also changes what is considered initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within that year. Early adoption is permitted. We are currently evaluating the effect this standard will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation : Improvements to Employee Share-Based Payment Accounting. This simplified the accounting for certain aspects of share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. We adopted the amendments of ASU 2016-09 (each “an Amendment”) effective January 1, 2017, using the following methods: We adopted the Amendment that requires all of the tax effects related to the settlement of share based compensation awards to be recorded through the income statement on a prospective basis. The adoption of this Amendment did not have a material effect on income tax expense for the six months ended June 30, 2017 . We adopted the Amendment related to cash flow presentation of tax-related cash flows resulting from share based payments on a prospective basis. The Amendment stipulates that all tax-related cash flows resulting from share based payments are to be reported as operating activities in the statement of cash flows, rather than, under past requirements, to present gross windfall tax benefits as an inflow from financing activities and an outflow from operating activities. Under the Amendment related to forfeitures, entities are permitted to make a company-wide accounting policy election to either estimate forfeitures each period, as required prior to this Amendment’s effective date, or to account for forfeitures as they occur. We elected to continue to account for forfeitures using the estimation method. We adopted the Amendment related to the timing of when excess tax benefits are recognized, which requires that all windfalls and shortfalls be recognized when they arise. There were no unrecognized excess tax benefits prior to the adoption of the Amendment. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230 -Statement of Cash Flows). Update 2016-15 provides guidance on the presentation and classification of certain cash receipts and cash payments in the statement of cash flows including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, 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, and distributions received from equity method investees. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments should be applied using a retrospective transition method to each period presented. We are currently evaluating the effect this standard will have on our consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory (Topic 740). This update simplifies the accounting for the income tax consequences of transfers of assets from one unit of a corporation to another unit or subsidiary by eliminating an accounting exception that prevents the recognition of current and deferred income tax consequences for such “intra-entity transfers” until the assets have been sold to an outside party. The amendment should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment directly to retained earnings as of the beginning of the period in which the guidance is adopted. The rule is effective for annual periods after December 15, 2017, including interim periods within those annual reporting periods. We currently estimate the cumulative-effect reduction to retained earnings to be approximately $65.2 million upon adoption at January 1, 2018. In March 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805)—Clarifying the Definition of a Business . This update clarifies when a set of assets and activities is a business. The amendments provide a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the amendments in this Update (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. This update is effective for annual periods after December 15, 2017, including interim periods within those annual reporting periods. We are currently evaluating the impact of adopting this update on our consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post Retirement Benefit Cost . This update 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 a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in this Update also allow only the service cost component to be eligible for capitalization when applicable. This Update takes effect for annual periods after December 15, 2017, including interim periods within those annual reporting periods. We are currently evaluating the impact of adopting this update on our consolidated financial statements.

Unaudited Condensed Consolida24

Unaudited Condensed Consolidated Financial Statements (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements of LivaNova as of, and for the three and six months ended , June 30, 2017 and June 30, 2016 , have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S.” and such principles, “U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of regulation S-X. The accompanying condensed consolidated balance sheet of LivaNova at December 31, 2016 has been derived from audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2016 , but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the operating results of LivaNova and its subsidiaries, for the three and six months ended June 30, 2017 and are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . The financial information presented herein should be read in conjunction with the audited consolidated financial statements and notes thereto accompanying our Annual Report on Form 10-K for the year ended December 31, 2016 .
Foreign Currency	Foreign Currency Our functional currency is the U.S. dollar, however, a portion of the revenues earned and expenses incurred by certain of our subsidiaries are denominated in currencies other than the U.S. dollar. We determine the functional currency of our subsidiaries that exist and operate in different economic and currency environments based on the primary economic environment in which the subsidiary operates, that is, the currency of the environment in which an entity primarily generates and expends cash. Our significant foreign subsidiaries are located in Europe and the U.S. The functional currency of our significant European subsidiaries is the euro and the functional currency of our significant U.S. subsidiaries is the U.S. dollar. Assets and liabilities for subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars based on a combination of both current and historical exchange rates, while their revenues earned and expenses incurred are translated into U.S. dollars at average period exchange rates. Translation adjustments are included as in Accumulated Other Comprehensive Income (Loss) in the condensed consolidated balance sheets. Gains and losses arising from transactions denominated in a currency different from an entity’s functional currency are included in Foreign exchange and other gains (losses) in our condensed consolidated statements of income (loss).
New Accounting Pronouncements	In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASC Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers . Update No. 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers and will replace most existing revenue recognition guidance when it becomes effective. This new standard is effective for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period. The standard permits the use of either the retrospective or cumulative effect transition method. We expect to adopt the new standard under the cumulative effect transition method. We are evaluating the effect this standard will have on our consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . Update 2016-01 requires equity investments that do not result in consolidation and are not accounted for under the equity method to be measured at fair value with changes recognized in net income. However, an entity may elect to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The amendments, in addition, reduce complexity of the impairment assessment of equity investments without readily determinable fair values with regard to the other-than-temporary impairment guidance. The amendments also require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset and liability. This guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application of certain provisions is permitted. We are currently evaluating the effect this standard will have on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases. This guidance requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets. While many aspects of lessor accounting remain the same, the new standard makes some changes, such as eliminating the current real estate-specific guidance. The new standard requires lessees and lessors to classify most leases using a principle generally consistent with that of “IAS 17 - Leases,” which is similar to U.S. GAAP but without the use of bright lines. The standard also changes what is considered initial direct costs. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within that year. Early adoption is permitted. We are currently evaluating the effect this standard will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation : Improvements to Employee Share-Based Payment Accounting. This simplified the accounting for certain aspects of share-based payment transactions including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. We adopted the amendments of ASU 2016-09 (each “an Amendment”) effective January 1, 2017, using the following methods: We adopted the Amendment that requires all of the tax effects related to the settlement of share based compensation awards to be recorded through the income statement on a prospective basis. The adoption of this Amendment did not have a material effect on income tax expense for the six months ended June 30, 2017 . We adopted the Amendment related to cash flow presentation of tax-related cash flows resulting from share based payments on a prospective basis. The Amendment stipulates that all tax-related cash flows resulting from share based payments are to be reported as operating activities in the statement of cash flows, rather than, under past requirements, to present gross windfall tax benefits as an inflow from financing activities and an outflow from operating activities. Under the Amendment related to forfeitures, entities are permitted to make a company-wide accounting policy election to either estimate forfeitures each period, as required prior to this Amendment’s effective date, or to account for forfeitures as they occur. We elected to continue to account for forfeitures using the estimation method. We adopted the Amendment related to the timing of when excess tax benefits are recognized, which requires that all windfalls and shortfalls be recognized when they arise. There were no unrecognized excess tax benefits prior to the adoption of the Amendment. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230 -Statement of Cash Flows). Update 2016-15 provides guidance on the presentation and classification of certain cash receipts and cash payments in the statement of cash flows including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, 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, and distributions received from equity method investees. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments should be applied using a retrospective transition method to each period presented. We are currently evaluating the effect this standard will have on our consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory (Topic 740). This update simplifies the accounting for the income tax consequences of transfers of assets from one unit of a corporation to another unit or subsidiary by eliminating an accounting exception that prevents the recognition of current and deferred income tax consequences for such “intra-entity transfers” until the assets have been sold to an outside party. The amendment should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment directly to retained earnings as of the beginning of the period in which the guidance is adopted. The rule is effective for annual periods after December 15, 2017, including interim periods within those annual reporting periods. We currently estimate the cumulative-effect reduction to retained earnings to be approximately $65.2 million upon adoption at January 1, 2018. In March 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805)—Clarifying the Definition of a Business . This update clarifies when a set of assets and activities is a business. The amendments provide a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the amendments in this Update (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. This update is effective for annual periods after December 15, 2017, including interim periods within those annual reporting periods. We are currently evaluating the impact of adopting this update on our consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post Retirement Benefit Cost . This update 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 a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in this Update also allow only the service cost component to be eligible for capitalization when applicable. This Update takes effect for annual periods after December 15, 2017, including interim periods within those annual reporting periods. We are currently evaluating the impact of adopting this update on our consolidated financial statements.
Derivatives	Due to the global nature of our operations, we are exposed to foreign currency exchange rate fluctuations. In addition, due to certain loans with floating interest rates, we are also subject to the impact of changes in interest rates on our interest payments. We enter into foreign currency exchange rate (“FX”) derivative contracts and interest rate swap contracts to reduce the impact of foreign currency rate and interest rate fluctuations on earnings and cash flow. We measure all outstanding derivatives each period end at fair value and report the fair value as either financial assets or liabilities in the consolidated balance sheets. We do not enter into derivative contracts for speculative purposes. At inception of the contract, the derivative is designated as either a freestanding derivative or a hedge. Derivatives that are not designated as hedging instruments are referred to as freestanding derivatives with changes in fair value included in earnings. If the derivative qualifies for hedge accounting, depending on the nature of the hedge and hedge effectiveness, changes in the fair value of the derivative will either be recognized immediately in earnings or recorded in other Accumulated Other Comprehensive Income (loss) (“AOCI”) until the hedged item is recognized in earnings upon settlement/termination. FX derivative gains and losses in AOCI are reclassified to the consolidated statement of income (loss) as shown in the tables below and interest rate swaps gains and losses in AOCI are reclassified to interest expense in the consolidated statement of income (loss). We evaluate hedge effectiveness at inception and on an ongoing basis. If a derivative is no longer expected to be highly effective, hedge accounting is discontinued. Hedge ineffectiveness, if any, is recorded in earnings. Cash flows from derivative contracts are reported as operating activities in the condensed consolidated statements of cash flows.

