Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Jun. 30, 2024 | Aug. 05, 2024 | |
Entity Information [Line Items] | ||
Entity Registrant Name | STERIS plc | |
Entity Central Index Key | 0001757898 | |
Document Type | 10-Q | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --03-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 98,616,743 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-38848 | |
Entity Incorporation, State or Country Code | L2 | |
Entity Tax Identification Number | 98-1455064 | |
Local Phone Number | 1 232 2000 | |
City Area Code | 353 | |
Document Quarterly Report | true | |
Entity Address, Address Line One | 70 Sir John Rogerson's Quay, | |
Entity Address, City or Town | Dublin 2, | |
Entity Address, Country | IE | |
Entity Address, Postal Zip Code | D02 R296 | |
Entity Shell Company | false | |
STE Two700 Senior Notes Due2031 Member | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.700% Senior Notes due 2031 | |
Trading Symbol | STE/31 | |
Security Exchange Name | NYSE | |
Two700 Senior Notes Due2051 Member | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 3.750% Senior Notes due 2051 | |
Trading Symbol | STE/51 | |
Security Exchange Name | NYSE | |
Ordinary Shares | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Ordinary Shares, $0.001 par value | |
Trading Symbol | STE | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Current assets: | ||
Cash and cash equivalents | $ 198,328 | $ 207,020 |
Accounts receivable (net of allowances of $23,681 and $22,984, respectively) | 892,606 | 1,008,315 |
Inventories, net | 698,587 | 674,535 |
Prepaid expenses and other current assets | 150,973 | 174,349 |
Current assets held for sale | 0 | 804,904 |
Total current assets | 1,940,494 | 2,869,123 |
Property, plant, and equipment, net | 1,834,216 | 1,765,180 |
Lease right-of-use assets, net | 165,020 | 173,201 |
Goodwill | 4,056,754 | 4,070,712 |
Intangible Assets, Net (Excluding Goodwill) | 2,048,990 | 2,119,282 |
Other assets | 63,127 | 66,199 |
Total assets | 10,108,601 | 11,063,697 |
Current liabilities: | ||
Accounts payable | 231,720 | 251,723 |
Accrued income taxes | 57,000 | 13,640 |
Accrued payroll and other related liabilities | 149,372 | 164,831 |
Capital Lease Obligations, Current | 29,705 | 31,239 |
Short-term Debt | 80,000 | 85,938 |
Accrued expenses and other | 286,563 | 319,744 |
Current liabilities held for sale | 0 | 64,012 |
Total current liabilities | 834,360 | 931,127 |
Long-term indebtedness | 2,235,601 | 3,120,162 |
Deferred Income Taxes and Other Tax Liabilities, Noncurrent | 456,465 | 479,688 |
Capital Lease Obligations, Noncurrent | 139,362 | 145,828 |
Other Liabilities, Noncurrent | 72,368 | 71,546 |
Total liabilities | 3,738,156 | 4,748,351 |
Commitments and contingencies (see Note 10) | ||
Common shares, with $0.001 par value; 500,000 authorized; 98,799 shares issued; and 98,883 shares outstanding, respectively. | 4,499,580 | 4,543,176 |
Retained earnings | 2,178,087 | 2,087,645 |
Accumulated other comprehensive income | (323,070) | (328,657) |
Total shareholders' equity | 6,354,597 | 6,302,164 |
Noncontrolling interest | 15,848 | 13,182 |
Total equity | 6,370,445 | 6,315,346 |
Total liabilities and equity | $ 10,108,601 | $ 11,063,697 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 23,681 | $ 22,984 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | |
Common Stock, Shares Authorized | 500,000 | |
Common Stock, Shares, Outstanding | 98,799 | 98,883 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||
Revenues | $ 1,279,502 | $ 1,183,386 |
Cost of revenues: | ||
Total cost of revenues | 707,072 | 654,382 |
Gross Profit | 572,430 | 529,004 |
Operating expenses: | ||
Selling, general, and administrative | 335,626 | 306,530 |
Research and development | 25,573 | 24,694 |
Restructuring Costs | 25,700 | 19 |
Total operating expenses | 386,899 | 331,243 |
Income from operations | 185,531 | 197,761 |
Non-operating expenses, net: | ||
Interest expense | 30,384 | 32,357 |
Interest income and miscellaneous expense | (1,309) | (1,377) |
Gain on sale of business | (18,803) | 0 |
Total non-operating expenses, net | 10,272 | 30,980 |
Income before income tax expense | 175,259 | 166,781 |
Income tax expense | 35,310 | 36,200 |
Income from continuing operations, net of income tax | 139,949 | 130,581 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 5,592 | (6,791) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 145,541 | 123,790 |
Less: Net Income Attributable to Noncontrolling Interest | 140 | 236 |
Net Income (Loss) Attributable to Shareholders | $ 145,401 | $ 123,554 |
Net income per common share [Abstract] | ||
Income (Loss) from Continuing Operations, Per Basic Share | $ 1.41 | $ 1.32 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | 0.06 | (0.07) |
Basic | 1.47 | 1.25 |
Income (Loss) from Continuing Operations, Per Diluted Share | 1.41 | 1.31 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0.06 | (0.07) |
Diluted | 1.46 | 1.25 |
Cash dividends declared per common share outstanding | $ 0.52 | $ 0.47 |
Product [Member] | ||
Revenues: | ||
Revenues | $ 656,293 | $ 612,702 |
Cost of revenues: | ||
Cost of Goods and Services Sold | 340,420 | 320,479 |
Service [Member] | ||
Revenues: | ||
Revenues | 623,209 | 570,684 |
Cost of revenues: | ||
Cost of Goods and Services Sold | $ 366,652 | $ 333,903 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net Income | $ 145,541 | $ 123,790 |
Less: Net Income Attributable to Noncontrolling Interest | 140 | 236 |
Net Income (Loss) Attributable to Parent | 145,401 | 123,554 |
Other comprehensive (loss) income | ||
Defined benefit plan changes, (net of taxes of $(14) and $(17), respectively) | (164) | 58 |
Change in cumulative foreign current translation adjustment | 5,751 | 9,793 |
Total other comprehensive (loss) income | 5,587 | 9,851 |
Comprehensive income | $ 150,988 | $ 133,405 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Amortization of pension and postretirement benefits plans costs, tax | $ (14) | $ (17) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net Income | $ 145,541 | $ 123,790 |
Depreciation, depletion, and amortization | 112,698 | 137,925 |
Deferred income taxes | (22,121) | (445) |
Share-based compensation | 11,460 | 11,579 |
(Gain) loss on the disposal of property, plant, and equipment, and intangibles, net | 2,151 | 93 |
Loss on sale of businesses, net | (10,960) | 0 |
Other items | (2,451) | 1,995 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable, net | 107,683 | 42,446 |
Inventories, net | (34,134) | (67,956) |
Other current assets | 9,438 | 14,355 |
Accounts payable | (17,122) | (20,572) |
Accruals and other, net | 1,560 | 37,919 |
Net cash provided by operating activities | 303,743 | 281,129 |
Investing activities: | ||
Purchases of property, plant, equipment, and intangibles, net | (108,083) | (66,601) |
Proceeds from the sale of property, plant, equipment, and intangibles | 0 | 5 |
Proceeds from Divestiture of Businesses, Net of Cash Divested | 809,571 | 0 |
Acquisition of businesses, net of cash acquired | (13,659) | 0 |
Net cash used in investing activities | 687,829 | (66,596) |
Financing activities: | ||
Repayments of Secured Debt | (638,125) | (15,000) |
Proceeds (Payments) under credit facilities, net | (253,200) | (144,651) |
Acquisition related deferred or contingent consideration | (87) | (89) |
Repurchases of ordinary shares | (64,203) | (8,724) |
Cash dividends paid to ordinary shareholders | (51,436) | (46,427) |
Proceeds from issuance of equity to minority shareholders | 2,532 | 0 |
Proceeds from (Payments for) Other Financing Activities | 5,587 | 1,254 |
Net cash used in financing activities | (998,932) | (213,637) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations | (1,332) | (639) |
(Decrease) increase in cash and cash equivalents | (8,692) | 257 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | $ 198,328 | $ 208,614 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY Statement - USD ($) shares in Thousands, $ in Thousands | Total | Noncontrolling Interest [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Common Stock [Member] |
Beginning balance (in shares) at Mar. 31, 2023 | 98,629 | ||||
Beginning balance at Mar. 31, 2023 | $ 6,087,172 | $ 9,974 | $ (320,710) | $ 1,911,533 | $ 4,486,375 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income (Loss) Attributable to Parent | 123,554 | 123,554 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 236 | 236 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 123,790 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 9,851 | 9,851 | |||
Treasury Stock, Shares, Acquired | (52) | ||||
Payments for Repurchase of Common Stock | (8,724) | (7,727) | $ (997) | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 204 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $ 12,834 | $ 12,834 | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.47 | ||||
Dividends, Common Stock, Cash | $ (46,427) | (46,427) | |||
Increase (Decrease) In Noncontrolling Interests, Other | (124) | (124) | |||
Ending balance at Jun. 30, 2023 | 6,178,372 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 98,781 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stockholders' Equity Attributable to Parent | (310,859) | 1,980,933 | $ 4,498,212 | ||
Noncontrolling interest | 10,086 | ||||
Stockholders' Equity Attributable to Parent | 6,302,164 | ||||
Noncontrolling interest | 13,182 | ||||
Beginning balance (in shares) at Mar. 31, 2024 | 98,883 | ||||
Beginning balance at Mar. 31, 2024 | 6,315,346 | 13,182 | (328,657) | 2,087,645 | $ 4,543,176 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income (Loss) Attributable to Parent | 145,401 | 145,401 | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 140 | 140 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 145,541 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 5,587 | 5,587 | |||
Treasury Stock, Shares, Acquired | (322) | ||||
Payments for Repurchase of Common Stock | (64,203) | (3,523) | $ (60,680) | ||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 238 | ||||
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $ 17,084 | $ 17,084 | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.52 | ||||
Dividends, Common Stock, Cash | $ (51,436) | (51,436) | |||
Noncontrolling Interest, Increase from Contributions to Noncontrolling Interest Holders | 2,532 | 2,532 | |||
Increase (Decrease) In Noncontrolling Interests, Other | (6) | (6) | |||
Ending balance at Jun. 30, 2024 | 6,370,445 | ||||
Ending balance (in shares) at Jun. 30, 2024 | 98,799 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stockholders' Equity Attributable to Parent | 6,354,597 | $ (323,070) | $ 2,178,087 | $ 4,499,580 | |
Noncontrolling interest | $ 15,848 | $ 15,848 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Nature of Operations | 1. Nature of Operations and Summary of Significant Accounting Policies STERIS is a leading global provider of products and services that support patient care with an emphasis on infection prevention. WE HELP OUR CUSTOMERS CREATE A HEALTHIER AND SAFER WORLD by providing innovative healthcare and life science products and services around the globe. We offer our Customers a unique mix of innovative products and services. These include: consumable products, such as detergents, endoscopy accessories, barrier products, instruments and tools; services, including equipment installation and maintenance, microbial reduction of medical devices, instrument and scope repair, laboratory testing, and outsourced reprocessing; capital equipment, such as sterilizers, surgical tables, and automated endoscope reprocessors; and connectivity solutions such as operating room (“OR”) integrati on. We operate and report our financial information in three reportable business segments: Healthcare, Applied Sterilization Technologies ("AST"), and Life Sciences. Previously, we had four reportable business segments, however, as a result of the divestiture of our Dental segment, Dental is presented as discontinued operations. Historical information has been retrospectively adjusted to reflect these changes for comparability purposes, as required. We describe our business segments in Note 11 titled "Business Segment Information." Our fiscal year ends on March 31. References in this Quarterly Report to a particular “year” or “year-end” mean our fiscal year. The significant accounting policies applied in preparing the accompanying consolidated financial statements of the Company are summarized below: Interim Financial Statements We prepared the accompanying unaudited consolidated financial statements of the Company according to accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. This means that they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Our unaudited interim consolidated financial statements contain all material adjustments (including normal recurring accruals and adjustments) management believes are necessary to fairly state our financial condition, results of operations, and cash flows for the periods presented. These interim consolidated financial statements should be read together with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended March 31, 2024, which was filed with the Securities and Exchange Commission ("SEC") on May 29, 2024. The Consolidated Balance Sheet at March 31, 2024 was derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Principles of Consolidation We use the consolidation method to report our investment in our subsidiaries. Therefore, the accompanying consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. We eliminate intercompany accounts and transactions when we consolidate these accounts. Investments in equity of unconsolidated affiliates, over which the Company has significant influence, but not control, over the financial and operating polices, are accounted for primarily using the equity method. These investments are immaterial to the Company's consolidated financial statements. Discontinued Operations On April 11, 2024, the Company announced its plan to sell substantially all of the net assets of its Dental segment for total cash consideration of $787,500, subject to customary adjustments, and up to an additional $12,500 in contingent payment should the Dental business achieve certain revenue targets in fiscal 2025. The transaction was structured as an equity sale and closed on May 31, 2024. A component of an entity is reported in discontinued operations after meeting the criteria for held for sale classification if the disposition represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results. We analyzed the quantitative and qualitative factors relevant to the divestiture of our Dental segment and determined that those conditions for discontinued operations presentation had been met prior to March 31, 2024. The Dental segment results of operations were reclassified to income (loss) from discontinued operations in the Consolidated Statements of Income for all periods presented, and we classified the Dental segment's assets and liabilities as held for sale for the year ended March 31, 2024 in the accompanying Consolidated Balance Sheets. Due to the transaction closing in the first quarter of fiscal 2025, the held for sale assets and liabilities were classified as current as of March 31, 2024. Our Consolidated Statements of Cash Flows include the financial results of the Dental segment for all periods presented. For additional information regarding this transaction and its effect on our financial reporting, refer to Note 4 titled, "Discontinued Operations" and Note 11 titled, "Business Segment Information." Use of Estimates We make certain estimates and assumptions when preparing financial statements according to U.S. GAAP that affect the reported amounts of assets and liabilities at the financial statement dates and the reported amounts of revenues and expenses during the periods presented. These estimates and assumptions involve judgments with respect to many factors that are difficult to predict and are beyond our control. Actual results could be materially different from these estimates. We revise the estimates and assumptions as new information becomes available. This means that operating results for the three month period ended June 30, 2024 are not necessarily indicative of results that may be expected for future quarters or for the full fiscal year ending March 31, 2025. Revenue Recognition and Associated Liabilities Revenue is recognized when obligations under the terms of the contract are satisfied and control of the promised products or services have transferred to the Customer. Revenues are measured at the amount of consideration that we expect to be paid in exchange for the products or services. Product revenue is recognized when control passes to the Customer, which is generally based on contract or shipping terms. Service revenue is recognized when the Customer benefits from the service, which occurs either upon completion of the service or as it is provided to the Customer. Our Customers include end users as well as dealers and distributors who market and sell our products. Our revenue is not contingent upon resale by the dealer or distributor, and we have no further obligations related to bringing about resale. Our standard return and restocking fee policies are applied to sales of products. Shipping and handling costs charged to Customers are included in Product revenues. The associated expenses are treated as fulfillment costs and are included in Cost of revenues. Revenues are reported net of sales and value-added taxes collected from Customers. We have individual Customer contracts that offer discounted pricing. Dealers and distributors may be offered sales incentives in the form of rebates. We reduce revenue for discounts and estimated returns, rebates, and other similar allowances in the same period the related revenues are recorded. The reduction in revenue for these items is estimated based on historical experience and trend analysis to the extent that it is probable that a significant reversal of revenue will not occur. Estimated returns are recorded gross on the Consolidated Balance Sheets. In transactions that contain multiple performance obligations, such as when products, maintenance services, and other services are combined, we recognize revenue as each product is delivered or service is provided to the Customer. We allocate the total arrangement consideration to each performance obligation based on its relative standalone selling price, which is the price for the product or service when it is sold separately. Payment terms vary by the type and location of the Customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not significant. We