Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2014 | |
Document Information [Line Items] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 31-Mar-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
Trading Symbol | 'BCR |
Entity Registrant Name | 'BARD C R INC /NJ/ |
Entity Central Index Key | '0000009892 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 76,257,057 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net sales | $799,300 | $740,300 |
Costs and expenses: | ' | ' |
Cost of goods sold | 309,500 | 295,300 |
Marketing, selling and administrative expense | 236,800 | 216,400 |
Research and development expense | 64,300 | 59,300 |
Interest expense | 11,100 | 11,400 |
Other (income) expense, net | -6,000 | 30,300 |
Total costs and expenses | 615,700 | 612,700 |
Income from operations before income taxes | 183,600 | 127,600 |
Income tax provision | 35,200 | 36,900 |
Net income | $148,400 | $90,700 |
Basic earnings per share available to common shareholders | $1.89 | $1.09 |
Diluted earnings per share available to common shareholders | $1.86 | $1.08 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Net income | $148,400,000 | $90,700,000 |
Other comprehensive income (loss): | ' | ' |
Change in derivative instruments designated as cash flow hedges, net of tax | 400,000 | 3,200,000 |
Foreign currency translation adjustments | 1,000,000 | -2,100,000 |
Benefit plan adjustments, net of tax | 1,600,000 | 2,200,000 |
Other comprehensive income (loss) | 3,000,000 | 3,300,000 |
Comprehensive income | $151,400,000 | $94,000,000 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $939,900 | $1,066,900 |
Restricted cash | 15,100 | 16,300 |
Accounts receivable, less allowances of $11,100 and $11,600, respectively | 452,600 | 479,600 |
Inventories | 364,200 | 356,200 |
Short-term deferred tax assets | 71,500 | 78,200 |
Other current assets | 97,900 | 93,200 |
Total current assets | 1,941,200 | 2,090,400 |
Property, plant and equipment, at cost | 687,000 | 667,500 |
Less accumulated depreciation and amortization | 291,200 | 276,300 |
Net property, plant and equipment | 395,800 | 391,200 |
Goodwill | 1,102,100 | 1,099,500 |
Core and developed technologies, net | 677,700 | 696,800 |
Other intangible assets, net | 460,900 | 468,100 |
Deferred tax assets | 8,200 | 3,900 |
Other assets | 292,000 | 291,200 |
Total assets | 4,877,900 | 5,041,100 |
Current liabilities | ' | ' |
Accounts payable | 90,400 | 83,000 |
Accrued expenses | 323,000 | 294,000 |
Accrued compensation and benefits | 101,900 | 145,300 |
Income taxes payable | 16,400 | 64,200 |
Total current liabilities | 531,700 | 586,500 |
Long-term debt | 1,404,800 | 1,405,700 |
Other long-term liabilities | 715,400 | 798,800 |
Deferred income taxes | 169,800 | 161,900 |
Commitments and contingencies | ' | ' |
Shareholders' investment: | ' | ' |
Preferred stock, $1 par value, authorized 5,000,000 shares; none issued | 0 | 0 |
Common stock, $0.25 par value, authorized 600,000,000 shares; issued and outstanding 76,257,057 shares at March 31, 2014 and 77,436,263 shares at December 31, 2013 | 19,100 | 19,400 |
Capital in excess of par value | 1,801,700 | 1,729,600 |
Retained earnings | 253,300 | 360,100 |
Accumulated other comprehensive loss | -17,900 | -20,900 |
Total shareholders' investment | 2,056,200 | 2,088,200 |
Total liabilities and shareholders' investment | $4,877,900 | $5,041,100 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowances | $11,100 | $11,600 |
Preferred stock, par value | $1 | $1 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | ' | ' |
Common stock, par value | $0.25 | $0.25 |
Common stock, authorized | 600,000,000 | 600,000,000 |
Common stock, issued | 76,257,057 | 77,436,263 |
Common stock, outstanding | 76,257,057 | 77,436,263 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $148,400 | $90,700 |
Adjustments to reconcile net income to net cash provided by operating activities, net of acquired business: | ' | ' |
Depreciation and amortization | 42,500 | 35,400 |
Litigation charges | 0 | 25,800 |
Gain on sale of investment | -7,100 | 0 |
Asset impairments | 600 | 5,700 |
Deferred income taxes | 8,900 | 8,000 |
Share-based compensation | 19,500 | 15,800 |
Inventory reserves and provision for doubtful accounts | 5,200 | 5,400 |
Other items | 500 | 300 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 26,800 | 5,200 |
Inventories | -13,700 | -8,300 |
Current liabilities | -42,100 | -39,700 |
Taxes | -78,200 | 14,200 |
Other, net | 3,000 | -17,500 |
Net cash provided by operating activities | 114,300 | 141,000 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -22,700 | -13,200 |
Change in restricted cash | 1,200 | -1,000 |
Payments made for purchase of business, net of cash acquired | 0 | -3,000 |
Payments made for intangibles | -100 | -900 |
Proceeds from sale of investment | 7,100 | 0 |
Net cash used in investing activities | -14,500 | -18,100 |
Cash flows from financing activities: | ' | ' |
Proceeds from exercises under share-based compensation plans, net | 35,400 | 9,000 |
Excess tax benefit relating to share-based compensation plans | 10,100 | 2,300 |
Purchases of common stock | -255,700 | -131,300 |
Dividends paid | -16,600 | -16,700 |
Net cash used in financing activities | -226,800 | -136,700 |
Effect of exchange rate changes on cash and cash equivalents | 0 | -3,200 |
Decrease in cash and cash equivalents during the period | -127,000 | -17,000 |
Balance at January 1 | 1,066,900 | 896,300 |
Balance at March 31 | 939,900 | 879,300 |
Cash paid for: | ' | ' |
Interest | 16,000 | 12,700 |
Income taxes | 94,400 | 12,400 |
Non-cash transactions: | ' | ' |
Purchase of common stock not settled | 0 | 23,500 |
Purchase of business and related costs | $0 | $1,300 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation | ' |
1. Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of C. R. Bard, Inc. and its subsidiaries (the “company” or “Bard”) should be read in conjunction with the audited consolidated financial statements and notes thereto included in Bard’s 2013 Annual Report on Form 10-K. These financial statements have been prepared on a basis that is substantially consistent with the accounting principles applied in the financial statements in Bard’s 2013 Annual Report on Form 10-K. The preparation of these financial statements requires the company to make estimates and judgments that affect reported amounts of assets, liabilities, revenues and expenses and the related disclosure of contingent assets and liabilities at the date of the financial statements. These financial statements include all normal and recurring adjustments necessary for a fair presentation. The accounts of most foreign subsidiaries are consolidated as of and for the quarters ended February 28, 2014 and February 28, 2013 and as of November 30, 2013. No events occurred related to these foreign subsidiaries during the months of March 2014, March 2013 or December 2013 that materially affected the financial position or results of operations of the company. The results for the interim periods presented are not necessarily indicative of the results expected for the year. |
Earnings_per_Common_Share
Earnings per Common Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings per Common Share | ' | ||||||||
2. Earnings per Common Share | |||||||||
Earnings per share (“EPS”) is computed under the two-class method using the following common share information: | |||||||||
Three Months | |||||||||
Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(dollars and shares in millions) | |||||||||
EPS Numerator: | |||||||||
Net income | $ | 148.4 | $ | 90.7 | |||||
Less: Income allocated to participating securities | 2.5 | 1.7 | |||||||
Net income available to common shareholders | $ | 145.9 | $ | 89 | |||||
EPS Denominator: | |||||||||
Weighted average common shares outstanding | 77 | 81.3 | |||||||
Dilutive common share equivalents from share-based compensation plans | 1.5 | 1.2 | |||||||
Weighted average common and common equivalent shares outstanding, assuming dilution | 78.5 | 82.5 | |||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes | ' |
3. Income Taxes | |
The effective tax rate for the quarter ended March 31, 2014 was 19.2%, compared to 28.9% for the same period in the prior year. The effective tax rate for the quarter ended March 31, 2014 reflected a tax benefit of $10.9 million as a result of the completion of U.S. Internal Revenue Service (“IRS”) examinations for the tax years 2008 through 2010. The effective tax rate for the quarter ended March 31, 2013 reflected the discrete tax effect of a write-down of an insurance receivable, which was incurred in a low tax jurisdiction. See Note 6 of the notes to condensed consolidated financial statements. In addition, the tax provision for the quarter ended March 31, 2013 was reduced by approximately $3.7 million to recognize the 2012 benefit of the American Taxpayer Relief Act of 2012, which was signed into law on January 2, 2013 and retroactively reinstated the research tax credit. At March 31, 2014, the total amount of liability for unrecognized tax benefits related to federal, state and foreign taxes was $30.0 million (of which $25.2 million would impact the effective tax rate, if recognized) plus $4.1 million of accrued interest. At December 31, 2013, the liability for unrecognized tax benefits was $58.0 million plus $6.6 million of accrued interest. Depending upon the result of open tax examinations and/or the expiration of applicable statutes of limitation, the company believes it is reasonably possible that the total amount of unrecognized tax benefits may decrease by up to $3.7 million within the next 12 months. |
Financial_Instruments
Financial Instruments | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||
4. Financial Instruments | |||||||||||||||||||||
Foreign Exchange Derivative Instruments | |||||||||||||||||||||
