Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2016shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | BCR |
Entity Registrant Name | BARD C R INC /NJ/ |
Entity Central Index Key | 9,892 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 73,318,689 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net sales | $ 873.5 | $ 819.7 |
Costs and expenses: | ||
Cost of goods sold | 320.4 | 311.2 |
Marketing, selling and administrative expense | 270.6 | 235.7 |
Research and development expense | 68.3 | 60.6 |
Interest expense | 11.3 | 11.3 |
Other (income) expense, net | 60 | 16.3 |
Total costs and expenses | 730.6 | 635.1 |
Income from operations before income taxes | 142.9 | 184.6 |
Income tax provision | 26.7 | 44.8 |
Net income | $ 116.2 | $ 139.8 |
Basic earnings per share available to common shareholders | $ 1.56 | $ 1.85 |
Diluted earnings per share available to common shareholders | $ 1.54 | $ 1.82 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net income | $ 116.2 | $ 139.8 |
Other comprehensive income (loss) | ||
Change in derivative instruments designated as cash flow hedges, net of tax | (9.2) | 0.1 |
Foreign currency translation adjustments | 1.6 | (53.7) |
Benefit plan adjustments, net of tax | 1.7 | 1.9 |
Other comprehensive income (loss) | (5.9) | (51.7) |
Comprehensive income | $ 110.3 | $ 88.1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 765 | $ 950.5 |
Restricted cash | 210.6 | 80.4 |
Accounts receivable, less allowances of $10,300 and $7,500, respectively | 458.1 | 445.1 |
Inventories | 439.7 | 413.7 |
Short-term deferred tax assets | 97.3 | 123.9 |
Other current assets | 104.2 | 79.6 |
Total current assets | 2,074.9 | 2,093.2 |
Property, plant and equipment, at cost | 831 | 807.8 |
Less accumulated depreciation and amortization | 357.1 | 335.4 |
Net property, plant and equipment | 473.9 | 472.4 |
Goodwill | 1,264.2 | 1,140.6 |
Core and developed technologies, net | 728.2 | 744.3 |
Other intangible assets, net | 383.2 | 274.8 |
Deferred tax assets | 28.8 | 21.8 |
Other assets | 223.7 | 192.1 |
Total assets | 5,176.9 | 4,939.2 |
Current liabilities | ||
Short-term borrowings and current maturities of long-term debt | 525.6 | 250.2 |
Accounts payable | 96.8 | 70.7 |
Accrued expenses | 623 | 730 |
Accrued compensation and benefits | 140.3 | 187.9 |
Income taxes payable | 7.9 | 23 |
Total current liabilities | 1,393.6 | 1,261.8 |
Long-term debt | 1,144.5 | 1,144.1 |
Other long-term liabilities | 1,015 | 936.7 |
Deferred income taxes | $ 163.9 | $ 141.3 |
Commitments and contingencies | ||
Shareholders' investment: | ||
Preferred stock, $1 par value, authorized 5,000,000 shares; none issued | ||
Common stock, $0.25 par value, authorized 600,000,000 shares; issued and outstanding 73,318,689 shares at March 31, 2016 and 73,697,371 shares at December 31, 2015 | $ 18.3 | $ 18.4 |
Capital in excess of par value | 2,210 | 2,148.4 |
Accumulated deficit | (554.5) | (503.5) |
Accumulated other comprehensive loss | (213.9) | (208) |
Total shareholders' investment | 1,459.9 | 1,455.3 |
Total liabilities and shareholders' investment | $ 5,176.9 | $ 4,939.2 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts receivable, allowances | $ 10.3 | $ 7.5 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.25 | $ 0.25 |
Common stock, authorized | 600,000,000 | 600,000,000 |
Common stock, issued | 73,318,689 | 73,697,371 |
Common stock, outstanding | 73,318,689 | 73,697,371 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 116.2 | $ 139.8 |
Adjustments to reconcile net income to net cash provided by operating activities, net of acquired businesses: | ||
Depreciation and amortization | 53 | 46.1 |
Litigation charges | 48.9 | 10.3 |
Restructuring and productivity initiative costs, net of payments | 7.7 | 3.3 |
Deferred income taxes | 20.9 | 26.5 |
Share-based compensation | 26.2 | 23 |
Inventory reserves and provision for doubtful accounts | 9.3 | 5.2 |
Other items | 1 | 1.3 |
Changes in assets and liabilities, net of acquired businesses: | ||
Accounts receivable | 6.1 | 8.6 |
Inventories | (21.3) | (20.6) |
Current liabilities | (138.2) | (104.1) |
Taxes | (40.1) | (8.3) |
Other, net | (22.5) | (17.1) |
Net cash provided by operating activities | 67.2 | 114 |
Cash flows from investing activities: | ||
Capital expenditures | (20.5) | (29.2) |
Change in restricted cash | (130.2) | 26.1 |
Payments made for purchases of businesses, net of cash acquired | (202.8) | 0 |
Payments made for intangibles | (0.2) | (0.2) |
Net cash used in investing activities | (353.7) | (3.3) |
Cash flows from financing activities: | ||
Change in short-term borrowings, net | 525.6 | 153 |
Payment of long-term debt | (250) | 0 |
Proceeds from exercises under share-based compensation plans, net | (6.5) | 5.3 |
Excess tax benefit relating to share-based compensation plans | 19 | 17.6 |
Purchases of common stock | (167.4) | (204.2) |
Dividends paid | (18) | (16.8) |
Payments of contingent consideration | (0.1) | (4) |
Net cash provided by (used in) financing activities | 102.6 | (49.1) |
Effect of exchange rate changes on cash and cash equivalents | (1.6) | (17.5) |
(Decrease) increase in cash and cash equivalents during the period | (185.5) | 44.1 |
Balance at January 1 | 950.5 | 960.1 |
Balance at March 31 | 765 | 1,004.2 |
Cash paid for: | ||
Interest | 16.6 | 16 |
Income taxes | 26.9 | 9 |
Non-cash transactions: | ||
Purchases of businesses and related costs | $ 17.1 | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
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 2015 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 2015 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 29, 2016 and February 28, 2015 and as of November 30, 2015. No events occurred related to these foreign subsidiaries during the months of March 2016, March 2015 or December 2015 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. Recently Adopted Accounting Pronouncement In April 2015, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update that requires debt issuance costs to be presented as a direct deduction from the carrying amount of the related debt rather than as an asset. In 2016, the company retrospectively adopted this update, as required, and the amounts reclassified from other assets to long-term debt on the consolidated balance sheets were not material. New Accounting Pronouncements Not Yet Adopted In March 2016, the FASB issued an accounting standard update that includes multiple provisions intended to simplify various aspects of the accounting for share-based payments, including the income tax items and the classification of these items on the statement of cash flows. This update will be effective as of the beginning of Bard’s 2017 fiscal year. The company is assessing this update and has not yet determined the impact to the consolidated financial statements. In February 2016, the FASB issued a new accounting standard to use in the accounting for leases. The new standard will require, among other items, lessees to recognize most leases on the balance sheet by recording a right-of-use asset and a lease liability. This standard will be effective as of the beginning of Bard’s 2019 fiscal year. The company is assessing the new standard and has not yet determined the impact to the consolidated financial statements. In November 2015, the FASB issued an accounting standard update that simplifies the balance sheet classification of deferred taxes. This update requires all deferred tax assets and liabilities to be reported as non-current in the balance sheet. This update will be effective as of the beginning of Bard’s 2017 fiscal year. Other than the reclassification to non-current of the short-term deferred tax assets and liabilities recognized in the consolidated balance sheets, this update is not expected to have a material impact on the company’s consolidated financial statements. In May 2014, the FASB issued a new accounting standard that provides for a comprehensive model to use in the accounting for revenue arising from contracts with customers. Under this standard, revenue will be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The company continues to assess the new standard, as well as updates to the standard that have been proposed by the FASB, and has not yet determined the impact to the consolidated financial statements. The company will adopt the new standard beginning with Bard’s 2018 fiscal year. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2016 | |
