2023 Q1 Form 10-Q Financial Statement

#000187278923000006 Filed on February 14, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2021 Q4
Revenue $277.1M $275.7M $289.3M
YoY Change 0.95% -4.7% 1.4%
Cost Of Revenue $87.30M $86.90M $85.40M
YoY Change 4.8% 1.76% -9.15%
Gross Profit $189.8M $188.8M $203.9M
YoY Change -0.73% -7.41% 6.59%
Gross Profit Margin 68.5% 68.48% 70.48%
Selling, General & Admin $85.20M $72.80M $62.20M
YoY Change 27.35% 17.04% 16.92%
% of Gross Profit 44.89% 38.56% 30.51%
Research & Development $22.10M $16.90M $16.70M
YoY Change 22.78% 1.2% 19.29%
% of Gross Profit 11.64% 8.95% 8.19%
Depreciation & Amortization $8.000M $7.200M $8.400M
YoY Change 19.4% -14.29% -9.68%
% of Gross Profit 4.21% 3.81% 4.12%
Operating Expenses $134.2M $100.0M $87.30M
YoY Change 45.4% 14.55% 29.91%
Operating Profit $55.60M $88.80M $116.6M
YoY Change -43.78% -23.84% -6.04%
Interest Expense -$26.80M -$25.60M $0.00
YoY Change -646.94%
% of Operating Profit -48.2% -28.83% 0.0%
Other Income/Expense, Net -$4.300M -$7.100M $0.00
YoY Change 4200.0% -100.0%
Pretax Income $24.50M $56.10M $116.6M
YoY Change -73.91% -51.89% -6.79%
Income Tax $10.50M $20.90M $17.80M
% Of Pretax Income 42.86% 37.25% 15.27%
Net Earnings $14.00M $35.20M $98.80M
YoY Change -82.41% -64.37% -6.17%
Net Earnings / Revenue 5.05% 12.77% 34.15%
Basic Earnings Per Share $0.24 $0.62 $1.73
Diluted Earnings Per Share $0.24 $0.61 $1.708M
COMMON SHARES
Basic Shares Outstanding 57.27M shares 57.07M shares 57.01M shares
Diluted Shares Outstanding 57.51M shares 57.48M shares 57.01M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2021 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $346.4M $385.2M
YoY Change 31.06%
Cash & Equivalents $346.4M $385.2M $0.00
Short-Term Investments
Other Short-Term Assets $99.60M $89.80M $20.90M
YoY Change 304.88% 329.67%
Inventory $157.6M $143.4M $119.1M
Prepaid Expenses
Receivables $19.10M $19.90M $118.3M
Other Receivables $133.6M $123.4M $0.00
Total Short-Term Assets $756.3M $761.7M $258.3M
YoY Change 77.33% 194.89%
LONG-TERM ASSETS
Property, Plant & Equipment $332.0M $321.6M $436.5M
YoY Change -6.66% -26.32%
Goodwill $15.70M $15.70M
YoY Change 0.0%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $97.70M $89.30M $11.20M
YoY Change 488.55% 697.32%
Total Long-Term Assets $453.7M $435.2M $481.6M
YoY Change 11.47% -9.63%
TOTAL ASSETS
Total Short-Term Assets $756.3M $761.7M $258.3M
Total Long-Term Assets $453.7M $435.2M $481.6M
Total Assets $1.210B $1.197B $739.9M
YoY Change 45.17% 61.77%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $52.50M $37.20M $58.10M
YoY Change 3.35% -35.97%
Accrued Expenses $146.6M $156.8M $101.0M
YoY Change 91.38% 55.25%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $9.500M $9.500M
YoY Change 0.0%
Total Short-Term Liabilities $357.7M $370.3M $159.1M
YoY Change 111.78% 132.75%
LONG-TERM LIABILITIES
Long-Term Debt $1.596B $1.597B $0.00
YoY Change 13.7%
Other Long-Term Liabilities $46.90M $33.30M
YoY Change
Total Long-Term Liabilities $1.596B $1.597B $0.00
YoY Change 13.7%
TOTAL LIABILITIES
Total Short-Term Liabilities $357.7M $370.3M $159.1M
Total Long-Term Liabilities $1.596B $1.597B $0.00
Total Liabilities $1.954B $1.967B $189.4M
YoY Change 24.23% 938.75%
SHAREHOLDERS EQUITY
Retained Earnings -$545.1M -$550.5M
YoY Change
Common Stock $600.0K $600.0K
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$822.6M -$836.1M $550.5M
YoY Change
Total Liabilities & Shareholders Equity $1.210B $1.197B $739.9M
YoY Change 45.17% 61.77%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2021 Q4
OPERATING ACTIVITIES
Net Income $14.00M $35.20M $98.80M
YoY Change -82.41% -64.37% -6.17%
Depreciation, Depletion And Amortization $8.000M $7.200M $8.400M
YoY Change 19.4% -14.29% -9.68%
Cash From Operating Activities -$13.00M $60.40M $138.8M
YoY Change -107.12% -56.48% 14.33%
INVESTING ACTIVITIES
Capital Expenditures $5.800M $4.700M -$4.300M
YoY Change -200.0% -209.3% -63.87%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$5.800M -$4.700M -$4.300M
YoY Change 0.0% 9.3% -63.87%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $2.400M $0.00
YoY Change
Cash From Financing Activities -20.70M -$6.100M -134.5M
YoY Change -122.92% -95.46% 22.83%
NET CHANGE
Cash From Operating Activities -13.00M $60.40M 138.8M
Cash From Investing Activities -5.800M -$4.700M -4.300M
Cash From Financing Activities -20.70M -$6.100M -134.5M
Net Change In Cash -39.50M $54.30M 0.000
YoY Change -114.79%
FREE CASH FLOW
Cash From Operating Activities -$13.00M $60.40M $138.8M
Capital Expenditures $5.800M $4.700M -$4.300M
Free Cash Flow -$18.80M $55.70M $143.1M
YoY Change -109.98% -61.08% 7.35%

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CY2021Q4 us-gaap Depreciation Depletion And Amortization
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CY2021Q4 us-gaap Amortization Of Financing Costs
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CY2022Q4 us-gaap Share Based Compensation
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CY2021Q4 us-gaap Share Based Compensation
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CY2022Q4 us-gaap Deferred Income Tax Expense Benefit
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CY2021Q4 embc Increase Decrease In Other Receivables And Other Accounts Payable Net