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition	The following table presents the acquisition date fair-value of the consideration transferred and the fair value of our interest in Caisson prior to the acquisition (in thousands): Cash (1) $ 15,660 Debt forgiven (2) 6,309 Deferred consideration (1) 12,994 Contingent consideration (1) 29,303 Fair value of consideration transferred 64,266 Fair value of our interest prior to the acquisition (2) 52,505 Fair value of total consideration $ 116,771 (1) Concurrent with the acquisition, we recognized $5.8 million of post-combination compensation expense. Of this amount, $2.4 million is reflected as a reduction of $18.0 million in cash paid at closing of the acquisition, while $3.4 million increased the deferred consideration and contingent consideration liabilities recognized at the date of the acquisition to a total of $14.1 million and $31.7 million , respectively. (2) On the acquisition date, we remeasured the notes receivable from Caisson and our existing investment in Caisson at fair value and recognized a pre-tax non-cash gain of $1.3 million and $38.1 million , respectively, which are included in Gain on acquisition of Caisson Interventional, LLC in the condensed consolidated statements of income (loss).
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table presents the preliminary purchase price allocation at fair value for the Caisson acquisition (in thousands): Cash and cash equivalents $ 1,468 In-process research and development 89,000 Goodwill 42,417 Other assets 918 Current liabilities 1,023 Deferred income tax liabilities, net 16,009 Net assets acquired $ 116,771
Schedule of Business Acquisitions by Acquisition, Contingent Consideration	Both arrangements are Level 3 fair value measurements and include the following significant unobservable inputs (in thousands): Fair value at May 2, 2017 Valuation Technique Unobservable Input Ranges Regulatory milestone-based payments $ 14,883 Discounted cash flow Discount rate 2.6% - 3.4% Probability of payment 90-95% Projected payment years 2018-2023 Sales-based earnout 16,805 Monte Carlo simulation Discount rate 11.5-12.7% Sales volatility 36.9% Projected years of sales 2019-2033 $ 31,688

Restructuring (Tables)

Restructuring (Tables)	6 Months Ended
	Jun. 30, 2017
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The following table presents restructuring expense accrual detail (in thousands): Employee severance and other termination costs Other Total Balance at December 31, 2016 $ 21,092 $ 3,056 $ 24,148 Charges 6,193 5,075 11,268 Cash payments and adjustments (20,312 ) (5,457 ) (25,769 ) Balance at June 30, 2017 $ 6,973 $ 2,674 $ 9,647
Schedule of Restructuring Expense by Reportable Segment	The following table presents restructuring expense by reportable segment (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cardiac Surgery $ 501 $ 751 $ 6,503 $ 4,962 Cardiac Rhythm Management (1,479 ) 855 (1,359 ) 16,021 Neuromodulation (185 ) 1,973 499 4,136 Other 2,281 667 5,625 7,719 Total $ 1,118 $ 4,246 $ 11,268 $ 32,838

Product Remediation Liability (

Product Remediation Liability (Tables)	6 Months Ended
	Jun. 30, 2017
Environmental Remediation Obligations [Abstract]
Product Liability Contingencies	Changes in the carrying amount of the product remediation liability are as follows (in thousands): Balance at December 31, 2016 $ 33,487 Adjustments (15 ) Remediation activity (3,076 ) Effect of changes in foreign currency exchange rates 1,579 Balance at June 30, 2017 $ 31,975

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2017
Investments [Abstract]
Schedule of Cost Method Investments	Our cost-method investments are included in Investments in the condensed consolidated balance sheets and consist of our equity positions in the following privately-held companies (in thousands): June 30, 2017 December 31, 2016 Respicardia Inc. (1) $ 20,046 $ 17,518 ImThera Medical, Inc. (2) 12,000 12,000 Rainbow Medical Ltd. (3) 4,045 3,733 MD Start II 571 526 Other (4) 145 — $ 36,807 $ 33,777 (1) Respicardia Inc. (“Respicardia”) is a privately funded U.S. company developing an implantable device designed to restore a more natural breathing pattern during sleep in patients with central sleep apnea ("CSA") by transvenously stimulating the phrenic nerve. During the six months ended June 30, 2017, we loaned Respicardia $1.4 million , which is included in Prepaid expenses and other current assets on the condensed consolidated balance sheet. (2) ImThera Medical Inc. (“ImThera”) is a privately funded U.S. company developing a neurostimulation device system for the treatment of obstructive sleep apnea. During the six months ended June 30, 2017, we loaned ImThera $1.0 million , which is included in Other assets on the condensed consolidated balance sheet. (3) Rainbow Medical Ltd. is a private Israeli venture capital company that seeds and grows companies developing medical devices in a diverse range of medical fields. (4) During the six months ended June 30, 2017, we sold our investment in Istituto Europeo di Oncologia S.R.L, for a gain of $3.2 million . This gain is included in Foreign exchange and other (losses) gains in the condensed consolidated statement of income (loss).
Equity Method Investments	Our equity-method investments consist of our equity position in the following entities (in thousands, except for percent ownership): % Ownership (1) June 30, 2017 December 31, 2016 Caisson Interventional LLC (2) $ — $ 16,423 Highlife S.A.S. (3) 38.0 % 883 6,009 MicroPort Sorin CRM (Shanghai) Co. Ltd. 49.0 % 3,306 4,867 Other 17 16 Total $ 4,206 $ 27,315 (1) Ownership percentages as of June 30, 2017 . (2) On May 2, 2017, we acquired the 51% remaining equity interests in Caisson Interventional LLC (“Caisson”), and we began consolidating the results of Caisson as of the acquisition date. Refer to “Note 2. Acquisitions” and to “Note 6. Fair Value Measurements” for further information. (3) Highlife S.A.S is a privately held clinical-stage medical device company located in France and is focused on the development of a unique transcatheter mitral valve replacement system to treat patients with mitral regurgitation. During the three months ended June 30, 2017, we recognized an impairment of our investment in, and notes receivable from, Highlife, see the paragraph below for further details.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements on a Recurring Basis	The following table provides information by level for assets and liabilities that are measured at fair value on a recurring basis (in thousands): Fair Value Fair Value Measurements Using Inputs Considered as: June 30, 2017 Level 1 Level 2 Level 3 Assets: Derivative assets - designated as cash flow hedges (FX) $ 1,813 $ — $ 1,813 $ — Liabilities: Derivative liabilities - designated as cash flow hedges (interest rate swaps) $ 1,899 $ — $ 1,899 $ — Derivative liabilities - freestanding instruments (FX) 84 — 84 — Contingent payments (1) 36,080 — — 36,080 $ 38,063 $ — $ 1,983 $ 36,080 Fair Value Fair Value Measurements Using Inputs Considered as: December 31, 2016 Level 1 Level 2 Level 3 Assets: Derivative assets - designated as cash flow hedges (FX) $ 4,911 $ — $ 4,911 $ — Derivative assets - freestanding instruments (FX) 3,358 — 3,358 — $ 8,269 $ — $ 8,269 $ — Liabilities: Derivative liabilities - designated as cash flow hedges (FX) $ 942 $ — $ 942 $ — Derivative Liabilities - designated as cash flow hedges (interest rate swaps) 1,392 — 1,392 — Contingent payments (1) 3,890 — — 3,890 $ 6,224 $ — $ 2,334 $ 3,890 (1) These contingent payments arose as a result of acquisitions, refer to “Note 15. Supplemental Financial Information - Other Long-Term Liabilities” for further information.

Financing Arrangements (Tables)

Financing Arrangements (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Schedule of Long-term Debt	The outstanding principal amount of long-term debt (in thousands, except interest rates): June 30, 2017 December 31, 2016 Maturity Interest Rate European Investment Bank (1) $ 76,072 $ 78,987 June 2021 0.95 % Banca del Mezzogiorno (2) 6,283 6,747 December 2019 0.50% - 3.15% Mediocredito Italiano (3) 7,404 7,276 December 2023 0.50% - 3.07% Bpifrance (ex-Oséo) 1,724 1,909 October 2019 2.58 % Region Wallonne 804 798 December 2023 and June 2033 0.00% - 2.42% Mediocredito Italiano - mortgages and other 803 799 September 2021 and September 2026 0.40% - 0.65% Total debt 93,090 96,516 Less current portion of long-term debt 23,349 21,301 Total long-term debt $ 69,741 $ 75,215 (1) The European Investment Bank (“EIB”) loan was obtained in July 2014 to support product development projects. The interest rate for the EIB loan is reset by the lender each quarter based on the Euribor. Interest payments are paid quarterly and principal payments are paid semi-annually. (2) The Banca del Mezzogiorno loan was obtained in January 2015 to support R&D projects as a part of the Large Strategic Project program of the Italian Ministry of Education. (3) We obtained the Mediocredito Italiano Bank loan in July 2016 as part of the Fondo Innovazione Teconologica program implemented by the Italian Ministry of Education.

Derivatives and Risk Manageme31

Derivatives and Risk Management (Tables)	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Notional Amounts of Derivative Contracts Designated Cash Flow Hedges	Notional amounts of open derivative contracts designated as cash flow hedges (in thousands): Description of contract: June 30, 2017 December 31, 2016 FX derivative contracts to be exchanged for British Pounds $ 19,268 $ 6,663 FX derivative contracts to be exchanged for Japanese Yen 58,902 57,840 FX derivative contracts to be exchanged for Canadian Dollars 15,868 — Interest rate swap contracts 60,907 63,246 $ 154,945 $ 127,749
Unrealized Gain (Loss) in AOCI	After-tax net gain associated with derivatives designated as cash flow hedges recorded in the ending balance of Accumulated Other Comprehensive Income and the amount expected to be reclassified to earnings in the next 12 months (in thousands): Description of contract: June 30, 2017 Net amount expected to be reclassified to earnings in the next 12 months FX derivative contracts $ 613 $ 613 Interest rate swap contracts 346 87 $ 959 $ 700
Schedule of Cash Flow Hedges Included in AOCI	Pre-tax gains (losses) for derivative contracts designated as cash flow hedges recognized in Other Comprehensive Income (Loss) (“OCI”) and the amount reclassified to earnings from Accumulated Other Comprehensive Income (Loss) (“AOCI”) (in thousands): Three Months Ended June 30, 2017 2016 Description of derivative contract Location in earnings of reclassified gain or loss Losses Recognized in OCI (Losses) Gains Reclassified from AOCI to Earnings: (Losses) Gains Recognized in OCI Losses Reclassified from AOCI to Earnings: FX derivative contracts Foreign Exchange and Other (Losses) Gains $ (755 ) $ (532 ) $ (4,887 ) $ (42 ) FX derivative contracts SG&A — 544 — (1,270 ) Interest rate swap contracts Interest expense — 543 18 (56 ) $ (755 ) $ 555 $ (4,869 ) $ (1,368 ) Six Months Ended June 30, 2017 2016 Description of derivative contract Location in earnings of reclassified gain or loss Losses Recognized in OCI (Losses) Gains Reclassified from AOCI to Earnings: Losses Recognized in OCI Gains (Losses)Reclassified from AOCI to Earnings: FX derivative contracts Foreign Exchange and Other (Losses) Gains $ (7,587 ) $ (5,210 ) $ (8,467 ) $ 148 FX derivative contracts SG&A — 1,354 — (1,561 ) Interest rate swap contracts Interest expense — 212 (301 ) (89 ) $ (7,587 ) $ (3,644 ) $ (8,768 ) $ (1,502 )
Schedule of Fair Value of Derivative Instruments in Statement of Financial Position	The following tables present the fair value on a gross basis, and the location of, derivative contracts reported in the condensed consolidated balance sheets (in thousands): June 30, 2017 Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments Balance Sheet Location Fair Value (1) Balance Sheet Location Fair Value (1) Interest rate swap contracts Prepaid expenses and other current assets $ — Accrued liabilities $ 897 Interest rate swap contracts Other assets — Other long-term liabilities 1,002 FX derivative contracts Prepaid expenses and other current assets 1,813 Accrued liabilities — Total derivatives designated as hedging instruments 1,813 1,899 Derivatives not designated as hedging instruments FX derivative contracts Prepaid expenses and other current assets — Accrued liabilities 84 Total derivatives not designated as hedging instruments — 84 $ 1,813 $ 1,983 December 31, 2016 Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments Balance Sheet Location Fair Value (1) Balance Sheet Location Fair Value (1) Interest rate swap contracts Prepaid expenses and other current assets $ — Accrued liabilities $ 942 Interest rate swap contracts Other assets — Other long-term liabilities 1,392 FX derivative contracts Prepaid expenses and other current assets 4,911 Accrued liabilities — Total derivatives designated as hedging instruments 4,911 2,334 Derivatives not designated as hedging instruments FX derivative contracts Prepaid expenses and other current assets 3,358 Accrued liabilities — Total derivatives not designated as hedging instruments 3,358 — $ 8,269 $ 2,334 (1) For the classification of input used to evaluate the fair value of our derivatives, refer to “Note 6. Fair Value Measurements.”

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity Note [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The table below presents the change in each component of accumulated other comprehensive income (loss) (“AOCI”), net of tax, and the reclassifications out of AOCI into net earnings for the six months ended June 30, 2017 and June 30, 2016 (in thousands): Change in Unrealized Gain (Loss) on Derivatives Foreign Currency Translation Adjustments Gain (Loss) (1) Total As of December 31, 2016 $ 3,619 $ (72,106 ) $ (68,487 ) Other comprehensive (loss) income before reclassifications, before tax (7,587 ) 72,017 64,430 Tax benefit 1,821 — 1,821 Other comprehensive (loss) income before reclassifications, net of tax (5,766 ) 72,017 66,251 Reclassification of loss from accumulated other comprehensive income, before tax 3,644 — 3,644 Tax benefit (538 ) — (538 ) Reclassification of loss from accumulated other comprehensive income, after tax 3,106 — 3,106 Net current-period other comprehensive (loss) income, net of tax (2,660 ) 72,017 69,357 As of June 30, 2017 $ 959 $ (89 ) $ 870 As of December 31, 2015 $ 888 $ (55,116 ) $ (54,228 ) Other comprehensive (loss) income before reclassifications, before tax (8,768 ) 34,403 25,635 Tax benefit 2,639 — 2,639 Other comprehensive (loss) income before reclassifications, net of tax (6,129 ) 34,403 28,274 Reclassification of loss from accumulated other comprehensive income, before tax 1,502 — 1,502 Tax benefit (453 ) — (453 ) Reclassification of loss from accumulated other comprehensive income, after tax 1,049 — 1,049 Net current-period other comprehensive (loss) income, net of tax (5,080 ) 34,403 29,323 As of June 30, 2016 $ (4,192 ) $ (20,713 ) $ (24,905 ) (1) Taxes are not provided for foreign currency translation adjustments as translation adjustments are related to earnings that are intended to be reinvested in the countries where earned.