The company enters into readily marketable forward and option contracts with financial institutions to help reduce its exposure to foreign currency exchange rate fluctuations. These contracts limit volatility because gains and losses associated with foreign currency exchange rate movements are generally offset by movements in the underlying hedged item. The notional value of the company’s forward currency and option currency contracts was $137.0 million and $148.9 million at March 31, 2014 and December 31, 2013, respectively. For further discussion regarding the company’s use of derivative instruments, see Note 1 of the notes to consolidated financial statements in Bard’s 2013 Annual Report on Form 10-K. | |||||||||||||||||||||
Interest Rate Derivative Instrument | |||||||||||||||||||||
The company’s outstanding interest rate swap contract effectively converts its 2.875% fixed-rate notes due 2016 to a floating-rate instrument. The notional value of the company’s interest rate swap contract is $250.0 million. | |||||||||||||||||||||
The location and fair value of derivative instruments that are designated as hedging instruments recognized in the condensed consolidated balance sheets are as follows: | |||||||||||||||||||||
Balance Sheet | Fair Value | ||||||||||||||||||||
Location | of Derivatives | ||||||||||||||||||||
Derivatives Designated as Hedging Instruments | March 31, | December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||
Forward currency contracts | Other current assets | $ | 1.3 | $ | 1.2 | ||||||||||||||||
Option currency contracts | Other current assets | 0.7 | 1.3 | ||||||||||||||||||
Forward currency contracts | Other assets | 0.1 | — | ||||||||||||||||||
Interest rate swap contract | Other assets | 7.9 | 8.9 | ||||||||||||||||||
$ | 10 | $ | 11.4 | ||||||||||||||||||
Forward currency contracts | Accrued expenses | $ | 0.6 | $ | 0.5 | ||||||||||||||||
$ | 0.6 | $ | 0.5 | ||||||||||||||||||
The location and amounts of gains and losses on derivative instruments designated as cash flow hedges and the impact on shareholders’ investment are as follows: | |||||||||||||||||||||
Gain/(Loss) | Location of | Gain/(Loss) Reclassified | |||||||||||||||||||
Recognized in Other | Gain/(Loss) Reclassified | from Accumulated | |||||||||||||||||||
Comprehensive | from Accumulated | Other Comprehensive Loss | |||||||||||||||||||
Income (Loss) | Other Comprehensive Loss to | into Income | |||||||||||||||||||
Three Months Ended | Income | Three Months Ended | |||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||
Forward currency contracts | $ | 0.3 | $ | 4.8 | Cost of goods sold | $ | 0.6 | $ | (0.4 | ) | |||||||||||
Option currency contracts | (0.6 | ) | (0.3 | ) | Cost of goods sold | (0.6 | ) | (0.3 | ) | ||||||||||||
$ | (0.3 | ) | $ | 4.5 | $ | — | $ | (0.7 | ) | ||||||||||||
The location and amounts of gains and losses on the derivative instrument designated as a fair value hedge for the three months ended March 31, are as follows: | |||||||||||||||||||||
Income Statement | Loss Recognized on Swap | Gain Recognized on Long-Term Debt | |||||||||||||||||||
Location | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(dollars in millions) | |||||||||||||||||||||
Interest rate swap contract | Interest expense | $ | (1.0 | ) | $ | (1.1 | ) | $ | 1 | $ | 1.1 | ||||||||||
Financial Instruments Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||
Fair value is defined as the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that is determined using assumptions that market participants would use in pricing an asset or liability. The fair value guidance establishes a three-level hierarchy which maximizes the use of observable inputs and minimizes the use of unobservable inputs used in measuring fair value. The levels within the hierarchy range from Level 1 having observable inputs to Level 3 having unobservable inputs. | |||||||||||||||||||||
The following table summarizes certain financial instrument assets measured at fair value on a recurring basis: | |||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||
Forward currency contracts | $ | 0.8 | $ | 0.7 | |||||||||||||||||
Option currency contracts | 0.7 | 1.3 | |||||||||||||||||||
Interest rate swap contract | 7.9 | 8.9 | |||||||||||||||||||
The fair values were measured using significant other observable inputs and valued by reference to similar financial instruments, adjusted for restrictions and other terms specific to each instrument. These financial instruments are categorized as Level 2 under the fair value hierarchy. | |||||||||||||||||||||
The fair value of the liability for contingent consideration related to acquisitions was $96.5 million, of which $84.0 million was recorded to accrued expenses, and $95.7 million, of which $10.3 million was recorded to accrued expenses, at March 31, 2014 and December 31, 2013, respectively. The fair value was measured using significant unobservable inputs and is categorized as Level 3 under the fair value hierarchy. | |||||||||||||||||||||
Financial Instruments not Measured at Fair Value | |||||||||||||||||||||
The company maintains a $750 million five-year committed syndicated bank credit facility that expires in September 2018. The credit facility supports the company’s commercial paper program and can be used for general corporate purposes. The facility includes pricing based on the company’s long-term credit rating and includes a financial covenant that limits the amount of total debt to total capitalization. At March 31, 2014, the company was in compliance with this covenant. There were no commercial paper borrowings outstanding at March 31, 2014 or December 31, 2013, respectively. | |||||||||||||||||||||
The estimated fair value of long-term debt including the effect of the related interest rate swap contract was approximately $1,477.4 million and $1,435.4 million at March 31, 2014 and December 31, 2013, respectively. The fair value was estimated using dealer quotes for similarly-rated debt instruments over the remaining contractual term of the company’s obligation. Long-term debt is categorized as Level 2 under the fair value hierarchy. | |||||||||||||||||||||
Concentration Risk | |||||||||||||||||||||
Accounts receivable balances include sales to government-supported healthcare systems outside the United States. The company continues to monitor sovereign debt issues and economic conditions in Europe and evaluates accounts receivable in certain countries for potential collection risks. Economic conditions and other factors in certain countries in Europe have resulted in, and may continue to result in, an increase in the average length of time that it takes to collect these accounts receivable and may require the company to re-evaluate the collectability of these receivables in future periods. The company has experienced significant delays in the collection of accounts receivable associated with the national healthcare systems in Spain, Italy, Greece and Portugal. At March 31, 2014, the company’s accounts receivable, net of allowances, from the national healthcare systems in these countries and amounts past due greater than 365 days are as follows: | |||||||||||||||||||||
Accounts | Greater than | ||||||||||||||||||||
Receivable, net | 365 Days Past Due | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||
Spain | $ | 8.9 | $ | 0.1 | |||||||||||||||||
Italy | 18.9 | 2 | |||||||||||||||||||
Greece | 9.9 | 3.9 | |||||||||||||||||||
Portugal | 3.8 | 1.7 | |||||||||||||||||||
$ | 41.5 | $ | 7.7 | ||||||||||||||||||
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventories | ' | ||||||||
5. Inventories | |||||||||
Inventories consisted of: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(dollars in millions) | |||||||||
Finished goods | $ | 220.4 | $ | 218.3 | |||||
Work in process | 24.3 | 21.9 | |||||||
Raw materials | 119.5 | 116 | |||||||
$ | 364.2 | $ | 356.2 | ||||||
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Contingencies | ' |
6. Contingencies | |
General | |
In the ordinary course of business, the company is subject to various legal proceedings, investigations and claims, including, for example, environmental matters, employment disputes, disputes on agreements and other commercial disputes. In addition, the company operates in an industry susceptible to significant product liability and patent legal claims. The company accounts for estimated losses with respect to legal proceedings and claims when such losses are probable and reasonably estimable. If the estimate of a probable loss is a range and no amount within the range is more likely, the company accrues the minimum amount of the range. Legal costs associated with these matters are expensed as incurred. At any given time, in the ordinary course of business, the company is involved as either a plaintiff or defendant in a number of patent infringement actions. If a third party’s patent infringement claim were to be determined against the company, the company might be required to make significant royalty or other payments or might be subject to an injunction or other limitation on its ability to manufacture or distribute one or more products. If a patent owned by or licensed to the company is found to be invalid or unenforceable, the company might be required to reduce the value of certain intangible assets on the company’s balance sheet and to record a corresponding charge, which could be significant in amount. Many of the company’s legal proceedings and claims could have a material adverse effect on its business, results of operations, financial condition and/or liquidity. | |
Product Liability Matters | |
