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|
|
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
Delaware
|
|
36-4316614
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
One Edwards Way, Irvine, California
|
|
92614
|
(Address of principal executive offices)
|
|
(Zip Code)
|
(949) 250-2500
(Registrant's telephone number, including area code)
|
|
Large accelerated filer
ý
|
|
Accelerated filer
o
|
|
Non-accelerated
filer
o
|
|
Smaller reporting company
o
|
|
Emerging growth company
o
|
|
|
|
Page
Number
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
September 30,
2018 |
|
December 31,
2017 |
||||
ASSETS
|
|
|
|
|
|
||
Current assets
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
1,261.3
|
|
|
$
|
818.3
|
|
Short-term investments (Note 5)
|
334.4
|
|
|
519.2
|
|
||
Accounts receivable, net of allowances of $8.3 and $8.5, respectively
|
423.8
|
|
|
438.7
|
|
||
Other receivables
|
106.3
|
|
|
40.6
|
|
||
Inventories (Note 2)
|
583.8
|
|
|
554.9
|
|
||
Prepaid expenses
|
52.6
|
|
|
60.6
|
|
||
Other current assets
|
150.4
|
|
|
116.9
|
|
||
Total current assets
|
2,912.6
|
|
|
2,549.2
|
|
||
Long-term investments (Note 5)
|
479.0
|
|
|
567.0
|
|
||
Property, plant, and equipment, net
|
826.1
|
|
|
679.7
|
|
||
Goodwill
|
1,122.3
|
|
|
1,126.5
|
|
||
Other intangible assets, net
|
467.9
|
|
|
468.0
|
|
||
Deferred income taxes
|
115.1
|
|
|
167.1
|
|
||
Other assets
|
35.2
|
|
|
108.9
|
|
||
Total assets
|
$
|
5,958.2
|
|
|
$
|
5,666.4
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
||
Accounts payable and accrued liabilities (Note 2)
|
$
|
661.2
|
|
|
$
|
770.3
|
|
Short-term debt (Note 6)
|
599.9
|
|
|
598.0
|
|
||
Contingent consideration liabilities (Note 7)
|
—
|
|
|
51.7
|
|
||
Total current liabilities
|
1,261.1
|
|
|
1,420.0
|
|
||
Long-term debt (Note 6)
|
593.6
|
|
|
438.4
|
|
||
Contingent consideration liabilities (Note 7)
|
192.6
|
|
|
192.6
|
|
||
Taxes payable
|
264.5
|
|
|
347.5
|
|
||
Other long-term liabilities
|
285.1
|
|
|
311.7
|
|
||
Commitments and contingencies (Note 11)
|
|
|
|
|
|
||
Stockholders' equity
|
|
|
|
|
|
||
Preferred stock, $.01 par value, authorized 50.0 shares, no shares outstanding
|
—
|
|
|
—
|
|
||
Common stock, $1.00 par value, 350.0 shares authorized, 214.8 and 212.0 shares issued, and 209.1 and 209.7 shares outstanding, respectively
|
214.8
|
|
|
212.0
|
|
||
Additional paid-in capital
|
1,341.2
|
|
|
1,166.9
|
|
||
Retained earnings
|
2,687.7
|
|
|
1,962.1
|
|
||
Accumulated other comprehensive loss
|
(139.0
|
)
|
|
(132.7
|
)
|
||
Treasury stock, at cost, 5.7 and 2.3 shares, respectively
|
(743.4
|
)
|
|
(252.1
|
)
|
||
Total stockholders' equity
|
3,361.3
|
|
|
2,956.2
|
|
||
Total liabilities and stockholders' equity
|
$
|
5,958.2
|
|
|
$
|
5,666.4
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net sales
|
$
|
906.6
|
|
|
$
|
821.5
|
|
|
$
|
2,745.1
|
|
|
$
|
2,546.8
|
|
Cost of sales
|
224.9
|
|
|
213.3
|
|
|
704.7
|
|
|
640.0
|
|
||||
Gross profit
|
681.7
|
|
|
608.2
|
|
|
2,040.4
|
|
|
1,906.8
|
|
||||
Selling, general, and administrative expenses
|
269.5
|
|
|
244.6
|
|
|
800.4
|
|
|
718.0
|
|
||||
Research and development expenses
|
161.8
|
|
|
142.9
|
|
|
459.1
|
|
|
406.0
|
|
||||
Intellectual property litigation expenses
|
7.9
|
|
|
13.7
|
|
|
19.1
|
|
|
31.6
|
|
||||
Change in fair value of contingent consideration liabilities, net (Note 7)
|
(6.4
|
)
|
|
(16.7
|
)
|
|
8.3
|
|
|
(12.5
|
)
|
||||
Special charges (Note 4)
|
—
|
|
|
9.7
|
|
|
—
|
|
|
9.7
|
|
||||
Other operating expenses, net
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
||||
Operating income
|
248.9
|
|
|
214.0
|
|
|
753.5
|
|
|
753.3
|
|
||||
Interest expense (income), net
|
0.5
|
|
|
0.1
|
|
|
(0.3
|
)
|
|
3.9
|
|
||||
Special charges (gains) (Note 4)
|
—
|
|
|
0.5
|
|
|
(7.1
|
)
|
|
31.7
|
|
||||
Other (income) expense, net
|
(0.3
|
)
|
|
1.6
|
|
|
(2.3
|
)
|
|
6.7
|
|
||||
Income before provision for income taxes
|
248.7
|
|
|
211.8
|
|
|
763.2
|
|
|
711.0
|
|
||||
Provision for income taxes
|
22.8
|
|
|
41.7
|
|
|
48.0
|
|
|
124.6
|
|
||||
Net income
|
$
|
225.9
|
|
|
$
|
170.1
|
|
|
$
|
715.2
|
|
|
$
|
586.4
|
|
Share information
(Note 13)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
1.08
|
|
|
$
|
0.81
|
|
|
$
|
3.41
|
|
|
$
|
2.78
|
|
Diluted
|
$
|
1.06
|
|
|
$
|
0.79
|
|
|
$
|
3.34
|
|
|
$
|
2.71
|
|
Weighted-average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
209.0
|
|
|
211.3
|
|
|
209.5
|
|
|
211.0
|
|
||||
Diluted
|
213.2
|
|
|
216.2
|
|
|
214.1
|
|
|
216.1
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
$
|
225.9
|
|
|
$
|
170.1
|
|
|
$
|
715.2
|
|
|
$
|
586.4
|
|
