Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 26, 2021 | Jun. 26, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-36353 | ||
Entity Registrant Name | Perrigo Company plc | ||
Entity Incorporation, State or Country Code | L2 | ||
Entity Address, Address Line One | The Sharp Building, | ||
Entity Address, Address Line Two | Hogan Place, | ||
Entity Address, City or Town | Dublin 2, | ||
Entity Address, Country | IE | ||
Entity Address, Postal Zip Code | D02 TY74 | ||
Country Region | 353 | ||
City Area Code | 1 | ||
Local Phone Number | 7094000 | ||
Title of 12(b) Security | Ordinary shares, €0.001 par value | ||
Trading Symbol | PRGO | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 7,360,836,659 | ||
Entity Common Stock, Shares Outstanding | 133,096,158 | ||
Documents Incorporated by Reference | Documents incorporated by reference : | ||
Entity Central Index Key | 0001585364 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Statement [Abstract] | ||||
Net sales | [1] | $ 5,063.3 | $ 4,837.4 | $ 4,731.7 |
Cost of sales | 3,248.1 | 3,064.1 | 2,900.2 | |
Gross profit | 1,815.2 | 1,773.3 | 1,831.5 | |
Operating expenses | ||||
Distribution | 100.4 | 96.1 | 94.2 | |
Research and development | 177.7 | 187.4 | 218.6 | |
Selling | 579.1 | 567 | 595.7 | |
Administration | 496 | 503 | 435.9 | |
Impairment charges | 346.8 | 184.5 | 224.4 | |
Restructuring | 3.5 | 26.3 | 21 | |
Other operating expense (income) | (3.7) | 4.2 | 5.2 | |
Total operating expenses | 1,699.8 | 1,568.5 | 1,595 | |
Operating income | 115.4 | 204.8 | 236.5 | |
Change in financial assets | 96.4 | (22.1) | (188.7) | |
Interest expense, net | 131.2 | 121.7 | 128 | |
Other (income) expense, net | 17.2 | (66) | 6.1 | |
Loss on extinguishment of debt | 20 | 0.2 | 0.5 | |
Income (loss) before income taxes | (149.4) | 171 | 290.6 | |
Income tax expense | 13.2 | 24.9 | 159.6 | |
Net income (loss) | $ (162.6) | $ 146.1 | $ 131 | |
Earnings (loss) per share | ||||
Basic (in dollars per share) | $ (1.19) | $ 1.07 | $ 0.95 | |
Diluted (in dollars per share) | $ (1.19) | $ 1.07 | $ 0.95 | |
Weighted-average shares outstanding | ||||
Basic (in dollars per share) | 136.1 | 136 | 137.8 | |
Diluted (in dollars per shares) | 136.1 | 136.5 | 138.3 | |
Revenue, Product and Service [Extensible List] | us-gaap:ProductMember | |||
Cost, Product and Service [Extensible List] | us-gaap:ProductMember | |||
[1] | The net sales by geography is derived from the location of the entity that sells to a third party. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (162.6) | $ 146.1 | $ 131 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 274.4 | 28.4 | (156.1) |
Change in fair value of derivative financial instruments | (13.4) | 28.2 | |
Change in fair value of derivative financial instruments | (5.7) | ||
Change in post-retirement and pension liability | (5.4) | (1.8) | (5.7) |
Other comprehensive income (loss), net of tax | 255.6 | 54.8 | (167.5) |
Comprehensive income (loss) | $ 93 | $ 200.9 | $ (36.5) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) shares in Millions, $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 641.5 | $ 354.3 |
Accounts receivable, net of allowance for credit losses of $7.6 and $6.7, respectively | 1,054.2 | 1,243.2 |
Inventories | 1,200.2 | 967.3 |
Prepaid expenses and other current assets | 237.6 | 165.8 |
Total current assets | 3,133.5 | 2,730.6 |
Property, plant and equipment, net | 996 | 902.8 |
Operating lease assets | 186 | 129.9 |
Goodwill and indefinite-lived intangible assets | 3,783.9 | 4,185.5 |
Definite-lived intangible assets, net | 2,974.3 | 2,921.2 |
Deferred income taxes | 44.2 | 5.4 |
Other non-current assets | 370.5 | 426 |
Total non-current assets | 8,354.9 | 8,570.8 |
Total assets | 11,488.4 | 11,301.4 |
Liabilities and Shareholders’ Equity | ||
Accounts payable | 543.8 | 520.2 |
Payroll and related taxes | 175.2 | 156.4 |
Accrued customer programs | 365.9 | 394.4 |
Other accrued liabilities | 250.3 | 229.2 |
Accrued income taxes | 9 | 32.2 |
Current indebtedness | 37.8 | 3.4 |
Total current liabilities | 1,382 | 1,335.8 |
Long-term debt, less current portion | 3,528.3 | 3,365.8 |
Deferred income taxes | 279.3 | 280.6 |
Other non-current liabilities | 643.7 | 515.1 |
Total non-current liabilities | 4,451.3 | 4,161.5 |
Total liabilities | 5,833.3 | 5,497.3 |
Commitments and contingencies - Refer to Note 17 | ||
Controlling interests: | ||
Preferred shares, $0.0001 par value per share, 10 shares authorized | 0 | 0 |
Ordinary shares, €0.001 par value per share, 10,000 shares authorized | 7,118.2 | 7,359.9 |
Accumulated other comprehensive income | 395 | 139.4 |
Retained earnings (accumulated deficit) | (1,858.1) | (1,695.5) |
Total controlling interests | 5,655.1 | 5,803.8 |
Noncontrolling interest | 0 | 0.3 |
Total shareholders’ equity | 5,655.1 | 5,804.1 |
Total liabilities and shareholders' equity | $ 11,488.4 | $ 11,301.4 |
Supplemental Disclosures of Balance Sheet Information | ||
Preferred shares, issued and outstanding | 0 | 0 |
Ordinary shares, issued and outstanding | 133.1 | 136.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Millions | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020€ / shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019€ / shares |
Statement of Financial Position [Abstract] | ||||
Accounts Receivable, Allowance for Credit Loss | $ | $ 7.6 | $ 6.7 | ||
Shareholders’ equity | ||||
Preferred shares, par value (usd per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
Preferred shares, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||
Ordinary shares, par value (EUR per share) | € / shares | € 0.001 | € 0.001 | ||
Ordinary shares, shares authorized (in shares) | 10,000,000,000 | 10,000,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From (For) Operating Activities | |||
Net income (loss) | $ (162,600) | $ 146,100 | $ 131,000 |
Adjustments to derive cash flows: | |||
Depreciation and amortization | 384,800 | 396,500 | 423,600 |
Loss (Gain) on sale of business | 20,900 | (71,700) | 0 |
Share-based compensation | 58,500 | 52,200 | 37,700 |
Impairment charges | 346,800 | 184,500 | 224,400 |
Asset abandonments | 0 | 11,000 | 0 |
Change in financial assets | 96,400 | (22,100) | (188,700) |
Loss on extinguishment of debt | 20,000 | 200 | 500 |
Restructuring charges | 3,500 | 26,300 | 21,000 |
Deferred income taxes | (54,500) | (43,900) | (17,900) |
Amortization of debt premium | (2,400) | (4,400) | (8,100) |
Other non-cash adjustments, net | (6,000) | 26,600 | (11,100) |
Subtotal | 705,400 | 701,300 | 612,400 |
Increase (decrease) in cash due to: | |||
Accounts receivable | 168,900 | (140,700) | 21,000 |
Inventories | (170,600) | (67,000) | (98,600) |
Accounts payable | (2,700) | 17,000 | 28,800 |
Payroll and related taxes | 10,800 | (3,700) | (34,500) |
Accrued customer programs | (43,300) | (48,600) | 25,500 |
Accrued liabilities | (23,100) | (23,200) | (20,900) |
Accrued income taxes | (7,000) | (74,500) | 68,100 |
Other, net | (2,200) | 27,200 | (8,800) |
Subtotal | (69,200) | (313,500) | (19,400) |
Net cash from (for) operating activities | 636,200 | 387,800 | 593,000 |
Cash Flows From (For) Investing Activities | |||
Proceeds from royalty rights | 4,100 | 2,900 | 13,700 |
Acquisitions of businesses, net of cash acquired | (168,500) | (747,700) | 0 |
Asset acquisitions | (35,200) | (149,100) | (35,600) |
Purchase of equity method investment | (15,000) | 0 | 0 |
Purchase of investment securities | 0 | 0 | (7,500) |
Proceeds from the Royalty Pharma contingent milestone | 0 | 250,000 | 0 |
Additions to property, plant and equipment | (170,400) | (137,700) | (102,600) |
Net proceeds from sale of business | 187,800 | 182,500 | 5,200 |
Other investing, net | 9,400 | 3,000 | 0 |
Net cash from (for) investing activities | (187,800) | (596,100) | (126,800) |
Cash Flows From (For) Financing Activities | |||
Borrowings (repayments) of revolving credit agreements and other financing, net | (3,900) | 500 | (4,400) |
Issuances of long-term debt | 743,800 | 600,000 | 431,000 |
Payments on long-term debt | (590,000) | (476,000) | (482,500) |
Premiums on early debt retirement | (19,000) | 0 | 0 |
Deferred financing fees | (6,700) | (1,000) | (2,400) |
Issuance of ordinary shares | 0 | 900 | 1,300 |
Repurchase of ordinary shares | (164,200) | 0 | (400,000) |
Cash dividends | (123,900) | (112,400) | (104,900) |
Other financing, net | (17,200) | (10,200) | (10,000) |
Net cash from (for) financing activities | (181,100) | 1,800 | (571,900) |
Effect of exchange rate changes on cash and cash equivalents | 19,900 | 9,700 | (21,900) |
Net increase (decrease) in cash and cash equivalents | 287,200 | (196,800) | (127,600) |
Cash and cash equivalents, beginning of period | 354,300 | 551,100 | 678,700 |
Cash and cash equivalents, end of period | 641,500 | 354,300 | 551,100 |
Cash paid/received during the year for: | |||
Interest paid | 145,800 | 136,800 | 133,800 |
Interest received | 12,100 | 15,100 | 5,000 |
Income taxes paid | 81,200 | 136,200 | 144,200 |
Income taxes refunded | $ 38,300 | $ 28,000 | $ 5,100 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Ordinary Shares Issued | Accumulated Other Comprehensive Income | Retained Earnings (Accumulated Deficit) | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, AdjustmentAccumulated Other Comprehensive Income | Cumulative Effect, Period of Adoption, AdjustmentRetained Earnings (Accumulated Deficit) |
Balance at Dec. 31, 2017 | $ 6,170.5 | $ 7,892.9 | $ 253.1 | $ (1,975.5) | $ 5.2 | $ (1) | $ 6.2 |
Balance, shares at Dec. 31, 2017 | 140,800 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 131 | 131 | |||||
Other comprehensive income (loss) | (167.5) | (167.5) | |||||
Issuance of ordinary shares under: | |||||||
Stock options, shares | 100 | ||||||
Stock options | 1.3 | $ 1.3 | |||||
Restricted stock plan, shares | 200 | ||||||
Restricted stock plan | 0 | ||||||
Compensation for stock options | 8.1 | $ 8.1 | |||||
Compensation for restricted stock | 29.6 | 29.6 | |||||
Cash dividends | (104.9) | $ (104.9) | |||||
Shares withheld for payment of employees' withholding tax liability, shares | (100) | ||||||
Shares withheld for payment of employees' withholding tax liability | (5.3) | $ (5.3) | |||||
Repurchases of ordinary shares, shares | (5,100) | ||||||
Repurchases of ordinary shares | (400) | $ (400) | |||||
Balance, shares at Dec. 31, 2018 | 135,900 | ||||||
Balance at Dec. 31, 2018 | 5,668 | $ 7,421.7 | 84.6 | (1,838.3) | $ (3.3) | $ 0 | $ (3.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | 146.1 | 146.1 | |||||
Other comprehensive income (loss) | $ 54.8 | 54.8 | |||||
Issuance of ordinary shares under: | |||||||
Stock options, shares | 27 | 0 | |||||
Stock options | $ 0.9 | $ 0.9 | |||||
Restricted stock plan, shares | 300 | ||||||
Restricted stock plan | 0 | ||||||
Compensation for stock options | 4.7 | $ 4.7 | |||||
Compensation for restricted stock | 50.6 | 50.6 | |||||
Cash dividends | (112.4) | $ (112.4) | |||||
Shares withheld for payment of employees' withholding tax liability, shares | (100) | ||||||
Shares withheld for payment of employees' withholding tax liability | (5.6) | $ (5.6) | |||||
Repurchases of ordinary shares, shares | 0 | ||||||
Balance, shares at Dec. 31, 2019 | 136,100 | ||||||
Balance at Dec. 31, 2019 | 5,803.8 | $ 7,359.9 | 139.4 | (1,695.5) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (162.6) | (162.6) | |||||
Other comprehensive income (loss) | $ 255.6 | 255.6 | |||||
Issuance of ordinary shares under: | |||||||
Stock options, shares | 0 | ||||||
Restricted stock plan, shares | 600 | ||||||
Restricted stock plan | $ 0 | ||||||
Compensation for stock options | 2 | $ 2 | |||||
Compensation for restricted stock | 56.5 | 56.5 | |||||
Cash dividends | (123.9) | $ (123.9) | |||||
Shares withheld for payment of employees' withholding tax liability, shares | (200) | ||||||
Shares withheld for payment of employees' withholding tax liability | (10.7) | $ (10.7) | |||||
Repurchases of ordinary shares, shares | (3,400) | ||||||
Repurchases of ordinary shares | (164.2) | $ (164.2) | |||||
Purchase of subsidiary's minority interest | (1.4) | $ (1.4) | |||||
Balance, shares at Dec. 31, 2020 | 133,100 | ||||||
Balance at Dec. 31, 2020 | $ 5,655.1 | $ 7,118.2 | $ 395 | $ (1,858.1) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid (per share) | $ 0.90 | $ 0.82 | $ 0.76 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General Information The Company Perrigo Company plc was incorporated under the laws of Ireland on June 28, 2013 and became the successor registrant of Perrigo Company, a Michigan corporation, on December 18, 2013 in connection with the acquisition of Elan Corporation, plc ("Elan"). Unless the context requires otherwise, the terms "Perrigo," the "Company," "we," "our," "us," and similar pronouns used herein refer to Perrigo Company plc, its subsidiaries, and all predecessors of Perrigo Company plc and its subsidiaries. Our vision is to make lives better by bringing Quality, Affordable Self-Care Products that consumers trust everywhere they are sold . We are a leading provider of over-the-counter ("OTC") health and wellness solutions that enhance individual well-being by empowering consumers to proactively prevent or treat conditions that can be self-managed. We are also a leading producer of generic prescription pharmaceutical topical products including creams, lotions, gels and nasal sprays. Basis of Presentation Our fiscal year begins on January 1 and ends on December 31 of each year. We end our quarterly accounting periods on the Saturday closest to the end of the calendar quarter, with the fourth quarter ending on December 31 of each year. Segment Reporting Our reporting and operating segments are as follows: • Consumer Self-Care Americas ("CSCA") comprises our consumer self-care business (OTC, infant formula, and oral self-care categories, our divested animal health category, and contract manufacturing) in the U.S., Mexico and Canada. • Consumer Self-Care International ("CSCI") comprises our consumer self-care business primarily branded in Europe and Australia, our store brand business in the United Kingdom and parts of Europe and Asia, and our divested liquid licensed products business in the United Kingdom. • Prescription Pharmaceuticals ("RX") comprises our prescription pharmaceuticals business in the U.S., which are predominantly generics, and our pharmaceuticals and diagnostic businesses in Israel. Our segments reflect the way in which our management makes operating decisions, allocates resources and manages the growth and profitability of the Company. Financial information related to our business segments and geographic locations can be found in Note 2 and Note 20 . Principles of Consolidation The consolidated financial statements include our accounts and accounts of all majority-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Unconsolidated Variable Interest Entities We have research and development ("R&D") arrangements with certain biotechnology companies that we determined to be variable interest entities ("VIEs"). We did not consolidate the VIEs in our financial statements because we lack the power to direct the activities that most significantly impact their economic performance and thus are not considered the primary beneficiaries of these entities. These arrangements provide us with certain rights and obligations to purchase product candidates from the VIEs, dependent upon the outcome of the development activities. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions, which affect the reported earnings, financial position and various disclosures. Although the estimates are considered reasonable, actual results could differ from the estimates. Non-U.S. Operations We translate our non-U.S. dollar-denominated operations’ assets and liabilities into U.S. dollars at current rates of exchange as of the balance sheet date and income and expense items at the average exchange rate for the reporting period. Translation adjustments resulting from exchange rate fluctuations are recorded in the cumulative translation account, a component of Accumulated other comprehensive income (loss) ("AOCI"). Gains or losses from foreign currency transactions are included in Other (income) expense, net. Revenue Product Revenue We generally recognize product revenue for our contract performance obligations at a point in time, typically upon shipment or delivery of products to customers. For point in time customers for which control transfers on delivery to the customer due to free on board destination terms (“FOB”), an adjustment is recorded to defer revenue recognition over an estimate of days until control transfers at the point of delivery. Where we recognize revenue at a point in time, the transfer of title is the primary indicator that control has transferred. In other limited instances, primarily relating to those contracts that relate to contract manufacturing performed for our customers and certain store branded products, control transfers as the product is manufactured. Control is deemed to transfer over time for these contracts as the product does not have an alternative use and we have a contractual right to payment for performance completed to date. Revenue for contract manufacturing contracts is recognized over the transfer period using an input method that measures progress towards completion of the performance obligation as costs are incurred. For store branded product revenue recognized over time, an output method is used to recognize revenue when production of a unit is completed because product customization occurs when the product is packaged as a finished good under the store brand label of the customer. Net product sales include estimates of variable consideration for which accruals and allowances are established. Variable consideration for product sales consists primarily of chargebacks, rebates, and administrative fees and other incentive programs recorded on the Consolidated Balance Sheets as Accrued customer programs, and sales returns and shelf stock allowances recorded on the Consolidated Balance Sheets as a reduction to Accounts receivable. Where appropriate, these estimates take into consideration a range of possible outcomes in which relevant factors, such as historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns, are either probability weighted to derive an estimate of expected value or the estimate reflects the single most likely outcome. Overall, these reserves reflect the best estimates of the amount of consideration to which we are entitled based on the terms of the contract. Actual amounts of consideration ultimately received may differ from our estimates. If actual results in the future vary from the estimates, these estimates are adjusted, which would affect revenue and earnings in the period such variances become known. Accrued customer programs and allowances were $458.7 million and $483.7 million at December 31, 2020 and December 31, 2019, respectively. Other Revenue Policies We receive payments from our customers based on billing schedules established in each contract. Amounts are recorded as accounts receivable when our right to consideration is unconditional. In most cases, the timing of the unconditional right to payment aligns with shipment or delivery of the product and the recognition of revenue; however, for those customers where revenue is recognized at a time prior to shipment or delivery due to over time revenue recognition, a contract asset is recorded and is reclassified to accounts receivable when it becomes unconditional under the contract upon shipment or delivery to the customer. Our performance obligations are generally expected to be fulfilled in less than one year. Therefore, we do not provide quantitative information about remaining performance obligations. We do not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised products to the customer will be one year or less, which is the case with substantially all customers. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenue. Shipping and handling costs billed to customers are included in Net sales. Conversely, shipping and handling expenses we incur are included in Cost of sales. Cash and Cash Equivalents Cash and cash equivalents consist primarily of demand deposits and other short-term investments with maturities of three months or less at the date of purchase. The carrying amount of cash and cash equivalents approximates its fair value. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in first-out method. Costs include material and conversion costs. Inventory related to R&D is expensed when it is determined the materials have no alternative future use. We maintain reserves for estimated obsolete or unmarketable inventory based on the difference between the cost of the inventory and its estimated net realizable value. In estimating the reserves, management considers factors such as excess or slow-moving inventories, product expiration dating, products on quality hold, current and future customer demand and market conditions. Changes in these conditions may result in additional reserves (refer to Note 6 ). Investments Fair Value Method Investments Equity investments in which we own less than a 20% interest and cannot exert significant influence are recorded at fair value with unrealized gains and losses included in net income. For equity investments without readily determinable fair values, we may use the Net Asset Value ("NAV") per share as a practical expedient to measure the fair value, if eligible. If the NAV practical expedient cannot be applied, we may elect to use a measurement alternative until the investment’s fair value becomes readily determinable. Under the alternative method, the equity investments are accounted for at cost, less any impairment, plus or minus changes resulting from observable price changes in an orderly transaction for an identical or similar investment of the same issuer. Equity Method Investments The equity method of accounting is used for unconsolidated entities over which we have significant influence; generally, this represents ownership interests of at least 20% and not more than 50%. Under the equity method of accounting, we record the investments at carrying value and adjust for a proportionate share of the profits and losses of these entities each period. We evaluate our equity method investments for recoverability. If we determine that a loss in the value of an investment is other than temporary, the investment is written down to its estimated fair value. Evaluations of recoverability are based primarily on projected cash flows. For more information on our investments, refer to Note 8 . Derivative Instruments We recognize the entire change in the fair value of the effective portion of derivatives designated as: • Cash flow hedges in Other Comprehensive Income ("OCI"). The amounts recorded in OCI will subsequently be reclassified to earnings in the same line item on the Consolidated Statements of Operations as impacted by the hedged item when the hedged item affects earnings; • Fair value hedges in the same line item on the Consolidated Statements of Operations that is used to present the earnings effect of the hedged item; and • Net investment hedges in OCI classified as a currency translation adjustment. When the net investment in foreign operations is sold or substantially liquidates, the amounts recorded in AOCI are reclassified to earnings. We exclude option premiums, forward points, and cross-currency basis spread from our assessment of hedge effectiveness, as allowable excluded components from certain of our cash flow and net investment hedges. We have elected to recognize the initial value of the excluded component on a straight-line basis over the life of the derivative instrument, within the same line item on the Consolidated Statements of Operations that is used to present the earnings effect of the hedged item. We record derivative instruments on the balance sheet on a gross basis as either an asset or liability measured at fair value (refer to Note 7 ). Additionally, changes in a derivative's fair value, which are measured at the end of each period, are recognized in earnings unless a derivative can be designated in a qualifying hedging relationship. All realized and unrealized gains and losses are included within operating activities in the Consolidated Statements of Cash Flows. Designated derivatives meet hedge accounting criteria, which means the fair value of the hedge is recorded in shareholders’ equity as a component of OCI, net of tax. The deferred gains and losses are recognized in income in the period in which the hedged item affects earnings. All of our designated derivatives are assessed for hedge effectiveness quarterly. We also have economic non-designated derivatives that do not meet hedge accounting criteria. These derivative instruments are adjusted to current market value at the end of each period through earnings. Gains or losses on these instruments are offset substantially by the remeasurement adjustment on the hedged item. We are exposed to credit loss in the event of nonperformance by the counterparties on derivative contracts. It is our policy to manage our credit risk on these transactions by dealing only with financial institutions having a long-term credit rating of "Aa3" or better and by distributing the contracts among several financial institutions to diversify credit concentration risk. Should a counterparty default, our maximum exposure to loss is the asset balance of the instrument. The maximum term of our forward currency exchange contracts is 60 months. We enter into certain derivative financial instruments, when available on a cost-effective basis, to mitigate our risk associated with changes in interest rates and foreign currency exchange rates as follows: Interest rate risk management - We are exposed to the impact of interest rate changes through our cash investments and borrowings. We utilize a variety of strategies to manage the impact of changes in interest rates including using a mix of debt maturities along with both fixed-rate and variable-rate debt. In addition, we may enter into treasury-lock agreements and interest rate swap agreements on certain investing and borrowing transactions to manage our exposure to interest rate changes and our overall cost of borrowing. Foreign currency exchange risk management - We conduct business in several major currencies other than the U.S. dollar and are subject to risks associated with changing foreign exchange rates. Our objective is to reduce cash flow volatility associated with foreign exchange rate changes on a consolidated basis to allow management to focus its attention on business operations. Accordingly, we enter into various contracts that change in value as foreign exchange rates change to protect the value of existing foreign currency assets and liabilities, commitments, anticipated foreign currency sales and expenses, and net investments in foreign operations. All derivative instruments are managed on a consolidated basis to efficiently net exposures and thus take advantage of any natural offsets. Gains and losses related to the derivative instruments are expected to be offset largely by gains and losses on the original underlying asset or liability. We do not use derivative financial instruments for speculative purposes. The impact of gains and losses on foreign exchange contracts not designated as hedging instruments related to changes in the fair value of assets and liabilities denominated in foreign currencies are generally offset by net foreign exchange gains and losses, which are also included on the Consolidated Statements of Operations in Other (income) expense, net for all periods presented. When we enter into foreign exchange contracts not designated as hedging instruments to mitigate the impact of exchange rate volatility in the translation of foreign earnings, gains and losses will generally be offset by fluctuations in the U.S. dollar-translated amounts of each Income Statement account in current and/or future periods. For more information on our derivatives, refer to Note 9 . Property, Plant and Equipment, net Property, plant and equipment, net is recorded at cost and is depreciated using the straight-line method. Useful lives for financial reporting range from 3 to 20 years for machinery and equipment and 10 to 45 years for buildings. We capitalize certain computer software and development costs, included in machinery and equipment, when incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are amortized over the estimated useful lives of the software, which range from 3 to 10 years. Maintenance and repair costs are charged to earnings, while expenditures that increase asset lives are capitalized. Depreciation expense includes amortization of assets recorded under finance leases and totaled $90.1 million, $91.0 million, and $90.0 million for the years ended December 31, 2020 , December 31, 2019, and December 31, 2018, respectively. We held the following property, plant and equipment, net (in millions): December 31, December 31, Land $ 55.6 $ 50.4 Buildings 607.4 578.7 Machinery and equipment 1,342.4 1,195.8 Gross property, plant and equipment 2,005.4 1,824.9 Less: accumulated depreciation (1,009.4) (922.1) Property, plant and equipment, net $ 996.0 $ 902.8 Leases We adopted ASU 2016-02, Leases, as of January 1, 2019, using the modified retrospective transition approach, with a cumulative-effect adjustment to the opening balance of retained earnings as of the effective date. The financial results reported in periods prior to 2019 are unchanged. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in additional operating lease liabilities and lease assets, including the transition of existing capital lease liabilities and lease assets to finance classification, of approximately $166.5 million and $164.0 million, respectively, as of January 1, 2019. Upon adoption, there were two primary reasons for the differences between the lease assets and liabilities recognized: (1) the transition requirement to reduce the operating lease asset carrying value by the deferred lease liabilities that existed prior to the adoption date; and (2) the transition of capital leases to finance leases which occurred at their existing carrying values. Additionally, historical build-to-suit assets and liabilities were removed on transition and recorded as an adjustment to retained earnings, net of deferred tax impact. The standard did not materially impact our consolidated net income or cash flow classification. We lease certain office buildings, warehouse facilities, vehicles, and plant, office, and computer equipment. Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We evaluate arrangements at inception to determine if lease components are included. An arrangement includes a lease component if it identifies an asset and we have control over the asset. For new leases beginning January 1, 2019 or later, we have elected not to separate lease components from the non-lease components included in an arrangement when measuring the leased asset and leased liability for all asset classes. Lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognize lease expense for leases on a straight-line basis over the lease term. We apply the portfolio approach to certain groups of computer equipment and vehicle leases when the term, classification, and asset type are identical. The discount rate selected is the incremental borrowing rate we would obtain for a secured financing of the lease asset over a similar term. Many of our leases include one or more options to extend the lease term. Certain leases also include options to terminate early or purchase the leased property, all of which are executed at our sole discretion. Optional periods may be included in the lease term and measured as part of the lease asset and lease liability if we are reasonably certain to exercise our right to use the leased asset during the optional periods. We generally consider renewal options to be reasonably certain of execution and included in the lease term when significant leasehold improvements have been made by us to the leased assets. The depreciable lives of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include contingent rental payments based on per unit usage over contractual levels (e.g., miles driven or machine hours used) and others include rental payments adjusted periodically for market reviews or inflationary indexes. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. For more information on our leases, refer to Note 10 . Goodwill and Intangible Assets Goodwill Goodwill represents amounts paid for an acquisition in excess of the fair value of net assets acquired. Goodwill is tested for impairment annually on the first day of our fourth quarter, or more frequently if changes in circumstances or the occurrence of events suggest an impairment exists. The test for impairment requires us to make several estimates about fair value, most of which are based on projected future cash flows and market valuation multiples. The estimates associated with the goodwill impairment tests are considered critical due to the judgments required in determining fair value amounts, including projected discounted future cash flows. Changes in these estimates may result in the recognition of an impairment loss. We have five reporting units that are evaluated for impairment. Intangible Assets We have intangible assets that we have acquired through various business acquisitions and include trademarks, trade names and brands, in-process research and development ("IPR&D"), developed product technology/formulation and product rights, distribution and license agreements, customer relationships and distribution networks, and non-compete agreements. The assets are typically valued initially using the relief from royalty method or the multi-period excess earnings method ("MPEEM"). We test indefinite-lived trademarks, trade names, and brands for impairment annually, or more frequently if changes in circumstances or the occurrence of events suggest impairment exists, by comparing the carrying value of the assets to their estimated fair values. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value. Definite-lived intangible assets consist of a portfolio of developed product technology/formulation and product rights, distribution and license agreements, customer relationships, non-compete agreements, and certain trademarks, trade names, and brands. The assets are amortized on either a straight-line basis or proportionately to the benefits derived from those relationships or agreements. Useful lives vary by asset type and are determined based on the period over which the intangible asset is expected to contribute directly or indirectly to our future cash flows. We also review all other long-lived assets that have finite lives and that are not held for sale for impairment when indicators of impairment are evident by comparing the carrying value of the assets to their estimated future undiscounted cash flows. IPR&D assets are recognized at fair value and are classified as indefinite-lived assets until the successful completion or abandonment of the associated R&D efforts. If the associated R&D is completed, the IPR&D asset becomes a definite-lived intangible asset and is amortized over the asset's assigned useful life. If it is abandoned, an impairment loss is recorded. Goodwill, indefinite-lived intangible asset, and definite-lived intangible asset impairments are recorded in Impairment charges on the Consolidated Statement of Operations. See Note 4 for further information on our goodwill and intangible assets. Share-Based Awards We measure and record compensation expense for all share-based awards based on estimated grant date fair values. For awards with only service conditions that are based on graded vesting schedules, we recognize the compensation expense on a straight-line basis over the entire award. Forfeitures on share-based awards are recognized in compensation expense in the period in which they occur. We estimate the fair value of stock option awards granted based on the Black-Scholes option pricing model, which requires the use of subjective and complex assumptions. These assumptions include estimating the expected term that awards granted are expected to be outstanding, the expected volatility of our stock price for a period commensurate with the expected term of the related options, and the risk-free rate with a maturity closest to the expected term of the related awards. Restricted stock and restricted stock units are valued based on our stock price on the day the awards are granted. The estimated fair value of outstanding Relative Total Shareholder Return performance units (“RTSR”) is based on the grant date fair value of RTSR awards using a Monte Carlo simulation, which includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends (refer to Note 13 ). Income Taxes We record deferred income tax assets and liabilities on the balance sheet as noncurrent based upon the difference between the financial reporting and the tax reporting basis of assets and liabilities using the enacted tax rates. To the extent that available evidence raises doubt about the realization of a deferred income tax asset, a valuation allowance is established. We have provided for income taxes for undistributed earnings of certain foreign subsidiaries which have not been deemed to be permanently reinvested. For those foreign subsidiaries we have deemed to be permanently reinvested, we have provided no further tax provision. We record reserves for uncertain tax positions to the extent it is more likely than not the tax return position will be sustained on audit, based on the technical merits of the position. Periodic changes in reserves for uncertain tax positions are reflected in the provision for income taxes. We include interest and penalties attributable to uncertain tax positions and income taxes as a component of our income tax provision (refer to Note 15 ). Legal Contingencies We are involved in product liability, patent, commercial, regulatory and other legal proceedings that arise in the normal course of business. We record a liability when a loss is considered probable and the amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range and no amount within that range is a better estimate, the minimum amount in the range is accrued. If a loss is not probable or a probable loss cannot be reasonably estimated, no liability is recorded. We have established reserves for certain of our legal matters (refer to Note 17 ). We do not incorporate insurance recoveries into our reserves for legal contingencies. We separately record receivables for amounts due under insurance policies when we consider the realization of recoveries for claims to be probable, which may be different than the timing in which we establish the loss reserves. Research and Development All R&D costs, including payments related to products under development and research consulting agreements, are expensed as incurred. We incur costs throughout the development cycle, including costs for research, clinical trials, manufacturing validation, and other pre-commercialization approval costs that are included in R&D. We may continue to make non-refundable payments to third parties for new technologies and for R&D work that has been completed. These payments may be expensed at the time of payment depending on the nature of the payment made. R&D expense was $177.7 million, $187.4 million, and $218.6 million, for the years ended December 31, 2020, December 31, 2019 and December 31, 2018, respectively. During the year ended December 31, 2018, we paid an up-front license fee of $50.0 million allowing us to develop and commercialize an OTC version of Nasonex-branded products (refer to Note 3 ). We actively collaborate with other pharmaceutical companies to develop, manufacture and market certain products or groups of products. We may choose to enter into these types of agreements to, among other things, leverage our or others’ scientific research and development expertise or utilize our extensive marketing and distribution resources. Our policy on accounting for costs of strategic collaborations determines the timing of the recognition of certain development costs. In addition, this policy determines whether the cost is classified as a development expense or capitalized as an asset. Management is required to form judgments with respect to the commercial status of such products in determining whether development costs meet the criteria for immediate expense or capitalization. For example, when we acquire certain products for which there is already an Abbreviated New Drug Application ("ANDA") or New Drug Application ("NDA") approval directly related to the product, and there is net realizable value based on projected sales for these products, we capitalize the amount paid as an intangible asset. If we acquire product rights that are in the development phase and as to which we have no assurance that the third party will successfully complete its development milestones, we expense the amount paid (refer to Note 18 ). Advertising Costs Advertising costs relate primarily to print advertising, direct mail, on-line advertising, social media communications, and television advertising and are expensed as incurred. For the year ended December 31, 2020 , 85% of advertising expense was attributable to our CSCI segment. Advertising costs were as follows (in millions): Year Ended December 31, December 31, 2019 December 31, $ 130.5 $ 142.8 $ 159.2 Earnings per Share ("EPS") Basic EPS is calculated using the weighted-average number of ordinary shares outstanding during each period. It excludes both the dilutive effects of additional common shares that would have been outstanding if the shares issued under stock incentive plans had been exercised and the dilutive effect of restricted share units, to the extent those shares and units have not vested. Diluted EPS is calculated including the effects of shares and potential shares issued under stock incentive plans, following the treasury stock method. Defined Benefit Plans We operate a number of defined benefit plans for employees globally. Two significant assumptions, the discount rate and the expected rate of return on plan assets, are important elements of expense and liability measurement. We evaluate these assumptions annually. Other assumptions involve employee demographic factors, such as retirement patterns, mortality, turnover, and the rate of compensation increase. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The defined benefit obligation is calculated periodically by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of either high quality corporate bonds or long term government bonds depending on the depth and liquidity of the high quality corporate bond market in the different geographies where we have pension liabilities. The bonds are denominated in the currency in which the benefits will be paid and have terms to maturity approximating the terms of the related pension l |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition | REVENUE RECOGNITION Revenue is recognized when or as a customer obtains control of promised products. The amount of revenue recognized reflects the consideration we expect to be entitled to receive in exchange for these products. Disaggregation of Revenue We generated net sales in the following geographic locations (1) during each of the periods presented below (in millions): Year Ended December 31, December 31, December 31, U.S. $ 3,441.1 $ 3,225.6 $ 3,098.3 Europe (2) 1,350.6 1,335.8 1,347.6 All other countries (3) 271.6 276.0 285.8 Total net sales $ 5,063.3 $ 4,837.4 $ 4,731.7 (1) The net sales by geography is derived from the location of the entity that sells to a third party. (2) Includes Ireland net sales of $29.8 million, $23.4 million, and $25.7 million for the years ended December 31, 2020, December 31, 2019, and December 31, 2018, respectively. (3) Includes revenue generated primarily in Israel, Mexico, Australia, and Canada. Product Category The following is a summary of our net sales by category (in millions): Year Ended December 31, 2020 December 31, 2019 December 31, CSCA (1) Upper respiratory $ 489.5 $ 515.2 $ 492.5 Digestive health 452.6 413.9 403.6 Pain and sleep-aids 424.7 383.6 388.1 Nutrition 387.4 394.4 432.4 Healthy lifestyle 348.5 352.4 333.6 Oral self-care 284.6 106.4 — Skincare and personal hygiene 191.8 182.9 164.1 Vitamins, minerals, and supplements 27.0 28.6 26.1 Animal health — 43.7 93.9 Other CSCA (2) 86.9 66.6 77.3 Total CSCA 2,693.0 2,487.7 2,411.6 CSCI Skincare and personal hygiene 351.8 371.6 396.5 Upper respiratory 255.1 276.8 276.5 Vitamins, minerals, and supplements 201.0 180.2 187.2 Pain and sleep-aids 190.4 167.9 170.0 Healthy lifestyle 165.4 173.8 180.7 Oral self-care 97.8 51.2 8.9 Digestive health 26.5 27.1 29.5 Other CSCI (3) 107.2 133.6 150.0 Total CSCI 1,395.2 1,382.2 1,399.3 RX 975.1 967.5 920.8 Total net sales $ 5,063.3 $ 4,837.4 $ 4,731.7 (1) Includes net sales from our OTC contract manufacturing business. (2) Consists primarily of diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales. (3) Consists primarily of liquid licensed products, our distribution business and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales. While the majority of revenue is recognized at a point in time, certain of our product revenue is recognized on an over time basis. Predominately, over time customer contracts exist in contract manufacturing arrangements, which occur in both the CSCA and CSCI segments. Contract manufacturing revenue was $262.4 million, $286.8 million, and $300.5 million for the years ended December 31, 2020, December 31, 2019, and December 31, 2018, respectively. We also recognize a portion of the store brand OTC product revenues in the CSCA segment on an over time basis; however, the timing difference between over time and point in time revenue recognition for store brand contracts is not significant due to the short time period between the customization of the product and shipment or delivery. Contract Balances The following table provides information about contract assets from contracts with customers (in millions): Balance Sheet Location December 31, December 31, Short-term contract assets Prepaid expenses and other current assets $ 19.7 $ 26.3 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and divestitures | ACQUISITIONS AND DIVESTITURES Acquisitions During the Year Ended December 31, 2020 Generic Topical Gel Acquisition On December 31, 2020, we purchased an Abbreviated New Drug Application ("ANDA") for a generic topical gel for $16.4 million payable in January 2021, which we capitalized as a developed product technology intangible asset. We launched the product in January 2021 and began amortizing it over a 20-year useful life. Operating results attributable to the product are included within our RX segment. Eastern European OTC Dermatological Brands Acquisition On October 30, 2020, we acquired three Eastern European OTC dermatological brands ("Eastern European Brands"), skincare brands Emolium ® , Iwostin ® , and hair loss treatment brand Loxon ® from Sanofi. The transaction closed for €53.3 million ($62.3 million). We capitalized $52.5 million as brand-named intangible assets and allocated the remainder of the purchase price to goodwill, inventory, customer relationships and deferred tax assets. The addition of these brands complements our already robust skincare portfolio and adds scale to our Eastern European business. The addition of these market-leading OTC brands serves as another step for Perrigo’s CSCI growth plans and provides new opportunities for self-care revenue synergy in the European markets. The operating results of the brands will be reported within our CSCI segment. The acquisition of the Eastern European Brands was accounted for as a business combination and has been reported in our Consolidated Statements of Operations as of the acquisition date. During the year ended December 31, 2020, we recorded transaction costs in Administration expenses within the CSCI segment. We are in the process of gathering significant relevant information needed to complete the valuation for the assets acquired and liabilities assumed. As a result, the initial accounting for the acquisition is incomplete. The provisional acquisition amounts recognized for assets acquired and liabilities assumed will be finalized as soon as possible but no later than one year from the acquisition date. The final determination may result in asset and liability fair values and tax bases that differ from the preliminary estimates and require changes to the preliminary amounts recognized. The goodwill arising from the acquisition consists largely of the assembled workforce, and the cost and revenue synergies expected from integrating the business into the CSCI segment. The goodwill was allocated to our CSCI segment, none of which is deductible for income tax purposes. The definite-lived intangible assets acquired consisted of brands and customer relationships which are being amortized over a weighted average useful life of approximately 18.8 years. Both the brands and customer relationships were valued using the multi-period excess earnings method. Significant judgment was applied in estimating the fair value of the intangible assets acquired, which involved the use of significant estimates and assumptions with respect to the timing and amounts of cash flow projections, including revenue growth rates, projected profit margins, and discount rates. Oral Care Assets of High Ridge Brands On April 1, 2020, we acquired the oral care assets of High Ridge Brands ("Dr. Fresh") for total purchase consideration of $113.0 million, subject to customary post-closing adjustments, including a working capital settlement. After post-closing adjustments as of December 31, 2020, total cash consideration paid was $106.2 million, net of $2.0 million that we allocated as prepayment of contract consideration for transitional services to be received related to the transaction. This acquisition includes the children’s oral care value brand, Firefly ® , in addition to the REACH ® and Dr. Fresh ® brands, and a licensing portfolio. The U.S. operations, which represent a significant portion of the business, will be reported in our CSCA segment and the remaining non-U.S. operations will be reported in our CSCI segment. During the year ended December 31, 2020, we incurred $4.4 million of general transaction costs (legal, banking and other professional fees). The amounts were recorded in Administration expenses within the CSCA segment. The acquisition of Dr. Fresh was accounted for as a business combination and has been reported in our Consolidated Statements of Operations as of the acquisition date. From April 1, 2020 through December 31, 2020, the acquisition generated Net sales of $72.3 million and pre-tax income of $2.1 million, which included $2.0 million related to inventory costs stepped up to acquisition date fair value. We are in the process of finalizing the valuation for the assets acquired and liabilities assumed. As a result, the initial accounting for the acquisition is incomplete. The provisional acquisition amounts recognized for assets acquired and liabilities assumed will be finalized as soon as possible but no later than one year from the acquisition date. The final determination may result in asset and liability