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CY2021Q4 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2022Q4 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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CY2021Q4 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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CY2022Q4 us-gaap Increase Decrease In Accrued Taxes Payable
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CY2021Q4 us-gaap Increase Decrease In Accrued Taxes Payable
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CY2021Q4 us-gaap Net Cash Provided By Used In Operating Activities
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CY2021Q4 us-gaap Payments To Acquire Property Plant And Equipment
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CY2021Q4 us-gaap Net Cash Provided By Used In Investing Activities
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CY2022Q4 us-gaap Payments Related To Tax Withholding For Share Based Compensation
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CY2022Q4 us-gaap Finance Lease Principal Payments
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CY2022Q4 embc Net Transfers To Parent Financing Activities
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CY2021Q4 embc Net Transfers To Parent Financing Activities
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CY2021Q4 us-gaap Net Cash Provided By Used In Financing Activities
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022Q4 us-gaap Dividends Payable Current And Noncurrent
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CY2021Q4 us-gaap Dividends Payable Current And Noncurrent
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CY2022Q4 us-gaap Nature Of Operations
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Background<div style="margin-bottom:6pt;margin-top:6pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:115%">Embecta Corp. ("Embecta" or the "Company") is a leading global medical device company focused on providing solutions to improve the health and well-being of people living with diabetes. The Company has a broad portfolio of marketed products, including a variety of pen needles, syringes and safety devices, which are complemented by a proprietary digital application designed to assist people with managing their diabetes. The Company primarily sells products to wholesalers and distributors that sell to retail and institutional channels who in turn sell to patients.</span></div><div style="margin-bottom:6pt;margin-top:6pt;text-align:justify"><span style="color:#2b2a29;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:115%">On April 1, 2022, Embecta and Becton, Dickinson and Company ("BD") entered into a Separation and Distribution Agreement (the "Separation and Distribution Agreement"). Pursuant to the Separation and Distribution Agreement, BD agreed to spin off its diabetes care business ("Diabetes Care Business") into Embecta, a new, publicly traded company (the "Separation"). </span></div><div style="margin-bottom:6pt;margin-top:6pt;text-align:justify"><span style="color:#2b2a29;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:115%">The Separation occurred by means of a pro-rata distribution of all of Embecta’s issued and outstanding shares of common stock on the basis of one share of Embecta common stock, par value $0.01 per share, for every five shares of BD common stock, par value $1.00 per share, held as of the close of business on March 22, 2022, the record date for the distribution. Embecta is now a standalone publicly traded company and, on April 1, 2022, regular-way trading of Embecta common stock commenced on the Nasdaq Global Select Market under the ticker symbol "EMBC".</span></div><div style="margin-bottom:6pt;margin-top:6pt;text-align:justify"><span style="color:#2b2a29;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:115%">In connection with the Separation, BD and Embecta entered into various agreements to provide a framework for the relationship between BD and Embecta after the Separation, including, but not limited to, a separation and distribution agreement, a transition services agreement, a tax matters agreement, an employee matters agreement, a cannula supply agreement, contract manufacturing agreements, an intellectual property matters agreement, a logistics services agreement, distribution agreements, factoring and receivables agreements, local support and service agreements and other transaction documents.</span></div>
CY2022Q2 us-gaap Common Stock Par Or Stated Value Per Share
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CY2022Q4 us-gaap Use Of Estimates
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The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates or assumptions affect reported assets, liabilities, revenues and expenses, including determining the allocation of shared costs and expenses from BD, depreciable and amortizable lives, sales returns and allowances, rebate accruals, inventory reserves and taxes on income as reflected in the Condensed Consolidated Financial Statements. Actual results could differ from these estimates.
