Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Entity Registrant Name | BIO-RAD LABORATORIES, INC. | |
Entity Central Index Key | 0000012208 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Common Class A [Member] | ||
Entity Common Stock, Shares Outstanding | 24,732,399 | |
Common Class B [Member] | ||
Entity Common Stock, Shares Outstanding | 5,087,678 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Cash and cash equivalents | $ 455,890 | $ 431,526 |
Short-term investments | 403,099 | 413,270 |
Restricted investments | 5,560 | 5,560 |
Accounts receivable, net | 391,699 | 392,443 |
Inventories: | ||
Raw materials | 105,683 | 108,008 |
Work in process | 149,601 | 145,051 |
Finished goods | 335,154 | 330,756 |
Total inventories | 590,438 | 583,815 |
Prepaid expenses | 163,959 | 187,249 |
Other current assets | 20,998 | 9,615 |
Total current assets | 2,031,643 | 2,023,478 |
Property, plant and equipment, at cost | 1,330,536 | 1,326,829 |
Less: accumulated depreciation and amortization | (827,584) | (818,139) |
Property, plant and equipment, net | 502,952 | 508,690 |
Operating lease right-of-use asset | 221,597 | 0 |
Goodwill, net | 230,541 | 219,770 |
Purchased intangibles, net | 139,382 | 133,123 |
Other investments | 3,671,912 | 2,655,709 |
Other assets | 64,887 | 70,298 |
Total assets | 6,862,914 | 5,611,068 |
LIABILITIES AND STOCKHOLDERS' EQUITY: | ||
Accounts payable, accrued payroll and employee benefits | 239,018 | 265,960 |
Current maturities of long-term debt and notes payable | 1,757 | 493 |
Income and other taxes payable | 41,967 | 56,188 |
Current operating lease liabilities | 34,413 | 0 |
Other current liabilities | 127,151 | 128,154 |
Total current liabilities | 444,306 | 450,795 |
Long-term debt, net of current maturities | 437,606 | 438,937 |
Deferred income taxes | 780,905 | 553,239 |
Operating lease liabilities | 192,558 | 0 |
Other long-term liabilities | 143,684 | 147,766 |
Total liabilities | 1,999,059 | 1,590,737 |
Stockholders' equity: | ||
Additional paid-in capital | 402,847 | 394,342 |
Retained earnings | 4,585,701 | 3,722,073 |
Accumulated other comprehensive income | (80,965) | (46,958) |
Total Stockholders' Equity | 4,863,855 | 4,020,331 |
Total liabilities and stockholders' equity | 6,862,914 | 5,611,068 |
Common Class A [Member] | ||
Stockholders' equity: | ||
Common stock | 2 | 2 |
Common Class B [Member] | ||
Stockholders' equity: | ||
Common stock | 1 | 1 |
Treasury Class A [Member] | ||
Stockholders' equity: | ||
Treasury Stock, Value | (43,642) | (49,040) |
Treasury Class B [Member] | ||
Stockholders' equity: | ||
Treasury Stock, Value | $ (89) | $ (89) |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for Doubtful Accounts Receivable, Current | $ 26,257 | $ 26,713 |
Common Class A [Member] | ||
Common Stock, Shares, Issued | 24,888,661 | 24,884,265 |
Common Stock, Shares, Outstanding | 24,728,923 | 24,704,772 |
Common Class B [Member] | ||
Common Stock, Shares, Issued | 5,092,021 | 5,096,421 |
Common Stock, Shares, Outstanding | 5,091,104 | 5,095,504 |
Treasury Class A [Member] | ||
Treasury Stock, Shares | 159,738 | 179,493 |
Treasury Class B [Member] | ||
Treasury Stock, Shares | 917 | 917 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net sales | $ 553,979 | $ 551,519 |
Cost of goods sold | 242,217 | 249,316 |
Gross profit | 311,762 | 302,203 |
Selling, general and administrative expense | 207,581 | 209,130 |
Research and Development Expense | 47,575 | 49,427 |
Segment profit (loss) | 56,606 | 43,646 |
Interest expense | 5,986 | 5,782 |
Foreign exchange (gains) losses, net | 1,280 | 1,254 |
Unrealized Gain on Securities | (1,059,230) | (815,934) |
Nonoperating Income (Expense) | 18,696 | 11,145 |
Income before income taxes | 1,127,266 | 863,689 |
(Provision) benefit for income taxes | (262,071) | (206,915) |
Net income attributable to Bio-Rad | $ 865,195 | $ 656,774 |
Basic earnings per share: | ||
Net income per share basic attributable to Bio-Rad | $ 29.03 | $ 22.05 |
Weighted average common shares - basic | 29,801 | 29,787 |
Diluted earnings per share: | ||
Net income per share diluted attributable to Bio-Rad | $ 28.74 | $ 21.77 |
Weighted average common shares - diluted | 30,104 | 30,171 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Income (Loss) Attributable to Parent | $ 865,195 | $ 656,774 |
Foreign currency translation adjustments | (36,402) | 46,547 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | 359 | (283) |
Net unrealized holding gains (losses) on available-for-sale investments net of tax expense | 2,036 | (1,716) |
Total other comprehensive income (loss) net of tax | (34,007) | 44,548 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 831,188 | $ 701,322 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Cash received from customers | $ 550,291 | $ 589,869 |
Cash paid to suppliers and employees | (507,160) | (543,700) |
Interest paid, net | (459) | (378) |
Income tax payments, net | (4,567) | (3,245) |
Investment proceeds and miscellaneous receipts, net | 4,496 | 2,158 |
Proceeds from (payments for) forward foreign exchange contracts, net | 342 | (4,358) |
Net cash provided by operating activities | 42,943 | 40,346 |
Cash flows from investing activities: | ||
Capital expenditures | (23,629) | (27,184) |
Proceeds from dispositions of property, plant and equipment | 74 | 18 |
Proceeds from divestiture of a product line | 0 | 6,919 |
Payments for acquisitions, net of cash received | (16,083) | 0 |
Recovery of (payments for) purchases of intangible assets | 7,403 | (3) |
Payments for purchases of marketable securities and investments | (95,375) | (61,443) |
Proceeds from sales of marketable securities and investments | 22,324 | 17,391 |
Proceeds from maturities of marketable securities and investments | 82,573 | 45,486 |
Net cash used in investing activities | (22,713) | (18,816) |
Cash flows from financing activities: | ||
Payments on long-term borrowings | (237) | (87) |
Payments of contingent consideration | (1,433) | (1,270) |
Proceeds from Issuance of Common Stock | 0 | 3,872 |
Proceeds from reissuances of treasury stock for share-based compensation, net | 3,831 | 0 |
Net cash provided by financing activities | 2,161 | 2,515 |
Effect of foreign exchange rate changes on cash | 1,982 | (1,383) |
Net increase in cash, cash equivalents, and restricted cash | 24,373 | 22,662 |
Beginning Cash, Cash Equivalents, and Restricted Cash | 434,164 | 384,983 |
Cash and cash equivalents | 455,890 | 407,272 |
Restricted Cash, Current | 113 | 90 |
Restricted Cash, Noncurrent | 2,534 | 283 |
Ending Cash, Cash Equivalents, and Restricted Cash | $ 458,537 | $ 407,645 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] |
Total Stockholders' Equity at Dec. 31, 2017 | $ 2,930,250 | $ 3 | $ 361,231 | $ (217) | $ 1,830,439 | $ 738,794 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) Attributable to Parent | 656,774 | 656,774 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 44,548 | 44,548 | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 5,885 | 5,885 | ||||
Proceeds from Issuance of Common Stock | 3,872 | 3,872 | ||||
Total Stockholders' Equity at Mar. 31, 2018 | 4,488,091 | 3 | 370,988 | (217) | 4,013,232 | 104,085 |
Total Stockholders' Equity at Dec. 31, 2018 | 4,020,331 | 3 | 394,342 | (49,129) | 3,722,073 | (46,958) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) Attributable to Parent | 865,195 | 865,195 | ||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (34,007) | (34,007) | ||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 8,505 | 8,505 | ||||
Treasury Stock Reissued at Lower than Repurchase Price | 3,831 | 5,398 | (1,567) | |||
Proceeds from Issuance of Common Stock | 0 | |||||
Total Stockholders' Equity at Mar. 31, 2019 | $ 4,863,855 | $ 3 | $ 402,847 | $ (43,731) | $ 4,585,701 | $ (80,965) |
1. Organization, Consolidation
1. Organization, Consolidation and Presentation of Financial Statements | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | 1. BASIS OF PRESENTATION AND USE OF ESTIMATES Basis of Presentation In this report, “Bio-Rad,” “we,” “us,” “the Company” and “our” refer to Bio-Rad Laboratories, Inc. and its subsidiaries. The accompanying unaudited condensed consolidated financial statements of Bio-Rad have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and reflect all adjustments which are, in the opinion of management, necessary to fairly state the results of the interim periods presented. All such adjustments are of a normal recurring nature. Results for the interim period are not necessarily indicative of the results for the entire year. The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2018 . We evaluate subsequent events and the evidence they provide about conditions existing at the date of the balance sheet as well as conditions that arose after the balance sheet date but through the date the financial statements are issued. The effects of conditions that existed at the balance sheet date are recognized in the financial statements. Events and conditions arising after the balance sheet date but before the financial statements are issued are evaluated to determine if disclosure is required to keep the financial statements from being misleading. To the extent such events and conditions exist, disclosures are made regarding the nature of events and the estimated financial effects of those events and conditions. Use of Estimates The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting periods. Bio-Rad bases its estimates on historical experience and on various other market-specific and other relevant assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates. Revenue Recognition On January 1, 2018, we adopted Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers," using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. We recorded a net reduction to opening retained earnings of $0.1 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606 with the impact primarily related to a customer loyalty program in the United States for which the resulting non-cash consideration is treated as variable consideration under the new revenue recognition accounting standard. We recognize revenue from operations through the sale of products, services, and rental of instruments. Revenue from contracts with customers is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally accounted for as distinct performance obligations. Revenue is recognized net of any taxes collected from customers (sales tax, value added tax, etc.), which are subsequently remitted to government authorities. Our contracts from customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment, and may or may not impact the timing of revenue recognition. Revenue associated with equipment that requires factory installation is not recorded until installation is complete and customer acceptance, if required, has occurred. Certain equipment requires installation due to the fact that the instruments are being operated in a clinical/laboratory environment, and the installation services could result in modification of the equipment in order to ensure that the instruments are working according to specifications of the customer which are subject to validation tests upon completion of the installation. In these arrangements, which require factory installation, the delivery of the equipment and the installation are separate performance obligations. We will recognize the transaction price allocated to the equipment only upon customer acceptance, as the transfer of control has occurred in relation to the equipment at that point in time as the customer has the ability to direct the use of and obtain substantially all of the remaining benefits from the asset. The transaction price allocated to the installation services is also recognized upon completion of the services because without the completion of the installation services and related customer acceptance the customer cannot receive any of the benefits of the service. At the time revenue is recognized, a provision is recognized for estimated product returns as this right is considered variable consideration. Accordingly, when product revenues are recognized, the transaction price is reduced to the estimated amount that we expect to receive in exchange for transferring control for those products. Service revenues on extended warranty contracts are recognized ratably over the life of the service agreement as a stand-ready performance obligation. For arrangements that include a combination of products and services, transaction prices are allocated to performance obligations based on stand-alone selling prices. The method used to determine the stand-alone selling prices for service revenues is based on the observable prices when the services have been sold separately. In those instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simple and predictable methods of purchasing our products and services, not to either provide or receive financing to or from our customers. We record contract liabilities when cash payments are received or due in advance of our performance. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less and for contracts in which we recognize revenue at the amount to which we have the right to invoice for services performed. Our payment terms vary by the type and location of our customer, and the products and services offered. The term between invoicing and when payment is due is not significant. Reagent Rental Agreements Reagent rental agreements are a diagnostic industry sales method that provides use of an instrument and consumables (reagents) to a customer on a per test basis. These agreements may also include maintenance of the underlying instruments retained at customer locations as well as initial training. We initially determine if a reagent rental arrangement contains a lease at lease commencement. Where we have determined that such an arrangement contains a lease, we next must ascertain its lease classification for purposes of applying appropriate accounting treatment as an operating, sales-type or direct financing lease. In addition, for purposes of determining the lease term used in performing the lease classification test, we include the noncancellable period of the lease together with those periods covered by the option to extend the lease if the customer is reasonably certain to exercise that option, the periods covered by an option to terminate the lease if the customer is reasonably certain not to exercise that option, and the periods covered by the option to extend (or not to terminate) the lease in which exercise of the option is controlled by the company. While most of our reagent rental arrangements contain either the option for a lessee to extend and/or cancel, the period in which the contract is enforceable is a very short period and therefore the lease term has been limited to the non-cancellable period. Furthermore, it has historically been very rare for these arrangements to contain an option for the lessee to purchase the underlying asset. As discussed further below under the captions “Leases” and “Recent Accounting Pronouncements Adopted,” as well as in Note 14, Leases, we adopted ASC 842, “Leases,” on a modified retrospective basis effective January 1, 2019 with practical expedients, and did not restate comparative prior periods. We concluded that the use of the instrument (referred to as “lease elements”) is not within the guidance of ASC 606 but rather ASC 842. Accordingly, we first allocate the transaction price between the lease elements and the non-lease elements based on relative standalone selling prices. The determination of the transaction price requires judgment and consideration of any fixed/minimum payments as well as estimates of variable consideration. After allocation, the amount of variable payments allocated to lease components will be recognized as income under ASC 842, while the amount of variable payments allocated to non-lease components will be recognized as income in accordance with ASC 606. Upon our adoption of ASC 842 in 2019, the maintenance services, along with the reagents, are now allocated to the non-lease elements and will be recognized as income in accordance with ASC 606. This change is in alignment with the requirements of ASC 842, and has resulted in a decrease in the amount of rental income that is included in our total revenue. Generally, the terms of the arrangements result in the transfer of control on reagents upon either (i) when the consumables are delivered or (ii) when the consumables are consumed by the customer. Historically, our reagent rental arrangements have been predominantly comprised of variable lease payments, as very few of such arrangements contain any fixed/minimum lease payments. As a result, our lease income is heavily variable in nature with only relatively insignificant amounts of lease income comprised of fixed or stated minimum lease payments. Further, our reagent rental arrangements are predominantly classified as operating leases, with only very insignificant lease income associated with sales-type leases. Hence, our reported lease income is primarily variable in nature and is recognized over time as the reagents are consumed by the customer or delivered. Revenue allocated to the lease elements of these reagent rental