fair values and tax bases that differ from the preliminary estimates and require changes to the preliminary amounts recognized. During the three months ended December 31, 2020, we recorded measurement period adjustments to reduce the value of acquired inventory by $1.2 million with an offsetting increase to goodwill. The measurement period adjustment also decreased the amount of Cost of sales recognized by $1.2 million in the three months ended December 31, 2020. The following table summarizes the consideration paid for Dr. Fresh and the provisional amounts of the assets acquired and liabilities assumed (in millions): Oral Care Assets of High Ridge Brands (Dr. Fresh) Purchase price paid $ 106.2 Assets acquired: Accounts receivable $ 13.1 Inventories 22.2 Prepaid expenses and other current assets 0.4 Property, plant and equipment, net 0.7 Operating lease assets 2.6 Goodwill 17.2 Distribution and license agreements and supply agreements $ 2.2 Developed product technology, formulations, and product rights 0.1 Customer relationships and distribution networks 20.6 Trademarks, trade names, and brands 43.2 Total intangible assets $ 66.1 Total assets $ 122.3 Liabilities assumed: Accounts payable $ 6.1 Other accrued liabilities 3.8 Payroll and related taxes 0.7 Accrued customer programs 3.0 Other non-current liabilities 2.5 Total liabilities $ 16.1 Net assets acquired $ 106.2 The goodwill of $17.2 million arising from the acquisition consists largely of the anticipated growth from new product sales, sales to new customers, the assembled workforce, and the synergies expected from integrating the operations of Dr. Fresh into Perrigo. The goodwill was primarily attributable to our CSCA segment. We are currently evaluating the tax deductibility of the provisional goodwill. We expect some portion to be deductible for income tax purposes. The definite-lived intangible assets acquired consisted of trademarks and trade names, license agreements, and customer relationships which are being amortized over a weighted average useful life of approximately 17.8 years. Customer relationships were valued using the multi-period excess earnings method. Trademarks and trade names and developed technology were valued using the relief from royalty method. Significant judgment was applied in estimating the fair value of the intangible assets acquired, which involved the use of significant estimates and assumptions with respect to the timing and amounts of cash flow projections, including revenue growth rates, projected profit margins, and discount rates. Dexsil ® On February 13, 2020, we acquired Dexsil ® , a silicon supplement brand, from RXW Group NV, for total cash consideration paid of approximately $8.0 million. The transaction was accounted for as an asset acquisition, in which we capitalized the consideration paid as a brand-named intangible asset. We began amortizing the brand intangible over a 25-year useful life. Operating results attributable to the product are included within our CSCI segment. Steripod ® On January 3, 2020, we acquired Steripod ® , a leading toothbrush accessory brand and innovator in the toothbrush protector market, from Bonfit America Inc. Total consideration paid was $26.0 million. The transaction was accounted for as an asset acquisition, in which we capitalized $25.1 million as a brand-named intangible asset. The remainder of the purchase price was allocated to working capital. We began amortizing the brand intangible over a 25-year useful life. Operating results attributable to the product are included within our CSCA segment. Acquisitions During the Year Ended December 31, 2019 Prevacid ® 24HR On November 29, 2019, we acquired the branded OTC rights to Prevacid ® 24HR from GlaxoSmithKline for $61.5 million in cash. We capitalized $61.7 million, inclusive of closing costs, as a brand named intangible asset and began amortizing it over a 20-year useful life. Operating results attributable to the product are included within our CSCA segment. Generic Product Acquisition On July 2, 2019, we purchased the ANDA for a generic gel product for $49.0 million in cash, which we capitalized as a developed product technology intangible asset. We launched the product during the third quarter of 2019 and began amortizing it over a 20-year useful life. Operating results attributable to the product are included within our RX segment. Ranir Global Holdings, LLC On July 1, 2019, we acquired 100% of the outstanding equity interest in Ranir Global Holdings, LLC ("Ranir"), a privately-held company, for total base consideration of $750.0 million in a debt-free, cash-free transaction. After post-closing adjustments, total cash consideration paid was $747.7 million, net of $11.5 million cash acquired. We funded the transaction with cash on hand and borrowings under the 2018 Revolver (as defined in Note 11 ). Ranir is headquartered in Grand Rapids, Michigan and is a leading global supplier of private label and branded oral self-care products. Ranir's U.S. operations are reported in our CSCA segment and its non-U.S. operations are reported in our CSCI segment. The acquisition of Ranir was accounted for as a business combination and has been reported in our Consolidated Statements of Operations as of the acquisition date. From July 1, 2019 through December 31, 2019, Ranir generated Net sales of $151.4 million and had $7.6 million of Net income, which is inclusive of a non-recurring charge of $5.7 million related to inventory costs stepped up to acquisition date fair value. The following table summarizes the consideration paid for Ranir and the amounts of the assets acquired and liabilities assumed (in millions): Ranir Purchase price paid $ 759.2 Assets acquired: Cash and cash equivalents $ 11.5 Accounts receivable 40.6 Inventories 59.0 Prepaid expenses and other current assets 4.0 Property, plant and equipment, net 40.8 Operating lease assets 3.7 Goodwill 292.7 Definite-lived intangibles: Developed product technology, formulations, and product rights $ 48.6 Customer relationships and distribution networks 260.0 Trademarks, trade names, and brands 41.0 Indefinite-lived intangibles: In-process research and development 39.7 Total intangible assets $ 389.3 Other non-current assets 2.8 Total assets $ 844.4 Liabilities assumed: Accounts payable $ 17.6 Other accrued liabilities 7.7 Payroll and related taxes 5.5 Accrued customer programs 5.7 Deferred income taxes 45.9 Other non-current liabilities 2.8 Total liabilities $ 85.2 Net assets acquired $ 759.2 The goodwill of $292.7 million arising from the acquisition consists largely of the anticipated growth from new product sales, sales to new customers, the assembled workforce, and the synergies expected from combining the operations of Perrigo and Ranir. Goodwill of $212.6 million and $80.1 million was allocated to our CSCA and CSCI segments, respectively. We expect $252.3 million to be deductible for income tax purposes. The definite-lived intangible assets acquired consisted of trademarks and trade names, developed product technologies, and customer relationships . Trademarks and trade names were assigned useful lives that ranged from 20 to 25-years. Developed product technologies were assigned 10-year useful lives and customer relationships were assigned 24-year useful lives. Customer relationships were valued using the multi-period excess earnings method. Trademarks and trade names, developed technology, and in-process research and development ("IPR&D") were valued using the relief from royalty method. Significant judgment was applied in estimating the fair value of the intangible assets acquired, which involved the use of significant estimates and assumptions with respect to the timing and amounts of cash flow projections, including revenue growth rates, projected profit margins, and discount rates. The opening balance sheet is final. Generic Product Acquisition On May 17, 2019, we purchased the ANDA for a generic product used to relieve pain, for $15.7 million in cash, which we capitalized as a developed product technology intangible asset. We launched the product during the third quarter of 2019 and began amortizing it over a 20-year useful life. Operating results attributable to the product are included within our CSCA and RX segment. Budesonide Nasal Spray and Triamcinolone Nasal Spray On April 1, 2019, we purchased product ANDAs and other records and registrations of Budesonide Nasal Spray, a generic equivalent of Rhinocort Allergy ® , and Triamcinolone Nasal Spray, a generic equivalent of Nasacort Allergy ® , from Barr Laboratories, Inc. ("Barr"), a subsidiary of Teva Pharmaceuticals, for $14.0 million in cash. We previously developed and marketed the products in collaboration with Barr under a development, marketing and commercialization agreement that originated in August 2003. Under this prior agreement, we paid Barr a percentage of net income from products sold by Perrigo in the U.S. By purchasing the assets from Barr and terminating the original development, marketing and commercialization agreement, we are now entitled to 100% of the income from sales of the product. Operating results attributable to these products are included within our CSCA segment. The intangible assets acquired are classified as developed product technology with a 10-year useful life. Acquisitions During the Year Ended December 31, 2018 Generic Product Acquisition On August 24, 2018, we purchased the ANDA for a generic topical cream for $30.4 million in cash, which we capitalized as a developed product technology intangible asset. We launched this product during the three months ended December 31, 2018 and began amortizing the developed product technology over a 20-year useful life. Operating results attributable to the product are included within our RX segment. Subsequently, during the year ended December 31, 2019, we identified impairment indicators related to changes in pricing and competition in the market, which lowered the projected cash flows that we expect to generate from the asset. We determined the asset was impaired (refer to Note 4 and Note 7 ). Nasonex-branded Products On May 29, 2018, we entered into a license agreement with Merck Sharp & Dohme Corp. ("Merck"), which allows us to develop and commercialize an OTC version of Nasonex-branded products containing the compound, mometasone furoate monohydrate. The acquisition was accounted for as an asset acquisition based on our assessment that substantially all of the fair value of the gross assets acquired was concentrated in a single identifiable asset to be used for R&D. In accordance with Accounting Standards Codification Topic 730 Research and Development ("ASC 730"), the non-refundable upfront license fee of $50.0 million was recorded in R&D expense in our CSCA segment because the intangible research and development asset acquired has no alternative use. The agreement requires us to make contingent payments if we obtain regulatory approval and achieve certain sales milestones. We will also be obligated to make royalty payments on potential future sales. The contingent consideration will be included in the measurement of the cost of the asset when the contingency is resolved and the consideration is paid or becomes payable. Consideration paid after U.S. Food and Drug Administration ("FDA") approval will be capitalized and amortized to cost of goods sold over the economic life of each product. Pro Forma Impact of Business Combinations The following table presents unaudited pro forma information as if the Ranir acquisition had occurred on January 1, 2018 and the acquisition of Dr. Fresh and Sanofi brands had occurred on January 1, 2019, and had been combined with the results reported in our Consolidated Statements of Operations for all periods presented (in millions): Year Ended (Unaudited) December 31, 2020 December 31, December 31, Net sales $ 5,111.5 $ 5,112.3 $ 5,018.9 Net income (loss) $ (148.6) $ 172.4 $ 96.8 The unaudited pro forma information is presented for information purposes only and is not indicative of the results that would have been achieved if the acquisition had taken place at such time. The unaudited pro forma information presented above includes adjustments primarily for amortization charges for acquired intangible assets, depreciation of property, plant and equipment that have been revalued, certain acquisition-related charges, and related tax effects. Divestitures During the Year Ended December 31, 2020 Rosemont Pharmaceuticals Business On June 19, 2020, we completed the sale of our U.K.-based Rosemont Pharmaceuticals business, a generic prescription pharmaceuticals manufacturer focused on liquid medicines, to a U.K.-headquartered private equity firm for cash consideration of £155.6 million (approximately $195.0 million). The sale resulted in a pre-tax loss of $21.1 million recorded in our CSCI segment in Other (income) expense, net on the Consolidated Statements of Operations. The charge included professional fees and a $46.4 million write-off of foreign currency translation adjustment from Accumulated other comprehensive income. Divestitures During the Year Ended December 31, 2019 Animal Health Business On July 8, 2019, we completed the sale of our animal health business to PetIQ for cash consideration of $182.5 million, which resulted in a pre-tax gain of $71.7 million recorded in our CSCA segment in Other (income) expense, net on the Consolidated Statements of Operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | GOODWILL AND INTANGIBLE ASSETS During the year ended December 31, 2019, we early adopted ASU No. 2017-04 which removed the Step 2 requirement in instances when the carrying value of a reporting unit exceeds its fair value. Prospectively, if a reporting unit’s carrying value exceeds its fair value, we will record an impairment charge in the amount of the difference, limited to the amount of goodwill attributed to that reporting unit. Changes in the carrying amount of goodwill, by reportable segment, were as follows (in millions): CSCA CSCI (1) RX (2) Total Balance at December 31, 2018 $ 1,713.7 $ 1,151.3 $ 1,114.8 $ 3,979.8 Impairments — — (109.2) (109.2) Business divestitures (42.2) — — (42.2) Business acquisitions 223.0 68.1 — 291.1 Currency translation adjustments 4.6 (15.7) 8.3 (2.8) Balance at December 31, 2019 1,899.1 1,203.7 1,013.9 4,116.7 Impairments — — (346.8) (346.8) Business divestitures — (115.6) — (115.6) Business acquisitions 14.8 7.3 — 22.1 Purchase accounting adjustments (10.4) 12.0 — 1.6 Currency translation adjustments 1.5 83.3 6.0 90.8 Balance at December 31, 2020 $ 1,905.0 $ 1,190.7 $ 673.1 $ 3,768.8 (1) We had accumulated goodwill impairments of $868.4 million as of December 31, 2019 and December 31, 2020. (2) We had accumulated goodwill impairments of $109.2 million and $456.0 million as of December 31, 2019 and December 31, 2020, respectively. RX U.S. Reporting Unit Goodwill On March 1, 2021, we announced a definitive agreement to sell our generic RX Pharmaceuticals business to Altaris Capital Partners, LLC for total consideration of $1.55 billion, including $1.5 billion in cash. As part of the consideration, Altaris Capital Partners, LLC will also assume more than $50.0 million in potential R&D milestone payments and contingent purchase obligations with third-party Rx partners. The transaction is subject to antitrust and other customary closing conditions and is expected to close by the end of the third quarter of 2021. While this was a subsequent event, negotiations during the three months ended December 31, 2020 and leading up to the definitive agreement were considered a triggering event to perform a quantitative impairment test as of December 31, 2020. As a result, we determined the reporting unit’s carrying value exceeded estimated fair value. We recognized a goodwill impairment of $144.4 million, leaving $673.1 million of goodwill in the reporting unit as of December 31, 2020 (refer to Note 7 ). During the three months ended September 26, 2020, our RX U.S. reporting unit had an indication of potential impairment driven primarily by the stoppage of production and distribution of albuterol sulfate inhalation aerosol and voluntary nationwide recall to the retail level as a result of reports that some units may not dispense due to clogging, combined with a decline in market multiples. We prepared an impairment test as of September 26, 2020 and determined the carrying value of the RX U.S. reporting unit exceeded its estimated fair value. We recognized a goodwill impairment of $202.4 million, leaving $811.1 million of goodwill in this reporting unit after the impairment. The change in fair value from previous estimates was driven by the financial impact of the recall in the current period and related changes in estimates of future cash flows (refer to Note 7 ). In conjunction with our annual impairment test, during the three months ended December 31, 2019, we tested our RX U.S. reporting unit for impairment. As a result, we determined its carrying value exceeded estimated fair value by $109.2 million, therefore, we recognized an impairment. The change in fair value from previous estimates was driven by industry and market factors that led to reduced projections of future cash flows (refer to Note 7 ). During the three months ended June 29, 2019, our RX U.S. reporting unit had an indication of potential impairment which was driven by a combination of industry and market factors and uncertainty related to the timing and associated cash flows of the projected albuterol sulfate inhalation aerosol (generic equivalent to ProAir ® HFA). We prepared an impairment test as of June 29, 2019 and determined that the fair value of the RX U.S. reporting unit continued to exceed net book value by approximately 10%. The excess was lower than our annual impairment test as of September 30, 2018, in which fair value exceeded carrying value by more than 25%. While no impairment was recorded as of June 29, 2019, we continue monitoring developments such as deterioration in business performance or market multiples which could reduce the fair value of this reporting unit and lead to impairment. BCS Reporting Unit Goodwill During the three months ended June 27, 2020, our Branded Consumer Self-care ("BCS") reporting unit included in the CSCI segment had an indication of potential impairment which was driven by a decrease in forecasted cash flows in the second half of 2020 related to impacts from the COVID-19 pandemic. We prepared an impairment test as of June 27, 2020 and determined that the fair value of the BCS reporting unit exceeded net book value by less than 10%, consistent with our last annual impairment test as of October 1, 2019. While no impairment was recorded as of June 27, 2020, future developments such as deterioration in business performance or market multiples could reduce the fair value of this reporting unit and lead to impairment in a future period. There was no indication of impairment during the six months ended December 31, 2020. Goodwill remaining in this reporting unit was $1,049.2 million as of December 31, 2020. Animal Health Goodwill During the three months ended September 29, 2018, the animal health reporting unit continued to experience declines in its year-to-date financial results and had additional indications of potential impairment due to changes in channel dynamics, a strategic decision to re-prioritize brands, and a decline in the forecasted outlook of the reporting unit. Step one of the goodwill impairment test indicated that the fair value of the animal health reporting unit was below its net book value. We recorded a $136.7 million goodwill impairment charge in the third quarter of 2018 within our CSCA segment . Intangible assets and the related accumulated amortization consisted of the following (in millions): Year Ended December 31, 2020 December 31, 2019 Gross Accumulated Gross Accumulated Indefinite-lived intangibles: Trademarks, trade names, and brands $ 4.3 $ — $ 18.8 $ — In-process research and development 10.8 — 50.0 — Total indefinite-lived intangibles $ 15.1 $ — $ 68.8 $ — Definite-lived intangibles: Distribution and license agreements and supply agreements $ 126.5 $ 87.5 $ 126.7 $ 81.1 Developed product technology, formulations, and product rights 1,363.6 765.9 1,392.8 755.3 Customer relationships and distribution networks 1,934.6 836.4 1,805.6 671.4 Trademarks, trade names, and brands 1,586.6 347.2 1,353.5 250.1 Non-compete agreements 5.2 5.2 6.5 6.0 Total definite-lived intangibles $ 5,016.5 $ 2,042.2 $ 4,685.1 $ 1,763.9 Total intangible assets $ 5,031.6 $ 2,042.2 $ 4,753.9 $ 1,763.9 Certain intangible assets are denominated in currencies other than U.S. dollar; therefore, their gross and net carrying values are subject to foreign currency movements. The remaining weighted-average useful life for our amortizable intangible assets by asset class at December 31, 2020 was as follows: Amortizable Intangible Asset Category Remaining Weighted-Average Useful Life (Years) Distribution and license agreements and supply agreements 7 Developed product technology, formulations, and product rights 12 Customer relationships and distribution networks 16 Trademarks, trade names, and brands 16 We recorded amortization expense of $294.7 million, $305.5 million, and $333.6 million during the years ended December 31, 2020 , December 31, 2019, and December 31, 2018, respectively. Our estimated future amortization expense is as follows (in millions): Year Amount 2021 $ 282.2 2022 252.7 2023 237.3 2024 225.4 2025 214.8 Thereafter 1,761.9 Generic Product (equivalent to Benzaclin ® ) During the year ended December 31, 2019, we identified impairment indicators on a definite-lived intangible asset related to our clindamycin and benzoyl peroxide topical gel (generic equivalent to Benzaclin ® ) in our RX segment. Increases in competition caused price erosion that lowered our long-range revenue forecast, which indicated the asset was no longer recoverable and was impaired. We recorded an asset impairment of $21.2 million (refer to Note 7 ). Licensed Pain Relief Products During the year ended December 31, 2019, following commercial launch delays relating to certain pain relief products that we licensed from a third party, the licensor determined that it would not extend the license agreement upon expiration. As a result, we determined the asset was fully impaired and recorded an asset impairment of $9.7 million relating to this license, which we had reported as a definite-lived intangible asset in our CSCI segment (refer to Note 7 ). Evamist Branded Product During the year ended December 31, 2019, we identified impairment indicators related to our Evamist branded product, which is a definite-lived intangible asset in our RX segment. The indicators related to a decline in sales volume and a corresponding reduction in our long-range revenue forecast. We recorded an asset impairment of $10.8 million (refer to Note 7 ). Generic Product During the year ended December 31, 2019, we identified impairment indicators for a certain definite-lived asset related to changes in pricing and competition in the market, which lowered the projected cash flows we expect to generate from the asset. We recorded an asset impairment of $27.8 million in our RX segment (refer to Note 3 and Note 7 ). In-process R&D ("IPR&D") We recorded an impairment charge of $5.8 million and $8.7 million on certain IPR&D assets during the years ended December 31, 2019, and December 31, 2018, respectively, due to changes in the projected development and regulatory timelines for various projects. Animal Health Intangible Assets During the three months ended September 29, 2018, we performed a recoverability test of the definite-lived intangibles and determined a significant asset group was not recoverable and determined the fair value of the indefinite-lived intangible asset had fallen below its net book value. We recorded an impairment charge in the third quarter of 2018 in our CSCA segment comprised of a brand indefinite-lived intangible asset impairment charge of $27.7 million, a developed product technology and distribution agreement definite-lived intangible asset impairment of $41.6 million, a supply agreement definite-lived intangible asset impairment of $2.8 million, and a trade name and trademark definite-lived intangible asset impairment of $4.5 million (refer to Note 7 ). As a result of the strategic decision to re-prioritize a brand within the indefinite-lived asset, we reassessed the useful life of the indefinite-lived intangible asset and reclassified a $5.4 million indefinite-lived intangible asset to a definite-lived asset within the CSCA segment as of September 29, 2018. Subsequently, during the three months ended September 28, 2019, we completed the sale of our animal health business to PetlQ (refer to Note 3 ). |
Accounts Receivable Factoring
Accounts Receivable Factoring | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Receivable Factoring [Abstract] | |
Accounts receivable factoring | ACCOUNTS RECEIVABLE FACTORING We have accounts receivable factoring arrangements with non-related third-party financial institutions (the “Factors”). Pursuant to the terms of the arrangements, we sell to the Factors certain of our accounts receivable balances on a non-recourse basis for credit approved accounts. An administrative fee per invoice is charged on the gross amount of accounts receivables assigned to the Factors, and interest is calculated at the applicable EUR LIBOR rate plus a spread. The total amount factored on a non-recourse basis and excluded from accounts receivable was $6.9 million and $10.0 million at December 31, 2020 and December 31, 2019, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Major components of inventory were as follows (in millions): Year Ended December 31, December 31, Finished goods $ 679.4 $ 530.3 Work in process 221.7 186.9 Raw materials 299.1 250.1 Total inventories $ 1,200.2 $ 967.3 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement | FAIR VALUE MEASUREMENTS On January 1, 2020, we adopted ASU 2018-13: Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ("Topic 820"). The amendments in this ASU remove disclosure requirements in Topic 820 related to the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. Additionally, Topic 820 adds disclosure requirements for the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. We have amended certain of our quantitative Level 3 fair value measurement disclosures to add the range and weighted average of significant unobservable inputs used. Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable. Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs are not observable. The table below summarizes the valuation of our financial instruments carried at fair value by the above pricing categories (in millions): Year Ended December 31, 2020 December 31, 2019 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Measured at fair value on a recurring basis: Assets: Investment securities $ 2.5 $ — $ — $ 6.6 $ — $ — Foreign currency forward contracts — 21.5 — — 4.3 — Cross-currency swap — 6.3 — — 26.3 — Funds associated with Israeli severance liability — 15.7 — — 14.6 — Royalty Pharma contingent milestone — — — — — 95.3 Total assets $ 2.5 $ 43.5 $ — $ 6.6 $ 45.2 $ 95.3 Liabilities: Foreign currency forward contracts $ — $ 8.2 $ — $ — $ 8.4 $ — Contingent consideration payments — — 13.2 — — 11.9 Total liabilities $ — $ 8.2 $ 13.2 $ — $ 8.4 $ 11.9 Measured at fair value on a non-recurring basis: Assets: Goodwill (1) $ — $ — $ 673.1 $ — $ — $ 1,013.1 Definite-lived intangible assets (2) — — — — — 23.3 Total assets $ — $ — $ 673.1 $ — $ — $ 1,036.4 (1) During the year ended December 31, 2020, goodwill with a carrying amount of $1,019.9 million was written down to a fair value of $673.1 million. During the year ended December 31, 2019, goodwill with a carrying amount of $1,122.3 million was written down to a fair value of $1,013.1 million. (2) During the year ended December 31, 2019, definite-lived intangible assets with a carrying amount of $55.3 million were written down to a fair value of $23.3 million. There were no transfers within Level 3 fair value measurements during the years ended December 31, 2020 or December 31, 2019 (refer to Note 8 for information on our investment securities and Note 9 for a discussion of derivatives). Foreign Currency Forward Contracts We value the foreign currency forward contracts based on notional amounts, contractual rates, and observable market inputs, such as currency exchange rates and credit risk. Cross-currency Swaps We value the cross-currency swaps using a method which discounts the expected cash flows resulting from the derivative. We estimate the cash flows using the contractual term of the derivative, including the period to maturity and we use observable market-based inputs, including interest rate curves, and foreign exchange rates. Funds Associated with Israel Severance Liability Israeli labor laws and agreements require us to pay benefits to employees dismissed or retiring under certain circumstances. Severance pay is calculated on the basis of the most recent employee salary levels and the length of employee service. We make regular deposits to retirement funds and purchase insurance policies to partially fund these liabilities. The funds are determined using prices for recently traded financial instruments with similar underlying terms, as well as directly or indirectly observable inputs, such as interest rates and yield curves, that are observable at commonly quoted intervals. Royalty Pharma Contingent Milestone During the year ended December 31, 2017, we divested the Tysabri ® financial asset to Royalty Pharma for up to $2.85 billion, consisting of $2.2 billion in cash and up to $250.0 million and $400.0 million in contingent milestone payments if the royalties on global net sales of Tysabri ® that are received by Royalty Pharma met specific thresholds in 2018 and 2020, respectively. The table below summarizes the change in fair value of the Royalty Pharma contingent milestone (in millions): Year Ended December 31, December 31, Beginning balance $ 95.3 $ 323.2 Payments received — (250.0) Change in fair value (95.3) 22.1 Ending balance $ — $ 95.3 We value our contingent milestone payments from Royalty Pharma using a modified Black-Scholes Option Pricing Model ("BSOPM"). Key inputs in the BSOPM are the estimated volatility and rate of return of royalties on global net sales of Tysabri ® that are received by Royalty Pharma until the contingent milestones are resolved. As of December 31, 2019, volatility and the estimated fair value of the milestones had a positive relationship such that higher volatility translated to a higher estimated fair value of the contingent milestone payments. Rate of return and the estimated fair value of the milestones had an inverse relationship, such that a lower rate of return correlated with a higher estimated fair value of the contingent milestone payments. We assess volatility and rate of return inputs quarterly by analyzing certain market volatility benchmarks and the risk associated with Royalty Pharma achieving the underlying projected royalties. The table below represents the volatility and rate of return: Year Ended December 31, Volatility 30.0 % Rate of return 7.92 % During the year ended December 31, 2020, Royalty Pharma payments from Biogen for Tysabri ® sales, as defined in the agreement between the parties, did not exceed the 2020 global net sales threshold of $351.0 million. Therefore, we are not entitled to receive the remaining contingent milestone payment of $400.0 million and, accordingly, wrote off the entire fair value of the remaining milestone payment related to 2020 of $95.3 million in Change in financial assets on the Consolidated Statements of Operations. During the year ended December 31, 2019, the fair value of the Royalty Pharma contingent milestone payment related to 2020 increased by $22.1 million to $95.3 million. These adjustments were driven by higher projected global net sales of Tysabri ® and the estimated probability of achieving the earn-out. There was no contingent milestone based on 2019 sales of Tysabri ® . The Royalty Pharma payments from Biogen for Tysabri ® were $337.5 million in 2018, which triggered the $250.0 million milestone payment received during the year ended December 31, 2019. During the year ended December 31, 2018, royalties on global net sales of Tysabri ® received by Royalty Pharma met the 2018 threshold resulting in an increase to the asset and a gain of $170.1 million recognized in Change in financial assets on the Consolidated Statement of Operations. Also during that period, the fair value of the remaining Royalty Pharma contingent milestone payment related to 2020 increased $18.6 million due to higher projected global net sales of Tysabri ® and the estimated probability of achieving the contingent milestone payment related to 2020. Contingent Consideration Payments The table below summarizes the change in fair value of contingent consideration payments (in millions): Year Ended December 31, December 31, December 31, Beginning balance $ 11.9 $ 15.3 $ 22.0 Changes in value 1.3 (1.4) (1.5) Currency translation adjustments — — (0.2) Settlements and other adjustments — (2.0) (5.0) Ending balance $ 13.2 $ 11.9 $ 15.3 Contingent consideration represents milestone payment obligations obtained through product acquisitions, which are valued using estimates based on probability-weighted outcomes, sensitivity analysis, and discount rates reflective of the risk involved. The estimates are updated quarterly and the liabilities are adjusted to fair value depending on a number of assumptions, including the competitive landscape and regulatory approvals that may impact the future sales of a product. The fair value adjustments are recorded in Other operating expense (income) on the Consolidated Statements of Operations. As of December 31, 2020, the contingent consideration payments liability was primarily comprised of sales-based milestones related to an IPR&D asset acquired in a prior transaction in our RX segment. The contingent consideration payments liability also included certain event-based milestones, which were immaterial. The fair value of our contingent consideration sales-based milestones as of December 31, 2020, was calculated using the following significant unobservable inputs: Twelve Months Ended December 31, 2020 Valuation Technique Unobservable Input Range (Weighted Average) (1) Contingent consideration payments: sales-based milestones Discounted cash flow Projected royalties $ 36.6 Projected year of payment of sales-based milestones 2021 - 2036 (2027) Discount rate 26.0 % (1) Unobservable inputs were weighted based on the relative estimated milestone payments. The discount rate of 26.0% was based on our assessment of the rate of return and development and commercialization risk of the related IPR&D project. We reevaluate the significant unobservable inputs of the sales-based milestones quarterly based on project developments and changes in contingent elements of the liability. Non-recurring Fair Value Measurements The non-recurring fair values represent only those assets whose carrying values were adjusted to fair value during the reporting period. Goodwill and Intangible Assets RX U.S. Reporting Unit Goodwill When determining the fair value of our RX U.S. reporting unit in the years ended December 31, 2020 and December 31, 2019, we utilized a combination of comparable company and discounted cash flow techniques. In our comparable company market approach, we considered observable market information and transactions for companies that we deemed to be of a comparable nature, scope, and size of our RX U.S. reporting unit (Level 2 inputs). Our cash flow projections included revenue assumptions related to new and existing products, plus gross margin and operating expenses based on the reporting unit’s growth plans (Level 3 inputs). In our discounted cash flow analysis, we used a long-term growth rate of 0.0%, which assumes new product launches will, over time, offset decreases in cash flows of existing portfolio products with definite lives. We used discount rates of approximately 10% in these analyses. The discount rate correlates with the required investment return and risk that we believe market participants would apply to the projected growth rate. In addition, we burdened projected free cash flows with the capital spending deemed necessary to support the cash flows and applied blended jurisdictional tax rates ranging from 19.1% to 21.7%. We weighted indications of fair value resulting from the market approach and present value techniques, considering the reasonableness of the range of measurements and the point within the range that we determined was most representative of fair market conditions. In the determination of fair value of our RX U.S. reporting unit during the three months ended December 31, 2020, we also considered fair value indications related to negotiations for the sale of our RX business that we announced on March 1, 2021 within the weighted indication of fair value (refer to Note 4 ). Generic product (equivalent to Benzaclin ® ) During the year ended December 31, 2019, we measured the impairment of our clindamycin and benzoyl peroxide topical gel (generic equivalent to Benzaclin ® ), a definite-lived intangible asset. We utilized a discounted cash flow technique to estimate the fair value of the asset. Significant valuation inputs and assumptions relate to our projected future cash flows, including the total market size, our estimated market share, and our average selling price (refer to Note 4 ). Licensed Pain Relief Products During the year ended December 31, 2019, we measured the impairment of certain pain relief products that we license from a third party, a definite-lived intangible asset. We determined the asset was fully impaired because the agreement with the licensor would not be extended upon expiration (refer to Note 4 ). Evamist branded product When measuring the impairment of our Evamist branded product, a definite-lived intangible asset, during the year ended December 31, 2019, we utilized a discounted cash flow technique to estimate the fair value of the asset. Significant valuation inputs and assumptions relate to our projected future cash flows, including volume and average selling price (refer to Note 4 ). Generic product When measuring the impairment of a certain definite-lived asset during the year ended December 31, 2019, we utilized a discounted cash flow technique to estimate the fair value of the asset. Significant valuation inputs and assumptions relate to our projected future cash flows, including the total market size, our estimated market share, and our average selling price (refer to Note 3 and Note 4 ). Animal Health When determining the fair value of our animal health reporting unit for the year ended December 31, 2018, we utilized a combination of comparable company market and discounted cash flow techniques. In our comparable company market approach, we considered observable market information and transactions for companies that we deemed to be of a comparable nature, scope, and size of animal health (Level 2 inputs). Our cash flow projections included revenue assumptions related to new products, product line extensions, and existing products, plus gross margin, advertising and promotion, and other operating expenses based on the growth plans (Level 3 inputs). In our discounted cash flow analysis, we utilized projected sales growth rate and discount rate assumptions of 2.5% and 9.8%, respectively. The discount rate correlates with the required investment return and risk that we believe market participants would apply to the projected growth. In addition, we burdened projected free cash flows with the capital spending deemed necessary to support the cash flows and applied the jurisdictional tax rate of 22.8%. We weighted indications of fair value resulting from the market approach and present value techniques, considering the reasonableness of the range of measurements and the point within the range that we determined was most representative of fair market conditions (refer to Note 4 ). When assessing our animal health indefinite-lived intangible asset for the year ended December 31, 2018, we utilized a multi-period excess earnings method ("MPEEM") to determine the fair value of the intangible asset. Our cash flow projections included revenue assumptions related to new products, product line extensions, and existing products. We utilized long-term growth rate and discount rate assumptions of (0.3)% and 9.8%, respectively, and we applied a jurisdictional tax rate of 22.8% (refer to Note 4 ). When assessing our animal health definite-lived assets for impairment for the year ended December 31, 2018, we utilized a combination of MPEEM and relief from royalty methods to determine the fair values of definite-lived assets within the asset group. The projected financial information, inputs, and assumptions utilized were consistent with those utilized in the goodwill discounted cash flow analysis described above (refer to Note 4 ). Fixed Rate Long-term Debt Our fixed rate long-term debt consisted of the following (in millions): Year Ended December 31, December 31, Level 1 Level 2 Level 1 Level 2 Public bonds Carrying value (excluding discount) $ 2,760.0 $ — $ 2,600.0 $ — Fair value $ 3,031.1 $ — $ 2,618.4 $ — Private placement note Carrying value (excluding premium) $ — $ 164.9 $ — $ 151.4 Fair value $ — $ 177.5 $ — $ 168.4 The fair values of our public bonds for all periods were based on quoted market prices. The fair values of our private placement note for all periods were based on interest rates offered for borrowings of a similar nature and remaining maturities. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities, Equity Method Investments and Joint Ventures [Abstract] | |
Investments | INVESTMENTS The following table summarizes the measurement category, balance sheet location, and balances of our equity securities (in millions): Year Ended Measurement Category Balance Sheet Location December 31, December 31, 2019 Fair value method Prepaid expenses and other current assets $ 2.5 $ 6.6 Fair value method (1) Other non-current assets $ 1.9 $ 2.3 Equity method Other non-current assets $ 69.8 $ 17.8 (1) Measured at fair value using the Net Asset Value practical expedient. The following table summarizes the expense (income) recognized in earnings of our equity securities (in millions): Year Ended Measurement Category Income Statement Location December 31, December 31, December 31, Fair value method Other (income) expense, net $ 3.0 $ 4.9 $ 9.5 Equity method Other (income) expense, net $ (3.0) $ (2.7) $ (2.7) On June 17, 2020, we announced our entrance into the cannabidiol (“CBD”) market through a strategic investment in and long-term supply agreement with Kazmira LLC ("Kazmira"), a leading supplier of hemp-based CBD products free of tetrahydrocannabinol (“zero-THC”) based in Watkins, Colorado. In addition to the supply agreement, we acquired an approximate 20% equity stake in Kazmira for $50.0 million with $15.0 million paid at close of the transaction and the balance due within 18 months thereafter, reported in our CSCA segment (refer to Note 11 ). Our minority equity investment initiates the first phase of the partnership in which we will collaborate to scale-up Kazmira’s facilities and laboratories, in accordance with current Good Manufacturing Practices, to produce zero-THC CBD from industrial hemp that meets our standards for reliability and consistency. In the second phase of the partnership, we will work to launch zero-THC hemp-based CBD products in a number of global markets, while leveraging our supply agreement with Kazmira, which is exclusive for the U.S. store brand market. We will report our equity method earnings from Kazmira in our Consolidated Financial Statements on a quarterly lag. On January 1, 2018, as a result of the adoption of ASU 2016-01 Financial Instruments - Recognition and Measurement of Financial Assets and Liabilities ("ASU 2016-01"), we made a $1.0 million cumulative-effect adjustment to Retained earnings (accumulated deficit) net of tax that consisted of net unrealized losses on previously classified as available for sale securities from OCI. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instruments and hedging activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Cross Currency Swaps In a cross-currency swap, interest payments and principal in one currency are exchanged for principal and interest payments in a different currency. Interest payments are exchanged at fixed intervals during the life of the agreement. Changes in the fair value of cross-currency swaps designated as net investment hedges are recognized as a component of OCI as a foreign currency translation adjustment and are recognized in earnings only upon the sale or substantial liquidation of the hedged net investment. In assessing the effectiveness of these hedges, we use a method based on changes in spot rates to measure the impact of the foreign currency exchange rate fluctuations on both our foreign subsidiary net investment and the related swap. Under this method, changes in the fair value of the hedging instrument, other than those due to changes in the spot rate, are initially recorded in OCI as a translation adjustment. The excluded component is recognized on a systematic and rational basis by accruing the swap payments and receipts within Interest expense, net. On August 15, 2019, we entered into a cross-currency swap designated as a net investment hedge to hedge the Euro currency exposure of our net investment in European operations. This agreement is a contract to exchange floating-rate Euro payments for floating-rate U.S. dollar payments through August 15, 2022. The payments are based on a notional basis of €450.0 million ( $498.0 million) and settle quarterly. Interest Rate Swaps Interest rate swap agreements are contracts to exchange floating rate for fixed rate payments (or vice versa) over the life of the agreement without the exchange of the underlying notional amounts. The notional amounts of the interest rate swap agreements are used to measure interest to be paid or received and do not represent the amount of exposure to credit loss. The differential paid or received on the interest rate swap agreements is recognized as an adjustment to interest expense. There were no active designated or non-designated interest rate swaps as of December 31, 2020 and December 31, 2019. Foreign Currency Forwards In a foreign currency forward, a contract is written to exchange currencies at a fixed exchange rate at a future settlement date. We designate foreign currency forwards primarily as cash flow hedges to protect against foreign currency fluctuations of probable forecasted purchases and sales. The settlement dates of foreign currency forwards range from 1 to 60 months. Foreign currency forward contracts were as follows (in millions): Notional Amount December 31, December 31, Israeli Shekel (ILS) $ 436.5 $ 712.7 European Euro (EUR) 312.6 157.6 United States Dollar (USD) 101.5 92.4 British Pound (GBP) 92.3 86.9 Danish Krone (DKK) 65.2 51.7 Chinese Yuan (CNY) 49.1 20.9 Swedish Krona (SEK) 41.2 42.0 Canadian Dollar (CAD) 36.8 41.3 Polish Zloty (PLZ) 21.8 21.5 Mexican Peso (MPX) 15.6 9.7 Australian Dollar (AUD) 11.3 1.2 Switzerland Franc (CHF) 8.2 4.1 Norwegian Krone (NOK) 7.9 6.6 Romanian New Leu (RON) 3.6 2.3 Other 6.2 6.3 Total $ 1,209.8 $ 1,257.2 Effects of Derivatives on the Financial Statements The below tables indicate the effects of all derivative instruments on the Consolidated Financial Statements. All amounts exclude income tax effects. The balance sheet location and gross fair value of our outstanding derivative instruments were as follows (in millions): Asset Derivatives Fair Value Year Ended Balance Sheet Location December 31, December 31, Designated derivatives Foreign currency forward contracts Prepaid expenses and other current assets $ 13.2 $ 1.0 Foreign currency forward contracts Other non-current assets 0.5 — Cross-currency swap Other non-current assets 6.3 26.3 Total designated derivatives $ 20.0 $ 27.3 Non-designated derivatives Foreign currency forward contracts Prepaid expenses and other current assets $ 7.8 $ 3.3 Liability Derivatives Fair Value Year Ended Balance Sheet Location December 31, December 31, Designated derivatives Foreign currency forward contracts Other accrued liabilities $ 5.8 $ 4.7 Non-designated derivatives Foreign currency forward contracts Other accrued liabilities $ 2.4 $ 3.7 The following tables summarize the effect of derivative instruments designated as hedging instruments in Accumulated Other Comprehensive Income ("AOCI") (in millions): Year Ended December 31, 2020 Instrument Amount of Gain/(Loss) Recorded in OCI (1) Classification of Gain/(Loss) Reclassified from AOCI into Earnings Amount of Gain/(Loss) Reclassified from AOCI into Earnings Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing Cash flow hedges Treasury locks $ — Interest expense, net $ (0.1) Interest expense, net $ — Interest rate swap agreements — Interest expense, net (1.8) Interest expense, net — Foreign currency forward contracts 7.3 Net sales 0.2 Net sales 0.1 Cost of sales 2.9 Cost of sales 1.1 Other (income) expense, net 0.5 $ 7.3 $ 1.2 $ 1.7 Net investment hedges Cross-currency swap $ (20.0) Interest expense, net $ 6.6 Foreign currency forward contract (11.2) Interest expense, net (0.1) $ (31.2) $ 6.5 (1) Net loss of $6.4 million is expected to be reclassified out of AOCI into earnings during the next 12 months. Year Ended December 31, 2019 Instrument Amount of Gain/(Loss) Recorded in OCI Classification of Gain/(Loss) Reclassified from AOCI into Earnings Amount of Gain/(Loss) Reclassified from AOCI into Earnings Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing Cash flow hedges Treasury locks $ — Interest expense, net $ (0.1) Interest expense, net $ — Interest rate swap agreements — Interest expense, net (1.8) Interest expense, net — Foreign currency forward contracts (1.2) Net sales 2.5 Net sales (2.1) Cost of sales 0.1 Cost of sales (1.5) $ (1.2) $ 0.7 $ (3.6) Net investment hedges Cross-currency swap $ 31.2 Interest expense, net $ 4.9 Year Ended December 31, 2018 Effective Portion Instrument Amount of Gain/(Loss) Recorded in OCI Classification of Gain/(Loss) Reclassified from AOCI into Earnings Amount of Gain/(Loss) Reclassified from AOCI into Earnings Treasury locks $ — Interest expense, net $ (0.1) Interest rate swap agreements — Interest expense, net (1.8) Foreign currency forward contracts (9.1) Net sales 0.5 Cost of sales 1.9 Interest expense, net (4.8) Other (income) expense, net 2.1 $ (9.1) $ (2.2) The amounts of (income)/expense recognized in earnings related to our non-designated derivatives on the Consolidated Statements of Operations were as follows (in millions): Year Ended Non-Designated Derivatives Income Statement Location December 31, December 31, December 31, Foreign currency forward contracts Other (income) expense, net $ (10.0) $ (25.4) $ 7.6 Interest expense, net 6.2 1.8 (1.0) $ (3.8) $ (23.6) $ 6.6 The classification and amount of gain/(loss) recognized in earnings on fair value and hedging relationships were as follows (in millions): Year Ended December 31, 2020 Net Sales Cost of Sales Interest Expense, net Other (Income) Expense, net Total amounts of income and expense line items presented on the Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded $ 5,063.3 $ 3,248.1 $ 131.2 $ 17.2 The effects of cash flow hedging: Gain (loss) on cash flow hedging relationships Foreign currency forward contracts Amount of gain or (loss) reclassified from AOCI into earnings $ 0.2 $ 2.9 $ — $ — Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach $ 0.1 $ 1.1 $ — $ 0.5 Treasury locks Amount of gain or (loss) reclassified from AOCI into earnings $ — $ — $ (0.1) $ — Interest rate swap agreements Amount of gain or (loss) reclassified from AOCI into earnings $ — $ — $ (1.8) $ — Year Ended December 31, 2019 Net Sales Cost of Sales Interest Expense, net Other (Income) Expense, net Total amounts of income and expense line items presented on the Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded $ 4,837.4 $ 3,064.1 $ 121.7 $ (66.0) The effects of cash flow hedging: Gain (loss) on cash flow hedging relationships Foreign currency forward contracts Amount of gain or (loss) reclassified from AOCI into earnings $ 2.5 $ 0.1 $ — $ — Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach $ (2.1) $ (1.5) $ — $ — Treasury locks Amount of gain or (loss) reclassified from AOCI into earnings $ — $ — $ (0.1) $ — Interest rate swap agreements Amount of gain or (loss) reclassified from AOCI into earnings $ — $ — $ (1.8) $ — |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES The balance sheet locations of our lease assets and liabilities were as follows (in millions): Assets Balance Sheet Location December 31, December 31, Operating Operating lease assets $ 186.0 $ 129.9 Finance Other non-current assets 31.0 27.6 Total $ 217.0 $ 157.5 Liabilities Balance Sheet Location December 31, December 31, Current Operating Other accrued liabilities $ 34.0 $ 32.0 Finance Current indebtedness 7.2 3.4 Non-Current Operating Other non-current liabilities 159.3 101.7 Finance Long-term debt, less current portion 20.8 21.1 Total $ 221.3 $ 158.2 The below table shows our lease assets and liabilities by reporting segment (in millions): Assets Liabilities Operating Financing Operating Financing December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, CSCA $ 22.8 $ 22.4 $ 16.7 $ 16.8 $ 23.2 $ 22.8 $ 17.0 $ 16.6 CSCI 34.4 41.6 5.9 5.8 35.2 42.4 2.5 2.9 RX 84.4 35.1 1.2 0.8 85.1 36.3 1.1 0.8 Unallocated 44.4 30.8 7.2 4.2 49.8 32.2 7.4 4.2 Total $ 186.0 $ 129.9 $ 31.0 $ 27.6 $ 193.3 $ 133.7 $ 28.0 $ 24.5 Lease expense was as follows (in millions): Year Ended December 31, December 31, Operating leases (1) $ 43.4 $ 43.7 Finance leases Amortization $ 4.8 $ 3.2 Interest 0.8 0.6 Total finance leases $ 5.6 $ 3.8 (1) Includes short-term leases and variable lease costs, which are immaterial. Total operating lease expense for the year ended December 31, 2018 was $51.2 million. The annual future maturities of our leases as of December 31, 2020 are as follows (in millions): Operating Leases Finance Leases Total 2021 $ 40.0 $ 7.8 $ 47.8 2022 31.3 5.0 36.3 2023 23.2 3.1 26.3 2024 19.9 1.7 21.6 2025 17.9 1.5 19.4 After 2025 92.0 13.2 105.2 Total lease payments 224.3 32.3 256.6 Less: Interest 31.0 4.3 35.3 Present value of lease liabilities $ 193.3 $ 28.0 $ 221.3 ` Our weighted average lease terms and discount rates are as follows: December 31, December 31, Weighted-average remaining lease term (in years) Operating leases 10.00 6.56 Finance leases 8.56 10.33 Weighted-average discount rate Operating leases 3.24 % 4.11 % Finance leases 3.05 % 3.47 % Our lease cash flow classifications are as follows (in millions): Year Ended December 31, December 31, Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 41.9 $ 43.9 Operating cash flows for finance leases $ 0.8 $ 0.6 Financing cash flows for finance leases $ 4.4 $ 3.0 Leased assets obtained in exchange for new finance lease liabilities $ 7.6 $ 20.2 Leased assets obtained in exchange for new operating lease liabilities $ 86.9 $ 10.3 |
