2021 Q2 Form 10-Q Financial Statement

#000175789821000027 Filed on August 09, 2021

View on sec.gov

Income Statement

Concept 2021 Q2 2020 Q2
Revenue $968.4M $668.9M
YoY Change 44.77% -4.0%
Cost Of Revenue $542.1M $381.5M
YoY Change 42.09% -2.15%
Gross Profit $426.3M $287.4M
YoY Change 48.33% -6.36%
Gross Profit Margin 44.02% 42.96%
Selling, General & Admin $393.8M $155.2M
YoY Change 153.76% -13.21%
% of Gross Profit 92.37% 53.99%
Research & Development $18.19M $16.23M
YoY Change 12.08% 4.15%
% of Gross Profit 4.27% 5.65%
Depreciation & Amortization $83.62M $48.95M
YoY Change 70.82% 3.93%
% of Gross Profit 19.62% 17.03%
Operating Expenses $412.0M $171.6M
YoY Change 140.11% -12.36%
Operating Profit $14.32M $115.8M
YoY Change -87.63% 5.2%
Interest Expense $21.81M $9.492M
YoY Change 129.79% -9.12%
% of Operating Profit 152.28% 8.2%
Other Income/Expense, Net -$43.30M -$7.203M
YoY Change 501.15% -32.54%
Pretax Income -$28.98M $108.6M
YoY Change -126.68% 9.26%
Income Tax -$7.075M $19.08M
% Of Pretax Income 17.57%
Net Earnings -$21.81M $89.60M
YoY Change -124.34% 4.95%
Net Earnings / Revenue -2.25% 13.39%
Basic Earnings Per Share -$0.24 $1.05
Diluted Earnings Per Share -$0.24 $1.05
COMMON SHARES
Basic Shares Outstanding 90.15M shares 84.96M shares
Diluted Shares Outstanding 90.99M shares 85.68M shares

Balance Sheet

Concept 2021 Q2 2020 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $534.8M $255.6M
YoY Change 109.22% 7.35%
Cash & Equivalents $534.8M $255.6M
Short-Term Investments
Other Short-Term Assets $136.6M $61.40M
YoY Change 122.47% -2.54%
Inventory $593.1M $277.0M
Prepaid Expenses
Receivables $743.4M $503.2M
Other Receivables $0.00 $0.00
Total Short-Term Assets $2.008B $1.097B
YoY Change 83.01% 5.06%
LONG-TERM ASSETS
Property, Plant & Equipment $1.499B $1.148B
YoY Change 30.61% 8.9%
Goodwill $5.287B $2.372B
YoY Change 122.89% 1.04%
Intangibles $3.048B $551.5M
YoY Change 452.71% -8.41%
Long-Term Investments
YoY Change
Other Assets $51.45M $51.97M
YoY Change -1.01% -12.21%
Total Long-Term Assets $10.09B $4.267B
YoY Change 136.55% 1.94%
TOTAL ASSETS
Total Short-Term Assets $2.008B $1.097B
Total Long-Term Assets $10.09B $4.267B
Total Assets $12.10B $5.364B
YoY Change 125.6% 2.57%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $232.2M $133.5M
YoY Change 73.88% -1.44%
Accrued Expenses $300.8M $180.2M
YoY Change 66.91% -1.43%
Deferred Revenue
YoY Change
Short-Term Debt $6.875M $35.00M
YoY Change -80.36%
Long-Term Debt Due $6.875M
YoY Change
Total Short-Term Liabilities $1.145B $479.5M
YoY Change 138.77% 10.81%
LONG-TERM LIABILITIES
Long-Term Debt $3.257B $1.022B
YoY Change 218.61% -15.52%
Other Long-Term Liabilities $86.04M $86.39M
YoY Change -0.4% 1.55%
Total Long-Term Liabilities $3.343B $1.109B
YoY Change 201.55% -14.4%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.145B $479.5M
Total Long-Term Liabilities $3.343B $1.109B
Total Liabilities $5.516B $1.874B
YoY Change 194.31% -5.57%
SHAREHOLDERS EQUITY
Retained Earnings $1.875B $1.700B
YoY Change 10.27% 21.65%
Common Stock $4.737B $1.983B
YoY Change 138.87% -0.67%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $6.575B $3.475B
YoY Change
Total Liabilities & Shareholders Equity $12.10B $5.364B
YoY Change 125.6% 2.57%

Cashflow Statement

Concept 2021 Q2 2020 Q2
OPERATING ACTIVITIES
Net Income -$21.81M $89.60M
YoY Change -124.34% 4.95%
Depreciation, Depletion And Amortization $83.62M $48.95M
YoY Change 70.82% 3.93%
Cash From Operating Activities $97.43M $134.1M
YoY Change -27.36% 22.67%
INVESTING ACTIVITIES
Capital Expenditures $56.40M $66.86M
YoY Change -15.65% 34.28%
Acquisitions $547.4M $0.00
YoY Change -100.0%
Other Investing Activities -$547.1M $100.0K
YoY Change -547236.0%
Cash From Investing Activities -$603.5M -$66.72M
YoY Change 804.52% -20.86%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $10.67M $14.30M
YoY Change -25.36% -3.96%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $818.8M -$134.0M
YoY Change -711.05% 1661.54%
NET CHANGE
Cash From Operating Activities $97.43M $134.1M
Cash From Investing Activities -$603.5M -$66.72M
Cash From Financing Activities $818.8M -$134.0M
Net Change In Cash $314.2M -$63.95M
YoY Change -591.36% -466.83%
FREE CASH FLOW
Cash From Operating Activities $97.43M $134.1M
Capital Expenditures $56.40M $66.86M
Free Cash Flow $41.03M $67.26M
YoY Change -39.0% 12.96%

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Nature of Operations and Summary of Significant Accounting Policies<div style="margin-bottom:6pt;margin-top:6pt"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Nature of Operations</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">STERIS is a leading global provider of products and services that meet the needs of healthcare growth areas: procedures, devices, pharmaceuticals and dental. Ou</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">r MISSION IS TO HELP OUR CUSTOMERS CREATE A HEALTHIER AND SAFER WORLD by providing innovative healthcare and life science products and services around the globe. We offer our Customers a unique mix of innovative consumable products, such as detergents, gastrointestinal ("GI") endoscopy accessories, barrier product solutions, and other products and services, including: equipment installation and maintenance, microbial reduction of medical devices, dental instruments and tools, instrument and