Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 25, 2022 | Jul. 03, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
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 | ||
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 | $ 6,266,348,414 | ||
Entity Common Stock, Shares Outstanding | 133,784,716 | ||
Documents Incorporated by Reference | Documents incorporated by reference : | ||
Entity Central Index Key | 0001585364 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
4.00% Unsecured Senior Notes due November 15, 2023 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 4.000% Notes due 2023 | ||
Trading Symbol | PRGO23 | ||
Security Exchange Name | NYSE | ||
3.9% senior note due 2024 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 3.900% Notes due 2024 | ||
Trading Symbol | PRGO24 | ||
Security Exchange Name | NYSE | ||
4.375% senior note due March 15, 2026 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 4.375% Notes due 2026 | ||
Trading Symbol | PRGO26 | ||
Security Exchange Name | NYSE | ||
5.30% Unsecured Senior Notes due November 15, 2043 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 5.300% Notes due 2043 | ||
Trading Symbol | PRGO43 | ||
Security Exchange Name | NYSE | ||
4.9% Senior Loan due 2044 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 4.900% Notes due 2044 | ||
Trading Symbol | PRGO44 | ||
Security Exchange Name | NYSE | ||
Ordinary Shares, 0.001 Par Value | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Ordinary shares, €0.001 par value | ||
Trading Symbol | PRGO | ||
Security Exchange Name | NYSE | ||
3.13% senior note due 2030 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 3.15% Notes due 2030 | ||
Trading Symbol | PRGO30 | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Grand Rapids, Michigan |
Auditor Firm ID | 42 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Income Statement [Abstract] | ||||
Net sales | [1] | $ 4,138.7 | $ 4,088.2 | $ 3,869.9 |
Cost of sales | 2,722.5 | 2,593.3 | 2,436.2 | |
Gross profit | 1,416.2 | 1,494.9 | 1,433.7 | |
Operating expenses | ||||
Distribution | 93 | 85.1 | 82 | |
Research and development | 122 | 121.7 | 119.2 | |
Selling | 536.4 | 545.5 | 538.7 | |
Administration | 482 | 478.5 | 476.5 | |
Impairment charges | 173.1 | 0 | 13.8 | |
Restructuring | 16.9 | 3.2 | 25.9 | |
Other operating expense (income) | (417.6) | (4.3) | 2.9 | |
Total operating expenses | 1,005.8 | 1,229.7 | 1,259 | |
Operating income | 410.4 | 265.2 | 174.7 | |
Change in financial assets | 0 | 95.3 | (22.1) | |
Interest expense, net | 125 | 127.7 | 117.5 | |
Other (income) expense, net | 26.7 | 16.3 | (68.9) | |
Loss on extinguishment of debt | 0 | 20 | 0.2 | |
Income from continuing operations before income taxes | 258.7 | 5.9 | 148 | |
Income tax expense (benefit) | 389.6 | (38.3) | (10.7) | |
Income (loss) from continuing operations | (130.9) | 44.2 | 158.7 | |
Income (loss) from discontinued operations, net of tax | 62 | (206.8) | (12.6) | |
Net income (loss) | $ (68.9) | $ (162.6) | $ 146.1 | |
Basic | ||||
Continuing operations (in dollars per share) | $ (0.98) | $ 0.32 | $ 1.16 | |
Discontinued operations (in dollars per share) | 0.46 | (1.52) | (0.09) | |
Basic (in dollars per share) | (0.52) | (1.20) | 1.07 | |
Diluted | ||||
Continuing operations (in dollars per share) | (0.98) | 0.32 | 1.16 | |
Discontinued operations (in dollars per share) | 0.46 | (1.51) | (0.09) | |
Diluted (in dollars per share) | $ (0.52) | $ (1.19) | $ 1.07 | |
Weighted-average shares outstanding | ||||
Basic (in shares) | 133.6 | 136.1 | 136 | |
Diluted (in shares) | 133.6 | 137.2 | 136.5 | |
[1] | The net sales by geography is derived from the location of the entity that sells to a third party. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) shares in Millions, $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 1,864.9 | $ 631.5 |
Accounts receivable, net of allowance for credit losses of $7.2 and $6.5, respectively | 652.9 | 593.5 |
Inventories | 1,020.2 | 1,059.4 |
Prepaid expenses and other current assets | 305.8 | 182.2 |
Current assets held for sale | 16.1 | 666.9 |
Total current assets | 3,859.9 | 3,133.5 |
Property, plant and equipment, net | 864.1 | 864.6 |
Operating lease assets | 166.9 | 154.7 |
Goodwill and indefinite-lived intangible assets | 3,004.7 | 3,102.7 |
Definite-lived intangible assets, net | 2,146.1 | 2,481.5 |
Deferred income taxes | 6.5 | 40.6 |
Non-current assets held for sale | 0 | 1,364 |
Other non-current assets | 377.5 | 346.8 |
Total non-current assets | 6,565.8 | 8,354.9 |
Total assets | 10,425.7 | 11,488.4 |
Liabilities and Shareholders’ Equity | ||
Accounts payable | 411.2 | 451.6 |
Payroll and related taxes | 118.5 | 152.9 |
Accrued customer programs | 125.6 | 128.5 |
Other accrued liabilities | 279.4 | 183.1 |
Accrued income taxes | 16.5 | 9 |
Current indebtedness | 603.8 | 37.3 |
Current liabilities held for sale | 32.9 | 419.6 |
Total current liabilities | 1,587.9 | 1,382 |
Long-term debt, less current portion | 2,916.7 | 3,527.6 |
Deferred income taxes | 239.3 | 276.2 |
Non-current liabilities held for sale | 0 | 108.3 |
Other non-current liabilities | 530.1 | 539.2 |
Total non-current liabilities | 3,686.1 | 4,451.3 |
Total liabilities | 5,274 | 5,833.3 |
Commitments and contingencies - Refer to Note 19 | ||
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 | 7,043.2 | 7,118.2 |
Accumulated other comprehensive income | 35.5 | 395 |
Retained earnings (accumulated deficit) | (1,927) | (1,858.1) |
Total shareholders’ equity | 5,151.7 | 5,655.1 |
Total liabilities and shareholders' equity | $ 10,425.7 | $ 11,488.4 |
Supplemental Disclosures of Balance Sheet Information | ||
Preferred shares, issued and outstanding | 0 | 0 |
Ordinary shares, issued and outstanding | 133.8 | 133.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Millions | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2021€ / shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020€ / shares |
Statement of Financial Position [Abstract] | ||||
Allowance for credit losses | $ | $ 7.2 | $ 6.5 | ||
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 Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (68.9) | $ (162.6) | $ 146.1 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (339.9) | 274.4 | 28.4 |
Change in fair value of derivative financial instruments | (21.3) | (13.4) | 28.2 |
Change in post-retirement and pension liability | 1.7 | (5.4) | (1.8) |
Other comprehensive income (loss), net of tax | (359.5) | 255.6 | 54.8 |
Comprehensive income (loss) | $ (428.4) | $ 93 | $ 200.9 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows From (For) Operating Activities | |||
Net income (loss) | $ (68.9) | $ (162.6) | $ 146.1 |
Adjustments to derive cash flows: | |||
Depreciation and amortization | 312.2 | 384.8 | 396.5 |
Loss (Gain) on sale of business | (47.5) | 20.9 | (71.7) |
Share-based compensation | 60.1 | 58.5 | 52.2 |
Impairment charges | 173.1 | 346.8 | 184.5 |
Change in financial assets | 0 | 96.4 | (22.1) |
Loss on extinguishment of debt | 0 | 20 | 0.2 |
Restructuring charges | 16.9 | 3.5 | 26.3 |
Deferred income taxes | 9.4 | (54.5) | (43.9) |
Amortization of debt premium | (3.8) | (2.4) | (4.4) |
Other non-cash adjustments, net | 0.2 | (6) | 37.6 |
Subtotal | 451.7 | 705.4 | 701.3 |
Increase (decrease) in cash due to: | |||
Accounts receivable | (159.7) | 168.9 | (140.7) |
Inventories | (2.4) | (170.6) | (67) |
Accounts payable | (7.9) | (2.7) | 17 |
Payroll and related taxes | (53) | 10.8 | (3.7) |
Accrued customer programs | 1.4 | (43.3) | (48.6) |
Accrued liabilities | (21.4) | (23.1) | (23.2) |
Accrued income taxes | (47.7) | (7) | (74.5) |
Other, net | (4.7) | (2.2) | 27.2 |
Subtotal | (295.4) | (69.2) | (313.5) |
Net cash from (for) operating activities | 156.3 | 636.2 | 387.8 |
Cash Flows From (For) Investing Activities | |||
Proceeds from royalty rights | 3.8 | 4.1 | 2.9 |
Acquisitions of businesses, net of cash acquired | 0 | (168.5) | (747.7) |
Asset acquisitions | (70.6) | (35.2) | (149.1) |
Purchase of equity method investment | 0 | (15) | 0 |
Proceeds from the Royalty Pharma contingent milestone | 0 | 0 | 250 |
Additions to property, plant and equipment | (152.1) | (170.4) | (137.7) |
Net proceeds from sale of businesses | 1,491.9 | 187.8 | 182.5 |
Other investing, net | 2.8 | 9.4 | 3 |
Net cash from (for) investing activities | 1,275.8 | (187.8) | (596.1) |
Cash Flows From (For) Financing Activities | |||
Borrowings (repayments) of revolving credit agreements and other financing, net | (30.6) | (3.9) | 0.5 |
Issuances of long-term debt | 0 | 743.8 | 600 |
Payments on long-term debt | 0 | (590) | (476) |
Premiums on early debt retirement | 0 | (19) | 0 |
Deferred financing fees | 0 | (6.7) | (1) |
Issuance of ordinary shares | 0 | 0 | 0.9 |
Repurchase of ordinary shares | 0 | (164.2) | 0 |
Cash dividends | (129.6) | (123.9) | (112.4) |
Other financing, net | (18.5) | (17.2) | (10.2) |
Net cash from (for) financing activities | (178.7) | (181.1) | 1.8 |
Effect of exchange rate changes on cash and cash equivalents | (15.6) | 19.9 | 9.7 |
Net increase (decrease) in cash and cash equivalents | 1,237.8 | 287.2 | (196.8) |
Cash and cash equivalents of continuing operations, beginning of period | 631.5 | 344.5 | 541.9 |
Cash and cash equivalents held for sale, beginning of period | 10 | 9.8 | 9.2 |
Less cash and cash equivalents held for sale, end of period | (14.4) | (10) | (9.8) |
Cash and cash equivalents of continuing operations, end of period | 1,864.9 | 631.5 | 344.5 |
Cash paid/received during the year for: | |||
Interest paid | 133 | 145.8 | 136.8 |
Interest received | 8 | 12.1 | 15.1 |
Income taxes paid | 448 | 81.2 | 136.2 |
Income taxes refunded | $ 17.1 | $ 38.3 | $ 28 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ 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, shares at Dec. 31, 2018 | 135.9 | ||||||
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 | 0.9 | $ 0.9 | |||||
Restricted stock plan, shares | 0.3 | ||||||
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 | (0.1) | ||||||
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 | 136.1 | ||||||
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: | |||||||
Restricted stock plan, shares | 0.6 | ||||||
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 | (0.2) | ||||||
Shares withheld for payment of employees' withholding tax liability | (10.7) | $ (10.7) | |||||
Repurchases of ordinary shares, shares | (3.4) | ||||||
Repurchases of ordinary shares | (164.2) | $ (164.2) | |||||
Purchase of subsidiary's minority interest | (1.4) | $ (1.4) | |||||
Balance, shares at Dec. 31, 2020 | 133.1 | ||||||
Balance at Dec. 31, 2020 | 5,655.1 | $ 7,118.2 | 395 | (1,858.1) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (68.9) | (68.9) | |||||
Other comprehensive income (loss) | (359.5) | (359.5) | |||||
Issuance of ordinary shares under: | |||||||
Restricted stock plan, shares | 1 | ||||||
Compensation for stock options | 0.9 | $ 0.9 | |||||
Compensation for restricted stock | 66.9 | 66.9 | |||||
Cash dividends | (129.6) | $ (129.6) | |||||
Shares withheld for payment of employees' withholding tax liability, shares | (0.3) | ||||||
Shares withheld for payment of employees' withholding tax liability | (13.2) | $ (13.2) | |||||
Balance, shares at Dec. 31, 2021 | 133.8 | ||||||
Balance at Dec. 31, 2021 | $ 5,151.7 | $ 7,043.2 | $ 35.5 | $ (1,927) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid (per share) | $ 0.96 | $ 0.90 | $ 0.82 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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 t o 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 are designed to enhance individual well-being and empower consumers to proactively prevent or treat conditions that can be self-managed. 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 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, and our store brand business in the United Kingdom and parts of Europe and Asia. Our liquid licensed products business in the United Kingdom was included in this segment until it was divested on June 19, 2020. We previously had an RX segment which was comprised of our prescription pharmaceuticals business in the U.S., and other pharmaceuticals and diagnostic business in Israel, which have been divested. Following the divestiture, there were no substantial assets or operations left in this segment. The RX segment was reported as Discontinued Operations in 2021, and is presented as such for all periods in this report (refer to Note 8 ). 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 21 . 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 arrangements with certain 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. 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 rebates and other incentive programs recorded on the Consolidated Balance Sheets as Accrued customer programs. 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 $125.8 million and $147.5 million at December 31, 2021 and December 31, 2020, 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 research and development ("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 10 . 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 we have not elected hedge accounting. 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. Net foreign exchange losses totaled $26.8 million, $0.3 million, and $3.2 million for the years ended December 31, 2021 , December 31, 2020, and December 31, 2019, respectively. The 2021 loss includes a loss of $20.9 million for the change in fair value of the option contracts to hedge the foreign currency exposure of the euro-denominated purchase price for HRA Pharma. For more information on our derivatives, refer to Note 11 . 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 10 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 $86.8 million, $75.6 million, and $77.5 million for the years ended December 31, 2021 , December 31, 2020, and December 31, 2019, respectively. We held the following property, plant and equipment, net (in millions): December 31, December 31, Land $ 51.3 $ 52.2 Buildings 537.6 516.1 Machinery and equipment 1,186.8 1,157.2 Gross property, plant and equipment 1,775.7 1,725.5 Less: accumulated depreciation (911.6) (860.9) Property, plant and equipment, net $ 864.1 $ 864.6 Leases 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 12 . 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 two reporting units that are evaluated for impairment as of December 31, 2021. 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 15 ). 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 17 ). 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 19 ). 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 $122.0 million, $121.7 million, and $119.2 million, for the years ended December 31, 2021, December 31, 2020 and December 31, 2019, respectively. We actively collaborate with other 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. We enter into a number of collaboration agreements in the ordinary course of business. Terms of such 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. 