Leases | LEASES The balance sheet locations of our lease assets and liabilities were as follows (in millions): Assets Balance Sheet Location December 31, December 31, Operating Operating lease assets $ 186.0 $ 129.9 Finance Other non-current assets 31.0 27.6 Total $ 217.0 $ 157.5 Liabilities Balance Sheet Location December 31, December 31, Current Operating Other accrued liabilities $ 34.0 $ 32.0 Finance Current indebtedness 7.2 3.4 Non-Current Operating Other non-current liabilities 159.3 101.7 Finance Long-term debt, less current portion 20.8 21.1 Total $ 221.3 $ 158.2 The below table shows our lease assets and liabilities by reporting segment (in millions): Assets Liabilities Operating Financing Operating Financing December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, CSCA $ 22.8 $ 22.4 $ 16.7 $ 16.8 $ 23.2 $ 22.8 $ 17.0 $ 16.6 CSCI 34.4 41.6 5.9 5.8 35.2 42.4 2.5 2.9 RX 84.4 35.1 1.2 0.8 85.1 36.3 1.1 0.8 Unallocated 44.4 30.8 7.2 4.2 49.8 32.2 7.4 4.2 Total $ 186.0 $ 129.9 $ 31.0 $ 27.6 $ 193.3 $ 133.7 $ 28.0 $ 24.5 Lease expense was as follows (in millions): Year Ended December 31, December 31, Operating leases (1) $ 43.4 $ 43.7 Finance leases Amortization $ 4.8 $ 3.2 Interest 0.8 0.6 Total finance leases $ 5.6 $ 3.8 (1) Includes short-term leases and variable lease costs, which are immaterial. Total operating lease expense for the year ended December 31, 2018 was $51.2 million. The annual future maturities of our leases as of December 31, 2020 are as follows (in millions): Operating Leases Finance Leases Total 2021 $ 40.0 $ 7.8 $ 47.8 2022 31.3 5.0 36.3 2023 23.2 3.1 26.3 2024 19.9 1.7 21.6 2025 17.9 1.5 19.4 After 2025 92.0 13.2 105.2 Total lease payments 224.3 32.3 256.6 Less: Interest 31.0 4.3 35.3 Present value of lease liabilities $ 193.3 $ 28.0 $ 221.3 ` Our weighted average lease terms and discount rates are as follows: December 31, December 31, Weighted-average remaining lease term (in years) Operating leases 10.00 6.56 Finance leases 8.56 10.33 Weighted-average discount rate Operating leases 3.24 % 4.11 % Finance leases 3.05 % 3.47 % Our lease cash flow classifications are as follows (in millions): Year Ended December 31, December 31, Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 41.9 $ 43.9 Operating cash flows for finance leases $ 0.8 $ 0.6 Financing cash flows for finance leases $ 4.4 $ 3.0 Leased assets obtained in exchange for new finance lease liabilities $ 7.6 $ 20.2 Leased assets obtained in exchange for new operating lease liabilities $ 86.9 $ 10.3 |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Indebtedness | INDEBTEDNESS Total borrowings outstanding are summarized as follows (in millions): Year Ended December 31, December 31, Term loan 2019 Term loan due August 15, 2022 $ 600.0 $ 600.0 Notes and bonds Coupon Due 3.500% March 15, 2021 (4) $ — $ 280.4 3.500% December 15, 2021 (1) — 309.6 * 5.105% July 28, 2023 (3) 164.9 151.4 4.000% November 15, 2023 (2) 215.6 215.6 3.900% December 15, 2024 (1) 700.0 700.0 4.375% March 15, 2026 (4) 700.0 700.0 3.150% June 15, 2030 (5) 750.0 — 5.300% November 15, 2043 (2) 90.5 90.5 4.900% December 15, 2044 (1) 303.9 303.9 Total notes and bonds 2,924.9 2,751.4 Other financing 58.6 24.6 Unamortized premium (discount), net (0.3) 7.3 Deferred financing fees (17.1) (14.1) Total borrowings outstanding 3,566.1 3,369.2 Current indebtedness (37.8) (3.4) Total long-term debt less current portion $ 3,528.3 $ 3,365.8 (1) Discussed below collectively as the "2014 Notes" (2) Discussed below collectively as the "2013 Notes" (3) Debt assumed from Omega (4) Discussed below collectively as the "2016 Notes" (5) Discussed below as the "2020 Notes" * Debt denominated in euros subject to fluctuations in the euro-to-U.S. dollar exchange rate. We are in compliance with all covenants under our debt agreements as of December 31, 2020. Revolving Credit Agreements On March 8, 2018, we entered into a $1.0 billion revolving credit agreement maturing on March 8, 2023 (the "2018 Revolver"). There w ere no b orrowings outstanding under the 2018 Revolver as of December 31, 2020 or December 31, 2019. Term Loans On March 8, 2018, we refinanced the €350.0 million outstanding under the previous term loan with the proceeds of a new €350.0 million ($431.0 million) term loan, maturing March 8, 2020 (the "2018 Term Loan"). As a result of the refinancing during the three months ended March 31, 2018, we recorded a loss of $0.5 million, consisting of the write-off of deferred financing fees in Loss on extinguishment of debt on the Consolidated Statements of Operations. During the year ended December 31, 2019, we made $24.7 million in scheduled principal payments. On August 15, 2019, we refinanced the €284.4 million ($317.1 million) outstanding under the 2018 Term Loan with the proceeds of a new $600.0 million term loan, maturing on August 15, 2022 (the "2019 Term Loan"). As a result of the refinancing, during the year ended December 31, 2019, we recorded a loss of $0.2 million, consisting of the write-off of deferred financing fees in Loss on extinguishment of debt on the Consolidated Statements of Operations. Notes and Bonds 2020 Notes and Notes Redemption On June 19, 2020, Perrigo Finance Unlimited Company ("Perrigo Finance"), a public unlimited company incorporated under the laws of Ireland and an indirect wholly-owned finance subsidiary of Perrigo whose primary purpose is to finance the business and operations of Perrigo and its affiliates, issued $750.0 million in aggregate principal amount of 3.150% Senior Notes due 2030 (the “2020 Notes") and received net proceeds of $737.1 million after fees and market discount. Interest on the 2020 Notes is payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2020. The 2020 Notes will mature on June 15, 2030. The 2020 Notes are governed by a base indenture and a third supplemental indenture (collectively, the "2020 Indenture"). The 2020 Notes are fully and unconditionally guaranteed on a senior unsecured basis by Perrigo and no other subsidiary of Perrigo guarantees the 2020 Notes. There are no restrictions under the 2020 Notes on Perrigo's ability to obtain funds from its subsidiaries. Perrigo Finance may redeem the 2020 Notes in whole or in part at any time for cash at the make-whole redemption prices described in the 2020 Indenture. On July 6, 2020, the proceeds of the 2020 Notes were used to fund the redemption of Perrigo Finance's $280.4 million of 3.500% Senior Notes due March 15, 2021 and $309.6 million of 3.500% Senior Notes due December 15, 2021. The balance will be used for general corporate purposes which may include the repayment or redemption of additional indebtedness. As a result of the early redemption of the $280.4 million of 3.500% Senior Notes and $309.6 million of 3.500% Senior Notes, during the year ended December 31, 2020, we recorded a loss of $20.0 million in Loss on extinguishment of debt on the Consolidated Statements of Operations, consisting of the premium on debt repayments, the write-off of deferred financing fees, and the write-off of the remaining bond discounts. 2016 Notes On March 7, 2016, Perrigo Finance issued $500.0 million in aggregate principal amount of 3.500% senior notes due 2021 and $700.0 million in aggregate principal amount of 4.375% senior notes due 2026 (together, the "2016 Notes") and received net proceeds of $1.2 billion after fees and market discount. Interest on the 2016 Notes is payable semi-annually in arrears in March and September of each year, beginning in September 2016. The 2016 Notes are governed by a base indenture and a second supplemental indenture (collectively, the "2016 Indenture"). The 2016 Notes are fully and unconditionally guaranteed on a senior basis by Perrigo, and no other subsidiary of Perrigo guarantees the 2016 Notes. The proceeds were used to repay our revolving credit agreement entered into in December 2014 and amounts borrowed under a $750.0 million revolving credit agreement Perrigo Finance had entered into in December 2015. There are no restrictions under the 2016 Notes on our ability to obtain funds from our subsidiaries. Perrigo Finance may redeem the 2016 Notes in whole or in part at any time for cash at the make-whole redemption prices described in the 2016 Indenture. During the year ended December 31, 2017, we repaid $219.6 million of the 3.500% senior notes due 2021. On July 6, 2020, we repaid the remaining $280.4 million of 3.500% senior notes due 2021, as discussed above under the heading 2020 Notes and Notes Redemption. Notes and Bonds Assumed from Omega In connection with the Omega acquisition, on March 30, 2015, the remaining assumed debt includes €135.0 million ($147.0 million) in aggregate principal amount of 5.105% senior notes due 2023 (the "2023 Notes") The fair value of the 2023 Notes and Retail Bonds exceeded par value by €93.6 million ($101.9 million) on the date of the Omega acquisition. As a result, a fair value adjustment was recorded as part of the carrying value of the underlying debt and will be amortized as a reduction of interest expense over the remaining terms of the respective debt instruments. The adjustment does not affect cash interest payments. Also in connection with the Omega acquisition, we assumed a 5.000% retail bond due in 2019 in the amount of €120.0 million ($130.7 million), which was repaid in full on May 23, 2019. 2014 Notes On December 2, 2014, Perrigo Finance issued $500.0 million in aggregate principal amount of 3.500% senior notes due 2021 (the "2021 Notes”), $700.0 million in aggregate principal amount of 3.900% senior notes due 2024 (the “2024 Notes”), and $400.0 million in aggregate principal amount of 4.900% senior notes due 2044 (the “2044 Notes” and, together with the 2021 Notes and the 2024 Notes, the “2014 Notes”) and received net proceeds of $1.6 billion after fees and market discount. Interest on the 2014 Notes is payable semi-annually in arrears in June and December of each year, beginning in June 2015. The 2014 Notes are governed by a base indenture and a first supplemental indenture (collectively, the "2014 Indenture"). The 2014 Notes are fully and unconditionally guaranteed on a senior unsecured basis by Perrigo, and no other subsidiary of Perrigo guarantees the 2014 Notes. There are no restrictions under the 2014 Notes on our ability to obtain funds from our subsidiaries. Perrigo Finance may redeem the 2014 Notes in whole or in part at any time for cash at the make-whole redemption prices described in the 2014 Indenture. During the year ended December 31, 2017, we repaid $96.1 million of the 4.900% senior notes due 2044 and $190.4 million of the 3.500% senior notes due 2021. On July 6, 2020, we repaid the remaining $309.6 million of the 3.500% notes due 2021, as discussed above under the heading 2020 Notes and Notes Redemption. 2013 Notes On November 8, 2013, Perrigo Company issued $500.0 million aggregate principal amount of its 1.300% senior notes due 2016 (the "1.300% 2016 Notes"), $600.0 million aggregate principal amount of its 2.300% senior notes due 2018 (the "2018 Notes"), $800.0 million aggregate principal amount of its 4.000% senior notes due 2023 (the "4.000% 2023 Notes") and $400.0 million aggregate principal amount of its 5.300% senior notes due 2043 (the "2043 Notes" and, together with the 1.300% 2016 Notes, the 2018 Notes and the 4.000% 2023 Notes, the "2013 Notes") in a private placement with registration rights. We received net proceeds of $2.3 billion from the issuance of the 2013 Notes after fees and market discount. On September 29, 2016, we repaid all $500.0 million of the 1.300% 2016 Notes outstanding. During the year ended December 31, 2017, we made the following debt repayments: all $600.0 million of the 2018 Notes, $584.4 million of the 4.000% 2023 Notes, and $309.5 million of the 2043 Notes. Interest on the 2013 Notes is payable semi-annually in arrears in May and November of each year, beginning in May 2014. The 2013 Notes are governed by a base indenture and a first supplemental indenture (collectively, the "2013 Indenture"). The 2013 Notes are our unsecured and unsubordinated obligations, ranking equally in right of payment to all of our existing and future unsecured and unsubordinated indebtedness. The 2013 Notes are not entitled to mandatory redemption or sinking fund payments. We may redeem the 2013 Notes in whole or in part at any time for cash at the make-whole redemption prices described in the 2013 Indenture. The 2013 Notes were guaranteed on an unsubordinated, unsecured basis by the same entities that guaranteed our then-outstanding credit agreement until November 21, 2014, at which time the 2013 Indenture was amended to remove all guarantors. On September 2, 2014, we offered to exchange our private placement senior notes for public bonds (the "Exchange Offer"). The Exchange Offer expired on October 1, 2014, at which time substantially all of the private placement notes had been exchanged for bonds registered with the Securities and Exchange Commission. As a result of the changes in the guarantor structure noted above, we are no longer required to present guarantor financial statements. Other Financing We have overdraft facilities available that we use to support our cash management operations. We report any balances outstanding in the above table under "Other financing". There were no b orrowings outstanding under the facilities as of December 31, 2020 and December 31, 2019. On June 17, 2020, we incurred debt of $34.3 million related to our equity method investment in Kazmira pursuant to two promissory notes, with $3.7 million, $5.8 million and $24.8 million to be settled in November 2020, May 2021 and November 2021, respectively (refer to Note 8 ). On December 8, 2020, we repaid the $3.7 million balance due on the November 2020 portion of the Promissory Notes. We have financing leases that are reported in the above table under "Other financing" (refer to Note 10 ). Future Maturities The annual future maturities of our short-term and long-term debt, including capitalized leases, are as follows (in millions): Payment Due Amount 2021 $ 37.9 2022 604.2 2023 384.7 2024 704.2 2025 4.2 Thereafter 1,848.3 |
Earnings Per Share And Sharehol
Earnings Per Share And Shareholder's Equity | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Shareholders' Equity | EARNINGS PER SHARE AND SHAREHOLDERS' EQUITY Earnings per Share A reconciliation of the numerators and denominators used in our basic and diluted earnings per share ("EPS") calculation is as follows (in millions): Year Ended December 31, December 31, December 31, Numerator: Net income (loss) $ (162.6) $ 146.1 $ 131.0 Denominator: Weighted average shares outstanding for basic EPS 136.1 136.0 137.8 Dilutive effect of share-based awards* — 0.5 0.5 Weighted average shares outstanding for diluted EPS 136.1 136.5 138.3 Anti-dilutive share-based awards excluded from computation of diluted EPS* — 1.5 1.4 * In the period of a net loss, diluted shares equal basic shares. Shareholders' Equity Our common stock consists of ordinary shares of Perrigo Company plc, a public limited company incorporated under the laws of Ireland. We trade our ordinary shares on the New York Stock Exchange under the symbol PRGO. Our ordinary shares are also traded on the Tel Aviv Stock Exchange. Dividends We paid dividends as follows: Year Ended December 31, December 31, December 31, Dividends paid (in millions) $ 123.9 $ 112.4 $ 104.9 Dividends paid (per share) $ 0.90 $ 0.82 $ 0.76 The declaration and payment of dividends and the amount paid, if any, are subject to the discretion of the Board of Directors and depend on our earnings, financial condition, availability of distributable reserves, capital and surplus requirements and other factors the Board of Directors may consider relevant. Share Repurchases In October 2015, the Board of Directors approved a three-year share repurchase plan of up to $2.0 billion (the "2015 Authorization"). Following the expiration of the 2015 Authorization in October 2018, our Board of Directors authorized up to $1.0 billion of share repurchases with no expiration date, subject to the Board of Directors’ approval of the pricing parameters and amount that may be repurchased under each specific share repurchase program (the "2018 Authorization"). During the year ended December 31, 2020, we repurchased 3.4 million ordinary shares at an average purchase price of $48.28 per share for a total of $164.2 million under the 2018 Authorization . We did not repurchase any shares during the year ended December 31, 2019 . During the year ended December 31, 2018, we repurchased 5.1 million ordinary shares at an average repurchase price of $77.93 per share, for a total of $400.0 million, which were repurchased under the 2015 Authorization. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based compensation plans | SHARE-BASED COMPENSATION PLANS All share-based compensation for employees and directors is granted under the 2019 Long-Term Incentive Plan, as amended (the "Plan"). The Plan has been approved by our shareholders and provides for the granting of awards to our employees and directors. The purpose of the Plan is to attract and retain individuals of exceptional talent and encourage these individuals to acquire a vested interest in our success and prosperity. The awards that may be granted under this program include non-qualified stock options, restricted stock, restricted share units, and performance share units based on relative total shareholder return ("RTSR"). Restricted shares are generally service-based, requiring a certain length of service before vesting occurs, while restricted share units can be either service-based or performance-based. Performance-based restricted share units require a certain length of service until vesting; however, they contain an additional performance feature, which can vary the amount of shares ultimately paid out based on certain performance criteria specified in the Plan. RTSR performance share units are subject to a market condition. Awards granted under the Plan vest and may be exercised and/or sold from one year to ten years after the date of grant based on a vesting schedule. As of December 31, 2020, there were 4.0 million shares available to be granted. Share-based compensation expense was as follows (in millions): Year Ended December 31, December 31, December 31, $ 58.5 $ 52.2 $ 37.7 As of December 31, 2020, unrecognized share-based compensation expense was $55.2 million, and the weighted-average period over which the expense is expected to be recognized was approximately 1.4 years. Proceeds from the exercise of stock options are credited to ordinary shares. Stock Options A summary of activity related to stock options is presented below (options in thousands): Number of Weighted-Average Weighted- Aggregate Options outstanding at December 31, 2018 1,534 $ 91.56 Granted — $ — Exercised (27) $ 34.30 Forfeited or expired (43) $ 99.58 Options outstanding at December 31, 2019 1,464 $ 92.33 5.8 $ — Granted — $ — Exercised — $ — Forfeited or expired (120) $ 78.21 Options outstanding December 31, 2020 1,344 $ 93.61 5.2 $ — Options exercisable 1,138 $ 96.34 4.8 $ — Options expected to vest 200 $ 78.51 7.1 $ — The aggregate intrinsic value for options exercised was as follows (in millions): Year Ended December 31, December 31, December 31, $ — $ 0.5 $ 1.1 The weighted-average fair value per share at the grant date for options granted was as follows: Year Ended December 31, December 31, December 31, $ — $ — $ 24.43 The fair value was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended December 31, Dividend yield 0.8 % Volatility, as a percent 31.2 % Risk-free interest rate 2.8 % Expected life in years 5.6 The valuation model utilizes historical volatility. The risk-free interest rate is based on the yield of U.S. government securities with a maturity date that coincides with the expected term of the option. The expected life in years is estimated based on past exercise behavior of employees. Non-Vested Service-Based Restricted Share Units A summary of activity related to non-vested service-based restricted share units is presented below (units in thousands): Number of Weighted- Weighted- Aggregate Non-vested service-based share units outstanding at December 31, 2018 728 $ 89.47 Granted 818 $ 47.48 Vested (269) $ 95.09 Forfeited (66) $ 71.03 Non-vested service-based share units outstanding at December 31, 2019 1,211 $ 60.96 1.4 $ 62.5 Granted 823 $ 54.68 Vested (372) $ 69.64 Forfeited (42) $ 59.82 Non-vested service-based share units outstanding at December 31, 2020 1,620 $ 55.82 1.0 $ 72.5 The weighted-average fair value per share at the date of grant for service-based restricted share units granted was as follows: Year Ended December 31, December 31, December 31, $ 54.68 $ 47.48 $ 81.51 The total fair value of service-based restricted share units that vested was as follows (in millions): Year Ended December 31, December 31, December 31, $ 25.9 $ 25.6 $ 24.6 Non-Vested Performance-Based Restricted Share Units A summary of activity related to non-vested performance-based restricted share units is presented below (units in thousands): Number of Weighted- Weighted- Aggregate Non-vested performance-based share units outstanding at December 31, 2018 442 $ 86.61 Granted 298 $ 47.54 Vested (68) $ 116.35 Forfeited (19) $ 72.83 Non-vested performance-based share units outstanding at December 31, 2019 653 $ 61.44 1.5 $ 33.7 Granted 291 $ 55.08 Vested (184) $ 68.89 Forfeited (9) $ 70.60 Non-vested performance-based share units outstanding at December 31, 2020 751 $ 57.13 1.4 $ 33.6 The weighted-average fair value of performance-based restricted share units can fluctuate depending upon the success or failure of the achievement of performance criteria as set forth in the Plan. The weighted-average fair value per share at the date of grant for performance-based restricted share units granted was as follows: Year Ended December 31, December 31, December 31, $ 55.08 $ 47.54 $ 85.01 The total fair value of performance-based restricted share units that vested was as follows (in millions): Year Ended December 31, December 31, December 31, $ 12.7 $ 8.0 $ 2.4 Non-vested Relative Total Shareholder Return Performance Share Units The fair value of the RTSR performance share units is determined using the Monte Carlo pricing model as the number of shares to be awarded is subject to a market condition. The valuation model considers a range of possible outcomes, and compensation cost is recognized regardless of whether the market condition is actually satisfied. The assumptions used in estimating the fair value of the RTSR performance share units granted during each year were as follows: Year Ended December 31, December 31, December 31, Dividend yield 1.6 % 1.6 % 0.9 % Volatility, as a percent 40.4 % 40.2 % 35.3 % Risk-free interest rate 0.6 % 1.9 % 2.4 % Expected life in years 2.8 2.4 2.8 A summary of activity related to non-vested RTSR performance share units is presented below (units in thousands): Number of Weighted- Weighted- Aggregate Non-vested RTSR performance share units outstanding at December 31, 2018 62 $ 78.35 Granted 80 $ 55.61 Vested — $ — Forfeited — $ — Non-vested RTSR performance share units outstanding at December 31, 2019 142 $ 63.02 1.5 $ 7.3 Granted 58 $ 67.72 Vested (24) $ 62.73 Forfeited — $ — Non-vested RTSR performance share units outstanding at December 31, 2020 176 $ 65.04 1.5 $ 7.9 * Midpoint used in calculation. The weighted-average fair value per share at the date of grant for RTSR performance share units granted was as follows: Year Ended December 31, December 31, December 31, $ 67.72 $ 55.61 $ 101.13 The total fair value of RTSR performance share units that vested was as follows (in millions): Year Ended December 31, December 31, December 31, $ 1.5 $ — $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Accumulated other comprehensive income(loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in our Accumulated Other Comprehensive Income (loss) ("AOCI") balances, net of tax, were as follows (in millions): Fair Value of Derivative Financial Instruments, net of tax Foreign Currency Translation Adjustments (1) Post-Retirement and Pension Liability Adjustments, net of tax Total AOCI Balance at December 31, 2018 $ (15.5) $ 104.5 $ (4.4) $ 84.6 OCI before reclassifications 26.8 28.4 4.9 60.1 Amounts reclassified from AOCI 1.4 — (6.7) (5.3) Other comprehensive income (loss) 28.2 28.4 (1.8) 54.8 Balance at December 31, 2019 12.7 132.9 (6.2) 139.4 OCI before reclassifications (12.2) 228.0 1.8 217.6 Amounts reclassified from AOCI (1.2) 46.4 (7.2) 38.0 Other comprehensive income (loss) (13.4) 274.4 (5.4) 255.6 Balance at December 31, 2020 $ (0.7) $ 407.3 $ (11.6) $ 395.0 (1) Refer to the description in Note 3 of the Rosemont Pharmaceuticals business divestiture for information regarding amounts reclassified from AOCI. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | INCOME TAXES Pre-tax income (loss) and the (benefit) provision for income taxes from continuing operations are summarized as follows (in millions): Year Ended December 31, December 31, December 31, Pre-tax income (loss): Ireland $ (411.8) $ (300.3) $ (109.0) United States 147.3 (291.9) (428.6) Other foreign 115.1 763.2 828.2 Total pre-tax income (loss) (149.4) 171.0 290.6 Current provision (benefit) for income taxes: Ireland 2.7 (2.2) 22.7 United States 17.6 51.0 66.4 Other foreign 47.4 16.1 75.1 Subtotal 67.7 64.9 164.2 Deferred provision (benefit) for income taxes: Ireland (0.1) — (13.9) United States (52.3) (30.2) 7.3 Other foreign (2.1) (9.8) 2.0 Subtotal (54.5) (40.0) (4.6) Total provision for income taxes $ 13.2 $ 24.9 $ 159.6 A reconciliation of the provision based on the Irish statutory income tax rate to our effective income tax rate is as follows: Year Ended December 31, December 31, December 31, Provision at statutory rate 12.5 % 12.5 % 12.5 % Foreign rate differential 14.9 3.1 (7.1) State income taxes, net of federal benefit (6.2) 2.7 3.0 Provision to return (1.2) 0.8 (1.0) Tax credits 8.8 (2.7) (1.3) Change in tax law (1.8) (1.1) (6.2) Change in valuation allowance 52.0 (29.1) 51.0 Change in unrecognized taxes (28.8) (4.7) 13.8 Permanent differences (70.7) 31.2 (14.1) Legal entity restructuring 21.1 — — Taxes on unremitted earnings (8.8) 3.6 3.9 Other (0.6) (1.7) 0.4 Effective income tax rate (8.8) % 14.6 % 54.9 % Pursuant to changes made by the U.S. Tax Cuts and Jobs Act ("U.S. Tax Act"), remittances from subsidiaries held by Perrigo Company U.S. made in 2018 and future years are generally not subject to U.S. federal income tax. These remittances are either excluded from U.S. taxable income as earnings that were already subject to taxation or qualify for a 100% dividends received deduction. We are indefinitely reinvested in historic U.S. earnings beyond those previously taxed in the U.S. and other unremitted earnings of our foreign subsidiaries, excluding Israel. Due to the complexity of the legal entity structure and the complexity of the tax laws in various jurisdictions, we believe it is not practicable to estimate the additional income taxes that may be payable on the remittance of such undistributed earnings. Deferred income taxes arise from temporary differences between the financial reporting and the tax reporting basis of assets and liabilities and operating loss and tax credit carryforwards for tax purposes. The components of our net deferred income tax asset (liability) were as follows (in millions): Year Ended December 31, December 31, Deferred income tax asset (liability): Depreciation and amortization $ (393.7) $ (366.7) Investment in partnership — (38.1) Right of use assets (44.3) (30.5) Unremitted earnings (42.0) (29.0) Inventory basis differences 27.7 32.7 Accrued liabilities 81.4 91.3 Lease obligations 45.3 30.5 Share-based compensation 24.5 23.2 Federal benefit of unrecognized tax positions 23.5 20.7 Loss and credit carryforwards 390.1 373.3 R&D credit carryforwards 48.4 54.1 Interest carryforwards 17.9 60.5 Other, net 0.9 4.1 Subtotal $ 179.7 $ 226.1 Valuation allowance (1) (414.8) (501.3) Net deferred income tax liability $ (235.1) $ (275.2) (1) The movement in the valuation allowance balance differs from the amount in the effective tax rate reconciliation due to adjustments affecting balance sheet only items and foreign currency. The above amounts are classified on the Consolidated Balance Sheets as follows (in millions): Year Ended December 31, December 31, Assets $ 44.2 $ 5.4 Liabilities (279.3) (280.6) Net deferred income tax liability $ (235.1) $ (275.2) The change in valuation allowance reducing deferred taxes was (in millions): Year Ended December 31, December 31, Balance at beginning of period $ 501.3 $ 557.9 Change in assessment (1) (50.3) (8.3) Current year operations, foreign currency and other (36.2) (48.3) Balance at end of period $ 414.8 $ 501.3 (1) Includes release of $51.5 million of valuation allowance against U.S. deferred tax assets in 2020. We have U.S. federal and state credit carryforwards and U.S. R&D credit carryforwards of $62.0 million as well as U.S. federal and state net operating loss carryforwards and non-U.S. net operating loss carryforwards of $368.6 million, which will expire at various times through 2040. The remaining U.S. and non-US credit carryforwards of $9.0 million, U.S. federal and non-US loss carryforwards of $1,317.5 million, and U.S. interest carryforwards of $78.1 million have no expiration. For the year ended December 31, 2020 we recorded a net decrease in valuation allowances of $86.5 million, comprised primarily of a release of the U.S. valuation allowance against certain deferred tax assets and a decrease in the U.S. valuation allowance due to the CARES Act. Valuation allowances are determined based on management's assessment of its deferred tax assets that are more likely than not to be realized. We recorded a valuation allowance against all U.S. deferred tax assets as of December 31, 2016 and continued to maintain this valuation allowance through December 31, 2019. Given our current earnings and anticipated future earnings, we believe there was sufficient positive evidence as of December 31, 2020 to release a portion of the valuation allowance against our U.S. deferred tax assets. The release resulted in the recognition of $51.5 million of U.S. deferred tax assets. The Company operates in multiple jurisdictions with complex tax policy and regulatory environments and establishes reserves for uncertain tax positions in accordance with the accounting guidance governing uncertainty in income taxes. Uncertainty in a tax position may arise because tax laws are subject to interpretation. The following table summarizes the activity related to the liability recorded for uncertain tax positions, excluding interest and penalties (in millions): Unrecognized Balance at December 31, 2018 $ 377.1 Additions: Positions related to the current year 8.2 Positions related to prior years 3.1 Reductions: Settlements with taxing authorities (3.0) Lapse of statutes of limitation (23.5) Decrease in prior year positions (12.1) Cumulative translation adjustment 0.7 Balance at December 31, 2019 350.5 Additions: Positions related to the current year 18.2 Positions related to prior years 28.9 Reductions: Lapse of statutes of limitation (2.2) Decrease in prior year positions (1.0) Cumulative translation adjustment 1.6 Balance at December 31, 2020 $ 396.0 We recognize interest and penalties related to uncertain tax positions as a component of income tax expense. The total amount accrued for interest and penalties in the liability for uncertain tax positions was $108.9 million, $98.1 million, and $86.8 million as of December 31, 2020, December 31, 2019, and December 31, 2018, respectively. If recognized, of the total liability for uncertain tax positions, $250.2 million, $204.6 million, and $203.7 million as of December 31, 2020, December 31, 2019, and December 31, 2018, respectively, would impact the effective tax rate in future periods. Our major income tax jurisdictions are Ireland, the U.S., Israel, Belgium, France, and the United Kingdom. We are routinely audited by the tax authorities in our major jurisdictions. We have substantially concluded all Ireland income tax matters through the year ended December 31, 2011, all U.S. federal income tax matters through the year ended June 28, 2008, all Israel income tax matters through the year ended June 28, 2014. All significant matters in our remaining major tax jurisdictions have been concluded for tax years through 2016. Internal Revenue Service Audits of Perrigo Company, a U.S. Subsidiary We are engaged in a series of tax disputes in the U.S. relating primarily to transfer pricing adjustments including income in connection with the purchase, distribution, and sale of store-brand OTC pharmaceutical products in the United States, including the heartburn medication omeprazole. On August 27, 2014, we received a statutory notice of deficiency from the IRS relating to our fiscal tax years ended June 27, 2009, and June 26, 2010 (the “2009 tax year” and “2010 tax year”, respectively). On April 20, 2017, we received a statutory notice of deficiency from the IRS for the years ended June 25, 2011 and June 30, 2012 (the “2011 tax year” and “2012 tax year”, respectively). Specifically, both statutory notices proposed adjustments related to the offshore reporting of profits on sales of omeprazole in the United States resulting from the assignment of an omeprazole distribution contract to an affiliate. In addition to the transfer pricing adjustments, which applied to all four tax years, the statutory notice of deficiency for the 2011 and 2012 tax years included adjustments for the capitalization and amortization of certain expenses that were deducted when paid or incurred in defending against certain patent infringement lawsuits related to Abbreviated New Drug Applications (“ANDAs”). We do not agree with the audit adjustments proposed by the IRS in either of the notices of deficiency. We paid the assessed amounts of tax, interest, and penalties set forth in the statutory notices and timely filed claims for refund on June 11, 2015 for the 2009 and 2010 tax years, and on June 7, 2017, for the 2011 and 2012 tax years. On August 15, 2017, following disallowance of such refund claims, we timely filed a complaint in the United States District Court for the Western District of Michigan seeking refunds of tax, interest, and penalties of $27.5 million for the 2009 tax year, $41.8 million for the 2010 tax year, $40.1 million for the 2011 tax year, and $24.7 million for the 2012 tax year, for a total of $134.1 million, plus statutory interest thereon from the dates of payment. The amounts sought in the complaint for the 2009 and 2010 tax years were recorded as deferred charges in Other non-current assets on our balance sheet during the three months ended March 28, 2015, and the amounts sought in the complaint for the 2011 and 2012 tax years were recorded as deferred charges in Other non-current assets on our balance sheet during the three months ended July 1, 2017. The previously scheduled trial date has been continued to May 25, 2021 for the refund case. The total amount of cumulative deferred charge that we are seeking to receive in this litigation is approximately $111.6 million, which reflects the impact of conceding that Perrigo Company, our U.S. subsidiary ("Perrigo U.S.") should have received a 5.24% royalty on all omeprazole sales. That concession was previously paid and is the subject of the above refund claims. The issues outlined in the statutory notices of deficiency described above are continuing, and the IRS will likely carry forward the adjustments set forth therein as long as the drug is sold, in the case of the omeprazole issue, and for all post-2012 Paragraph IV filings that trigger patent infringement suits, in the case of the ANDA issue. On January 13, 2021, the IRS issued a 30-day letter with respect to its audit of our fiscal tax years ended June 29, 2013, June 28, 2014, and June 27, 2015. The IRS letter proposed, among other modifications, transfer pricing adjustments regarding our profits from the distribution of omeprazole in such years in the aggregate amount of $141.6 million. We timely filed a protest to the 30-day letter noting that due to the pending litigation described above, IRS Appeals will not consider the merits of the omeprazole or ANDA matters. We believe that we should prevail on the merits on both issues and have reserved for taxes and interest payable on the 5.24% deemed royalty on omeprazole through the tax year ended December 31, 2018. Beginning with the tax year ended December 31, 2019, we began reporting income commensurate with the 5.24% deemed royalty. We have not reserved for the ANDA-related issue described above. While we believe we should prevail on the merits of this case, the outcome remains uncertain. If our litigation position on the omeprazole issue is not sustained, the outcome for the 2009–2012 tax years could range from a reduction in the refund amount to denial of any refund. In addition, we expect that the outcome of the refund litigation could effectively bind future tax years. In that event, an adverse ruling on the omeprazole issue could have a material impact on subsequent periods, with additional tax liability in the range of $24.0 million to $112.0 million, not including interest and any applicable penalties. The 30-day letter also proposed to reduce Perrigo Company’s deductible interest expense for fiscal tax years ended June 28, 2014 (the "2014 tax year") and June 27, 2015 (the "2015 tax year") on $7.5 billion in debts owed by it to Perrigo Company plc. The debts were incurred in connection with the Elan merger transaction in 2013. On May 7, 2020, the IRS issued a NOPA capping the interest rate on the debts for U.S. federal tax purposes at 130.0% of the Applicable Federal Rate (a blended rate reduction of 4.0% per annum), on the stated ground that the loans were not negotiated on an arms’-length basis. The NOPA proposes a reduction in gross interest expense of approximately $414.7 million for tax years 2014 and 2015. On January 13, 2021, we received a Revenue Agent Report ("RAR") together with the 30-day letter requiring our filing of a written Protest to request IRS Appeals consideration. The Protest was filed with the IRS on February 26, 2021. If the IRS were to prevail in its proposed adjustment, we estimate an increase in tax expense of approximately $170.0 million, excluding interest and penalties, for fiscal years ended June 28, 2014 through June 27, 2015. In addition, we expect the IRS to seek similar adjustments for the fiscal years ended December 31, 2015 through December 31, 2018 with potential section 163(j) carryover impacts beyond December 2018. If those further adjustments were sustained, based on preliminary calculations and subject to further analysis, our current best estimate is that the additional tax expense will not exceed $200.0 million, excluding interest and penalties. No further adjustments beyond this period are expected. We strongly disagree with the IRS position and we will pursue all available administrative and judicial remedies necessary. At this stage, we are unable to estimate any additional liability, if any, associated with this matter. Internal Revenue Service Audit of Athena Neurosciences, Inc., a U.S. Subsidiary On April 26, 2019, we received a revised NOPA from the IRS regarding transfer pricing positions related to the IRS audit of Athena Neurosciences, Inc. ("Athena") for the years ended December 31, 2011, December 31, 2012, and December 31, 2013. The NOPA carries forward the IRS's theory from its 2017 draft NOPA that when Elan took over the future funding of Athena's in-process research and development after acquiring Athena in 1996, Elan should have paid a substantially higher royalty rate for the right to exploit Athena’s intellectual property, rather than rates based on transfer pricing documentation prepared by Elan's external tax advisors. The NOPA proposes a payment of $843.0 million, which represents additional tax and a 40.0% penalty. This amount excludes consideration of offsetting tax attributes and any potential interest that may be imposed. We strongly disagree with the IRS position and will pursue all available administrative and judicial remedies, including those available under the U.S. - Ireland Income Tax Treaty to alleviate double taxation. Accordingly, on April 14, 2020, we filed a request for Competent Authority Assistance with the IRS. The request was accepted and is under review. No payment of the additional amounts is required until the matter is resolved administratively, judicially, or through treaty negotiation. On December 22, 2016, we received a NOPA from the IRS regarding the deductibility of litigation costs related to the IRS audit of Athena for the years ended December 31, 2011, December 31, 2012, and December 31, 2013. We strongly disagree with the IRS’s position asserted in the NOPA and are contesting it. We amended our request for Competent Authority Assistance and this amendment was accepted and is under review. Irish Revenue Audit of Fiscal Years Ended December 31, 2012 and December 31, 2013 On October 30, 2018, we received an audit finding letter from the Irish Office of the Revenue Commissioners (“Irish Revenue”) for the years ended December 31, 2012 and December 31, 2013. The audit finding letter relates to the tax treatment of the 2013 sale of the Tysabri ® intellectual property and other assets related to Tysabri ® to Biogen Idec by Elan Pharma. The consideration paid by Biogen to Elan Pharma took the form of an upfront payment and future contingent royalty payments. Irish Revenue issued a Notice of Amended Assessment (“NoA”) on November 29, 2018 which assesses an Irish corporation tax liability against Elan Pharma in the amount of €1,636 million, not including interest or any applicable penalties. We strongly disagree with this assessment and believe that the NoA is without merit and incorrect as a matter of law. We will pursue all available administrative and judicial avenues as may be necessary or appropriate. In connection with that, we filed an appeal of the NoA on December 27, 2018 with the Irish Tax Appeals Commission ("TAC") which is the statutory body charged with considering whether the NoA is properly founded as a matter of Irish tax law. Separately, we were also granted leave by the Irish High Court on February 25, 2019 to seek judicial review of the issuance of the NoA by Irish Revenue. On November 4, 2020, the High Court ruled that the Irish Revenue's decision to issue the NoA did not violate Elan Pharma's constitutional rights and legitimate expectations as a taxpayer. The Irish High Court did not rule on the merits of the NoA under Irish tax law. The TAC will now consider whether the NoA is correct as a matter of Irish tax law. Elan Pharma will vigorously pursue its tax appeal before the TAC. The tax appeal is scheduled to be heard in November 2021. No payment will be required unless the appeal pending before the Tax Appeals Commission is finally determined against Elan Pharma. Israel Tax Authority Audit of Fiscal Year Ended June 27, 2015 and Calendar Years Ended December 31, 2015 through December 31, 2017 The Israel Tax Authority audited our fiscal year ended June 27, 2015, and calendar years ended December 31, 2015, December 31, 2016 and December 31, 2017. On December 29, 2020, we received a Stage A assessment from the Israeli Tax Authority for the tax years ended December 31, 2015 through December 31, 2017 in the amount of $63.8 million relating to attribution of intangible income to Israel, income qualifying for a lower preferential rate of tax, exemption from capital gains tax, and deduction of certain settlement payments. We have been granted an extension of time, to March 28, 2021, to file a protest to the assessment to move the matter to Stage B of the assessment process. We strongly disagree with the assessment and will pursue all available administrative and judicial remedies necessary. Although we believe our tax estimates are reasonable and we prepare our tax filings in accordance with all applicable tax laws, the final determination with respect to any tax audit and any related litigation could be materially different from our estimates or from our historical income tax provisions and accruals. The results of an audit or litigation could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, and/or interest assessments. Based on the final resolution of tax examinations, judicial or administrative proceedings, changes in facts or law, expirations of statute of limitations in specific jurisdictions or other resolutions of, or changes in, tax positions - one or more of which may occur within the next twelve months - it is reasonably possible that unrecognized tax benefits for certain tax positions taken on previously filed tax returns may change materially from those recorded as of December 31, 2020. However, we are not able to estimate a reasonably possible range of how these events may impact our unrecognized tax benefits in the next twelve months. Recent Tax Law Changes On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act ("U.S. Tax Act"). The U.S. Tax Act includes a number of significant changes to the existing U.S. tax laws that impact us. These changes include a corporate income tax rate reduction from 35% to 21% and the elimination or reduction of certain U.S. deductions and credits including limitations on the U.S. deductibility of interest expense and executive compensation. The U.S. Tax Act also transitions the U.S. taxation of international earnings from a worldwide system to a modified territorial system. These changes were effective beginning in 2018. The U.S. Tax Act also includes a one-time mandatory deemed repatriation tax on accumulated U.S. owned foreign corporations’ previously untaxed foreign earnings (“Transition Toll Tax”). We paid our full Transition Toll Tax liability as of December 31, 2018. On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of the U.S. GAAP ASC 740 income tax accounting for tax law changes enacted in the U.S. during 2017, in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the U.S. Tax Act. In accordance with SAB 118, for the year ended December 31, 2018, we recorded an income tax benefit of $2.4 million in connection with the remeasurement of certain deferred tax assets and liabilities and also recorded a $17.5 million increase of current tax expense in connection with the Transition Toll Tax on cumulative U.S. owned foreign earnings of $1.2 billion. For the year ended December 31, 2018, we completed the accounting for the income tax effects of the U.S. Tax Act. Based on additional guidance issued by the IRS and updates to our calculations we recorded a benefit of $6.3 million related to the Transition Toll Tax. There were no other material changes to the amounts recorded at December 31, 2018. We also finalized the provisional estimate related to our assertion on unremitted earnings of foreign subsidiaries recording an additional deferred tax liability of $8.3 million for the state income tax impacts of repatriating undistributed foreign earnings. The U.S. Tax Act subjects a U.S. shareholder to tax on global intangible low-taxed income ("GILTI") earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. We have elected an accounting policy to provide for the tax expense related to GILTI in the year the tax is incurred ("period cost method"). On March 27, 2020, the U.S. enacted the CARES Act. The CARES Act allowed for an increased interest expense limitation and depreciation deductions resulting in a reduction of income tax expense of approximately $36.6 million for tax years 2019 and 2020. Additionally, Treasury and the IRS issued Proposed and Final Regulations in 2020 regarding interest expense limitations under Section 163(j). These regulations adjust the definition of interest expense and items allowable in adjusted taxable income to calculate the annual interest deduction limitation. Perrigo has applied the updated regulations resulting in a reduction of income tax expense of approximately $8.9 million during 2020. On December 22, 2017, the Belgian Parliament approved Belgian tax reform legislation (“Belgium Tax Act”), which was signed by the Belgian King and enacted on December 25, 2017. The Belgium Tax Act provides for a reduction to the corporate income tax rate from 34% to 30%, for 2018 and 2019, as well as a reduced corporate income tax rate of 25% for 2020 and beyond. The Belgium Tax Act also increased the participation exemption on dividend distributions to Belgium entities from 95% to 100%. The Belgium Tax Act also introduces Belgium tax consolidation and other anti-tax avoidance directives. For the year ended December 31, 2018, we recorded additional income tax expense of $24.1 million for the remeasurement of certain deferred tax assets and additional income tax benefit of $33.2 million for the remeasurement of certain deferred tax liabilities as a result of the Belgium Tax Act. Lastly, for the year ended December 31, 2018, we fully reversed the deferred tax liability recorded for Belgian Fairness Tax assessment on unrepatriated earnings, as this tax was ruled unconstitutional in the first quarter of 2018. |