scope repair solutions, laboratory testing services, outsourced reprocessing, and capital equipment products, such as sterilizers and surgical tables, automated endoscope reprocessors, and connectivity solutions such as operating room (“OR”) integrati</span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">on. </span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our fiscal year ends on March 31. References in this Quarterly Report to a particular “year” or “year-end” mean our fiscal year. The significant accounting policies applied in preparing the accompanying consolidated financial statements of the Company are summarized below:</span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">On June 2, 2021, we completed our previously announced acquisition of Cantel Medical Corp. Refer to note 2 titled, "Business Acquisitions" for additional information regarding this acquisition.</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Interim Financial Statements</span></div><div style="margin-bottom:6pt;margin-top:6pt;text-indent:15.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We prepared the accompanying unaudited consolidated financial statements of the Company according to accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. This means that they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Our unaudited interim consolidated financial statements contain all material adjustments (including normal recurring accruals and adjustments) management believes are necessary to fairly state our financial condition, results of operations, and cash flows for the periods presented.</span></div><div style="margin-bottom:6pt;margin-top:6pt;text-indent:15.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">These interim consolidated financial statements should be read together with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended March 31, 2021 dated May 28, 2021. The Consolidated Balance Sheet at March 31, 2021 was derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Principles of Consolidation</span></div><div style="margin-bottom:6pt;margin-top:6pt;text-indent:15.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We use the consolidation method to report our investment in our subsidiaries. Therefore, the accompanying consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. We eliminate inter-company accounts and transactions when we consolidate these accounts. Investments in equity of unconsolidated affiliates, over which the Company has significant influence, but not control, over the financial and operating polices, are accounted for primarily using the equity method. These investments are immaterial to the Company's Consolidated Financial Statements.</span></div><div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-bottom:6pt;margin-top:6pt;text-indent:15.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We make certain estimates and assumptions when preparing financial statements according to U.S. GAAP that affect the reported amounts of assets and liabilities at the financial statement dates and the reported amounts of revenues and expenses during the periods presented. These estimates and assumptions involve judgments with respect to many factors that are difficult to predict and are beyond our control. Actual results could be materially different from these estimates. We revise the estimates and assumptions as new information becomes available. This means that operating results for the three month period ended June 30, 2021 are not necessarily indicative of results that may be expected for future quarters or for the full fiscal year ending March 31, 2022.</span></div><div style="margin-bottom:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Revenue Recognition and Associated Liabilities</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Revenue is recognized when obligations under the terms of the contract are satisfied and control of the promised products or services have transferred to the Customer. Revenues are measured at the amount of consideration that we expect to be paid in exchange for the products or services. Product revenue is recognized when control passes to the Customer, which is generally based on contract or shipping terms. Service revenue is recognized when the Customer benefits from the service, which occurs either upon completion of the service or as it is provided to the Customer. Our Customers include end users as well as dealers and distributors who market and sell our products. Our revenue is not contingent upon resale by the dealer or distributor, and we have no further obligations related to bringing about resale. Our standard return and restocking fee policies are applied to sales of products. Shipping and handling costs charged to Customers are included in Product revenues. The associated expenses are treated as fulfillment costs and are included in Cost of revenues. Revenues are reported net of sales and value-added taxes collected from Customers.</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We have individual Customer contracts that offer discounted pricing. Dealers and distributors may be offered sales incentives in the form of rebates. We reduce revenue for discounts and estimated returns, rebates, and other similar allowances in the same period the related revenues are recorded. The reduction in revenue for these items is estimated based on historical experience and trend analysis to the extent that it is probable that a significant reversal of revenue will not occur. Estimated returns are recorded gross on the Consolidated Balance Sheets.