arrangements represents approximately 3% and 5% of total revenue in the first quarter of 2019 compared to the first quarter of 2018, respectively, and is included as part of Net sales in our Condensed Consolidated Statements of Income. Contract costs: As a practical expedient, we expense as incurred costs to obtain contracts as the amortization period would have been one year or less. These costs, recorded within Selling, general and administrative expense, include our internal sales force compensation programs and certain partner sales incentive programs, as we have determined that annual compensation is commensurate with annual selling activities. Disaggregation of Revenue: The following table presents our revenues disaggregated by geographic region based primarily on the location of the use of the product or service (in millions, unaudited): Three Months Ended March 31, 2019 2018 Europe $ 185.9 $ 199.6 Pacific Rim 106.4 109.4 United States 226.1 209.9 Other (primarily Canada and Latin America) 35.6 32.6 Total Net sales $ 554.0 $ 551.5 The disaggregation of our revenue by industry segment sources is presented in our Segment Information footnote (see Note 11). Deferred revenues represent mostly unrecognized fees billed or collected for extended service arrangements. Deferred revenues are generally recognized ratably over the term of the service contract as our performance extends over the life of the arrangement. A majority of our deferred revenue balance is classified as current with an expected length of one year or less. The increase in our total deferred revenue balance from $37.3 million at December 31, 2018 to $41.1 million at March 31, 2019 is primarily driven by $15.2 million , net, of cash payments received or due in advance of satisfying our performance obligations, partially offset by $11.4 million of revenue recognized that were included in our deferred revenue balance as of December 31, 2018 . We warrant certain equipment against defects in design, materials and workmanship, generally for a period of one year. Upon revenue recognition of that equipment, we establish, as part of Cost of goods sold, a provision for the expected costs of such warranty based on historical experience, specific warranty terms and customer feedback. A review is performed on a quarterly basis to assess the adequacy of our warranty accrual. Components of the warranty accrual, included in Other current liabilities and Other long-term liabilities in the Condensed Consolidated Balance Sheets, were as follows (in millions): December 31, 2018 $ 10.1 Provision for warranty 1.4 Actual warranty costs (2.2 ) March 31, 2019 $ 9.3 Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our condensed consolidated balance sheet as of March 31, 2019. Finance leases are included in property, plant and equipment, other current liabilities, and other long-term liabilities in our condensed consolidated balance sheet as of March 31, 2019. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Where we act as lessee, we elected not to separate lease and non-lease components and are more fully described in Note 14, Leases. Where we act as lessor in our reagent rental arrangements, we allocate the consideration in the contract to the separate lease components and non-lease components. After allocation, the amount of variable payments allocated to lease components will be recognized as income under the lease accounting standard ASC 842, while the amount of variable payments allocated to non-lease components will be recognized as income in accordance with ASC 606. Such reagent rental arrangements are more fully described above under the caption "Reagent Rental Agreements." Recent Accounting Pronouncements and Securities and Exchange Commission ("SEC") Rule Adopted In August 2018, the FASB issued ASU 2018-15, "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." ASU 2018-15 amends the definition of a hosting arrangement and requires a customer in a hosting arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. The internal-use software guidance states that only qualifying costs incurred during the application development stage can be capitalized. We prospectively adopted ASU 2018-15 effective January 1, 2019. During the first quarter of 2019, we capitalized $0.7 million of implementation costs for cloud computing arrangements, net of accumulated amortization, primarily for business analytics software, and is recorded in Other current assets and Other assets in the Condensed Consolidated Balance Sheet. In August 2018, the SEC issued Final Rule Release No. 33-10532, "Disclosure Update and Simplification" that extends to interim periods the annual disclosure requirement of presenting the changes in stockholder' equity, which was effective in the first quarter of 2019. In February 2016, the FASB issued ASU 2016-02, "Leases," and related accounting standard updates, which requires, among other items, lease accounting to recognize most leases as assets and liabilities on the balance sheet. Qualitative and quantitative disclosures are enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. We adopted ASU 2016-02 on a modified retrospective basis effective January 1, 2019 with practical expedients, and did not restate comparative prior periods. Where we act as a lessee, the adoption of the standard resulted in material additions to the balance sheet for right-of-use assets and the associated liabilities, see Note 14, Leases. The practical expedients include, among other items, for leases that existed prior January 1, 2019, to not reassess whether any contracts are or contain embedded leases, reassessing the classification of existing leases, and reassessing whether previously capitalized initial direct costs qualify for capitalization. Where we act as a lessee, we also elected not to separate lease and non-lease components. Where we act as a lessor in reagent rental arrangements, there was an insignificant impact to our condensed consolidated financial statements, which is more fully described above under the caption "Reagent Rental Agreements." Recent Accounting Pronouncements to be Adopted In November 2018, the FASB issued ASU 2018-18, "Clarifying the Interaction between Topic 808 and Topic 606." Topic 808 is Collaborative Arrangements, and Topic 606 is Revenue from Contracts with Customers. ASU 2018-18 clarifies that certain transactions between collaborative partners should be accounted for as revenue under ASC 606 when the collaborative partner is a customer. We currently do not have any customers that are collaborative partners or anticipate any in the near future. ASU 2018-18 will be effective January 1, 2020. In August 2018, the FASB issued ASU 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." ASU 2018-14 eliminates and adds certain disclosures for defined benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 using a retrospective approach. We are currently evaluating the disclosures but do not expect ASU 2018-14 to have a material impact to our disclosures for defined benefit plans. In August 2018, the FASB issued ASU 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." ASU 2018-13 eliminates, adds and modifies certain disclosures for fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. We do not expect ASU 2018-13 to have a material impact to our fair value disclosures. |
2. Acquisitions (Notes)
2. Acquisitions (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | ACQUISITIONS In March 2019, we completed the acquisition of all the issued and outstanding stock of a small private company for approximately $20.0 million . Cash payments, net of closing cash, consisted of $4.0 million paid in November 2018 and the remaining $16.0 million paid in March 2019. The acquisition was included in our Life Science segment's results of operations from the acquisition date and was accounted for as a business combination. The amount of acquisition-related costs was minimal as Bio-Rad primarily represented itself during the acquisition process. The goodwill related to this acquisition is not deductible for income tax purposes. Pro forma financial statements are not provided as the acquisition is immaterial to Bio-Rad taken as a whole for the periods presented. The preliminary allocation of the payments were $12.0 million to definite-lived intangibles, $10.7 million to goodwill, and a deferred tax liability of $2.7 million related to the purchased intangibles. The purchase price allocation is preliminary as additional time is required to complete the valuation of the intangibles. |
3. Fair Value Measurements
3. Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS We determine the fair value of an asset or liability based on the assumptions that market participants would use in pricing the asset or liability in an orderly transaction between market participants at the measurement date. The identification of market participant assumptions provides a basis for determining what inputs are to be used for pricing each asset or liability. A fair value hierarchy has been established which gives precedence to fair value measurements calculated using observable inputs over those using unobservable inputs. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1: Quoted prices in active markets for identical instruments • Level 2: Other significant observable inputs (including quoted prices in active markets for similar instruments) • Level 3: Significant unobservable inputs (including assumptions in determining the fair value of certain investments) Financial assets and liabilities carried at fair value and measured on a recurring basis as of March 31, 2019 are classified in the hierarchy as follows (in millions): Level 1 Level 2 Level 3 Total Financial Assets Carried at Fair Value: Cash equivalents: Commercial paper $ — $ 96.1 $ — $ 96.1 Asset backed — 0.4 — 0.4 Time deposits 10.0 10.0 — 20.0 Money market funds 39.7 — — 39.7 Total cash equivalents (a) 49.7 106.5 — 156.2 Restricted investment 5.6 — — 5.6 Equity securities (b) 3,692.7 — — 3,692.7 Available-for-sale investments: Corporate debt securities — 194.2 — 194.2 U.S. government sponsored agencies — 79.9 — 79.9 Foreign government obligations — 3.0 — 3.0 Other Foreign Obligations — 2.8 — 2.8 Municipal obligations — 10.9 — 10.9 Asset-backed securities — 66.8 — 66.8 Total available-for-sale investments (c) — 357.6 — 357.6 Forward foreign exchange contracts (d) — 0.6 — 0.6 Total financial assets carried at fair value $ 3,748.0 $ 464.7 $ — $ 4,212.7 Financial Liabilities Carried at Fair Value: Forward foreign exchange contracts (e) $ — $ 0.7 $ — $ 0.7 Contingent consideration (f) — — 6.5 6.5 Total financial liabilities carried at fair value $ — $ 0.7 $ 6.5 $ 7.2 Financial assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2018 are classified in the hierarchy as follows (in millions): Level 1 Level 2 Level 3 Total Financial Assets Carried at Fair Value: Cash equivalents: Commercial paper $ — $ 77.8 $ — $ 77.8 Time deposits 22.7 10.0 — 32.7 Asset-backed securities — 0.3 — 0.3 Money market funds 36.9 — — 36.9 Total cash equivalents (a) 59.6 88.1 — 147.7 Restricted investment 5.6 — — 5.6 Equity securities (b) 2,672.9 — — 2,672.9 Available-for-sale investments: Corporate debt securities — 215.0 — 215.0 U.S. government sponsored agencies — 80.3 — 80.3 Foreign government obligations — 3.6 — 3.6 Municipal obligations — 11.0 — 11.0 Asset-backed securities — 63.3 — 63.3 Total available-for-sale investments (c) — 373.2 — 373.2 Forward foreign exchange contracts (d) — 0.6 — 0.6 Total financial assets carried at fair value $ 2,738.1 $ 461.9 $ — $ 3,200.0 Financial Liabilities Carried at Fair Value: Forward foreign exchange contracts (e) $ — $ 0.7 $ — $ 0.7 Contingent consideration (f) — — 8.4 8.4 Total financial liabilities carried at fair value $ — $ 0.7 $ 8.4 $ 9.1 (a) Cash equivalents are included in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (b) Equity securities are included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): March 31, 2019 Short-term investments $ 45.7 Other investments 3,647.0 Total $ 3,692.7 The unrealized gains on our equity securities for the first quarter of 2019 are $1,059.2 million and are primarily due to our investment in Sartorius AG and is recorded in our Condensed Consolidated Statements of Income. (c) Available-for-sale investments are included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): March 31, 2019 December 31, 2018 Short-term investments $ 357.5 $ 373.0 Other investments 0.1 0.2 Total $ 357.6 $ 373.2 (d) Forward foreign exchange contracts in an asset position are included in Other current assets in the Condensed Consolidated Balance Sheets. (e) Forward foreign exchange contracts in a liability position are included in Other current liabilities in the Condensed Consolidated Balance Sheets. (f) Contingent consideration liability is included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): March 31, 2019 December 31, 2018 Other current liabilities $ 3.4 $ 3.2 Other long-term liabilities 3.1 5.2 Total $ 6.5 $ 8.4 During the first quarter of 2016, we recognized a contingent consideration liability upon our acquisition of a high performance analytical flow cytometer platform from Propel. At the acquisition date, the amount of contingent consideration was determined based on a probability-weighted income approach related to the achievement of sales milestones, ranging from 39% to 20% for the calendar years 2017 through 2020 . The sales milestones could potentially range from $0 to an unlimited amount. In the first quarter of 2019 , we paid $1.4 million per the purchase agreement. Since 2016 we have decreased the cumulative valuation of the sales milestones by net $12.7 million . The contingent consideration was accrued at its estimated fair value of $6.5 million as of March 31, 2019 . The following table provides a reconciliation of the Level 3 analytical flow cytometer platform contingent consideration liabilities measured at estimated fair value (in millions): December 31, 2018 $ 8.4 Payment of sales milestone (1.4 ) Decrease in estimated fair value of contingent consideration included in Selling, general and administrative expense (0.5 ) March 31, 2019 $ 6.5 The following table provides quantitative information about Level 3 inputs for fair value measurement of our analytical flow cytometer platform contingent consideration liability as of March 31, 2019 . Significant increases or decreases in these inputs in isolation could result in a significantly lower or higher fair value measurement. Valuation Technique Unobservable Input Analytical flow cytometer platform Probability-weighted income approach Sales milestones: Discount rate 12.0 % Cost of debt 4.7 % To estimate the fair value of Level 2 debt securities as of March 31, 2019 , our primary pricing provider uses Reuters as the primary pricing source. Our pricing process allows us to select a hierarchy of pricing sources for securities held. If Reuters does not price a Level 2 security that we hold, then the pricing provider will utilize our custodian supplied pricing as the secondary pricing source. For all commercial paper as of March 31, 2019 , our primary pricing provider uses its leading pricing source in the hierarchy to determine pricing. Our pricing provider performs daily reasonableness testing of the Reuters prices. Price changes of 5% or greater are investigated and resolved. In addition, we perform a quarterly testing of the Reuters prices to custodian reported prices. Price differences outside a tolerable variance of approximately 1% are investigated and resolved. Available-for-sale investments consist of the following (in millions): March 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate debt securities $ 194.1 $ 0.5 $ (0.4 ) $ 194.2 Municipal obligations 10.9 — — 10.9 Asset-backed securities 66.8 0.1 (0.2 ) 66.7 U.S. government sponsored agencies 80.1 0.3 (0.5 ) 79.9 Foreign government obligations 3.0 — — 3.0 Other foreign obligations 2.8 — — 2.8 357.7 0.9 (1.1 ) 357.5 Long-term investments: Asset-backed securities 0.1 — — 0.1 0.1 — — 0.1 Total $ 357.8 $ 0.9 $ (1.1 ) $ 357.6 The following is a summary of the amortized cost and estimated fair value of our debt securities at March 31, 2019 by contractual maturity date (in millions): Amortized Cost Estimated Fair Value Mature in less than one year $ 129.9 $ 129.8 Mature in one to five years 175.8 175.8 Mature in more than five years 52.1 52.0 Total $ 357.8 $ 357.6 Available-for-sale investments consist of the following (in millions): December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate debt securities $ 216.2 $ 0.1 $ (1.3 ) $ 215.0 Municipal obligations 11.1 — (0.1 ) 11.0 Asset-backed securities 63.5 — (0.4 ) 63.1 U.S. government sponsored agencies 80.9 0.2 (0.8 ) 80.3 Foreign government obligations 3.6 — — 3.6 375.3 0.3 (2.6 ) 373.0 Long-term investments: Asset-backed securities 0.2 — — 0.2 0.2 — — 0.2 Total $ 375.5 $ 0.3 $ (2.6 ) $ 373.2 The following is a summary of investments with gross unrealized losses and the associated fair value (in millions): March 31, 2019 December 31, 2018 Fair value of investments in a loss position 12 months or more $ 106.4 $ 117.9 Fair value of investments in a loss position less than 12 months $ 97.4 $ 193.0 Gross unrealized losses for investments