do not evaluate whether the selling price contains a financing component for contracts that have a duration of less than one year. We do not capitalize sales commissions as substantially all of our sales commission programs have an amortization period of one year or less. Certain costs to fulfill a contract are capitalized and amortized over the term of the contract if they are recoverable, directly related to a contract and generate resources that we will use to fulfill the contract in the future. At June 30, 2024, assets related to costs to fulfill a contract were not material to our consolidated financial statements. Refer to Note 11 titled, "Business Segment Information" for disaggregation of revenue. Product Revenues Product revenues consist of revenues generated from sales of consumables and capital equipment. These contracts are primarily based on a Customer’s purchase order and may include a Distributor, Dealer or Group Purchasing Organization ("GPO") agreement. We recognize revenue for sales of products when control passes to the Customer, which generally occurs either when the products are shipped or when they are received by the Customer. Revenue related to capital equipment products is deferred until installation is complete if the capital equipment and installation are highly integrated and form a single performance obligation. Service Revenues Within our Healthcare and Life Sciences segments, service revenues include revenue generated from parts and labor associated with the maintenance, repair and installation of capital equipment. These contracts are primarily based on a Customer’s purchase order and may include a Distributor, Dealer, or GPO agreement. For maintenance, repair and installation of capital equipment, revenue is recognized upon completion of the service. Healthcare service revenues also include outsourced reprocessing services and instrument repairs. Contracts for outsourced reprocessing services are primarily based on an agreement with a Customer, ranging in length from several months to 15 years. Outsourced reprocessing services revenue is recognized ratably over the contract term using a time-based input measure, adjusted for volume and other performance metrics, to the extent that it is probable that a significant reversal of revenue will not occur. Contracts for instrument repairs are primarily based on a Customer’s purchase order, and the associated revenue is recognized upon completion of the repair. We also offer preventive maintenance and separately priced extended warranty agreements to our Customers, which require us to maintain and repair products over the duration of the contract. Generally, these contract terms are cancellable without penalty and range from one to five years. Amounts received under these Customer contracts are initially recorded as a service liability and are recognized as service revenue ratably over the contract term using a time-based input measure. Within our AST segment, service revenues include contract sterilization and laboratory services. Sales contracts for contract sterilization and laboratory services are primarily based on a Customer’s purchase order and associated Customer agreement, and revenues are generally recognized upon completion of the service. Contract Liabilities Payments received from Customers are based on invoices or billing schedules as established in contracts with Customers. Deferred revenue is recorded when payment is received in advance of performance under the contract. Deferred revenue is recognized as revenue upon completion of the performance obligation, which generally occurs within one year. During the first three months of fiscal 2025, $45,996 of the March 31, 2024 deferred revenue balance was recorded as revenue. During the first three months of fiscal 2024, $42,300 of the March 31, 2023 deferred revenue balance was recorded as revenue. Refer to Note 8 titled, "Additional Consolidated Balance Sheet Information" for deferred revenue balances. Service Liabilities Payments received in advance of performance for cancellable preventive maintenance and separately priced extended warranty contracts are recorded as service liabilities. Service liabilities are recognized as revenue as performance is rendered under the contract. Refer to Note 8 titled, "Additional Consolidated Balance Sheet Information" for service liability balances. Remaining Performance Obligations Remaining performance obligations reflect only the performance obligations related to agreements for which we have a firm commitment from a Customer to purchase, and exclude variable consideration related to unsatisfied performance obligations. With regard to products, these remaining performance obligations include orders for capital equipment and consumables where control of the products has not passed to the customer. With regard to service, these remaining performance obligations primarily include installation, certification, and outsourced reprocessing services. As of June 30, 2024, the transaction price allocated to remaining performance obligations was approximately $1,499,543. We expect to recognize approximately 53% of the transaction price within one year and approximately 38% beyond one year. The remainder has yet to be scheduled for delivery. Recently Issued Accounting Standards Impacting the Company Recently Issued Accounting Standards Impacting the Company are presented in the following table: Standard Date of Issuance Description Date of Adoption Effect on the financial statements or other significant matters Standards that have not yet been adopted ASU 2023-07 "Segment Reporting (Topic 280) November 2023 The standard provides guidance to enhance disclosures related to reportable segment expenses, including requirements to disclose significant segment expenses that are regularly provided to the Chief Operating Decision Maker ("CODM"), the title and position of the CODM and a description of how the CODM uses the information to make decisions regarding the allocation of resources. The standard also requires disclosure of certain segment information currently required annually to be reported on an interim basis. The amendments in this standard are effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. NA We are currently assessing the impact of this standard update on our disclosures in the notes to the consolidated financial statements. ASU 2023-09 "Income Taxes (Topic 740) Improvements to Income Tax Disclosures." December 2023 The standard provides guidance to enhance disclosures related to income taxes paid (net of refunds), requiring disaggregation by federal, state, and foreign, and disclosure of income taxes paid (net of refunds received) by individual jurisdictions that represent greater than 5% of the total. The standard also requires disclosure of income (loss) from continuing operations before income taxes, disaggregated between domestic and foreign, and income tax expense (or benefit) disaggregated by federal, state, and foreign. Finally, the standard removes the requirement for certain disclosures related to changes in unrecognized tax benefits and certain amounts of temporary differences. The amendments in this standard are effective for annual periods beginning after December 15, 2024. NA We are currently assessing the impact of this standard update on our disclosures in the notes to the consolidated financial statements. A detailed description of our significant and critical accounting policies, estimates, and assumptions is included in our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2024, which was filed with the SEC on May 29, 2024. Our significant and critical accounting policies, estimates, and assumptions have not changed materially from March 31, 2024. |
Significant Accounting Policies | 1. Nature of Operations and Summary of Significant Accounting Policies STERIS is a leading global provider of products and services that support patient care with an emphasis on infection prevention. WE HELP OUR CUSTOMERS CREATE A HEALTHIER AND SAFER WORLD by providing innovative healthcare and life science products and services around the globe. We offer our Customers a unique mix of innovative products and services. These include: consumable products, such as detergents, endoscopy accessories, barrier products, instruments and tools; services, including equipment installation and maintenance, microbial reduction of medical devices, instrument and scope repair, laboratory testing, and outsourced reprocessing; capital equipment, such as sterilizers, surgical tables, and automated endoscope reprocessors; and connectivity solutions such as operating room (“OR”) integrati on. We operate and report our financial information in three reportable business segments: Healthcare, Applied Sterilization Technologies ("AST"), and Life Sciences. Previously, we had four reportable business segments, however, as a result of the divestiture of our Dental segment, Dental is presented as discontinued operations. Historical information has been retrospectively adjusted to reflect these changes for comparability purposes, as required. We describe our business segments in Note 11 titled "Business Segment Information." Our fiscal year ends on March 31. References in this Quarterly Report to a particular “year” or “year-end” mean our fiscal year. The significant accounting policies applied in preparing the accompanying consolidated financial statements of the Company are summarized below: Interim Financial Statements We prepared the accompanying unaudited consolidated financial statements of the Company according to accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. This means that they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Our unaudited interim consolidated financial statements contain all material adjustments (including normal recurring accruals and adjustments) management believes are necessary to fairly state our financial condition, results of operations, and cash flows for the periods presented. These interim consolidated financial statements should be read together with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended March 31, 2024, which was filed with the Securities and Exchange Commission ("SEC") on May 29, 2024. The Consolidated Balance Sheet at March 31, 2024 was derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Principles of Consolidation We use the consolidation method to report our investment in our subsidiaries. Therefore, the accompanying consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. We eliminate intercompany accounts and transactions when we consolidate these accounts. Investments in equity of unconsolidated affiliates, over which the Company has significant influence, but not control, over the financial and operating polices, are accounted for primarily using the equity method. These investments are immaterial to the Company's consolidated financial statements. Discontinued Operations On April 11, 2024, the Company announced its plan to sell substantially all of the net assets of its Dental segment for total cash consideration of $787,500, subject to customary adjustments, and up to an additional $12,500 in contingent payment should the Dental business achieve certain revenue targets in fiscal 2025. The transaction was structured as an equity sale and closed on May 31, 2024. A component of an entity is reported in discontinued operations after meeting the criteria for held for sale classification if the disposition represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results. We analyzed the quantitative and qualitative factors relevant to the divestiture of our Dental segment and determined that those conditions for discontinued operations presentation had been met prior to March 31, 2024. The Dental segment results of operations were reclassified to income (loss) from discontinued operations in the Consolidated Statements of Income for all periods presented, and we classified the Dental segment's assets and liabilities as held for sale for the year ended March 31, 2024 in the accompanying Consolidated Balance Sheets. Due to the transaction closing in the first quarter of fiscal 2025, the held for sale assets and liabilities were classified as current as of March 31, 2024. Our Consolidated Statements of Cash Flows include the financial results of the Dental segment for all periods presented. For additional information regarding this transaction and its effect on our financial reporting, refer to Note 4 titled, "Discontinued Operations" and Note 11 titled, "Business Segment Information." Use of Estimates We make certain estimates and assumptions when preparing financial statements according to U.S. GAAP that affect the reported amounts of assets and liabilities at the financial statement dates and the reported amounts of revenues and expenses during the periods presented. These estimates and assumptions involve judgments with respect to many factors that are difficult to predict and are beyond our control. Actual results could be materially different from these estimates. We revise the estimates and assumptions as new information becomes available. This means that operating results for the three month period ended June 30, 2024 are not necessarily indicative of results that may be expected for future quarters or for the full fiscal year ending March 31, 2025. Revenue Recognition and Associated Liabilities Revenue is recognized when obligations under the terms of the contract are satisfied and control of the promised products or services have transferred to the Customer. Revenues are measured at the amount of consideration that we expect to be paid in exchange for the products or services. Product revenue is recognized when control passes to the Customer, which is generally based on contract or shipping terms. Service revenue is recognized when the Customer benefits from the service, which occurs either upon completion of the service or as it is provided to the Customer. Our Customers include end users as well as dealers and distributors who market and sell our products. Our revenue is not contingent upon resale by the dealer or distributor, and we have no further obligations related to bringing about resale. Our standard return and restocking fee policies are applied to sales of products. Shipping and handling costs charged to Customers are included in Product revenues. The associated expenses are treated as fulfillment costs and are included in Cost of revenues. Revenues are reported net of sales and value-added taxes collected from Customers. We have individual Customer contracts that offer discounted pricing. Dealers and distributors may be offered sales incentives in the form of rebates. We reduce revenue for discounts and estimated returns, rebates, and other similar allowances in the same period the related revenues are recorded. The reduction in revenue for these items is estimated based on historical experience and trend analysis to the extent that it is probable that a significant reversal of revenue will not occur. Estimated returns are recorded gross on the Consolidated Balance Sheets. In transactions that contain multiple performance obligations, such as when products, maintenance services, and other services are combined, we recognize revenue as each product is delivered or service is provided to the Customer. We allocate the total arrangement consideration to each performance obligation based on its relative standalone selling price, which is the price for the product or service when it is sold separately. Payment terms vary by the type and location of the Customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not significant. We do not evaluate whether the selling price contains a financing component for contracts that have a duration of less than one year. We do not capitalize sales commissions as substantially all of our sales commission programs have an amortization period of one year or less. Certain costs to fulfill a contract are capitalized and amortized over the term of the contract if they are recoverable, directly related to a contract and generate resources that we will use to fulfill the contract in the future. At June 30, 2024, assets related to costs to fulfill a contract were not material to our consolidated financial statements. Refer to Note 11 titled, "Business Segment Information" for disaggregation of revenue. Product Revenues Product revenues consist of revenues generated from sales of consumables and capital equipment. These contracts are primarily based on a Customer’s purchase order and may include a Distributor, Dealer or Group Purchasing Organization ("GPO") agreement. We recognize revenue for sales of products when control passes to the Customer, which generally occurs either when the products are shipped or when they are received by the Customer. Revenue related to capital equipment products is deferred until installation is complete if the capital equipment and installation are highly integrated and form a single performance obligation. Service Revenues Within our Healthcare and Life Sciences segments, service revenues include revenue generated from parts and labor associated with the maintenance, repair and installation of capital equipment. These contracts are primarily based on a Customer’s purchase order and may include a Distributor, Dealer, or GPO agreement. For maintenance, repair and installation of capital equipment, revenue is recognized upon completion of the service. Healthcare service revenues also include outsourced reprocessing services and instrument repairs. Contracts for outsourced reprocessing services are primarily based on an agreement with a Customer, ranging in length from several months to 15 years. Outsourced reprocessing services revenue is recognized ratably over the contract term using a time-based input measure, adjusted for volume and other performance metrics, to the extent that it is probable that a significant reversal of revenue will not occur. Contracts for instrument repairs are primarily based on a Customer’s purchase order, and the associated revenue is recognized upon completion of the repair. We also offer preventive maintenance and separately priced extended warranty agreements to our Customers, which require us to maintain and repair products over the duration of the contract. Generally, these contract terms are cancellable without penalty and range from one to five years. Amounts received under these Customer contracts are initially recorded as a service liability and are recognized as service revenue ratably over the contract term using a time-based input measure. Within our AST segment, service revenues include contract sterilization and laboratory services. Sales contracts for