0001639691-24-000134 | 10-Q | XBRL Viewer

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Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Note 9. Income Taxes LivaNova PLC is a resident in the UK. LivaNova’s effective income tax rate fluctuates based on, among other factors, changes in pre-tax income in countries with varying statutory tax rates, valuation allowances, tax credits and incentives, and unrecognized tax benefits associated with uncertain tax positions. LivaNova’s tax returns are periodically audited or subjected to review by tax authorities. The Company operates in multiple jurisdictions worldwide and assesses the recoverability of its deferred tax assets for each period and jurisdiction by considering whether it is more likely than not that all or a portion of the deferred tax assets will not be realized. The Company considers all available evidence (both positive and negative) in determining whether a valuation allowance is required. Depending on operating results in the future, a release of a valuation allowance could occur within the next 12 months. The timing and amount of the valuation allowance release could vary based on the Company’s assessment of all available evidence. LivaNova’s effective income tax rate for the three and nine months ended September 30, 2024 was 25.9% and 76.9%, respectively, compared to (268.4)% and 90.1% for the three and nine months ended September 30, 2023, respectively. The change in the effective tax rate for both the three and nine months ended September 30, 2024, compared to the prior year periods, was primarily attributable to changes in valuation allowances, year-over-year changes in income before tax in countries with varying statutory tax rates, and certain discrete tax items. On July 11, 2023, the UK Act implemented the Pillar Two framework, providing a minimum effective tax rate of 15.0%, including both a multinational top-up tax and a domestic top-up tax for accounting periods beginning on or after December 31, 2023. The UK Act also included a transitional safe harbor election for accounting periods beginning on or before December 31, 2026. This minimum tax is treated as a period cost beginning in 2024 and has not had a material impact on the Company's consolidated results of operations for the current period. LivaNova will continue to monitor related guidance in the UK and other jurisdictions that impact LivaNova’s operations.

- Definition

The entire disclosure for income tax.

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+ Details

Restructuring (Tables)

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Schedule of Reconciliation of Accruals and Other Reserves Related to Restructuring

The following table presents a reconciliation of the beginning and ending balance of the accruals and other reserves recorded in connection with LivaNova’s restructuring plans included in accounts payable and accrued liabilities and other on the condensed consolidated balance sheets (in thousands):


	Employee Severance and Other Termination Costs		Other		Total
Balance at December 31, 2023 (1)	$	911	$	—	$	911
Charges	10,377		2,466		12,843
Cash payments	(7,868)		(2,006)		(9,874)
Balance at September 30, 2024	$	3,420	$	460	$	3,880

(1)Represents restructuring plans initiated prior to 2024.

Schedule of Restructuring Expense by Reportable Segment

The following table presents restructuring expense by reportable segment (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023

Neuromodulation	$	—	$	(6)	$	—	$	554
Other (1)	1,479		130		12,843		501
	$	1,479	$	124	$	12,843	$	1,055

(1)Other primarily includes restructuring expense not allocated to segments.

Stock-Based Incentive Plans - Compensation Expense (Details) - Continuing Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 8,559	$ 11,779	$ 26,984	$ 28,069
Service-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	4,288	5,690	13,662	16,103
Service-based SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	3,480	3,886	10,003	10,713
Market performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	257	1,071	1,303	392
Operating performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	255	866	1,119	7
Employee share purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 279	$ 266	$ 897	$ 854

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

Geographic and Segment Information - Revenue by Operating Segment & Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Net revenue	$ 318,120	$ 286,113	$ 931,607	$ 843,413
Operating Segments \| Cardiopulmonary
Segment Reporting Information [Line Items]
Net revenue	172,239	148,955	501,844	438,812
Operating Segments \| Neuromodulation
Segment Reporting Information [Line Items]
Net revenue	139,861	128,880	416,609	382,784
Other Revenue
Segment Reporting Information [Line Items]
Net revenue	6,020	8,278	13,154	21,817
United States
Segment Reporting Information [Line Items]
Net revenue	179,828	161,583	519,985	461,823
United States \| Operating Segments \| Cardiopulmonary
Segment Reporting Information [Line Items]
Net revenue	62,504	52,281	177,954	141,891
United States \| Operating Segments \| Neuromodulation
Segment Reporting Information [Line Items]
Net revenue	112,906	102,475	330,518	301,029
Europe
Segment Reporting Information [Line Items]
Net revenue	52,815	48,129	158,414	152,231
Europe \| Operating Segments \| Cardiopulmonary
Segment Reporting Information [Line Items]
Net revenue	40,894	35,484	120,387	111,208
Europe \| Operating Segments \| Neuromodulation
Segment Reporting Information [Line Items]
Net revenue	11,922	12,661	40,919	41,066
Rest of World
Segment Reporting Information [Line Items]
Net revenue	85,477	76,401	253,208	229,359
Rest of World \| Operating Segments \| Cardiopulmonary
Segment Reporting Information [Line Items]
Net revenue	68,841	61,190	203,503	185,713
Rest of World \| Operating Segments \| Neuromodulation
Segment Reporting Information [Line Items]
Net revenue	$ 15,033	$ 13,744	$ 45,172	$ 40,689

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating Activities:
Net income	$ 7,343	$ 1,207
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	26,984	28,069
Loss on debt extinguishment	25,482	0
Depreciation	18,683	18,582
Amortization of debt issuance costs	15,692	14,246
Amortization of intangible assets	12,960	19,129
Deferred income tax expense	9,093	1,908
Amortization of operating lease assets	6,918	7,270
Impairment of investments	5,768	0
Remeasurement of derivative instruments	400	(25,730)
Remeasurement of contingent consideration to fair value	338	4,516
Other	1,453	605
Changes in operating assets and liabilities:
Accounts receivable, net	17,425	(8,239)
Inventories	(13,895)	(33,024)
Other current and non-current assets	(14,841)	(2,981)
Accounts payable and accrued current and non-current liabilities	(23,383)	(8,084)
Taxes payable	2,628	6,347
Litigation provision liability	5,283	(2,865)
Net cash provided by operating activities	104,331	20,956
Investing Activities:
Purchases of property, plant, and equipment	(36,701)	(22,062)
Purchase of investments	(846)	(6,570)
Other	95	439
Net cash used in investing activities	(37,452)	(28,193)
Financing Activities:
Proceeds from long-term debt obligations	335,513	50,000
Repayment of long-term debt obligations	(243,174)	(16,061)
Payment of debt extinguishment costs	(38,953)	0
Purchase of capped calls	(31,637)	0
Proceeds from unwind of capped calls	22,523	0
Payment of contingent consideration	(13,750)	0
Shares repurchased from employees for minimum tax withholding	(8,071)	(6,995)
Payment of debt issuance costs	(5,931)	0
Proceeds from exercise of stock options	5,028	19
Repayments of short-term borrowings (maturities greater than 90 days)	0	(1,901)
Other	447	1,440
Net cash provided by financing activities	21,995	26,502
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(170)	(2,161)
Net increase in cash, cash equivalents, and restricted cash	88,704	17,104
Cash, cash equivalents, and restricted cash at beginning of period	577,872	515,618
Cash, cash equivalents, and restricted cash at end of period	$ 666,576	$ 532,722

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net income	$ 32,953	$ (7,318)	$ 7,343	$ 1,207

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147483443/250-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stock-Based Incentive Plans - Executed Agreements (Details) shares in Thousands	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Service-based SARs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares (in shares) \| shares	729,482
Weighted average grant date fair value (in dollars per share) \| $ / shares	$ 26.28
Service-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares (in shares) \| shares	411,799
Weighted average grant date fair value (in dollars per share) \| $ / shares	$ 55.15
Market performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares (in shares) \| shares	69,797
Weighted average grant date fair value (in dollars per share) \| $ / shares	$ 74.32
Operating performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares (in shares) \| shares	69,790
Weighted average grant date fair value (in dollars per share) \| $ / shares	$ 55.33

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

New Accounting Pronouncements (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Standards Update and Change in Accounting Principle [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table presents a description of future adoptions of new accounting standards that may have an impact on LivaNova’s consolidated financial statements when adopted:

Issue Date & Standard

Description

Adoption

Assessment

November 2023

ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

This ASU expands public entities’ reportable segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the CODM and included in each reported measure of segment profit or loss, the amount and description of other segment items, and the title and position of the Company’s CODM, as well as an explanation of how the CODM uses the Company’s reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources.

This ASU will be effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis.

LivaNova is currently evaluating the effect this standard will have on its consolidated financial statements and related disclosures.

December 2023 ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

This ASU expands annual income tax disclosures primarily related to the rate reconciliation and income taxes paid.

This ASU will be effective for annual periods beginning after December 15, 2024, on a prospective basis, with early adoption and retrospective application permitted.

LivaNova is currently evaluating the effect this standard will have on its consolidated financial statements and related disclosures.

Supplemental Financial Information - Schedule of Foreign Exchange (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Impairment of investment in ShiraTronics, Inc.			$ (5,768)	$ 0
Foreign exchange rate fluctuations	$ 220	$ 420	(2,885)	(588)
Interest income	7,139	5,921	21,497	15,985
Other	275	172	10	(235)
Foreign exchange and other income/(expense)	24,701	8,550	12,585	36,810
ShiraTronics, Inc.
Derivative Instruments, Gain (Loss) [Line Items]
Impairment of investment in ShiraTronics, Inc.	0	0	(5,750)	0
2025 Notes
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value	2,829	402	1,466	32,372
2029 Notes
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value	18,423	0	10,488	0
Capped Call Derivative Assets \| 2025 Notes
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value	(1,668)	1,635	(10,201)	(10,724)
Capped Call Derivative Assets \| 2029 Notes
Derivative Instruments, Gain (Loss) [Line Items]
Changes in fair value	$ (2,517)	$ 0	$ (2,040)	$ 0

Geographic and Segment Information - Geographic Areas (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Segment Reporting Information [Line Items]
Property, plant, and equipment, net	$ 169,317	$ 154,181
United States
Segment Reporting Information [Line Items]
Property, plant, and equipment, net	73,323	62,701
Europe
Segment Reporting Information [Line Items]
Property, plant, and equipment, net	89,226	85,606
Rest of World
Segment Reporting Information [Line Items]
Property, plant, and equipment, net	$ 6,768	$ 5,874

Supplemental Financial Information

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Financial Information

Note 12. Supplemental Financial Information

The following table presents the components of inventories (in thousands):


	September 30, 2024		December 31, 2023
Raw materials	$	74,339	$	81,878
Work-in-process	17,617		12,901
Finished goods	70,308		53,108
	$	162,264	$	147,887

As of September 30, 2024 and December 31, 2023, inventories included adjustments totaling $21.1 million and $24.4 million, respectively, to record balances at lower of cost or net realizable value.

The following table presents the components of accrued liabilities and other (in thousands):


	September 30, 2024		December 31, 2023
Legal and professional costs	$	19,075	$	17,794
Italian MedTech payback measure	16,756		8,223
Contract liabilities	10,279		10,725
Operating lease liabilities	9,477		8,362
Interest payable	7,359		7,840
Research and development costs	6,232		2,462
Provisions for agents, returns, and other	4,570		4,464
Royalty accrual	4,400		4,441
Restructuring liability	3,384		911
Current derivative liabilities	2,245		3,883
Contingent consideration	—		13,750
Other accrued expenses	20,746		24,446
	$	104,523	$	107,301

As of September 30, 2024 and December 31, 2023, contract liabilities totaling $13.7 million and $15.3 million, respectively, were included in accrued liabilities and other long-term liabilities on the condensed consolidated balance sheets.

The following table presents the items included in foreign exchange and other income/(expense) on the condensed consolidated statements of income (loss) (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Embedded derivative fair value adjustment (2025 Notes) (1)	$	2,829	$	402	$	1,466	$	32,372
Embedded derivative fair value adjustment (2029 Notes) (1)	18,423		—		10,488		—
Capped call fair value adjustment (2025 Notes) (1)	(1,668)		1,635		(10,201)		(10,724)
Capped call fair value adjustment (2029 Notes) (1)	(2,517)		—		(2,040)		—
Impairment of investment in ShiraTronics (2)	—		—		(5,750)		—
Foreign exchange rate fluctuations	220		420		(2,885)		(588)
Interest income	7,139		5,921		21,497		15,985
Other	275		172		10		(235)
	$	24,701	$	8,550	$	12,585	$	36,810

(1)Refer to “Note 4. Fair Value Measurements.”

(2)Impairment of equity investment related to LivaNova’s preferred share ownership converting into common stock during the second quarter of 2024.

The following table presents a reconciliation of cash, cash equivalents, and restricted cash reported on the condensed consolidated balance sheets that sum to the total of the amounts shown on the condensed consolidated statements of cash flows (in thousands):


	September 30, 2024		December 31, 2023
Cash and cash equivalents	$	346,366	$	266,504
Restricted cash (1)	320,210		311,368
	$	666,576	$	577,872

(1)On March 18, 2022, LivaNova PLC, acting through its Italian branch, entered into an Indemnity Letter and an Account Pledge Agreement with Barclays, further to which Barclays issued the SNIA Litigation Guarantee. As security for the SNIA Litigation Guarantee, LivaNova is required to grant cash collateral to Barclays in USD in an amount equal to the USD equivalent of 105% of the amount of the SNIA Litigation Guarantee calibrated on a biweekly basis, which is presented as restricted cash on the condensed consolidated balance sheet. For additional information, refer to “Note 6. Commitments and Contingencies.”

Derivatives and Risk Management - Schedule of Fair Value of Derivative Instruments in Statement of Financial Position (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Derivatives, Fair Value [Line Items]
Long-term derivative assets	$ 35,368	$ 38,496
Long-term derivative liabilities	84,157	45,569
Accrued liabilities and other	2,245	3,883
Derivatives Not Designated as Hedging Instruments:
Derivatives, Fair Value [Line Items]
Derivative asset	35,368	38,496
Derivative liability	86,402	49,452
Derivatives Not Designated as Hedging Instruments: \| Capped Call
Derivatives, Fair Value [Line Items]
Long-term derivative assets		38,496
Derivatives Not Designated as Hedging Instruments: \| Capped Call \| 2025 Notes
Derivatives, Fair Value [Line Items]
Long-term derivative assets	5,771
Derivatives Not Designated as Hedging Instruments: \| Capped Call \| 2029 Notes
Derivatives, Fair Value [Line Items]
Long-term derivative assets	29,597
Derivatives Not Designated as Hedging Instruments: \| Embedded Derivative Financial Instruments \| 2025 Notes
Derivatives, Fair Value [Line Items]
Long-term derivative liabilities	7,188	45,569
Derivatives Not Designated as Hedging Instruments: \| Embedded Derivative Financial Instruments \| 2029 Notes
Derivatives, Fair Value [Line Items]
Long-term derivative liabilities	76,969
Derivatives Not Designated as Hedging Instruments: \| Foreign Exchange Contract
Derivatives, Fair Value [Line Items]
Long-term derivative assets	0
Accrued liabilities and other	$ 2,245	$ 3,883

Supplemental Financial Information - Schedule of Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 74,339	$ 81,878
Work-in-process	17,617	12,901
Finished goods	70,308	53,108
Inventory, Net	$ 162,264	$ 147,887

Stock-Based Incentive Plans

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Incentive Plans

Note 8. Stock-Based Incentive Plans

Stock-Based Plans

During the nine months ended September 30, 2024, LivaNova issued stock-based compensatory awards with terms approved by the Compensation and Human Capital Management Committee of LivaNova’s Board of Directors. The awards with service conditions generally vest ratably over four years and are subject to forfeiture unless service conditions are met. The market performance-based awards that were issued cliff vest after three years, subject to the rank of LivaNova’s total shareholder return for the three-year period ending December 31, 2026, relative to the total shareholder returns of the S&P Healthcare Equipment Select Constituents index. The adjusted free cash flow and return on invested capital operating performance-based awards that were issued cliff vest after three years, subject to the achievement of certain thresholds of cumulative results for the three-year period ending December 31, 2026. Compensation expense related to awards granted during 2024 for the three and nine months ended September 30, 2024 was $3.4 million and $6.0 million, respectively.