Stock-Based Incentive Plan (Tab

Stock-Based Incentive Plan (Tables)	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation, Stock Options, Activity	Stock-based compensation agreements executed during the three months ended June 30, 2017, representing potential shares and their weighted average grant date fair values by type follows (shares in thousands, fair value in dollars): Three Months Ended June 30, 2017 Shares Weighted Average Grant Date Fair Value Service-based SARs 639 $ 17.03 Service-based RSUs 108 57.37 Market-based performance RSUs 158 25.29 Operating performance-based RSUs 189 56.18

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Income Per Share	The following table sets forth the computation of basic and diluted net income (loss) per share, (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Numerator: Net income (loss) $ 47,498 $ 8,957 $ 58,769 $ (31,421 ) Denominator: Basic weighted average shares outstanding 48,140 49,056 48,104 48,987 Add effects of share-based compensation instruments (1) 163 106 137 — Diluted weighted average shares outstanding 48,303 49,162 48,241 48,987 Basic income (loss) per share $ 0.99 $ 0.18 $ 1.22 $ (0.64 ) Diluted income (loss) per share $ 0.98 $ 0.18 $ 1.22 $ (0.64 ) (1) Excluded from the computation of diluted earnings per share for the three and six months ended June 30, 2017 were approximately 1.8 million stock options, SARs and restricted share units outstanding as of June 30, 2017 , because to include them would be anti-dilutive. Excluded from the computation of diluted earnings per share for the three months ended June 30, 2016 were approximately 1.5 million stock options, SARs and restricted share units outstanding as of June 30, 2016 , because to include them would be anti-dilutive. Excluded from the computation of diluted earnings per share for the six months ended June 30, 2016 , were approximately 131 thousand average outstanding stock options, SARs and restricted share units that would have been dilutive but were excluded due to the net loss.

Geographic and Segment Inform35

Geographic and Segment Information (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Net sales and income (loss) from operations by segment (in thousands): Three Months Ended June 30, Six Months Ended June 30, Net Sales: 2017 2016 2017 2016 Cardiac Surgery $ 158,586 $ 161,051 $ 297,790 $ 304,494 Neuromodulation 97,015 90,039 184,174 171,397 Cardiac Rhythm Management 65,544 69,558 123,824 131,289 Other 242 399 704 836 $ 321,387 $ 321,047 $ 606,492 $ 608,016 Three Months Ended June 30, Six Months Ended June 30, Income (Loss) from Operations: 2017 2016 2017 2016 Cardiac Surgery $ 23,665 $ 9,020 $ 39,683 $ 11,406 Neuromodulation 51,747 47,240 93,425 87,822 Cardiac Rhythm Management 5,617 (335 ) 8,109 (9,834 ) Other (33,629 ) (17,236 ) (51,431 ) (35,565 ) Total Reportable Segments’ Income from Operations 47,400 38,689 89,786 53,829 Merger and integration expenses 3,522 6,200 5,730 12,961 Restructuring expenses 1,118 4,246 11,268 32,838 Amortization of intangibles 11,681 6,292 23,095 22,184 Income (Loss) from operations $ 31,079 $ 21,951 $ 49,693 $ (14,154 ) The following tables present our assets and capital expenditures by segment (in thousands): Assets: June 30, 2017 December 31, 2016 Cardiac Surgery $ 1,351,706 $ 1,277,799 Neuromodulation 600,074 611,085 Cardiac Rhythm Management 345,464 341,998 Other 236,441 111,749 $ 2,533,685 $ 2,342,631 Three Months Ended June 30, Six Months Ended June 30, Capital expenditures: 2017 2016 2017 2016 Cardiac Surgery $ 3,957 $ 4,820 $ 7,751 $ 10,309 Neuromodulation 517 1,906 1,978 3,821 Cardiac Rhythm Management 1,148 715 2,806 1,195 Other 1,185 258 2,388 1,331 $ 6,807 $ 7,699 $ 14,923 $ 16,656
Schedule of Goodwill	The changes in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2017 were as follows (in thousands): Neuromodulation Cardiac Surgery Cardiac Rhythm Management Other Total December 31, 2016 $ 315,943 $ 375,769 $ — $ — $ 691,712 Goodwill as a result of acquisitions (1) — — — 42,418 42,418 Foreign currency adjustments — 29,395 — — 29,395 June 30, 2017 $ 315,943 $ 405,164 $ — $ 42,418 $ 763,525
Revenue from External Customers by Geographic Areas	We operate under three geographic regions: United States, Europe, and Rest of World. Net sales to external customers by geography are determined based on the country the products are shipped to and are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, Net Sales 2017 2016 2017 2016 United States $ 129,558 $ 124,411 $ 243,907 $ 238,553 Europe (1) (2) 105,039 111,130 201,385 210,385 Rest of World 86,790 85,506 161,200 159,078 Total (3) $ 321,387 $ 321,047 $ 606,492 $ 608,016 (1) Net sales to external customers in the United Kingdom include $9.2 million and $17.3 million for the three and six months ended June 30, 2017 , respectively and $10.5 million and $19.1 million for the three and six months ended June 30, 2016 , respectively. (2) Includes those countries in Europe where we have a direct sales presence. Countries where sales are made through distributors are included in Rest of World. (3) No single customer represented over 10% of our consolidated net sales. Except for the U.S. and France, no country’s net sales exceeded 10% of our consolidated net sales. French sales were $34.1 million and $67.0 million for the three and six months ended June 30, 2017 , respectively, and $34.4 million and $67.0 million for the three and six months ended June 30, 2016 , respectively.
Long-lived Assets by Geographic Areas	Property, plant and equipment, net by geography are as follows (in thousands): PP&E June 30, 2017 December 31, 2016 United States $ 62,615 $ 61,279 Europe (1) 134,267 130,777 Rest of World 14,282 31,786 Total $ 211,164 $ 223,842 (1) Property, plant and equipment, net included with Europe includes $2.9 million and $3.0 million in the United Kingdom at June 30, 2017 and December 31, 2016 , respectively.

Supplemental Financial Inform36

Supplemental Financial Information (Tables)	6 Months Ended
	Jun. 30, 2017
Balance Sheet Related Disclosures [Abstract]
Accounts Receivables	Accounts receivable, net, consisted of the following (in thousands): June 30, 2017 December 31, 2016 Trade receivables from third parties $ 316,866 $ 285,336 Allowance for bad debt (11,511 ) (9,606 ) $ 305,355 $ 275,730
Inventories	Inventories consisted of the following (in thousands): June 30, 2017 December 31, 2016 Raw materials $ 52,220 $ 47,704 Work-in-process 37,482 32,316 Finished goods 114,978 103,469 $ 204,680 $ 183,489
Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following (in thousands): June 30, 2017 December 31, 2016 Income taxes payable on inter-company transfers of property (1) $ 19,445 $ 19,445 Deposits and advances to suppliers 6,212 5,417 Earthquake grant receivable 4,824 4,748 Current loans and notes receivable 2,294 7,093 Escrow deposit - Caisson 2,000 — Derivative contract assets 1,813 8,269 Other prepaid expenses 12,625 11,001 $ 49,213 $ 55,973 (1) The income taxes payable on intercompany transfers of property asset is the asset account created to defer the income tax effect of an intercompany intellectual property sale and intercompany inventory sales pursuant to ASC 810-10-45-8.
Other Long-term Assets	Other assets consisted of the following (in thousands): June 30, 2017 December 31, 2016 Income taxes payable on inter-company transfers of property (1) $ 113,779 $ 124,551 Investments (2) 3,105 2,537 Loans and notes receivable 1,931 2,029 Escrow deposit - Caisson 1,000 — Guaranteed deposits 768 940 Other 862 641 $ 121,445 $ 130,698 (1) The income taxes payable on intercompany transfers of property asset is the asset account created to defer the income tax effect of an intercompany intellectual property sale and intercompany inventory sales pursuant to ASC 810-10-45-8. (2) Primarily cash surrender value of company owned life insurance policies.
Accrued Liabilities	Accrued liabilities and other consisted of the following (in thousands): June 30, 2017 December 31, 2016 Product remediation liability (1) $ 22,115 $ 23,464 Deferred compensation - Caisson acquisition 14,052 — Legal and other administrative costs 9,077 6,184 Provisions for agents, returns and other 7,984 7,271 Restructuring related liabilities 6,725 16,859 Product warranty obligations 2,278 2,736 Royalty costs 2,257 2,503 Escrow indemnity liability - Caisson 2,000 — Deferred income and government grants 3,039 1,708 Derivative contract liabilities (2) 981 942 Research and development costs 961 839 Other 18,577 13,061 $ 90,046 $ 75,567 (1) Refer to “Note 4. Product Remediation Liability.” (2) Refer to “Note 8. Derivatives and Risk Management.”
Other Long-term Liabilities	Other long-term liabilities consisted of the following (in thousands): June 30, 2017 December 31, 2016 Contingent payments (1) $ 36,080 $ 3,890 Uncertain tax positions 11,553 11,108 Product remediation liability (2) 9,860 10,023 Government grants 6,256 3,803 Derivative contract liabilities (3) 1,002 1,392 Escrow indemnity liability - Caisson 1,000 — Unfavorable operating leases (4) 248 1,672 Other 9,667 7,599 $ 75,666 $ 39,487 (1) The contingent payments liability represents contingent payments related to three acquisitions: the first and second acquisitions, in September 2015, were Cellplex PTY Ltd. in Australia and the commercial activities of a local distributor in Colombia. The contingent payments for the first acquisition are based on achievement of sales targets by the acquiree through June 30, 2018 and the contingent payments for the second acquisition are based on sales of cardiopulmonary disposable products and heart lung machines of the acquiree through December 2019. Refer to “Note 6. Fair Value Measurements.” The third acquisition, Caisson, occurred in May 2017. Refer to “Note 2. Acquisitions”. (2) Refer to “Note 4. Product Remediation Liability.” (3) Refer to “Note 8. Derivatives and Risk Management.” (4) Unfavorable operating leases represent the adjustment to recognize future lease obligations at their estimated fair value in conjunction with the Mergers.