Other comprehensive income (loss), net of tax (Note 12):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
(2.0
|
)
|
|
26.2
|
|
|
(39.8
|
)
|
|
87.1
|
|
||||
Unrealized gain (loss) on cash flow hedges
|
13.1
|
|
|
(10.6
|
)
|
|
34.0
|
|
|
(29.2
|
)
|
||||
Defined benefit pension plans
|
(0.2
|
)
|
|
0.5
|
|
|
0.3
|
|
|
0.6
|
|
||||
Unrealized gain (loss) on available-for-sale investments
|
0.3
|
|
|
(2.1
|
)
|
|
(3.7
|
)
|
|
(4.7
|
)
|
||||
Reclassification of net realized investment loss to earnings
|
0.6
|
|
|
1.1
|
|
|
2.9
|
|
|
1.9
|
|
||||
Other comprehensive income (loss)
|
11.8
|
|
|
15.1
|
|
|
(6.3
|
)
|
|
55.7
|
|
||||
Comprehensive income
|
$
|
237.7
|
|
|
$
|
185.2
|
|
|
$
|
708.9
|
|
|
$
|
642.1
|
|
|
Nine Months Ended
September 30, |
||||||
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
|
|
||
Net income
|
$
|
715.2
|
|
|
$
|
586.4
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||
Depreciation and amortization
|
57.5
|
|
|
60.7
|
|
||
Stock-based compensation (Note 9)
|
55.0
|
|
|
46.3
|
|
||
Impairment charge (Note 4)
|
—
|
|
|
31.0
|
|
||
Change in fair value of contingent consideration liabilities, net (Note 7)
|
8.3
|
|
|
(12.5
|
)
|
||
Deferred income taxes
|
29.8
|
|
|
44.1
|
|
||
Other
|
3.0
|
|
|
4.5
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
Accounts and other receivables, net
|
(0.3
|
)
|
|
(20.7
|
)
|
||
Inventories
|
(43.5
|
)
|
|
(109.8
|
)
|
||
Accounts payable and accrued liabilities
|
4.0
|
|
|
54.9
|
|
||
Income taxes
|
(208.6
|
)
|
|
(55.0
|
)
|
||
Other
|
13.4
|
|
|
6.9
|
|
||
Net cash provided by operating activities
|
633.8
|
|
|
636.8
|
|
||
Cash flows from investing activities
|
|
|
|
|
|
||
Capital expenditures
|
(181.1
|
)
|
|
(116.2
|
)
|
||
Purchases of held-to-maturity investments (Note 5)
|
(190.0
|
)
|
|
(716.9
|
)
|
||
Proceeds from held-to-maturity investments (Note 5)
|
388.1
|
|
|
333.0
|
|
||
Purchases of available-for sale investments (Note 5)
|
(115.3
|
)
|
|
(477.8
|
)
|
||
Proceeds from available-for-sale investments (Note 5)
|
193.1
|
|
|
381.0
|
|
||
Payment of contingent consideration
|
(10.0
|
)
|
|
—
|
|
||
Acquisition of business, net of cash acquired
|
—
|
|
|
(84.9
|
)
|
||
Other
|
(13.8
|
)
|
|
(14.7
|
)
|
||
Net cash provided by (used in) investing activities
|
71.0
|
|
|
(696.5
|
)
|
||
Cash flows from financing activities
|
|
|
|
|
|
||
Proceeds from issuance of debt, net (Note 6)
|
686.4
|
|
|
989.3
|
|
||
Payments on debt and capital lease obligations (Note 6)
|
(524.1
|
)
|
|
(812.8
|
)
|
||
Purchases of treasury stock
|
(523.5
|
)
|
|
(512.0
|
)
|
||
Proceeds from stock plans
|
119.3
|
|
|
91.3
|
|
||
Payment of contingent consideration
|
(15.1
|
)
|
|
—
|
|
||
Other
|
0.5
|
|
|
—
|
|
||
Net cash used in financing activities
|
(256.5
|
)
|
|
(244.2
|
)
|
||
Effect of currency exchange rate changes on cash and cash equivalents
|
(5.3
|
)
|
|
4.1
|
|
||
Net increase (decrease) in cash and cash equivalents
|
443.0
|
|
|
(299.8
|
)
|
||
Cash and cash equivalents at beginning of period
|
818.3
|
|
|
930.1
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,261.3
|
|
|
$
|
630.3
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
Inventories
|
|
|
|
||||
Raw materials
|
$
|
117.3
|
|
|
$
|
101.4
|
|
Work in process
|
141.6
|
|
|
121.1
|
|
||
Finished products
|
324.9
|
|
|
332.4
|
|
||
|
$
|
583.8
|
|
|
$
|
554.9
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
Accounts payable and accrued liabilities
|
|
|
|
|
|
||
Accounts payable
|
$
|
134.0
|
|
|
$
|
116.6
|
|
Employee compensation and withholdings
|
212.2
|
|
|
249.4
|
|
||
Taxes payable (Note 14)
|
11.7
|
|
|
97.8
|
|
||
Property, payroll, and other taxes
|
44.2
|
|
|
41.9
|
|
||
Research and development accruals
|
49.6
|
|
|
39.2
|
|
||
Accrued rebates
|
77.3
|
|
|
71.0
|
|
||
Fair value of derivatives
|
3.3
|
|
|
24.8
|
|
||
Accrued marketing expenses
|
21.0
|
|
|
14.9
|
|
||
Litigation and insurance reserves
|
17.5
|
|
|
15.0
|
|
||
Accrued relocation costs
|
12.4
|
|
|
8.7
|
|
||
Accrued professional services
|
9.3
|
|
|
8.5
|
|
||
Accrued realignment reserves
|
0.3
|
|
|
8.2
|
|
||
Other accrued liabilities
|
68.4
|
|
|
74.3
|
|
||
|
$
|
661.2
|
|
|
$
|
770.3
|
|
|
Nine Months Ended
September 30, |
||||||
|
2018
|
|
2017
|
||||
Cash paid during the year for:
|
|
|
|
||||
Income taxes
|
$
|
227.3
|
|
|
$
|
122.4
|
|
Non-cash investing and financing transactions:
|
|
|
|
|
|
||
Fair value of shares issued in payment for contingent consideration liabilities
|
$
|
34.3
|
|
|
$
|
—
|
|
Fair value of shares issued in connection with business combinations
|
$
|
—
|
|
|
$
|
266.5
|
|
Retirement of treasury stock
|
$
|
—
|
|
|
$
|
2,746.2
|
|