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, 2021 , 90% of advertising expense was attributable to our CSCI segment. Advertising costs were as follows (in millions): Year Ended December 31, December 31, 2020 December 31, $ 130.9 $ 130.5 $ 142.8 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 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 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition | REVENUE RECOGNITION 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. $ 2,565.9 $ 2,579.0 $ 2,360.3 Europe (2) 1,393.0 1,350.6 1,335.8 All other countries (3) 179.8 158.6 173.8 Total net sales $ 4,138.7 $ 4,088.2 $ 3,869.9 (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 $23.7 million, $29.8 million, and $23.4 million for the years ended December 31, 2021, December 31, 2020, and December 31, 2019, respectively. (3) Includes revenue generated primarily in Mexico, Australia, and Canada. Product Category The following is a summary of our net sales by category (in millions): Year Ended December 31, 2021 December 31, 2020 December 31, CSCA (1) Upper respiratory $ 483.1 $ 505.8 $ 529.3 Digestive health 475.1 471.3 429.2 Pain and sleep-aids 405.4 434.5 390.9 Nutrition 401.9 388.3 395.3 Oral care 311.9 288.2 111.7 Healthy lifestyle 297.7 352.4 356.1 Skincare and personal hygiene 219.2 200.6 191.3 Vitamins, minerals, and supplements 31.7 27.0 28.6 Animal health — — 43.7 Other CSCA (2) 67.1 24.9 11.6 Total CSCA 2,693.1 2,693.0 2,487.7 CSCI Skincare and personal hygiene 394.3 351.8 371.6 Upper respiratory 226.2 255.1 276.8 Vitamins, minerals, and supplements 217.4 201.0 180.2 Pain and sleep-aids 201.8 190.4 167.9 Healthy lifestyle 179.3 165.4 173.8 Oral care 95.8 97.8 51.2 Digestive health 38.4 26.5 27.1 Other CSCI (3) 92.4 107.2 133.6 Total CSCI 1,445.6 1,395.2 1,382.2 Total net sales $ 4,138.7 $ 4,088.2 $ 3,869.9 (1) Includes net sales from our OTC contract manufacturing business. (2) Consists primarily of product sales and royalty income related to supply and distribution agreements, 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 $299.7 million, $261.4 million, and $285.3 million for the years ended December 31, 2021, December 31, 2020, and December 31, 2019, 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 $ 40.2 $ 19.7 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and divestitures | ACQUISITIONS AND DIVESTITURES Acquisitions During the Year Ended December 31, 2021 Héra SAS (“HRA Pharma”) Acquisition Agreement On September 8, 2021, we and our wholly-owned subsidiary Habsont Unlimited Company (the "Purchaser"), entered into a Put Option Agreement to acquire certain holding companies holding all of the outstanding equity interests of HRA Pharma from funds affiliated with private equity firms Astorg and Goldman Sachs Asset Management (collectively, the "Sellers"). Pursuant to the Put Option Agreement, following completion of the works council consultation process required under French law, the selling shareholders exercised their put option right under the Put Option Agreement and, on October 20, 2021, the Company, the Purchaser and the Sellers entered into a Securities Sale Agreement in the form previously agreed by the parties (the “Purchase Agreement”). Pursuant to the terms and subject to the conditions set forth in the Purchase Agreement, the Purchaser has agreed to acquire certain holding companies holding all of the outstanding equity interests of HRA Pharma from the Sellers for cash. The transaction values HRA Pharma at approximately €1.8 billion, or approximately $2.1 billion based on exchange rates as of the date of the Put Option Agreement, on an enterprise value basis and using a lockbox mechanism set forth in the Purchase Agreement. In September 2021, we entered into two non-designated currency option contracts to hedge the foreign currency exposure of the euro-denominated purchase price for HRA Pharma (refer to Note 11 ). The proposed final transaction is expected to close in the first half of 2022, subject to the satisfaction of customary closing conditions, including regulatory approvals. We intend to pay the purchase price using a combination of cash on hand and, depending upon market conditions, either funds available under our current credit facility or funds from new debt financing. Operating results are expected to be reported within both our CSCA and CSCI segments. Acquisitions During the Year Ended December 31, 2020 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 market-leading OTC brands complements our already robust skincare portfolio and adds scale to our Eastern European business. The acquisition also serves as another step for our CSCI growth plan and provides new opportunities for self-care revenue synergy in the European markets. The operating results of the brands are 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. 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. The opening balance sheet is final. 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 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, are reported in our CSCA segment and the remaining non-U.S. operations are 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. 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 combining the operations of Dr. Fresh into Perrigo. The goodwill is attributable to our CSCA segment and is tax 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. The opening balance sheet is final. 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. 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 13 ). Ranir is headquartered in Grand Rapids, Michigan and is a leading global supplier of private label and branded oral 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 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. Pro Forma Impact of Business Combinations The following table presents unaudited pro forma information as if the acquisition of Ranir, Dr. Fresh and the Eastern European brands 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, December 31, Net sales $ 4,136.5 $ 4,144.7 Income from continuing operations $ 58.2 $ 185.0 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, 2021 RX business Refer to Note 8 - Discontinued Operations for details on the sale of the RX business. 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, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | GOODWILL AND INTANGIBLE ASSETS Changes in the carrying amount of goodwill, by reportable segment, were as follows (in millions): CSCA (1) CSCI (2) Total Balance at December 31, 2019 $ 1,899.1 $ 1,203.7 $ 3,102.8 Business divestitures — (115.6) (115.6) Business acquisitions 14.8 7.3 22.1 Currency translation adjustments 1.5 83.3 84.8 Purchase accounting adjustments (10.4) 12.0 1.6 Balance at December 31, 2020 1,905.0 1,190.7 3,095.7 Impairments (6.1) (10.0) (16.1) Purchase accounting adjustments 2.4 (2.4) — Currency translation adjustments 1.1 (81.3) (80.2) Balance at December 31, 2021 $ 1,902.4 $ 1,097.0 $ 2,999.4 (1) We had accumulated goodwill impairments of $6.1 as of December 31, 2021. (2) We had accumulated goodwill impairments of $878.4 as of December 31, 2021 and $868.4 million as of December 31, 2020. CSCA Reporting Unit Goodwill On May 18, 2021, we announced a definitive agreement to sell our Mexico and Brazil-based OTC businesses ("Latin American businesses"), both within our CSCA segment, to Advent International. As a result, we prepared a goodwill impairment test. We determined the carrying value of this business exceeded the fair value and recorded an impairment of $6.1 million within our CSCA segment during the three months ended July 3, 2021 (refer to Note 7 and Note 9 ). CSCI Reporting Unit Goodwill During the three months ended December 31, 2021, we reorganized the reporting structure within our CSCI segment following the integration of our reporting units into a new operating structure. The goodwill previously included in the Oral Care International, CSC UK and Australia, and BCS reporting units was combined into a single CSCI reporting unit. Impairment tests were performed for the legacy reporting units prior to the reorganization and for the CSCI reporting unit immediately after the reorganization. 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 prior annual impairment test as of October 1, 2019. There was no indication of impairment during the remaining six months of December 31, 2020, nor during the year ended December 31, 2021. In conjunction with our annual impairment test, during the three months ended December 31, 2021, we recorded an impairment charge in our Oral Care International reporting unit within our CSCI segment of $10.0 million. The change in fair value from previous estimates was driven by reduced projections of future cash flows resulting from increased costs throughout the global supply chain (refer to N ote 7 ). Intangible assets and the related accumulated amortization consisted of the following (in millions): Year Ended December 31, 2021 December 31, 2020 Gross Accumulated Gross Accumulated Indefinite-lived intangibles: Trademarks, trade names, and brands $ 3.5 $ — $ 4.3 $ — In-process research and development 1.8 — 2.7 — Total indefinite-lived intangibles $ 5.3 $ — $ 7.0 $ — Definite-lived intangibles: Distribution and license agreements and supply agreements $ 73.2 $ 56.9 $ 74.8 $ 55.4 Developed product technology, formulations, and product rights 300.2 191.4 303.3 177.3 Customer relationships and distribution networks 1,820.7 887.8 1,920.5 823.7 Trademarks, trade names, and brands 1,482.3 394.2 1,581.5 342.2 Non-compete agreements 2.1 2.1 2.9 2.9 Total definite-lived intangibles $ 3,678.5 $ 1,532.4 $ 3,883.0 $ 1,401.5 Total intangible assets $ 3,683.8 $ 1,532.4 $ 3,890.0 $ 1,401.5 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, 2021 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 8 Customer relationships and distribution networks 15 Trademarks, trade names, and brands 15 We recorded amortization expense of $210.0 million, $212.2 million, and $219.6 million during the years ended December 31, 2021 , December 31, 2020, and December 31, 2019, respectively. Our estimated future amortization expense is as follows (in millions): Year Amount 2022 $ 194.9 2023 183.6 2024 174.7 2025 168.0 2026 160.2 Thereafter 1,264.7 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 ). In-process R&D ("IPR&D") We recorded an impairment charge of $0.9 million and $4.1 million on certain IPR&D assets during the years ended December 31, 2021 and December 31, 2019, respectively, due to changes in the projected development and regulatory timelines for various projects. |
Accounts Receivable Factoring
Accounts Receivable Factoring | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable Factoring [Abstract] | |
Accounts receivable factoring | ACCOUNTS RECEIVABLE FACTORING During the year ended December 31, 2020, we had 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. At December 31, 2020, the total amount factored on a non-recourse basis and excluded from accounts receivable was $6.9 million. During the year ended December 31, 2021, the factoring program was discontinued and there were no amounts factored on a non-recourse basis and excluded from accounts receivable. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Major components of inventory were as follows (in millions): Year Ended December 31, December 31, Finished goods $ 549.2 $ 574.1 Work in process 251.9 220.4 Raw materials 219.1 264.9 Total inventories $ 1,020.2 $ 1,059.4 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | 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, 2021 December 31, 2020 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Measured at fair value on a recurring basis: Assets: Investment securities $ 0.4 $ — $ — $ 2.5 $ — $ — Foreign currency forward contracts — 5.7 — — 9.8 — Cross-currency swap — — — — 6.3 — Foreign currency option contracts — 5.0 — — — — Total assets $ 0.4 $ 10.7 $ — $ 2.5 $ 16.1 $ — Liabilities: Foreign currency forward contracts $ — $ 2.4 $ — $ — $ 7.9 $ — Cross-currency swap — 13.8 — — — — Total liabilities $ — $ 16.2 $ — $ — $ 7.9 $ — Measured at fair value on a non-recurring basis: Assets: Goodwill (1) $ — $ — $ 71.7 $ — $ — $ — Total assets $ — $ — $ 71.7 $ — $ — $ — Liabilities Liabilities held for sale, net (2) $ — $ — $ 16.8 $ — $ — $ — Total liabilities $ — $ — $ 16.8 $ — $ — $ — (1) During the year ended December 31, 2021, goodwill with a carrying value of $81.7 million was written down to a fair value of $71.7 million. (2) We measured the net assets held for sale for impairment purposes and recorded a total impairment of $162.2 million, resulting in a net liability held for sale balance (refer to Note 9 ). There were no transfers within Level 3 fair value measurements during the years ended December 31, 2021 or December 31, 2020 (refer to Note 10 for information on our investment securities and Note 11 for a discussion of derivatives). Foreign Currency Option Contracts We valued the foreign currency option contract derivatives using an extension of the Black-Scholes Option Pricing Model ("BSOPM") which uses the strike price and expiry as inputs obtained from the contractual agreement. Additionally, the model uses risk-free interest rates, forward currency quotes, and option volatility assumptions obtained from the observable market. 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 rate. Royalty Pharma Contingent Milestone 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. Therefore, we were not entitled to receive the remaining contingent milestone payment. As of December 31, 2020, there were no contingent milestone payments outstanding. The table below summarizes the change in fair value of the Royalty Pharma contingent milestone (in millions): Year Ended December 31, Balance at beginning of period $ 95.3 Change in fair value (95.3) Balance at end of period $ — 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. 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 Latin America During the year ended December 31, 2021, as a result of our definitive agreement to sell our Latin American businesses, we prepared a goodwill impairment test. We determined the carrying value of this business exceeded the fair value and recorded an impairment in the CSCA segment (refer to Note 4 ). Oral Care Reporting Unit Goodwill During the year ended December 31, 2021, we prepared a goodwill impairment test utilizing a combination of comparable company and discounted cash flow techniques. In our comparable company market approach, we considered observable market information (Level 2 inputs). Our cash flow projections included revenue assumptions, 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 2.0%. We used a discount rate of 9.75% in the analysis, which 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 16.5% to 29.1%. 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 N ote 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 ). Assets (liabilities) held for sale, net During the year ended December 31, 2021, as a result of our definitive agreement to sell our Latin American businesses, we prepared an impairment test on the net assets held for sale related to this business. We determined the carrying value of the net assets held for sale exceed the fair value less cost to sell and recorded an impairment in the CSCA segment (refer to Note 9 ). 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 $ — $ 2,760.0 $ — Fair value $ 2,847.2 $ — $ 3,031.1 $ — Private placement note Carrying value (excluding premium) $ — $ 153.5 $ — $ 164.9 Fair value $ — $ 162.6 $ — $ 177.5 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. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS Our discontinued operations primarily consist of our RX segment, which held our prescription pharmaceuticals business in the U.S. and our pharmaceuticals and diagnostic businesses in Israel (collectively, the “RX business”). On March 1, 2021, we announced a definitive agreement to sell our RX business to Altaris. On July 6, 2021, we completed the sale of the RX business for aggregate consideration of $1.55 billion. The consideration includes a $53.3 million reimbursement related to an ANDA for a generic topical lotion which Altaris is required to deliver in cash to Perrigo pursuant to the terms of the Agreement. The sale resulted in a pre-tax gain, net of professional fees, of $47.5 million recorded in Other (income) expense, net on the Statement of Operations for discontinued operations. The gain included a $159.3 million increase from the write-off of foreign currency translation adjustment from Accumulated other comprehensive income. The transaction gain was subject to final settlements under the Agreement, which were finalized in the first quarter of 2022 with no change to the gain reported for the year ended December 31, 2021. As of March 1, 2021, we determined that the RX business met the criteria to be classified as a discontinued operation and, as a result, its historical financial results have been reflected in our consolidated financial statements as a discontinued operation and its assets and liabilities have been classified as held for sale. We ceased recording depreciation and amortization on the RX business assets from March 1, 2021. We have not allocated any general corporate overhead to the discontinued operation. Under the terms of the agreement, we will provide transition services for up to 24 months after the close of the transaction and we entered into a reciprocal supply agreement pursuant to which Perrigo will supply certain products to the RX business and the RX business will supply certain products to Perrigo. The supply agreements have a term of four years, extendable up to seven years by the party who is the purchaser of the products under such agreement. We also extended distribution rights to the RX business for certain OTC products owned and manufactured by Perrigo that may be fulfilled through pharmacy channels, in return for a share of the net profits. We recognized $7.2 million of income related to the transition services agreement ("TSA") in Other operating expense (income) and collected $3.6 million during the year ended December 31, 2021. We recognized $60.6 million of product sales and royalty income in Net sales related to the supply and distribution agreements with the RX business, of which $28.7 million was collected during the year ended December 31, 2021. We purchased $18.4 million of inventories related to the supply arrangement with the RX business of which we paid $12.0 million during the year ended December 31, 2021. Additionally, under the TSA, we net settle any receipts received or payments made on behalf of the RX business’ customers or vendors. As of December 31, 2021, we recorded a receivable in the amount of $2.3 million in Prepaid expenses and other current assets for the reimbursement due to Perrigo. In the transaction, Perrigo retained certain pre-closing liabilities arising out of antitrust (refer to Note 19 - Contingencies under the header "Price-Fixing Lawsuits") and opioid matters and the Company’s Albuterol recall, subject to, in each case, the buyer's obligation to indemnify the Company for fifty percent of these liabilities up to an aggregate cap on the buyer's obligation of $50.0 million. We have not requested payments from the buyer related to the indemnity of these liabilities during the twelve months ended December 31, 2021. Income from discontinued operations, net of tax was as follows (in millions): Year Ended December 31, 2021 December 31, 2020 December 31, Net sales $ 405.1 $ 975.0 $ 967.5 Cost of sales 258.4 645.1 619.5 Gross profit 146.7 329.9 348.0 Operating expenses Distribution 6.1 15.2 14.1 Research and development 30.8 54.8 67.3 Selling 16.3 30.1 25.1 Administration 36.4 31.8 39.1 Impairment charges — 346.8 170.7 Restructuring — 0.3 0.3 Other operating expense (income) (0.4) 0.7 1.3 Total operating expenses 89.2 479.7 317.9 Operating income (loss) 57.5 (149.8) 30.1 Interest expense, net 0.8 3.5 4.3 Other (income) expense, net (1.6) 2.0 2.8 Income (loss) from discontinued operations before tax 58.3 (155.3) 23.0 Gain on disposal of discontinued operations before tax (47.5) — — Income (loss) before income taxes 105.8 (155.3) 23.0 Income tax expense 43.8 51.5 35.6 Income (loss), net of tax $ 62.0 $ (206.8) $ (12.6) During the year ended December 31, 2021, we incurred $40.8 million of separation costs related to the sale of the RX business. The costs incurred included selling costs, which were reported in gain on discontinued operations before tax as part of the gain on sale of the RX business. Separation costs incurred in prior periods were included in administration expenses. Select cash flow information related to discontinued operations was as follows (in millions): Year Ended December 31, 2021 December 31, 2020 December 31, Cash flows from discontinued operations operating activities: Depreciation and amortization $ 15.4 $ 97.0 $ 99.4 Restructuring charges — 0.3 0.3 Impairment charges — 346.8 170.7 Share-based compensation 10.8 5.2 5.5 Gain on sale of business (47.5) — — Cash flows from discontinued operations investing activities: Asset acquisitions $ (69.7) $ (0.9) $ (49.1) Additions to property, plant and equipment (16.1) (10.2) (16.3) Net proceeds from sale of business 1,491.9 — — Asset acquisitions related to discontinued operations consisted of two Abbreviated New Drug Applications ("ANDAs") purchased under a contractual arrangement. On December 31, 2020, we purchased an ANDA for a generic topical gel for $16.4 million, which was subsequently paid during the three months ended April 3, 2021 and on March 8, 2021, we purchased an ANDA for a generic topical lotion for $53.3 million. These ANDAs were acquired by Altaris as part of the RX business sale. The assets and liabilities classified as held for sale related to discontinued operations were as follows (in millions): December 31, Cash and cash equivalents $ 10.0 Accounts receivable, net of allowance for credit losses of $1.1 460.7 Inventories 140.8 Prepaid expenses and other current assets 55.4 Current assets held for sale 666.9 Property, plant and equipment, net 131.4 Operating lease assets 31.3 Goodwill and indefinite-lived intangible assets 681.2 Definite-lived intangible assets, net 492.8 Deferred income taxes 3.6 Other non-current assets 23.7 Non-current assets held for sale 1,364.0 Total assets held for sale $ 2,030.9 Accounts payable $ 92.2 Payroll and related taxes 22.3 Accrued customer programs 237.4 Other accrued liabilities 67.2 Current indebtedness 0.5 Current liabilities held for sale 419.6 Long-term debt, less current portion 0.7 Deferred income taxes 3.1 Other non-current liabilities 104.5 Non-current liabilities held for sale 108.3 Total liabilities held for sale $ 527.9 We classify assets as "held for sale" when, among other factors, management approves and commits to a formal plan of sale with the expectation the sale will be completed within one year. The net assets of the business held for sale are then recorded at the lower of their current carrying value and the fair market value, less costs to sell. During the three months ended July 3, 2021, management committed to a plan to sell our Latin American businesses; as a result, such assets were classified as held for sale. The assets associated with this business were reported within our CSCA segment. The sale is expected to close in the first half of 2022. At July 3, 2021, we determined the carrying value of the net assets held for sale of this business exceeded their fair value less cost to sell, resulting in an impairment charge of $152.5 million. At December 31, 2021 and October 2, 2021 we recorded additional impairment charge of $1.0 million and $2.6 million, respectively resulting in a total impairment charge of $156.1 million. We also recorded a goodwill impairment charge of $6.1 million within our CSCA segment (refer to Note 4 ), resulting in a total impairment charge of $162.2 million. The assets and liabilities held for sale related to the Latin American businesses were reported within Current assets held for sale and Current liabilities held for sale on the Consolidated Balance Sheets. Net of impairment charges, the assets and liabilities of the Latin American businesses reported as held for sale as of December 31, 2021 totaled $16.1 million and $32.9 million, respectively. |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | DISCONTINUED OPERATIONS Our discontinued operations primarily consist of our RX segment, which held our prescription pharmaceuticals business in the U.S. and our pharmaceuticals and diagnostic businesses in Israel (collectively, the “RX business”). On March 1, 2021, we announced a definitive agreement to sell our RX business to Altaris. On July 6, 2021, we completed the sale of the RX business for aggregate consideration of $1.55 billion. The consideration includes a $53.3 million reimbursement related to an ANDA for a generic topical lotion which Altaris is required to deliver in cash to Perrigo pursuant to the terms of the Agreement. The sale resulted in a pre-tax gain, net of professional fees, of $47.5 million recorded in Other (income) expense, net on the Statement of Operations for discontinued operations. The gain included a $159.3 million increase from the write-off of foreign currency translation adjustment from Accumulated other comprehensive income. The transaction gain was subject to final settlements under the Agreement, which were finalized in the first quarter of 2022 with no change to the gain reported for the year ended December 31, 2021. As of March 1, 2021, we determined that the RX business met the criteria to be classified as a discontinued operation and, as a result, its historical financial results have been reflected in our consolidated financial statements as a discontinued operation and its assets and liabilities have been classified as held for sale. We ceased recording depreciation and amortization on the RX business assets from March 1, 2021. We have not allocated any general corporate overhead to the discontinued operation. Under the terms of the agreement, we will provide transition services for up to 24 months after the close of the transaction and we entered into a reciprocal supply agreement pursuant to which Perrigo will supply certain products to the RX business and the RX business will supply certain products to Perrigo. The supply agreements have a term of four years, extendable up to seven years by the party who is the purchaser of the products under such agreement. We also extended distribution rights to the RX business for certain OTC products owned and manufactured by Perrigo that may be fulfilled through pharmacy channels, in return for a share of the net profits. We recognized $7.2 million of income related to the transition services agreement ("TSA") in Other operating expense (income) and collected $3.6 million during the year ended December 31, 2021. We recognized $60.6 million of product sales and royalty income in Net sales related to the supply and distribution agreements with the RX business, of which $28.7 million was collected during the year ended December 31, 2021. We purchased $18.4 million of inventories related to the supply arrangement with the RX business of which we paid $12.0 million during the year ended December 31, 2021. Additionally, under the TSA, we net settle any receipts received or payments made on behalf of the RX business’ customers or vendors. As of December 31, 2021, we recorded a receivable in the amount of $2.3 million in Prepaid expenses and other current assets for the reimbursement due to Perrigo. In the transaction, Perrigo retained certain pre-closing liabilities arising out of antitrust (refer to Note 19 - Contingencies under the header "Price-Fixing Lawsuits") and opioid matters and the Company’s Albuterol recall, subject to, in each case, the buyer's obligation to indemnify the Company for fifty percent of these liabilities up to an aggregate cap on the buyer's obligation of $50.0 million. We have not requested payments from the buyer related to the indemnity of these liabilities during the twelve months ended December 31, 2021. Income from discontinued operations, net of tax was as follows (in millions): Year Ended December 31, 2021 December 31, 2020 December 31, Net sales $ 405.1 $ 975.0 $ 967.5 Cost of sales 258.4 645.1 619.5 Gross profit 146.7 329.9 348.0 Operating expenses Distribution 6.1 15.2 14.1 Research and development 30.8 54.8 67.3 Selling 16.3 30.1 25.1 Administration 36.4 31.8 39.1 Impairment charges — 346.8 170.7 Restructuring — 0.3 0.3 Other operating expense (income) (0.4) 0.7 1.3 Total operating expenses 89.2 479.7 317.9 Operating income (loss) 57.5 (149.8) 30.1 Interest expense, net 0.8 3.5 4.3 Other (income) expense, net (1.6) 2.0 2.8 Income (loss) from discontinued operations before tax 58.3 (155.3) 23.0 Gain on disposal of discontinued operations before tax (47.5) — — Income (loss) before income taxes 105.8 (155.3) 23.0 Income tax expense 43.8 51.5 35.6 Income (loss), net of tax $ 62.0 $ (206.8) $ (12.6) During the year ended December 31, 2021, we incurred $40.8 million of separation costs related to the sale of the RX business. The costs incurred included selling costs, which were reported in gain on discontinued operations before tax as part of the gain on sale of the RX business. Separation costs incurred in prior periods were included in administration expenses. Select cash flow information related to discontinued operations was as follows (in millions): Year Ended December 31, 2021 December 31, 2020 December 31, Cash flows from discontinued operations operating activities: Depreciation and amortization $ 15.4 $ 97.0 $ 99.4 Restructuring charges — 0.3 0.3 Impairment charges — 346.8 170.7 Share-based compensation 10.8 5.2 5.5 Gain on sale of business (47.5) — — Cash flows from discontinued operations investing activities: Asset acquisitions $ (69.7) $ (0.9) $ (49.1) Additions to property, plant and equipment (16.1) (10.2) (16.3) Net proceeds from sale of business 1,491.9 — — Asset acquisitions related to discontinued operations consisted of two Abbreviated New Drug Applications ("ANDAs") purchased under a contractual arrangement. On December 31, 2020, we purchased an ANDA for a generic topical gel for $16.4 million, which was subsequently paid during the three months ended April 3, 2021 and on March 8, 2021, we purchased an ANDA for a generic topical lotion for $53.3 million. These ANDAs were acquired by Altaris as part of the RX business sale. The assets and liabilities classified as held for sale related to discontinued operations were as follows (in millions): December 31, Cash and cash equivalents $ 10.0 Accounts receivable, net of allowance for credit losses of $1.1 460.7 Inventories 140.8 Prepaid expenses and other current assets 55.4 Current assets held for sale 666.9 Property, plant and equipment, net 131.4 Operating lease assets 31.3 Goodwill and indefinite-lived intangible assets 681.2 Definite-lived intangible assets, net 492.8 Deferred income taxes 3.6 Other non-current assets 23.7 Non-current assets held for sale 1,364.0 Total assets held for sale $ 2,030.9 Accounts payable $ 92.2 Payroll and related taxes 22.3 Accrued customer programs 237.4 Other accrued liabilities 67.2 Current indebtedness 0.5 Current liabilities held for sale 419.6 Long-term debt, less current portion 0.7 Deferred income taxes 3.1 Other non-current liabilities 104.5 Non-current liabilities held for sale 108.3 Total liabilities held for sale $ 527.9 We classify assets as "held for sale" when, among other factors, management approves and commits to a formal plan of sale with the expectation the sale will be completed within one year. The net assets of the business held for sale are then recorded at the lower of their current carrying value and the fair market value, less costs to sell. During the three months ended July 3, 