Post Employment Plans
Post Employment Plans | 12 Months Ended |
Dec. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Post employment plans | POST-EMPLOYMENT PLANS On December 31, 2020, we adopted ASU 2018-14: Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. The amendments in this ASU remove the disclosure of amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. Additionally, Subtopic 715-20 adds disclosure requirements to explain the reasons for significant gains and losses related to changes in the benefit obligation for the period. Defined Contribution Plans We have a qualified profit-sharing and investment plan under Section 401(k) of the IRS, which covers substantially all U.S. employees. Our contributions to the plan include an annual nondiscretionary contribution of 3% of an employee's eligible compensation and a discretionary contribution at the option of the Board of Directors. Additionally, we match a portion of employees' contributions. We also have a defined contribution plan that covers our Ireland employees. We contribute up to 18% of each participating employee’s annual eligible salary on a monthly basis. We assumed a number of defined contribution plans associated with the Omega acquisition and we pay contributions to the pension insurance plans. Our contributions to all of the plans were as follows (in millions): Year Ended December 31, December 31, December 31, 2018 $ 27.3 $ 26.6 $ 25.2 Pension and Post-Retirement Healthcare Benefit Plans We have a number of defined benefit plans for employees based primarily in Ireland, the Netherlands, Belgium, Germany, Switzerland, Greece and France. Our defined benefit pension plans are managed externally and the related pension costs and liabilities are assessed at least annually in accordance with the advice of a qualified professional actuary. We used a December 31, 2020 measurement date and all plan assets and liabilities are reported as of that date. We provide certain healthcare benefits to eligible U.S. employees and their dependents who meet certain age and service requirements when they retire. Generally, benefits are provided to eligible retirees after age 65 and to their dependents. Increases in our contribution for benefits are limited to increases in the Consumer Price Index. Additional healthcare cost increases are paid through participant contributions. We accrue the expected costs of such benefits during a portion of the employees’ years of service. The plan is not funded. Under current plan provisions, the plan is not eligible for any U.S. federal subsidy related to the Medicare Modernization Act of 2003 Part D Subsidy. The change in the projected benefit obligation and plan assets consisted of the following (in millions): Pension Benefits Other Benefits Year Ended Year Ended December 31, December 31, 2019 December 31, December 31, 2019 Projected benefit obligation at beginning of period $ 186.9 $ 168.6 $ 3.7 $ 5.6 Curtailment — (2.5) — — Service costs 2.7 2.5 — 0.6 Interest cost 2.8 3.8 0.1 0.2 Actuarial loss (gain) 7.0 22.7 (0.2) 0.3 Amendments — — — (2.9) Contributions paid 0.2 0.3 — — Benefits paid (2.3) (1.6) (0.1) (0.1) Settlements — (3.8) — — Foreign currency translation 17.0 (3.1) — — Projected benefit obligation at end of period $ 214.3 $ 186.9 $ 3.5 $ 3.7 Fair value of plan assets at beginning of period 165.4 151.9 — — Actual return on plan assets 8.3 19.8 — — Benefits paid (2.3) (1.6) (0.1) (0.1) Settlements — (3.8) — — Employer contributions 2.3 2.0 0.1 0.1 Contributions paid 0.2 0.3 — — Foreign currency translation 15.2 (3.2) — — Fair value of plan assets at end of period $ 189.1 $ 165.4 $ — $ — Unfunded status $ (25.2) $ (21.5) $ (3.5) $ (3.7) Presented as: Other non-current assets $ 17.9 $ 15.8 $ — $ — Other non-current liabilities $ (43.1) $ (37.3) $ — $ — The total accumulated benefit obligation for the defined benefit pension plans was $207.5 million and $180.8 million at December 31, 2020 and December 31, 2019 respectively. The following information relates to pension plans with an accumulated benefit obligation in excess of plan assets (in millions): Year Ended December 31, December 31, 2019 Accumulated benefit obligation $ 107.4 $ 93.7 Fair value of plan assets $ 71.1 $ 62.1 The following information relates to pension plans with a projected benefit obligation in excess of plan assets (in millions): Year Ended December 31, December 31, 2019 Projected benefit obligation $ 114.2 $ 99.4 Fair value of plan assets $ 71.1 $ 62.1 The following unrecognized actual gain for the other benefits liability was included in OCI, net of tax (in millions): Year Ended December 31, December 31, 2019 December 31, $ 0.2 $ 2.6 $ 1.3 The unamortized net actuarial loss (gain) in AOCI net of tax for defined benefit pension and other benefits was as follows (in millions): Year Ended December 31, December 31, 2019 December 31, $ 11.6 $ 6.2 $ 4.4 The total estimated credit amount to be recognized from AOCI into net periodic cost during the next year is $1.0 million. At December 31, 2020, the total estimated future benefit payments to be paid by the plans for the next five years is approximately $14.7 million for pension benefits and $0.8 million for other benefits as follows (in millions): Payment Due Pension Benefits Other Benefits 2021 $ 2.1 $ 0.1 2022 2.6 0.1 2023 2.6 0.2 2024 3.5 0.2 2025 3.9 0.2 Thereafter 27.4 1.1 The expected benefits to be paid are based on the same assumptions used to measure our benefit obligation at December 31, 2020, including the expected future employee service. We expect to contribute $2.4 million to the defined benefit plans within the next year. Net periodic pension cost consisted of the following (in millions): Pension Benefits Other Benefits Year Ended Year Ended December 31, 2020 December 31, 2019 December 31, 2018 December 31, 2020 December 31, 2019 December 31, 2018 Service cost $ 2.7 $ 2.5 $ 3.0 $ — $ 0.6 $ 0.6 Interest cost 2.8 3.8 3.8 0.1 0.2 0.2 Expected return on assets (4.9) (4.9) (5.3) — — — Settlement — 0.9 — — — — Curtailment — (2.5) (1.2) — — — Net actuarial loss/(gain) 0.9 0.8 0.6 (3.2) (0.3) (0.1) Net periodic pension cost/(gain) $ 1.5 $ 0.6 $ 0.9 $ (3.1) $ 0.5 $ 0.7 The components of the net periodic pension cost, other than the service cost component, are included in the line item Other (income) expense, net in the Consolidated Statement of Operations. The decrease in the discount rate from 1.06% to 0.95% has increased the liability. This decrease of 0.11% versus the discount rate used at December 31, 2019 is primarily attributable to the reduction in bond yields across the Euro zone. The weighted-average assumptions used to determine net periodic pension cost and benefit obligation were: Pension Benefits Other Benefits Year Ended Year Ended December 31, December 31, 2019 December 31, December 31, December 31, 2019 December 31, Discount rate 0.95 % 1.06 % 2.04 % 3.14 % 4.25 % 3.59 % Inflation 1.33 % 1.18 % 1.45 % Expected return on assets 1.76 % 2.54 % 2.94 % Interest crediting rates 0.59 % 0.83 % 1.41 % The discount rate is based on market yields at the valuation date and chosen with reference to the yields available on high quality corporate bonds, with regards to the duration of the plan's liabilities. As of December 31, 2020, the expected weighted-average long-term rate of return on assets of 1.8% was calculated based on the assumptions of the following returns for each asset class: Equities 5.0 % Bonds 1.7 % Absolute return fund 4.0 % Insurance contracts 1.6 % Other 0.9 % The investment mix of the pension plans' assets is a blended asset allocation, with a diversified portfolio of shares listed and traded on recognized exchanges. Certain of our plans have target asset allocation ranges. As of December 31, 2020, these ranges were as follows: Equities 20%-30% Bonds 40%-50% Absolute return 20%-30% Other plans do not have target asset allocation ranges, for such plans, the strategy is to invest mainly in Insurance Contracts. The purpose of the pension funds is to provide a flow of income for members in retirement. A flow of income delivered through fixed interest bonds provides a costly but close match to this objective. Equities are held within the portfolio as a means of reducing this cost, but holding equities creates a strategic risk because they give a very different pattern of return. Property investments are held to help diversify the portfolio. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies, and investment portfolio reviews. The following table sets forth the fair value of the pension plan assets (in millions): Year Ended December 31, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Equities $ — $ 42.8 $ — $ 42.8 $ 0.1 $ 24.5 $ — $ 24.6 Bonds 1.2 43.0 — 44.2 1.1 32.7 — 33.8 Insurance contracts — — 64.2 64.2 — — 56.1 56.1 Absolute return fund — 30.8 — 30.8 — 44.9 — 44.9 Other — 7.1 — 7.1 — 6.0 — 6.0 Total $ 1.2 $ 123.7 $ 64.2 $ 189.1 $ 1.2 $ 108.1 $ 56.1 $ 165.4 The following table sets forth a summary of the changes in the fair value of the Level 3 pension plan assets, which were measured at fair value on a recurring basis (in millions): Year Ended December 31, December 31, 2019 Assets at beginning of year $ 56.1 $ 49.9 Actual return on plan assets 1.9 8.1 Purchases, sales and settlements, net 1.2 (0.5) Foreign exchange 5.0 (1.4) Assets at end of year $ 64.2 $ 56.1 The fair value of the insurance contracts is an estimate of the amount that would be received in an orderly sale to a market participant at the measurement date. The amount the plan would receive from the contract holder if the contracts were terminated is the primary input and is unobservable. The insurance contracts are therefore classified as Level 3 investments. Deferred Compensation Plans We have non-qualified plans related to deferred compensation and executive retention that allow certain employees and directors to defer compensation subject to specific requirements. Although the plans are not formally funded, we own insurance policies that had a cash surrender value of $37.3 million and $34.4 million at December 31, 2020 and December 31, 2019, respectively, that are intended as a long-term funding source for these plans. The assets, which are recorded in Other non-current assets, are not a committed funding source and may, under certain circumstances, be subject to claims from creditors. The deferred compensation liability of $34.2 million and $31.3 million at December 31, 2020 and December 31, 2019, respectively, was recorded in Other non-current liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | COMMITMENTS AND CONTINGENCIES We lease certain assets, principally warehouse facilities and computer equipment, under agreements that expire at various dates through the year ended December 31, 2040. Certain leases contain provisions for renewal and purchase options and require us to pay various related expenses. The annual future maturities of our leases as of December 31, 2020 was $221.3 million (refer to Note 10 ). Rent expense under all leases was $48.2 million, $48.8 million, and $51.2 million for the years ended December 31, 2020, December 31, 2019, and December 31, 2018, respectively. At December 31, 2020, we had non-cancelable purchase obligations totaling $1.2 billion consisting of contractual commitments to purchase materials and services to support operations. The majority of the obligations are expected to be paid within one year. In view of the inherent difficulties of predicting the outcome of various types of legal proceedings, we cannot determine the ultimate resolution of the matters described below. We establish reserves for litigation and regulatory matters when losses associated with the claims become probable and the amounts can be reasonably estimated. The actual costs of resolving legal matters may be substantially higher or lower than the amounts reserved for those matters. For matters where the likelihood or extent of a loss is not probable or cannot be reasonably estimated as of December 31, 2020, we have not recorded a loss reserve. If certain of these matters are determined against us, there could be a material adverse effect on our financial condition, results of operations, or cash flows. We currently believe we have valid defenses to the claims in these lawsuits and intend to defend these lawsuits vigorously regardless of whether or not we have a loss reserve. Other than what is disclosed below, we do not expect the outcome of the litigation matters to which we are currently subject to, individually or in the aggregate, have a material adverse effect on our financial condition, results of operations, or cash flows. Price-Fixing Lawsuits Perrigo is a defendant in several cases in the generic pricing multidistrict litigation MDL No. 2724 (United States District Court for Eastern District of Pennsylvania) . This multidistrict litigation, which has many cases that do not include Perrigo, includes class action and opt-out cases for federal and state antitrust claims, as well as complaints filed by certain states alleging violations of state antitrust laws. On July 14, 2020, the court issued an order designating the following cases to proceed on a more expedited basis (as a bellwether) than the other cases in MDL No. 2724: (a) the May 2019 state case alleging an overarching conspiracy involving more than 120 products (which does not name Perrigo a defendant) and (b) class actions alleging “single drug” conspiracies involving Clomipramine, Pravastatin, and Clobetasol. Perrigo is a defendant in the Clobetasol cases but not the others. On February 9, 2021, the court entered an order provisionally deciding to remove the May 2019 state case and the pravastatin class cases from the bellwether proceedings. The clobetasol class cases remain part of the bellwether. The order allows additional briefing on these issues and other cases may be added to the bellwether cases. Class Action Complaints (a) Single Drug Conspiracy Class Actions We have been named as a co-defendant with certain other generic pharmaceutical manufacturers in a number of class actions alleging single-product conspiracies to fix or raise the prices of certain drugs and/or allocate customers for those products starting, in some instances, as early as June 2013. The class actions were filed on behalf of putative classes of (a) direct purchasers, (b) end payors, and (c) indirect resellers. The products in question are Clobetasol gel, Desonide, and Econazole. The court denied motions to dismiss each of the complaints alleging “single drug” conspiracies involving Perrigo, and the cases are proceeding in discovery. As noted above, the Clobetasol cases have been designated to proceed on a more expedited schedule than the other cases. That schedule has not yet been set. (b) “Overarching Conspiracy” Class Actions The same three putative classes, including (a) direct purchasers, (b) end payors, and (c) indirect resellers, have filed two sets of class action complaints alleging that Perrigo and other manufacturers (and some individuals) entered into an “overarching conspiracy” that involved allocating customers, rigging bids and raising, maintaining, and fixing prices for various products. Each class brings claims for violations of Sections 1 and 3 of the Sherman Antitrust Act as well as several state antitrust and consumer protection statutes. Filed in June 2018, and later amended in December 2018 (with respect to direct purchasers) and April 2019 (with respect to end payors and indirect resellers), the first set of “overarching conspiracy” class actions include allegations against Perrigo and approximately 27 other manufacturers involving 135 drugs with allegations dating back to March 2011. The allegations against Perrigo concern only two formulations (cream and ointment) of one of the products at issue, Nystatin. The court denied motions to dismiss the first set of “overarching conspiracy” class actions, and they are proceeding in discovery. None of these cases are included in the group of cases on a more expedited schedule pursuant to the court’s July 14, 2020 order. In December 2019, both the end payor and indirect reseller class plaintiffs filed a second set of "overarching conspiracy” class actions against Perrigo, dozens of other manufacturers of generic prescription pharmaceuticals, and certain individuals dating back to July 2009 (end payors) or January 2010 (indirect resellers). The direct purchaser plaintiffs filed their second round overarching conspiracy complaint in February 2020 with claims dating back to July 2009. On March 11, 2020, the indirect reseller plaintiffs filed a motion to amend their second round December 2019 complaint, and that motion was granted. On September 4, 2020, and December 15, 2020, the end payor plaintiffs amended their second round complaint. On October 21, 2020, the direct purchaser plaintiffs amended their second round complaint. On December 15, 2020, the indirect reseller plaintiffs filed another complaint adding allegations for additional drugs that mirror the other class plaintiffs’ claims. This second set of overarching complaints allege conspiracies relating to the sale of various products that are not at issue in the earlier-filed overarching conspiracy class actions, the majority of which Perrigo neither makes nor sells. The amended indirect reseller complaint alleges that Perrigo conspired in connection with its sales of Betamethasone Dipropionate lotion, Imiquimod cream, Desonide cream and ointment, and Hydrocortisone Valerate cream. The December 2020 indirect reseller complaint alleges that Perrigo conspired in connection with its sales of Adapalene, Ammonium Lactate, Bromocriptine Mesylate, Calcipotriene, Calcipotriene Betamethasone Dipropionate, Ciclopirox, Clindamycin Phosphate, Erythromycin, Fluticasone Propionate, Halobetasol Proprionate, Hydrocortisone Acetate, Methazolamide, Mometasone Furoate, Prochlorperazine Maleate, Promethazine HCL, Tacrolimus, and Triamcinolone Acetonide. The amended end payor complaint alleges that Perrigo conspired in connection with its sale of the following drugs: Adapalene, Ammonium Lactate, Betamethasone Dipropionate, Bromocriptine Mesylate, Calcipotriene Betamethasone Dipropionate, Ciclopirox, Clindamycin Phosphate, Erythromycin, Fenofibrate, Fluocinonide, Fluticasone Propionate, Halobetasol Proprionate, Hydrocortisone Acetate, Hydrocortisone Valerate, Imiquimod, Methazolamide, Mometasone Furoate, Permethrin, Prochlorperazine Maleate, Promethazine HCL, Tacrolimus, and Triamcinolone Acetonide. The amended direct purchaser complaint alleges that Perrigo conspired in connection with its sale of the following drugs: Adapalene, Ammonium Lactate, Betamethasone Dipropionate, Bromocriptine Mesylate, Ciclopirox, Clindamycin Phosphate, Fenofibrate, Fluocinonide, Halobetasol Proprionate, Hydrocortisone Valerate, Methazolamide, Permethrin, Prochlorperazine Maleate, Promethazine HCL, Tacrolimus, and Triamcinolone Acetonide. Perrigo has not yet responded to the second set of overarching conspiracy complaints, and responses are currently or will be stayed. Opt-Out Complaints On January 22, 2018, Perrigo was named a co-defendant along with 35 other manufacturers in a complaint filed by three supermarket chains alleging that defendants conspired to fix prices of 31 generic prescription pharmaceutical products starting in 2013. On December 21, 2018, an amended complaint was filed that adds additional products and allegations against a total of 39 manufacturers for 33 products. The only allegations specific to Perrigo relate to Clobetasol, Desonide, Econazole, Nystatin cream, and Nystatin ointment. Perrigo moved to dismiss this complaint on February 21, 2019. The motion was denied on August 15, 2019. The case is proceeding in discovery. On February 3, 2020, the plaintiffs requested leave to file a second amended complaint. The proposed amended complaint adds dozens of additional products and allegations to the original complaint. Perrigo is discussed in connection with allegations concerning an additional drug, Fenofibrate. Defendants opposed the motion for leave to file a second amended complaint and the court has yet to rule on the issue. On August 3, 2018, a large managed care organization filed a complaint alleging price-fixing and customer allocation concerning 17 different products among 27 manufacturers including Perrigo. The only allegations specific to Perrigo concern Clobetasol. Perrigo moved to dismiss this complaint on February 21, 2019. Plaintiff filed a second amended complaint in April 2019 that adds additional products and allegations. The amended allegations that concern Perrigo include: Clobetasol, Desonide, Econazole, and Nystatin. The motion to dismiss was denied on August 15, 2019. The case is proceeding in discovery. The same organization amended a different complaint that it had filed in October 2019, which did not name Perrigo, on December 15, 2020, adding Perrigo as a defendant and asserting new allegations of alleged antitrust violations involving Perrigo and dozens of other generic pharmaceutical manufacturers. The allegations relating to Perrigo concern: Adapalene, Betamethasone Dipropionate, Bromocriptine Mesylate, Ciclopirox, Clindamycin Phosphate, Fenofibrate, Fluocinonide, Halobetasol Proprionate, Hydrocortisone Valerate, Imiquimod, Permethrin, Prochlorperazine Maleate, and Triamcinolone Acetonide. The same organization filed a third complaint on December 15, 2020, naming Perrigo and dozens of other manufacturers alleging antitrust violations concerning generic pharmaceutical drugs. The allegations relating to Perrigo concern: Ammonium Lactate, Calcipotriene Betamethasone Dipropionate, Erythromycin, Fluticasone Propionate, Hydrocortisone Acetate, Methazolamide, Promethazine HCL, and Tacrolimus. On January 16, 2019, a health insurance carrier filed a complaint in the U.S. District Court for the District of Minnesota alleging a conspiracy to fix prices of 30 products among 30 defendants. The only allegations specific to Perrigo concerned Clobetasol gel, Desonide, Econazole, Nystatin cream, and Nystatin ointment. Perrigo has not yet responded to the complaint, and responses are currently stayed. On December 15, 2020, the complaint was amended to add additional defendants and claims. The new allegations that concern Perrigo relate to Fluocinonide. The same health insurance carrier filed a new complaint on December 15, 2020, naming Perrigo and dozens of other manufacturers alleging antitrust violations concerning generic pharmaceutical drugs. The allegations relating to Perrigo concern: Adapalene, Ammonium Lactate, Betamethasone Dipropionate, Bromocriptine Mesylate, Calcipotriene Betamethasone Dipropionate, Ciclopirox, Clindamycin Phosphate, Erythromycin, Fluticasone Propionate, Halobetasol Proprionate, Hydrocortisone Acetate, Hydrocortisone Valerate, Imiquimod, Methazolamide, Prochlorperazine Maleate, Promethazine HCL, Tacrolimus, and Triamcinolone Acetonide. On July 18, 2019, 87 health plans filed a Praecipe to Issue Writ of Summons in Pennsylvania state court to commence an action against 53 generic pharmaceutical manufacturers and 17 individuals, alleging antitrust violations concerning generic pharmaceutical drugs. While Perrigo was named as a defendant, no complaint has been filed and the precise allegations and products at issue have not been identified. Proceedings in the case, including the filing of a complaint, have been stayed at the request of the plaintiffs. On December 11, 2019, a health care service company filed a complaint against Perrigo and 38 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other multi-district litigation ("MDL") complaints naming Perrigo: Clobetasol, Desonide, Econazole, and Nystatin cream/ointment. Perrigo has not yet responded to the complaint, and responses are currently stayed. On December 15, 2020, the complaint was amended to add additional defendants and claims. The new allegations relating to Perrigo concern: Adapalene, Ammonium Lactate, Betamethasone Dipropionate, Bromocriptine Mesylate, Calcipotriene Betamethasone Dipropionate, Ciclopirox, Clindamycin Phosphate, Erythromycin, Fenofibrate, Fluocinonide, Fluticasone Propionate, Halobetasol Proprionate, Hydrocortisone Acetate, Hydrocortisone Valerate, Imiquimod, Methazolamide, Permethrin, Prochlorperazine Maleate, Promethazine HCL, Tacrolimus, and Triamcinolone Acetonide. On December 16, 2019, a Medicare Advantage claims recovery company filed a complaint against Perrigo and 39 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other MDL complaints naming Perrigo: Clobetasol, Desonide, and Econazole. The complaint was originally filed in the District of Connecticut but has been consolidated into the MDL. Perrigo has not yet had the opportunity to respond to the complaint, and responses are currently stayed. On December 15, 2020, the complaint was amended to add additional defendants and claims. The new allegations relating to Perrigo concern: Adapalene, Ammonium Lactate, Betamethasone Dipropionate, Bromocriptine Mesylate, Calcipotriene Betamethasone Dipropionate, Ciclopirox, Clindamycin Phosphate, Desoximetasone, Erythromycin, Fenofibrate, Fluocinonide, Fluticasone Propionate, Halobetasol Proprionate, Hydrocortisone Acetate, Hydrocortisone Valerate, Imiquimod, Methazolamide, Permethrin, Prochlorperazine Maleate, Promethazine HCL, Tacrolimus, and Triamcinolone Acetonide. On December 23, 2019, several counties in New York filed an amended complaint against Perrigo and 28 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other MDL complaints naming Perrigo: Clobetasol, Desonide, Econazole, and Nystatin. The complaint was originally filed in New York State court but was removed to federal court and has been consolidated into the MDL. Perrigo has not yet responded to the complaint, and responses are currently stayed. On December 15, 2020, the complaint was amended to add additional defendants and claims. The new allegations relating to Perrigo concern: Adapalene, Betamethasone Dipropionate, Bromocriptine Mesylate, Calcipotriene Betamethasone Dipropionate, Ciclopirox, Clindamycin Phosphate, Erythromycin, Fluticasone Propionate, Halobetasol Proprionate, Hydrocortisone Acetate, Hydrocortisone Valerate, Imiquimod, Methazolamide, Mometasone Furoate, Nystatin, Permethrin, Prochlorperazine Maleate, Promethazine HCL, Tacrolimus, and Triamcinolone Acetonide. On December 27, 2019, a healthcare management organization filed a complaint against Perrigo and 25 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other MDL complaints naming Perrigo: Clobetasol, Desonide, Econazole, and Nystatin. The complaint was filed originally in the Northern District of California but has been consolidated into the MDL. Perrigo has not yet responded to the complaint, and responses are currently stayed. On December 15, 2020, the complaint was amended to add additional defendants and claims. The new allegations relating to Perrigo concern: Adapalene, Ammonium Lactate, Betamethasone Dipropionate, Bromocriptine Mesylate, Calcipotriene Betamethasone Dipropionate, Ciclopirox, Clindamycin Phosphate, Erythromycin, Fenofibrate, Fluticasone Propionate, Halobetasol Proprionate, Hydrocortisone Acetate, Hydrocortisone Valerate, Imiquimod, Methazolamide, Permethrin, Prochlorperazine Maleate, Promethazine HCL, Tacrolimus, and Triamcinolone Acetonide. On March 1, 2020, Harris County of Texas filed a complaint against Perrigo and 29 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The products at issue that plaintiffs claim Perrigo manufacturers or sells include: Adapalene, Betamethasone Dipropionate, Ciclopirox, Clindamycin, Clobetasol, Desonide, Econazole, Ethinyl Estradiol/Levonorgestrel, Fenofibrate, Fluocinolone, Fluocinonide, Gentamicin, Glimepiride, Griseofulvin, Halobetasol Propionate, Hydrocortisone Valerate, Ketoconazole, Mupirocin, Nystatin, Olopatadine, Permethrin, Prednisone, Promethazine, Scopolamine, and Triamcinolone Acetonide. The complaint was originally filed in the Southern District of Texas but has been transferred to the MDL. Harris County amended its complaint in May 2020. Perrigo has not yet responded to the complaint, and responses are currently stayed. In May 2020, seven health plans filed a writ of summons in the Pennsylvania Court of Common Pleas in Philadelphia concerning an as-yet unfiled complaint against Perrigo, three dozen other manufacturers, and seventeen individuals, concerning alleged antitrust violations in connection with the pricing and sale of generic prescription pharmaceutical products. No complaint has yet been filed, so the precise allegations and products at issue are not yet clear. In addition, Defendants are in the process of being served, and proceedings in the case will likely be stayed. On June 9, 2020, a health insurance carrier filed a complaint against Perrigo and 25 other manufacturers alleging an overarching conspiracy to allocate customers and/or fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other MDL complaints naming Perrigo: Clobetasol, Desonide, Econazole, and Nystatin. The complaint was filed in the Eastern District of Pennsylvania and has been transferred into the MDL. Perrigo has not yet responded to the complaint, and responses are currently stayed. On December 15, 2020, the complaint was amended to add additional defendants and claims. The new allegations relating to Perrigo concern: Adapalene, Ammonium Lactate, Betamethasone Dipropionate, Bromocriptine Mesylate, Calcipotriene Betamethasone Dipropionate, Ciclopirox, Clindamycin Phosphate, Erythromycin, Fluocinonide, Fluticasone Propionate, Halobetasol Proprionate, Hydrocortisone Acetate, Hydrocortisone Valerate, Imiquimod, Methazolamide, Permethrin, Prochlorperazine Maleate, Promethazine HCL, Tacrolimus, and Triamcinolone Acetonide. On July 9, 2020, a drugstore chain filed a complaint against Perrigo and 39 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other MDL complaints naming Perrigo: Clobetasol, Desonide, Econazole, and Nystatin. Perrigo is also listed in connection with Fenofibrate. The complaint was filed in the Eastern District of Pennsylvania and will be transferred into the MDL. Perrigo has not yet responded to the complaint, and responses are currently stayed. On December 15, 2020, the complaint was amended to add additional defendants and claims. The new allegations relating to Perrigo concern: Adapalene, Ammonium Lactate, Betamethasone Dipropionate, Bromocriptine Mesylate, Calcipotriene Betamethasone Dipropionate, Ciclopirox, Clindamycin Phosphate, Erythromycin, Fenofibrate, Fluticasone Propionate, Halobetasol Proprionate, Hydrocortisone Acetate, Hydrocortisone Valerate, Imiquimod, Methazolamide, Permethrin, Prochlorperazine Maleate, Promethazine HCL, Tacrolimus, and Triamcinolone Acetonide. On August 27, 2020, Suffolk County of New York filed a complaint against Perrigo and 35 other manufacturers alleging an overarching conspiracy to allocate customers and/or fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other MDL complaints naming Perrigo: Clobetasol, Desonide, Econazole, and Nystatin cream and ointment. The other products at issue that plaintiffs claim Perrigo manufacturers or sells include: Adapalene gel, Albuterol, Benazepril HCTZ, Clotrimazole, Diclofenac Sodium, Fenofibrate, Fluocinonide, Glimepiride, Ketoconazole, Meprobamate, Imiquimod, Triamcinolone Acetonide, Erythromycin/Ethyl Solution, Betamethasone Valerate, Ciclopirox Olamine, Terconazole, Hydrocortisone Valerate, Fluticasone Propionate, Desoximetasone, Clindamycin Phosphate, Halobetasol Propionate, Hydrocortisone Acetate, Promethazine HCL, Mometasone Furoate, and Amiloride HCTZ. The complaint was filed in the Eastern District of New York and has been transferred into the MDL. Perrigo has not yet responded to the complaint, and responses are currently stayed. On September 4, 2020, a drug wholesaler and distributor filed a complaint against Perrigo and 39 other manufacturers alleging an overarching conspiracy to allocate customers and/or fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on Adapalene, Ammonium Lactate, Betamethasone Dipropionate, Bromocriptine Mesylate, Calcipotriene Betamethasone Dipropionate (Cal Beta Dip), Ciclopirox, Clindamycin, Clobetasol, Desonide, Econazole, Erythromycin, Fenofibrate, Fluticasone, Halobetasol, Hydrocortisone Acetate, Hydrocortisone Valerate, Imiquimod, Methazolamide, Mometasone furoate, Nystatin, Prochlorperazine, Promethazine HCL, Tacrolimus, and Triamcinolone Acetonide. The complaint was filed in the Eastern District of Pennsylvania and will be transferred into the MDL. Perrigo has not yet responded to the complaint, and responses are currently stayed. On December 11, 2020, a drugstore chain filed a complaint against Perrigo and 45 other manufacturers alleging an overarching conspiracy to allocate customers and/or fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on Adapalene, Ammonium Lactate, Betamethasone Dipropionate, Bromocriptine Mesylate, Calcipotriene Betamethasone Dipropionate (Cal Beta Dip), Ciclopirox, Clindamycin Phosphate, Clobetasol, Desonide, Econazole, Erythromycin, Fenofibrate, Fluticasone Propionate, Halobetasol, Hydrocortisone Acetate, Hydrocortisone Valerate, Imiquimod, Methazolamide, Nystatin, Permethrin, Prochlorperazine, Promethazine HCL, Tacrolimus, and Triamcinolone. The complaint was filed in the Eastern District of Pennsylvania and will be transferred into the MDL. On December 14, 2020, a supermarket chain filed a complaint against Perrigo and 45 other manufacturers (as well as certain individuals) alleging an overarching conspiracy to allocate customers and/or fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on Betamethasone Dipropionate, Bromocriptine Mesylate, Ciclopirox, Clindamycin Phosphate, Clobetasol, Desonide, Econazole, Fenofibrate, Halobetasol, Hydrocortisone Valerate, Nystatin, Permethrin, and Triamcinolone Acetonide. The complaint was filed in the Eastern District of Pennsylvania and will be transferred into the MDL. On December 15, 2020, a drugstore chain filed a complaint against Perrigo and 45 other manufacturers alleging an overarching conspiracy to allocate customers and/or fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The complaint lists 63 drugs that the chain purchased from Perrigo, but the product conspiracies allegedly involving Perrigo focus on Adapalene, Betamethasone Dipropionate, Bromocriptine Mesylate, Calcipotriene Betamethasone Dipropionate (Cal Beta Dip), Ciclopirox, Clindamycin Phosphate, Desonide, Econazole, Erythromycin, Fluocinonide, Fluticasone Propionate, Halobetasol, Hydrocortisone Acetate, Hydrocortisone Valerate, Imiquimod, Methazolamide, Nystatin, Prochlorperazine, Promethazine HCL, Tacrolimus, and Triamcinolone. The complaint was filed in the Eastern District of Pennsylvania and will be transferred into the MDL. On December 15, 2020, several counties in New York filed a complaint against Perrigo 45 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens products, most of which Perrigo neither makes nor sells. The allegations that concern Perrigo include: Adapalene, Betamethasone Dipropionate, Bromocriptine Mesylate, Calcipotriene Betamethasone Dipropionate, Ciclopirox, Clindamycin Phosphate, Erythromycin, Fluticasone Propionate, Halobetasol Proprionate, Hydrocortisone Acetate, Hydrocortisone Valerate, Imiquimod, Methazolamide, Mometasone Furoate, Nystatin, Permethrin, Prochlorperazine Maleate, Promethazine HCL, Tacrolimus, and Triamcinolone Acetonide. The complaint was originally filed in New York State court but will likely be removed to federal court and consolidated into the MDL. State Attorney General Complaint On June 10, 2020, the Connecticut Attorney General’s office filed a lawsuit on behalf of Connecticut and 50 other states and territories against Perrigo, 35 other generic pharmaceutical manufacturers, and certain individuals (including one former and one current Perrigo employee), alleging an overarching conspiracy to allocate customers and/or fix, raise or stabilize prices of eighty products. The allegations against Perrigo focus on the following drugs: Adapalene Cream, Ammonium Lactate cream and lotion, Betamethasone dipropionate lotion, Bromocriptine tablets, Calcipotriene Betamethasone Dipropionate (Cal Beta Dip) Ointment, Ciclopirox cream and solution, Clindamycin solution, Desonide cream and ointment, Econazole cream, Erythromycin base alcohol solution, Fluticasone cream and lotion, Halobetasol cream and ointment, Hydrocortisone Acetate suppositories, Hydrocortisone Valerate cream, Imiquimod cream, Methazolamide tablets, Nystatin ointment, Prochlorperazine suppositories, Promethazine HCL suppositories, Tacrolimus ointment, and Triamcinolone cream and ointment. The Complaint was filed in the District of Connecticut, but has been transferred into the MDL. Perrigo has not yet responded to the complaint, and responses are currently stayed. Canadian Class Action Complaint In June 2020, an end payor filed a class action in Ontario, Canada against Perrigo and 29 other manufacturers alleging an overarching conspiracy to allocate customers and/or fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other MDL complaints naming Perrigo: Clobetasol, Desonide, Econazole, and Nystatin. In December 2020, Plaintiffs amended their complaint to add additional claims based on the State AG complaint of June 2020. Perrigo has not yet responded to the complaint. At this stage, we cannot reasonably estimate the outcome of the liability if any, associated with the claims listed above. Securities Litigation In the United States (cases related to events in 2015-2017) On May 18, 2016, a shareholder filed a securities case against us and our former CEO, Joseph Papa, in the U.S. District Court for the District of New Jersey ( Roofers’ Pension Fund v. Papa, et al. ). The plaintiff purported to represent a class of shareholders for the period from April 21, 2015 through May 11, 2016, inclusive. The original complaint alleged violations of Securities Exchange Act sections 10(b) (and Rule 10b‑5) and 14(e) against both defendants and 20(a) control person liability against Mr. Papa. In general, the allegations concerned the actions taken by us and the former executive to defend against the unsolicited takeover bid by Mylan in the period from April 21, 2015 through November 13, 2015. The plaintiff also alleged that the defendants provided inadequate disclosure concerning alleged integration problems related to the Omega acquisition in the period from April 21, 2015 through May 11, 2016. On July 19, 2016, a different shareholder filed a securities class action against us and our former CEO, Joseph Papa, also in the District of New Jersey ( Wilson v. Papa, et al. ). The plaintiff purported to represent a class of persons who sold put options on our shares between April 21, 2015 and May 11, 2016. In general, the allegations and the claims were the same as those made in the original complaint filed in the Roofers' Pension Fund case described above. On December 8, 2016, the court consolidated the Roofers' Pension Fund case and the Wilson case under the Roofers' Pension Fund case number. In February 2017, the court selected the lead plaintiffs for the consolidated case and the lead counsel to the putative class. In March 2017, the court entered a scheduling order. On June 21, 2017, the court-appointed lead plaintiffs filed an amended complaint that superseded the original complaints in the Roofers’ Pension Fund case and the Wilson case. In the amended complaint, the lead plaintiffs seek to represent three classes of shareholders: (i) shareholders who purchased shares during the period from April 21, 2015 through May 3, 2017 on the U.S. exchanges; (ii) shareholders who purchased shares during the same period on the Tel Aviv exchange; and (iii) shareholders who owned shares on November 12, 2015 and held such stock through at least 8:00 a.m. on November 13, 2015 (the final day of the Mylan tender offer) regardless of whether the shareholders tendered their shares. The amended complaint names as defendants us and 11 current or former directors and officers of Perrigo (Mses. Judy Brown, Laurie Brlas, Jacqualyn Fouse, Ellen Hoffing, and Messrs. Joe Papa, Marc Coucke, Gary Cohen, Michael Jandernoa, Gerald Kunkle, Herman Morris, and Donal O’Connor). The amended complaint alleges violations of Securities Exchange Act sections 10(b) (and Rule 10b‑5) and 14(e) against all defendants and 20(a) control person liability against the 11 individuals. In general, the allegations concern the actions taken by us and the former executives to defend against the unsolicited takeover bid by Mylan in the period from April 21, 2015 through November 13, 2015 and the allegedly inadequate disclosure throughout the entire class period related to purported integration problems related to the Omega acquisition, alleges incorrect reporting of organic growth at the Company and at Omega, alleges price fixing activities with respect to six generic prescription pharmaceuticals, and alleg |
Collaboration Agreements And Ot
Collaboration Agreements And Other Contractual Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
Collaboration Agreements [Abstract] | |
Collaberation Agreements and Other Contractual Arrangements | COLLABORATION AGREEMENTS AND OTHER CONTRACTUAL ARRANGEMENTS Terms of our various collaboration agreements may require us to make or receive milestone payments upon the achievement of certain product research and development objectives and pay or receive royalties on the future sale, if any, of commercial products resulting from the collaboration. Milestone and up-front payments made, and other research and development costs or reimbursements related to collaboration agreements, are generally recorded in research and development expense if the payments relate to drug candidates that have not yet received regulatory approval. Milestone and up-front payments made related to approved drugs will generally be capitalized and amortized to cost of goods sold over the economic life of the product. Royalties received are generally reflected as revenue, and royalties paid are generally reflected as cost of goods sold. We enter into a number of collaboration agreements in the ordinary course of business. The following is a brief description of agreements with notable potential milestone or purchase obligations. Development Agreements On May 15, 2015, we entered into a contractual arrangement with a third party that specializes in research and development and obtaining approval for various drug candidates to develop specific products. We entered into additional contractual arrangements in 2016 with the same counterparty. If the products receive FDA approval, we are required to acquire the ANDAs at pre-determined multiples of the associated development costs. If we acquire approved products under these arrangements, we will capitalize these as intangible assets and amortize them over their useful lives. During the three months ended September 29, 2018, we paid $30.4 million to acquire the ANDA for a generic topical cream. During the three months ended June 29, 2019, we paid $15.7 million to acquire the ANDA for a generic product used to relieve pain. During the three months ended September 28, 2019, we paid $49.0 million for a generic gel product. During the three months ended December 31, 2020, we bought a generic topical gel for $16.4 million (refer to Note 3 ). The contractual future purchase obligations for other products in development by the third party as of December 31, 2020 totaled an estimated $44.0 million. Purchase obligations could be higher or lower than the estimated contractual amounts based on the third party’s actual development costs to obtain regulatory approval. Development-Stage Rx Products On May 1, 2015, we entered into a development agreement with a clinical stage biotechnology company for the development of two specialty pharmaceutical products. We paid $18.0 million for an option to acquire the two products, which we reported in research and development expense. On March 1, 2016, we exercised the purchase option to acquire both products, which obligated us to make additional potential milestone payments of up to $30.0 million in the event of regulatory approval and certain sales milestones. We were also obligated to make royalty payments over periods ranging from seven years to ten years from the launch of each product. On December 20, 2017, we completed the sale of one of the Development-Stage Rx Products, which reduced our potential milestone payment obligations from $30.0 million to $17.5 million, plus royalties. On November 30, 2019, we terminated our remaining potential payment obligations by transferring the remaining Development-Stage Rx product back to the clinical stage biotechnology company with which we had the original development agreement. Generic Injectable Products In December 2017, we entered into a collaboration agreement with a generic pharmaceutical development company, pursuant to which the parties will collaborate in the ongoing development and commercialization of a generic injectable product. We will provide assistance, including preparing and filing the product ANDA, and be responsible for commercializing the product. As part of the agreement, we paid a $2.5 million milestone payment on the effective date of the agreement, and we subsequently paid a milestone of $0.7 million. The milestones paid to date were reported in research and development expense on the Consolidated Financial Statements. We will make additional payments if regulatory approval is obtained and certain other development milestones are achieved. As of December 31, 2020, the remaining contingent milestone payments could total $13.8 million in the aggregate. There can be no assurance that any such products will be approved by the FDA on the anticipated schedule or at all. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring Charges [Abstract] | |
Restructuring charges | RESTRUCTURING CHARGES We periodically take action to reduce redundant expenses and improve operating efficiencies. Restructuring activity includes severance, lease exit costs, and related consulting fees. The following reflects our restructuring activity (in millions): Balance at December 31, 2017 $ 21.4 Additional charges 21.0 Payments (18.8) Non-cash adjustments 0.4 Balance at December 31, 2018 24.0 Additional charges 25.3 Payments (29.4) Non-cash adjustments (0.3) Balance at December 31, 2019 19.6 Additional charges 3.5 Payments (14.3) Non-cash adjustments 0.7 Balance at December 31, 2020 $ 9.5 The charges incurred during the year ended December 31, 2020, were primarily associated with actions taken to streamline the organization. The charges incurred during the year ended December 31, 2019, were primarily associated with our strategic transformation initiative and the reorganization of our executive management team. The charges incurred during the year ended December 31, 2018 were primarily associated with actions taken to streamline our organization, as well as lease exit costs. Of the amount recorded during the year ended December 31, 2020, $1.4 million related to our CSCI segment, due primarily to various integration initiatives, and $1.0 million was not allocated to a segment and was primarily related to our strategic transformation initiative. Of the amount recorded during the year ended December 31, 2019, $12.2 million related to our CSCI segment, due primarily to the sales force reorganization in France, and $10.1 million was not allocated to a segment and was primarily related to our strategic transformation initiative and the reorganization of our executive management team. Of the amount recorded during the year ended December 31, 2018, $17.4 million related to our CSCI segment. There were no other material restructuring programs in any of the periods presented. All charges are recorded in Restructuring expense on the Consolidated Financial Statements. The remaining $9.5 million liability for employee severance benefits is expected to be paid within the next year. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2020 | |
Segments and Geographic Information [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION Our segment reporting structure is consistent with the way our management makes operating decisions, allocates resources and manages the growth and profitability of the business (refer to Note 1 ). Below is a summary of our results by reporting segment (in millions): CSCA CSCI RX Unallocated Total Year Ended December 31, 2020 Net sales $ 2,693.0 $ 1,395.2 $ 975.1 $ — $ 5,063.3 Operating income (loss) $ 472.0 $ 32.3 $ (177.7) $ (211.2) $ 115.4 Operating income % 17.5 % 2.3 % (18.2) % — % 2.3 % Total assets $ 4,443.0 $ 4,872.4 $ 2,173.0 $ — $ 11,488.4 Capital expenditures $ 126.0 $ 28.8 $ 15.6 $ — $ 170.4 Property, plant and equipment, net $ 675.7 $ 163.5 $ 156.8 $ — $ 996.0 Depreciation/amortization $ 103.6 $ 177.8 $ 103.4 $ — $ 384.8 Change in financial assets $ — $ — $ — $ 96.4 $ 96.4 Year Ended December 31, 2019 Net sales $ 2,487.7 $ 1,382.2 $ 967.5 $ — $ 4,837.4 Operating income (loss) $ 414.0 $ 19.6 $ 2.6 $ (231.4) $ 204.8 Operating income % 16.6 % 1.4 % 0.3 % — % 4.2 % Total assets $ 3,990.2 $ 4,682.7 $ 2,628.5 $ — $ 11,301.4 Capital expenditures $ 98.4 $ 18.8 $ 20.5 $ — $ 137.7 Property, plant and equipment, net $ 599.8 $ 149.9 $ 153.1 $ — $ 902.8 Depreciation/amortization $ 97.4 $ 194.3 $ 104.8 $ — $ 396.5 Change in financial assets $ — $ — $ — $ (22.1) $ (22.1) Year Ended December 31, 2018 Net sales $ 2,411.6 $ 1,399.3 $ 920.8 $ — $ 4,731.7 Operating income (loss) $ 174.4 $ 6.8 $ 214.6 $ (159.3) $ 236.5 Operating income % 7.2 % 0.5 % 23.3 % — % 5.0 % Total assets $ 3,571.7 $ 4,613.0 $ 2,798.7 $ — $ 10,983.4 Capital expenditures $ 65.0 $ 19.1 $ 18.6 $ — $ 102.7 Property, plant and equipment, net $ 530.3 $ 154.8 $ 144.0 $ — $ 829.1 Depreciation/amortization $ 104.8 $ 219.2 $ 99.6 $ — $ 423.6 Change in financial assets $ — $ — $ — $ (188.7) $ (188.7) The net book value of Property, plant and equipment, net by location was as follows (in millions): Year Ended December 31, December 31, U.S. $ 678.2 $ 614.5 Europe (1) 169.7 146.8 Israel 90.7 86.1 All other countries 57.4 55.4 $ 996.0 $ 902.8 (1) Includes Ireland Property, plant and equipment, net of $20.3 million and $9.3 million, for the years ended December 31, 2020 and December 31, 2019, respectively. Sales to Walmart as a percentage of Consolidated Net sales Year Ended December 31, December 31, 2019 December 31, 13.3% 13.0% 12.8% |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly financial data (unaudited) | QUARTERLY FINANCIAL DATA (unaudited) The following table presents unaudited quarterly consolidated operating results for each of our last eight quarters. The information below has been prepared on a basis consistent with our audited consolidated financial statements (in millions, except per share amounts): First Quarter Second Quarter (2) Third Quarter (3) Fourth Quarter (4) Year Ended December 31, 2020 Net sales $ 1,341.0 $ 1,219.1 $ 1,213.7 $ 1,289.5 Gross profit $ 483.2 $ 434.7 $ 428.1 $ 469.2 Change in financial assets $ (1.6) $ (2.1) $ (22.2) $ 122.3 Net income (loss) $ 106.4 $ 60.6 $ (154.6) $ (175.0) Earnings (loss) per share (1) : Basic $ 0.78 $ 0.44 $ (1.13) $ (1.29) Diluted $ 0.77 $ 0.44 $ (1.13) $ (1.29) Weighted average shares outstanding: Basic 136.2 136.4 136.5 135.4 Diluted 137.3 137.5 136.5 135.4 (1) The sum of individual per share amounts may not equal due to rounding. (2) Includes Rosemont Pharmaceuticals business pre-tax loss of $21.1 million. (3) Includes impairment charges of $202.4 million, change in financial assets of $22.2 million and loss on early debt extinguishment of $20.0 million. (4) Includes change in financial assets of $122.3 million and impairment charges of $144.4 million. First Quarter (2) Second Quarter (3) Third Quarter (4) Fourth Quarter (5) Year Ended December 31, 2019 Net sales $ 1,174.5 $ 1,149.0 $ 1,191.1 $ 1,322.8 Gross profit $ 448.8 $ 430.8 $ 412.8 $ 480.9 Change in financial assets $ (10.4) $ (5.5) $ (2.6) $ (3.6) Net income (loss) $ 63.9 $ 9.0 $ 92.2 $ (19.0) Earnings (loss) per share (1) : Basic $ 0.47 $ 0.07 $ 0.68 $ (0.14) Diluted $ 0.47 $ 0.07 $ 0.67 $ (0.14) Weighted average shares outstanding: Basic 135.9 136.0 136.0 136.1 Diluted 136.2 136.5 136.8 137.0 (1) The sum of individual per share amounts may not equal due to rounding. (2) Includes change in financial assets of $10.4 million. (3) Includes impairment charges of $27.8 million and restructuring charges and other termination benefits of $12.2 million. (4) Includes animal health divestiture pre-tax gain of $71.7 million, Ranitidine market withdrawal charges of $18.4 million, acquisition-related charges and contingent consideration adjustments of $18.1 million, and impairment charges of $10.9 million. (5) Includes impairment charges of $141.6 million. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent events | SUBSEQUENT EVENTS On March 1, 2021, we announced a definitive agreement to sell our generic RX Pharmaceuticals business ("RX Business") to Altaris Capital Partners, LLC ("Altaris") for total consideration of $1.55 billion, including $1.5 billion in cash. As part of the consideration, Altaris will also assume more than $50.0 million in potential R&D milestone payments and contingent purchase obligations with third-party Rx partners. The transaction is subject to antitrust and other customary closing conditions and is expected to close by the end of the third quarter of 2021. The RX Business will be classified as discontinued operations starting in the first quarter of 2021. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS PERRIGO COMPANY PLC (in millions) Year Ended December 31, December 31, December 31, Allowance for doubtful accounts Balance at beginning of period $ 6.7 $ 6.4 $ 6.2 Net bad debt expenses (1) 2.9 0.8 — Additions/(deductions) (2) (2.0) (0.5) 0.2 Balance at end of period $ 7.6 $ 6.7 $ 6.4 (1) Includes effects of changes in foreign exchange rates. (2) Uncollectible accounts written off, net of recoveries. Also includes effects of changes in foreign exchange rates. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our fiscal year begins on January 1 and ends on December 31 of each year. We end our quarterly accounting periods on the Saturday closest to the end of the calendar quarter, with the fourth quarter ending on December 31 of each year. |
Segment Reporting | Segment Reporting Our reporting and operating segments are as follows: • Consumer Self-Care Americas ("CSCA") comprises our consumer self-care business (OTC, infant formula, and oral self-care categories, our divested animal health category, and contract manufacturing) in the U.S., Mexico and Canada. • Consumer Self-Care International ("CSCI") comprises our consumer self-care business primarily branded in Europe and Australia, our store brand business in the United Kingdom and parts of Europe and Asia, and our divested liquid licensed products business in the United Kingdom. • Prescription Pharmaceuticals ("RX") comprises our prescription pharmaceuticals business in the U.S., which are predominantly generics, and our pharmaceuticals and diagnostic businesses in Israel. Our segments reflect the way in which our management makes operating decisions, allocates resources and manages the growth and profitability of the Company. Financial information related to our business segments and geographic locations can be found in Note 2 and Note 20 |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our accounts and accounts of all majority-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Unconsolidated Variable Interest Entity | Unconsolidated Variable Interest Entities We have research and development ("R&D") arrangements with certain biotechnology companies that we determined to be variable interest entities ("VIEs"). We did not consolidate the VIEs in our financial statements because we lack the power to direct the activities that most significantly impact their economic performance and thus are not considered the primary beneficiaries of these entities. These arrangements provide us with certain rights and obligations to purchase product candidates from the VIEs, dependent upon the outcome of the development activities. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions, which affect the reported earnings, financial position and various disclosures. Although the estimates are considered reasonable, actual results could differ from the estimates. |
Non-U.S. Operations | Non-U.S. Operations We translate our non-U.S. dollar-denominated operations’ assets and liabilities into U.S. dollars at current rates of exchange as of the balance sheet date and income and expense items at the average exchange rate for the reporting period. Translation adjustments resulting from exchange rate fluctuations are recorded in the cumulative translation account, a component of Accumulated other comprehensive income (loss) ("AOCI"). Gains or losses from foreign currency transactions are included in Other (income) expense, net. |
Revenue | Revenue Product Revenue We generally recognize product revenue for our contract performance obligations at a point in time, typically upon shipment or delivery of products to customers. For point in time customers for which control transfers on delivery to the customer due to free on board destination terms (“FOB”), an adjustment is recorded to defer revenue recognition over an estimate of days until control transfers at the point of delivery. Where we recognize revenue at a point in time, the transfer of title is the primary indicator that control has transferred. In other limited instances, primarily relating to those contracts that relate to contract manufacturing performed for our customers and certain store branded products, control transfers as the product is manufactured. Control is deemed to transfer over time for these contracts as the product does not have an alternative use and we have a contractual right to payment for performance completed to date. Revenue for contract manufacturing contracts is recognized over the transfer period using an input method that measures progress towards completion of the performance obligation as costs are incurred. For store branded product revenue recognized over time, an output method is used to recognize revenue when production of a unit is completed because product customization occurs when the product is packaged as a finished good under the store brand label of the customer. Net product sales include estimates of variable consideration for which accruals and allowances are established. Variable consideration for product sales consists primarily of chargebacks, rebates, and administrative fees and other incentive programs recorded on the Consolidated Balance Sheets as Accrued customer programs, and sales returns and shelf stock allowances recorded on the Consolidated Balance Sheets as a reduction to Accounts receivable. Where appropriate, these estimates take into consideration a range of possible outcomes in which relevant factors, such as historical experience, current contractual and statutory requirements, specific known market events and trends, industry data and forecasted customer buying and payment patterns, are either probability weighted to derive an estimate of expected value or the estimate reflects the single most likely outcome. Overall, these reserves reflect the best estimates of the amount of consideration to which we are entitled based on the terms of the contract. Actual amounts of consideration ultimately received may differ from our estimates. If actual results in the future vary from the estimates, these estimates are adjusted, which would affect revenue and earnings in the period such variances become known. Accrued customer programs and allowances were $458.7 million and $483.7 million at December 31, 2020 and December 31, 2019, respectively. Other Revenue Policies We receive payments from our customers based on billing schedules established in each contract. Amounts are recorded as accounts receivable when our right to consideration is unconditional. In most cases, the timing of the unconditional right to payment aligns with shipment or delivery of the product and the recognition of revenue; however, for those customers where revenue is recognized at a time prior to shipment or delivery due to over time revenue recognition, a contract asset is recorded and is reclassified to accounts receivable when it becomes unconditional under the contract upon shipment or delivery to the customer. Our performance obligations are generally expected to be fulfilled in less than one year. Therefore, we do not provide quantitative information about remaining performance obligations. We do not assess whether a contract has a significant financing component if the expectation at contract inception is such that the period between payment by the customer and the transfer of the promised products to the customer will be one year or less, which is the case with substantially all customers. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenue. Shipping and handling costs billed to customers are included in Net sales. Conversely, shipping and handling expenses we incur are included in Cost of sales. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist primarily of demand deposits and other short-term investments with maturities of three months or less at the date of purchase. The carrying amount of cash and cash equivalents approximates its fair value. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in first-out method. Costs include material and conversion costs. Inventory related to R&D is expensed when it is determined the materials have no alternative future use. We maintain reserves for estimated obsolete or unmarketable inventory based on the difference between the cost of the inventory and its estimated net realizable value. In estimating the reserves, management considers factors such as excess or slow-moving inventories, product expiration dating, products on quality hold, current and future customer demand and market conditions. Changes in these conditions may result in additional reserves (refer to Note 6 ). |
Investments | Investments Fair Value Method Investments Equity investments in which we own less than a 20% interest and cannot exert significant influence are recorded at fair value with unrealized gains and losses included in net income. For equity investments without readily determinable fair values, we may use the Net Asset Value ("NAV") per share as a practical expedient to measure the fair value, if eligible. If the NAV practical expedient cannot be applied, we may elect to use a measurement alternative until the investment’s fair value becomes readily determinable. Under the alternative method, the equity investments are accounted for at cost, less any impairment, plus or minus changes resulting from observable price changes in an orderly transaction for an identical or similar investment of the same issuer. Equity Method Investments The equity method of accounting is used for unconsolidated entities over which we have significant influence; generally, this represents ownership interests of at least 20% and not more than 50%. Under the equity method of accounting, we record the investments at carrying value and adjust for a proportionate share of the profits and losses of these entities each period. We evaluate our equity method investments for recoverability. If we determine that a loss in the value of an investment is other than temporary, the investment is written down to its estimated fair value. Evaluations of recoverability are based primarily on projected cash flows. For more information on our investments, refer to Note 8 . |
Derivatives Instruments | Derivative Instruments We recognize the entire change in the fair value of the effective portion of derivatives designated as: • Cash flow hedges in Other Comprehensive Income ("OCI"). The amounts recorded in OCI will subsequently be reclassified to earnings in the same line item on the Consolidated Statements of Operations as impacted by the hedged item when the hedged item affects earnings; • Fair value hedges in the same line item on the Consolidated Statements of Operations that is used to present the earnings effect of the hedged item; and • Net investment hedges in OCI classified as a currency translation adjustment. When the net investment in foreign operations is sold or substantially liquidates, the amounts recorded in AOCI are reclassified to earnings. We exclude option premiums, forward points, and cross-currency basis spread from our assessment of hedge effectiveness, as allowable excluded components from certain of our cash flow and net investment hedges. We have elected to recognize the initial value of the excluded component on a straight-line basis over the life of the derivative instrument, within the same line item on the Consolidated Statements of Operations that is used to present the earnings effect of the hedged item. We record derivative instruments on the balance sheet on a gross basis as either an asset or liability measured at fair value (refer to Note 7 ). Additionally, changes in a derivative's fair value, which are measured at the end of each period, are recognized in earnings unless a derivative can be designated in a qualifying hedging relationship. All realized and unrealized gains and losses are included within operating activities in the Consolidated Statements of Cash Flows. Designated derivatives meet hedge accounting criteria, which means the fair value of the hedge is recorded in shareholders’ equity as a component of OCI, net of tax. The deferred gains and losses are recognized in income in the period in which the hedged item affects earnings. All of our designated derivatives are assessed for hedge effectiveness quarterly. We also have economic non-designated derivatives that do not meet hedge accounting criteria. These derivative instruments are adjusted to current market value at the end of each period through earnings. Gains or losses on these instruments are offset substantially by the remeasurement adjustment on the hedged item. We are exposed to credit loss in the event of nonperformance by the counterparties on derivative contracts. It is our policy to manage our credit risk on these transactions by dealing only with financial institutions having a long-term credit rating of "Aa3" or better and by distributing the contracts among several financial institutions to diversify credit concentration risk. Should a counterparty default, our maximum exposure to loss is the asset balance of the instrument. The maximum term of our forward currency exchange contracts is 60 months. We enter into certain derivative financial instruments, when available on a cost-effective basis, to mitigate our risk associated with changes in interest rates and foreign currency exchange rates as follows: Interest rate risk management - We are exposed to the impact of interest rate changes through our cash investments and borrowings. We utilize a variety of strategies to manage the impact of changes in interest rates including using a mix of debt maturities along with both fixed-rate and variable-rate debt. In addition, we may enter into treasury-lock agreements and interest rate swap agreements on certain investing and borrowing transactions to manage our exposure to interest rate changes and our overall cost of borrowing. Foreign currency exchange risk management - We conduct business in several major currencies other than the U.S. dollar and are subject to risks associated with changing foreign exchange rates. Our objective is to reduce cash flow volatility associated with foreign exchange rate changes on a consolidated basis to allow management to focus its attention on business operations. Accordingly, we enter into various contracts that change in value as foreign exchange rates change to protect the value of existing foreign currency assets and liabilities, commitments, anticipated foreign currency sales and expenses, and net investments in foreign operations. All derivative instruments are managed on a consolidated basis to efficiently net exposures and thus take advantage of any natural offsets. Gains and losses related to the derivative instruments are expected to be offset largely by gains and losses on the original underlying asset or liability. We do not use derivative financial instruments for speculative purposes. The impact of gains and losses on foreign exchange contracts not designated as hedging instruments related to changes in the fair value of assets and liabilities denominated in foreign currencies are generally offset by net foreign exchange gains and losses, which are also included on the Consolidated Statements of Operations in Other (income) expense, net for all periods presented. When we enter into foreign exchange contracts not designated as hedging instruments to mitigate the impact of exchange rate volatility in the translation of foreign earnings, gains and losses will generally be offset by fluctuations in the U.S. dollar-translated amounts of each Income Statement account in current and/or future periods. For more information on our derivatives, refer to Note 9 . |
Property, Plant and Equipment, Net | Property, Plant and Equipment, net Property, plant and equipment, net is recorded at cost and is depreciated using the straight-line method. Useful lives for financial reporting range from 3 to 20 years for machinery and equipment and 10 to 45 years for buildings. We capitalize certain computer software and development costs, included in machinery and equipment, when incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are amortized over the estimated useful lives of the software, which range from 3 to 10 years. Maintenance and repair costs are charged to earnings, while expenditures that increase asset lives are capitalized. Depreciation expense includes amortization of assets recorded under finance leases and totaled $90.1 million, $91.0 million, and $90.0 million for the years ended December 31, 2020 , |
Leases | Leases We adopted ASU 2016-02, Leases, as of January 1, 2019, using the modified retrospective transition approach, with a cumulative-effect adjustment to the opening balance of retained earnings as of the effective date. The financial results reported in periods prior to 2019 are unchanged. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed us to carry forward the historical lease classification. Adoption of the new standard resulted in additional operating lease liabilities and lease assets, including the transition of existing capital lease liabilities and lease assets to finance classification, of approximately $166.5 million and $164.0 million, respectively, as of January 1, 2019. Upon adoption, there were two primary reasons for the differences between the lease assets and liabilities recognized: (1) the transition requirement to reduce the operating lease asset carrying value by the deferred lease liabilities that existed prior to the adoption date; and (2) the transition of capital leases to finance leases which occurred at their existing carrying values. Additionally, historical build-to-suit assets and liabilities were removed on transition and recorded as an adjustment to retained earnings, net of deferred tax impact. The standard did not materially impact our consolidated net income or cash flow classification. We lease certain office buildings, warehouse facilities, vehicles, and plant, office, and computer equipment. Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We evaluate arrangements at inception to determine if lease components are included. An arrangement includes a lease component if it identifies an asset and we have control over the asset. For new leases beginning January 1, 2019 or later, we have elected not to separate lease components from the non-lease components included in an arrangement when measuring the leased asset and leased liability for all asset classes. Lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognize lease expense for leases on a straight-line basis over the lease term. We apply the portfolio approach to certain groups of computer equipment and vehicle leases when the term, classification, and asset type are identical. The discount rate selected is the incremental borrowing rate we would obtain for a secured financing of the lease asset over a similar term. Many of our leases include one or more options to extend the lease term. Certain leases also include options to terminate early or purchase the leased property, all of which are executed at our sole discretion. Optional periods may be included in the lease term and measured as part of the lease asset and lease liability if we are reasonably certain to exercise our right to use the leased asset during the optional periods. We generally consider renewal options to be reasonably certain of execution and included in the lease term when significant leasehold improvements have been made by us to the leased assets. The depreciable lives of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include contingent rental payments based on per unit usage over contractual levels (e.g., miles driven or machine hours used) and others include rental payments adjusted periodically for market reviews or inflationary indexes. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. For more information on our leases, refer to Note 10 . |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill represents amounts paid for an acquisition in excess of the fair value of net assets acquired. Goodwill is tested for impairment annually on the first day of our fourth quarter, or more frequently if changes in circumstances or the occurrence of events suggest an impairment exists. The test for impairment requires us to make several estimates about fair value, most of which are based on projected future cash flows and market valuation multiples. The estimates associated with the goodwill impairment tests are considered critical due to the judgments required in determining fair value amounts, including projected discounted future cash flows. Changes in these estimates may result in the recognition of an impairment loss. We have five reporting units that are evaluated for impairment. Intangible Assets We have intangible assets that we have acquired through various business acquisitions and include trademarks, trade names and brands, in-process research and development ("IPR&D"), developed product technology/formulation and product rights, distribution and license agreements, customer relationships and distribution networks, and non-compete agreements. The assets are typically valued initially using the relief from royalty method or the multi-period excess earnings method ("MPEEM"). We test indefinite-lived trademarks, trade names, and brands for impairment annually, or more frequently if changes in circumstances or the occurrence of events suggest impairment exists, by comparing the carrying value of the assets to their estimated fair values. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value. Definite-lived intangible assets consist of a portfolio of developed product technology/formulation and product rights, distribution and license agreements, customer relationships, non-compete agreements, and certain trademarks, trade names, and brands. The assets are amortized on either a straight-line basis or proportionately to the benefits derived from those relationships or agreements. Useful lives vary by asset type and are determined based on the period over which the intangible asset is expected to contribute directly or indirectly to our future cash flows. We also review all other long-lived assets that have finite lives and that are not held for sale for impairment when indicators of impairment are evident by comparing the carrying value of the assets to their estimated future undiscounted cash flows. IPR&D assets are recognized at fair value and are classified as indefinite-lived assets until the successful completion or abandonment of the associated R&D efforts. If the associated R&D is completed, the IPR&D asset becomes a definite-lived intangible asset and is amortized over the asset's assigned useful life. If it is abandoned, an impairment loss is recorded. Goodwill, indefinite-lived intangible asset, and definite-lived intangible asset impairments are recorded in Impairment charges on the Consolidated Statement of Operations. See Note 4 for further information on our goodwill and intangible assets. |
Share-Based Awards | Share-Based Awards We measure and record compensation expense for all share-based awards based on estimated grant date fair values. For awards with only service conditions that are based on graded vesting schedules, we recognize the compensation expense on a straight-line basis over the entire award. Forfeitures on share-based awards are recognized in compensation expense in the period in which they occur. We estimate the fair value of stock option awards granted based on the Black-Scholes option pricing model, which requires the use of subjective and complex assumptions. These assumptions include estimating the expected term that awards granted are expected to be outstanding, the expected volatility of our stock price for a period commensurate with the expected term of the related options, and the risk-free rate with a maturity closest to the expected term of the related awards. Restricted stock and restricted stock units are valued based on our stock price on the day the awards are granted. The estimated fair value of outstanding Relative Total Shareholder Return performance units (“RTSR”) is based on the grant date fair value of RTSR awards using a Monte Carlo simulation, which includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends (refer to Note 13 ). |
Income Taxes | Income Taxes We record deferred income tax assets and liabilities on the balance sheet as noncurrent based upon the difference between the financial reporting and the tax reporting basis of assets and liabilities using the enacted tax rates. To the extent that available evidence raises doubt about the realization of a deferred income tax asset, a valuation allowance is established. We have provided for income taxes for undistributed earnings of certain foreign subsidiaries which have not been deemed to be permanently reinvested. For those foreign subsidiaries we have deemed to be permanently reinvested, we have provided no further tax provision. We record reserves for uncertain tax positions to the extent it is more likely than not the tax return position will be sustained on audit, based on the technical merits of the position. Periodic changes in reserves for uncertain tax positions are reflected in the provision for income taxes. We include interest and penalties attributable to uncertain tax positions and income taxes as a component of our income tax provision (refer to Note 15 |
Legal Contingencies | Legal Contingencies We are involved in product liability, patent, commercial, regulatory and other legal proceedings that arise in the normal course of business. We record a liability when a loss is considered probable and the amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range and no amount within that range is a better estimate, the minimum amount in the range is accrued. If a loss is not probable or a probable loss cannot be reasonably estimated, no liability is recorded. We have established reserves for certain of our legal matters (refer to Note 17 ). We do not incorporate insurance recoveries into our reserves for legal contingencies. We separately record receivables for amounts due under insurance policies when we consider the realization of recoveries for claims to be probable, which may be different than the timing in which we establish the loss reserves. |
Research and Development | Research and Development All R&D costs, including payments related to products under development and research consulting agreements, are expensed as incurred. We incur costs throughout the development cycle, including costs for research, clinical trials, manufacturing validation, and other pre-commercialization approval costs that are included in R&D. We may continue to make non-refundable payments to third parties for new technologies and for R&D work that has been completed. These payments may be expensed at the time of payment depending on the nature of the payment made. R&D expense was $177.7 million, $187.4 million, and $218.6 million, for the years ended December 31, 2020, December 31, 2019 and December 31, 2018, respectively. During the year ended December 31, 2018, we paid an up-front license fee of $50.0 million allowing us to develop and commercialize an OTC version of Nasonex-branded products (refer to Note 3 ). We actively collaborate with other pharmaceutical companies to develop, manufacture and market certain products or groups of products. We may choose to enter into these types of agreements to, among other things, leverage our or others’ scientific research and development expertise or utilize our extensive marketing and distribution resources. Our policy on accounting for costs of strategic collaborations determines the timing of the recognition of certain development costs. In addition, this policy determines whether the cost is classified as a development expense or capitalized as an asset. Management is required to form judgments with respect to the commercial status of such products in determining whether development costs meet the criteria for immediate expense or capitalization. For example, when we acquire certain products for which there is already an Abbreviated New Drug Application ("ANDA") or New Drug Application ("NDA") approval directly related to the product, and there is net realizable value based on projected sales for these products, we capitalize the amount paid as an intangible asset. If we acquire product rights that are in the development phase and as to which we have no assurance that the third party will successfully complete its development milestones, we expense the amount paid (refer to Note 18 ). |
Advertising Costs | Advertising Costs |
Earnings per Share (EPS) | Earnings per Share ("EPS") Basic EPS is calculated using the weighted-average number of ordinary shares outstanding during each period. It excludes both the dilutive effects of additional common shares that would have been outstanding if the shares issued under stock incentive plans had been exercised and the dilutive effect of restricted share units, to the extent those shares and units have not vested. Diluted EPS is calculated including the effects of shares and potential shares issued under stock incentive plans, following the treasury stock method. |
Defined Benefit Plans | Defined Benefit Plans We operate a number of defined benefit plans for employees globally. Two significant assumptions, the discount rate and the expected rate of return on plan assets, are important elements of expense and liability measurement. We evaluate these assumptions annually. Other assumptions involve employee demographic factors, such as retirement patterns, mortality, turnover, and the rate of compensation increase. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The defined benefit obligation is calculated periodically by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of either high quality corporate bonds or long term government bonds depending on the depth and liquidity of the high quality corporate bond market in the different geographies where we have pension liabilities. The bonds are denominated in the currency in which the benefits will be paid and have terms to maturity approximating the terms of the related pension liability. Actuarial gains and losses are recognized on the Consolidated Statement of Operations using the corridor method. Under the corridor method, to the extent that any cumulative unrecognized net actuarial gain or loss exceeds 10% of the greater of the present value of the defined benefit obligation and the fair value of the plan assets, that portion is recognized over the expected average remaining working lives of the plan participants. Otherwise, the net actuarial gain or loss is recorded in OCI. We recognize the funded status of benefit plans on the Consolidated Balance Sheets. In addition, we recognize the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic pension cost of the period as a component of OCI (refer to Note 16 ). |
Recently Accounting Standards Pronouncements | Recent Accounting Standard Pronouncements Below are recent Accounting Standard Updates ("ASU") that we are assessing to determine the effect on our Consolidated Financial Statements. We do not believe that any other recently issued accounting standards could have a material effect on our Consolidated Financial Statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. Recently Issued Accounting Standards Not Yet Adopted Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This guidance enhances and simplifies various aspects of the income tax accounting guidance in ASC 740. January 1, 2021 As of January 1, 2021 we adopted ASU 2019-12, which could have a material impact on the Consolidated Financial Statements due to the sale of the RX business and we are currently assessing the impact. Recently Adopted Accounting Standard Update On January 1, 2020, we adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASC 326") , which replaces the incurred loss methodology with an expected loss methodology that is referred to as the Current Expected Credit Loss ("CECL") methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost. We adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost, which includes trade receivables and contract assets. The cumulative effect of adopting ASC 326 was not material. Allowance for Credit Losses Expected credit losses on trade receivables and contract assets are measured collectively by geographic location. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and for reasonable and supportable forecasts. Historical credit loss experience provides the primary basis for estimation of expected credit losses. Adjustments to historical loss information may be made for significant changes in a geographic location’s economic conditions. Receivables that do not share risk characteristics are evaluated on an individual basis. These receivables are not included in the collective evaluation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Property, plant and equipment | We held the following property, plant and equipment, net (in millions): December 31, December 31, Land $ 55.6 $ 50.4 Buildings 607.4 578.7 Machinery and equipment 1,342.4 1,195.8 Gross property, plant and equipment 2,005.4 1,824.9 Less: accumulated depreciation (1,009.4) (922.1) Property, plant and equipment, net $ 996.0 $ 902.8 |
Schedule of advertising expense | Advertising costs were as follows (in millions): Year Ended December 31, December 31, 2019 December 31, $ 130.5 $ 142.8 $ 159.2 |
Schedule of new accounting pronouncements and changes in accounting principles | As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. Recently Issued Accounting Standards Not Yet Adopted Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes This guidance enhances and simplifies various aspects of the income tax accounting guidance in ASC 740. January 1, 2021 As of January 1, 2021 we adopted ASU 2019-12, which could have a material impact on the Consolidated Financial Statements due to the sale of the RX business and we are currently assessing the impact. |
Schedule of allowance for credit loss activity | The following table presents the allowance for credit losses activity (in millions): Year Ended December 31, Beginning balance $ 6.7 Provision for credit losses, net 2.9 Receivables written-off (2.3) Recoveries collected — Currency translation adjustment 0.3 Ending balance $ 7.6 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from External Customer [Line Items] | |
Contract with customer balances | The following table provides information about contract assets from contracts with customers (in millions): Balance Sheet Location December 31, December 31, Short-term contract assets Prepaid expenses and other current assets $ 19.7 $ 26.3 |
Product | |
Revenue from External Customer [Line Items] | |
Disaggregation of revenue | We generated net sales in the following geographic locations (1) during each of the periods presented below (in millions): Year Ended December 31, December 31, December 31, U.S. $ 3,441.1 $ 3,225.6 $ 3,098.3 Europe (2) 1,350.6 1,335.8 1,347.6 All other countries (3) 271.6 276.0 285.8 Total net sales $ 5,063.3 $ 4,837.4 $ 4,731.7 (1) The net sales by geography is derived from the location of the entity that sells to a third party. (2) Includes Ireland net sales of $29.8 million, $23.4 million, and $25.7 million for the years ended December 31, 2020, December 31, 2019, and December 31, 2018, respectively. (3) Includes revenue generated primarily in Israel, Mexico, Australia, and Canada. Product Category The following is a summary of our net sales by category (in millions): Year Ended December 31, 2020 December 31, 2019 December 31, CSCA (1) Upper respiratory $ 489.5 $ 515.2 $ 492.5 Digestive health 452.6 413.9 403.6 Pain and sleep-aids 424.7 383.6 388.1 Nutrition 387.4 394.4 432.4 Healthy lifestyle 348.5 352.4 333.6 Oral self-care 284.6 106.4 — Skincare and personal hygiene 191.8 182.9 164.1 Vitamins, minerals, and supplements 27.0 28.6 26.1 Animal health — 43.7 93.9 Other CSCA (2) 86.9 66.6 77.3 Total CSCA 2,693.0 2,487.7 2,411.6 CSCI Skincare and personal hygiene 351.8 371.6 396.5 Upper respiratory 255.1 276.8 276.5 Vitamins, minerals, and supplements 201.0 180.2 187.2 Pain and sleep-aids 190.4 167.9 170.0 Healthy lifestyle 165.4 173.8 180.7 Oral self-care 97.8 51.2 8.9 Digestive health 26.5 27.1 29.5 Other CSCI (3) 107.2 133.6 150.0 Total CSCI 1,395.2 1,382.2 1,399.3 RX 975.1 967.5 920.8 Total net sales $ 5,063.3 $ 4,837.4 $ 4,731.7 (1) Includes net sales from our OTC contract manufacturing business. (2) Consists primarily of diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales. (3) Consists primarily of liquid licensed products, our distribution business and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales. |
Acquisitions and Divestitures A
Acquisitions and Divestitures Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Acquisition [Line Items] | |
Business Acquisition, Pro Forma Information | The following table presents unaudited pro forma information as if the Ranir acquisition had occurred on January 1, 2018 and the acquisition of Dr. Fresh and Sanofi brands had occurred on January 1, 2019, and had been combined with the results reported in our Consolidated Statements of Operations for all periods presented (in millions): Year Ended (Unaudited) December 31, 2020 December 31, December 31, Net sales $ 5,111.5 $ 5,112.3 $ 5,018.9 Net income (loss) $ (148.6) $ 172.4 $ 96.8 |
Oral Care Assets of High Ridge Brands (Dr. Fresh) | |
Business Acquisition [Line Items] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for Dr. Fresh and the provisional amounts of the assets acquired and liabilities assumed (in millions): Oral Care Assets of High Ridge Brands (Dr. Fresh) Purchase price paid $ 106.2 Assets acquired: Accounts receivable $ 13.1 Inventories 22.2 Prepaid expenses and other current assets 0.4 Property, plant and equipment, net 0.7 Operating lease assets 2.6 Goodwill 17.2 Distribution and license agreements and supply agreements $ 2.2 Developed product technology, formulations, and product rights 0.1 Customer relationships and distribution networks 20.6 Trademarks, trade names, and brands 43.2 Total intangible assets $ 66.1 Total assets $ 122.3 Liabilities assumed: Accounts payable $ 6.1 Other accrued liabilities 3.8 Payroll and related taxes 0.7 Accrued customer programs 3.0 Other non-current liabilities 2.5 Total liabilities $ 16.1 Net assets acquired $ 106.2 |
Ranir Global Holdings, LLC | |
Business Acquisition [Line Items] | |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for Ranir and the amounts of the assets acquired and liabilities assumed (in millions): Ranir Purchase price paid $ 759.2 Assets acquired: Cash and cash equivalents $ 11.5 Accounts receivable 40.6 Inventories 59.0 Prepaid expenses and other current assets 4.0 Property, plant and equipment, net 40.8 Operating lease assets 3.7 Goodwill 292.7 Definite-lived intangibles: Developed product technology, formulations, and product rights $ 48.6 Customer relationships and distribution networks 260.0 Trademarks, trade names, and brands 41.0 Indefinite-lived intangibles: In-process research and development 39.7 Total intangible assets $ 389.3 Other non-current assets 2.8 Total assets $ 844.4 Liabilities assumed: Accounts payable $ 17.6 Other accrued liabilities 7.7 Payroll and related taxes 5.5 Accrued customer programs 5.7 Deferred income taxes 45.9 Other non-current liabilities 2.8 Total liabilities $ 85.2 Net assets acquired $ 759.2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Changes in the carrying amount of goodwill, by reportable segment, were as follows (in millions): CSCA CSCI (1) RX (2) Total Balance at December 31, 2018 $ 1,713.7 $ 1,151.3 $ 1,114.8 $ 3,979.8 Impairments — — (109.2) (109.2) Business divestitures (42.2) — — (42.2) Business acquisitions 223.0 68.1 — 291.1 Currency translation adjustments 4.6 (15.7) 8.3 (2.8) Balance at December 31, 2019 1,899.1 1,203.7 1,013.9 4,116.7 Impairments — — (346.8) (346.8) Business divestitures — (115.6) — (115.6) Business acquisitions 14.8 7.3 — 22.1 Purchase accounting adjustments (10.4) 12.0 — 1.6 Currency translation adjustments 1.5 83.3 6.0 90.8 Balance at December 31, 2020 $ 1,905.0 $ 1,190.7 $ 673.1 $ 3,768.8 (1) We had accumulated goodwill impairments of $868.4 million as of December 31, 2019 and December 31, 2020. (2) We had accumulated goodwill impairments of $109.2 million and $456.0 million as of December 31, 2019 and December 31, 2020, respectively. |
Schedule of finite and indefinite-lived intangible assets | Intangible assets and the related accumulated amortization consisted of the following (in millions): Year Ended December 31, 2020 December 31, 2019 Gross Accumulated Gross Accumulated Indefinite-lived intangibles: Trademarks, trade names, and brands $ 4.3 $ — $ 18.8 $ — In-process research and development 10.8 — 50.0 — Total indefinite-lived intangibles $ 15.1 $ — $ 68.8 $ — Definite-lived intangibles: Distribution and license agreements and supply agreements $ 126.5 $ 87.5 $ 126.7 $ 81.1 Developed product technology, formulations, and product rights 1,363.6 765.9 1,392.8 755.3 Customer relationships and distribution networks 1,934.6 836.4 1,805.6 671.4 Trademarks, trade names, and brands 1,586.6 347.2 1,353.5 250.1 Non-compete agreements 5.2 5.2 6.5 6.0 Total definite-lived intangibles $ 5,016.5 $ 2,042.2 $ 4,685.1 $ 1,763.9 Total intangible assets $ 5,031.6 $ 2,042.2 $ 4,753.9 $ 1,763.9 |
Schedule of remaining weighted-average useful lives of intangible assets | The remaining weighted-average useful life for our amortizable intangible assets by asset class at December 31, 2020 was as follows: Amortizable Intangible Asset Category Remaining Weighted-Average Useful Life (Years) Distribution and license agreements and supply agreements 7 Developed product technology, formulations, and product rights 12 Customer relationships and distribution networks 16 Trademarks, trade names, and brands 16 |
Schedule of finite-lived intangible assets, future amortization expense | Our estimated future amortization expense is as follows (in millions): Year Amount 2021 $ 282.2 2022 252.7 2023 237.3 2024 225.4 2025 214.8 Thereafter 1,761.9 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory, current | Major components of inventory were as follows (in millions): Year Ended December 31, December 31, Finished goods $ 679.4 $ 530.3 Work in process 221.7 186.9 Raw materials 299.1 250.1 Total inventories $ 1,200.2 $ 967.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value, assets measured on recurring and nonrecurring basis | The table below summarizes the valuation of our financial instruments carried at fair value by the above pricing categories (in millions): Year Ended December 31, 2020 December 31, 2019 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Measured at fair value on a recurring basis: Assets: Investment securities $ 2.5 $ — $ — $ 6.6 $ — $ — Foreign currency forward contracts — 21.5 — — 4.3 — Cross-currency swap — 6.3 — — 26.3 — Funds associated with Israeli severance liability — 15.7 — — 14.6 — Royalty Pharma contingent milestone — — — — — 95.3 Total assets $ 2.5 $ 43.5 $ — $ 6.6 $ 45.2 $ 95.3 Liabilities: Foreign currency forward contracts $ — $ 8.2 $ — $ — $ 8.4 $ — Contingent consideration payments — — 13.2 — — 11.9 Total liabilities $ — $ 8.2 $ 13.2 $ — $ 8.4 $ 11.9 Measured at fair value on a non-recurring basis: Assets: Goodwill (1) $ — $ — $ 673.1 $ — $ — $ 1,013.1 Definite-lived intangible assets (2) — — — — — 23.3 Total assets $ — $ — $ 673.1 $ — $ — $ 1,036.4 (1) During the year ended December 31, 2020, goodwill with a carrying amount of $1,019.9 million was written down to a fair value of $673.1 million. During the year ended December 31, 2019, goodwill with a carrying amount of $1,122.3 million was written down to a fair value of $1,013.1 million. |
Fair value assets, unobservable inputs reconciliation | The table below summarizes the change in fair value of the Royalty Pharma contingent milestone (in millions): Year Ended December 31, December 31, Beginning balance $ 95.3 $ 323.2 Payments received — (250.0) Change in fair value (95.3) 22.1 Ending balance $ — $ 95.3 |
Schedule of fair value assumptions | The table below represents the volatility and rate of return: Year Ended December 31, Volatility 30.0 % Rate of return 7.92 % |
Liabilities unobservable inputs reconciliation | The table below summarizes the change in fair value of contingent consideration payments (in millions): Year Ended December 31, December 31, December 31, Beginning balance $ 11.9 $ 15.3 $ 22.0 Changes in value 1.3 (1.4) (1.5) Currency translation adjustments — — (0.2) Settlements and other adjustments — (2.0) (5.0) Ending balance $ 13.2 $ 11.9 $ 15.3 |
Fair value of contingent consideration | The fair value of our contingent consideration sales-based milestones as of December 31, 2020, was calculated using the following significant unobservable inputs: Twelve Months Ended December 31, 2020 Valuation Technique Unobservable Input Range (Weighted Average) (1) Contingent consideration payments: sales-based milestones Discounted cash flow Projected royalties $ 36.6 Projected year of payment of sales-based milestones 2021 - 2036 (2027) Discount rate 26.0 % (1) Unobservable inputs were weighted based on the relative estimated milestone payments. |
Long-term debt fair value | Our fixed rate long-term debt consisted of the following (in millions): Year Ended December 31, December 31, Level 1 Level 2 Level 1 Level 2 Public bonds Carrying value (excluding discount) $ 2,760.0 $ — $ 2,600.0 $ — Fair value $ 3,031.1 $ — $ 2,618.4 $ — Private placement note Carrying value (excluding premium) $ — $ 164.9 $ — $ 151.4 Fair value $ — $ 177.5 $ — $ 168.4 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities, Equity Method Investments and Joint Ventures [Abstract] | |
Equity Securities | The following table summarizes the measurement category, balance sheet location, and balances of our equity securities (in millions): Year Ended Measurement Category Balance Sheet Location December 31, December 31, 2019 Fair value method Prepaid expenses and other current assets $ 2.5 $ 6.6 Fair value method (1) Other non-current assets $ 1.9 $ 2.3 Equity method Other non-current assets $ 69.8 $ 17.8 (1) Measured at fair value using the Net Asset Value practical expedient. |
Equity security expense (income) | The following table summarizes the expense (income) recognized in earnings of our equity securities (in millions): Year Ended Measurement Category Income Statement Location December 31, December 31, December 31, Fair value method Other (income) expense, net $ 3.0 $ 4.9 $ 9.5 Equity method Other (income) expense, net $ (3.0) $ (2.7) $ (2.7) |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of foreign currency forward contracts | Foreign currency forward contracts were as follows (in millions): Notional Amount December 31, December 31, Israeli Shekel (ILS) $ 436.5 $ 712.7 European Euro (EUR) 312.6 157.6 United States Dollar (USD) 101.5 92.4 British Pound (GBP) 92.3 86.9 Danish Krone (DKK) 65.2 51.7 Chinese Yuan (CNY) 49.1 20.9 Swedish Krona (SEK) 41.2 42.0 Canadian Dollar (CAD) 36.8 41.3 Polish Zloty (PLZ) 21.8 21.5 Mexican Peso (MPX) 15.6 9.7 Australian Dollar (AUD) 11.3 1.2 Switzerland Franc (CHF) 8.2 4.1 Norwegian Krone (NOK) 7.9 6.6 Romanian New Leu (RON) 3.6 2.3 Other 6.2 6.3 Total $ 1,209.8 $ 1,257.2 |
Schedule of derivative instruments in statement of financial position, fair value | The balance sheet location and gross fair value of our outstanding derivative instruments were as follows (in millions): Asset Derivatives Fair Value Year Ended Balance Sheet Location December 31, December 31, Designated derivatives Foreign currency forward contracts Prepaid expenses and other current assets $ 13.2 $ 1.0 Foreign currency forward contracts Other non-current assets 0.5 — Cross-currency swap Other non-current assets 6.3 26.3 Total designated derivatives $ 20.0 $ 27.3 Non-designated derivatives Foreign currency forward contracts Prepaid expenses and other current assets $ 7.8 $ 3.3 Liability Derivatives Fair Value Year Ended Balance Sheet Location December 31, December 31, Designated derivatives Foreign currency forward contracts Other accrued liabilities $ 5.8 $ 4.7 Non-designated derivatives Foreign currency forward contracts Other accrued liabilities $ 2.4 $ 3.7 |
Effect of derivative instruments designated as hedging instruments in AOCI | The following tables summarize the effect of derivative instruments designated as hedging instruments in Accumulated Other Comprehensive Income ("AOCI") (in millions): Year Ended December 31, 2020 Instrument Amount of Gain/(Loss) Recorded in OCI (1) Classification of Gain/(Loss) Reclassified from AOCI into Earnings Amount of Gain/(Loss) Reclassified from AOCI into Earnings Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing Cash flow hedges Treasury locks $ — Interest expense, net $ (0.1) Interest expense, net $ — Interest rate swap agreements — Interest expense, net (1.8) Interest expense, net — Foreign currency forward contracts 7.3 Net sales 0.2 Net sales 0.1 Cost of sales 2.9 Cost of sales 1.1 Other (income) expense, net 0.5 $ 7.3 $ 1.2 $ 1.7 Net investment hedges Cross-currency swap $ (20.0) Interest expense, net $ 6.6 Foreign currency forward contract (11.2) Interest expense, net (0.1) $ (31.2) $ 6.5 (1) Net loss of $6.4 million is expected to be reclassified out of AOCI into earnings during the next 12 months. Year Ended December 31, 2019 Instrument Amount of Gain/(Loss) Recorded in OCI Classification of Gain/(Loss) Reclassified from AOCI into Earnings Amount of Gain/(Loss) Reclassified from AOCI into Earnings Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing Cash flow hedges Treasury locks $ — Interest expense, net $ (0.1) Interest expense, net $ — Interest rate swap agreements — Interest expense, net (1.8) Interest expense, net — Foreign currency forward contracts (1.2) Net sales 2.5 Net sales (2.1) Cost of sales 0.1 Cost of sales (1.5) $ (1.2) $ 0.7 $ (3.6) Net investment hedges Cross-currency swap $ 31.2 Interest expense, net $ 4.9 Year Ended December 31, 2018 Effective Portion Instrument Amount of Gain/(Loss) Recorded in OCI Classification of Gain/(Loss) Reclassified from AOCI into Earnings Amount of Gain/(Loss) Reclassified from AOCI into Earnings Treasury locks $ — Interest expense, net $ (0.1) Interest rate swap agreements — Interest expense, net (1.8) Foreign currency forward contracts (9.1) Net sales 0.5 Cost of sales 1.9 Interest expense, net (4.8) Other (income) expense, net 2.1 $ (9.1) $ (2.2) |
Schedule of other derivatives not designated as hedging instruments, statements of financial performance and financial position, location | The amounts of (income)/expense recognized in earnings related to our non-designated derivatives on the Consolidated Statements of Operations were as follows (in millions): Year Ended Non-Designated Derivatives Income Statement Location December 31, December 31, December 31, Foreign currency forward contracts Other (income) expense, net $ (10.0) $ (25.4) $ 7.6 Interest expense, net 6.2 1.8 (1.0) $ (3.8) $ (23.6) $ 6.6 |
Classification and amount of gain/(loss) recognized in earnings on fair value and hedging relationships | The classification and amount of gain/(loss) recognized in earnings on fair value and hedging relationships were as follows (in millions): Year Ended December 31, 2020 Net Sales Cost of Sales Interest Expense, net Other (Income) Expense, net Total amounts of income and expense line items presented on the Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded $ 5,063.3 $ 3,248.1 $ 131.2 $ 17.2 The effects of cash flow hedging: Gain (loss) on cash flow hedging relationships Foreign currency forward contracts Amount of gain or (loss) reclassified from AOCI into earnings $ 0.2 $ 2.9 $ — $ — Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach $ 0.1 $ 1.1 $ — $ 0.5 Treasury locks Amount of gain or (loss) reclassified from AOCI into earnings $ — $ — $ (0.1) $ — Interest rate swap agreements Amount of gain or (loss) reclassified from AOCI into earnings $ — $ — $ (1.8) $ — Year Ended December 31, 2019 Net Sales Cost of Sales Interest Expense, net Other (Income) Expense, net Total amounts of income and expense line items presented on the Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded $ 4,837.4 $ 3,064.1 $ 121.7 $ (66.0) The effects of cash flow hedging: Gain (loss) on cash flow hedging relationships Foreign currency forward contracts Amount of gain or (loss) reclassified from AOCI into earnings $ 2.5 $ 0.1 $ — $ — Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach $ (2.1) $ (1.5) $ — $ — Treasury locks Amount of gain or (loss) reclassified from AOCI into earnings $ — $ — $ (0.1) $ — Interest rate swap agreements Amount of gain or (loss) reclassified from AOCI into earnings $ — $ — $ (1.8) $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Balance Sheet Location of Assets and Liabilities | The balance sheet locations of our lease assets and liabilities were as follows (in millions): Assets Balance Sheet Location December 31, December 31, Operating Operating lease assets $ 186.0 $ 129.9 Finance Other non-current assets 31.0 27.6 Total $ 217.0 $ 157.5 Liabilities Balance Sheet Location December 31, December 31, Current Operating Other accrued liabilities $ 34.0 $ 32.0 Finance Current indebtedness 7.2 3.4 Non-Current Operating Other non-current liabilities 159.3 101.7 Finance Long-term debt, less current portion 20.8 21.1 Total $ 221.3 $ 158.2 The below table shows our lease assets and liabilities by reporting segment (in millions): Assets Liabilities Operating Financing Operating Financing December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, CSCA $ 22.8 $ 22.4 $ 16.7 $ 16.8 $ 23.2 $ 22.8 $ 17.0 $ 16.6 CSCI 34.4 41.6 5.9 5.8 35.2 42.4 2.5 2.9 RX 84.4 35.1 1.2 0.8 85.1 36.3 1.1 0.8 Unallocated 44.4 30.8 7.2 4.2 49.8 32.2 7.4 4.2 Total $ 186.0 $ 129.9 $ 31.0 $ 27.6 $ 193.3 $ 133.7 $ 28.0 $ 24.5 |
Lease Expense | Lease expense was as follows (in millions): Year Ended December 31, December 31, Operating leases (1) $ 43.4 $ 43.7 Finance leases Amortization $ 4.8 $ 3.2 Interest 0.8 0.6 Total finance leases $ 5.6 $ 3.8 (1) Includes short-term leases and variable lease costs, which are immaterial. |
Finance Lease Maturity | The annual future maturities of our leases as of December 31, 2020 are as follows (in millions): Operating Leases Finance Leases Total 2021 $ 40.0 $ 7.8 $ 47.8 2022 31.3 5.0 36.3 2023 23.2 3.1 26.3 2024 19.9 1.7 21.6 2025 17.9 1.5 19.4 After 2025 92.0 13.2 105.2 Total lease payments 224.3 32.3 256.6 Less: Interest 31.0 4.3 35.3 Present value of lease liabilities $ 193.3 $ 28.0 $ 221.3 |
Operating Lease Liability Maturity | The annual future maturities of our leases as of December 31, 2020 are as follows (in millions): Operating Leases Finance Leases Total 2021 $ 40.0 $ 7.8 $ 47.8 2022 31.3 5.0 36.3 2023 23.2 3.1 26.3 2024 19.9 1.7 21.6 2025 17.9 1.5 19.4 After 2025 92.0 13.2 105.2 Total lease payments 224.3 32.3 256.6 Less: Interest 31.0 4.3 35.3 Present value of lease liabilities $ 193.3 $ 28.0 $ 221.3 |
Weighted Average Lease Terms and Discount Rates | Our weighted average lease terms and discount rates are as follows: December 31, December 31, Weighted-average remaining lease term (in years) Operating leases 10.00 6.56 Finance leases 8.56 10.33 Weighted-average discount rate Operating leases 3.24 % 4.11 % Finance leases 3.05 % 3.47 % |
Cash Flow Classifications | Our lease cash flow classifications are as follows (in millions): Year Ended December 31, December 31, Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 41.9 $ 43.9 Operating cash flows for finance leases $ 0.8 $ 0.6 Financing cash flows for finance leases $ 4.4 $ 3.0 Leased assets obtained in exchange for new finance lease liabilities $ 7.6 $ 20.2 Leased assets obtained in exchange for new operating lease liabilities $ 86.9 $ 10.3 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Total borrowings outstanding are summarized as follows (in millions): Year Ended December 31, December 31, Term loan 2019 Term loan due August 15, 2022 $ 600.0 $ 600.0 Notes and bonds Coupon Due 3.500% March 15, 2021 (4) $ — $ 280.4 3.500% December 15, 2021 (1) — 309.6 * 5.105% July 28, 2023 (3) 164.9 151.4 4.000% November 15, 2023 (2) 215.6 215.6 3.900% December 15, 2024 (1) 700.0 700.0 4.375% March 15, 2026 (4) 700.0 700.0 3.150% June 15, 2030 (5) 750.0 — 5.300% November 15, 2043 (2) 90.5 90.5 4.900% December 15, 2044 (1) 303.9 303.9 Total notes and bonds 2,924.9 2,751.4 Other financing 58.6 24.6 Unamortized premium (discount), net (0.3) 7.3 Deferred financing fees (17.1) (14.1) Total borrowings outstanding 3,566.1 3,369.2 Current indebtedness (37.8) (3.4) Total long-term debt less current portion $ 3,528.3 $ 3,365.8 (1) Discussed below collectively as the "2014 Notes" (2) Discussed below collectively as the "2013 Notes" (3) Debt assumed from Omega (4) Discussed below collectively as the "2016 Notes" (5) Discussed below as the "2020 Notes" * Debt denominated in euros subject to fluctuations in the euro-to-U.S. dollar exchange rate. |
Schedule of maturities of short-term and long-term debt | The annual future maturities of our short-term and long-term debt, including capitalized leases, are as follows (in millions): Payment Due Amount 2021 $ 37.9 2022 604.2 2023 384.7 2024 704.2 2025 4.2 Thereafter 1,848.3 |
Earnings Per Share And Shareh_2
Earnings Per Share And Shareholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | A reconciliation of the numerators and denominators used in our basic and diluted earnings per share ("EPS") calculation is as follows (in millions): Year Ended December 31, December 31, December 31, Numerator: Net income (loss) $ (162.6) $ 146.1 $ 131.0 Denominator: Weighted average shares outstanding for basic EPS 136.1 136.0 137.8 Dilutive effect of share-based awards* — 0.5 0.5 Weighted average shares outstanding for diluted EPS 136.1 136.5 138.3 Anti-dilutive share-based awards excluded from computation of diluted EPS* — 1.5 1.4 * In the period of a net loss, diluted shares equal basic shares. |
Schedule of dividends payable | We paid dividends as follows: Year Ended December 31, December 31, December 31, Dividends paid (in millions) $ 123.9 $ 112.4 $ 104.9 Dividends paid (per share) $ 0.90 $ 0.82 $ 0.76 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of share-based compensation expense | Share-based compensation expense was as follows (in millions): Year Ended December 31, December 31, December 31, $ 58.5 $ 52.2 $ 37.7 |
Schedule of share-based compensation, stock options, activity | A summary of activity related to stock options is presented below (options in thousands): Number of Weighted-Average Weighted- Aggregate Options outstanding at December 31, 2018 1,534 $ 91.56 Granted — $ — Exercised (27) $ 34.30 Forfeited or expired (43) $ 99.58 Options outstanding at December 31, 2019 1,464 $ 92.33 5.8 $ — Granted — $ — Exercised — $ — Forfeited or expired (120) $ 78.21 Options outstanding December 31, 2020 1,344 $ 93.61 5.2 $ — Options exercisable 1,138 $ 96.34 4.8 $ — Options expected to vest 200 $ 78.51 7.1 $ — |
Schedule of aggregate intrinsic value | The aggregate intrinsic value for options exercised was as follows (in millions): Year Ended December 31, December 31, December 31, $ — $ 0.5 $ 1.1 |
Schedule of weighted average grant date fair value | The weighted-average fair value per share at the grant date for options granted was as follows: Year Ended December 31, December 31, December 31, $ — $ — $ 24.43 |
Schedule of share-based payment award, stock options, valuation assumptions | The fair value was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended December 31, Dividend yield 0.8 % Volatility, as a percent 31.2 % Risk-free interest rate 2.8 % Expected life in years 5.6 |
Schedule of nonvested RSUs | A summary of activity related to non-vested service-based restricted share units is presented below (units in thousands): Number of Weighted- Weighted- Aggregate Non-vested service-based share units outstanding at December 31, 2018 728 $ 89.47 Granted 818 $ 47.48 Vested (269) $ 95.09 Forfeited (66) $ 71.03 Non-vested service-based share units outstanding at December 31, 2019 1,211 $ 60.96 1.4 $ 62.5 Granted 823 $ 54.68 Vested (372) $ 69.64 Forfeited (42) $ 59.82 Non-vested service-based share units outstanding at December 31, 2020 1,620 $ 55.82 1.0 $ 72.5 |
Schedule of total fair value of RSUs | The total fair value of service-based restricted share units that vested was as follows (in millions): Year Ended December 31, December 31, December 31, $ 25.9 $ 25.6 $ 24.6 |
Schedule of nonvested PSUs | A summary of activity related to non-vested performance-based restricted share units is presented below (units in thousands): Number of Weighted- Weighted- Aggregate Non-vested performance-based share units outstanding at December 31, 2018 442 $ 86.61 Granted 298 $ 47.54 Vested (68) $ 116.35 Forfeited (19) $ 72.83 Non-vested performance-based share units outstanding at December 31, 2019 653 $ 61.44 1.5 $ 33.7 Granted 291 $ 55.08 Vested (184) $ 68.89 Forfeited (9) $ 70.60 Non-vested performance-based share units outstanding at December 31, 2020 751 $ 57.13 1.4 $ 33.6 |
Schedule total fair value | The total fair value of performance-based restricted share units that vested was as follows (in millions): Year Ended December 31, December 31, December 31, $ 12.7 $ 8.0 $ 2.4 |
RTSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of weighted average grant date fair value | The weighted-average fair value per share at the date of grant for RTSR performance share units granted was as follows: Year Ended December 31, December 31, December 31, $ 67.72 $ 55.61 $ 101.13 The total fair value of RTSR performance share units that vested was as follows (in millions): Year Ended December 31, December 31, December 31, $ 1.5 $ — $ — |
Schedule of share-based payment award, stock options, valuation assumptions | The assumptions used in estimating the fair value of the RTSR performance share units granted during each year were as follows: Year Ended December 31, December 31, December 31, Dividend yield 1.6 % 1.6 % 0.9 % Volatility, as a percent 40.4 % 40.2 % 35.3 % Risk-free interest rate 0.6 % 1.9 % 2.4 % Expected life in years 2.8 2.4 2.8 |
Schedule of nonvested PSUs | A summary of activity related to non-vested RTSR performance share units is presented below (units in thousands): Number of Weighted- Weighted- Aggregate Non-vested RTSR performance share units outstanding at December 31, 2018 62 $ 78.35 Granted 80 $ 55.61 Vested — $ — Forfeited — $ — Non-vested RTSR performance share units outstanding at December 31, 2019 142 $ 63.02 1.5 $ 7.3 Granted 58 $ 67.72 Vested (24) $ 62.73 Forfeited — $ — Non-vested RTSR performance share units outstanding at December 31, 2020 176 $ 65.04 1.5 $ 7.9 |
Service-based Restricted Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of weighted average grant date fair value | The weighted-average fair value per share at the date of grant for service-based restricted share units granted was as follows: Year Ended December 31, December 31, December 31, $ 54.68 $ 47.48 $ 81.51 |
Performance-based Restricted Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of weighted average grant date fair value | The weighted-average fair value per share at the date of grant for performance-based restricted share units granted was as follows: Year Ended December 31, December 31, December 31, $ 55.08 $ 47.54 $ 85.01 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Changes in our Accumulated Other Comprehensive Income (loss) ("AOCI") balances, net of tax, were as follows (in millions): Fair Value of Derivative Financial Instruments, net of tax Foreign Currency Translation Adjustments (1) Post-Retirement and Pension Liability Adjustments, net of tax Total AOCI Balance at December 31, 2018 $ (15.5) $ 104.5 $ (4.4) $ 84.6 OCI before reclassifications 26.8 28.4 4.9 60.1 Amounts reclassified from AOCI 1.4 — (6.7) (5.3) Other comprehensive income (loss) 28.2 28.4 (1.8) 54.8 Balance at December 31, 2019 12.7 132.9 (6.2) 139.4 OCI before reclassifications (12.2) 228.0 1.8 217.6 Amounts reclassified from AOCI (1.2) 46.4 (7.2) 38.0 Other comprehensive income (loss) (13.4) 274.4 (5.4) 255.6 Balance at December 31, 2020 $ (0.7) $ 407.3 $ (11.6) $ 395.0 (1) Refer to the description in Note 3 of the Rosemont Pharmaceuticals business divestiture for information regarding amounts reclassified from AOCI. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax and components of Income tax expense (benefit) | Pre-tax income (loss) and the (benefit) provision for income taxes from continuing operations are summarized as follows (in millions): Year Ended December 31, December 31, December 31, Pre-tax income (loss): Ireland $ (411.8) $ (300.3) $ (109.0) United States 147.3 (291.9) (428.6) Other foreign 115.1 763.2 828.2 Total pre-tax income (loss) (149.4) 171.0 290.6 Current provision (benefit) for income taxes: Ireland 2.7 (2.2) 22.7 United States 17.6 51.0 66.4 Other foreign 47.4 16.1 75.1 Subtotal 67.7 64.9 164.2 Deferred provision (benefit) for income taxes: Ireland (0.1) — (13.9) United States (52.3) (30.2) 7.3 Other foreign (2.1) (9.8) 2.0 Subtotal (54.5) (40.0) (4.6) Total provision for income taxes $ 13.2 $ 24.9 $ 159.6 |
Schedule of effective income tax rate reconciliation | A reconciliation of the provision based on the Irish statutory income tax rate to our effective income tax rate is as follows: Year Ended December 31, December 31, December 31, Provision at statutory rate 12.5 % 12.5 % 12.5 % Foreign rate differential 14.9 3.1 (7.1) State income taxes, net of federal benefit (6.2) 2.7 3.0 Provision to return (1.2) 0.8 (1.0) Tax credits 8.8 (2.7) (1.3) Change in tax law (1.8) (1.1) (6.2) Change in valuation allowance 52.0 (29.1) 51.0 Change in unrecognized taxes (28.8) (4.7) 13.8 Permanent differences (70.7) 31.2 (14.1) Legal entity restructuring 21.1 — — Taxes on unremitted earnings (8.8) 3.6 3.9 Other (0.6) (1.7) 0.4 Effective income tax rate (8.8) % 14.6 % 54.9 % |
Schedule of deferred tax assets and liabilities | The components of our net deferred income tax asset (liability) were as follows (in millions): Year Ended December 31, December 31, Deferred income tax asset (liability): Depreciation and amortization $ (393.7) $ (366.7) Investment in partnership — (38.1) Right of use assets (44.3) (30.5) Unremitted earnings (42.0) (29.0) Inventory basis differences 27.7 32.7 Accrued liabilities 81.4 91.3 Lease obligations 45.3 30.5 Share-based compensation 24.5 23.2 Federal benefit of unrecognized tax positions 23.5 20.7 Loss and credit carryforwards 390.1 373.3 R&D credit carryforwards 48.4 54.1 Interest carryforwards 17.9 60.5 Other, net 0.9 4.1 Subtotal $ 179.7 $ 226.1 Valuation allowance (1) (414.8) (501.3) Net deferred income tax liability $ (235.1) $ (275.2) (1) The movement in the valuation allowance balance differs from the amount in the effective tax rate reconciliation due to adjustments affecting balance sheet only items and foreign currency. The above amounts are classified on the Consolidated Balance Sheets as follows (in millions): Year Ended December 31, December 31, Assets $ 44.2 $ 5.4 Liabilities (279.3) (280.6) Net deferred income tax liability $ (235.1) $ (275.2) The change in valuation allowance reducing deferred taxes was (in millions): Year Ended December 31, December 31, Balance at beginning of period $ 501.3 $ 557.9 Change in assessment (1) (50.3) (8.3) Current year operations, foreign currency and other (36.2) (48.3) Balance at end of period $ 414.8 $ 501.3 (1) Includes release of $51.5 million of valuation allowance against U.S. deferred tax assets in 2020. |
Summary of income tax contingencies | The Company operates in multiple jurisdictions with complex tax policy and regulatory environments and establishes reserves for uncertain tax positions in accordance with the accounting guidance governing uncertainty in income taxes. Uncertainty in a tax position may arise because tax laws are subject to interpretation. The following table summarizes the activity related to the liability recorded for uncertain tax positions, excluding interest and penalties (in millions): Unrecognized Balance at December 31, 2018 $ 377.1 Additions: Positions related to the current year 8.2 Positions related to prior years 3.1 Reductions: Settlements with taxing authorities (3.0) Lapse of statutes of limitation (23.5) Decrease in prior year positions (12.1) Cumulative translation adjustment 0.7 Balance at December 31, 2019 350.5 Additions: Positions related to the current year 18.2 Positions related to prior years 28.9 Reductions: Lapse of statutes of limitation (2.2) Decrease in prior year positions (1.0) Cumulative translation adjustment 1.6 Balance at December 31, 2020 $ 396.0 |
Post Employment Plans - (Tables
Post Employment Plans - (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Postemployment Benefits [Abstract] | |
Defined contribution plan disclosures | Our contributions to all of the plans were as follows (in millions): Year Ended December 31, December 31, December 31, 2018 $ 27.3 $ 26.6 $ 25.2 |
Schedule of change in the projected benefit obligation and plan assets | The change in the projected benefit obligation and plan assets consisted of the following (in millions): Pension Benefits Other Benefits Year Ended Year Ended December 31, December 31, 2019 December 31, December 31, 2019 Projected benefit obligation at beginning of period $ 186.9 $ 168.6 $ 3.7 $ 5.6 Curtailment — (2.5) — — Service costs 2.7 2.5 — 0.6 Interest cost 2.8 3.8 0.1 0.2 Actuarial loss (gain) 7.0 22.7 (0.2) 0.3 Amendments — — — (2.9) Contributions paid 0.2 0.3 — — Benefits paid (2.3) (1.6) (0.1) (0.1) Settlements — (3.8) — — Foreign currency translation 17.0 (3.1) — — Projected benefit obligation at end of period $ 214.3 $ 186.9 $ 3.5 $ 3.7 Fair value of plan assets at beginning of period 165.4 151.9 — — Actual return on plan assets 8.3 19.8 — — Benefits paid (2.3) (1.6) (0.1) (0.1) Settlements — (3.8) — — Employer contributions 2.3 2.0 0.1 0.1 Contributions paid 0.2 0.3 — — Foreign currency translation 15.2 (3.2) — — Fair value of plan assets at end of period $ 189.1 $ 165.4 $ — $ — Unfunded status $ (25.2) $ (21.5) $ (3.5) $ (3.7) Presented as: Other non-current assets $ 17.9 $ 15.8 $ — $ — Other non-current liabilities $ (43.1) $ (37.3) $ — $ — |
Schedule of accumulated benefit obligation | The total accumulated benefit obligation for the defined benefit pension plans was $207.5 million and $180.8 million at December 31, 2020 and December 31, 2019 respectively. The following information relates to pension plans with an accumulated benefit obligation in excess of plan assets (in millions): Year Ended December 31, December 31, 2019 Accumulated benefit obligation $ 107.4 $ 93.7 Fair value of plan assets $ 71.1 $ 62.1 |
Schedule of pension plans with a projected benefit obligation in excess of plan assets | The following information relates to pension plans with a projected benefit obligation in excess of plan assets (in millions): Year Ended December 31, December 31, 2019 Projected benefit obligation $ 114.2 $ 99.4 Fair value of plan assets $ 71.1 $ 62.1 |
Schedule of unrecognized actual gains (losses) | The following unrecognized actual gain for the other benefits liability was included in OCI, net of tax (in millions): Year Ended December 31, December 31, 2019 December 31, $ 0.2 $ 2.6 $ 1.3 |
Schedule of unamortized net actuarial (gain) loss in AOCI net of tax | The unamortized net actuarial loss (gain) in AOCI net of tax for defined benefit pension and other benefits was as follows (in millions): Year Ended December 31, December 31, 2019 December 31, $ 11.6 $ 6.2 $ 4.4 |
Schedule of expected benefit payments | At December 31, 2020, the total estimated future benefit payments to be paid by the plans for the next five years is approximately $14.7 million for pension benefits and $0.8 million for other benefits as follows (in millions): Payment Due Pension Benefits Other Benefits 2021 $ 2.1 $ 0.1 2022 2.6 0.1 2023 2.6 0.2 2024 3.5 0.2 2025 3.9 0.2 Thereafter 27.4 1.1 |
Schedule of net periodic pension cost | Net periodic pension cost consisted of the following (in millions): Pension Benefits Other Benefits Year Ended Year Ended December 31, 2020 December 31, 2019 December 31, 2018 December 31, 2020 December 31, 2019 December 31, 2018 Service cost $ 2.7 $ 2.5 $ 3.0 $ — $ 0.6 $ 0.6 Interest cost 2.8 3.8 3.8 0.1 0.2 0.2 Expected return on assets (4.9) (4.9) (5.3) — — — Settlement — 0.9 — — — — Curtailment — (2.5) (1.2) — — — Net actuarial loss/(gain) 0.9 0.8 0.6 (3.2) (0.3) (0.1) Net periodic pension cost/(gain) $ 1.5 $ 0.6 $ 0.9 $ (3.1) $ 0.5 $ 0.7 |
Schedule of assumptions used | The weighted-average assumptions used to determine net periodic pension cost and benefit obligation were: Pension Benefits Other Benefits Year Ended Year Ended December 31, December 31, 2019 December 31, December 31, December 31, 2019 December 31, Discount rate 0.95 % 1.06 % 2.04 % 3.14 % 4.25 % 3.59 % Inflation 1.33 % 1.18 % 1.45 % Expected return on assets 1.76 % 2.54 % 2.94 % Interest crediting rates 0.59 % 0.83 % 1.41 % As of December 31, 2020, the expected weighted-average long-term rate of return on assets of 1.8% was calculated based on the assumptions of the following returns for each asset class: Equities 5.0 % Bonds 1.7 % Absolute return fund 4.0 % Insurance contracts 1.6 % Other 0.9 % |
Schedule of allocation of plan assets | Certain of our plans have target asset allocation ranges. As of December 31, 2020, these ranges were as follows: Equities 20%-30% Bonds 40%-50% Absolute return 20%-30% The following table sets forth the fair value of the pension plan assets (in millions): Year Ended December 31, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Equities $ — $ 42.8 $ — $ 42.8 $ 0.1 $ 24.5 $ — $ 24.6 Bonds 1.2 43.0 — 44.2 1.1 32.7 — 33.8 Insurance contracts — — 64.2 64.2 — — 56.1 56.1 Absolute return fund — 30.8 — 30.8 — 44.9 — 44.9 Other — 7.1 — 7.1 — 6.0 — 6.0 Total $ 1.2 $ 123.7 $ 64.2 $ 189.1 $ 1.2 $ 108.1 $ 56.1 $ 165.4 |
Schedule of summary of the changes in the fair value of the Level 3 pension plan assets | The following table sets forth a summary of the changes in the fair value of the Level 3 pension plan assets, which were measured at fair value on a recurring basis (in millions): Year Ended December 31, December 31, 2019 Assets at beginning of year $ 56.1 $ 49.9 Actual return on plan assets 1.9 8.1 Purchases, sales and settlements, net 1.2 (0.5) Foreign exchange 5.0 (1.4) Assets at end of year $ 64.2 $ 56.1 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring Charges [Abstract] | |
Schedule of restructuring charges | The following reflects our restructuring activity (in millions): Balance at December 31, 2017 $ 21.4 Additional charges 21.0 Payments (18.8) Non-cash adjustments 0.4 Balance at December 31, 2018 24.0 Additional charges 25.3 Payments (29.4) Non-cash adjustments (0.3) Balance at December 31, 2019 19.6 Additional charges 3.5 Payments (14.3) Non-cash adjustments 0.7 Balance at December 31, 2020 $ 9.5 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segments and Geographic Information [Abstract] | |
Schedule of segment reporting information, by segment | Below is a summary of our results by reporting segment (in millions): CSCA CSCI RX Unallocated Total Year Ended December 31, 2020 Net sales $ 2,693.0 $ 1,395.2 $ 975.1 $ — $ 5,063.3 Operating income (loss) $ 472.0 $ 32.3 $ (177.7) $ (211.2) $ 115.4 Operating income % 17.5 % 2.3 % (18.2) % — % 2.3 % Total assets $ 4,443.0 $ 4,872.4 $ 2,173.0 $ — $ 11,488.4 Capital expenditures $ 126.0 $ 28.8 $ 15.6 $ — $ 170.4 Property, plant and equipment, net $ 675.7 $ 163.5 $ 156.8 $ — $ 996.0 Depreciation/amortization $ 103.6 $ 177.8 $ 103.4 $ — $ 384.8 Change in financial assets $ — $ — $ — $ 96.4 $ 96.4 Year Ended December 31, 2019 Net sales $ 2,487.7 $ 1,382.2 $ 967.5 $ — $ 4,837.4 Operating income (loss) $ 414.0 $ 19.6 $ 2.6 $ (231.4) $ 204.8 Operating income % 16.6 % 1.4 % 0.3 % — % 4.2 % Total assets $ 3,990.2 $ 4,682.7 $ 2,628.5 $ — $ 11,301.4 Capital expenditures $ 98.4 $ 18.8 $ 20.5 $ — $ 137.7 Property, plant and equipment, net $ 599.8 $ 149.9 $ 153.1 $ — $ 902.8 Depreciation/amortization $ 97.4 $ 194.3 $ 104.8 $ — $ 396.5 Change in financial assets $ — $ — $ — $ (22.1) $ (22.1) Year Ended December 31, 2018 Net sales $ 2,411.6 $ 1,399.3 $ 920.8 $ — $ 4,731.7 Operating income (loss) $ 174.4 $ 6.8 $ 214.6 $ (159.3) $ 236.5 Operating income % 7.2 % 0.5 % 23.3 % — % 5.0 % Total assets $ 3,571.7 $ 4,613.0 $ 2,798.7 $ — $ 10,983.4 Capital expenditures $ 65.0 $ 19.1 $ 18.6 $ — $ 102.7 Property, plant and equipment, net $ 530.3 $ 154.8 $ 144.0 $ — $ 829.1 Depreciation/amortization $ 104.8 $ 219.2 $ 99.6 $ — $ 423.6 Change in financial assets $ — $ — $ — $ (188.7) $ (188.7) |
Schedule of property and equipment by geographic location | The net book value of Property, plant and equipment, net by location was as follows (in millions): Year Ended December 31, December 31, U.S. $ 678.2 $ 614.5 Europe (1) 169.7 146.8 Israel 90.7 86.1 All other countries 57.4 55.4 $ 996.0 $ 902.8 |
Schedules of concentration of risk | Sales to Walmart as a percentage of Consolidated Net sales Year Ended December 31, December 31, 2019 December 31, 13.3% 13.0% 12.8% |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The following table presents unaudited quarterly consolidated operating results for each of our last eight quarters. The information below has been prepared on a basis consistent with our audited consolidated financial statements (in millions, except per share amounts): First Quarter Second Quarter (2) Third Quarter (3) Fourth Quarter (4) Year Ended December 31, 2020 Net sales $ 1,341.0 $ 1,219.1 $ 1,213.7 $ 1,289.5 Gross profit $ 483.2 $ 434.7 $ 428.1 $ 469.2 Change in financial assets $ (1.6) $ (2.1) $ (22.2) $ 122.3 Net income (loss) $ 106.4 $ 60.6 $ (154.6) $ (175.0) Earnings (loss) per share (1) : Basic $ 0.78 $ 0.44 $ (1.13) $ (1.29) Diluted $ 0.77 $ 0.44 $ (1.13) $ (1.29) Weighted average shares outstanding: Basic 136.2 136.4 136.5 135.4 Diluted 137.3 137.5 136.5 135.4 (1) The sum of individual per share amounts may not equal due to rounding. (2) Includes Rosemont Pharmaceuticals business pre-tax loss of $21.1 million. (3) Includes impairment charges of $202.4 million, change in financial assets of $22.2 million and loss on early debt extinguishment of $20.0 million. (4) Includes change in financial assets of $122.3 million and impairment charges of $144.4 million. First Quarter (2) Second Quarter (3) Third Quarter (4) Fourth Quarter (5) Year Ended December 31, 2019 Net sales $ 1,174.5 $ 1,149.0 $ 1,191.1 $ 1,322.8 Gross profit $ 448.8 $ 430.8 $ 412.8 $ 480.9 Change in financial assets $ (10.4) $ (5.5) $ (2.6) $ (3.6) Net income (loss) $ 63.9 $ 9.0 $ 92.2 $ (19.0) Earnings (loss) per share (1) : Basic $ 0.47 $ 0.07 $ 0.68 $ (0.14) Diluted $ 0.47 $ 0.07 $ 0.67 $ (0.14) Weighted average shares outstanding: Basic 135.9 136.0 136.0 136.1 Diluted 136.2 136.5 136.8 137.0 (1) The sum of individual per share amounts may not equal due to rounding. (2) Includes change in financial assets of $10.4 million. (3) Includes impairment charges of $27.8 million and restructuring charges and other termination benefits of $12.2 million. (4) Includes animal health divestiture pre-tax gain of $71.7 million, Ranitidine market withdrawal charges of $18.4 million, acquisition-related charges and contingent consideration adjustments of $18.1 million, and impairment charges of $10.9 million. (5) Includes impairment charges of $141.6 million. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Millions | May 29, 2018USD ($) | Dec. 31, 2020USD ($)reportingUnit | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) |
Summary of Significant Accounting Policies [Line Items] | |||||
Customer related acruals and allowances | $ 458.7 | $ 483.7 | |||
Depreciation | 90.1 | 91 | $ 90 | ||
Property, Plant and Equipment, Gross [Abstract] | |||||
Land | 55.6 | 50.4 | |||
Buildings | 607.4 | 578.7 | |||
Machinery and equipment | 1,342.4 | 1,195.8 | |||
Gross property, plant and equipment | 2,005.4 | 1,824.9 | |||
Less accumulated depreciation | (1,009.4) | (922.1) | |||
Property, plant and equipment, net | 996 | 902.8 | 829.1 | ||
Operating lease assets | 186 | 129.9 | $ 164 | ||
Lease liabilities | $ 193.3 | 133.7 | |||
Number of reporting units | reportingUnit | 5 | ||||
Research and development | $ 177.7 | 187.4 | 218.6 | ||
Advertising expense | 130.5 | 142.8 | 159.2 | ||
Other Accrued Liabilities and Other Noncurrent Liabilities | |||||
Property, Plant and Equipment, Gross [Abstract] | |||||
Lease liabilities | $ 166.5 | ||||
CSCA | |||||
Property, Plant and Equipment, Gross [Abstract] | |||||
Operating lease assets | 22.8 | 22.4 | |||
Lease liabilities | 23.2 | 22.8 | |||
CSCI | |||||
Property, Plant and Equipment, Gross [Abstract] | |||||
Operating lease assets | 34.4 | 41.6 | |||
Lease liabilities | $ 35.2 | $ 42.4 | |||
Omega advertising percentage | 85.00% | ||||
Minimum | Machinery and Equipment | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life (in years) | 3 years | ||||
Minimum | Building | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life (in years) | 10 years | ||||
Minimum | Software and Software Development Costs | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life (in years) | 3 years | ||||
Maximum | Machinery and Equipment | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life (in years) | 20 years | ||||
Maximum | Building | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life (in years) | 45 years | ||||
Maximum | Software and Software Development Costs | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life (in years) | 10 years | ||||
OTC Version of Nasonex-branded Products | CSCA | |||||
Property, Plant and Equipment, Gross [Abstract] | |||||
Research and development | $ 50 | $ 50 | |||
Foreign currency forward contracts | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Maximum remaining maturity of foreign currency derivatives | 60 months |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Accounting for Credit Losses (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 6.7 |
Provision for credit losses, net | 2.9 |
Receivables written-off | (2.3) |
Recoveries collected | 0 |
Currency translation adjustment | 0.3 |
Ending balance | $ 7.6 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue by Geographic Location (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2020 | [1] | Sep. 30, 2020 | [2] | Jun. 30, 2020 | [3] | Mar. 31, 2020 | Dec. 31, 2019 | [4] | Sep. 28, 2019 | [5] | Jun. 29, 2019 | [6] | Mar. 30, 2019 | [7] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | $ 1,289.5 | $ 1,213.7 | $ 1,219.1 | $ 1,341 | $ 1,322.8 | $ 1,191.1 | $ 1,149 | $ 1,174.5 | $ 5,063.3 | [8] | $ 4,837.4 | [8] | $ 4,731.7 | [8] | ||||||||
United States | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | [8] | 3,441.1 | 3,225.6 | 3,098.3 | ||||||||||||||||||
Europe | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | [8],[9] | 1,350.6 | 1,335.8 | 1,347.6 | ||||||||||||||||||
All other countries | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | [8],[10] | 271.6 | 276 | 285.8 | ||||||||||||||||||
Ireland | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | $ 29.8 | $ 23.4 | $ 25.7 | |||||||||||||||||||
[1] | Includes change in financial assets of $122.3 million and impairment charges of $144.4 million. | |||||||||||||||||||||
[2] | Includes impairment charges of $202.4 million, change in financial assets of $22.2 million and loss on early debt extinguishment of $20.0 million. | |||||||||||||||||||||
[3] | Includes Rosemont Pharmaceuticals business pre-tax loss of $21.1 million. | |||||||||||||||||||||
[4] | Includes impairment charges of $141.6 million. | |||||||||||||||||||||
[5] | Includes animal health divestiture pre-tax gain of $71.7 million, Ranitidine market withdrawal charges of $18.4 million, acquisition-related charges and contingent consideration adjustments of $18.1 million, and impairment charges of $10.9 million. | |||||||||||||||||||||
[6] | Includes impairment charges of $27.8 million and restructuring charges and other termination benefits of $12.2 million. | |||||||||||||||||||||
[7] | Includes change in financial assets of $10.4 million. | |||||||||||||||||||||
[8] | The net sales by geography is derived from the location of the entity that sells to a third party. | |||||||||||||||||||||
[9] | Includes Ireland net sales of $29.8 million, $23.4 million, and $25.7 million for the years ended December 31, 2020, December 31, 2019, and December 31, 2018, respectively. | |||||||||||||||||||||
[10] | Includes revenue generated primarily in Israel, Mexico, Australia, and Canada. |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Revenue by Product (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2020 | [1] | Sep. 30, 2020 | [2] | Jun. 30, 2020 | [3] | Mar. 31, 2020 | Dec. 31, 2019 | [4] | Sep. 28, 2019 | [5] | Jun. 29, 2019 | [6] | Mar. 30, 2019 | [7] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | $ 1,289.5 | $ 1,213.7 | $ 1,219.1 | $ 1,341 | $ 1,322.8 | $ 1,191.1 | $ 1,149 | $ 1,174.5 | $ 5,063.3 | [8] | $ 4,837.4 | [8] | $ 4,731.7 | [8] | ||||||||
CSCA | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | [9] | 2,693 | 2,487.7 | 2,411.6 | ||||||||||||||||||
CSCA | Upper respiratory | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | [9] | 489.5 | 515.2 | 492.5 | ||||||||||||||||||
CSCA | Digestive health | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | [9] | 452.6 | 413.9 | 403.6 | ||||||||||||||||||
CSCA | Pain and sleep-aids | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | [9] | 424.7 | 383.6 | 388.1 | ||||||||||||||||||
CSCA | Nutrition | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | [9] | 387.4 | 394.4 | 432.4 | ||||||||||||||||||
CSCA | Healthy lifestyle | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | [9] | 348.5 | 352.4 | 333.6 | ||||||||||||||||||
CSCA | Oral self-care | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | [9] | 284.6 | 106.4 | 0 | ||||||||||||||||||
CSCA | Skincare and personal hygiene | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | [9] | 191.8 | 182.9 | 164.1 | ||||||||||||||||||
CSCA | Vitamins, minerals and supplements | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | [9] | 27 | 28.6 | 26.1 | ||||||||||||||||||
CSCA | Animal health | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | [9] | 0 | 43.7 | 93.9 | ||||||||||||||||||
CSCA | Other CSCA | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | [10] | 86.9 | 66.6 | 77.3 | ||||||||||||||||||
CSCI | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | 1,395.2 | 1,382.2 | 1,399.3 | |||||||||||||||||||
CSCI | Upper respiratory | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | 255.1 | 276.8 | 276.5 | |||||||||||||||||||
CSCI | Digestive health | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | 26.5 | 27.1 | 29.5 | |||||||||||||||||||
CSCI | Pain and sleep-aids | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | 190.4 | 167.9 | 170 | |||||||||||||||||||
CSCI | Healthy lifestyle | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | 165.4 | 173.8 | 180.7 | |||||||||||||||||||
CSCI | Oral self-care | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | 97.8 | 51.2 | 8.9 | |||||||||||||||||||
CSCI | Skincare and personal hygiene | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | 351.8 | 371.6 | 396.5 | |||||||||||||||||||
CSCI | Vitamins, minerals and supplements | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | 201 | 180.2 | 187.2 | |||||||||||||||||||
CSCI | Other CSCI | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | [11] | 107.2 | 133.6 | 150 | ||||||||||||||||||
RX | ||||||||||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||||||||||
Net sales | $ 975.1 | $ 967.5 | $ 920.8 | |||||||||||||||||||
[1] | Includes change in financial assets of $122.3 million and impairment charges of $144.4 million. | |||||||||||||||||||||
[2] | Includes impairment charges of $202.4 million, change in financial assets of $22.2 million and loss on early debt extinguishment of $20.0 million. | |||||||||||||||||||||
[3] | Includes Rosemont Pharmaceuticals business pre-tax loss of $21.1 million. | |||||||||||||||||||||
[4] | Includes impairment charges of $141.6 million. | |||||||||||||||||||||
[5] | Includes animal health divestiture pre-tax gain of $71.7 million, Ranitidine market withdrawal charges of $18.4 million, acquisition-related charges and contingent consideration adjustments of $18.1 million, and impairment charges of $10.9 million. | |||||||||||||||||||||
[6] | Includes impairment charges of $27.8 million and restructuring charges and other termination benefits of $12.2 million. | |||||||||||||||||||||
[7] | Includes change in financial assets of $10.4 million. | |||||||||||||||||||||
[8] | The net sales by geography is derived from the location of the entity that sells to a third party. | |||||||||||||||||||||
[9] | Includes net sales from our OTC contract manufacturing business. | |||||||||||||||||||||
[10] | Consists primarily of diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales. | |||||||||||||||||||||
[11] | Consists primarily of liquid licensed products, our distribution business and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales. |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2020 | [1] | Sep. 30, 2020 | [2] | Jun. 30, 2020 | [3] | Mar. 31, 2020 | Dec. 31, 2019 | [4] | Sep. 28, 2019 | [5] | Jun. 29, 2019 | [6] | Mar. 30, 2019 | [7] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||
Net sales | $ 1,289.5 | $ 1,213.7 | $ 1,219.1 | $ 1,341 | $ 1,322.8 | $ 1,191.1 | $ 1,149 | $ 1,174.5 | $ 5,063.3 | [8] | $ 4,837.4 | [8] | $ 4,731.7 | [8] | |||||||
Contract manufacturing | |||||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||||
Net sales | $ 262.4 | $ 286.8 | $ 300.5 | ||||||||||||||||||
[1] | Includes change in financial assets of $122.3 million and impairment charges of $144.4 million. | ||||||||||||||||||||
[2] | Includes impairment charges of $202.4 million, change in financial assets of $22.2 million and loss on early debt extinguishment of $20.0 million. | ||||||||||||||||||||
[3] | Includes Rosemont Pharmaceuticals business pre-tax loss of $21.1 million. | ||||||||||||||||||||
[4] | Includes impairment charges of $141.6 million. | ||||||||||||||||||||
[5] | Includes animal health divestiture pre-tax gain of $71.7 million, Ranitidine market withdrawal charges of $18.4 million, acquisition-related charges and contingent consideration adjustments of $18.1 million, and impairment charges of $10.9 million. | ||||||||||||||||||||
[6] | Includes impairment charges of $27.8 million and restructuring charges and other termination benefits of $12.2 million. | ||||||||||||||||||||
[7] | Includes change in financial assets of $10.4 million. | ||||||||||||||||||||
[8] | The net sales by geography is derived from the location of the entity that sells to a third party. |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of Contract Balances (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Short-term contract assets | $ 19.7 | $ 26.3 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Acquisitions (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Feb. 13, 2020 | Jan. 03, 2020 | Nov. 29, 2019 | Jul. 02, 2019 | May 17, 2019 | Apr. 01, 2019 | Aug. 24, 2018 | May 29, 2018 | Jan. 31, 2021 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||||||||||||||
Research and development | $ 177.7 | $ 187.4 | $ 218.6 | |||||||||||||
Steripod | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Purchase price paid | $ 26 | |||||||||||||||
CSCA | Merck Sharp & Dohme License Agreement | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Research and development | $ 50 | $ 50 | ||||||||||||||
Developed product technology, formulations, and product rights | Generic Product Acquisition | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Purchase price | $ 16.4 | $ 15.7 | ||||||||||||||
Weighted-average useful life (in years) | 20 years | 20 years | ||||||||||||||
Developed product technology, formulations, and product rights | Budesonide Nasal Spray and Triamcinolone Nasal Spray | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Purchase price | $ 14 | |||||||||||||||
Weighted-average useful life (in years) | 10 years | |||||||||||||||
Income from sales owned by Company (percent) | 100.00% | |||||||||||||||
Developed product technology, formulations, and product rights | RX | Generic Product Acquisition | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Purchase price | $ 49 | |||||||||||||||
Brand | Dexsil | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Purchase price | $ 8 | |||||||||||||||
Weighted-average useful life (in years) | 25 years | |||||||||||||||
Brand | Steripod | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Weighted-average useful life (in years) | 25 years | |||||||||||||||
Capitalized intangible assets | $ 25.1 | |||||||||||||||
Brand | CSCA | Branded OTC Rights of Prevacid | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Purchase price | $ 61.5 | |||||||||||||||
Weighted-average useful life (in years) | 20 years | |||||||||||||||
Capitalized intangible assets | $ 61.7 | |||||||||||||||
ANDA | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Research and development | $ 2.5 | $ 0.7 | ||||||||||||||
ANDA | Developed product technology, formulations, and product rights | Generic Product Acquisition | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Purchase price | $ 30.4 | |||||||||||||||
ANDA | Developed product technology, formulations, and product rights | RX | Generic Product Acquisition | Subsequent Event | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Weighted-average useful life (in years) | 20 years |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Consideration Paid and Provisional Assets Acquired and Liabilities Assumed (Details) € in Millions, $ in Millions | Oct. 30, 2020USD ($)brand | Oct. 30, 2020EUR (€)brand | Apr. 01, 2020USD ($) | Jul. 01, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Business Acquisition [Line Items] | |||||||||||
Cash consideration - net of cash acquired | $ 168.5 | $ 747.7 | $ 0 | ||||||||
Assets acquired: | |||||||||||
Goodwill | $ 3,768.8 | $ 4,116.7 | $ 3,768.8 | 3,768.8 | 4,116.7 | 3,979.8 | |||||
Liabilities assumed: | |||||||||||
Adjustment to goodwill | 1.6 | ||||||||||
Sanofi Brands | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of brands acquired | brand | 3 | 3 | |||||||||
Purchase consideration | $ 62.3 | € 53.3 | |||||||||
Prepayment of contract consideration | 2 | 2 | 2 | ||||||||
Liabilities assumed: | |||||||||||
Finite lived assets, useful life | 18 years 9 months 18 days | 18 years 9 months 18 days | |||||||||
Oral Care Assets of High Ridge Brands (Dr. Fresh) | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase consideration | $ 113 | ||||||||||
Purchase price paid | 106.2 | ||||||||||
General transaction costs | 4.4 | ||||||||||
Net sales since acquisition | 72.3 | ||||||||||
Net income since acquisition | 2.1 | ||||||||||
Inventory costs stepped up to acquisition date fair value | 2 | ||||||||||
Assets acquired: | |||||||||||
Accounts receivable | 13.1 | 13.1 | 13.1 | ||||||||
Inventories | 22.2 | 22.2 | 22.2 | ||||||||
Prepaid expenses and other current assets | 0.4 | 0.4 | 0.4 | ||||||||
Property, plant and equipment, net | 0.7 | 0.7 | 0.7 | ||||||||
Operating lease assets | 2.6 | 2.6 | 2.6 | ||||||||
Goodwill | 17.2 | 17.2 | 17.2 | ||||||||
Total intangible assets | 66.1 | 66.1 | 66.1 | ||||||||
Total assets | 122.3 | 122.3 | 122.3 | ||||||||
Liabilities assumed: | |||||||||||
Accounts payable | 6.1 | 6.1 | 6.1 | ||||||||
Other accrued liabilities | 3.8 | 3.8 | 3.8 | ||||||||
Payroll and related taxes | 0.7 | 0.7 | 0.7 | ||||||||
Accrued customer programs | 3 | 3 | 3 | ||||||||
Other non-current liabilities | 2.5 | 2.5 | 2.5 | ||||||||
Total liabilities | 16.1 | 16.1 | 16.1 | ||||||||
Net assets acquired | 106.2 | 106.2 | 106.2 | ||||||||
Finite lived assets, useful life | 17 years 9 months 18 days | ||||||||||
Adjustment to reduce the acquired value of inventory | (1.2) | ||||||||||
Adjustment to goodwill | 1.2 | ||||||||||
Adjustment to cost of sales | (1.2) | ||||||||||
Ranir Global Holdings, LLC | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price paid | $ 759.2 | ||||||||||
Percentage of interest acquired | 100.00% | ||||||||||
Base consideration transferred | $ 750 | ||||||||||
Cash consideration - net of cash acquired | 747.7 | ||||||||||
Net sales since acquisition | 151.4 | ||||||||||
Net income since acquisition | 7.6 | ||||||||||
Inventory costs stepped up to acquisition date fair value | 5.7 | ||||||||||
Assets acquired: | |||||||||||
Cash and cash equivalents | 11.5 | ||||||||||
Accounts receivable | 40.6 | ||||||||||
Inventories | 59 | ||||||||||
Prepaid expenses and other current assets | 4 | ||||||||||
Property, plant and equipment, net | 40.8 | ||||||||||
Operating lease assets | 3.7 | ||||||||||
Goodwill | 292.7 | ||||||||||
Total intangible assets | 389.3 | ||||||||||
Other non-current assets | 2.8 | ||||||||||
Total assets | 844.4 | ||||||||||
Liabilities assumed: | |||||||||||
Accounts payable | 17.6 | ||||||||||
Other accrued liabilities | 7.7 | ||||||||||
Payroll and related taxes | 5.5 | ||||||||||
Accrued customer programs | 5.7 | ||||||||||
Deferred income taxes | 45.9 | ||||||||||
Other non-current liabilities | 2.8 | ||||||||||
Total liabilities | 85.2 | ||||||||||
Net assets acquired | 759.2 | ||||||||||
Tax deductible goodwill | 252.3 | ||||||||||
In-process research and development | Ranir Global Holdings, LLC | |||||||||||
Assets acquired: | |||||||||||
Indefinite-lived intangibles | 39.7 | ||||||||||
CSCA | |||||||||||
Assets acquired: | |||||||||||
Goodwill | 1,905 | 1,899.1 | 1,905 | 1,905 | 1,899.1 | 1,713.7 | |||||
Liabilities assumed: | |||||||||||
Adjustment to goodwill | (10.4) | ||||||||||
CSCA | Ranir Global Holdings, LLC | |||||||||||
Assets acquired: | |||||||||||
Goodwill | 212.6 | 212.6 | 212.6 | ||||||||
CSCI | |||||||||||
Assets acquired: | |||||||||||
Goodwill | [1] | 1,190.7 | $ 1,203.7 | 1,190.7 | 1,190.7 | $ 1,203.7 | $ 1,151.3 | ||||
Liabilities assumed: | |||||||||||
Adjustment to goodwill | [1] | 12 | |||||||||
CSCI | Ranir Global Holdings, LLC | |||||||||||
Assets acquired: | |||||||||||
Goodwill | 80.1 | 80.1 | 80.1 | ||||||||
Distribution and License Agreements and Supply Agreements | Oral Care Assets of High Ridge Brands (Dr. Fresh) | |||||||||||
Assets acquired: | |||||||||||
Definite-lived intangibles | 2.2 | 2.2 | 2.2 | ||||||||
Developed product technology, formulations, and product rights | Oral Care Assets of High Ridge Brands (Dr. Fresh) | |||||||||||
Assets acquired: | |||||||||||
Definite-lived intangibles | 0.1 | 0.1 | 0.1 | ||||||||
Developed product technology, formulations, and product rights | Ranir Global Holdings, LLC | |||||||||||
Assets acquired: | |||||||||||
Definite-lived intangibles | $ 48.6 | ||||||||||
Liabilities assumed: | |||||||||||
Finite lived assets, useful life | 10 years | ||||||||||
Customer relationships and distribution networks | Oral Care Assets of High Ridge Brands (Dr. Fresh) | |||||||||||
Assets acquired: | |||||||||||
