Name: Edwards Lifesciences Corp. (NYSE:EW) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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Edwards Lifesciences Corp., consolidated statement of comprehensive income

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income	1,503,100)	823,400)	1,046,900)	722,200)	583,600)
Foreign currency translation adjustments	(50,100)	32,400)	(11,200)	(38,600)	97,500)
Unrealized gain (loss) on hedges	57,400)	(40,200)	(11,100)	40,400)	(30,600)
Unrealized pension credits (costs)	11,600)	(4,200)	(1,900)	600)	3,500)
Unrealized gain (loss) on available-for-sale investments	(24,100)	6,600)	6,300)	(3,300)	(7,800)
Reclassification of net realized investment loss to earnings	8,600)	300)	400)	2,900)	3,100)
Other comprehensive income (loss), net of tax	3,400)	(5,100)	(17,500)	2,000)	65,700)
Comprehensive income	1,506,500)	818,300)	1,029,400)	724,200)	649,300)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

The financial performance from 2017 to 2021 is characterized by a substantial overall increase in profitability, with net income serving as the primary driver of comprehensive income. While a temporary contraction occurred in 2020, the period concluded with a significant surge in earnings in 2021.

Net Income and Comprehensive Income Trends: Net income grew from 583.6 million US dollars in 2017 to 1.503 billion US dollars in 2021. This growth trajectory was interrupted in 2020, where net income decreased to 823.4 million US dollars from a 2019 peak of 1.047 billion US dollars. Despite this fluctuation, the 2021 results represent a nearly 157% increase over 2017 levels. Comprehensive income followed a nearly identical path, indicating that other comprehensive income components had a marginal impact on the total bottom line.
Volatility in Other Comprehensive Income (OCI): Other comprehensive income exhibited significant volatility and lacked a consistent directional trend. Net OCI fluctuated between a high of 65.7 million US dollars in 2017 and a low of negative 17.5 million US dollars in 2019. This volatility is primarily attributed to fluctuations in foreign currency translation adjustments and unrealized gains or losses on hedges, both of which shifted polarity multiple times throughout the five-year period.
Analysis of OCI Components: Foreign currency translation adjustments showed no steady trend, moving from a positive 97.5 million US dollars in 2017 to a negative 50.1 million US dollars in 2021. Similarly, unrealized gains and losses on hedges experienced sharp swings, recording a gain of 57.4 million US dollars in 2021 following a loss of 40.2 million US dollars in 2020. Unrealized gains or losses on available-for-sale investments remained relatively stable until 2021, when a loss of 24.1 million US dollars was recorded.
Pension and Investment Reclassifications: Unrealized pension credits and costs remained immaterial relative to total income, though a shift from a cost of 4.2 million US dollars in 2020 to a credit of 11.6 million US dollars in 2021 is noted. Reclassifications of net realized investment losses to earnings remained low and consistent across most years, with a notable increase to 8.6 million US dollars in 2021.

In summary, the organization demonstrates strong fundamental growth in net earnings. The volatility observed in other comprehensive income suggests exposure to currency and hedging risks, yet these factors remain secondary to the robust growth in core operational profitability.

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