As of April 17, 2014, approximately 495 federal and 325 state lawsuits involving individual claims by approximately 970 plaintiffs, as well as two putative class actions in the United States are currently pending against the company with respect to its Composix® Kugel® and certain other hernia repair implant products (collectively, the “Hernia Product Claims”). The company voluntarily recalled certain sizes and lots of the Composix® Kugel® products beginning in December 2005. One of the U.S. putative class action lawsuits consolidated ten previously-filed U.S. class action lawsuits. The putative class actions, none of which has been certified, seek: (i) medical monitoring; (ii) compensatory damages; (iii) punitive damages; (iv) a judicial finding of defect and causation; and/or (v) attorneys’ fees. In the third quarter of 2013, a settlement was reached with respect to the three pending putative Canadian class actions within amounts previously recorded by the company, which have now been fully resolved. Approximately 305 of the state lawsuits, involving individual claims by approximately 435 plaintiffs, are pending in the Superior Court of the State of Rhode Island, with the remainder in various other jurisdictions. The Hernia Product Claims also generally seek damages for personal injury resulting from use of the products. | |
In June 2007, the Composix® Kugel® lawsuits and, subsequently, other hernia repair product lawsuits, pending in federal courts nationwide were transferred into one Multidistrict Litigation (“MDL”) for coordinated pre-trial proceedings in the United States District Court for the District of Rhode Island. | |
On June 30, 2011, the company announced that it had reached agreements in principle with various plaintiffs’ law firms to settle the majority of its existing Hernia Product Claims. Each agreement was subject to certain conditions, including requirements for participation in the proposed settlements by a certain minimum number of plaintiffs. In addition, the company continues to engage in discussions with other plaintiffs’ law firms regarding potential resolution of unsettled Hernia Product Claims, and intends to vigorously defend Hernia Product Claims that do not settle, including through litigation. The company cannot give any assurances that the resolution of the Hernia Product Claims that have not settled, including asserted and unasserted claims and the putative class action lawsuits, will not have a material adverse effect on the company’s business, results of operations, financial condition and/or liquidity. | |
As of April 17, 2014, product liability lawsuits involving individual claims by approximately 11,210 plaintiffs have been filed or asserted against the company in various federal and state jurisdictions alleging personal injuries associated with the use of certain of the company’s surgical continence products for women, including its Avaulta ®line of products. In addition, five putative class actions in the United States and four putative class actions in Canada have been filed against the company (all lawsuits, collectively, the “Women’s Health Product Claims”). The Women’s Health Product Claims generally seek damages for personal injury resulting from use of the products. The putative class actions, none of which has been certified, seek: (i) medical monitoring; (ii) compensatory damages; (iii) punitive damages; (iv) a judicial finding of defect and causation; and/or (v) attorneys’ fees. With respect to certain of these claims, the company believes that one of its suppliers has an obligation to defend and indemnify the company with respect to any product defect liability. In October 2010, the Women’s Health Product Claims involving solely Avaulta® products pending in federal courts nationwide were transferred into an MDL in the United States District Court for the Southern District of West Virginia (the “District Court”), the scope of which was later expanded to include lawsuits involving all women’s surgical continence products that are manufactured or distributed by the company. The first trial in a state court was completed in July 2012 and resulted in a judgment against the company of approximately $3.6 million. The company has appealed this decision. The first trial in the MDL commenced in July 2013 and resulted in a judgment against the company of approximately $2 million. The company intends to appeal the judgment. During the third quarter of 2013, the company settled one MDL case and one New Jersey state case. The amounts of the settlements are subject to confidentiality requirements. In addition, during the third quarter of 2013, one MDL case was voluntarily dismissed with prejudice. On January 16, 2014, the District Court ordered that the company prepare 200 individual cases for trial, the timing for which is currently unknown. The next MDL trial is scheduled to occur in May 2014, with additional trials scheduled throughout 2014, some of which may be consolidated. The company does not believe that any verdicts or settlements entered to date are representative of potential outcomes of all Women’s Health Product Claims. The case numbers set forth above do not include approximately 1,015 generic complaints involving women’s health products where the company cannot, based on the allegations in the complaints, determine whether any of those cases involves the company’s women’s health products. In addition, the case numbers set forth above do not include approximately 2,330 claims that have been threatened against the company but for which complaints have not yet been filed. While the company intends to vigorously defend the Women’s Health Product Claims, it cannot give any assurances that the resolution of these claims will not have a material adverse effect on the company’s business, results of operations, financial condition and/or liquidity. | |
As of April 17, 2014, product liability lawsuits involving individual claims by 50 plaintiffs are currently pending against the company in various federal and state jurisdictions alleging personal injuries associated with the use of the company’s vena cava filter products. In addition, three putative class actions were filed against the company in various state courts on behalf of plaintiffs who are alleged to have no present injury (all lawsuits, collectively, the “Filter Product Claims”). Two of these putative class actions were dismissed during the second quarter of 2013, and class certification was denied for the third putative class action in July 2013. The first Filter Product Claim trial was completed in June 2012 and resulted in a judgment for the company. The company expects additional trials of Filter Product Claims to take place over the next 12 months. During the second quarter of 2013, the company finalized settlement agreements with respect to more than 30 Filter Product Claims, and made payments with respect to such claims within the amounts previously recorded. The case numbers set forth above do not include approximately 165 claims that have been threatened against the company but for which complaints have not yet been filed. While the company intends to vigorously defend the remaining unsettled Filter Product Claims, it cannot give any assurances that the resolution of these claims will not have a material adverse effect on the company’s business, results of operations, financial condition and/or liquidity. | |
In most product liability litigations of this nature, plaintiffs allege a wide variety of claims, ranging from allegations of serious injury caused by the products to efforts to obtain compensation notwithstanding the absence of any injury. In many of these cases, the company has not yet received and reviewed complete information regarding the plaintiffs and their medical conditions, and consequently, is unable to fully evaluate the claims. The company expects that it will receive and review additional information regarding any remaining unsettled product liability matters. | |
The company believes that some settlements and judgments, as well as some legal defense costs, relating to product liability matters are or may be covered in whole or in part under its product liability insurance policies with a limited number of insurance carriers, or, in some circumstances, indemnification obligations to the company from other parties. In certain circumstances, insurance carriers reserve their rights with respect to coverage, or contest or deny coverage, as has occurred with respect to certain claims. When this occurs, the company intends to vigorously contest disputes with respect to its insurance coverage and to enforce its rights under the terms of its insurance policies, and accordingly, will record receivables with respect to amounts due under these policies, when recovery is probable. Amounts recovered under the company’s product liability insurance policies or indemnification arrangements may be less than the stated coverage limits or less than otherwise expected and may not be adequate to cover damages and/or costs relating to claims. In addition, there is no guarantee that insurers or other parties will pay claims or that coverage or indemnity will be otherwise available. | |
The company’s insurance coverage with respect to the Hernia Product Claims has been exhausted. In the first quarter of 2013 the company recorded a non-cash charge of $25.0 million ($24.5 million after tax) to other (income) expense, net, for the write-down of an insurance receivable related to a dispute with one of its excess insurance carriers in connection with these claims. | |
Other Legal Matters | |
Since early 2013, the company has received subpoenas or Civil Investigative Demands from a number of State Attorneys General seeking information related to the sales and marketing of certain of the company’s products that are the subject of the Hernia Product Claims and the Women’s Health Product Claims. The company is cooperating with these requests. Since it is not feasible to predict the outcome of these proceedings, the company cannot give any assurances that the resolution of these proceedings will not have a material adverse effect on the company’s business, results of operations, financial condition and/or liquidity. | |