Stock-based awards may be granted under the 2015 Plan and the A&R 2022 Plan in the form of stock options, SARs, RSUs, and other stock-based and cash-based awards. As of September 30, 2024, under the 2015 Plan, there were 90,081 shares available for future grants to LivaNova’s non-executive directors and under the A&R 2022 Plan, there were 1,496,770 shares pursuant to stock options or SARs and 948,029 shares pursuant to other types of awards available for future grants to LivaNova’s employees. In June 2024, the Company’s shareholders approved amendments to the 2015 Plan and the A&R 2022 Plan. The 2015 Plan Amendment increased the number of shares that can be issued from 50,000 to 150,000. The A&R 2022 Plan Amendment increased the number of shares that can be issued pursuant to options or SARs from 2,250,000 to 2,950,000, and the number of shares that can be issued pursuant to other types of awards from 1,500,000 to 2,000,000.

Stock-Based Compensation

Stock-based incentive plan compensation expense is as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Service-based RSUs	$	4,288	$	5,690	$	13,662	$	16,103
Service-based SARs	3,480		3,886		10,003		10,713
Market performance-based RSUs	257		1,071		1,303		392
Operating performance-based RSUs	255		866		1,119		7
Employee share purchase plan	279		266		897		854
	$	8,559	$	11,779	$	26,984	$	28,069

Stock-based compensation agreements issued during the nine months ended September 30, 2024, representing potential shares and their weighted average grant date fair values by type, is as follows (shares in thousands, fair value in dollars):


	Nine Months Ended September 30, 2024
	Shares	Weighted Average Grant Date Fair Value
Service-based SARs	729,482	$	26.28
Service-based RSUs	411,799	$	55.15
Market performance-based RSUs	69,797	$	74.32
Operating performance-based RSUs	69,790	$	55.33

Stock-Based Incentive Plans - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	Jun. 29, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Income tax benefit		4 years
Total expense, net of income tax benefit	$ 3.4	$ 6.0
Number of shares available for grant (in shares)	90,081	90,081
Market performance-based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Income tax benefit		3 years
Employee share purchase plan \| 2022 Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)	1,496,770	1,496,770
Employee share purchase plan \| 2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)	150,000	150,000	50,000
Employee share purchase plan \| A&R 2022 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)	2,950,000	2,950,000	2,250,000
Other Than Option, Awards \| 2022 Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)	948,029	948,029
Other Than Option, Awards \| A&R 2022 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)	2,000,000	2,000,000	1,500,000

Stock-Based Incentive Plans (Tables)

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-based Incentive Plans

Stock-based incentive plan compensation expense is as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Service-based RSUs	$	4,288	$	5,690	$	13,662	$	16,103
Service-based SARs	3,480		3,886		10,003		10,713
Market performance-based RSUs	257		1,071		1,303		392
Operating performance-based RSUs	255		866		1,119		7
Employee share purchase plan	279		266		897		854
	$	8,559	$	11,779	$	26,984	$	28,069


	Nine Months Ended September 30, 2024
	Shares	Weighted Average Grant Date Fair Value
Service-based SARs	729,482	$	26.28
Service-based RSUs	411,799	$	55.15
Market performance-based RSUs	69,797	$	74.32
Operating performance-based RSUs	69,790	$	55.33

Financing Arrangements (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Schedule of Long-term Debt

The following table presents a summary of LivaNova’s long-term debt obligations (in thousands, except interest rates):


	September 30, 2024		December 31, 2023		Maturity	Interest Rate
Term Facilities	$	316,803	$	328,459	July 2027	8.66%
2029 Notes	253,863		—		March 2029	2.50%
2025 Notes	52,919		255,500		December 2025	3.00%
Bank of America, U.S.	1,500		1,500		January 2025	8.19%
Other	455		568
Total long-term facilities	625,540		586,027
Less: Current portion of long-term debt	21,253		17,484
Total long-term debt obligations	$	604,287	$	568,543

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(22))
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-Topic 470
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Reference 3: http://www.xbrl.org/2003/role/exampleRef
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Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
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-SubTopic 10
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-Subparagraph (SX 210.12-04(a))
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI https://asc.fasb.org/1943274/2147481112/505-10-50-7

+ Details

Derivatives and Risk Management

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Risk Management

Note 3. Derivatives and Risk Management

Due to the global nature of LivaNova’s operations, the Company is exposed to FX fluctuations. LivaNova enters into FX derivative contracts to reduce the impact of FX fluctuations on earnings and cash flow.

LivaNova is also exposed to equity price risk in connection with its 2025 Notes and 2029 Notes, including exchange/conversion and settlement provisions based on the price of its ordinary shares at exchange/conversion or maturity of the 2025 Notes and 2029 Notes. The Capped Call Transactions associated with the 2025 Notes and 2029 Notes also include settlement provisions that are based on the price of LivaNova’s ordinary shares, subject to a capped price per share. LivaNova does not enter into derivative contracts for speculative purposes.

LivaNova measures all outstanding derivatives each period end at fair value and reports the fair value as either financial assets or liabilities on the condensed consolidated balance sheets. At inception of the contract, the derivative is designated as either a freestanding derivative or a hedge. Derivatives that are not designated as hedging instruments are referred to as freestanding derivatives with changes in fair value included in earnings. These derivatives are intended to serve as economic hedges and follow the cash flows of the economic hedged item. The cash flows from these derivative contracts are reported as operating activities on LivaNova’s condensed consolidated statements of cash flows.

If the derivative qualifies for hedge accounting, changes in the fair value of the derivative will be recorded in AOCI until the hedged item is recognized in earnings upon settlement/termination. Interest rate swap gains and losses in AOCI are reclassified to interest expense on LivaNova’s condensed consolidated statements of income (loss). LivaNova evaluates hedge effectiveness at inception. LivaNova had no designated hedging instruments as of September 30, 2024 and December 31, 2023.

Freestanding FX Derivatives

The gross notional amount of freestanding FX derivative contracts not designated as hedging instruments outstanding as of September 30, 2024 and December 31, 2023 was $158.9 million and $223.4 million, respectively. These derivative contracts are designed to offset the FX effects in earnings of various intercompany loans and trade receivables. LivaNova recorded net losses of $5.0 million and net gains of $5.0 million for these freestanding derivatives for the three months ended September 30, 2024 and 2023, respectively, and net losses of $0.1 million and net gains of $4.1 million for the nine months ended September 30, 2024 and 2023, respectively. These gains and losses are included in foreign exchange and other income/(expense) on LivaNova’s condensed consolidated statements of income (loss).

Capped Call Derivatives

The Capped Call Transactions are carried on the condensed consolidated balance sheets as a derivative asset at their estimated fair value and are adjusted at the end of each reporting period, with unrealized gain or loss reflected in foreign exchange and other income/(expense) in the condensed consolidated statements of income (loss). The Capped Call Transactions are measured at fair value using the Black-Scholes model utilizing observable and unobservable market data, including stock price, remaining contractual term, expected volatility, risk-free interest rate, and expected dividend yield, as applicable. For additional information, refer to “Note 5. Financing Arrangements.”

2025 Capped Calls

In June 2020, LivaNova issued the 2025 Notes. In connection with the pricing of the 2025 Notes, the Company entered into related privately-negotiated capped call transactions with certain financial institutions. Under the 2025 Capped Calls, the Company purchased a capped call option with an initial strike price of $60.98 and an initial cap price of $100.00 per share. The strike price, which is subject to certain adjustments, corresponds to the initial exchange price of the 2025 Notes. The 2025 Capped Calls are intended to offset any cash payments upon exchange of the 2025 Notes in excess of the principal amount; however, the proceeds are limited to the initial cap price in the event the Company’s share price exceeds the cap price at the time of an exchange. The 2025 Capped Calls expire on December 15, 2025, and must be settled in cash. The 2025 Capped Calls are subject to anti-dilution adjustments substantially similar to those applicable to the 2025 Notes and cover the number of LivaNova’s ordinary shares underlying the 2025 Notes. If the 2025 Capped Calls are terminated early, settlement occurs at their termination value, which is equal to their fair value at the time of the early termination. In connection with the issuance of the 2029 Notes, the Company repurchased an aggregate principal amount of $230.0 million of the 2025 Notes and unwound a corresponding portion of the 2025 Capped Calls at the fair value of such portion of the 2025 Capped Calls. The Company received $22.5 million in cash consideration, the fair value of the terminated portion, upon settlement. The terms of the remaining 2025 Capped Calls remain unchanged and continue to be classified as long-term derivative assets.

2029 Capped Calls

In March 2024, LivaNova issued the 2029 Notes. In connection with the pricing of the 2029 Notes, the Company entered into related privately-negotiated capped call transactions with certain financial institutions. Under the 2029 Capped Calls, the Company purchased a capped call option with an initial strike price of $69.40 and an initial cap price of $94.28 per share. The strike price, which is subject to certain adjustments, corresponds to the initial conversion price of the 2029 Notes. The 2029 Capped Calls are intended to offset any cash payments and/or cash equivalent value of ordinary shares upon conversion of the 2029 Notes if the market value per ordinary share is greater than the strike price, with such offsets being subject to the initial cap price of $94.28 per share. However, the proceeds under the 2029 Capped Calls are limited to the initial cap price in the event the Company’s share price exceeds the cap price at the time of conversion. The 2029 Capped Calls expire on March 15, 2029, and must be settled in cash. The 2029 Capped Calls are subject to anti-dilution adjustments substantially similar to those applicable to the 2029 Notes and cover the number of LivaNova’s ordinary shares underlying the 2029 Notes. If the 2029 Capped Calls are terminated early, settlement occurs at their termination value, which is equal to their fair value at the time of the early termination. For transaction costs associated with entering into the 2029 Capped Calls, refer to “Additions” in the “Reconciliation of Level 3 Assets and Liabilities” table within “Note 4. Fair Value Measurements.”

Embedded Derivatives

The 2025 Notes and 2029 Notes each include terms resulting in a bifurcated embedded derivative. The Embedded Derivatives are measured at fair value using a binomial lattice model and estimated discounted cash flows that utilize observable and unobservable market data and are adjusted at the end of each reporting period, with the unrealized gain or loss reflected in foreign exchange and other income/(expense) in the condensed consolidated statements of income (loss). For additional information, refer to “Note 5. Financing Arrangements.”

Counterparty Credit Risk

LivaNova is exposed to credit risk in the event of non-performance by the counterparties to the Company’s derivatives.

The Option Counterparties are financial institutions. To limit LivaNova’s credit risk, the Company selected financial institutions with a minimum long-term investment grade credit rating. LivaNova’s exposure to the credit risk of the Option Counterparties is not secured by any collateral. If such an Option Counterparty becomes subject to insolvency proceedings, LivaNova will become an unsecured creditor in those proceedings, with a claim equal to the Company’s exposure at that time under the 2025 Capped Calls and/or 2029 Capped Calls, as applicable, with that Option Counterparty.

To manage credit risk with respect to LivaNova’s other derivatives, the Company selects and periodically reviews counterparties based on credit ratings, limits its exposure with respect to each counterparty, and monitors their respective

market positions. However, if one or more of these counterparties were in a liability position to the Company and were unable to meet their obligations, any transactions with the counterparty could be subject to early termination, which could result in substantial losses for the Company.

Cash Flow Hedges

Historically, LivaNova entered into interest rate swaps associated with the Initial Term Facility, which qualified for and were designated as cash flow hedges. The Company’s outstanding interest rate swaps expired on April 6, 2023. LivaNova elected not to renew the interest rate swaps. Interest expense associated with the Initial Term Facility is principally offset by holding a significant portion of the Term Facilities in a depository account, which earns a floating rate of interest.

The pre-tax gains (losses) for derivative contracts designated as cash flow hedges recognized in OCI and the amount reclassified to earnings from AOCI were as follows (in thousands):

Nine Months Ended September 30, 2023

Description of Derivative Contract

Location in Earnings of Reclassified Gain or Loss

Loss Recognized in OCI

Gain Reclassified from AOCI to Earnings

Interest rate swap contracts

Interest expense

(433)

533

Balance Sheet Presentation

LivaNova offsets fair value amounts associated with its derivative instruments that are executed with the same counterparty under master netting arrangements on the Company’s condensed consolidated balance sheets. Master netting arrangements include a right to set off or net together purchases and sales of similar products in the settlement process.

The following tables present the fair value and the location of derivative contracts reported on the condensed consolidated balance sheets (in thousands):

Derivative Assets

Derivative Liabilities

September 30, 2024

Balance Sheet Location

Fair Value (1)

Balance Sheet Location

Fair Value (1)

Derivatives Not Designated as Hedging Instruments:

Capped call derivatives (2025 Notes)

Long-term derivative assets

5,771

Capped call derivatives (2029 Notes)

Long-term derivative assets

29,597

Embedded derivative (2025 Notes)

Long-term derivative liabilities

7,188

Embedded derivative (2029 Notes)

Long-term derivative liabilities

76,969

FX derivative contracts

Prepaid expenses and other current assets

—

Accrued liabilities and other

2,245

Total derivatives not designated as hedging instruments

35,368

86,402

Derivative Assets

Derivative Liabilities

December 31, 2023

Balance Sheet Location

Fair Value (1)

Balance Sheet Location

Fair Value (1)

Derivatives Not Designated as Hedging Instruments:

Capped call derivatives (2025 Notes)

Long-term derivative assets

38,496

Embedded derivative (2025 Notes)

Long-term derivative liabilities

45,569

FX derivative contracts

Accrued liabilities and other

3,883

Total derivatives not designated as hedging instruments

38,496

49,452

(1)For the classification of inputs used to evaluate the fair value of LivaNova’s derivatives, refer to “Note 4. Fair Value Measurements.”

