LivaNova (LIVN) 10-Q 3 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 26, 2018
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
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		48,435,677
Trading Symbol	LIVN

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net sales	$ 250,398	$ 226,825
Cost of sales	84,598	79,968
Product remediation	3,715	(792)
Gross profit	162,085	147,649
Operating expenses:
Selling, general and administrative	104,161	87,340
Research and development	31,752	20,386
Merger and integration expenses	2,960	2,186
Restructuring expenses	1,881	10,030
Amortization of intangibles	8,801	7,960
Total operating expenses	149,555	127,902
Operating income from continuing operations	12,530	19,747
Interest income	447	273
Interest expense	(2,111)	(2,315)
Gain on acquisition of ImThera Medical, Inc.	11,484	0
Foreign exchange and other (losses) gains	(273)	3,173
Income from continuing operations before tax	22,077	20,878
Income tax expense	3,893	5,655
Losses from equity method investments	(362)	(1,996)
Net income from continuing operations	17,822	13,227
Net loss from discontinued operations	(4,549)	(1,956)
Net income	$ 13,273	$ 11,271
Basic income (loss) per share - continuing operation (in Dollars per Share)	$ 0.37	$ 0.28
Basic income (loss) per share - discontinued operation (in Dollars per Share)	(0.10)	(0.05)
Basic income (loss) per share (in Dollars per Share)	0.27	0.23
Diluted income (loss) per share - continuing operation (in Dollars per Share)	0.36	0.27
Diluted income (loss) per share - discontinued operation (in Dollars per Share)	(0.09)	(0.04)
Diluted income (loss) per share (in Dollars per Share)	$ 0.27	$ 0.23
Shares used in computing basic income (loss) per share (in Shares)	48,324	48,067
Shares used in computing diluted income (loss) per share (in Shares)	49,187	48,178

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 13,273	$ 11,271
Other comprehensive (loss) income:
Net change in unrealized (loss) gains on derivatives	(1,257)	(2,633)
Tax effect	302	724
Net of tax	(955)	(1,909)
Foreign currency translation adjustment, net of tax	10,553	15,430
Total other comprehensive income	9,598	13,521
Total comprehensive income	$ 22,871	$ 24,792

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 64,964	$ 93,615
Accounts receivable, net	279,828	282,145
Inventories	154,326	144,470
Prepaid and refundable taxes	47,061	46,274
Assets held for sale	13,652	13,628
Assets of discontinued operations	257,140	250,689
Prepaid expenses and other current assets	31,100	39,037
Total Current Assets	848,071	869,858
Property, plant and equipment, net	191,701	192,359
Goodwill	875,564	784,242
Intangible assets, net	691,994	535,397
Investments	22,084	34,492
Deferred tax assets, net	68,901	11,559
Other assets	6,561	75,984
Total Assets	2,704,876	2,503,891
Current Liabilities:
Current debt obligations	119,708	84,034
Accounts payable	89,922	85,915
Accrued liabilities and other	81,748	78,942
Taxes payable	12,124	12,826
Accrued employee compensation and related benefits	70,980	66,224
Liabilities of discontinued operations	84,993	78,075
Total Current Liabilities	459,475	406,016
Long-term debt obligations	63,651	61,958
Deferred income taxes liability	149,700	123,342
Long-term employee compensation and related benefits	29,090	28,177
Other long-term liabilities	183,978	69,084
Total Liabilities	885,894	688,577
Commitments and contingencies (Note 11)
Stockholders’ Equity:
Ordinary Shares, £1.00 par value: unlimited shares authorized; 48,627,730 shares issued and 48,428,600 shares outstanding at March 31, 2018; 48,290,276 shares issued and 48,287,346 shares outstanding at December 31, 2017	75,224	74,750
Additional paid-in capital	1,738,044	1,735,048
Accumulated other comprehensive income	54,910	45,313
Retained deficit	(48,821)	(39,664)
Treasury stock at cost, 199,130 shares at March 31, 2018 and 2,930 shares at December 31, 2017	(375)	(133)
Total Stockholders’ Equity	1,818,982	1,815,314
Total Liabilities and Stockholders’ Equity	$ 2,704,876	$ 2,503,891

Condensed Consolidated Balance5

Condensed Consolidated Balance Sheets (Parenthetical) - £ / shares	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Ordinary shares, par value (in Pounds per Share)	£ 1	£ 1
Ordinary shares issued (shares)	48,627,730	48,290,276
Ordinary shares outstanding (shares)	48,428,600	48,287,346
Treasury stock (shares)	199,130	2,930

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating Activities:
Net income	$ 13,273	$ 11,271
Non-cash items included in net income:
Depreciation	8,334	8,778
Amortization	8,802	11,414
Stock-based compensation	6,680	3,844
Deferred income tax benefit	(922)	(5,518)
Losses from equity method investments	(1,573)	(3,085)
Gain on acquisition of ImThera Medical, Inc.	(11,484)	0
Impairment of property, plant and equipment	458	4,650
Amortization of income taxes payable on inter-company transfers of property	1,979	6,513
Other	(1,015)	(1,915)
Changes in operating assets and liabilities:
Accounts receivable, net	9,109	6,573
Inventories	(6,305)	(4,436)
Other current and non-current assets	(16,691)	(9,308)
Accounts payable and accrued current and non-current liabilities	5,697	4,953
Restructuring reserve	905	(6,697)
Net cash provided by operating activities	20,393	33,207
Investing Activities:
Acquisition of ImThera Medical, Inc., net of cash acquired	(77,629)	0
Purchases of property, plant and equipment and other	(5,846)	(7,566)
Proceeds from sale of cost-method investment	0	3,192
Loans to equity-method investees	0	(5,336)
Proceeds from asset sales	123	0
Other	0	(361)
Net cash used in investing activities	(83,352)	(10,071)
Financing Activities:
Change in short-term borrowing, net	15,503	253
Proceeds from short-term borrowing (maturities greater than 90 days)	20,000	0
Repayment of long-term debt obligations	254	0
Proceeds from exercise of stock options	1,607	876
Other	(4,809)	(1,819)
Net cash provided by (used in) financing activities	32,047	(690)
Effect of exchange rate changes on cash and cash equivalents	2,261	484
Net (decrease) increase in cash and cash equivalents	(28,651)	22,930
Cash and cash equivalents at beginning of period	93,615	39,789
Cash and cash equivalents at end of period	$ 64,964	$ 62,719

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Financial Statements	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Unaudited Condensed Consolidated Financial Statements	Note 1. Unaudited Condensed Consolidated Financial Statements Basis of Presentation The accompanying condensed consolidated financial statements of LivaNova as of, and for the three months ended, March 31, 2018 and March 31, 2017 , 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, 2017 has been derived from audited financial statements contained in our 2017 Form 10-K, 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 months ended March 31, 2018 and are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . The financial information presented herein should be read in conjunction with the audited consolidated financial statements and notes thereto accompanying our 2017 Form 10-K. Sale of our Cardiac Rhythm Management Business Franchise On March 8, 2018 we entered into a definitive Stock and Asset Purchase Agreement (“Purchase Agreement”) with MicroPort Cardiac Rhythm B.V. and MicroPort Scientific Corporation for the sale of our Cardiac Rhythm Management (“CRM”) business franchise (the “CRM Sale”). The CRM Sale closed on April 30, 2018 for the purchase price of $190.0 million , in addition to certain customary closing adjustments. In conjunction with the CRM Sale, we have agreed to provide certain transition services following the closing of the transaction. Prior to the closing of the CRM Sale, a regional antitrust authority in France initiated an investigation into the French cardiac rhythm management market, and a subsidiary of the CRM business operating in Clamart, France is one of the companies being investigated. The subsidiary under investigation believes it is in full compliance with all applicable laws and is, and intends to continue, cooperating with the relevant authorities. Nevertheless, the Company has agreed to provide a limited indemnity to the purchasers of the CRM business of generally up to €16.5 million relating to such investigation. We concluded that the sale of CRM represents a strategic shift in our business that will have a major effect on future operations and financial results. As a result, we classified the operating results of CRM as discontinued operations in our condensed consolidated statements of income. The assets and liabilities of CRM are presented as assets or liabilities of discontinued operations on the condensed consolidated balance sheets at March 31, 2018 and December 31, 2017 . Reclassification of Prior-Year Comparative Period Presentation To conform the presentation in the condensed consolidated statement of cash flows for the three months ended March 31, 2017 , to the presentation for the year ended December 31, 2017 in our 2017 Form 10-K, loans to cost and equity method investees of $5.3 million was reclassified to Investing Activities from Financing 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 2017 Form 10-K. On January 1, 2018, we adopted ASC Update (“ASU”) No 2014-09, Revenue from Contracts with Customers . Refer to “ Note 2. Revenue Recognition .” We elected the cumulative effect transition method; however, we recognized no cumulative effect to the opening balance of retained earnings because the impact on the timing of when revenue is recognized within our Cardiac Surgery segment, specifically related to heart-lung machines and preventative maintenance contracts on cardiopulmonary equipment, was insignificant. The timing of revenue recognition for products and related revenue streams within our Neuromodulation segment and discontinued operations did not change.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Note 2. Revenue Recognition We generate our revenue through contracts with customers that primarily consist of hospitals, healthcare institutions, distributors and other organizations. Revenue is measured based on consideration specified in a contract with a customer, and excludes amounts collected on behalf of third parties. We measure the consideration based upon the estimated amount to be received. The amount of consideration the Company ultimately receives varies depending upon the return terms, sales rebates, discounts, and other incentives that the Company may offer, which are accounted for as variable consideration when estimating the amount of revenue to recognize. The estimate of variable consideration requires significant judgment. We have historically experienced a low rate of product returns and the total dollar value of product returns historically have not been significant to our financial statements. The Company recognizes revenue when it satisfies a performance obligation by transferring the control of a product or service to a customer. Some of our contracts include the purchase of products and/or services. In such cases, we allocate the transaction price based upon the relative estimated stand-alone price of each product and/or service sold. We record state and local sales taxes net; that is, we exclude sales tax from revenue. Typically, our contracts do not have a significant financing component. The Company incurs incremental commission fees paid to its sales force associated with the sale of products. The Company applies the practical expedient within ASC 606-10-50-22 and has elected to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset the entity would otherwise recognize is one year or less. As a result, no commissions are capitalized as contract costs at March 31, 2018. The following is a description of the principal activities (separated by reportable segments) from which the Company generates its revenue. For more detailed information about our reportable segments including disaggregated revenue results by major product line and primary geographic markets, see “Note 15. Geographic and Segment Information”. Cardiac Surgery Products and Services The Cardiac Surgery (“CS”) segment generates its revenue from the sale of cardiopulmonary equipment and related accessories, heart valves and technical repair and maintenance services. The CS segment has two primary product lines: cardiopulmonary equipment and heart valves. Cardiopulmonary equipment and related accessories includes oxygenators, heart-lung machines, autotransfusion systems, perfusion tubing systems, cannulae and other related accessories. Heart valves include mechanical heart valves, tissue heart valves and related repair products. Technical services include installation, repair and maintenance of CS equipment under service contracts or upon customer request. Cardiopulmonary equipment and accessories may include performance obligations associated with assembly and installation of equipment. Accordingly, we allocate a portion of the sales prices to installation obligations and recognize that revenue when the service is provided. We recognize revenue for equipment and accessory product sales when the customer takes control of the equipment or product. Heart valve revenue is recognized when control passes to the customer. Technical service agreements generally provide for upfront payments in advance of rendering services or periodic billing over the contract term. Amounts billed in advance are deferred and recognized as revenue when the performance obligation is satisfied. Technical services are not a significant component of CS revenue and have been presented with the related equipment and accessories revenue. Neuromodulation Products Our Neuromodulation (“NM”) segment generates its revenue from the sale of neuromodulation therapy systems for the treatment of drug-resistant epilepsy, treatment resistant depression and obstructive sleep apnea. The NM product line includes the VNS Therapy System, which consists of an implantable pulse generator, a lead that connects the generator to the vagus nerve, and other accessories. We recognize revenue for product sales when control passes to the customer. Discontinued Operations: Cardiac Rhythm Management Products CRM generates its revenue from the sale of products for the diagnosis, treatment, and management of heart rhythm disorders and heart failure. CRM devices include high-voltage defibrillators and low-voltage pacemakers. We recognize revenue for product sales when control passes to the customer. Contract Balances Due to the nature of our products and services, revenue producing activities may result in contract assets and contract liabilities which are insignificant to our financial position and results of operations. These activities relate primarily to CS technical services contracts for short-term and multi-year service agreements. Contract assets are primarily comprised of unbilled revenues, which occur when a performance obligation has been completed, but not billed to the customer. Contract liabilities are made up of deferred revenue, which occurs when a customer pays for a service, before a performance obligation has been completed. Contract assets are included within prepaid expenses and other current assets in the condensed consolidated balance sheets and were insignificant at March 31, 2018 and December 31, 2017, respectively. As of March 31, 2018 and December 31, 2017, contract liabilities of $4.2 million and $3.8 million , respectively, are included within accrued liabilities and other and other long-term liabilities in the condensed consolidated balance sheet.

