avns-20220331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission file number 001-36440

AVANOS MEDICAL, INC.

(Exact name of registrant as specified in its charter)

Delaware

46-4987888

(State or other jurisdiction of incorporation)

(I.R.S. Employer Identification No.)

5405 Windward Parkway

Suite 100 South

Alpharetta,

Georgia

30004

(Address of principal executive offices)

(Zip code)

Registrant’s telephone number, including area code: (844) 428-2667

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of exchange on which registered
Common Stock - $0.01 Par Value	AVNS	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Emerging growth company

☐

Smaller reporting company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

As of April 26, 2022, there were 47,324,895 shares of the Corporation’s common stock outstanding.

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements			4

Unaudited Condensed Consolidated Income Statements for the Three Months Ended March 3 1 , 202 2 and 202 1			4

Unaudited Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 3 1 , 202 2 and 202 1			5

Unaudited Condensed Consolidated Balance Sheets as of March 3 1 , 202 2 and December 31, 202 1			6

Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 3 1 , 202 2 and 202 1			7

Unaudited Condensed Consolidated Cash Flow Statements for the Three Months Ended March 3 1 , 202 2 and 202 1			8

Notes to the Unaudited Condensed Consolidated Financial Statements			9

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			18

Item 3 . Quantitative and Qualitative Disclosures About M arket Risk			22

Item 4. Controls and Procedures			23

PART II – OTHER INFORMATION			24

Item 1 . Legal Proceedings			24
Item 1 A. Risk Factors			24
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			24
Item 3. Defaults Upon Senior Securities			25
Item 4. Mine Safety Disclosures			25
Item 5. Other Information			25
Item 6. Exhibits			25
Signatures			26

Information Concerning Forward-Looking Statements

This Quarterly Report on Form 10-Q (this Form 10-Q) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are included throughout this Form 10-Q, including in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as “may,” “believe,” “will,” “expect,” “intend,” “predict,” “potential,” “project,” “estimate,” “anticipate,” “plan,” or “continue” and similar expressions, among others. The matters discussed in these forward-looking statements are based on the current plans and expectations of our management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements. These factors include, but are not limited to:

•general economic conditions, particularly in the United States;

•fluctuations in global equity and fixed-income markets;

•risks related to the ongoing COVID-19 pandemic;

•the competitive environment;

•the loss of current customers or the inability to obtain new customers;

•litigation and enforcement actions;

•disruption in the supply of raw materials or the distribution of finished goods;

•price fluctuations in key commodities;

•fluctuations in currency exchange rates;

•changes in governmental regulations that are applicable to our business;

•changes in asset valuations, including write-downs of assets such as inventory, accounts receivable or other assets for impairment or other reasons; and

•any other matters described in Item 1A - “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021 (the Form 10-K) and Part II, Item 1A - “Risk Factors” in this Form 10-Q.

You are cautioned not to unduly rely on such forward-looking statements when evaluating the information in this Form 10-Q. Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of our management and expressed in good faith, and is believed to have a reasonable basis. There can be no assurance that any such expectation or belief will be achieved or accomplished.

Any forward-looking statement made in this Form 10-Q speaks only as of the date of this report. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable securities laws.


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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

AVANOS MEDICAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS

(in millions, except per share amounts)

(Unaudited)


	Three Months Ended March 31,
	2022		2021
Net Sales	$	197.4	$	180.7
Cost of products sold	90.2		89.4
Gross Profit	107.2		91.3
Research and development	7.8		8.3
Selling and general expenses	90.1		73.4
Other expense, net	0.1		22.0
Operating Income (Loss)	9.2		(12.4)

Interest expense	(1.3)		(0.8)
Income (Loss) Before Income Taxes	7.9		(13.2)
Income tax (provision) benefit	(2.1)		5.6
Net Income (Loss)	$	5.8	$	(7.6)

Earnings (Loss) Per Share
Basic	$	0.12	$	(0.16)
Diluted	$	0.12	$	(0.16)

See Notes to the Condensed Consolidated Financial Statements.