Fair Value Measurements - Summary of Stock Price Volatility, Fair Value, and Hypothetical Changes (Details) - Stock price volatility	Sep. 30, 2024
2025 Notes \| Capped Call
Derivative Asset [Abstract]
Measurement input	0.40
2025 Notes \| Embedded Derivative Financial Instruments
Derivative Liability [Abstract]
Measurement input	0.40
2029 Notes \| Capped Call
Derivative Asset [Abstract]
Measurement input	0.37
2029 Notes \| Embedded Derivative Financial Instruments
Derivative Liability [Abstract]
Measurement input	0.37

Geographic and Segment Information - Reconciliation of Segment Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Operating income	$ 35,618	$ 4,458	$ 92,030	$ 19,492
Interest expense	(15,878)	(14,986)	(47,303)	(43,232)
Loss on debt extinguishment	0	0	(25,482)	0
Foreign exchange and other income/(expense)	24,701	8,550	12,585	36,810
Income (loss) before tax	44,441	(1,978)	31,830	13,070
Amortization of debt issuance costs	5,500	4,700	15,692	14,246
Operating Segments
Segment Reporting Information [Line Items]
Segment income	71,202	39,738	207,030	126,878
Operating Segments \| Cardiopulmonary
Segment Reporting Information [Line Items]
Segment income	21,669	(2,192)	56,007	19,794
Operating Segments \| Neuromodulation
Segment Reporting Information [Line Items]
Segment income	49,533	41,930	151,023	107,084
Other
Segment Reporting Information [Line Items]
Other income/(expense)	$ (35,584)	$ (35,280)	$ (115,000)	$ (107,386)

Unaudited Condensed Consolidated Financial Statements - Narrative (Details) $ in Millions	3 Months Ended	9 Months Ended	11 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)
Other Commitments [Line Items]
Cybersecurity incident related expenses	$ 2.5	$ 8.2	$ 10.8
Cyber Litigation \| Pending Litigation
Other Commitments [Line Items]
Loss contingency accrual	$ 1.2	$ 1.2	$ 1.2

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Liabilities:
Contingent consideration	$ 81,240	$ 80,902
Derivatives Not Designated as Hedging Instruments:
Assets:
Derivative asset	35,368	38,496
Liabilities:
Derivative liability	86,402	49,452
Fair Value, Recurring
Assets:
Convertible notes receivable		275
Total assets	35,368	38,771
Liabilities:
Contingent consideration	81,240
Total liabilities	167,642	144,104
Fair Value, Recurring \| Contingent Consideration
Liabilities:
Contingent consideration		80,902
Fair Value, Recurring \| Accrued Liabilities and Other
Liabilities:
Contingent consideration		13,750
Fair Value, Recurring \| Embedded Derivative Financial Instruments \| 2025 Notes
Liabilities:
Derivative liability	7,188	45,569
Fair Value, Recurring \| Embedded Derivative Financial Instruments \| 2029 Notes
Liabilities:
Derivative liability	76,969
Fair Value, Recurring \| Derivatives Not Designated as Hedging Instruments: \| Capped Call \| 2025 Notes
Assets:
Derivative asset	5,771	38,496
Fair Value, Recurring \| Derivatives Not Designated as Hedging Instruments: \| Capped Call \| 2029 Notes
Assets:
Derivative asset	29,597
Fair Value, Recurring \| Designated as Hedging Instrument \| Freestanding Instrument
Liabilities:
Derivative liability	2,245
Fair Value, Recurring \| Designated as Hedging Instrument \| Foreign Exchange Contract
Liabilities:
Derivative liability		3,883
Fair Value, Recurring \| Level 1
Assets:
Convertible notes receivable		0
Total assets	0	0
Liabilities:
Contingent consideration	0
Total liabilities	0	0
Fair Value, Recurring \| Level 1 \| Contingent Consideration
Liabilities:
Contingent consideration		0
Fair Value, Recurring \| Level 1 \| Accrued Liabilities and Other
Liabilities:
Contingent consideration		0
Fair Value, Recurring \| Level 1 \| Embedded Derivative Financial Instruments \| 2025 Notes
Liabilities:
Derivative liability	0	0
Fair Value, Recurring \| Level 1 \| Embedded Derivative Financial Instruments \| 2029 Notes
Liabilities:
Derivative liability	0
Fair Value, Recurring \| Level 1 \| Derivatives Not Designated as Hedging Instruments: \| Capped Call \| 2025 Notes
Assets:
Derivative asset	0	0
Fair Value, Recurring \| Level 1 \| Derivatives Not Designated as Hedging Instruments: \| Capped Call \| 2029 Notes
Assets:
Derivative asset	0
Fair Value, Recurring \| Level 1 \| Designated as Hedging Instrument \| Freestanding Instrument
Liabilities:
Derivative liability	0
Fair Value, Recurring \| Level 1 \| Designated as Hedging Instrument \| Foreign Exchange Contract
Liabilities:
Derivative liability		0
Fair Value, Recurring \| Level 2
Assets:
Convertible notes receivable		0
Total assets	0	0
Liabilities:
Contingent consideration	0
Total liabilities	2,245	3,883
Fair Value, Recurring \| Level 2 \| Contingent Consideration
Liabilities:
Contingent consideration		0
Fair Value, Recurring \| Level 2 \| Accrued Liabilities and Other
Liabilities:
Contingent consideration		0
Fair Value, Recurring \| Level 2 \| Embedded Derivative Financial Instruments \| 2025 Notes
Liabilities:
Derivative liability	0	0
Fair Value, Recurring \| Level 2 \| Embedded Derivative Financial Instruments \| 2029 Notes
Liabilities:
Derivative liability	0
Fair Value, Recurring \| Level 2 \| Derivatives Not Designated as Hedging Instruments: \| Capped Call \| 2025 Notes
Assets:
Derivative asset	0	0
Fair Value, Recurring \| Level 2 \| Derivatives Not Designated as Hedging Instruments: \| Capped Call \| 2029 Notes
Assets:
Derivative asset	0
Fair Value, Recurring \| Level 2 \| Designated as Hedging Instrument \| Freestanding Instrument
Liabilities:
Derivative liability	2,245
Fair Value, Recurring \| Level 2 \| Designated as Hedging Instrument \| Foreign Exchange Contract
Liabilities:
Derivative liability		3,883
Fair Value, Recurring \| Level 3
Assets:
Convertible notes receivable		275
Total assets	35,368	38,771
Liabilities:
Contingent consideration	81,240
Total liabilities	165,397	140,221
Fair Value, Recurring \| Level 3 \| Contingent Consideration
Liabilities:
Contingent consideration		80,902
Fair Value, Recurring \| Level 3 \| Accrued Liabilities and Other
Liabilities:
Contingent consideration		13,750
Fair Value, Recurring \| Level 3 \| Embedded Derivative Financial Instruments \| 2025 Notes
Liabilities:
Derivative liability	7,188	45,569
Fair Value, Recurring \| Level 3 \| Embedded Derivative Financial Instruments \| 2029 Notes
Liabilities:
Derivative liability	76,969
Fair Value, Recurring \| Level 3 \| Derivatives Not Designated as Hedging Instruments: \| Capped Call \| 2025 Notes
Assets:
Derivative asset	5,771	38,496
Fair Value, Recurring \| Level 3 \| Derivatives Not Designated as Hedging Instruments: \| Capped Call \| 2029 Notes
Assets:
Derivative asset	29,597
Fair Value, Recurring \| Level 3 \| Designated as Hedging Instrument \| Freestanding Instrument
Liabilities:
Derivative liability	$ 0
Fair Value, Recurring \| Level 3 \| Designated as Hedging Instrument \| Foreign Exchange Contract
Liabilities:
Derivative liability		$ 0

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Litigation Provision Liabilities

The following table presents the changes in the litigation provision liability for the nine months ended September 30, 2024 (in thousands):


Total litigation provision liability at December 31, 2023	$	13,860
Payments	(11,515)
Adjustments (1)	16,798
FX and other	86
Total litigation provision liability at September 30, 2024	19,229
Less: Current portion of litigation provision liability at September 30, 2024	16,098
Long-term portion of litigation provision liability at September 30, 2024 (2)	$	3,131

(1)Adjustments to the litigation provision are included in other operating expenses on the condensed consolidated statements of income (loss).

(2)Included in other long-term liabilities on the condensed consolidated balance sheets.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 6. Commitments and Contingencies

Saluggia Site Hazardous Substances

LSM, formerly a subsidiary of Sorin, one of the companies that merged into LivaNova PLC in 2015, manages site services for the campus in Saluggia, Italy. In addition to being a former LivaNova manufacturing facility, the Saluggia campus is also the location of manufacturing facilities of third parties, a cafeteria for workers, and storage facilities for hazardous substances and equipment previously used in a nuclear research center, later turned nuclear medicine business, between the 1960s and the late 1990s. Pursuant to authorization from the Italian government, LSM performs ordinary maintenance, secures the facilities, monitors air and water quality, and files applicable reports with the competent environmental authorities.

In 2020, LSM received correspondence from ISIN requesting that, within five years, LSM demonstrate the financial capacity to meet its obligations under Italian law to clean and dismantle any contaminated buildings and equipment, as well as to deliver hazardous substances to a national repository. This repository will be built by the Italian government at a location and time yet to be determined. ISIN subsequently published Technical Guide n. 30, which identifies the technical criteria, and general safety and protection requirements for the design, construction, operation, and dismantling of temporary storage facilities for the hazardous substances. In January 2021, a list of 67 potential sites for the national repository was published.

Although there is no legal obligation to begin any work or deliver the hazardous substances, as the performance of these obligations is contingent on the construction of the as-yet unbuilt national repository, based on the aforementioned factors, the Company concluded its obligation to clean, dismantle, and deliver any hazardous substances to a national repository is probable and reasonably estimable. The estimated liability as of September 30, 2024 was €35.5 million ($39.6 million), which represented the low end of the estimated range of loss of €35.5 million ($39.6 million) to €45.3 million ($50.6 million). The estimated liability as of December 31, 2023 was €35.8 million ($39.7 million).

SNIA Environmental Litigation

Sorin was created as a result of a spin-off from SNIA in 2004 and in 2015, Sorin was merged into LivaNova. SNIA subsequently became insolvent, and the Public Administrations sought compensation from SNIA in an aggregate amount of approximately $3.8 billion for remediation costs relating to the environmental damage at chemical sites previously operated by SNIA’s other subsidiaries.

There are proceedings relating to the SNIA bankruptcy to which LivaNova is not a party in the Bankruptcy Court of Udine and the Bankruptcy Court of Milan. In 2011, the Bankruptcy Court of Udine held that the Public Administrations were not creditors of either SNIA or its subsidiaries in connection with their claims in the Italian insolvency proceedings. The Public Administrations appealed. In 2016, the Court of Udine rejected the appeal, and the Public Administrations appealed to the Italian Supreme Court. Similarly, in 2014, the Bankruptcy Court of Milan held that the Public Administrations were not creditors of either SNIA or its subsidiaries. The Public Administrations appealed. In April 2022, the Bankruptcy Court of Milan declared the Public Administrations to be a non-privileged creditor of SNIA for up to €454.0 million, and the Public Administrations appealed to the Italian Supreme Court.

In 2012, SNIA filed a civil action against Sorin in the Civil Court of Milan asserting joint liability of a parent and a spun-off company; the Public Administrations entered voluntarily into the proceeding, asking Sorin, as jointly liable with SNIA, to pay compensation for SNIA’s environmental damages. In 2016, the Court of Milan dismissed all legal actions of SNIA and of the Public Administrations further requiring the Public Administrations to pay Sorin €292,000 ($326,191 as of September 30,

2024) for legal fees. The Public Administrations appealed the 2016 Decision to the Court of Appeal. On March 5, 2019, the Court of Appeal issued a partial decision on the merits declaring Sorin/LivaNova jointly liable with SNIA for SNIA’s environmental liabilities in an amount up to the fair value of the net worth received by Sorin because of the spin-off of Sorin from SNIA in 2004, an estimated €572.1 million ($639.1 million as of September 30, 2024). LivaNova appealed the partial decision on liability to the Italian Supreme Court in August 2019.

In 2021, the Court of Appeal delivered the remainder of its decision, ordering LivaNova to pay damages of €453.6 million ($506.7 million as of September 30, 2024). LivaNova appealed the decision on damages in December 2021. On February 21, 2022, the Court of Appeal notified the Company that it granted the Company a suspension with respect to the payment of damages until a decision has been reached on the appeal to the Italian Supreme Court. This suspension was subject to LivaNova providing a first demand bank guarantee of €270.0 million ($301.6 million as of September 30, 2024) within 30 calendar days, and on March 21, 2022, LivaNova delivered the guarantee, thereby satisfying the condition. For additional information on the financing of the guarantee, refer to “Note 12. Supplemental Financial Information.”

In 2022, in response to one of a number of appeals asserted by LivaNova, the Italian Supreme Court issued an ordinance, a procedural document, whereby the Italian Supreme Court referred a question on interpretation of a European directive on demergers to the ECJ. Specifically, the ordinance asked the ECJ to provide a binding decision as to whether a company resulting from a demerger can be held jointly and severally liable not only for the established liabilities of the demerged company that were articulated at the time of demerger, but also for the environmental liabilities of the demerged company that materialized after the demerger which are derived from actions performed prior to the demerger. On July 29, 2024, the ECJ issued a judgment in response to the ordinance. The ECJ judgment states that a demerged company can be held responsible for liabilities not established prior to a demerger as long as the liabilities derive from the conduct of a demerged company prior to the demerger. The ECJ judgment also states that national law should determine whether liability for damages stemming from conduct after a demerger can be assigned to a demerged company. The Italian Supreme Court is expected to issue a decision in response to all of the appeals of LivaNova, and counter-appeals submitted by the Public Administrations. While the timing of the decision by the Italian Supreme Court is uncertain, the Company does not expect that a decision will be issued until at least 2025. LivaNova has not recognized a liability in connection with this matter because any potential loss is not currently probable.

Product Liability Litigation

The Company continues to be involved in litigation involving LivaNova’s 3T device. The litigation includes the cases remaining in the MDL, various U.S. state court cases, and claims in jurisdictions outside the U.S. As of October 30, 2024, the Company was aware of approximately 65 filed and unfiled claims worldwide. The complaints generally seek damages and other relief based on theories of strict liability, negligence, breach of express and implied warranties, failure to warn, design and manufacturing defect, fraudulent and negligent misrepresentation or concealment, unjust enrichment, and violations of various state consumer protection statutes.

During the three and nine months ended September 30, 2024, LivaNova recorded an additional liability of $7.7 million and $16.8 million, respectively, due to new information received about the nature of certain claims. As of September 30, 2024 and December 31, 2023, the provision for these matters was $19.2 million and $13.9 million, respectively. While the amount accrued represents LivaNova’s best estimate for those filed and unfiled claims worldwide of which LivaNova is aware and believes are both probable and estimable at this time, the actual liability for resolution of these matters may vary from the Company’s provision. A provision for the remaining claims has not been recorded, because a potential loss is not determined to be probable, or a potential loss or range of potential loss is not reasonably estimable at this time.

The following table presents the changes in the litigation provision liability for the nine months ended September 30, 2024 (in thousands):


Total litigation provision liability at December 31, 2023	$	13,860
Payments	(11,515)
Adjustments (1)	16,798
FX and other	86
Total litigation provision liability at September 30, 2024	19,229
Less: Current portion of litigation provision liability at September 30, 2024	16,098
Long-term portion of litigation provision liability at September 30, 2024 (2)	$	3,131

(1)Adjustments to the litigation provision are included in other operating expenses on the condensed consolidated statements of income (loss).

(2)Included in other long-term liabilities on the condensed consolidated balance sheets.

Italian MedTech Payback Measure

As previously disclosed, in 2015, the Italian Parliament introduced rules regarding public contracts with the National Healthcare System for the supply of goods and services. In particular, the law introduced a payback measure requiring companies selling medical devices in Italy to repay a percentage of the healthcare expenditures exceeding the regional maximum caps for medical devices. In the intervening years since the rules were first issued, there has been considerable uncertainty about how the law will operate and what the exact timeline is for finalization. In August 2022, a decree was published which provided guidance and timetables for the rule. In response, LivaNova filed an appeal at the Administrative Court against the Decree of the Ministry of Health, assessing the amount payable and against the payback law. LivaNova also filed appeals against the regions requesting payments. In August 2023, the Administrative Court upheld LivaNova’s request to suspend the effect of the requests for payment by the regions, pending the decision by the Administrative Court on the merits of the case. In November 2023, the Administrative Court, in a separate matter, asked the Constitutional Court whether the payback law was compliant with the Italian Constitution and pending the decision by the Constitutional Court, all cases brought by medical device companies in this matter were suspended. On July 22, 2024, the Constitutional Court determined that the payback law is compliant with the Italian Constitution and that companies may reduce their payment obligations between 2015-2018 to 48% of the amount originally charged to companies. Based on market and product information, as previously disclosed, and the recent ruling by the Constitutional Court, the amount reserved for this matter was $16.8 million and $8.2 million as of September 30, 2024 and December 31, 2023, respectively, and is included in accrued liabilities and other in the condensed consolidated balance sheets. However, the actual liability could vary. Amounts recognized associated with the Italian MedTech payback measure are recorded as a reduction to net revenue in the condensed consolidated statements of income (loss).

Cyber Litigation

In connection with the cybersecurity incident initially reported on November 20, 2023, LivaNova USA was named as a defendant in six putative class action lawsuits filed in the United States District Court for the Southern District of Texas in June and July 2024. Those cases were consolidated in a single action, and the plaintiffs filed against LivaNova USA a consolidated class action complaint, which asserted claims of negligence, breach of contract, and violation of various state consumer protection laws. The plaintiffs sought damages, equitable/injunctive relief, and attorney’s fees, costs, and expenses, among other relief. The parties entered into mediation and have agreed to a settlement, for which the Company recorded an accrual of $1.2 million during the quarter ended September 30, 2024. The settlement is currently being memorialized and will be subject to court approval.

Other Matters

Additionally, LivaNova is the subject of various pending or threatened legal actions and proceedings that arise in the ordinary course of LivaNova’s business. These matters are subject to many uncertainties and outcomes that are not predictable and that may not be known for extended periods of time. Since the outcome of these matters cannot be predicted with certainty, the costs associated with them could have a material adverse effect on LivaNova’s consolidated results of operations, financial position, or liquidity.