2021, management committed to a plan to sell our Latin American businesses; as a result, such assets were classified as held for sale. The assets associated with this business were reported within our CSCA segment. The sale is expected to close in the first half of 2022. At July 3, 2021, we determined the carrying value of the net assets held for sale of this business exceeded their fair value less cost to sell, resulting in an impairment charge of $152.5 million. At December 31, 2021 and October 2, 2021 we recorded additional impairment charge of $1.0 million and $2.6 million, respectively resulting in a total impairment charge of $156.1 million. We also recorded a goodwill impairment charge of $6.1 million within our CSCA segment (refer to Note 4 ), resulting in a total impairment charge of $162.2 million. The assets and liabilities held for sale related to the Latin American businesses were reported within Current assets held for sale and Current liabilities held for sale on the Consolidated Balance Sheets. Net of impairment charges, the assets and liabilities of the Latin American businesses reported as held for sale as of December 31, 2021 totaled $16.1 million and $32.9 million, respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 December 31, 2020 Fair value method Prepaid expenses and other current assets $ 0.4 $ 2.5 Fair value method (1) Other non-current assets $ 1.8 $ 1.9 Equity method Other non-current assets $ 66.4 $ 69.8 (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 $ 2.0 $ 3.0 $ 4.9 Equity method Other (income) expense, net $ 1.1 $ (3.0) $ (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 (“THC-free”) 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 13 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instruments and hedging activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Foreign Currency Option Contracts We enter into foreign currency option contracts, both designated and non-designated, in order to manage the impact of fluctuations of foreign exchange on expected future purchases and related payables denominated in a foreign currency and to hedge the impact of fluctuations of foreign exchange on expected future sales and related receivables denominated in a foreign currency. In September of 2021, to economically hedge the foreign currency exposure associated with the planned payment of the euro-denominated purchase price for HRA Pharma, we entered into two non-designated currency option contracts with a total notional amount of $1.1 billion that will mature in the third quarter of 2022. We recorded a loss of $20.9 million for the change in fair value of the option contracts during the year ended December 31, 2021 in Other (income) expense, net. Gains or losses on the derivatives due to changes in the EUR/USD exchange rate prior to the close of the acquisition will be economically offset at closing in the final settlement of the euro-denominated HRA Pharma purchase price. At the time of settlement, we are obligated to pay contract premiums of $25.9 million. 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. We terminated this cross-currency swap January 28, 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, 2021 and December 31, 2020. 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, European Euro (EUR) $ 232.6 $ 312.6 British Pound (GBP) 135.8 92.3 Swedish Krona (SEK) 47.8 41.2 Chinese Yuan (CNH) 37.7 49.1 Danish Krone (DKK) 37.5 65.2 Canadian Dollar (CAD) 29.0 36.8 United States Dollar (USD) 22.9 101.5 Polish Zloty (PLZ) 21.0 21.8 Norwegian Krone (NOK) 11.0 7.8 Turkish Lira (TRY) 3.1 4.0 Switzerland Franc (CHF) 1.9 8.2 Australian Dollar (AUD) 1.6 11.3 Romanian New Leu (RON) 1.6 3.6 Mexican Peso (MPX) 1.0 15.6 Israeli Shekel (ILS) — 94.4 Other 3.6 2.3 Total $ 588.1 $ 867.7 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 $ 3.5 $ 5.0 Foreign currency forward contracts Other non-current assets 1.3 0.5 Cross-currency swap Other non-current assets — 6.3 Total designated derivatives $ 4.8 $ 11.8 Non-designated derivatives Foreign currency forward contracts Prepaid expenses and other current assets $ 0.9 $ 4.3 Foreign currency options Prepaid expenses and other current assets 5.0 — Total non-designated derivatives $ 5.9 $ 4.3 Liability Derivatives Fair Value Year Ended Balance Sheet Location December 31, December 31, Designated derivatives Foreign currency forward contracts Other accrued liabilities $ 1.2 $ 5.5 Cross-currency swap Other accrued liabilities 13.8 — Total designated derivatives $ 15.0 $ 5.5 Non-designated derivatives Foreign currency forward contracts Other accrued liabilities $ 1.2 $ 2.4 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, 2021 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 5.7 Net sales (2.5) Net sales — Cost of sales 0.8 Cost of sales 0.5 Other (income) expense, net 0.7 $ 5.7 $ (3.6) $ 1.2 Net investment hedges Cross-currency swap $ (20.1) Interest expense, net $ (3.9) (1) Net loss of $7.5 million is expected to be reclassified out of AOCI into earnings during the next 12 months. Year Ended December 31, 2020 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 5.0 Net sales 0.2 Net sales 0.1 Cost of sales 2.0 Cost of sales 0.9 Other Income/Expense 0.5 $ 5.0 $ 0.3 $ 1.5 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 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 — Other (income) expense, net (1.8) Other (income) expense, net — Foreign currency forward contracts (2.4) Net sales 2.5 Net sales (2.1) Cost of sales (0.9) Cost of sales (2.6) $ (2.4) $ (0.3) $ (4.7) Net investment hedges Cross-currency swap $ 31.2 Interest expense, net $ 4.9 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 $ (5.1) $ (1.1) $ (24.8) Interest expense, net 1.3 3.5 (3.1) $ (3.8) 2.4 $ (27.9) Foreign currency options Other (income) expense, net $ 20.9 $ — $ — 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, 2021 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 $ 4,138.7 $ 2,722.5 $ 125.0 $ 26.7 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) $ 0.8 $ — $ — Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach $ — $ 0.5 $ — $ 0.7 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, 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 $ 4,088.2 $ 2,593.3 $ 127.7 $ 16.3 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 $ 2.0 $ — $ — Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach $ 0.1 $ 0.9 $ — $ 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) $ — |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
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 $ 166.9 $ 154.7 Finance Other non-current assets 27.9 29.8 Total $ 194.8 $ 184.5 Liabilities Balance Sheet Location December 31, December 31, Current Operating Other accrued liabilities $ 26.0 $ 28.3 Finance Current indebtedness 4.9 6.7 Non-Current Operating Other non-current liabilities 147.3 132.5 Finance Long-term debt, less current portion 20.9 20.2 Total $ 199.1 $ 187.7 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 $ 98.2 $ 75.9 $ 15.3 $ 16.7 $ 99.7 $ 75.8 $ 16.0 $ 17.0 CSCI 30.7 34.4 7.9 5.9 31.8 35.2 5.0 2.5 Unallocated 38.0 44.4 4.7 7.2 41.8 49.8 4.8 7.4 Total $ 166.9 $ 154.7 $ 27.9 $ 29.8 $ 173.3 $ 160.8 $ 25.8 $ 26.9 Lease expense was as follows (in millions): Year Ended December 31, December 31, Operating leases (1) $ 38.6 $ 37.3 Finance leases Amortization $ 5.9 $ 4.4 Interest 0.8 0.8 Total finance leases $ 6.7 $ 5.2 (1) Includes short-term leases and variable lease costs, which are immaterial. Total operating lease expense for the year ended December 31, 2019 was $37.9 million. The annual future maturities of our leases as of December 31, 2021 are as follows (in millions): Operating Leases Finance Leases Total 2022 $ 29.9 $ 5.6 $ 35.5 2023 22.5 3.9 26.4 2024 19.4 2.4 21.8 2025 16.9 2.2 19.1 2026 15.3 2.1 17.4 After 2026 94.9 13.7 108.6 Total lease payments 198.9 29.9 228.8 Less: Interest 25.6 4.1 29.7 Present value of lease liabilities $ 173.3 $ 25.8 $ 199.1 ` Our weighted average lease terms and discount rates are as follows: December 31, December 31, Weighted-average remaining lease term (in years) Operating leases 11.43 10.63 Finance leases 9.23 8.81 Weighted-average discount rate Operating leases 2.63 % 3.02 % Finance leases 2.79 % 3.08 % 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 $ 33.5 $ 34.4 Operating cash flows for finance leases $ 0.8 $ 0.8 Financing cash flows for finance leases $ 5.3 $ 4.1 Leased assets obtained in exchange for new finance lease liabilities $ 4.6 $ 7.0 Leased assets obtained in exchange for new operating lease liabilities $ 48.8 $ 84.5 |
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 $ 166.9 $ 154.7 Finance Other non-current assets 27.9 29.8 Total $ 194.8 $ 184.5 Liabilities Balance Sheet Location December 31, December 31, Current Operating Other accrued liabilities $ 26.0 $ 28.3 Finance Current indebtedness 4.9 6.7 Non-Current Operating Other non-current liabilities 147.3 132.5 Finance Long-term debt, less current portion 20.9 20.2 Total $ 199.1 $ 187.7 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 $ 98.2 $ 75.9 $ 15.3 $ 16.7 $ 99.7 $ 75.8 $ 16.0 $ 17.0 CSCI 30.7 34.4 7.9 5.9 31.8 35.2 5.0 2.5 Unallocated 38.0 44.4 4.7 7.2 41.8 49.8 4.8 7.4 Total $ 166.9 $ 154.7 $ 27.9 $ 29.8 $ 173.3 $ 160.8 $ 25.8 $ 26.9 Lease expense was as follows (in millions): Year Ended December 31, December 31, Operating leases (1) $ 38.6 $ 37.3 Finance leases Amortization $ 5.9 $ 4.4 Interest 0.8 0.8 Total finance leases $ 6.7 $ 5.2 (1) Includes short-term leases and variable lease costs, which are immaterial. Total operating lease expense for the year ended December 31, 2019 was $37.9 million. The annual future maturities of our leases as of December 31, 2021 are as follows (in millions): Operating Leases Finance Leases Total 2022 $ 29.9 $ 5.6 $ 35.5 2023 22.5 3.9 26.4 2024 19.4 2.4 21.8 2025 16.9 2.2 19.1 2026 15.3 2.1 17.4 After 2026 94.9 13.7 108.6 Total lease payments 198.9 29.9 228.8 Less: Interest 25.6 4.1 29.7 Present value of lease liabilities $ 173.3 $ 25.8 $ 199.1 ` Our weighted average lease terms and discount rates are as follows: December 31, December 31, Weighted-average remaining lease term (in years) Operating leases 11.43 10.63 Finance leases 9.23 8.81 Weighted-average discount rate Operating leases 2.63 % 3.02 % Finance leases 2.79 % 3.08 % 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 $ 33.5 $ 34.4 Operating cash flows for finance leases $ 0.8 $ 0.8 Financing cash flows for finance leases $ 5.3 $ 4.1 Leased assets obtained in exchange for new finance lease liabilities $ 4.6 $ 7.0 Leased assets obtained in exchange for new operating lease liabilities $ 48.8 $ 84.5 |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2021 | |
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 * 5.105% July 28, 2023 (3) 153.5 164.9 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 3.900% June 15, 2030 (5) 750.0 750.0 5.300% November 15, 2043 (2) 90.5 90.5 4.900% December 15, 2044 (1) 303.9 303.9 Total notes and bonds 2,913.5 2,924.9 Other financing 25.8 57.4 Unamortized premium (discount), net (4.8) (0.3) Deferred financing fees (14.0) (17.1) Total borrowings outstanding 3,520.5 3,564.9 Current indebtedness (603.8) (37.3) Total long-term debt less current portion $ 2,916.7 $ 3,527.6 (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". The coupon rate noted above is that as of December 31, 2021, following a step up in rate from 3.150% to 3.900%, effective December 16, 2021. * Debt denominated in euros subject to fluctuations in the euro-to-U.S. dollar exchange rate. 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, 2021 or December 31, 2020. Term Loans In August 2019, we refinanced a prior term loan with the proceeds of a $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. We had $600.0 million outstanding under the 2019 Term Loan as of December 31, 2021 and December 31, 2020. Waiver and Amendment of Debt Covenants We are subject to financial covenants in the 2018 Revolver and 2019 Term Loan, including a maximum leverage ratio covenant, which previously required us to maintain a ratio of Consolidated Net Indebtedness to Consolidated EBITDA (as such terms are defined in such credit agreements) of not more than 3.75 to 1.00 at the end of each fiscal quarter. During the twelve months ended December 31, 2021, we received a waiver for non-compliance with such covenants as of July 3, 2021, from the lenders under both such credit facilities and entered into amendments to each of the 2018 Revolver and 2019 Term Loan. Due to the waiver and amendment described above, our leverage ratios at the end of the second and third quarters of 2021 do not prevent us from drawing under the 2018 Revolver. Additionally, on December 3, 2021, Perrigo Finance Unlimited Company ("Perrigo Finance”), Perrigo Company PLC (the “Company”), each lender party thereto, and JPMorgan Chase Bank, N.A. as administrative agent, entered into Amendment No. 2 to the Company’s 2019 Term Loan (the “Term Loan Amendment”) and Amendment No. 3 to the Company’s 2018 Revolver (the “Revolver Amendment”) with the lenders under each such facility, pursuant to which the maximum leverage ratio was increased to 5.75 to 1.00 for the fourth quarter of 2021 and the first quarter of 2022, returning to 3.75 to 1.00 beginning with the second quarter of 2022. If we consummate certain qualifying acquisitions in the second quarter of 2022 or any subsequent quarter during the term of the loan, the maximum ratio would increase to 4.00 to 1.00 for such quarter. The amendments also modified certain provisions related to restricted payments to account for the amended leverage ratio covenant. Finally, the Revolver Amendment contains amendments related to the replacement of LIBOR with the Sterling Overnight Index Average (SONIA) as the benchmark for borrowings under the 2018 Revolver in Pounds Sterling. During the twelve months ended December 31, 2021, we incurred amendment and arrangement fees of $1.4 million, in connection with these amendments, which were capitalized and will be amortized over the life of the debt. As of December 31, 2021, we are in compliance with all the covenants under our debt agreements. Notes and Bonds 2020 Notes and 2021 Notes Redemption On June 19, 2020, Perrigo Finance Unlimited Company issued $750.0 million in aggregate principal amount of 3.150% Senior Notes due 2030 and received net proceeds of $737.1 million after the underwriting discount and offering expenses. 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. Due to a credit ratings downgrade by S&P and Moody's in the third quarter of 2021, the interest of the 2020 Notes has stepped up from 3.150% to 3.900%, starting with the interest payment due on December 15, 2021. The 2020 Notes will mature on June 15, 2030 and 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. 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 was used for general corporate purposes. 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 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 2021 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 we re no bo rrowings outstanding under the facilities as of December 31, 2021 and December 31, 2020. 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 10 ). On December 8, 2020, we repaid the $3.7 million balance due on the November 2020 portion of the Promissory Notes. During the year ended December 31, 2021, we repaid the $5.8 million balance due on the May 2021 portion of the Promissory Notes and the $24.8 million balance due on the November 2021 portion, settling the debt in full. We have financing leases that are reported in the above table under "Other financing" (refer to Note 12 ). 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 2022 $ 604.9 2023 373.3 2024 704.2 2025 4.2 2026 704.2 Thereafter 1,148.5 |