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AVANOS MEDICAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)


	Three Months Ended March 31,
	2022		2021
Net Income (Loss)	$	5.8	$	(7.6)
Other Comprehensive Income (Loss), Net of Tax
Unrealized currency translation adjustments	1.7		(4.2)


Total Other Comprehensive Income (Loss), Net of Tax	1.7		(4.2)
Comprehensive Income (Loss)	$	7.5	$	(11.8)

See Notes to the Condensed Consolidated Financial Statements.


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AVANOS MEDICAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share data)

(Unaudited)


	March 31, 2022		December 31, 2021
ASSETS
Current Assets
Cash and cash equivalents	$	104.3	$	118.5
Accounts receivable, net of allowances	161.6		131.2
Inventories	157.6		150.3
Prepaid and other current assets	15.7		18.6
Total Current Assets	439.2		418.6
Property, Plant and Equipment, net	166.9		168.1
Operating Lease Right-of-Use Assets	36.1		38.6
Goodwill	826.0		801.6
Other Intangible Assets, net	271.1		141.2
Deferred Tax Assets	11.3		10.0
Other Assets	15.9		16.5
TOTAL ASSETS	$	1,766.5	$	1,594.6

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Current portion of operating lease liabilities	$	14.5	$	14.7
Trade accounts payable	63.8		56.4
Accrued expenses	74.6		68.1
Total Current Liabilities	152.9		139.2
Long-Term Debt	254.4		130.0
Operating Lease Liabilities	40.0		42.8
Deferred Tax Liabilities	34.7		9.6
Other Long-Term Liabilities	28.0		9.1
Total Liabilities	510.0		330.7

Commitments and Contingencies

Stockholders’ Equity
Preferred stock - $0.01 par value - authorized 20,000,000 shares, none issued	—		—
Common stock - $0.01 par value - authorized 300,000,000 shares, 47,324,093 outstanding as of March 31, 2022 and 48,206,156 outstanding as of December 31, 2021	0.5		0.5
Additional paid-in capital	1,633.3		1,628.8
Accumulated deficit	(304.5)		(310.3)
Treasury stock	(40.7)		(21.3)
Accumulated other comprehensive loss	(32.1)		(33.8)
Total Stockholders’ Equity	1,256.5		1,263.9
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,766.5	$	1,594.6

See Notes to the Condensed Consolidated Financial Statements.


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AVANOS MEDICAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(in millions)

(Unaudited)


	Three Months Ended March 31,
	2022		2021
Common Stock	$	0.5	$	0.5
Additional Paid-in Capital, beginning of period	1,628.8		1,609.4
Exercise or redemption of share-based awards	0.7		4.8
Stock-based compensation expense	3.8		3.1
Additional Paid-in Capital, end of period	1,633.3		1,617.3
Accumulated Deficit, beginning of period	(310.3)		(315.5)
Net income (loss)	5.8		(7.6)
Accumulated Deficit, end of period	(304.5)		(323.1)
Treasury Stock, beginning of period	(21.3)		(9.8)
Purchases of treasury stock	(19.4)		—
Treasury Stock, end of period	(40.7)		(9.8)
Accumulated Other Comprehensive Income (Loss), beginning of period	(33.8)		(28.1)
Other comprehensive income (loss), net of tax	1.7		(4.2)
Accumulated Other Comprehensive Income (Loss), end of period	(32.1)		(32.3)
Total Stockholders’ Equity, end of period	$	1,256.5	$	1,252.6

See Notes to the Condensed Consolidated Financial Statements.


