Company: ICUI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000883984-25-000030
Chunk: 116

Company: ICU MEDICAL INC/DE
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 8
Chunk 116
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 its Board of Directors. Additionally, in connection with the closing of the transaction on May 1, 2025, we entered into certain agreements with OPF, which cover the governance of the joint venture and require us to provide certain commercial, logistics, manufacturing supply, administrative, and other services for a period of up to five years from transaction close.The following table presents condensed consolidated financial statement data resulting from transactions with the joint venture (in thousands): Three months ended June 30,Six months ended June 30,20252025Condensed consolidated statement of operations:Manufacturing services agreement revenue$3,513 $3,513 Manufacturing services agreement cost of goods sold$(3,101)$(3,101)Service fees - Otsuka ICU Medical LLC (cost of goods sold)$117 $117 Service fees - Otsuka ICU Medical LLC (selling, general & administrative)$2,074 $2,074 Equity in earnings of unconsolidated affiliates$2,837 $2,837  The joint venture is a pass-through entity for income tax purposes and, as such, does not record income tax at the entity level. We record our equity in earnings of unconsolidated affiliates before any related income tax recognized as a separate line item in our condensed consolidated statements of operations. Income taxes on our share of the joint venture's earnings are included within provision for income taxes in our consolidated statements of operations.As of June 30, 2025, a $10.4 million related-party payable to the joint venture was included within accrued liabilities in our condensed consolidated balance sheet.

Note 5:  Revenue

Revenue Recognition    Our business units are Consumables, Infusion Systems and Vital Care. The vast majority of our sales of these products within these business units are made on a stand-alone basis to hospitals and distributors. Revenue is typically recognized upon 

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

transfer of control of the products, which we deem to be at point of shipment. For purposes of revenue recognition for our software licenses and renewals, we consider the control of these products to be transferred to a customer at a certain point in time; therefore, we recognize revenue at the start of the applicable license term.    Payment is typically due in full within 30 days of delivery or the start of the contract term. Revenue is recorded in an amount