LivaNova PLC Files 2023 Annual Report on Form 10-K

TL;DR

<b>LivaNova PLC has filed its 2023 annual report (10-K) detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

LivaNova PLC (LIVN) filed a Annual Report (10-K) with the SEC on February 29, 2024. LivaNova PLC filed its 2023 Form 10-K on February 29, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is in Electromedical & Electrotherapeutic Apparatus. LivaNova PLC is incorporated in X0. The company's principal executive offices are located in London, UK.

Why It Matters

For investors and stakeholders tracking LivaNova PLC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of LivaNova's financial health, operational performance, and strategic direction for the past fiscal year, crucial for investors and stakeholders to assess the company's current standing and future prospects. As a company operating in the Electromedical & Electrotherapeutic Apparatus industry, this filing is essential for understanding regulatory compliance, market positioning, and competitive landscape relevant to its specialized products and services.

Risk Assessment

Risk Level: medium — LivaNova PLC shows moderate risk based on this filing. The company operates in the Electromedical & Electrotherapeutic Apparatus industry, which is subject to significant regulatory oversight and rapid technological advancements, posing potential risks to market share and profitability.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to assess LivaNova's performance and identify potential investment opportunities or concerns.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting Period)
• 2024-02-29 — Filing Date (Report Filing Date)
• 159 — Public Document Count (Filing Details)

Key Players & Entities

• LivaNova PLC (company) — Filer
• 2023 (date) — Fiscal Year End
• 2024-02-29 (date) — Filing Date
• 3845 (industry_code) — Standard Industrial Classification
• London (location) — Business Address City
• Sand Holdco Plc (company) — Former Company Name
• Sand Holdco Ltd (company) — Former Company Name
• 2015-04-20 (date) — Date of Name Change

FAQ

Industry Context

LivaNova operates within the electromedical and electrotherapeutic apparatus industry, a sector characterized by innovation, stringent regulatory requirements, and a focus on patient outcomes.

Regulatory Implications

Companies in the medical device sector, like LivaNova, are subject to extensive regulations from bodies such as the FDA (in the US) and EMA (in Europe) concerning product safety, efficacy, and manufacturing standards.

What Investors Should Do

1. Analyze LivaNova's revenue streams and growth drivers for the fiscal year 2023.
2. Examine the company's reported expenses, including R&D and cost of goods sold, to understand operational efficiency.
3. Review any disclosed risk factors related to regulatory changes, market competition, or product development.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-29: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending December 31, 2023. No prior period comparison data is available from this specific document.

Key Financial Figures

• $125 million — reement First Lien Credit Agreement for $125 million between LivaNova PLC and its wholly-own
• $50 million — try in 2017 Delayed Draw Term Facility $50 million delayed draw term facility under the 20
• $300 million — erning the Notes Initial Term Facility $300 million term facility under the 2021 First Lien
• $287.5 million — tute of Standards and Technology Notes $287.5 million aggregate principal amount of 3.00% sen

Filing Documents

• livn-20231231.htm (10-K) — 2835KB
• livn-20231231xex41.htm (EX-4.1) — 36KB
• hutchinsonofferletter_31.htm (EX-10.55) — 11KB
• livn-20231231xex211.htm (EX-21.1) — 26KB
• livn-20231231xex231.htm (EX-23.1) — 2KB
• livn-20231231xex311.htm (EX-31.1) — 9KB
• livn-20231231xex312.htm (EX-31.2) — 9KB
• livn-20231231xex321.htm (EX-32.1) — 8KB
• compensationrecoupmentpo.htm (EX-97.1) — 7KB
• compensationrecoupmentpo001.jpg (GRAPHIC) — 73KB
• compensationrecoupmentpo002.jpg (GRAPHIC) — 189KB
• compensationrecoupmentpo003.jpg (GRAPHIC) — 228KB
• hutchinsonofferletter_31001.jpg (GRAPHIC) — 205KB
• hutchinsonofferletter_31002.jpg (GRAPHIC) — 250KB
• hutchinsonofferletter_31003.jpg (GRAPHIC) — 225KB
• hutchinsonofferletter_31004.jpg (GRAPHIC) — 56KB
• livn-20231231_g1.jpg (GRAPHIC) — 24KB
• livn-20231231_g2.jpg (GRAPHIC) — 75KB
• 0001639691-24-000021.txt (&nbsp;) — 19228KB
• livn-20231231.xsd (EX-101.SCH) — 98KB
• livn-20231231_cal.xml (EX-101.CAL) — 167KB
• livn-20231231_def.xml (EX-101.DEF) — 654KB
• livn-20231231_lab.xml (EX-101.LAB) — 1327KB
• livn-20231231_pre.xml (EX-101.PRE) — 1030KB
• livn-20231231_htm.xml (XML) — 3212KB

PAGE NO

PART I PAGE NO. Item 1.