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AVANOS MEDICAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(in millions)

(Unaudited)


	Three Months Ended March 31,
	2022		2021
Operating Activities
Net income (loss)	$	5.8	$	(7.6)
Depreciation and amortization	11.1		9.7
Stock-based compensation expense	3.8		3.1
Net loss on asset dispositions and impairments	—		0.1
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable	(15.7)		2.2
Inventories	(4.5)		2.8
Prepaid expenses and other assets	0.1		0.5
Accounts payable	30.2		(6.2)
Accrued expenses	(28.6)		(2.0)
Deferred income taxes and other	(0.4)		(5.9)
Cash Provided by (Used in) Operating Activities	1.8		(3.3)
Investing Activities
Capital expenditures	(5.0)		(5.7)
Acquisition of assets and investments in businesses	(116.7)		—
Cash Provided by (Used in) Investing Activities	(121.7)		(5.7)
Financing Activities
Proceeds from issuance of secured debt	125.0		—
Senior secured revolving credit facility proceeds	20.0		—
Senior secured revolving credit facility repayments	(20.0)		(5.0)
Purchases of treasury stock	(19.4)		—
Payments of debt issuance costs	(0.6)		—
Proceeds from the exercise of stock options	0.7		4.8

Cash Provided by (Used in) Financing Activities	105.7		(0.2)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—		(2.2)
Decrease in Cash and Cash Equivalents	(14.2)		(11.4)
Cash and Cash Equivalents - Beginning of Period	118.5		111.5
Cash and Cash Equivalents - End of Period	$	104.3	$	100.1

See Notes to the Condensed Consolidated Financial Statements.


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AVANOS MEDICAL, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Accounting Policies

Background and Basis of Presentation

Avanos Medical, Inc. is a medical technology company focused on delivering clinically superior breakthrough medical device solutions to improve patients’ quality of life. Headquartered in Alpharetta, Georgia, Avanos is committed to addressing some of today’s most important healthcare needs, such as reducing the use of opioids while helping patients move from surgery to recovery. We develop, manufacture and market clinically superior solutions in more than 90 countries. References herein to “Avanos,” “Company,” “we,” “our” and “us” refer to Avanos Medical, Inc. and its consolidated subsidiaries.

Interim Financial Statements

We prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements, and the condensed consolidated financial statements in this Form 10-Q should be read in conjunction with the Form 10-K. Our unaudited interim condensed consolidated financial statements contain all necessary material adjustments, which are of a normal and recurring nature, to fairly state our financial condition, results of operations and cash flows for the periods presented.

Use of Estimates

Preparation of our condensed consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Estimates are used in accounting for, among other things, distributor rebate accruals, future cash flows associated with impairment testing for goodwill and long-lived assets, loss contingencies, and deferred tax assets and potential income tax assessments. Our estimates are subject to uncertainties associated with supply chain disruptions, which have caused volatility and adverse effects in global markets. Actual results could differ from these estimates, and the effect of any change could be material to our financial statements. Changes in these estimates are recorded when known.

Recently Adopted Accounting Pronouncements

Effective January 1, 2022, we adopted Accounting Standards Update (“ASU”) No. 2021-04, Issuers Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options. This ASU requires accounting for modifications or exchanges of freestanding equity-classified written call options that remain equity-classified after the modification or exchange based on the economic substance of the modification or exchange. The accounting is determined based on whether the transaction was done to issue equity, issue or modify debt or for other reasons. Adoption of this ASU did not have a material effect on our financial position, results of operations or cash flows.

Recently Issued Accounting Pronouncements

In October 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021-08, Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU pertains to acquired revenue contracts with customers in a business combination and addresses diversity in practice and inconsistency related to recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. This ASU is to be applied prospectively for years beginning after December 15, 2022. Adoption of this ASU is not expected to have a material effect on our financial position, results of operations or cash flows.

Note 2. Business Acquisition

On January 20, 2022, we acquired all of the equity voting interests and completed the acquisition of OrthogenRx, Inc. (“OrthogenRx”), which is focused on the development and commercialization of treatments for knee pain caused by osteoarthritis. We expect the acquisition of OrthogenRx will enhance our chronic pain portfolio. The initial purchase price was $130 million less working capital adjustments and up to $30 million payable in contingent cash consideration based on OrthogenRx’s growth in net sales during 2022 and 2023. The purchase price was funded by available cash on hand and the proceeds of borrowings, including from the incurrence of a new incremental tranche of term loans of $125.0 million, under the Company’s existing senior secured revolving credit facility, which is described further in Note 5, “Debt.” The accompanying condensed consolidated income statement for the three months ended March 31, 2022 includes $14.7 million of net sales from OrthogenRx since the acquisition date. In the three months ended March 31, 2022, we incurred $1.0 million of costs in connection with the OrthogenRx acquisition, which are included in “Selling and general expenses.”


