Company: ICUI
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000883984-25-000007
Chunk: 362

Company: ICU MEDICAL INC/DE
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 362
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 earn-out. At each reporting date subsequent to the acquisition, we remeasured the earn-out liability and recognized any changes in its fair value in our consolidated statements of operations. If the probability of achieving the Price Targets during their respective measurement periods was significantly greater than initially anticipated, the realization of an additional liability and related expense would have had a significant impact on our consolidated financial statements in the period recognized. As of December 31, 2023, the estimated fair value of the contingent earn-out was $4.0 million.  During 2024, Smiths sold all of their remaining shares of common stock of ICU Medical, Inc. The sale of these shares rendered Smiths unable to achieve the contingent consideration based on certain price targets during the third and fourth anniversary of closing as Smiths no longer met the required minimum beneficial ownership percentage. Accordingly, the valuation of the contingent earn-out liability as of December 31, 2024 was zero.Our contingent earn-out liabilities are separately stated on our consolidated balance sheets.The following table provides a reconciliation of our Level 3 earn-out liabilities measured at estimated fair value based on an initial valuation and updated quarterly for the years ended December 31, 2024, 2023 and 2022 (in thousands):

97

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

Earn-out LiabilityContingent earn-out liability, January 1, 2022$2,589 Acquisition date fair value estimate of earn-out(1)55,158 Change in fair value of contingent earn-out (included in income from operations as a separate line item)(2)(32,091)Currency translation(84)Contingent earn-out liability, December 31, 202225,572 Change in fair value of contingent earn-out (included in income from operations as a separate line item)(3(16,247)Other(4)(496)Transfer of Mediverse earn-out liability into Level 2(5)(3,379)Currency translation41 Contingent earn-out liability, December 31, 20235,491 Change in fair value of contingent earn-out (included in income from operations as a separate line item)(6)(5,399)Currency translation(92)Contingent earn-out liability, December 31, 2024$— _______________________________(1)    $53.5 million relates to our acquisition of Smiths Medical and $