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Nature of Operations | 12 Months Ended
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Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Nature of Operations | Note 1. Nature of Operations Description of the Business LivaNova PLC, headquartered in London, (collectively with its subsidiaries, the “Company,” “LivaNova,” “we” or “our”) is a global medical device company focused on the development and delivery of important products and therapies for the benefit of patients, healthcare professionals and healthcare systems throughout the world. We design, develop, manufacture and sell innovative products and therapies that are consistent with our mission to provide hope to patients through innovative medical technologies, delivering life-changing improvements for both the Head and Heart. We are a public limited company organized under the laws of England and Wales, and headquartered in London, England. Business Segments LivaNova is comprised of three reportable segments: Cardiopulmonary, Neuromodulation and Advanced Circulatory Support, corresponding to our primary business units. Other includes the results of our Heart Valves business, which was disposed of on June 1, 2021, and corporate shared service expenses for finance, legal, human resources, information technology and corporate business development. Effective in the fourth quarter of 2021, LivaNova changed its reportable segments corresponding to changes in how the Company’s chief operating decision maker regularly reviews information, allocates resources and assesses performance. The segment financial information presented herein reflects these changes for all periods presented. The Company’s changes to its reportable segments are summarized as follows: •The Company’s Advanced Circulatory Support business is no longer assessed as part of the Company’s previously reported Cardiovascular reportable segment and is evaluated independently as its own reportable segment. •The Company’s Cardiopulmonary business is no longer assessed as part of the Company’s previously reported Cardiovascular reportable segment and is evaluated independently as its own reportable segment. •The Company’s Heart Valves business, which was disposed of on June 1, 2021, is now included within Other. Recent Developments Regarding COVID-19 Since early 2020, the COVID-19 pandemic (“COVID-19”) has caused and may continue to cause unpredictable demand for our products. Throughout the pandemic, healthcare customers have diverted medical resources and priorities towards the treatment of COVID-19, and public health bodies have delayed elective procedures, which has negatively impacted the usage of our products. Further, some people have avoided seeking treatment for non-COVID-19 procedures and hospitals and clinics have experienced staffing shortages, which has negatively impacted the demand for our products. While we have seen improvement during 2021, we continue to experience lingering COVID-19 related headwinds and are monitoring the potential for various strains of the virus to cause a resumption of high levels of infection and hospitalization, that in turn, may affect the demand for our products. Revision of Previously Issued Financial Statements During the fourth quarter of 2021, the Company identified and corrected an error related to foreign currency exchange rates utilized to calculate inventory and cost of sales for the years ended December 31, 2017 through 2020 and the nine months ended September 30, 2021. Using the guidance in ASC Topic 250, Accounting Changes and Error Corrections, ASC Topic 250-S99-1, Assessing Materiality, and ASC Topic 250-S99-2, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, we evaluated whether our previously issued consolidated financial statements were materially misstated due to these errors. Based upon our evaluation of both quantitative and qualitative factors, we believe that the effects of these errors were not material individually or in the aggregate to any previously reported quarterly or annual period. Accordingly, we have revised our previously issued financial statements as shown in Note 21 and below (in thousands): Consolidated Statements of Income (Loss)
|  | Year Ended December 31, 2020 |  | Year Ended December 31, 2019
|  | As Previously Reported |  | Adjustments |  | As Revised |  | As Previously Reported |  | Adjustments |  | As Revised