in a loss position 12 months or more $ 1.0 $ 1.8 Gross unrealized losses for investments in a loss position less than 12 months $ 0.1 $ 0.8 The unrealized losses on these securities are due to a number of factors, including changes in interest rates, changes in economic conditions and changes in market outlook for various industries, among others. Because Bio-Rad has the ability and intent to hold these investments with unrealized losses until a recovery of fair value, or for a reasonable period of time sufficient for a forecasted recovery of fair value, which may be maturity, we do not consider these investments to be other-than-temporarily impaired at March 31, 2019 or at December 31, 2018 . As part of distributing our products, we regularly enter into intercompany transactions. We enter into forward foreign exchange contracts to manage foreign exchange risk of future movements in foreign exchange rates that affect foreign currency denominated intercompany receivables and payables. We do not use derivative financial instruments for speculative or trading purposes. We do not seek hedge accounting treatment for these contracts. As a result, these contracts, generally with maturity dates of 90 days or less and denominated primarily in currencies of industrial countries, are recorded at their fair value at each balance sheet date. The notional principal amounts provide one measure of the transaction volume outstanding as of March 31, 2019 and do not represent the amount of Bio-Rad's exposure to loss. The estimated fair value of these contracts was derived using the spot rates from Reuters on the last business day of the quarter and the points provided by counterparties. The resulting gains or losses offset exchange gains or losses on the related receivables and payables, both of which are included in Foreign currency exchange losses, net in the Condensed Consolidated Statements of Income. The following is a summary of our forward foreign exchange contracts (in millions): March 31, 2019 Contracts maturing in April through June 2019 to sell foreign currency: Notional value $ 41.9 Unrealized loss $ 0.2 Contracts maturing in April through June 2019 to purchase foreign currency: Notional value $ 249.9 Unrealized loss $ 0.1 The estimated fair value of our long-term debt, excluding leases and current maturities, that is not recognized at fair value in the Condensed Consolidated Balance Sheets has an estimated fair value based on quoted market prices for the same or similar issues. The estimated fair value of our long-term debt discussed above and the level of the fair value hierarchy within which the fair value measurement is categorized are as follows (in millions): March 31, 2019 December 31, 2018 Carrying Amount Estimated Fair Value Fair Value Hierarchy Level Carrying Amount Estimated Fair Value Fair Value Hierarchy Level Total long-term debt, excluding leases and current maturities $ 423.9 $ 436.9 2 $ 423.7 $ 435.8 2 Included in Other Investments in the Condensed Consolidated Balance Sheet are investments without readily determinable fair value measured at cost with adjustments for observable price changes in price or impairments. The carrying value of these investments was $8.6 million and $0.6 million as of March 31, 2019 and December 31, 2018 |
4. Intangible Assets, Goodwill
4. Intangible Assets, Goodwill and Other | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | ODWILL AND OTHER PURCHASED INTANGIBLE ASSETS Changes to goodwill by segment were as follows (in millions): Life Science Clinical Diagnostics Total Balances as of December 31, 2018: Goodwill $ 234.5 $ 320.5 $ 555.0 Accumulated impairment losses (41.8 ) (293.4 ) (335.2 ) Goodwill, net 192.7 27.1 219.8 Acquisitions 10.7 — 10.7 Balances as of March 31, 2019: Goodwill 245.2 320.5 565.7 Accumulated impairment losses (41.8 ) (293.4 ) (335.2 ) Goodwill, net $ 203.4 $ 27.1 $ 230.5 In conjunction with the purchase of all the issued and outstanding stock of a small private company in March 2019 (see Note 2, "Acquisitions"), we recorded $10.7 million of goodwill and $12.0 million of definite-lived intangible assets: $10.7 million of Know how and $1.3 million of Covenants not to compete. Other than goodwill, we have no intangible assets with indefinite lives. Information regarding our identifiable purchased intangible assets with definite lives is as follows (in millions): March 31, 2019 Average Remaining Life (years) Purchase Price Accumulated Amortization Net Carrying Amount Customer relationships/lists 1-6 $ 87.2 $ (68.6 ) $ 18.6 Know how 1-10 199.2 (159.1 ) 40.1 Developed product technology 1-10 130.2 (87.8 ) 42.4 Licenses 6-10 76.0 (41.6 ) 34.4 Tradenames 2-6 3.9 (3.3 ) 0.6 Covenants not to compete 3-7 4.5 (1.2 ) 3.3 Total definite-lived intangible assets $ 501.0 $ (361.6 ) $ 139.4 December 31, 2018 Average Remaining Life (years) Purchase Price Accumulated Amortization Net Carrying Amount Customer relationships/lists 1-6 $ 88.7 $ (68.3 ) $ 20.4 Know how 1-7 190.6 (159.8 ) 30.8 Developed product technology 1-10 130.4 (86.6 ) 43.8 Licenses 7-11 76.3 (40.9 ) 35.4 Tradenames 2-6 3.9 (3.3 ) 0.6 Covenants not to compete 7 3.2 (1.1 ) 2.1 Total definite-lived intangible assets $ 493.1 $ (360.0 ) $ 133.1 Amortization expense related to purchased intangible assets is as follows (in millions): Three Months Ended March 31, 2019 2018 Amortization expense $ 5.5 $ 7.4 |
5. Supplemental Cash Flow Info
5. Supplemental Cash Flow Information (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | SUPPLEMENTAL CASH FLOW INFORMATION The reconciliation of net income to net cash provided by operating activities is as follows (in millions): Three Months Ended March 31, 2019 March 31, 2018 Net income $ 865.2 $ 656.8 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 32.9 34.3 Right-of-use asset amortization 10.0 — Share-based compensation 8.5 5.9 Losses on dispositions of securities — 0.2 Other-than-temporary impairment loss on investment 1.6 — Changes in fair market value of equity securities (1,059.2 ) (815.9 ) Gain on divestiture of a product line — (5.1 ) Losses on dispositions of fixed assets 0.3 0.4 Gain on sale of land — (4.1 ) Changes in fair value of contingent consideration (0.5 ) (2.1 ) Payments for operating lease liabilities (11.7 ) — (Increase) decrease in accounts receivable (2.0 ) 40.2 Increase in inventories (11.6 ) (16.9 ) Increase in other current assets (16.7 ) (12.8 ) Increase (decrease) in accounts payable and other current liabilities 20.6 (47.4 ) Increase in income taxes payable 13.8 11.5 Increase in deferred income taxes 238.5 184.5 (Decrease) increase in other long term liabilities (38.3 ) 10.2 Other (8.5 ) 0.6 Net cash provided by operating activities $ 42.9 $ 40.3 Non-cash investing activities: Purchased property, plant and equipment $ 5.1 $ 6.7 |
6. Long-Term Debt
6. Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | LONG-TERM DEBT The principal components of long-term debt are as follows (in millions): March 31, December 31, 4.875% Senior Notes due 2020 principal amount $ 425.0 $ 425.0 Less unamortized discount and debt issuance costs (1.1 ) (1.3 ) 4.875% Senior Notes less unamortized discount and debt issuance costs 423.9 423.7 Capital leases and other debt — 15.7 Finance leases and other debt 15.5 — 439.4 439.4 Less current maturities (1.8 ) (0.5 ) Long-term debt $ 437.6 $ 438.9 Senior Notes due 2020 In December 2010, Bio-Rad sold $425.0 million principal amount of Senior Notes due December 2020 ( 4.875% Notes). The sale yielded net cash proceeds of $422.6 million at an effective rate of 4.946% . The 4.875% Notes pay a fixed rate of interest of 4.875% per year. We have the option to redeem any or all of the 4.875% Notes at any time at a redemption price of 100% of the principal amount (plus a specified make-whole premium as defined in the indenture governing the 4.875% Notes) and accrued and unpaid interest thereon to the redemption date. Our obligations under the 4.875% Notes are not secured and rank equal in right of payment with all of our existing and future unsubordinated indebtedness. Certain covenants apply at each year end to the 4.875% Notes including limitations on the following: liens, sale and leaseback transactions, mergers, consolidations or sales of assets and other covenants. We were in compliance with these covenants as of March 31, 2019 . There are no restrictive covenants relating to total indebtedness, interest coverage, stock repurchases, recapitalizations, dividends and distributions to shareholders or current ratios. Credit Agreement In June 2014, Bio-Rad entered into a $200.0 million unsecured Credit Agreement. Borrowings under the 2014 Credit Agreement are on a revolving basis and can be used to make permitted acquisitions, for working capital and for other general corporate purposes. We had no outstanding borrowings under the 2014 Credit Agreement as of March 31, 2019 or December 31, 2018 , however $0.2 million was utilized for domestic standby letters of credit that reduced our borrowing availability as of March 31, 2019 . If we had borrowed against our 2014 Credit Agreement, the borrowing rate would have been 3.725% at March 31, 2019 . The 2014 Credit Agreement was scheduled to mature in June 2019 but was renewed, and we entered into a new agreement in April 2019 for a maximum of $200.0 million on a revolving basis that will mature in April 2024. The 2019 Credit Agreement is substantially similar to the 2014 Credit Agreement. The borrowing rate for the 2019 Credit Agreement will be disclosed on a quarterly basis starting in the second quarter of 2019. The 2014 Credit Agreement requires Bio-Rad to comply with certain financial ratios and covenants, among other things. These ratios and covenants include a leverage ratio test and an interest coverage test, as well as restrictions on our ability to declare or pay dividends, incur debt, guarantee debt, enter into transactions with affiliates, merge or consolidate, sell assets, make investments and create liens. We were in compliance with all of these ratios and covenants as of March 31, 2019 |
7. Accumulated Other Comprehen
7. Accumulated Other Comprehensive Income 7. Accumulated Other Comprehensive Income (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | . ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income included in our Condensed Consolidated Balance Sheets consists of the following components (in millions): Foreign currency translation adjustments Foreign other post-employment benefits adjustments Net unrealized holding gains on available-for-sale investments Total accumulated other comprehensive income (loss) Balances as of January 1, 2019: $ (35.5 ) $ (14.8 ) $ 3.3 $ (47.0 ) Other comprehensive (loss) income, before reclassifications (36.4 ) 0.2 2.0 (34.2 ) Amounts reclassified from Accumulated other comprehensive income — 0.2 — 0.2 Income tax effects — — — — Other comprehensive (loss) income, net of income taxes (36.4 ) 0.4 2.0 (34.0 ) Balances as of March 31, 2019: $ (71.9 ) $ (14.4 ) $ 5.3 $ (81.0 ) Foreign currency translation adjustments Foreign other post-employment benefits adjustments Net unrealized holding gains on available-for-sale investments Total accumulated other comprehensive income Balances as of January 1, 2018: $ 77.4 $ (22.3 ) $ 4.5 $ 59.6 Other comprehensive income (loss), before reclassifications 46.5 (0.7 ) (1.8 ) 44.0 Amounts reclassified from Accumulated other comprehensive income — 0.3 0.1 0.4 Income tax effects — 0.1 — 0.1 Other comprehensive income (loss), net of income taxes 46.5 (0.3 ) (1.7 ) 44.5 Balances as of March 31, 2018: $ 123.9 $ (22.6 ) $ 2.8 $ 104.1 The amounts reclassified out of Accumulated other comprehensive income into the Condensed Consolidated Statements of Income, with presentation location, were as follows: Income before taxes impact (in millions): Three Months Ended March 31, Components of Comprehensive income 2019 2018 Location Amortization of foreign other post-employment benefit items $ (0.2 ) $ (0.3 ) Other (income) expense, net Net holding losses on equity securities and available-for-sale investments $ — $ (0.1 ) Other (income) expense, net |
8. Earnings Per Share
8. Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | . EARNINGS PER SHARE Basic earnings per share is computed by dividing net income attributable to Bio-Rad by the weighted average number of common shares outstanding for that period. Diluted earnings per share takes into account the effect of dilutive instruments, such as stock options and restricted stock, and uses the average share price for the period in determining the number of potential common shares that are to be added to the weighted average number of shares outstanding. Potential common shares are excluded from the diluted earnings per share calculation if the effect of including such securities would be anti-dilutive. The weighted average number of common shares outstanding used to calculate basic and diluted earnings per share, and the anti-dilutive shares that are excluded from the diluted earnings per share calculation are as follows (in thousands): Three Months Ended March 31, 2019 2018 Basic weighted average shares outstanding 29,801 29,787 Effect of potentially dilutive stock options and restricted stock awards 303 384 Diluted weighted average common shares 30,104 30,171 Anti-dilutive shares 226 41 |
9. Other Income and Expenses
9. Other Income and Expenses | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure | . OTHER INCOME AND EXPENSE, NET Other (income) expense, net includes the following components (in millions): Three Months Ended March 31, 2019 2018 Interest and investment income $ (19.5 ) $ (2.1 ) Net realized loss on investments — 0.1 Other-than-temporary impairment loss on investment 1.6 — Gain on sale of land — (4.1 ) Gain on divestiture of product line — (5.1 ) Other (income) expense (0.8 ) 0.1 Other (income) expense, net $ (18.7 ) $ (11.1 ) |
10. Income Taxes
10. Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | . INCOME TAXES Our effective income tax rate was 23% and 24% for the three months ended March 31, 2019 and 2018 , respectively. The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. We regularly assess our ability to realize our deferred tax assets and establish a valuation allowance if it is more likely than not that some portion, or all, of our deferred tax assets will not be realized. In assessing the realizability of our deferred tax assets, we weigh all available positive and negative evidence. Due to the weight of objectively verifiable negative evidence, we believe that it is more likely than not that our California and certain foreign deferred tax assets will not be realized as of March 31, 2019 , and have maintained a valuation allowance on such deferred tax assets. Our income tax returns are routinely audited by U.S. federal, state and foreign tax authorities. We are currently under examination by many of these tax authorities. There are differing interpretations of tax laws and regulations, and as a result, significant disputes may arise with these tax authorities involving issues of the timing and amount of deductions and allocations of income among various tax jurisdictions. We evaluate our exposures associated with our tax filing positions on a quarterly basis. We record liabilities for unrecognized tax benefits related to uncertain tax positions. We do not believe any currently pending uncertain tax positions will have a material adverse effect on our condensed consolidated financial statements, although an adverse resolution of one or more of these uncertain tax positions in any period may have a material impact on the results of operations for that period. As of March 31, 2019 , based on the expected outcome of certain examinations or as a result of the expiration of statute of limitations for certain jurisdictions, we believe that within the next 12 months it is reasonably possible that our previously unrecognized tax benefits could decrease by up to $3.1 million |
11. Segment Information Segmen
11. Segment Information Segment Reporting | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | SEGMENT INFORMATION Information regarding industry segments for the three months ended March 31, 2019 and 2018 is as follows (in millions): Life Science Clinical Diagnostics Other Operations Segment net sales 2019 $ 215.7 $ 334.1 $ 4.2 2018 $ 197.8 $ 350.8 $ 2.9 Segment net profit (loss) 2019 $ 22.8 $ 30.9 $ (0.1 ) 2018 $ 3.3 $ 36.6 $ — Information regarding industry segments at March 31, 2019 , and December 31, 2018 is as follows (in millions): Life Science Clinical Diagnostics Other Operations Segment assets March 31, 2019 $ 503.7 $ 1,123.8 $ 7.4 December 31, 2018 $ 450.2 $ 949.0 $ 5.9 Segment results are presented in the same manner as we present our operations internally to make operating decisions and assess performance. Net corporate operating, interest and other expense for segment results consists of receipts and expenditures that are not the primary responsibility of segment operating management and therefore are not allocated to the segments for performance assessment by our chief operating decision maker. Interest expense is charged to segments based on the carrying amount of inventory and receivables employed by that segment. For the three months ended March 31, 2019 compared to the same period in 2018 , our Life Science segment had increased sales and gross profit, while our Clinical Diagnostics segment had decreased sales and gross profit. Segment assets at March 31, 2019 increased from December 31, 2018 balances due to inclusion of operating lease right-of-use assets in segment assets (see Note 14, "Leases"). The following reconciles total segment profit to consolidated income before taxes (in millions): Three Months Ended March 31, 2019 2018 Total segment profit $ 53.6 $ 39.9 Foreign currency exchange losses, net (1.3 ) (1.3 ) Net corporate operating, interest and other expense not allocated to segments (2.9 ) (1.9 ) Change in fair market value of equity securities 1,059.2 815.9 Other income (expense), net 18.7 11.1 Consolidated income before income taxes $ 1,127.3 $ 863.7 The following reconciles total segment assets to consolidated total assets (in millions): March 31, 2019 December 31, 2018 Total segment assets $ 1,634.9 $ 1,405.1 Cash and other current assets 1,049.5 1,047.2 Property, plant and equipment, net, excluding segment specific gross machinery and equipment 71.8 79.9 Goodwill, net 230.5 219.8 Other long-term assets 3,876.2 2,859.1 Total assets $ 6,862.9 $ 5,611.1 |
