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v3.25.3

Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2025
Fair Value Disclosures [Abstract] |
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis | The following tables present the level in the fair value hierarchy at which the Company’s assets and liabilities are measured on a recurring basis (in thousands):
|  | Balance Sheet Location |  | September 30, 2025 |  | Fair Value Measurements Using Inputs Considered as:
|  |  |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |  |  |  |  |
Derivative assets - capped call derivatives (2025 Notes) |  | Prepaid expenses and other current assets |  | $ | 1,627 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,627 |
Derivative assets - capped call derivatives (2029 Notes) |  | Long-term derivative assets |  | 28,011 |  |  | — |  |  | — |  |  | 28,011 |
|  |  |  | $ | 29,638 |  |  | $ | — |  |  | $ | — |  |  | $ | 29,638 |
Liabilities: |  |  |  |  |  |  |  |  |  |
Derivative liabilities - freestanding instruments (FX) |  | Accrued liabilities and other |  | $ | 203 |  |  | $ | — |  |  | $ | 203 |  |  | $ | — |
Derivative liabilities - embedded derivative (2025 Notes) |  | Accrued liabilities and other |  | 1,685 |  |  | — |  |  | — |  |  | 1,685 |
Derivative liabilities - embedded derivative (2029 Notes) |  | Long-term derivative liabilities |  | 64,515 |  |  | — |  |  | — |  |  | 64,515 |
ImThera contingent consideration arrangement |  | Current contingent consideration |  | 49,041 |  |  | — |  |  | — |  |  | 49,041 |
ImThera contingent consideration arrangement |  | Long-term contingent consideration |  | 40,641 |  |  | — |  |  | — |  |  | 40,641 |
|  |  |  | $ | 156,085 |  |  | $ | — |  |  | $ | 203 |  |  | $ | 155,882 |
|  | Balance Sheet Location |  | December 31, 2024 |  | Fair Value Measurements Using Inputs Considered as:
|  |  |  | Level 1 |  | Level 2 |  | Level 3
Assets |  |  |  |  |  |  |  |  |  |
Derivative assets - freestanding instruments (FX) |  | Prepaid expenses and other current assets |  | $ | 738 |  |  | $ | — |  |  | $ | 738 |  |  | $ | — |
Derivative assets - capped call derivatives (2025 Notes) |  | Prepaid expenses and other current assets |  | 2,624 |  |  | — |  |  | — |  |  | 2,624 |
Derivative assets - capped call derivatives (2029 Notes) |  | Long-term derivative assets |  | 23,735 |  |  | — |  |  | — |  |  | 23,735 |
Investment with readily determinable fair value |  | Investments |  | 10,144 |  |  | 10,144 |  |  | — |  |  | — |
|  |  |  | $ | 37,241 |  |  | $ | 10,144 |  |  | $ | 738 |  |  | $ | 26,359 |
Liabilities |  |  |  |  |  |  |  |  |  |
Derivative liabilities - embedded derivative (2025 Notes) |  | Accrued liabilities and other |  | $ | 2,915 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,915 |
Derivative liabilities - embedded derivative (2029 Notes) |  | Long-term derivative liabilities |  | 51,819 |  |  | — |  |  | — |  |  | 51,819 |
ImThera contingent consideration arrangement |  | Long-term contingent consideration |  | 84,218 |  |  | — |  |  | — |  |  | 84,218 |
|  |  |  | $ | 138,952 |  |  | $ | — |  |  | $ | — |  |  | $ | 138,952 |
Schedule of Recurring Fair Value Measurements Using Significant Unobservable Inputs | The tables below present reconciliations of recurring fair value measurements that use significant unobservable inputs (Level 3) as of and for the three and nine months ended September 30, 2025 and 2024 (in thousands):
|  | Capped Call Derivative Assets (2025 Notes) |  | Capped Call Derivative Assets (2029 Notes) |  | Embedded Derivative Liability (2025 Notes) |  | Embedded Derivative Liability (2029 Notes) |  | ImThera Contingent Consideration Liability
June 30, 2025 |  | $ | 1,303 |  |  | $ | 21,658 |  |  | $ | 1,363 |  |  | $ | 48,093 |  |  | $ | 87,927 |
Changes in fair value |  | 324 |  |  | 6,353 |  |  | 322 |  |  | 16,422 |  |  | 1,755 |
September 30, 2025 |  | $ | 1,627 |  |  | $ | 28,011 |  |  | $ | 1,685 |  |  | $ | 64,515 |  |  | $ | 89,682 |
|  | Capped Call Derivative Assets (2025 Notes) |  | Capped Call Derivative Assets (2029 Notes) |  | Convertible Notes Receivable |  | Embedded Derivative Liability (2025 Notes) |  | Embedded Derivative Liability (2029 Notes) |  | Contingent Consideration Liability