Capital expenditures accruals
|
$
|
23.7
|
|
|
$
|
19.1
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||||||||||
Held-to-maturity
|
Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||||||||||
Bank time deposits
|
$
|
190.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
190.0
|
|
|
$
|
382.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
382.9
|
|
Commercial paper
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
||||||||
U.S. government and agency securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
||||||||
Total
|
$
|
190.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
190.0
|
|
|
$
|
388.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
388.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Bank time deposits
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.5
|
|
Commercial paper
|
21.2
|
|
|
—
|
|
|
—
|
|
|
21.2
|
|
|
40.3
|
|
|
—
|
|
|
—
|
|
|
40.3
|
|
||||||||
U.S. government and agency securities
|
82.2
|
|
|
—
|
|
|
(0.9
|
)
|
|
81.3
|
|
|
69.4
|
|
|
—
|
|
|
(0.7
|
)
|
|
68.7
|
|
||||||||
Foreign government bonds
|
1.7
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
|
3.0
|
|
|
—
|
|
|
—
|
|
|
3.0
|
|
||||||||
Asset-backed securities
|
94.1
|
|
|
—
|
|
|
(0.7
|
)
|
|
93.4
|
|
|
121.2
|
|
|
—
|
|
|
(0.4
|
)
|
|
120.8
|
|
||||||||
Corporate debt securities
|
403.8
|
|
|
0.9
|
|
|
(3.9
|
)
|
|
400.8
|
|
|
446.5
|
|
|
0.8
|
|
|
(1.8
|
)
|
|
445.5
|
|
||||||||
Municipal securities
|
2.8
|
|
|
—
|
|
|
—
|
|
|
2.8
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
||||||||
Total
|
$
|
605.8
|
|
|
$
|
0.9
|
|
|
$
|
(5.5
|
)
|
|
$
|
601.2
|
|
|
$
|
685.3
|
|
|
$
|
0.8
|
|
|
$
|
(2.9
|
)
|
|
$
|
683.2
|
|
|
Held-to-Maturity
|
|
Available-for-Sale
|
||||||||||||
|
Cost
|
|
Fair Value
|
|
Cost
|
|
Fair Value
|
||||||||
|
(in millions)
|
||||||||||||||
Due in 1 year or less
|
$
|
190.0
|
|
|
$
|
190.0
|
|
|
$
|
145.2
|
|
|
$
|
144.4
|
|
Due after 1 year through 5 years
|
—
|
|
|
—
|
|
|
372.0
|
|
|
368.9
|
|
||||
Due after 5 years through 10 years
|
—
|
|
|
—
|
|
|
1.0
|
|
|
1.0
|
|
||||
Instruments not due at a single maturity date
|
—
|
|
|
—
|
|
|
87.6
|
|
|
86.9
|
|
||||
|
$
|
190.0
|
|
|
$
|
190.0
|
|
|
$
|
605.8
|
|
|
$
|
601.2
|
|
|
September 30, 2018
|
||||||||||||||||||||||
|
Less than 12 Months
|
|
12 Months or Greater
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
||||||||||||
Commercial paper
|
$
|
7.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7.5
|
|
|
$
|
—
|
|
U.S. government and agency securities
|
122.0
|
|
|
(0.3
|
)
|
|
41.3
|
|
|
(0.6
|
)
|
|
163.3
|
|
|
(0.9
|
)
|
||||||
Foreign government bonds
|
1.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
||||||
Asset-backed securities
|
39.0
|
|
|
(0.2
|
)
|
|
43.1
|
|
|
(0.5
|
)
|
|
82.1
|
|
|
(0.7
|
)
|
||||||
Corporate debt securities
|
158.8
|
|
|
(2.0
|
)
|
|
98.6
|
|
|
(1.9
|
)
|
|
257.4
|
|
|
(3.9
|
)
|
||||||
Municipal securities
|
2.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.8
|
|
|
—
|
|
||||||
|
$
|
331.8
|
|
|
$
|
(2.5
|
)
|
|
$
|
183.0
|
|
|
$
|
(3.0
|
)
|
|
$
|
514.8
|
|
|
$
|
(5.5
|
)
|
|
December 31, 2017
|
||||||||||||||||||||||
|
Less than 12 Months
|
|
12 Months or Greater
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
|
Fair Value
|
|
Gross Unrealized Losses
|
||||||||||||
Commercial paper
|
$
|
2.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2.4
|
|
|
$
|
—
|
|
U.S. government and agency securities
|
31.5
|
|
|
(0.2
|
)
|
|
37.1
|
|
|
(0.5
|
)
|
|
68.6
|
|
|
(0.7
|
)
|
||||||
Foreign government bonds
|
3.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.0
|
|
|
—
|
|
||||||
Asset-backed securities
|
90.8
|
|
|
(0.3
|
)
|
|
23.2
|
|
|
(0.1
|
)
|
|
114.0
|
|
|
(0.4
|
)
|
||||||
Corporate debt securities
|
253.3
|
|
|
(1.2
|
)
|
|
59.2
|
|
|
(0.6
|
)
|
|
312.5
|
|
|
(1.8
|
)
|
||||||
Municipal securities
|
4.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.3
|
|
|
—
|
|
||||||
|
$
|
385.3
|
|
|
$
|
(1.7
|
)
|
|
$
|
119.5
|
|
|
$
|
(1.2
|
)
|
|
$
|
504.8
|
|
|
$
|
(2.9
|
)
|
|
September 30,
2018 |
|
December 31,
2017 |
||||
|
(in millions)
|
||||||
Equity method investments
|
|
|
|
|
|
||
Cost
|
$
|
9.5
|
|
|
$
|
9.2
|
|
Equity in losses
|
(5.1
|
)
|
|
(5.1
|
)
|
||
Carrying value of equity method investments
|
4.4
|
|
|
4.1
|
|
||
Equity securities
|
|
|
|
|
|
||
Carrying value of non-marketable equity securities
|
17.8
|
|
|
10.7
|
|
||
Total investments in unconsolidated affiliates
|
$
|
22.2
|
|
|
$
|
14.8
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||
|
Amount
|
|
Effective
Interest Rate |
|
Amount
|
|
Effective
Interest Rate |
||||||
|
(in millions)
|
|
|
|
(in millions)
|
|
|
||||||
Fixed-rate 4.300% 2018 Notes
|
$
|
600.0
|
|
|
4.329
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Fixed-rate 2.875% 2013 Notes
|
600.0
|
|
|
2.983
|
%
|
|
600.0
|
|
|
2.983
|
%
|
||
Total senior notes
|
1,200.0
|
|
|
|
|
600.0
|
|
|
|
||||
Unamortized discount
|
(1.4
|
)
|
|
|
|
|
(0.5
|
)
|
|
|
|
||
Unamortized debt issuance costs
|
(5.1
|
)
|
|
|
|
(0.8
|
)
|
|
|
||||
Hedge accounting fair value adjustments (see Note 8)
|
—
|
|
|
|
|
|
(0.7
|
)
|
|
|
|
||
Total carrying amount
|
$
|
1,193.5
|
|
|
|
|
|
$
|
598.0
|
|
|
|
|
September 30, 2018
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash equivalents
|
$
|
22.2
|
|
|
$
|
114.1
|
|
|
$
|
—
|
|
|
$
|
136.3
|
|
Available-for-sale investments:
|
|
|
|
|
|
|
|
|
|||||||
Corporate debt securities
|
—
|
|
|
400.8
|
|
|
—
|
|
|
400.8
|
|
||||
Asset-backed securities
|
—
|
|
|
93.4
|
|
|
—
|
|
|
93.4
|
|
||||
U.S. government and agency securities
|
21.3
|
|
|
60.0
|
|
|
—
|
|
|
81.3
|
|
||||
Foreign government bonds
|
—
|
|
|
1.7
|
|
|
—
|
|
|
1.7
|
|
||||
Commercial paper
|
—
|
|
|
21.2
|
|
|
—
|
|
|
21.2
|
|
||||
Municipal securities
|
—
|
|
|
2.8
|
|
|
—
|
|
|
2.8
|
|
||||
Investments held for deferred compensation plans
|
72.7
|
|
|
—
|
|
|
—
|
|
|
72.7
|
|
||||
Derivatives
|
—
|
|
|
28.2
|
|
|
—
|
|
|
28.2
|
|
||||
|
$
|
116.2
|
|
|
$
|
722.2
|
|
|
$
|
—
|
|
|
$
|
838.4
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivatives
|
$
|
—
|
|
|
$
|
13.8
|
|
|
$
|
—
|
|
|
$
|
13.8
|
|
Deferred compensation plans
|
73.4
|
|
|
—
|
|
|
—
|
|
|
73.4
|
|
||||
Contingent consideration liabilities
|
—
|
|
|
—
|
|
|
192.6
|
|
|
192.6
|
|
||||
|
$
|
73.4
|
|
|
$
|
13.8
|
|
|
$
|
192.6
|
|
|
$
|
279.8
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
Assets
|
|
|
|
|
|
|
|
|
|||||||
Cash equivalents
|
$
|
52.2
|
|
|
$
|
22.8
|
|
|
$
|
—
|
|
|
$
|
75.0
|
|
Available-for-sale investments:
|
|
|
|
|
|
|
|
||||||||
Bank time deposits
|
—
|
|
|
0.5
|
|
|
—
|
|
|
0.5
|
|
||||
Corporate debt securities
|
—
|
|
|
445.5
|
|
|
—
|
|
|
445.5
|
|
||||
Asset-backed securities
|
—
|
|
|
120.8
|
|
|
—
|
|
|
120.8
|
|
||||
U.S. government and agency securities
|
20.6
|
|
|
48.1
|
|
|
—
|
|
|
68.7
|
|
||||
Foreign government bonds
|
—
|
|
|
3.0
|
|
|
—
|
|
|
3.0
|
|
||||
Commercial paper
|
—
|
|
|
40.3
|
|
|
—
|
|
|
40.3
|
|
||||
Municipal securities
|
—
|
|
|
4.4
|
|
|
—
|
|
|
4.4
|
|
||||
Investments held for deferred compensation plans
|
63.7
|
|
|
—
|
|
|
—
|
|
|
63.7
|
|
||||
Derivatives
|
—
|
|
|
4.9
|
|
|
—
|
|
|
4.9
|
|
||||
|
$
|
136.5
|
|
|
$
|
690.3
|
|
|
$
|
—
|
|
|
$
|
826.8
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Derivatives
|
$
|
—
|
|
|
$
|
24.8
|
|
|
$
|
—
|
|
|
$
|
24.8
|
|
Deferred compensation plans
|
64.1
|
|
|
—
|
|
|
—
|
|
|
64.1
|
|
||||
Contingent consideration liabilities
|
|
|
|
—
|
|
|
244.3
|
|
|
244.3
|
|
||||
|
$
|
64.1
|
|
|
$
|
24.8
|
|
|
$
|
244.3
|
|
|
$
|
333.2
|
|
Balance at December 31, 2017
|
|
$
|
244.3
|
|
Payments
|
|
(60.0
|
)
|
|
Changes in fair value
|
|
8.3
|
|
|
Balance at September 30, 2018
|
|
$
|
192.6
|
|
|
Notional Amount
|
||||||
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
(in millions)
|
||||||
Foreign currency forward exchange contracts
|
$
|
1,268.1
|
|
|
$
|
979.8
|
|
Cross currency swap contracts
|
300.0
|
|
|
—
|
|
|
|
|
|
Fair Value
|
||||||
Derivatives designated as hedging instruments
|
|
Balance Sheet
Location
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
Assets
|
|
|
|
|
|
|
|
|
||
Foreign currency contracts
|
|
Other current assets
|
|
$
|
28.2
|
|
|
$
|
4.9
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||
Cross currency swap contracts
|
|
Other long-term liabilities
|
|
$
|
10.5
|
|
|
$
|
—
|
|
Foreign currency contracts
|
|
Accrued and other liabilities
|
|
$
|
3.3
|
|
|
$
|
24.8
|
|
|
|
|
|
|
|
|
Gross Amounts
Not Offset in
the Consolidated
Balance Sheet
|
|
|
||||||||||||||
|
|
|
Gross Amounts
Offset in the
Consolidated
Balance Sheet
|
|
|
|
|
||||||||||||||||
|
|
|
Net Amounts
Presented in the
Consolidated
Balance Sheet
|
|
|
||||||||||||||||||
September 30, 2018
|
Gross
Amounts
|
|
Financial
Instruments
|
|
Cash
Collateral
Received
|
|
Net
Amount
|
||||||||||||||||
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
28.2
|
|
|
$
|
—
|
|
|
$
|
28.2
|
|
|
$
|
(3.3
|
)
|
|
$
|
—
|
|
|
$
|
24.9
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
3.3
|
|
|
$
|
—
|
|
|
$
|
3.3
|
|
|
$
|
(3.3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Cross currency swap contracts
|
$
|
10.5
|
|
|
$
|
—
|
|
|
$
|
10.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10.5
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivative assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