12. Legal Proceedings
12. Legal Proceedings | 3 Months Ended |
Mar. 31, 2019 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Legal Proceedings. | 12. LEGAL PROCEEDINGS On May 27, 2015, our former general counsel, Sanford S. Wadler, filed a lawsuit in the U.S. District Court, Northern District of California, against us and four of our then current directors and one former director. The plaintiff’s suit alleged whistleblower retaliation in violation of the Sarbanes-Oxley Act and the Dodd-Frank Act for raising FCPA-related concerns. Mr. Wadler also alleged wrongful termination in violation of public policy, non-payment of wages and waiting time penalties in violation of the California Labor Code. The plaintiff sought back pay, compensatory damages for lost wages, earnings, retirement benefits and other employee benefits, compensation for mental pain and anguish and emotional distress, waiting time penalties, punitive damages, litigation costs (including attorneys’ fees) and reinstatement of employment. On July 28, 2015 we filed a motion to dismiss the plaintiff's complaint and specifically requested dismissal of the claims alleged against us under the Dodd-Frank Act and California Labor Code 1102.5 and the claims against the directors under the Sarbanes-Oxley Act and the Dodd-Frank Act. On October 23, 2015, the District Court granted our motion with respect to the alleged violations of the Sarbanes-Oxley Act against all the director defendants except Norman Schwartz with prejudice. The Court denied our motion to dismiss the claims under the Dodd-Frank Act as against both us and the director defendants. The trial commenced on January 17, 2017 and concluded on February 6, 2017. Mr. Wadler was awarded $10.92 million , plus prejudgment interest of $141,608 , post-judgment interest, and Mr. Wadler’s litigation costs, expert witness fees, and reasonable attorneys’ fees as approved by the Court. We have provided for the judgment, interest and Mr. Wadler's litigation costs. On June 6, 2017, we filed a notice of appeal with the United States Court of Appeals for the Ninth Circuit. Oral arguments occurred on November 14, 2018. On February 26, 2019, the United States Court of Appeals for the Ninth Circuit issued its decision, reversing in part, vacating in part, and affirming in part. Specifically, the court: (1) reversed the Dodd-Frank claim, which amounts to about $2.96 million plus interest, and directed the district court to enter judgment in Bio-Rad’s favor on that claim; (2) vacated the SOX claim due to instructional error and remanded for further proceedings, including whether a new trial is needed; and (3) affirmed the California public policy claim and the $7.96 million in damages attributable to it. On March 12, 2019 we filed a petition for panel rehearing or rehearing en banc with the United States Court of Appeals for the Ninth Circuit, and this petition was denied on April 8, 2019. |
13. Restructuring Costs (Notes)
13. Restructuring Costs (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring Costs [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | 13. RESTRUCTURING COSTS Restructuring Costs for European Reorganization In May, 2016, we announced that we would take certain actions in our Europe geographic region designed to better align expenses to our revenue and gross margin profile and position us for improved operating performance. These actions, aligned with the creation and evolution of our organization structure and coordinated with the implementation of our global single instance enterprise resource planning ("ERP") platform, are expected to be incurred through 2019. We recorded approximately $(0.1) million of adjustments in restructuring charges related to severance and other employee benefits for the three months ended March 31, 2019 . The amounts recorded were reflected in Cost of goods sold of $(0.1) million in the Condensed Consolidated Statements of Income for the three months ended March 31, 2019 . From May 2016 to March 31, 2019 , total expenses were $12.7 million . The liability of $1.0 million as of March 31, 2019 was recorded in Accrued payroll and employee benefits in the Condensed Consolidated Balance Sheets. Restructuring Costs for Termination of a Diagnostics Research and Development Project and Facility Closures In December 2017, we announced the termination of a diagnostics research and development project in Europe. We recorded less than $(0.1) million of adjustments in restructuring charges related to severance and employee benefits for the three months ended March 31, 2019 . From December 2017 to March 31, 2019 , total expenses were $21.4 million . In June 2018, we announced the closure of a small manufacturing operation in Munich, Germany. We recorded $(0.1) million of adjustments in restructuring charges related to severance and employee benefits for the three months ended March 31, 2019 . From June 2018 to March 31, 2019 , total expenses were $1.6 million . In December 2018, we announced the closure of a small manufacturing facility outside Paris, France. We recorded $(0.1) million of adjustments in restructuring charges related to severance and employee benefits for the three months ended March 31, 2019 . From December 2018 to March 31, 2019 , total expenses were $4.0 million . Restructuring charges for the termination of a diagnostics research and development project and the facility closures are all included in our Clinical Diagnostics segment's results of operations. The amounts recorded were reflected in Cost of goods sold of $(0.2) million in the Condensed Consolidated Statements of Income for the three months ended March 31, 2019 . The liability of $7.5 million as of March 31, 2019 consisted of $3.6 million recorded in Accrued payroll and employee benefits, and $3.9 million recorded in Other long-term liabilities in the Condensed Consolidated Balance Sheets. The following table summarizes the activity for the termination of the diagnostics research and development project and the facility closures restructuring reserves for severance and exit costs (in millions): Balances as of December 31, 2018: $ 11.5 Adjustment to expense (0.2 ) Cash payments (3.6 ) Foreign currency translation gains (0.2 ) Balances as of March 31, 2019: $ 7.5 |
14. Leases (Notes)
14. Leases (Notes) | 3 Months Ended |
Mar. 31, 2019 | |
14. Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | 14. LEASES We have operating leases and to a lesser extent finance leases, for buildings, vehicles and equipment. Our leases have remaining lease terms of 1 year to 20 years, which includes our determination to exercise renewal options. The components of lease expense were as follows (in millions): Three Months Ended March 31, 2019 Operating lease cost $ 12.4 Finance lease cost: Amortization of right-to-use assets $ 0.1 Interest on lease liabilities 0.2 Total finance lease cost $ 0.3 Sublease income $ 0.7 The sublease is for a building in Massachusetts. The term of the sublease ends in 2025, with no options to extend or renew. Supplemental cash flow information related to leases was as follows (in millions): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11.7 Operating cash flows from finance leases $ 0.2 Financing cash flows from finance leases $ 0.2 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1.4 Finance leases $ — Supplemental balance sheet information related to leases was as follows ($'s in millions): March 31, 2019 Operating Leases Operating lease right-of-use assets $ 221.6 Other current liabilities $ 34.4 Operating lease liabilities 192.6 Total operating lease liabilities $ 227.0 March 31, 2019 Finance Leases Property, plant and equipment, gross $ 11.0 Less: accumulated depreciation and amortization (3.2 ) Property, plant and equipment, net $ 7.8 Other current liabilities $ 0.5 Other long-term liabilities 11.4 Total finance lease liabilities $ 11.9 March 31, 2019 Weighted Average Remaining Lease Term Operating leases - in years 9 Finance leases - in years 18 Weighted Average Discount Rate Operating leases 4.3 % Finance leases 6.5 % Maturities of lease liabilities were as follows (in millions): Year Ending December 31, Operating Leases Finance Leases 2019 (excluding the three months ended March 31, 2019) $ 43.3 $ 1.0 2020 37.3 1.2 2021 31.3 1.1 2022 25.3 1.1 2023 23.2 1.0 Thereafter 123.9 16.1 Total lease payments 284.3 21.5 Less imputed interest (57.3 ) (9.6 ) Total $ 227.0 $ 11.9 As of March 31, 2019, we have additional operating leases for office buildings in Germany and Maine that have not commenced of $5.3 million and $1.0 million , respectively. These operating leases will commence in July and May of 2019 with lease terms of 10 to 20 years. Operating and Capital Lease Commitments Under ASC 840, Leases Annual future minimum lease payments at December 31, 2018 under operating leases were as follows: 2019 - $44.4 million ; 2020 - $37.8 million ; 2021 - $27.4 million ; 2022 - $19.7 million ; 2023 - $13.9 million ; and 2024 and beyond - $25.6 million . The total minimum rentals to be received in the future for the sublease as of December 31, 2018 were $17.8 million and ends in 2025. Maturities of our capital lease obligations at December 31, 2018 were as follows: 2019 - $0.5 million ; 2020 - $0.2 million ; 2021 - $0.5 million ; 2022 - $0.4 million ; 2023 - $0.4 million ; thereafter - $9.9 million |
1. Basis of Presentation and U
1. Basis of Presentation and Use of Estimates Organization, Consolidation and Presentation of Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Lessee, Leases [Policy Text Block] | Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our condensed consolidated balance sheet as of March 31, 2019. Finance leases are included in property, plant and equipment, other current liabilities, and other long-term liabilities in our condensed consolidated balance sheet as of March 31, 2019. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Where we act as lessee, we elected not to separate lease and non-lease components and are more fully described in Note 14, Leases. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements and Securities and Exchange Commission ("SEC") Rule Adopted In August 2018, the FASB issued ASU 2018-15, "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." ASU 2018-15 amends the definition of a hosting arrangement and requires a customer in a hosting arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. The internal-use software guidance states that only qualifying costs incurred during the application development stage can be capitalized. We prospectively adopted ASU 2018-15 effective January 1, 2019. During the first quarter of 2019, we capitalized $0.7 million of implementation costs for cloud computing arrangements, net of accumulated amortization, primarily for business analytics software, and is recorded in Other current assets and Other assets in the Condensed Consolidated Balance Sheet. In August 2018, the SEC issued Final Rule Release No. 33-10532, "Disclosure Update and Simplification" that extends to interim periods the annual disclosure requirement of presenting the changes in stockholder' equity, which was effective in the first quarter of 2019. In February 2016, the FASB issued ASU 2016-02, "Leases," and related accounting standard updates, which requires, among other items, lease accounting to recognize most leases as assets and liabilities on the balance sheet. Qualitative and quantitative disclosures are enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. We adopted ASU 2016-02 on a modified retrospective basis effective January 1, 2019 with practical expedients, and did not restate comparative prior periods. Where we act as a lessee, the adoption of the standard resulted in material additions to the balance sheet for right-of-use assets and the associated liabilities, see Note 14, Leases. The practical expedients include, among other items, for leases that existed prior January 1, 2019, to not reassess whether any contracts are or contain embedded leases, reassessing the classification of existing leases, and reassessing whether previously capitalized initial direct costs qualify for capitalization. Where we act as a lessee, we also elected not to separate lease and non-lease components. Where we act as a lessor in reagent rental arrangements, there was an insignificant impact to our condensed consolidated financial statements, which is more fully described above under the caption "Reagent Rental Agreements." Recent Accounting Pronouncements to be Adopted In November 2018, the FASB issued ASU 2018-18, "Clarifying the Interaction between Topic 808 and Topic 606." Topic 808 is Collaborative Arrangements, and Topic 606 is Revenue from Contracts with Customers. ASU 2018-18 clarifies that certain transactions between collaborative partners should be accounted for as revenue under ASC 606 when the collaborative partner is a customer. We currently do not have any customers that are collaborative partners or anticipate any in the near future. ASU 2018-18 will be effective January 1, 2020. In August 2018, the FASB issued ASU 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans." ASU 2018-14 eliminates and adds certain disclosures for defined benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020 using a retrospective approach. We are currently evaluating the disclosures but do not expect ASU 2018-14 to have a material impact to our disclosures for defined benefit plans. In August 2018, the FASB issued ASU 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement." ASU 2018-13 eliminates, adds and modifies certain disclosures for fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. We do not expect ASU 2018-13 to have a material impact to our fair value disclosures. |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition On January 1, 2018, we adopted Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers," using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. We recorded a net reduction to opening retained earnings of $0.1 million as of January 1, 2018 due to the cumulative impact of adopting ASC 606 with the impact primarily related to a customer loyalty program in the United States for which the resulting non-cash consideration is treated as variable consideration under the new revenue recognition accounting standard. We recognize revenue from operations through the sale of products, services, and rental of instruments. Revenue from contracts with customers is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We enter into contracts that can include various combinations of products and services, which are generally accounted for as distinct performance obligations. Revenue is recognized net of any taxes collected from customers (sales tax, value added tax, etc.), which are subsequently remitted to government authorities. Our contracts from customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment, and may or may not impact the timing of revenue recognition. Revenue associated with equipment that requires factory installation is not recorded until installation is complete and customer acceptance, if required, has occurred. Certain equipment requires installation due to the fact that the instruments are being operated in a clinical/laboratory environment, and the installation services could result in modification of the equipment in order to ensure that the instruments are working according to specifications of the customer which are subject to validation tests upon completion of the installation. In these arrangements, which require factory installation, the delivery of the equipment and the installation are separate performance obligations. We will recognize the transaction price allocated to the equipment only upon customer acceptance, as the transfer of control has occurred in relation to the equipment at that point in time as the customer has the ability to direct the use of and obtain substantially all of the remaining benefits from the asset. The transaction price allocated to the installation services is also recognized upon completion