Definite-lived intangibles | 20.6 | 20.6 | 20.6 | ||||||||
Customer relationships and distribution networks | Ranir Global Holdings, LLC | |||||||||||
Assets acquired: | |||||||||||
Definite-lived intangibles | $ 260 | ||||||||||
Liabilities assumed: | |||||||||||
Finite lived assets, useful life | 24 years | ||||||||||
Trademarks, trade names, and brands | Sanofi Brands | |||||||||||
Assets acquired: | |||||||||||
Definite-lived intangibles | $ 52.5 | ||||||||||
Trademarks, trade names, and brands | Oral Care Assets of High Ridge Brands (Dr. Fresh) | |||||||||||
Assets acquired: | |||||||||||
Definite-lived intangibles | $ 43.2 | $ 43.2 | $ 43.2 | ||||||||
Trademarks, trade names, and brands | Ranir Global Holdings, LLC | |||||||||||
Assets acquired: | |||||||||||
Definite-lived intangibles | $ 41 | ||||||||||
Minimum | Trademarks, trade names, and brands | Ranir Global Holdings, LLC | |||||||||||
Liabilities assumed: | |||||||||||
Finite lived assets, useful life | 20 years | ||||||||||
Maximum | Trademarks, trade names, and brands | Ranir Global Holdings, LLC | |||||||||||
Liabilities assumed: | |||||||||||
Finite lived assets, useful life | 25 years | ||||||||||
[1] | (1) We had accumulated goodwill impairments of $868.4 million as of December 31, 2019 and December 31, 2020. |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Pro Forma Impact of Ranir Acquisition (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Combinations [Abstract] | |||
Net sales | $ 5,111.5 | $ 5,112.3 | $ 5,018.9 |
Net income (loss) | $ (148.6) | $ 172.4 | $ 96.8 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Divestitures (Details) £ in Millions, $ in Millions | Jun. 19, 2020USD ($) | Jun. 19, 2020GBP (£) | Jul. 08, 2019USD ($) | Sep. 28, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||||||
Net proceeds from sale of business | $ 187.8 | $ 182.5 | $ 5.2 | ||||
Gain (loss) on sale of business | $ 71.7 | $ (20.9) | $ 71.7 | $ 0 | |||
Rosemont Pharmaceuticals | CSCI | |||||||
Business Acquisition [Line Items] | |||||||
Net proceeds from sale of business | $ 195 | £ 155.6 | |||||
Gain (loss) on sale of business | (21.1) | ||||||
Foreign currency translation adjustment | $ (46.4) | ||||||
Animal health | CSCA | |||||||
Business Acquisition [Line Items] | |||||||
Net proceeds from sale of business | $ 182.5 | ||||||
Gain (loss) on sale of business | $ 71.7 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Roll Forward (Details) - USD ($) $ in Millions | Sep. 26, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
Goodwill [Roll Forward] | ||||||||||
Beginning balance | $ 4,116.7 | $ 3,979.8 | ||||||||
Impairments | (346.8) | (109.2) | ||||||||
Business divestitures | (115.6) | (42.2) | ||||||||
Business acquisitions | 22.1 | 291.1 | ||||||||
Purchase accounting adjustments | 1.6 | |||||||||
Currency translation adjustments | 90.8 | (2.8) | ||||||||
Ending balance | $ 4,116.7 | $ 3,768.8 | 3,768.8 | 4,116.7 | ||||||
CSCA | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Beginning balance | 1,899.1 | 1,713.7 | ||||||||
Impairments | 0 | 0 | ||||||||
Business divestitures | 0 | (42.2) | ||||||||
Business acquisitions | 14.8 | 223 | ||||||||
Purchase accounting adjustments | (10.4) | |||||||||
Currency translation adjustments | 1.5 | 4.6 | ||||||||
Ending balance | 1,899.1 | 1,905 | 1,905 | 1,899.1 | ||||||
CSCI | ||||||||||
Goodwill [Line Items] | ||||||||||
Accumulated impairments | (868.4) | (868.4) | (868.4) | (868.4) | ||||||
Goodwill [Roll Forward] | ||||||||||
Beginning balance | [1] | 1,203.7 | 1,151.3 | |||||||
Impairments | [1] | 0 | 0 | |||||||
Business divestitures | [1] | (115.6) | 0 | |||||||
Business acquisitions | [1] | 7.3 | 68.1 | |||||||
Purchase accounting adjustments | [1] | 12 | ||||||||
Currency translation adjustments | [1] | 83.3 | (15.7) | |||||||
Ending balance | [1] | 1,203.7 | 1,190.7 | 1,190.7 | 1,203.7 | |||||
RX | ||||||||||
Goodwill [Line Items] | ||||||||||
Accumulated impairments | (109.2) | (456) | (456) | (109.2) | ||||||
Goodwill [Roll Forward] | ||||||||||
Beginning balance | [2] | 1,013.9 | 1,114.8 | |||||||
Impairments | $ (202.4) | (109.2) | (144.4) | (346.8) | [2] | (109.2) | [2] | |||
Business divestitures | [2] | 0 | 0 | |||||||
Business acquisitions | [2] | 0 | 0 | |||||||
Purchase accounting adjustments | [2] | 0 | ||||||||
Currency translation adjustments | [2] | 6 | 8.3 | |||||||
Ending balance | $ 811.1 | $ 1,013.9 | [2] | $ 673.1 | [2] | $ 673.1 | [2] | $ 1,013.9 | [2] | |
[1] | (1) We had accumulated goodwill impairments of $868.4 million as of December 31, 2019 and December 31, 2020. | |||||||||
[2] | We had accumulated goodwill impairments of $109.2 million and $456.0 million as of December 31, 2019 and December 31, 2020, respectivel |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets Narrative (Details) - USD ($) | Mar. 01, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Dec. 31, 2019 | Sep. 29, 2018 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Sep. 29, 2018 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | ||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Cash consideration in definitive agreement to sell | $ 187,800,000 | $ 182,500,000 | $ 5,200,000 | |||||||||||||||||||||
Goodwill impairment charge | 346,800,000 | 109,200,000 | ||||||||||||||||||||||
Goodwill | $ 4,116,700,000 | $ 3,768,800,000 | $ 4,116,700,000 | $ 3,768,800,000 | 3,768,800,000 | 4,116,700,000 | 3,979,800,000 | |||||||||||||||||
Impairment charges | 144,400,000 | $ 202,400,000 | 141,600,000 | $ 10,900,000 | $ 27,800,000 | 346,800,000 | 184,500,000 | 224,400,000 | ||||||||||||||||
Amortization of intangible assets | 294,700,000 | 305,500,000 | 333,600,000 | |||||||||||||||||||||
Impairment of intangible assets, indefinite-lived | $ 18,100,000 | |||||||||||||||||||||||
RX | Subsequent Event | ||||||||||||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Total consideration in definitive agreement to sell | $ 1,550,000,000 | |||||||||||||||||||||||
Cash consideration in definitive agreement to sell | 1,500,000,000 | |||||||||||||||||||||||
R&D milestone payments assumed by purchaser in definitive agreement to sell | $ 50,000,000 | |||||||||||||||||||||||
RX | ||||||||||||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Goodwill impairment charge | $ 202,400,000 | 109,200,000 | 144,400,000 | 346,800,000 | [1] | 109,200,000 | [1] | |||||||||||||||||
Goodwill | $ 811,100,000 | 1,013,900,000 | [1] | 673,100,000 | [1] | 1,013,900,000 | [1] | 673,100,000 | [1] | 673,100,000 | [1] | 1,013,900,000 | [1] | 1,114,800,000 | [1] | |||||||||
Reporting unit, percentage of fair value in excess of carrying amount (RX US more than percent in Sept. 2018, less than % at Dec. 31, 2019; CSC UK and Australia less than %; BCS and Oral Care International less than %; CSCA and Rx UK greater than %) | 10.00% | 25.00% | ||||||||||||||||||||||
Impairment charges | $ 0 | |||||||||||||||||||||||
CSCI | ||||||||||||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Goodwill impairment charge | [2] | 0 | 0 | |||||||||||||||||||||
Goodwill | [2] | 1,203,700,000 | 1,190,700,000 | 1,203,700,000 | 1,190,700,000 | 1,190,700,000 | 1,203,700,000 | 1,151,300,000 | ||||||||||||||||
CSCA | ||||||||||||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Goodwill impairment charge | 0 | 0 | ||||||||||||||||||||||
Goodwill | $ 1,899,100,000 | 1,905,000,000 | $ 1,899,100,000 | 1,905,000,000 | 1,905,000,000 | 1,899,100,000 | 1,713,700,000 | |||||||||||||||||
Generic Product Acquisition | RX | ||||||||||||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Impairment of intangible assets, definite-lived intangible | 27,800,000 | |||||||||||||||||||||||
In-process research and development | ||||||||||||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Impairment of intangible assets, indefinite-lived | 5,800,000 | $ 8,700,000 | ||||||||||||||||||||||
Generic Benzaclin Product | RX | ||||||||||||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Impairment of intangible assets, definite-lived intangible | 21,200,000 | |||||||||||||||||||||||
Licensed Pain Relief Products | CSCI | ||||||||||||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Impairment of intangible assets, definite-lived intangible | 9,700,000 | |||||||||||||||||||||||
Evamist Branded Product | RX | ||||||||||||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Impairment of intangible assets, definite-lived intangible | $ 10,800,000 | |||||||||||||||||||||||
Animal health | CSCA | ||||||||||||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Goodwill impairment charge | $ 136,700,000 | |||||||||||||||||||||||
Reclassified intangible assets | $ 5,400,000 | |||||||||||||||||||||||
Animal health | Brand | CSCA | ||||||||||||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Impairment of intangible assets, definite-lived intangible | 27,700,000 | |||||||||||||||||||||||
Animal health | Developed Product Technology and Distribution Agreements | CSCA | ||||||||||||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Impairment of intangible assets, definite-lived intangible | 41,600,000 | |||||||||||||||||||||||
Animal health | Supply Agreement | CSCA | ||||||||||||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Impairment of intangible assets, definite-lived intangible | 2,800,000 | |||||||||||||||||||||||
Animal health | Trade name and trademark | CSCA | ||||||||||||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Impairment of intangible assets, definite-lived intangible | $ 4,500,000 | |||||||||||||||||||||||
BCS | CSCI | ||||||||||||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||||||||||||
Goodwill impairment charge | $ 0 | 0 | ||||||||||||||||||||||
Goodwill | $ 1,049,200,000 | $ 1,049,200,000 | $ 1,049,200,000 | |||||||||||||||||||||
Reporting unit, percentage of fair value in excess of carrying amount (RX US more than percent in Sept. 2018, less than % at Dec. 31, 2019; CSC UK and Australia less than %; BCS and Oral Care International less than %; CSCA and Rx UK greater than %) | 10.00% | |||||||||||||||||||||||
[1] | We had accumulated goodwill impairments of $109.2 million and $456.0 million as of December 31, 2019 and December 31, 2020, respectivel | |||||||||||||||||||||||
[2] | (1) We had accumulated goodwill impairments of $868.4 million as of December 31, 2019 and December 31, 2020. |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Indefinite-lived intangible assets, gross | $ 15.1 | $ 68.8 |
Definite lived assets, gross | 5,016.5 | 4,685.1 |
Accumulated Amortization | 2,042.2 | 1,763.9 |
Total other intangible assets | 5,031.6 | 4,753.9 |
Distribution and license agreements and supply agreements | ||
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Definite lived assets, gross | 126.5 | 126.7 |
Accumulated Amortization | 87.5 | 81.1 |
Developed product technology, formulations, and product rights | ||
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Definite lived assets, gross | 1,363.6 | 1,392.8 |
Accumulated Amortization | 765.9 | 755.3 |
Customer relationships and distribution networks | ||
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Definite lived assets, gross | 1,934.6 | 1,805.6 |
Accumulated Amortization | 836.4 | 671.4 |
Trademarks, trade names, and brands | ||
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Definite lived assets, gross | 1,586.6 | 1,353.5 |
Accumulated Amortization | 347.2 | 250.1 |
Non-compete agreements | ||
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Definite lived assets, gross | 5.2 | 6.5 |
Accumulated Amortization | 5.2 | 6 |
Trademarks, trade names, and brands | ||
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Indefinite-lived intangible assets, gross | 4.3 | 18.8 |
In-process research and development | ||
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Indefinite-lived intangible assets, gross | $ 10.8 | $ 50 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Intangible Asset Remaining Weighted-Average Useful Life (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Distribution and license agreements and supply agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining Weighted-Average Useful Life (Years) | 7 years |
Developed product technology, formulations, and product rights | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining Weighted-Average Useful Life (Years) | 12 years |
Customer relationships and distribution networks | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining Weighted-Average Useful Life (Years) | 16 years |
Trademarks, trade names, and brands | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining Weighted-Average Useful Life (Years) | 16 years |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Millions | Dec. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2021 | $ 282.2 |
2022 | 252.7 |
2023 | 237.3 |
2024 | 225.4 |
2025 | 214.8 |
Thereafter | $ 1,761.9 |
Accounts Receivable Factoring (
Accounts Receivable Factoring (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Receivable Factoring [Abstract] | ||
Accounts receivable factored and excluded from balance sheet | $ 6.9 | $ 10 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 679.4 | $ 530.3 |
Work in process | 221.7 | 186.9 |
Raw materials | 299.1 | 250.1 |
Total inventories | $ 1,200.2 | $ 967.3 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Sep. 26, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Assets: | |||||||||
Goodwill | $ 3,768.8 | $ 4,116.7 | $ 3,979.8 | ||||||
Definite-lived intangible assets, net | 2,974.3 | 2,921.2 | |||||||
Recurring | Level 1 | |||||||||
Assets: | |||||||||
Investment securities | 2.5 | 6.6 | |||||||
Foreign currency forward contracts | 0 | 0 | |||||||
Cross-currency swap | 0 | 0 | |||||||
Funds associated with Israeli severance liability | 0 | 0 | |||||||
Royalty Pharma contingent milestone payments | 0 | 0 | |||||||
Total assets | 2.5 | 6.6 | |||||||
Liabilities: | |||||||||
Foreign currency forward contracts | 0 | 0 | |||||||
Contingent consideration | 0 | 0 | |||||||
Total liabilities | 0 | 0 | |||||||
Recurring | Level 2 | |||||||||
Assets: | |||||||||
Investment securities | 0 | 0 | |||||||
Foreign currency forward contracts | 21.5 | 4.3 | |||||||
Cross-currency swap | 6.3 | 26.3 | |||||||
Funds associated with Israeli severance liability | 15.7 | 14.6 | |||||||
Royalty Pharma contingent milestone payments | 0 | 0 | |||||||
Total assets | 43.5 | 45.2 | |||||||
Liabilities: | |||||||||
Foreign currency forward contracts | 8.2 | 8.4 | |||||||
Contingent consideration | 0 | 0 | |||||||
Total liabilities | 8.2 | 8.4 | |||||||
Recurring | Level 3 | |||||||||
Assets: | |||||||||
Investment securities | 0 | 0 | |||||||
Foreign currency forward contracts | 0 | 0 | |||||||
Cross-currency swap | 0 | 0 | |||||||
Funds associated with Israeli severance liability | 0 | 0 | |||||||
Royalty Pharma contingent milestone payments | 0 | 95.3 | |||||||
Total assets | 0 | 95.3 | |||||||
Liabilities: | |||||||||
Foreign currency forward contracts | 0 | 0 | |||||||
Contingent consideration | 13.2 | 11.9 | 15.3 | $ 22 | |||||
Total liabilities | 13.2 | 11.9 | |||||||
Nonrecurring | |||||||||
Assets: | |||||||||
Definite-lived intangible assets, net | 55.3 | ||||||||
Nonrecurring | Level 1 | |||||||||
Assets: | |||||||||
Goodwill | [1] | 0 | 0 | ||||||
Definite-lived intangible assets | [2] | 0 | 0 | ||||||
Total assets | 0 | 0 | |||||||
Nonrecurring | Level 2 | |||||||||
Assets: | |||||||||
Goodwill | [1] | 0 | 0 | ||||||
Definite-lived intangible assets | [2] | 0 | 0 | ||||||
Total assets | 0 | 0 | |||||||
Nonrecurring | Level 3 | |||||||||
Assets: | |||||||||
Goodwill | [1] | 673.1 | 1,013.1 | ||||||
Definite-lived intangible assets | [2] | 0 | 23.3 | ||||||
Total assets | 673.1 | 1,036.4 | |||||||
CSCA | |||||||||
Assets: | |||||||||
Goodwill | 1,905 | 1,899.1 | 1,713.7 | ||||||
CSCA | Nonrecurring | |||||||||
Assets: | |||||||||
Goodwill | 1,019.9 | ||||||||
RX | |||||||||
Assets: | |||||||||
Goodwill | $ 673.1 | [3] | $ 811.1 | 1,013.9 | [3] | $ 1,114.8 | [3] | ||
RX | Nonrecurring | |||||||||
Assets: | |||||||||
Goodwill | $ 1,122.3 | ||||||||
[1] | During the year ended December 31, 2020, goodwill with a carrying amount of $1,019.9 million was written down to a fair value of $673.1 million. During the year ended December 31, 2019, goodwill with a carrying amount of $1,122.3 million was written down to a fair value of $1,013.1 million. | ||||||||
[2] | During the year ended December 31, 2019, definite-lived intangible assets with a carrying amount of $55.3 million were written down to a fair value of $23.3 million. | ||||||||
[3] | We had accumulated goodwill impairments of $109.2 million and $456.0 million as of December 31, 2019 and December 31, 2020, respectivel |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net proceeds from sale of business | $ 187.8 | $ 182.5 | $ 5.2 | |
Royalty Pharma | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Sale price of divestiture - cash plus non-cash | $ 2,850 | |||
Net proceeds from sale of business | 2,200 | |||
Contingent proceeds from divestiture of business, milestone one, maximum | 250 | |||
Contingent proceeds from divestiture of business, milestone two, maximum | $ 400 | |||
Volatility (percent) | 30.00% | |||
Rate of return (percent) | 7.92% | |||
Royalty Pharma Contingent Milestone Payments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Royalty Pharma contingent payment sales threshold | 400 | |||
Net sales threshold to trigger milestone payment | 351 | |||
Net sales included in calculation for milestone payment | 337.5 | |||
Royalty Pharma Contingent Milestone Payments | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net proceeds from sale of business | $ 250 | |||
Increase (decrease) in fair value of milestone payment | $ (95.3) | $ 22.1 | ||
Royalty Pharma 2018 Contingent Milestone Payments | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Increase (decrease) in fair value of milestone payment | 170.1 | |||
Royalty Pharma 2020 Contingent Milestone Payments | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Increase (decrease) in fair value of milestone payment | $ 18.6 | |||
Long-term growth rate | CSCA | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discounted cash flow (percent) | 0.025 | |||
Indefinite-lived intangible assets, measurement input (percent) | (0.003) | |||
Long-term growth rate | RX | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Indefinite-lived intangible assets, measurement input (percent) | 0 | |||
Discount rate | CSCA | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discounted cash flow (percent) | 0.098 | |||
Indefinite-lived intangible assets, measurement input (percent) | 0.098 | |||
Discount rate | RX | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discounted cash flow (percent) | 0.10 | |||
Tax rate | CSCA | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discounted cash flow (percent) | 0.228 | |||
Indefinite-lived intangible assets, measurement input (percent) | 0.228 | |||
Minimum | Tax rate | RX | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discounted cash flow (percent) | 0.191 | |||
Maximum | Tax rate | RX | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discounted cash flow (percent) | 0.217 |
Fair Value Measurements - Royal
Fair Value Measurements - Royalty Pharma Contingent Milestone Payments (Details) - Level 3 - Recurring - Royalty Pharma Contingent Milestone Payments - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 95.3 | $ 323.2 |
Payments received | 0 | (250) |
Change in fair value | (95.3) | 22.1 |
Ending balance | $ 0 | $ 95.3 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Recurring Basis (Details) - Recurring - Level 3 - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 11.9 | $ 15.3 | $ 22 |
Changes in value | 1.3 | (1.4) | (1.5) |
Currency translation adjustments | 0 | 0 | 0.2 |
Settlements and other adjustments | 0 | (2) | (5) |
Ending balance | $ 13.2 | $ 11.9 | $ 15.3 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Contingent Consideration (Details) - Contingent Consideration $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($) | [1] | |
Projected royalties | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration payments, sales-based milestones | $ 36.6 | |
Discount rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration payments, sales-based milestones (percent) | 26.00% | |
[1] | Unobservable inputs were weighted based on the relative estimated milestone payments. |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 08, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Public bonds | $ 2,924.9 | $ 2,751.4 | $ 2,300 |
Public bonds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Public bonds | 3,031.1 | 2,618.4 | |
Private placement note | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value (excluding premium) | 177.5 | 168.4 | |
Reported Value Measurement | Public bonds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Public bonds | 2,760 | 2,600 | |
Reported Value Measurement | Private placement note | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value (excluding premium) | $ 164.9 | $ 151.4 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | Jun. 17, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Purchase of equity method investment | $ 15 | $ 0 | $ 0 | ||||
Impact of ASU 2016-01 | 5,655.1 | 5,803.8 | 5,668 | $ 6,170.5 | |||
Other (income) expense, net | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity securities, fair value method, other expense (inxcome) | 3 | 4.9 | 9.5 | ||||
Equity securites, equity method, other expense (income) | (3) | (2.7) | (2.7) | ||||
Kazmira, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | $ 50 | ||||||
Ownership interest (percent) | 20.00% | ||||||
Purchase of equity method investment | $ 15 | ||||||
Period for payment of balance of equity method investment | 18 months | ||||||
Retained Earnings (Accumulated Deficit) | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Impact of ASU 2016-01 | (1,858.1) | (1,695.5) | $ (1,838.3) | $ (1,975.5) | |||
Retained Earnings (Accumulated Deficit) | ASU 2016-01 | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Impact of ASU 2016-01 | $ 1 | ||||||
Prepaid expenses and other current assets | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity securities, fair value method | 2.5 | 6.6 | |||||
Other non-current assets | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity securities, fair value method | [1] | 1.9 | 2.3 | ||||
Equity method investments | $ 69.8 | $ 17.8 | |||||
[1] | (1) Measured at fair value using the Net Asset Value practical expedient. |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Details) - Dec. 31, 2020 € in Millions, $ in Millions | EUR (€) | USD ($) |
Cross-currency swap | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivatives | € 450 | $ 498 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Foreign Currency Forward Contracts (Details) - Foreign currency forward contracts - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Minimum remaining maturity of foreign currency derivatives | 1 month | |
Maximum remaining maturity of foreign currency derivatives | 60 months | |
Notional amount of derivatives | $ 1,209.8 | $ 1,257.2 |
Israeli Shekel (ILS) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 436.5 | 712.7 |
European Euro (EUR) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 312.6 | 157.6 |
United States Dollar (USD) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 101.5 | 92.4 |
British Pound (GBP) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 92.3 | 86.9 |
Danish Krone (DKK) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 65.2 | 51.7 |
Chinese Yuan (CNY) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 49.1 | 20.9 |
Swedish Krona (SEK) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 41.2 | 42 |
Canadian Dollar (CAD) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 36.8 | 41.3 |
Polish Zloty (PLZ) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 21.8 | 21.5 |
Mexican Peso (MPX) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 15.6 | 9.7 |
Australian Dollar (AUD) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 11.3 | 1.2 |
Switzerland Franc (CHF) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 8.2 | 4.1 |
Norwegian Krone (NOK) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 7.9 | 6.6 |
Romanian New Leu (RON) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 3.6 | 2.3 |
Other | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | $ 6.2 | $ 6.3 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Designated derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 20 | $ 27.3 |
Foreign currency forward contracts | Designated derivatives | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 13.2 | 1 |
Foreign currency forward contracts | Designated derivatives | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0.5 | 0 |
Foreign currency forward contracts | Designated derivatives | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 5.8 | 4.7 |
Foreign currency forward contracts | Non-designated derivatives | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 7.8 | 3.3 |
Foreign currency forward contracts | Non-designated derivatives | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 2.4 | 3.7 |
Cross-currency swap | Designated derivatives | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 6.3 | $ 26.3 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Effect of Cash Flow Hedges Included in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI, Cash flow hedges | $ 7.3 | [1] | $ (1.2) | |
Amount of Gain/(Loss) Recorded in OCI, Net investment hedges | [1] | (31.2) | ||
Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing | 1.7 | (3.6) | ||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 6.5 | |||
Gain (loss) on cash flow hedges to be reclassified during next 12 months | (6.4) | |||
Fair Value of Derivative Financial Instruments, net of tax | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings | 1.2 | 0.7 | ||
Treasury locks | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI, Cash flow hedges | 0 | [1] | 0 | |
Treasury locks | Net sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Treasury locks | Cost of sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Treasury locks | Interest expense, net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | (0.1) | (0.1) | ||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0 | 0 | ||
Interest rate swap agreements | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI, Cash flow hedges | 0 | [1] | 0 | |
Interest rate swap agreements | Net sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Interest rate swap agreements | Cost of sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Interest rate swap agreements | Interest expense, net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | (1.8) | (1.8) | ||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0 | 0 | ||
Foreign currency forward contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI, Cash flow hedges | 7.3 | [1] | (1.2) | |
Amount of Gain/(Loss) Recorded in OCI, Net investment hedges | [1] | (11.2) | ||
Foreign currency forward contracts | Net sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | 0.2 | 2.5 | ||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0.1 | (2.1) | ||
Foreign currency forward contracts | Cost of sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | 2.9 | 0.1 | ||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 1.1 | (1.5) | ||
Foreign currency forward contracts | Interest expense, net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | 0 | 0 | ||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0 | 0 | ||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | (0.1) | |||
Cross-currency swap | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI, Net investment hedges | (20) | [1] | 31.2 | |
Cross-currency swap | Interest expense, net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | $ 6.6 | $ 4.9 | ||
[1] | Net loss of $6.4 million is expected to be reclassified out of AOCI into earnings during the next 12 months. |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Amount of Gain (Loss) Recorded in OCI/Reclassified from AOCI into Earnings (Effective Portion) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain/(Loss) Recorded in OCI (Effective Portion) | $ (9.1) |
Treasury locks | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain/(Loss) Recorded in OCI (Effective Portion) | 0 |
Interest rate swap agreements | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain/(Loss) Recorded in OCI (Effective Portion) | 0 |
Foreign currency forward contracts | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain/(Loss) Recorded in OCI (Effective Portion) | (9.1) |
Designated derivatives | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | (2.2) |
Designated derivatives | Interest expense, net | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | (4.8) |
Designated derivatives | Other (Income) expense, net | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | 2.1 |
Designated derivatives | Cost of sales | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | 1.9 |
Designated derivatives | Treasury locks | Interest expense, net | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | (0.1) |
Designated derivatives | Interest rate swap agreements | Interest expense, net | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | (1.8) |
Designated derivatives | Foreign currency forward contracts | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | $ 0.5 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Non-Designated Derivatives (Details) - Non-designated derivatives - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income | $ (3.8) | $ (23.6) | $ 6.6 |
Foreign currency forward contracts | Other (Income) expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income | (10) | (25.4) | 7.6 |
Foreign currency forward contracts | Interest expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income | $ 6.2 | $ 1.8 | $ (1) |
Derivative Instruments and He_9
Derivative Instruments and Hedging Activities - Classification of Gain (Loss) of Cash Flow and Fair Value Hedging Relationships (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2020 | [1] | Sep. 30, 2020 | [2] | Jun. 30, 2020 | [3] | Mar. 31, 2020 | Dec. 31, 2019 | [4] | Sep. 28, 2019 | [5] | Jun. 29, 2019 | [6] | Mar. 30, 2019 | [7] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||
Net sales | $ 1,289.5 | $ 1,213.7 | $ 1,219.1 | $ 1,341 | $ 1,322.8 | $ 1,191.1 | $ 1,149 | $ 1,174.5 | $ 5,063.3 | [8] | $ 4,837.4 | [8] | $ 4,731.7 | [8] | |||||||
Cost of sales | 3,248.1 | 3,064.1 | 2,900.2 | ||||||||||||||||||
Interest expense, net | 131.2 | 121.7 | 128 | ||||||||||||||||||
Other (income) expense, net | 17.2 | (66) | $ 6.1 | ||||||||||||||||||
Foreign currency forward contracts | Net sales | |||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | 0.2 | 2.5 | |||||||||||||||||||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0.1 | (2.1) | |||||||||||||||||||
Foreign currency forward contracts | Cost of sales | |||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | 2.9 | 0.1 | |||||||||||||||||||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 1.1 | (1.5) | |||||||||||||||||||
Foreign currency forward contracts | Interest expense, net | |||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | 0 | 0 | |||||||||||||||||||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0 | 0 | |||||||||||||||||||
Foreign currency forward contracts | Other (income) expense, net | |||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | 0 | 0 | |||||||||||||||||||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0.5 | 0 | |||||||||||||||||||
Treasury locks | Net sales | |||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | 0 | 0 | |||||||||||||||||||
Treasury locks | Cost of sales | |||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | 0 | 0 | |||||||||||||||||||
Treasury locks | Interest expense, net | |||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | (0.1) | (0.1) | |||||||||||||||||||
Treasury locks | Other (income) expense, net | |||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | 0 | 0 | |||||||||||||||||||
Interest rate swap agreements | Net sales | |||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | 0 | 0 | |||||||||||||||||||
Interest rate swap agreements | Cost of sales | |||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | 0 | 0 | |||||||||||||||||||
Interest rate swap agreements | Interest expense, net | |||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | (1.8) | (1.8) | |||||||||||||||||||
Interest rate swap agreements | Other (income) expense, net | |||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | $ 0 | $ 0 | |||||||||||||||||||
[1] | Includes change in financial assets of $122.3 million and impairment charges of $144.4 million. | ||||||||||||||||||||
[2] | Includes impairment charges of $202.4 million, change in financial assets of $22.2 million and loss on early debt extinguishment of $20.0 million. | ||||||||||||||||||||
[3] | Includes Rosemont Pharmaceuticals business pre-tax loss of $21.1 million. | ||||||||||||||||||||
[4] | Includes impairment charges of $141.6 million. | ||||||||||||||||||||
[5] | Includes animal health divestiture pre-tax gain of $71.7 million, Ranitidine market withdrawal charges of $18.4 million, acquisition-related charges and contingent consideration adjustments of $18.1 million, and impairment charges of $10.9 million. | ||||||||||||||||||||
[6] | Includes impairment charges of $27.8 million and restructuring charges and other termination benefits of $12.2 million. | ||||||||||||||||||||
[7] | Includes change in financial assets of $10.4 million. | ||||||||||||||||||||
[8] | The net sales by geography is derived from the location of the entity that sells to a third party. |
Leases - Balance Sheet Location
Leases - Balance Sheet Location of Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | $ 186 | $ 129.9 | $ 164 |
Finance leases | 31 | 27.6 | |
Right-of-use assets | 217 | 157.5 | |
Present value of lease liabilities | 221.3 | 158.2 | |
Total operating lease liabilities | 193.3 | 133.7 | |
Present value of lease liabilities | $ 28 | $ 24.5 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:DebtCurrent | us-gaap:DebtCurrent | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtNoncurrent | us-gaap:LongTermDebtNoncurrent | |
Operating lease assets | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | $ 186 | $ 129.9 | |
Other non-current assets | |||
Lessee, Lease, Description [Line Items] | |||
Finance leases | 31 | 27.6 | |
Other accrued liabilities | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease liability, current | 34 | 32 | |
Current indebtedness | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease liability, current | 7.2 | 3.4 | |
Other non-current liabilities | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease liability, noncurrent | 159.3 | 101.7 | |
Long-term debt, less current portion | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease liability, noncurrent | 20.8 | 21.1 | |
CSCA | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | 22.8 | 22.4 | |
Finance leases | 16.7 | 16.8 | |
Total operating lease liabilities | 23.2 | 22.8 | |
Present value of lease liabilities | 17 | 16.6 | |
CSCI | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | 34.4 | 41.6 | |
Finance leases | 5.9 | 5.8 | |
Total operating lease liabilities | 35.2 | 42.4 | |
Present value of lease liabilities | 2.5 | 2.9 | |
RX | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | 84.4 | 35.1 | |
Finance leases | 1.2 | 0.8 | |
Total operating lease liabilities | 85.1 | 36.3 | |
Present value of lease liabilities | 1.1 | 0.8 | |
Unallocated | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | 44.4 | 30.8 | |
Finance leases | 7.2 | 4.2 | |
Total operating lease liabilities | 49.8 | 32.2 | |
Present value of lease liabilities | $ 7.4 | $ 4.2 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Leases [Abstract] | ||||
Operating leases | [1] | $ 43.4 | $ 43.7 | |
Finance leases | ||||
Amortization | 4.8 | 3.2 | ||
Interest | 0.8 | 0.6 | ||
Total finance leases | $ 5.6 | $ 3.8 | ||
Operating lease expense | $ 51.2 | |||
[1] | (1) Includes short-term leases and variable lease costs, which are immaterial |
Leases - Annual Future Maturiti
Leases - Annual Future Maturities of Leases (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2021 | $ 40 | |
2022 | 31.3 | |
2023 | 23.2 | |
2024 | 19.9 | |
2025 | 17.9 | |
After 2025 | 92 | |
Total lease payments | 224.3 | |
Less: Interest | 31 | |
Present value of lease liabilities | 193.3 | $ 133.7 |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2021 | 7.8 | |
2022 | 5 | |
2023 | 3.1 | |
2024 | 1.7 | |
2025 | 1.5 | |
After 2025 | 13.2 | |
Total lease payments | 32.3 | |
Less: Interest | 4.3 | |
Present value of lease liabilities | 28 | 24.5 |
Lease Liabilities, Payments, Due [Abstract] | ||
2021 | 47.8 | |
2022 | 36.3 | |
2023 | 26.3 | |
2024 | 21.6 | |
2025 | 19.4 | |
After 2025 | 105.2 | |
Total lease payments | 256.6 | |
Less: Interest | 35.3 | |
Present value of lease liabilities | $ 221.3 | $ 158.2 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Terms and Discount Rates (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term - operating leases | 10 years | 6 years 6 months 21 days |
Weighted-average remaining lease term - finance leases | 8 years 6 months 21 days | 10 years 3 months 29 days |
Weighted-average discount rate - operating leases | 3.24% | 4.11% |
Weighted-average discount rate - finance leases | 3.05% | 3.47% |
Leases - Cash Flow Classificati
Leases - Cash Flow Classifications (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ 41.9 | $ 43.9 |
Operating cash flows for finance leases | 0.8 | 0.6 |
Financing cash flows for finance leases | 4.4 | 3 |
Leased assets obtained in exchange for new finance lease liabilities | 7.6 | 20.2 |
Leased assets obtained in exchange for new operating lease liabilities | $ 86.9 | $ 10.3 |
Indebtedness - Borrowings Outst
Indebtedness - Borrowings Outstanding (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2020 | Jul. 06, 2020 | Jun. 19, 2020 | Dec. 31, 2019 | Mar. 07, 2016 | Dec. 02, 2014 | Nov. 08, 2013 | ||
Debt Instrument [Line Items] | ||||||||
Senior notes | $ 2,924.9 | $ 2,751.4 | $ 2,300 | |||||
Other financing | 58.6 | 24.6 | ||||||
Unamortized premium (discount), net | (0.3) | 7.3 | ||||||
Deferred financing fees | (17.1) | (14.1) | ||||||
Total borrowings outstanding | 3,566.1 | 3,369.2 | ||||||
Current indebtedness | (37.8) | (3.4) | ||||||
Total long-term debt, less current portion | 3,528.3 | 3,365.8 | ||||||
2019 Euro-Denominated Term Loan due August 15, 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loans | $ 600 | 600 | ||||||
3.500% Unsecured Senior notes due March 15, 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 3.50% | 3.50% | 3.50% | |||||
Debt instrument, description | March 15, 2021(4) | |||||||
Senior notes | [1] | $ 0 | 280.4 | |||||
3.5% Senior note due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 3.50% | 3.50% | 3.50% | |||||
Debt instrument, description | December 15, 2021(1) | |||||||
Senior notes | [2] | $ 0 | 309.6 | |||||
5.105% Senior note due July 28, 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 5.105% | |||||||
Debt instrument, description | July 28, 2023(3) | |||||||
Senior notes | [3],[4] | $ 164.9 | 151.4 | |||||
4.00% Unsecured Senior Notes due November 15, 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 4.00% | 4.00% | ||||||
Debt instrument, description | November 15, 2023(2) | |||||||
Senior notes | [5] | $ 215.6 | 215.6 | |||||
3.9% senior note due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 3.90% | 3.90% | ||||||
Debt instrument, description | December 15, 2024(1) | |||||||
Senior notes | [2] | $ 700 | 700 | |||||
4.375% senior note due March 15, 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 4.375% | 4.375% | ||||||
Debt instrument, description | March 15, 2026(4) | |||||||
Senior notes | [1] | $ 700 | 700 | |||||
3.150% Senior Notes due June 15, 2030 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 3.15% | 3.15% | ||||||
Debt instrument, description | June 15, 2030(5) | |||||||
Senior notes | [6] | $ 750 | 0 | |||||
5.30% Unsecured Senior Notes due November 15, 2043 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 5.30% | 5.30% | ||||||
Debt instrument, description | November 15, 2043(2) | |||||||
Senior notes | [5] | $ 90.5 | 90.5 | |||||
4.9% Senior Loan due 2044 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate, stated percentage | 4.90% | 4.90% | ||||||
Debt instrument, description | December 15, 2044(1) | |||||||
Senior notes | [2] | $ 303.9 | $ 303.9 | |||||
[1] | Discussed below collectively as the "2016 Notes" | |||||||
[2] | Discussed below collectively as the "2014 Notes" | |||||||
[3] | Debt denominated in euros subject to fluctuations in the euro-to-U.S. dollar exchange rate | |||||||
[4] | Debt assumed from Omega | |||||||
[5] | Discussed below collectively as the "2013 Notes" | |||||||
[6] | Discussed below as the "2020 Notes" |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Details) | Dec. 08, 2020USD ($) | Jul. 06, 2020USD ($) | Jun. 19, 2020USD ($) | Sep. 29, 2016USD ($) | Mar. 15, 2016USD ($) | Mar. 07, 2016USD ($) | Mar. 30, 2015USD ($) | Mar. 30, 2015EUR (€) | Dec. 02, 2014USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2018EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 17, 2020USD ($)promissoryNote | Aug. 15, 2019USD ($) | Aug. 15, 2019EUR (€) | Mar. 08, 2018USD ($) | Mar. 08, 2018EUR (€) | Mar. 30, 2015EUR (€) | Nov. 08, 2013USD ($) | |
Debt Instrument [Line Items] | |||||||||||||||||||||||
Loss on extinguishment of debt | $ 20,000,000 | $ 20,000,000 | $ 200,000 | $ 500,000 | |||||||||||||||||||
Debt instrument, issuance date | Mar. 7, 2016 | ||||||||||||||||||||||
Senior notes | 2,924,900,000 | 2,751,400,000 | $ 2,300,000,000 | ||||||||||||||||||||
Extinguishment of debt | $ 500,000,000 | ||||||||||||||||||||||
Line of credit facility, fair value of amount outstanding | 0 | 0 | |||||||||||||||||||||
2018 Revolver | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, face amount | $ 1,000,000,000 | ||||||||||||||||||||||
Borrowings outstanding | 0 | 0 | |||||||||||||||||||||
2014 Euro-Denominated Term Loan due December 5, 2019 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, face amount | € | € 350,000,000 | ||||||||||||||||||||||
Loss on extinguishment of debt | € | € 500,000 | ||||||||||||||||||||||
2018 Euro-Denominated Term Loan due March 8, 2020 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, face amount | $ 317,100,000 | € 284,400,000 | $ 431,000,000 | € 350,000,000 | |||||||||||||||||||
Loss on extinguishment of debt | 200,000 | ||||||||||||||||||||||
Repayments of debt | 24,700,000 | ||||||||||||||||||||||
2019 Euro-Denominated Term Loan due August 15, 2022 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, face amount | $ 600,000,000 | ||||||||||||||||||||||
Loans payable | $ 600,000,000 | 600,000,000 | |||||||||||||||||||||
3.150% Senior Notes due June 15, 2030 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | ||||||||||||||||||||||
Net proceeds from issuance of debt | $ 737,100,000 | ||||||||||||||||||||||
Interest rate, stated percentage | 3.15% | 3.15% | |||||||||||||||||||||
Senior notes | [1] | $ 750,000,000 | 0 | ||||||||||||||||||||
3.500% Unsecured Senior notes due March 15, 2021 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||||||||||||
Interest rate, stated percentage | 3.50% | 3.50% | 3.50% | ||||||||||||||||||||
Senior notes | [2] | $ 0 | 280,400,000 | ||||||||||||||||||||
Extinguishment of debt | $ 280,400,000 | $ 219,600,000 | |||||||||||||||||||||
4.375% senior note due March 15, 2026 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, face amount | $ 700,000,000 | ||||||||||||||||||||||
Interest rate, stated percentage | 4.375% | 4.375% | |||||||||||||||||||||
Senior notes | [2] | $ 700,000,000 | 700,000,000 | ||||||||||||||||||||
Debt securities | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Senior notes | $ 1,200,000,000 | ||||||||||||||||||||||
2015 Revolver | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Repayments of debt | $ 750,000,000 | ||||||||||||||||||||||
3.5% Senior note due 2021 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||||||||||||
Debt instrument, issuance date | Dec. 2, 2014 | ||||||||||||||||||||||
Interest rate, stated percentage | 3.50% | 3.50% | 3.50% | ||||||||||||||||||||
Senior notes | [3] | $ 0 | 309,600,000 | ||||||||||||||||||||
Extinguishment of debt | $ 309,600,000 | 190,400,000 | |||||||||||||||||||||
3.9% senior note due 2024 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, face amount | $ 700,000,000 | ||||||||||||||||||||||
Interest rate, stated percentage | 3.90% | 3.90% | |||||||||||||||||||||
Senior notes | [3] | $ 700,000,000 | 700,000,000 | ||||||||||||||||||||
4.9% Senior Loan due 2044 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||||||||||||||
Interest rate, stated percentage | 4.90% | 4.90% | |||||||||||||||||||||
Senior notes | [3] | $ 303,900,000 | 303,900,000 | ||||||||||||||||||||
Extinguishment of debt | 96,100,000 | ||||||||||||||||||||||
2014 bonds | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Senior notes | $ 1,600,000,000 | ||||||||||||||||||||||
1.30% Unsecured Senior Notes due November 8, 2016 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||||||||||||
Interest rate, stated percentage | 1.30% | 1.30% | |||||||||||||||||||||
2.30% Unsecured Senior notes November 8, 2018 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, face amount | $ 600,000,000 | ||||||||||||||||||||||
Interest rate, stated percentage | 2.30% | ||||||||||||||||||||||
Extinguishment of debt | 600,000,000 | ||||||||||||||||||||||
4.00% Unsecured Senior Notes due November 15, 2023 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, face amount | $ 800,000,000 | ||||||||||||||||||||||
Interest rate, stated percentage | 4.00% | 4.00% | |||||||||||||||||||||
Senior notes | [4] | $ 215,600,000 | 215,600,000 | ||||||||||||||||||||
Extinguishment of debt | 584,400,000 | ||||||||||||||||||||||
5.30% Unsecured Senior Notes due November 15, 2043 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||||||||||||||
Interest rate, stated percentage | 5.30% | 5.30% | |||||||||||||||||||||
Senior notes | [4] | $ 90,500,000 | $ 90,500,000 | ||||||||||||||||||||
Extinguishment of debt | $ 309,500,000 | ||||||||||||||||||||||
3.500% Senior Notes due March 15, 2021 and December 15, 2021 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Loss on extinguishment of debt | $ 20,000,000 | ||||||||||||||||||||||
Kazmira, LLC | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Promissory notes | $ 34,300,000 | ||||||||||||||||||||||
Number of Promissory Notes | promissoryNote | 2 | ||||||||||||||||||||||
Kazmira, LLC | Note due November 2020 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Extinguishment of debt | $ 3,700,000 | ||||||||||||||||||||||
Promissory notes | $ 3,700,000 | ||||||||||||||||||||||
Kazmira, LLC | Note due May 2021 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Promissory notes | 5,800,000 | ||||||||||||||||||||||
Kazmira, LLC | Note due November 2021 | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Promissory notes | $ 24,800,000 | ||||||||||||||||||||||
Omega | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Amount debt exceeded par value | $ 101,900,000 | € 93,600,000 | |||||||||||||||||||||
Omega | 5.1045% Senior Note | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate, stated percentage | 5.105% | 5.105% | |||||||||||||||||||||
Long-term debt | $ 147,000,000 | € 135,000,000 | |||||||||||||||||||||
Omega | 5.0% Retail Bond [Member] | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Interest rate, stated percentage | 5.00% | 5.00% | |||||||||||||||||||||
Business combination, current liabilities, long-term debt | $ 130,700,000 | € 120,000,000 | |||||||||||||||||||||
[1] | Discussed below as the "2020 Notes" | ||||||||||||||||||||||
[2] | Discussed below collectively as the "2016 Notes" | ||||||||||||||||||||||
[3] | Discussed below collectively as the "2014 Notes" | ||||||||||||||||||||||
[4] | Discussed below collectively as the "2013 Notes" |
Indebtedness - Future Maturitie
Indebtedness - Future Maturities (Details) $ in Millions | Dec. 31, 2020USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2021 | $ 37.9 |
2022 | 604.2 |
2023 | 384.7 |
2024 | 704.2 |
2025 | 4.2 |
Thereafter | $ 1,848.3 |
Earnings Per Share And Shareh_3
Earnings Per Share And Shareholder's Equity - Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2020 | [1] | Sep. 30, 2020 | [2] | Jun. 30, 2020 | [3] | Mar. 31, 2020 | Dec. 31, 2019 | [4] | Sep. 28, 2019 | [5] | Jun. 29, 2019 | [6] | Mar. 30, 2019 | [7] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Numerator: | |||||||||||||||||||
Net income (loss) | $ (175) | $ (154.6) | $ 60.6 | $ 106.4 | $ (19) | $ 92.2 | $ 9 | $ 63.9 | $ (162.6) | $ 146.1 | $ 131 | ||||||||
Denominator: | |||||||||||||||||||
Basic (in shares) | 135.4 | 136.5 | 136.4 | 136.2 | 136.1 | 136 | 136 | 135.9 | 136.1 | 136 | 137.8 | ||||||||
Dilutive effect of share-based awards (in shares) | [8] | 0 | 0.5 | 0.5 | |||||||||||||||
Diluted (in shares) | 135.4 | 136.5 | 137.5 | 137.3 | 137 | 136.8 | 136.5 | 136.2 | 136.1 | 136.5 | 138.3 | ||||||||
Antidilutive share-based awards outstanding (in shares) | 0 | 1.5 | 1.4 | ||||||||||||||||
[1] | Includes change in financial assets of $122.3 million and impairment charges of $144.4 million. | ||||||||||||||||||
[2] | Includes impairment charges of $202.4 million, change in financial assets of $22.2 million and loss on early debt extinguishment of $20.0 million. | ||||||||||||||||||
[3] | Includes Rosemont Pharmaceuticals business pre-tax loss of $21.1 million. | ||||||||||||||||||
[4] | Includes impairment charges of $141.6 million. | ||||||||||||||||||
[5] | Includes animal health divestiture pre-tax gain of $71.7 million, Ranitidine market withdrawal charges of $18.4 million, acquisition-related charges and contingent consideration adjustments of $18.1 million, and impairment charges of $10.9 million. | ||||||||||||||||||
[6] | Includes impairment charges of $27.8 million and restructuring charges and other termination benefits of $12.2 million. | ||||||||||||||||||
[7] | Includes change in financial assets of $10.4 million. | ||||||||||||||||||
[8] | In the period of a net loss, diluted shares equal basic shares |
Earnings Per Share And Shareh_4
Earnings Per Share And Shareholder's Equity - Schedule of Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Dividends paid (in millions) | $ 123.9 | $ 112.4 | $ 104.9 |
Dividends paid (per share) | $ 0.90 | $ 0.82 | $ 0.76 |
Earnings Per Share And Shareh_5
Earnings Per Share And Shareholder's Equity (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2018 | Oct. 30, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, period in force | 3 years | |||||
Stock repurchase program, authorized amount | $ 1,000,000,000 | $ 2,000,000,000 | ||||
Average repurchase price (in USD per share) | $ 48.28 | $ 77.93 | ||||
Payments for repurchase of equity | $ 164,200,000 | $ 400,000,000 | ||||
Common Stock | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Repurchases of ordinary shares, shares | 3.4 | 0 | 5.1 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available to be granted | 4,000,000 | ||