In December 2007, a U.S. District Court jury in Arizona found that certain of W.L. Gore & Associates Inc.’s (“Gore”) ePTFE vascular grafts and stent-grafts infringe the company’s patent number 6,436,135 (the “135 patent”). The jury upheld the validity of the patent and awarded the company $185 million in past damages. The jury also found that Gore willfully infringed the patent. In a second phase of the trial, the District Court ruled that Gore failed to prove that the patent is unenforceable due to inequitable conduct. In March 2009, the District Court doubled the jury award to approximately $371 million for damages through June 2007. The District Court also awarded the company attorneys’ fees of $19 million and prejudgment interest of approximately $20 million. In addition, the District Court denied Gore’s remaining motions, including its motions for a new trial and to set aside the jury’s verdict. In July 2010, the District Court awarded the company approximately $109 million in additional damages for the period from July 2007 through March 2009. The District Court also assessed a royalty rate of between 12.5% and 20%, depending on the product, that will be used to calculate damages for Gore’s infringing sales from April 2009 through the expiration of the patent. | |
Gore appealed this matter to the Court of Appeals for the Federal Circuit (the “Court of Appeals”), which on February 10, 2012 affirmed the decision of the District Court. Gore filed a petition with the Court of Appeals for a rehearing of its appeal. On June 14, 2012, the Court of Appeals reaffirmed its February 10, 2012 decision, including the ongoing royalty rates as set by the District Court, with the exception of the issue of willfulness with respect to Gore’s infringement of the 135 patent, which was remanded to the District Court for further consideration. On October 12, 2012, Gore filed a petition for a writ of certiorari to the U.S. Supreme Court requesting a review of the portion of the decision that the Court of Appeals reaffirmed. The U.S. Supreme Court denied Gore’s petition on January 14, 2013. | |
On January 28, 2013, Gore filed with the U.S. District Court a Request for Judicial Notice that the U.S. Patent and Trademark Office (“USPTO”) granted Gore’s previously filed request for a re-examination of the 135 patent. On April 1, 2013, the USPTO issued a First Office Action initially rejecting all of the claims of the 135 patent that are the subject of the re-examination. On July 10, 2013, the USPTO issued a Notice of Intent to Issue an Ex Parte Reexamination Certificate upholding the patentability of all re-examined claims of the 135 patent. This action terminated the re-examination proceeding and upheld the claims involved in the re-examination. | |
On remand of the action from the Court of Appeals, the District Court heard oral argument on June 5, 2013 on three motions pending before it – Gore’s motion requesting a determination that Gore’s infringement was not willful, Gore’s motion for a new trial, and the company’s motion to execute on the judgment with respect to all amounts other than enhanced damages due to willfulness. On October 16, 2013, the District Court denied Gore’s motion for entry of a judgment holding that Gore’s infringement was not willful and Gore’s motion for a new trial. The District Court granted the company’s motion to execute on the judgment, holding that all aspects of the judgment relating to infringement were “final and non-appealable.” The District Court continued its stay on the execution of the judgment with respect to willfulness and the related enhanced damages. | |
On November 1, 2013, Gore paid to the company $894.3 million in cash (the “Gore Proceeds”), the total amount of the compensatory damages for infringement, including pre- and post-judgment interest, and the royalties accrued through September 30, 2013. Gore expressly reserved its right to appeal from the District Court’s rulings and notified the company that, if successful on appeal, it would seek to recover the amounts paid to the company. On December 5, 2013, Gore filed an appeal in the Court of Appeals on all of the District Court’s rulings, including the order denying Gore’s motion for a new trial. | |
As of the third quarter of 2013, the company considered both the compensatory damages and the enhanced damages and the royalty awards to be contingent gains. In the fourth quarter of 2013, the company recorded a gain of $894.3 million ($557.4 million after tax) to other (income) expense, net, based on the District Court’s October 2013 rulings and the company’s receipt of the Gore Proceeds. In addition, in January 2014, the company received $37.6 million from Gore, representing Gore’s calculation of royalties for its infringing sales for the quarter ended December 31, 2013. This royalty payment was recorded to revenue in the first quarter of 2014. The company has received cumulative proceeds from Gore of $931.9 million through March 31, 2014. The company has concluded that the chance of Gore establishing its right to recover this cash is remote. The company continues to account for the enhanced damages awarded by the District Court due to Gore’s willfulness as a contingent gain. | |
The timing of final resolution of this litigation remains uncertain. The company cannot give any assurances that royalties for Gore’s future infringing sales will remain at or near historic levels. | |
The company is subject to numerous federal, state, local and foreign environmental protection laws governing, among other things, the generation, storage, use and transportation of hazardous materials and emissions or discharges into the ground, air or water. The company is or may become a party to proceedings brought under various federal laws including the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), commonly known as Superfund, the Resource Conservation and Recovery Act, the Clean Water Act, the Clean Air Act and similar state or foreign laws. These proceedings seek to require the owners or operators of contaminated sites, transporters of hazardous materials to the sites and generators of hazardous materials disposed of at the sites to clean up the sites or to reimburse the government for cleanup costs. In most cases, there are other potentially responsible parties that may be liable for remediation costs. In these cases, the government alleges that the defendants are jointly and severally liable for the cleanup costs; however, these proceedings are frequently resolved so that the allocation of cleanup costs among the parties more closely reflects the relative contributions of the parties to the site contamination. The company’s potential liability varies greatly from site to site. For some sites, the potential liability is de minimis and for others the costs of cleanup have not yet been determined. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of the remedial feasibility study and are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. The company believes that the proceedings and claims described above will likely be resolved over an extended period of time. While it is not feasible to predict the outcome of these proceedings, based upon the company’s experience, current information and applicable law, the company does not expect these proceedings to have a material adverse effect on its financial condition and/or liquidity. However, one or more of the proceedings could be material to the company’s business and/or results of operations. | |
Litigation Reserves | |
The company regularly monitors and evaluates the status of product liability and other legal matters, and may, from time-to-time, engage in settlement and mediation discussions taking into consideration developments in the matters and the risks and uncertainties surrounding litigation. These discussions could result in settlements of one or more of these claims at any time. | |
The company recorded a charge, net of estimated recoveries to other (income) expense, net, of approximately $293.0 million ($276.0 million after tax) in the second quarter of 2013, which recognized the estimated costs for certain of the product liability matters discussed above under the heading “Product Liability Matters”, including (with respect to such matters) asserted and unasserted claims, and costs to administer the settlements related to such matters. The company recorded this charge after evaluating these matters based on information then currently available, including: the allegations and documentation supporting or refuting such allegations; publicly available information regarding similar medical device mass tort settlements; historical information regarding other product liability settlements involving the company; and the procedural posture and stage of litigation. In the fourth quarter of 2013, based on information then available regarding these and other factors, including the increase in the number of claims, the company recorded an additional charge, net of estimated recoveries to other (income) expense, net, of approximately $108.0 million ($92.0 million after tax), which recognized the estimated additional costs for certain of these product liability matters, including (with respect to such matters) asserted and unasserted claims, and costs to administer the settlements related to such matters. These charges exclude any costs associated with all but one putative class action lawsuit. The company cannot give any assurances that the actual costs incurred with respect to these product liability matters will not exceed the related amounts accrued. With respect to product liability claims that are not resolved through settlement, the company intends to vigorously defend against such claims, including through litigation. The company cannot give any assurances that the resolution of any of its product liability matters, including asserted and unasserted claims and the putative class action lawsuits, will not have a material adverse effect on the company’s business, results of operations, financial condition and/or liquidity. | |
