XML 71 R22.htm IDEA: XBRL DOCUMENT
v3.25.4

Employee Retirement Plans | 12 Months Ended
--- | ---
Dec. 31, 2025
Retirement Benefits [Abstract] |
Employee Retirement Plans | Note 14. Employee Retirement Plans Defined Benefit Plans LivaNova sponsors several defined benefit pension plans, which include plans in the U.S., Italy, Germany, Japan, and France. The Company maintains a frozen cash balance retirement plan in the U.S. that is a contributory, defined benefit plan designed to provide the benefit in terms of a stated account balance dependent on the employer’s promised interest-crediting rate. In Italy and France, LivaNova maintains a severance pay defined benefit plan that obligates the employer to pay a severance payment in case of resignation, dismissal, or retirement. In other jurisdictions, LivaNova sponsors non-contributory, defined benefit plans designated to provide guaranteed minimum retirement benefits to eligible employees. Risks Related to Defined Benefit Plans The defined benefit plans expose LivaNova to various demographic and economic risks such as longevity risk, investment risks, currency and interest rate risks, and in some cases inflation risk. Pension fund Trustees are responsible for and have full discretion over the investment strategy of the plan assets. In general, Trustees manage pension fund risks by diversifying the investments of plan assets and in some cases by matching the interest rate risk of liabilities in whole or in part. The Company has an active de-risking strategy in which it consistently looks for opportunities to reduce the risks associated with its defined benefit plans. The plans are governed by Trustees who have a legal obligation to evenly balance the interests of all stakeholders and operate under the local regulatory framework. The following table presents the changes in benefit obligations and plan assets, and the funded status of LivaNova’s U.S. and non-U.S. pension benefits (in thousands):
|  | U.S. Pension Benefits |  |  |  | Non-U.S. Pension Benefits
|  | 2025 |  | 2024 |  |  |  | 2025 |  | 2024
Accumulated benefit obligations at year-end |  | $ | 8,003 |  |  | $ | 7,944 |  |  |  |  | $ | 7,252 |  |  | $ | 7,215 |
Change in projected benefit obligation: |  |  |  |  |  |  |  |  |  |
Projected benefit obligation at beginning of year |  | $ | 7,944 |  |  | $ | 9,222 |  |  |  |  | $ | 7,594 |  |  | $ | 8,260 |
Service cost |  | — |  |  | — |  |  |  |  | 236 |  |  | 225 |
Interest cost |  | 349 |  |  | 347 |  |  |  |  | 224 |  |  | 205 |
Plan settlement |  | (189) |  |  | (326) |  |  |  |  | — |  |  | — |
Actuarial loss/(gain) |  | 234 |  |  | (976) |  |  |  |  | (164) |  |  | (208) |
Benefits paid |  | (335) |  |  | (323) |  |  |  |  | (1,045) |  |  | (316) |
FX and other |  | — |  |  | — |  |  |  |  | 769 |  |  | (572) |
Projected benefit obligation at end of year |  | $ | 8,003 |  |  | $ | 7,944 |  |  |  |  | $ | 7,614 |  |  | $ | 7,594 |
Change in plan assets: |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 7,923 |  |  | $ | 6,671 |  |  |  |  | $ | 3,016 |  |  | $ | 3,290 |
Actual return on plan assets |  | 808 |  |  | 352 |  |  |  |  | (38) |  |  | (20) |
Employer contributions |  | 850 |  |  | 1,549 |  |  |  |  | — |  |  | — |
Plan settlement |  | (189) |  |  | (326) |  |  |  |  | — |  |  | — |
Benefits paid |  | (335) |  |  | (323) |  |  |  |  | (104) |  |  | (78) |
FX and other |  | — |  |  | — |  |  |  |  | 34 |  |  | (176) |
Fair value of plan assets at end of year |  | $ | 9,057 |  |  | $ | 7,923 |  |  |  |  | $ | 2,908 |  |  | $ | 3,016 |
Funded status at end of year: |  |  |  |  |  |  |  |  |  |
Fair value of plan assets |  | $ | 9,057 |  |  | $ | 7,923 |  |  |  |  | $ | 2,908 |  |  | $ | 3,016 |
Projected benefit obligations |  | 8,003 |  |  | 7,944 |  |  |  |  | 7,614 |  |  | 7,594 |
(Over) under funded status of the plans (1) |  | $ | (1,054) |  |  | $ | 21 |  |  |  |  | $ | 4,706 |  |  | $ | 4,578 |
Amounts recognized on the consolidated balance sheets consist of: |  |  |  |  |  |  |  |  |  |
Non-current assets |  | $ | 1,054 |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |
Non-current liabilities |  | — |  |  | (21) |  |  |  |  | (5,644) |  |  | (5,682) |
Recognized asset (liability) |  | $ | 1,054 |  |  | $ | (21) |  |  |  |  | $ | (5,644) |  |  | $ | (5,682) |
(1)In certain non-U.S. countries, fully funding pension plans is not a common practice. Consequently, certain pension plans have been partially funded. The following table presents U.S. and non-U.S. net periodic benefit cost of LivaNova’s defined benefit pension plans by component (in thousands):
|  | U.S. Pension Benefits |  | Non-U.S. Pension Benefits
|  | 2025 |  | 2024 |  | 2023 |  | 2025 |  | 2024 |  | 2023
Service cost |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 236 |  |  | $ | 225 |  |  | $ | 239 |