CY2022Q4 us-gaap Hosting Arrangement Service Contract Implementation Cost Capitalized After Accumulated Amortization
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10900000 usd
CY2022Q4 embc Hosting Arrangement Service Contract Implementation Cost Term
HostingArrangementServiceContractImplementationCostTerm
P5Y
CY2021Q4 embc General Corporate Expenses
GeneralCorporateExpenses
26700000 usd
CY2021Q4 embc Net Parent Investment Cash Pooling And General Financing Activities
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CY2021Q4 embc Net Parent Investment Corporate And Segment Allocations Excluding Non Cash Share Based Compensation
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CY2021Q4 embc Net Parent Investment Taxes Deemed Settled With Parent
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CY2021Q4 embc Net Parent Investment Transfers Reflected As Cash Flows From Financing Activities
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CY2021Q4 embc Net Parent Investment Share Based Compensation Expense
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CY2021Q4 embc Net Parent Investment Pension Expense
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CY2021Q4 embc Net Parent Investment Other Transfers To From Parent Net
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CY2021Q4 embc Net Parent Investment Net Transfers To Parent
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CY2022Q4 embc Separation And Standup Costs
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CY2022Q4 us-gaap Restructuring Charges
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CY2021Q4 embc Separation And Standup Costs
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8400000 usd
CY2022Q4 us-gaap Loss Contingency Disclosures
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Contingencies The Company was not a party to any material legal proceedings at December 31, 2022 or September 30, 2022, nor is it a party to any material legal proceedings as of the date of issuance of these Condensed Consolidated Financial Statements.
CY2022Q4 us-gaap Contract With Customer Refund Liability
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CY2022Q3 us-gaap Contract With Customer Refund Liability
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CY2022Q4 embc Revenue From Contract With Customer Sales Deductions Recognized
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CY2021Q4 embc Revenue From Contract With Customer Sales Deductions Recognized
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CY2022Q4 us-gaap Contract With Customer Asset Net
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CY2022Q4 us-gaap Number Of Operating Segments
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CY2022Q4 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2021Q4 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2022Q4 us-gaap Allocated Share Based Compensation Expense
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CY2022Q4 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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CY2022Q4 embc Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Vested And Expected To Vest Outstanding Aggregate Intrinsic Value
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CY2022Q4 embc Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Exercisable Aggregate Intrinsic Value
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CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant
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CY2022Q3 us-gaap Goodwill
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CY2022Q4 us-gaap Intangible Assets Net Including Goodwill
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CY2022Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Four
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CY2022Q4 embc Long Term Debt Maturity After Year Four
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CY2022Q2 us-gaap Stock Issued During Period Shares New Issues
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CY2022Q2 us-gaap Common Stock Par Or Stated Value Per Share
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CY2021Q4 us-gaap Net Income Loss
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CY2021Q4 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2021Q4 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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CY2021Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2022Q4 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2021Q4 us-gaap Effective Income Tax Rate Continuing Operations
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CY2022Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022Q3 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2022Q4 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset Before Accumulated Depreciation And Amortization
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CY2022Q4 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset After Accumulated Depreciation And Amortization
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CY2022Q4 us-gaap Lessee Finance Lease Renewal Term1