Business Combinations

Business Combinations	3 Months Ended
	Mar. 31, 2018
Business Combinations [Abstract]
Business Combinations	Note 3. Business Combinations ImThera Medical, Inc. Acquisition On January 16, 2018, we acquired the remaining 86% outstanding interests in ImThera Medical, Inc. (“ImThera”) for cash consideration of up to $225 million . Cash consideration of $78.3 million was paid at closing with the balance to be paid based on achievement of a certain regulatory milestone and a sales-based earnout. Headquartered in San Diego, California, ImThera manufactures an implantable device for the treatment of obstructive sleep apnea that stimulates multiple tongue muscles via the hypoglossal nerve, which opens the airway while a patient is sleeping. ImThera has a commercial presence in the European market, and we will be advancing ImThera’s enrollment in a FDA pivotal study. The following table presents the acquisition date fair value of the consideration transferred and the fair value of our interest in ImThera prior to the acquisition (in thousands): Cash $ 78,332 Contingent consideration 113,273 Fair value of our interest in ImThera prior to the acquisition (1) 25,580 Fair value of consideration transferred $ 217,185 (1) The fair value of our previously-held interest in ImThera was determined based on the fair value of total consideration transferred and application of a discount for lack of control. As a result, we recognized a gain of $11.5 million for the fair value in excess of our carrying value of $14.1 million . The gain is reflected as “Gain on acquisition of ImThera Medical, Inc.” on our condensed consolidated statement of income for the three months ended March 31, 2018 . The following table presents the preliminary purchase price allocation at fair value for the ImThera acquisition (in thousands): In-process research and development (1) $ 151,605 Developed technology (1) 5,661 Goodwill 87,063 Deferred income tax liabilities, net (2) (27,980 ) Other assets and liabilities, net 836 Net assets acquired $ 217,185 (1) The amounts above are included in “Intangible assets, net” on the condensed consolidated balance sheet at March 31, 2018 . Developed technology will be amortized over a remaining useful life of 20 years. (2) The amount includes a provisional estimate for deferred tax assets acquired and may be adjusted in future periods when we agree with positions taken in historical income tax returns. Goodwill arising from the ImThera acquisition, which is not deductible for tax purposes, primarily represents the synergies anticipated between ImThera and our existing neuromodulation business. The assets acquired, including goodwill, are recognized in our Neuromodulation segment. The results of the ImThera acquisition added $0.1 million in revenue and $1.0 million in operating losses during the three months ended March 31, 2018. Additionally, we recognized ImThera acquisition-related expenses of approximately $0.2 million for legal and valuation expenses during the three months ended March 31, 2018. These expenses are included within “Selling, general and administrative” expenses in the condensed consolidated statement of income. Pro forma financial information assuming the ImThera acquisition had occurred as of the beginning of the calendar year prior to the year of acquisition was not material for disclosure purposes. The ImThera business combination involved contingent consideration arrangements composed of potential cash payments upon the achievement of a certain regulatory milestone 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): ImThera Acquisition Fair value at January 16, 2018 Valuation Technique Unobservable Input Ranges Regulatory milestone-based payment $ 50,958 Discounted cash flow Discount rate 4.3% - 4.7% Probability of payment 85% - 95% Projected payment years 2020 - 2021 Sales-based earnout 62,315 Monte Carlo simulation Risk-adjusted discount rate 11.5% Credit risk discount rate 4.7% - 5.8% Revenue volatility 29.3% Probability of payment 85% - 95% Projected years of earnout 2020 - 2025 $ 113,273 Contingent Consideration Liability The following table provides a reconciliation of the beginning and ending balance of the contingent consideration liability (in thousands): Balance at December 31, 2017 $ 33,973 Purchase price - ImThera contingent consideration 113,273 Payments (196 ) Changes in fair value 673 Effect of changes in foreign currency exchange rates 82 Balance at March 31, 2018 (1) $ 147,805 (1) The contingent consideration liability represents contingent payments related to four completed acquisitions: Cellplex PTY Ltd., Inversiones Drilltex SAS, Caisson Interventional, LLC and ImThera. Refer to “ Note 8. Fair Value Measurements ” and “ Note 17. Supplemental Financial Information .”

Discontinued Operations

Discontinued Operations	3 Months Ended
	Mar. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Note 4. Discontinued Operations On March 8, 2018 we entered into a definitive Purchase Agreement with MicroPort Cardiac Rhythm B.V. and MicroPort Scientific Corporation for the sale of our Cardiac Rhythm Management business franchise. The CRM Sale closed on April 30, 2018 for the purchase price of $190.0 million , in addition to certain customary closing adjustments. In conjunction with the CRM Sale, we have agreed to provide certain transition services following the closing of the transaction. CRM develops, manufactures and markets products for the diagnosis, treatment and management of heart rhythm disorders and heart failures. CRM products include high-voltage defibrillators, cardiac resynchronization therapy devices and low-voltage pacemakers. CRM has approximately 900 employees, with operations in Clamart, France; Saluggia, Italy; and Santo Domingo, Dominican Republic. We concluded that the sale of CRM represents a strategic shift in our business that will have a major effect on future operations and financial results. As a result, we classified the operating results of CRM as discontinued operations in our condensed consolidated statements of income. The assets and liabilities of CRM are presented as assets or liabilities of discontinued operations on the condensed consolidated balance sheets at March 31, 2018 and December 31, 2017 . The following table represents assets and liabilities of CRM presented as assets and liabilities of discontinued operations on the condensed consolidated balance sheets: March 31, 2018 December 31, 2017 Accounts receivable, net $ 63,163 $ 64,684 Inventories 55,411 54,097 Prepaid taxes 16,435 14,725 Prepaid and other assets 4,682 3,498 Property, plant and equipment, net 12,542 12,104 Deferred tax assets, net 2,200 2,517 Investments 5,328 6,098 Intangible assets, net 97,379 92,966 Assets of discontinued operations $ 257,140 $ 250,689 Current debt obligations 1,305 — Accounts payable 28,400 26,501 Accrued liabilities and other 8,646 7,669 Taxes payable 3,124 5,084 Accrued employee compensation and benefits 34,755 30,753 Deferred income taxes liability 8,763 8,068 Liabilities of discontinued operations $ 84,993 $ 78,075 The following table represents the financial results of CRM presented as net loss from discontinued operations in the condensed consolidated statements of income: Three Months Ended March 31, 2018 2017 Revenues $ 60,107 $ 58,280 Cost of sales 22,138 21,485 Gross profit 37,969 36,795 Selling, general and administrative expenses 31,826 25,037 Research and development 11,281 9,259 Merger and integration expenses — 22 Restructuring expenses 651 120 Amortization of intangibles — 3,454 Revaluation of assets and liabilities held for sale (1,213 ) — Total operating expenses 42,545 37,892 Operating loss from discontinued operations (4,576 ) (1,097 ) Foreign exchange and other gains 79 230 Loss from discontinued operations, before tax (4,497 ) (867 ) Income tax benefit (1,159 ) — Losses from equity method investments (1,211 ) (1,089 ) Net loss from discontinued operations $ (4,549 ) $ (1,956 ) Cash flows attributable to our discontinued operations are included in our condensed consolidated statements of cash flows. For the three months ended March 31, 2018 and 2017, CRM’s capital expenditures were $0.9 million and $1.7 million and stock-based compensation expense was $2.0 million and $0.1 million , respectively. For the three months ended March 31, 2017 depreciation and amortization was $3.9 million .

Restructuring

Restructuring	3 Months Ended
	Mar. 31, 2018
Restructuring and Related Activities [Abstract]
Restructuring	Note 5. Restructuring Our 2015 and 2016 Reorganization Plans (the “Plans”) were initiated October 2015 and March 2016, respectively, in conjunction with the completion of the merger of Cyberonics and Sorin in October 2015. 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. 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 three months ended March 31, 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 $13.7 million as of March 31, 2018 , on the condensed consolidated balance sheet. The sale of the Suzhou facility was completed in April 2018. We estimate that these Plans will result in a net reduction of 324 personnel, of which 320 have occurred as of March 31, 2018 . The following table presents the Plans’ accruals, inventory obsolescence and other reserves, recorded in connection with the Reorganization Plans including the balances and activity related to the discontinued operations, (in thousands): Employee Severance and Other Termination Costs Other Total Balance at December 31, 2017 $ 3,889 $ 2,625 $ 6,514 Charges 2,079 453 2,532 Cash payments and adjustments (2,542 ) (460 ) (3,002 ) Balance at March 31, 2018 $ 3,426 $ 2,618 $ 6,044 The following table presents restructuring expense by reportable segment, with discontinued operations included (in thousands): Three Months Ended March 31, 2018 2017 Cardiac Surgery (1) $ 1,341 $ 6,002 Neuromodulation 6 672 Other 534 3,356 Restructuring expense from continuing operations 1,881 10,030 Discontinued operations 651 120 Total $ 2,532 $ 10,150 (1) Cardiac Surgery restructuring expense for the three months ended March 31, 2017 included building and equipment impairment and additional costs of $5.1 million related to the Suzhou, China facility exit plan.

Product Remediation Liability

Product Remediation Liability	3 Months Ended
	Mar. 31, 2018
Environmental Remediation Obligations [Abstract]
Product Remediation Liability	Note 6. Product Remediation Liability On December 29, 2015, we received an FDA Warning Letter (the “Warning Letter”) alleging certain violations of FDA regulations applicable to medical device manufacturing at our Munich, Germany and Arvada, Colorado facilities. On October 13, 2016, the Centers for Disease Control and Prevention (“CDC”) and FDA separately released safety notifications regarding the 3T Heater-Cooler devices in response to which the Company issued a Field Safety Notice Update for U.S. users of 3T Heater-Cooler devices to proactively and voluntarily contact facilities to facilitate implementation of the CDC and FDA recommendations. 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 the addition of a vacuum system to new and existing devices. These changes are intended to address regulatory actions and to reduce further the risk of possible dispersion of aerosols from 3T devices in the operating room. 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. The deployment of this solution for commercially distributed devices has been dependent upon final validation and verification of the design changes and approval or clearance by regulatory authorities worldwide, including FDA clearance in the U.S. 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. In April 2017, we obtained CE Mark in Europe for the design change of the 3T device and in May 2017 we completed our first vacuum and sealing upgrade on a customer-owned device. We are currently implementing the vacuum and sealing upgrade program in as many countries as possible throughout 2018 and beyond until all devices are upgraded. As part of the remediation plan, we also intend to perform a no-charge deep disinfection service (deep cleaning service) for 3T device users as we receive the required regulatory approvals. On April 12, 2018, the FDA agreed to allow us to move forward with the deep cleaning service in the U.S., adding to the growing list of countries around the world in which we offer this service. Finally, we are continuing to offer 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 made available progressively on a global basis, prioritizing and allocating devices to 3T device users based on pre-established criteria. Changes in the carrying amount of the product remediation liability are as follows (in thousands): Balance at December 31, 2017 $ 27,546 Remediation activity (2,719 ) Effect of changes in foreign currency exchange rates 754 Balance at March 31, 2018 (1) $ 25,581 (1) At March 31, 2018 , the product remediation liability balance is held within ‘Accrued liabilities and other’ and ‘Other long-term liabilities’ on the condensed consolidated balance sheet. Refer to “ Note 17. Supplemental Financial Information .” For further information, please refer to “ Note 11. Commitments and Contingencies .” At this stage, we have recognized no liability with respect to any lawsuits related to the 3T device and our related legal costs are expensed as incurred.

Investments

Investments	3 Months Ended
	Mar. 31, 2018
Investments [Abstract]
Investments	Note 7. 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): March 31, 2018 December 31, 2017 Respicardia Inc. (1) $ 17,907 $ 17,422 ImThera Medical, Inc. (2) — 12,900 Rainbow Medical Ltd. (3) 1,204 1,172 MD Start II (4) 1,232 1,199 $ 20,343 $ 32,693 (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. We have a loan outstanding to Respicardia with a carrying amount of $0.4 million , as of March 31, 2018 , which is included in ‘Prepaid expenses and other current assets’ on the condensed consolidated balance sheet. (2) On January 16, 2018, we acquired the remaining outstanding interests in ImThera. Refer to “ Note 3. Business Combinations ”. (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) MD Start II Rainbow Medical Ltd. is a private venture capital collaboration for the development of medical device technology in Europe. Equity Method Investments Our equity-method investments are included in ‘Investments’ in the condensed consolidated balance sheets and consist of our equity position in the following entities (in thousands, except for percent ownership): % Ownership (2) March 31, 2018 December 31, 2017 Highlife S.A.S. (1) 24.6% $ 1,723 $ 1,782 Other 18 17 Total $ 1,741 $ 1,799 (1) 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. (2) Ownership percentage as of March 31, 2018 .

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 8. Fair Value Measurements We review the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. There were no transfers between Level 1, Level 2, or Level 3 during the three months ended March 31, 2018 . 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 as of March 31, 2018 Fair Value Measurements Using Inputs Considered as: Level 1 Level 2 Level 3 Liabilities: Derivative liabilities - designated as cash flow hedges (foreign currency exchange rate "FX") $ 1,185 $ — $ 1,185 $ — Derivative liabilities - designated as cash flow hedges (interest rate swaps) 1,457 — 1,457 — Derivative liabilities - freestanding instruments (FX) 2,978 — 2,978 — Contingent consideration (1) 147,805 — — 147,805 $ 153,425 $ — $ 5,620 $ 147,805 Fair Value as of December 31, 2017 Fair Value Measurements Using Inputs Considered as: Level 1 Level 2 Level 3 Assets: Derivative assets - freestanding instruments (FX) $ 519 $ — $ 519 $ — $ 519 $ — $ 519 $ — Liabilities: Derivative liabilities - designated as cash flow hedges (FX) $ 460 $ — $ 460 $ — Derivative liabilities - designated as cash flow hedges (interest rate swaps) 1,585 — 1,585 — Contingent consideration (1) 33,973 — — 33,973 $ 36,018 $ — $ 2,045 $ 33,973 (1) The contingent consideration liability represents contingent payments related to four completed acquisitions: Cellplex PTY Ltd., Inversiones Drilltex SAS, Caisson Interventional, LLC and ImThera. Our recurring fair value measurements, using significant unobservable inputs (Level 3), relate solely to our contingent consideration liability. Refer to “ Note 3. Business Combinations ” for additional details regarding the changes in the fair value of our contingent consideration liability.

Financing Arrangements

Financing Arrangements	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Financing Arrangements	Note 9. Financing Arrangements The outstanding principal amount of long-term debt (in thousands, except interest rates): March 31, 2018 December 31, 2017 Maturity Interest Rate European Investment Bank (1) $ 71,853 $ 69,893 June 2021 0.09 % Mediocredito Italiano (2) 9,390 9,118 December 2023 0.50% - 3.10% Banca del Mezzogiorno (3) 5,689 5,499 December 2019 0.50% - 3.15% Bpifrance (ex-Oséo) — 1,450 October 2019 2.58 % Region Wallonne 869 845 December 2023 and June 2033 0.00% - 2.45% Mediocredito Italiano - mortgages and other 920 997 September 2021 and September 2026 0.80% - 1.30% Total long-term facilities 88,721 87,802 Less current portion of long-term debt 25,070 25,844 Total long-term debt $ 63,651 $ 61,958 (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) 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. (3) 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. Revolving Credit The outstanding principal amount of our short-term unsecured revolving credit agreements and other agreements with various banks was $94.6 million and $58.2 million , at March 31, 2018 and December 31, 2017 , respectively, with interest rates ranging from 0.1% to 9.3% and loan terms ranging from one day to 180 days . Bridge Facility Agreement In connection with the April 2018 acquisition of CardiacAssist, Inc. doing business as TandemLife (“TandemLife”), on February 14, 2018, LivaNova entered into a bridge facility agreement (the “Bridge Facility Agreement”) providing a term loan facility with the aggregate principal amount of $170 million . The Bridge Facility Agreement will terminate on August 14, 2018, but may be extended to February 13, 2019, subject to delivery of prior notice and satisfaction of other conditions. Borrowings under the Bridge Facility Agreement will bear interest at a variable annual rate based on LIBOR plus an applicable margin. In addition, a facility fee is assessed on the commitment amount. On March 23, 2018, we amended the Bridge Facility Agreement increasing the aggregate principal amount to $190 million . The Bridge Facility Agreement contains financial covenants that require LivaNova to maintain a maximum semi-annual leverage ratio and a minimum semi-annual interest coverage ratio. The Bridge Facility Agreement also contains customary representations and warranties, covenants, and events of default . On April 3, 2018, we borrowed $190 million under the Bridge Facility Agreement to facilitate the initial payment for our acquisition of TandemLife. Refer to “ Note 19. Subsequent Events ” for further information regarding the TandemLife acquisition. We intend to use the proceeds from the sale of the CRM business franchise to repay the borrowings under the Bridge Facility Agreement.