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We accounted for the OrthogenRx acquisition under the acquisition method of accounting for business combinations. Accordingly, the purchase price paid was allocated to the underlying net assets in proportion to their respective fair values. Any excess of the purchase price over the estimated fair values was recorded as goodwill. Fair values of assets acquired and liabilities assumed were determined using discounted cash flow analyses and the fair value of the contingent cash consideration was estimated using a Monte Carlo simulation. The acquisition accounting is not yet complete and amounts assigned to assets acquired and liabilities assumed are provisional, based on the information, facts and circumstances known at the acquisition date. Accordingly, adjustments may be made to the provisional amounts as we complete our analysis. The provisional purchase price allocation, net of cash acquired, is shown in the table below (in millions):


Accounts receivable, net	$	14.5
Inventory	2.8
Other current assets	0.4
Accounts payable	(5.4)
Other current liabilities	(13.0)
Contingent consideration	(9.2)
Other non-current assets (liabilities)	(9.5)
Deferred tax liability	(23.7)
Identifiable intangible assets	135.6
Goodwill	24.2
Total	$	116.7

Goodwill arising from the OrthogenRx acquisition is not fully tax deductible. The identifiable intangible assets relating to the OrthogenRx acquisition include the following (in millions, except years):


	Identifiable Intangible Asset Amount		Weighted Average Useful Lives (Years)
Trademarks	$	1.3	10
Other	134.3		14
Total	$	135.6

Other intangible assets are primarily related to the OrthogenRx products that we currently market and distribute, combined into one composite intangible asset that includes customer relationships and exclusive distribution rights.

The following unaudited pro forma financial information is presented in the table below for the three months ended March 31, 2022 and 2021 as if the acquisitions had occurred on January 1 of the year prior to the acquisition date (in millions, except per share amounts):


	Three Months Ended March 31,
	2022 (Unaudited)		2021 (Unaudited)
Net sales	$	199.7	$	195.2

Net income (loss)	$	8.0	$	(7.2)

Earnings per share:
Basic	$	0.17	$	(0.15)
Diluted	$	0.17	$	(0.15)

The pro forma financial information has been adjusted to include the effects of the acquisition, including acquisition-related costs, amortization of acquired intangibles and related tax effects. The pro-forma financial information is not necessarily indicative of the results of operations that would have been achieved.


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Note 3. Supplemental Balance Sheet Information

Accounts Receivable

Accounts receivable consist of the following (in millions):


	March 31, 2022		December 31, 2021
Accounts receivable	$	154.5	$	122.0
Income tax receivable	13.0		13.0
Allowances and doubtful accounts:
Doubtful accounts	(5.6)		(3.6)
Sales discounts	(0.3)		(0.2)
Accounts receivable, net	$	161.6	$	131.2

Losses on receivables are estimated based on known troubled accounts and historical experience. Receivables are considered impaired and written off when it is probable that payments due will not be collected. Our provision for doubtful accounts was $0.3 million for the three months ended March 31, 2022 compared to a net benefit of $0.4 million for the three months ended March 31, 2021.

Inventories

Inventories at the lower of cost (determined on the LIFO/FIFO or weighted-average cost methods) or market consists of the following (in millions):


	March 31, 2022						December 31, 2021
	LIFO		Non- LIFO		Total		LIFO		Non- LIFO		Total
Raw materials	$	43.3	$	1.7	$	45.0	$	45.6	$	2.1	$	47.7
Work in process	34.0		—		34.0		33.2		—		33.2
Finished goods	61.4		18.4		79.8		55.7		15.9		71.6
Supplies and other	—		7.2		7.2		—		6.8		6.8
	138.7		27.3		166.0		134.5		24.8		159.3
Excess of FIFO or weighted-average cost over LIFO cost	(8.4)		—		(8.4)		(9.0)		—		(9.0)
Total	$	130.3	$	27.3	$	157.6	$	125.5	$	24.8	$	150.3

As of March 31, 2022, our inventory allowance was $5.3 million consisting of $2.9 million for Halyard-branded inventory and $2.4 million for inventory obsolescence.