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CY2022Q3 us-gaap Finance Lease Right Of Use Asset
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CY2022Q4 us-gaap Finance Lease Right Of Use Asset
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CY2022Q3 us-gaap Finance Lease Right Of Use Asset
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CY2022Q3 us-gaap Finance Lease Liability Current
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CY2022Q4 us-gaap Finance Lease Liability Noncurrent
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CY2022Q3 us-gaap Finance Lease Liability Noncurrent
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CY2022Q4 us-gaap Finance Lease Liability
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CY2022Q3 us-gaap Finance Lease Liability
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CY2022Q4 us-gaap Finance Lease Weighted Average Remaining Lease Term1
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P14Y3M18D
CY2022Q3 us-gaap Operating Lease Weighted Average Discount Rate Percent
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CY2022Q3 us-gaap Finance Lease Weighted Average Discount Rate Percent
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0.068
CY2022Q4 us-gaap Operating Lease Right Of Use Asset
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CY2022Q3 us-gaap Operating Lease Right Of Use Asset
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CY2022Q4 us-gaap Operating Lease Right Of Use Asset
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CY2022Q3 us-gaap Operating Lease Right Of Use Asset
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CY2022Q4 us-gaap Operating Lease Liability
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CY2022Q3 us-gaap Operating Lease Liability
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CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
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CY2022Q4 embc Lessee Lease Liability To Be Paid Remainder Of Fiscal Year
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CY2022Q4 us-gaap Finance Lease Liability Payments Due Next Twelve Months
FinanceLeaseLiabilityPaymentsDueNextTwelveMonths
3600000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
2600000 usd
CY2022Q4 embc Lessee Lease Liability To Be Paid Year One
LesseeLeaseLiabilityToBePaidYearOne
6200000 usd
CY2022Q4 us-gaap Finance Lease Liability Payments Due Year Two
FinanceLeaseLiabilityPaymentsDueYearTwo
3700000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
1300000 usd
CY2022Q4 embc Lessee Lease Liability To Be Paid Year Two
LesseeLeaseLiabilityToBePaidYearTwo
5000000.0 usd
CY2022Q4 us-gaap Finance Lease Liability Payments Due Year Three
FinanceLeaseLiabilityPaymentsDueYearThree
3700000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
1100000 usd
CY2022Q4 embc Lessee Lease Liability To Be Paid Year Three
LesseeLeaseLiabilityToBePaidYearThree
4800000 usd
CY2022Q4 us-gaap Finance Lease Liability Payments Due Year Four
FinanceLeaseLiabilityPaymentsDueYearFour
3800000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Four
LesseeOperatingLeaseLiabilityPaymentsDueYearFour
200000 usd
CY2022Q4 embc Lessee Lease Liability To Be Paid Year Four
LesseeLeaseLiabilityToBePaidYearFour
4000000.0 usd
CY2022Q4 embc Finance Lease Liability To Be Paid Due After Year Four
FinanceLeaseLiabilityToBePaidDueAfterYearFour
40100000 usd
CY2022Q4 embc Lessee Operating Lease Liability To Be Paid Due After Year Four
LesseeOperatingLeaseLiabilityToBePaidDueAfterYearFour
0 usd
CY2022Q4 embc Lessee Lease Liability To Be Paid Due After Year Four
LesseeLeaseLiabilityToBePaidDueAfterYearFour
40100000 usd
CY2022Q4 us-gaap Finance Lease Liability Payments Due
FinanceLeaseLiabilityPaymentsDue
57600000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due
LesseeOperatingLeaseLiabilityPaymentsDue
7400000 usd
CY2022Q4 embc Lessee Lease Liability To Be Paid
LesseeLeaseLiabilityToBePaid
65000000.0 usd
CY2022Q4 us-gaap Finance Lease Liability Undiscounted Excess Amount
FinanceLeaseLiabilityUndiscountedExcessAmount
21700000 usd
CY2022Q4 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
100000 usd
CY2022Q4 embc Lessee Lease Liability Undiscounted Excess Amount
LesseeLeaseLiabilityUndiscountedExcessAmount
21800000 usd
CY2022Q4 us-gaap Finance Lease Liability
FinanceLeaseLiability
35900000 usd
CY2022Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
7300000 usd
CY2022Q4 embc Lessee Lease Liability
LesseeLeaseLiability
43200000 usd
CY2022Q2 us-gaap Lessee Operating Lease Lease Not Yet Commenced Term Of Contract1
LesseeOperatingLeaseLeaseNotYetCommencedTermOfContract1
P10Y

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embc-20221231_cal.xml Edgar Link unprocessable
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0001872789-23-000006-index.html Edgar Link pending
0001872789-23-000006.txt Edgar Link pending
0001872789-23-000006-xbrl.zip Edgar Link pending
embc-12312022x10qexhibit311.htm Edgar Link pending
embc-12312022x10qexhibit312.htm Edgar Link pending
embc-12312022x10qexhibit321.htm Edgar Link pending
embc-12312022x10qexhibit322.htm Edgar Link pending
embc-20221231.htm Edgar Link pending
embc-20221231.xsd Edgar Link pending
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