</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In transactions that contain multiple performance obligations, such as when products, maintenance services, and other services are combined, we recognize revenue as each product is delivered or service is provided to the Customer. We allocate the total arrangement consideration to each performance obligation based on its relative standalone selling price, which is the price for the product or service when it is sold separately.</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Payment terms vary by the type and location of the Customer and the products or services offered. Generally, the time between when revenue is recognized and when payment is due is not significant. We do not evaluate whether the selling price contains a financing component for contracts that have a duration of less than one year.</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We do not capitalize sales commissions as substantially all of our sales commission programs have an amortization period of one year or less.</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Certain costs to fulfill a contract are capitalized and amortized over the term of the contract if they are recoverable, directly related to a contract and generate resources that we will use to fulfill the contract in the future. At June 30, 2021, assets related to costs to fulfill a contract were not material to our Consolidated Financial Statements.</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Refer to Note 9, titled "Business Segment Information" for disaggregation of revenue.</span></div><div style="margin-bottom:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Product Revenue</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Product revenues consist of revenues generated from sales of consumables and capital equipment. These contracts are primarily based on a Customer’s purchase order and may include a Distributor, Dealer or Group Purchasing Organization ("GPO") agreement.</span><span style="color:#ff0000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We recognize revenue for sales of product when control passes to the Customer, which generally occurs either when the products are shipped or when they are received by the Customer. Revenue related to capital equipment products is deferred until installation is complete if the capital equipment and installation are highly integrated and form a single performance obligation.</span></div><div style="margin-bottom:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Service Revenue</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Within our Healthcare and Life Sciences segments, service revenues consist of revenue generated from parts and labor associated with the maintenance, repair and installation of capital equipment. These contracts are primarily based on a Customer’s purchase order and may include a Distributor, Dealer, or Group Purchasing Organization ("GPO") agreement. For maintenance, repair and installation of capital equipment, revenue is recognized upon completion of the service. Healthcare service revenues also include outsourced reprocessing services and instrument repairs. Contracts for outsourced reprocessing services are primarily based on an agreement with a Customer, ranging in length from several months to 15 years. Outsourced reprocessing services revenue is recognized ratably over the contract term using a time-based input measure, adjusted for volume and other performance metrics, to the extent that it is probable that a significant reversal of revenue will not occur. Contracts for instrument repairs are primarily based on a Customer’s purchase order, and the associated revenue is recognized upon completion of the repair. </span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We also offer preventive maintenance and separately priced extended warranty agreements to our Customers, which require us to maintain and repair our products over the duration of the contract. Generally, these contract terms are cancelable </span></div><div style="margin-bottom:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">without penalty and range from one to five years. Amounts received under these Customer contracts are initially recorded as a service liability and are recognized as service revenue ratably over the contract term using a time-based input measure. </span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Within our Applied Sterilization Technologies segment, service revenues include contract sterilization and laboratory services. Sales contracts for contract sterilization and laboratory services are primarily based on a Customer’s purchase order and associated Customer agreement and revenues are generally recognized upon completion of the service.