v3.26.3
Supplemental Financial Information
 9 Months Ended
Sep. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Supplemental Financial Information
Note 12. Supplemental Financial Information
The following table presents the components of inventories (in thousands):
September 30, 2026December 31, 2025
Raw materials$65,110 $75,800 
Work-in-process32,615 12,875 
Finished goods80,156 76,026 
$177,881 $164,701 
As of September 30, 2026 and December 31, 2025, inventories included adjustments totaling $20.6 million and $18.0 million, respectively, to record balances at the lower of cost or net realizable value.
The following table presents the components of accrued liabilities and other (in thousands):
September 30, 2026December 31, 2025
Legal and professional costs$17,467 $18,396 
Italian MedTech payback measure14,526 12,839 
Product liability litigation provision (1)
27,824 12,552 
Contract liabilities13,643 11,510 
Operating lease liabilities9,187 8,788 
Royalty accrual5,284 4,758 
Provisions for agents, returns, and other3,907 5,322 
Tariff refund payable1,943 — 
Research and development costs1,303 1,234 
Interest payable650 4,638 
Current derivative liabilities (2)
148 99 
Other accrued expenses33,052 26,989 
$128,934 $107,125 
(1)Refer to “Note 6. Commitments and Contingencies.”
(2)Refer to “Note 3. Derivatives and Risk Management.”
As of September 30, 2026 and December 31, 2025, contract liabilities totaling $20.1 million and $17.9 million, respectively, were included in accrued liabilities and other long-term liabilities in the condensed consolidated balance sheets.
The following table presents the items included in foreign exchange and other income/(expense) on the condensed consolidated statements of income (loss) (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
Fair value adjustment - 2029 Embedded Derivative (1)
$28,152 $(16,422)$(40,848)$(12,696)
Fair value adjustment - 2029 Capped Calls (1)
(4,700)6,353 16,042 4,276 
Gain on sale of investment (2)
— — 13,648 — 
Interest income3,896 3,899 11,279 14,525 
FX fluctuations(1,039)(613)(2,407)(2,463)
Impairment of investment
— (1,112)(1,132)(1,112)
Investment revaluation - Ceribell, Inc. (3)
— — — (3,622)
Fair value adjustment - 2025 Embedded Derivative (1)
— (322)— 1,230 
Fair value adjustment - 2025 Capped Calls (1)
— 324 — (997)
Other(8)400 195 527 
$26,301 $(7,493)$(3,223)$(332)
(1)Refer to “Note 4. Fair Value Measurements.”
(2)In June 2026, one of LivaNova’s equity investments was acquired by a third party, resulting in consideration of $17.1 million and the recognition of a gain on sale of $13.6 million for the nine months ended September 30, 2026.
(3)During the nine months ended September 30, 2025, LivaNova liquidated its investment in Ceribell, Inc., consisting of 391,952 common shares, in a series of transactions with an average sales price of $16.69 per common share, resulting in net proceeds of $6.5 million from an initial investment in 2018 of $3.0 million.
The following table presents supplemental information to the condensed consolidated statements of cash flows (in thousands):
Nine Months Ended
September 30,
20262025
Supplemental noncash investing and financing transactions:
Receivable from sale of investment$7,991 $— 
Assets obtained in exchange for operating lease obligations10,167 9,898 
Capital expenditures included in accounts payable7,597 3,758