of the services because without the completion of the installation services and related customer acceptance the customer cannot receive any of the benefits of the service. At the time revenue is recognized, a provision is recognized for estimated product returns as this right is considered variable consideration. Accordingly, when product revenues are recognized, the transaction price is reduced to the estimated amount that we expect to receive in exchange for transferring control for those products. Service revenues on extended warranty contracts are recognized ratably over the life of the service agreement as a stand-ready performance obligation. For arrangements that include a combination of products and services, transaction prices are allocated to performance obligations based on stand-alone selling prices. The method used to determine the stand-alone selling prices for service revenues is based on the observable prices when the services have been sold separately. In those instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simple and predictable methods of purchasing our products and services, not to either provide or receive financing to or from our customers. We record contract liabilities when cash payments are received or due in advance of our performance. We do not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less and for contracts in which we recognize revenue at the amount to which we have the right to invoice for services performed. Our payment terms vary by the type and location of our customer, and the products and services offered. The term between invoicing and when payment is due is not significant. Reagent Rental Agreements Reagent rental agreements are a diagnostic industry sales method that provides use of an instrument and consumables (reagents) to a customer on a per test basis. These agreements may also include maintenance of the underlying instruments retained at customer locations as well as initial training. We initially determine if a reagent rental arrangement contains a lease at lease commencement. Where we have determined that such an arrangement contains a lease, we next must ascertain its lease classification for purposes of applying appropriate accounting treatment as an operating, sales-type or direct financing lease. In addition, for purposes of determining the lease term used in performing the lease classification test, we include the noncancellable period of the lease together with those periods covered by the option to extend the lease if the customer is reasonably certain to exercise that option, the periods covered by an option to terminate the lease if the customer is reasonably certain not to exercise that option, and the periods covered by the option to extend (or not to terminate) the lease in which exercise of the option is controlled by the company. While most of our reagent rental arrangements contain either the option for a lessee to extend and/or cancel, the period in which the contract is enforceable is a very short period and therefore the lease term has been limited to the non-cancellable period. Furthermore, it has historically been very rare for these arrangements to contain an option for the lessee to purchase the underlying asset. As discussed further below under the captions “Leases” and “Recent Accounting Pronouncements Adopted,” as well as in Note 14, Leases, we adopted ASC 842, “Leases,” on a modified retrospective basis effective January 1, 2019 with practical expedients, and did not restate comparative prior periods. We concluded that the use of the instrument (referred to as “lease elements”) is not within the guidance of ASC 606 but rather ASC 842. Accordingly, we first allocate the transaction price between the lease elements and the non-lease elements based on relative standalone selling prices. The determination of the transaction price requires judgment and consideration of any fixed/minimum payments as well as estimates of variable consideration. After allocation, the amount of variable payments allocated to lease components will be recognized as income under ASC 842, while the amount of variable payments allocated to non-lease components will be recognized as income in accordance with ASC 606. Upon our adoption of ASC 842 in 2019, the maintenance services, along with the reagents, are now allocated to the non-lease elements and will be recognized as income in accordance with ASC 606. This change is in alignment with the requirements of ASC 842, and has resulted in a decrease in the amount of rental income that is included in our total revenue. Generally, the terms of the arrangements result in the transfer of control on reagents upon either (i) when the consumables are delivered or (ii) when the consumables are consumed by the customer. Historically, our reagent rental arrangements have been predominantly comprised of variable lease payments, as very few of such arrangements contain any fixed/minimum lease payments. As a result, our lease income is heavily variable in nature with only relatively insignificant amounts of lease income comprised of fixed or stated minimum lease payments. Further, our reagent rental arrangements are predominantly classified as operating leases, with only very insignificant lease income associated with sales-type leases. Hence, our reported lease income is primarily variable in nature and is recognized over time as the reagents are consumed by the customer or delivered. Revenue allocated to the lease elements of these reagent rental arrangements represents approximately 3% and 5% of total revenue in the first quarter of 2019 compared to the first quarter of 2018, respectively, and is included as part of Net sales in our Condensed Consolidated Statements of Income. Contract costs: As a practical expedient, we expense as incurred costs to obtain contracts as the amortization period would have been one year or less. These costs, recorded within Selling, general and administrative expense, include our internal sales force compensation programs and certain partner sales incentive programs, as we have determined that annual compensation is commensurate with annual selling activities. Disaggregation of Revenue: The following table presents our revenues disaggregated by geographic region based primarily on the location of the use of the product or service (in millions, unaudited): Three Months Ended March 31, 2019 2018 Europe $ 185.9 $ 199.6 Pacific Rim 106.4 109.4 United States 226.1 209.9 Other (primarily Canada and Latin America) 35.6 32.6 Total Net sales $ 554.0 $ 551.5 The disaggregation of our revenue by industry segment sources is presented in our Segment Information footnote (see Note 11). Deferred revenues represent mostly unrecognized fees billed or collected for extended service arrangements. Deferred revenues are generally recognized ratably over the term of the service contract as our performance extends over the life of the arrangement. A majority of our deferred revenue balance is classified as current with an expected length of one year or less. The increase in our total deferred revenue balance from $37.3 million at December 31, 2018 to $41.1 million at March 31, 2019 is primarily driven by $15.2 million , net, of cash payments received or due in advance of satisfying our performance obligations, partially offset by $11.4 million of revenue recognized that were included in our deferred revenue balance as of December 31, 2018 . We warrant certain equipment against defects in design, materials and workmanship, generally for a period of one year. Upon revenue recognition of that equipment, we establish, as part of Cost of goods sold, a provision for the expected costs of such warranty based on historical experience, specific warranty terms and customer feedback. A review is performed on a quarterly basis to assess the adequacy of our warranty accrual. Components of the warranty accrual, included in Other current liabilities and Other long-term liabilities in the Condensed Consolidated Balance Sheets, were as follows (in millions): December 31, 2018 $ 10.1 Provision for warranty 1.4 Actual warranty costs (2.2 ) March 31, 2019 $ 9.3 |
1. Basis of Presentation and_2
1. Basis of Presentation and Use of Estimates Schedule of Revenue from External Customers Geographic (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | |
Revenue from External Customers by Geographic Areas [Table Text Block] | The following table presents our revenues disaggregated by geographic region based primarily on the location of the use of the product or service (in millions, unaudited): Three Months Ended March 31, 2019 2018 Europe $ 185.9 $ 199.6 Pacific Rim 106.4 109.4 United States 226.1 209.9 Other (primarily Canada and Latin America) 35.6 32.6 Total Net sales $ 554.0 $ 551.5 |
Schedule of Product Warranty Liability [Table Text Block] | Components of the warranty accrual, included in Other current liabilities and Other long-term liabilities in the Condensed Consolidated Balance Sheets, were as follows (in millions): December 31, 2018 $ 10.1 Provision for warranty 1.4 Actual warranty costs (2.2 ) March 31, 2019 $ 9.3 |
3. Fair Value Measurements (Ta
3. Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Debt Securities, Available-for-sale [Table Text Block] | Available-for-sale investments consist of the following (in millions): March 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate debt securities $ 194.1 $ 0.5 $ (0.4 ) $ 194.2 Municipal obligations 10.9 — — 10.9 Asset-backed securities 66.8 0.1 (0.2 ) 66.7 U.S. government sponsored agencies 80.1 0.3 (0.5 ) 79.9 Foreign government obligations 3.0 — — 3.0 Other foreign obligations 2.8 — — 2.8 357.7 0.9 (1.1 ) 357.5 Long-term investments: Asset-backed securities 0.1 — — 0.1 0.1 — — 0.1 Total $ 357.8 $ 0.9 $ (1.1 ) $ 357.6 |
Schedule of financial assets and liabilities carried at fair value on a recurring basis | Financial assets and liabilities carried at fair value and measured on a recurring basis as of March 31, 2019 are classified in the hierarchy as follows (in millions): Level 1 Level 2 Level 3 Total Financial Assets Carried at Fair Value: Cash equivalents: Commercial paper $ — $ 96.1 $ — $ 96.1 Asset backed — 0.4 — 0.4 Time deposits 10.0 10.0 — 20.0 Money market funds 39.7 — — 39.7 Total cash equivalents (a) 49.7 106.5 — 156.2 Restricted investment 5.6 — — 5.6 Equity securities (b) 3,692.7 — — 3,692.7 Available-for-sale investments: Corporate debt securities — 194.2 — 194.2 U.S. government sponsored agencies — 79.9 — 79.9 Foreign government obligations — 3.0 — 3.0 Other Foreign Obligations — 2.8 — 2.8 Municipal obligations — 10.9 — 10.9 Asset-backed securities — 66.8 — 66.8 Total available-for-sale investments (c) — 357.6 — 357.6 Forward foreign exchange contracts (d) — 0.6 — 0.6 Total financial assets carried at fair value $ 3,748.0 $ 464.7 $ — $ 4,212.7 Financial Liabilities Carried at Fair Value: Forward foreign exchange contracts (e) $ — $ 0.7 $ — $ 0.7 Contingent consideration (f) — — 6.5 6.5 Total financial liabilities carried at fair value $ — $ 0.7 $ 6.5 $ 7.2 Financial assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2018 are classified in the hierarchy as follows (in millions): Level 1 Level 2 Level 3 Total Financial Assets Carried at Fair Value: Cash equivalents: Commercial paper $ — $ 77.8 $ — $ 77.8 Time deposits 22.7 10.0 — 32.7 Asset-backed securities — 0.3 — 0.3 Money market funds 36.9 — — 36.9 Total cash equivalents (a) 59.6 88.1 — 147.7 Restricted investment 5.6 — — 5.6 Equity securities (b) 2,672.9 — — 2,672.9 Available-for-sale investments: Corporate debt securities — 215.0 — 215.0 U.S. government sponsored agencies — 80.3 — 80.3 Foreign government obligations — 3.6 — 3.6 Municipal obligations — 11.0 — 11.0 Asset-backed securities — 63.3 — 63.3 Total available-for-sale investments (c) — 373.2 — 373.2 Forward foreign exchange contracts (d) — 0.6 — 0.6 Total financial assets carried at fair value $ 2,738.1 $ 461.9 $ — $ 3,200.0 Financial Liabilities Carried at Fair Value: Forward foreign exchange contracts (e) $ — $ 0.7 $ — $ 0.7 Contingent consideration (f) — — 8.4 8.4 Total financial liabilities carried at fair value $ — $ 0.7 $ 8.4 $ 9.1 (a) Cash equivalents are included in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (b) Equity securities are included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): March 31, 2019 Short-term investments $ 45.7 Other investments 3,647.0 Total $ 3,692.7 The unrealized gains on our equity securities for the first quarter of 2019 are $1,059.2 million and are primarily due to our investment in Sartorius AG and is recorded in our Condensed Consolidated Statements of Income. (c) Available-for-sale investments are included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): March 31, 2019 December 31, 2018 Short-term investments $ 357.5 $ 373.0 Other investments 0.1 0.2 Total $ 357.6 $ 373.2 (d) Forward foreign exchange contracts in an asset position are included in Other current assets in the Condensed Consolidated Balance Sheets. (e) Forward foreign exchange contracts in a liability position are included in Other current liabilities in the Condensed Consolidated Balance Sheets. (f) Contingent consideration liability is included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): March 31, 2019 December 31, 2018 Other current liabilities $ 3.4 $ 3.2 Other long-term liabilities 3.1 5.2 Total $ 6.5 $ 8.4 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table provides a reconciliation of the Level 3 analytical flow cytometer platform contingent consideration liabilities measured at estimated fair value (in millions): December 31, 2018 $ 8.4 Payment of sales milestone (1.4 ) Decrease in estimated fair value of contingent consideration included in Selling, general and administrative expense (0.5 ) March 31, 2019 $ 6.5 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | The following table provides quantitative information about Level 3 inputs for fair value measurement of our analytical flow cytometer platform contingent consideration liability as of March 31, 2019 . Significant increases or decreases in these inputs in isolation could result in a significantly lower or higher fair value measurement. Valuation Technique Unobservable Input Analytical flow cytometer platform Probability-weighted income approach Sales milestones: Discount rate 12.0 % Cost of debt 4.7 % |
Schedule of available-for-sale investments | Available-for-sale investments consist of the following (in millions): December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Short-term investments: Corporate debt securities $ 216.2 $ 0.1 $ (1.3 ) $ 215.0 Municipal obligations 11.1 — (0.1 ) 11.0 Asset-backed securities 63.5 — (0.4 ) 63.1 U.S. government sponsored agencies 80.9 0.2 (0.8 ) 80.3 Foreign government obligations 3.6 — — 3.6 375.3 0.3 (2.6 ) 373.0 Long-term investments: Asset-backed securities 0.2 — — 0.2 0.2 — — 0.2 Total $ 375.5 $ 0.3 $ (2.6 ) $ 373.2 |
Summary of fair value of gross unrealized losses for investments with unrealized losses | The following is a summary of investments with gross unrealized losses and the associated fair value (in millions): March 31, 2019 December 31, 2018 Fair value of investments in a loss position 12 months or more $ 106.4 $ 117.9 Fair value of investments in a loss position less than 12 months $ 97.4 $ 193.0 Gross unrealized losses for investments in a loss position 12 months or more $ 1.0 $ 1.8 Gross unrealized losses for investments in a loss position less than 12 months $ 0.1 $ 0.8 |
Discussion of current derivative risk management | The following is a summary of our forward foreign exchange contracts (in millions): March 31, 2019 Contracts maturing in April through June 2019 to sell foreign currency: Notional value $ 41.9 Unrealized loss $ 0.2 Contracts maturing in April through June 2019 to purchase foreign currency: Notional value $ 249.9 Unrealized loss $ 0.1 |
Summary of amortized cost and estimated fair value of debt securities by contractual maturity date | The following is a summary of the amortized cost and estimated fair value of our debt securities at March 31, 2019 by contractual maturity date (in millions): Amortized Cost Estimated Fair Value Mature in less than one year $ 129.9 $ 129.8 Mature in one to five years 175.8 175.8 Mature in more than five years 52.1 52.0 Total $ 357.8 $ 357.6 |
Estimated fair value of financial instruments | The estimated fair value of our long-term debt discussed above and the level of the fair value hierarchy within which the fair value measurement is categorized are as follows (in millions): March 31, 2019 December 31, 2018 Carrying Amount Estimated Fair Value Fair Value Hierarchy Level Carrying Amount Estimated Fair Value Fair Value Hierarchy Level Total long-term debt, excluding leases and current maturities $ 423.9 $ 436.9 2 $ 423.7 $ 435.8 2 |
4. Intangible Assets, Goodwi_2