Acquisitions | 2. Acquisitions On January 21, 2016, the company acquired all of the outstanding shares of Liberator Medical Holdings, Inc. (“Liberator”), a publicly-held direct-to-consumer distributor of urological catheters, ostomy supplies, mastectomy fashions and diabetic medical supplies for a purchase price of $181.1 million. This acquisition enhances the company’s position in the home healthcare market in the United States. The acquisition was accounted for as a business combination, and the results of operations have been included in the company’s results since the acquisition date. The fair value of the assets acquired and the liabilities assumed results in the recognition of: customer relationships of $53.0 million; other intangibles of $26.0 million, primarily consisting of a trade name and non-compete agreements; deferred tax liabilities of $31.6 million, primarily associated with intangible assets; and other net assets of $11.9 million. The excess of the purchase price over fair value of the acquired net assets was recorded as goodwill of $121.8 million. The goodwill recognized includes the value of expected market expansion in the home healthcare market through Liberator’s direct-to-consumer capabilities that provide additional opportunity for market penetration. Additionally, synergies are expected to result from the alignment of sales call points within the company’s sales organization. The goodwill is not deductible for tax purposes. Customer relationships and other intangible assets are being amortized over their weighted average estimated useful lives of approximately 12 years and 8 years, respectively. The company has not yet finalized the purchase accounting, which may be adjusted as further information about conditions existing at the acquisition date become available. On December 3, 2015, the company, through a wholly-owned foreign subsidiary, acquired all of the outstanding shares of Embo Medical Limited (“Embo”), a privately-held company headquartered in Galway, Ireland, specializing in the development of peripheral embolization devices. The total purchase consideration included an up-front cash payment of $21.0 million and the fair value of future additional milestone payments of up to $22.5 million that are contingent upon specific regulatory and revenue-related milestones being achieved, which had a fair value of $16.6 million as of the acquisition date. The acquisition was recognized in the first quarter of 2016 for this foreign subsidiary. The fair value of the assets acquired and the liabilities assumed resulted in the recognition of: an acquired in-process research and development asset (“IPR&D”) of $36.1 million related to the development of the Caterpillar TM |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings per Common Share | 3. 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, 2016 2015 (dollars and shares in millions) EPS Numerator: Net income $ 116.2 $ 139.8 Less: Income allocated to participating securities 0.6 2.1 Net income available to common shareholders $ 115.6 $ 137.7 EPS Denominator: Weighted average common shares outstanding 74.0 74.4 Dilutive common share equivalents from share-based compensation plans 1.2 1.4 Weighted average common and common equivalent shares outstanding, assuming dilution 75.2 75.8 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes | 4. Income Taxes The company’s effective tax rate for the quarter ended March 31, 2016 was 18.7% compared to 24.3% for the same period in the prior year. The effective tax rate for the quarter ended March 31, 2016 reflected the discrete tax effects of litigation charges related to product liability claims, which were incurred in a high tax jurisdiction. See Note 7 of the notes to condensed consolidated financial statements. At March 31, 2016, the total amount of liability for unrecognized tax benefits related to federal, state and foreign taxes was $23.3 million (of which $19.7 million would impact the effective tax rate, if recognized) plus $3.1 million of accrued interest. At December 31, 2015, the liability for unrecognized tax benefits was $22.3 million plus $2.8 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 $8.3 million within the next 12 months. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Financial Instruments | 5. Financial Instruments For further discussion regarding the company’s use of derivative instruments, see Note 1 of the notes to consolidated financial statements in Bard’s 2015 Annual Report on Form 10-K. 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 $205.4 million and $191.6 million at March 31, 2016 and December 31, 2015, respectively. Interest Rate Derivative Instruments In January 2016, the company’s outstanding interest rate swap contract was terminated concurrent with the maturity of the underlying 2.875% fixed-rate notes. The notional value of the company’s interest rate swap contract was $250 million and effectively converted these fixed-rate notes to a floating-rate instrument. The company maintains a forward starting interest rate swap contract which is intended to manage its exposure to interest rate volatility in anticipation of issuing fixed-rate debt. The company’s forward swap contract has a notional value of $250 million and a mandatory termination date of May 2016. 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 Location Fair Value Derivatives Designated as Hedging Instruments March 31, 2016 December 31, (dollars in millions) Forward currency contracts Other current assets $ 1.2 $ 2.9 Option currency contracts Other current assets 1.7 3.8 Interest rate swap contract Other current assets — 0.2 Forward currency contracts Other assets 0.1 — $ 3.0 $ 6.9 Forward currency contracts Accrued expenses $ 4.0 $ 6.2 Interest rate swap contract Accrued expenses 22.5 8.0 $ 26.5 $ 14.2 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 from Accumulated Other Comprehensive Loss into Gain/(Loss) Reclassified Three Months Ended Three Months Ended 2016 2015 2016 2015 (dollars in millions) Forward currency contracts $ (0.8 ) $ 0.1 Cost of goods sold $ (2.4 ) $ 0.8 Option currency contracts (1.7 ) 9.0 Cost of goods sold 1.8 1.1 Interest rate swap contract (14.5 ) (7.9 ) Interest expense — — $ (17.0 ) $ 1.2 $ (0.6 ) $ 1.9 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 and (liabilities) measured at fair value on a recurring basis: March 31, December 31, (dollars in millions) Forward currency contracts $ (2.7 ) $ (3.3 ) Option currency contracts 1.7 3.8 Interest rate swap contracts (22.5 ) (7.8 ) 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 $22.8 million and $11.2 million at March 31, 2016 and December 31, 2015, respectively. The increase in the fair value of the liability for contingent consideration was primarily related to the addition of contingent consideration due to the acquisition of Embo and was partly offset by a reduction in the probability of the achievement of other unrelated revenue-based and manufacturing-related milestones. See Note 2 of the notes to condensed consolidated financial statements. 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 $1 billion five-year committed syndicated bank credit facility that expires in November 2020. 