Interest cost |  | 349 |  |  | 347 |  |  | 409 |  |  | 224 |  |  | 205 |  |  | 239 |
Expected return on plan assets |  | — |  |  | (289) |  |  | (209) |  |  | — |  |  | 20 |  |  | 78 |
(Gain) loss recognized |  | (574) |  |  | 148 |  |  | 233 |  |  | (127) |  |  | (208) |  |  | 86 |
|  | $ | (225) |  |  | $ | 206 |  |  | $ | 433 |  |  | $ | 333 |  |  | $ | 242 |  |  | $ | 642 |
The following table presents the major actuarial assumptions used in determining the benefit obligations and net periodic benefit costs for LivaNova’s significant U.S. and non-U.S. defined benefit plans:
|  | U.S. Pension Benefits |  | Non-U.S. Pension Benefits
|  | December 31, |  | December 31,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Weighted-average assumptions used to determine benefit obligation: |  |  |  |  |  |  |  |
Discount rate |  | 5.04% |  | 5.41% |  | 1.81% - 4.00% |  | 1.01% - 3.40%
Rate of compensation increase |  | N/A |  | N/A |  | 2.50% - 3.50% |  | 2.50% - 3.50%
Weighted-average assumptions used to determine net periodic benefit cost: |  |  |  |  |  |  |  |
Discount rate |  | 5.41% |  | 4.93% |  | 1.81% - 4.00% |  | 1.01% - 3.40%
Expected return on plan assets |  | 5.50% |  | 5.00% |  | N/A |  | N/A
Rate of compensation increase |  | N/A |  | N/A |  | 2.50% - 3.50% |  | 3.00% - 3.50%
To determine the discount rate for LivaNova’s U.S. benefit plan, the Company used the FTSE Above Median Pension Discount Curve. For the discount rate used for non-U.S. benefit plans, LivaNova considers local market expectations of long-term returns, primarily utilizing the iBoxx Corporate Index Bond rating AA, duration higher than 10 years. The resulting discount rates are consistent with the duration of plan liabilities. The expected long-term rate of return on plan assets assumption for LivaNova’s U.S. defined benefit plan was derived from a study conducted by the Company’s investment managers. The study includes a review of the anticipated future long-term performance of individual asset classes and considers the appropriate asset allocation strategy, given the anticipated funding requirements of the plan, to determine the average rate of earnings expected on the funds invested. Retirement Benefit Plan Investment Strategy In the U.S., LivaNova has an account that holds the defined benefit frozen balance pension plan assets. The Plan Committee sets investment guidelines for the U.S. pension plan. Plan assets in the U.S. are invested in accordance with sound investment practices that emphasize long-term fundamentals. The investment objective for the plan assets in the U.S. is to achieve a positive rate of return that would be expected to close the current funding deficit and enable LivaNova to terminate the frozen pension plan at a reasonable cost. The Plan Committee also oversees the investment allocation process, selects the investment managers, and monitors asset performance. The plan investments consist of a diversified portfolio of fixed income and equity index funds. Securities are also diversified in terms of investment location (domestic and international), tenor (short- and long-term securities), investment objective (growth and value), and size of market. Outside the U.S., pension plan assets are typically managed by decentralized fiduciary committees. There is a significant variation in asset allocation policy from country to country. Local regulations, local funding rules, and local financial and tax considerations influence the funding and investment allocation process in each country. The following table presents LivaNova’s U.S. and non-U.S. pension plan target allocations by asset category:
|  | U.S. Pension Benefits |  | Non-U.S. Pension Benefits
|  | December 31, |  | December 31,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Equity securities |  | 29% |  | 29% |  | 1% |  | 1%
Debt securities |  | 70% |  | 70% |  | 81% |  | 81%
Other |  | 1% |  | 1% |  | 18% |  | 18%
Retirement Benefit Fair Values The following is a description of the valuation methodologies used for retirement benefit plan assets measured at fair value: Mutual Funds: Comprised of investments in equity and fixed income securities held in pooled investment vehicles. The valuations of mutual funds are based on the respective net asset values which are determined by the fund daily at market close. The net asset values are calculated based on the valuation of the underlying assets which are determined using observable inputs. The net asset values are publicly reported. Fixed Income Securities: Fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Money Markets: Valued based on quoted prices in active markets for identical assets. The following tables present information by level for the U.S. retirement benefit plan assets that are measured at fair value on a recurring basis (in thousands):