Unaudited Condensed Consolida37

Unaudited Condensed Consolidated Financial Statements (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Assets held for sale	$ 13,859			$ 4,477
Proceeds from the sale of operation	4,900
Scenario, Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Assets held for sale	$ 4,500
Cost of goods sold - product remediation
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Litigation related expenses reclassified		$ 800	$ 1,600
SG&A
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Litigation related expenses reclassified		$ 500	$ 800

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) - USD ($)	May 02, 2018	May 02, 2017	Jun. 30, 2017	Jun. 30, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Escrow deposit - Caisson			$ 1,000,000	$ 1,000,000	$ 0
Caisson Interventional LLC
Business Acquisition [Line Items]
Equity interest acquired		51.00%
Purchase price		$ 72,000,000
Cash paid		18,000,000
Debt forgiven		6,309,000
Contingent consideration		39,600,000
Acquired goodwill to be deductible for tax purposes		9,600,000
Escrow deposit - Caisson		$ 3,000,000
Acquisition-related expense				1,000,000
Revenue			0
Expenses			2,000,000
Caisson Interventional LLC | Prepaid Expenses and Other Current Assets
Business Acquisition [Line Items]
Escrow deposit - Caisson			2,000,000	2,000,000
Caisson Interventional LLC | Other Noncurrent Assets
Business Acquisition [Line Items]
Escrow deposit - Caisson			$ 1,000,000	$ 1,000,000
Caisson Interventional LLC | Scenario, Forecast
Business Acquisition [Line Items]
Cash paid	$ 14,400,000

Acquisitions - Purchase Price C

Acquisitions - Purchase Price Composition (Details) - USD ($) $ in Thousands	May 02, 2017	Jun. 30, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Deferred compensation - Caisson acquisition		$ 14,052	$ 0
Caisson Interventional LLC
Business Acquisition [Line Items]
Cash	$ 15,660
Debt forgiven	6,309
Deferred consideration	12,994
Contingent consideration	29,303
Fair value of consideration transferred	64,266
Fair value of our interest prior to the acquisition	52,505
Fair value of total consideration	116,771
Post-combination compensation expense	5,800
Other closing costs	2,400
Cash paid	18,000
Increases to deferred consideration from post-combination compensation expense	3,400
Deferred compensation - Caisson acquisition	14,100
Contingent consideration liabilities	31,700
Pre-tax non-cash gain in remeasurement of notes receivable	1,300
Caisson Interventional LLC | Equity Method Investee
Business Acquisition [Line Items]
Non-taxable gain recognized in remeasurement of existing equity investment	$ 38,100

Acquisitions - Preliminary Purc

Acquisitions - Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands	Jun. 30, 2017	May 02, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill	$ 763,525		$ 691,712
Caisson Interventional LLC
Business Acquisition [Line Items]
Cash and cash equivalents		$ 1,468
In-process research and development		89,000
Goodwill		42,417
Other assets		918
Current liabilities		1,023
Deferred income tax liabilities, net		16,009
Net assets acquired		$ 116,771

Acquisitions - Contingent Consi

Acquisitions - Contingent Consideration (Details) - Caisson Interventional LLC $ in Thousands	May 02, 2017USD ($)
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration	$ 31,688
Volatility	36.90%
Minimum
Business Acquisition, Contingent Consideration [Line Items]
Probability of payment	90.00%
Maximum
Business Acquisition, Contingent Consideration [Line Items]
Probability of payment	95.00%
Discounted Cash Flow
Business Acquisition, Contingent Consideration [Line Items]
Regulatory milestone-based payments	$ 14,883
Discounted Cash Flow | Minimum
Business Acquisition, Contingent Consideration [Line Items]
Discount rate	2.60%
Discounted Cash Flow | Maximum
Business Acquisition, Contingent Consideration [Line Items]
Discount rate	3.40%
Monte Carlo Simulation
Business Acquisition, Contingent Consideration [Line Items]
Sales-based earnout	$ 16,805
Monte Carlo Simulation | Minimum
Business Acquisition, Contingent Consideration [Line Items]
Discount rate	11.50%
Monte Carlo Simulation | Maximum
Business Acquisition, Contingent Consideration [Line Items]
Discount rate	12.70%

Restructuring (Narrative) (Deta

Restructuring (Narrative) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)employee	Dec. 31, 2016USD ($)
Restructuring Cost and Reserve [Line Items]
Assets held for sale	$ 13,859	$ 4,477
Scenario, Adjustment
Restructuring Cost and Reserve [Line Items]
Assets held for sale	4,500
Suzhou Industrial Park Facility
Restructuring Cost and Reserve [Line Items]
Employee severance	(500)
Suzhou Industrial Park Facility | Building and Equipment
Restructuring Cost and Reserve [Line Items]
Asset Impairment Charges	(4,600)
Suzhou Industrial Park Facility | Land | Scenario, Adjustment
Restructuring Cost and Reserve [Line Items]
Assets held for sale	$ 13,900
2015 and 2016 Reorganization Plans
Restructuring Cost and Reserve [Line Items]
Expected number of positions eliminated | employee	323
Number of positions eliminated | employee	270

Restructuring (Accrual Detail)

Restructuring (Accrual Detail) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Restructuring Reserve [Roll Forward]
Charges	$ 1,118	$ 4,246	$ 11,268	$ 32,838
2015 and 2016 Reorganization Plans
Restructuring Reserve [Roll Forward]
Beginning liability balance			24,148
Charges			11,268
Cash payments and adjustments			(25,769)
Ending liability balance	9,647		9,647
2015 and 2016 Reorganization Plans | Employee severance and other termination costs
Restructuring Reserve [Roll Forward]
Beginning liability balance			21,092
Charges			6,193
Cash payments and adjustments			(20,312)
Ending liability balance	6,973		6,973
2015 and 2016 Reorganization Plans | Other
Restructuring Reserve [Roll Forward]
Beginning liability balance			3,056
Charges			5,075
Cash payments and adjustments			(5,457)
Ending liability balance	$ 2,674		$ 2,674

Restructuring (Restructuring Ex

Restructuring (Restructuring Expense by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Restructuring Cost and Reserve [Line Items]
Charges	$ 1,118	$ 4,246	$ 11,268	$ 32,838
Operating Segments | Cardiac Surgery
Restructuring Cost and Reserve [Line Items]
Charges	501	751	6,503	4,962
Operating Segments | Cardiac Rhythm Management
Restructuring Cost and Reserve [Line Items]
Charges	(1,479)	855	(1,359)	16,021
Operating Segments | Neuromodulation
Restructuring Cost and Reserve [Line Items]
Charges	(185)	1,973	499	4,136
Other
Restructuring Cost and Reserve [Line Items]
Charges	$ 2,281	$ 667	$ 5,625	$ 7,719

Product Remediation Liability45

Product Remediation Liability (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Accrual for Environmental Loss Contingencies [Roll Forward]
Product remediation accrual, beginning balance	$ 33,487
Adjustments	(15)
Remediation activity	(3,076)
Effect of changes in foreign currency exchange rates	1,579
Product remediation accrual, ending balance	$ 31,975