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 ratings and includes a financial covenant that limits the amount of total debt to total capitalization. At March 31, 2016 the company was in compliance with this covenant. The fair value of commercial paper borrowings outstanding of $525.6 million at March 31, 2016 approximated the carrying value. There were no commercial paper borrowings outstanding at December 31, 2015. The estimated fair value of long-term debt (including current maturities and the effect of the related interest rate swap contract for the prior year period) was approximately $1,227.0 million and $1,449.8 million at March 31, 2016 and December 31, 2015, respectively. The decrease in fair value is primarily due to the company’s redemption of its $250 million 2.875% notes due January 2016. The fair value was estimated using dealer quotes for similarly-rated debt instruments over the remaining contractual term of the company’s obligation and is categorized as Level 2 under the fair value hierarchy. The fair value of the non-contingent future payments related to the Medicon, Inc. acquisition of $70.9 million and $66.0 million at March 31, 2016 and December 31, 2015, respectively, approximated the carrying value. At March 31, 2016 and December 31, 2015, future payments of $54.1 million and $50.3 million, respectively, were recorded to other long-term liabilities. These payments will be paid in Japanese Yen and are subject to exchange rate fluctuations. The fair value was estimated by discounting the future payments based upon the timing of such payments and 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 monitors economic conditions and evaluates accounts receivable in certain countries for potential collection risks. Economic conditions and other factors in certain countries, particularly in Spain, Italy, Greece and Portugal, 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. At March 31, 2016, the company’s accounts receivable, net of allowances, from the national healthcare systems and private sector customers in these four countries was $49.6 million, of which $4.7 million was greater than 365 days past due. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2016 | |
Inventories | 6. Inventories Inventories consisted of: March 31, December 31, (dollars in millions) Finished goods $ 259.8 $ 252.3 Work in process 30.1 23.8 Raw materials 149.8 137.6 $ 439.7 $ 413.7 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Contingencies | 7. Contingencies 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 Hernia Product Claims As of March 31, 2016, approximately 40 federal and 60 state lawsuits involving individual claims by approximately 100 plaintiffs, as well as one putative class action in the United States, are currently pending against the company with respect to its Composix ® ® ® ® ® ® The company has resolved the majority of its historical Hernia Product Claims, including through agreements or agreements in principle with various plaintiffs’ law firms to settle their respective inventories of cases. Each agreement involving the settlement of a firm’s inventory of claims 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 expects additional trials of Hernia Product Claims to take place over the next 12 months. 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 lawsuit, will not have a material adverse effect on the company’s business, results of operations, financial condition and/or liquidity. Women’s Health Product Claims As of March 31, 2016, product liability lawsuits involving individual claims by approximately 12,875 plaintiffs are currently pending 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. With respect to a majority of these lawsuits, the company believes that two subsidiaries of Medtronic plc (as successor in interest to Covidien plc) (“Medtronic”), each a supplier of the company, have an obligation to defend and indemnify the company with respect to any product defect liability. As described below, in July 2015 the company reached an agreement with Medtronic regarding certain aspects of Medtronic’s indemnification obligation. In addition, five putative class actions in the United States and five putative class actions in Canada have been filed against the company, and a limited number of other claims have been filed or asserted in various non-U.S. jurisdictions. The foregoing lawsuits, unfiled or unknown claims, putative class actions and other claims, together with claims that have settled or are the subject of agreements or agreements in principle to settle, are referred to collectively as 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. In April 2015, the Ontario Superior Court of Justice dismissed the plaintiffs’ motion for class certification in one Canadian putative class action. In March 2016, the company reached an agreement in principle to resolve all Canadian putative class actions, with the exception of a Quebec class action, within amounts previously recorded by the company. The company expects administration of those settlements to take place over the next several quarters. In October 2010, the Women’s Health Product Claims involving solely Avaulta ® As of March 31, 2016, the company reached agreements or agreements in principle with various plaintiffs’ law firms to settle their respective inventories of cases totaling approximately 6,845 Women’s Health Product Claims, including approximately: 560 during 2014 and 6,285 during 2015. The company believes that these Women’s Health Product Claims are not the subject of Medtronic’s indemnification obligation. These settlement agreements and agreements in principle include unfiled and previously unknown claims held by various plaintiffs’ law firms, which have not been included in the approximate number of lawsuits set forth in the first paragraph of this section. Each agreement is subject to certain conditions, including requirements for participation in the proposed settlements by a certain minimum number of plaintiffs. The company continues to engage in discussions with other plaintiffs’ law firms regarding potential resolution of unsettled Women’s Health Product Claims, which may include additional inventory settlements. Notwithstanding these settlement efforts, the company anticipates additional trials over the next 12 months. In addition, one or more possible consolidated trials may occur in the future. In July 2015, as part of the agreement noted above, Medtronic agreed to take responsibility for pursuing settlement of certain of the Women’s Health Product Claims that relate to products distributed by the company under supply agreements with Medtronic and the company has paid Medtronic $121 million towards these potential settlements. The company also may, in its sole discretion, transfer responsibility for settlement of additional Women’s Health Product Claims to Medtronic on similar terms. The agreement does not resolve the dispute between the company and Medtronic with respect to Women’s Health Product Claims that do not settle, if any. As part of the agreement, Medtronic and the company agreed to dismiss without prejudice their previously filed litigation with respect to Medtronic’s obligation to defend and indemnify the company. The approximate number of lawsuits set forth in the first paragraph of this section does not include approximately 660 generic complaints involving women’s health products where the company cannot, based on the allegations in the complaints, determine whether any of those cases involve the company’s women’s health products. In addition, the approximate number of lawsuits set forth in the first paragraph of this section does not include approximately 1,070 claims that have been threatened against the company but for which complaints have not yet been filed. In addition, the company has limited information regarding the nature and quantity of these and other unfiled or unknown claims. During the course of engaging in settlement discussions with plaintiffs’ law firms, the company