Derivatives and Risk Management

Derivatives and Risk Management	3 Months Ended
	Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives and Risk Management	Note 10. 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 condensed 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 Accumulated other comprehensive income (“AOCI”) until the hedged item is recognized in earnings upon settlement/termination. FX derivative gains and losses in AOCI are reclassified to the condensed consolidated statements of income as shown in the tables below and interest rate swap gains and losses in AOCI are reclassified to interest expense in the condensed consolidated statements of income. 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 FX derivative contracts, not designated as hedging instruments, outstanding at March 31, 2018 and December 31, 2017 was $263.1 million and $231.9 million , respectively. These derivative contracts are designed to offset the FX effects in earnings of various intercompany loans, our EIB loan, and trade receivables. We recorded net losses for these freestanding derivatives of $7.6 million and $1.8 million for the three months ended March 31, 2018 and March 31, 2017 , respectively. These gains and losses are included in ‘ Foreign exchange and other (losses) gains ’ in the condensed consolidated statements of income. Cash Flow Hedges Notional amounts of open derivative contracts designated as cash flow hedges (in thousands): Description of Derivative Contract March 31, 2018 December 31, 2017 FX derivative contracts to be exchanged for British Pounds $ 12,336 $ 16,847 FX derivative contracts to be exchanged for Japanese Yen 23,890 32,302 FX derivative contracts to be exchanged for Canadian Dollars 13,465 16,494 Interest rate swap contracts 46,667 55,965 $ 96,358 $ 121,608 After-tax net loss associated with derivatives designated as cash flow hedges recorded in the ending balance of AOCI and the amount expected to be reclassified to earnings in the next twelve months (in thousands): Description of Derivative Contract March 31, 2018 Amount Expected to be Reclassified to Earnings in Next 12 Months FX derivative contracts $ (1,667 ) $ (1,667 ) Interest rate swap contracts (207 ) (64 ) $ (1,874 ) $ (1,731 ) 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 AOCI (in thousands): Three Months Ended March 31, 2018 2017 Description of Derivative Contract Location in Earnings of Reclassified Gain or Loss Gains Recognized in OCI Gains Reclassified from AOCI to Earnings Losses Recognized in OCI (Losses) Gains Reclassified from AOCI to Earnings FX derivative contracts Foreign exchange and other gains (losses) $ 214 $ 846 $ (6,832 ) $ (4,678 ) FX derivative contracts SG&A — 625 — 810 Interest rate swap contracts Interest expense — — — (331 ) $ 214 $ 1,471 $ (6,832 ) $ (4,199 ) 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): March 31, 2018 Liability Derivatives Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value (1) Interest rate swap contracts Accrued liabilities $ 796 Interest rate swap contracts Other long-term liabilities 661 FX derivative contracts Accrued liabilities 1,185 Total derivatives designated as hedging instruments 2,642 Derivatives Not Designated as Hedging Instruments FX derivative contracts Accrued liabilities 2,978 Total derivatives not designated as hedging instruments 2,978 Total derivatives $ 5,620 December 31, 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 $ 834 Interest rate swap contracts Other assets — Other long-term liabilities 751 FX derivative contracts Prepaid expenses and other current assets — Accrued liabilities 460 Total derivatives designated as hedging instruments — 2,045 Derivatives Not Designated as Hedging Instruments FX derivative contracts Prepaid expenses and other current assets 519 Accrued liabilities — Total derivatives not designated as hedging instruments 519 — Total derivatives $ 519 $ 2,045 (1) For the classification of inputs used to evaluate the fair value of our derivatives, refer to “ Note 8. Fair Value Measurements .”

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 11. Commitments and Contingencies FDA Warning Letter On December 29, 2015, the FDA issued a 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 related to the manufacture of our 3T device that were 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. Finally, 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 CDC and the 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, in response to the Warning Letter and CDC’s HAN and FDA’s Safety Communication, 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 made available progressively 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. We are also currently implementing a vacuum and sealing upgrade program in as many countries as possible throughout 2018 and beyond until all devices are upgraded. Furthermore, we intend to perform a no-charge deep disinfection service (deep cleaning service) for 3T device users as we receive the required regulatory approvals. On April 12, 2018, the FDA agreed to allow us to move forward with the deep cleaning service in the U.S. adding to the growing list of countries around the world in which we offer this service. On 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 March 31, 2018 , the product remediation liability was $25.6 million . Refer to “ Note 6. Product Remediation Liability ” for additional information. Litigation The Company is currently involved in litigation involving our 3T device. The litigation includes a class action complaint in the U.S. District Court for the Middle District of Pennsylvania, federal multi-district litigation in the U.S. District Court for the Middle District of Pennsylvania and cases in various state courts and jurisdictions outside the U.S. As of May 1, 2018, we are involved in approximately 115 claims worldwide, with the majority of the claims in various federal or state courts throughout the United States. The complaints generally seek damages and other relief based on theories of strict liability, negligence, breach of express and implied warranties, failure to warn, design and manufacturing defect, fraudulent and negligent misrepresentation/concealment, unjust enrichment, and violations of various state consumer protection statutes. The class action consists 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 currently are asymptomatic for NTM infection. Members of the class seek declaratory relief that the 3T devices are defective and unsafe for intended uses, medical monitoring, damages, and attorneys’ fees. LivaNova has filed a petition for permission to appeal the class certification order with the U.S. Court of Appeals for the Third Circuit. We have not recognized an expense related to damages in connection with these matters 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 these matters. Civil Investigative Demand On May 31, 2017, the Company received a Civil Investigative Demand (“CID”) from the US Attorney’s Office for the Northern District of Georgia. The CID requested certain documents relating to sales and marketing of VNS devices and related products in the State of Georgia. We have not recognized an expense related to 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 Legacy Sorin Matters SNIA Litigation Our subsidiary, Sorin S.p.A. (“Sorin”) was created as a result of a spin-off (the “Sorin spin-off”) from SNIA S.p.A. (“SNIA”) in January, 2004. SNIA subsequently became insolvent and 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 approximately $4 billion for remediation costs relating to the environmental damage at chemical sites previously operated by SNIA’s other subsidiaries. In September 2011 and July 2014, the Bankruptcy Court of Udine and the Bankruptcy Court of Milan 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 or its subsidiaries in connection with their claims in the Italian insolvency proceedings. The Public Administrations appealed and in January 2016, the Court of Udine rejected the appeal. The Public Administrations have also appealed that decision. 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. On April 1, 2016, the Court of Milan dismissed all legal actions of SNIA and of the Public Administrations further requiring the Public Administrations to pay Sorin approximately $360,000 for legal fees. The Public Administrations appealed the 2016 Decision to the Court of Appeal of Milan. A final hearing occurred on March 21, 2018, and currently, the parties are preparing their final briefs. 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. Environmental Remediation Order On July 28, 2015, Sorin received an administrative order (the “Remediation Order”) from the Italian Ministry of the Environment directing prompt commencement of environmental remediation at the chemical sites previously operated by SNIA’s other subsidiaries. We challenged the Remediation Order before the Administrative Court of Lazio in Rome (the “TAR”), and the TAR annulled the Remediation Order. The Italian Ministry of the Environment appealed. 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 merger between Sorin and Cyberonics, Inc. (the “Merger”), before the Commercial Courts of Milan. 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. The Commercial Court of Milan delivered a decision in October 2016, fully rejecting the Public Administration’s request and awarding us approximately $480 thousand in damages for frivolous litigation and legal fees. The Public Administrations appealed to the Court of Appeal of Milan. Tax Litigation In a tax audit report received 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 $126.4 million ), 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 appeals submitted against the first-level decisions for 2005 and 2006 were rejected. We appealed these adverse decisions to the Italian Supreme Court, where the matters are 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 Milan 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 $77.2 million ). 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 reserve for an uncertain tax position of €17.0 million (approximately $20.9 million ). 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 liquidity.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Note 12. Stockholders’ Equity Comprehensive income The table below presents the change in each component of AOCI, net of tax, and the reclassifications out of AOCI into net earnings for the three months ended March 31, 2018 and March 31, 2017 (in thousands): Change in Unrealized Gain (Loss) on Derivatives Foreign Currency Translation Adjustments Gain (Loss) ( 1) Total As of December 31, 2017 $ (919 ) $ 46,232 $ 45,313 Other comprehensive income before reclassifications, before tax 214 10,552 10,766 Tax expense (51 ) — (51 ) Other comprehensive income before reclassifications, net of tax 163 10,552 10,715 Reclassification of gain from accumulated other comprehensive income, before tax (1,471 ) — (1,471 ) Reclassification of tax expense 353 — 353 Reclassification of gain from accumulated other comprehensive income, after tax (1,118 ) — (1,118 ) Net current-period other comprehensive (loss) income, net of tax (955 ) 10,552 9,597 As of March 31, 2018 $ (1,874 ) $ 56,784 $ 54,910 As of December 31, 2016 $ 3,619 $ (72,106 ) $ (68,487 ) Other comprehensive (loss) income before reclassifications, before tax (6,832 ) 15,430 8,598 Tax benefit 1,934 — 1,934 Other comprehensive (loss) income before reclassifications, net of tax (4,898 ) 15,430 10,532 Reclassification of loss from accumulated other comprehensive income, before tax 4,199 — 4,199 Reclassification of tax benefit (1,210 ) — (1,210 ) Reclassification of loss from accumulated other comprehensive income, after tax 2,989 — 2,989 Net current-period other comprehensive (loss) income, net of tax (1,909 ) 15,430 13,521 As of March 31, 2017 $ 1,710 $ (56,676 ) $ (54,966 ) (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	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Incentive Plans	Note 13. Stock-Based Incentive Plans Stock-based incentive plans compensation expense (in thousands): Three Months Ended March 31, 2018 2017 Service-based stock appreciation rights ("SARs") $ 1,348 $ 1,571 Service-based restricted stock units ("RSUs") 2,156 2,170 Market performance-based restricted stock units 345 — Operating performance-based restricted stock units 848 30 Total stock-based compensation expense $ 4,697 $ 3,771 During the three months ended March 31, 2018 , we executed stock-based compensatory award agreements with contract terms agreed upon by us and the respective individuals, as approved by the Compensation Committee of our Board of Directors. Awards with service conditions vest ratably over four years subject to forfeiture unless service conditions are met. Market performance-based awards cliff vest after three years subject to the rank of the Company’s total shareholder return for the three-year period ending December 31, 2020 relative to the total shareholder return of a peer group of companies. Operating performance-based awards cliff vest after three years subject to the achievement of certain thresholds of cumulative adjusted free cash flow for the three year period ending 2020. Compensation expense related to award agreements executed during 2018 for the three months ended March 31, 2018 was $0.5 million . Stock-based compensation agreements executed during the three months ended March 31, 2018 , representing potential shares and their weighted average grant date fair values by type follows (shares in thousands, fair value in dollars): Three Months Ended March 31, 2018 Shares Weighted Average Grant Date Fair Value Service-based SARs 561 $ 27.19 Service-based RSUs 178 $ 88.38 Market performance-based RSUs 41 $ 99.97 Operating performance-based RSUs 41 $ 88.38

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 14. Income Taxes During the three months ended March 31, 2018 and March 31, 2017, we recorded income tax expense from continuing operations of $3.9 million and $5.7 million , respectively, with a consolidated effective income tax rate of 17.6% and 27.1% , respectively. Our consolidated effective income tax rate for the three months ended March 31, 2017 was impacted by various discrete tax items, including the recognition of a $3.0 million deferred tax asset related to a reserve for an uncertain tax position recognized in a prior year. Compared with the three months ended March 31, 2017 , the lower effective tax rate for the three months ended March 31, 2018 was primarily attributable to the impact of the U.S. tax reform and certain law changes in the UK that occurred in the three months ended December 31, 2017.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Income (Loss) Per Share	Note 15. 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 March 31, 2018 2017 Numerator: Net income from continuing operations $ 17,822 $ 13,227 Net loss from discontinued operations (4,549 ) (1,956 ) Net income $ 13,273 $ 11,271 Denominator: Basic weighted average shares outstanding 48,324 48,067 Add effects of share-based compensation instruments (1) 863 111 Diluted weighted average shares outstanding 49,187 48,178 Basic income (loss) per share: Continuing operations $ 0.37 $ 0.28 Discontinued operations (0.10 ) (0.05 ) $ 0.27 $ 0.23 Diluted income (loss) per share: Continuing operations $ 0.36 $ 0.27 Discontinued operations (0.09 ) (0.04 ) $ 0.27 $ 0.23 (1) Excluded from the computation of diluted earnings per share were a total of 836 thousand and 607 thousand stock options, SARs and restricted shares units outstanding as of March 31, 2018 , and March 31, 2017 , respectively, because to include them would have been anti-dilutive.