4. Intangible Assets, Goodwill and Other (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes to goodwill by segment | anges to goodwill by segment were as follows (in millions): Life Science Clinical Diagnostics Total Balances as of December 31, 2018: Goodwill $ 234.5 $ 320.5 $ 555.0 Accumulated impairment losses (41.8 ) (293.4 ) (335.2 ) Goodwill, net 192.7 27.1 219.8 Acquisitions 10.7 — 10.7 Balances as of March 31, 2019: Goodwill 245.2 320.5 565.7 Accumulated impairment losses (41.8 ) (293.4 ) (335.2 ) Goodwill, net $ 203.4 $ 27.1 $ 230.5 In conjunction with the purchase of all the issued and outstanding stock of a small private company in March 2019 (see Note 2, "Acquisitions"), we recorded $10.7 million of goodwill and $12.0 million of definite-lived intangible assets: $10.7 million of Know how and $1.3 million of Covenants not to compete. |
Schedule of identifiable purchased intangible assets with definite lives | formation regarding our identifiable purchased intangible assets with definite lives is as follows (in millions): March 31, 2019 Average Remaining Life (years) Purchase Price Accumulated Amortization Net Carrying Amount Customer relationships/lists 1-6 $ 87.2 $ (68.6 ) $ 18.6 Know how 1-10 199.2 (159.1 ) 40.1 Developed product technology 1-10 130.2 (87.8 ) 42.4 Licenses 6-10 76.0 (41.6 ) 34.4 Tradenames 2-6 3.9 (3.3 ) 0.6 Covenants not to compete 3-7 4.5 (1.2 ) 3.3 Total definite-lived intangible assets $ 501.0 $ (361.6 ) $ 139.4 December 31, 2018 Average Remaining Life (years) Purchase Price Accumulated Amortization Net Carrying Amount Customer relationships/lists 1-6 $ 88.7 $ (68.3 ) $ 20.4 Know how 1-7 190.6 (159.8 ) 30.8 Developed product technology 1-10 130.4 (86.6 ) 43.8 Licenses 7-11 76.3 (40.9 ) 35.4 Tradenames 2-6 3.9 (3.3 ) 0.6 Covenants not to compete 7 3.2 (1.1 ) 2.1 Total definite-lived intangible assets $ 493.1 $ (360.0 ) $ 133.1 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | ortization expense related to purchased intangible assets is as follows (in millions): Three Months Ended March 31, 2019 2018 Amortization expense $ 5.5 $ 7.4 |
5. Supplemental Cash Flow In_2
5. Supplemental Cash Flow Information Cash Flow, Supplemental Disclosure (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | SUPPLEMENTAL CASH FLOW INFORMATION The reconciliation of net income to net cash provided by operating activities is as follows (in millions): Three Months Ended March 31, 2019 March 31, 2018 Net income $ 865.2 $ 656.8 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 32.9 34.3 Right-of-use asset amortization 10.0 — Share-based compensation 8.5 5.9 Losses on dispositions of securities — 0.2 Other-than-temporary impairment loss on investment 1.6 — Changes in fair market value of equity securities (1,059.2 ) (815.9 ) Gain on divestiture of a product line — (5.1 ) Losses on dispositions of fixed assets 0.3 0.4 Gain on sale of land — (4.1 ) Changes in fair value of contingent consideration (0.5 ) (2.1 ) Payments for operating lease liabilities (11.7 ) — (Increase) decrease in accounts receivable (2.0 ) 40.2 Increase in inventories (11.6 ) (16.9 ) Increase in other current assets (16.7 ) (12.8 ) Increase (decrease) in accounts payable and other current liabilities 20.6 (47.4 ) Increase in income taxes payable 13.8 11.5 Increase in deferred income taxes 238.5 184.5 (Decrease) increase in other long term liabilities (38.3 ) 10.2 Other (8.5 ) 0.6 Net cash provided by operating activities $ 42.9 $ 40.3 Non-cash investing activities: Purchased property, plant and equipment $ 5.1 $ 6.7 |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The reconciliation of net income to net cash provided by operating activities is as follows (in millions): Three Months Ended March 31, 2019 March 31, 2018 Net income $ 865.2 $ 656.8 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 32.9 34.3 Right-of-use asset amortization 10.0 — Share-based compensation 8.5 5.9 Losses on dispositions of securities — 0.2 Other-than-temporary impairment loss on investment 1.6 — Changes in fair market value of equity securities (1,059.2 ) (815.9 ) Gain on divestiture of a product line — (5.1 ) Losses on dispositions of fixed assets 0.3 0.4 Gain on sale of land — (4.1 ) Changes in fair value of contingent consideration (0.5 ) (2.1 ) Payments for operating lease liabilities (11.7 ) — (Increase) decrease in accounts receivable (2.0 ) 40.2 Increase in inventories (11.6 ) (16.9 ) Increase in other current assets (16.7 ) (12.8 ) Increase (decrease) in accounts payable and other current liabilities 20.6 (47.4 ) Increase in income taxes payable 13.8 11.5 Increase in deferred income taxes 238.5 184.5 (Decrease) increase in other long term liabilities (38.3 ) 10.2 Other (8.5 ) 0.6 Net cash provided by operating activities $ 42.9 $ 40.3 Non-cash investing activities: Purchased property, plant and equipment $ 5.1 $ 6.7 |
6. Long-Term Debt (Tables)
6. Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The principal components of long-term debt are as follows (in millions): March 31, December 31, 4.875% Senior Notes due 2020 principal amount $ 425.0 $ 425.0 Less unamortized discount and debt issuance costs (1.1 ) (1.3 ) 4.875% Senior Notes less unamortized discount and debt issuance costs 423.9 423.7 Capital leases and other debt — 15.7 Finance leases and other debt 15.5 — 439.4 439.4 Less current maturities (1.8 ) (0.5 ) Long-term debt $ 437.6 $ 438.9 |
7. Accumulated Other Compreh_2
7. Accumulated Other Comprehensive Income 7. Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive income included in our Condensed Consolidated Balance Sheets consists of the following components (in millions): Foreign currency translation adjustments Foreign other post-employment benefits adjustments Net unrealized holding gains on available-for-sale investments Total accumulated other comprehensive income (loss) Balances as of January 1, 2019: $ (35.5 ) $ (14.8 ) $ 3.3 $ (47.0 ) Other comprehensive (loss) income, before reclassifications (36.4 ) 0.2 2.0 (34.2 ) Amounts reclassified from Accumulated other comprehensive income — 0.2 — 0.2 Income tax effects — — — — Other comprehensive (loss) income, net of income taxes (36.4 ) 0.4 2.0 (34.0 ) Balances as of March 31, 2019: $ (71.9 ) $ (14.4 ) $ 5.3 $ (81.0 ) Foreign currency translation adjustments Foreign other post-employment benefits adjustments Net unrealized holding gains on available-for-sale investments Total accumulated other comprehensive income Balances as of January 1, 2018: $ 77.4 $ (22.3 ) $ 4.5 $ 59.6 Other comprehensive income (loss), before reclassifications 46.5 (0.7 ) (1.8 ) 44.0 Amounts reclassified from Accumulated other comprehensive income — 0.3 0.1 0.4 Income tax effects — 0.1 — 0.1 Other comprehensive income (loss), net of income taxes 46.5 (0.3 ) (1.7 ) 44.5 Balances as of March 31, 2018: $ 123.9 $ (22.6 ) $ 2.8 $ 104.1 |
Reclassification Out of Accumulated Other Comprehensive Income [Table Text Block] | The amounts reclassified out of Accumulated other comprehensive income into the Condensed Consolidated Statements of Income, with presentation location, were as follows: Income before taxes impact (in millions): Three Months Ended March 31, Components of Comprehensive income 2019 2018 Location Amortization of foreign other post-employment benefit items $ (0.2 ) $ (0.3 ) Other (income) expense, net Net holding losses on equity securities and available-for-sale investments $ — $ (0.1 ) Other (income) expense, net |
8. Earnings Per Share (Tables)
8. Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of weighted-average common shares outstanding used to calculate basic and diluted earnings per shares and the anti-dilutive shares | The weighted average number of common shares outstanding used to calculate basic and diluted earnings per share, and the anti-dilutive shares that are excluded from the diluted earnings per share calculation are as follows (in thousands): Three Months Ended March 31, 2019 2018 Basic weighted average shares outstanding 29,801 29,787 Effect of potentially dilutive stock options and restricted stock awards 303 384 Diluted weighted average common shares 30,104 30,171 Anti-dilutive shares 226 41 |
9. Other Income and Expenses (
9. Other Income and Expenses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of other income (expense), net | Other (income) expense, net includes the following components (in millions): Three Months Ended March 31, 2019 2018 Interest and investment income $ (19.5 ) $ (2.1 ) Net realized loss on investments — 0.1 Other-than-temporary impairment loss on investment 1.6 — Gain on sale of land — (4.1 ) Gain on divestiture of product line — (5.1 ) Other (income) expense (0.8 ) 0.1 Other (income) expense, net $ (18.7 ) $ (11.1 ) |
11. Segment Information Segm_2
11. Segment Information Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Information regarding industry segments for the three months ended March 31, 2019 and 2018 is as follows (in millions): Life Science Clinical Diagnostics Other Operations Segment net sales 2019 $ 215.7 $ 334.1 $ 4.2 2018 $ 197.8 $ 350.8 $ 2.9 Segment net profit (loss) 2019 $ 22.8 $ 30.9 $ (0.1 ) 2018 $ 3.3 $ 36.6 $ — Information regarding industry segments at March 31, 2019 , and December 31, 2018 is as follows (in millions): Life Science Clinical Diagnostics Other Operations Segment assets March 31, 2019 $ 503.7 $ 1,123.8 $ 7.4 December 31, 2018 $ 450.2 $ 949.0 $ 5.9 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | The following reconciles total segment profit to consolidated income before taxes (in millions): Three Months Ended March 31, 2019 2018 Total segment profit $ 53.6 $ 39.9 Foreign currency exchange losses, net (1.3 ) (1.3 ) Net corporate operating, interest and other expense not allocated to segments (2.9 ) (1.9 ) Change in fair market value of equity securities 1,059.2 815.9 Other income (expense), net 18.7 11.1 Consolidated income before income taxes $ 1,127.3 $ 863.7 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | The following reconciles total segment assets to consolidated total assets (in millions): March 31, 2019 December 31, 2018 Total segment assets $ 1,634.9 $ 1,405.1 Cash and other current assets 1,049.5 1,047.2 Property, plant and equipment, net, excluding segment specific gross machinery and equipment 71.8 79.9 Goodwill, net 230.5 219.8 Other long-term assets 3,876.2 2,859.1 Total assets $ 6,862.9 $ 5,611.1 |
13. Restructuring Costs (Tables
13. Restructuring Costs (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The following table summarizes the activity for the termination of the diagnostics research and development project and the facility closures restructuring reserves for severance and exit costs (in millions): Balances as of December 31, 2018: $ 11.5 Adjustment to expense (0.2 ) Cash payments (3.6 ) Foreign currency translation gains (0.2 ) Balances as of March 31, 2019: $ 7.5 |
14. Leases (Tables)
14. Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
14. Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense were as follows (in millions): Three Months Ended March 31, 2019 Operating lease cost $ 12.4 Finance lease cost: Amortization of right-to-use assets $ 0.1 Interest on lease liabilities 0.2 Total finance lease cost $ 0.3 Sublease income $ 0.7 |
Maturities Of Lease Liabilities For Operating and Finance Leases [Table Text Block] | Maturities of lease liabilities were as follows (in millions): Year Ending December 31, Operating Leases Finance Leases 2019 (excluding the three months ended March 31, 2019) $ 43.3 $ 1.0 2020 37.3 1.2 2021 31.3 1.1 2022 25.3 1.1 2023 23.2 1.0 Thereafter 123.9 16.1 Total lease payments 284.3 21.5 Less imputed interest (57.3 ) (9.6 ) Total $ 227.0 $ 11.9 |
Lessee Supplemental Cash Flow Information [Table Text Block] | Supplemental cash flow information related to leases was as follows (in millions): Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 11.7 Operating cash flows from finance leases $ 0.2 Financing cash flows from finance leases $ 0.2 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 1.4 Finance leases $ — |
Lessee Supplemental Balance Sheet Information [Table Text Block] | Supplemental balance sheet information related to leases was as follows ($'s in millions): March 31, 2019 Operating Leases Operating lease right-of-use assets $ 221.6 Other current liabilities $ 34.4 Operating lease liabilities 192.6 Total operating lease liabilities $ 227.0 March 31, 2019 Finance Leases Property, plant and equipment, gross $ 11.0 Less: accumulated depreciation and amortization (3.2 ) Property, plant and equipment, net $ 7.8 Other current liabilities $ 0.5 Other long-term liabilities 11.4 Total finance lease liabilities $ 11.9 March 31, 2019 Weighted Average Remaining Lease Term Operating leases - in years 9 Finance leases - in years 18 Weighted Average Discount Rate Operating leases 4.3 % Finance leases 6.5 % |
1. Basis of Presentation and_3
1. Basis of Presentation and Use of Estimates Organization, Consolidation and Presentation of Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net sales | $ 553,979 | $ 551,519 | |||
Cost of goods sold | 242,217 | 249,316 | |||
Deferred Revenue | 41,100 | $ 37,300 | |||
Deferred Revenue, Period Increase (Decrease) | 15,200 | ||||
Revenue, Net | 11,400 | ||||
Retained earnings | 4,585,701 | 3,722,073 | |||
Accumulated other comprehensive income | (80,965) | (46,958) | |||
Total Stockholders' Equity | $ 4,863,855 | $ 4,488,091 | 4,020,331 | $ 2,930,250 | |
Revenue Allocation Percent To Lease Elements | 3.00% | 5.00% | |||
Additional paid-in-capital | $ 402,847 | $ 394,342 | |||
Unrealized Gain on Securities | 1,059,230 | $ 815,934 | |||
Selling, general and administrative expense | 207,581 | 209,130 | |||
Research and Development Expense | 47,575 | 49,427 | |||
Interest expense | 5,986 | 5,782 | |||
Accounting Standards Update 2014-09 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Retained earnings | $ 100 | ||||
Adjustments for New Accounting Pronouncement [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Capitalized Cloud Computing Arrangements | 700 | ||||
Europe [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net sales | 185,900 | 199,600 | |||
Asia Pacific [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net sales | 106,400 | 109,400 | |||
UNITED STATES | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net sales | 226,100 | 209,900 | |||
Americas [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net sales | $ 35,600 | $ 32,600 |
1. Basis of Presentation and_4
1. Basis of Presentation and Use of Estimates Warranty Rollforward (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Warranty accrual, beginning of period | $ 10.1 |
Provision for warranty | 1.4 |
Actual warranty costs | (2.2) |
Warranty accrual, end of period | $ 9.3 |
2. Acquisitions (Details)
2. Acquisitions (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 04, 2019 | |
Business Combinations [Abstract] | |||
Business Combination, Consideration Transferred | $ 20 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 16 | $ 4 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 12 | ||
Goodwill, Acquired During Period | 10.7 | ||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 2.7 |
3. Fair Value Measurements Fai
3. Fair Value Measurements Fair Value Level Table (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Unrealized Gain on Securities | $ 1,059.2 | |||
Debt Securities, Available-for-sale | 357.6 | |||
Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted Investments, at Fair Value | 5.6 | $ 5.6 | ||
Equity Securities | 3,692.7 | [1] | 2,672.9 | |
Debt Securities, Available-for-sale | [1] | 357.6 | 373.2 | |
Forward Foreign Exchange Contracts, Asset, Fair Value Disclosure | [2] | 0.6 | 0.6 | |
Assets, Fair Value Disclosure | 4,212.7 | 3,200 | ||
Forward Foreign Exchange Contracts, Liability, Fair Value Disclosure | [3] | 0.7 | 0.7 | |
Business Combination, Contingent Consideration, Liability | [4] | 6.5 | 8.4 | |
Liabilities, Fair Value Disclosure | 7.2 | 9.1 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted Investments, at Fair Value | 5.6 | 5.6 | ||
Equity Securities | 3,692.7 | [1] | 2,672.9 | |
Debt Securities, Available-for-sale | [1] | 0 | 0 | |
Forward Foreign Exchange Contracts, Asset, Fair Value Disclosure | [2] | 0 | 0 | |
Assets, Fair Value Disclosure | 3,748 | 2,738.1 | ||
Forward Foreign Exchange Contracts, Liability, Fair Value Disclosure | [3] | 0 | 0 | |
Business Combination, Contingent Consideration, Liability | [4] | 0 | 0 | |
Liabilities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted Investments, at Fair Value | 0 | 0 | ||
Equity Securities | 0 | [1] | 0 | |
Debt Securities, Available-for-sale | [1] | 357.6 | 373.2 | |
Forward Foreign Exchange Contracts, Asset, Fair Value Disclosure | [2] | 0.6 | 0.6 | |
Assets, Fair Value Disclosure | 464.7 | 461.9 | ||
Forward Foreign Exchange Contracts, Liability, Fair Value Disclosure | [3] | 0.7 | 0.7 | |
Business Combination, Contingent Consideration, Liability | [4] | 0 | 0 | |
Liabilities, Fair Value Disclosure | 0.7 | 0.7 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Restricted Investments, at Fair Value | 0 | 0 | ||
Equity Securities | 0 | [1] | 0 | |
Debt Securities, Available-for-sale | [1] | 0 | 0 | |
Forward Foreign Exchange Contracts, Asset, Fair Value Disclosure | [2] | 0 | 0 | |
Assets, Fair Value Disclosure | 0 | 0 | ||
Forward Foreign Exchange Contracts, Liability, Fair Value Disclosure | [3] | 0 | 0 | |
Business Combination, Contingent Consideration, Liability | [4] | 6.5 | 8.4 | |
Liabilities, Fair Value Disclosure | 6.5 | 8.4 | ||