</span></div><div style="margin-bottom:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Contract Liabilities</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Payments received from Customers are based on invoices or billing schedules as established in contracts with Customers. Deferred revenue is recorded when payment is received in advance of performance under the contract. Deferred revenue is recognized as revenue upon completion of the performance obligation, which generally occurs within one year. During the first three months of fiscal </span><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">2022, $35,722 of </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">the March 31, 2021 deferred revenue balance was recorded as revenue. During the first three months of fiscal 2021, $30,804 of the March 31, 2020 deferred revenue balance was recorded as revenue.</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Refer to Note 6, titled "Additional Consolidated Balance Sheet Information" for Deferred revenue balances.</span></div><div style="margin-bottom:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Service Liabilities</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Payments received in advance of performance for cancellable preventive maintenance and separately priced extended warranty contracts are recorded as service liabilities. Service liabilities are recognized as revenue as performance is rendered under the contract. </span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Refer to Note 6, titled "Additional Consolidated Balance Sheet Information" for Service liability balances.</span></div><div style="margin-bottom:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Remaining Performance Obligations</span></div><div style="margin-bottom:6pt;text-indent:18pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Remaining performance obligations reflect only the performance obligations related to agreements for which we have a firm commitment from a Customer to purchase and exclude variable consideration related to unsatisfied performance obligations. With regard to products, these remaining performance obligations include capital equipment and consumable orders which have not shipped. With regard to service, these remaining performance obligations primarily include installation, certification, and outsourced reprocessing services. As of June 30, 2021, the transaction price allocated to remaining performance obligations was approximately $1,371,500. We expect to recognize approximately 55% of the transaction price within one year and approximately 37% beyond one year. The remainder has yet to be scheduled for delivery. </span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Recently Issued Accounting Standards Impacting the Company</span></div><div><span><br/></span></div><div style="text-indent:18pt"><span style="background-color:#ffffff;color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Recently Issued Accounting Standards Impacting the Company are presented in the following table:</span></div><div style="margin-bottom:6pt;margin-top:6pt"><table style="border-collapse:collapse;display:inline-table;margin-bottom:5pt;vertical-align:text-bottom;width:98.830%"><tr><td style="width:1.0%"/><td style="width:14.136%"/><td style="width:0.1%"/><td style="width:0.1%"/><td style="width:0.539%"/><td style="width:0.1%"/><td style="width:1.0%"/><td style="width:9.107%"/><td style="width:0.1%"/><td style="width:0.1%"/><td style="width:0.539%"/><td style="width:0.1%"/><td style="width:1.0%"/><td style="width:37.361%"/><td style="width:0.1%"/><td style="width:0.1%"/><td style="width:0.539%"/><td style="width:0.1%"/><td style="width:1.0%"/><td style="width:7.331%"/><td style="width:0.1%"/><td style="width:0.1%"/><td style="width:0.539%"/><td style="width:0.1%"/><td style="width:1.0%"/><td style="width:23.609%"/><td style="width:0.1%"/></tr><tr><td colspan="3" style="border-left:1pt solid #000000;border-top:1pt solid #000000;padding:2px 1pt;text-align:center;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:700;line-height:100%">Standard</span></td><td colspan="3" style="border-bottom:1pt solid #000000;border-top:1pt solid #000000;padding:0 1pt"/><td colspan="3" style="border-bottom:1pt solid #000000;border-top:1pt solid #000000;padding:2px 1pt;text-align:center;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:700;line-height:100%">Date of Issuance</span></td><td colspan="3" style="border-bottom:1pt solid #000000;border-top:1pt solid #000000;padding:0 1pt"/><td colspan="3" style="border-bottom:1pt solid #000000;border-top:1pt solid #000000;padding:2px 1pt;text-align:center;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:700;line-height:100%">Description</span></td><td colspan="3" style="border-bottom:1pt solid #000000;border-top:1pt solid #000000;padding:0 1pt"/><td colspan="3" style="border-bottom:1pt solid #000000;border-top:1pt solid #000000;padding:2px 1pt;text-align:center;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:700;line-height:100%">Date of Adoption</span></td><td colspan="3" style="border-bottom:1pt solid #000000;border-top:1pt solid #000000;padding:0 1pt"/><td colspan="3" style="border-bottom:1pt solid #000000;border-right:1pt solid #000000;border-top:1pt solid #000000;padding:2px 1pt;text-align:center;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:9pt;font-weight:700;line-height:100%">Effect on the financial statements or other significant matters</span></td></tr><tr><td colspan="27" style="background-color:#cceeff;border-bottom:1pt solid #000000;border-left:1pt solid #000000;border-right:1pt solid #000000;border-top:1pt solid #000000;padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">Standards that have been adopted in fiscal 2022</span></td></tr><tr style="height:5pt"><td colspan="27" style="border-left:1pt solid #000000;border-right:1pt solid #000000;border-top:1pt solid #000000;padding:0 1pt"/></tr><tr><td colspan="3" style="background-color:#ffffff;border-left:1pt solid #000;border-top:1pt solid #000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">ASU 2019-12 "Income Taxes (Topic 740)"</span></td><td colspan="3" style="border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="border-top:1pt solid #000;padding:2px 1pt;text-align:center;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">December 2019</span></td><td colspan="3" style="border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="border-top:1pt solid #000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">The standard provides final guidance that simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The guidance simplifies accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. .</span></td><td colspan="3" style="border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="border-top:1pt solid #000;padding:2px 1pt;text-align:center;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">First Quarter Fiscal 2022</span></td><td colspan="3" style="border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="border-right:1pt solid #000000;border-top:1pt solid #000;padding:2px 1pt;text-align:left;vertical-align:top"><div style="margin-bottom:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">We adopted this standard effective April 1, 2021 with no material impact to our consolidated financial statements.</span></div></td></tr><tr><td colspan="3" style="background-color:#ffffff;border-left:1pt solid #000;border-top:1pt solid #000;padding:2px 1pt;text-align:left;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">ASU 2020-06 "Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)"</span></td><td colspan="3" style="background-color:#ffffff;border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="background-color:#ffffff;border-top:1pt solid #000;padding:2px 1pt;text-align:center;vertical-align:top"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">August 2020</span></td><td colspan="3" style="background-color:#ffffff;border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="background-color:#ffffff;border-top:1pt solid #000;padding:2px 1pt;text-align:left;vertical-align:top"><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">This standard simplifies the accounting for convertible instruments and its application of the derivatives scope exception for contracts in an entity’s own equity. The standard reduces the number of accounting models that require separating embedded conversion features from convertible instruments. As a result, only conversion features accounted for under the substantial premium model and those that require bifurcation will be accounted for separately. For contracts in an entity’s own equity, the new standard eliminates some of the current requirements for equity classification. The standard also addresses how convertible instruments are accounted for in the diluted earnings per share calculation and requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. </span></div></td><td colspan="3" style="background-color:#ffffff;border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="background-color:#ffffff;border-top:1pt solid #000;padding:2px 1pt;text-align:left;vertical-align:top"><div style="text-align:center"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">First Quarter Fiscal 2022</span></div></td><td colspan="3" style="background-color:#ffffff;border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="border-right:1pt solid #000000;border-top:1pt solid #000;padding:2px 1pt;text-align:left;vertical-align:top"><div style="margin-bottom:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:100%">We adopted this standard effective April 1, 2021 and applied it to our accounting for the convertible debt assumed in the acquisition of Cantel Medical Corp. ("Cantel"). </span></div></td></tr><tr style="height:3pt"><td colspan="3" style="background-color:#ffffff;border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="border-top:1pt solid #000;padding:0 1pt"/><td colspan="3" style="border-top:1pt solid #000000;padding:0 1pt"/></tr><tr style="height:11pt"><td colspan="3" style="background-color:#ffffff;padding:0 1pt"/><td colspan="3" style="padding:0 1pt"/><td colspan="3" style="padding:0 1pt"/><td colspan="3" style="padding:0 1pt"/><td colspan="3" style="padding:0 1pt"/><td colspan="3" style="padding:0 1pt"/><td colspan="3" style="padding:0 1pt"/><td colspan="3" style="padding:0 1pt"/><td colspan="3" style="padding:0 1pt"/></tr><tr><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/></tr><tr><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/></tr><tr><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/><td colspan="3" style="display:none"/></tr><tr><td colspan="3" style="display:none"/></tr></table></div><div style="margin-bottom:6pt;margin-top:6pt;text-indent:15.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">A detailed description of our significant and critical accounting policies, estimates, and assumptions is included in our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2021 dated May 28, 2021. Our significant and critical accounting policies, estimates, and assumptions have not changed materially from March 31, 2021.</span></div>