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Weighted-Average Shares Outstanding

The following table presents basic and diluted earnings per share:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Basic income (loss) per share	$	0.61	$	(0.14)	$	0.14	$	0.02
Diluted income (loss) per share	$	0.60	$	(0.14)	$	0.13	$	0.02

The following table presents the reconciliations of net income (loss) and weighted average shares outstanding used in the calculations of basic and diluted earnings per share (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator (1):
Net income (loss) - basic and diluted	$	32,953	$	(7,318)	$	7,343	$	1,207




Denominator:
Weighted average shares outstanding - basic	54,352		53,989		54,194		53,837
Add: Dilutive effect of share-based compensation and convertible debt instruments (1) (2)	233		—		332		270
Weighted average shares outstanding - diluted	54,585		53,989		54,526		54,107

(1)For the three and nine months ended September 30, 2024, the 2029 Notes were outstanding and potentially dilutive securities, but were excluded from the computation of diluted earnings per share, because their effect would have been anti-dilutive.

(2)Excluded from the computation of diluted earnings per share were stock options, SARs, and RSUs totaling 3.1 million and 4.0 million for the three months ended September 30, 2024 and 2023, respectively, and 2.8 million and 3.1 million for the nine months ended September 30, 2024 and 2023, respectively, because to include them would have been anti-dilutive under the treasury stock method.

Financing Arrangements - Narrative (Details)			3 Months Ended		9 Months Ended		12 Months Ended
Financing Arrangements - Narrative (Details)	Mar. 08, 2024 USD ($) $ / shares	Jun. 17, 2020 USD ($)	Sep. 30, 2024 USD ($) $ / shares	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) $ / shares	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Mar. 07, 2024 USD ($)	Aug. 13, 2021 USD ($)	Jun. 30, 2020 USD ($)
Debt Instrument [Line Items]
Repayment of long-term debt obligations					$ 243,174,000	$ 16,061,000
Loss on debt extinguishment			$ 0	$ 0	(25,482,000)	0
Proceeds from long-term debt obligations					335,513,000	$ 50,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Borrowed funds			$ 0		$ 0		$ 0
Capped Call \| 2029 Notes
Debt Instrument [Line Items]
Conversion price (in dollars per share) \| $ / shares			$ 69.40		$ 69.40
Capped Call \| 2025 Notes
Debt Instrument [Line Items]
Consideration received upon termination	$ 22,500,000
Conversion price (in dollars per share) \| $ / shares			$ 60.98		$ 60.98
Senior Notes \| 2029 Notes
Debt Instrument [Line Items]
Interest rate			9.79%		9.79%
Line of credit, maximum borrowing capacity			$ 45,000,000		$ 45,000,000
Debt discounts and issuance costs	99,600,000
Unamortized discount (premium), net			$ 91,100,000		$ 91,100,000
Debt instrument, face amount	$ 345,000,000
Interest Rate	2.50%		2.50%		2.50%
Proceeds from long-term debt obligations					$ 332,100,000
Unamortized discount	$ 87,500,000
Debt issuance costs, net	$ 12,100,000
Redemption price, percentage of exchange price					130.00%
Redemption, threshold trading days	20 days				20 days
Redemption, threshold consecutive trading days	30 days				30 days
Minimum holding percentage of aggregate principal amount	25.00%
Conversion ratio	0.0144085
Senior Notes \| 2025 Notes
Debt Instrument [Line Items]
Interest rate			9.16%		9.16%
Debt discounts and issuance costs		$ 82,000,000
Unamortized discount (premium), net	$ 5,800,000		$ 4,600,000		$ 4,600,000		32,000,000
Debt instrument, face amount		$ 287,500,000
Interest Rate		3.00%	3.00%		3.00%
Aggregate principal amount repurchased	230,000,000									$ 230,000,000
Repayment of long-term debt obligations	$ 270,500,000
Proceeds from long-term debt obligations		$ 278,000,000
Unamortized discount		75,000,000
Debt issuance costs, net		$ 7,000,000
Redemption price, percentage of exchange price	130.00%				130.00%
Redemption price, per share of exchange price (in dollars per share) \| $ / shares	$ 90.22
Redemption, threshold trading days					20 days
Redemption, threshold consecutive trading days					30 days
Conversion price (in dollars per share) \| $ / shares			$ 79.27		$ 79.27
Conversion ratio			0.016398
Option to exchange (in dollars per share) \| $ / shares			$ 60.98		$ 60.98
Redemption price, percentage					100.00%
Revolving Credit Facility
Debt Instrument [Line Items]
Short-term Debt			$ 700,000		$ 700,000		$ 600,000
Line of credit, maximum borrowing capacity	$ 225,000,000							$ 125,000,000	$ 225,000,000
Commitment fee percentage					0.50%		0.50%
Revolving Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Debt discounts and issuance costs			9,600,000		$ 9,600,000
Unamortized discount (premium), net			$ 5,400,000		$ 5,400,000		$ 6,800,000
Revolving Credit Facility \| Maximum
Debt Instrument [Line Items]
Interest rate			4.94%		4.94%		4.94%
Debt instrument, term					364 days
Net leverage ratio, threshold for four consecutive fiscal quarters	3.50
Interest coverage ratio, threshold for four consecutive fiscal quarters	2.00

Geographic and Segment Information - Narrative (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2024 segment geographic_region	Dec. 31, 2023 segment
Segment Reporting [Abstract]
Reportable segments \| segment	2	3
Number of geographic regions in which entity operates \| geographic_region	3

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 32,953	$ (7,318)	$ 7,343	$ 1,207
Other comprehensive income (loss)
Unrealized loss on cash flow hedges	0	0	0	(966)
Tax effect	0	0	0	0
Net of tax	0	0	0	(966)
Foreign currency translation adjustment	26,116	(19,222)	1,180	(5,716)
Other comprehensive income (loss), net of tax	26,116	(19,222)	1,180	(6,682)
Comprehensive income (loss)	$ 59,069	$ (26,540)	$ 8,523	$ (5,475)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Stockholders' Equity - Schedule of Stockholders Equity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)			53,942,151
Beginning balance	$ 1,242,542	$ 1,240,608	$ 1,277,628	$ 1,207,624
Issuance of shares			0
Stock-based compensation plans	8,433	11,404	23,893	23,323
Net income	32,953	(7,318)	7,343	1,207
Other comprehensive income (loss)	$ 26,116	(19,222)	$ 1,180	(6,682)
Ending balance (in shares)	54,405,751		54,405,751
Ending balance	$ 1,310,044	$ 1,225,472	$ 1,310,044	$ 1,225,472
Ordinary Shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)	54,404,000	53,904,000	53,942,000	53,852,000
Beginning balance	$ 83,070	$ 82,441	$ 82,533	$ 82,424
Issuance of shares			$ 440
Stock-based compensation plans (in shares)	2,000	0	464,000	52,000
Stock-based compensation plans	$ 42	$ 50	$ 139	$ 67
Ending balance (in shares)	54,406,000	53,904,000	54,406,000	53,904,000
Ending balance	$ 83,112	$ 82,491	$ 83,112	$ 82,491
Additional Paid-In Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	2,204,580	2,169,346	2,189,517	2,157,724
Stock-based compensation plans	8,352	11,315	23,415	22,937
Ending balance	2,212,932	2,180,661	2,212,932	2,180,661
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(195)	(95)	(55)	(375)
Issuance of shares			(440)
Stock-based compensation plans	39	39	339	319
Ending balance	(156)	(56)	(156)	(56)
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(52,819)	(35,579)	(27,883)	(48,119)
Other comprehensive income (loss)	26,116	(19,222)	1,180	(6,682)
Ending balance	(26,703)	(54,801)	(26,703)	(54,801)
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(992,094)	(975,505)	(966,484)	(984,030)
Net income	32,953	(7,318)	7,343	1,207
Ending balance	$ (959,141)	$ (982,823)	$ (959,141)	$ (982,823)

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current Assets:
Cash and cash equivalents	$ 346,366	$ 266,504
Restricted cash	320,210	311,368
Accounts receivable, net of allowance of $12,129 at September 30, 2024 and $12,019 at December 31, 2023	197,162	215,072
Inventories	162,264	147,887
Prepaid and refundable taxes	23,858	20,145
Prepaid expenses and other current assets	43,253	27,182
Total Current Assets	1,093,113	988,158
Property, plant, and equipment, net	169,317	154,181
Goodwill	781,553	782,941
Intangible assets, net	248,545	261,178
Operating lease assets	51,599	50,845
Investments	18,097	22,843
Deferred tax assets	109,992	118,858
Long-term derivative assets	35,368	38,496
Other assets	14,374	12,063
Total Assets	2,521,958	2,429,563
Current Liabilities:
Current debt obligations	21,951	18,111
Accounts payable	77,893	80,845
Accrued liabilities and other	104,523	107,301
Current litigation provision liability	16,098	10,756
Taxes payable	26,507	23,340
Accrued employee compensation and related benefits	77,430	94,630
Total Current Liabilities	324,402	334,983
Long-term debt obligations	604,287	568,543
Contingent consideration	81,240	80,902
Deferred tax liabilities	11,843	11,567
Long-term operating lease liabilities	44,078	45,388
Long-term employee compensation and related benefits	14,867	17,254
Long-term derivative liabilities	84,157	45,569
Other long-term liabilities	47,040	47,729
Total Liabilities	1,211,914	1,151,935
Commitments and contingencies (Note 6)
Stockholders’ Equity:
Ordinary Shares, £1.00 par value: unlimited shares authorized; 54,405,751 shares issued and 54,300,048 shares outstanding at September 30, 2024; 53,942,151 shares issued and 53,918,222 shares outstanding at December 31, 2023	83,112	82,533
Additional paid-in capital	2,212,932	2,189,517
Accumulated other comprehensive loss	(26,703)	(27,883)
Accumulated deficit	(959,141)	(966,484)
Treasury stock at cost, 105,703 ordinary shares at September 30, 2024; 23,929 ordinary shares at December 31, 2023	(156)	(55)
Total Stockholders’ Equity	1,310,044	1,277,628
Total Liabilities and Stockholders’ Equity	$ 2,521,958	$ 2,429,563

Financing Arrangements - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Mar. 08, 2024	Dec. 31, 2023	Jun. 17, 2020
Debt Instrument [Line Items]
Total long-term facilities	$ 625,540		$ 586,027
Less: Current portion of long-term debt	21,253		17,484
Total long-term debt obligations	$ 604,287		568,543
Bank of America, U.S.
Debt Instrument [Line Items]
Interest Rate	8.19%
Term Loan
Debt Instrument [Line Items]
Total long-term facilities	$ 316,803		328,459
Interest Rate	8.66%
Senior Notes \| 2029 Notes
Debt Instrument [Line Items]
Total long-term facilities	$ 253,863		0
Interest Rate	2.50%	2.50%
Senior Notes \| 2025 Notes
Debt Instrument [Line Items]
Total long-term facilities	$ 52,919		255,500
Interest Rate	3.00%			3.00%
Loans Payable \| Bank of America, U.S.
Debt Instrument [Line Items]
Total long-term facilities	$ 1,500		1,500
Other
Debt Instrument [Line Items]
Total long-term facilities	$ 455		$ 568

Geographic and Segment Information (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Revenue from External Customers by Geographic Areas

The following table presents net revenue by operating segment and geographic region (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cardiopulmonary
United States	$	62,504	$	52,281	$	177,954	$	141,891
Europe (1)	40,894		35,484		120,387		111,208
Rest of World	68,841		61,190		203,503		185,713
	172,239		148,955		501,844		438,812
Neuromodulation
United States	112,906		102,475		330,518		301,029
Europe (1)	11,922		12,661		40,919		41,066
Rest of World	15,033		13,744		45,172		40,689
	139,861		128,880		416,609		382,784




Other Revenue (2)	6,020		8,278		13,154		21,817
Totals (3)
United States	179,828		161,583		519,985		461,823
Europe (1)	52,815		48,129		158,414		152,231
Rest of World	85,477		76,401		253,208		229,359
	$	318,120	$	286,113	$	931,607	$	843,413

(1)Includes countries in Europe where the Company has a direct sales presence. Countries in Europe where sales are made through distributors are included in “Rest of World.”

(2)“Other Revenue” includes revenue from the Company’s former ACS reportable segment, as discussed above, as well as rental and site services income not allocated to segments.

(3)No single customer represented over 10% of the Company’s consolidated net revenue. No country’s net revenue exceeded 10% of the Company’s consolidated net revenue except for the U.S.

Schedule of Segment Reporting Information, by Segment

The following table presents a reconciliation of segment income to consolidated income (loss) before tax (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cardiopulmonary	$	21,669	$	(2,192)	$	56,007	$	19,794
Neuromodulation	49,533		41,930		151,023		107,084
Segment income	71,202		39,738		207,030		126,878



Other income/(expense)	(35,584)		(35,280)		(115,000)		(107,386)
Operating income	35,618		4,458		92,030		19,492

Interest expense (1)	(15,878)		(14,986)		(47,303)		(43,232)
Loss on debt extinguishment	—		—		(25,482)		—
Foreign exchange and other income/(expense)	24,701		8,550		12,585		36,810
Income (loss) before tax	$	44,441	$	(1,978)	$	31,830	$	13,070

(1)“Interest expense” includes contractual interest expense associated with LivaNova’s short and long-term financing arrangements and the amortization of debt discount and issuance costs of $5.5 million and $15.7 million for the three and nine months ended September 30, 2024, respectively, and $4.7 million and $14.2 million for the three and nine months ended September 30, 2023, respectively.

The following table presents assets by reportable segment (in thousands):


	September 30, 2024		December 31, 2023
Cardiopulmonary	$	966,769	$	964,735
Neuromodulation	635,272		647,391
Other assets (1)	919,917		817,437
	$	2,521,958	$	2,429,563

(1)“Other assets” primarily includes corporate assets not allocated to segments and the assets of LivaNova’s former ACS reportable segment.

The following table presents capital expenditures by reportable segment (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cardiopulmonary	$	7,383	$	4,144	$	18,657	$	11,485
Neuromodulation	1,379		597		2,380		1,089
Other capital expenditures (1)	5,318		3,441		13,241		9,514
	$	14,080	$	8,182	$	34,278	$	22,088

(1)“Other capital expenditures” primarily includes corporate capital expenditures not allocated to segments and capital expenditures of LivaNova’s former ACS reportable segment.

Schedule of Goodwill by Segment

The following table presents changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2024 (in thousands):


	Cardiopulmonary		Neuromodulation		Total
December 31, 2023	$	384,187	$	398,754	$	782,941

Foreign currency adjustments	(1,388)		—		(1,388)
September 30, 2024	$	382,799	$	398,754	$	781,553

Long-lived Assets by Geographic Areas

The following table presents property, plant, and equipment, net by geographic region (in thousands):


	September 30, 2024		December 31, 2023
United States	$	73,323	$	62,701
Europe	89,226		85,606
Rest of World	6,768		5,874
	$	169,317	$	154,181

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
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+ Details

Geographic and Segment Information - Changes in Carrying Amount of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Goodwill
Goodwill, beginning	$ 782,941
Foreign currency adjustments	(1,388)
Goodwill, ending	781,553
Cardiopulmonary
Goodwill
Goodwill, beginning	384,187
Foreign currency adjustments	(1,388)
Goodwill, ending	382,799
Neuromodulation
Goodwill
Goodwill, beginning	398,754
Foreign currency adjustments	0
Goodwill, ending	$ 398,754

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

Restructuring - Reconciliation of Accruals and Other Reserves Related to Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restructuring Reserve [Roll Forward]
Beginning liability balance			$ 911
Charges	$ 1,479	$ 124	12,843	$ 1,055
Cash payments			(9,874)
Ending liability balance	3,880		3,880
Employee Severance and Other Termination Costs
Restructuring Reserve [Roll Forward]
Beginning liability balance			911
Charges			10,377
Cash payments			(7,868)
Ending liability balance	3,420		3,420
Other
Restructuring Reserve [Roll Forward]
Beginning liability balance			0
Charges			2,466
Cash payments			(2,006)
Ending liability balance	$ 460		$ 460

Commitments and Contingencies - Schedule of Litigation Provision Liabilities (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Loss Contingency Accrual [Roll Forward]
Less current portion of litigation liability at period end	$ 16,098
Litigation provision liability	3,131
Product Liability
Loss Contingency Accrual [Roll Forward]
Beginning liability	13,860
Payments	(11,515)
Adjustments	16,798
FX and other	86
Ending liability	$ 19,229

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2024	Oct. 25, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-37599
Entity Registrant Name	LivaNova PLC
Entity Incorporation, State or Country Code	X0
Entity Tax Identification Number	98-1268150
Entity Address, Address Line One	20 Eastbourne Terrace
Entity Address, City or Town	London
Entity Address, Country	GB
Entity Address, Postal Zip Code	W2 6LG
Country Region	44
City Area Code	0
Local Phone Number	203 325-0660
Title of 12(b) Security	Ordinary Shares - £1.00 par value per share
Trading Symbol	LIVN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		54,300,835
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001639691

Subsequent Event	9 Months Ended
Subsequent Event	Sep. 30, 2024
Subsequent Events [Abstract]
Subsequent Event	Note 14. Subsequent Event [OPEN FOR SUBSEQUENT EVENT REVIEW THROUGH FILING DATE]

Earnings Per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share

Note 10. Earnings Per Share

The following table presents basic and diluted earnings per share:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Basic income (loss) per share	$	0.61	$	(0.14)	$	0.14	$	0.02
Diluted income (loss) per share	$	0.60	$	(0.14)	$	0.13	$	0.02

The following table presents the reconciliations of net income (loss) and weighted average shares outstanding used in the calculations of basic and diluted earnings per share (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator (1):
Net income (loss) - basic and diluted	$	32,953	$	(7,318)	$	7,343	$	1,207




Denominator:
Weighted average shares outstanding - basic	54,352		53,989		54,194		53,837
Add: Dilutive effect of share-based compensation and convertible debt instruments (1) (2)	233		—		332		270
Weighted average shares outstanding - diluted	54,585		53,989		54,526		54,107

Unaudited Condensed Consolidated Financial Statements (Policies)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of LivaNova and the notes thereto as of and for the three and nine months ended September 30, 2024 and 2023 have been prepared in accordance with U.S. GAAP for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The accompanying condensed consolidated balance sheet of LivaNova at December 31, 2023 has been derived from audited consolidated financial statements contained in LivaNova’s 2023 Form 10-K, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments considered necessary for a fair statement of the operating results of LivaNova and its subsidiaries for the three and nine months ended September 30, 2024 and are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The financial information presented herein should be read in conjunction with the audited consolidated financial statements and notes thereto accompanying LivaNova’s 2023 Form 10-K.

Restructuring

LivaNova initiates restructuring plans to leverage economies of scale, streamline distribution and logistics, and strengthen operational and administrative effectiveness to reduce overall costs.

Derivatives

New Accounting Pronouncements

The following table presents a description of future adoptions of new accounting standards that may have an impact on LivaNova’s consolidated financial statements when adopted:

Issue Date & Standard

Description

Adoption

Assessment

November 2023

ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

This ASU will be effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis.

LivaNova is currently evaluating the effect this standard will have on its consolidated financial statements and related disclosures.

December 2023 ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

This ASU expands annual income tax disclosures primarily related to the rate reconciliation and income taxes paid.

This ASU will be effective for annual periods beginning after December 15, 2024, on a prospective basis, with early adoption and retrospective application permitted.

LivaNova is currently evaluating the effect this standard will have on its consolidated financial statements and related disclosures.

Income Taxes (Details)	3 Months Ended		9 Months Ended
Income Taxes (Details)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Effective tax rate (percent)	25.90%	(268.40%)	76.90%	90.10%

Supplemental Financial Information - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Provision for obsolescence	$ 21.1	$ 24.4
Contract liability	$ 13.7	$ 15.3

Unaudited Condensed Consolidated Financial Statements	9 Months Ended
Unaudited Condensed Consolidated Financial Statements	Sep. 30, 2024
Accounting Policies [Abstract]
Unaudited Condensed Consolidated Financial Statements	Note 1. Unaudited Condensed Consolidated Financial Statements Basis of Presentation The accompanying unaudited condensed consolidated financial statements of LivaNova and the notes thereto as of and for the three and nine months ended September 30, 2024 and 2023 have been prepared in accordance with U.S. GAAP for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The accompanying condensed consolidated balance sheet of LivaNova at December 31, 2023 has been derived from audited consolidated financial statements contained in LivaNova’s 2023 Form 10-K, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments considered necessary for a fair statement of the operating results of LivaNova and its subsidiaries for the three and nine months ended September 30, 2024 and are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The financial information presented herein should be read in conjunction with the audited consolidated financial statements and notes thereto accompanying LivaNova’s 2023 Form 10-K. Cybersecurity Incident As previously disclosed, in November 2023, LivaNova detected a cybersecurity incident that resulted in a disruption of portions of the Company’s information technology systems. Promptly after detecting the issue, LivaNova began an investigation with assistance from external cybersecurity experts and coordinated with law enforcement. The Company quickly implemented remediation measures to mitigate the impact of the incident. The Company also assessed the nature and scope of the affected data, analyzed its legal notification obligations, and notified affected individuals and regulators as required by applicable law. The Company believes the incident is contained and mitigation efforts are complete. Through September 30, 2024, LivaNova incurred direct costs totaling $10.8 million in connection with this cybersecurity incident, including $2.5 million and $8.2 million during the three and nine months ended September 30, 2024, respectively. These costs primarily include external cybersecurity expert and legal fees, system restoration costs, and a $1.2 million provision related to the class action settlement, as discussed in “Note 6. Commitments and Contingencies,” and do not include business interruption losses. The Company expects to incur additional costs related to this incident in the future. LivaNova maintains insurance, including cyber insurance, which is subject to certain retentions and policy limitations that will likely limit the amount that the insurers may pay the Company. LivaNova has filed claims for insurance reimbursement of covered costs and business interruption losses related to this incident and has submitted additional claims and supplemental requests for reimbursement as new costs have been incurred. LivaNova has not yet received reimbursement or recognized a receivable. The Company’s insurance coverage will likely be insufficient to cover all costs and expenses related to this cybersecurity incident or may be unavailable to cover all costs and expenses related to this cybersecurity incident. Significant Accounting Policies LivaNova’s significant accounting policies are included within “Note 2. Basis of Presentation, Use of Accounting Estimates and Significant Accounting Policies” and “Note 3. Revenue Recognition” of LivaNova’s 2023 Form 10-K.

Commitments and Contingencies - Narrative (Details) € in Thousands, $ in Thousands		3 Months Ended	9 Months Ended		12 Months Ended
	Feb. 21, 2022 EUR (€)	Sep. 30, 2024 USD ($) lawsuit	Sep. 30, 2024 USD ($) lawsuit	Sep. 30, 2024 EUR (€)	Dec. 31, 2020	Dec. 31, 2016 EUR (€)	Oct. 30, 2024 claim	Sep. 30, 2024 EUR (€) lawsuit	Dec. 31, 2023 USD ($)	Dec. 31, 2023 EUR (€)	Apr. 30, 2022 EUR (€)	Nov. 30, 2021 EUR (€)	Jan. 31, 2021 repository_site	Mar. 05, 2019 EUR (€)
Other Commitments [Line Items]
Reimbursed legal fees			$ 326,191			€ 292
Subsequent Event
Other Commitments [Line Items]
Number of claim \| claim							65
Pending Litigation
Other Commitments [Line Items]
Estimate of possible loss		$ 639,100	639,100
Judicial Ruling
Other Commitments [Line Items]
Estimate of possible loss \| €														€ 572,100
Saluggia, Italy
Other Commitments [Line Items]
Period to demonstrate financial capacity					5 years
Number of national repository sites \| repository_site													67
Estimate of possible loss		39,600	39,600					€ 35,500	$ 39,700	€ 35,800
Saluggia, Italy \| Minimum
Other Commitments [Line Items]
Estimated provision			39,600	€ 35,500
Saluggia, Italy \| Maximum
Other Commitments [Line Items]
Estimated provision			50,600	€ 45,300
SNIA \| Pending Litigation \| SNIA s.p.a
Other Commitments [Line Items]
Compensation sought			3,800,000
Non-privileged creditor, amount \| €											€ 454,000
SNIA \| Judicial Ruling
Other Commitments [Line Items]
Estimate of possible loss		506,700	506,700									€ 453,600
Payment period	30 days
SNIA \| Judicial Ruling \| Surety Bond
Other Commitments [Line Items]
Bond required to be posted	€ 270,000		301,600
Product Liability
Other Commitments [Line Items]
Bond required to be posted			11,515
Additional liability recorded		7,700	16,800
Loss contingency accrual		19,229	19,229						13,860
Italian MedTech Payback \| Pending Litigation
Other Commitments [Line Items]
Estimate of possible loss		$ 16,800	$ 16,800						$ 8,200
Cyber Litigation \| Pending Litigation
Other Commitments [Line Items]
Number of claim \| lawsuit		6	6					6
Loss contingency accrual		$ 1,200	$ 1,200

Earnings Per Share - Schedule of Basic and Diluted Earnings per Share (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Basic income (loss) per share (in dollars per share)	$ 0.61	$ (0.14)	$ 0.14	$ 0.02
Diluted income (loss) per share (in dollars per share)	$ 0.60	$ (0.14)	$ 0.13	$ 0.02

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

+ Details

Fair Value Measurements - Fair Value of Contingent Consideration by Acquisition (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration	$ 81,240	$ 80,902
Fair Value, Recurring
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration	81,240
Fair Value, Recurring \| Level 3
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration	81,240
Total fair value of Level 3 contingent consideration arrangements	81,240	94,652
ImThera \| Fair Value, Recurring \| Level 3
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration	81,240	80,902
ALung \| Fair Value, Recurring \| Level 3
Business Acquisition, Contingent Consideration [Line Items]
Contingent consideration	$ 0	$ 13,750

Restructuring - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restructuring Cost and Reserve [Line Items]
Charges	$ 1,479	$ 124	$ 12,843	$ 1,055
Employee Severance and Other Termination Costs
Restructuring Cost and Reserve [Line Items]
Charges			10,377
Other
Restructuring Cost and Reserve [Line Items]
Charges			2,466
2024 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Charges	1,500		12,800
2024 Restructuring Plan \| Minimum
Restructuring Cost and Reserve [Line Items]
Expected cost	15,000		15,000
2024 Restructuring Plan \| Maximum
Restructuring Cost and Reserve [Line Items]
Expected cost	20,000		20,000
2024 Restructuring Plan \| Employee Severance and Other Termination Costs \| Minimum
Restructuring Cost and Reserve [Line Items]
Expected cost	10,000		10,000
2024 Restructuring Plan \| Employee Severance and Other Termination Costs \| Maximum
Restructuring Cost and Reserve [Line Items]
Expected cost	12,000		12,000
2024 Restructuring Plan \| Other \| Minimum
Restructuring Cost and Reserve [Line Items]
Expected cost	5,000		5,000
2024 Restructuring Plan \| Other \| Maximum
Restructuring Cost and Reserve [Line Items]
Expected cost	$ 8,000		$ 8,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Supplemental Financial Information (Tables)

9 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Inventories

The following table presents the components of inventories (in thousands):


	September 30, 2024		December 31, 2023
Raw materials	$	74,339	$	81,878
Work-in-process	17,617		12,901
Finished goods	70,308		53,108
	$	162,264	$	147,887

Schedule of Accrued Liabilities

The following table presents the components of accrued liabilities and other (in thousands):


	September 30, 2024		December 31, 2023
Legal and professional costs	$	19,075	$	17,794
Italian MedTech payback measure	16,756		8,223
Contract liabilities	10,279		10,725
Operating lease liabilities	9,477		8,362
Interest payable	7,359		7,840
Research and development costs	6,232		2,462
Provisions for agents, returns, and other	4,570		4,464
Royalty accrual	4,400		4,441
Restructuring liability	3,384		911
Current derivative liabilities	2,245		3,883
Contingent consideration	—		13,750
Other accrued expenses	20,746		24,446
	$	104,523	$	107,301

Schedule of Foreign Exchange and Other Gains (Losses)

The following table presents the items included in foreign exchange and other income/(expense) on the condensed consolidated statements of income (loss) (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Embedded derivative fair value adjustment (2025 Notes) (1)	$	2,829	$	402	$	1,466	$	32,372
Embedded derivative fair value adjustment (2029 Notes) (1)	18,423		—		10,488		—
Capped call fair value adjustment (2025 Notes) (1)	(1,668)		1,635		(10,201)		(10,724)
Capped call fair value adjustment (2029 Notes) (1)	(2,517)		—		(2,040)		—
Impairment of investment in ShiraTronics (2)	—		—		(5,750)		—
Foreign exchange rate fluctuations	220		420		(2,885)		(588)
Interest income	7,139		5,921		21,497		15,985
Other	275		172		10		(235)
	$	24,701	$	8,550	$	12,585	$	36,810

(1)Refer to “Note 4. Fair Value Measurements.”

(2)Impairment of equity investment related to LivaNova’s preferred share ownership converting into common stock during the second quarter of 2024.

Schedule of Cash, Cash Equivalents and Restricted Cash


	September 30, 2024		December 31, 2023
Cash and cash equivalents	$	346,366	$	266,504
Restricted cash (1)	320,210		311,368
	$	666,576	$	577,872

Schedule of Cash, Cash Equivalents and Restricted Cash


	September 30, 2024		December 31, 2023
Cash and cash equivalents	$	346,366	$	266,504
Restricted cash (1)	320,210		311,368
	$	666,576	$	577,872

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Net revenue	$ 318,120	$ 286,113	$ 931,607	$ 843,413
Cost of sales	92,856	84,310	280,088	262,330
Gross profit	225,264	201,803	651,519	581,083
Operating expenses:
Selling, general, and administrative	131,661	134,794	390,642	384,795
Research and development	48,805	46,541	139,206	147,651
Other operating expenses	9,180	16,010	29,641	29,145
Operating income	35,618	4,458	92,030	19,492
Interest expense	(15,878)	(14,986)	(47,303)	(43,232)
Loss on debt extinguishment	0	0	(25,482)	0
Foreign exchange and other income/(expense)	24,701	8,550	12,585	36,810
Income (loss) before tax	44,441	(1,978)	31,830	13,070
Income tax expense	11,525	5,308	24,469	11,776
Income (loss) from equity method investments	37	(32)	(18)	(87)
Net income (loss)	$ 32,953	$ (7,318)	$ 7,343	$ 1,207
Basic income (loss) per share (in dollars per share)	$ 0.61	$ (0.14)	$ 0.14	$ 0.02
Diluted income (loss) per share (in dollars per share)	$ 0.60	$ (0.14)	$ 0.13	$ 0.02
Shares used in computing basic income (loss) per share (in shares)	54,352	53,989	54,194	53,837
Shares used in computing diluted income (loss) per share (in shares)	54,585	53,989	54,526	54,107

