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Assets and Liabilities Held For Sale | 3 Months Ended
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Mar. 31, 2021
Discontinued Operations and Disposal Groups [Abstract] |
Assets and Liabilities Held For Sale | Note 2. Assets and Liabilities Held For Sale Heart Valves On December 2, 2020, LivaNova entered into a Share and Asset Purchase Agreement (“Purchase Agreement”) with Mitral Holdco S.à r.l. (the “Purchaser”), a company incorporated under the laws of Luxembourg and wholly owned and controlled by funds advised by Gyrus Capital S.A., a Swiss private equity firm. The Purchase Agreement provides for the divestiture of certain of LivaNova’s subsidiaries as well as certain other assets and liabilities relating to the Company’s Heart Valve business and site management operations conducted by the Company’s subsidiary LivaNova Site Management S.r.l. (“LSM”) at the Company’s Saluggia campus. The purchase price of €60.0 million (approximately $70.4 million as of March 31, 2021) will be payable in two tranches: €50.0 million (approximately $58.7 million as of March 31, 2021) payable at closing, subject to customary trade working capital and net indebtedness adjustments, as set forth in the Purchase Agreement, and an additional €10.0 million (approximately $11.7 million as of March 31, 2021) payable on December 30, 2022. On April 9, 2021, LivaNova and the Purchaser entered into an Amended and Restated Share and Asset Purchase Agreement (the “A&R Purchase Agreement”) which amends and restates the original Purchase Agreement to, among other things, defer the closing of the sale and purchase of LSM by up to two years and include or amend certain additional terms relating to such deferral, including certain amendments relating to the potential hazardous substances liabilities of LSM and the related expense reimbursement provisions. In addition, the A&R Purchase Agreement includes certain amendments relating to mechanics and timing for the initial closing of the transaction and subsequent closings of the local businesses. The initial closing of the transaction with respect to the heart valve business is expected to occur in the first half of 2021. As a result of entering into the Purchase Agreement, during the fourth quarter of 2020 the Company concluded that the assets and liabilities of the Heart Valve business being sold meet the criteria to be classified as held for sale. As a result, we recognized an impairment of $180.2 million during the fourth quarter of 2020 to record the Heart Valves disposal group at fair value less estimated cost to sell. During the first quarter of 2021 we increased the carrying value of the disposal group by $1.0 million. The major classes of assets and liabilities held for sale on the consolidated balance sheet as of March 31, 2021 and December 31, 2020 were as follows (in thousands):
|  | March 31, 2021 |  | December 31, 2020
Accounts receivable, net |  | $ | 20,280 |  |  | $ | 20,059 |
Inventories |  | 44,623 |  |  | 45,081 |
Prepaid and refundable taxes |  | 2,901 |  |  | 2,751 |
Prepaid expenses and other current assets |  | 2,488 |  |  | 2,436 |
Property, plant and equipment, net |  | 24,672 |  |  | 25,042 |
Intangible assets, net |  | 150,197 |  |  | 153,632 |
Deferred tax assets |  | — |  |  | — |
Operating lease assets |  | 1,508 |  |  | 1,698 |
Impairment charge of disposal group |  | (179,194) |  |  | (180,160) |
Total assets held for sale |  | $ | 67,475 |  |  | $ | 70,539 |
Accounts payable |  | $ | 7,492 |  |  | $ | 9,518 |
Accrued liabilities and other |  | 3,743 |  |  | 4,205 |
Taxes payable |  | 543 |  |  | 363 |
Accrued employee compensation and related benefits |  | 8,829 |  |  | 8,781 |
Deferred tax liabilities |  | 614 |  |  | 671 |
Long-term employee compensation and related benefits |  | 5,038 |  |  | 4,994 |
Long-term operating lease liabilities |  | 531 |  |  | 841 |
Other long-term liabilities |  | 328 |  |  | 306 |
Total liabilities held for sale |  | $ | 27,118 |  |  | $ | 29,679 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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