CY2021Q2 ste Consideration Related To Equity Component Of Convertible Debt
ConsiderationRelatedToEquityComponentOfConvertibleDebt
175555000 USD
CY2021Q2 ste Cantel Acquisition Assumed Debt Obligations
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721284000 USD
CY2021Q2 us-gaap Use Of Estimates
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<div style="margin-bottom:6pt;margin-top:6pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-bottom:6pt;margin-top:6pt;text-indent:15.75pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We make certain estimates and assumptions when preparing financial statements according to U.S. GAAP that affect the reported amounts of assets and liabilities at the financial statement dates and the reported amounts of revenues and expenses during the periods presented. These estimates and assumptions involve judgments with respect to many factors that are difficult to predict and are beyond our control. Actual results could be materially different from these estimates. We revise the estimates and assumptions as new information becomes available. This means that operating results for the three month period ended June 30, 2021 are not necessarily indicative of results that may be expected for future quarters or for the full fiscal year ending March 31, 2022.</span></div>
CY2021Q2 us-gaap Deferred Revenue Revenue Recognized1
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35722000 USD
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30804000 USD
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1371500000 USD
CY2021Q2 dei Entity Number Of Employees
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3700
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716412000 USD
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2689317000 USD
CY2021Q2 ste Consideration Transferred Equity Awards Issued And Issuable
ConsiderationTransferredEquityAwardsIssuedAndIssuable
18173000 USD
CY2021Q2 ste Contingent Consideration Liability Assumed In Cantel Combination
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25000000 USD
CY2021Q2 ste Net Sales Attributable To Cantel
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101758000 USD
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-133190000 USD
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CY2020Q2 us-gaap Business Acquisitions Pro Forma Revenue
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-90382000 USD
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CY2021Q2 us-gaap Inventory Work In Process
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CY2021Q1 us-gaap Inventory Work In Process
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54283000 USD
CY2021Q2 us-gaap Inventory Finished Goods
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CY2021Q1 us-gaap Inventory Finished Goods
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176623000 USD
CY2021Q2 us-gaap Inventory Valuation Reserves
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CY2021Q1 us-gaap Inventory Valuation Reserves
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19778000 USD
CY2021Q2 us-gaap Inventory Net
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CY2021Q1 us-gaap Inventory Net
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CY2021Q2 us-gaap Land
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84154000 USD
CY2021Q1 us-gaap Land
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662527000 USD
CY2021Q1 us-gaap Buildings And Improvements Gross
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567132000 USD
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866896000 USD
CY2021Q1 us-gaap Machinery And Equipment Gross
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779044000 USD
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224584000 USD
CY2021Q1 ste Capitalized Computer Hardware Software Gross
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193222000 USD
CY2021Q2 us-gaap Materials Supplies And Other
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CY2021Q1 us-gaap Materials Supplies And Other
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CY2021Q1 us-gaap Construction In Progress Gross
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211381000 USD
CY2021Q2 us-gaap Property Plant And Equipment Gross
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CY2021Q1 us-gaap Property Plant And Equipment Gross
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2385937000 USD
CY2021Q2 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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CY2021Q1 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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1150537000 USD
CY2021Q2 us-gaap Property Plant And Equipment Net
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1499448000 USD
CY2021Q1 us-gaap Property Plant And Equipment Net
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1235400000 USD
CY2021Q2 us-gaap Short Term Borrowings
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CY2021Q1 us-gaap Short Term Borrowings
ShortTermBorrowings
0 USD
CY2021Q2 us-gaap Short Term Borrowings
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6875000 USD
CY2021Q1 us-gaap Short Term Borrowings
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CY2021Q1 us-gaap Senior Notes
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CY2021Q2 ste Term Loan
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418125000 USD
CY2021Q1 ste Term Loan
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550000000 USD
CY2021Q2 ste Delayed Draw Term Loan
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CY2021Q1 ste Delayed Draw Term Loan
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CY2021Q1 us-gaap Finance Lease Liability
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CY2021Q2 ste Delayed Draw Term Loan
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650000000 USD
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0.33787 shares
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8.4752 shares
CY2021Q2 ste Debt Instrument Convertible Cash Per One Thousand Dollars Ratio
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424.68
CY2021Q2 ste Debt Instrument Convertible Increase In Conversion Rate Shares
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0.9931 shares
CY2021Q2 ste Debt Instrument Convertible Stock Price
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81.3520
CY2021Q2 ste Consideration Related To Equity Component Of Convertible Debt
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175555000 USD
CY2021Q2 ste Convertible Debt Premium Liability
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198478000 USD
CY2021Q2 ste Long Term Debt Daily Volume Weighted Average Price
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208.45
CY2021Q2 ste Long Term Debt Increase Decrease In Daily Volume Weighted Average Price Percent
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0.050
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11300000 USD
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168000000 USD
CY2021Q2 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
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142875000 USD
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60000000 USD
CY2021Q2 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Four
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165938000 USD
CY2021Q2 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Five
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502500000 USD
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2416406000 USD
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CY2021Q1 us-gaap Employee Related Liabilities Current And Noncurrent
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CY2021Q1 us-gaap Accrued Vacation Current And Noncurrent
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CY2021Q2 us-gaap Accrued Bonuses Current And Noncurrent
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CY2021Q1 us-gaap Accrued Bonuses Current And Noncurrent
AccruedBonusesCurrentAndNoncurrent
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CY2021Q2 us-gaap Accrued Liabilities For Commissions Expense And Taxes
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CY2021Q1 us-gaap Accrued Liabilities For Commissions Expense And Taxes
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CY2021Q2 us-gaap Other Postretirement Benefits Payable Current And Noncurrent
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CY2021Q1 us-gaap Other Postretirement Benefits Payable Current And Noncurrent
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1326000 USD
CY2021Q2 us-gaap Pension And Other Postretirement And Postemployment Benefit Plans Liabilities Current And Noncurrent
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2831000 USD
CY2021Q1 us-gaap Pension And Other Postretirement And Postemployment Benefit Plans Liabilities Current And Noncurrent
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2654000 USD
CY2021Q2 us-gaap Employee Related Liabilities Current
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CY2021Q1 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
150078000 USD
CY2021Q2 us-gaap Deferred Revenue
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CY2021Q1 us-gaap Deferred Revenue
DeferredRevenue
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CY2021Q2 ste Serviceliabilities
Serviceliabilities
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CY2021Q1 ste Serviceliabilities
Serviceliabilities
46720000 USD
CY2021Q2 us-gaap Self Insurance Reserve Current
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CY2021Q1 us-gaap Self Insurance Reserve Current
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CY2021Q2 us-gaap Accrued Sales Commission Current And Noncurrent
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31851000 USD
CY2021Q1 us-gaap Accrued Sales Commission Current And Noncurrent
AccruedSalesCommissionCurrentAndNoncurrent
27348000 USD
CY2021Q2 us-gaap Product Warranty Accrual
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CY2021Q1 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
9406000 USD
CY2021Q2 us-gaap Asset Retirement Obligation Current
AssetRetirementObligationCurrent
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