Geographic and Segment Informat

Geographic and Segment Information	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Geographic and Segment Information	Note 16. Geographic and 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 two reportable segments: Cardiac Surgery and Neuromodulation. 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. On January 16, 2018, we acquired the remaining 86% outstanding interests in ImThera which is also included in our Neuromodulation segment. ImThera manufactures an implantable device for the treatment of obstructive sleep apnea that stimulates multiple tongue muscles via the hypoglossal nerve, which opens the airway while a patient is sleeping. “Other” includes corporate shared service expenses for finance, legal, human resources and information technology and corporate business development (“New Ventures”). New Ventures is focused on new growth platforms and identification of other opportunities for expansion. During the three months ended March 31, 2018 , we began to include the results of heart failure within the Neuromodulation segment for internal reporting purposes in order to manage and evaluate business activities for purposes of allocating resources and assessing performance. Previously, the results of heart failure were reported within Other. Segment results for the three months ended March 31, 2017 have been restated to conform to the current period presentation. Net sales of our reportable segments include 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. We operate under three geographic regions: United States, Europe, and Rest of world. The table below presents net sales by operating segment and geographic region (in thousands): Three Months Ended March 31, 2018 2017 Cardiopulmonary United States $ 38,445 $ 32,176 Europe 36,870 30,609 Rest of world 49,815 44,513 125,130 107,298 Heart Valves United States 6,536 6,069 Europe 12,116 10,347 Rest of world 12,390 15,490 31,042 31,906 Cardiac Surgery United States 44,981 38,245 Europe 48,986 40,956 Rest of world 62,205 60,003 156,172 139,204 Neuromodulation United States 77,992 73,659 Europe 10,291 7,929 Rest of world 5,561 5,571 93,844 87,159 Other 382 462 Totals United States 122,973 111,904 Europe (1) (2) 59,277 48,885 Rest of world 68,148 66,036 Total (3) $ 250,398 $ 226,825 (1) Net sales to external customers includes $8.2 million and $6.8 million in the United Kingdom, our country of domicile, for the three months ended March 31, 2018 and March 31, 2017 , respectively. (2) Europe sales include those countries in which we have a direct sales presence, whereas European countries in which we sell through distributors are included in Rest of world. (3) No single customer represented over 10% of our consolidated net sales and no country’s net sales exceeded 10% of our consolidated sales except for the U.S. Operating income by segment is as follows (in thousands): Three Months Ended March 31, Operating Income from Continuing Operations 2018 2017 Cardiac Surgery $ 10,258 $ 16,033 Neuromodulation 38,734 40,756 Other (22,820 ) (16,866 ) Total reportable segment income from continuing operations 26,172 39,923 Merger and integration expenses 2,960 2,186 Restructuring expenses 1,881 10,030 Amortization of intangibles 8,801 7,960 Operating income from continuing operations $ 12,530 $ 19,747 Assets by reportable segment (in thousands): Assets March 31, 2018 December 31, 2017 Cardiac Surgery $ 1,386,282 $ 1,386,032 Neuromodulation 715,611 532,894 Other 345,843 334,276 Discontinued operations 257,140 250,689 Total assets $ 2,704,876 $ 2,503,891 Capital expenditures by segment (in thousands): Three Months Ended March 31, Capital expenditures 2018 2017 Cardiac Surgery $ 3,131 $ 3,794 Neuromodulation 347 1,461 Other 1,443 1,203 Discontinued operations 925 1,658 Total $ 5,846 $ 8,116 The changes in the carrying amount of goodwill by reportable segment for the three months ended March 31, 2018 were as follows (in thousands): Neuromodulation Cardiac Surgery Other Total December 31, 2017 $ 315,943 $ 425,882 $ 42,417 $ 784,242 Goodwill as a result of acquisition (1) 87,063 — — 87,063 Foreign currency adjustments — 4,259 — 4,259 March 31, 2018 $ 403,006 $ 430,141 $ 42,417 $ 875,564 (1) Goodwill recognized as a result of the ImThera acquisition. Refer to “ Note 3. Business Combinations .” Property, plant and equipment, net by geography are as follows (in thousands): PP&E March 31, 2018 December 31, 2017 United States $ 60,684 $ 62,154 Europe 119,630 119,133 Rest of world 11,387 11,072 Total $ 191,701 $ 192,359

Supplemental Financial Informat

Supplemental Financial Information	3 Months Ended
	Mar. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Supplemental Financial Information	Note 17. Supplemental Financial Information Accounts receivable, net, consisted of the following (in thousands): March 31, 2018 December 31, 2017 Trade receivables from third parties $ 286,321 $ 288,127 Allowance for bad debt (6,493 ) (5,982 ) $ 279,828 $ 282,145 Our customers consist of hospitals, other healthcare institutions, distributors, organized purchase groups and government and private entities. Actual collection periods for trade receivables vary significantly as a function of the nature of the customer (e.g., government or private) and its geographic location. Inventories consisted of the following (in thousands): March 31, 2018 December 31, 2017 Raw materials $ 36,331 $ 39,810 Work-in-process 23,197 18,206 Finished goods 94,798 86,454 $ 154,326 $ 144,470 Inventories are reported net of the provision for obsolescence. The provision, which reflects normal obsolescence and includes components that are phased out or expired, totaled $11.9 million and $10.5 million at March 31, 2018 and December 31, 2017 , respectively. Prepaid expenses and other current assets consisted of the following (in thousands): March 31, 2018 December 31, 2017 Prepaid expenses $ 18,056 $ 13,904 Deposits and advances to suppliers 5,746 4,551 Earthquake grant receivable 4,177 4,064 Escrow deposit - Caisson 2,000 2,000 Current loans and notes receivable 1,121 1,395 Income taxes payable on inter-company transfers of property (1) — 12,604 Derivative contract assets — 519 $ 31,100 $ 39,037 (1) The income taxes payable on intercompany transfers of property was an asset created to defer the income tax effect of an intercompany intellectual property sale pursuant to ASC 810-10-45-8. Pursuant to ASU 2016-16 - Income Taxes - Intra-Entity Transfers of Assets Other than Inventory, we reclassified the balance at December 31, 2017 to retained earnings on January 1, 2018. Other assets consisted of the following (in thousands): March 31, 2018 December 31, 2017 Investments (1) $ 3,699 $ 2,943 Escrow deposit - Caisson 1,000 1,000 Guaranteed deposits 700 725 Loans and notes receivable — 1,276 Income taxes payable on inter-company transfers of property (2) — 68,127 Other 1,162 1,913 $ 6,561 $ 75,984 (1) Primarily cash surrender value of company owned life insurance policies. (2) The income taxes payable on intercompany transfers of property was an asset created to defer the income tax effect of an intercompany intellectual property sale pursuant to ASC 810-10-45-8. Pursuant to ASU 2016-16 - Income Taxes - Intra-Entity Transfers of Assets Other than Inventory, we reclassified the balance at December 31, 2017 to retained earnings on January 1, 2018. Accrued liabilities and other consisted of the following (in thousands): March 31, 2018 December 31, 2017 Product remediation (1) $ 14,549 $ 16,811 Deferred consideration - acquisitions 14,374 14,300 Provisions for agents, returns and other 8,638 8,134 Legal and administrative costs 6,801 6,082 Derivative contract liabilities (2) 4,959 1,294 Restructuring related liabilities 5,594 3,560 Royalty costs 2,167 3,615 Contract liabilities 2,879 2,900 Uncertain tax positions — 2,536 Escrow indemnity liabilities - Caisson 2,000 2,000 Product warranty obligations 1,142 1,476 Government grants — 1,174 Research and development costs 2,257 797 Other accrued expenses 16,388 14,263 $ 81,748 $ 78,942 (1) Refer to “ Note 6. Product Remediation Liability ”. (2) Refer to “ Note 10. Derivatives and Risk Management ”. Other long-term liabilities consisted of the following (in thousands): March 31, 2018 December 31, 2017 Contingent consideration (1) $ 147,805 $ 33,973 Product remediation liability (2) 11,032 10,735 Uncertain tax positions (3) 19,018 18,306 Escrow indemnity liabilities - Caisson 1,000 1,000 Contract liabilities 1,334 918 Financial derivatives (4) 661 751 Restructuring related liabilities 450 — Unfavorable operating leases 242 252 Other 2,436 3,149 $ 183,978 $ 69,084 (1) The contingent consideration liability represents contingent payments related to four completed acquisitions: Cellplex PTY Ltd., Inversiones Drilltex SAS, Caisson Interventional, LLC and ImThera. Refer to “ Note 3. Business Combinations .” (2) Refer to “ Note 6. Product Remediation Liability .” (3) Uncertain tax positions include accrued interest and penalties. (4) Refer to “ Note 10. Derivatives and Risk Management .”

New Accounting Pronouncements

New Accounting Pronouncements	3 Months Ended
	Mar. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements	Note 18. New Accounting Pronouncements 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. We made this election beginning January 1, 2018, resulting in no material impact to our consolidated financial statements. 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. 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 consolidated financial statements. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within that year. We are currently evaluating the effect this standard will have on our consolidated financial statements and related disclosures. In June 2016, the FASB issued ASC Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): The amendments in this update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments in this update are effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The modified-retrospective approach is generally applicable through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the effect this standard will have on our consolidated financial statements and related disclosures. 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. We adopted this update on January 1, 2018 resulting in no material impact to our consolidated statements of cash flows. 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. We adopted this update on January 1, 2018 and recognized the following balance sheet adjustments (in thousands): Balance at December 31, 2017 Adjustment due to ASU No. 2016-16 Balance at January 1, 2018 Assets Prepaid expenses and other current assets $ 39,037 $ (12,604 ) $ 26,433 Deferred tax assets, net 11,559 58,301 69,860 Other assets 75,984 (68,127 ) 7,857 Equity Retained deficit $ (39,664 ) $ (22,430 ) $ (62,094 ) In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other - Simplifying the Test for Goodwill Impairment (Topic 350). This update removes step 2 of the goodwill impairment test that compares the implied fair value of goodwill with its carrying amount. Instead, an impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will be recorded by the amount a reporting unit’s carrying amount exceeds its fair value. The update is effective for annual periods after December 15, 2019, including interim periods within those annual reporting periods with early adoption permitted. In March 2017, the FASB issued ASU No. 2017-01, Business Combinations - Clarifying the Definition of a Business (Topic 805). This update clarifies when a set of assets and activities is a business. We adopted this update on January 1, 2018. The ImThera acquisition was considered an acquisition of a business. Refer to “ Note 3. Business Combinations ” for a discussion of our acquisition of ImThera. 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. We adopted this update on January 1, 2018, resulting in an immaterial impact to our consolidated financial statement. The condensed consolidated statement of income for the three months ended March 31, 2017 has been restated for the adoption of this update.

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Event	Note 19. Subsequent Events TandemLife Acquisition On April 4, 2018, we acquired TandemLife for cash consideration of up to $250 million . Upfront costs were approximately $200 million with up to $50 million in contingent consideration based on achieving regulatory milestones. TandemLife is a privately-held Delaware corporation focused on advanced cardiopulmonary temporary support solutions. On April 3, 2018, we borrowed $190 million under the Bridge Facility Agreement to facilitate the initial payment for our acquisition of TandemLife. We intend to use the proceeds from the sale of the CRM business franchise to repay the borrowings under the Bridge Facility Agreement. The initial accounting and fair valuation for the TandemLife business combination is not complete as of the date of filing this Quarterly Report on Form 10-Q. Revolving Credit On April 10, 2018, we entered into an amendment and restatement agreement with Barclays Bank PLC amending the revolving facility agreement originally dated October 21, 2016 (the “Amendment”). The Amendment increases the borrowing capacity under the facility from $40.0 million to $70.0 million and extends the term of the facility one year, terminating October 20, 2019 . Borrowings under the facility bear interest at a rate of LIBOR plus 0.85% .

Unaudited Condensed Consolida26

Unaudited Condensed Consolidated Financial Statements (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	The accompanying condensed consolidated financial statements of LivaNova as of, and for the three months ended, March 31, 2018 and March 31, 2017 , 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, 2017 has been derived from audited financial statements contained in our 2017 Form 10-K, 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 months ended March 31, 2018 and are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . The financial information presented herein should be read in conjunction with the audited consolidated financial statements and notes thereto accompanying our 2017 Form 10-K.
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 condensed 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 Accumulated other comprehensive income (“AOCI”) until the hedged item is recognized in earnings upon settlement/termination. FX derivative gains and losses in AOCI are reclassified to the condensed consolidated statements of income as shown in the tables below and interest rate swap gains and losses in AOCI are reclassified to interest expense in the condensed consolidated statements of income. 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.
New Accounting Pronouncements	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. We made this election beginning January 1, 2018, resulting in no material impact to our consolidated financial statements. 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. 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 consolidated financial statements. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within that year. We are currently evaluating the effect this standard will have on our consolidated financial statements and related disclosures. In June 2016, the FASB issued ASC Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): The amendments in this update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments in this update are effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The modified-retrospective approach is generally applicable through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the effect this standard will have on our consolidated financial statements and related disclosures. 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. We adopted this update on January 1, 2018 resulting in no material impact to our consolidated statements of cash flows. 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. We adopted this update on January 1, 2018 and recognized the following balance sheet adjustments (in thousands): Balance at December 31, 2017 Adjustment due to ASU No. 2016-16 Balance at January 1, 2018 Assets Prepaid expenses and other current assets $ 39,037 $ (12,604 ) $ 26,433 Deferred tax assets, net 11,559 58,301 69,860 Other assets 75,984 (68,127 ) 7,857 Equity Retained deficit $ (39,664 ) $ (22,430 ) $ (62,094 ) In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other - Simplifying the Test for Goodwill Impairment (Topic 350). This update removes step 2 of the goodwill impairment test that compares the implied fair value of goodwill with its carrying amount. Instead, an impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will be recorded by the amount a reporting unit’s carrying amount exceeds its fair value. The update is effective for annual periods after December 15, 2019, including interim periods within those annual reporting periods with early adoption permitted. In March 2017, the FASB issued ASU No. 2017-01, Business Combinations - Clarifying the Definition of a Business (Topic 805). This update clarifies when a set of assets and activities is a business. We adopted this update on January 1, 2018. The ImThera acquisition was considered an acquisition of a business. Refer to “ Note 3. Business Combinations ” for a discussion of our acquisition of ImThera. 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. We adopted this update on January 1, 2018, resulting in an immaterial impact to our consolidated financial statement. The condensed consolidated statement of income for the three months ended March 31, 2017 has been restated for the adoption of this update.