4.9
|
|
|
$
|
—
|
|
|
$
|
4.9
|
|
|
$
|
(3.7
|
)
|
|
$
|
—
|
|
|
$
|
1.2
|
|
Derivative liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Foreign currency contracts
|
$
|
24.8
|
|
|
$
|
—
|
|
|
$
|
24.8
|
|
|
$
|
(3.7
|
)
|
|
$
|
—
|
|
|
$
|
21.1
|
|
|
|
Amount of Gain or (Loss)
Recognized in OCI
on Derivative
|
|
|
|
Amount of Gain or (Loss)
Reclassified from
Accumulated OCI
into Income
|
||||||||||||
|
|
Three Months Ended
September 30, |
|
Location of Gain or
(Loss) Reclassified from
Accumulated OCI
into Income
|
|
Three Months Ended
September 30, |
||||||||||||
|
|
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency contracts
|
|
$
|
12.1
|
|
|
$
|
(13.6
|
)
|
|
Cost of sales
|
|
$
|
(4.6
|
)
|
|
$
|
3.1
|
|
|
|
|
|
|
|
Selling, general, and administrative expenses
|
|
$
|
(0.4
|
)
|
|
$
|
(0.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Amount of Gain or (Loss)
Recognized in OCI
on Derivative
|
|
|
|
Amount of Gain or (Loss)
Reclassified from
Accumulated OCI
into Income
|
||||||||||||
|
|
Nine Months Ended
September 30, |
|
Location of Gain or
(Loss) Reclassified from
Accumulated OCI
into Income
|
|
Nine Months Ended
September 30, |
||||||||||||
|
|
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||
Cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency contracts
|
|
$
|
28.2
|
|
|
$
|
(39.7
|
)
|
|
Cost of sales
|
|
$
|
(18.8
|
)
|
|
$
|
7.8
|
|
|
|
|
|
|
|
Selling, general, and administrative expenses
|
|
$
|
(2.5
|
)
|
|
$
|
(0.2
|
)
|
|
|
Amount of Gain or (Loss)
Recognized in OCI
on Derivative
|
|
|
|
Amount of Gain or (Loss)
Recognized in Income on Derivative (Amount Excluded from
Effectiveness Testing)
|
||||||||||||
|
|
Three Months Ended
September 30, |
|
Location of Gain or
(Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
|
|
Three Months Ended
September 30, |
||||||||||||
|
|
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||
Net investment hedges
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cross currency swap contracts
|
|
$
|
(0.5
|
)
|
|
$
|
—
|
|
|
Interest expense (income), net
|
|
$
|
1.6
|
|
|
$
|
—
|
|
Foreign currency denominated debt
|
|
$
|
—
|
|
|
$
|
(16.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Amount of Gain or (Loss)
Recognized in OCI
on Derivative
(Effective Portion)
|
|
|
|
Amount of Gain or (Loss)
Recognized in Income on Derivative (Amount Excluded from
Effectiveness Testing)
|
||||||||||||
|
|
Nine Months Ended
September 30, |
|
Location of Gain or
(Loss) Reclassified from
Accumulated OCI
into Income
|
|
Nine Months Ended
September 30, |
||||||||||||
|
|
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||
Net investment hedges
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cross currency swap contracts
|
|
$
|
(10.5
|
)
|
|
$
|
—
|
|
|
Interest expense (income), net
|
|
$
|
1.8
|
|
|
$
|
—
|
|
Foreign currency denominated debt
|
|
$
|
6.8
|
|
|
$
|
(32.5
|
)
|
|
|
|
|
|
|
|
|
|
|
Amount of Gain or (Loss)
Recognized in Income on
Derivative
|
||||||
|
|
|
|
Three Months Ended
September 30, |
||||||
|
|
Location of Gain or (Loss)
Recognized in Income on
Derivative
|
|
|||||||
Fair value hedges
|
|
2018
|
|
2017
|
||||||
Interest rate swap agreements
|
|
Interest expense (income), net
|
|
$
|
—
|
|
|
$
|
(0.1
|
)
|
|
|
|
|
|
|
|
||||
|
|
|
|
Amount of Gain or (Loss)
Recognized in Income on
Derivative
|
||||||
|
|
|
|
Nine Months Ended
September 30, |
||||||
|
|
Location of Gain or (Loss)
Recognized in Income on
Derivative
|
|
|||||||
Fair value hedges
|
|
2018
|
|
2017
|
||||||
Interest rate swap agreements
|
|
Interest expense (income), net
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
|
|
|
Amount of Gain or (Loss)
Recognized in Income on
Derivative
|
||||||
|
|
|
|
Three Months Ended
September 30, |
||||||
|
|
Location of Gain or (Loss)
Recognized in Income on
Derivative
|
|
|||||||
Derivatives not designated as hedging instruments
|
|
2018
|
|
2017
|
||||||
Foreign currency contracts
|
|
Other (income) expense, net
|
|
$
|
5.9
|
|
|
$
|
(6.2
|
)
|
|
|
|
|
|
|
|
||||
|
|
|
|
Amount of Gain or (Loss)
Recognized in Income on
Derivative
|
||||||
|
|
|
|
Nine Months Ended
September 30, |
||||||
|
|
Location of Gain or (Loss)
Recognized in Income on
Derivative
|
|
|||||||
Derivatives not designated as hedging instruments
|
|
2018
|
|
2017
|
||||||
Foreign currency contracts
|
|
Other (income) expense, net
|
|
$
|
7.3
|
|
|
$
|
(12.8
|
)
|
|
Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationships
|
||||||||||||||||||||||
|
Three Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||
|
Cost of sales
|
|