Accruals for product liability and other legal matters amounted to $663.3 million, of which $116.6 million was recorded to accrued expenses, and $662.4 million, of which $117.5 million was recorded to accrued expenses, at March 31, 2014 and December 31, 2013, respectively. The company made total payments of $177.1 million to qualified settlement funds (“QSFs”), subject to certain settlement conditions, for certain Hernia Product Claims. No payments were made to qualified settlement funds during the three months ended March 31, 2014. Payments to QSFs are recorded as a component of restricted cash. Total payments of $162.0 million from these QSFs have been made to qualified claimants, of which $1.2 million were made during the three months ended March 31, 2014. In addition, other payments of $32.3 million have been made to qualified claimants, of which $2.9 million were made during the three months ended March 31, 2014. | |
The company recorded receivables related to product liability matters amounting to $229.3 million and $234.9 million at March 31, 2014 and December 31, 2013, respectively. A substantial amount of the receivable at March 31, 2014 and December 31, 2013 is the subject of a dispute with a supplier who has contested at least, in part, its obligation to defend and indemnify the company, which the company refutes. After considering the following factors (as appropriate): the nature of the claims, relevant contracts, relevant legal issues, the advice and judgment of outside legal counsel, and other pertinent factors, the company believes that it should collect these receivables. | |
The company is unable to estimate the reasonably possible losses or range of losses, if any, arising from certain existing product liability matters and other legal matters. Under U.S. generally accepted accounting principles, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight”. With respect to all putative class action lawsuits relating to product liability matters, the company is unable to estimate a range of reasonably possible losses for the following reasons: (i) all or certain of the proceedings are in early stages; (ii) the company has not received and reviewed complete information regarding all or certain of the plaintiffs and their medical conditions; and/or (iii) there are significant factual issues to be resolved. In addition, there is uncertainty as to the likelihood of a class being certified or the ultimate size of the class. |
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2014 | |
Share-Based Compensation Plans | ' |
7. Share-Based Compensation Plans | |
The company may grant a variety of share-based payments under the 2012 Long Term Incentive Plan of C. R. Bard, Inc., as amended and restated (the “LTIP”) and the 2005 Directors’ Stock Award Plan of C. R. Bard, Inc., as amended and restated (the “Directors’ Plan”) to certain directors, officers and employees. The total number of remaining shares at March 31, 2014 that may be issued under the LTIP was 3,533,780 and under the Directors’ Plan was 35,707. At the company’s Annual Meeting of Shareholders on April 16, 2014, the shareholders authorized an additional 2,900,000 shares for issuance under the LTIP. Awards under the LTIP may be in the form of stock options, stock appreciation rights, limited stock appreciation rights, restricted stock, unrestricted stock and other stock-based awards. Awards under the Directors’ Plan may be in the form of stock awards, stock options or stock appreciation rights. The company also has two employee stock purchase programs. | |
For the quarters ended March 31, 2014 and 2013, amounts charged against income for share-based payment arrangements was $19.5 million and $15.8 million, respectively. | |
In the first quarter of each of 2014 and 2013, the company granted performance restricted stock units to certain officers. These units have requisite service periods of three years and have no dividend rights. The actual payout of these units varies based on the company’s performance over the three-year period based on pre-established targets over the period and a market condition modifier based on total shareholder return (“TSR”) compared to an industry peer group. The actual payout under these awards may exceed an officer’s target payout; however, compensation cost initially recognized assumes that the target payout level will be achieved and may be adjusted for subsequent changes in the expected outcome of the performance-related condition. The fair values of these units are based on the market price of the company’s stock on the date of the grant and use a Monte Carlo simulation model for the TSR component. The fair values of the TSR components of the 2014 and 2013 grants were estimated based on the following assumptions: risk-free interest rate of 0.70% and 0.42%, respectively; dividend yield of 0.62% and 0.81%, respectively; and expected life of 2.88 years for both valuations. | |
As of March 31, 2014, there were $109.1 million of unrecognized compensation expenses related to share-based payment arrangements. These costs are expected to be recognized over a weighted-average period of approximately three years. The company has sufficient shares to satisfy expected share-based payment arrangements in 2014. |
Pension_Plans
Pension Plans | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Pension Plans | ' | ||||||||
8. Pension Plans | |||||||||
Defined Benefit Pension Plans - The company has both tax-qualified and nonqualified, noncontributory defined benefit pension plans, that together cover certain domestic and foreign employees. These plans provide benefits based upon a participant’s compensation and years of service. | |||||||||
The components of net periodic pension cost are as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(dollars in millions) | |||||||||
Service cost, net of employee contributions | $ | 6.7 | $ | 7.5 | |||||
Interest cost | 5.3 | 4.6 | |||||||
Expected return on plan assets | (6.8 | ) | (6.5 | ) | |||||
Amortization | 2.4 | 3.4 | |||||||
Net periodic pension cost | $ | 7.6 | $ | 9 | |||||
Shareholders_Investment
Shareholders' Investment | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Shareholders' Investment | ' | ||||||||||||||||
9. Shareholders’ Investment | |||||||||||||||||
The company repurchased approximately 1.8 million shares of common stock for $255.7 million in the three months ended March 31, 2014 under its previously announced share repurchase authorizations. | |||||||||||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||
The changes in accumulated other comprehensive income (loss) by component are as follows: | |||||||||||||||||
Derivative | Foreign Currency | Benefit | Total | ||||||||||||||
Instruments | Translation | Plans | |||||||||||||||
Designated as | |||||||||||||||||
Cash Flow Hedges | |||||||||||||||||
(dollars in millions) | |||||||||||||||||
Balance at December 31, 2012 | $ | (0.7 | ) | $ | 32.6 | $ | (113.1 | ) | $ | (81.2 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 4 | (2.1 | ) | — | 1.9 | ||||||||||||
Tax (provision) benefit related to other comprehensive income (loss) before reclassifications(a) | (1.2 | ) | — | — | (1.2 | ) | |||||||||||
Other comprehensive income (loss) before reclassifications, net of taxes | 2.8 | (2.1 | ) | — | 0.7 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0.7 | (b) | — | 3.4 | (c) | 4.1 | |||||||||||
Tax provision (benefit) related to amounts reclassified from accumulated other comprehensive income (loss) | (0.3 | ) | — | (1.2 | ) | (1.5 | ) | ||||||||||
Reclassifications, net of tax | 0.4 | — | 2.2 | 2.6 | |||||||||||||
Other comprehensive income (loss) | 3.2 | (2.1 | ) | 2.2 | 3.3 | ||||||||||||
Balance at March 31, 2013 | $ | 2.5 | $ | 30.5 | $ | (110.9 | ) | $ | (77.9 | ) | |||||||
Balance at December 31, 2013 | $ | — | $ | 47.3 | $ | (68.2 | ) | $ | (20.9 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 0.3 | 1 | — | 1.3 | |||||||||||||
Tax (provision) benefit related to other comprehensive income (loss) before reclassifications(a) | 0.3 | — | — | 0.3 | |||||||||||||
Other comprehensive income (loss) before reclassifications, net of taxes | 0.6 | 1 | — | 1.6 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (b) | — | 2.4 | (c) | 2.4 | |||||||||||
Tax provision (benefit) related to amounts reclassified from accumulated other comprehensive income (loss) | (0.2 | ) | — | (0.8 | ) | (1.0 | ) | ||||||||||
Reclassifications, net of tax | (0.2 | ) | — | 1.6 | 1.4 | ||||||||||||
Other comprehensive income (loss) | 0.4 | 1 | 1.6 | 3 | |||||||||||||
Balance at March 31, 2014 | $ | 0.4 | $ | 48.3 | $ | (66.6 | ) | $ | (17.9 | ) | |||||||
(a) | Income taxes are not provided for foreign currency translation adjustment. | ||||||||||||||||
(b) | See Note 4 of the notes to condensed consolidated financial statements. | ||||||||||||||||
(c) | These components are included in the computation of net periodic pension cost. See Note 8 of the notes to condensed consolidated financial statements. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Information | ' | ||||||||
10. Segment Information | |||||||||
The company’s management considers its business to be a single segment entity–the manufacture and sale of medical devices. The company’s products generally share similar distribution channels and customers. The company designs, develops, manufactures, packages, distributes and sells medical, surgical, diagnostic and patient care devices. The company sells a broad range of products to hospitals, individual healthcare professionals, extended care health facilities and alternate site facilities on a global basis. In general, the company’s products are intended to be used once and then discarded or either temporarily or permanently implanted. The company’s chief operating decision makers evaluate their various global product portfolios on a net sales basis and generally evaluate profitability and associated investment on an enterprise-wide basis due to shared geographic infrastructures. | |||||||||
Net sales based on the location of external customers by geographic region are: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(dollars in millions) | |||||||||
United States | $ | 551.4 | $ | 498.5 | |||||
Europe(a) | 120.1 | 114.1 | |||||||
Japan | 38.9 | 40 | |||||||
Other(a) | 88.9 | 87.7 | |||||||
$ | 799.3 | $ | 740.3 | ||||||
