XML 28 R13.htm IDEA: XBRL DOCUMENT
v3.22.4

Revenue (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2022
Revenue from Contract with Customer [Abstract] |
Revenue from Contract with Customer [Text Block] | REVENUE Revenue Recognition Following the acquisition of Smiths Medical our primary product lines are Infusion Consumables, Infusion Systems, IV Solutions, Critical Care, Infusion Systems-Smiths Medical, Vascular Access-Smiths Medical and Vital Care-Smiths Medical. The vast majority of our sales of these products are made on a stand-alone basis to hospitals and distributors. Revenue is typically recognized upon transfer of control of the products, which we deem to be at point of shipment. However, for purposes of revenue recognition for our software licenses and renewals, we consider the control of these products to be transferred to a customer at a certain point in time; therefore, we recognize revenue at the start of the applicable license term. Payment is typically due in full within 30 days of delivery or the start of the contract term. Revenue is recorded in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. We offer certain volume-based rebates to both our distribution and end customers, which we record as variable consideration when calculating the transaction price. Rebates are offered on both a fixed and tiered/variable basis. In both cases, we use information available at the time and our historical experience with each customer to estimate the most likely rebate amount. We also provide chargebacks to distributors that sell to end customers at prices determined under a contract between us and the end customer. Chargebacks are the difference between the prices we charge our distribution customers and the contracted prices we have with the end customer which are processed as credits to our distribution customers. In estimating the expected value of chargeback amounts in order to determine the transaction price, we use information available at the time, including our historical experience. We also warrant products against defects and have a policy permitting the return of defective products, for which we accrue and expense at the time of sale using information available at that time and our historical experience. We also provide for extended service-type warranties, which we consider to be separate performance obligations. We allocate a portion of the transaction price to the extended service-type warranty based on its estimated relative selling price, and recognize revenue over the period the warranty service is provided. Our revenues are recorded at the net sales price, which includes an estimate for variable consideration related to rebates, chargebacks and product returns. Arrangements with Multiple Performance Obligations We also enter into arrangements which include multiple performance obligations, (see Note 1: Basis of Presentation and Summary of Significant Accounting Policies). The most significant judgments related to these arrangements include: •Identifying the various performance obligations of these arrangements. •Estimating the relative standalone selling price of each performance obligation, typically using a directly observable method or calculated on a cost plus margin basis method. Revenue disaggregated The following table represents our revenues disaggregated by product line (in thousands) and our disaggregated product line revenue as a percentage of total revenue:
| Year ended December 31,
| 2022 |  | 2021 |  | 2020
Product line | Revenue |  | % of Revenue |  | Revenue |  | % of Revenue |  | Revenue |  | % of Revenue
Infusion Consumables | $ | 566,617 |  |  | 25 | % |  | $ | 555,189 |  |  | 42 | % |  | $ | 473,740 |  |  | 37 | %
Infusion Systems | 351,080 |  |  | 15 | % |  | 352,321 |  |  | 27 | % |  | 359,691 |  |  | 28 | %
IV Solutions | 363,472 |  |  | 16 | % |  | 359,477 |  |  | 27 | % |  | 388,971 |  |  | 31 | %
Critical Care | 47,330 |  |  | 2 | % |  | 49,321 |  |  | 4 | % |  | 48,602 |  |  | 4 | %
Infusion Systems-Smiths Medical | 340,124 |  |  | 15 | % |  | — |  |  | nm |  | — |  |  | nm
Vascular Access-Smiths Medical | 326,765 |  |  | 14 | % |  | — |  |  | nm |  | — |  |  | nm
Vital Care-Smiths Medical | 284,609 |  |  | 13 | % |  | — |  |  | nm |  | — |  |  | nm
Total Revenues | $ | 2,279,997 |  |  | 100 | % |  | $ | 1,316,308 |  |  | 100 | % |  | $ | 1,271,004 |  |  | 100 | %
We report revenue on a "where sold" basis, which reflects the revenue within the country or region in which the ultimate sale is made to our external customer. The following table represents our revenues disaggregated by geography (in thousands):
| Year ended December 31,
Geography | 2022 |  | 2021 |  | 2020
United States | $ | 1,460,069 |  |  | $ | 941,809 |  |  | $ | 910,627 |
Europe, the Middle East and Africa | 367,411 |  |  | 147,488 |  |  | 132,763 |
APAC | 257,208 |  |  | 85,692 |  |  | 79,610 |
Other Foreign | 195,309 |  |  | 141,319 |  |  | 148,004 |
Total Revenues | $ | 2,279,997 |  |  | $ | 1,316,308 |  |  | $ | 1,271,004 |
Domestic sales accounted for 64%, 72% and 72% of total revenue in 2022, 2021 and 2020, respectively. International sales accounted for 36%, 28% and 28% of total revenue in 2022, 2021 and 2020, respectively. Contract balances Our contract balances (deferred revenue) are recorded in accrued liabilities and other long-term liabilities in our consolidated balance sheet (see Note 10: Accrued Liabilities and Other Long-term Liabilities). The following table presents the changes in our contract balances for the years ended December 31, 2022 and 2021, (in thousands):
| Contract Liabilities
Beginning balance, January 1, 2021 | $ | (6,430) |
Equipment revenue recognized | 10,048 |
Equipment revenue deferred due to implementation | (13,725) |
Software revenue recognized | 7,261 |
Software revenue deferred due to implementation | (4,615) |
Ending balance, December 31, 2021 | (7,461) |
Fair value of acquired deferred revenue | (51,245) |
Equipment revenue recognized | 32,252 |
Equipment revenue deferred due to implementation | (20,332) |
Software revenue recognized | 16,277 |
Software revenue deferred due to implementation | (17,557) |
Government grant deferred revenue | (3,729) |
Government grant recognized | 1,514 |
Other deferred revenue | (1,500) |
Other deferred revenue recognized | 5,915 |
Ending balance, December 31, 2022 | $ | (45,866) |
During 2022, we recognized $7.5 million in revenue that was included in the opening contract balances as of December 31, 2021. As of December 31, 2022, revenue from remaining performance obligations is as follows:
| Recognition Timing
(in thousands) | <12 Months |  | > 12 Months
Equipment revenue | $ | (15,144) |  |  | $ | (982) |
Software revenue | (8,277) |  |  | (1,026) |
Government grant revenue | (1,422) |  |  | (12,797) |
Other deferred revenue* | (4,784) |  |  | (1,434) |
Total | $ | (29,627) |  |  | $ | (16,239) |
____________________________ *Other deferred revenue includes pump development programs, purchased training and extended warranty. Costs to Obtain a Contract with a Customer As part of the cost to obtain a contract, we may pay incremental commissions to sales employees upon entering into a sales contract. Under ASC Topic 606, we have elected to expense these costs as incurred as the period of benefit is less than one year. Practical expedients and exemptions In addition to the practical expedient applied to sales commissions, under ASC Topic 606, we elected to apply the practical expedient for shipping and handling costs incurred after the customer has obtained control of a good. We will continue to treat these costs as a fulfillment cost rather than as an additional promised service.

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration