Company: ICUI
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000883984-25-000016
Chunk: 100

Company: ICU MEDICAL INC/DE
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 100
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 reversal is not probable. We use metrics including chargeback provision as a percentage of gross revenue, movements in inventory on hand at distributors, trends in accrued versus paid chargebacks and impacts from price changes and similar metrics.The chargeback reserve reflects a reasonable estimate of the amount of consideration using the expected value method and is recorded as a reduction of accounts receivable, net on the consolidated balance sheets.  

12

ICU MEDICAL, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Continued)

    We also offer certain volume-based rebates to both our distribution and end customers, which is recorded as variable consideration when calculating the transaction price. Rebates are offered on both a fixed and tiered/variable basis. In both cases, we use information available at the time, including current contractual requirements, our historical experience with each customer and forecasted customer purchasing patterns, to estimate the most likely rebate amount. We also warrant products against defects and have a policy permitting the return of defective products, for which we accrue and expense at the time of sale using information available at that time and our historical experience. We also provide for extended service-type warranties, which we consider to be separate performance obligations. We allocate a portion of the transaction price to the extended service-type warranty based on its estimated relative selling price, and recognize revenue over the period the warranty service is provided. Arrangements with Multiple Performance ObligationsWe also enter into arrangements which include multiple performance obligations. The most significant judgments related to these arrangements include:•Identifying the various performance obligations of these arrangements.•Estimating the relative standalone selling price of each performance obligation, typically using a directly observable method or calculated on a cost plus margin basis method.Revenue DisaggregatedThe following table represents our revenues disaggregated by product line (in thousands):Three months ended March 31,Product line20252024Consumables$266,226 $244,039 Infusion Systems166,300 157,338 Vital Care172,176 165,278 Total Revenues$604,702 $566,655 The following table represents our revenues disaggregated by geography (in thousands):Three months ended March 31,Geography20252024United States$388,245 $366,155 Europe, the Middle East and Africa95,688 98,389 APAC59,411 51,853 Other Foreign61,358 50,258 Total Revenues$