6a7a90848774ad1b1b164f1df0adbdb41429f2b9dc165b2f47977ebf6ee3bc52

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

9728d4768ca71a1974fe798a6f195118d0efb49fcb775fc0f481f6c19093fe73

Net income (USD, millions)

Depreciation and amortization (USD, millions)

Non-cash operating lease cost (USD, millions)

Stock‐based compensation (USD, millions)

Deferred income taxes (USD, millions)

Other adjustments – reconciling items (USD, millions)

Income taxes – operating adjustments (USD, millions)

Other changes in operating assets/liabilities (USD, millions)

Net cash provided by operating activities (USD, millions)

Capital expenditures (USD, millions)

Purchases of held‐to‐maturity investments (USD, millions)

Proceeds from held‐to‐maturity investments (USD, millions)

Purchases of available‐for‐sale investments (USD, millions)

Proceeds from available‐for‐sale investments (USD, millions)

Investments in intangible assets (USD, millions)

Payment for acquisition options (USD, millions)

Issuances of notes receivable (USD, millions)

Other investing activities (USD, millions)

Net cash provided by investing activities (USD, millions)

Purchases of treasury stock (USD, millions)

Proceeds from stock plans (USD, millions)

Other financing activities (USD, millions)

Net cash used in financing activities (USD, millions)

Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash (USD, millions)

Net increase in cash, cash equivalents, and restricted cash (USD, millions)

Cash, cash equivalents, and restricted cash at beginning of period (USD, millions)

Cash, cash equivalents, and restricted cash at end of period (USD, millions)

2d2c944db4b18f61e8f8137aa63a1bc8d32d9c34680286fb5c0fd85b57a9b38d

Transcatheter Aortic Valve Replacement (TAVR)

Transcatheter Mitral and Tricuspid Therapies (TMTT)

Surgical Structural Heart

Critical Care

Transcatheter Heart Valve Therapy (THVT)

Surgical Heart Valve Therapy (SHVT)

Total Revenue

4c2cb2f91589f3e9087e1158234710096ce021480d23e82925ef24a00843bbe1

United States

Europe

- Segment Europe

Japan

- Segment Japan

Rest of World

- Segment Rest of World

- Total Segment Revenue

2de5f5a9b91daa847b37cfbd88d744dbc4abea7d6a956b818abc0f36c9a6913e

e5f68e3865f88a5c5c77e70d211bfd312fe52dc20b34c88e8ebf9e273e752e71

Net Sales (USD, millions)

Cost of Sales (USD, millions)

Gross Profit (USD, millions)

Selling, General, and Administrative Expenses (USD, millions)

Research and Development Expenses (USD, millions)

Intellectual Property Agreement and Certain Litigation Expenses (USD, millions)

Other Operating Expenses, Net (USD, millions)

Operating Income, Net (USD, millions)

Interest Income, Net (USD, millions)

Other Non-Operating Income, Net (USD, millions)

Income from Continuing Operations Before Provision for Income Taxes (USD, millions)

Provision for Income Taxes (USD, millions)

Net Income from Continuing Operations (USD, millions)

Income from Discontinued Operations, Net of Tax (USD, millions)

Net Income (USD, millions)

Net Loss Attributable to Noncontrolling Interest (USD, millions)

Net Income Attributable to Edwards Lifesciences Corporation (USD, millions)

f70252df13844b30c1086e7ef833f30a7bb4e1e2a4fd85f846601f6e675c0e5d

04911dcfed1e76b7c54f8f8ddf740848827ccac1873b178e9a39360900189577

The operating cash flow turned negative primarily due to a **$305.1 million tax deposit** made in Q1 2024 to mitigate interest on potential tax liabilities that the company is contesting through a judicial process.  **[0001099800-24-000039_ew-20240331.htm:34]** **[0001099800-24-000039_ew-20240331.htm:3]** 

Why did Operating Cash Flow turn negative in Q1 2024?

The massive jump in **Net Income** in Q3 2024 was driven by a combination of factors. These include a **significant one-time gain from the sale of the Critical Care business** that contributed notably to earnings, along with several **special items**—namely a restructuring charge, a gain on the original investment in Endotronix, and a **$30 million charitable donation**. Additionally, the quarter benefited from **strong operational performance**, marked by a **9% sales growth** from continuing operations driven by the strong performance of its **TAVR** and **TMTT** product groups, even after a modest negative impact from foreign exchange effects.  **[0001099800-24-000084_ex-991q32024.htm:0]** **[EW_3403883_6]** 

What factors led to the massive jump in Net Income in Q3 2024?

The dramatic surge in Q3 2024 is primarily explained by the **sale of the Critical Care product group**, which generated **$3,927.4 million** in proceeds. This substantial inflow overshadowed the typical investing cash flows, despite being partially offset by **slightly higher capital expenditures** and a significantly **higher business combination payment** compared to Q3 2023.  **[0001099800-24-000086_ew-20240930.htm:51]** **[0001099800-24-000086_ew-20240930.htm:5]** 

What explains the dramatic surge in Investing Cash Flow in Q3 2024?

The increase in the cash balance during Q3 2024 was largely due to a one-time, significant cash inflow from the **sale of the Critical Care Business** for **$4.2 billion**, which dramatically boosted cash reserves. Additionally, strong net cash provided by both **investing** and **operating activities** further contributed to the rise, even though the company also utilized cash for a **$1 billion stock repurchase program**. These combined factors nearly doubled the cash balance by the end of Q3 2024.  **[0001099800-24-000086_ew-20240930.htm:49]** 

How did the cash balance nearly double in Q3 2024?

c0ea8ab80102525c492387bb2ca351f45ad87eefe00eb809ceeab8b743cb6dcb

The sharp surge in **Cash and Cash Equivalents** in Q3 2024 was primarily driven by the **sale of the Critical Care product group for $4.2 billion in an all‑cash transaction**. This significant inflow was complemented by robust operating cash flow, although partially offset by **stock repurchases costing $1.2 billion** and **acquisitions spending $763.6 million** in cash on various medical device companies.  **[0001099800-24-000086_ew-20240930.htm:49]** **[0001099800-24-000086_ew-20240930.htm:3]** 

What drove the sharp surge in Cash and Cash Equivalents in Q3 2024?

The significant increase in Total Assets in Q3 2024 was driven by several factors. **Cash and cash equivalents** surged from **$1,132.3 million** to **$3,676.4 million**, largely due to the one-time gain from the sale of the Critical Care product group.  **[0001099800-24-000086_ew-20240930.htm:3]** **[0001099800-24-000084_ex-991q32024.htm:0]** **[0001099800-24-000086_ew-20240930.htm:42]**  Additionally, **short-term investments** increased from **$500.5 million** to **$769.7 million**, and **inventories** grew from **$903.5 million** to **$1,104.2 million**.  **[0001099800-24-000086_ew-20240930.htm:3]**  Further contributing were the increases in **goodwill** (from **$1,145.1 million** to **$1,605.3 million**) and **other intangible assets** (from **$399.4 million** to **$956.1 million**), along with a rise in **deferred income taxes** (from **$749.4 million** to **$888.4 million**).  **[0001099800-24-000086_ew-20240930.htm:3]** 

What factors contributed to the significant increase in Total Assets in Q3 2024?

1c56df06d5372c46de1b3ccb6e2f33aa2b80f2bf5172ec5eeed80a9d319cd002

The documents do not indicate that there was a sharp drop in Q2 2024 net sales. In fact, they report that net sales for Edwards Lifesciences in Q2 2024 increased, with key drivers being growth in Transcatheter Mitral and Tricuspid Therapies, a modest increase in TAVR sales, regional sales gains, and steady surgical structural heart performance.  **[0001099800-24-000078_ew-20240630.htm:34]** **[0001099800-24-000078_ew-20240630.htm:29]** **[0001099800-24-000078_ew-20240630.htm:4]** 

What factors contributed to the sharp drop in net sales in Q2 2024?

The low tax provision in Q2 2024 was primarily driven by a **significant drop in the effective income tax rate**. This reduction was mainly due to:

- **Increased tax benefits from foreign earnings** that were taxed at lower statutory rates.  **[0001099800-24-000078_ew-20240630.htm:36]** **[0001099800-24-000078_ew-20240630.htm:25]** 
- **Favorable global income tax audit settlements** that helped reduce the overall tax expense.  **[0001099800-24-000078_ew-20240630.htm:36]** **[0001099800-24-000078_ew-20240630.htm:25]** 
- **Tax benefits from employee share‐based compensation**, which were lower in Q2 2024 (at **$3.8 million** compared to **$8.1 million** in Q2 2023).  **[0001099800-24-000078_ew-20240630.htm:25]** 

These factors collectively led to the notably lower tax provision in Q2 2024.  **[0001099800-24-000078_ew-20240630.htm:36]** **[0001099800-24-000078_ew-20240630.htm:25]** **[0001099800-24-000069_ex-991q22024.htm:5]** 

Why was the tax provision so low in Q2 2024?

The significant jump in discontinued operations in Q3 2024 was primarily driven by the large pre-tax gain from the sale of the Critical Care product group, which contributed approximately **$3.3 billion** to discontinued operations. This gain was partly offset by **$81.5 million** in separation costs and a **$599.6 million** tax impact, but overall, the sale for **$4.2 billion** was the primary factor behind the increase in income from discontinued operations.  **[0001099800-24-000086_ew-20240930.htm:12]** **[0001099800-24-000086_ew-20240930.htm:14]** **[0001099800-24-000086_ew-20240930.htm:42]** 

What drove the significant jump in discontinued operations in Q3 2024?

The documents do not provide an explicit reason for why restructuring expenses nearly doubled in Q1 2024. They do indicate that the **$41.3 million** separation costs in that period were related to the planned spin-off of the Critical Care product group and were incurred primarily for **consulting, legal, tax, and other professional advisory services**. If these separation costs are considered part of restructuring, they could explain the increase; however, a definitive link to a doubling of restructuring expenses is not provided in the documents.  **[0001099800-24-000039_ew-20240331.htm:29]** **[0001099800-24-000037_ex-991q12024.htm:6]** **[0001099800-24-000037_ex-991q12024.htm:7]** 

Why did restructuring expenses nearly double in Q1 2024?

54585b5fb599765255d5e71d6d1e82377004c13dc4c62fd3c363b8ec4caa779c

Edwards Lifesciences Corp (EW)

Financials