Business

Business 8 Item 1A.

Risk Factors

Risk Factors 18 Item 1B. Unresolved Staff Comments 31 Item 1C. Cybersecurity 31 Item 2.

Properties

Properties 33 Item 3.

Legal Proceedings

Legal Proceedings 33 Item 4. Mine Safety Disclosures 33 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 34 Item 6. [Reserved] 34 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 49 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 49 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 49 Item 9A.

Controls and Procedures

Controls and Procedures 49 Item 9B. Other Information 49 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 49 PART III Item 10. Directors, Executive Officers and Corporate Governance 50 Item 11.

Executive Compensation

Executive Compensation 50 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 50 Item 13. Certain Relationships and Related Transactions, and Director Independence 50 Item 14. Principal Accounting Fees and Services 50 PART IV Item 15. Exhibits and Financial Statement Schedules 51 Item 16. Form 10-K Summary 54 2 DEFINITIONS In this Annual Report on Form 10-K for the year ended December 31, 2023, the following terms and abbreviations have the meanings listed below. "LivaNova" and "the Company" refer to LivaNova PLC and its consolidated subsidiaries. Abbreviation Definition 2015 Plan LivaNova PLC 2015 Incentive Award Plan 2020 Restructuring Plan A plan, initiated during the fourth quarter of 2020, to reduce LivaNova's cost structure 2021 The year ended December 31, 2021 2021 First Lien Credit Agreement First Lien Credit Agreement for $125 million between LivaNova PLC and its wholly-owned subsidiary, Borrower, and Goldman Sachs Bank USA, as First Lien Administrative Agent and First Lien Collateral Agent, entered into on August 13, 2021 2022 The year ended December 31, 2022 2022 Plan LivaNova PLC 2022 Incentive Award Plan 2022 Restructuring Plan A plan, initiated during the second quarter of 2022, to implement a cost-optimization and cost reduction program to adapt to current economic conditions 2023 The year ended December 31, 2023 2024 Proxy Statement Definitive Proxy Statement for the annual meeting of shareholders scheduled for June 11, 2024 2024 Restructuring Plan A plan, initiated during the first quarter of 2024, to enhance LivaNova's focus on its core Cardiopulmonary and Neuromodulation segments A&R 2022 Plan Amended and Restated LivaNova PLC 2022 Incentive Award Plan ACS Advanced Circulatory Support ALung ALung Technologies, Inc. AOCI Accumulated other comprehensive income (loss) APAC Asia-Pacific ASMs Anti-seizure medications Audit Committee LivaNova's Audit and Compliance Committee Barclays Barclays

Business

Item 1. Business Description of the Business and Background LivaNova PLC is a market-leading global medical technology company. The Company designs, develops, manufactures, markets and sells products and therapies that are consistent with LivaNova's mission to provide hope for patients and their families through innovative medical technologies that deliver life-changing improvements. LivaNova is a public limited company organized under the laws of England and Wales and is headquartered in London, England. LivaNova's ordinary shares are listed for trading on the Nasdaq under the symbol "LIVN." Business Overview For the periods presented herein, LivaNova was comprised of three reportable segments: Cardiopulmonary, Neuromodulation and ACS. "Other" includes non-allocated corporate expenses for the years ended December 31, 2022 and 2023. For the year ended December 31, 2021, "Other" also includes the results of LivaNova's Heart Valve business, which was divested on June 1, 2021. During the first quarter of 2024, the Company reorganized its operating and reporting structure upon initiating the 2024 Restructuring Plan as further described below. In 2024, LivaNova's ACS segment will be included within "Other," excluding the ACS standalone cannulae and accessories business, which will be included within the Cardiopulmonary reportable segment. For further information regarding LivaNova's reportable segments, historical financial information and methodology for the presentation of financial results, please refer to "Item 15. Exhibits and Financial Statement Schedules" of this Report. Cardiopulmonary LivaNova's Cardiopulmonary segment is engaged in the design, development, manufacture, marketing and selling of cardiopulmonary products, including HLMs, oxygenators, autotransfusion systems, perfusion tubing systems, cannulae and other related accessories. It includes the Essenz Perfusion System, the Company's next-generation HLM with an embedded patient monitor for tail