Business Combinations (Tables)

Business Combinations (Tables)	3 Months Ended
	Mar. 31, 2018
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 ImThera prior to the acquisition (in thousands): Cash $ 78,332 Contingent consideration 113,273 Fair value of our interest in ImThera prior to the acquisition (1) 25,580 Fair value of consideration transferred $ 217,185 (1) The fair value of our previously-held interest in ImThera was determined based on the fair value of total consideration transferred and application of a discount for lack of control. As a result, we recognized a gain of $11.5 million for the fair value in excess of our carrying value of $14.1 million . The gain is reflected as “Gain on acquisition of ImThera Medical, Inc.” on our condensed consolidated statement of income for the three months ended March 31, 2018 .
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The ImThera business combination involved contingent consideration arrangements composed of potential cash payments upon the achievement of a certain regulatory milestone 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): ImThera Acquisition Fair value at January 16, 2018 Valuation Technique Unobservable Input Ranges Regulatory milestone-based payment $ 50,958 Discounted cash flow Discount rate 4.3% - 4.7% Probability of payment 85% - 95% Projected payment years 2020 - 2021 Sales-based earnout 62,315 Monte Carlo simulation Risk-adjusted discount rate 11.5% Credit risk discount rate 4.7% - 5.8% Revenue volatility 29.3% Probability of payment 85% - 95% Projected years of earnout 2020 - 2025 $ 113,273 The following table presents the preliminary purchase price allocation at fair value for the ImThera acquisition (in thousands): In-process research and development (1) $ 151,605 Developed technology (1) 5,661 Goodwill 87,063 Deferred income tax liabilities, net (2) (27,980 ) Other assets and liabilities, net 836 Net assets acquired $ 217,185 (1) The amounts above are included in “Intangible assets, net” on the condensed consolidated balance sheet at March 31, 2018 . Developed technology will be amortized over a remaining useful life of 20 years. (2) The amount includes a provisional estimate for deferred tax assets acquired and may be adjusted in future periods when we agree with positions taken in historical income tax returns.
Reconciliation of Beginning and Ending Balances of Contingent Consideration	The following table provides a reconciliation of the beginning and ending balance of the contingent consideration liability (in thousands): Balance at December 31, 2017 $ 33,973 Purchase price - ImThera contingent consideration 113,273 Payments (196 ) Changes in fair value 673 Effect of changes in foreign currency exchange rates 82 Balance at March 31, 2018 (1) $ 147,805 (1) The contingent consideration liability represents contingent payments related to four completed acquisitions: Cellplex PTY Ltd., Inversiones Drilltex SAS, Caisson Interventional, LLC and ImThera. Refer to “ Note 8. Fair Value Measurements ” and “ Note 17. Supplemental Financial Information .”

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	Mar. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]
Components of discontinued operations	The following table represents assets and liabilities of CRM presented as assets and liabilities of discontinued operations on the condensed consolidated balance sheets: March 31, 2018 December 31, 2017 Accounts receivable, net $ 63,163 $ 64,684 Inventories 55,411 54,097 Prepaid taxes 16,435 14,725 Prepaid and other assets 4,682 3,498 Property, plant and equipment, net 12,542 12,104 Deferred tax assets, net 2,200 2,517 Investments 5,328 6,098 Intangible assets, net 97,379 92,966 Assets of discontinued operations $ 257,140 $ 250,689 Current debt obligations 1,305 — Accounts payable 28,400 26,501 Accrued liabilities and other 8,646 7,669 Taxes payable 3,124 5,084 Accrued employee compensation and benefits 34,755 30,753 Deferred income taxes liability 8,763 8,068 Liabilities of discontinued operations $ 84,993 $ 78,075 The following table represents the financial results of CRM presented as net loss from discontinued operations in the condensed consolidated statements of income: Three Months Ended March 31, 2018 2017 Revenues $ 60,107 $ 58,280 Cost of sales 22,138 21,485 Gross profit 37,969 36,795 Selling, general and administrative expenses 31,826 25,037 Research and development 11,281 9,259 Merger and integration expenses — 22 Restructuring expenses 651 120 Amortization of intangibles — 3,454 Revaluation of assets and liabilities held for sale (1,213 ) — Total operating expenses 42,545 37,892 Operating loss from discontinued operations (4,576 ) (1,097 ) Foreign exchange and other gains 79 230 Loss from discontinued operations, before tax (4,497 ) (867 ) Income tax benefit (1,159 ) — Losses from equity method investments (1,211 ) (1,089 ) Net loss from discontinued operations $ (4,549 ) $ (1,956 )

Restructuring (Tables)

Restructuring (Tables)	3 Months Ended
	Mar. 31, 2018
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The following table presents the Plans’ accruals, inventory obsolescence and other reserves, recorded in connection with the Reorganization Plans including the balances and activity related to the discontinued operations, (in thousands): Employee Severance and Other Termination Costs Other Total Balance at December 31, 2017 $ 3,889 $ 2,625 $ 6,514 Charges 2,079 453 2,532 Cash payments and adjustments (2,542 ) (460 ) (3,002 ) Balance at March 31, 2018 $ 3,426 $ 2,618 $ 6,044
Schedule of Restructuring Expense by Reportable Segment	The following table presents restructuring expense by reportable segment, with discontinued operations included (in thousands): Three Months Ended March 31, 2018 2017 Cardiac Surgery (1) $ 1,341 $ 6,002 Neuromodulation 6 672 Other 534 3,356 Restructuring expense from continuing operations 1,881 10,030 Discontinued operations 651 120 Total $ 2,532 $ 10,150 (1) Cardiac Surgery restructuring expense for the three months ended March 31, 2017 included building and equipment impairment and additional costs of $5.1 million related to the Suzhou, China facility exit plan.

Product Remediation Liability (

Product Remediation Liability (Tables)	3 Months Ended
	Mar. 31, 2018
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, 2017 $ 27,546 Remediation activity (2,719 ) Effect of changes in foreign currency exchange rates 754 Balance at March 31, 2018 (1) $ 25,581 (1) At March 31, 2018 , the product remediation liability balance is held within ‘Accrued liabilities and other’ and ‘Other long-term liabilities’ on the condensed consolidated balance sheet. Refer to “ Note 17. Supplemental Financial Information .”

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2018
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): March 31, 2018 December 31, 2017 Respicardia Inc. (1) $ 17,907 $ 17,422 ImThera Medical, Inc. (2) — 12,900 Rainbow Medical Ltd. (3) 1,204 1,172 MD Start II (4) 1,232 1,199 $ 20,343 $ 32,693 (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. We have a loan outstanding to Respicardia with a carrying amount of $0.4 million , as of March 31, 2018 , which is included in ‘Prepaid expenses and other current assets’ on the condensed consolidated balance sheet. (2) On January 16, 2018, we acquired the remaining outstanding interests in ImThera. Refer to “ Note 3. Business Combinations ”. (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) MD Start II Rainbow Medical Ltd. is a private venture capital collaboration for the development of medical device technology in Europe.
Equity Method Investments	Our equity-method investments are included in ‘Investments’ in the condensed consolidated balance sheets and consist of our equity position in the following entities (in thousands, except for percent ownership): % Ownership (2) March 31, 2018 December 31, 2017 Highlife S.A.S. (1) 24.6% $ 1,723 $ 1,782 Other 18 17 Total $ 1,741 $ 1,799 (1) 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. (2) Ownership percentage as of March 31, 2018 .

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2018
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 as of March 31, 2018 Fair Value Measurements Using Inputs Considered as: Level 1 Level 2 Level 3 Liabilities: Derivative liabilities - designated as cash flow hedges (foreign currency exchange rate "FX") $ 1,185 $ — $ 1,185 $ — Derivative liabilities - designated as cash flow hedges (interest rate swaps) 1,457 — 1,457 — Derivative liabilities - freestanding instruments (FX) 2,978 — 2,978 — Contingent consideration (1) 147,805 — — 147,805 $ 153,425 $ — $ 5,620 $ 147,805 Fair Value as of December 31, 2017 Fair Value Measurements Using Inputs Considered as: Level 1 Level 2 Level 3 Assets: Derivative assets - freestanding instruments (FX) $ 519 $ — $ 519 $ — $ 519 $ — $ 519 $ — Liabilities: Derivative liabilities - designated as cash flow hedges (FX) $ 460 $ — $ 460 $ — Derivative liabilities - designated as cash flow hedges (interest rate swaps) 1,585 — 1,585 — Contingent consideration (1) 33,973 — — 33,973 $ 36,018 $ — $ 2,045 $ 33,973 (1) The contingent consideration liability represents contingent payments related to four completed acquisitions: Cellplex PTY Ltd., Inversiones Drilltex SAS, Caisson Interventional, LLC and ImThera.

Financing Arrangements (Tables)

Financing Arrangements (Tables)	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Schedule of Long-term Debt	The outstanding principal amount of long-term debt (in thousands, except interest rates): March 31, 2018 December 31, 2017 Maturity Interest Rate European Investment Bank (1) $ 71,853 $ 69,893 June 2021 0.09 % Mediocredito Italiano (2) 9,390 9,118 December 2023 0.50% - 3.10% Banca del Mezzogiorno (3) 5,689 5,499 December 2019 0.50% - 3.15% Bpifrance (ex-Oséo) — 1,450 October 2019 2.58 % Region Wallonne 869 845 December 2023 and June 2033 0.00% - 2.45% Mediocredito Italiano - mortgages and other 920 997 September 2021 and September 2026 0.80% - 1.30% Total long-term facilities 88,721 87,802 Less current portion of long-term debt 25,070 25,844 Total long-term debt $ 63,651 $ 61,958 (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) 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. (3) 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.

Derivatives and Risk Manageme34

Derivatives and Risk Management (Tables)	3 Months Ended
	Mar. 31, 2018
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 Derivative Contract March 31, 2018 December 31, 2017 FX derivative contracts to be exchanged for British Pounds $ 12,336 $ 16,847 FX derivative contracts to be exchanged for Japanese Yen 23,890 32,302 FX derivative contracts to be exchanged for Canadian Dollars 13,465 16,494 Interest rate swap contracts 46,667 55,965 $ 96,358 $ 121,608
Unrealized Gain (Loss) in AOCI	After-tax net loss associated with derivatives designated as cash flow hedges recorded in the ending balance of AOCI and the amount expected to be reclassified to earnings in the next twelve months (in thousands): Description of Derivative Contract March 31, 2018 Amount Expected to be Reclassified to Earnings in Next 12 Months FX derivative contracts $ (1,667 ) $ (1,667 ) Interest rate swap contracts (207 ) (64 ) $ (1,874 ) $ (1,731 )
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 AOCI (in thousands): Three Months Ended March 31, 2018 2017 Description of Derivative Contract Location in Earnings of Reclassified Gain or Loss Gains Recognized in OCI Gains Reclassified from AOCI to Earnings Losses Recognized in OCI (Losses) Gains Reclassified from AOCI to Earnings FX derivative contracts Foreign exchange and other gains (losses) $ 214 $ 846 $ (6,832 ) $ (4,678 ) FX derivative contracts SG&A — 625 — 810 Interest rate swap contracts Interest expense — — — (331 ) $ 214 $ 1,471 $ (6,832 ) $ (4,199 )
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): March 31, 2018 Liability Derivatives Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value (1) Interest rate swap contracts Accrued liabilities $ 796 Interest rate swap contracts Other long-term liabilities 661 FX derivative contracts Accrued liabilities 1,185 Total derivatives designated as hedging instruments 2,642 Derivatives Not Designated as Hedging Instruments FX derivative contracts Accrued liabilities 2,978 Total derivatives not designated as hedging instruments 2,978 Total derivatives $ 5,620 December 31, 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 $ 834 Interest rate swap contracts Other assets — Other long-term liabilities 751 FX derivative contracts Prepaid expenses and other current assets — Accrued liabilities 460 Total derivatives designated as hedging instruments — 2,045 Derivatives Not Designated as Hedging Instruments FX derivative contracts Prepaid expenses and other current assets 519 Accrued liabilities — Total derivatives not designated as hedging instruments 519 — Total derivatives $ 519 $ 2,045 (1) For the classification of inputs used to evaluate the fair value of our derivatives, refer to “ Note 8. Fair Value Measurements .”

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The table below presents the change in each component of AOCI, net of tax, and the reclassifications out of AOCI into net earnings for the three months ended March 31, 2018 and March 31, 2017 (in thousands): Change in Unrealized Gain (Loss) on Derivatives Foreign Currency Translation Adjustments Gain (Loss) ( 1) Total As of December 31, 2017 $ (919 ) $ 46,232 $ 45,313 Other comprehensive income before reclassifications, before tax 214 10,552 10,766 Tax expense (51 ) — (51 ) Other comprehensive income before reclassifications, net of tax 163 10,552 10,715 Reclassification of gain from accumulated other comprehensive income, before tax (1,471 ) — (1,471 ) Reclassification of tax expense 353 — 353 Reclassification of gain from accumulated other comprehensive income, after tax (1,118 ) — (1,118 ) Net current-period other comprehensive (loss) income, net of tax (955 ) 10,552 9,597 As of March 31, 2018 $ (1,874 ) $ 56,784 $ 54,910 As of December 31, 2016 $ 3,619 $ (72,106 ) $ (68,487 ) Other comprehensive (loss) income before reclassifications, before tax (6,832 ) 15,430 8,598 Tax benefit 1,934 — 1,934 Other comprehensive (loss) income before reclassifications, net of tax (4,898 ) 15,430 10,532 Reclassification of loss from accumulated other comprehensive income, before tax 4,199 — 4,199 Reclassification of tax benefit (1,210 ) — (1,210 ) Reclassification of loss from accumulated other comprehensive income, after tax 2,989 — 2,989 Net current-period other comprehensive (loss) income, net of tax (1,909 ) 15,430 13,521 As of March 31, 2017 $ 1,710 $ (56,676 ) $ (54,966 ) (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)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 , representing potential shares and their weighted average grant date fair values by type follows (shares in thousands, fair value in dollars): Three Months Ended March 31, 2018 Shares Weighted Average Grant Date Fair Value Service-based SARs 561 $ 27.19 Service-based RSUs 178 $ 88.38 Market performance-based RSUs 41 $ 99.97 Operating performance-based RSUs 41 $ 88.38 Stock-based incentive plans compensation expense (in thousands): Three Months Ended March 31, 2018 2017 Service-based stock appreciation rights ("SARs") $ 1,348 $ 1,571 Service-based restricted stock units ("RSUs") 2,156 2,170 Market performance-based restricted stock units 345 — Operating performance-based restricted stock units 848 30 Total stock-based compensation expense $ 4,697 $ 3,771

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 2017 Numerator: Net income from continuing operations $ 17,822 $ 13,227 Net loss from discontinued operations (4,549 ) (1,956 ) Net income $ 13,273 $ 11,271 Denominator: Basic weighted average shares outstanding 48,324 48,067 Add effects of share-based compensation instruments (1) 863 111 Diluted weighted average shares outstanding 49,187 48,178 Basic income (loss) per share: Continuing operations $ 0.37 $ 0.28 Discontinued operations (0.10 ) (0.05 ) $ 0.27 $ 0.23 Diluted income (loss) per share: Continuing operations $ 0.36 $ 0.27 Discontinued operations (0.09 ) (0.04 ) $ 0.27 $ 0.23 (1) Excluded from the computation of diluted earnings per share were a total of 836 thousand and 607 thousand stock options, SARs and restricted shares units outstanding as of March 31, 2018 , and March 31, 2017 , respectively, because to include them would have been anti-dilutive.