Earnings Per Share And Sharehol
Earnings Per Share And Shareholder's Equity | 12 Months Ended |
Dec. 31, 2021 | |
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) $ (68.9) $ (162.6) $ 146.1 Denominator: Weighted average shares outstanding for basic EPS 133.6 136.1 136.0 Dilutive effect of share-based awards* — 1.1 0.5 Weighted average shares outstanding for diluted EPS 133.6 137.2 136.5 Anti-dilutive share-based awards excluded from computation of diluted EPS* — — 1.5 * In the period of a loss from continuing operations, 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. On November 22, 2021, we initiated steps to voluntarily delist our ordinary shares from trading on the TASE. The delisting of our ordinary shares took effect on February 23, 2022, three months following the date of our request to the TASE pursuant to Israeli law. All ordinary shares that were traded on TASE were transferred to the NYSE where they continue to be traded. Dividends We paid dividends as follows: Year Ended December 31, December 31, December 31, Dividends paid (in millions) $ 129.6 $ 123.9 $ 112.4 Dividends paid (per share) $ 0.96 $ 0.90 $ 0.82 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"). We did not purchase any shares during the year ended December 31, 2021. 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 |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, there were 2.9 million shares available to be granted. Share-based compensation expense was as follows (in millions): Year Ended December 31, December 31, December 31, $ 57.0 $ 53.3 $ 46.7 As of December 31, 2021, unrecognized share-based compensation expense was $46.8 million, and the weighted-average period over which the expense is expected to be recognized was approximately 1.3 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, 2019 1,464 $ 92.33 Forfeited or expired (120) $ 78.21 Options outstanding at December 31, 2020 1,344 $ 93.61 5.2 $ — Forfeited or expired (96) $ 91.10 Options outstanding December 31, 2021 1,248 $ 93.80 4.4 $ — Options exercisable 1,248 $ 93.80 4.4 $ — Options expected to vest — $ — 0.0 $ — The aggregate intrinsic value for options exercised was zero for the years ended December 31, 2021 and December 31, 2020, and $0.5 for the year ended December 31, 2019. The weighted-average fair value per share at the grant date for options granted was zero for the years ended December 31, 2021, December 31, 2020, and December 31, 2019. 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, 2019 1,211 $ 60.96 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 $ 72.5 Granted 1,197 $ 41.36 Vested (782) $ 60.43 Forfeited (101) $ 46.32 Non-vested service-based share units outstanding at December 31, 2021 1,934 $ 45.52 0.8 $ 75.2 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, $ 41.36 $ 54.68 $ 47.48 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, $ 47.2 $ 25.9 $ 25.6 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, 2019 653 $ 61.44 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 Granted 381 $ 41.04 Vested (188) $ 75.58 Forfeited (26) $ 47.74 Non-vested performance-based share units outstanding at December 31, 2021 918 $ 47.10 1.2 $ 35.7 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, $ 41.04 $ 55.08 $ 47.54 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, $ 14.2 $ 12.7 $ 8.0 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 2.3 % 1.6 % 1.6 % Volatility, as a percent 44.0 % 40.4 % 40.2 % Risk-free interest rate 0.3 % 0.6 % 1.9 % Expected life in years 2.8 2.8 2.4 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, 2019 142 $ 63.02 Granted 58 $ 67.72 Vested (24) $ 62.73 Non-vested RTSR performance share units outstanding at December 31, 2020 176 $ 65.04 1.5 $ 7.9 Granted 69 $ 41.20 Vested (9) $ 52.52 Non-vested RTSR performance share units outstanding at December 31, 2021 236 $ 53.85 1.2 $ 9.2 * 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, $ 41.20 $ 67.72 $ 55.61 The total fair value of RTSR performance share units that vested was as follows (in millions): Year Ended December 31, December 31, December 31, $ 0.5 $ 1.5 $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
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, 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 OCI before reclassifications (24.9) (339.9) 7.4 (357.4) Amounts reclassified from AOCI 3.6 — (5.7) (2.1) Other comprehensive income (loss) (21.3) (339.9) 1.7 (359.5) Balance at December 31, 2021 $ (22.0) $ 67.4 $ (9.9) $ 35.5 (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, 2021 | |
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 $ 341.9 $ (179.9) $ (204.0) United States (35.3) 91.5 (368.4) Other foreign (47.9) 94.3 720.4 Total pre-tax income (loss) 258.7 5.9 148.0 Current provision (benefit) for income taxes: Ireland 303.6 0.1 (0.5) United States 14.9 4.5 24.8 Other foreign 81.3 34.9 8.3 Subtotal 399.8 39.5 32.6 Deferred provision (benefit) for income taxes: Ireland 0.4 (0.1) — United States 3.3 (64.2) (24.1) Other foreign (13.9) (13.5) (19.2) Subtotal (10.2) (77.8) (43.3) Total provision for income taxes $ 389.6 $ (38.3) $ (10.7) 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 1.5 (952.9) 6.9 State income taxes, net of federal benefit 0.2 139.7 1.5 Provision to return 0.4 144.3 1.0 Tax credits (19.6) (229.3) (3.9) Change in tax law 1.5 46.5 (1.2) Change in valuation allowance 17.1 (1,331.7) (29.2) Change in unrecognized taxes 116.5 437.3 (8.5) Permanent differences 1.6 1,624.8 16.5 Legal entity restructuring 18.6 (561.9) — Taxes on unremitted earnings 0.2 (0.1) 0.3 Other 0.1 15.0 (3.1) Effective income tax rate 150.6 % (655.8) % (7.2) % As a result of the divestiture of the RX business and internal restructuring of the U.S. group, our deferred tax liability with respect to undistributed earnings of certain foreign subsidiaries has decreased by $42.5 million in 2021 to a balance of $0.5 million as of December 31, 2021. In addition, we have recorded a deferred tax asset of $20.1 million with respect to the outside basis differences in our Latin American businesses held for sale, with a fully offsetting valuation allowance. As of December 31, 2021, the Company considered approximately $9.2 million of unremitted earnings of our foreign subsidiaries as indefinitely reinvested. The unrecognized deferred tax liability related to these earnings is estimated at approximately $1.2 million. However, this estimate could change based on the manner in which the outside basis differences associated with these earnings reverse. The U.S. Tax Cuts and Jobs 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"). 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) are presented on a total company basis as follows (in millions): Year Ended December 31, December 31, Deferred income tax asset (liability): Depreciation and amortization $ (320.5) $ (393.7) Right of use assets (42.5) (44.3) Unremitted earnings 19.6 (42.0) Inventory basis differences 29.4 27.7 Accrued liabilities 38.3 81.4 Lease obligations 43.2 45.3 Share-based compensation 27.5 24.5 Federal benefit of unrecognized tax positions 21.7 23.5 Loss and credit carryforwards 341.7 390.1 R&D credit carryforwards 39.4 48.4 Interest carryforwards 6.9 17.9 Other, net 13.2 0.9 Subtotal $ 217.9 $ 179.7 Valuation allowance (1) (450.7) (414.8) Net deferred income tax liability $ (232.8) $ (235.1) (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 $ 6.5 $ 44.2 Liabilities (239.3) (279.3) Net deferred income tax liability $ (232.8) $ (235.1) For the year ended December 31, 2020, the above balances include $3.6 million of non-current assets and $3.1 million of non-current liabilities held for sale. The change in valuation allowance reducing deferred taxes was (in millions): Year Ended December 31, December 31, December 31, Balance at beginning of period $ 414.8 $ 501.3 $ 557.9 Change in assessment (1) 39.1 (50.3) (8.3) Current year operations, foreign currency and other (3.2) (36.2) (48.3) Balance at end of period $ 450.7 $ 414.8 $ 501.3 (1) Includes additions of $40.0 million related primarily to our Latin American businesses in 2021, and release of $51.5 million of valuation allowance against U.S. deferred tax assets in 2020. We have U.S. state credit carryforwards and U.S. R&D credit carryforwards of $43.6 million as well as U.S. federal and state net operating loss carryforwards and non-U.S. net operating loss carryforwards of $367.2 million, which will expire at various times through 2041. The remaining U.S. and non-US credit carryforwards of $9.0 million, U.S. federal and non-US loss carryforwards of $1.2 billion, and U.S. interest carryforwards of $28.1 million have no expiration. For the year ended December 31, 2021 we recorded a net increase in valuation allowances of $35.9 million, comprised primarily of an increase of valuation allowance for deferred tax assets related to our Latin American businesses included as held for sale. 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. For the year ended December 31, 2020, based on current and anticipated future earnings, we released 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 is presented on a total company basis and summarizes the activity related to the liability recorded for uncertain tax positions, excluding interest and penalties (in millions): Unrecognized 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 Additions: Positions related to the current year 11.4 Positions related to prior years 339.0 Reductions: Settlements with taxing authorities (344.1) Lapse of statutes of limitation (11.9) Decrease in prior year positions (41.9) Cumulative translation adjustment (1.3) Balance at December 31, 2021 $ 347.2 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 $105.1 million, $108.9 million, and $98.1 million as of December 31, 2021, December 31, 2020, and December 31, 2019, respectively. If recognized, of the total liability for uncertain tax positions, $240.1 million, $250.2 million, and $204.6 million as of December 31, 2021, December 31, 2020, and December 31, 2019, 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, 2013, 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, 2019. All significant matters in our remaining major tax jurisdictions have been concluded for tax years through 2018. Internal Revenue Service Audits of Perrigo Company, a U.S. Subsidiary Perrigo Company, our U.S. subsidiary ("Perrigo U.S.") is 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 trial was held during the period May 25, 2021 to June 7, 2021 for the refund case in the United States District Court for the Western District of Michigan. 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 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 in nature, 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 April 30, 2021, we filed a Notice of New Authority in our refund case in the Western District of Michigan alerting the court to a Tax Court decision in Mylan v. Comm'r that ruled in favor of the taxpayer on nearly identical ANDA issues as we have before the court. Post-trial briefings were completed on September 24, 2021 and the case is now fully submitted for the court’s decision. On January 28, 2022, the IRS filed a Notice of Appeal with the United States Court of Appeals of the Third Circuit, to appeal the United States Tax Court's decision in Mylan v. Comm'r. 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 the aggregate amount of $141.6 million and ANDA adjustments in the aggregate amount of $21.9 million. The 30-day letter also set forth adjustments described in the next two paragraphs. We timely filed a protest to the 30-day letter for those additional adjustments, but 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 carryforward 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 for the 2013-2015 tax years also proposed to reduce Perrigo U.S.'s deductible interest expense for the 2014 tax year and 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 ("AFR") (a blended rate reduction of approximately 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 timely filed with the IRS on February 26, 2021. On January 20, 2022, the IRS responded to our Protest with its Rebuttal, and revised its position on this interest rate issue by reasserting that implicit parental support considerations are necessary to determine the arm's length interest rates and proposed revised interest rates that are higher than the interest rates proposed under its 130.0% of AFR assertion. The blended interest rate proposed by the IRS Rebuttal is 4.36%, an increase from the blended interest rate in the RAR of 2.57%, and lower than the stated blended interest rate of the loans of 6.8%. We will pursue all available administrative and judicial remedies necessary to defend the deductibility of the interest expense on this indebtedness. If the IRS were to prevail in its revised proposed adjustment, we estimate an increase in tax expense of approximately $72.9 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 $58.5 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. In addition, the 30-day letter for the 2013-2015 tax years expanded on a NOPA issued on December 11, 2019 and proposed to disallow adjustments to gross sales income on the sale of prescription products to wholesalers for accrued wholesale customer pipeline chargebacks where the prescription products were not re-sold by such wholesalers to covered retailers by the end of the tax year for the 2013-2015 tax years. The IRS' NOPA asserts that the reduction of gross sales income of such chargebacks is an impermissible method of accounting. The IRS proposed a change in accounting method that would defer the reduction in gross sales income until the year the prescription products were re-sold to covered retailers. The NOPA proposes an increase in sales revenue of approximately $99.5 million for the 2013-2015 tax years. We filed a protest on February 26, 2021 to request IRS Appeals consideration. On January 20, 2022, the IRS responded to our Protest with its Rebuttal and reiterated its position in the NOPA that the accrued chargebacks are not currently deductible in the tax year accrued because all events have not occurred to establish the fact of the liability in the year deducted. If the IRS were to prevail in its proposed adjustment, we estimate a payment of approximately $18.0 million, excluding interest and penalties for the 2013-2015 tax years. In addition, we expect the IRS to seek similar adjustments for future years. If those future adjustments were to be sustained, based on preliminary calculations and subject to further analysis, we estimate this would result in a payment not to exceed $7.0 million through tax year ended December 31, 2021, excluding interest and penalties. We have fully reserved for this issue. We strongly disagree with the IRS’s proposed adjustment and will pursue all available administrative and judicial remedies necessary. On December 2, 2021, the IRS commenced an audit of our federal income tax returns for the tax years ended December 31, 2015, through December 31, 2019. Internal Revenue Service Audit of Athena Neurosciences, LLC, 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, LLC ("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 early stage intellectual property in various developmental products, including the Multiple Sclerosis drug Tysabri, 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 based on imputing royalty income to Athena using a 24.7% royalty rate derived by the IRS and a 40.0% accuracy-related penalty. This amount excludes consideration of offsetting tax attributes and any potential interest that may be imposed. We strongly disagree with the IRS position. On December 22, 2016, we also received a NOPA for these years denying the deductibility of settlement costs related to illegal marketing of Zonegran in the United States raised in a Qui Tam action under the U.S. False Claims Act. We strongly disagree with the IRS' position on this issue as well. Because we believe that any concession on these issues in Appeals would be contrary to our evaluation of the issues, we pursued our remedies under the U.S. - Ireland Income Tax Treaty to alleviate double taxation. On April 21 and 23, 2020, we filed requests for Competent Authority Assistance with the IRS and Irish Revenue on the Tysabri royalty issue, and those applications were accepted. On October 20, 2020, we amended our requests for Competent Authority Assistance to include the Zonegran issue and these supplemental requests were also accepted. On May 6, 2021, we had our opening conference with the IRS. A follow-up conference was held with the IRS on December 13, 2021 and we discussed our submission, which continues to be reviewed by the IRS. Our opening conference with Irish Revenue was held on July 23, 2021 and we discussed our submission, which continues to be reviewed by Irish Revenue. The U.S. and Irish Competent Authorities will seek to achieve a resolution that avoids double taxation on both the Tysabri royalty and Zonegran issues. No payment of the additional amounts is required until these two matters are resolved with finality under the treaty, or any additional administrative or judicial process if treaty negotiations are unsuccessful. 