Investments (Cost-Method Invest

Investments (Cost-Method Investments) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Schedule of Cost-method Investments [Line Items]
Cost method investments	$ 36,807		$ 36,807		$ 33,777
Foreign exchange and other (losses) gains	(2,973)	$ 617	466	$ (1,218)
Respicardia | Cost Method Investee | Other Assets
Schedule of Cost-method Investments [Line Items]
Outstanding loans	1,400		1,400
ImThera Medical, Inc. | Cost Method Investee | Other Assets
Schedule of Cost-method Investments [Line Items]
Outstanding loans	1,000		1,000
Respicardia
Schedule of Cost-method Investments [Line Items]
Cost method investments	20,046		20,046		17,518
ImThera Medical, Inc.
Schedule of Cost-method Investments [Line Items]
Cost method investments	12,000		12,000		12,000
Rainbow Medical Ltd.
Schedule of Cost-method Investments [Line Items]
Cost method investments	4,045		4,045		3,733
MD Start II
Schedule of Cost-method Investments [Line Items]
Cost method investments	571		571		526
Other
Schedule of Cost-method Investments [Line Items]
Cost method investments	$ 145		145		$ 0
Istituto Europeo di Oncologia S.R.L.
Schedule of Cost-method Investments [Line Items]
Foreign exchange and other (losses) gains			$ 3,200

Investments (Equity Method Inve

Investments (Equity Method Investments) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	May 02, 2017	Dec. 31, 2016
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 4,206		$ 27,315
Caisson Interventional LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 0		16,423
Highlife S.A.S.
Schedule of Equity Method Investments [Line Items]
Ownership Percentage (percent)	38.00%
Equity method investments	$ 883		6,009
Other than Temporary Impairment Losses, Investments	$ 13,000
MicroPort Sorin CRM (Shanghai) Co Ltd
Schedule of Equity Method Investments [Line Items]
Ownership Percentage (percent)	49.00%
Equity method investments	$ 3,306		4,867
Other
Schedule of Equity Method Investments [Line Items]
Equity method investments	17		$ 16
Caisson Interventional LLC and Highlife S.A.S. | Other Assets
Schedule of Equity Method Investments [Line Items]
Outstanding loans	$ 800
Caisson Interventional LLC
Schedule of Equity Method Investments [Line Items]
Equity interest acquired		51.00%

Fair Value Measurements (Assets

Fair Value Measurements (Assets and Liabilities That Are Measured at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets:
Total assets		$ 8,269
Liabilities:
Earnout for Contingent Consideration	$ 36,080	3,890
Total Liabilities	38,063	6,224
Designated as Hedging Instrument | Foreign Exchange Contract
Assets:
Derivative Asset	1,813	4,911
Liabilities:
Derivative liabilities		942
Designated as Hedging Instrument | Interest Rate Contract
Liabilities:
Derivative liabilities	1,899	1,392
Not Designated as Hedging Instrument | Foreign Exchange Contract
Assets:
Derivative Asset		3,358
Liabilities:
Derivative liabilities	84
Level 1
Assets:
Total assets		0
Liabilities:
Earnout for Contingent Consideration	0	0
Total Liabilities	0	0
Level 1 | Designated as Hedging Instrument | Foreign Exchange Contract
Assets:
Derivative Asset	0	0
Liabilities:
Derivative liabilities		0
Level 1 | Designated as Hedging Instrument | Interest Rate Contract
Liabilities:
Derivative liabilities	0	0
Level 1 | Not Designated as Hedging Instrument | Foreign Exchange Contract
Assets:
Derivative Asset		0
Liabilities:
Derivative liabilities	0
Level 2
Assets:
Total assets		8,269
Liabilities:
Earnout for Contingent Consideration	0	0
Total Liabilities	1,983	2,334
Level 2 | Designated as Hedging Instrument | Foreign Exchange Contract
Assets:
Derivative Asset	1,813	4,911
Liabilities:
Derivative liabilities		942
Level 2 | Designated as Hedging Instrument | Interest Rate Contract
Liabilities:
Derivative liabilities	1,899	1,392
Level 2 | Not Designated as Hedging Instrument | Foreign Exchange Contract
Assets:
Derivative Asset		3,358
Liabilities:
Derivative liabilities	84
Level 3
Assets:
Total assets		0
Liabilities:
Earnout for Contingent Consideration	36,080	3,890
Total Liabilities	36,080	3,890
Level 3 | Designated as Hedging Instrument | Foreign Exchange Contract
Assets:
Derivative Asset	0	0
Liabilities:
Derivative liabilities		0
Level 3 | Designated as Hedging Instrument | Interest Rate Contract
Liabilities:
Derivative liabilities	0	0
Level 3 | Not Designated as Hedging Instrument | Foreign Exchange Contract
Assets:
Derivative Asset		$ 0
Liabilities:
Derivative liabilities	$ 0

Financing Arrangements (Long-Te

Financing Arrangements (Long-Term Debt Outstanding, Revolving Credit and European Investment Bank Financing Agreement) (Details) $ in Thousands, € in Millions	Jun. 30, 2017USD ($)	Jun. 29, 2017USD ($)	Jun. 29, 2017EUR (€)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Total debt	$ 93,090			$ 96,516
Less current portion of long-term debt	23,349			21,301
Total long-term debt	69,741			75,215
Finance contract, borrowing base		$ 114,000	€ 100
Tranche One
Debt Instrument [Line Items]
Finance contract, borrowing base		57,000	50
Tranche Two
Debt Instrument [Line Items]
Finance contract, borrowing base		$ 57,000	€ 50
Revolving Credit Facility
Debt Instrument [Line Items]
Outstanding principal amount of short-term unsecured revolving credit agreements	$ 32,400			$ 26,400
Interest Rate (percent)	0.20%			12.60%
Loans Payable | European Investment Bank
Debt Instrument [Line Items]
Total debt	$ 76,072			$ 78,987
Interest Rate (percent)	0.95%
Loans Payable | Banca del Mezzogiorno
Debt Instrument [Line Items]
Total debt	$ 6,283			6,747
Loans Payable | Banca del Mezzogiorno | Minimum
Debt Instrument [Line Items]
Interest Rate (percent)	0.50%
Loans Payable | Banca del Mezzogiorno | Maximum
Debt Instrument [Line Items]
Interest Rate (percent)	3.15%
Loans Payable | Mediocredito Italiano
Debt Instrument [Line Items]
Total debt	$ 7,404			7,276
Loans Payable | Mediocredito Italiano | Minimum
Debt Instrument [Line Items]
Interest Rate (percent)	0.50%
Loans Payable | Mediocredito Italiano | Maximum
Debt Instrument [Line Items]
Interest Rate (percent)	3.07%
Loans Payable | Bpifrance
Debt Instrument [Line Items]
Total debt	$ 1,724			1,909
Interest Rate (percent)	2.58%
Loans Payable | Novalia SA
Debt Instrument [Line Items]
Total debt	$ 804			798
Loans Payable | Novalia SA | Minimum
Debt Instrument [Line Items]
Interest Rate (percent)	0.00%
Loans Payable | Novalia SA | Maximum
Debt Instrument [Line Items]
Interest Rate (percent)	2.42%
Mortgages | Mediocredito Italiano
Debt Instrument [Line Items]
Total debt	$ 803			$ 799
Mortgages | Mediocredito Italiano | Minimum
Debt Instrument [Line Items]
Interest Rate (percent)	0.40%
Mortgages | Mediocredito Italiano | Maximum
Debt Instrument [Line Items]
Interest Rate (percent)	0.65%

Derivatives and Risk Manageme50

Derivatives and Risk Management (Narrative) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Foreign Exchange Forward
Derivative [Line Items]
Notional amount	$ 240.5		$ 240.5		$ 489.1
Foreign Exchange Contract | Foreign Exchange and Other
Derivative [Line Items]
Gain (loss) on derivative	$ (5.4)	$ 6.1	$ (7.2)	$ 2.2

Derivatives and Risk Manageme51

Derivatives and Risk Management (Derivative Notional Amounts) (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Derivative [Line Items]
Notional amount	$ 154,945	$ 127,749
After-tax, net unrealized losses on derivatives arising during period	959
Accumulated Other Comprehensive Income (Loss), Net of Tax	700
Foreign Exchange Contract
Derivative [Line Items]
After-tax, net unrealized losses on derivatives arising during period	613
Accumulated Other Comprehensive Income (Loss), Net of Tax	613
Foreign Exchange Contract | United Kingdom, Pounds
Derivative [Line Items]
Notional amount	19,268	6,663
Foreign Exchange Contract | Japan, Yen
Derivative [Line Items]
Notional amount	58,902	57,840
Foreign Exchange Contract | Canada, Dollars
Derivative [Line Items]
Notional amount	15,868	0
Interest Rate Swap Contracts
Derivative [Line Items]
Notional amount	60,907	$ 63,246
After-tax, net unrealized losses on derivatives arising during period	346
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ 87