contract sterilization and laboratory services are primarily based on a Customer’s purchase order and associated Customer agreement, and revenues are generally recognized upon completion of the service. Contract Liabilities Payments received from Customers are based on invoices or billing schedules as established in contracts with Customers. Deferred revenue is recorded when payment is received in advance of performance under the contract. Deferred revenue is recognized as revenue upon completion of the performance obligation, which generally occurs within one year. During the first three months of fiscal 2025, $45,996 of the March 31, 2024 deferred revenue balance was recorded as revenue. During the first three months of fiscal 2024, $42,300 of the March 31, 2023 deferred revenue balance was recorded as revenue. Refer to Note 8 titled, "Additional Consolidated Balance Sheet Information" for deferred revenue balances. Service Liabilities Payments received in advance of performance for cancellable preventive maintenance and separately priced extended warranty contracts are recorded as service liabilities. Service liabilities are recognized as revenue as performance is rendered under the contract. Refer to Note 8 titled, "Additional Consolidated Balance Sheet Information" for service liability balances. Remaining Performance Obligations Remaining performance obligations reflect only the performance obligations related to agreements for which we have a firm commitment from a Customer to purchase, and exclude variable consideration related to unsatisfied performance obligations. With regard to products, these remaining performance obligations include orders for capital equipment and consumables where control of the products has not passed to the customer. With regard to service, these remaining performance obligations primarily include installation, certification, and outsourced reprocessing services. As of June 30, 2024, the transaction price allocated to remaining performance obligations was approximately $1,499,543. We expect to recognize approximately 53% of the transaction price within one year and approximately 38% beyond one year. The remainder has yet to be scheduled for delivery. Recently Issued Accounting Standards Impacting the Company Recently Issued Accounting Standards Impacting the Company are presented in the following table: Standard Date of Issuance Description Date of Adoption Effect on the financial statements or other significant matters Standards that have not yet been adopted ASU 2023-07 "Segment Reporting (Topic 280) November 2023 The standard provides guidance to enhance disclosures related to reportable segment expenses, including requirements to disclose significant segment expenses that are regularly provided to the Chief Operating Decision Maker ("CODM"), the title and position of the CODM and a description of how the CODM uses the information to make decisions regarding the allocation of resources. The standard also requires disclosure of certain segment information currently required annually to be reported on an interim basis. The amendments in this standard are effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. NA We are currently assessing the impact of this standard update on our disclosures in the notes to the consolidated financial statements. ASU 2023-09 "Income Taxes (Topic 740) Improvements to Income Tax Disclosures." December 2023 The standard provides guidance to enhance disclosures related to income taxes paid (net of refunds), requiring disaggregation by federal, state, and foreign, and disclosure of income taxes paid (net of refunds received) by individual jurisdictions that represent greater than 5% of the total. The standard also requires disclosure of income (loss) from continuing operations before income taxes, disaggregated between domestic and foreign, and income tax expense (or benefit) disaggregated by federal, state, and foreign. Finally, the standard removes the requirement for certain disclosures related to changes in unrecognized tax benefits and certain amounts of temporary differences. The amendments in this standard are effective for annual periods beginning after December 15, 2024. NA We are currently assessing the impact of this standard update on our disclosures in the notes to the consolidated financial statements. A detailed description of our significant and critical accounting policies, estimates, and assumptions is included in our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2024, which was filed with the SEC on May 29, 2024. Our significant and critical accounting policies, estimates, and assumptions have not changed materially from March 31, 2024. |
Restructuring
Restructuring | 3 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 2. Restructuring In May 2024, we adopted and announced a targeted restructuring plan (the "Restructuring Plan"). This plan includes a strategic shift in our approach to the Healthcare surgical business in Europe, as well as other actions including the impairment of an internally developed X-ray accelerator, product rationalizations and facility consolidations. Fewer than 300 positions are being eliminated. These restructuring actions are designed to enhance profitability and improve efficiency, and we expect these actions to be substantially complete by the end of fiscal 2025. The following tables summarize our total pre-tax restructuring expenses recorded in fiscal 2025 related to the Restructuring Plan: Three Months Ended June 30, 2024 Restructuring Plan Severance and other compensation related costs $ 21,480 Lease and other contract termination costs 2,970 Product rationalization (1) 2,382 Accelerated depreciation and amortization 1,250 Total Restructuring Expense $ 28,082 (1) Recorded in Cost of revenues on the Consolidated Statements of Income. The Restructuring Plan expenses incurred during the three months ended June 30, 2024 primarily related to actions taken within our Healthcare segment. Total pre-tax restructuring expense of $72,472 has been recorded relating to the Restructuring Plan since inception, of which $20,702 has been recorded in Cost of revenues. We expect to incur additional costs through the remainder of fiscal 2025 for severance and other compensation related costs and lease and other contract termination and other costs, of approximately $28,000. Liabilities related to restructuring activities are recorded as current liabilities in the accompanying Consolidated Balance Sheets within "Accrued payroll and other related liabilities" and "Accrued expenses and other." The following table summarizes our restructuring liability balances: Restructuring Plan Balance at March 31, 2024 $ 678 Fiscal 2025 Charges 24,450 Payments (3,753) Balance at June 30, 2024 $ 21,375 |
Business Acquisitions and Dives
Business Acquisitions and Divestitures | 3 Months Ended |
Jun. 30, 2024 | |
Business Acquisitions and Divestitures [Abstract] | |
Business Combination Disclosure | 3. Business Acquisitions and Divestitures Acquisitions During the first three months of fiscal 2025, we completed several tuck-in acquisitions, which continued to expand our product and service offerings in the Healthcare and AST segments. Total aggregate consideration was approximately $13,659 . On June 20, 2023, we entered into a definitive agreement to purchase the surgical instrumentation, laparoscopic instrumentation and sterilization container assets from Becton, Dickinson and Company (NYSE: BDX) ("BD"). The transaction was completed on August 2, 2023, and t he acquired assets from BD were integrated into our Healthcare segment. The purchase price of the BD acquisition was $539,758. The acquisition also qualified for a tax benefit related to tax deductible goodwill, with a present value of approximately $60,000. The purchase price of the acquisition was financed with borrowings from our existing Revolving Credit Facility. For more information, refer to Note 7 titled, " Debt." The table below summarizes the allocation of the purchase price to the net assets acquired from BD based on fair values at the acquisition date. September 30, 2023 Adjustments (2) Final Inventory 27,006 4,821 31,827 Property, plant, and equipment 6,755 1,109 7,864 Lease right-of-use assets, net — 1,737 1,737 Intangible assets (1) 303,598 (598) 303,000 Goodwill 202,399 (5,332) 197,067 Total assets acquired 539,758 1,737 541,495 Lease obligations — 1,737 1,737 Total liabilities assumed — 1,737 1,737 Net assets acquired $ 539,758 $ — $ 539,758 (1) Includes estimated fair values of $238,000 for Customer relationships ( 13 years estimated useful life), $50,000 for Patents and technology ( 13 years estimated useful life), and $15,000 for Trademarks and tradenames ( 15 years estimated useful life) as of June 30, 2024. (2) No additional adjustments made during the first three months of fiscal 2025. Acquisition and integration expenses totaled $2,254 and $2,237 for the three months ended June 30, 2024 and 2023, respectively. Acquisition and integration expenses are reported in the Selling, general and administrative expenses line of our Consolidated Statements of Income and include, but are not limited to, investment banker, advisory, legal and other professional fees, and certain employee-related expenses. Divestitures On April 11, 2024, the Company announced its plan to sell its Dental segment for total cash consideration of $787,500, subject to customary adjustments, and up to an additional $12,500 in contingent payment should the Dental business achieve certain revenue targets in fiscal 2025. The transaction was structured as an equity sale and closed on May 31, 2024. The disposal of the Dental segment met the criteria to be presented as a discontinued operation. For more information refer to Note 4 titled "Discontinued Operations." On April 1, 2024, we completed the sale of the Controlled Environment Certification Services business. We recorded net proceeds of $41,546 and recognized a pre-tax gain on the sale of $18,803 in the first quarter of fiscal 2025. The business generated approximately $35,000 in revenues in fiscal 2024. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 4. Discontinued Operations On April 11, 2024, the Company announced its plan to sell substantially all of the net assets of its Dental segment for total cash consideration of $787,500, subject to customary adjustments, and up to an additional $12,500 in contingent payment should the Dental business achieve certain revenue targets in fiscal 2025. The transaction was structured as an equity sale and closed on May 31, 2024. A component of an entity is reported in discontinued operations after meeting the criteria for held for sale classification if the disposition represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results. We analyzed the quantitative and qualitative factors relevant to the divestiture of our Dental segment and determined that those conditions for discontinued operations presentation had been met prior to March 31, 2024. The Dental segment results of operations were reclassified to income (loss) from discontinued operations in the Consolidated Statements of Income for all periods presented, and we classified the Dental segment's assets and liabilities as held for sale as of March 31, 2024 in the accompanying Consolidated Balance Sheets. Due to the transaction closing in the first quarter of fiscal 2025, the held for sale assets and liabilities were classified as current as of March 31, 2024. Our Consolidated Statements of Cash Flows include the financial results of the Dental segment for all periods presented. A majority of the proceeds received from the sale were utilized to pay off existing debt. The following table summarizes the major classes of assets and liabilities of the Dental business segment that were classified as held for sale in the Consolidated Balance Sheets as of March 31, 2024: March 31, Assets Assets held-for-sale: Accounts receivable, net $ 48,590 Inventories, net 89,345 Property, plant, and equipment, net 73,395 Lease right-of-use assets, net 22,822 Intangibles, net 770,731 Prepaid expenses and other assets 2,953 Loss accrued on classification as held for sale (202,932) Total assets held-for-sale $ 804,904 Liabilities Liabilities held-for-sale: Accounts payable $ 10,580 Accrued income taxes 433 Accrued payroll and other related liabilities 13,683 Lease obligations 23,722 Accrued expenses and other 15,594 Total liabilities held-for-sale $ 64,012 The following table summarizes the major line items constituting pre-tax income of discontinued operations associated with the Dental segment for the three months ending June 30, 2024 and 2023: Three Months Ended June 30, 2024 2023 Revenues: Product $ 63,936 $ 101,156 Cost of revenues: Product 35,146 56,699 Gross profit: 28,790 44,457 Operating expenses: Selling, general, and administrative 13,466 52,528 Research and development 369 808 Income (loss) from operations (1) 14,955 (8,879) Non-operating expenses (income), net 1 (12) Pre-tax loss on sale (7,843) — Income (loss) before income tax expense 7,111 (8,867) Income tax expense (benefit) 1,519 (2,076) Income (loss) from discontinued operations, net of income tax 5,592 (6,791) (1) Income from operations for the three month period ended June 30, 2024 includes two months of operating results prior to the transaction close on May 31, 2024 and excludes depreciation and amortization of property, plant, equipment, and intangible assets subsequent to the held for sale classification as of March 2, 2024. The effective income tax rates for the three month periods ending June 30, 2024 and 2023 from discontinued operations were 21.4% and 23.4%, respectively. Significant non-cash operating items and capital expenditures related to discontinued operations are reflected in the statement of cash flows as follows: Three Months Ended June 30, 2024 2023 Operating activities of discontinued operations: Depreciation, depletion, and amortization $ — $ 30,744 Investing activities of discontinued operations: Purchases of property, plant, equipment, and intangibles, net $ (433) $ (2,129) |
Inventories, Net (Notes)
Inventories, Net (Notes) | 3 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | 5. Inventories, Net Inventories are stated at the lower of their cost and net realizable value determined by the first-in, first-out (“FIFO”) cost method. Inventory costs include material, labor, and overhead . Inventories, net consisted of the following: June 30, March 31, Raw materials $ 257,023 $ 245,942 Work in process 111,297 98,304 Finished goods 372,330 374,182 Reserve for excess and obsolete inventory (42,063) (43,893) Inventories, net $ 698,587 $ 674,535 |
Property, Plant and Equipment (
Property, Plant and Equipment (Notes) | 3 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 6. Property, Plant, and Equipment Information related to the major categories of our depreciable assets is as follows: June 30, March 31, Land and land improvements (1) $ 99,000 $ 90,134 Buildings and leasehold improvements 755,596 724,492 Machinery and equipment 1,105,315 1,075,082 Information systems 256,637 256,671 Radioisotope 700,397 692,642 Construction in progress (1) 522,825 500,106 Total property, plant, and equipment 3,439,770 3,339,127 Less: accumulated depreciation and depletion (1,605,554) (1,573,947) Property, plant, and equipment, net $ 1,834,216 $ 1,765,180 (1) Land is not depreciated. Construction in progress is not depreciated until placed in service. |
Debt (Notes)
Debt (Notes) | 3 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt Indebtedness was as follows: June 30, March 31, Short-term debt Term loan, current portion $ — $ 41,250 Delayed draw term loan, current portion — 44,688 Private Placement Senior Notes 80,000 — Total short-term debt $ 80,000 $ 85,938 Long-term debt Private Placement Senior Notes $ 670,751 $ 751,433 Revolving Credit Facility 231,278 484,529 Deferred financing costs (16,428) (17,988) Term loan — 3,750 Delayed draw term loan — 548,438 Senior Public Notes 1,350,000 1,350,000 Total long-term debt $ 2,235,601 $ 3,120,162 Total debt $ 2,315,601 $ 3,206,100 Additional information regarding our indebtedness is included in the notes to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2024, which was filed with the SEC on |
Additional Consolidated Balance
Additional Consolidated Balance Sheets Information (Notes) | 3 Months Ended |
Jun. 30, 2024 | |
Notes To Financial Statements [Abstract] | |
Additional Consolidated Balance Sheets Information | 8. Additional Consolidated Balance Sheet Information Additional information related to our Consolidated Balance Sheets is as follows: June 30, March 31, Accrued payroll and other related liabilities: Compensation and related items $ 85,059 $ 48,152 Accrued vacation/paid time off 17,078 16,140 Accrued bonuses 28,484 61,669 Accrued employee commissions 15,666 35,980 Other postretirement benefit obligations-current portion 994 994 Other employee benefit plans obligations-current portion 2,091 1,896 Total accrued payroll and other related liabilities $ 149,372 $ 164,831 Accrued expenses and other: Deferred revenues $ 69,323 $ 70,460 Service liabilities 94,301 92,590 Self-insured risk reserves-current portion 17,431 13,303 Accrued dealer commissions 32,934 33,277 Accrued warranty 14,570 15,388 Asset retirement obligation-current portion 507 510 Accrued interest 18,007 11,109 Other 39,490 83,107 Total accrued expenses and other $ 286,563 $ 319,744 Other liabilities: Self-insured risk reserves-long-term portion $ 21,647 $ 21,646 Other postretirement benefit obligations-long-term portion 5,428 5,159 Defined benefit pension plans obligations-long-term portion 3,024 2,727 Other employee benefit plans obligations-long-term portion 1,314 1,321 Accrued long-term income taxes 6,427 6,508 Asset retirement obligation-long-term portion 13,249 13,148 Other 21,279 21,037 Total other liabilities $ 72,368 $ 71,546 |
Income Tax Expense (Notes)