Geographic and Segment Inform38

Geographic and Segment Information (Tables)	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Revenue from External Customers by Geographic Areas	The table below presents net sales by operating segment and geographic region (in thousands): Three Months Ended March 31, 2018 2017 Cardiopulmonary United States $ 38,445 $ 32,176 Europe 36,870 30,609 Rest of world 49,815 44,513 125,130 107,298 Heart Valves United States 6,536 6,069 Europe 12,116 10,347 Rest of world 12,390 15,490 31,042 31,906 Cardiac Surgery United States 44,981 38,245 Europe 48,986 40,956 Rest of world 62,205 60,003 156,172 139,204 Neuromodulation United States 77,992 73,659 Europe 10,291 7,929 Rest of world 5,561 5,571 93,844 87,159 Other 382 462 Totals United States 122,973 111,904 Europe (1) (2) 59,277 48,885 Rest of world 68,148 66,036 Total (3) $ 250,398 $ 226,825 (1) Net sales to external customers includes $8.2 million and $6.8 million in the United Kingdom, our country of domicile, for the three months ended March 31, 2018 and March 31, 2017 , respectively. (2) Europe sales include those countries in which we have a direct sales presence, whereas European countries in which we sell through distributors are included in Rest of world. (3) No single customer represented over 10% of our consolidated net sales and no country’s net sales exceeded 10% of our consolidated sales except for the U.S.
Schedule of Segment Reporting Information, by Segment	Operating income by segment is as follows (in thousands): Three Months Ended March 31, Operating Income from Continuing Operations 2018 2017 Cardiac Surgery $ 10,258 $ 16,033 Neuromodulation 38,734 40,756 Other (22,820 ) (16,866 ) Total reportable segment income from continuing operations 26,172 39,923 Merger and integration expenses 2,960 2,186 Restructuring expenses 1,881 10,030 Amortization of intangibles 8,801 7,960 Operating income from continuing operations $ 12,530 $ 19,747 Assets by reportable segment (in thousands): Assets March 31, 2018 December 31, 2017 Cardiac Surgery $ 1,386,282 $ 1,386,032 Neuromodulation 715,611 532,894 Other 345,843 334,276 Discontinued operations 257,140 250,689 Total assets $ 2,704,876 $ 2,503,891 Capital expenditures by segment (in thousands): Three Months Ended March 31, Capital expenditures 2018 2017 Cardiac Surgery $ 3,131 $ 3,794 Neuromodulation 347 1,461 Other 1,443 1,203 Discontinued operations 925 1,658 Total $ 5,846 $ 8,116
Schedule of Goodwill	The changes in the carrying amount of goodwill by reportable segment for the three months ended March 31, 2018 were as follows (in thousands): Neuromodulation Cardiac Surgery Other Total December 31, 2017 $ 315,943 $ 425,882 $ 42,417 $ 784,242 Goodwill as a result of acquisition (1) 87,063 — — 87,063 Foreign currency adjustments — 4,259 — 4,259 March 31, 2018 $ 403,006 $ 430,141 $ 42,417 $ 875,564 (1) Goodwill recognized as a result of the ImThera acquisition. Refer to “ Note 3. Business Combinations .”
Long-lived Assets by Geographic Areas	Property, plant and equipment, net by geography are as follows (in thousands): PP&E March 31, 2018 December 31, 2017 United States $ 60,684 $ 62,154 Europe 119,630 119,133 Rest of world 11,387 11,072 Total $ 191,701 $ 192,359

Supplemental Financial Inform39

Supplemental Financial Information (Tables)	3 Months Ended
	Mar. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Accounts Receivables	Accounts receivable, net, consisted of the following (in thousands): March 31, 2018 December 31, 2017 Trade receivables from third parties $ 286,321 $ 288,127 Allowance for bad debt (6,493 ) (5,982 ) $ 279,828 $ 282,145
Inventories	Inventories consisted of the following (in thousands): March 31, 2018 December 31, 2017 Raw materials $ 36,331 $ 39,810 Work-in-process 23,197 18,206 Finished goods 94,798 86,454 $ 154,326 $ 144,470
Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following (in thousands): March 31, 2018 December 31, 2017 Prepaid expenses $ 18,056 $ 13,904 Deposits and advances to suppliers 5,746 4,551 Earthquake grant receivable 4,177 4,064 Escrow deposit - Caisson 2,000 2,000 Current loans and notes receivable 1,121 1,395 Income taxes payable on inter-company transfers of property (1) — 12,604 Derivative contract assets — 519 $ 31,100 $ 39,037 (1) The income taxes payable on intercompany transfers of property was an asset created to defer the income tax effect of an intercompany intellectual property sale pursuant to ASC 810-10-45-8. Pursuant to ASU 2016-16 - Income Taxes - Intra-Entity Transfers of Assets Other than Inventory, we reclassified the balance at December 31, 2017 to retained earnings on January 1, 2018.
Other Long-term Assets	Other assets consisted of the following (in thousands): March 31, 2018 December 31, 2017 Investments (1) $ 3,699 $ 2,943 Escrow deposit - Caisson 1,000 1,000 Guaranteed deposits 700 725 Loans and notes receivable — 1,276 Income taxes payable on inter-company transfers of property (2) — 68,127 Other 1,162 1,913 $ 6,561 $ 75,984 (1) Primarily cash surrender value of company owned life insurance policies. (2) The income taxes payable on intercompany transfers of property was an asset created to defer the income tax effect of an intercompany intellectual property sale pursuant to ASC 810-10-45-8. Pursuant to ASU 2016-16 - Income Taxes - Intra-Entity Transfers of Assets Other than Inventory, we reclassified the balance at December 31, 2017 to retained earnings on January 1, 2018.
Accrued Liabilities	Accrued liabilities and other consisted of the following (in thousands): March 31, 2018 December 31, 2017 Product remediation (1) $ 14,549 $ 16,811 Deferred consideration - acquisitions 14,374 14,300 Provisions for agents, returns and other 8,638 8,134 Legal and administrative costs 6,801 6,082 Derivative contract liabilities (2) 4,959 1,294 Restructuring related liabilities 5,594 3,560 Royalty costs 2,167 3,615 Contract liabilities 2,879 2,900 Uncertain tax positions — 2,536 Escrow indemnity liabilities - Caisson 2,000 2,000 Product warranty obligations 1,142 1,476 Government grants — 1,174 Research and development costs 2,257 797 Other accrued expenses 16,388 14,263 $ 81,748 $ 78,942 (1) Refer to “ Note 6. Product Remediation Liability ”. (2) Refer to “ Note 10. Derivatives and Risk Management ”.
Other Long-term Liabilities	Other long-term liabilities consisted of the following (in thousands): March 31, 2018 December 31, 2017 Contingent consideration (1) $ 147,805 $ 33,973 Product remediation liability (2) 11,032 10,735 Uncertain tax positions (3) 19,018 18,306 Escrow indemnity liabilities - Caisson 1,000 1,000 Contract liabilities 1,334 918 Financial derivatives (4) 661 751 Restructuring related liabilities 450 — Unfavorable operating leases 242 252 Other 2,436 3,149 $ 183,978 $ 69,084 (1) The contingent consideration liability represents contingent payments related to four completed acquisitions: Cellplex PTY Ltd., Inversiones Drilltex SAS, Caisson Interventional, LLC and ImThera. Refer to “ Note 3. Business Combinations .” (2) Refer to “ Note 6. Product Remediation Liability .” (3) Uncertain tax positions include accrued interest and penalties. (4) Refer to “ Note 10. Derivatives and Risk Management .”

New Accounting Pronouncements (

New Accounting Pronouncements (Tables)	3 Months Ended
	Mar. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	We adopted this update on January 1, 2018 and recognized the following balance sheet adjustments (in thousands): Balance at December 31, 2017 Adjustment due to ASU No. 2016-16 Balance at January 1, 2018 Assets Prepaid expenses and other current assets $ 39,037 $ (12,604 ) $ 26,433 Deferred tax assets, net 11,559 58,301 69,860 Other assets 75,984 (68,127 ) 7,857 Equity Retained deficit $ (39,664 ) $ (22,430 ) $ (62,094 )

Unaudited Condensed Consolida41

Unaudited Condensed Consolidated Financial Statements (Narrative) (Details) $ in Thousands, € in Millions	2 Months Ended	3 Months Ended
	Apr. 29, 2018EUR (€)	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Apr. 30, 2018USD ($)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Loans to cost and equity method investees		$ 0	$ 5,336
Subsequent Event | CRM Business Franchise
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Consideration				$ 190,000
Subsequent Event | Maximum | CRM Business Franchise
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Limited indemnity | €	€ 16.5

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Accrued liabilities and other
Disaggregation of Revenue [Line Items]
Contract liability	$ 4.2	$ 3.8

Business Combinations - Narrati

Business Combinations - Narrative (Details) - ImThera Medical, Inc. - USD ($) $ in Thousands	Jan. 16, 2018	Mar. 31, 2018
Business Acquisition [Line Items]
Percentage of voting interests acquired	86.00%
Fair value of consideration transferred	$ 217,185
Cash	78,332
Revenue		$ 100
Operating loss		1,000
SG&A
Business Acquisition [Line Items]
Acquisition-related expense		$ 200
Maximum
Business Acquisition [Line Items]
Fair value of consideration transferred	$ 225,000

Business Combinations - Purchas

Business Combinations - Purchase Price Composition (Details) - USD ($) $ in Thousands	Jan. 16, 2018	Mar. 31, 2018	Mar. 31, 2017
Business Acquisition [Line Items]
Gain from acquisition		$ 11,484	$ 0
ImThera Medical, Inc.
Business Acquisition [Line Items]
Cash	$ 78,332
Contingent consideration	113,273
Fair value of our interest prior to the acquisition	25,580
Fair value of consideration transferred	$ 217,185
Gain from acquisition		11,500
Fair value in excess of carrying value adjustment		$ 14,100

Business Combinations - Prelimi

Business Combinations - Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Jan. 16, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill	$ 875,564		$ 784,242
ImThera Medical, Inc.
Business Acquisition [Line Items]
Goodwill		$ 87,063
Deferred income tax liabilities, net		(27,980)
Other assets and liabilities, net		836
Net assets acquired		217,185
In Process Research and Development | ImThera Medical, Inc.
Business Acquisition [Line Items]
Intangible asset		151,605
Useful life	20 years
Developed Technology | ImThera Medical, Inc.
Business Acquisition [Line Items]
Intangible asset		$ 5,661

Business Combinations - Conting

Business Combinations - Contingent Consideration (Details) - ImThera Medical, Inc. $ in Thousands	Jan. 16, 2018USD ($)
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration	$ 113,273
Discounted Cash Flow
Business Acquisition, Contingent Consideration [Line Items]
Regulatory milestone-based payment	$ 50,958
Discounted Cash Flow | Minimum
Business Acquisition, Contingent Consideration [Line Items]
Discount rate	4.30%
Probability of payment	85.00%
Discounted Cash Flow | Maximum
Business Acquisition, Contingent Consideration [Line Items]
Discount rate	4.70%
Probability of payment	95.00%
Monte Carlo Simulation
Business Acquisition, Contingent Consideration [Line Items]
Sales-based earnout	$ 62,315
Discount rate	11.50%
Revenue volatility	29.30%
Monte Carlo Simulation | Minimum
Business Acquisition, Contingent Consideration [Line Items]
Credit risk rate	4.70%
Probability of payment	85.00%
Monte Carlo Simulation | Maximum
Business Acquisition, Contingent Consideration [Line Items]
Credit risk rate	5.80%
Probability of payment	95.00%

Business Combinations - Conti47

Business Combinations - Contingent Consideration Reconciliation (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018USD ($)company	Dec. 31, 2017USD ($)company
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Number of businesses acquired | company	4	4
Level 3 | Caisson Interventional LLC
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair value, liability beginning balance	$ 33,973
Purchase price - ImThera contingent consideration	113,273
Payments	(196)
Changes in fair value	673
Effect of changes in foreign currency exchange rates	82
Fair value, liability ending balance	$ 147,805	$ 33,973

Discontinued Operations (Detail

Discontinued Operations (Details) - CRM Business Franchise $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)	Apr. 30, 2018USD ($)	Dec. 31, 2017employee
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Entity number of employees | employee				900
Capital expenditure	$ 0.9	$ 1.7
Stock-based compensation	$ 2	0.1
Depreciation and amortization		$ 3.9
Subsequent Event
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration			$ 190

Discontinued Operations (Assets

Discontinued Operations (Assets And Liabilities Classified As Held For Sale) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets of discontinued operations	$ 257,140	$ 250,689
Liabilities of discontinued operations	84,993	78,075
CRM Business Franchise | Discontinued Operations, Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accounts receivable, net	63,163	64,684
Inventories	55,411	54,097
Prepaid taxes	16,435	14,725
Prepaid and other assets	4,682	3,498
Property, plant and equipment, net	12,542	12,104
Deferred tax assets, net	2,200	2,517
Investments	5,328	6,098
Intangible assets, net	97,379	92,966
Assets of discontinued operations	257,140	250,689
Current debt obligations	1,305	0
Accounts payable	28,400	26,501
Accrued liabilities and other	8,646	7,669
Taxes payable	3,124	5,084
Accrued employee compensation and benefits	34,755	30,753
Deferred income taxes liability	8,763	8,068
Liabilities of discontinued operations	$ 84,993	$ 78,075