Unrecognized share-based compensation expense | $ 55.2 | ||
Unrecognized share-based compensation expense, period of recognition | 1 year 4 months 24 days | ||
Service-based Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested, total fair value | $ 25.9 | $ 25.6 | $ 24.6 |
Granted, weighted average grant date fair value (in dollars per share) | $ 54.68 | $ 47.48 | $ 81.51 |
Performance-based Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested, total fair value | $ 12.7 | $ 8 | $ 2.4 |
Granted, weighted average grant date fair value (in dollars per share) | $ 55.08 | $ 47.54 | $ 85.01 |
RTSR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested, total fair value | $ 1.5 | $ 0 | $ 0 |
Granted, weighted average grant date fair value (in dollars per share) | $ 67.72 | $ 55.61 | $ 101.13 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Maximum | RTSR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 10 years |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Share-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Share-based compensation | $ 58.5 | $ 52.2 | $ 37.7 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Options | |||
Options outstanding, number of options (in shares) | 1,464 | 1,534 | |
Granted (in shares) | 0 | 0 | |
Exercised (in shares) | 0 | (27) | |
Forfeited or expired (in shares) | (120) | (43) | |
Options outstanding, number of options (in shares) | 1,344 | 1,464 | 1,534 |
Options exercisable (in shares) | 1,138 | ||
Options expected to vest (in shares) | 200 | ||
Weighted-Average Exercise Price Per Share | |||
Beginning options outstanding, weighted average exercise price (in dollars per share) | $ 92.33 | $ 91.56 | |
Granted (in dollars per share) | 0 | 0 | |
Exercised (in dollars per share) | 0 | 34.30 | |
Forfeited or expired (in dollars per share) | 78.21 | 99.58 | |
Ending options outstanding, weighted average exercise price (in dollars per share) | 93.61 | $ 92.33 | $ 91.56 |
Options exercisable (in dollars per share) | 96.34 | ||
Options expected to vest (in dollars per share) | $ 78.51 | ||
Weighted- Average Remaining Term in Years | 5 years 2 months 12 days | 5 years 9 months 18 days | |
Weighted- Average Remaining Term in Years, Options exercisable | 4 years 9 months 18 days | ||
Weighted- Average Remaining Term in Years, Options expected to vest | 7 years 1 month 6 days | ||
Aggregate Intrinsic Value | $ 0 | $ 0 | |
Aggregate Intrinsic Value, Options exercisable | 0 | ||
Aggregate Intrinsic Value, Options expected to vest | 0 | ||
Options exercised, aggregate intrinsic value | $ 0 | $ 0.5 | $ 1.1 |
Options granted, weighted-average grant date fair value (in USD per share) | $ 0 | $ 0 | $ 24.43 |
Share-Based Compensation Plan_5
Share-Based Compensation Plans - Options Fair Value Assumptions (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Dividend yield | 0.80% |
Volatility, as a percent | 31.20% |
Risk-free interest rate | 2.80% |
Expected life in years | 5 years 7 months 6 days |
Share-Based Compensation Plan_6
Share-Based Compensation Plans - Restricted Stock Unit Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Service-based Restricted Share Units | |||
Number of Non-vested Service- Based Share Units | |||
Beginning balance (in shares) | 1,211 | 728 | |
Granted (in shares) | 823 | 818 | |
Vested (in shares) | (372) | (269) | |
Forfeited (in shares) | (42) | (66) | |
Ending balance (in shares) | 1,620 | 1,211 | 728 |
Weighted- Average Grant Date Fair Value Per Share | |||
Beginning balance (in dollars per share) | $ 60.96 | $ 89.47 | |
Granted (in dollars per share) | 54.68 | 47.48 | $ 81.51 |
Vested (in dollars per share) | 69.64 | 95.09 | |
Forfeited (in dollars per share) | 59.82 | 71.03 | |
Ending balance (in dollars per share) | $ 55.82 | $ 60.96 | $ 89.47 |
Weighted- Average Remaining Term in Years | 1 year | 1 year 4 months 24 days | |
Aggregate Intrinsic Value | $ 72.5 | $ 62.5 | |
Performance-based Restricted Share Units | |||
Number of Non-vested Service- Based Share Units | |||
Beginning balance (in shares) | 653 | 442 | |
Granted (in shares) | 291 | 298 | |
Vested (in shares) | (184) | (68) | |
Forfeited (in shares) | (9) | (19) | |
Ending balance (in shares) | 751 | 653 | 442 |
Weighted- Average Grant Date Fair Value Per Share | |||
Beginning balance (in dollars per share) | $ 61.44 | $ 86.61 | |
Granted (in dollars per share) | 55.08 | 47.54 | $ 85.01 |
Vested (in dollars per share) | 68.89 | 116.35 | |
Forfeited (in dollars per share) | 70.60 | 72.83 | |
Ending balance (in dollars per share) | $ 57.13 | $ 61.44 | $ 86.61 |
Weighted- Average Remaining Term in Years | 1 year 4 months 24 days | 1 year 6 months | |
Aggregate Intrinsic Value | $ 33.6 | $ 33.7 |
Share-Based Compensation Plan_7
Share-Based Compensation Plans - RTSR fair value assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.80% | ||
Volatility, as a percent | 31.20% | ||
Risk-free interest rate | 2.80% | ||
Expected life in years | 5 years 7 months 6 days | ||
RTSR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.60% | 1.60% | 0.90% |
Volatility, as a percent | 40.40% | 40.20% | 35.30% |
Risk-free interest rate | 0.60% | 1.90% | 2.40% |
Expected life in years | 2 years 9 months 18 days | 2 years 4 months 24 days | 2 years 9 months 18 days |
Share-Based Compensation Plan_8
Share-Based Compensation Plans - Relative Total Shareholder Return Performance Unit Activity (Details) - RTSR - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Number of Non-vested Performance- Based Share Units | ||||
Beginning balance (in shares) | 142 | 62 | ||
Granted (in shares) | 58 | 80 | ||
Vested (in shares) | (24) | 0 | ||
Forfeited (in shares) | 0 | 0 | ||
Ending balance (in shares) | 176 | 142 | 62 | |
Weighted-Average Grant Date Fair Value Per Share | ||||
Nonvested shares outstanding (in shares) | $ 65.04 | $ 63.02 | $ 78.35 | |
Granted (in dollars per share) | 67.72 | 55.61 | $ 101.13 | |
Forfeited (in dollars per share) | 0 | 0 | ||
Vested (in dollars per share) | $ 62.73 | $ 0 | ||
Weighted- Average Remaining Term in Years | [1] | 1 year 6 months | 1 year 6 months | |
Aggregate Intrinsic Value | $ 7.9 | $ 7.3 | ||
Fair value of shares vested in period | $ 1.5 | $ 0 | $ 0 | |
[1] | * Midpoint used in calculation. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance | $ 5,803.8 | $ 5,668 | $ 6,170.5 | |
OCI before reclassifications | 217.6 | 60.1 | ||
Amounts reclassified from AOCI | 38 | (5.3) | ||
Other comprehensive income (loss), net of tax | 255.6 | 54.8 | (167.5) | |
Balance | 5,655.1 | 5,803.8 | 5,668 | |
Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance | 139.4 | 84.6 | 253.1 | |
Other comprehensive income (loss), net of tax | 255.6 | 54.8 | (167.5) | |
Balance | 395 | 139.4 | 84.6 | |
Fair Value of Derivative Financial Instruments, net of tax | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance | 12.7 | (15.5) | ||
OCI before reclassifications | (12.2) | 26.8 | ||
Amounts reclassified from AOCI | (1.2) | 1.4 | ||
Other comprehensive income (loss), net of tax | (13.4) | 28.2 | ||
Balance | (0.7) | 12.7 | (15.5) | |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance | [1] | 132.9 | 104.5 | |
OCI before reclassifications | [1] | 228 | 28.4 | |
Amounts reclassified from AOCI | [1] | 46.4 | 0 | |
Other comprehensive income (loss), net of tax | [1] | 274.4 | 28.4 | |
Balance | [1] | 407.3 | 132.9 | 104.5 |
Post-Retirement and Pension Liability Adjustments, net of tax | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance | (6.2) | (4.4) | ||
OCI before reclassifications | 1.8 | 4.9 | ||
Amounts reclassified from AOCI | (7.2) | (6.7) | ||
Other comprehensive income (loss), net of tax | (5.4) | (1.8) | ||
Balance | $ (11.6) | $ (6.2) | $ (4.4) | |
[1] | Refer to the description in Note 3 of the Rosemont Pharmaceuticals business divestiture for information regarding amounts reclassified from AOCI |
Income Taxes - Pre-tax Income a
Income Taxes - Pre-tax Income and the Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pre-tax income: | |||
Ireland | $ (411.8) | $ (300.3) | $ (109) |
United States | 147.3 | (291.9) | (428.6) |
Other foreign | 115.1 | 763.2 | 828.2 |
Income (loss) before income taxes | (149.4) | 171 | 290.6 |
Current provision (benefit) for income taxes: | |||
Ireland | 2.7 | (2.2) | 22.7 |
United States | 17.6 | 51 | 66.4 |
Other foreign | 47.4 | 16.1 | 75.1 |
Subtotal | 67.7 | 64.9 | 164.2 |
Deferred provision (benefit) for income taxes: | |||
Ireland | (0.1) | 0 | (13.9) |
United States | (52.3) | (30.2) | 7.3 |
Other foreign | (2.1) | (9.8) | 2 |
Subtotal | (54.5) | (40) | (4.6) |
Total provision for income taxes | $ 13.2 | $ 24.9 | $ 159.6 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Provision at statutory rate | 12.50% | 12.50% | 12.50% |
Foreign rate differential | 14.90% | 3.10% | (7.10%) |
State income taxes, net of federal benefit | (6.20%) | 2.70% | 3.00% |
Provision to return | (1.20%) | 0.80% | (1.00%) |
Tax credits | 8.80% | (2.70%) | (1.30%) |
Change in tax law | (1.80%) | (1.10%) | (6.20%) |
Change in valuation allowance | 52.00% | (29.10%) | 51.00% |
Change in unrecognized taxes | (28.80%) | (4.70%) | 13.80% |
Permanent differences | (70.70%) | 31.20% | (14.10%) |
Legal entity restructuring | 21.10% | 0.00% | 0.00% |
Taxes on unremitted earnings | (8.80%) | 3.60% | 3.90% |
Other | (0.60%) | (1.70%) | 0.40% |
Effective income tax rate | (8.80%) | 14.60% | 54.90% |
Income Taxes - Net Deferred Inc
Income Taxes - Net Deferred Income Tax Asset (Liability) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Deferred income tax asset (liability): | |||||
Depreciation and amortization | $ (393.7) | $ (366.7) | |||
Investment in partnership | 0 | (38.1) | |||
Right of use assets | (44.3) | (30.5) | |||
Unremitted earnings | (42) | (29) | |||
Inventory basis differences | 27.7 | 32.7 | |||
Accrued liabilities | 81.4 | 91.3 | |||
Lease obligations | 45.3 | 30.5 | |||
Share-based compensation | 24.5 | 23.2 | |||
Federal benefit of unrecognized tax positions | 23.5 | 20.7 | |||
Loss and credit carryforwards | 390.1 | 373.3 | |||
R&D credit carryforwards | 48.4 | 54.1 | |||
Interest carryforwards | 17.9 | 60.5 | |||
Other, net | 0.9 | 4.1 | |||
Subtotal | 179.7 | 226.1 | |||
Valuation allowance | (414.8) | [1] | (501.3) | [1] | $ (557.9) |
Net deferred income tax liability | (235.1) | (275.2) | |||
Assets | 44.2 | 5.4 | |||
Liabilities | $ (279.3) | $ (280.6) | |||
[1] | The movement in the valuation allowance balance differs from the amount in the effective tax rate reconciliation due to adjustments affecting balance sheet only items and foreign currency. |
Income Taxes - Change in Valuat
Income Taxes - Change in Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Deferred Tax Valuation Allowance [Roll Forward] | ||||
Balance at beginning of period | $ 501.3 | [1] | $ 557.9 | |
Change in assessment | [2] | (50.3) | (8.3) | |
Current year operations, foreign currency and other | (36.2) | (48.3) | ||
Balance at end of period | [1] | 414.8 | $ 501.3 | |
Recognition of deferred tax asset due to release of valuation allowance | $ 51.5 | |||
[1] | The movement in the valuation allowance balance differs from the amount in the effective tax rate reconciliation due to adjustments affecting balance sheet only items and foreign currency. | |||
[2] | Includes release of $51.5 million of valuation allowance against U.S. deferred tax assets in 2020. |
Income Taxes - Gross Carryforwa
Income Taxes - Gross Carryforwards (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Increase (decrease) in valuation allowance | $ (86.5) |
Recognition of deferred tax asset due to release of valuation allowance | 51.5 |
Expire Through Tax Year 2040 | |
Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards | 62 |
Net operating loss carryforwards | 368.6 |
No Expiration | |
Operating Loss Carryforwards [Line Items] | |
State tax credit carryforwards | 9 |
U.S. interest carryforward | 78.1 |
U.S. Federal and Non-U.S. | No Expiration | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 1,317.5 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits, beginning balance | $ 350.5 | $ 377.1 |
Positions related to the current year | 18.2 | 8.2 |
Positions related to prior years | 28.9 | 3.1 |
Settlements with taxing authorities | (3) | |
Lapse of statutes of limitation | (2.2) | (23.5) |
Decrease in prior year positions | (1) | (12.1) |
Cumulative translation adjustment | 1.6 | 0.7 |
Unrecognized tax benefits, ending balance | $ 396 | $ 350.5 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) € in Millions | Mar. 01, 2021USD ($) | Jan. 13, 2021USD ($) | May 15, 2020USD ($) | Aug. 15, 2017USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2020USD ($) | Dec. 29, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 22, 2019USD ($) | Apr. 26, 2019USD ($) | Nov. 29, 2018EUR (€) |
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
Dividends received deduction (percent) | 100.00% | |||||||||||||||
Unrecognized tax benefits liability, interest and penalties accrued | $ 108,900,000 | $ 86,800,000 | $ 108,900,000 | $ 98,100,000 | ||||||||||||
Unrecognized tax benefits that would impact effective tax rate | 250,200,000 | 203,700,000 | 250,200,000 | $ 204,600,000 | ||||||||||||
Income tax examination, debts subject to limit of deductibility of interest expense | $ 7,500,000,000 | |||||||||||||||
Interest rate cap on debts for U.S. tax purposes, as percent of applicable Federal rate | 130.00% | |||||||||||||||
Income tax examination, reduction in blended interest rate due to cap for U.S. Federal tax purposes | 4.00% | |||||||||||||||
IRS notice of proposed audit adjustment to reduce deductible interest expense for fiscal years 2014 and 2015 | $ 414,700,000 | |||||||||||||||
Income tax examination, penalties and interest expense | $ 134,100,000 | $ 24,700,000 | $ 40,100,000 | $ 41,800,000 | $ 27,500,000 | |||||||||||
Cumulative deferred charge related to tax litigation | $ 111,600,000 | 111,600,000 | ||||||||||||||
Royalty conceded on all omeprazole sales as a percent of refund claims (percent) | 5.24% | |||||||||||||||
IRS notice of proposed audit adjustment from 2011, 2012, and 2013 audit of Athena, including penalty | $ 843,000,000 | |||||||||||||||
IRS notice of proposed adjustment, penalty (percent) | 40.00% | |||||||||||||||
Payment of assessment due before final determination of tax case and appeal | $ 0 | 0 | ||||||||||||||
Tax cuts and jobs act, change in tax rate, income tax expense (benefit) | 2,400,000 | |||||||||||||||
Tax cuts and jobs act, transition tax for accumulated foreign earnings | 17,500,000 | |||||||||||||||
Tax cuts and jobs act, undistributed accumulated earnings of foreign subsidiary | 1,200,000,000 | |||||||||||||||
Tax cuts and jobs act of 2017, transition tax for accumulated foreign earnings, provisional income tax expense (benefit) | 6,300,000 | |||||||||||||||
Tax cuts and jobs act of 2017, change in tax rate, provisional income tax expense (benefit) | 8,300,000 | |||||||||||||||
Reduction of income tax expense due to enactment of the CARES Act | 36,600,000 | |||||||||||||||
Reduction of income tax expense due to change In IRS regulations | 8,900,000 | |||||||||||||||
Subsequent Event | ||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
IRS Notice of Proposed Audit Adjustment from 2013, 2014 and 2015 | $ 141,600,000 | |||||||||||||||
Minimum | Subsequent Event | ||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
Income tax examination, estimate of additional tax | 24,000,000 | |||||||||||||||
Maximum | Subsequent Event | ||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
Income tax examination, estimate of additional tax | $ 112,000,000 | |||||||||||||||
Forecast | ||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
Income tax examination, estimated increase to tax expense from audit adjustment to fiscal years 2014 and 2015, excluding interest and penalties | $ 170,000,000 | |||||||||||||||
Income tax examination, estimate of additional tax | $ 200,000,000 | |||||||||||||||
Irish Revenue | ||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
Unsettled audit assessment from income tax examination | € | € 1,636 | |||||||||||||||
Payment of assessment due before final determination of tax case and appeal | $ 0 | $ 0 | ||||||||||||||
Israel Tax Authority | ||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
Unsettled audit assessment from income tax examination | $ 63,800,000 | |||||||||||||||
Belgium Taxing Authority | ||||||||||||||||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
Income tax expense as a result of Belgium Tax Act | 24,100,000 | |||||||||||||||
Income tax benefit as a result of Belgium Tax Act | $ 33,200,000 |
Post Employment Plans - Additio
Post Employment Plans - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)year | Dec. 31, 2019USD ($) | Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Amount to be amortized from accumulated other comprehensive income (loss) next fiscal year | $ 1 | ||
Expected future benefit payments, year one through five | 14.7 | ||
Estimated future employer contributions in next fiscal year | 2.4 | ||
Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected future benefit payments, year one through five | $ 0.8 | ||
Postretirement health coverage | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Retiree eligible age | year | 65 | ||
Pension plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected return on assets, percent | 1.76% | 2.54% | 2.94% |
Deferred compensation arrangement with individual, by type of compensation, pension and Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Cash surrender value of insurance policies | $ 37.3 | $ 34.4 | |
Deferred compensation liability, non-current | $ 34.2 | $ 31.3 | |
United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer nondiscretionary contribution to plan | 3.00% | ||
Ireland | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching contribution, percent of employees' gross pay | 18.00% |
Post Employment Plans - Contrib
Post Employment Plans - Contributions to the plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Postemployment Benefits [Abstract] | |||
Defined contribution plans cost | $ 27.3 | $ 26.6 | $ 25.2 |
Post Employment Plans - Project
Post Employment Plans - Projected Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Settlements | $ 0 | ||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning | 165.4 | ||
Settlements | 0 | ||
Fair value of plan assets at end of period | 189.1 | $ 165.4 | |
Pension plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning | 186.9 | 168.6 | |
Curtailment | 0 | (2.5) | |
Service costs | 2.7 | 2.5 | $ 3 |
Interest cost | 2.8 | 3.8 | 3.8 |
Actuarial loss (gain) | 7 | 22.7 | |
Amendments | 0 | 0 | |
Contributions paid | 0.2 | 0.3 | |
Benefits paid | (2.3) | (1.6) | |
Settlements | 0 | (3.8) | |
Foreign currency translation | 17 | (3.1) | |
Projected benefit obligation, ending | 214.3 | 186.9 | 168.6 |
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning | 165.4 | 151.9 | |
Actual return on plan assets | 8.3 | 19.8 | |
Benefits paid | (2.3) | (1.6) | |
Settlements | 0 | (3.8) | |
Employer contributions | 2.3 | 2 | |
Contributions paid | 0.2 | 0.3 | |
Foreign currency translation | 15.2 | (3.2) | |
Fair value of plan assets at end of period | 189.1 | 165.4 | 151.9 |
Unfunded status | (25.2) | (21.5) | |
Presented as: | |||
Other non-current assets | 17.9 | 15.8 | |
Other non-current liabilities | (43.1) | (37.3) | |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning | 3.7 | 5.6 | |
Curtailment | 0 | 0 | |
Service costs | 0 | 0.6 | 0.6 |
Interest cost | 0.1 | 0.2 | 0.2 |
Actuarial loss (gain) | (0.2) | 0.3 | |
Amendments | 0 | (2.9) | |
Contributions paid | 0 | 0 | |
Benefits paid | (0.1) | (0.1) | |
Settlements | 0 | ||
Foreign currency translation | 0 | 0 | |
Projected benefit obligation, ending | 3.5 | 3.7 | 5.6 |
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Benefits paid | (0.1) | (0.1) | |
Settlements | 0 | ||
Employer contributions | 0.1 | 0.1 | |
Contributions paid | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Fair value of plan assets at end of period | 0 | 0 | $ 0 |
Unfunded status | (3.5) | (3.7) | |
Presented as: | |||
Other non-current assets | 0 | 0 | |
Other non-current liabilities | $ 0 | $ 0 |
Post Employment Plans - Accumul
Post Employment Plans - Accumulated benefit obligation and projected benefit obligation in excess of plan assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Postemployment Benefits [Abstract] | ||
Unfunded accumulated projected benefit obligation | $ 207.5 | $ 180.8 |
Accumulated benefit obligation | 107.4 | 93.7 |
Fair value of plan assets | 71.1 | 62.1 |
Projected benefit obligation | 114.2 | 99.4 |
Fair value of plan assets | $ 71.1 | $ 62.1 |
Post Employment Plans - Schedul
Post Employment Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
AOCI pension and other postretirement benefit plans | $ 11.6 | $ 6.2 | $ 4.4 |
Other Postretirement Benefits Plan | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
AOCI pension and other postretirement benefit plans | $ 0.2 | $ 2.6 | $ 1.3 |
Post Employment Plans - Sched_2
Post Employment Plans - Schedule of Defined Benefit Plan Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Postemployment Benefits [Abstract] | |||
AOCI pension and other postretirement benefit plans | $ 11.6 | $ 6.2 | $ 4.4 |
Post Employment Plans - Expecte
Post Employment Plans - Expected Future Minimum Benefit Payment (Details) $ in Millions | Dec. 31, 2020USD ($) |
Pension plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 2.1 |
2022 | 2.6 |
2023 | 2.6 |
2024 | 3.5 |
2025 | 3.9 |
Thereafter | 27.4 |
Other Postretirement Benefits Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 0.1 |
2022 | 0.1 |
2023 | 0.2 |
2024 | 0.2 |
2025 | 0.2 |
Thereafter | $ 1.1 |
Post Employment Plans - Net per
Post Employment Plans - Net periodic pension cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service costs | $ 2.7 | $ 2.5 | $ 3 |
Interest cost | 2.8 | 3.8 | 3.8 |
Expected return on assets | (4.9) | (4.9) | (5.3) |
Settlement | 0 | 0.9 | 0 |
Curtailment | 0 | (2.5) | (1.2) |
Net actuarial loss/(gain) | 0.9 | 0.8 | 0.6 |
Net periodic pension cost/(gain) | 1.5 | 0.6 | 0.9 |
Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service costs | 0 | 0.6 | 0.6 |
Interest cost | 0.1 | 0.2 | 0.2 |
Expected return on assets | 0 | 0 | 0 |
Settlement | 0 | 0 | 0 |
Curtailment | 0 | 0 | 0 |
Net actuarial loss/(gain) | (3.2) | (0.3) | (0.1) |
Net periodic pension cost/(gain) | $ (3.1) | $ 0.5 | $ 0.7 |
Post Employment Plans - Weighte
Post Employment Plans - Weighted Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 0.95% | 1.06% | 2.04% |
Decrease in the discount rate attributable to the reduction in bond yields across the Euro zone | 0.11% | ||
Inflation | 1.33% | 1.18% | 1.45% |
Expected return on assets | 1.76% | 2.54% | 2.94% |
Interest crediting rates | 0.59% | 0.83% | 1.41% |
Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 3.14% | 4.25% | 3.59% |
Post Employment Plans - Expec_2
Post Employment Plans - Expected Long-term Rate of Return (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on assets, percent | 5.00% | ||
Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on assets, percent | 1.70% | ||
Absolute return fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on assets, percent | 4.00% | ||
Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on assets, percent | 1.60% | ||
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on assets, percent | 0.90% | ||
Pension plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on assets, percent | 1.76% | 2.54% | 2.94% |
Post Employment Plans - Target
Post Employment Plans - Target Asset Allocation Ranges (Details) | Dec. 31, 2020 |
Minimum | Equities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation, percentage | 20.00% |
Minimum | Bonds | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation, percentage | 40.00% |
Minimum | Absolute return | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation, percentage | 20.00% |
Maximum | Equities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation, percentage | 30.00% |
Maximum | Bonds | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation, percentage | 50.00% |
Maximum | Absolute return | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation, percentage | 30.00% |
Post Employment Plans - Fair Va
Post Employment Plans - Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 189.1 | $ 165.4 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1.2 | 1.2 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 123.7 | 108.1 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 64.2 | 56.1 | $ 49.9 |
Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 42.8 | 24.6 | |
Equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0.1 | |
Equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 42.8 | 24.5 | |
Equities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 44.2 | 33.8 | |
Bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1.2 | 1.1 | |
Bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 43 | 32.7 | |
Bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 64.2 | 56.1 | |
Insurance contracts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Insurance contracts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Insurance contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 64.2 | 56.1 | |
Absolute return fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 30.8 | 44.9 | |
Absolute return fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Absolute return fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 30.8 | 44.9 | |
Absolute return fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 7.1 | 6 | |
Other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 7.1 | 6 | |
Other | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 0 | $ 0 |
Post Employment Plans - Changes
Post Employment Plans - Changes in Fair Value of Level 3 Pension Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning | $ 165.4 | |
Fair value of plan assets at end of period | 189.1 | $ 165.4 |
Level 3 | ||
Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning | 56.1 | 49.9 |
Actual return on plan assets | 1.9 | 8.1 |
Purchases, sales and settlements, net | 1.2 | (0.5) |
Foreign exchange | 5 | (1.4) |
Fair value of plan assets at end of period | $ 64.2 | $ 56.1 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Details (Details) $ in Millions, ₪ in Billions | May 31, 2019individual | Jan. 16, 2019genericPrescriptionPharmaceuticaldefendant | Jun. 28, 2017USD ($)individualcasegenericPrescriptionPharmaceutical$ / ₪ | Jun. 28, 2017ILS (₪)individualcasegenericPrescriptionPharmaceutical$ / ₪ | Dec. 31, 2020USD ($)complaintbrandlawsuitcaseclassgenericPrescriptionPharmaceuticalretailerclaimdefendantindividual | Dec. 31, 2019USD ($)case | Dec. 31, 2018USD ($)brandcase | Dec. 31, 2017case | Jan. 09, 2021lawsuit | Dec. 15, 2020brandmanufacturerpharmaceuticalCompany | Dec. 14, 2020manufacturer | Dec. 11, 2020manufacturer | Sep. 30, 2020brand | Sep. 04, 2020manufacturer | Aug. 27, 2020manufacturer | Jul. 14, 2020genericPrescriptionPharmaceuticalcase | Jul. 09, 2020pharmaceuticalCompany | Jun. 30, 2020manufacturer | Jun. 10, 2020employeeplaintiffGroupbrandmanufacturer | Jun. 09, 2020manufacturer | May 31, 2020healthPlanindividualmanufacturer | Apr. 21, 2020genericPrescriptionPharmaceutical | Mar. 01, 2020defendant | Feb. 29, 2020complaint | Dec. 27, 2019defendant | Dec. 23, 2019defendant | Dec. 16, 2019defendant | Dec. 11, 2019defendant | Nov. 14, 2019class | Jul. 18, 2019healthPlanindividualmanufacturer | Apr. 30, 2019manufacturergenericPrescriptionPharmaceutical | Dec. 21, 2018manufacturergenericPrescriptionPharmaceutical | Aug. 03, 2018manufacturergenericPrescriptionPharmaceutical | Jul. 31, 2018individualdefendant | Jan. 22, 2018supermarketgenericPrescriptionPharmaceuticalmanufacturer | Jun. 30, 2017case | Jun. 21, 2017classgenericPrescriptionPharmaceuticalindividual |
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Lease cost | $ | $ 48.2 | $ 48.8 | |||||||||||||||||||||||||||||||||||
Rent expense under all leases | $ | $ 51.2 | ||||||||||||||||||||||||||||||||||||
Purchase obligation | $ | $ 1,200 | ||||||||||||||||||||||||||||||||||||
Number of classes | class | 3 | 3 | 3 | ||||||||||||||||||||||||||||||||||
Number of complaints | complaint | 2 | ||||||||||||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | 6 | ||||||||||||||||||||||||||||||||||||
Number of individuals | individual | 11 | ||||||||||||||||||||||||||||||||||||
Number of current or former directors and officers | individual | 11 | ||||||||||||||||||||||||||||||||||||
Future lease maturities | $ | $ 221.3 | $ 158.2 | |||||||||||||||||||||||||||||||||||
States' May 2019 Case Alleging Conspiracy (which does not name Perrigo a Defendant) | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of products included in expedited cases | 120 | ||||||||||||||||||||||||||||||||||||
Overarching Conspiracy Class Actions | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of manufacturers | manufacturer | 27 | ||||||||||||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | 135 | ||||||||||||||||||||||||||||||||||||
Number of formulations of products manufactured by the Company | 2 | ||||||||||||||||||||||||||||||||||||
Number of products manufactured by the Company | 1 | ||||||||||||||||||||||||||||||||||||
Number of cases included in expedited schedule | case | 0 | ||||||||||||||||||||||||||||||||||||
Price-Fixing Lawsuit, Supermarket Chains | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of manufacturers | manufacturer | 45 | 35 | |||||||||||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | 31 | ||||||||||||||||||||||||||||||||||||
Number of supermarket chains | supermarket | 3 | ||||||||||||||||||||||||||||||||||||
Price-Fixing Lawsuit, Supermaket Chains, Amended Complaint | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of manufacturers | manufacturer | 39 | ||||||||||||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | 33 | ||||||||||||||||||||||||||||||||||||
Price-fixing Lawsuit, Managed Care Organization | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of manufacturers | manufacturer | 27 | ||||||||||||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | 17 | ||||||||||||||||||||||||||||||||||||
Price-fixing Lawsuit, Health Insurance Carrier | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of manufacturers | manufacturer | 25 | ||||||||||||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | 30 | ||||||||||||||||||||||||||||||||||||
Number of defendants | defendant | 30 | ||||||||||||||||||||||||||||||||||||
Price-fixing Lawsuit, Health Plans | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of manufacturers | manufacturer | 53 | ||||||||||||||||||||||||||||||||||||
Number of health plans | healthPlan | 7 | 87 | |||||||||||||||||||||||||||||||||||
Number of individuals | individual | 17 | 17 | |||||||||||||||||||||||||||||||||||
Number of dozens of manufacturers | manufacturer | 3 | ||||||||||||||||||||||||||||||||||||
Price-fixing Lawsuit, Healthcare Service Company | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of co-defendants | defendant | 38 | ||||||||||||||||||||||||||||||||||||
Price-fixing Lawsuit, Medicare Advantage Claims Recovery Company | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of co-defendants | defendant | 39 | ||||||||||||||||||||||||||||||||||||
Price-fixing Lawsuit, Several Counties in New York | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of co-defendants | defendant | 28 | ||||||||||||||||||||||||||||||||||||
Number of other pharmaceutical companies | pharmaceuticalCompany | 45 | ||||||||||||||||||||||||||||||||||||
Price-fixing Lawsuit, Healthcare Management Organization | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of co-defendants | defendant | 25 | ||||||||||||||||||||||||||||||||||||
Price-fixing Lawsuit, Harris County of Texas | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of co-defendants | defendant | 29 | ||||||||||||||||||||||||||||||||||||
Price-fixing Lawsuit, Drugstore Chain | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of manufacturers | manufacturer | 45 | 45 | |||||||||||||||||||||||||||||||||||
Number of other pharmaceutical companies | pharmaceuticalCompany | 39 | ||||||||||||||||||||||||||||||||||||
Number of drugs | brand | 63 | ||||||||||||||||||||||||||||||||||||
Price-fixing Lawsuit, Suffolk County of New York | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of manufacturers | manufacturer | 35 | ||||||||||||||||||||||||||||||||||||
Price-fixing Lawsuit, Drug Wholesaler and Distributor | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of manufacturers | manufacturer | 39 | ||||||||||||||||||||||||||||||||||||
State Attorney General Complaint | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of manufacturers | manufacturer | 35 | ||||||||||||||||||||||||||||||||||||
Number of additional states and territories | plaintiffGroup | 50 | ||||||||||||||||||||||||||||||||||||
Number of former employees | brand | 1 | ||||||||||||||||||||||||||||||||||||
Number of current employees | employee | 1 | ||||||||||||||||||||||||||||||||||||
Canadian Class Action Complaint | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of manufacturers | manufacturer | 29 | ||||||||||||||||||||||||||||||||||||
Highfields Capital I LP, et al. v. Perrigo Company plc, et al. | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of cases alleging only state law claims | lawsuit | 1 | ||||||||||||||||||||||||||||||||||||
Carmignac, First Manhattan and Similar Cases | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of cases with similar factual allegations | case | 7 | ||||||||||||||||||||||||||||||||||||
First Manhattan and Similar Cases | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | case | 6 | ||||||||||||||||||||||||||||||||||||
Mason Capital, Pentwater and Similar Cases | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | 6 | ||||||||||||||||||||||||||||||||||||
Number of current or former directors and officers | case | 11 | ||||||||||||||||||||||||||||||||||||
Number of cases with similar factual allegations | case | 8 | ||||||||||||||||||||||||||||||||||||
Harel Insurance and TIAA-CREF Cases | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | 6 | ||||||||||||||||||||||||||||||||||||
Number of individuals | individual | 11 | ||||||||||||||||||||||||||||||||||||
Number of current or former directors and officers | individual | 13 | ||||||||||||||||||||||||||||||||||||
Number of cases with similar factual allegations | case | 2 | ||||||||||||||||||||||||||||||||||||
Number of defendants added | defendant | 2 | ||||||||||||||||||||||||||||||||||||
Number of defendants dismissed without prejudice | defendant | 8 | ||||||||||||||||||||||||||||||||||||
Other Cases Related to Events in 2015-2017 | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of cases with similar factual allegations | case | 1 | ||||||||||||||||||||||||||||||||||||
Number of overlapped cases | case | 3 | ||||||||||||||||||||||||||||||||||||
Blackrock Global Complaint | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | 6 | ||||||||||||||||||||||||||||||||||||
In Israel (Cases Related to Events in 2015-2017) | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of cases dismissed | case | 1 | 1 | |||||||||||||||||||||||||||||||||||
Number of cases stayed | brand | 1 | ||||||||||||||||||||||||||||||||||||
Number of cases | case | 3 | ||||||||||||||||||||||||||||||||||||
Israel Elec. Corp. Employees' Educ. Fund v. Perrigo Company plc, et al. | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | 6 | 6 | |||||||||||||||||||||||||||||||||||
Number of current or former directors and officers | individual | 11 | 11 | |||||||||||||||||||||||||||||||||||
Number of cases dismissed | case | 2 | 2 | |||||||||||||||||||||||||||||||||||
Preliminary class damages | $ 760 | ₪ 2.7 | |||||||||||||||||||||||||||||||||||
Foreign currency exchange rate, remeasurement | $ / ₪ | 0.28 | 0.28 | |||||||||||||||||||||||||||||||||||
In the United States (Cases Related to Irish Tax Events) | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of defendants | individual | 3 | ||||||||||||||||||||||||||||||||||||
Number of defendants added | individual | 1 | ||||||||||||||||||||||||||||||||||||
In Israel (Case Related to Irish Tax Events) | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of cases stayed | case | 2 | ||||||||||||||||||||||||||||||||||||
Talcum Powder Litigation | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of lawsuits | lawsuit | 45 | ||||||||||||||||||||||||||||||||||||
Number of tenders accepted | brand | 1 | ||||||||||||||||||||||||||||||||||||
Ranitidine Litigation | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of master complaints | complaint | 3 | ||||||||||||||||||||||||||||||||||||
Number of master complaints naming the Company | complaint | 2 | ||||||||||||||||||||||||||||||||||||
Acetaminophen Litigation | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of lawsuits | brand | 1 | ||||||||||||||||||||||||||||||||||||
Number of claims for indemnification or defense | claim | 16 | ||||||||||||||||||||||||||||||||||||
Number of retailers | retailer | 10 | ||||||||||||||||||||||||||||||||||||
Subsequent Event | Ranitidine Litigation | |||||||||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||||||||||||||||||||||||
Number of lawsuits | lawsuit | 96 |
Commitment and Contingencies -
Commitment and Contingencies - Guarantee Liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | |||
Payment of guarantee liability | $ 1.2 | ||
Level 3 | Recurring | |||
Loss Contingencies [Line Items] | |||
Guarantee on certain obligations | $ 13.2 | $ 12 | $ 13.8 |
Collaboration Agreements And _2
Collaboration Agreements And Other Contractual Arrangements (Details) $ in Millions | Dec. 31, 2020USD ($) | May 17, 2019USD ($) | Aug. 24, 2018USD ($) | Dec. 20, 2017pharmaceuticalProduct | Mar. 01, 2016USD ($) | May 01, 2015USD ($)pharmaceuticalProduct | Dec. 31, 2017USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Research and development | $ 177.7 | $ 187.4 | $ 218.6 | ||||||||
Other products in development | May 2015 development agreement | Maximum | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Royalty Pharma contingent milestone payments | $ 44 | 44 | |||||||||
Development-Stage Rx Products | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Research and development | $ 18 | ||||||||||
Royalty Pharma contingent milestone payments | 17.5 | $ 30 | 17.5 | ||||||||
Business combination, number of products purchased | pharmaceuticalProduct | 2 | ||||||||||
Number of products sold | pharmaceuticalProduct | 1 | ||||||||||
Development-Stage Rx Products | Minimum | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Royalty payment period | 7 years | ||||||||||
Development-Stage Rx Products | Maximum | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Royalty payment period | 10 years | ||||||||||
ANDA | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Research and development | $ 2.5 | $ 0.7 | |||||||||
ANDA | Maximum | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Royalty Pharma contingent milestone payments | 13.8 | $ 13.8 | |||||||||
Developed product technology, formulations, and product rights | Generic Product Acquisition | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Purchase price | $ 16.4 | $ 15.7 | |||||||||
Developed product technology, formulations, and product rights | ANDA | Generic Product Acquisition | |||||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||||||
Purchase price | $ 30.4 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 29, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | $ 19.6 | $ 24 | $ 21.4 | |
Additional charges | 3.5 | 25.3 | 21 | |
Payments | (14.3) | (29.4) | (18.8) | |
Non-cash adjustments | 0.7 | (0.3) | 0.4 | |
Ending balance | 9.5 | 19.6 | 24 | |
Restructuring charges | $ 12.2 | 3.5 | 26.3 | 21 |
CSCI | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | 1.4 | 12.2 | $ 17.4 | |
Unallocated | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring charges | $ 1 | $ 10.1 |
Segment and Geographic Inform_3
Segment and Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | [2] | Jun. 30, 2020 | [3] | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 28, 2019 | [5] | Jun. 29, 2019 | [6] | Mar. 30, 2019 | [7] | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | $ 1,289.5 | [1] | $ 1,213.7 | $ 1,219.1 | $ 1,341 | $ 1,322.8 | [4] | $ 1,191.1 | $ 1,149 | $ 1,174.5 | $ 5,063.3 | [8] | $ 4,837.4 | [8] | $ 4,731.7 | [8] | ||||||
Operating income (loss) | $ 115.4 | $ 204.8 | $ 236.5 | |||||||||||||||||||
Operating income % | 2.30% | 4.20% | 5.00% | |||||||||||||||||||
Total assets | 11,488.4 | 11,301.4 | $ 11,488.4 | $ 11,301.4 | $ 10,983.4 | |||||||||||||||||
Capital expenditures | 170.4 | 137.7 | 102.7 | |||||||||||||||||||
Property, plant and equipment, net | 996 | 902.8 | 996 | 902.8 | 829.1 | |||||||||||||||||
Depreciation/amortization | 384.8 | 396.5 | 423.6 | |||||||||||||||||||
Change in financial assets | 122.3 | [1] | $ (22.2) | $ (2.1) | $ (1.6) | (3.6) | [4] | $ (2.6) | $ (5.5) | $ (10.4) | 96.4 | (22.1) | (188.7) | |||||||||
CSCA | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | [9] | 2,693 | 2,487.7 | 2,411.6 | ||||||||||||||||||
CSCI | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 1,395.2 | 1,382.2 | 1,399.3 | |||||||||||||||||||
RX | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 975.1 | 967.5 | 920.8 | |||||||||||||||||||
Ireland | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 29.8 | 23.4 | 25.7 | |||||||||||||||||||
Property, plant and equipment, net | 20.3 | 9.3 | 20.3 | 9.3 | ||||||||||||||||||
United States | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | [8] | 3,441.1 | 3,225.6 | 3,098.3 | ||||||||||||||||||
Property, plant and equipment, net | 678.2 | 614.5 | 678.2 | 614.5 | ||||||||||||||||||
Europe | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | [8],[10] | 1,350.6 | 1,335.8 | $ 1,347.6 | ||||||||||||||||||
Property, plant and equipment, net | [11] | 169.7 | 146.8 | 169.7 | 146.8 | |||||||||||||||||
Israel | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Property, plant and equipment, net | 90.7 | 86.1 | 90.7 | 86.1 | ||||||||||||||||||
All other countries | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Property, plant and equipment, net | 57.4 | 55.4 | $ 57.4 | $ 55.4 | ||||||||||||||||||
Walmart | Net sales | Customer Concentration Risk | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Concentration risk percentage | 13.30% | 13.00% | 12.80% | |||||||||||||||||||
Operating Segments | CSCA | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | $ 2,693 | $ 2,487.7 | $ 2,411.6 | |||||||||||||||||||
Operating income (loss) | $ 472 | $ 414 | $ 174.4 | |||||||||||||||||||
Operating income % | 17.50% | 16.60% | 7.20% | |||||||||||||||||||
Total assets | 4,443 | 3,990.2 | $ 4,443 | $ 3,990.2 | $ 3,571.7 | |||||||||||||||||
Capital expenditures | 126 | 98.4 | 65 | |||||||||||||||||||
Property, plant and equipment, net | 675.7 | 599.8 | 675.7 | 599.8 | 530.3 | |||||||||||||||||
Depreciation/amortization | 103.6 | 97.4 | 104.8 | |||||||||||||||||||
Change in financial assets | 0 | 0 | 0 | |||||||||||||||||||
Operating Segments | CSCI | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 1,395.2 | 1,382.2 | 1,399.3 | |||||||||||||||||||
Operating income (loss) | $ 32.3 | $ 19.6 | $ 6.8 | |||||||||||||||||||
Operating income % | 2.30% | 1.40% | 0.50% | |||||||||||||||||||
Total assets | 4,872.4 | 4,682.7 | $ 4,872.4 | $ 4,682.7 | $ 4,613 | |||||||||||||||||
Capital expenditures | 28.8 | 18.8 | 19.1 | |||||||||||||||||||
Property, plant and equipment, net | 163.5 | 149.9 | 163.5 | 149.9 | 154.8 | |||||||||||||||||
Depreciation/amortization | 177.8 | 194.3 | 219.2 | |||||||||||||||||||
Change in financial assets | 0 | 0 | 0 | |||||||||||||||||||
Operating Segments | RX | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 975.1 | 967.5 | 920.8 | |||||||||||||||||||
Operating income (loss) | $ (177.7) | $ 2.6 | $ 214.6 | |||||||||||||||||||
Operating income % | (18.20%) | 0.30% | 23.30% | |||||||||||||||||||
Total assets | 2,173 | 2,628.5 | $ 2,173 | $ 2,628.5 | $ 2,798.7 | |||||||||||||||||
Capital expenditures | 15.6 | 20.5 | 18.6 | |||||||||||||||||||
Property, plant and equipment, net | 156.8 | 153.1 | 156.8 | 153.1 | 144 | |||||||||||||||||
Depreciation/amortization | 103.4 | 104.8 | 99.6 | |||||||||||||||||||
Change in financial assets | 0 | 0 | 0 | |||||||||||||||||||
Unallocated | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 0 | 0 | 0 | |||||||||||||||||||
Operating income (loss) | $ (211.2) | $ (231.4) | $ (159.3) | |||||||||||||||||||
Operating income % | 0.00% | 0.00% | 0.00% | |||||||||||||||||||
Total assets | 0 | 0 | $ 0 | $ 0 | $ 0 | |||||||||||||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||||||||||
Property, plant and equipment, net | $ 0 | $ 0 | 0 | 0 | 0 | |||||||||||||||||
Depreciation/amortization | 0 | 0 | 0 | |||||||||||||||||||
Change in financial assets | $ 96.4 | $ (22.1) | $ (188.7) | |||||||||||||||||||
[1] | Includes change in financial assets of $122.3 million and impairment charges of $144.4 million. | |||||||||||||||||||||
[2] | Includes impairment charges of $202.4 million, change in financial assets of $22.2 million and loss on early debt extinguishment of $20.0 million. | |||||||||||||||||||||
[3] | Includes Rosemont Pharmaceuticals business pre-tax loss of $21.1 million. | |||||||||||||||||||||
[4] | Includes impairment charges of $141.6 million. | |||||||||||||||||||||
[5] | Includes animal health divestiture pre-tax gain of $71.7 million, Ranitidine market withdrawal charges of $18.4 million, acquisition-related charges and contingent consideration adjustments of $18.1 million, and impairment charges of $10.9 million. | |||||||||||||||||||||
[6] | Includes impairment charges of $27.8 million and restructuring charges and other termination benefits of $12.2 million. | |||||||||||||||||||||
[7] | Includes change in financial assets of $10.4 million. | |||||||||||||||||||||
[8] | The net sales by geography is derived from the location of the entity that sells to a third party. | |||||||||||||||||||||
[9] | Includes net sales from our OTC contract manufacturing business. | |||||||||||||||||||||
[10] | Includes Ireland net sales of $29.8 million, $23.4 million, and $25.7 million for the years ended December 31, 2020, December 31, 2019, and December 31, 2018, respectively. | |||||||||||||||||||||
[11] | Includes Ireland Property, plant and equipment, net of $20.3 million and $9.3 million, for the years ended December 31, 2020 and December 31, 2019, respectively. |
Quarterly Financial Data (una_3
Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | [3] | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||
Net sales | $ 1,289.5 | [1] | $ 1,213.7 | [2] | $ 1,219.1 | $ 1,341 | $ 1,322.8 | [4] | $ 1,191.1 | [5] | $ 1,149 | [6] | $ 1,174.5 | [7] | $ 5,063.3 | [8] | $ 4,837.4 | [8] | $ 4,731.7 | [8] | ||
Gross profit | 469.2 | [1] | 428.1 | [2] | 434.7 | 483.2 | 480.9 | [4] | 412.8 | [5] | 430.8 | [6] | 448.8 | [7] | 1,815.2 | 1,773.3 | 1,831.5 | |||||
Change in financial assets | 122.3 | [1] | (22.2) | [2] | (2.1) | (1.6) | (3.6) | [4] | (2.6) | [5] | (5.5) | [6] | (10.4) | [7] | 96.4 | (22.1) | (188.7) | |||||
Net income (loss) | $ (175) | [1] | $ (154.6) | [2] | $ 60.6 | $ 106.4 | $ (19) | [4] | $ 92.2 | [5] | $ 9 | [6] | $ 63.9 | [7] | $ (162.6) | $ 146.1 | $ 131 | |||||
Earnings (loss) per share | ||||||||||||||||||||||
Basic (in dollars per share) | $ (1.29) | [1],[9] | $ (1.13) | [2],[9] | $ 0.44 | [9] | $ 0.78 | [9] | $ (0.14) | [4],[10] | $ 0.68 | [5],[10] | $ 0.07 | [6],[10] | $ 0.47 | [7],[10] | $ (1.19) | $ 1.07 | $ 0.95 | |||
Diluted (in dollars per share) | $ (1.29) | [1],[9] | $ (1.13) | [2],[9] | $ 0.44 | [9] | $ 0.77 | [9] | $ (0.14) | [4],[10] | $ 0.67 | [5],[10] | $ 0.07 | [6],[10] | $ 0.47 | [7],[10] | $ (1.19) | $ 1.07 | $ 0.95 | |||
Weighted-average shares outstanding: | ||||||||||||||||||||||
Basic (in shares) | 135.4 | [1] | 136.5 | [2] | 136.4 | 136.2 | 136.1 | [4] | 136 | [5] | 136 | [6] | 135.9 | [7] | 136.1 | 136 | 137.8 | |||||
Diluted (in shares) | 135.4 | [1] | 136.5 | [2] | 137.5 | 137.3 | 137 | [4] | 136.8 | [5] | 136.5 | [6] | 136.2 | [7] | 136.1 | 136.5 | 138.3 | |||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||
Gain (loss) on sale of business | $ 71.7 | $ (20.9) | $ 71.7 | $ 0 | ||||||||||||||||||
Impairment charges | $ 144.4 | $ 202.4 | $ 141.6 | 10.9 | $ 27.8 | 346.8 | 184.5 | 224.4 | ||||||||||||||
Change in financial assets | $ 122.3 | (22.2) | $ 10.4 | |||||||||||||||||||
Loss on extinguishment of debt | $ 20 | 20 | 0.2 | 0.5 | ||||||||||||||||||
Restructuring | $ 12.2 | $ 3.5 | $ 26.3 | $ 21 | ||||||||||||||||||
Impairment of intangible assets, indefinite-lived | 18.1 | |||||||||||||||||||||
Ranitidine | ||||||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||
Production Related Impairments or Charges | $ 18.4 | |||||||||||||||||||||
[1] | Includes change in financial assets of $122.3 million and impairment charges of $144.4 million. | |||||||||||||||||||||
[2] | Includes impairment charges of $202.4 million, change in financial assets of $22.2 million and loss on early debt extinguishment of $20.0 million. | |||||||||||||||||||||
[3] | Includes Rosemont Pharmaceuticals business pre-tax loss of $21.1 million. | |||||||||||||||||||||
[4] | Includes impairment charges of $141.6 million. | |||||||||||||||||||||
[5] | Includes animal health divestiture pre-tax gain of $71.7 million, Ranitidine market withdrawal charges of $18.4 million, acquisition-related charges and contingent consideration adjustments of $18.1 million, and impairment charges of $10.9 million. | |||||||||||||||||||||
[6] | Includes impairment charges of $27.8 million and restructuring charges and other termination benefits of $12.2 million. | |||||||||||||||||||||
[7] | Includes change in financial assets of $10.4 million. | |||||||||||||||||||||
[8] | The net sales by geography is derived from the location of the entity that sells to a third party. | |||||||||||||||||||||
[9] | The sum of individual per share amounts may not equal due to rounding. | |||||||||||||||||||||
[10] | The sum of individual per share amounts may not equal due to rounding. |
Subsequent events Subsequent Ev
Subsequent events Subsequent Events (Details) - USD ($) $ in Millions | Mar. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | ||||
Cash consideration in definitive agreement to sell | $ 187.8 | $ 182.5 | $ 5.2 | |
RX | ||||
Subsequent Event [Line Items] | ||||
Assets, excluding cash | 2,100 | |||
Liabilities, excluding debt | $ 600 | |||
RX | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Total consideration in definitive agreement to sell | $ 1,550 | |||
Cash consideration in definitive agreement to sell | 1,500 | |||
R&D milestone payments assumed by purchaser in definitive agreement to sell | $ 50 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Beginning Balance | $ 6,700 | $ 6,400 | $ 6,200 | |
Net bad debt expenses | [1] | 2,900 | 800 | 0 |
Additions (deductions) | [2] | (2,000) | (500) | |
Additions (deductions) | [2] | 200 | ||
Ending Balance | $ 7,600 | $ 6,700 | $ 6,400 | |
[1] | Includes effects of changes in foreign exchange rates. | |||
[2] | Uncollectible accounts written off, net of recoveries. Also includes effects of changes in foreign exchange rates. |