Income Tax Expense (Notes) | 3 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | 9. Income Taxes Our effective tax rate is affected by (i) the tax rates in Ireland (our country of domicile), the United States, and other jurisdictions in which we operate, and (ii) the relative amount of income before income taxes by geography. The effective income tax rates for the three month periods ended June 30, 2024 and 2023 from continuing operations were 20.1% and 21.7%, respectively. The fiscal 2025 effective tax rate decreased when compared to fiscal 2024, primarily due to changes in geographic mix of projected profits and an increase in favorable discrete items. Income tax expense is provided on an interim basis based upon our estimate of the annual effective income tax rate, adjusted each quarter for discrete items. In determining the estimated annual effective income tax rate, we analyze various factors, including projections of our annual earnings and taxing jurisdictions in which the earnings will be generated, the impact of state and local income taxes, our ability to use tax credits and net operating loss carry forwards, and available tax planning alternatives. We operate in numerous taxing jurisdictions and are subject to regular examinations by various United States federal, state and local, as well as foreign jurisdictions. We are no longer subject to United States federal examinations for years before fiscal 2018 and, with limited exceptions, we are no longer subject to United States state and local, or non-United States, income tax examinations by tax authorities for years before fiscal 2018. We remain subject to tax authority audits in various jurisdictions wherever we do business. In the fourth quarter of fiscal 2021, we completed an appeals process with the U.S. Internal Revenue Service (the “IRS”) regarding proposed audit adjustments related to deductibility of interest paid on intercompany debt for fiscal years 2016 through 2017. An agreement was reached on final interest rates, which also impacted subsequent years through 2020. The total federal, state, and local tax impact of the settlement including interest is approximately $12,000 for the fiscal years 2016 through 2020, materially all of which has been paid through June 30, 2024. |
Contingencies (Notes)
Contingencies (Notes) | 3 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 10. Commitments and Contingencies We are, and will likely continue to be, involved in a number of legal proceedings, government investigations, and claims, which we believe generally arise in the course of our business, given our size, history, complexity, and the nature of our business, products, Customers, regulatory environment, and industries in which we participate. These legal proceedings, investigations and claims generally involve a variety of legal theories and allegations, including, without limitation, personal injury (e.g., slip and falls, burns, vehicle accidents), product liability or regulation (e.g., based on product operation or claimed malfunction, failure to warn, failure to meet specification, or failure to comply with regulatory requirements), product exposure (e.g., claimed exposure to chemicals, gases, asbestos, contaminants, radiation), property damage (e.g., claimed damage due to leaking equipment, fire, vehicles, chemicals), commercial claims (e.g., breach of contract, economic loss, warranty, misrepresentation), financial (e.g., taxes, reporting), employment (e.g., wrongful termination, discrimination, benefits matters), and other claims for damage and relief. We believe we have adequately reserved for our current litigation and claims that are probable and estimable, and further believe that the ultimate outcome of these pending lawsuits and claims will not have a material adverse effect on our consolidated financial position or results of operations taken as a whole. Due to their inherent uncertainty, however, there can be no assurance of the ultimate outcome or effect of current or future litigation, investigations, claims or other proceedings (including without limitation the matters discussed below). For certain types of claims, we presently maintain insurance coverage for personal injury and property damage and other liability coverages in amounts and with deductibles that we believe are prudent, but there can be no assurance that these coverages will be applicable or adequate to cover adverse outcomes of claims or legal proceedings against us. Civil, criminal, regulatory or other proceedings involving our products or services could possibly result in judgments, settlements or administrative or judicial decrees requiring us, among other actions, to pay damages or fines or effect recalls, or be subject to other governmental, Customer or other third party claims or remedies, which could materially affect our business, performance, prospects, value, financial condition, and results of operations. For additional information regarding these matters, see the following portions of our Annual Report on Form 10-K for the year ended March 31, 2024, which was filed with the SEC on May 29, 2024, Item 1 titled "Business - Information with respect to our Business in General - Government Regulation" and the "Risk Factors" in Item 1A titled "Product and service related regulations and claims." From time to time, STERIS is also involved in legal proceedings as a plaintiff involving contract, patent protection, and other claims asserted by us. Gains, if any, from these proceedings are recognized when they are realized. We are subject to taxation from United States federal, state and local, and foreign jurisdictions. Tax positions are settled primarily through the completion of audits within each individual jurisdiction or the closing of statutes of limitation. Changes in applicable tax law or other events may also require us to revise past estimates. We describe income taxes further in Note 9 to our consolidated financial statements titled, “Income Taxes” in this Quarterly Report on Form 10-Q. |
Business Segment Information (N
Business Segment Information (Notes) | 3 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Business Segment Information | 11. Business Segment Information We operate and report our financial information in three reportable business segments: Healthcare, AST, and Life Sciences. Previously, we had four reportable business segments, however, as a result of the divestiture of our Dental segment, Dental is presented as discontinued operations. Historical information has been retrospectively adjusted to reflect these changes for comparability, as required. For more information, refer to Note 4 titled, "Discontinued Operations." Non-allocated operating costs that support the entire Company and items not indicative of operating trends are excluded from segment operating income. Our Healthcare segment provides a comprehensive offering for healthcare providers worldwide, focused on sterile processing departments and procedural centers, such as operating rooms and endoscopy suites. Our products and services range from infection prevention consumables and capital equipment, as well as services to maintain that equipment; to the repair of re-usable procedural instruments; to outsourced instrument reprocessing services. In addition, our procedural solutions also include endoscopy accessories, instruments, and capital equipment infrastructure used primarily in operating rooms, ambulatory surgery centers, endoscopy suites, and other procedural areas. Our AST segment supports medical device and pharmaceutical manufacturers through a global network of contract sterilization and laboratory testing facilities, and integrated sterilization equipment and control systems. Our technology-neutral offering supports Customers every step of the way, from testing through sterilization. Our Life Sciences segment provides a comprehensive offering of products and services designed to support biopharmaceutical and medical device research and manufacturing facilities, in particular those focused on aseptic manufacturing. Our portfolio includes a full suite of capital equipment, consumable products, equipment maintenance and specialty services. We d isclose a measure of segment income that is consistent with the way management operates and views the business. The accounting policies for reportable segments are the same as those for the consolidated Company. For the three months e nded June 30, 2024 and 2023 , revenues from a single Customer did not represent ten percent or more of the Healthcare, AST or Life Sciences segment revenues. A dditional information regarding our segments is included in our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2024, which was filed with the SEC on May 29, 2024. Financial information for each of our segments is presented in the following table: Three Months Ended June 30, 2024 2023 Revenues: Healthcare $ 901,221 $ 818,874 AST 249,803 233,099 Life Sciences 128,478 131,413 Total revenues $ 1,279,502 $ 1,183,386 Operating income (loss): Healthcare $ 216,887 $ 198,182 AST 117,714 109,590 Life Sciences 52,584 49,841 Corporate (101,748) (91,873) Total operating income $ 285,437 $ 265,740 Less: Adjustments Amortization of acquired intangible assets (1) $ 67,661 $ 64,092 Acquisition and integration related charges (2) 2,254 2,237 Tax restructuring costs (3) 518 9 Amortization of inventory and property "step up" to fair value (1) 1,391 1,622 Restructuring charges (4) 28,082 19 Income from operations $ 185,531 $ 197,761 (1) For more information regarding our recent acquisitions and divestitures, refer to Note 3 titled, "Business Acquisitions and Divestitures." (2) Acquisition and integration related charges include transaction costs and integration expenses associated with acquisitions. (3) Costs incurred in tax restructuring. (4) For more information regarding our restructuring efforts, refer to Note 2 titled, "Restructuring ." Additional information regarding our fiscal 2025 and fiscal 2024 revenue is disclosed in the following tables: Three Months Ended June 30, 2024 2023 Healthcare: Capital equipment $ 214,639 $ 238,099 Consumables 343,354 280,281 Service 343,228 300,494 Total Healthcare Revenues $ 901,221 $ 818,874 AST: Capital equipment $ 1,088 $ 874 Service 248,715 232,225 Total AST Revenues $ 249,803 $ 233,099 Life Sciences: Capital equipment $ 26,476 $ 30,991 Consumables 69,818 61,698 Service 32,184 38,724 Total Life Sciences Revenues $ 128,478 $ 131,413 Total Revenues $ 1,279,502 $ 1,183,386 Three Months Ended June 30, 2024 2023 Revenues: Ireland $ 22,194 $ 20,036 United States 946,890 855,788 Other locations 310,418 307,562 Total Revenues $ 1,279,502 $ 1,183,386 |
Shares and Preferred Shares (No
Shares and Preferred Shares (Notes) | 3 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 12. Shares and Preferred Shares Ordinary shares We calculate basic earnings per share based upon the weighted average number of shares outstanding. We calculate diluted earnings per share based upon the weighted average number of shares outstanding plus the dilutive effect of share equivalents calculated using the treasury stock method. Income from continuing operations is used as the benchmark to determine whether share equivalents are dilutive or anti-dilutive. Earnings per share is calculated independently for earnings per share from continuing operations and earnings per share from discontinued operations. The sum of earnings per share from continuing operations and earnings per share from discontinued operations may not equal total company earnings per share due to rounding. The following is a summary of shares and share equivalents outstanding used in the calculations of basic and diluted earnings per share: Three Months Ended June 30, Denominator (shares in thousands): 2024 2023 Weighted average shares outstanding—basic 98,869 98,708 Dilutive effect of share equivalents 507 531 Weighted average shares outstanding and share equivalents—diluted 99,376 99,239 Options to purchase the following number of shares were outstanding but excluded from the computation of diluted earnings per share because the combined exercise prices, unamortized fair values, and assumed tax benefits upon exercise were greater than the average market price for the shares during the periods, so including these options would be anti-dilutive: Three Months Ended June 30, (shares in thousands) 2024 2023 Number of share options 665 668 Additional Authorized Shares The Company has an additional authorized share capital of 50,000,000 preferred shares of $0.001 par value each, plus 25,000 deferred ordinary shares of €1.00 par value each, in order to satisfy minimum statutory capital requirements for all Irish public limited companies. |
Equity
Equity | 3 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Treasury Stock | 13. Repurchases of Ordinary Shares On May 3, 2023 our Board of Directors terminated the previous share repurchase program and authorized a new share repurchase program for the purchase of up to $500,000 (net of taxes, fees and commissions). As of June 30, 2024, there was $443,876 (net of taxes, fees and commissions) of remaining availability under the Board authorized share repurchase program. The share repurchase program has no specified expiration date. Under the repurchase program, the Company may repurchase its shares from time to time through open market purchases, including 10b5-1 plans. Any share repurchases may be activated, suspended or discontinued at any time. During the first three months of fiscal 2025, we repurchased 251,507 of our ordinary shares for the aggregate amount of $56,124 (net of fees and commissions) pursuant to authorizations, under the share repurchase program. During the first three months of fiscal 2024, we had no share repurchase activity. During the first three months of fiscal 2025, we obtained 69,780 of our ordinary shares in the aggregate amount of $10,256 in connection with share-based compensation award programs. During the first three months of fiscal 2024, we obtained 51,494 of our ordinary shares in the aggregate amount of $8,724 in connection with share-based compensation award programs. |
Share-Based Compensation (Notes
Share-Based Compensation (Notes) | 3 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | 14. Share-Based Compensation We maintain a long-term incentive plan that makes available shares for grants, at the discretion of the Board of Directors or Compensation and Organizational Development Committee of the Board of Directors, to officers, directors, and key employees in the form of stock options, restricted shares, restricted share units, stock appreciation rights and share grants. We satisfy share award incentives through the issuance of new ordinary shares. Stock option awards to employees generally vest and become nonforfeitable in increments of 25% per year over a four-year period, with full vesting four years after the date of grant. Historically, restricted stock awards to employee recipients generally cliff vested on the fourth anniversary of the grant date if the recipient remained in continuous employment through that date. Beginning with fiscal 2024 grants, Company restricted stock (and restricted stock units) generally cliff vest over a three year period after the grant date. However, employees who are grantees of restricted stock and have attained age 55 and been employed for at least five years at the time of the grant or meet these criteria during the term of the grant and are employed in the U.S. or in a few other foreign jurisdictions, or employees who have 25 years of service at the time of grant or meet that criterion during the term of the grant, will be subject to installment vesting rules over the applicable vesting period. Awards to certain employees in the U.S. or a few other jurisdictions may provide for continued vesting after “retirement,” if certain conditions are met. As of June 30, 2024, 2,028,765 ordinary shares remained available for grant under the long-term incentive plan. The fair value of share-based stock option compensation awards was estimated at their grant date using the Black-Scholes-Merton option pricing model. This model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable, characteristics that are not present in our option grants. If the model permitted consideration of the unique characteristics of employee stock options, the resulting estimate of the fair value of the stock options could be different. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our Consolidated Statements of Income. The expense is classified as Cost of revenues or Selling, general, and administrative expenses in a manner consistent with the employee’s compensation and benefits. The following weighted average assumptions were used for options granted during the first three months of fiscal 2025 and 2024: Fiscal 2025 Fiscal 2024 Risk-free interest rate 4.20 % 3.57 % Expected life of options 6.0 years 5.9 years Expected dividend yield of stock 0.94 % 1.08 % Expected volatility of stock 28.47 % 27.98 % The risk-free interest rate is based upon the U.S. Treasury yield curve. The expected life of options is reflective of historical experience, vesting schedules and contractual terms. The expected dividend yield of stock represents our best estimate of the expected future dividend yield. The expected volatility of stock is derived by referring to our historical stock prices over a time frame similar to that of the expected life of the grant. An estimated forfeiture rate of 2.07% and 2.22% was applied in fiscal 2025 and 2024, respectively. This rate is calculated based upon historical activity and represents an estimate of the granted options not expected to vest. If actual forfeitures differ from this calculated rate, we may be required to make additional adjustments to compensation expense in future periods. The assumptions used above are reviewed at the time of each significant option grant, or at least annually. A summary of share option activity is as follows: Number of Weighted Average Aggregate Outstanding at March 31, 2024 1,869,871 $ 168.22 Granted 206,432 251.35 Exercised (81,378) 81.57 Forfeited (654) 219.97 Expired (512) 250.06 Outstanding at June 30, 2024 1,993,759 $ 180.32 6.3 years $ 92,209 Exercisable at June 30, 2024 1,418,051 $ 157.46 5.3 years $ 91,771 We estimate that 559,526 of the non-vested stock options outstanding at June 30, 2024 will ultimately vest. The aggregate intrinsic value in the table above represents the total pre-tax difference between the $219.54 closing price of our ordinary shares on June 30, 2024 over the exercise prices of the stock options, multiplied by the number of options outstanding or outstanding and exercisable, as applicable. The aggregate intrinsic value is not recorded for financial accounting purposes and the value changes daily based on the daily changes in the fair market value of our ordinary shares. The total intrinsic value of stock options exercised during the first three months of fiscal 2025 and fiscal 2024 was $12,372 and $4,831, respectively. Net cash proceeds from the exercise of stock options were $5,587 and $1,254 for the first three months of fiscal 2025 and fiscal 2024, respectively. The weighted average grant date fair value of stock option grants was $66.87 and $53.45 for the first three months of fiscal 2025 and fiscal 2024, respectively. A summary of the non-vested restricted share and share unit activity is presented below: Number of Number of Restricted Share Units Weighted Average Non-vested at March 31, 2024 463,381 28,348 $ 200.04 Granted 151,638 9,855 228.50 Vested (124,462) (4,923) 183.06 Forfeited (24,655) (1,339) 205.12 Non-vested at June 30, 2024 465,902 31,941 $ 213.46 Restricted shares and restricted share unit grants are valued based on the closing stock price at the grant date. The value of restricted shares and units that vested during the first three months of fiscal 2025 at the time of grant was $23,694. As of June 30, 2024, there was a total of $93,968 in unrecognized compensation cost related to non-vested share-based compensation granted under our share-based compensation plans. We expect to recognize the cost over a weighted average period of 1.8 years. |