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 related assets 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. Elan Pharma recognized such receipts as trading income in its tax returns filed with Irish Revenue, consistent with Elan Pharma's historical practice relating to its active management of intellectual property rights. In its audit findings letter, Irish Revenue proposed to charge Elan Pharma tax on the net chargeable gain realized by Elan Pharma on the Tysabri transaction in 2013 at a rate of 33%, rather than the 12.5% tax rate applied to trading income. On November 29, 2018, Irish Revenue issued a Notice of Amended Assessment (“NoA”) for the tax year ended December 31, 2013, in the amount of €1,643 million, and claiming tax payable in the amount of €1,636 million, not including interest or any applicable penalties. Accordingly, 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 was 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. We strongly believe that Elan Pharma’s tax position was correct and ultimately would have been confirmed through judicial process. However, in light of the risks and delays inherent in any litigation, on April 26, 2021, Perrigo, through its tax adviser, made a without prejudice written offer of settlement to Irish Revenue detailing a possible framework to resolve the dispute, which applied an alternative basis of taxation than the respective positions taken by Irish Revenue in the NoA and by Elan Pharma in its tax returns. On May 31, 2021, Irish Revenue issued a formal response to Perrigo's tax adviser indicating that the written settlement offer would not be accepted as presented. However, Irish Revenue did indicate that they would remain available for further discussion without prejudice and the Company's representatives continued to meet and correspond with Irish Revenue throughout the summer. On July 9, 2021, Irish Revenue issued a letter acknowledging that not all relevant facts were known to them when they issued the NoA in 2018 and, accordingly, they would not object if the Appeal Commissioner were to make certain adjustments reducing Irish Revenue’s original assessment. Such adjustments would reflect contingent royalty payments that were never received by Elan Pharma, deductions for acquisition and development costs incurred, and allowable losses and reliefs, and would, if allowed, result in an aggregate reduction of more than €660.0 million from the income taxes claimed in the NoA as issued. On September 29, 2021, Elan Pharma reached an agreement with Irish Revenue providing for full and final settlement of the NoA. Elan Pharma and Irish Revenue agreed to a full and final settlement of the NoA on the following terms: (i) on a 'without prejudice basis' and, for purposes of the settlement, an alternative basis of taxation was applied, (ii) Irish Revenue to take no further action in relation to the NoA or any Tysabri related income or transactions, (iii) no interest or penalties applied, (iv) a total tax of €297.0 million charged as full and final settlement of all liabilities arising from the sale of the Tysabri patents for the fiscal years 2013 to 2021, and (v) after Irish Revenue credited taxes already paid and certain unused R&D credits against the €297.0 million charged settlement amount, the total cash payment of €266.1 million ($307.5 million) was made on October 5, 2021. We recorded the payment as a component of income tax expense on the Consolidated Statements of Operations. 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 ("ITA") audited our income tax returns for the 2015 tax year, 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. Our protest was timely filed on March 11, 2021 to move the matter to Stage B of the assessment process. Through negotiations with the ITA, we resolved the audit for the tax year ended June 27, 2015 through tax year ended December 31, 2019, by agreeing to add tax year ended December 31, 2018 and tax year ended December 31, 2019 to the audit to reach an agreeable resolution to provide certainty for these additional periods. The agreement with the ITA required us to pay $19.0 million, after offset of refunds of $17.2 million, for the five taxable years. In addition, we paid $12.5 million to resolve a tax liability indemnity for the tax year ended December 31, 2017 relating to Perrigo API Ltd, which we disposed of in December 2017. As a result of the settlement with the ITA, we reduced our liability recorded for uncertain tax positions by $38.3 million including interest. 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, 2021. 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 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 28, 2021, the U.S. Treasury and the IRS released final foreign tax credit regulations addressing various aspects of the foreign tax credit (“FTC”) regime. These regulations finalize, among other guidance, provisions relating to the disallowance of a credit or deduction for foreign income taxes with respect to dividends eligible for a dividends-received deduction; the allocation and apportionment of interest expense, foreign income tax expense; the definition of a foreign income tax and a tax in lieu of an income tax; transition rules relating to the impact on loss accounts of net operating loss carrybacks; the definition of foreign branch category income; and the time at which foreign taxes accrue and can be claimed as a credit. The regulations also contain clarifying rules relating to foreign-derived intangible income (FDII). These regulations are generally effective on March 7, 2022, with some provisions having retroactive effect. For the year ended December 31, 2021, we evaluated whether these final FTC regulations would have any effect on our income tax reporting for the year ended December 31, 2021, and applicable prior periods, and concluded that these final FTC regulations do not result in any material changes to our income tax reporting for the year ended December 31, 2021 or for any prior periods. We will continue to evaluate the effects of these final FTC regulations on future accounting periods. In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes." It removes certain exceptions to the general principles in ASC Topic 740 and improves consistent application of and simplifies GAAP for other areas of ASC Topic 740 by clarifying and amending existing guidance. This guidance was effective for interim and annual reporting periods beginning after December 15, 2020. We adopted this guidance as of January 1, 2021, and the impact on our Consolidated Financial Statements was immaterial. |
Post Employment Plans
Post Employment Plans | 12 Months Ended |
Dec. 31, 2021 | |
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, 2019 $ 28.0 $ 27.3 $ 26.6 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, 2021 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, 2020 December 31, December 31, 2020 Projected benefit obligation at beginning of period $ 214.3 $ 186.9 $ 3.5 $ 3.7 Service costs 3.9 2.7 — — Interest cost 2.6 2.8 0.1 0.1 Actuarial loss (gain) 6.1 7.0 (0.5) (0.2) Contributions paid 0.3 0.2 — — Benefits paid (2.0) (2.3) (0.1) (0.1) Settlements (7.9) — — — Foreign currency translation (14.7) 17.0 — — Projected benefit obligation at end of period $ 202.6 $ 214.3 $ 3.0 $ 3.5 Fair value of plan assets at beginning of period 189.1 165.4 — — Actual return on plan assets 12.6 8.3 — — Benefits paid (2.0) (2.3) (0.1) (0.1) Settlements (7.9) — — — Employer contributions 2.7 2.3 0.1 0.1 Contributions paid 0.3 0.2 — — Foreign currency translation (13.1) 15.2 — — Fair value of plan assets at end of period $ 181.7 $ 189.1 $ — $ — Unfunded status $ (20.9) $ (25.2) $ (3.0) $ (3.5) Presented as: Other non-current assets $ 21.2 $ 17.9 $ — $ — Current assets held for sale $ 0.4 $ — $ — $ — Other non-current liabilities $ (39.1) $ (43.1) $ — $ — Current liabilities held for sale $ (3.4) $ — $ — $ — The total accumulated benefit obligation for the defined benefit pension plans was $194.9 million and $207.5 million at December 31, 2021 and December 31, 2020 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, 2020 Accumulated benefit obligation $ 104.7 $ 107.4 Fair value of plan assets $ 70.0 $ 71.1 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, 2020 Projected benefit obligation $ 112.5 $ 114.2 Fair value of plan assets $ 70.0 $ 71.1 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, 2020 December 31, $ 0.6 $ 0.2 $ 2.6 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, 2020 December 31, $ 9.9 $ 11.6 $ 6.2 There is no estimated credit amount to be recognized from AOCI into net periodic cost during the next year. At December 31, 2021, the total estimated future benefit payments to be paid by the plans for the next five years is approximately $14.1 million for pension benefits and $0.9 million for other benefits as follows (in millions): Payment Due Pension Benefits Other Benefits 2022 $ 2.3 $ 0.1 2023 2.2 0.2 2024 2.9 0.2 2025 3.1 0.2 2026 3.6 0.2 Thereafter 28.5 1.0 The expected benefits to be paid are based on the same assumptions used to measure our benefit obligation at December 31, 2021, including the expected future employee service. We expect to contribute $3.2 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, 2021 December 31, 2020 December 31, 2019 December 31, 2021 December 31, 2020 December 31, 2019 Service cost $ 3.9 $ 2.7 $ 2.5 $ — $ — $ 0.6 Interest cost 2.6 2.8 3.8 0.1 0.1 0.2 Expected return on assets (5.5) (4.9) (4.9) — — — Settlement 1.1 — 0.9 — — — Curtailment — — (2.5) — — — Net actuarial loss/(gain) 0.1 0.9 0.8 (1.4) (3.2) (0.3) Net periodic pension cost/(gain) $ 2.2 $ 1.5 $ 0.6 $ (1.3) $ (3.1) $ 0.5 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 increase in the discount rate from 0.95% to 1.18% has decreased the liability. This increase of 0.23% versus the discount rate used at December 31, 2020 is primarily attributable to the increase 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, 2020 December 31, December 31, December 31, 2020 December 31, Discount rate 1.18 % 0.95 % 1.06 % 2.14 % 3.14 % 4.25 % Inflation 2.10 % 1.33 % 1.18 % Expected return on assets 1.55 % 1.76 % 2.54 % Interest crediting rates 0.34 % 0.59 % 0.83 % 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, 2021, the expected weighted-average long-term rate of return on assets of 1.6% was calculated based on the assumptions of the following returns for each asset class: Equities 5.0 % Bonds 1.5 % Absolute return fund 4.0 % Insurance contracts 1.4 % 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, 2021, these ranges were as follows: Equities 20%-30% Bonds 40%-50% Absolute return 10%-20% 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, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Equities $ 0.1 $ 41.2 $ — $ 41.3 $ — $ 42.8 $ — $ 42.8 Bonds 1.0 42.5 — 43.5 1.2 43.0 — 44.2 Insurance contracts — — 63.3 63.3 — — 64.2 64.2 Absolute return fund — 23.7 — 23.7 — 30.8 — 30.8 Other — 9.9 — 9.9 — 7.1 — 7.1 Total $ 1.1 $ 117.3 $ 63.3 $ 181.7 $ 1.2 $ 123.7 $ 64.2 $ 189.1 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, 2020 Assets at beginning of year $ 64.2 $ 56.1 Actual return on plan assets 1.9 1.9 Purchases, sales and settlements, net 1.1 1.2 Foreign exchange (3.9) 5.0 Assets at end of year $ 63.3 $ 64.2 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 $38.4 million and $37.3 million at December 31, 2021 and December 31, 2020, 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 $31.6 million and $34.2 million at December 31, 2021 and December 31, 2020, respectively, was recorded in Other non-current liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 was $199.1 million (refer to Note 12 ). Rent expense under all leases was $44.5 million, $41.7 million, and $41.0 million for the years ended December 31, 2021, December 31, 2020, and December 31, 2019, respectively. At December 31, 2021, we had non-cancelable purchase obligations totaling $865.6 million 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, 2021, 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. On May 7, 2021, the Court ruled that the clobetasol end payer and direct purchaser class cases will remain part of the bellwether. The Court also ruled that the June 10, 2020 state complaint against Perrigo and approximately 35 other manufacturers will move forward as a bellwether case. The bellwether cases are proceeding in discovery, which must be completed by January 17, 2023 under the schedule set by the Court. No trial dates have been set for any of the bellwether cases, or any of the other cases in the MDL. 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 culminates with summary judgment motions due to be filed no later than November 16, 2023. No trial dates have been set for the Clobetasol cases, and no schedules have been set for the other “single drug” conspiracy cases. (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 May 17, 2021 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 Propionate, 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 Propionate, 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 Propionate, 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 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 Propionate, 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 Propionate, 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 Propionate, 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 Propionate, 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 Propionate, Hydrocortisone Acetate, Hydrocortisone Valerate, Imiquimod, Methazolamide, Mometasone Furoate, Nystatin, Permethrin, Prochlorperazine Maleate, Promethazine HCL, Tacrolimus, and Triamcinolone Acetonide. On June 30, 2021, the counties filed a proposed revised second amended complaint. Perrigo has not yet responded to the complaint, and responses are currently stayed. 