December 31, 2025 |  | Total |  | Fair Value Measurement Using Inputs Considered as:
|  | Level 1 |  | Level 2 |  | Level 3
Equity mutual funds |  | $ | 2,592 |  |  | $ | 2,592 |  |  | $ | — |  |  | $ | — |
Fixed income mutual funds |  | 6,327 |  |  | 6,327 |  |  | — |  |  | — |
Money market funds |  | 91 |  |  | 91 |  |  | — |  |  | — |
|  | $ | 9,010 |  |  | $ | 9,010 |  |  | $ | — |  |  | $ | — |
December 31, 2024 |  | Total |  | Fair Value Measurement Using Inputs Considered as:
|  | Level 1 |  | Level 2 |  | Level 3
Equity mutual funds |  | $ | 2,169 |  |  | $ | — |  |  | $ | 2,169 |  |  | $ | — |
Fixed income mutual funds |  | 5,333 |  |  | — |  |  | 5,333 |  |  | — |
Money market funds |  | 78 |  |  | 78 |  |  | — |  |  | — |
|  | $ | 7,580 |  |  | $ | 78 |  |  | $ | 7,502 |  |  | $ | — |
The following tables present information by level for the non-U.S. retirement benefit plan assets that are measured at fair value on a recurring basis (in thousands):
December 31, 2025 |  | Total |  | Fair Value Measurement Using Inputs Considered as:
|  | Level 1 |  | Level 2 |  | Level 3
Equity mutual funds |  | $ | 24 |  |  | $ | 24 |  |  | $ | — |  |  | $ | — |
Fixed income securities |  | 1,583 |  |  | — |  |  | 1,583 |  |  | — |
Money market funds |  | 363 |  |  | 363 |  |  | — |  |  | — |
|  | $ | 1,970 |  |  | $ | 387 |  |  | $ | 1,583 |  |  | $ | — |
December 31, 2024 |  | Total |  | Fair Value Measurement Using Inputs Considered as:
|  | Level 1 |  | Level 2 |  | Level 3
Equity mutual funds |  | $ | 24 |  |  | $ | — |  |  | $ | 24 |  |  | $ | — |
Fixed income mutual funds |  | 1,566 |  |  | — |  |  | 1,566 |  |  | — |
Money market funds |  | 332 |  |  | 332 |  |  | — |  |  | — |
|  | $ | 1,922 |  |  | $ | 332 |  |  | $ | 1,590 |  |  | $ | — |
For information of the fair value measurement terms of Levels 1, 2, and 3, refer to “Note 2. Basis of Presentation, Use of Accounting Estimates, and Significant Accounting Policies.” Defined Benefit Retirement Funding LivaNova makes the minimum required contribution to fund the U.S. pension plan as determined by the Moving Ahead for Progress in the 21st Century Act and the Highway and Transportation Funding Act of 2014. The Company contributed $0.9 million, $1.5 million, and $1.4 million to the pension plans (U.S. and non-U.S.) for the years ended December 31, 2025, 2024, and 2023, respectively. LivaNova anticipates the Company will make contributions to the U.S. pension plan of $0.1 million for the year ending December 31, 2026. The following table presents benefit payments expected to be paid, including amounts to be paid from LivaNova’s assets, and reflecting expected future service, as of December 31, 2025 (in thousands):
|  | U.S. Plans |  | Non-U.S. Plans
2026 |  | $ | 3,513 |  |  | $ | 378 |
2027 |  | 610 |  |  | 413 |
2028 |  | 494 |  |  | 510 |
2029 |  | 509 |  |  | 469 |
2030 |  | 442 |  |  | 652 |
2031 - 2035 |  | 1,757 |  |  | 3,934 |
Defined Contribution Plans LivaNova sponsors defined contribution plans in the U.S., including the Cyberonics Employee Retirement Savings Plan, which qualifies under Section 401(k) of the IRC, covering U.S. employees, and the Cyberonics Non-Qualified Deferred Compensation Plan, covering certain U.S. middle and senior management. In addition, LivaNova sponsors the Belgium Defined Contribution Pension Plan for Cyberonics’ Belgium employees. LivaNova incurred expenses for the Company’s defined contribution plans of $11.6 million, $9.6 million, and $11.1 million for the years ended December 31, 2025, 2024, and 2023, respectively.

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

X
- Definition The entire disclosure for retirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (o) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (p) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (q) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 60 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480266/715-60-50-3 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480126/715-20-S99-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 70 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480794/715-70-50-1 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 55 -Paragraph 17 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480482/715-20-55-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/715/tableOfContent Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (r)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 715 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (r)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480506/715-20-50-1 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration