10-Q 1 ew-20220930.htm 10-Q ew-20220930
000109980012/312022Q3false00010998002022-01-012022-09-3000010998002022-10-24xbrli:shares00010998002022-09-30iso4217:USD00010998002021-12-31iso4217:USDxbrli:shares00010998002022-07-012022-09-3000010998002021-07-012021-09-3000010998002021-01-012021-09-3000010998002020-12-3100010998002021-09-300001099800us-gaap:CommonStockMember2021-12-310001099800us-gaap:TreasuryStockCommonMember2021-12-310001099800us-gaap:AdditionalPaidInCapitalMember2021-12-310001099800us-gaap:RetainedEarningsMember2021-12-310001099800us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001099800us-gaap:RetainedEarningsMember2022-01-012022-03-3100010998002022-01-012022-03-310001099800us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001099800us-gaap:CommonStockMember2022-01-012022-03-310001099800us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001099800us-gaap:TreasuryStockCommonMember2022-01-012022-03-310001099800us-gaap:CommonStockMember2022-03-310001099800us-gaap:TreasuryStockCommonMember2022-03-310001099800us-gaap:AdditionalPaidInCapitalMember2022-03-310001099800us-gaap:RetainedEarningsMember2022-03-310001099800us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100010998002022-03-310001099800us-gaap:RetainedEarningsMember2022-04-012022-06-3000010998002022-04-012022-06-300001099800us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001099800us-gaap:CommonStockMember2022-04-012022-06-300001099800us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001099800us-gaap:TreasuryStockCommonMember2022-04-012022-06-300001099800us-gaap:CommonStockMember2022-06-300001099800us-gaap:TreasuryStockCommonMember2022-06-300001099800us-gaap:AdditionalPaidInCapitalMember2022-06-300001099800us-gaap:RetainedEarningsMember2022-06-300001099800us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-3000010998002022-06-300001099800us-gaap:RetainedEarningsMember2022-07-012022-09-300001099800us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001099800us-gaap:CommonStockMember2022-07-012022-09-300001099800us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001099800us-gaap:TreasuryStockCommonMember2022-07-012022-09-300001099800us-gaap:CommonStockMember2022-09-300001099800us-gaap:TreasuryStockCommonMember2022-09-300001099800us-gaap:AdditionalPaidInCapitalMember2022-09-300001099800us-gaap:RetainedEarningsMember2022-09-300001099800us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001099800us-gaap:CommonStockMember2020-12-310001099800us-gaap:TreasuryStockCommonMember2020-12-310001099800us-gaap:AdditionalPaidInCapitalMember2020-12-310001099800us-gaap:RetainedEarningsMember2020-12-310001099800us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001099800us-gaap:RetainedEarningsMember2021-01-012021-03-3100010998002021-01-012021-03-310001099800us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001099800us-gaap:CommonStockMember2021-01-012021-03-310001099800us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001099800us-gaap:TreasuryStockCommonMember2021-01-012021-03-310001099800us-gaap:CommonStockMember2021-03-310001099800us-gaap:TreasuryStockCommonMember2021-03-310001099800us-gaap:AdditionalPaidInCapitalMember2021-03-310001099800us-gaap:RetainedEarningsMember2021-03-310001099800us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100010998002021-03-310001099800us-gaap:RetainedEarningsMember2021-04-012021-06-3000010998002021-04-012021-06-300001099800us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001099800us-gaap:CommonStockMember2021-04-012021-06-300001099800us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001099800us-gaap:TreasuryStockCommonMember2021-04-012021-06-300001099800us-gaap:CommonStockMember2021-06-300001099800us-gaap:TreasuryStockCommonMember2021-06-300001099800us-gaap:AdditionalPaidInCapitalMember2021-06-300001099800us-gaap:RetainedEarningsMember2021-06-300001099800us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-3000010998002021-06-300001099800us-gaap:RetainedEarningsMember2021-07-012021-09-300001099800us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001099800us-gaap:CommonStockMember2021-07-012021-09-300001099800us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001099800us-gaap:TreasuryStockCommonMember2021-07-012021-09-300001099800us-gaap:CommonStockMember2021-09-300001099800us-gaap:TreasuryStockCommonMember2021-09-300001099800us-gaap:AdditionalPaidInCapitalMember2021-09-300001099800us-gaap:RetainedEarningsMember2021-09-300001099800us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-3000010998002022-09-012022-09-300001099800ew:SpecialChargeMember2022-09-012022-09-300001099800us-gaap:CostOfSalesMember2022-09-012022-09-300001099800us-gaap:BankTimeDepositsMember2022-09-300001099800us-gaap:BankTimeDepositsMember2021-12-310001099800us-gaap:CommercialPaperMember2022-09-300001099800us-gaap:CommercialPaperMember2021-12-310001099800us-gaap:USTreasuryAndGovernmentMember2022-09-300001099800us-gaap:USTreasuryAndGovernmentMember2021-12-310001099800us-gaap:AssetBackedSecuritiesMember2022-09-300001099800us-gaap:AssetBackedSecuritiesMember2021-12-310001099800us-gaap:CorporateDebtSecuritiesMember2022-09-300001099800us-gaap:CorporateDebtSecuritiesMember2021-12-310001099800us-gaap:MunicipalBondsMember2022-09-300001099800us-gaap:MunicipalBondsMember2021-12-310001099800us-gaap:LimitedLiabilityCompanyMemberew:NewMarketsTaxCreditMember2022-09-30xbrli:pure0001099800us-gaap:LimitedLiabilityCompanyMember2022-01-012022-09-300001099800us-gaap:OtherNonoperatingIncomeExpenseMember2022-09-300001099800ew:MedicalDeviceCompanyMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2022-08-012022-08-310001099800ew:MedicalDeviceCompanyMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2022-08-310001099800ew:MedicalDeviceCompanyMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2022-06-012022-06-300001099800ew:MedicalDeviceCompanyMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2022-09-300001099800ew:MedicalTechnologyCompanyMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2022-05-012022-05-310001099800ew:MedicalTechnologyCompanyMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2021-01-012021-12-310001099800ew:MedicalTechnologyCompanyMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2022-05-310001099800us-gaap:RevolvingCreditFacilityMemberew:CreditAgreementMember2022-07-012022-07-310001099800us-gaap:RevolvingCreditFacilityMemberew:CreditAgreementMember2022-07-310001099800us-gaap:RevolvingCreditFacilityMemberew:CreditAgreementMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembersrt:MinimumMember2022-07-012022-07-310001099800us-gaap:RevolvingCreditFacilityMemberew:CreditAgreementMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembersrt:MaximumMember2022-07-012022-07-310001099800us-gaap:RevolvingCreditFacilityMemberew:CreditAgreementMembersrt:MinimumMember2022-07-012022-07-310001099800us-gaap:RevolvingCreditFacilityMemberew:CreditAgreementMembersrt:MaximumMember2022-07-012022-07-310001099800us-gaap:RevolvingCreditFacilityMemberew:CreditAgreementMember2022-09-300001099800us-gaap:FairValueInputsLevel2Member2022-09-300001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryAndGovernmentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryAndGovernmentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:BankTimeDepositsMember2021-12-310001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:BankTimeDepositsMember2021-12-310001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:BankTimeDepositsMember2021-12-310001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:BankTimeDepositsMember2021-12-310001099800us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USTreasuryAndGovernmentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryAndGovernmentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasuryAndGovernmentMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CommercialPaperMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:MunicipalBondsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001099800us-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Membersrt:MinimumMember2022-09-300001099800srt:MaximumMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Member2022-09-300001099800srt:WeightedAverageMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Member2022-09-300001099800ew:MeasurementInputProbabilityOfMilestoneAchievementMemberus-gaap:FairValueInputsLevel3Membersrt:MinimumMember2022-09-300001099800ew:MeasurementInputProbabilityOfMilestoneAchievementMembersrt:MaximumMemberus-gaap:FairValueInputsLevel3Member2022-09-300001099800ew:MeasurementInputProbabilityOfMilestoneAchievementMembersrt:WeightedAverageMemberus-gaap:FairValueInputsLevel3Member2022-09-300001099800ew:MeasurementInputVolatilityOfFutureRevenueMemberus-gaap:FairValueInputsLevel3Membersrt:MinimumMember2022-09-300001099800srt:MaximumMemberew:MeasurementInputVolatilityOfFutureRevenueMemberus-gaap:FairValueInputsLevel3Member2022-09-300001099800srt:WeightedAverageMemberew:MeasurementInputVolatilityOfFutureRevenueMemberus-gaap:FairValueInputsLevel3Member2022-09-300001099800ew:ContingentConsiderationLiabilityMember2021-12-310001099800us-gaap:OtherLiabilitiesMember2021-12-310001099800ew:ContingentConsiderationLiabilityMember2022-01-012022-09-300001099800us-gaap:OtherLiabilitiesMember2022-01-012022-09-300001099800ew:ContingentConsiderationLiabilityMember2022-09-300001099800us-gaap:OtherLiabilitiesMember2022-09-300001099800ew:ContingentConsiderationLiabilityMember2020-12-310001099800us-gaap:OtherLiabilitiesMember2020-12-310001099800ew:ContingentConsiderationLiabilityMember2021-01-012021-09-300001099800us-gaap:OtherLiabilitiesMember2021-01-012021-09-300001099800ew:ContingentConsiderationLiabilityMember2021-09-300001099800us-gaap:OtherLiabilitiesMember2021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMember2022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeForwardMember2021-12-310001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMember2022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMember2021-12-310001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherCurrentAssetsMember2021-12-310001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMember2022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMember2021-12-310001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2021-12-310001099800us-gaap:ForeignExchangeContractMember2022-09-300001099800us-gaap:CurrencySwapMember2022-09-300001099800us-gaap:ForeignExchangeContractMember2021-12-310001099800us-gaap:CurrencySwapMember2021-12-310001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2022-07-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2021-07-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMember2022-07-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMember2021-07-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2022-07-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2022-01-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMember2021-01-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMember2022-01-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMemberus-gaap:CashFlowHedgingMember2021-01-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CashFlowHedgingMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMemberus-gaap:NetInvestmentHedgingMember2022-07-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMemberus-gaap:NetInvestmentHedgingMember2021-07-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMemberus-gaap:InterestIncomeMemberus-gaap:NetInvestmentHedgingMember2022-07-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMemberus-gaap:InterestIncomeMemberus-gaap:NetInvestmentHedgingMember2021-07-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMemberus-gaap:NetInvestmentHedgingMember2022-01-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMemberus-gaap:NetInvestmentHedgingMember2021-01-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMemberus-gaap:InterestIncomeMemberus-gaap:NetInvestmentHedgingMember2022-01-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMemberus-gaap:InterestIncomeMemberus-gaap:NetInvestmentHedgingMember2021-01-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CurrencySwapMemberus-gaap:NetInvestmentHedgingMember2022-09-30iso4217:EUR0001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMemberus-gaap:ForeignExchangeContractMember2022-07-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMemberus-gaap:ForeignExchangeContractMember2021-07-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMemberus-gaap:ForeignExchangeContractMember2022-01-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMemberus-gaap:ForeignExchangeContractMember2021-01-012021-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2022-07-012022-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2021-07-012021-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2022-01-012022-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2021-01-012021-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2022-07-012022-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2022-07-012022-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2022-07-012022-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2022-01-012022-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2022-01-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2022-07-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2022-07-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2022-07-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2022-01-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2022-01-012022-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2021-07-012021-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2021-07-012021-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2021-01-012021-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300001099800us-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2021-01-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2021-07-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2021-07-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2021-01-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300001099800us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2021-01-012021-09-300001099800us-gaap:CostOfSalesMember2022-07-012022-09-300001099800us-gaap:CostOfSalesMember2021-07-012021-09-300001099800us-gaap:CostOfSalesMember2022-01-012022-09-300001099800us-gaap:CostOfSalesMember2021-01-012021-09-300001099800us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-07-012022-09-300001099800us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300001099800us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-09-300001099800us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300001099800us-gaap:ResearchAndDevelopmentExpenseMember2022-07-012022-09-300001099800us-gaap:ResearchAndDevelopmentExpenseMember2021-07-012021-09-300001099800us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-09-300001099800us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-09-300001099800us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001099800ew:MarketBasedRestrictedStockUnitsMember2022-01-012022-09-300001099800ew:MarketBasedRestrictedStockUnitsRelatedToPreviousYearsGrantMember2022-01-012022-09-300001099800ew:MarketBasedRestrictedStockUnitsMembersrt:MinimumMember2022-01-012022-09-300001099800srt:MaximumMemberew:MarketBasedRestrictedStockUnitsMember2022-01-012022-09-300001099800ew:MarketBasedRestrictedStockUnitsMember2021-01-012021-09-300001099800ew:EmployeeAndNonemployeeStockOptionsMember2022-07-012022-09-300001099800ew:EmployeeAndNonemployeeStockOptionsMember2021-07-012021-09-300001099800ew:EmployeeAndNonemployeeStockOptionsMember2022-01-012022-09-300001099800ew:EmployeeAndNonemployeeStockOptionsMember2021-01-012021-09-300001099800us-gaap:EmployeeStockMember2022-07-012022-09-300001099800us-gaap:EmployeeStockMember2021-07-012021-09-300001099800us-gaap:EmployeeStockMember2022-01-012022-09-300001099800us-gaap:EmployeeStockMember2021-01-012021-09-300001099800ew:InitialDeliveryOfSharesSettledFebruary2021Member2021-02-280001099800ew:InitialDeliveryOfSharesSettledFebruary2021Member2021-02-012021-02-280001099800ew:February2021StockRepurchaseProgramSharesSoldInMarch2021Member2021-03-012021-03-310001099800ew:InitialDeliveryOfSharesSettledJanuary2022Member2022-01-310001099800ew:InitialDeliveryOfSharesSettledJanuary2022Member2022-01-012022-01-310001099800ew:January2022StockRepurchaseProgramSharesSoldInFebruary2022Member2022-02-012022-02-28ew:lawsuit0001099800us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310001099800us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310001099800us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310001099800us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-03-310001099800us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-03-310001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-03-310001099800us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-03-310001099800us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310001099800us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-03-310001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-03-310001099800us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-03-310001099800us-gaap:AccumulatedTranslationAdjustmentMember2022-04-012022-06-300001099800us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-04-012022-06-300001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-04-012022-06-300001099800us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-04-012022-06-300001099800us-gaap:AccumulatedTranslationAdjustmentMember2022-06-300001099800us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-06-300001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-06-300001099800us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-06-300001099800us-gaap:AccumulatedTranslationAdjustmentMember2022-07-012022-09-300001099800us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-07-012022-09-300001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-07-012022-09-300001099800us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-07-012022-09-300001099800us-gaap:AccumulatedTranslationAdjustmentMember2022-09-300001099800us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-09-300001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-09-300001099800us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-09-300001099800us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001099800us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2020-12-310001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310001099800us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310001099800us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-03-310001099800us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-03-310001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-03-310001099800us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-03-310001099800us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310001099800us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-03-310001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-03-310001099800us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-03-310001099800us-gaap:AccumulatedTranslationAdjustmentMember2021-04-012021-06-300001099800us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-04-012021-06-300001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-04-012021-06-300001099800us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-04-012021-06-300001099800us-gaap:AccumulatedTranslationAdjustmentMember2021-06-300001099800us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-06-300001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-06-300001099800us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-06-300001099800us-gaap:AccumulatedTranslationAdjustmentMember2021-07-012021-09-300001099800us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-07-012021-09-300001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-07-012021-09-300001099800us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-07-012021-09-300001099800us-gaap:AccumulatedTranslationAdjustmentMember2021-09-300001099800us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-09-300001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-09-300001099800us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-09-300001099800us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedTranslationAdjustmentMember2022-07-012022-09-300001099800us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedTranslationAdjustmentMember2021-07-012021-09-300001099800us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-09-300001099800us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-09-300001099800us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-07-012022-09-300001099800us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-07-012021-09-300001099800us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-09-300001099800us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-012021-09-300001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001099800us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300001099800us-gaap:StockCompensationPlanMember2022-07-012022-09-300001099800us-gaap:StockCompensationPlanMember2021-07-012021-09-300001099800us-gaap:StockCompensationPlanMember2022-01-012022-09-300001099800us-gaap:StockCompensationPlanMember2021-01-012021-09-3000010998002021-01-012021-12-310001099800us-gaap:OperatingSegmentsMemberew:UnitedStatesSegmentMember2022-07-012022-09-300001099800us-gaap:OperatingSegmentsMemberew:UnitedStatesSegmentMember2021-07-012021-09-300001099800us-gaap:OperatingSegmentsMemberew:UnitedStatesSegmentMember2022-01-012022-09-300001099800us-gaap:OperatingSegmentsMemberew:UnitedStatesSegmentMember2021-01-012021-09-300001099800ew:EuropeSegmentMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300001099800ew:EuropeSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001099800ew:EuropeSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300001099800ew:EuropeSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001099800ew:JapanSegmentMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300001099800ew:JapanSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001099800ew:JapanSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300001099800ew:JapanSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001099800ew:RestOfWorldSegmentMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300001099800ew:RestOfWorldSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001099800ew:RestOfWorldSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300001099800ew:RestOfWorldSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001099800us-gaap:OperatingSegmentsMember2022-07-012022-09-300001099800us-gaap:OperatingSegmentsMember2021-07-012021-09-300001099800us-gaap:OperatingSegmentsMember2022-01-012022-09-300001099800us-gaap:OperatingSegmentsMember2021-01-012021-09-300001099800us-gaap:MaterialReconcilingItemsMember2022-07-012022-09-300001099800us-gaap:MaterialReconcilingItemsMember2021-07-012021-09-300001099800us-gaap:MaterialReconcilingItemsMember2022-01-012022-09-300001099800us-gaap:MaterialReconcilingItemsMember2021-01-012021-09-300001099800us-gaap:CorporateNonSegmentMember2022-07-012022-09-300001099800us-gaap:CorporateNonSegmentMember2021-07-012021-09-300001099800us-gaap:CorporateNonSegmentMember2022-01-012022-09-300001099800us-gaap:CorporateNonSegmentMember2021-01-012021-09-300001099800country:US2022-07-012022-09-300001099800country:US2021-07-012021-09-300001099800country:US2022-01-012022-09-300001099800country:US2021-01-012021-09-300001099800srt:EuropeMember2022-07-012022-09-300001099800srt:EuropeMember2021-07-012021-09-300001099800srt:EuropeMember2022-01-012022-09-300001099800srt:EuropeMember2021-01-012021-09-300001099800country:JP2022-07-012022-09-300001099800country:JP2021-07-012021-09-300001099800country:JP2022-01-012022-09-300001099800country:JP2021-01-012021-09-300001099800ew:RestOfWorldMember2022-07-012022-09-300001099800ew:RestOfWorldMember2021-07-012021-09-300001099800ew:RestOfWorldMember2022-01-012022-09-300001099800ew:RestOfWorldMember2021-01-012021-09-300001099800ew:TranscatheterAorticValveReplacementMember2022-07-012022-09-300001099800ew:TranscatheterAorticValveReplacementMember2021-07-012021-09-300001099800ew:TranscatheterAorticValveReplacementMember2022-01-012022-09-300001099800ew:TranscatheterAorticValveReplacementMember2021-01-012021-09-300001099800ew:TranscatheterMitralAndTricuspidTherapiesMember2022-07-012022-09-300001099800ew:TranscatheterMitralAndTricuspidTherapiesMember2021-07-012021-09-300001099800ew:TranscatheterMitralAndTricuspidTherapiesMember2022-01-012022-09-300001099800ew:TranscatheterMitralAndTricuspidTherapiesMember2021-01-012021-09-300001099800ew:SurgicalHeartValveTherapyMember2022-07-012022-09-300001099800ew:SurgicalHeartValveTherapyMember2021-07-012021-09-300001099800ew:SurgicalHeartValveTherapyMember2022-01-012022-09-300001099800ew:SurgicalHeartValveTherapyMember2021-01-012021-09-300001099800ew:CriticalCareMember2022-07-012022-09-300001099800ew:CriticalCareMember2021-07-012021-09-300001099800ew:CriticalCareMember2022-01-012022-09-300001099800ew:CriticalCareMember2021-01-012021-09-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
            For the transition period from                                    to            
Commission file number 1-15525
EDWARDS LIFESCIENCES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
36-4316614
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)

One Edwards Way
Irvine, California 92614
(Address of principal executive offices and zip code)

(949) 250-2500
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $1.00 per shareEWNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes     No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes     No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No 
The number of shares outstanding of the registrant's common stock, $1.00 par value, as of October 24, 2022 was 618,260,499.



EDWARDS LIFESCIENCES CORPORATION
FORM 10-Q
For the quarterly period ended September 30, 2022

TABLE OF CONTENTS



NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend the forward-looking statements contained in this report to be covered by the safe harbor provisions of such Acts. Statements other than statements of historical or current fact in this report or referred to or incorporated by reference into this report are "forward-looking statements" for purposes of these sections. These statements include, among other things, the expected impact of COVID-19 on our business, any predictions, opinions, expectations, plans, strategies, objectives and any statements of assumptions underlying any of the foregoing relating to the company's current and future business and operations, including, but not limited to, financial matters, development activities, clinical trials and regulatory matters, manufacturing and supply operations, and product sales and demand. These statements can sometimes be identified by the use of the forward-looking words such as "may," "believe," "will," "expect," "project," "estimate," "should," "anticipate," "plan," "goal," "continue," "seek," "pro forma," "forecast," "intend," "guidance," "optimistic," "aspire," "confident," other forms of these words or similar words or expressions or the negative thereof. Statements of past performance, efforts, or results about which inferences or assumptions may be made can also be forward-looking statements and are not indicative of future performance or results; these statements can be identified by the use of words such as "preliminary," "initial," diligence," "industry-leading," "compliant," "indications," or "early feedback" or other forms of these words or similar words or expressions or the negative thereof. These forward-looking statements are subject to substantial risks and uncertainties that could cause our results or future business, financial condition, results of operations or performance to differ materially from our historical results or experiences or those expressed or implied in any forward-looking statements contained in this report. These risks and uncertainties include, but are not limited to: uncertainties regarding the severity and duration of the COVID-19 pandemic and its impact on our business and the economy generally; clinical trial or commercial results or new product approvals and therapy adoption; inability or failure to comply with regulations; unpredictability of product launches; competitive dynamics; changes to reimbursement for the company's products; the company’s success in developing new products and avoiding manufacturing and quality issues; the impact of currency exchange rates; the timing or results of research and development and clinical trials; unanticipated actions by the United States Food and Drug Administration and other regulatory agencies; changes to tax laws; unexpected impacts or expenses of litigation or internal or government investigations; and other risks detailed under “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2021, as such risks and uncertainties may be amended, supplemented or superseded from time to time by our subsequent reports on Forms 10-Q and 8-K we file with the Securities and Exchange Commission. These forward-looking statements speak only as of the date on which they are made and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of the statement. If we do update or correct one or more of these statements, investors and others should not conclude that we will make additional updates or corrections.

Unless otherwise indicated or otherwise required by the context, the terms "we," "our," "it," "its," "Company," "Edwards," and "Edwards Lifesciences" refer to Edwards Lifesciences Corporation and its subsidiaries.



Part I. Financial Information
Item 1.    Financial Statements
EDWARDS LIFESCIENCES CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in millions, except par value; unaudited)
 September 30,
2022
December 31,
2021
ASSETS  
Current assets  
Cash and cash equivalents$1,247.8 $862.8 
Short-term investments (Note 4)490.9 604.0 
Accounts receivable, net of allowances of $7.5 and $9.3, respectively
618.1 582.2 
Other receivables43.3 82.7 
Inventories (Note 2)757.8 726.7 
Prepaid expenses88.4 85.2 
Other current assets267.6 237.1 
Total current assets3,513.9 3,180.7 
Long-term investments (Note 4)1,381.0 1,834.2 
Property, plant, and equipment, net1,566.4 1,546.6 
Operating lease right-of-use assets 87.7 92.1 
Goodwill 1,158.7 1,167.9 
Other intangible assets, net (Note 3) 266.5 323.6 
Deferred income taxes347.5 246.7 
Other assets (Note 5)316.5 110.8 
Total assets$8,638.2 $8,502.6 
LIABILITIES AND STOCKHOLDERS' EQUITY  
Current liabilities  
Accounts payable$154.9 $204.5 
Accrued and other liabilities (Note 2)739.5 802.3 
Operating lease liabilities23.5 25.5 
Total current liabilities
917.9 1,032.3 
Long-term debt 596.2 595.7 
Contingent consideration liabilities (Note 7)25.7 62.0 
Taxes payable142.9 190.0 
Operating lease liabilities 67.1 69.1 
Uncertain tax positions295.6 259.0 
Litigation settlement accrual (Note 2)153.9 191.3 
Other liabilities221.1 267.3 
Total liabilities2,420.4 2,666.7 
Commitments and contingencies (Note 11)
Stockholders' equity  
Preferred stock, $0.01 par value, authorized 50.0 shares, no shares outstanding          
  
Common stock, $1.00 par value, 1,050.0 shares authorized, 645.7 and 642.0 shares issued, and 619.4 and 624.1 shares outstanding, respectively
645.7 642.0 
Additional paid-in capital1,914.5 1,700.4 
Retained earnings7,191.6 6,068.1 
Accumulated other comprehensive loss (Note 12)(256.0)(157.7)
Treasury stock, at cost, 26.3 and 17.9 shares, respectively
(3,278.0)(2,416.9)
Total stockholders' equity6,217.8 5,835.9 
Total liabilities and stockholders' equity$8,638.2 $8,502.6 
The accompanying notes are an integral part of these
consolidated condensed financial statements.
1

EDWARDS LIFESCIENCES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in millions, except per share information; unaudited)
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2022202120222021
Net sales$1,319.0 $1,310.2 $4,034.1 $3,902.8 
Cost of sales253.8 311.7 822.5 939.4 
Gross profit1,065.2 998.5 3,211.6 2,963.4 
Selling, general, and administrative expenses377.3 364.4 1,156.6 1,069.7 
Research and development expenses233.6 238.0 713.0 670.3 
Intellectual property litigation (income) expenses, net(2.4)4.7 10.8 13.5 
Change in fair value of contingent consideration liabilities, net (Note 7)(12.5)1.1 (36.3)(106.0)
Special charge (Note 3)66.8  66.8  
Operating income402.4 390.3 1,300.7 1,315.9 
Interest (income) expense, net(6.9)0.8 (8.4)1.5 
Other expense (income), net2.0 (1.4)1.0 (11.3)
Income before provision for income taxes407.3 390.9 1,308.1 1,325.7 
Provision for income taxes63.8 50.8 184.6 157.9 
Net income$343.5 $340.1 $1,123.5 $1,167.8 
Share information (Note 13)
    
Earnings per share:    
Basic$0.55 $0.55 $1.81 $1.87 
Diluted$0.55 $0.54 $1.79 $1.85 
Weighted-average number of common shares outstanding:    
Basic619.8 623.6 621.0 623.0 
Diluted624.5 631.7 626.9 631.0 
The accompanying notes are an integral part of these
consolidated condensed financial statements.
2

EDWARDS LIFESCIENCES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(in millions; unaudited)
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2022202120222021
Net income$343.5 $340.1 $1,123.5 $1,167.8 
Other comprehensive (loss) income, net of tax (Note 12):
Foreign currency translation adjustments(41.7)(12.2)(94.9)(33.9)
Unrealized gain on hedges20.6 18.3 65.3 45.2 
Unrealized pension costs(0.1)(0.1)(0.2) 
Unrealized loss on available-for-sale investments(15.1)(3.9)(83.1)(9.7)
Reclassification of realized investment losses to earnings4.7 2.1 14.6 4.1 
Other comprehensive (loss) income(31.6)4.2 (98.3)5.7 
Comprehensive income$311.9 $344.3 $1,025.2 $1,173.5 
The accompanying notes are an integral part of these
consolidated condensed financial statements.
3

EDWARDS LIFESCIENCES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in millions; unaudited)
 Nine Months Ended
September 30,
 20222021
Cash flows from operating activities  
Net income$1,123.5 $1,167.8 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization104.2 101.8 
Non-cash operating lease cost20.6 21.4 
Stock-based compensation (Note 9)98.9 85.1 
Impairment charge (Note 3)55.1 4.0 
Change in fair value of contingent consideration liabilities, net (Note 7)(36.3)(106.0)
Loss (gain) on investments, net49.1 (25.6)
Deferred income taxes(148.7)20.1 
Other5.5 5.3 
Changes in operating assets and liabilities:  
Accounts and other receivables, net(83.0)(97.9)
Inventories(151.1)25.6 
Accounts payable and accrued liabilities(55.7)164.1 
Income taxes8.8 29.0 
Prepaid expenses and other current assets20.3 1.5 
Litigation settlement accrual(36.1)(19.1)
Other(39.7)(18.6)
Net cash provided by operating activities935.4 1,358.5 
Cash flows from investing activities  
Capital expenditures(175.7)(236.0)
Purchases of held-to-maturity investments (Note 4)(285.5)(103.0)
Proceeds from held-to-maturity investments (Note 4)324.5 70.0 
Purchases of available-for-sale investments (Note 4)(302.8)(722.0)
Proceeds from available-for-sale investments (Note 4)761.1 262.1 
Payment for acquisition options(107.6)(5.7)
Issuances of notes receivable(51.5)(3.6)
Collections of notes receivable18.0 10.0 
Other(22.9)(28.4)
Net cash provided by (used in) investing activities157.6 (756.6)
Cash flows from financing activities  
Proceeds from issuance of debt 5.2 
Payments on debt and finance lease obligations(0.1)(6.9)
Purchases of treasury stock(861.1)(416.3)
Proceeds from stock plans118.9 124.7 
Other(3.8)(1.0)
Net cash used in financing activities(746.1)(294.3)
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash37.4 12.1 
Net increase in cash, cash equivalents, and restricted cash384.3 319.7 
Cash, cash equivalents, and restricted cash at beginning of period867.4 1,200.2 
Cash, cash equivalents, and restricted cash at end of period$1,251.7 $1,519.9 
The accompanying notes are an integral part of these
consolidated condensed financial statements.
4

EDWARDS LIFESCIENCES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY
(in millions; unaudited)
 Common StockTreasury Stock
 SharesPar ValueSharesAmountAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive LossTotal Stockholders' Equity
Balance at December 31, 2021642.0 $642.0 17.9 $(2,416.9)$1,700.4 $6,068.1 $(157.7)$5,835.9 
Net income     373.6  373.6 
Other comprehensive loss, net of tax      (28.9)(28.9)
Common stock issued under stock plans0.9 0.9   36.6   37.5 
Stock-based compensation expense    32.4   32.4 
Purchases of treasury stock  3.6 (405.6)  (405.6)
Balance at March 31, 2022
642.9 $642.9 21.5 $(2,822.5)$1,769.4 $6,441.7 $(186.6)$5,844.9 
Net income406.4 406.4 
Other comprehensive loss, net of tax(37.8)(37.8)
Common stock issued under equity plans
2.1 2.1 46.9 49.0 
Stock-based compensation expense36.2 36.2 
Purchases of treasury stock3.7 (355.1)(355.1)
Balance at June 30, 2022
645.0 $645.0 25.2 $(3,177.6)$1,852.5 $6,848.1 $(224.4)$5,943.6 
Net income343.5 343.5 
Other comprehensive loss, net of tax(31.6)(31.6)
Common stock issued under equity plans
0.7 0.7 31.7 32.4 
Stock-based compensation expense30.3 30.3 
Purchases of treasury stock1.1 (100.4)(100.4)
Balance at September 30, 2022
645.7 $645.7 26.3 $(3,278.0)$1,914.5 $7,191.6 $(256.0)$6,217.8 
The accompanying notes are an integral part of these
consolidated condensed financial statements.

5

EDWARDS LIFESCIENCES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY
(in millions; unaudited)
 Common StockTreasury Stock
 SharesPar ValueSharesAmountAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive LossTotal Stockholders' Equity
Balance at December 31, 2020636.4 $636.4 12.1 $(1,904.1)$1,438.1 $4,565.0 $(161.1)$4,574.3 
Net income     338.2  338.2 
Other comprehensive loss, net of tax      (11.3)(11.3)
Common stock issued under stock plans1.1 1.1   30.5   31.6 
Stock-based compensation expense    28.2   28.2 
Purchases of treasury stock  3.6 (302.6)  (302.6)
Balance at March 31, 2021
637.5 $637.5 15.7 $(2,206.7)$1,496.8 $4,903.2 $(172.4)$4,658.4 
Net income489.5 489.5 
Other comprehensive income, net of tax12.8 12.8 
Common stock issued under equity plans
2.6 2.6 51.6 54.2 
Stock-based compensation expense30.3 30.3 
Purchases of treasury stock1.3 (111.9)(111.9)
Balance at June 30, 2021
640.1 $640.1 17.0 $(2,318.6)$1,578.7 $5,392.7 $(159.6)$5,133.3 
Net income340.1 340.1 
Other comprehensive loss, net of tax4.2 4.2 
Common stock issued under equity plans
1.1 1.1 37.8 38.9 
Stock-based compensation expense26.6 26.6 
Purchases of treasury stock— (1.8)(1.8)
Balance at September 30, 2021
641.2 $641.2 17.0 $(2,320.4)$1,643.1 $5,732.8 $(155.4)$5,541.3 
The accompanying notes are an integral part of these
consolidated condensed financial statements.

6


1.     BASIS OF PRESENTATION

The accompanying interim consolidated condensed financial statements and related disclosures have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and should be read in conjunction with the consolidated financial statements and notes included in Edwards Lifesciences' Annual Report on Form 10-K for the year ended December 31, 2021. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") have been condensed or omitted.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. In particular, the COVID-19 pandemic has adversely impacted, and may further adversely impact, nearly all aspects of the Company's business and markets, including its workforce and the operations of its customers, suppliers, and business partners. The full extent to which the pandemic will directly or indirectly impact the Company's business, results of operations and financial condition, including sales, expenses, manufacturing, clinical trials, research and development costs, reserves and allowances, fair value measurements, asset impairment charges, contingent consideration obligations, and the effectiveness of the Company's hedging instruments, will depend on future developments that are highly uncertain and difficult to predict. These developments include, but are not limited to, the duration and spread of the outbreak (including new and more contagious
variants of COVID-19), its severity, the actions to contain the virus or address its impact, the timing, distribution, public acceptance and efficacy of vaccines and other treatments, and the associated impact on economic and operating conditions.

In the opinion of management, the interim consolidated condensed financial statements reflect all adjustments necessary for a fair statement of the results for the interim periods presented. All such adjustments, unless otherwise noted herein, are of a normal, recurring nature. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year.

There have been no material changes to the Company's significant accounting policies from those described in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

Recently Adopted Accounting Standards

The Company evaluates all new accounting pronouncements issued by the Financial Accounting Standards Board ("FASB") for applicability to the Company's consolidated condensed financial statements. Unless otherwise discussed below, the Company has not identified any other recently issued standards that are relevant to the Company's condensed consolidated financial statements or disclosures.

In November 2021, the FASB issued an amendment to the accounting guidance on government assistance. The guidance requires certain disclosures about transactions with a government that are accounted for by applying a grant or contribution model. The guidance was effective for annual periods beginning after December 15, 2021. The adoption of this guidance was applied prospectively and did not have an impact on the Company's consolidated financial statements.

2.     OTHER CONSOLIDATED FINANCIAL STATEMENT DETAILS

Composition of Certain Financial Statement Captions
(in millions)

Components of selected captions in the consolidated condensed balance sheets consisted of the following:
September 30, 2022December 31, 2021
Inventories
Raw materials$143.7 $132.8 
Work in process172.7 164.3 
Finished products441.4 429.6 
$757.8 $726.7 

At September 30, 2022 and December 31, 2021, $105.0 million and $125.8 million, respectively, of the Company's finished products inventories were held on consignment.
7


September 30, 2022December 31, 2021
Accrued and other liabilities 
Employee compensation and withholdings$250.0 $319.7 
Taxes payable38.6 30.6 
Property, payroll, and other taxes54.8 68.9 
Research and development accruals71.6 58.2 
Accrued rebates91.8 77.0 
Fair value of derivatives4.4 3.9 
Accrued marketing expenses15.3 20.1 
Legal and insurance (a)
81.1 79.1 
Accrued relocation costs25.9 26.2 
Accrued professional services11.2 11.9 
Accrued realignment reserves16.2 19.1 
Other accrued liabilities78.6 87.6 
$739.5 $802.3 
_______________________________________
(a)     On July 12, 2020, the Company reached an agreement with Abbott Laboratories and its direct and indirect subsidiaries to, among other things, settle all outstanding patent disputes between the companies in cases related to transcatheter mitral and tricuspid repair products. As of September 30, 2022, $51.3 million was accrued in "Accrued and other liabilities" and $153.9 million was accrued in "Litigation settlement accrual" on the consolidated condensed balance sheet.

Supplemental Cash Flow Information
(in millions)
Nine Months Ended
September 30,
20222021
Cash paid during the year for:
Income taxes$315.9 $112.6 
Amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
$22.2 $24.1 
Non-cash investing and financing transactions:  
Right-of-use assets obtained in exchange for new lease liabilities$24.7 $13.5 
Capital expenditures accruals$25.3 $20.1 
Conversion of notes receivable to equity investment$ $21.5 

Cash, Cash Equivalents, and Restricted Cash
(in millions)
September 30, 2022December 31, 2021
Cash and cash equivalents$1,247.8 $862.8 
Restricted cash included in other current assets1.1 1.5 
Restricted cash included in other assets2.8 3.1 
Total cash, cash equivalents, and restricted cash$1,251.7 $867.4 

Amounts included in restricted cash primarily represent funds placed in escrow related to litigation.

3.    SPECIAL CHARGE

In September 2022, the Company decided to exit its HARPOON surgical mitral repair system program. As a result, the Company recorded a charge to its United States segment of $68.4 million, of which $66.8 million was included in "Special Charge" and $1.6 million was included in "Cost of Sales" on the consolidated condensed statements of operations. The charge primarily related to the full impairment of intangible assets associated with the technology and other related exit costs. The
8

Company believes that no additional contingent consideration is due and, in September 2022, recorded an $11.7 million contingent consideration gain associated with the exit (see Note 7).

4.     INVESTMENTS

Debt Securities

Investments in debt securities at the end of each period were as follows (in millions):
 September 30, 2022December 31, 2021
Held-to-maturityAmortized CostGross Unrealized GainsGross Unrealized LossesFair ValueAmortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Bank time deposits$123.0 $ $ $123.0 $162.0 $ $ $162.0 
Available-for-sale
Bank time deposits$ $ $ $ $2.5 $ $ $2.5 
Commercial paper    127.7   127.7 
United States government and agency securities143.0  (6.8)136.2 147.4 0.6 (0.7)147.3 
Asset-backed securities447.9  (15.1)432.8 515.2 0.3 (2.9)512.6 
Corporate debt securities1,124.3  (55.8)1,068.5 1,397.1 2.0 (8.3)1,390.8 
Municipal securities2.8  (0.3)2.5 2.8   2.8 
Total$1,718.0 $ $(78.0)$1,640.0 $2,192.7 $2.9 $(11.9)$2,183.7 
The cost and fair value of investments in debt securities, by contractual maturity, as of September 30, 2022, were as follows:
Held-to-MaturityAvailable-for-Sale
 Amortized CostFair ValueAmortized CostFair Value
 (in millions)
Due in 1 year or less$118.5 $118.5 $379.3 $372.4 
Due after 1 year through 5 years4.5 4.5 840.7 789.0