Financial and Other Guarantees(
Financial and Other Guarantees(Notes) | 3 Months Ended |
Jun. 30, 2024 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty Disclosure | 15. Financial and Other Guarantees We generally offer a limited parts and labor warranty on capital equipment. The specific terms and conditions of those warranties vary depending on the product sold and the countries where we conduct business. We record a liability for the estimated cost of product warranties at the time product revenues are recognized. The amounts we expect to incur on behalf of our Customers for the future estimated cost of these warranties are recorded as a current liability on the accompanying Consolidated Balance Sheets. Factors that affect the amount of our warranty liability include the number and type of installed units, historical and anticipated rates of product failures, and material and service costs per claim. We periodically assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. Changes in our warranty liability during the first three months of fiscal 2025 were as follows: Warranties Balance at March 31, 2024 $ 15,388 Warranties issued during the period 3,456 Settlements made during the period (4,274) Balance at June 30, 2024 $ 14,570 |
Deritvatives and Hedging (Notes
Deritvatives and Hedging (Notes) | 3 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | 16. Derivatives and Hedging From time to time, we enter into forward contracts to hedge potential foreign currency gains and losses that arise from transactions denominated in foreign currencies, including intercompany transactions. We may also enter into commodity swap contracts to hedge price changes in nickel that impact raw materials included in our Cost of revenues. During the first quarter of fiscal 2025, we also held forward foreign currency contracts to hedge a portion of our expected non-U.S. dollar-denominated earnings against our reporting currency, the U.S. dollar. These foreign currency exchange contracts will mature in fiscal 2025. We did not elect hedge accounting for these forward foreign currency contracts; however, we may seek to apply hedge accounting in future scenarios. We do not use derivative financial instruments for speculative purposes. These contracts are not designated as hedging instruments and do not receive hedge accounting treatment; therefore, changes in their fair value are not deferred but are recognized immediately in the Consolidated Statements of Income. At June 30, 2024, we held net foreign currency forward contracts to buy 50.0 million British pounds sterling; and to sell 100.0 million Mexican pesos, 25.0 million Canadian dollars, 18.2 million euros, and 15.0 million Australian dollars. At June 30, 2024, we held commodity swap contracts to buy 591.8 thousand pounds of nickel. Asset Derivatives Liability Derivatives Fair Value at Fair Value at Fair Value at Fair Value at Balance sheet location June 30, 2024 March 31, 2024 June 30, 2024 March 31, 2024 Prepaid & other $ 389 $ 208 $ — $ — Accrued expenses and other $ — $ — $ 427 $ 1,014 The following table presents the impact of derivative instruments and their location within the Consolidated Statements of Income: Location of gain (loss) Amount of gain (loss) recognized in income Three Months Ended June 30, 2024 2023 Foreign currency forward contracts Selling, general and administrative $ 386 $ 1,458 Commodity swap contracts Cost of revenues $ 241 $ (1,034) |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 3 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 17. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. We estimate the fair value of financial assets and liabilities using available market information and generally accepted valuation methodologies. The inputs used to measure fair value are classified into three tiers. These tiers include Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring the entity to develop its own assumptions. The following table shows the fair value of our financial assets and liabilities at June 30, 2024 and March 31, 2024: Fair Value Measurements Carrying Value Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 June 30, March 31, June 30, March 31, June 30, March 31, June 30, March 31, Assets: Cash and cash equivalents $ 198,328 $ 207,020 $ 198,328 $ 207,020 $ — $ — $ — $ — Forward and swap contracts (1) 389 208 — — 389 208 — — Equity investments (2) 4,816 4,767 4,816 4,767 — — — — Other investments 2,880 2,902 2,880 2,902 — — — — Liabilities: Forward and swap contracts (1) $ 427 $ 1,014 $ — $ — $ 427 $ 1,014 $ — $ — Deferred compensation plans (2) 1,175 1,186 1,175 1,186 — — — — Debt (3) 2,315,601 3,206,100 — — 2,001,665 2,895,784 — — Contingent consideration obligations (4) 11,204 11,000 — — — — 11,204 11,000 (1) The fair values of forward and swap contracts are based on period-end forward rates and reflect the value of the amount that we would pay or receive for the contracts involving the same notional amounts and maturity dates. (2) We maintain a frozen domestic non-qualified deferred compensation plan covering certain employees, which allowed for the deferral of payment of previously earned compensation for an employee-specified term or until retirement or termination. Amounts deferred can be allocated to various hypothetical investment options (compensation deferrals have been frozen under the plan). We hold investments to satisfy the future obligations of the plan. Employees who made deferrals are entitled to receive distributions of their hypothetical account balances (amounts deferred, together with earnings (losses)). Changes in the fair value of these investments are recorded in the "Interest and miscellaneous income" line of the Consolidated Statement of Income. During the first three months of fiscal 2025 and 2024, we recorded gains of $53 and $73, respectively, related to these investments. (3) We estimate the fair value of our debt using discounted cash flow analyses, based on estimated current incremental borrowing rates for similar types of borrowing arrangement s. The fair values of our Senior Public Notes are estimated using quoted market prices for the Senior Public Notes. (4) Contingent consideration obligations arise from prior business acquisitions. The fair values are based on discounted cash flow analyses reflecting the possible achievement of specified performance measures or events and captures the contractual nature of the contingencies, commercial risk, and the time value of money. Contingent consideration obligations are classified in the consolidated balance sheets as accrued expense (short-term) and other liabilities (long-term), as appropriate based on the contractual payment dates. The changes in Level 3 assets and liabilities measured at fair value on a recurring basis at June 30, 2024 are summarized as follows: Contingent Consideration Balance at March 31, 2024 $ 11,000 Additions 223 Payments (19) Balance at June 30, 2024 $ 11,204 |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Notes) | 3 Months Ended |
Jun. 30, 2024 | |
Reclassifications out of AOCI [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | 18. Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amounts in Accumulated Other Comprehensive Income (Loss) are presented net of the related tax. Currency Translation is not adjusted for income taxes. Changes in our Accumulated Other Comprehensive Income (Loss) balances, net of tax, for the three months ended June 30, 2024 and 2023 were as follows: Defined Benefit Plans (1) Currency Translation (2) Total Accumulated Other Comprehensive Loss Balance at March 31, 2024 $ (724) $ (327,933) $ (328,657) Other Comprehensive (Loss) Income before reclassifications (91) 5,751 5,660 Amounts reclassified from Accumulated Other Comprehensive Loss (73) — (73) Net current-period Other Comprehensive (Loss) Income (164) 5,751 5,587 Balance at June 30, 2024 $ (888) $ (322,182) $ (323,070) (1) The amortization (gain) of defined benefit pension items is reported in the Interest and miscellaneous (income) expense line of our Consolidated Statements of Income. (2) The effective portion of gain or loss on net debt designated as non-derivative net investment hedging instruments is recognized in Accumulated Other Comprehensive Income and is reclassified to income in the same period when a gain or loss related to the net investment is included in income. Defined Benefit Plans (1) Currency Translation (2) Total Accumulated Other Comprehensive Loss Balance at March 31, 2023 $ 12 $ (320,722) $ (320,710) Other Comprehensive Income before reclassifications 418 9,793 10,211 Amounts reclassified from Accumulated Other Comprehensive Loss (360) — (360) Net current-period Other Comprehensive Income 58 9,793 9,851 Balance at June 30, 2023 $ 70 $ (310,929) $ (310,859) 1) The amortization (gain) of defined benefit pension items is reported in the Interest and miscellaneous (income) expense line of our Consolidated Statements of Income. (2) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) Attributable to Parent | $ 145,401 | $ 123,554 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Daniel A. Carestio [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On June 6, 2024, Daniel A. Carestio, President and Chief Executive Officer of the Company, adopted a trading arrangement for the sale of the Company’s ordinary shares that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Securities Exchange Act of 1934, as amended (the “Exchange Act” and such plan, a “Rule 10b5-1 Trading Plan”). Mr. Carestio’s Rule 10b5-1 Trading Plan, which expires June 5, 2026, provides for the sale of up to 62,021 ordinary shares pursuant to the terms of such plan. The actual number of ordinary shares available to be sold under the Rule 10b5-1 Trading Plan for ordinary shares subject to unvested awards will be calculated at the time of vesting of such equity awards after withholding to satisfy tax obligations. |
Name | Daniel A. Carestio |
Title | President and Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | June 6, 2024 |
Arrangement Duration | 729 days |
Aggregate Available | 62,021 |
Michael J. Tokich [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On May 15, 2024, Michael J. Tokich, Senior Vice President and Chief Financial Officer of the Company, adopted a Rule 10b5-1 Trading Plan. Mr. Tokich’s Rule 10b5-1 Trading Plan, which expires June 12, 2026, provides for the sale of up to 46,664 ordinary shares pursuant to the terms of such plan. |
Name | Michael J. Tokich |
Title | Senior Vice President and Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | May 15, 2024 |
Arrangement Duration | 758 days |
Aggregate Available | 46,664 |
J. Adam Zangerle [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On May 15, 2024, J. Adam Zangerle, Senior Vice President, General Counsel, and Company Secretary of the Company, adopted a Rule 10b5-1 Trading Plan. Mr. Zangerle’s Rule 10b5-1 Trading Plan, which expires November 1, 2025, provides for the sale of up to 17,822 ordinary shares pursuant to the terms of such plan. The actual number of ordinary shares available to be sold under the Rule 10b5-1 Trading Plan for ordinary shares subject to unvested awards will be calculated at the time of vesting of such equity awards after withholding to satisfy tax obligations. |
Name | J. Adam Zangerle |
Title | Senior Vice President, General Counsel, and Company Secretary of the Company |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | May 15, 2024 |
Arrangement Duration | 535 days |
Aggregate Available | 17,822 |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation We use the consolidation method to report our investment in our subsidiaries. Therefore, the accompanying consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. We eliminate intercompany accounts and transactions when we consolidate these accounts. Investments in equity of unconsolidated affiliates, over which the Company has significant influence, but not control, over the financial and operating polices, are accounted for primarily using the equity method. These investments are immaterial to the Company's consolidated financial statements. |
Discontinued Operations | Discontinued Operations On April 11, 2024, the Company announced its plan to sell substantially all of the net assets of its Dental segment for total cash consideration of $787,500, subject to customary adjustments, and up to an additional $12,500 in contingent payment should the Dental business achieve certain revenue targets in fiscal 2025. The transaction was structured as an equity sale and closed on May 31, 2024. A component of an entity is reported in discontinued operations after meeting the criteria for held for sale classification if the disposition represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results. We analyzed the quantitative and qualitative factors relevant to the divestiture of our Dental segment and determined that those conditions for discontinued operations presentation had been met prior to March 31, 2024. The Dental segment results of operations were reclassified to income (loss) from discontinued operations in the Consolidated Statements of Income for all periods presented, and we classified the Dental segment's assets and liabilities as held for sale for the year ended March 31, 2024 in the accompanying Consolidated Balance Sheets. Due to the transaction closing in the first quarter of fiscal 2025, the held for sale assets and liabilities were classified as current as of March 31, 2024. Our Consolidated Statements of Cash Flows include the financial results of the Dental segment for all periods presented. For additional information regarding this transaction and its effect on our financial reporting, refer to Note 4 titled, "Discontinued Operations" and Note 11 titled, "Business Segment Information." |
Use of Estimates | Use of Estimates We make certain estimates and assumptions when preparing financial statements according to U.S. GAAP that affect the reported amounts of assets and liabilities at the financial statement dates and the reported amounts of revenues and expenses during the periods presented. These estimates and assumptions involve judgments with respect to many factors that are difficult to predict and are beyond our control. Actual results could be materially different from these estimates. We revise the estimates and assumptions as new information becomes available. This means that operating results for the three month period ended June 30, 2024 are not necessarily indicative of results that may be expected for future quarters or for the full fiscal year ending March 31, 2025. |
Revenue | Revenue Recognition and Associated Liabilities Revenue is recognized when obligations under the terms of the contract are satisfied and control of the promised products or services have transferred to the Customer. Revenues are measured at the amount of consideration that we expect to be paid in exchange for the products or services. Product revenue is recognized when control passes to the Customer, which is generally based on contract or shipping terms. Service revenue is recognized when the Customer benefits from the service, which occurs either upon completion of the service or as it is provided to the Customer. Our Customers include end users as well as dealers and distributors who market and sell our products. Our revenue is not contingent upon resale by the dealer or distributor, and we have no further obligations related to bringing about resale. Our standard return and restocking fee policies are applied to sales of products. Shipping and handling costs charged to Customers are included in Product revenues. The associated expenses are treated as fulfillment costs and are included in Cost of revenues. Revenues are reported net of sales and value-added taxes collected from Customers. We have individual Customer contracts that offer discounted pricing. Dealers and distributors may be offered sales incentives in the form of rebates. We reduce revenue for discounts and estimated returns, rebates, and other similar allowances in the same period the related revenues are recorded. The reduction in revenue for these items is estimated based on historical experience and trend analysis to the extent that it is probable that a significant reversal of revenue will not occur. Estimated returns are recorded gross on the Consolidated Balance Sheets. In transactions that contain multiple performance obligations, such as when products, maintenance services, and other services are combined, we recognize revenue as each product is delivered or service is provided to the Customer. We allocate the total arrangement consideration to each performance obligation based on its relative standalone selling price, which is the price for the product or service when it is sold separately. Payment terms vary by the type and location of the Customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not significant. We do not evaluate whether the selling price contains a financing component for contracts that have a duration of less than one year. We do not capitalize sales commissions as substantially all of our sales commission programs have an amortization period of one year or less. Certain costs to fulfill a contract are capitalized and amortized over the term of the contract if they are recoverable, directly related to a contract and generate resources that we will use to fulfill the contract in the future. At June 30, 2024, assets related to costs to fulfill a contract were not material to our consolidated financial statements. Refer to Note 11 titled, "Business Segment Information" for disaggregation of revenue. Product Revenues Product revenues consist of revenues generated from sales of consumables and capital equipment. These contracts are primarily based on a Customer’s purchase order and may include a Distributor, Dealer or Group Purchasing Organization ("GPO") agreement. We recognize revenue for sales of products when control passes to the Customer, which