June 30, 2024 |  | $ | 7,439 |  |  | $ | 32,114 |  |  | $ | 275 |  |  | $ | 10,017 |  |  | $ | 95,392 |  |  | $ | 81,174 |
Changes in fair value |  | (1,668) |  |  | (2,517) |  |  | (275) |  |  | (2,829) |  |  | (18,423) |  |  | 66 |
September 30, 2024 |  | $ | 5,771 |  |  | $ | 29,597 |  |  | $ | — |  |  | $ | 7,188 |  |  | $ | 76,969 |  |  | $ | 81,240 |
|  | Capped Call Derivative Assets (2025 Notes) |  | Capped Call Derivative Assets (2029 Notes) |  | Embedded Derivative Liability (2025 Notes) |  | Embedded Derivative Liability (2029 Notes) |  | ImThera Contingent Consideration Liability
December 31, 2024 |  | $ | 2,624 |  |  | $ | 23,735 |  |  | $ | 2,915 |  |  | $ | 51,819 |  |  | $ | 84,218 |
Changes in fair value |  | (997) |  |  | 4,276 |  |  | (1,230) |  |  | 12,696 |  |  | 5,464 |
September 30, 2025 |  | $ | 1,627 |  |  | $ | 28,011 |  |  | $ | 1,685 |  |  | $ | 64,515 |  |  | $ | 89,682 |
|  | Capped Call Derivative Assets (2025 Notes) |  | Capped Call Derivative Assets (2029 Notes) |  | Convertible Notes Receivable |  | Embedded Derivative Liability (2025 Notes) |  | Embedded Derivative Liability (2029 Notes) |  | Contingent Consideration Liability Arrangements
December 31, 2023 |  | $ | 38,496 |  |  | $ | — |  |  | $ | 275 |  |  | $ | 45,569 |  |  | $ | — |  |  | $ | 94,652 |
Additions |  | — |  |  | 31,637 |  |  | — |  |  | — |  |  | 87,457 |  |  | — |
Cash receipt |  | (22,524) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Payment |  | — |  |  | — |  |  | — |  |  | (36,915) |  |  | — |  |  | (13,750) |
Changes in fair value |  | (10,201) |  |  | (2,040) |  |  | (275) |  |  | (1,466) |  |  | (10,488) |  |  | 338 |
September 30, 2024 |  | $ | 5,771 |  |  | $ | 29,597 |  |  | $ | — |  |  | $ | 7,188 |  |  | $ | 76,969 |  |  | $ | 81,240 |
Schedule of Significant Unobservable Inputs Related to Contingent Consideration and Derivatives | The following table presents the stock price volatility utilized in determining the fair value of LivaNova’s capped call derivative assets and embedded derivative liabilities:
Stock Price Volatility (1) |  | Capped Call Derivative Assets (2025 Notes) |  | Capped Call Derivative Assets (2029 Notes) |  | Embedded Derivative Liability (2025 Notes) |  | Embedded Derivative Liability (2029 Notes)
September 30, 2025 |  | 46 | % |  | 39 | % |  | 46 | % |  | 39 | %
December 31, 2024 |  | 37 | % |  | 35 | % |  | 37 | % |  | 35 | %
(1) The embedded and capped call derivatives are classified as Level 3 because the Company uses historical volatility and implied volatility from actual options traded to determine expected stock price volatility, an unobservable input that is significant to the valuation. In general, an increase in LivaNova’s stock price or stock price volatility would increase the fair value of the embedded and capped call derivatives, which would result in an increase in net expense. As the remaining time to the expiration of the derivatives decreases, the fair value of the derivatives decreases. The future impact of the derivatives on net income (loss) depends on how significant inputs, such as stock price, stock price volatility, and time to the expiration of the derivatives, change in relation to other inputs. These arrangements are Level 3 fair value measurements and include the following significant unobservable inputs as of September 30, 2025:
ImThera Acquisition |  | Valuation Technique |  | Unobservable Input |  | Inputs
Regulatory milestone-based payment |  | Discounted cash flow |  | Discount rate |  | 6.3%
|  |  |  | Probability of payment |  | 85%
|  |  |  | Projected payment year |  | 2026
Sales-based earnout |  | Monte-Carlo simulation |  | Risk-adjusted discount rate |  | 13.0% - 13.1%
|  |  |  | Credit risk discount rate |  | 6.5% - 7.0%
|  |  |  | Revenue volatility |  | 23.3%
|  |  |  | Probability of payment |  | 85%
|  |  |  | Projected years of earnout |  | 2027 - 2030

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- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 103 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-103 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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