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 Propionate, 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. Proceedings in the case have been 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 Propionate, 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 Propionate, 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, 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 has been 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, 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 has been 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 has been 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, 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 has been transferred into the MDL. On December 15, 2020, several counties in New York filed a complaint against Perrigo and 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 Propionate, 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 has been removed to federal court and consolidated into the MDL. The counties filed an amended complaint on June 30, 2021. On August 30, 2021, the county of Westchester, NY filed a complaint in New York State court against Perrigo and 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, Clobetasol, Desonide, Econazole, Erythromycin, Fluticasone Propionate, Halobetasol Propionate, Hydrocortisone Acetate, Hydrocortisone Valerate, Imiquimod, Methazolamide, Mometasone Furoate, Nystatin, Permethrin, Prochlorperazine Maleate, Promethazine HCL, Tacrolimus, and Triamcinolone Acetonide. The case has been removed to federal court and consolidated into the MDL. On October 8, 2021, approximately 20 health plans filed a Praecipe to Issue Writ of Summons in Pennsylvania state court to commence an action against 46 generic pharmaceutical manufacturers and 24 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 not yet occurred. 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 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. On May 7, 2021, the Court ruled that this case will move forward as a bellwether case. On September 9, 2021, the States filed an amended complaint, although the substantive allegations against Perrigo did not change. Perrigo moved to dismiss the Complaint on November 12, 2021. That motion is pending. The case is included among the “bellwether cases” designated to move on a more expedited schedule than the other cases in the MDL, and, as such, it will be subject to the January 17, 2023 discovery deadline and November 16, 2023 summary judgment deadline if the Complaint survives the pending motions to dismiss. Like the other cases in the MDL, no trial date has been set for this case. 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. 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 10b5) 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, |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2021 | |
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, 2018 $ 23.7 Additional charges 25.0 Payments (28.9) Non-cash adjustments (0.3) Balance at December 31, 2019 19.5 Additional charges 3.2 Payments (14.2) Non-cash adjustments 0.6 Balance at December 31, 2020 9.1 Additional charges 16.9 Payments (19.0) Non-cash adjustments (0.1) Balance at December 31, 2021 $ 6.9 The charges incurred during the year ended December 31, 2021, were primarily associated with actions taken to streamline the organization. The charges incurred during the year ended December 31, 2020, were also 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. Of the amount recorded during the year ended December 31, 2021, $6.1 million was related to our CSCI segment, due primarily to various integration initiatives and $7.9 million was related to our CSCA segment, due primarily to actions taken to streamline the organization. Of the amount recorded during the year ended December 31, 2020, $1.4 million was related to our CSCI segment, also due primarily to various integration initiatives, and $1.0 million was not allocated to a segment and was associated with actions taken to streamline the organization. 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. 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 $6.9 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, 2021 | |
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 Held for Sale Unallocated Total Year Ended December 31, 2021 Net sales $ 2,693.1 $ 1,445.6 $ — $ — $ 4,138.7 Operating income $ 206.5 $ 36.1 $ — $ 167.8 $ 410.4 Operating income % 7.7 % 2.5 % — % — % 9.9 % Total assets $ 5,983.8 $ 4,425.8 $ 16.1 $ — $ 10,425.7 Capital expenditures $ 112.0 $ 24.0 $ — $ — $ 136.0 Property, plant and equipment, net $ 706.9 $ 157.2 $ — $ — $ 864.1 Depreciation/amortization $ 117.0 $ 179.8 $ — $ — $ 296.8 Year Ended December 31, 2020 Net sales $ 2,693.0 $ 1,395.2 $ — $ — $ 4,088.2 Operating income (loss) $ 465.0 $ 32.3 $ — $ (232.1) $ 265.2 Operating income % 17.3 % 2.3 % — % — % 6.5 % Total assets $ 4,585.1 $ 4,872.4 $ 2,030.9 $ — $ 11,488.4 Capital expenditures $ 131.4 $ 28.8 $ — $ — $ 160.2 Property, plant and equipment, net $ 701.1 $ 163.5 $ — $ — $ 864.6 Depreciation/amortization $ 109.9 $ 177.8 $ — $ — $ 287.7 Change in financial assets $ — $ — $ — $ 95.3 $ 95.3 Year Ended December 31, 2019 Net sales $ 2,487.7 $ 1,382.2 $ — $ — $ 3,869.9 Operating income (loss) $ 406.7 $ 19.6 $ — $ (251.6) $ 174.7 Operating income % 16.3 % 1.4 % — % — % 4.5 % Total assets $ 4,087.7 $ 4,682.7 $ 2,531.0 $ — $ 11,301.4 Capital expenditures $ 102.6 $ 18.8 $ — $ — $ 121.4 Property, plant and equipment, net $ 624.3 $ 149.9 $ — $ — $ 774.2 Depreciation/amortization $ 102.8 $ 194.3 $ — $ — $ 297.1 Change in financial assets $ — $ — $ — $ (22.1) $ (22.1) 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. $ 674.9 $ 636.3 Europe (1) 174.4 169.7 All other countries 14.8 58.6 $ 864.1 $ 864.6 (1) Includes Ireland Property, plant and equipment, net of $0.1 million and $20.3 million, for the years ended December 31, 2021 and December 31, 2020, respectively. Sales to Walmart as a percentage of Consolidated Net sales (reported primarily in our CSCA segment) were as follows: Year Ended December 31, December 31, 2020 December 31, 14.0% 15.2% 15.5% |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
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 $ 6.5 $ 6.0 $ 5.8 Net bad debt expenses (1) 4.0 2.3 2.2 Additions/(deductions) (2) (3.3) (1.8) (2.0) Balance at end of period $ 7.2 $ 6.5 $ 6.0 (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 and transfers to held for sale. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 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, and our store brand business in the United Kingdom and parts of Europe and Asia. Our liquid licensed products business in the United Kingdom was included in this segment until it was divested on June 19, 2020. We previously had an RX segment which was comprised of our prescription pharmaceuticals business in the U.S., and other pharmaceuticals and diagnostic business in Israel, which have been divested. Following the divestiture, there were no substantial assets or operations left in this segment. The RX segment was reported as Discontinued Operations in 2021, and is presented as such for all periods in this report (refer to Note 8 ). 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 21 |
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 arrangements with certain 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. |
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 rebates and other incentive programs recorded on the Consolidated Balance Sheets as Accrued customer programs. 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 $125.8 million and $147.5 million at December 31, 2021 and December 31, 2020, 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 research and development ("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 10 . |
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 we have not elected hedge accounting. 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. Net foreign exchange losses totaled $26.8 million, $0.3 million, and $3.2 million for the years ended December 31, 2021 , December 31, 2020, and December 31, 2019, respectively. The 2021 loss includes a loss of $20.9 million for the change in fair value of the option contracts to hedge the foreign currency exposure of the euro-denominated purchase price for HRA Pharma. For more information on our derivatives, refer to Note 11 . |
Property, Plant and Equipment, net | Property, Plant and Equipment, netProperty, 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 10 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. |
Leases | Leases 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 12 . |
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 two reporting units that are evaluated for impairment as of December 31, 2021. 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 15 ). |
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 17 |
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 19 ). 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 $122.0 million, $121.7 million, and $119.2 million, for the years ended December 31, 2021, December 31, 2020 and December 31, 2019, respectively. We actively collaborate with other 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. |
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 18 ). |
Allowance for Credit Losses | 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. |
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 2021-08: Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers This guidance amends ASC 805 to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. Under current GAAP, an acquirer generally recognizes such items at fair value at acquisition date. January 1, 2023 Upon adoption on the effective date, the amendments will be applied prospectively to business combinations. Early adoption is permitted in an interim period; however, retrospective application is required for any acquisitions occurring after the beginning of the fiscal year that includes the interim period of early application. We are currently assessing the adoption impact of this standard; however, we do not anticipate a material impact from applying the recognition and measurement principles of Topic 606 to contract assets or liabilities acquired as part of a business combination. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Property, plant and equipment | We held the following property, plant and equipment, net (in millions): December 31, December 31, Land $ 51.3 $ 52.2 Buildings 537.6 516.1 Machinery and equipment 1,186.8 1,157.2 Gross property, plant and equipment 1,775.7 1,725.5 Less: accumulated depreciation (911.6) (860.9) Property, plant and equipment, net $ 864.1 $ 864.6 |
Schedule of advertising expense | Advertising costs were as follows (in millions): Year Ended December 31, December 31, 2020 December 31, $ 130.9 $ 130.5 $ 142.8 |
Allowance for Credit Losses | The following table presents the allowance for credit losses activity (in millions): Year Ended December 31, December 31, Balance at beginning of period $ 6.5 $ 6.0 Provision for credit losses, net 4.0 2.3 Receivables written-off (0.7) (2.2) Transfer to held for sale (1.4) — Currency translation adjustment (1.2) 0.4 Balance at end of period $ 7.2 $ 6.5 |
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 2021-08: Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers This guidance amends ASC 805 to add contract assets and contract liabilities to the list of exceptions to the recognition and measurement principles that apply to business combinations and to require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. Under current GAAP, an acquirer generally recognizes such items at fair value at acquisition date. January 1, 2023 Upon adoption on the effective date, the amendments will be applied prospectively to business combinations. Early adoption is permitted in an interim period; however, retrospective application is required for any acquisitions occurring after the beginning of the fiscal year that includes the interim period of early application. We are currently assessing the adoption impact of this standard; however, we do not anticipate a material impact from applying the recognition and measurement principles of Topic 606 to contract assets or liabilities acquired as part of a business combination. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 $ 40.2 $ 19.7 |
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. $ 2,565.9 $ 2,579.0 $ 2,360.3 Europe (2) 1,393.0 1,350.6 1,335.8 All other countries (3) 179.8 158.6 173.8 Total net sales $ 4,138.7 $ 4,088.2 $ 3,869.9 (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 $23.7 million, $29.8 million, and $23.4 million for the years ended December 31, 2021, December 31, 2020, and December 31, 2019, respectively. (3) Includes revenue generated primarily in Mexico, Australia, and Canada. Product Category The following is a summary of our net sales by category (in millions): Year Ended December 31, 2021 December 31, 2020 December 31, CSCA (1) Upper respiratory $ 483.1 $ 505.8 $ 529.3 Digestive health 475.1 471.3 429.2 Pain and sleep-aids 405.4 434.5 390.9 Nutrition 401.9 388.3 395.3 Oral care 311.9 288.2 111.7 Healthy lifestyle 297.7 352.4 356.1 Skincare and personal hygiene 219.2 200.6 191.3 Vitamins, minerals, and supplements 31.7 27.0 28.6 Animal health — — 43.7 Other CSCA (2) 67.1 24.9 11.6 Total CSCA 2,693.1 2,693.0 2,487.7 CSCI Skincare and personal hygiene 394.3 351.8 371.6 Upper respiratory 226.2 255.1 276.8 Vitamins, minerals, and supplements 217.4 201.0 180.2 Pain and sleep-aids 201.8 190.4 167.9 Healthy lifestyle 179.3 165.4 173.8 Oral care 95.8 97.8 51.2 Digestive health 38.4 26.5 27.1 Other CSCI (3) 92.4 107.2 133.6 Total CSCI 1,445.6 1,395.2 1,382.2 Total net sales $ 4,138.7 $ 4,088.2 $ 3,869.9 (1) Includes net sales from our OTC contract manufacturing business. (2) Consists primarily of product sales and royalty income related to supply and distribution agreements, 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, 2021 | |
Business Acquisition [Line Items] | |
Business Acquisition, Pro Forma Information | The following table presents unaudited pro forma information as if the acquisition of Ranir, Dr. Fresh and the Eastern European brands 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, December 31, Net sales $ 4,136.5 $ 4,144.7 Income from continuing operations $ 58.2 $ 185.0 |
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, 2021 | |
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 (1) CSCI (2) Total Balance at December 31, 2019 $ 1,899.1 $ 1,203.7 $ 3,102.8 Business divestitures — (115.6) (115.6) Business acquisitions 14.8 7.3 22.1 Currency translation adjustments 1.5 83.3 84.8 Purchase accounting adjustments (10.4) 12.0 1.6 Balance at December 31, 2020 1,905.0 1,190.7 3,095.7 Impairments (6.1) (10.0) (16.1) Purchase accounting adjustments 2.4 (2.4) — Currency translation adjustments 1.1 (81.3) (80.2) Balance at December 31, 2021 $ 1,902.4 $ 1,097.0 $ 2,999.4 (1) We had accumulated goodwill impairments of $6.1 as of December 31, 2021. (2) We had accumulated goodwill impairments of $878.4 as of December 31, 2021 and $868.4 million as of December 31, 2020. |
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, 2021 December 31, 2020 Gross Accumulated Gross Accumulated Indefinite-lived intangibles: Trademarks, trade names, and brands $ 3.5 $ — $ 4.3 $ — In-process research and development 1.8 — 2.7 — Total indefinite-lived intangibles $ 5.3 $ — $ 7.0 $ — Definite-lived intangibles: Distribution and license agreements and supply agreements $ 73.2 $ 56.9 $ 74.8 $ 55.4 Developed product technology, formulations, and product rights 300.2 191.4 303.3 177.3 Customer relationships and distribution networks 1,820.7 887.8 1,920.5 823.7 Trademarks, trade names, and brands 1,482.3 394.2 1,581.5 342.2 Non-compete agreements 2.1 2.1 2.9 2.9 Total definite-lived intangibles $ 3,678.5 $ 1,532.4 $ 3,883.0 $ 1,401.5 Total intangible assets $ 3,683.8 $ 1,532.4 $ 3,890.0 $ 1,401.5 |