Fair Value Measurements - Reconciliation of Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
2025 Notes
Assets Measured on Recurring Basis
Changes in fair value	$ (2,829)	$ (402)	$ (1,466)	$ (32,372)
2029 Notes
Assets Measured on Recurring Basis
Changes in fair value	(18,423)	0	(10,488)	0
Capped Call Derivative Assets \| 2025 Notes
Assets Measured on Recurring Basis
Changes in fair value	1,668	(1,635)	10,201	10,724
Capped Call Derivative Assets \| 2029 Notes
Assets Measured on Recurring Basis
Changes in fair value	2,517	0	2,040	0
Fair Value, Recurring \| Level 3
Liabilities Measured on Recurring Basis
Total at beginning period			94,652
Total at period end	81,240		81,240
Fair Value, Recurring \| Level 3 \| Embedded Derivative Liability (2025 Notes) \| 2025 Notes
Liabilities Measured on Recurring Basis
Total at beginning period		53,705	45,569	85,675
Additions			0
Cash receipt			0
Payment			(36,915)
Changes in fair value	(2,829)	(402)	(1,466)	(32,372)
Total at period end		53,303		53,303
Fair Value, Recurring \| Level 3 \| Embedded Derivative Liability (2025 Notes) \| 2025 Notes \| Embedded Derivative Financial Instruments
Liabilities Measured on Recurring Basis
Total at beginning period	10,017
Total at period end	7,188		7,188
Fair Value, Recurring \| Level 3 \| Embedded Derivative Liability (2025 Notes) \| 2029 Notes
Liabilities Measured on Recurring Basis
Total at beginning period			0
Additions			87,457
Cash receipt			0
Payment			0
Changes in fair value	(18,423)		(10,488)
Fair Value, Recurring \| Level 3 \| Embedded Derivative Liability (2025 Notes) \| 2029 Notes \| Embedded Derivative Financial Instruments
Liabilities Measured on Recurring Basis
Total at beginning period	95,392
Total at period end	76,969		76,969
Fair Value, Recurring \| Level 3 \| Contingent Consideration Liability Arrangements
Liabilities Measured on Recurring Basis
Total at beginning period	81,174	92,626	94,652	85,292
Additions			0
Cash receipt			0
Payment			(13,750)
Changes in fair value	66	(2,818)	338	4,516
Total at period end	81,240	89,808	81,240	89,808
Fair Value, Recurring \| Level 3 \| Capped Call Derivative Assets \| 2025 Notes
Assets Measured on Recurring Basis
As of beginning period		42,034	38,496	54,393
Additions			0
Cash receipt			(22,524)
Payment			0
Changes in fair value	(1,668)	1,635	(10,201)	(10,724)
Total at period end		43,669		43,669
Fair Value, Recurring \| Level 3 \| Capped Call Derivative Assets \| 2025 Notes \| Capped Call
Assets Measured on Recurring Basis
As of beginning period	7,439
Total at period end	5,771		5,771
Fair Value, Recurring \| Level 3 \| Capped Call Derivative Assets \| 2029 Notes
Assets Measured on Recurring Basis
As of beginning period			0
Additions			31,637
Cash receipt			0
Payment			0
Changes in fair value	(2,517)		(2,040)
Fair Value, Recurring \| Level 3 \| Capped Call Derivative Assets \| 2029 Notes \| Capped Call
Assets Measured on Recurring Basis
As of beginning period	32,114
Total at period end	29,597		29,597
Fair Value, Recurring \| Level 3 \| Convertible Notes Receivable
Assets Measured on Recurring Basis
As of beginning period	275	275	275	285
Additions			0
Cash receipt			0
Payment			0
Changes in fair value	(275)	0	(275)	(10)
Total at period end	$ 0	$ 275	$ 0	$ 275

Restructuring - Restructuring Expense by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restructuring Cost and Reserve [Line Items]
Charges	$ 1,479	$ 124	$ 12,843	$ 1,055
Operating Segments \| Neuromodulation
Restructuring Cost and Reserve [Line Items]
Charges	0	(6)	0	554
Other
Restructuring Cost and Reserve [Line Items]
Charges	$ 1,479	$ 130	$ 12,843	$ 501

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Supplemental Financial Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Legal and professional costs	$ 19,075	$ 17,794
Italian MedTech payback measure	16,756	8,223
Contract liabilities	10,279	10,725
Operating lease liabilities	9,477	8,362
Interest payable	7,359	7,840
Research and development costs	6,232	2,462
Provisions for agents, returns, and other	4,570	4,464
Royalty accrual	4,400	4,441
Restructuring liability	3,384	911
Current derivative liabilities	2,245	3,883
Contingent consideration	0	13,750
Other accrued expenses	20,746	24,446
Accrued liabilities and other	$ 104,523	$ 107,301

Fair Value Measurements - Significant Unobservable Inputs (Details) - ImThera - Level 3	Sep. 30, 2024
Discounted cash flow \| Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.077
Discounted cash flow \| Probability of payment
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.85
Monte-Carlo simulation \| Probability of payment
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.85
Monte-Carlo simulation \| Revenue volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.271
Minimum \| Monte-Carlo simulation \| Risk-adjusted discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.146
Minimum \| Monte-Carlo simulation \| Credit risk discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.078
Maximum \| Monte-Carlo simulation \| Risk-adjusted discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.147
Maximum \| Monte-Carlo simulation \| Credit risk discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.082

Stockholders' Equity

9 Months Ended

Sep. 30, 2024

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Note 7. Stockholders' Equity

The tables below present the condensed consolidated statements of stockholders’ equity as of and for the three and nine months ended September 30, 2024 and 2023 (in thousands):


	Ordinary Shares	Ordinary Shares - Amount		Additional Paid-In Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders' Equity
June 30, 2024	54,404	$	83,070	$	2,204,580	$	(195)	$	(52,819)	$	(992,094)	$	1,242,542
Stock-based compensation plans	2	42		8,352		39		—		—		8,433
Net income	—	—		—		—		—		32,953		32,953
Other comprehensive income	—	—		—		—		26,116		—		26,116
September 30, 2024	54,406	$	83,112	$	2,212,932	$	(156)	$	(26,703)	$	(959,141)	$	1,310,044

June 30, 2023	53,904	$	82,441	$	2,169,346	$	(95)	$	(35,579)	$	(975,505)	$	1,240,608

Stock-based compensation plans	—	50		11,315		39		—		—		11,404
Net loss	—	—		—		—		—		(7,318)		(7,318)
Other comprehensive loss	—	—		—		—		(19,222)		—		(19,222)
September 30, 2023	53,904	$	82,491	$	2,180,661	$	(56)	$	(54,801)	$	(982,823)	$	1,225,472


	Ordinary Shares	Ordinary Shares - Amount		Additional Paid-In Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders' Equity
December 31, 2023	53,942	$	82,533	$	2,189,517	$	(55)	$	(27,883)	$	(966,484)	$	1,277,628
Issuance of shares	—	440		—		(440)		—		—		—
Stock-based compensation plans	464	139		23,415		339		—		—		23,893
Net income	—	—		—		—		—		7,343		7,343
Other comprehensive income	—	—		—		—		1,180		—		1,180
September 30, 2024	54,406	$	83,112	$	2,212,932	$	(156)	$	(26,703)	$	(959,141)	$	1,310,044

December 31, 2022	53,852	$	82,424	$	2,157,724	$	(375)	$	(48,119)	$	(984,030)	$	1,207,624

Stock-based compensation plans	52	67		22,937		319		—		—		23,323
Net income	—	—		—		—		—		1,207		1,207
Other comprehensive loss	—	—		—		—		(6,682)		—		(6,682)
September 30, 2023	53,904	$	82,491	$	2,180,661	$	(56)	$	(54,801)	$	(982,823)	$	1,225,472

The tables below present the change in each component of AOCI, net of tax, and the reclassifications out of AOCI into net income for the nine months ended September 30, 2024 and 2023 (in thousands):


	Foreign Currency Translation Adjustments (1)
December 31, 2023	$	(27,883)
Other comprehensive income before reclassifications, before tax	1,180
Tax expense	—
Other comprehensive income net of reclassifications, before tax	1,180



Net current-period other comprehensive income, net of tax	1,180
September 30, 2024	$	(26,703)


	Change in Unrealized Gain on Cash Flow Hedges		Foreign Currency Translation Adjustments (1)		Total
December 31, 2022	$	966	$	(49,085)	$	(48,119)
Other comprehensive loss before reclassifications, before tax	(433)		(5,716)		(6,149)
Tax expense	—		—		—
Other comprehensive loss before reclassifications, net of tax	(433)		(5,716)		(6,149)
Reclassification of gain from accumulated other comprehensive loss, before tax	(533)		—		(533)
Reclassification of tax expense	—		—		—
Reclassification of gain from accumulated other comprehensive loss, after tax	(533)		—		(533)
Net current-period other comprehensive loss, net of tax	(966)		(5,716)		(6,682)
September 30, 2023	$	—	$	(54,801)	$	(54,801)

(1)Taxes were not provided for foreign currency translation adjustments as translation adjustments are related to earnings that are intended to be reinvested in the countries where earned.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478448/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

+ Details

Stockholders' Equity - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 1,242,542	$ 1,240,608	$ 1,277,628	$ 1,207,624
Other comprehensive income (loss) before reclassifications, before tax				(6,149)
Tax expense				0
Other comprehensive income (loss) net of reclassifications, before tax				(6,149)
Reclassification of gain from accumulated other comprehensive loss, before tax				(533)
Reclassification of tax expense				0
Reclassification of gain from accumulated other comprehensive loss, after tax				(533)
Other comprehensive income (loss), net of tax	26,116	(19,222)	1,180	(6,682)
Ending balance	1,310,044	1,225,472	1,310,044	1,225,472
Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(52,819)	(35,579)	(27,883)	(48,119)
Other comprehensive income (loss), net of tax	26,116	(19,222)	1,180	(6,682)
Ending balance	(26,703)	(54,801)	(26,703)	(54,801)
Change in Unrealized Gain on Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance				966
Other comprehensive income (loss) before reclassifications, before tax				(433)
Tax expense				0
Other comprehensive income (loss) net of reclassifications, before tax				(433)
Reclassification of gain from accumulated other comprehensive loss, before tax				(533)
Reclassification of tax expense				0
Reclassification of gain from accumulated other comprehensive loss, after tax				(533)
Other comprehensive income (loss), net of tax				(966)
Ending balance		0		0
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(27,883)	(49,085)
Other comprehensive income (loss) before reclassifications, before tax			1,180	(5,716)
Tax expense			0	0
Other comprehensive income (loss) net of reclassifications, before tax			1,180	(5,716)
Reclassification of gain from accumulated other comprehensive loss, before tax				0
Reclassification of tax expense				0
Reclassification of gain from accumulated other comprehensive loss, after tax				0
Other comprehensive income (loss), net of tax			1,180	(5,716)
Ending balance	$ (26,703)	$ (54,801)	$ (26,703)	$ (54,801)

Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator
Net income (loss) - basic and diluted	$ 32,953	$ (7,318)	$ 7,343	$ 1,207
Denominator
Weighted average shares outstanding - basic (in shares)	54,352	53,989	54,194	53,837
Add: Dilutive effect of share-based compensation and convertible debt instruments (in shares)	233	0	332	270
Weighted average shares outstanding - diluted (in shares)	54,585	53,989	54,526	54,107
Stock Compensation Plan
Denominator
Antidilutive securities excluded from computation of earnings per share amount (in shares)	3,100	4,000	2,800	3,100

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements 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, 2024		Fair Value Measurements Using Inputs Considered as:
				Level 1		Level 2		Level 3
Assets:

Derivative assets - capped call derivatives (2025 Notes)	Long-term derivative assets	$	5,771	$	—	$	—	$	5,771
Derivative assets - capped call derivatives (2029 Notes)	Long-term derivative assets	29,597		—		—		29,597

		$	35,368	$	—	$	—	$	35,368
Liabilities:
Derivative liabilities - freestanding instruments (FX)	Accrued liabilities and other	$	2,245	$	—	$	2,245	$	—
Derivative liabilities - embedded derivative (2025 Notes)	Long-term derivative liabilities	7,188		—		—		7,188
Derivative liabilities - embedded derivative (2029 Notes)	Long-term derivative liabilities	76,969		—		—		76,969
Contingent consideration arrangement	Contingent consideration	81,240		—		—		81,240
		$	167,642	$	—	$	2,245	$	165,397


	Balance Sheet Location	December 31, 2023		Fair Value Measurements Using Inputs Considered as:
				Level 1		Level 2		Level 3
Assets:
Derivative assets - capped call derivatives (2025 Notes)	Long-term derivative assets	$	38,496	$	—	$	—	$	38,496
Convertible notes receivable	Other assets	275		—		—		275
		$	38,771	$	—	$	—	$	38,771
Liabilities:
Derivative liabilities - freestanding instruments (FX)	Accrued liabilities and other	$	3,883	$	—	$	3,883	$	—
Derivative liabilities - embedded derivative (2025 Notes)	Long-term derivative liabilities	45,569		—		—		45,569
Contingent consideration arrangement	Contingent consideration	80,902		—		—		80,902
Contingent consideration arrangement	Accrued liabilities and other	13,750		—		—		13,750
		$	144,104	$	—	$	3,883	$	140,221

Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements

The following tables present reconciliations of recurring fair value measurements that use significant unobservable inputs (Level 3) (in thousands):


	Three Months Ended September 30, 2024
	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 Arrangement
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


	Three Months Ended September 30, 2023
	Capped Call Derivative Assets (2025 Notes)		Convertible Notes Receivable		Embedded Derivative Liability (2025 Notes)		Contingent Consideration Liability Arrangements
June 30, 2023	$	42,034	$	275	$	53,705	$	92,626



Changes in fair value	1,635		—		(402)		(2,818)
September 30, 2023	$	43,669	$	275	$	53,303	$	89,808


	Nine Months Ended September 30, 2024
	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


	Nine Months Ended September 30, 2023
	Capped Call Derivative Assets (2025 Notes)		Convertible Notes Receivable		Embedded Derivative Liability (2025 Notes)		Contingent Consideration Liability Arrangements
December 31, 2022	$	54,393	$	285	$	85,675	$	85,292



Changes in fair value	(10,724)		(10)		(32,372)		4,516
September 30, 2023	$	43,669	$	275	$	53,303	$	89,808

Summary of Stock Price Volatility, Fair Value, and Hypothetical Changes

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:


September 30, 2024	Capped Call Derivative Assets (2025 Notes)		Capped Call Derivative Assets (2029 Notes)		Embedded Derivative Liability (2025 Notes)		Embedded Derivative Liability (2029 Notes)
Stock price volatility (1)	40	%	37	%	40	%	37	%

(1) The Embedded Derivatives and Capped Call Transactions 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 Derivatives and Capped Call Transactions 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 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.

Schedule of Fair Value of Contingent Consideration Arrangements by Acquisition

The following table presents the fair value of LivaNova’s Level 3 contingent consideration arrangements by acquisition (in thousands):


	September 30, 2024		December 31, 2023
ImThera	$	81,240	$	80,902
ALung	—		13,750
	$	81,240	$	94,652

Significant Unobservable Inputs Related to Contingent Consideration

These arrangements are Level 3 fair value measurements and included the following significant unobservable inputs as of September 30, 2024:

ImThera Acquisition

Valuation Technique

Unobservable Input

Inputs

Regulatory milestone-based payment

Discounted cash flow

Discount rate

7.7%

Probability of payment

85%

Projected payment year

2026

Sales-based earnout

Monte-Carlo simulation

Risk-adjusted discount rate

14.6% - 14.7%

Credit risk discount rate

7.8% - 8.2%

Revenue volatility

27.1%

Probability of payment

85%

Projected years of earnout

2027 - 2030

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period 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 asset.

+ References + Details

Derivatives and Risk Management - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 08, 2024	Dec. 31, 2023	Jun. 30, 2020
2025 Notes \| Senior Notes
Derivative [Line Items]
Conversion price (in dollars per share)	$ 79.27		$ 79.27
Aggregate principal amount repurchased					$ 230.0		$ 230.0
Capped Call
Derivative [Line Items]
Derivative, cap price per share	100.00		100.00
Capped Call \| 2025 Notes
Derivative [Line Items]
Conversion price (in dollars per share)	60.98		60.98
Capped Call \| 2029 Notes
Derivative [Line Items]
Derivative, cap price per share	94.28		94.28
Conversion price (in dollars per share)	$ 69.40		$ 69.40
Foreign Exchange Contract
Derivative [Line Items]
Net (losses) gains on derivative	$ (5.0)	$ 5.0	$ (0.1)	$ 4.1
Derivatives Not Designated as Hedging Instruments: \| Foreign Exchange Contract
Derivative [Line Items]
Notional amount	$ 158.9		$ 158.9			$ 223.4

Derivatives and Risk Management - Schedule of Cash Flow Hedges Included in AOCI (Details) - Designated as Hedging Instrument - Cash Flow Hedging - Interest rate swap contracts - Interest Expense $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Loss Recognized in OCI	$ (433)
Gain Reclassified from AOCI to Earnings	$ 533

Restructuring

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring

Note 2. Restructuring

From time to time, LivaNova initiates restructuring plans to leverage economies of scale, streamline distribution and logistics, and strengthen operational and administrative effectiveness to reduce overall costs.