Discontinued Operations (Operat

Discontinued Operations (Operating Gains And Losses) (Details) - CRM Business Franchise - Discontinued Operations, Held-for-sale - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues	$ 60,107	$ 58,280
Cost of sales	22,138	21,485
Gross profit	37,969	36,795
Selling, general and administrative expenses	31,826	25,037
Research and development	11,281	9,259
Merger and integration expenses	0	22
Restructuring expenses	651	120
Amortization of intangibles	0	3,454
Revaluation of assets and liabilities held for sale	(1,213)	0
Total operating expenses	42,545	37,892
Operating loss from discontinued operations	(4,576)	(1,097)
Foreign exchange and other gains	79	230
Loss from discontinued operations, before tax	(4,497)	(867)
Income tax benefit	(1,159)	0
Losses from equity method investments	(1,211)	(1,089)
Net loss from discontinued operations	$ (4,549)	$ (1,956)

Restructuring (Narrative) (Deta

Restructuring (Narrative) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)employee	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
Restructuring Cost and Reserve [Line Items]
Assets held for sale	$ 13,652		$ 13,628
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)
2015 and 2016 Reorganization Plans
Restructuring Cost and Reserve [Line Items]
Expected number of positions eliminated | employee	324
Number of positions eliminated | employee	320

Restructuring (Accrual Detail)

Restructuring (Accrual Detail) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restructuring Reserve [Roll Forward]
Beginning liability balance	$ 0
Charges	1,881	$ 10,030
Ending liability balance	450
2015 and 2016 Reorganization Plans
Restructuring Reserve [Roll Forward]
Beginning liability balance	6,514
Charges	2,532
Cash payments and adjustments	(3,002)
Ending liability balance	6,044
2015 and 2016 Reorganization Plans | Employee Severance and Other Termination Costs
Restructuring Reserve [Roll Forward]
Beginning liability balance	3,889
Charges	2,079
Cash payments and adjustments	(2,542)
Ending liability balance	3,426
2015 and 2016 Reorganization Plans | Other
Restructuring Reserve [Roll Forward]
Beginning liability balance	2,625
Charges	453
Cash payments and adjustments	(460)
Ending liability balance	$ 2,618

Restructuring (Restructuring Ex

Restructuring (Restructuring Expense by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Restructuring Cost and Reserve [Line Items]
Charges	$ 1,881	$ 10,030
Discontinued operations	651	120
Restructuring charges, net	2,532	10,150
Operating Segments | Cardiac Surgery
Restructuring Cost and Reserve [Line Items]
Charges	1,341	6,002
Operating Segments | Neuromodulation
Restructuring Cost and Reserve [Line Items]
Charges	6	672
Other
Restructuring Cost and Reserve [Line Items]
Charges	534	$ 3,356
Building and Equipment | Suzhou Industrial Park Facility
Restructuring Cost and Reserve [Line Items]
Restructuring charges, net	$ (5,100)

Product Remediation Liability54

Product Remediation Liability (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Accrual for Environmental Loss Contingencies [Roll Forward]
Product remediation accrual, beginning balance	$ 27,546
Remediation activity	(2,719)
Effect of changes in foreign currency exchange rates	754
Product remediation accrual, ending balance	$ 25,600

Investments (Cost-Method Invest

Investments (Cost-Method Investments) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Schedule of Cost-method Investments [Line Items]
Cost method investments	$ 20,343	$ 32,693
Cost Method Investee | Respicardia | Other assets
Schedule of Cost-method Investments [Line Items]
Outstanding loans	400
Respicardia
Schedule of Cost-method Investments [Line Items]
Cost method investments	17,907	17,422
ImThera Medical, Inc.
Schedule of Cost-method Investments [Line Items]
Cost method investments	0	12,900
Rainbow Medical Ltd.
Schedule of Cost-method Investments [Line Items]
Cost method investments	1,204	1,172
MD Start II
Schedule of Cost-method Investments [Line Items]
Cost method investments	$ 1,232	$ 1,199

Investments (Equity Method Inve

Investments (Equity Method Investments) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 1,741	$ 1,799
Highlife S.A.S.
Schedule of Equity Method Investments [Line Items]
Ownership percentage (percent)	24.60%
Equity method investments	$ 1,723	1,782
Other
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 18	$ 17

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	Mar. 31, 2018	Dec. 31, 2017
Assets:
Total assets		$ 519
Liabilities:
Contingent consideration	$ 147,805	33,973
Total Liabilities	153,425	36,018
Derivatives Designated as Hedging Instruments | Foreign Exchange Contract
Liabilities:
Derivative liabilities	1,185	460
Derivatives Designated as Hedging Instruments | Interest Rate Contract
Liabilities:
Derivative liabilities	1,457	1,585
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contract
Assets:
Derivative Asset		519
Liabilities:
Derivative liabilities	2,978
Level 1
Assets:
Total assets		0
Liabilities:
Contingent consideration	0	0
Total Liabilities	0	0
Level 1 | Derivatives Designated as Hedging Instruments | Foreign Exchange Contract
Liabilities:
Derivative liabilities	0	0
Level 1 | Derivatives Designated as Hedging Instruments | Interest Rate Contract
Liabilities:
Derivative liabilities	0	0
Level 1 | Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contract
Assets:
Derivative Asset		0
Liabilities:
Derivative liabilities	0
Level 2
Assets:
Total assets		519
Liabilities:
Contingent consideration	0	0
Total Liabilities	5,620	2,045
Level 2 | Derivatives Designated as Hedging Instruments | Foreign Exchange Contract
Liabilities:
Derivative liabilities	1,185	460
Level 2 | Derivatives Designated as Hedging Instruments | Interest Rate Contract
Liabilities:
Derivative liabilities	1,457	1,585
Level 2 | Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contract
Assets:
Derivative Asset		519
Liabilities:
Derivative liabilities	2,978
Level 3
Assets:
Total assets		0
Liabilities:
Contingent consideration	147,805	33,973
Total Liabilities	147,805	33,973
Level 3 | Derivatives Designated as Hedging Instruments | Foreign Exchange Contract
Liabilities:
Derivative liabilities	0	0
Level 3 | Derivatives Designated as Hedging Instruments | Interest Rate Contract
Liabilities:
Derivative liabilities	0	0
Level 3 | Derivatives Not Designated as Hedging Instruments | 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) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Total long-term facilities	$ 88,721	$ 87,802
Less current portion of long-term debt	25,070	25,844
Total long-term debt	63,651	61,958
Loans Payable | European Investment Bank
Debt Instrument [Line Items]
Total long-term facilities	$ 71,853	69,893
Interest rate (percent)	0.09%
Loans Payable | Mediocredito Italiano
Debt Instrument [Line Items]
Total long-term facilities	$ 9,390	9,118
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)	3.10%
Loans Payable | Banca del Mezzogiorno
Debt Instrument [Line Items]
Total long-term facilities	$ 5,689	5,499
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 | Bpifrance
Debt Instrument [Line Items]
Total long-term facilities	$ 0	1,450
Interest rate (percent)	2.58%
Loans Payable | Novalia SA
Debt Instrument [Line Items]
Total long-term facilities	$ 869	845
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)	2.45%
Mortgages | Mediocredito Italiano
Debt Instrument [Line Items]
Total long-term facilities	$ 920	$ 997
Mortgages | Mediocredito Italiano | Minimum
Debt Instrument [Line Items]
Interest rate (percent)	0.80%
Mortgages | Mediocredito Italiano | Maximum
Debt Instrument [Line Items]
Interest rate (percent)	1.30%

Financing Arrangements (Details

Financing Arrangements (Details) - USD ($) $ in Millions	Feb. 14, 2018	Mar. 31, 2018	Dec. 31, 2017	Apr. 03, 2018	Mar. 23, 2018
Revolving Credit Facility
Debt Instrument [Line Items]
Short-term debt		$ 94.6	$ 58.2
Minimum | Revolving Credit Facility
Debt Instrument [Line Items]
Interest rate (percent)		0.10%	0.10%
Debt instrument, term		1 day	1 day
Maximum | Revolving Credit Facility
Debt Instrument [Line Items]
Interest rate (percent)		9.30%	9.30%
Debt instrument, term		180 days	180 days
Bridge Loan
Debt Instrument [Line Items]
Finance contract, borrowing base	$ 170				$ 190
Line of credit facility, covenant terms	The Bridge Facility Agreement contains financial covenants that require LivaNova to maintain a maximum semi-annual leverage ratio and a minimum semi-annual interest coverage ratio. The Bridge Facility Agreement also contains customary representations and warranties, covenants, and events of default
Subsequent Event | Bridge Loan
Debt Instrument [Line Items]
Finance contract, borrowing base				$ 190

Derivatives and Risk Manageme60

Derivatives and Risk Management (Narrative) (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Foreign Exchange Forward
Derivative [Line Items]
Notional amount	$ 263.1		$ 231.9
Foreign Exchange Contract | Foreign exchange and other gains (losses)
Derivative [Line Items]
Gain (loss) on derivative	$ (7.6)	$ (1.8)

Derivatives and Risk Manageme61

Derivatives and Risk Management (Derivative Notional Amounts) (Details) - Derivatives Designated as Hedging Instruments - Cash Flow Hedging - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Derivative [Line Items]
Notional amount	$ 96,358	$ 121,608
After-tax, net unrealized losses on derivatives arising during period	(1,874)
Net amount expected to be reclassified to earnings in the next 12 months	(1,731)
Foreign Exchange Contract
Derivative [Line Items]
After-tax, net unrealized losses on derivatives arising during period	(1,667)
Net amount expected to be reclassified to earnings in the next 12 months	(1,667)
Foreign Exchange Contract | United Kingdom, Pounds
Derivative [Line Items]
Notional amount	12,336	16,847
Foreign Exchange Contract | Japan, Yen
Derivative [Line Items]
Notional amount	23,890	32,302
Foreign Exchange Contract | Canada, Dollars
Derivative [Line Items]
Notional amount	13,465	16,494
Interest Rate Swap Contracts
Derivative [Line Items]
Notional amount	46,667	$ 55,965
After-tax, net unrealized losses on derivatives arising during period	(207)
Net amount expected to be reclassified to earnings in the next 12 months	$ (64)

Derivatives and Risk Manageme62

Derivatives and Risk Management (Amount of Gain (Loss) Recognized in OCI and Income Statement) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivative Instruments, Gain (Loss) [Line Items]
Losses Recognized in OCI	$ 0	$ 0
Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Losses Recognized in OCI	214	(6,832)
(Losses) Gains Reclassified from AOCI to Earnings	1,471	(4,199)
Cash Flow Hedging | Foreign exchange and other gains (losses)
Derivative Instruments, Gain (Loss) [Line Items]
(Losses) Gains Reclassified from AOCI to Earnings	846	(4,678)
Cash Flow Hedging | SG&A
Derivative Instruments, Gain (Loss) [Line Items]
(Losses) Gains Reclassified from AOCI to Earnings	625	810
Cash Flow Hedging | Interest expense
Derivative Instruments, Gain (Loss) [Line Items]
(Losses) Gains Reclassified from AOCI to Earnings	0	(331)
Cash Flow Hedging | Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Losses Recognized in OCI	214	(6,832)
Cash Flow Hedging | Interest Rate Swap Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Losses Recognized in OCI	$ 0	$ 0

Derivatives and Risk Manageme63

Derivatives and Risk Management (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Total asset derivatives	$ 0	$ 519
Total liability derivatives	5,620	2,045
Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Total asset derivatives		0
Total liability derivatives	2,642	2,045
Derivatives Designated as Hedging Instruments | Prepaid expenses and other current assets | Interest Rate Contract
Derivatives, Fair Value [Line Items]
Total asset derivatives		0
Derivatives Designated as Hedging Instruments | Prepaid expenses and other current assets | Foreign Exchange Contract
Derivatives, Fair Value [Line Items]
Total asset derivatives		0
Derivatives Designated as Hedging Instruments | Accrued liabilities | Interest Rate Contract
Derivatives, Fair Value [Line Items]
Total liability derivatives	796	834
Derivatives Designated as Hedging Instruments | Accrued liabilities | Foreign Exchange Contract
Derivatives, Fair Value [Line Items]
Total liability derivatives	1,185	460
Derivatives Designated as Hedging Instruments | Other assets | Interest Rate Contract
Derivatives, Fair Value [Line Items]
Total asset derivatives		0
Derivatives Designated as Hedging Instruments | Other long-term liabilities | Interest Rate Contract
Derivatives, Fair Value [Line Items]
Total liability derivatives	661	751
Derivatives Not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Total asset derivatives		519
Total liability derivatives	2,978	0
Derivatives Not Designated as Hedging Instruments | Prepaid expenses and other current assets | Foreign Exchange Contract
Derivatives, Fair Value [Line Items]
Total asset derivatives		519
Derivatives Not Designated as Hedging Instruments | Accrued liabilities | Foreign Exchange Contract
Derivatives, Fair Value [Line Items]
Total liability derivatives	$ 2,978	$ 0

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Details) $ in Thousands, € in Millions	Oct. 06, 2016USD ($)	Apr. 01, 2016USD ($)	Mar. 31, 2018USD ($)installmentnotice	Mar. 31, 2018EUR (€)	Dec. 31, 2004USD ($)	May 01, 2018claim	Mar. 31, 2018EUR (€)installmentnotice	Dec. 31, 2017USD ($)	Aug. 27, 2015non-conformity	Oct. 30, 2009USD ($)	Oct. 30, 2009EUR (€)
Other Commitments [Line Items]
Accrual for environmental loss contingencies			$ 25,600					$ 27,546
Estimate of possible loss			20,900	€ 17
Settled Litigation
Other Commitments [Line Items]
Litigation settlement	$ 480
Threatened Litigation | Regional Internal Revenue Office of Lombardy
Other Commitments [Line Items]
Losses under dispute			$ 77,200				€ 62.6			$ 126,400	€ 102.6
Number of equal installments | installment			5				5
Number of notice of assessments | notice			3				3
FDA Warning Letter
Other Commitments [Line Items]
Number of observed non-conformities | non-conformity									2
SNIA | Pending Litigation | SNIA s.p.a
Other Commitments [Line Items]
Compensation sought					$ 4,000,000
SNIA | Settled Litigation | Sorin S.p.A. | Positive Outcome of Litigation
Other Commitments [Line Items]
Litigation settlement		$ 360
Forecast
Other Commitments [Line Items]
Pending claims, number | claim						115

Stockholders' Equity (Comprehen

Stockholders' Equity (Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	$ 1,815,314
Ending Balance	1,818,982
Change in Unrealized Gain (Loss) on Derivatives
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(919)	$ 3,619
Other comprehensive (loss) income before reclassifications, before tax	214	(6,832)
Tax expense (benefit)	(51)	1,934
Other comprehensive (loss) income before reclassifications, net of tax	163	(4,898)
Reclassification of loss (gain) from accumulated other comprehensive income, before tax	(1,471)	4,199
Reclassification of tax expense (benefit)	353	(1,210)
Reclassification of loss (gain) from accumulated other comprehensive income, after tax	(1,118)	2,989
Net current-period other comprehensive (loss) income, net of tax	(955)	(1,909)
Ending Balance	(1,874)	1,710
Foreign Currency Translation Adjustments Gain (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	46,232	(72,106)
Other comprehensive (loss) income before reclassifications, before tax	10,552	15,430
Tax expense (benefit)	0	0
Other comprehensive (loss) income before reclassifications, net of tax	10,552	15,430
Reclassification of loss (gain) from accumulated other comprehensive income, before tax	0	0
Reclassification of tax expense (benefit)	0	0
Reclassification of loss (gain) from accumulated other comprehensive income, after tax	0	0
Net current-period other comprehensive (loss) income, net of tax	10,552	15,430
Ending Balance	56,784	(56,676)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	45,313	(68,487)
Other comprehensive (loss) income before reclassifications, before tax	10,766	8,598
Tax expense (benefit)	(51)	1,934
Other comprehensive (loss) income before reclassifications, net of tax	10,715	10,532
Reclassification of loss (gain) from accumulated other comprehensive income, before tax	(1,471)	4,199
Reclassification of tax expense (benefit)	353	(1,210)
Reclassification of loss (gain) from accumulated other comprehensive income, after tax	(1,118)	2,989
Net current-period other comprehensive (loss) income, net of tax	9,597	13,521
Ending Balance	$ 54,910	$ (54,966)

Stock-Based Incentive Plan (Com

Stock-Based Incentive Plan (Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 4,697	$ 3,771
Share-based compensation arrangement, compensation cost	$ 500
Share-based compensation arrangement, vesting period	4 years
Service-based stock appreciation rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,348	1,571
Service-based restricted stock units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	2,156	2,170
Market performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 345	0
Share-based compensation arrangement, vesting period	3 years
Operating performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 848	$ 30
Share-based compensation arrangement, vesting period	3 years

Stock-Based Incentive Plan (Exe

Stock-Based Incentive Plan (Executed Agreements) (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Service-based stock appreciation rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares (in shares) | shares	561
Weighted average grant date fair value (in dollars per share) | $ / shares	$ 27.19
Service-based restricted stock units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares (in shares) | shares	178
Weighted average grant date fair value (in dollars per share) | $ / shares	$ 88.38
Market performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares (in shares) | shares	41
Weighted average grant date fair value (in dollars per share) | $ / shares	$ 99.97
Operating performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares (in shares) | shares	41
Weighted average grant date fair value (in dollars per share) | $ / shares	$ 88.38

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income tax expense	$ 3,893	$ 5,655
Effective tax rate (percent)	17.60%	27.10%
Deferred tax asset related to a reserve for an uncertain tax position		$ 3,000

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
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Net income from continuing operations	$ 17,822	$ 13,227
Net loss from discontinued operations	(4,549)	(1,956)
Net income	$ 13,273	$ 11,271
Basic weighted average shares outstanding (in Shares)	48,324	48,067
Add effects of share-based compensation instruments (in Shares)	863	111
Diluted weighted average shares outstanding (in Shares)	49,187	48,178
Basic income (loss) per share - continuing operation (in Dollars per Share)	$ 0.37	$ 0.28
Basic income (loss) per share - discontinued operation (in Dollars per Share)	(0.10)	(0.05)
Basic income (loss) per share (in Dollars per Share)	0.27	0.23
Diluted income (loss) per share - continuing operation (in Dollars per Share)	0.36	0.27
Diluted income (loss) per share - discontinued operation (in Dollars per Share)	(0.09)	(0.04)
Diluted income (loss) per share (in Dollars per Share)	$ 0.27	$ 0.23

Net Income (Loss) Per Share (Na

Net Income (Loss) Per Share (Narrative of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Stock Compensation Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share amount (in shares)	836	607

Geographic and Segment Inform71

Geographic and Segment Information (Segment Info) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)geographic_regionsegment	Mar. 31, 2017USD ($)	Jan. 16, 2018	Dec. 31, 2017USD ($)
Segment Reporting [Abstract]
Reportable segments | segment	2
Number of geographic regions in which entity operates | geographic_region	3
Segment Reporting Information [Line Items]
Net sales	$ 250,398	$ 226,825
Total reportable segment income from continuing operations	26,172	39,923
Merger and integration expenses	2,960	2,186
Charges	1,881	10,030
Amortization of intangibles	8,801	7,960
Operating income from continuing operations	12,530	19,747
Assets	2,704,876			$ 2,503,891
Capital expenditures	5,846	8,116
Operating Segments | Cardiac Surgery
Segment Reporting Information [Line Items]
Charges	1,341	6,002
Operating Segments | Neuromodulation
Segment Reporting Information [Line Items]
Charges	6	672
Other
Segment Reporting Information [Line Items]
Total reportable segment income from continuing operations	(22,820)	(16,866)
Charges	534	3,356
Assets	345,843			334,276
Capital expenditures	1,443	1,203
ImThera Medical, Inc.
Segment Reporting Information [Line Items]
Ownership percentage (percent)			86.00%
Continuing Operations | Operating Segments
Segment Reporting Information [Line Items]
Net sales	250,398	226,825
Continuing Operations | Operating Segments | Cardiac Surgery
Segment Reporting Information [Line Items]
Net sales	156,172	139,204
Total reportable segment income from continuing operations	10,258	16,033
Assets	1,386,282			1,386,032
Capital expenditures	3,131	3,794
Continuing Operations | Operating Segments | Neuromodulation
Segment Reporting Information [Line Items]
Net sales	93,844	87,159
Total reportable segment income from continuing operations	38,734	40,756
Assets	715,611			532,894
Capital expenditures	347	1,461
Discontinued Operations
Segment Reporting Information [Line Items]
Assets	257,140			$ 250,689
Capital expenditures	925	1,658
United States | Continuing Operations | Operating Segments
Segment Reporting Information [Line Items]
Net sales	122,973	111,904
United States | Continuing Operations | Operating Segments | Cardiac Surgery
Segment Reporting Information [Line Items]
Net sales	44,981	38,245
United States | Continuing Operations | Operating Segments | Neuromodulation
Segment Reporting Information [Line Items]
Net sales	77,992	73,659
Europe | Continuing Operations | Operating Segments
Segment Reporting Information [Line Items]
Net sales	59,277	48,885
Europe | Continuing Operations | Operating Segments | Cardiac Surgery
Segment Reporting Information [Line Items]
Net sales	48,986	40,956
Europe | Continuing Operations | Operating Segments | Neuromodulation
Segment Reporting Information [Line Items]
Net sales	10,291	7,929
Rest of world | Continuing Operations | Operating Segments
Segment Reporting Information [Line Items]
Net sales	68,148	66,036
Rest of world | Continuing Operations | Operating Segments | Cardiac Surgery
Segment Reporting Information [Line Items]
Net sales	62,205	60,003
Rest of world | Continuing Operations | Operating Segments | Neuromodulation
Segment Reporting Information [Line Items]
Net sales	5,561	5,571
Rest of world | Continuing Operations | Other
Segment Reporting Information [Line Items]
Net sales	382	462
UNITED KINGDOM
Segment Reporting Information [Line Items]
Net sales	8,200	6,800
Cardiopulmonary | Cardiac Surgery
Segment Reporting Information [Line Items]
Net sales	125,130	107,298
Cardiopulmonary | United States | Cardiac Surgery
Segment Reporting Information [Line Items]
Net sales	38,445	32,176
Cardiopulmonary | Europe | Cardiac Surgery
Segment Reporting Information [Line Items]
Net sales	36,870	30,609
Cardiopulmonary | Rest of world | Cardiac Surgery
Segment Reporting Information [Line Items]
Net sales	49,815	44,513
Heart Valves | Cardiac Surgery
Segment Reporting Information [Line Items]
Net sales	31,042	31,906
Heart Valves | United States | Cardiac Surgery
Segment Reporting Information [Line Items]
Net sales	6,536	6,069
Heart Valves | Europe | Cardiac Surgery
Segment Reporting Information [Line Items]
Net sales	12,116	10,347
Heart Valves | Rest of world | Cardiac Surgery
Segment Reporting Information [Line Items]
Net sales	$ 12,390	$ 15,490

Geographic and Segment Inform72

Geographic and Segment Information (Changes in Carrying Amount of Goodwill) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Goodwill [Roll Forward]
Goodwill, beginning	$ 784,242
Goodwill as a result of acquisitions	87,063
Foreign currency adjustments	4,259
Goodwill, ending	875,564
Operating Segments | Neuromodulation
Goodwill [Roll Forward]
Goodwill, beginning	315,943
Goodwill as a result of acquisitions	87,063
Foreign currency adjustments	0
Goodwill, ending	403,006
Operating Segments | Cardiac Surgery
Goodwill [Roll Forward]
Goodwill, beginning	425,882
Goodwill as a result of acquisitions	0
Foreign currency adjustments	4,259
Goodwill, ending	430,141
Other
Goodwill [Roll Forward]
Goodwill, beginning	42,417
Goodwill as a result of acquisitions	0
Foreign currency adjustments	0
Goodwill, ending	$ 42,417

Geographic and Segment Inform73

Geographic and Segment Information (Geographic Areas) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Property, plant and equipment, net	$ 191,701	$ 192,359
United States
Segment Reporting Information [Line Items]
Property, plant and equipment, net	60,684	62,154
Europe
Segment Reporting Information [Line Items]
Property, plant and equipment, net	119,630	119,133
Rest of world
Segment Reporting Information [Line Items]
Property, plant and equipment, net	$ 11,387	$ 11,072

Supplemental Financial Inform74

Supplemental Financial Information (Summary of Accounts Receivable) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Trade receivables from third parties	$ 286,321	$ 288,127
Allowance for bad debt	(6,493)	(5,982)
Accounts receivable, net	$ 279,828	$ 282,145

Supplemental Financial Inform75

Supplemental Financial Information (Summary of Inventory) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 36,331	$ 39,810
Work-in-process	23,197	18,206
Finished goods	94,798	86,454
Inventory, Net	154,326	144,470
Provision for obsolescence	$ 11,900	$ 10,500

Supplemental Financial Inform76

Supplemental Financial Information (Summary of Prepaid Expenses and Other Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Prepaid expenses	$ 18,056		$ 13,904
Deposits and advances to suppliers	5,746		4,551
Earthquake grant receivable	4,177		4,064
Escrow deposit - Caisson	2,000		2,000
Current loans and notes receivable	1,121		1,395
Income taxes payable on inter-company transfers of property	0		12,604
Derivative contract assets	0		519
Prepaid Expense and Other Assets, Current	$ 31,100	$ 26,433	$ 39,037

Supplemental Financial Inform77

Supplemental Financial Information (Summary of Other Long-term Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Investments	$ 3,699		$ 2,943
Escrow deposit - Caisson	1,000		1,000
Guaranteed deposits	700		725
Loans and notes receivable	0		1,276
Income taxes payable on inter-company transfers of property	0		68,127
Other	1,162		1,913
Other assets	$ 6,561	$ 7,857	$ 75,984

Supplemental Financial Inform78

Supplemental Financial Information (Summary of Accrued Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Product remediation	$ 14,549	$ 16,811
Deferred consideration - acquisitions	14,374	14,300
Provisions for agents, returns and other	8,638	8,134
Legal and administrative costs	6,801	6,082
Derivative contract liabilities	4,959	1,294
Restructuring related liabilities	5,594	3,560
Royalty costs	2,167	3,615
Contract liabilities	2,879	2,900
Uncertain tax positions	0	2,536
Escrow indemnity liabilities - Caisson	2,000	2,000
Product warranty obligations	1,142	1,476
Government grants	0	1,174
Research and development costs	2,257	797
Other accrued expenses	16,388	14,263
Accrued liabilities	$ 81,748	$ 78,942

Supplemental Financial Inform79

Supplemental Financial Information (Summary of Other Long-term Liabilities) (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018USD ($)company	Dec. 31, 2017USD ($)company
Balance Sheet Related Disclosures [Abstract]
Contingent consideration	$ 147,805	$ 33,973
Product remediation liability	11,032	10,735
Uncertain tax positions	19,018	18,306
Escrow indemnity liabilities - Caisson	1,000	1,000
Contract liabilities	1,334	918
Financial derivatives	661	751
Restructuring related liabilities	450	0
Unfavorable operating leases	242	252
Other	2,436	3,149
Other long-term liabilities	$ 183,978	$ 69,084
Number of businesses acquired | company	4	4

New Accounting Pronouncements80

New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jan. 01, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid expenses and other current assets	$ 31,100	$ 26,433	$ 39,037
Deferred tax assets, net	68,901	69,860	11,559
Other assets	6,561	7,857	75,984
Retained deficit	$ (48,821)	$ (62,094)	(39,664)
Calculated under Revenue Guidance in Effect before Topic 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid expenses and other current assets			39,037
Deferred tax assets, net			11,559
Other assets			75,984
Retained deficit			(39,664)
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2016-16
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid expenses and other current assets			(12,604)
Deferred tax assets, net			58,301
Other assets			(68,127)
Retained deficit			$ (22,430)

Subsequent Event (Details)

Subsequent Event (Details) - USD ($)	Apr. 10, 2018	Apr. 04, 2018	Apr. 03, 2018	Mar. 23, 2018	Feb. 14, 2018	Oct. 21, 2016
TandemLife | Subsequent Event
Subsequent Event [Line Items]
Fair value of consideration transferred		$ 250,000,000
Acquisition-related expense		200,000,000
Liabilities incurred		$ 50,000,000
Revolving Credit Facility | Barclays Bank
Subsequent Event [Line Items]
Finance contract, borrowing base						$ 40,000,000
Revolving Credit Facility | Barclays Bank | Subsequent Event
Subsequent Event [Line Items]
Finance contract, borrowing base	$ 70,000,000
Debt instrument, term	1 year
Line of credit facility, expiration date	Oct. 20, 2019
Debt instrument, basis spread on variable rate	0.85%
Bridge Loan
Subsequent Event [Line Items]
Finance contract, borrowing base				$ 190,000,000	$ 170,000,000
Bridge Loan | Subsequent Event
Subsequent Event [Line Items]
Finance contract, borrowing base			$ 190,000,000