generally occurs either when the products are shipped or when they are received by the Customer. Revenue related to capital equipment products is deferred until installation is complete if the capital equipment and installation are highly integrated and form a single performance obligation. Service Revenues Within our Healthcare and Life Sciences segments, service revenues include revenue generated from parts and labor associated with the maintenance, repair and installation of capital equipment. These contracts are primarily based on a Customer’s purchase order and may include a Distributor, Dealer, or GPO agreement. For maintenance, repair and installation of capital equipment, revenue is recognized upon completion of the service. Healthcare service revenues also include outsourced reprocessing services and instrument repairs. Contracts for outsourced reprocessing services are primarily based on an agreement with a Customer, ranging in length from several months to 15 years. Outsourced reprocessing services revenue is recognized ratably over the contract term using a time-based input measure, adjusted for volume and other performance metrics, to the extent that it is probable that a significant reversal of revenue will not occur. Contracts for instrument repairs are primarily based on a Customer’s purchase order, and the associated revenue is recognized upon completion of the repair. We also offer preventive maintenance and separately priced extended warranty agreements to our Customers, which require us to maintain and repair products over the duration of the contract. Generally, these contract terms are cancellable without penalty and range from one to five years. Amounts received under these Customer contracts are initially recorded as a service liability and are recognized as service revenue ratably over the contract term using a time-based input measure. Within our AST segment, service revenues include contract sterilization and laboratory services. Sales contracts for contract sterilization and laboratory services are primarily based on a Customer’s purchase order and associated Customer agreement, and revenues are generally recognized upon completion of the service. Contract Liabilities Payments received from Customers are based on invoices or billing schedules as established in contracts with Customers. Deferred revenue is recorded when payment is received in advance of performance under the contract. Deferred revenue is recognized as revenue upon completion of the performance obligation, which generally occurs within one year. During the first three months of fiscal 2025, $45,996 of the March 31, 2024 deferred revenue balance was recorded as revenue. During the first three months of fiscal 2024, $42,300 of the March 31, 2023 deferred revenue balance was recorded as revenue. Refer to Note 8 titled, "Additional Consolidated Balance Sheet Information" for deferred revenue balances. Service Liabilities Payments received in advance of performance for cancellable preventive maintenance and separately priced extended warranty contracts are recorded as service liabilities. Service liabilities are recognized as revenue as performance is rendered under the contract. Refer to Note 8 titled, "Additional Consolidated Balance Sheet Information" for service liability balances. Remaining Performance Obligations Remaining performance obligations reflect only the performance obligations related to agreements for which we have a firm commitment from a Customer to purchase, and exclude variable consideration related to unsatisfied performance obligations. With regard to products, these remaining performance obligations include orders for capital equipment and consumables where control of the products has not passed to the customer. With regard to service, these remaining performance obligations primarily include installation, certification, and outsourced reprocessing services. As of June 30, 2024, the transaction price allocated to remaining performance obligations was approximately $1,499,543. We expect to recognize |
Recently Issued Accounting Standards Impacting the Company | Recently Issued Accounting Standards Impacting the Company Recently Issued Accounting Standards Impacting the Company are presented in the following table: Standard Date of Issuance Description Date of Adoption Effect on the financial statements or other significant matters Standards that have not yet been adopted ASU 2023-07 "Segment Reporting (Topic 280) November 2023 The standard provides guidance to enhance disclosures related to reportable segment expenses, including requirements to disclose significant segment expenses that are regularly provided to the Chief Operating Decision Maker ("CODM"), the title and position of the CODM and a description of how the CODM uses the information to make decisions regarding the allocation of resources. The standard also requires disclosure of certain segment information currently required annually to be reported on an interim basis. The amendments in this standard are effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. NA We are currently assessing the impact of this standard update on our disclosures in the notes to the consolidated financial statements. ASU 2023-09 "Income Taxes (Topic 740) Improvements to Income Tax Disclosures." December 2023 The standard provides guidance to enhance disclosures related to income taxes paid (net of refunds), requiring disaggregation by federal, state, and foreign, and disclosure of income taxes paid (net of refunds received) by individual jurisdictions that represent greater than 5% of the total. The standard also requires disclosure of income (loss) from continuing operations before income taxes, disaggregated between domestic and foreign, and income tax expense (or benefit) disaggregated by federal, state, and foreign. Finally, the standard removes the requirement for certain disclosures related to changes in unrecognized tax benefits and certain amounts of temporary differences. The amendments in this standard are effective for annual periods beginning after December 15, 2024. NA We are currently assessing the impact of this standard update on our disclosures in the notes to the consolidated financial statements. A detailed description of our significant and critical accounting policies, estimates, and assumptions is included in our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2024, which was filed with the SEC on May 29, 2024. Our significant and critical accounting policies, estimates, and assumptions have not changed materially from March 31, 2024. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncement, Early Adoption | Recently Issued Accounting Standards Impacting the Company are presented in the following table: Standard Date of Issuance Description Date of Adoption Effect on the financial statements or other significant matters Standards that have not yet been adopted ASU 2023-07 "Segment Reporting (Topic 280) November 2023 The standard provides guidance to enhance disclosures related to reportable segment expenses, including requirements to disclose significant segment expenses that are regularly provided to the Chief Operating Decision Maker ("CODM"), the title and position of the CODM and a description of how the CODM uses the information to make decisions regarding the allocation of resources. The standard also requires disclosure of certain segment information currently required annually to be reported on an interim basis. The amendments in this standard are effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. NA We are currently assessing the impact of this standard update on our disclosures in the notes to the consolidated financial statements. ASU 2023-09 "Income Taxes (Topic 740) Improvements to Income Tax Disclosures." December 2023 The standard provides guidance to enhance disclosures related to income taxes paid (net of refunds), requiring disaggregation by federal, state, and foreign, and disclosure of income taxes paid (net of refunds received) by individual jurisdictions that represent greater than 5% of the total. The standard also requires disclosure of income (loss) from continuing operations before income taxes, disaggregated between domestic and foreign, and income tax expense (or benefit) disaggregated by federal, state, and foreign. Finally, the standard removes the requirement for certain disclosures related to changes in unrecognized tax benefits and certain amounts of temporary differences. The amendments in this standard are effective for annual periods beginning after December 15, 2024. NA We are currently assessing the impact of this standard update on our disclosures in the notes to the consolidated financial statements. |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | The following tables summarize our total pre-tax restructuring expenses recorded in fiscal 2025 related to the Restructuring Plan: Three Months Ended June 30, 2024 Restructuring Plan Severance and other compensation related costs $ 21,480 Lease and other contract termination costs 2,970 Product rationalization (1) 2,382 Accelerated depreciation and amortization 1,250 Total Restructuring Expense $ 28,082 (1) Recorded in Cost of revenues on the Consolidated Statements of Income. |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes our restructuring liability balances: Restructuring Plan Balance at March 31, 2024 $ 678 Fiscal 2025 Charges 24,450 Payments (3,753) Balance at June 30, 2024 $ 21,375 |
Business Acquisitions and Div_2
Business Acquisitions and Divestitures (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Business Acquisitions and Divestitures [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The table below summarizes the allocation of the purchase price to the net assets acquired from BD based on fair values at the acquisition date. September 30, 2023 Adjustments (2) Final Inventory 27,006 4,821 31,827 Property, plant, and equipment 6,755 1,109 7,864 Lease right-of-use assets, net — 1,737 1,737 Intangible assets (1) 303,598 (598) 303,000 Goodwill 202,399 (5,332) 197,067 Total assets acquired 539,758 1,737 541,495 Lease obligations — 1,737 1,737 Total liabilities assumed — 1,737 1,737 Net assets acquired $ 539,758 $ — $ 539,758 (1) Includes estimated fair values of $238,000 for Customer relationships ( 13 years estimated useful life), $50,000 for Patents and technology ( 13 years estimated useful life), and $15,000 for Trademarks and tradenames ( 15 years estimated useful life) as of June 30, 2024. (2) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table summarizes the major classes of assets and liabilities of the Dental business segment that were classified as held for sale in the Consolidated Balance Sheets as of March 31, 2024: March 31, Assets Assets held-for-sale: Accounts receivable, net $ 48,590 Inventories, net 89,345 Property, plant, and equipment, net 73,395 Lease right-of-use assets, net 22,822 Intangibles, net 770,731 Prepaid expenses and other assets 2,953 Loss accrued on classification as held for sale (202,932) Total assets held-for-sale $ 804,904 Liabilities Liabilities held-for-sale: Accounts payable $ 10,580 Accrued income taxes 433 Accrued payroll and other related liabilities 13,683 Lease obligations 23,722 Accrued expenses and other 15,594 Total liabilities held-for-sale $ 64,012 The following table summarizes the major line items constituting pre-tax income of discontinued operations associated with the Dental segment for the three months ending June 30, 2024 and 2023: Three Months Ended June 30, 2024 2023 Revenues: Product $ 63,936 $ 101,156 Cost of revenues: Product 35,146 56,699 Gross profit: 28,790 44,457 Operating expenses: Selling, general, and administrative 13,466 52,528 Research and development 369 808 Income (loss) from operations (1) 14,955 (8,879) Non-operating expenses (income), net 1 (12) Pre-tax loss on sale (7,843) — Income (loss) before income tax expense 7,111 (8,867) Income tax expense (benefit) 1,519 (2,076) Income (loss) from discontinued operations, net of income tax 5,592 (6,791) (1) Income from operations for the three month period ended June 30, 2024 includes two months of operating results prior to the transaction close on May 31, 2024 and excludes depreciation and amortization of property, plant, equipment, and intangible assets subsequent to the held for sale classification as of March 2, 2024. The effective income tax rates for the three month periods ending June 30, 2024 and 2023 from discontinued operations were 21.4% and 23.4%, respectively. Significant non-cash operating items and capital expenditures related to discontinued operations are reflected in the statement of cash flows as follows: Three Months Ended June 30, 2024 2023 Operating activities of discontinued operations: Depreciation, depletion, and amortization $ — $ 30,744 Investing activities of discontinued operations: Purchases of property, plant, equipment, and intangibles, net $ (433) $ (2,129) |
Inventories, Net Inventories, N
Inventories, Net Inventories, Net (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | June 30, March 31, Raw materials $ 257,023 $ 245,942 Work in process 111,297 98,304 Finished goods 372,330 374,182 Reserve for excess and obsolete inventory (42,063) (43,893) Inventories, net $ 698,587 $ 674,535 |
Property, Plant and Equipment P
Property, Plant and Equipment Property, Plant and Equipment (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Information related to the major categories of our depreciable assets is as follows: June 30, March 31, Land and land improvements (1) $ 99,000 $ 90,134 Buildings and leasehold improvements 755,596 724,492 Machinery and equipment 1,105,315 1,075,082 Information systems 256,637 256,671 Radioisotope 700,397 692,642 Construction in progress (1) 522,825 500,106 Total property, plant, and equipment 3,439,770 3,339,127 Less: accumulated depreciation and depletion (1,605,554) (1,573,947) Property, plant, and equipment, net $ 1,834,216 $ 1,765,180 (1) Land is not depreciated. Construction in progress is not depreciated until placed in service. |
Debt Debt (Tables)
Debt Debt (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Indebtedness was as follows: June 30, March 31, Short-term debt Term loan, current portion $ — $ 41,250 Delayed draw term loan, current portion — 44,688 Private Placement Senior Notes 80,000 — Total short-term debt $ 80,000 $ 85,938 Long-term debt Private Placement Senior Notes $ 670,751 $ 751,433 Revolving Credit Facility 231,278 484,529 Deferred financing costs (16,428) (17,988) Term loan — 3,750 Delayed draw term loan — 548,438 Senior Public Notes 1,350,000 1,350,000 Total long-term debt $ 2,235,601 $ 3,120,162 Total debt $ 2,315,601 $ 3,206,100 |
Additional Consolidated Balan_2
Additional Consolidated Balance Sheets Information Additional Consolidated Balance Sheets Information (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Notes To Financial Statements [Abstract] | |
Additional Consolidated Balance Sheets Information | 8. Additional Consolidated Balance Sheet Information Additional information related to our Consolidated Balance Sheets is as follows: June 30, March 31, Accrued payroll and other related liabilities: Compensation and related items $ 85,059 $ 48,152 Accrued vacation/paid time off 17,078 16,140 Accrued bonuses 28,484 61,669 Accrued employee commissions 15,666 35,980 Other postretirement benefit obligations-current portion 994 994 Other employee benefit plans obligations-current portion 2,091 1,896 Total accrued payroll and other related liabilities $ 149,372 $ 164,831 Accrued expenses and other: Deferred revenues $ 69,323 $ 70,460 Service liabilities 94,301 92,590 Self-insured risk reserves-current portion 17,431 13,303 Accrued dealer commissions 32,934 33,277 Accrued warranty 14,570 15,388 Asset retirement obligation-current portion 507 510 Accrued interest 18,007 11,109 Other 39,490 83,107 Total accrued expenses and other $ 286,563 $ 319,744 Other liabilities: Self-insured risk reserves-long-term portion $ 21,647 $ 21,646 Other postretirement benefit obligations-long-term portion 5,428 5,159 Defined benefit pension plans obligations-long-term portion 3,024 2,727 Other employee benefit plans obligations-long-term portion 1,314 1,321 Accrued long-term income taxes 6,427 6,508 Asset retirement obligation-long-term portion 13,249 13,148 Other 21,279 21,037 Total other liabilities $ 72,368 $ 71,546 |
Schedule of Accrued Liabilities [Table Text Block] | Additional information related to our Consolidated Balance Sheets is as follows: June 30, March 31, Accrued payroll and other related liabilities: Compensation and related items $ 85,059 $ 48,152 Accrued vacation/paid time off 17,078 16,140 Accrued bonuses 28,484 61,669 Accrued employee commissions 15,666 35,980 Other postretirement benefit obligations-current portion 994 994 Other employee benefit plans obligations-current portion 2,091 1,896 Total accrued payroll and other related liabilities $ 149,372 $ 164,831 Accrued expenses and other: Deferred revenues $ 69,323 $ 70,460 Service liabilities 94,301 92,590 Self-insured risk reserves-current portion 17,431 13,303 Accrued dealer commissions 32,934 33,277 Accrued warranty 14,570 15,388 Asset retirement obligation-current portion 507 510 Accrued interest 18,007 11,109 Other 39,490 83,107 Total accrued expenses and other $ 286,563 $ 319,744 Other liabilities: Self-insured risk reserves-long-term portion $ 21,647 $ 21,646 Other postretirement benefit obligations-long-term portion 5,428 5,159 Defined benefit pension plans obligations-long-term portion 3,024 2,727 Other employee benefit plans obligations-long-term portion 1,314 1,321 Accrued long-term income taxes 6,427 6,508 Asset retirement obligation-long-term portion 13,249 13,148 Other 21,279 21,037 Total other liabilities $ 72,368 $ 71,546 |
Business Segment Information Bu
Business Segment Information Business Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Financial information for each of our segments is presented in the following table: Three Months Ended June 30, 2024 2023 Revenues: Healthcare $ 901,221 $ 818,874 AST 249,803 233,099 Life Sciences 128,478 131,413 Total revenues $ 1,279,502 $ 1,183,386 Operating income (loss): Healthcare $ 216,887 $ 198,182 AST 117,714 109,590 Life Sciences 52,584 49,841 Corporate (101,748) (91,873) Total operating income $ 285,437 $ 265,740 Less: Adjustments Amortization of acquired intangible assets (1) $ 67,661 $ 64,092 Acquisition and integration related charges (2) 2,254 2,237 Tax restructuring costs (3) 518 9 Amortization of inventory and property "step up" to fair value (1) 1,391 1,622 Restructuring charges (4) 28,082 19 Income from operations $ 185,531 $ 197,761 |