On January 5, 2024, the Board of Directors of LivaNova approved the 2024 Restructuring Plan to enhance the Company’s focus on its core Cardiopulmonary and Neuromodulation segments. The main component of the 2024 Restructuring Plan was to wind down the ACS segment, which the Company anticipates will be substantially complete by the end of 2024. In connection with the 2024 Restructuring Plan, LivaNova expects to incur pre-tax restructuring charges in the range of $15.0 million to $20.0 million. The anticipated charges are comprised of $10.0 million to $12.0 million in severance expenses and retention bonuses and $5.0 million to $8.0 million in other expenses, including lease termination, facilities remediation, and asset disposal expenses. Retention bonuses will be earned over the period of service, which is expected to be over the full year of 2024. All future cash payments related to these restructuring charges are expected to be substantially paid out during 2024. These estimates are subject to change. LivaNova recognized restructuring expense under the 2024 Restructuring Plan of $1.5 million and $12.8 million in other operating expenses on its condensed consolidated statements of income (loss) for the three and nine months ended September 30, 2024, respectively.


	Employee Severance and Other Termination Costs		Other		Total
Balance at December 31, 2023 (1)	$	911	$	—	$	911
Charges	10,377		2,466		12,843
Cash payments	(7,868)		(2,006)		(9,874)
Balance at September 30, 2024	$	3,420	$	460	$	3,880

(1)Represents restructuring plans initiated prior to 2024.

The following table presents restructuring expense by reportable segment (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023

Neuromodulation	$	—	$	(6)	$	—	$	554
Other (1)	1,479		130		12,843		501
	$	1,479	$	124	$	12,843	$	1,055

(1)Other primarily includes restructuring expense not allocated to segments.

Geographic and Segment Information - Assets & Expenditures by Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Assets	$ 2,521,958		$ 2,521,958		$ 2,429,563
Capital expenditures	14,080	$ 8,182	34,278	$ 22,088
Operating Segments \| Cardiopulmonary
Segment Reporting Information [Line Items]
Assets	966,769		966,769		964,735
Capital expenditures	7,383	4,144	18,657	11,485
Operating Segments \| Neuromodulation
Segment Reporting Information [Line Items]
Assets	635,272		635,272		647,391
Capital expenditures	1,379	597	2,380	1,089
Other
Segment Reporting Information [Line Items]
Assets	919,917		919,917		$ 817,437
Capital expenditures	$ 5,318	$ 3,441	$ 13,241	$ 9,514

- Definition

Amount of asset recognized for present right to economic benefit.

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+ Details

Supplemental Financial Information - Cash, Cash Equivalents, Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022	Mar. 18, 2022
Restricted Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents	$ 346,366	$ 266,504
Restricted cash	320,210	311,368
Total	$ 666,576	$ 577,872	$ 532,722	$ 515,618
Bridge Loan \| Judicial Ruling \| SNIA
Restricted Cash and Cash Equivalents Items [Line Items]
Percentage of cash collateral required as guarantee					105.00%

Derivatives and Risk Management (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Cash Flow Hedges Included in AOCI

The pre-tax gains (losses) for derivative contracts designated as cash flow hedges recognized in OCI and the amount reclassified to earnings from AOCI were as follows (in thousands):

Nine Months Ended September 30, 2023

Description of Derivative Contract

Location in Earnings of Reclassified Gain or Loss

Loss Recognized in OCI

Gain Reclassified from AOCI to Earnings

Interest rate swap contracts

Interest expense

(433)

533

Schedule of Fair Value of Derivative Instruments in Statement of Financial Position

The following tables present the fair value and the location of derivative contracts reported on the condensed consolidated balance sheets (in thousands):

Derivative Assets

Derivative Liabilities

September 30, 2024

Balance Sheet Location

Fair Value (1)

Balance Sheet Location

Fair Value (1)

Derivatives Not Designated as Hedging Instruments:

Capped call derivatives (2025 Notes)

Long-term derivative assets

5,771

Capped call derivatives (2029 Notes)

Long-term derivative assets

29,597

Embedded derivative (2025 Notes)

Long-term derivative liabilities

7,188

Embedded derivative (2029 Notes)

Long-term derivative liabilities

76,969

FX derivative contracts

Prepaid expenses and other current assets

—

Accrued liabilities and other

2,245

Total derivatives not designated as hedging instruments

35,368

86,402

Derivative Assets

Derivative Liabilities

December 31, 2023

Balance Sheet Location

Fair Value (1)

Balance Sheet Location

Fair Value (1)

Derivatives Not Designated as Hedging Instruments:

Capped call derivatives (2025 Notes)

Long-term derivative assets

38,496

Embedded derivative (2025 Notes)

Long-term derivative liabilities

45,569

FX derivative contracts

Accrued liabilities and other

3,883

Total derivatives not designated as hedging instruments

38,496

49,452

(1)For the classification of inputs used to evaluate the fair value of LivaNova’s derivatives, refer to “Note 4. Fair Value Measurements.”

New Accounting Pronouncements

9 Months Ended

Sep. 30, 2024

Accounting Standards Update and Change in Accounting Principle [Abstract]

New Accounting Pronouncements

Note 13. New Accounting Pronouncements

The following table presents a description of future adoptions of new accounting standards that may have an impact on LivaNova’s consolidated financial statements when adopted:

Issue Date & Standard

Description

Adoption

Assessment

November 2023

ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

This ASU will be effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis.

LivaNova is currently evaluating the effect this standard will have on its consolidated financial statements and related disclosures.

December 2023 ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

This ASU expands annual income tax disclosures primarily related to the rate reconciliation and income taxes paid.

This ASU will be effective for annual periods beginning after December 15, 2024, on a prospective basis, with early adoption and retrospective application permitted.

LivaNova is currently evaluating the effect this standard will have on its consolidated financial statements and related disclosures.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 27: http://www.xbrl.org/2003/role/disclosureRef
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2024

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity

The tables below present the condensed consolidated statements of stockholders’ equity as of and for the three and nine months ended September 30, 2024 and 2023 (in thousands):


	Ordinary Shares	Ordinary Shares - Amount		Additional Paid-In Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders' Equity
June 30, 2024	54,404	$	83,070	$	2,204,580	$	(195)	$	(52,819)	$	(992,094)	$	1,242,542
Stock-based compensation plans	2	42		8,352		39		—		—		8,433
Net income	—	—		—		—		—		32,953		32,953
Other comprehensive income	—	—		—		—		26,116		—		26,116
September 30, 2024	54,406	$	83,112	$	2,212,932	$	(156)	$	(26,703)	$	(959,141)	$	1,310,044

June 30, 2023	53,904	$	82,441	$	2,169,346	$	(95)	$	(35,579)	$	(975,505)	$	1,240,608

Stock-based compensation plans	—	50		11,315		39		—		—		11,404
Net loss	—	—		—		—		—		(7,318)		(7,318)
Other comprehensive loss	—	—		—		—		(19,222)		—		(19,222)
September 30, 2023	53,904	$	82,491	$	2,180,661	$	(56)	$	(54,801)	$	(982,823)	$	1,225,472


	Ordinary Shares	Ordinary Shares - Amount		Additional Paid-In Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders' Equity
December 31, 2023	53,942	$	82,533	$	2,189,517	$	(55)	$	(27,883)	$	(966,484)	$	1,277,628
Issuance of shares	—	440		—		(440)		—		—		—
Stock-based compensation plans	464	139		23,415		339		—		—		23,893
Net income	—	—		—		—		—		7,343		7,343
Other comprehensive income	—	—		—		—		1,180		—		1,180
September 30, 2024	54,406	$	83,112	$	2,212,932	$	(156)	$	(26,703)	$	(959,141)	$	1,310,044

December 31, 2022	53,852	$	82,424	$	2,157,724	$	(375)	$	(48,119)	$	(984,030)	$	1,207,624

Stock-based compensation plans	52	67		22,937		319		—		—		23,323
Net income	—	—		—		—		—		1,207		1,207
Other comprehensive loss	—	—		—		—		(6,682)		—		(6,682)
September 30, 2023	53,904	$	82,491	$	2,180,661	$	(56)	$	(54,801)	$	(982,823)	$	1,225,472

Schedule of Accumulated Other Comprehensive Income (Loss)

The tables below present the change in each component of AOCI, net of tax, and the reclassifications out of AOCI into net income for the nine months ended September 30, 2024 and 2023 (in thousands):


	Foreign Currency Translation Adjustments (1)
December 31, 2023	$	(27,883)
Other comprehensive income before reclassifications, before tax	1,180
Tax expense	—
Other comprehensive income net of reclassifications, before tax	1,180



Net current-period other comprehensive income, net of tax	1,180
September 30, 2024	$	(26,703)


	Change in Unrealized Gain on Cash Flow Hedges		Foreign Currency Translation Adjustments (1)		Total
December 31, 2022	$	966	$	(49,085)	$	(48,119)
Other comprehensive loss before reclassifications, before tax	(433)		(5,716)		(6,149)
Tax expense	—		—		—
Other comprehensive loss before reclassifications, net of tax	(433)		(5,716)		(6,149)
Reclassification of gain from accumulated other comprehensive loss, before tax	(533)		—		(533)
Reclassification of tax expense	—		—		—
Reclassification of gain from accumulated other comprehensive loss, after tax	(533)		—		(533)
Net current-period other comprehensive loss, net of tax	(966)		(5,716)		(6,682)
September 30, 2023	$	—	$	(54,801)	$	(54,801)

(1)Taxes were not provided for foreign currency translation adjustments as translation adjustments are related to earnings that are intended to be reinvested in the countries where earned.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) $ in Thousands	Sep. 30, 2024 USD ($) shares	Sep. 30, 2024 £ / shares	Dec. 31, 2023 USD ($) shares	Dec. 31, 2023 £ / shares
Statement of Financial Position [Abstract]
Allowance for doubtful accounts \| $	$ 12,129		$ 12,019
Ordinary shares, par value (in pounds per share) \| £ / shares		£ 1.00		£ 1.00
Ordinary shares issued (in shares)	54,405,751		53,942,151
Ordinary shares outstanding (in shares)	54,300,048		53,918,222
Treasury stock (in shares)	105,703		23,929

Fair Value Measurements

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 4. Fair Value Measurements

LivaNova reviews its fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities in the fair value hierarchy. There were no transfers between Level 1, Level 2, or Level 3 during the nine months ended September 30, 2024 and 2023.

Assets and Liabilities Measured at Fair Value 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, 2024		Fair Value Measurements Using Inputs Considered as:
				Level 1		Level 2		Level 3
Assets:

Derivative assets - capped call derivatives (2025 Notes)	Long-term derivative assets	$	5,771	$	—	$	—	$	5,771
Derivative assets - capped call derivatives (2029 Notes)	Long-term derivative assets	29,597		—		—		29,597

		$	35,368	$	—	$	—	$	35,368
Liabilities:
Derivative liabilities - freestanding instruments (FX)	Accrued liabilities and other	$	2,245	$	—	$	2,245	$	—
Derivative liabilities - embedded derivative (2025 Notes)	Long-term derivative liabilities	7,188		—		—		7,188
Derivative liabilities - embedded derivative (2029 Notes)	Long-term derivative liabilities	76,969		—		—		76,969
Contingent consideration arrangement	Contingent consideration	81,240		—		—		81,240
		$	167,642	$	—	$	2,245	$	165,397


	Balance Sheet Location	December 31, 2023		Fair Value Measurements Using Inputs Considered as:
				Level 1		Level 2		Level 3
Assets:
Derivative assets - capped call derivatives (2025 Notes)	Long-term derivative assets	$	38,496	$	—	$	—	$	38,496
Convertible notes receivable	Other assets	275		—		—		275
		$	38,771	$	—	$	—	$	38,771
Liabilities:
Derivative liabilities - freestanding instruments (FX)	Accrued liabilities and other	$	3,883	$	—	$	3,883	$	—
Derivative liabilities - embedded derivative (2025 Notes)	Long-term derivative liabilities	45,569		—		—		45,569
Contingent consideration arrangement	Contingent consideration	80,902		—		—		80,902
Contingent consideration arrangement	Accrued liabilities and other	13,750		—		—		13,750
		$	144,104	$	—	$	3,883	$	140,221

Reconciliation of Level 3 Assets and Liabilities

The following tables present reconciliations of recurring fair value measurements that use significant unobservable inputs (Level 3) (in thousands):


	Three Months Ended September 30, 2024
	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 Arrangement
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


	Three Months Ended September 30, 2023
	Capped Call Derivative Assets (2025 Notes)		Convertible Notes Receivable		Embedded Derivative Liability (2025 Notes)		Contingent Consideration Liability Arrangements
June 30, 2023	$	42,034	$	275	$	53,705	$	92,626



Changes in fair value	1,635		—		(402)		(2,818)
September 30, 2023	$	43,669	$	275	$	53,303	$	89,808


	Nine Months Ended September 30, 2024
	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


	Nine Months Ended September 30, 2023
	Capped Call Derivative Assets (2025 Notes)		Convertible Notes Receivable		Embedded Derivative Liability (2025 Notes)		Contingent Consideration Liability Arrangements
December 31, 2022	$	54,393	$	285	$	85,675	$	85,292



Changes in fair value	(10,724)		(10)		(32,372)		4,516
September 30, 2023	$	43,669	$	275	$	53,303	$	89,808

Stock Price Volatility

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:


September 30, 2024	Capped Call Derivative Assets (2025 Notes)		Capped Call Derivative Assets (2029 Notes)		Embedded Derivative Liability (2025 Notes)		Embedded Derivative Liability (2029 Notes)
Stock price volatility (1)	40	%	37	%	40	%	37	%

Contingent Consideration Arrangements

The following table presents the fair value of LivaNova’s Level 3 contingent consideration arrangements by acquisition (in thousands):


	September 30, 2024		December 31, 2023
ImThera	$	81,240	$	80,902
ALung	—		13,750
	$	81,240	$	94,652

The ImThera business combination involved contingent consideration arrangements comprised of potential cash payments upon the achievement of a certain regulatory milestone and a sales-based earnout associated with sales of products. The sales-based earnouts are valued using projected sales from LivaNova’s internal strategic plan. These arrangements are Level 3 fair value measurements and included the following significant unobservable inputs as of September 30, 2024:

ImThera Acquisition

Valuation Technique

Unobservable Input

Inputs

Regulatory milestone-based payment

Discounted cash flow

Discount rate

7.7%

Probability of payment

85%

Projected payment year

2026

Sales-based earnout

Monte-Carlo simulation

Risk-adjusted discount rate

14.6% - 14.7%

Credit risk discount rate

7.8% - 8.2%

Revenue volatility

27.1%

Probability of payment

85%

Projected years of earnout

2027 - 2030

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

Geographic and Segment Information

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Geographic and Segment Information

Note 11. Geographic and Segment Information

Segment Information

LivaNova identifies operating segments based on how it manages, evaluates, and internally reports its business activities to develop and execute its strategy, allocate resources, and assess performance. Prior to the first quarter of 2024, LivaNova operated through three segments: Cardiopulmonary, Neuromodulation, and ACS. During the first quarter of 2024, the Company reorganized its operating and reporting structure upon initiating the 2024 Restructuring Plan. This involved transitioning all ACS standalone cannulae and accessories, including ProtekDuo and transseptal (TandemHeart) cannulae, into its Cardiopulmonary segment. Operations for other ACS products, including LifeSPARC and Hemolung systems, will be discontinued by the end of 2024. For additional information, refer to “Note 2. Restructuring.” This restructuring, along with changes in how the Company’s CODM regularly reviews information, allocates resources, and assesses performance, resulted in modifications to LivaNova’s reportable segments. Specifically, LivaNova’s former ACS segment is now included in “Other,” excluding the ACS standalone cannulae and accessories business, which is now included in the Cardiopulmonary reportable segment. As a result, LivaNova now has two reportable segments: Cardiopulmonary and Neuromodulation. Net revenue of the Company’s reportable segments includes revenues from the sale of products that each reportable segment develops and manufactures or distributes. The segment financial information presented herein reflects these changes for all periods presented.