Selling, general, and administrative expenses
|
|
Interest expense (income), net
|
|
Cost of sales
|
|
Selling, general, and administrative expenses
|
|
Interest expense (income), net
|
||||||||||||
|
|
|
|
|
|||||||||||||||||||
Total amounts of income and expense line items presented in the consolidated condensed statements of operations in which the effects of cash flow hedges are recorded
|
$
|
(224.9
|
)
|
|
$
|
(269.5
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
(704.7
|
)
|
|
$
|
(800.4
|
)
|
|
$
|
0.3
|
|
The effects of cash flow hedging:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain (loss) on cash flow hedging relationships:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Amount of gain (loss) reclassified from accumulated OCI into income
|
$
|
(4.6
|
)
|
|
$
|
(0.4
|
)
|
|
$
|
—
|
|
|
$
|
(18.8
|
)
|
|
$
|
(2.5
|
)
|
|
$
|
—
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Cost of sales
|
$
|
2.7
|
|
|
$
|
2.4
|
|
|
$
|
8.5
|
|
|
$
|
7.0
|
|
Selling, general, and administrative expenses
|
11.9
|
|
|
10.3
|
|
|
36.4
|
|
|
30.5
|
|
||||
Research and development expenses
|
2.8
|
|
|
3.1
|
|
|
10.1
|
|
|
8.8
|
|
||||
Total stock-based compensation expense
|
$
|
17.4
|
|
|
$
|
15.8
|
|
|
$
|
55.0
|
|
|
$
|
46.3
|
|
Option Awards
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Average risk-free interest rate
|
2.8
|
%
|
|
1.8
|
%
|
|
2.9
|
%
|
|
1.8
|
%
|
||||
Expected dividend yield
|
None
|
|
|
None
|
|
|
None
|
|
|
None
|
|
||||
Expected volatility
|
29.2
|
%
|
|
33.2
|
%
|
|
29.1
|
%
|
|
33.0
|
%
|
||||
Expected term (years)
|
5.2
|
|
|
4.7
|
|
|
5.0
|
|
|
4.6
|
|
||||
Fair value, per option
|
$
|
46.37
|
|
|
$
|
36.26
|
|
|
$
|
42.44
|
|
|
$
|
33.74
|
|
ESPP
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Average risk-free interest rate
|
1.2
|
%
|
|
0.7
|
%
|
|
0.9
|
%
|
|
0.5
|
%
|
||||
Expected dividend yield
|
None
|
|
|
None
|
|
|
None
|
|
|
None
|
|
||||
Expected volatility
|
34.3
|
%
|
|
34.3
|
%
|
|
32.8
|
%
|
|
33.1
|
%
|
||||
Expected term (years)
|
0.7
|
|
|
0.7
|
|
|
0.6
|
|
|
0.6
|
|
||||
Fair value, per share
|
$
|
46.58
|
|
|
$
|
29.15
|
|
|
$
|
36.53
|
|
|
$
|
25.69
|
|
|
Foreign
Currency
Translation
Adjustments
|
|
Unrealized (Loss) Gain on Cash Flow Hedges
|
|
Unrealized Loss on Available-for-sale Investments
|
|
Unrealized
Pension
Costs
|
|
Total
Accumulated
Other
Comprehensive
Loss
|
||||||||||
December 31, 2017
|
$
|
(100.1
|
)
|
|
$
|
(13.9
|
)
|
|
$
|
(4.6
|
)
|
|
$
|
(14.1
|
)
|
|
$
|
(132.7
|
)
|
Other comprehensive (loss) gain before reclassifications
|
(35.8
|
)
|
|
28.2
|
|
|
(3.5
|
)
|
|
(0.2
|
)
|
|
(11.3
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
21.3
|
|
|
2.9
|
|
|
0.6
|
|
|
24.8
|
|
|||||
Deferred income tax benefit
|
(4.0
|
)
|
|
(15.5
|
)
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|
(19.8
|
)
|
|||||
September 30, 2018
|
$
|
(139.9
|
)
|
|
$
|
20.1
|
|
|
$
|
(5.4
|
)
|
|
$
|
(13.8
|
)
|
|
$
|
(139.0
|
)
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
||||||||||||
|
Affected Line on Consolidated Condensed
Statements of Operations
|
||||||||||||||||
Details about Accumulated Other
Comprehensive Loss Components
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|||||||||
(Loss) gain on cash flow hedges
|
$
|
(4.6
|
)
|
|
$
|
3.1
|
|
|
$
|
(18.8
|
)
|
|
$
|
7.8
|
|
|
Cost of sales
|
|
(0.4
|
)
|
|
(0.4
|
)
|
|
(2.5
|
)
|
|
(0.2
|
)
|
|
Selling, general, and administrative expenses
|
||||
|
(5.0
|
)
|
|
2.7
|
|
|
(21.3
|
)
|
|
7.6
|
|
|
Total before tax
|
||||
|
1.1
|
|
|
(1.2
|
)
|
|
5.1
|
|
|
(3.0
|
)
|
|
Provision for income taxes
|
||||
|
$
|
(3.9
|
)
|
|
$
|
1.5
|
|
|
$
|
(16.2
|
)
|
|
$
|
4.6
|
|
|
Net of tax
|
Loss on available-for-sale investments
|
$
|
(0.6
|
)
|
|
$
|
(1.1
|
)
|
|
$
|
(2.9
|
)
|
|
$
|
(1.9
|
)
|
|
Other (income) expense, net
|
|
—
|
|
|
0.1
|
|
|
0.2
|
|
|
0.1
|
|
|
Provision for income taxes
|
||||
|
$
|
(0.6
|
)
|
|
$
|
(1.0
|
)
|
|
$
|
(2.7
|
)
|
|
$
|
(1.8
|
)
|
|
Net of tax
|
Unrealized pension costs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.6
|
)
|
|
$
|
—
|
|
|
Other (income) expense, net
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
Provision for income taxes
|
||||
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.5
|
)
|
|
$
|
—
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
225.9
|
|
|
$
|
170.1
|
|
|
$
|
715.2
|
|
|
$
|
586.4
|
|
Weighted-average shares outstanding
|
209.0
|
|
|
211.3
|
|
|
209.5
|
|
|
211.0
|
|
||||
Basic earnings per share
|
$
|
1.08
|
|
|
$
|
0.81
|
|
|
$
|
3.41
|
|
|
$
|
2.78
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
225.9
|
|
|
$
|
170.1
|
|
|
$
|
715.2
|
|
|
$
|
586.4
|
|
Weighted-average shares outstanding