has learned, and may in future periods learn, additional information regarding these and other unfiled or unknown claims, or other lawsuits, which could materially impact the company’s estimate of the number of claims or lawsuits against the company. While the company continues to engage in discussions with other plaintiffs’ law firms regarding potential resolution of unsettled Women’s Health Product Claims and intends to vigorously defend the Women’s Health Product Claims that do not settle, including through litigation, 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. Filter Product Claims As of March 31, 2016, product liability lawsuits involving individual claims by approximately 375 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 (all lawsuits, collectively, the “Filter Product Claims”). In August 2015, the Judicial Panel for Multi-District Litigation (“JPML”) ordered the creation of a Multi-District Litigation for all federal Filter Product Claims (the “IVC Filter MDL”) in the District of Arizona. There are approximately 345 lawsuits that have been, or shortly will be, transferred to the IVC Filter MDL. The remaining approximately 30 lawsuits are pending in various state courts across the country. In March 2016, a Canadian class action was filed against the company in Quebec. The first Filter Product Claim trial was completed in June 2012 and resulted in a judgment for the company. 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 by the company. The approximate number of lawsuits set forth above do not include approximately 75 claims that have been threatened against the company but for which complaints have not yet been filed. In addition, the company has limited information regarding the nature and quantity of these and other unfiled or unknown claims. The company continues to receive claims and lawsuits and may in future periods learn additional information regarding other unfiled or unknown claims, or other lawsuits, which could materially impact the company’s estimate of the number of claims or lawsuits against the company. The company expects that additional trials of Filter Product Claims may take place over the next 12 months. While the company intends to vigorously defend Filter Product Claims that do not settle, including through litigation, 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. General In most product liability litigations (like those described above), 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. In addition, other parties may dispute their indemnification obligations to the company with respect to certain claims. When either of these occur, the company intends to vigorously contest disputes with respect to its insurance coverage or indemnification and to enforce its rights, and accordingly, will record expected recoveries with respect to amounts due under these policies or arrangements, 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. The company continues to evaluate its available insurance coverage as it relates to Women’s Health Product Claims and Filter Product 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 November 2015, the Department of Defense Inspector General issued an investigative subpoena to the company. The Department of Health and Human Services is also participating in this investigation. The subpoena seeks documents related to the company’s sales and marketing of certain filter products, drug coated balloon catheters, and peripheral arterial disease detection products. 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 June 2011, W.L. Gore & Associates, Inc. (“Gore”) filed suit in the U.S. District Court in Delaware alleging the company had infringed on several of Gore’s patents. Fact and expert discovery have been completed and in the fourth quarter of 2014, the parties both filed a number of motions, including motions for summary judgment. Oral arguments on the motions occurred on January 30, 2015. In December 2015, the Delaware District Court granted the company’s motion of no willful infringement, thereby eliminating Gore’s request for enhanced damages. The company’s summary judgment motion of laches (undue delay) remains pending, which could impact the total potential damages period. In the third quarter of 2015 the company filed a motion to dismiss a significant portion of Gore’s damages claim on the grounds that Gore lacks proper standing. The trial on this matter has been continued until later in 2016. The company intends to vigorously defend the allegations asserted by Gore. The company cannot give any assurances that an adverse resolution of this matter will not have a material adverse effect on the company’s business, results of operations, financial condition and/or liquidity. 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. In the second quarter of 2014, the company recorded a charge, net of estimated recoveries to other (income) expense, net, of approximately $259.0 million ($238.0 million after tax) related to certain of the product liability matters discussed above under the heading “Product Liability Matters”. The company recorded this charge based on additional information obtained during the quarter, including but not limited to: 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. Specifically, the company considered its discussions with plaintiffs’ counsel, the increase in the rate of claims being filed (which led the company to increase its estimate of future Women’s Health Product Claims), and the value, number of cases and nature of the inventory of cases with respect to the recent settlements of claims by the company and other manufacturers. In the second quarter of 2015, the company recorded an additional charge related to these matters, net of estimated recoveries to other (income) expense, net, of approximately $337.0 million ($325.0 million after tax). The company recorded this charge based on additional information obtained during the quarter, including with respect to the factors noted above. Specifically the company considered the agreement and the agreement in principle by the company to settle approximately 2,880 Women’s Health Product Claims, the involvement of the Special Master in settlement resolution, additional settlements by other manufacturers subject to product liability claims with respect to similar products, and the continued rate of claims being filed (which led the company to increase its estimate of future Women’s Health Product Claims). In the third quarter of 2015, the company recorded an additional charge related to these matters to other (income) expense, net, of approximately $241.0 million ($228.0 million after tax). The company recorded this charge based on additional information obtained with respect to the quarter, including with respect to the factors noted above. Specifically, the company considered the agreements and the agreement in principle by the company to settle approximately 3,030 Women’s Health Product Claims, discussions with plaintiffs’ counsel, additional information learned regarding the nature and quantity of unfiled and unknown claims (which led the company to increase its estimate of future Women’s Health Product Claims), a reconciliation of claims in connection with settlements, additional settlements by other manufacturers subject to product liability claims with respect to similar products, the rate of claims being filed, and the creation of the IVC Filter MDL. In the first quarter of 2016, the company recorded an additional charge related to these matters to other (income) expense, net, of approximately $49.0 million ($31.0 million after tax). The company recorded this charge based on additional information obtained with respect to the quarter. Specifically, the company considered, among other factors, additional information learned regarding the nature and quantity of unfiled and filed claims, the increase in advertising by plaintiffs’ counsel with respect to IVC filters and an increase in the rate of claims being filed in Filter Product Claims (which led the company to increase its estimate of future Filter Product Claims). These charges recognized the estimated costs for the product liability matters discussed above, including (with respect to such matters) filed and an estimate of unfiled and unknown claims, and costs to administer the settlements related to such matters. These charges exclude any costs associated with the putative class action lawsuits in the United States. 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 filed, unfiled and unknown 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 $1,167.1 million, of which $429.9 million was recorded to accrued expenses, and $1,174.3 million, of which $516.5 million was recorded to accrued expenses, at March 31, 2016 and December 31, 2015, respectively. The company has made total payments of $569.7 million to qualified settlement funds (“QSFs”), subject to certain settlement conditions, for certain product liability matters, of which $182.5 million were made to QSFs during the three months ended March 31, 2016. Payments to QSFs are recorded as a component of restricted cash. Total payments of $361.0 million from these QSFs have been made to qualified claimants, of which $52.3 million were made during the three months ended March 31, 2016. In addition, other payments of $63.7 million have been made to qualified claimants, of which $1.2 million were made during the three months ended March 31, 2016. The company recorded expected recoveries related to product liability matters amounting to $164.2 million, of which $163.6 million was recorded to other assets, and $132.8 million, of which $132.1 million was recorded to other assets, at March 31, 2016 and December 31, 2015, respectively. The terms of the company’s agreement with Medtronic are substantially consistent with the assumptions underlying, and the manner in which, the company has recorded expected recoveries related to the indemnification obligation. The expected recoveries at March 31, 2016 and December 31, 2015 related to the indemnification obligation are not in dispute with respect to claims that Medtronic settles pursuant to the agreement. As described above, the agreement does not resolve the dispute between the company and Medtronic with respect to Women’s Health Product Claims that do not settle, if any, and the company also may, in its sole discretion, transfer responsibility for settlement of additional Women’s Health Product Claims to Medtronic on similar terms. 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 putative class action lawsuits in the United States and certain of the Canadian 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. In addition, with respect to the investigative subpoenas issued by various state and federal government agencies and other legal 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; and/or (ii) there are significant factual issues to be resolved. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2016 | |
Share-Based Compensation Plans | 8. 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, 2016 that may be issued under the LTIP was 4,602,734 and under the Directors’ Plan was 26,102. 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, 2016 and 2015, amounts charged against income for share-based payment arrangements were $26.2 million and $23.0 million, respectively. In the first quarter of each of 2016 and 2015, 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 2016 and 2015 grants were estimated based on the following assumptions: risk-free interest rate of 0.83% and 0.86%, respectively; dividend yield of 0.52% and 0.51%, respectively; and expected life of 2.89 and 2.78 years, respectively. As of March 31, 2016, there were $128.0 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 2016. |
Pension Plans
Pension Plans | 3 Months Ended |
Mar. 31, 2016 | |
Pension Plans | 9. 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, 2016 2015 (dollars in millions) Service cost, net of employee contributions $ 7.3 $ 7.5 Interest cost 4.7 5.0 Expected return on plan assets (8.1 ) (7.8 ) Amortization 2.6 2.9 Net periodic pension cost $ 6.5 $ 7.6 In 2016, the company changed its method used to estimate the service and interest cost components of net periodic benefit cost for defined benefit plans from a single weighted-average discount rate to a full yield curve approach. The reduction in service and interest cost for the quarter ended March 31, 2016 associated with this change in estimate was approximately $1.3 million. |
Shareholders' Investment
Shareholders' Investment | 3 Months Ended |
Mar. 31, 2016 | |
Shareholders' Investment | 10. Shareholders’ Investment The company repurchased approximately 0.9 million shares of common stock for $167.4 million in the three months ended March 31, 2016 under its previously announced share repurchase authorization. Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) by component are as follows: Derivative Instruments Designated as Foreign Currency Translation Benefit Total (dollars in millions) Balance at December 31, 2014 $ 0.9 $ (3.1 ) $ (86.6 ) $ (88.8 ) Other comprehensive income (loss) before reclassifications 0.2 (53.7 ) — (53.5 ) Tax (provision) benefit (a) 1.3 — — 1.3 Other comprehensive income (loss) before reclassifications, net of taxes 1.5 (53.7 ) — (52.2 ) Reclassifications (1.9 ) (b) — 2.9 (c) 1.0 Tax provision (benefit) 0.5 — (1.0 ) (0.5 ) Reclassifications, net of tax (1.4 ) — 1.9 0.5 Other comprehensive income (loss) 0.1 (53.7 ) 1.9 (51.7 ) Balance at March 31, 2015 $ 1.0 $ (56.8 ) $ (84.7 ) $ (140.5 ) Balance at December 31, 2015 $ (8.7 ) $ (94.2 ) $ (105.1 ) $ (208.0 ) Other comprehensive income (loss) before reclassifications (15.9 ) 1.6 — (14.3 ) Tax (provision) benefit (a) 5.5 — — 5.5 Other comprehensive income (loss) before reclassifications, net of taxes (10.4 ) 1.6 — (8.8 ) Reclassifications 0.6 (b) — 2.6 (c) 3.2 Tax provision (benefit) 0.6 — (0.9 ) (0.3 ) Reclassifications, net of tax 1.2 — 1.7 2.9 Other comprehensive income (loss) (9.2 ) 1.6 1.7 (5.9 ) Balance at March 31, 2016 $ (17.9 ) $ (92.6 ) $ (103.4 ) $ (213.9 ) (a) Income taxes are not provided for foreign currency translation adjustment. (b) See Note 5 of the notes to condensed consolidated financial statements. (c) These components are included in the computation of net periodic pension cost. See Note 9 of the notes to condensed consolidated financial statements. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Information | 11. 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 2016 2015 (dollars in millions) United States $ 625.4 $ 574.1 Europe 104.3 106.4 Japan 34.6 41.0 Other 109.2 98.2 $ 873.5 $ 819.7 Total net sales by product group category are: Three Months Ended 2016 2015 (dollars in millions) Vascular $ 239.5 $ 231.9 Urology 216.7 205.6 Oncology 241.9 224.6 Surgical Specialties 151.4 135.9 Other 24.0 21.7 $ 873.5 $ 819.7 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2016 2015 (dollars and shares in millions) EPS Numerator: Net income $ 116.2 $ 139.8 Less: Income allocated to participating securities 0.6 2.1 Net income available to common shareholders $ 115.6 $ 137.7 EPS Denominator: Weighted average common shares outstanding 74.0 74.4 Dilutive common share equivalents from share-based compensation plans 1.2 1.4 Weighted average common and common equivalent shares outstanding, assuming dilution 75.2 75.8 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 Location Fair Value Derivatives Designated as Hedging Instruments March 31, 2016 December 31, (dollars in millions) Forward currency contracts Other current assets $ 1.2 $ 2.9 Option currency contracts Other current assets 1.7 3.8 Interest rate swap contract Other current assets — 0.2 Forward currency contracts Other assets 0.1 — $ 3.0 $ 6.9 Forward currency contracts Accrued expenses $ 4.0 $ 6.2 Interest rate swap contract Accrued expenses 22.5 8.0 $ 26.5 $ 14.2 |
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 from Accumulated Other Comprehensive Loss into Gain/(Loss) Reclassified Three Months Ended Three Months Ended 2016 2015 2016 2015 (dollars in millions) Forward currency contracts $ (0.8 ) $ 0.1 Cost of goods sold $ (2.4 ) $ 0.8 Option currency contracts (1.7 ) 9.0 Cost of goods sold 1.8 1.1 Interest rate swap contract (14.5 ) (7.9 ) Interest expense — — $ (17.0 ) $ 1.2 $ (0.6 ) $ 1.9 |
Financial Instrument Assets and (Liabilities) Measured at Fair Value on Recurring Basis | The following table summarizes certain financial instrument assets and (liabilities) measured at fair value on a recurring basis: March 31, December 31, (dollars in millions) Forward currency contracts $ (2.7 ) $ (3.3 ) Option currency contracts 1.7 3.8 Interest rate swap contracts (22.5 ) (7.8 ) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventories | Inventories consisted of: March 31, December 31, (dollars in millions) Finished goods $ 259.8 $ 252.3 Work in process 30.1 23.8 Raw materials 149.8 137.6 $ 439.7 $ 413.7 |
Pension Plans (Tables)
Pension Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Components of Net Periodic Pension Cost | The components of net periodic pension cost are as follows: Three Months Ended March 31, 2016 2015 (dollars in millions) Service cost, net of employee contributions $ 7.3 $ 7.5 Interest cost 4.7 5.0 Expected return on plan assets (8.1 ) (7.8 ) Amortization 2.6 2.9 Net periodic pension cost $ 6.5 $ 7.6 |
Shareholders' Investment (Table
Shareholders' Investment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | The changes in accumulated other comprehensive income (loss) by component are as follows: Derivative Instruments Designated as Foreign Currency Translation Benefit Total (dollars in millions) Balance at December 31, 2014 $ 0.9 $ (3.1 ) $ (86.6 ) $ (88.8 ) Other comprehensive income (loss) before reclassifications 0.2 (53.7 ) — (53.5 ) Tax (provision) benefit (a) 1.3 — — 1.3 Other comprehensive income (loss) before reclassifications, net of taxes 1.5 (53.7 ) — (52.2 ) Reclassifications (1.9 ) (b) — 2.9 (c) 1.0 Tax provision (benefit) 0.5 — (1.0 ) (0.5 ) Reclassifications, net of tax (1.4 ) — 1.9 0.5 Other comprehensive income (loss) 0.1 (53.7 ) 1.9 (51.7 ) Balance at March 31, 2015 $ 1.0 $ (56.8 ) $ (84.7 ) $ (140.5 ) Balance at December 31, 2015 $ (8.7 ) $ (94.2 ) $ (105.1 ) $ (208.0 ) Other comprehensive income (loss) before reclassifications (15.9 ) 1.6 — (14.3 ) Tax (provision) benefit (a) 5.5 — — 5.5 Other comprehensive income (loss) before reclassifications, net of taxes (10.4 ) 1.6 — (8.8 ) Reclassifications 0.6 (b) — 2.6 (c) 3.2 Tax provision (benefit) 0.6 — (0.9 ) (0.3 ) Reclassifications, net of tax 1.2 — 1.7 2.9 Other comprehensive income (loss) (9.2 ) 1.6 1.7 (5.9 ) Balance at March 31, 2016 $ (17.9 ) $ (92.6 ) $ (103.4 ) $ (213.9 ) (a) Income taxes are not provided for foreign currency translation adjustment. (b) See Note 5 of the notes to condensed consolidated financial statements. (c) These components are included in the computation of net periodic pension cost. See Note 9 of the notes to condensed consolidated financial statements. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Net Sales Based on the Location of External Customers by Geographic Region | Net sales based on the location of external customers by geographic region are: Three Months Ended 2016 2015 (dollars in millions) United States $ 625.4 $ 574.1 Europe 104.3 106.4 Japan 34.6 41.0 Other 109.2 98.2 $ 873.5 $ 819.7 |
Total Net Sales by Product Group Category | Total net sales by product group category are: Three Months Ended 2016 2015 (dollars in millions) Vascular $ 239.5 $ 231.9 Urology 216.7 205.6 Oncology 241.9 224.6 Surgical Specialties 151.4 135.9 Other 24.0 21.7 $ 873.5 $ 819.7 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Millions | Jan. 21, 2016 | Dec. 03, 2015 |
Liberator Medical Holdings, Inc. | ||
Business Acquisitions and Dispositions [Line Items] | ||
Percentage of outstanding stock acquired | 100.00% | |
Business acquisition, purchase consideration cash payment | $ 181.1 | |
Purchase price allocation at fair value, recognition of deferred tax liabilities | 31.6 | |
Business Combination, recognized identifiable assets acquired and liabilities assumed, other net assets and liabilities | 11.9 | |
Purchase price allocation at fair value, goodwill | 121.8 | |
Embo Medical Limited | ||
Business Acquisitions and Dispositions [Line Items] | ||
Percentage of outstanding stock acquired | 100.00% | |
Business acquisition, purchase consideration cash payment | $ 21 | |
Business Combination, recognized identifiable assets acquired and liabilities assumed, other net assets and liabilities | (2.9) | |
Purchase price allocation at fair value, goodwill | 4.4 | |
Business acquisition, maximum contingent consideration | 22.5 | |
Business combination, contingent consideration, liability | 16.6 | |
Customer relationships | Liberator Medical Holdings, Inc. | ||
Business Acquisitions and Dispositions [Line Items] | ||
Purchase price allocation at fair value, recognition of finite-lived intangible asset | $ 53 | |
Customer relationships | Weighted Average | Liberator Medical Holdings, Inc. | ||
Business Acquisitions and Dispositions [Line Items] | ||
Estimated useful lives, years | 12 years | |
Other Intangible Assets | Liberator Medical Holdings, Inc. | ||
Business Acquisitions and Dispositions [Line Items] | ||
Purchase price allocation at fair value, recognition of finite-lived intangible asset | $ 26 | |
Other Intangible Assets | Weighted Average | Liberator Medical Holdings, Inc. | ||
Business Acquisitions and Dispositions [Line Items] | ||
Estimated useful lives, years | 8 years | |
In-Process Research And Development | Embo Medical Limited | ||
Business Acquisitions and Dispositions [Line Items] | ||
Purchase price allocation at fair value, recognition of indefinite-lived intangible asset | $ 36.1 | |
Risk-adjusted discount rate | 17.50% |
Earnings Per Share Computation
Earnings Per Share Computation (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income | $ 116.2 | $ 139.8 |
Less: Income allocated to participating securities | 0.6 | 2.1 |
Net income available to common shareholders | $ 115.6 | $ 137.7 |
Weighted average common shares outstanding | 74 | 74.4 |
Dilutive common share equivalents from share-based compensation plans | 1.2 | 1.4 |
Weighted average common and common equivalent shares outstanding, assuming dilution | 75.2 | 75.8 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income Tax [Line Items] | |||
Effective income tax rate | 18.70% | 24.30% | |
Unrecognized tax benefits related to federal, state and foreign taxes | $ 23.3 | $ 22.3 | |
Unrecognized tax benefits that would impact effective tax rate | 19.7 | ||
Accrued interest | 3.1 | $ 2.8 | |
Decrease in unrecognized tax benefits within the next 12 months | $ 8.3 | ||
Number of months unrecognized tax benefits may decrease | 12 months |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2016USD ($)Country | Jan. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Five Year Credit Facility Expiring In November 2020 | |||
Derivative [Line Items] | |||
Line of credit facility, borrowing capacity | $ 1,000,000,000 | ||
Line of credit facility, expiration date | 2020-11 | ||
Line of credit facility, term, in years | 5 years | ||
Commercial Paper | |||
Derivative [Line Items] | |||
Commercial paper borrowings outstanding | $ 525,600,000 | $ 0 | |
National Healthcare Systems and Private Sector Customers | |||
Derivative [Line Items] | |||
Accounts receivable, net | 49,600,000 | ||
Accounts receivable greater than 365 days past due | $ 4,700,000 | ||
The number of countries in Europe in which certain collection risks exist | Country | 4 | ||
Medicon Inc | Other Long-term Liabilities | |||
Derivative [Line Items] | |||
Liability for non-continent future payments for business combinations | $ 54,100,000 | 50,300,000 | |
Fair Value, Inputs, Level 2 | |||
Derivative [Line Items] | |||
Fair value of long-term debt including current maturities and the effects of the related interest rate swap contract | 1,227,000,000 | 1,449,800,000 | |
Fair Value, Inputs, Level 2 | Medicon Inc | |||
Derivative [Line Items] | |||
Liability for non-continent future payments for business combinations | 70,900,000 | 66,000,000 | |
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | |||
Derivative [Line Items] | |||
Fair value of contingent consideration | 22,800,000 | 11,200,000 | |
Foreign Exchange Contract | |||
Derivative [Line Items] | |||
Notional value of derivative contracts | $ 205,400,000 | $ 191,600,000 | |
Interest rate swap contract | |||
Derivative [Line Items] | |||
Notional value of derivative contracts | $ 250,000,000 | ||
Fixed-rate notes interest percentage | 2.875% | ||
Fixed-rate notes due date | 2016-01 | ||
Forward Starting Interest Rate Swaps | |||
Derivative [Line Items] | |||
Notional value of derivative contracts | $ 250,000,000 | ||
Derivative termination date | 2016-05 |
Location and Fair Value of Deri
Location and Fair Value of Derivative Instruments Designated as Hedging Instruments (Detail) - Derivatives Designated as Hedging Instruments - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | $ 3 | $ 6.9 |
Fair value of derivative liability | 26.5 | 14.2 |
Forward currency contracts | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 1.2 | 2.9 |
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 | 4 | 6.2 |
Option currency contracts | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 1.7 | 3.8 |
Interest rate swap contract | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative assets | 0 | 0.2 |
Interest rate swap contract | Accrued Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | $ 22.5 | $ 8 |
Location and Amounts of Gains a
Location and Amounts of Gains and Losses on Derivative Instruments Designated as Cash Flow Hedges (Detail) - Cash flow hedges - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized in Other Comprehensive Income (Loss) | $ (17) | $ 1.2 |
Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | (0.6) | 1.9 |
Forward currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized in Other Comprehensive Income (Loss) | (0.8) | 0.1 |
Forward currency contracts | Cost of Goods Sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | (2.4) | 0.8 |
Option currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized in Other Comprehensive Income (Loss) | (1.7) | 9 |
Option currency contracts | Cost of Goods Sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | 1.8 | 1.1 |
Interest rate swap contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Recognized in Other Comprehensive Income (Loss) | (14.5) | (7.9) |
Interest rate swap contract | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain/(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | $ 0 | $ 0 |
Financial Instrument Assets and
Financial Instrument Assets and (Liabilities) Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
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 | $ (2.7) | $ (3.3) |
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 | 1.7 | 3.8 |
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 | $ (22.5) | $ (7.8) |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Finished goods | $ 259.8 | $ 252.3 |
Work in process | 30.1 | 23.8 |
Raw materials | 149.8 | 137.6 |
Inventory, net, total | $ 439.7 | $ 413.7 |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | Mar. 31, 2016USD ($)LegalMatterPlaintiffClaimSubsidiary | Apr. 30, 2015LegalMatter | Apr. 30, 2014LegalMatter | Jul. 31, 2013USD ($) | Jul. 31, 2012USD ($) | Jun. 30, 2007LegalMatter | Mar. 31, 2016USD ($)LegalMatter | Sep. 30, 2015USD ($)LegalMatter | Jun. 30, 2015USD ($)LegalMatter | Jun. 30, 2014USD ($) | Jun. 30, 2013LegalMatter | Mar. 31, 2016USD ($)LegalMatter | Dec. 31, 2015USD ($)LegalMatter | Dec. 31, 2014LegalMatter | Mar. 31, 2016USD ($)LegalMatter | Jul. 31, 2014LegalMatter | Jan. 16, 2014LegalMatter |
Commitments and Contingencies [Line Items] | |||||||||||||||||
Product claims, charges incurred after tax | $ | $ 31 | $ 228 | $ 325 | $ 238 | |||||||||||||
Accruals for product liability and other legal matters | $ | $ 1,167.1 | 1,167.1 | $ 1,167.1 | $ 1,174.3 | $ 1,167.1 | ||||||||||||
Payments to qualified settlement fund | $ | 182.5 | 569.7 | |||||||||||||||
Payments to qualified claimants from qualified settlement funds | $ | 52.3 | 361 | |||||||||||||||
Other payments to qualified claimants from qualified settlement funds | $ | 1.2 | 63.7 | |||||||||||||||
Minimum | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Proceedings that could be material to the company | However, one or more of the proceedings could be material to the company's business and/or results of operations. | ||||||||||||||||
Cases that could be settled at any time | These discussions could result in settlements of one or more of these claims at any time. | ||||||||||||||||
Accrued Expenses | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Accruals for product liability and other legal matters, accrued expenses | $ | $ 429.9 | 429.9 | 429.9 | 516.5 | 429.9 | ||||||||||||
Receivables Related to Product Liability Matters | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Receivables related to product liability matters | $ | 164.2 | 164.2 | 164.2 | 132.8 | 164.2 | ||||||||||||
Receivables Related to Product Liability Matters | Other Assets | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Receivables related to product liability matters, noncurrent | $ | $ 163.6 | 163.6 | $ 163.6 | $ 132.1 | $ 163.6 | ||||||||||||
Other (income) expense, net | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Product claims, charges incurred before taxes | $ | $ 49 | $ 241 | $ 337 | $ 259 | |||||||||||||
Hernia Product Claims | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of individual plaintiffs | Plaintiff | 100 | ||||||||||||||||
Period for additional product claims trials | 12 months | ||||||||||||||||
Hernia Product Claims | United States | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of putative class actions | 1 | ||||||||||||||||
Hernia Product Claims | Canada | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of putative class actions settled | 3 | ||||||||||||||||
Hernia Product Claims | Federal Law Claims | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of lawsuits | 40 | 40 | 40 | 40 | |||||||||||||
Hernia Product Claims | State Law Claims | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of lawsuits | 60 | 60 | 60 | 60 | |||||||||||||
Hernia Product Claims | State Law Claims | Superior Court of State of Rhode Island | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of lawsuits | 40 | 40 | 40 | 40 | |||||||||||||
Number of individual plaintiffs | Plaintiff | 40 | ||||||||||||||||
Number of multidistrict litigations | 1 | ||||||||||||||||
Women's Health Product Claims | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of individual plaintiffs | Plaintiff | 12,875 | ||||||||||||||||
Period for additional product claims trials | 12 months | ||||||||||||||||
Number of claims in settlement agreement | 6,845 | 6,285 | 560 | ||||||||||||||
Generic complaints | Claim | 660 | ||||||||||||||||
Number of claims not yet filed | 1,070 | ||||||||||||||||
The number of claims subject to an agreement or an agreement in principle | 3,030 | 2,880 | |||||||||||||||
Women's Health Product Claims | Minimum | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of additional trials | In addition, one or more possible consolidated trials may occur in the future. | ||||||||||||||||
Women's Health Product Claims | California state case | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