LivaNova’s Cardiopulmonary segment is engaged in the design, development, manufacture, marketing, and selling of cardiopulmonary products, including heart-lung machines, oxygenators, autotransfusion systems, perfusion tubing systems, cannulae, and other related accessories.

LivaNova’s Neuromodulation segment is engaged in the design, development, manufacture, marketing, and selling of devices that deliver neuromodulation therapy for treating DRE and DTD. Neuromodulation products include the VNS Therapy System, which consists of an implantable pulse generator, a lead that connects the generator to the vagus nerve, and other accessories. It also includes the development and management of clinical testing of LivaNova’s aura6000 System for treating OSA. LivaNova’s Neuromodulation segment also includes costs associated with the Company’s former heart failure program, which the Company wound down during 2023.

LivaNova operates under three geographic regions: U.S., Europe, and Rest of World. The following table presents net revenue by operating segment and geographic region (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cardiopulmonary
United States	$	62,504	$	52,281	$	177,954	$	141,891
Europe (1)	40,894		35,484		120,387		111,208
Rest of World	68,841		61,190		203,503		185,713
	172,239		148,955		501,844		438,812
Neuromodulation
United States	112,906		102,475		330,518		301,029
Europe (1)	11,922		12,661		40,919		41,066
Rest of World	15,033		13,744		45,172		40,689
	139,861		128,880		416,609		382,784




Other Revenue (2)	6,020		8,278		13,154		21,817
Totals (3)
United States	179,828		161,583		519,985		461,823
Europe (1)	52,815		48,129		158,414		152,231
Rest of World	85,477		76,401		253,208		229,359
	$	318,120	$	286,113	$	931,607	$	843,413

(1)Includes countries in Europe where the Company has a direct sales presence. Countries in Europe where sales are made through distributors are included in “Rest of World.”

(2)“Other Revenue” includes revenue from the Company’s former ACS reportable segment, as discussed above, as well as rental and site services income not allocated to segments.

(3)No single customer represented over 10% of the Company’s consolidated net revenue. No country’s net revenue exceeded 10% of the Company’s consolidated net revenue except for the U.S.

LivaNova defines segment income as operating income before restructuring expense, amortization of intangible assets, merger and integration expense, and other income and expense not allocated to segments. Other income and expense not allocated to segments primarily includes corporate expense, rental income, and the results of LivaNova’s former ACS reportable segment, as discussed above. The following table presents a reconciliation of segment income to consolidated income (loss) before tax (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cardiopulmonary	$	21,669	$	(2,192)	$	56,007	$	19,794
Neuromodulation	49,533		41,930		151,023		107,084
Segment income	71,202		39,738		207,030		126,878



Other income/(expense)	(35,584)		(35,280)		(115,000)		(107,386)
Operating income	35,618		4,458		92,030		19,492

Interest expense (1)	(15,878)		(14,986)		(47,303)		(43,232)
Loss on debt extinguishment	—		—		(25,482)		—
Foreign exchange and other income/(expense)	24,701		8,550		12,585		36,810
Income (loss) before tax	$	44,441	$	(1,978)	$	31,830	$	13,070

The following table presents assets by reportable segment (in thousands):


	September 30, 2024		December 31, 2023
Cardiopulmonary	$	966,769	$	964,735
Neuromodulation	635,272		647,391
Other assets (1)	919,917		817,437
	$	2,521,958	$	2,429,563

(1)“Other assets” primarily includes corporate assets not allocated to segments and the assets of LivaNova’s former ACS reportable segment.

The following table presents capital expenditures by reportable segment (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cardiopulmonary	$	7,383	$	4,144	$	18,657	$	11,485
Neuromodulation	1,379		597		2,380		1,089
Other capital expenditures (1)	5,318		3,441		13,241		9,514
	$	14,080	$	8,182	$	34,278	$	22,088

(1)“Other capital expenditures” primarily includes corporate capital expenditures not allocated to segments and capital expenditures of LivaNova’s former ACS reportable segment.

The following table presents changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2024 (in thousands):


	Cardiopulmonary		Neuromodulation		Total
December 31, 2023	$	384,187	$	398,754	$	782,941

Foreign currency adjustments	(1,388)		—		(1,388)
September 30, 2024	$	382,799	$	398,754	$	781,553

Geographic Information

The following table presents property, plant, and equipment, net by geographic region (in thousands):


	September 30, 2024		December 31, 2023
United States	$	73,323	$	62,701
Europe	89,226		85,606
Rest of World	6,768		5,874
	$	169,317	$	154,181

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Financing Arrangements

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Financing Arrangements

Note 5. Financing Arrangements

The following table presents a summary of LivaNova’s long-term debt obligations (in thousands, except interest rates):


	September 30, 2024		December 31, 2023		Maturity	Interest Rate
Term Facilities	$	316,803	$	328,459	July 2027	8.66%
2029 Notes	253,863		—		March 2029	2.50%
2025 Notes	52,919		255,500		December 2025	3.00%
Bank of America, U.S.	1,500		1,500		January 2025	8.19%
Other	455		568
Total long-term facilities	625,540		586,027
Less: Current portion of long-term debt	21,253		17,484
Total long-term debt obligations	$	604,287	$	568,543

Revolving Credit and Term Facilities

The outstanding principal amount of LivaNova’s short-term unsecured revolving credit agreements and other agreements with various banks was $0.7 million at September 30, 2024 and $0.6 million at December 31, 2023, with an average interest rate of 4.94% and loan terms ranging from overnight to 364 days as of September 30, 2024.

On March 8, 2024, LivaNova and LivaNova USA entered into Incremental Facility Amendment No. 3, which provides for LivaNova USA to obtain revolving commitments in an aggregate principal amount of $225.0 million. The $225.0 million revolving facility is subject to the terms and conditions of the 2021 First Lien Credit Agreement, as amended thereof, and replaced the previously existing $125.0 million revolving facility under the 2021 First Lien Credit Agreement. The $225.0 million revolving facility is available for working capital and other general corporate purposes and, if drawn, can be repaid at any time without premium or penalty. The $225.0 million revolving facility matures on March 8, 2029. There were no

outstanding borrowings under the revolving facilities under the 2021 First Lien Credit Agreement as of September 30, 2024 and December 31, 2023.

The 2021 First Lien Credit Agreement, as amended, also requires the payment of certain commitment fees on the unused portion of the commitments, at a variable percentage based on LivaNova’s Total Net Leverage Ratio. As of September 30, 2024 and December 31, 2023, the applicable commitment fee percentage was 0.5% per annum.

The 2021 First Lien Credit Agreement, as amended, contains customary representations, warranties, and covenants, including the requirement to maintain a Senior Secured First Lien Net Leverage Ratio of not more than 3.50 to 1.00, calculated as the ratio of Consolidated Senior Secured First Lien Net Indebtedness to Consolidated EBITDA, as defined in the credit agreement, for the period of four consecutive fiscal quarters ended on the calculation date and an Interest Coverage Ratio of not less than 2.00 to 1.00, calculated as the ratio of Consolidated EBITDA to Consolidated Interest Expense, both as defined in the credit agreement, for the period of four consecutive fiscal quarters ended on the calculation date. As of September 30, 2024, the Company was in compliance with the financial covenants contained in the 2021 First Lien Credit Agreement.

Debt discount and issuance costs related to the Initial Term Facility were $9.6 million. The unamortized debt discount and issuance costs related to the Initial Term Facility were $5.4 million and $6.8 million as of September 30, 2024 and December 31, 2023, respectively.

2029 Notes Issuance and 2025 Notes Repurchase Transactions

On March 8, 2024, LivaNova issued $345.0 million aggregate principal amount of 2.50% notes due 2029 by private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act, which included exercise in full of the initial purchasers’ option to purchase up to an additional $45.0 million principal amount of the 2029 Notes. The 2029 Notes are senior unsecured obligations of the Company. The Company used part of the proceeds from the issuance of the 2029 Notes to repurchase $230.0 million aggregate principal amount of the 2025 Notes in privately-negotiated transactions for an aggregate cash repurchase consideration of $270.5 million.

The 2025 Notes Repurchase Transaction was treated as a debt extinguishment. The carrying value of the related 2025 Notes, which included the unamortized debt discount and issuance costs and the fair value of the embedded derivative, was derecognized, and the 2029 Notes issued were recognized at fair value. The difference between the consideration used to extinguish the 2025 Notes, the carrying value of the 2025 Notes, and the fair value of the embedded derivative was recognized as a loss on debt extinguishment of $25.5 million on LivaNova’s condensed consolidated statements of income (loss) during the nine months ended September 30, 2024. Third-party costs incurred directly related to the 2025 Notes Repurchase Transaction were deferred and capitalized as additional debt issuance costs to be amortized on the 2029 Notes.

Contemporaneously with the 2025 Notes Repurchase Transaction, the Company and the financial institutions party to the 2025 Capped Calls agreed to terminate a portion of the 2025 Capped Calls in a notional amount corresponding to the amount of 2025 Notes repurchased. The Company received $22.5 million in cash consideration, the fair value of the terminated portion, upon settlement. The terms of the remaining 2025 Capped Calls remain unchanged and continue to be classified as long-term derivative assets. For additional information on LivaNova’s capped call and embedded derivatives, refer to “Note 3. Derivatives and Risk Management.”

2029 Notes

The sale of the 2029 Notes resulted in $332.1 million in net proceeds to the Company after deducting issuance costs. Interest is payable semiannually in arrears on March 15 and September 15 of each year. The effective interest rate of the 2029 Notes was 9.79% as of September 30, 2024. The 2029 Notes mature on March 15, 2029, unless earlier repurchased, redeemed or converted.

Debt discount and issuance costs related to the 2029 Notes were $99.6 million, including $87.5 million of discount attributable to the embedded derivative and $12.1 million of new debt issuance costs related to the 2029 Notes. The debt discount and issuance costs are amortized as interest expense using the effective interest method over the term of the 2029 Notes. The unamortized debt discount and issuance costs related to the 2029 Notes as of September 30, 2024 were $91.1 million.

Holders are entitled to convert the 2029 Notes at any time during specified periods, at their option, subject to certain conditions. This includes the right to convert the 2029 Notes during any calendar quarter if the last reported sale price of LivaNova’s ordinary shares is greater than or equal to 130% of the conversion price, or $90.22 per share, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter. The initial conversion rate for the 2029 Notes is 14.4085 ordinary shares per $1,000 principal amount of 2029 Notes (equivalent to an initial conversion price of $69.40 per share). The conversion rate is subject to adjustment in certain circumstances, as set forth in the indenture governing the 2029 Notes.

As of September 30, 2024, the conditions for conversion were not met. As a result, the Company included its obligations from the 2029 Notes and the associated embedded derivative as long-term liabilities on the condensed consolidated balance sheet as of September 30, 2024, and the 2029 Notes are not convertible during the three months ending December 31, 2024.

Upon any conversion of the 2029 Notes, LivaNova will be required to pay cash up to the aggregate principal amount of the 2029 Notes to be converted and may elect to settle the conversion obligation in excess of the aggregate principal amount of the 2029 Notes being converted in cash, shares, or a combination of the two.

On or after December 15, 2028, holders may convert their 2029 Notes at their option at any time until the close of business on the second Scheduled Trading Day (as defined in the indenture governing the 2029 Notes) immediately preceding the maturity date.

The Company may redeem the 2029 Notes, in whole or in part, at its option on or after March 22, 2027 for cash if the last reported sale price of LivaNova’s ordinary share has been at least 130% of the conversion price, or $90.22 per share, then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. Additionally, the Company may redeem the 2029 Notes at its option, prior to the stated maturity, in whole but not in part, in connection with certain tax-related events.

Holders may require the Company to repurchase their 2029 Notes upon the occurrence of a Fundamental Change (as defined in the indenture governing the 2029 Notes) at a repurchase price equal to the principal amount thereof plus accrued and unpaid interest to, but excluding, the repurchase date. In addition, in connection with certain corporate events or if the Company issues a notice of redemption, the Company will, under certain circumstances, increase the conversion rate for holders who elect to convert their 2029 Notes in connection with such corporate event or during the relevant redemption period.

The indenture governing the 2029 Notes contains customary terms and covenants, including that upon certain events of default occurring and continuing, either the Trustee (as defined in the indenture governing the 2029 Notes) or holders of at least 25% in aggregate principal amount of the 2029 Notes then outstanding may declare the entire principal amount of all the 2029 Notes, and accrued and unpaid interest on such 2029 Notes, to be immediately due and payable. Upon events of default in connection with specified bankruptcy events involving the Company, the 2029 Notes will become due and payable immediately.

2025 Notes

On June 17, 2020, LivaNova USA issued $287.5 million aggregate principal amount of 3.00% notes due 2025 by private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The 2025 Notes are senior unsecured obligations of the Company. The sale of the 2025 Notes resulted in $278.0 million in net proceeds to the Company after deducting issuance costs. Interest is payable semiannually in arrears on June 15 and December 15 of each year. On March 8, 2024, in connection with the issuance of the 2029 Notes, the Company used part of the net proceeds to repurchase $230.0 million aggregate principal amount of the 2025 Notes in privately-negotiated transactions. For additional information, refer to “2029 Notes Issuance and 2025 Notes Repurchase Transactions” above. The effective interest rate of the 2025 Notes was 9.16% as of September 30, 2024. The 2025 Notes mature on December 15, 2025, unless earlier exchanged, repurchased, or redeemed.

Debt discount and issuance costs related to the 2025 Notes were $82.0 million, including $75.0 million of discount attributable to the embedded derivative and $7.0 million of allocated issuance costs to the 2025 Notes related to legal, bank, and accounting fees. The debt discount and issuance costs are amortized as interest expense using the effective interest method over the term of the 2025 Notes. Upon the closing of the 2025 Notes Repurchase Transaction in March 2024, the remaining unamortized debt discount and issuance costs related to the 2025 Notes were $5.8 million. The unamortized debt discount and issuance costs related to the 2025 Notes as of September 30, 2024 and December 31, 2023 were $4.6 million and $32.0 million, respectively.

Holders are entitled to exchange the 2025 Notes at any time during specified periods, at their option, subject to certain conditions. This includes the right to exchange the 2025 Notes during any calendar quarter if the last reported sale price of LivaNova’s ordinary shares is greater than or equal to 130% of the exchange price, or $79.27 per share, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter. The 2025 Notes are exchangeable solely into cash and are not exchangeable into ordinary shares of LivaNova or any other security under any circumstances. The initial exchange rate for the 2025 Notes is 16.3980 ordinary shares per $1,000 principal amount of 2025 Notes (equivalent to an initial exchange price of $60.98 per share). The exchange rate is subject to adjustment in certain circumstances, as set forth in the indenture governing the 2025 Notes.

As of September 30, 2024, the conditions for exchange were not met. As a result, the Company included its obligations from the 2025 Notes and the associated embedded derivative as long-term liabilities on the condensed consolidated balance sheet as of September 30, 2024, and the 2025 Notes are not exchangeable during the three months ending December 31, 2024.

On or after September 15, 2025, holders may exchange their 2025 Notes at their option at any time until the close of business on the second Scheduled Trading Day (as defined in the indenture governing the 2025 Notes) immediately preceding the maturity date.

The Company may redeem the 2025 Notes, in whole or in part, at its option prior to the 51st scheduled trading day immediately preceding the maturity date if the last reported sale price per ordinary share has been at least 130% of the exchange price, or $79.27 per share, then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption, at a redemption price equal to 100% of the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. Additionally, the Company may redeem the 2025 Notes at its option, prior to the stated maturity, in whole but not in part, in connection with certain tax-related events.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details