Derivatives and Risk Manageme52

Derivatives and Risk Management (Amount of Gain (Loss) Recognized in OCI and Income Statement) (Details) - Cash Flow Hedging - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Losses Recognized in OCI	$ (755)	$ (4,869)	$ (7,587)	$ (8,768)
(Losses) Gains Reclassified from AOCI to Earnings	555	(1,368)	(3,644)	(1,502)
Foreign Exchange and Other
Derivative Instruments, Gain (Loss) [Line Items]
(Losses) Gains Reclassified from AOCI to Earnings	(532)	(42)	(5,210)	148
SG&A
Derivative Instruments, Gain (Loss) [Line Items]
(Losses) Gains Reclassified from AOCI to Earnings	544	(1,270)	1,354	(1,561)
Interest Expense
Derivative Instruments, Gain (Loss) [Line Items]
(Losses) Gains Reclassified from AOCI to Earnings	543	(56)	212	(89)
Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Losses Recognized in OCI	(755)	(4,887)	(7,587)	(8,467)
Interest Rate Swap Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Losses Recognized in OCI	$ 0	$ 18	$ 0	$ (301)

Derivatives and Risk Manageme53

Derivatives and Risk Management (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Derivative contract assets	$ 1,813	$ 8,269
Total Liability Derivatives	1,983	2,334
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative contract assets	1,813	4,911
Total Liability Derivatives	1,899	2,334
Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Interest Rate Contract
Derivatives, Fair Value [Line Items]
Derivative contract assets	0	0
Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Foreign Exchange Contract
Derivatives, Fair Value [Line Items]
Derivative contract assets	1,813	4,911
Designated as Hedging Instrument | Accrued Liabilities | Interest Rate Contract
Derivatives, Fair Value [Line Items]
Total Liability Derivatives	897	942
Designated as Hedging Instrument | Accrued Liabilities | Foreign Exchange Contract
Derivatives, Fair Value [Line Items]
Total Liability Derivatives	0	0
Designated as Hedging Instrument | Other Assets | Interest Rate Contract
Derivatives, Fair Value [Line Items]
Derivative contract assets	0	0
Designated as Hedging Instrument | Other Long-term Liabilities | Interest Rate Contract
Derivatives, Fair Value [Line Items]
Total Liability Derivatives	1,002	1,392
Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative contract assets	0	3,358
Total Liability Derivatives	84	0
Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | Foreign Exchange Contract
Derivatives, Fair Value [Line Items]
Derivative contract assets	0	3,358
Not Designated as Hedging Instrument | Accrued Liabilities | Foreign Exchange Contract
Derivatives, Fair Value [Line Items]
Total Liability Derivatives	$ 84	$ 0

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Details)

Oct. 06, 2016USD ($)

Oct. 06, 2016EUR (€)

Apr. 01, 2016USD ($)

Apr. 01, 2016EUR (€)

Jan. 02, 2004USD ($)

Jan. 02, 2004EUR (€)

Jun. 30, 2017USD ($)installmentnotice

Jun. 30, 2017EUR (€)

Dec. 31, 2010USD ($)

Dec. 31, 2010EUR (€)

Jun. 30, 2017EUR (€)installmentnotice

Dec. 31, 2016USD ($)

Feb. 12, 2016patient

Aug. 27, 2015non-conformity

Oct. 30, 2009USD ($)

Oct. 30, 2009EUR (€)

Other Commitments [Line Items]

Accrual for Environmental Loss Contingencies | $

$ 31,975,000

$ 33,487,000

Estimate of possible loss

19,400,000

€ 17,000,000

Sorin S.p.A.

Other Commitments [Line Items]

Residual shareholders' equity received

$ 654,000,000

€ 573,000,000

Pending Litigation | SNIA s.p.a

Other Commitments [Line Items]

Compensation sought

$ 3,900,000,000

€ 3,400,000,000

Settled Litigation

Other Commitments [Line Items]

Litigation settlement

€ 200,000

Reimbursed legal fees

$ 228,000

€ 200,000

Settled Litigation | Sorin S.p.A. | Positive Outcome of Litigation

Other Commitments [Line Items]

Litigation settlement

$ 342,600

€ 300,000

Settled Litigation | Sorin S.p.A. and SNIA s.p.a | Positive Outcome of Litigation

Other Commitments [Line Items]

Litigation settlement

€ 50,000

Threatened Litigation | Regional Internal Revenue Office of Lombardy

Other Commitments [Line Items]

Write-down under dispute

$ 71,500,000

€ 62,600,000

$ 117,200,000

€ 102,600,000

Number of equal installments | installment

5

5

Number of notice of assessments | notice

3

3

FDA Warning Letter | Munich, Germany

Other Commitments [Line Items]

Number of observed non-conformities | non-conformity

2

Baker, Miller et al v. LivaNova PLC | Pending Litigation

Other Commitments [Line Items]

Number of patients | patient

3,600

Stockholders' Equity (Comprehen

Stockholders' Equity (Comprehensive Income) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	$ 1,706,909
Ending Balance	1,843,520
Change in unrealized gain (loss) on derivatives
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	3,619	$ 888
Other comprehensive (loss) income before reclassifications, before tax	(7,587)	(8,768)
Tax benefit	1,821	2,639
Other comprehensive (loss) income before reclassifications, net of tax	(5,766)	(6,129)
Reclassification of loss from accumulated other comprehensive income, before tax	3,644	1,502
Tax benefit	(538)	(453)
Reclassification of loss from accumulated other comprehensive income, after tax	3,106	1,049
Net current-period other comprehensive (loss) income, net of tax	(2,660)	(5,080)
Ending Balance	959	(4,192)
Foreign Currency Translation Adjustments Gain (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(72,106)	(55,116)
Other comprehensive (loss) income before reclassifications, before tax	72,017	34,403
Tax benefit	0	0
Other comprehensive (loss) income before reclassifications, net of tax	72,017	34,403
Reclassification of loss from accumulated other comprehensive income, before tax	0	0
Tax benefit	0	0
Reclassification of loss from accumulated other comprehensive income, after tax	0	0
Net current-period other comprehensive (loss) income, net of tax	72,017	34,403
Ending Balance	(89)	(20,713)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(68,487)	(54,228)
Other comprehensive (loss) income before reclassifications, before tax	64,430	25,635
Tax benefit	1,821	2,639
Other comprehensive (loss) income before reclassifications, net of tax	66,251	28,274
Reclassification of loss from accumulated other comprehensive income, before tax	3,644	1,502
Tax benefit	(538)	(453)
Reclassification of loss from accumulated other comprehensive income, after tax	3,106	1,049
Net current-period other comprehensive (loss) income, net of tax	69,357	29,323
Ending Balance	$ 870	$ (24,905)

Stock-Based Incentive Plan Comp

Stock-Based Incentive Plan Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 4,720	$ 4,691	$ 8,564	$ 10,807
Compensation expense related to grant agreements, executed during period	1,200
Service-based stock appreciation rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,866	2,009	3,466	4,584
Service-based restricted stock units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	2,289	2,393	4,493	5,904
Market-based performance restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	177	0	181	3
Operating performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 388	$ 289	$ 424	$ 316

Stock-Based Incentive Plan Exec

Stock-Based Incentive Plan Executed Agreements (Details) shares in Thousands	3 Months Ended
	Jun. 30, 2017$ / sharesshares
Service-based stock appreciation rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares (in shares) | shares	639
Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 17.03
Service-based restricted stock units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares (in shares) | shares	108
Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 57.37
Market-based performance restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares (in shares) | shares	158
Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 25.29
Operating performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares (in shares) | shares	189
Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 56.18