U. S. District Court award for plaintiff's damages | $ | $ 3.6 | ||||||||||||||||
Women's Health Product Claims | United States | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of putative class actions | 5 | ||||||||||||||||
Women's Health Product Claims | Canada | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of putative class actions | 5 | ||||||||||||||||
Class actions settled | In March 2016, the company reached an agreement in principle to resolve all Canadian putative class actions, with the exception of a Quebec class action, within amounts previously recorded by the company. | ||||||||||||||||
Women's Health Product Claims | Medtronic | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Total payments made for settlement of indemnification obligation | $ | $ 121 | ||||||||||||||||
Women's Health Product Claims | Medtronic | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of subsidiaries of a parent company that have an obligation to indemnify | Subsidiary | 2 | ||||||||||||||||
Women's Health Product Claims | Multi District Litigation | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
U. S. District Court award for plaintiff's damages | $ | $ 2 | ||||||||||||||||
Number of individual case for trial | 300 | 200 | |||||||||||||||
Women's Health Product Claims | Ontario Superior Court of Justice | Canada | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of putative class actions with class certifications dismissed | 1 | ||||||||||||||||
Filter Product Claims | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of individual plaintiffs | Plaintiff | 375 | ||||||||||||||||
Number of multidistrict litigations | 1 | ||||||||||||||||
Period for additional product claims trials | 12 months | ||||||||||||||||
Number of claims not yet filed | 75 | ||||||||||||||||
Filter Product Claims | Multi District Litigation | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of lawsuits | 345 | 345 | 345 | 345 | |||||||||||||
Filter Product Claims | State Law Claims | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of lawsuits | 30 | 30 | 30 | 30 | |||||||||||||
Filter Product Claims | State Law Claims | Minimum | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of claims in settlement agreement | 30 |
Share-Based Compensation Plans
Share-Based Compensation Plans - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)CompensationPlanshares | Mar. 31, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of employee stock purchase programs | CompensationPlan | 2 | |
Share-based payment arrangements | $ | $ 26.2 | $ 23 |
Unrecognized compensation expenses related to share-based payment arrangements | $ | $ 128 | |
Weighted-average period of recognizing unrecognized compensation expenses related to share-based compensation, in years | 3 years | |
Performance Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value assumptions, risk-free interest rate | 0.83% | 0.86% |
Fair value assumptions, dividend yield | 0.52% | 0.51% |
Fair value assumptions, expected life in years | 2 years 10 months 21 days | 2 years 9 months 11 days |
Awards requisite service period | 3 years | 3 years |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | These units have requisite service periods of three years and have no dividend rights. | |
Period over which the company's performance is evaluated | 3 years | |
2012 Long Term Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of remaining shares that may be issued | shares | 4,602,734 | |
Directors Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of remaining shares that may be issued | shares | 26,102 |
Components of Net Periodic Pens
Components of Net Periodic Pension Cost (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost, net of employee contributions | $ 7.3 | $ 7.5 |
Interest cost | 4.7 | 5 |
Expected return on plan assets | (8.1) | (7.8) |
Amortization | 2.6 | 2.9 |
Net periodic pension cost | $ 6.5 | $ 7.6 |
Pension Plans - Additional Info
Pension Plans - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Change in Assumptions for Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net Pension Periodic Cost | $ 1.3 |
Shareholders' Investment - Addi
Shareholders' Investment - Additional Information (Detail) shares in Millions, $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)shares | |
Shareholders Equity [Line Items] | |
Number of shares of common stock purchased | shares | 0.9 |
Purchase of common stock | $ | $ 167.4 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (208) | $ (88.8) | |
Other comprehensive income (loss) before reclassifications | (14.3) | (53.5) | |
Tax (provision) benefit | [1] | 5.5 | 1.3 |
Other comprehensive income (loss) before reclassifications, net of taxes | (8.8) | (52.2) | |
Reclassifications | 3.2 | 1 | |
Tax provision (benefit) | (0.3) | (0.5) | |
Reclassifications, net of tax | 2.9 | 0.5 | |
Other comprehensive income (loss) | (5.9) | (51.7) | |
Ending balance | (213.9) | (140.5) | |
Derivative Instruments Designated as Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (8.7) | 0.9 | |
Other comprehensive income (loss) before reclassifications | (15.9) | 0.2 | |
Tax (provision) benefit | [1] | 5.5 | 1.3 |
Other comprehensive income (loss) before reclassifications, net of taxes | (10.4) | 1.5 | |
Reclassifications | [2] | 0.6 | (1.9) |
Tax provision (benefit) | 0.6 | 0.5 | |
Reclassifications, net of tax | 1.2 | (1.4) | |
Other comprehensive income (loss) | (9.2) | 0.1 | |
Ending balance | (17.9) | 1 | |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (94.2) | (3.1) | |
Other comprehensive income (loss) before reclassifications | 1.6 | (53.7) | |
Tax (provision) benefit | [1] | 0 | 0 |
Other comprehensive income (loss) before reclassifications, net of taxes | 1.6 | (53.7) | |
Reclassifications | 0 | 0 | |
Tax provision (benefit) | 0 | 0 | |
Reclassifications, net of tax | 0 | 0 | |
Other comprehensive income (loss) | 1.6 | (53.7) | |
Ending balance | (92.6) | (56.8) | |
Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (105.1) | (86.6) | |
Other comprehensive income (loss) before reclassifications | 0 | 0 | |
Tax (provision) benefit | [1] | 0 | 0 |
Other comprehensive income (loss) before reclassifications, net of taxes | 0 | 0 | |
Reclassifications | [3] | 2.6 | 2.9 |
Tax provision (benefit) | (0.9) | (1) | |
Reclassifications, net of tax | 1.7 | 1.9 | |
Other comprehensive income (loss) | 1.7 | 1.9 | |
Ending balance | $ (103.4) | $ (84.7) | |
[1] | Income taxes are not provided for foreign currency translation adjustment. | ||
[2] | See Note 5 of the notes to condensed consolidated financial statements. | ||
[3] | These components are included in the computation of net periodic pension cost. See Note 9 of the notes to condensed consolidated financial statements. |
Net Sales Based on Location of
Net Sales Based on Location of External Customer and Identifiable Assets by Geographic Region (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 873.5 | $ 819.7 |
United States | ||
Segment Reporting Information [Line Items] | ||
Net sales | 625.4 | 574.1 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Net sales | 104.3 | 106.4 |
Japan | ||
Segment Reporting Information [Line Items] | ||
Net sales | 34.6 | 41 |
Other | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 109.2 | $ 98.2 |
Total Net Sales by Product Grou
Total Net Sales by Product Group Category (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 873.5 | $ 819.7 |
Vascular | ||
Segment Reporting Information [Line Items] | ||
Net sales | 239.5 | 231.9 |
Urology | ||
Segment Reporting Information [Line Items] | ||
Net sales | 216.7 | 205.6 |
Oncology | ||
Segment Reporting Information [Line Items] | ||
Net sales | 241.9 | 224.6 |
Surgical Specialties | ||
Segment Reporting Information [Line Items] | ||
Net sales | 151.4 | 135.9 |
Other Product Group | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 24 | $ 21.7 |