Property, Plant and Equipment

Property, plant and equipment consists of the following (in millions):


	March 31, 2022		December 31, 2021
Land	$	1.1	$	1.1
Buildings and leasehold improvements	49.2		48.0
Machinery and equipment	224.8		223.2
Construction in progress	33.4		32.0
	308.5		304.3
Less accumulated depreciation	(141.6)		(136.2)
Total	$	166.9	$	168.1

Depreciation expense was $5.4 million for the three months ended March 31, 2022 compared to $5.5 million for the three months ended March 31, 2021.


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Goodwill and Intangible Assets

The changes in the carrying amount of goodwill are as follows (in millions):


	Goodwill
Balance, December 31, 2021	$	801.6
Goodwill acquired (a)	24.2
Currency translation adjustment	0.2
Balance, March 31, 2022	$	826.0

____________________________________________

(a)We acquired $24.2 million of goodwill in conjunction with the acquisition of OrthogenRx described in Note 2, “Business Acquisition.”

Intangible assets subject to amortization consist of the following (in millions):


	March 31, 2022						December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trademarks	$	92.5	$	(65.0)	$	27.5	$	90.9	$	(64.0)	$	26.9
Patents and acquired technologies	278.8		(187.3)		91.5		271.7		(177.7)		94.0
Other	187.9		(35.8)		152.1		61.2		(40.9)		20.3
Total	$	559.2	$	(288.1)	$	271.1	$	423.8	$	(282.6)	$	141.2

In the three months ended March 31, 2022, we acquired $135.6 million of identified intangibles in conjunction with the acquisition of OrthogenRx, as described in Note 2, “Business Acquisition.” Amortization expense for intangible assets is included in “Costs of products sold” and “Selling and general expenses” and was $5.7 million for the three months ended March 31, 2022 compared to $4.2 million for the three months ended March 31, 2021.

Amortization expense for the remainder of 2022 and the following four years and thereafter is estimated as follows (in millions):


	Amount
Remainder of 2022	$	24.7
2023	29.9
2024	29.9
2025	29.3
2026	22.7
Thereafter	134.6
Total	$	271.1

Accrued Expenses

Accrued expenses consist of the following (in millions):


	March 31, 2022		December 31, 2021
Accrued rebates and customer incentives	$	36.2	$	24.5
Accrued salaries and wages	23.3		29.3
Accrued taxes and other	2.7		3.0
Other	12.4		11.3
Total	$	74.6	$	68.1


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Other Long-Term Liabilities

Other long-term liabilities consist of the following (in millions):


	March 31, 2022		December 31, 2021

Accrued compensation and benefits	$	4.5	$	4.4
Other (a)	23.5		4.7
Total	$	28.0	$	9.1

__________________________________________________

(a)For March 31, 2022, amounts relate to liabilities associated with OrthogenRx acquisition as described in Note 2, “Business Acquisition.”

Note 4. Fair Value Information

The following fair value information is based on a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels in the hierarchy used to measure fair value are:

Level 1: Unadjusted quoted prices in active markets accessible at the reporting date for identical assets and liabilities.

Level 2: Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets and liabilities in markets that are not considered active or financial instruments for which all significant inputs are observable, either directly or indirectly.

Level 3: Prices or valuations that require inputs that are significant to the valuation and are unobservable.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following table includes the fair value of our financial instruments for which disclosure of fair value is required (in millions):


		March 31, 2022				December 31, 2021
	Fair Value Hierarchy Level	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Assets
Cash and cash equivalents	1	$	104.3	$	104.3	$	118.5	$	118.5
Liabilities
Senior secured revolving credit facility	2	$	130.0	$	130.0	$	130.0	$	130.0
Tranche A Term Loans	2	124.4		124.4		—		—
Contingent consideration related to acquisition	3	9.2

SEC Form 10-Q filed by Avanos Medical Inc.