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Tax Contingency [Line Items]
Income tax expense	$ 3,313	$ 8,418	$ 8,968	$ 7,160
Effective tax rate (percent)	5.00%	40.30%	10.40%	(39.80%)
Deferred tax asset related to a reserve for an uncertain tax position	$ 3,000		$ 3,000
Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC) and Ministry of the Economy, Finance and Industry, France
Income Tax Contingency [Line Items]
Losses related to certain legal entities		$ 58,700		$ 58,700
Caisson Interventional LLC
Income Tax Contingency [Line Items]
Non-taxable gain recognized in remeasurement of existing equity investment			38,100
Deferred tax benefit recognized associated with certain temporary differences arising from Mergers			$ 3,900

Net Income (Loss) Per Share (Sc

Net Income (Loss) Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net income (loss)	$ 47,498	$ 8,957	$ 58,769	$ (31,421)
Basic weighted average shares outstanding (in Shares)	48,140	49,056	48,104	48,987
Add effects of share-based compensation instruments (in Shares)	163	106	137	0
Diluted weighted average shares outstanding (in Shares)	48,303	49,162	48,241	48,987
Basic income (loss) per share (in Dollars per Share)	$ 0.99	$ 0.18	$ 1.22	$ (0.64)
Diluted income (loss) per share (in Dollars per Share)	$ 0.98	$ 0.18	$ 1.22	$ (0.64)

Net Income (Loss) Per Share (60

Net Income (Loss) Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Ordinary Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	1,800	131
Service-based stock option awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)		1,500

Geographic and Segment Inform61

Geographic and Segment Information (Segment Info) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)segment	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Segment Reporting [Abstract]
Reportable segments | segment			3
Segment Reporting Information [Line Items]
Net sales	$ 321,387	$ 321,047	$ 606,492	$ 608,016
Total Reportable Segments’ Income from Operations	47,400	38,689	89,786	53,829
Merger and integration expenses	3,522	6,200	5,730	12,961
Charges	1,118	4,246	11,268	32,838
Amortization of intangibles	11,681	6,292	23,095	22,184
Income (loss) from operations	31,079	21,951	49,693	(14,154)
Assets	2,533,685		2,533,685		$ 2,342,631
Capital expenditures	6,807	7,699	14,923	16,656
Operating Segments | Cardiac Surgery
Segment Reporting Information [Line Items]
Net sales	158,586	161,051	297,790	304,494
Total Reportable Segments’ Income from Operations	23,665	9,020	39,683	11,406
Charges	501	751	6,503	4,962
Assets	1,351,706		1,351,706		1,277,799
Capital expenditures	3,957	4,820	7,751	10,309
Operating Segments | Neuromodulation
Segment Reporting Information [Line Items]
Net sales	97,015	90,039	184,174	171,397
Total Reportable Segments’ Income from Operations	51,747	47,240	93,425	87,822
Charges	(185)	1,973	499	4,136
Assets	600,074		600,074		611,085
Capital expenditures	517	1,906	1,978	3,821
Operating Segments | Cardiac Rhythm Management
Segment Reporting Information [Line Items]
Net sales	65,544	69,558	123,824	131,289
Total Reportable Segments’ Income from Operations	5,617	(335)	8,109	(9,834)
Charges	(1,479)	855	(1,359)	16,021
Assets	345,464		345,464		341,998
Capital expenditures	1,148	715	2,806	1,195
Other
Segment Reporting Information [Line Items]
Net sales	242	399	704	836
Total Reportable Segments’ Income from Operations	(33,629)	(17,236)	(51,431)	(35,565)
Charges	2,281	667	5,625	7,719
Assets	236,441		236,441		$ 111,749
Capital expenditures	$ 1,185	$ 258	$ 2,388	$ 1,331

Geographic and Segment Inform62

Geographic and Segment Information Changes in Carrying Amount of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Goodwill [Roll Forward]
Goodwill, beginning	$ 691,712
Goodwill as a result of acquisitions	42,418
Foreign currency adjustments	29,395
Goodwill, ending	763,525
Neuromodulation
Goodwill [Roll Forward]
Goodwill, beginning	315,943
Goodwill as a result of acquisitions	0
Foreign currency adjustments	0
Goodwill, ending	315,943
Cardiac Surgery
Goodwill [Roll Forward]
Goodwill, beginning	375,769
Goodwill as a result of acquisitions	0
Foreign currency adjustments	29,395
Goodwill, ending	405,164
Cardiac Rhythm Management
Goodwill [Roll Forward]
Goodwill, beginning	0
Goodwill as a result of acquisitions	0
Foreign currency adjustments	0
Goodwill, ending	0
Other
Goodwill [Roll Forward]
Goodwill, beginning	0
Goodwill as a result of acquisitions	42,418
Foreign currency adjustments	0
Goodwill, ending	$ 42,418

Geographic and Segment Inform63

Geographic and Segment Information (Geographic Areas) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)geographic_region	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)geographic_region	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of geographic regions in which entity operates | geographic_region	3		3
Net sales	$ 321,387	$ 321,047	$ 606,492	$ 608,016
Property, plant and equipment, net	211,164		211,164		$ 223,842
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	129,558	124,411	243,907	238,553
Property, plant and equipment, net	62,615		62,615		61,279
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	105,039	111,130	201,385	210,385
Property, plant and equipment, net	134,267		134,267		130,777
Rest of World
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	86,790	85,506	161,200	159,078
Property, plant and equipment, net	14,282		14,282		31,786
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	9,200	10,500	17,300	19,100
Property, plant and equipment, net	2,900		2,900		$ 3,000
France
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 34,100	$ 34,400	$ 67,000	$ 67,000

Supplemental Financial Inform64

Supplemental Financial Information (Summary of Accounts Receivable) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Trade receivables from third parties	$ 316,866	$ 285,336
Allowance for bad debt	(11,511)	(9,606)
Accounts receivable, net	$ 305,355	$ 275,730

Supplemental Financial Inform65

Supplemental Financial Information (Summary of Inventory) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 52,220	$ 47,704
Work-in-process	37,482	32,316
Finished goods	114,978	103,469
Inventory, Net	204,680	183,489
Provision for obsolescence	$ 12,300	$ 9,800

Supplemental Financial Inform66

Supplemental Financial Information (Summary of Prepaid Expenses and Other Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Income taxes payable on inter-company transfers of property (1)	$ 19,445	$ 19,445
Deposits and advances to suppliers	6,212	5,417
Earthquake grant receivable	4,824	4,748
Current loans and notes receivable	2,294	7,093
Escrow deposit - Caisson	2,000	0
Derivative contract assets	1,813	8,269
Other prepaid expenses	12,625	11,001
Prepaid Expense and Other Assets, Current	$ 49,213	$ 55,973

Supplemental Financial Inform67

Supplemental Financial Information (Summary of Other Long-term Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Income taxes payable on inter-company transfers of property	$ 113,779	$ 124,551
Investments	3,105	2,537
Loans and notes receivable	1,931	2,029
Escrow deposit - Caisson	1,000	0
Guaranteed deposits	768	940
Other	862	641
Other assets	$ 121,445	$ 130,698

Supplemental Financial Inform68

Supplemental Financial Information (Summary of Accrued Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Product remediation liability	$ 22,115	$ 23,464
Deferred compensation - Caisson acquisition	14,052	0
Legal and other administrative costs	9,077	6,184
Provisions for agents, returns and other	7,984	7,271
Restructuring related liabilities	6,725	16,859
Product warranty obligations	2,278	2,736
Royalty costs	2,257	2,503
Escrow indemnity liability - Caisson	2,000	0
Deferred income and government grants	3,039	1,708
Derivative contract liabilities	981	942
Research and development costs	961	839
Other	18,577	13,061
Accrued liabilities	$ 90,046	$ 75,567

Supplemental Financial Inform69

Supplemental Financial Information (Summary of Other Long-term Liabilities) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)company	Dec. 31, 2016USD ($)
Business Acquisition [Line Items]
Contingent payments	$ 36,080	$ 3,890
Uncertain tax positions	11,553	11,108
Product remediation liability	9,860	10,023
Government grants	6,256	3,803
Derivative contract liabilities	1,002	1,392
Escrow indemnity liability - Caisson	1,000	0
Unfavorable operating leases	248	1,672
Other	9,667	7,599
Other Liabilities, Noncurrent	$ 75,666	$ 39,487
Sorin S.p.A.
Business Acquisition [Line Items]
Number of businesses acquired | company	3

New Accounting Pronouncements (

New Accounting Pronouncements (Details) $ in Millions	Jan. 01, 2018USD ($)
Accounting Standards Update 2016-16 | Scenario, Forecast
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect reduction to retained earnings	$ 65.2