(a) | Beginning in 2014, certain emerging markets in Europe are included in the “other” geographic region. Prior year amounts have been reclassified to conform to the current year presentation. | ||||||||
Total net sales by product group category are: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(dollars in millions) | |||||||||
Vascular | $ | 219.2 | $ | 203.2 | |||||
Urology | 201.4 | 188.8 | |||||||
Oncology | 219 | 207.1 | |||||||
Surgical Specialties | 135.2 | 120.3 | |||||||
Other | 24.5 | 20.9 | |||||||
$ | 799.3 | $ | 740.3 | ||||||
Earnings_per_Common_Share_Tabl
Earnings per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share Computation | ' | ||||||||
Earnings per share (“EPS”) is computed under the two-class method using the following common share information: | |||||||||
Three Months | |||||||||
Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(dollars and shares in millions) | |||||||||
EPS Numerator: | |||||||||
Net income | $ | 148.4 | $ | 90.7 | |||||
Less: Income allocated to participating securities | 2.5 | 1.7 | |||||||
Net income available to common shareholders | $ | 145.9 | $ | 89 | |||||
EPS Denominator: | |||||||||
Weighted average common shares outstanding | 77 | 81.3 | |||||||
Dilutive common share equivalents from share-based compensation plans | 1.5 | 1.2 | |||||||
Weighted average common and common equivalent shares outstanding, assuming dilution | 78.5 | 82.5 | |||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Location and Fair Value of Derivative Instruments Designated as Hedging Instruments | ' | ||||||||||||||||||||
The location and fair value of derivative instruments that are designated as hedging instruments recognized in the condensed consolidated balance sheets are as follows: | |||||||||||||||||||||
Balance Sheet | Fair Value | ||||||||||||||||||||
Location | of Derivatives | ||||||||||||||||||||
Derivatives Designated as Hedging Instruments | March 31, | December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||
Forward currency contracts | Other current assets | $ | 1.3 | $ | 1.2 | ||||||||||||||||
Option currency contracts | Other current assets | 0.7 | 1.3 | ||||||||||||||||||
Forward currency contracts | Other assets | 0.1 | — | ||||||||||||||||||
Interest rate swap contract | Other assets | 7.9 | 8.9 | ||||||||||||||||||
$ | 10 | $ | 11.4 | ||||||||||||||||||
Forward currency contracts | Accrued expenses | $ | 0.6 | $ | 0.5 | ||||||||||||||||
$ | 0.6 | $ | 0.5 | ||||||||||||||||||
Location and Amounts of Gains and Losses on Derivative Instruments Designated as Cash Flow Hedges | ' | ||||||||||||||||||||
The location and amounts of gains and losses on derivative instruments designated as cash flow hedges and the impact on shareholders’ investment are as follows: | |||||||||||||||||||||
Gain/(Loss) | Location of | Gain/(Loss) Reclassified | |||||||||||||||||||
Recognized in Other | Gain/(Loss) Reclassified | from Accumulated | |||||||||||||||||||
Comprehensive | from Accumulated | Other Comprehensive Loss | |||||||||||||||||||
Income (Loss) | Other Comprehensive Loss to | into Income | |||||||||||||||||||
Three Months Ended | Income | Three Months Ended | |||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||
Forward currency contracts | $ | 0.3 | $ | 4.8 | Cost of goods sold | $ | 0.6 | $ | (0.4 | ) | |||||||||||
Option currency contracts | (0.6 | ) | (0.3 | ) | Cost of goods sold | (0.6 | ) | (0.3 | ) | ||||||||||||
$ | (0.3 | ) | $ | 4.5 | $ | — | $ | (0.7 | ) | ||||||||||||
Location and Amounts of Gains and Losses on Derivative Instrument Designated as Fair Value Hedge | ' | ||||||||||||||||||||
The location and amounts of gains and losses on the derivative instrument designated as a fair value hedge for the three months ended March 31, are as follows: | |||||||||||||||||||||
Income Statement | Loss Recognized on Swap | Gain Recognized on Long-Term Debt | |||||||||||||||||||
Location | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(dollars in millions) | |||||||||||||||||||||
Interest rate swap contract | Interest expense | $ | (1.0 | ) | $ | (1.1 | ) | $ | 1 | $ | 1.1 | ||||||||||
Financial Instrument Assets and (Liabilities) Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||
The following table summarizes certain financial instrument assets measured at fair value on a recurring basis: | |||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||
Forward currency contracts | $ | 0.8 | $ | 0.7 | |||||||||||||||||
Option currency contracts | 0.7 | 1.3 | |||||||||||||||||||
Interest rate swap contract | 7.9 | 8.9 | |||||||||||||||||||
Accounts Receivable, Net of Allowances | ' | ||||||||||||||||||||
At March 31, 2014, the company’s accounts receivable, net of allowances, from the national healthcare systems in these countries and amounts past due greater than 365 days are as follows: | |||||||||||||||||||||
Accounts | Greater than | ||||||||||||||||||||
Receivable, net | 365 Days Past Due | ||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||
Spain | $ | 8.9 | $ | 0.1 | |||||||||||||||||
Italy | 18.9 | 2 | |||||||||||||||||||
Greece | 9.9 | 3.9 | |||||||||||||||||||
Portugal | 3.8 | 1.7 | |||||||||||||||||||
$ | 41.5 | $ | 7.7 | ||||||||||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Inventories | ' | ||||||||
Inventories consisted of: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(dollars in millions) | |||||||||
Finished goods | $ | 220.4 | $ | 218.3 | |||||
Work in process | 24.3 | 21.9 | |||||||
Raw materials | 119.5 | 116 | |||||||
$ | 364.2 | $ | 356.2 | ||||||
Pension_Plans_Tables
Pension Plans (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Components Of Net Periodic Pension Cost | ' | ||||||||
The components of net periodic pension cost are as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(dollars in millions) | |||||||||
Service cost, net of employee contributions | $ | 6.7 | $ | 7.5 | |||||
Interest cost | 5.3 | 4.6 | |||||||
Expected return on plan assets | (6.8 | ) | (6.5 | ) | |||||
Amortization | 2.4 | 3.4 | |||||||
Net periodic pension cost | $ | 7.6 | $ | 9 | |||||
Shareholders_Investment_Tables
Shareholders' Investment (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) by Component | ' | ||||||||||||||||
The changes in accumulated other comprehensive income (loss) by component are as follows: | |||||||||||||||||
Derivative | Foreign Currency | Benefit | Total | ||||||||||||||
Instruments | Translation | Plans | |||||||||||||||
Designated as | |||||||||||||||||
Cash Flow Hedges | |||||||||||||||||
(dollars in millions) | |||||||||||||||||
Balance at December 31, 2012 | $ | (0.7 | ) | $ | 32.6 | $ | (113.1 | ) | $ | (81.2 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 4 | (2.1 | ) | — | 1.9 | ||||||||||||
Tax (provision) benefit related to other comprehensive income (loss) before reclassifications(a) | (1.2 | ) | — | — | (1.2 | ) | |||||||||||
Other comprehensive income (loss) before reclassifications, net of taxes | 2.8 | (2.1 | ) | — | 0.7 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0.7 | (b) | — | 3.4 | (c) | 4.1 | |||||||||||
Tax provision (benefit) related to amounts reclassified from accumulated other comprehensive income (loss) | (0.3 | ) | — | (1.2 | ) | (1.5 | ) | ||||||||||
Reclassifications, net of tax | 0.4 | — | 2.2 | 2.6 | |||||||||||||
Other comprehensive income (loss) | 3.2 | (2.1 | ) | 2.2 | 3.3 | ||||||||||||
Balance at March 31, 2013 | $ | 2.5 | $ | 30.5 | $ | (110.9 | ) | $ | (77.9 | ) | |||||||
Balance at December 31, 2013 | $ | — | $ | 47.3 | $ | (68.2 | ) | $ | (20.9 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 0.3 | 1 | — | 1.3 | |||||||||||||
Tax (provision) benefit related to other comprehensive income (loss) before reclassifications(a) | 0.3 | — | — | 0.3 | |||||||||||||
Other comprehensive income (loss) before reclassifications, net of taxes | 0.6 | 1 | — | 1.6 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (b) | — | 2.4 | (c) | 2.4 | |||||||||||
Tax provision (benefit) related to amounts reclassified from accumulated other comprehensive income (loss) | (0.2 | ) | — | (0.8 | ) | (1.0 | ) | ||||||||||
Reclassifications, net of tax | (0.2 | ) | — | 1.6 | 1.4 | ||||||||||||
Other comprehensive income (loss) | 0.4 | 1 | 1.6 | 3 | |||||||||||||
Balance at March 31, 2014 | $ | 0.4 | $ | 48.3 | $ | (66.6 | ) | $ | (17.9 | ) | |||||||
(a) | Income taxes are not provided for foreign currency translation adjustment. | ||||||||||||||||
(b) | See Note 4 of the notes to condensed consolidated financial statements. | ||||||||||||||||
(c) | These components are included in the computation of net periodic pension cost. See Note 8 of the notes to condensed consolidated financial statements. |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Net Sales Based on Location of External Customers by Geographic Region | ' | ||||||||
Net sales based on the location of external customers by geographic region are: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(dollars in millions) | |||||||||
United States | $ | 551.4 | $ | 498.5 | |||||
Europe(a) | 120.1 | 114.1 | |||||||
Japan | 38.9 | 40 | |||||||
Other(a) | 88.9 | 87.7 | |||||||
$ | 799.3 | $ | 740.3 | ||||||
(a) | Beginning in 2014, certain emerging markets in Europe are included in the “other” geographic region. Prior year amounts have been reclassified to conform to the current year presentation. | ||||||||
Total Net Sales by Product Group Category | ' | ||||||||
Total net sales by product group category are: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(dollars in millions) | |||||||||
Vascular | $ | 219.2 | $ | 203.2 | |||||
Urology | 201.4 | 188.8 | |||||||
Oncology | 219 | 207.1 | |||||||
Surgical Specialties | 135.2 | 120.3 | |||||||
Other | 24.5 | 20.9 | |||||||
$ | 799.3 | $ | 740.3 | ||||||
Earnings_Per_Share_Computation
Earnings Per Share Computation (Detail) (USD $) | 3 Months Ended | |
Share data in Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' |
Net income | $148,400,000 | $90,700,000 |
Less: Income allocated to participating securities | 2,500,000 | 1,700,000 |
Net income available to common shareholders | $145,900,000 | $89,000,000 |
Weighted average common shares outstanding | 77 | 81.3 |
Dilutive common share equivalents from share-based compensation plans | 1.5 | 1.2 |
Weighted average common and common equivalent shares outstanding, assuming dilution | 78.5 | 82.5 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Income Tax [Line Items] | ' | ' | ' |
Effective income tax rate | 19.20% | 28.90% | ' |
Income tax examination, increase (decrease) in liability from prior year | $10.90 | ' | ' |
Reduction in income tax provision, research credit | ' | 3.7 | ' |
Unrecognized tax benefits related to federal, state and foreign taxes | 30 | ' | 58 |
Unrecognized tax benefits that would impact effective tax rate | 25.2 | ' | ' |
Accrued interest | 4.1 | ' | 6.6 |
Decrease in unrecognized tax benefits within the next 12 months | $3.70 | ' | ' |
Number of months unrecognized tax benefits may decrease | '12 months | ' | ' |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 2 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Fair Value, Inputs, Level 3 | Foreign Exchange Contract | Foreign Exchange Contract | Interest rate swap contract | Five-Year Credit Facility Expiring In September 2018 | Commercial Paper | Commercial Paper |
Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | Fair Value, Measurements, Recurring | |||||||||
Accrued Expense | Accrued Expense | |||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional value of derivative contracts | ' | ' | ' | ' | ' | ' | $137 | $148.90 | $250 | ' | ' | ' |
Fixed-rate notes interest percentage | ' | ' | ' | ' | ' | ' | ' | ' | 2.88% | ' | ' | ' |
Fixed-rate notes due date | ' | ' | ' | ' | ' | ' | ' | ' | '2016 | ' | ' | ' |
Fair value of contingent consideration | ' | ' | 96.5 | 95.7 | 84 | 10.3 | ' | ' | ' | ' | ' | ' |
Line of credit facility, borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750 | ' | ' |
Line of credit facility, expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2018-09 | ' | ' |
Line of credit facility, term, in years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
Commercial paper borrowings outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Fair value of long-term debt including the effects of the related interest rate swap contract | $1,477.40 | $1,435.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Location_and_Fair_Value_of_Der
Location and Fair Value of Derivative Instruments Designated as Hedging Instruments (Detail) (Derivatives Designated as Hedging Instruments, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative assets | $10 | $11.40 |
Fair value of derivative liability | 0.6 | 0.5 |
Forward currency contracts | Other Current Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative assets | 1.3 | 1.2 |
Forward currency contracts | Other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative assets | 0.1 | 0 |
Forward currency contracts | Accrued Expenses | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative liability | 0.6 | 0.5 |
Option currency contracts | Other Current Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative assets | 0.7 | 1.3 |
Interest rate swap contract | Other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value of derivative assets | $7.90 | $8.90 |
Location_and_Amounts_of_Gains_
Location and Amounts of Gains and Losses on Derivative Instruments Designated as Cash Flow Hedges (Detail) (Cash flow hedges, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain/(Loss) Recognized in Other Comprehensive Income (Loss) | ($0.30) | $4.50 |
Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | 0 | -0.7 |
Forward currency contracts | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain/(Loss) Recognized in Other Comprehensive Income (Loss) | 0.3 | 4.8 |
Forward currency contracts | Cost of Goods Sold | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | 0.6 | -0.4 |
Option currency contracts | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain/(Loss) Recognized in Other Comprehensive Income (Loss) | -0.6 | -0.3 |
Option currency contracts | Cost of Goods Sold | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | ($0.60) | ($0.30) |
Location_and_Amounts_of_Gains_1
Location and Amounts of Gains and Losses on Derivative Instrument Designated as Fair Value Hedge (Detail) (Interest rate swap contract, Interest Expense, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest rate swap contract | Interest Expense | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Loss Recognized on Swap | ($1) | ($1.10) |
Gain Recognized on Long-Term Debt | $1 | $1.10 |
Financial_Instrument_Assets_an
Financial Instrument Assets and (Liabilities) Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, Fair Value, Inputs, Level 2, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Forward currency contracts | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instrument assets and (liabilities) measured at fair value | $0.80 | $0.70 |
Option currency contracts | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instrument assets and (liabilities) measured at fair value | 0.7 | 1.3 |
Interest rate swap contract | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Financial instrument assets and (liabilities) measured at fair value | $7.90 | $8.90 |
Accounts_Receivable_Net_of_All
Accounts Receivable, Net of Allowances (Detail) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Accounts receivable, net | $41.50 |
Greater than 365 days past due | 7.7 |
Spain | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Accounts receivable, net | 8.9 |
Greater than 365 days past due | 0.1 |
Italy | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Accounts receivable, net | 18.9 |
Greater than 365 days past due | 2 |
Greece | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Accounts receivable, net | 9.9 |
Greater than 365 days past due | 3.9 |
Portugal | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Accounts receivable, net | 3.8 |
Greater than 365 days past due | $1.70 |
Inventories_Detail
Inventories (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Inventory [Line Items] | ' | ' |
Finished goods | $220,400,000 | $218,300,000 |
Work in process | 24,300,000 | 21,900,000 |
Raw materials | 119,500,000 | 116,000,000 |
Inventory, net, total | $364,200,000 | $356,200,000 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 5 Months Ended | 1 Months Ended | 3 Months Ended | 27 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | ||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Nov. 02, 2013 | Jan. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Jul. 31, 2010 | Mar. 31, 2009 | Dec. 31, 2007 | Mar. 31, 2009 | Mar. 31, 2009 | Jul. 31, 2010 | Jul. 31, 2010 | Jun. 30, 2007 | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 17, 2014 | Apr. 17, 2014 | Apr. 17, 2014 | Apr. 17, 2014 | Apr. 17, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Apr. 17, 2014 | Jul. 31, 2012 | Apr. 17, 2014 | Apr. 17, 2014 | Apr. 17, 2014 | Jan. 16, 2014 | Jul. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Apr. 17, 2014 | Apr. 17, 2014 |
Total Receivables Related to Product Liability Matters | Total Receivables Related to Product Liability Matters | W. L. Gore | W. L. Gore | W. L. Gore | W. L. Gore | W. L. Gore | W. L. Gore | W. L. Gore | W. L. Gore | W. L. Gore | W. L. Gore | W. L. Gore | Hernia Product Claims | Hernia Product Claims | Hernia Product Claims | Hernia Product Claims | Hernia Product Claims | Hernia Product Claims | Hernia Product Claims | Hernia Product Claims | Hernia Product Claims | Hernia Product Claims | Hernia Product Claims | Women's Health Product Claims | Women's Health Product Claims | Women's Health Product Claims | Women's Health Product Claims | Women's Health Product Claims | Women's Health Product Claims | Women's Health Product Claims | Women's Health Product Claims | Filter Product Claims | Filter Product Claims | Filter Product Claims | Filter Product Claims | Filter Product Claims | ||||
Attorney Fees | Prejudgment Interest | Minimum | Maximum | LegalMatter | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Arbitration Proceedings | Arbitration Proceedings | Superior Court of State of Rhode Island | Subsequent Event | Subsequent Event | Subsequent Event | Multi District Litigation | Multi District Litigation | Multi District Litigation | New Jersey state case | State Law Claims | State Law Claims | Minimum | Subsequent Event | Subsequent Event | ||||||||||||||||
Plaintiff | United States | Canada | State Law Claims | Federal Law Claims | Carriers | Other (income) expense | Subsequent Event | Claim | United States | Canada | LegalMatter | Claim | Claim | LegalMatter | LegalMatter | State Law Claims | Plaintiff | State Law Claims | ||||||||||||||||||||||
LegalMatter | LegalMatter | LegalMatter | LegalMatter | State Law Claims | Plaintiff | LegalMatter | LegalMatter | LegalMatter | LegalMatter | LegalMatter | ||||||||||||||||||||||||||||||
Plaintiff | LegalMatter | |||||||||||||||||||||||||||||||||||||||
LegalMatter | ||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of lawsuits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | 325 | 495 | ' | ' | 305 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of individual plaintiffs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 970 | ' | ' | ' | ' | ' | ' | 435 | ' | 11,210 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 | ' |
Number of putative class actions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | 3 |
Number of previously filed class action lawsuits consolidated into putative class actions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Putative Class Actions Settled | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Multidistrict Litigations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U. S. District Court award for plaintiff's damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.60 | ' | ' | ' | ' | $2 | ' | ' | ' | ' | ' | ' | ' |
Loss contingency claims settled number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | ' | ' | ' | ' | ' |