|
209.0
|
|
|
211.3
|
|
|
209.5
|
|
|
211.0
|
|
||||
Dilutive effect of stock plans
|
4.2
|
|
|
4.9
|
|
|
4.6
|
|
|
5.1
|
|
||||
Dilutive weighted-average shares outstanding
|
213.2
|
|
|
216.2
|
|
|
214.1
|
|
|
216.1
|
|
||||
Diluted earnings per share
|
$
|
1.06
|
|
|
$
|
0.79
|
|
|
$
|
3.34
|
|
|
$
|
2.71
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Segment Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
$
|
518.5
|
|
|
$
|
470.4
|
|
|
$
|
1,510.2
|
|
|
$
|
1,413.9
|
|
Europe
|
191.6
|
|
|
167.8
|
|
|
608.1
|
|
|
614.3
|
|
||||
Japan
|
95.4
|
|
|
84.0
|
|
|
288.4
|
|
|
257.1
|
|
||||
Rest of World
|
96.8
|
|
|
87.1
|
|
|
290.2
|
|
|
261.4
|
|
||||
Total segment net sales
|
$
|
902.3
|
|
|
$
|
809.3
|
|
|
$
|
2,696.9
|
|
|
$
|
2,546.7
|
|
Segment Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
$
|
353.0
|
|
|
$
|
303.2
|
|
|
$
|
1,010.5
|
|
|
$
|
921.4
|
|
Europe
|
90.9
|
|
|
75.3
|
|
|
295.6
|
|
|
306.9
|
|
||||
Japan
|
55.0
|
|
|
46.4
|
|
|
171.8
|
|
|
145.2
|
|
||||
Rest of World
|
28.3
|
|
|
24.7
|
|
|
89.6
|
|
|
77.4
|
|
||||
Total segment operating income
|
$
|
527.2
|
|
|
$
|
449.6
|
|
|
$
|
1,567.5
|
|
|
$
|
1,450.9
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net Sales Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment net sales
|
$
|
902.3
|
|
|
$
|
809.3
|
|
|
$
|
2,696.9
|
|
|
$
|
2,546.7
|
|
Foreign currency
|
4.3
|
|
|
12.2
|
|
|
48.2
|
|
|
0.1
|
|
||||
Consolidated net sales
|
$
|
906.6
|
|
|
$
|
821.5
|
|
|
$
|
2,745.1
|
|
|
$
|
2,546.8
|
|
Pre-tax Income Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment operating income
|
$
|
527.2
|
|
|
$
|
449.6
|
|
|
$
|
1,567.5
|
|
|
$
|
1,450.9
|
|
Unallocated amounts:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate items
|
(274.6
|
)
|
|
(216.6
|
)
|
|
(800.3
|
)
|
|
(658.8
|
)
|
||||
Special charges (Note 4)
|
—
|
|
|
(9.7
|
)
|
|
—
|
|
|
(9.7
|
)
|
||||
Intellectual property litigation expenses
|
(7.9
|
)
|
|
(13.7
|
)
|
|
(19.1
|
)
|
|
(31.6
|
)
|
||||
Foreign currency
|
4.2
|
|
|
4.4
|
|
|
5.4
|
|
|
2.5
|
|
||||
Consolidated operating income
|
248.9
|
|
|
214.0
|
|
|
753.5
|
|
|
753.3
|
|
||||
Non-operating (expense) income
|
(0.2
|
)
|
|
(2.2
|
)
|
|
9.7
|
|
|
(42.3
|
)
|
||||
Consolidated pre-tax income
|
$
|
248.7
|
|
|
$
|
211.8
|
|
|
$
|
763.2
|
|
|
$
|
711.0
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(in millions)
|
|
|
|
|
||||||||||
Net Sales by Geographic Area
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States
|
$
|
518.7
|
|
|
$
|
470.4
|
|
|
$
|
1,510.3
|
|
|
$
|
1,413.9
|
|
Europe
|
201.3
|
|
|
182.3
|
|
|
659.3
|
|
|
627.0
|
|
||||
Japan
|
94.2
|
|
|
83.2
|
|
|
289.5
|
|
|
253.0
|
|
||||
Rest of World
|
92.4
|
|
|
85.6
|
|
|
286.0
|
|
|
252.9
|
|
||||
|
$
|
906.6
|
|
|
$
|
821.5
|
|
|
$
|
2,745.1
|
|
|
$
|
2,546.8
|
|
Net Sales by Major Product and Service Area
|
|
|
|
|
|
|
|
|
|
|
|
||||
Transcatheter Heart Valve Therapy
|
$
|
557.8
|
|
|
$
|
481.2
|
|
|
$
|
1,694.3
|
|
|
$
|
1,507.9
|
|
Surgical Heart Valve Therapy
|
184.6
|
|
|
195.6
|
|
|
554.4
|
|
|
602.2
|
|
||||
Critical Care
|
164.2
|
|
|
144.7
|
|
|
496.4
|
|
|
436.7
|
|
||||
|
$
|
906.6
|
|
|
$
|
821.5
|
|
|
$
|
2,745.1
|
|
|
$
|
2,546.8
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||
|
(in millions)
|
||||||
Long-lived Tangible Assets by Geographic Area
|
|
|
|
|
|
||
United States
|
$
|
617.6
|
|
|
$
|
608.7
|
|
Europe
|
33.2
|
|
|
28.4
|
|
||
Japan
|
6.9
|
|
|
7.6
|
|
||
Rest of World
|
198.9
|
|
|
139.7
|
|
||
|
$
|
856.6
|
|
|
$
|
784.4
|
|
|
Three Months Ended
September 30, |
|
|
|
|
|
Nine Months Ended
September 30, |
|
|
|
|
||||||||||||||||||
|
|
|
Percent Change
|
|
|
|
Percent Change
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
|
|||||||||||||||||
United States
|
$
|
518.7
|
|
|
$
|
470.4
|
|
|
$
|
48.3
|
|
|
10.2
|
%
|
|
$
|
1,510.3
|
|
|
$
|
1,413.9
|
|
|
$
|
96.4
|
|
|
6.8
|
%
|
Europe
|
201.3
|
|
|
182.3
|
|
|
19.0
|
|
|
10.5
|
%
|
|
659.3
|
|
|
627.0
|
|
|
32.3
|
|
|
5.2
|
%
|
||||||
Japan
|
94.2
|
|
|
83.2
|
|
|
11.0
|
|
|
13.3
|
%
|
|
289.5
|
|
|
253.0
|
|
|
36.5
|
|
|
14.5
|
%
|
||||||
Rest of World
|
92.4
|
|
|
85.6
|
|
|
6.8
|
|
|
8.0
|
%
|
|
286.0
|
|
|
252.9
|
|
|
33.1
|
|
|
13.1
|
%
|
||||||
International
|
387.9
|
|
|
351.1
|
|
|
36.8
|
|
|
10.5
|
%
|
|
1,234.8
|
|
|
1,132.9
|
|
|
101.9
|
|
|
9.0
|
%
|
||||||
Total net sales
|
$
|
906.6
|
|
|
$
|
821.5
|
|
|
$
|
85.1
|
|
|
10.4
|
%
|
|
$
|
2,745.1
|
|
|
$
|
2,546.8
|
|
|
$
|
198.3
|
|
|
7.8
|
%
|
|
Three Months Ended
September 30, |
|
|
|
|
|
Nine Months Ended
September 30, |
|
|
|
|
||||||||||||||||||
|
|
|
Percent Change
|
|
|
|
Percent Change
|
||||||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