Cost of sales - exclusive of amortization |  | $ | 308,062 |  |  | $ | 4,035 |  |  | $ | 312,097 |  |  | $ | 323,517 |  |  | $ | 2,684 |  |  | $ | 326,201 |
Operating loss from continuing operations |  | (269,864) |  |  | (4,035) |  |  | (273,899) |  |  | (168,870) |  |  | (2,684) |  |  | (171,554) |
Loss from continuing operations before tax |  | (343,987) |  |  | (4,035) |  |  | (348,022) |  |  | (185,694) |  |  | (2,684) |  |  | (188,378) |
Income tax benefit |  | (736) |  |  | (224) |  |  | (960) |  |  | (30,153) |  |  | (221) |  |  | (30,374) |
Net loss from continuing operations |  | (343,515) |  |  | (3,811) |  |  | (347,326) |  |  | (155,541) |  |  | (2,463) |  |  | (158,004) |
Net loss |  | (345,008) |  |  | (3,811) |  |  | (348,819) |  |  | (155,176) |  |  | (2,463) |  |  | (157,639) |
Basic and diluted loss per share: |  |  |  |  |  |  |  |  |  |  |  |
Continuing operations |  | $ | (7.07) |  |  | $ | (0.08) |  |  | $ | (7.15) |  |  | $ | (3.22) |  |  | $ | (0.05) |  |  | $ | (3.27) |
Discontinued operations |  | (0.03) |  |  | — |  |  | (0.03) |  |  | 0.01 |  |  | — |  |  | 0.01 |
|  | $ | (7.10) |  |  | $ | (0.08) |  |  | $ | (7.18) |  |  | $ | (3.21) |  |  | $ | (0.05) |  |  | $ | (3.26) |
Consolidated Statements of Comprehensive Income (Loss)
|  | Year Ended December 31, 2020 |  | Year Ended December 31, 2019
|  | As Previously Reported |  | Adjustments |  | As Revised |  | As Previously Reported |  | Adjustments |  | As Revised
Net loss |  | $ | (345,008) |  |  | $ | (3,811) |  |  | $ | (348,819) |  |  | $ | (155,176) |  |  | $ | (2,463) |  |  | $ | (157,639) |
Total comprehensive loss |  | (297,807) |  |  | (3,811) |  |  | (301,618) |  |  | (150,092) |  |  | (2,463) |  |  | (152,555) |
Consolidated Balance Sheet
|  | December 31, 2020
|  | As Previously Reported |  | Adjustments |  | As Revised
Inventories |  | $ | 126,675 |  |  | $ | (11,390) |  |  | $ | 115,285 |
Total Current Assets |  | 719,434 |  |  | (11,390) |  |  | 708,044 |
Total Assets |  | 2,411,351 |  |  | (11,390) |  |  | 2,399,961 |
Deferred tax liabilities |  | 8,915 |  |  | (1,826) |  |  | 7,089 |
Total Liabilities |  | 1,292,522 |  |  | (1,826) |  |  | 1,290,696 |
Accumulated deficit |  | (752,402) |  |  | (9,564) |  |  | (761,966) |
Total Stockholders’ Equity |  | 1,118,829 |  |  | (9,564) |  |  | 1,109,265 |
Total Liabilities and Stockholders’ Equity |  | 2,411,351 |  |  | (11,390) |  |  | 2,399,961 |
Consolidated Statements of Stockholders’ Equity
|  | As Previously Reported |  | Adjustments |  | As Revised
|  | Accumulated Deficit |  | Total Stockholders’ Equity |  | Accumulated Deficit |  | Total Stockholders’ Equity |  | Accumulated Deficit |  | Total Stockholders’ Equity
December 31, 2018 |  | $ | (251,579) |  |  | $ | 1,503,738 |  |  | $ | (3,290) |  |  | $ | (3,290) |  |  | $ | (254,869) |  |  | $ | 1,500,448 |
Net loss |  | (155,176) |  |  | (155,176) |  |  | (2,463) |  |  | (2,463) |  |  | (157,639) |  |  | (157,639) |
December 31, 2019 |  | (406,755) |  |  | 1,383,717 |  |  | (5,753) |  |  | (5,753) |  |  | (412,508) |  |  | 1,377,964 |
Net loss |  | (345,008) |  |  | (345,008) |  |  | (3,811) |  |  | (3,811) |  |  | (348,819) |  |  | (348,819) |
December 31, 2020 |  | (752,402) |  |  | 1,118,829 |  |  | (9,564) |  |  | (9,564) |  |  | (761,966) |  |  | 1,109,265 |
Consolidated Statements of Cash Flows
|  | Year Ended December 31, 2020 |  | Year Ended December 31, 2019
|  | As Previously Reported |  | Adjustments |  | As Revised |  | As Previously Reported |  | Adjustments |  | As Revised
Net loss |  | $ | (345,008) |  |  | $ | (3,811) |  |  | $ | (348,819) |  |  | $ | (155,176) |  |  | $ | (2,463) |  |  | $ | (157,639) |
Deferred tax expense (benefit) |  | 37,292 |  |  | (224) |  |  | 37,068 |  |  | (26,277) |  |  | (221) |  |  | (26,498) |
Changes in operating assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Inventories |  | 1,403 |  |  | 4,035 |  |  | 5,438 |  |  | (10,608) |  |  | 2,684 |  |  | (7,924) |
Net cash used in operating activities |  | (79,422) |  |  | — |  |  | (79,422) |  |  | (91,142) |  |  | — |  |  | (91,142) |

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- Definition The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -URI http://asc.fasb.org/topic&trid=2122149 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -URI http://asc.fasb.org/topic&trid=2197479 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -URI http://asc.fasb.org/topic&trid=2134479 + Details
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