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0.4 | [5] | 0.3 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | [5] | 0 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0.4 | [5] | 0.3 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | [5] | 0 | |
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 96.1 | 77.8 | |
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | 0 | |
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 96.1 | 77.8 | |
Commercial Paper [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | 0 | |
Time Deposits [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 20 | 32.7 | |
Time Deposits [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 10 | 22.7 | |
Time Deposits [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 10 | 10 | |
Time Deposits [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | 0 | |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 39.7 | 36.9 | |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 39.7 | 36.9 | |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | 0 | |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | 0 | |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 156.2 | 147.7 | |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 49.7 | 59.6 | |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 106.5 | 88.1 | |
Cash Equivalents [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents, Fair Value Disclosure | [5] | 0 | 0 | |
Foreign Government Debt [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 2.8 | ||
Foreign Government Debt [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 0 | ||
Foreign Government Debt [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 2.8 | ||
Foreign Government Debt [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 0 | ||
Municipal Obligations (Member) | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 10.9 | 11 | |
Municipal Obligations (Member) | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 0 | 0 | |
Municipal Obligations (Member) | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 10.9 | 11 | |
Municipal Obligations (Member) | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 0 | 0 | |
Foreign Government Obligations [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 3 | 3.6 | |
Foreign Government Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 0 | 0 | |
Foreign Government Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 3 | 3.6 | |
Foreign Government Obligations [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 0 | 0 | |
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 194.2 | 215 | |
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 0 | 0 | |
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 194.2 | 215 | |
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 0 | 0 | |
US Government Sponsored Agencies [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 79.9 | 80.3 | |
US Government Sponsored Agencies [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 0 | 0 | |
US Government Sponsored Agencies [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 79.9 | 80.3 | |
US Government Sponsored Agencies [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 0 | 0 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 66.8 | 63.3 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 0 | 0 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 66.8 | 63.3 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | [1] | 0 | 0 | |
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | 3.4 | 3.2 | ||
Other Noncurrent Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | 3.1 | 5.2 | ||
Short-term Investments [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity Securities | 45.7 | |||
Debt Securities, Available-for-sale | 357.5 | 373 | ||
Short-term Investments [Member] | Foreign Government Debt [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | 2.8 | |||
Short-term Investments [Member] | Municipal Obligations (Member) | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | 10.9 | 11 | ||
Short-term Investments [Member] | Foreign Government Obligations [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | 3 | 3.6 | ||
Short-term Investments [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | 194.2 | 215 | ||
Short-term Investments [Member] | US Government Sponsored Agencies [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | 79.9 | 80.3 | ||
Short-term Investments [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt Securities, Available-for-sale | 66.7 | 63.1 | ||
Other Investments [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity Securities | 3,647 | |||
Debt Securities, Available-for-sale | 0.1 | $ 0.2 | ||
Analytical Flow Cytometer Platform [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | 6.5 | |||
Sales milestone minimum amount [Member] | Analytical Flow Cytometer Platform [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 0 | |||
[1] | Available-for-sale investments are included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): March 31, 2019 December 31, 2018 Short-term investments $ 357.5 $ 373.0 Other investments 0.1 0.2 Total $ 357.6 $ 373.2 | |||
[2] | Forward foreign exchange contracts in an asset position are included in Other current assets in the Condensed Consolidated Balance Sheets. | |||
[3] | Forward foreign exchange contracts in a liability position are included in Other current liabilities in the Condensed Consolidated Balance Sheets. | |||
[4] | Contingent consideration liability is included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): March 31, 2019 December 31, 2018 Other current liabilities $ 3.4 $ 3.2 Other long-term liabilities 3.1 5.2 Total $ 6.5 $ 8.4 | |||
[5] | Cash equivalents are included in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. |
3. Fair Value Measurements 3.
3. Fair Value Measurements 3. Contingent Consideration (Details) - USD ($) $ in Millions | 3 Months Ended | 28 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | $ 6.5 | $ 6.5 | $ 8.4 | |
Analytical Flow Cytometer Platform [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration milestone payments | (1.4) | |||
Business Combination, Contingent Consideration, Liability | 6.5 | 6.5 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | $ (0.5) | $ (12.7) | ||
Sales milestone percentage of annual invoices [Member] | Analytical Flow Cytometer Platform [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Acquisition, Contingent Consideration, Potential Percentage Payout | 39.00% | 39.00% | ||
Market Price of Risk [Member] | Analytical Flow Cytometer Platform [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discount Rate | 12.00% | |||
Projected Volatility of Growth Rate [Member] | Analytical Flow Cytometer Platform [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discount Rate | 4.70% | |||
Sales milestone percentage of annual invoices low [Member] | Analytical Flow Cytometer Platform [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Acquisition, Contingent Consideration, Potential Percentage Payout | 20.00% | 20.00% | ||
Sales milestone minimum amount [Member] | Analytical Flow Cytometer Platform [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 0 | $ 0 | ||
Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | [1] | 6.5 | 6.5 | 8.4 |
Other Noncurrent Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | 3.1 | 3.1 | 5.2 | |
Other Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | $ 3.4 | $ 3.4 | $ 3.2 | |
[1] | Contingent consideration liability is included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): March 31, 2019 December 31, 2018 Other current liabilities $ 3.4 $ 3.2 Other long-term liabilities 3.1 5.2 Total $ 6.5 $ 8.4 |
3. Foreign Exchange Forward Co
3. Foreign Exchange Forward Contracts (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Forward foreign exchange contract to sell foreign currency [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional value | $ 41.9 |
Gain (Loss) on Foreign Currency Derivative Instruments not Designated as Hedging Instruments | (0.2) |
Forward foreign exchange contract to purchase foreign currency [Member] | |
Derivatives, Fair Value [Line Items] | |
Notional value | 249.9 |
Gain (Loss) on Foreign Currency Derivative Instruments not Designated as Hedging Instruments | $ (0.1) |
3. Available-for-Sale Investme
3. Available-for-Sale Investments (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 357.8 | ||
Debt Securities, Available-for-sale | 357.6 | ||
Fair Value, Measurements, Recurring [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 357.8 | $ 375.5 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.9 | 0.3 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (1.1) | (2.6) | |
Debt Securities, Available-for-sale | [1] | 357.6 | 373.2 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale | [1] | 194.2 | 215 |
Fair Value, Measurements, Recurring [Member] | Municipal obligations [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale | [1] | 10.9 | 11 |
Fair Value, Measurements, Recurring [Member] | Asset-backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale | [1] | 66.8 | 63.3 |
Fair Value, Measurements, Recurring [Member] | US Government Sponsored Agencies [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale | [1] | 79.9 | 80.3 |
Fair Value, Measurements, Recurring [Member] | Foreign Government Obligations [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale | [1] | 3 | 3.6 |
Fair Value, Measurements, Recurring [Member] | Foreign Government Debt [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale | [1] | 2.8 | |
Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member] | Asset-backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 0.1 | 0.2 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 | |
Debt Securities, Available-for-sale | 0.1 | 0.2 | |
Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member] | Available-for-sale Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 0.2 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Debt Securities, Available-for-sale | 0.2 | ||
Fair Value, Measurements, Recurring [Member] | Other Long-term Investments [Member] | Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 0.1 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Debt Securities, Available-for-sale | 0.1 | ||
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale | 357.5 | 373 | |
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Corporate Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 194.1 | 216.2 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.5 | 0.1 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (0.4) | (1.3) | |
Debt Securities, Available-for-sale | 194.2 | 215 | |
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Municipal obligations [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 10.9 | 11.1 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | (0.1) | |
Debt Securities, Available-for-sale | 10.9 | 11 | |
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Asset-backed Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 66.8 | 63.5 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.1 | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (0.2) | (0.4) | |
Debt Securities, Available-for-sale | 66.7 | 63.1 | |
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Available-for-sale Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 375.3 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.3 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (2.6) | ||
Debt Securities, Available-for-sale | 373 | ||
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | US Government Sponsored Agencies [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 80.1 | 80.9 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.3 | 0.2 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (0.5) | (0.8) | |
Debt Securities, Available-for-sale | 79.9 | 80.3 | |
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Foreign Government Obligations [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 3 | 3.6 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 | |
Debt Securities, Available-for-sale | 3 | 3.6 | |
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Foreign Government Debt [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 2.8 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Debt Securities, Available-for-sale | 2.8 | ||
Fair Value, Measurements, Recurring [Member] | Short-term Investments [Member] | Debt Securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 357.7 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.9 | ||
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (1.1) | ||
Debt Securities, Available-for-sale | 357.5 | ||
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-sale | $ 0.1 | $ 0.2 | |
[1] | Available-for-sale investments are included in the following accounts in the Condensed Consolidated Balance Sheets (in millions): March 31, 2019 December 31, 2018 Short-term investments $ 357.5 $ 373.0 Other investments 0.1 0.2 Total $ 357.6 $ 373.2 |
3. Amortized Cost and Fair Val
3. Amortized Cost and Fair Value of Debt Securities (Details) $ in Millions | Mar. 31, 2019USD ($) |
Fair Value Disclosures [Abstract] | |
Mature in less than one year | $ 129.9 |
Mature in one to five years | 175.8 |
Mature in more than five years | 52.1 |
Total Amortized Cost | 357.8 |
Mature in less than one year | 129.8 |
Mature in one to five years | 175.8 |
Mature in more than five years | 52 |
Estimated Fair Value | $ 357.6 |
3. Fair Value and Gross Unreal
3. Fair Value and Gross Unrealized Losses with Unrealized Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Price Change Debt Security | 5.00% | |
Tolerable variance Level 2 debt security pricing | 1.00% | |
Fair Value of Investments with Gross Unrealized Losses in loss position 12 months or more | $ 106.4 | $ 117.9 |
Fair Value of Investments with Gross Unrealized Losses in loss position less than 12 months | 97.4 | 193 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1 | 1.8 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 0.1 | $ 0.8 |
3. Fair Value Financial Instru
3. Fair Value Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity Securities without Readily Determinable Fair Value, Amount | $ 8.6 | $ 0.6 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, excluding capital leases and current maturities | 423.9 | 423.7 |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total long-term debt, excluding capital leases and current maturities | $ 436.9 | $ 435.8 |
4. Intangible Assets, Goodwi_3
4. Intangible Assets, Goodwill and Other (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||
Goodwill | $ 565,700 | $ 555,000 |
Accumulated impairment loss | (335,200) | (335,200) |
Goodwill, net | 230,541 | 219,770 |
Goodwill, Acquired During Period | 10,700 | |
Life Science [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 245,200 | 234,500 |
Accumulated impairment loss | (41,800) | (41,800) |
Goodwill, net | 203,400 | 192,700 |
Goodwill, Acquired During Period | 10,700 | |
Clinical Diagnostics [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 320,500 | 320,500 |
Accumulated impairment loss | (293,400) | (293,400) |
Goodwill, net | 27,100 | $ 27,100 |
Goodwill, Acquired During Period | $ 0 |
4. Intangible Assets, Goodwi_4
4. Intangible Assets, Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Mar. 04, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, Acquired During Period | $ 10.7 | |||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Purchase Price | 501 | $ 493.1 | ||
Accumulated Amortization | (361.6) | (360) | ||
Net Carrying Amount | 139.4 | 133.1 | ||
Amortization [Abstract] | ||||
Amortization expense | 5.5 | $ 7.4 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 12 | |||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Purchase Price | 87.2 | 88.7 | ||
Accumulated Amortization | (68.6) | (68.3) | ||
Net Carrying Amount | 18.6 | 20.4 | ||
Know how [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Purchase Price | 199.2 | 190.6 | ||
Accumulated Amortization | (159.1) | (159.8) | ||
Net Carrying Amount | 40.1 | 30.8 | ||
Amortization [Abstract] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 10.7 | |||
Developed Technology Rights [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Purchase Price | 130.2 | 130.4 | ||
Accumulated Amortization | (87.8) | (86.6) | ||
Net Carrying Amount | 42.4 | 43.8 | ||
Licensing Agreements [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Purchase Price | 76 | 76.3 | ||
Accumulated Amortization | (41.6) | (40.9) | ||
Net Carrying Amount | 34.4 | 35.4 | ||
Trade Names [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Purchase Price | 3.9 | 3.9 | ||
Accumulated Amortization | (3.3) | (3.3) | ||
Net Carrying Amount | 0.6 | 0.6 | ||
Noncompete Agreements [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Purchase Price | 4.5 | 3.2 | ||
Accumulated Amortization | (1.2) | (1.1) | ||
Net Carrying Amount | $ 3.3 | $ 2.1 | ||
Amortization [Abstract] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 1.3 | |||
Minimum [Member] | Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Average Remaining Life (years) | 1 year | 1 year | ||
Minimum [Member] | Know how [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Average Remaining Life (years) | 1 year | 1 year | ||