Loss contingency claims dismissed number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' |
Number of individual case for trial | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200 | ' | ' | ' | ' | ' | ' | ' | ' |
Expected trial date scheduled by Court | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2014-05 | ' | ' | ' | ' | ' | ' | ' | ' |
Generic complaints | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of claim not yet filed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,330 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 165 | ' |
Number of putative class actions dismissed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' |
Number of putative class actions with class certification denied | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' |
Period for additional Filter Product Claims trials | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months |
Number of claims in settlement agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' | ' |
Non-cash charge write off related to insurance receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-cash charge write off related to insurance receivable after tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of insurance carriers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U. S. District Court award for damages | ' | ' | ' | ' | ' | ' | ' | ' | ' | 109 | 371 | 185 | 19 | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Court-assessed royalty rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.50% | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation judgment or settlement, amount | ' | ' | ' | ' | ' | 894.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) related to litigation judgment or settlement | ' | ' | ' | ' | ' | ' | ' | 894.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) related to litigation judgment or settlement, after tax | ' | ' | ' | ' | ' | ' | ' | 557.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation related royalty revenue | ' | ' | ' | ' | ' | ' | 37.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative Litigation Settlement Amount | ' | ' | ' | ' | ' | ' | ' | ' | 931.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Claims, charges incurred before taxes | 108 | 293 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Claims, charges incurred after tax | 92 | 276 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accruals for product liability and other legal matters | 662.4 | ' | 663.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accruals for product liability and other legal matters, accrued expenses | 117.5 | ' | 116.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to qualified settlement fund | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 177.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to qualified claimants from qualified settlement funds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.2 | 162 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other payments to qualified claimants from qualified settlement funds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.9 | 32.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables related to product liability matters | ' | ' | ' | $229.30 | $234.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Plans_
Share-Based Compensation Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Apr. 16, 2014 | Mar. 31, 2014 | |
CompensationPlan | Performance Restricted Stock Units | Performance Restricted Stock Units | 2012 Long Term Incentive Plan | 2012 Long Term Incentive Plan | Directors Plan | ||
Subsequent Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Additional shares authorized | ' | ' | ' | ' | ' | 2,900,000 | ' |
Number of remaining shares that may be issued | ' | ' | ' | ' | 3,533,780 | ' | 35,707 |
Number of employee stock purchase programs | 2 | ' | ' | ' | ' | ' | ' |
Share-based payment arrangements | $19,500,000 | $15,800,000 | ' | ' | ' | ' | ' |
Award requisite service periods | ' | ' | '3 years | '3 years | ' | ' | ' |
Fair value assumptions, risk-free interest rate | ' | ' | 0.70% | 0.42% | ' | ' | ' |
Fair value assumptions, dividend yield | ' | ' | 0.62% | 0.81% | ' | ' | ' |
Fair value assumptions, expected life in years | ' | ' | '2 years 10 months 17 days | '2 years 10 months 17 days | ' | ' | ' |
Unrecognized compensation expenses related to share-based payment arrangements | $109,100,000 | ' | ' | ' | ' | ' | ' |
Weighted-average period of recognizing unrecognized compensation expenses related to share-based compensation, in years | '3 years | ' | ' | ' | ' | ' | ' |
Components_of_Net_Periodic_Pen
Components of Net Periodic Pension Cost (Detail) (Pension Plans, Defined Benefit, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Pension Plans, Defined Benefit | ' | ' |
Pension and Other Postretirement Benefits Disclosure [Line Items] | ' | ' |
Service cost, net of employee contributions | $6.70 | $7.50 |
Interest cost | 5.3 | 4.6 |
Expected return on plan assets | -6.8 | -6.5 |
Amortization | 2.4 | 3.4 |
Net periodic pension cost | $7.60 | $9 |
Shareholders_Investment_Additi
Shareholders' Investment - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Shareholders Equity [Line Items] | ' |
Number of shares of common stock purchased | 1.8 |
Purchase of common stock | $255.70 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning balance | ($20,900,000) | ($81,200,000) | ||
Other comprehensive income (loss) before reclassifications | 1,300,000 | 1,900,000 | ||
Tax (provision) benefit related to other comprehensive income (loss) before reclassifications | 300,000 | [1] | -1,200,000 | [1] |
Other comprehensive income (loss) before reclassifications, net of taxes | 1,600,000 | 700,000 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 2,400,000 | 4,100,000 | ||
Tax provision (benefit) related to amounts reclassified from accumulated other comprehensive income (loss) | -1,000,000 | -1,500,000 | ||
Reclassifications, net of tax | 1,400,000 | 2,600,000 | ||
Other comprehensive income (loss) | 3,000,000 | 3,300,000 | ||
Ending balance | -17,900,000 | -77,900,000 | ||
Derivative Instruments Designated as Cash Flow Hedges | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning balance | 0 | -700,000 | ||
Other comprehensive income (loss) before reclassifications | 300,000 | 4,000,000 | ||
Tax (provision) benefit related to other comprehensive income (loss) before reclassifications | 300,000 | [1] | -1,200,000 | [1] |
Other comprehensive income (loss) before reclassifications, net of taxes | 600,000 | 2,800,000 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | [2] | 700,000 | [2] |
Tax provision (benefit) related to amounts reclassified from accumulated other comprehensive income (loss) | -200,000 | -300,000 | ||
Reclassifications, net of tax | -200,000 | 400,000 | ||
Other comprehensive income (loss) | 400,000 | 3,200,000 | ||
Ending balance | 400,000 | 2,500,000 | ||
Foreign Currency Translation | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning balance | 47,300,000 | 32,600,000 | ||
Other comprehensive income (loss) before reclassifications | 1,000,000 | -2,100,000 | ||
Tax (provision) benefit related to other comprehensive income (loss) before reclassifications | 0 | [1] | 0 | [1] |
Other comprehensive income (loss) before reclassifications, net of taxes | 1,000,000 | -2,100,000 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Tax provision (benefit) related to amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Reclassifications, net of tax | 0 | 0 | ||
Other comprehensive income (loss) | 1,000,000 | -2,100,000 | ||
Ending balance | 48,300,000 | 30,500,000 | ||
Benefit Plans | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning balance | -68,200,000 | -113,100,000 | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Tax (provision) benefit related to other comprehensive income (loss) before reclassifications | 0 | [1] | 0 | [1] |
Other comprehensive income (loss) before reclassifications, net of taxes | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 2,400,000 | [3] | 3,400,000 | [3] |
Tax provision (benefit) related to amounts reclassified from accumulated other comprehensive income (loss) | -800,000 | -1,200,000 | ||
Reclassifications, net of tax | 1,600,000 | 2,200,000 | ||
Other comprehensive income (loss) | 1,600,000 | 2,200,000 | ||
Ending balance | ($66,600,000) | ($110,900,000) | ||
[1] | Income taxes are not provided for foreign currency translation adjustment. | |||
[2] | See Note 4 of the notes to condensed consolidated financial statements. | |||
[3] | These components are included in the computation of net periodic pension cost. See Note 8 of the notes to condensed consolidated financial statements. |
Net_Sales_Based_on_Location_of
Net Sales Based on Location of External Customers by Geographic Region (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | $799,300 | $740,300 | ||
United States | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 551,400 | 498,500 | ||
Europe | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 120,100 | [1] | 114,100 | [1] |
Japan | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | 38,900 | 40,000 | ||
Other | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Net sales | $88,900 | [1] | $87,700 | [1] |
[1] | Beginning in 2014, certain emerging markets in Europe are included in the "other" geographic region. Prior year amounts have been reclassified to conform to the current year presentation. |
Total_Net_Sales_by_Product_Gro
Total Net Sales by Product Group Category (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | $799,300 | $740,300 |
Vascular | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 219,200 | 203,200 |
Urology | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 201,400 | 188,800 |
Oncology | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 219,000 | 207,100 |
Surgical Specialties | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | 135,200 | 120,300 |
Other Product Group | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Net sales | $24,500 | $20,900 |