EW · 10-Q · 2026Q2 · Full report
VIE Investment Impairment
Edwards Lifesciences Corp · 2026-08-04 · Importance 47 · Surprise 60 · In source text
Edwards recorded impairment losses of $163.6 million for the six months ended June 30, 2026, compared with $40.0 million in the second quarter alone. The losses resulted from termination of an option agreement to acquire one VIE investment and the determination that another VIE investment’s carrying amount was not recoverable. The impairment charge materially reduced non-operating results during the first half of 2026.
Key facts
- In May 2026, Edwards amended agreements with a medical device company (the “Consolidated VIE”) and determined it became the primary beneficiary and consolidated the Consolidated VIE in May 2026. source
- Loss on impairment was $40.0 million and $163.6 million in the three and six months ended June 30, 2026, respectively, due to termination of the option agreement to acquire one VIE investment and the carrying amount of another VIE investment not being recoverable. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -2.3% | Loss on impairment was $40.0 million and $163.6 million in the three and six months ended June 30, 2026, respectively, due to termination… |
| assets | negative | realized | -0.3% | Loss on impairment was $40.0 million and $163.6 million in the three and six months ended June 30, 2026, respectively, due to termination… |
| assets | positive | realized | — | In May 2026, Edwards amended agreements with a medical device company (the “Consolidated VIE”) and determined it became the primary… |
| liability | negative | realized | — | In May 2026, Edwards amended agreements with a medical device company (the “Consolidated VIE”) and determined it became the primary… |