Minimum [Member] | Developed Technology Rights [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Average Remaining Life (years) | 1 year | 1 year | ||
Minimum [Member] | Licensing Agreements [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Average Remaining Life (years) | 6 years | 7 years | ||
Minimum [Member] | Trade Names [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Average Remaining Life (years) | 2 years | 2 years | ||
Minimum [Member] | Noncompete Agreements [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Average Remaining Life (years) | 3 years | 7 years | ||
Minimum [Member] | Other Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Average Remaining Life (years) | 0 years | 0 years | ||
Maximum [Member] | Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Average Remaining Life (years) | 6 years | 6 years | ||
Maximum [Member] | Know how [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Average Remaining Life (years) | 10 years | 7 years | ||
Maximum [Member] | Developed Technology Rights [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Average Remaining Life (years) | 10 years | 10 years | ||
Maximum [Member] | Licensing Agreements [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Average Remaining Life (years) | 10 years | 11 years | ||
Maximum [Member] | Trade Names [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Average Remaining Life (years) | 6 years | 6 years | ||
Maximum [Member] | Noncompete Agreements [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Average Remaining Life (years) | 7 years | 7 years | ||
Maximum [Member] | Other Intangible Assets [Member] | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Average Remaining Life (years) | 0 years | 0 years |
5. Supplemental Cash Flow In_3
5. Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | ||
Net Income Attributable to Parent | $ 865,195 | $ 656,774 |
Depreciation and Amortization | 32,900 | 34,300 |
Right-of-user asset amortization | 10,000 | 0 |
Share-based Compensation | 8,500 | 5,900 |
Loss on Sale of Securities, Net | 0 | 200 |
Other than Temporary Impairment Losses on Investments | 1,600 | 0 |
Changes in fair market value of equity securities | (1,059,200) | (815,900) |
Gain on divestiture of a product line | 0 | (5,100) |
Loss on Disposition of Property Plant Equipment | 300 | 400 |
Gain on sale of land | 0 | (4,100) |
Changes in fair value of contingent consideration | (500) | (2,100) |
Operating Lease, Payments | (11,700) | 0 |
(increase) decrease in accounts receivable | (2,000) | 40,200 |
Increase in inventories | (11,600) | (16,900) |
Increase in other current assets | (16,700) | (12,800) |
Increase (decrease) in accounts payable and other current liabilities | 20,600 | (47,400) |
Increase in Income Taxes Payable | 13,800 | 11,500 |
Increase in Deferred Income Taxes | 238,500 | 184,500 |
(Decrease) Incrase in Other Noncurrent Liabilities | (38,300) | 10,200 |
Other | (8,500) | 600 |
Net cash provided by operating activities | 42,943 | 40,346 |
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | $ 5,100 | $ 6,700 |
6. Long-Term Debt (Details)
6. Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Apr. 15, 2019 | Dec. 31, 2018 | Dec. 31, 2010 | |
Debt Instrument [Line Items] | ||||
Debt, Long-term and Short-term, Combined Amount | $ 439,400 | |||
Debt and Capital Lease Obligations | $ 439,400 | |||
Other Long-term Debt, Current | 1,800 | |||
Less Current Maturities | (500) | |||
Long-term debt, net of current maturities | 437,606 | 438,937 | ||
Unsecured Debt [Member] | Senior Notes 4.875% due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured Debt | 425,000 | 425,000 | ||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 1,100 | 1,300 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | |||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||
Long-term debt | $ 423,900 | 423,700 | $ 422,600 | |
Debt Instrument, Interest Rate, Effective Percentage | 4.946% | |||
Face amount of debt sold | $ 425,000 | |||
Capital Lease Obligations [Member] | Capital Leases and Other Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt and Capital Lease Obligations, Including Current Maturities | 0 | 15,700 | ||
Finance Lease Obligations [Member] | Capital Leases and Other Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Other Long-term Debt | $ 0 | |||
Finance Lease Obligations [Member] | Finance Leases and Other Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Other Long-term Debt | 15,500 | |||
Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit maximum borrowing capacity | 200,000 | |||
Outstanding borrowings | $ 0 | |||
Line of Credit Facility, Interest Rate at Period End | 3.725% | |||
Standby Letters of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit maximum borrowing capacity | $ 200 | |||
Scenario, Forecast [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit maximum borrowing capacity | $ 200,000 |
7. Accumulated Other Compreh_3
7. Accumulated Other Comprehensive Income 7. Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance, Accumulated other comprehensive income | $ (46,958) | |
Total other comprehensive income (loss) net of tax | (34,007) | $ 44,548 |
Ending balance, Accumulated other comprehensive income | (80,965) | |
Accumulated Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance, Accumulated other comprehensive income | (35,500) | 77,400 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (36,400) | 46,500 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 |
Other Comprehensive Income (Loss), Tax | 0 | 0 |
Total other comprehensive income (loss) net of tax | (36,400) | 46,500 |
Ending balance, Accumulated other comprehensive income | (71,900) | 123,900 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance, Accumulated other comprehensive income | (14,800) | (22,300) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 200 | (700) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 200 | 300 |
Other Comprehensive Income (Loss), Tax | 0 | 100 |
Total other comprehensive income (loss) net of tax | 400 | (300) |
Ending balance, Accumulated other comprehensive income | (14,400) | (22,600) |
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other (income) expense, net | (200) | (300) |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance, Accumulated other comprehensive income | 3,300 | 4,500 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 2,000 | (1,800) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 100 |
Other Comprehensive Income (Loss), Tax | 0 | 0 |
Total other comprehensive income (loss) net of tax | 2,000 | (1,700) |
Ending balance, Accumulated other comprehensive income | 5,300 | 2,800 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other (income) expense, net | 0 | 100 |
AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance, Accumulated other comprehensive income | (47,000) | 59,600 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (34,200) | 44,000 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 200 | 400 |
Other Comprehensive Income (Loss), Tax | 0 | 100 |
Total other comprehensive income (loss) net of tax | (34,000) | 44,500 |
Ending balance, Accumulated other comprehensive income | $ (81,000) | $ 104,100 |
8. Earnings Per Share (Details
8. Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic weighted average shares outstanding | 29,801 | 29,787 |
Effect of potentially dilutive stock options and restricted stock awards | 303 | 384 |
Diluted weighted average common shares | 30,104 | 30,171 |
Anti-dilutive shares | 226 | 41 |
9. Other Income and Expenses_2
9. Other Income and Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest and investment income | $ (19,500) | $ (2,100) |
Net realized loss on investments | 0 | 100 |
Other than Temporary Impairment Losses on Investment | 1,600 | 0 |
Gain on sale of land | 0 | (4,100) |
Gain on divestiture of a product line | 0 | (5,100) |
Other Nonoperating Income | (800) | |
Other Nonoperating Expense | 100 | |
Nonoperating (Income( Expense | $ (18,696) | $ (11,145) |
10. Income Taxes (Details)
10. Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Effective tax rate | 23.00% | 24.00% |
Unrealized Gain on Securities | $ 1,059,230 | $ 815,934 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 3,100 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 553,979 | $ 551,519 |
Income before income taxes | 1,127,266 | 863,689 |
Life Science [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 215,700 | 197,800 |
Income before income taxes | 22,800 | 3,300 |
Clinical Diagnostics [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 334,100 | 350,800 |
Income before income taxes | 30,900 | 36,600 |
Other Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 4,200 | 2,900 |
Income before income taxes | $ (100) | $ 0 |
11. Segment Information Segm_3
11. Segment Information Segment Profit Reconciliations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income before income taxes | $ 1,127,266 | $ 863,689 |
Unrealized Gain on Securities | 1,059,230 | 815,934 |
Operating Segments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income before income taxes | 53,600 | 39,900 |
Corporate, Non-Segment [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income before income taxes | (2,900) | (1,900) |
Segment Reconciling Items [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Unrealized Gain on Securities | 1,059,200 | 815,900 |
Foreign Currency Gain (Loss) [Member] | Segment Reconciling Items [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income before income taxes | (1,300) | (1,300) |
Other Nonoperating Income (Expense) [Member] | Segment Reconciling Items [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income before income taxes | $ 18,700 | $ 11,100 |
11. Segment Information Segm_4
11. Segment Information Segment Asset Reconciliation (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 6,862,914 | $ 5,611,068 |
Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 1,634,900 | 1,405,100 |
Other Current Assets [Member] | Segment Reconciling Items [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 1,049,500 | 1,047,200 |
Property, Plant and Equipment excluding segment specific [Member] | Segment Reconciling Items [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 71,800 | 79,900 |
Goodwill [Member] | Segment Reconciling Items [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 230,500 | 219,800 |
Other Noncurrent Assets [Member] | Segment Reconciling Items [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 3,876,200 | 2,859,100 |
Life Science [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 503,700 | 450,200 |
Clinical Diagnostics [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 1,123,800 | 949,000 |
Other Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 7,400 | $ 5,900 |
12. Legal Proceedings 12. Cont
12. Legal Proceedings 12. Contingent Liability (Details) - USD ($) | Feb. 26, 2019 | Dec. 31, 2018 |
Legal Proceedings [Abstract] | ||
Loss Contingency, Damages Awarded, Value | $ 7,960,000 | $ 10,920,000 |
Litigation Settlement Interest | $ 141,608 | |
Loss Contingency Accrual, Period Increase (Decrease) | $ (2,960,000) |
13. Restructuring Costs (Detail
13. Restructuring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 10 Months Ended | 16 Months Ended | 35 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
European Reorganization [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ 12.7 | |||||
Restructuring Reserve, Accrual Adjustment | $ (0.1) | |||||
European Reorganization [Member] | Cost of Goods, Total [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve, Accrual Adjustment | (0.1) | |||||
European Reorganization [Member] | Accounts Payable and Accrued Liabilities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve, Current | 1 | $ 1 | $ 1 | $ 1 | 1 | |
Termination of a Diagnostics Research and Development Project [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 21.4 | |||||
Restructuring Reserve, Accrual Adjustment | (0.1) | |||||
Facility Closing [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 4 | 1.6 | ||||
Restructuring Reserve, Accrual Adjustment | (0.1) | |||||
Termination of a Diagnostics Research and Development Project and a Facility Closure [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 7.5 | 7.5 | 7.5 | 7.5 | 7.5 | $ 11.5 |
Restructuring Reserve, Accrual Adjustment | (0.2) | |||||
Payments for Restructuring | (3.6) | |||||
Restructuring Reserve, Foreign Currency Translation (Gain) Loss | (0.2) | |||||
Termination of a Diagnostics Research and Development Project and a Facility Closure [Member] | Cost of Goods, Total [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve, Accrual Adjustment | (0.2) | |||||
Termination of a Diagnostics Research and Development Project and a Facility Closure [Member] | Accounts Payable and Accrued Liabilities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve, Current | 3.6 | 3.6 | 3.6 | 3.6 | 3.6 | |
Termination of a Diagnostics Research and Development Project and a Facility Closure [Member] | Other Noncurrent Liabilities [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve, Current | $ 3.9 | $ 3.9 | $ 3.9 | $ 3.9 | $ 3.9 |
14. Leases (Details)
14. Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 43,300 | ||
Finance Lease, Liability, Payments, Remainder of Fiscal Year | $ 1,000 | ||
Operating Lease, Weighted Average Remaining Lease Term | 9 years | ||
Finance Lease, Weighted Average Remaining Lease Term | 18 years | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.30% | ||
Property, Plant and Equipment, gross | $ 1,330,536 | $ 1,326,829 | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 44,400 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 37,800 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 27,400 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 19,700 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 13,900 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 25,600 | ||
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | 17,800 | ||
Less: accumulated depreciation and amortization | (827,584) | (818,139) | |
Property, Plant and Equipment, Net | 502,952 | 508,690 | |
Finance Lease, Liability, Current | 500 | ||
Finance Lease, Liability, Noncurrent | 11,400 | ||
Finance Lease, Liability | $ 11,900 | ||
Finance Lease, Weighted Average Discount Rate, Percent | 6.50% | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | $ 37,300 | ||
Finance Lease, Liability, Payments, Due Year Two | 1,200 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 31,300 | ||
Finance Lease, Liability, Payments, Due Year Three | 1,100 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 25,300 | ||
Finance Lease, Liability, Payments, Due Year Four | 1,100 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 23,200 | ||
Finance Lease, Liability, Payments, Due Year Five | 1,000 | ||
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 123,900 | ||
Finance Lease, Liability, Payments, Due after Year Five | 16,100 | ||
Lessee, Operating Lease, Liability, Payments, Due | 284,300 | ||
Finance Lease, Liability, Payments, Due | 21,500 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (57,300) | ||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 500 | ||
Capital Leases, Future Minimum Payments Due in Two Years | 200 | ||
Capital Leases, Future Minimum Payments Due in Three Years | 500 | ||
Capital Leases, Future Minimum Payments Due in Four Years | 400 | ||
Capital Leases, Future Minimum Payments Due in Five Years | 400 | ||
Capital Leases, Future Minimum Payments Due Thereafter | 9,900 | ||
Finance Lease, Liability, Undiscounted Excess Amount | (9,600) | ||
Operating lease right-of-use asset | 221,597 | 0 | |
Operating Lease, Payments | 11,700 | $ 0 | |
Operating Lease, Cost | 12,400 | ||
Finance Lease, Right-of-Use Asset, Amortization | 100 | ||
Finance Lease, Interest Expense | 200 | ||
Finance Lease Cost | 300 | ||
Sublease Income | 700 | ||
Finance Lease, Interest Payment on Liability | 200 | ||
Finance Lease, Principal Payments | 200 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 1,400 | ||
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 0 | ||
Current operating lease liabilities | 34,413 | 0 | |
Operating lease liabilities | 192,558 | $ 0 | |
Operating Lease, Liability | $ 227,000 | ||
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 10 years | ||
Lessee Operating And Finance Leases Remaining Lease Term | 1 year | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 20 years | ||
Lessee Operating And Finance Leases Remaining Lease Term | 20 years | ||
GERMANY | |||
Lessee, Lease, Description [Line Items] | |||
Unrecorded Unconditional Purchase Obligation | $ 5,300 | ||
UNITED STATES | |||
Lessee, Lease, Description [Line Items] | |||
Unrecorded Unconditional Purchase Obligation | 1,000 | ||
Finance Lease [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Property, Plant and Equipment, gross | 11,000 | ||
Less: accumulated depreciation and amortization | (3,200) | ||
Property, Plant and Equipment, Net | $ 7,800 |
Uncategorized Items - a10q33119
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 846,762,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,526,019,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (679,257,000) |