|
|||||||||||||||||
Transcatheter Heart Valve Therapy
|
$
|
557.8
|
|
|
$
|
481.2
|
|
|
$
|
76.6
|
|
|
15.9
|
%
|
|
$
|
1,694.3
|
|
|
$
|
1,507.9
|
|
|
$
|
186.4
|
|
|
12.4
|
%
|
Surgical Heart Valve Therapy
|
184.6
|
|
|
195.6
|
|
|
(11.0
|
)
|
|
(5.6
|
)%
|
|
554.4
|
|
|
602.2
|
|
|
(47.8
|
)
|
|
(7.9
|
)%
|
||||||
Critical Care
|
164.2
|
|
|
144.7
|
|
|
19.5
|
|
|
13.5
|
%
|
|
496.4
|
|
|
436.7
|
|
|
59.7
|
|
|
13.7
|
%
|
||||||
Total net sales
|
$
|
906.6
|
|
|
$
|
821.5
|
|
|
$
|
85.1
|
|
|
10.4
|
%
|
|
$
|
2,745.1
|
|
|
$
|
2,546.8
|
|
|
$
|
198.3
|
|
|
7.8
|
%
|
•
|
higher sales of the
Edwards SAPIEN 3
valve across all regions, particularly the United States and Japan, driven by strong therapy adoption; and
|
•
|
foreign currency exchange rate fluctuations, which increased net sales for the
nine months ended September 30, 2018
by
$27.6 million
, due primarily to the strengthening of the Euro against the United States dollar.
|
•
|
sales return reserves in the United States related to our conversion to a consignment inventory model for surgical valves;
|
•
|
foreign currency exchange rate fluctuations, which increased net sales for the
nine months ended September 30, 2018
by
$13.1 million
, due primarily to the strengthening of the Euro against the United States dollar; and
|
•
|
increased sales of surgical aortic tissue valves in the United States, primarily the
EDWARDS INTUITY Elite Valve System
.
|
•
|
a 0.7 percentage point decrease due to the impact of foreign currency exchange rate fluctuations, including the settlement of foreign currency hedging contracts; and
|
•
|
expenses associated with the closure of our manufacturing plant in Switzerland, and multiple investments in our operations, including an increase in costs to improve our manufacturing processes;
|
•
|
a 0.8 percentage point increase in the United States due to an improved product mix, driven by THVT products.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Foreign exchange (gains) losses, net
|
$
|
(0.6
|
)
|
|
$
|
0.8
|
|
|
$
|
(4.9
|
)
|
|
$
|
4.8
|
|
Loss on investments
|
—
|
|
|
0.9
|
|
|
2.1
|
|
|
1.8
|
|
||||
Other
|
0.3
|
|
|
(0.1
|
)
|
|
0.5
|
|
|
0.1
|
|
||||
Other (income) expense, net
|
$
|
(0.3
|
)
|
|
$
|
1.6
|
|
|
$
|
(2.3
|
)
|
|
$
|
6.7
|
|
Period
|
|
|
|
Total Number
of Shares
(or Units)
Purchased (a)
|
|
Average
Price Paid
per Share
(or Unit)
|
|
Total Number of
Shares (or Units)
Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number
(or Approximate
Dollar Value) of
Shares that
May Yet Be
Purchased
Under the Plans
or Programs
(in millions) (b)
|
|
||||||
July 1, 2018 through July 31, 2018
|
|
300,925
|
|
|
$
|
142.44
|
|
|
296,951
|
|
|
$
|
858.6
|
|
|
||
August 1, 2018 through August 31, 2018
|
|
602,551
|
|
|
141.07
|
|
|
602,551
|
|
|
773.6
|
|
|
||||
September 1, 2018 through September 30, 2018
|
|
53,840
|
|
|
140.15
|
|
|
50,446
|
|
|
766.5
|
|
|
||||
Total
|
|
957,316
|
|
|
141.44
|
|
|
949,948
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
The difference between the total number of shares (or units) purchased and the total number of shares (or units) purchased as part of publicly announced plans or programs is due to shares withheld by us to satisfy tax withholding obligations in connection with the vesting of restricted stock units issued to employees.
|
(b)
|
On November 15, 2017, the Board of Directors approved a stock repurchase program authorizing us to purchase on the open market, including pursuant to a Rule 10b5-1 plan and in privately negotiated transactions, up to $1.0 billion of our common stock.
|
|
|
EDWARDS LIFESCIENCES CORPORATION
|
|
|
|
(Registrant)
|
|
Date:
|
October 26, 2018
|
By:
|
/s/ SCOTT B. ULLEM
|
|
|
|
Scott B. Ullem
Chief Financial Officer
(Principal Financial Officer)
|
Date:
|
October 26, 2018
|
By:
|
/s/ ROBERT W.A. SELLERS
|
|
|
|
Robert W.A. Sellers
Corporate Controller
(Principal Accounting Officer)
|
Exhibit No.
|
|
Description
|
|
|
10.1
|
|
|
||
31.1
|
|
|
||
31.2
|
|
|
||
32
|
|
|
||
101
|
|
|
The following financial statements from Edwards Lifesciences' Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Condensed Balance Sheets, (ii) the Consolidated Condensed Statements of Operations, (iii) the Consolidated Condensed Statements of Comprehensive Income, (iv) the Consolidated Condensed Statements of Cash Flows, and (v) Notes to Consolidated Condensed Financial Statements
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|
No information found
Customers
Customer name | Ticker |
---|---|
Tenet Healthcare Corporation | THC |
No Suppliers Found
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|