Supplemental Financial Information (Tables)

9 Months Ended

Sep. 30, 2017

Balance Sheet Related Disclosures [Abstract]

Accounts receivable, net, consisted of the following (in thousands):



	September 30, 2017			December 31, 2016
Trade receivables from third parties	$	326,498		$	285,336
Allowance for bad debt	(12,457		)	(9,606		)
	$	314,041		$	275,730

Inventories

Inventories consisted of the following (in thousands):



	September 30, 2017		December 31, 2016
Raw materials	$	51,628	$	47,704
Work-in-process	39,873		32,316
Finished goods	123,092		103,469
	$	214,593	$	183,489

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):



	September 30, 2017		December 31, 2016
Income taxes payable on inter-company transfers of property ⁽¹⁾	$	19,445	$	19,445
Deposits and advances to suppliers	7,298		5,417
Earthquake grant receivable	4,983		4,748
Unbilled receivables	4,363		—
Escrow deposit - Caisson	2,000		—
Current loans and notes receivable	1,553		7,093
Derivative contract assets	—		8,269
Other prepaid expenses	15,534		11,001
	$	55,176	$	55,973


(1)	The income taxes payable on intercompany transfers of property asset is the asset account created to defer the income tax effect of an intercompany intellectual property sale pursuant to ASC 810-10-45-8.

Other Long-term Assets

Other assets consisted of the following (in thousands):



	September 30, 2017		December 31, 2016
Income taxes payable on inter-company transfers of property ⁽¹⁾	$	109,971	$	124,551
Investments ⁽²⁾	2,316		2,537
Loans and notes receivable	1,964		2,029
Escrow deposit - Caisson	1,000		—
Guaranteed deposits	777		940
Other	1,827		641
	$	117,855	$	130,698


(1)	The income taxes payable on intercompany transfers of property asset is the asset account created to defer the income tax effect of an intercompany intellectual property sale pursuant to ASC 810-10-45-8.


(2)	Primarily cash surrender value of company owned life insurance policies.

Accrued Liabilities

Accrued liabilities and other consisted of the following (in thousands):



	September 30, 2017		December 31, 2016
Product remediation liability ⁽¹⁾	$	20,060	$	23,464
Deferred compensation - Caisson acquisition	14,137		—
Legal and other administrative costs	7,863		6,184
Provisions for agents, returns and other	8,505		7,271
Restructuring related liabilities	5,098		16,859
Product warranty obligations	1,747		2,736
Royalty costs	2,048		2,503
Escrow indemnity liability - Caisson	2,000		—
Deferred income	4,752		—
Government grants	1,275		1,708
Derivative contract liabilities ⁽²⁾	3,055		942
Research and development costs	1,173		839
Other	20,499		13,061
	$	92,212	$	75,567


(1)	Refer to “Note 4. Product Remediation Liability.”


(2)	Refer to “Note 8. Derivatives and Risk Management.”

Other Long-term Liabilities

Other long-term liabilities consisted of the following (in thousands):



	September 30, 2017		December 31, 2016
Contingent consideration ⁽¹⁾	$	34,217	$	3,890
Uncertain tax positions	12,349		11,108
Product remediation liability ⁽²⁾	10,186		10,023
Government grants	5,889		3,803
Derivative contract liabilities ⁽³⁾	932		1,392
Escrow indemnity liability - Caisson	1,000		—
Unfavorable operating leases ⁽⁴⁾	256		1,672
Other	9,575		7,599
	$	74,404	$	39,487

(1)

The contingent consideration liability represents contingent payments related to three acquisitions: the first and second acquisitions, in September 2015, were Cellplex PTY Ltd. in Australia and the commercial activities of a local distributor in Colombia. The contingent payments for the first acquisition are based on achievement of sales targets by the acquiree through June 30, 2018 and the contingent payments for the second acquisition are based on sales of cardiopulmonary disposable products and heart lung machines of the acquiree through December 2019. Refer to “Note 6. Fair Value Measurements.” The third acquisition, Caisson, occurred in May 2017. Refer to “Note 2. Acquisitions.”


(2)	Refer to “Note 4. Product Remediation Liability.”


(3)	Refer to “Note 8. Derivatives and Risk Management.”


(4)	Unfavorable operating leases represent the adjustment to recognize future lease obligations at their estimated fair value in conjunction with the Mergers.