Revenue from External Customers by Products and Services [Table Text Block] | Three Months Ended June 30, 2024 2023 Healthcare: Capital equipment $ 214,639 $ 238,099 Consumables 343,354 280,281 Service 343,228 300,494 Total Healthcare Revenues $ 901,221 $ 818,874 AST: Capital equipment $ 1,088 $ 874 Service 248,715 232,225 Total AST Revenues $ 249,803 $ 233,099 Life Sciences: Capital equipment $ 26,476 $ 30,991 Consumables 69,818 61,698 Service 32,184 38,724 Total Life Sciences Revenues $ 128,478 $ 131,413 Total Revenues $ 1,279,502 $ 1,183,386 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Three Months Ended June 30, 2024 2023 Revenues: Ireland $ 22,194 $ 20,036 United States 946,890 855,788 Other locations 310,418 307,562 Total Revenues $ 1,279,502 $ 1,183,386 |
Shares and Preferred Shares Sha
Shares and Preferred Shares Shares and Preferred Shares (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares [Table Text Block] | Three Months Ended June 30, Denominator (shares in thousands): 2024 2023 Weighted average shares outstanding—basic 98,869 98,708 Dilutive effect of share equivalents 507 531 Weighted average shares outstanding and share equivalents—diluted 99,376 99,239 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Options to purchase the following number of shares were outstanding but excluded from the computation of diluted earnings per share because the combined exercise prices, unamortized fair values, and assumed tax benefits upon exercise were greater than the average market price for the shares during the periods, so including these options would be anti-dilutive: Three Months Ended June 30, (shares in thousands) 2024 2023 Number of share options 665 668 |
Share-Based Compensation Share-
Share-Based Compensation Share-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Assumptions Used | The following weighted average assumptions were used for options granted during the first three months of fiscal 2025 and 2024: Fiscal 2025 Fiscal 2024 Risk-free interest rate 4.20 % 3.57 % Expected life of options 6.0 years 5.9 years Expected dividend yield of stock 0.94 % 1.08 % Expected volatility of stock 28.47 % 27.98 % |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding | A summary of share option activity is as follows: Number of Weighted Average Aggregate Outstanding at March 31, 2024 1,869,871 $ 168.22 Granted 206,432 251.35 Exercised (81,378) 81.57 Forfeited (654) 219.97 Expired (512) 250.06 Outstanding at June 30, 2024 1,993,759 $ 180.32 6.3 years $ 92,209 Exercisable at June 30, 2024 1,418,051 $ 157.46 5.3 years $ 91,771 |
Share-based Compensation Arrangements by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest | A summary of the non-vested restricted share and share unit activity is presented below: Number of Number of Restricted Share Units Weighted Average Non-vested at March 31, 2024 463,381 28,348 $ 200.04 Granted 151,638 9,855 228.50 Vested (124,462) (4,923) 183.06 Forfeited (24,655) (1,339) 205.12 Non-vested at June 30, 2024 465,902 31,941 $ 213.46 |
Financial and Other Guarantees
Financial and Other Guarantees Financial and Other Gurantees (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | Changes in our warranty liability during the first three months of fiscal 2025 were as follows: Warranties Balance at March 31, 2024 $ 15,388 Warranties issued during the period 3,456 Settlements made during the period (4,274) Balance at June 30, 2024 $ 14,570 |
Derivatives and Hedging Derivat
Derivatives and Hedging Derivatives and Hedging (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Asset Derivatives Liability Derivatives Fair Value at Fair Value at Fair Value at Fair Value at Balance sheet location June 30, 2024 March 31, 2024 June 30, 2024 March 31, 2024 Prepaid & other $ 389 $ 208 $ — $ — Accrued expenses and other $ — $ — $ 427 $ 1,014 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table presents the impact of derivative instruments and their location within the Consolidated Statements of Income: Location of gain (loss) Amount of gain (loss) recognized in income Three Months Ended June 30, 2024 2023 Foreign currency forward contracts Selling, general and administrative $ 386 $ 1,458 Commodity swap contracts Cost of revenues $ 241 $ (1,034) |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Option, Disclosures | The following table shows the fair value of our financial assets and liabilities at June 30, 2024 and March 31, 2024: Fair Value Measurements Carrying Value Quoted Prices Significant Other Significant Level 1 Level 2 Level 3 June 30, March 31, June 30, March 31, June 30, March 31, June 30, March 31, Assets: Cash and cash equivalents $ 198,328 $ 207,020 $ 198,328 $ 207,020 $ — $ — $ — $ — Forward and swap contracts (1) 389 208 — — 389 208 — — Equity investments (2) 4,816 4,767 4,816 4,767 — — — — Other investments 2,880 2,902 2,880 2,902 — — — — Liabilities: Forward and swap contracts (1) $ 427 $ 1,014 $ — $ — $ 427 $ 1,014 $ — $ — Deferred compensation plans (2) 1,175 1,186 1,175 1,186 — — — — Debt (3) 2,315,601 3,206,100 — — 2,001,665 2,895,784 — — Contingent consideration obligations (4) 11,204 11,000 — — — — 11,204 11,000 (1) The fair values of forward and swap contracts are based on period-end forward rates and reflect the value of the amount that we would pay or receive for the contracts involving the same notional amounts and maturity dates. (2) We maintain a frozen domestic non-qualified deferred compensation plan covering certain employees, which allowed for the deferral of payment of previously earned compensation for an employee-specified term or until retirement or termination. Amounts deferred can be allocated to various hypothetical investment options (compensation deferrals have been frozen under the plan). We hold investments to satisfy the future obligations of the plan. Employees who made deferrals are entitled to receive distributions of their hypothetical account balances (amounts deferred, together with earnings (losses)). Changes in the fair value of these investments are recorded in the "Interest and miscellaneous income" line of the Consolidated Statement of Income. During the first three months of fiscal 2025 and 2024, we recorded gains of $53 and $73, respectively, related to these investments. (3) We estimate the fair value of our debt using discounted cash flow analyses, based on estimated current incremental borrowing rates for similar types of borrowing arrangement s. The fair values of our Senior Public Notes are estimated using quoted market prices for the Senior Public Notes. (4) Contingent consideration obligations arise from prior business acquisitions. The fair values are based on discounted cash flow analyses reflecting the possible achievement of specified performance measures or events and captures the contractual nature of the contingencies, commercial risk, and the time value of money. Contingent consideration obligations are classified in the consolidated balance sheets as accrued expense (short-term) and other liabilities (long-term), as appropriate based on the contractual payment dates. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis at June 30, 2024 are summarized as follows: Contingent Consideration Balance at March 31, 2024 $ 11,000 Additions 223 Payments (19) Balance at June 30, 2024 $ 11,204 |
Reclassifications out of Accu_2
Reclassifications out of Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Reclassifications out of AOCI [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in our Accumulated Other Comprehensive Income (Loss) balances, net of tax, for the three months ended June 30, 2024 and 2023 were as follows: Defined Benefit Plans (1) Currency Translation (2) Total Accumulated Other Comprehensive Loss Balance at March 31, 2024 $ (724) $ (327,933) $ (328,657) Other Comprehensive (Loss) Income before reclassifications (91) 5,751 5,660 Amounts reclassified from Accumulated Other Comprehensive Loss (73) — (73) Net current-period Other Comprehensive (Loss) Income (164) 5,751 5,587 Balance at June 30, 2024 $ (888) $ (322,182) $ (323,070) (1) The amortization (gain) of defined benefit pension items is reported in the Interest and miscellaneous (income) expense line of our Consolidated Statements of Income. (2) The effective portion of gain or loss on net debt designated as non-derivative net investment hedging instruments is recognized in Accumulated Other Comprehensive Income and is reclassified to income in the same period when a gain or loss related to the net investment is included in income. Defined Benefit Plans (1) Currency Translation (2) Total Accumulated Other Comprehensive Loss Balance at March 31, 2023 $ 12 $ (320,722) $ (320,710) Other Comprehensive Income before reclassifications 418 9,793 10,211 Amounts reclassified from Accumulated Other Comprehensive Loss (360) — (360) Net current-period Other Comprehensive Income 58 9,793 9,851 Balance at June 30, 2023 $ 70 $ (310,929) $ (310,859) 1) The amortization (gain) of defined benefit pension items is reported in the Interest and miscellaneous (income) expense line of our Consolidated Statements of Income. (2) |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Product Information [Line Items] | ||
Deferred Revenue, Revenue Recognized | $ 45,996 | $ 42,300 |
Revenue, Remaining Performance Obligation, Amount | $ 1,499,543 | |
Expected recognition within the next year [Member] | ||
Product Information [Line Items] | ||
Revenue, Remaining Performance Obligation, Percentage | 53% | |
Expected recognition beyond the next year [Member] [Member] | ||
Product Information [Line Items] | ||
Revenue, Remaining Performance Obligation, Percentage | 38% | |
Discontinued Operations, Dental Segment | ||
Product Information [Line Items] | ||
Potential Earnout on Divestiture of Business | $ 12,500 | |
Discontinued Operations, Held-for-Sale | Discontinued Operations, Dental Segment | ||
Product Information [Line Items] | ||
Disposal Group, Including Discontinued Operation, Consideration | $ 787,500 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 USD ($) unit | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Number of Positions Eliminated | unit | 300 | ||
Restructuring Charges | $ 28,082 | $ 19 | |
Fiscal 2024/2025 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 28,082 | $ 72,472 | |
Restructuring and Related Cost, Expected Cost Remaining | $ 28,000 | 28,000 | |
Fiscal 2024/2025 Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 20,702 |
Restructuring - Restructuring E
Restructuring - Restructuring Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 28,082 | $ 19 | |
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve, Beginning Balance | 678 | ||
Restructuring Reserve, Accrual Adjustment | 24,450 | ||
Restructuring Reserve, Period Increase (Decrease) | (3,753) | ||
Restructuring Reserve, Ending Balance | 21,375 | $ 21,375 | |
Fiscal 2024/2025 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 28,082 | 72,472 | |
Employee Severance | Fiscal 2024/2025 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 21,480 | ||
Contract Termination | Fiscal 2024/2025 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 2,970 | ||
Reduced Depreciation | Fiscal 2024/2025 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 1,250 | ||
Product Rationalization | Fiscal 2024/2025 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 2,382 | ||
Cost of Sales | Fiscal 2024/2025 Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 20,702 |
Business Acquisitions and Div_3
Business Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 13,659 | $ 0 | |
Asset Acquisition, Price of Acquisition Net of Tax Benefit, Expected | 60,000 | ||
Business Combination, Acquisition Related Costs | 2,254 | 2,237 | |
Pre-tax gain or loss on sale of business | 10,960 | 0 | |
Revenues | 1,279,502 | 1,183,386 | |
Discontinued Operations, Dental Segment | |||
Business Acquisition [Line Items] | |||
Potential Earnout on Divestiture of Business | 12,500 | ||
CECS | |||
Business Acquisition [Line Items] | |||
Proceeds from Divestiture of Businesses | 41,546 | ||
Pre-tax gain or loss on sale of business | 18,803 | ||
Revenues | $ 35,000 | ||
Discontinued Operations, Held-for-Sale | Discontinued Operations, Dental Segment | |||
Business Acquisition [Line Items] | |||
Disposal Group, Including Discontinued Operation, Consideration | 787,500 | ||
BD Acquisition | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 539,758 | ||
Other FY 25 Acquisition | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 13,659 |
Business Acquisitions and Div_4
Business Acquisitions and Divestitures - Allocation of the Purchase Price (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2024 | Mar. 31, 2024 | Sep. 30, 2023 | |
Business Acquisition [Line Items] | |||
Lease right-of-use assets, net | $ 165,020 | $ 173,201 | |
Goodwill | 4,056,754 | $ 4,070,712 | |
BD Acquisition | |||
Business Acquisition [Line Items] | |||
Inventory | 31,827 | $ 27,006 | |
Property, plant, and equipment | 7,864 | 6,755 | |
Lease right-of-use assets, net | 1,737 | 0 | |
Intangible assets | 303,000 | 303,598 | |
Goodwill | 197,067 | 202,399 | |
Total assets acquired | 541,495 | 539,758 | |
Lease obligations | 1,737 | 0 | |
Total liabilities assumed | 1,737 | 0 | |
Net assets acquired | 539,758 | $ 539,758 | |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory | 4,821 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment | 1,109 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Leases Right of Use Asset | 1,737 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | (598) | ||
Goodwill, Purchase Accounting Adjustments | (5,332) | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | 1,737 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Lease Liability | 1,737 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | 1,737 | ||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Net Assets Acquired | 0 | ||
BD Acquisition | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 238,000 | ||
BD Acquisition | Customer-Related Intangible Assets | |||
Business Acquisition [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 13 years | ||
BD Acquisition | Patented Technology | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 50,000 | ||
Finite-Lived Intangible Asset, Useful Life | 13 years | ||
BD Acquisition | Trademarks and Trade Names | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 15,000 | ||
Finite-Lived Intangible Asset, Useful Life | 15 years |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Effective Income Tax Rate Reconciliation, Disposition of Business, Percent | 21.40% | 23.40% |
Discontinued Operations, Dental Segment | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Potential Earnout on Divestiture of Business | $ 12,500 | |
Discontinued Operations, Held-for-Sale | Discontinued Operations, Dental Segment | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Consideration | $ 787,500 |
Discontinued Operations - Summa
Discontinued Operations - Summary Assets and Liabilities Classified as Held for Sale (Details) - Discontinued Operations, Held-for-Sale - Discontinued Operations, Dental Segment $ in Thousands | Mar. 31, 2024 USD ($) |
Assets held for sale: | |
Accounts receivable, net | $ 48,590 |
Inventories, net | 89,345 |
Property, plant, and equipment, net | 73,395 |
Lease right-of-use assets, net | 22,822 |
Intangibles, net | 770,731 |
Prepaid expenses and other assets | 2,953 |
Loss accrued on classification as held for sale | (202,932) |
Total assets held-for-sale | 804,904 |
Liabilities held for sale: | |
Accounts payable | 10,580 |
Accrued income taxes | 433 |
Accrued payroll and other related liabilities | 13,683 |
Lease obligations | 23,722 |
Accrued expenses and other | 15,594 |
Total liabilities held-for-sale | $ 64,012 |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Pre-Tax Income of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cost of revenues: | ||
Loss adjustment on sale | $ (7,843) | |
Pre-tax loss adjustment on sale | $ 0 | |
Income (loss) from discontinued operations, net of income tax | 5,592 | (6,791) |
Discontinued Operations, Held-for-Sale | Discontinued Operations, Dental Segment | ||
Revenues: | ||
Product | 63,936 | 101,156 |
Cost of revenues: | ||
Product | 35,146 | 56,699 |
Gross profit: | 28,790 | 44,457 |
Selling, general, and administrative | 13,466 | 52,528 |
Research and development | 369 | 808 |
Income (loss) from operations (1) | 14,955 | (8,879) |
Non-operating expenses (income), net | 1 | |
Non-operating expenses (income), net | (12) | |
Income (loss) before income tax expense | 7,111 | (8,867) |
Income tax expense (benefit) | 1,519 | (2,076) |
Income (loss) from discontinued operations, net of income tax | $ 5,592 | $ (6,791) |
Discontinued Operations - Sum_3
Discontinued Operations - Summary of Significant Non-Cash Operating Items and Capital Expenditures Related to Discontinued Operations (Details) - Discontinued Operations, Held-for-Sale - Discontinued Operations, Dental Segment - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation, depletion, and amortization | $ 0 | $ 30,744 |
Purchases of property, plant, equipment, and intangibles, net | $ (433) | $ (2,129) |
Inventories, Net Inventories,_2
Inventories, Net Inventories, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Raw materials | $ 257,023 | $ 245,942 |
Work in process | 111,297 | 98,304 |
Finished goods | 372,330 | 374,182 |
Reserve for excess and obsolete inventory | (42,063) | (43,893) |
Inventories, net | $ 698,587 | $ 674,535 |
Property, Plant and Equipment_2
Property, Plant and Equipment Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2024 | Mar. 31, 2024 | ||
Property, Plant and Equipment [Abstract] | |||
Property, Plant and Equipment | Information related to the major categories of our depreciable assets is as follows: June 30, March 31, Land and land improvements (1) $ 99,000 $ 90,134 Buildings and leasehold improvements 755,596 724,492 Machinery and equipment 1,105,315 1,075,082 Information systems 256,637 256,671 Radioisotope 700,397 692,642 Construction in progress (1) 522,825 500,106 Total property, plant, and equipment 3,439,770 3,339,127 Less: accumulated depreciation and depletion (1,605,554) (1,573,947) Property, plant, and equipment, net $ 1,834,216 $ 1,765,180 (1) Land is not depreciated. Construction in progress is not depreciated until placed in service. | ||
Property, Plant and Equipment [Line Items] | |||
Land and land improvements | [1] | $ 99,000 | $ 90,134 |
Buildings and leasehold improvements | 755,596 | 724,492 | |
Machinery and equipment | 1,105,315 | 1,075,082 | |
Capitalized Computer Hardware/Software, Gross | 256,637 | 256,671 | |
Radioisotope | 700,397 | 692,642 | |
Construction in progress | [1] | 522,825 | 500,106 |
Total property, plant, and equipment | 3,439,770 | 3,339,127 | |
Less: accumulated depreciation and depletion | (1,605,554) | (1,573,947) | |
Property, plant, and equipment, net | $ 1,834,216 | $ 1,765,180 | |
[1] Land is not depreciated. Construction in progress is not depreciated until placed in service. |
Debt Debt (Details)
Debt Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Debt Instrument [Line Items] | ||
Term loan, current portion | $ 0 | $ 41,250 |
Delayed draw term loan, current portion | 0 | 44,688 |
Short-term Debt | 80,000 | 85,938 |
Credit Agreement | 231,278 | 484,529 |
Deferred financing costs | (16,428) | (17,988) |
Term Loan | 0 | 3,750 |
Delayed Draw Term Loan | 0 | 548,438 |
Total long term debt | 2,235,601 | 3,120,162 |
Debt, Long-term and Short-term, Combined Amount | 2,315,601 | 3,206,100 |
Private Placement | ||
Debt Instrument [Line Items] | ||
Senior Notes, Noncurrent | 670,751 | 751,433 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes, Noncurrent | 1,350,000 | 1,350,000 |
Private Placement | ||
Debt Instrument [Line Items] | ||
Senior Notes, Current | $ 80,000 | $ 0 |
Additional Consolidated Balan_3
Additional Consolidated Balance Sheets Information Additional Consolidated Balance Sheets Information (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Accrued payroll and other related liabilities: | ||
Compensation and related items | $ 85,059 | $ 48,152 |
Accrued vacation/paid time off | 17,078 | 16,140 |
Accrued bonuses | 28,484 | 61,669 |
Accrued employee commissions | 15,666 | 35,980 |
Other postretirement benefit obligations-current portion | 994 | 994 |
Other employee benefit plans obligations-current portion | 2,091 | 1,896 |
Employee-related Liabilities, Current | 149,372 | 164,831 |
Accrued expenses and other: | ||
Deferred revenues | 69,323 | 70,460 |
Service liabilities | 94,301 | 92,590 |
Self-insured risk reserves-current portion | 17,431 | 13,303 |
Accrued dealer commissions | 32,934 | 33,277 |
Accrued warranty | 14,570 | 15,388 |
Asset retirement obligation-current portion | 507 | 510 |
Accrued interest | 18,007 | 11,109 |
Other | 39,490 | 83,107 |
Accrued Liabilities, Current | 286,563 | 319,744 |
Other liabilities: | ||
Self-insured risk reserves-long-term portion | 21,647 | 21,646 |
Other postretirement benefit obligations-long-term portion | 5,428 | 5,159 |
Defined benefit pension plans obligations-long-term portion | 3,024 | 2,727 |
Other employee benefit plans obligations-long-term portion | 1,314 | 1,321 |
Accrued long-term income taxes | 6,427 | 6,508 |
Asset retirement obligation-long-term portion | 13,249 | 13,148 |
Long-term liabilities, other | 21,279 | 21,037 |
Other Liabilities, Noncurrent | $ 72,368 | $ 71,546 |
Income Tax Expense Income Tax E
Income Tax Expense Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Effective Income Tax Rate, Continuing Operations | 20.10% | 21.70% |
Uncertain Tax Liability Resulting From IRS Notice | $ 50,000 | |
Income Tax Examination, Estimate of Possible Loss | $ 12,000 |
Business Segment Information _2
Business Segment Information Business Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 1,279,502 | $ 1,183,386 |
Segment operating income | 185,531 | 197,761 |
Amortization of acquired intangible assets | 67,661 | 64,092 |
Business Combination, Acquisition Related Costs | 2,254 | 2,237 |
Impact of TCJA | 518 | 9 |
Amortization of inventory and property step-up to fair value | 1,391 | 1,622 |
Restructuring Charges | 28,082 | 19 |
UNITED KINGDOM | ||
Segment Reporting Information [Line Items] | ||
Revenues | 22,194 | 20,036 |
UNITED STATES | ||
Segment Reporting Information [Line Items] | ||
Revenues | 946,890 | 855,788 |
Other foreign locations | ||
Segment Reporting Information [Line Items] | ||
Revenues | 310,418 | 307,562 |
Healthcare [Member] [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 901,221 | 818,874 |
Segment operating income | 216,887 | 198,182 |
Healthcare [Member] [Member] | Capital equipment revenues [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 214,639 | 238,099 |
Healthcare [Member] [Member] | Consumable revenues [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 343,354 | 280,281 |
Healthcare [Member] [Member] | Sales Revenue, Services, Net [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 343,228 | 300,494 |
Applied Sterilization Technologies | ||
Segment Reporting Information [Line Items] | ||
Revenues | 249,803 | 233,099 |
Segment operating income | 117,714 | 109,590 |
Applied Sterilization Technologies | Capital equipment revenues [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,088 | 874 |
Applied Sterilization Technologies | Sales Revenue, Services, Net [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 248,715 | 232,225 |
Life Science Member [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 128,478 | 131,413 |
Segment operating income | 52,584 | 49,841 |
Life Science Member [Member] | Capital equipment revenues [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 26,476 | 30,991 |
Life Science Member [Member] | Consumable revenues [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 69,818 | 61,698 |
Life Science Member [Member] | Sales Revenue, Services, Net [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 32,184 | 38,724 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Segment operating income | (101,748) | (91,873) |
Segment operating income | ||
Segment Reporting Information [Line Items] | ||
Segment operating income | $ 285,437 | $ 265,740 |
Shares and Preferred Shares Ord
Shares and Preferred Shares Ordinary Shares (Details) | 3 Months Ended | ||
Jun. 30, 2024 $ / shares shares | Jun. 30, 2023 shares | Jun. 30, 2024 EUR (€) shares | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Weighted average shares outstanding - basic | 98,869,000 | 98,708,000 | |
Dilutive effect of share equivalents | 507,000 | 531,000 | |
Weighted average shares outstanding and share equivalents - diluted | 99,376,000 | 99,239,000 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Preferred Stock, Shares Authorized | 50,000,000 | ||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | ||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | ||
Deferred Ordinary Shares | 25,000 | ||
Employee share option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of share options that are antidilutive | 665,000 | 668,000 | |
Euro Member Countries, Euro | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Par Value (Euros) of Deferred Ordinary Shares | € | € 1 |
Repurchases of Shares (Details)
Repurchases of Shares (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | May 03, 2023 | |
Equity, Class of Treasury Stock [Line Items] | |||
Share repurchase program, number of shares authorized | $ 500,000 | ||
Shares repurchased during period, number | 251,507 | ||
Aggregate value of shares repurchased pursuant to authorization | $ 56,124 | ||
Shares obtained in connection with share based compensation award programs | 69,780 | 51,494 | |
Payments for shares obtained in connection with share based compensation programs | $ 10,256 | $ 8,724 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 443,876 |
Share-Based Compensation Shar_2
Share-Based Compensation Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Item] | ||
Remaining shares available for grant | 2,028,765 | |
Weighted-average assumptions used for options granted: | ||
Risk-free interest rate | 4.20% | 3.57% |
Expected life of options | 6 years | 5 years 10 months 24 days |
Exptected dividend yield of stock | 0.94% | 1.08% |
Expected volatility of stock | 28.47% | 27.98% |
Estimated forfeiture rate | 2.07% | 2.22% |
Summary of share option activity: | ||
Outstanding at the beginning of the period | 1,869,871 | |
Granted | 206,432 | |
Exercised | (81,378) | |
Forfeited | (654) | |
Canceled | (512) | |
Outstanding at the end of the period | 1,993,759 | |
Exercisable at the end of the period | 1,418,051 | |
Weighted average exercise price: | ||
Outstanding at March 31, 2023 | $ 168.22 | |
Granted | 251.35 | |
Exercised | 81.57 | |
Forfeited | 219.97 | |
Canceled | 250.06 | |
Outstanding at June 30, 2023 | 180.32 | |
Exercisable at June 30, 2023 | $ 157.46 | |
Average Remaining Contractual Term, Outstanding at the end of the period | 6 years 3 months 18 days | |
Aggregate Intrinsic Value, Outstanding at the end of the period | $ 92,209 | |
Average Remaining Contractual Term, Exercisable at the end of the period | 5 years 3 months 18 days | |
Aggregate Intrinsic Value, Exercisable at the end of the period | $ 91,771 | |
Non-vested stock options outstanding expected to vest | 559,526 | |
Ordinary shares, closing price | $ 219.54 | |
Total intrinsic value of stock options exercised | $ 12,372 | $ 4,831 |
Net cash proceeds from the exercise of stock options | $ 5,587 | $ 1,254 |
Weighted average grant date fair value of stock option grants, per share | $ 66.87 | $ 53.45 |
Summary of non-vested restricted share activity: | ||
Unrecognized compensation cost related to nonvested share-based compensation granted | $ 93,968 | |
Weighted Average Period For Total Compensation Expense Not Yet Recognized | 1 year 9 months 18 days | |
Restricted Stock | ||
Summary of non-vested restricted share activity: | ||
Number of Restricted Shares, Non-vested at Beginning of Period | 463,381 | |
Weighted-Average Grant Date Fair Value, Non-vested at Beginning of Period | $ 200.04 | |
Number of Restricted Shares, Granted | 151,638 | |
Weighted-Average Grant Date Fair Value, Granted | $ 228.50 | |
Number of Restricted Shares, Vested | (124,462) | |
Weighted-Average Grant Date Fair Value, Vested | $ 183.06 | |
Number of Restricted Shares, Canceled | (24,655) | |
Weighted-Average Grant Date Fair Value, Canceled | $ 205.12 | |
Number of Restricted Shares, Non-vested at End of Period | 465,902 | |
Weighted-Average Grant Date Fair Value, Non-vested at End of Period | $ 213.46 | |
Fair Value, Share-based Payment Awards, Other than Options | $ 23,694 | |
Restricted Stock Units (RSUs) | ||
Summary of non-vested restricted share activity: | ||
Number of Restricted Shares, Non-vested at Beginning of Period | 28,348 | |
Number of Restricted Shares, Granted | 9,855 | |
Number of Restricted Shares, Vested | (4,923) | |
Number of Restricted Shares, Canceled | (1,339) | |
Number of Restricted Shares, Non-vested at End of Period | 31,941 |
Financial and Other Guarantee_2
Financial and Other Guarantees Financial and Other Guarantees (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2024 USD ($) | |
Product Warranty Liability [Line Items] | |
Balance, Beginning of the Period | $ 15,388 |
Warranties issued during the period | 3,456 |
Settlement made during the period | (4,274) |
Balance, End of the Period | $ 14,570 |
Derivatives and Hedging Fair Va
Derivatives and Hedging Fair Value of Derivatives, Balance Sheet Location (Details) $ in Thousands, € in Millions, £ in Millions, $ in Millions, $ in Millions, $ in Millions | 3 Months Ended | ||||||||
Jun. 30, 2024 USD ($) lb | Jun. 30, 2023 USD ($) | Jun. 30, 2024 GBP (£) | Jun. 30, 2024 MXN ($) | Jun. 30, 2024 CAD ($) | Jun. 30, 2024 EUR (€) | Jun. 30, 2024 AUD ($) | Jun. 30, 2024 USD ($) | Mar. 31, 2024 USD ($) | |
Prepaid & Other | |||||||||
Derivative [Line Items] | |||||||||
Asset derivatives | $ 389 | $ 208 | |||||||
Liability derivatives | 0 | 0 | |||||||
Accrued expenses and other | |||||||||
Derivative [Line Items] | |||||||||
Asset derivatives | 0 | 0 | |||||||
Liability derivatives | $ 427 | $ 1,014 | |||||||
Foreign currency forward contracts | Selling, general, and administrative expense | |||||||||
Derivative [Line Items] | |||||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ 386 | $ 1,458 | |||||||
Commodity swap contracts | |||||||||
Derivative [Line Items] | |||||||||
Derivative, notional amount, weight | lb | 591,800 | ||||||||
Commodity swap contracts | Cost of Sales | |||||||||
Derivative [Line Items] | |||||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ 241 | $ (1,034) | |||||||
Mexican peso | Foreign currency forward contracts | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Notional Amount | $ 100 | ||||||||
Canadian dollar | Foreign currency forward contracts | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Notional Amount | $ 25 | ||||||||
euro | Foreign currency forward contracts | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Notional Amount | € | € 18.2 | ||||||||
British pounds sterling | Foreign currency forward contracts | |||||||||
Derivative [Line Items] | |||||||||
Liability derivatives | £ | £ 50 | ||||||||
Australia, Dollars | Foreign currency forward contracts | |||||||||
Derivative [Line Items] | |||||||||
Derivative Asset, Notional Amount | $ 15 |
Derivatives and Hedging Gain (L
Derivatives and Hedging Gain (Loss) on Derivatives, Income Statement Location (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Foreign currency forward contracts | Selling, general, and administrative expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) recognized in income | $ (386) | $ (1,458) |
Commodity swap contracts | Cost of revenues | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) recognized in income | $ (241) | $ 1,034 |
Fair Value Measurements Fair _2
Fair Value Measurements Fair Value Hierarchy (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt and Equity Securities, Gain (Loss) | $ (53) | $ (73) | ||
Liabilities: | ||||
Contingent consideration obligations | 11,204 | $ 11,000 | ||
Level 1 | ||||
Assets: | ||||
Cash and cash equivalents | 198,328 | 207,020 | ||
Forward and swap contracts | 0 | 0 | ||
Equity Securities, FV-NI | [1] | 4,816 | 4,767 | |
Investments | 2,880 | 2,902 | ||
Liabilities: | ||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 | ||
Deferred compensation plans | [1] | 1,175 | 1,186 | |
Long term debt | [2] | 0 | 0 | |
Contingent consideration obligations | 0 | 0 | ||
Level 2 | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Forward and swap contracts | [3] | 389 | 208 | |
Equity Securities, FV-NI | 0 | 0 | ||
Investments | 0 | 0 | ||
Liabilities: | ||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | [3] | 427 | 1,014 | |
Deferred compensation plans | 0 | 0 | ||
Long term debt | [2] | 2,001,665 | 2,895,784 | |
Contingent consideration obligations | 0 | 0 | ||
Level 3 | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Forward and swap contracts | 0 | 0 | ||
Equity Securities, FV-NI | 0 | 0 | ||
Investments | 0 | 0 | ||
Liabilities: | ||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 | ||
Deferred compensation plans | 0 | 0 | ||
Debt Instrument, Fair Value Disclosure | [2] | 0 | 0 | |
Contingent consideration obligations | [4] | 11,204 | 11,000 | |
Reported Value Measurement [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 198,328 | 207,020 | ||
Forward and swap contracts | [3] | 389 | 208 | |
Equity Securities, FV-NI | [1] | 4,816 | 4,767 | |
Investments | 2,880 | 2,902 | ||
Liabilities: | ||||
Foreign Currency Contracts, Liability, Fair Value Disclosure | [3] | 427 | 1,014 | |
Deferred compensation plans | [1] | 1,175 | 1,186 | |
Long term debt | [2] | 2,315,601 | 3,206,100 | |
Contingent consideration obligations | $ 11,204 | $ 11,000 | ||
[1] We maintain a frozen domestic non-qualified deferred compensation plan covering certain employees, which allowed for the deferral of payment of previously earned compensation for an employee-specified term or until retirement or termination. Amounts deferred can be allocated to various hypothetical investment options (compensation deferrals have been frozen under the plan). We hold investments to satisfy the future obligations of the plan. Employees who made deferrals are entitled to receive distributions of their hypothetical account balances (amounts deferred, together with earnings (losses)). Changes in the fair value of these investments are recorded in the "Interest and miscellaneous income" line of the Consolidated Statement of Income. During the first three months of fiscal 2025 and 2024, we recorded gains of $53 and $73, respectively, related to these investments. We estimate the fair value of our debt using discounted cash flow analyses, based on estimated current incremental borrowing rates for similar types of borrowing arrangement s. The fair values of our Senior Public Notes are estimated using quoted market prices for the Senior Public Notes. The fair values of forward and swap contracts are based on period-end forward rates and reflect the value of the amount that we would pay or receive for the contracts involving the same notional amounts and maturity dates. |
Fair Value Measurements Availab
Fair Value Measurements Available-for-sale securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-Sale [Abstract] | ||
Equity Securities, FV-NI, Gain (Loss) | $ 53 | $ 73 |
Fair Value Measurements Conting
Fair Value Measurements Contingent Consideration Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Contingent consideration | $ 11,204 | $ 11,000 |
Additions | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in contingent consideration | 223 | |
Payments | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in contingent consideration | $ (19) |
Reclassifications out of Accu_3
Reclassifications out of Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ (73) | $ (360) | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 5,587 | 9,851 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (323,070) | (310,859) | $ (328,657) | $ (320,710) | |
Other Comprehensive Income (Loss), Net of Tax | 5,660 | 10,211 | |||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (888) | 70 | (724) | 12 | |
Other Comprehensive Income (Loss), Net of Tax | (91) | 418 | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [1] | (73) | (360) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (164) | 58 | |||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | [2] | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 5,751 | 9,793 | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (322,182) | (310,929) | $ (327,933) | $ (320,722) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ 5,751 | $ 9,793 | |||
[1]The amortization (gain) of defined benefit pension items is reported in the Interest and miscellaneous (income) expense line of our Consolidated Statements of Income.[2]The effective portion of gain or loss on net debt designated as non-derivative net investment hedging instruments is recognized in Accumulated Other Comprehensive Income and is reclassified to income in the same period when a gain or loss related to the net investment is included in income. |
Uncategorized Items - ste-20240
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 207,020,000 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 208,357,000 |