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, 2021 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 8 Customer relationships and distribution networks 15 Trademarks, trade names, and brands 15 |
Schedule of finite-lived intangible assets, future amortization expense | Our estimated future amortization expense is as follows (in millions): Year Amount 2022 $ 194.9 2023 183.6 2024 174.7 2025 168.0 2026 160.2 Thereafter 1,264.7 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory, current | Major components of inventory were as follows (in millions): Year Ended December 31, December 31, Finished goods $ 549.2 $ 574.1 Work in process 251.9 220.4 Raw materials 219.1 264.9 Total inventories $ 1,020.2 $ 1,059.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 December 31, 2020 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Measured at fair value on a recurring basis: Assets: Investment securities $ 0.4 $ — $ — $ 2.5 $ — $ — Foreign currency forward contracts — 5.7 — — 9.8 — Cross-currency swap — — — — 6.3 — Foreign currency option contracts — 5.0 — — — — Total assets $ 0.4 $ 10.7 $ — $ 2.5 $ 16.1 $ — Liabilities: Foreign currency forward contracts $ — $ 2.4 $ — $ — $ 7.9 $ — Cross-currency swap — 13.8 — — — — Total liabilities $ — $ 16.2 $ — $ — $ 7.9 $ — Measured at fair value on a non-recurring basis: Assets: Goodwill (1) $ — $ — $ 71.7 $ — $ — $ — Total assets $ — $ — $ 71.7 $ — $ — $ — Liabilities Liabilities held for sale, net (2) $ — $ — $ 16.8 $ — $ — $ — Total liabilities $ — $ — $ 16.8 $ — $ — $ — (1) During the year ended December 31, 2021, goodwill with a carrying value of $81.7 million was written down to a fair value of $71.7 million. (2) We measured the net assets held for sale for impairment purposes and recorded a total impairment of $162.2 million, resulting in a net liability held for sale balance (refer to Note 9 |
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, Balance at beginning of period $ 95.3 Change in fair value (95.3) Balance at end of period $ — |
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 $ — $ 2,760.0 $ — Fair value $ 2,847.2 $ — $ 3,031.1 $ — Private placement note Carrying value (excluding premium) $ — $ 153.5 $ — $ 164.9 Fair value $ — $ 162.6 $ — $ 177.5 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations, Disposed of by Sale | RX Pharmaceuticals | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Discontined Operations - Financial Statement Information | Income from discontinued operations, net of tax was as follows (in millions): Year Ended December 31, 2021 December 31, 2020 December 31, Net sales $ 405.1 $ 975.0 $ 967.5 Cost of sales 258.4 645.1 619.5 Gross profit 146.7 329.9 348.0 Operating expenses Distribution 6.1 15.2 14.1 Research and development 30.8 54.8 67.3 Selling 16.3 30.1 25.1 Administration 36.4 31.8 39.1 Impairment charges — 346.8 170.7 Restructuring — 0.3 0.3 Other operating expense (income) (0.4) 0.7 1.3 Total operating expenses 89.2 479.7 317.9 Operating income (loss) 57.5 (149.8) 30.1 Interest expense, net 0.8 3.5 4.3 Other (income) expense, net (1.6) 2.0 2.8 Income (loss) from discontinued operations before tax 58.3 (155.3) 23.0 Gain on disposal of discontinued operations before tax (47.5) — — Income (loss) before income taxes 105.8 (155.3) 23.0 Income tax expense 43.8 51.5 35.6 Income (loss), net of tax $ 62.0 $ (206.8) $ (12.6) During the year ended December 31, 2021, we incurred $40.8 million of separation costs related to the sale of the RX business. The costs incurred included selling costs, which were reported in gain on discontinued operations before tax as part of the gain on sale of the RX business. Separation costs incurred in prior periods were included in administration expenses. Select cash flow information related to discontinued operations was as follows (in millions): Year Ended December 31, 2021 December 31, 2020 December 31, Cash flows from discontinued operations operating activities: Depreciation and amortization $ 15.4 $ 97.0 $ 99.4 Restructuring charges — 0.3 0.3 Impairment charges — 346.8 170.7 Share-based compensation 10.8 5.2 5.5 Gain on sale of business (47.5) — — Cash flows from discontinued operations investing activities: Asset acquisitions $ (69.7) $ (0.9) $ (49.1) Additions to property, plant and equipment (16.1) (10.2) (16.3) Net proceeds from sale of business 1,491.9 — — The assets and liabilities classified as held for sale related to discontinued operations were as follows (in millions): December 31, Cash and cash equivalents $ 10.0 Accounts receivable, net of allowance for credit losses of $1.1 460.7 Inventories 140.8 Prepaid expenses and other current assets 55.4 Current assets held for sale 666.9 Property, plant and equipment, net 131.4 Operating lease assets 31.3 Goodwill and indefinite-lived intangible assets 681.2 Definite-lived intangible assets, net 492.8 Deferred income taxes 3.6 Other non-current assets 23.7 Non-current assets held for sale 1,364.0 Total assets held for sale $ 2,030.9 Accounts payable $ 92.2 Payroll and related taxes 22.3 Accrued customer programs 237.4 Other accrued liabilities 67.2 Current indebtedness 0.5 Current liabilities held for sale 419.6 Long-term debt, less current portion 0.7 Deferred income taxes 3.1 Other non-current liabilities 104.5 Non-current liabilities held for sale 108.3 Total liabilities held for sale $ 527.9 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 December 31, 2020 Fair value method Prepaid expenses and other current assets $ 0.4 $ 2.5 Fair value method (1) Other non-current assets $ 1.8 $ 1.9 Equity method Other non-current assets $ 66.4 $ 69.8 (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 $ 2.0 $ 3.0 $ 4.9 Equity method Other (income) expense, net $ 1.1 $ (3.0) $ (2.7) |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, European Euro (EUR) $ 232.6 $ 312.6 British Pound (GBP) 135.8 92.3 Swedish Krona (SEK) 47.8 41.2 Chinese Yuan (CNH) 37.7 49.1 Danish Krone (DKK) 37.5 65.2 Canadian Dollar (CAD) 29.0 36.8 United States Dollar (USD) 22.9 101.5 Polish Zloty (PLZ) 21.0 21.8 Norwegian Krone (NOK) 11.0 7.8 Turkish Lira (TRY) 3.1 4.0 Switzerland Franc (CHF) 1.9 8.2 Australian Dollar (AUD) 1.6 11.3 Romanian New Leu (RON) 1.6 3.6 Mexican Peso (MPX) 1.0 15.6 Israeli Shekel (ILS) — 94.4 Other 3.6 2.3 Total $ 588.1 $ 867.7 |
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 $ 3.5 $ 5.0 Foreign currency forward contracts Other non-current assets 1.3 0.5 Cross-currency swap Other non-current assets — 6.3 Total designated derivatives $ 4.8 $ 11.8 Non-designated derivatives Foreign currency forward contracts Prepaid expenses and other current assets $ 0.9 $ 4.3 Foreign currency options Prepaid expenses and other current assets 5.0 — Total non-designated derivatives $ 5.9 $ 4.3 Liability Derivatives Fair Value Year Ended Balance Sheet Location December 31, December 31, Designated derivatives Foreign currency forward contracts Other accrued liabilities $ 1.2 $ 5.5 Cross-currency swap Other accrued liabilities 13.8 — Total designated derivatives $ 15.0 $ 5.5 Non-designated derivatives Foreign currency forward contracts Other accrued liabilities $ 1.2 $ 2.4 |
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, 2021 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 5.7 Net sales (2.5) Net sales — Cost of sales 0.8 Cost of sales 0.5 Other (income) expense, net 0.7 $ 5.7 $ (3.6) $ 1.2 Net investment hedges Cross-currency swap $ (20.1) Interest expense, net $ (3.9) (1) Net loss of $7.5 million is expected to be reclassified out of AOCI into earnings during the next 12 months. Year Ended December 31, 2020 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 5.0 Net sales 0.2 Net sales 0.1 Cost of sales 2.0 Cost of sales 0.9 Other Income/Expense 0.5 $ 5.0 $ 0.3 $ 1.5 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 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 — Other (income) expense, net (1.8) Other (income) expense, net — Foreign currency forward contracts (2.4) Net sales 2.5 Net sales (2.1) Cost of sales (0.9) Cost of sales (2.6) $ (2.4) $ (0.3) $ (4.7) Net investment hedges Cross-currency swap $ 31.2 Interest expense, net $ 4.9 |
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 $ (5.1) $ (1.1) $ (24.8) Interest expense, net 1.3 3.5 (3.1) $ (3.8) 2.4 $ (27.9) Foreign currency options Other (income) expense, net $ 20.9 $ — $ — |
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, 2021 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 $ 4,138.7 $ 2,722.5 $ 125.0 $ 26.7 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) $ 0.8 $ — $ — Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach $ — $ 0.5 $ — $ 0.7 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, 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 $ 4,088.2 $ 2,593.3 $ 127.7 $ 16.3 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 $ 2.0 $ — $ — Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach $ 0.1 $ 0.9 $ — $ 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) $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 $ 166.9 $ 154.7 Finance Other non-current assets 27.9 29.8 Total $ 194.8 $ 184.5 Liabilities Balance Sheet Location December 31, December 31, Current Operating Other accrued liabilities $ 26.0 $ 28.3 Finance Current indebtedness 4.9 6.7 Non-Current Operating Other non-current liabilities 147.3 132.5 Finance Long-term debt, less current portion 20.9 20.2 Total $ 199.1 $ 187.7 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 $ 98.2 $ 75.9 $ 15.3 $ 16.7 $ 99.7 $ 75.8 $ 16.0 $ 17.0 CSCI 30.7 34.4 7.9 5.9 31.8 35.2 5.0 2.5 Unallocated 38.0 44.4 4.7 7.2 41.8 49.8 4.8 7.4 Total $ 166.9 $ 154.7 $ 27.9 $ 29.8 $ 173.3 $ 160.8 $ 25.8 $ 26.9 |
Lease Expense | Lease expense was as follows (in millions): Year Ended December 31, December 31, Operating leases (1) $ 38.6 $ 37.3 Finance leases Amortization $ 5.9 $ 4.4 Interest 0.8 0.8 Total finance leases $ 6.7 $ 5.2 (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, 2021 are as follows (in millions): Operating Leases Finance Leases Total 2022 $ 29.9 $ 5.6 $ 35.5 2023 22.5 3.9 26.4 2024 19.4 2.4 21.8 2025 16.9 2.2 19.1 2026 15.3 2.1 17.4 After 2026 94.9 13.7 108.6 Total lease payments 198.9 29.9 228.8 Less: Interest 25.6 4.1 29.7 Present value of lease liabilities $ 173.3 $ 25.8 $ 199.1 |
Operating Lease Liability Maturity | The annual future maturities of our leases as of December 31, 2021 are as follows (in millions): Operating Leases Finance Leases Total 2022 $ 29.9 $ 5.6 $ 35.5 2023 22.5 3.9 26.4 2024 19.4 2.4 21.8 2025 16.9 2.2 19.1 2026 15.3 2.1 17.4 After 2026 94.9 13.7 108.6 Total lease payments 198.9 29.9 228.8 Less: Interest 25.6 4.1 29.7 Present value of lease liabilities $ 173.3 $ 25.8 $ 199.1 |
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 11.43 10.63 Finance leases 9.23 8.81 Weighted-average discount rate Operating leases 2.63 % 3.02 % Finance leases 2.79 % 3.08 % |
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 $ 33.5 $ 34.4 Operating cash flows for finance leases $ 0.8 $ 0.8 Financing cash flows for finance leases $ 5.3 $ 4.1 Leased assets obtained in exchange for new finance lease liabilities $ 4.6 $ 7.0 Leased assets obtained in exchange for new operating lease liabilities $ 48.8 $ 84.5 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 * 5.105% July 28, 2023 (3) 153.5 164.9 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 3.900% June 15, 2030 (5) 750.0 750.0 5.300% November 15, 2043 (2) 90.5 90.5 4.900% December 15, 2044 (1) 303.9 303.9 Total notes and bonds 2,913.5 2,924.9 Other financing 25.8 57.4 Unamortized premium (discount), net (4.8) (0.3) Deferred financing fees (14.0) (17.1) Total borrowings outstanding 3,520.5 3,564.9 Current indebtedness (603.8) (37.3) Total long-term debt less current portion $ 2,916.7 $ 3,527.6 (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". The coupon rate noted above is that as of December 31, 2021, following a step up in rate from 3.150% to 3.900%, effective December 16, 2021. * 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 2022 $ 604.9 2023 373.3 2024 704.2 2025 4.2 2026 704.2 Thereafter 1,148.5 |
Earnings Per Share And Shareh_2
Earnings Per Share And Shareholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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) $ (68.9) $ (162.6) $ 146.1 Denominator: Weighted average shares outstanding for basic EPS 133.6 136.1 136.0 Dilutive effect of share-based awards* — 1.1 0.5 Weighted average shares outstanding for diluted EPS 133.6 137.2 136.5 Anti-dilutive share-based awards excluded from computation of diluted EPS* — — 1.5 * In the period of a loss from continuing operations, 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) $ 129.6 $ 123.9 $ 112.4 Dividends paid (per share) $ 0.96 $ 0.90 $ 0.82 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, $ 57.0 $ 53.3 $ 46.7 |
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, 2019 1,464 $ 92.33 Forfeited or expired (120) $ 78.21 Options outstanding at December 31, 2020 1,344 $ 93.61 5.2 $ — Forfeited or expired (96) $ 91.10 Options outstanding December 31, 2021 1,248 $ 93.80 4.4 $ — Options exercisable 1,248 $ 93.80 4.4 $ — Options expected to vest — $ — 0.0 $ — |
Schedule of aggregate intrinsic value | The aggregate intrinsic value for options exercised was zero for the years ended December 31, 2021 and December 31, 2020, and $0.5 for the year ended December 31, 2019. |
Schedule of weighted average grant date fair value | The weighted-average fair value per share at the grant date for options granted was zero for the years ended December 31, 2021, December 31, 2020, and December 31, 2019. |
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, 2019 1,211 $ 60.96 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 $ 72.5 Granted 1,197 $ 41.36 Vested (782) $ 60.43 Forfeited (101) $ 46.32 Non-vested service-based share units outstanding at December 31, 2021 1,934 $ 45.52 0.8 $ 75.2 |
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, $ 47.2 $ 25.9 $ 25.6 |
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, 2019 653 $ 61.44 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 Granted 381 $ 41.04 Vested (188) $ 75.58 Forfeited (26) $ 47.74 Non-vested performance-based share units outstanding at December 31, 2021 918 $ 47.10 1.2 $ 35.7 |
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, $ 14.2 $ 12.7 $ 8.0 |
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, $ 41.20 $ 67.72 $ 55.61 The total fair value of RTSR performance share units that vested was as follows (in millions): Year Ended December 31, December 31, December 31, $ 0.5 $ 1.5 $ — |
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, 2019 142 $ 63.02 Granted 58 $ 67.72 Vested (24) $ 62.73 Non-vested RTSR performance share units outstanding at December 31, 2020 176 $ 65.04 1.5 $ 7.9 Granted 69 $ 41.20 Vested (9) $ 52.52 Non-vested RTSR performance share units outstanding at December 31, 2021 236 $ 53.85 1.2 $ 9.2 |
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 2.3 % 1.6 % 1.6 % Volatility, as a percent 44.0 % 40.4 % 40.2 % Risk-free interest rate 0.3 % 0.6 % 1.9 % Expected life in years 2.8 2.8 2.4 |
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, $ 41.36 $ 54.68 $ 47.48 |
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, $ 41.04 $ 55.08 $ 47.54 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 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 OCI before reclassifications (24.9) (339.9) 7.4 (357.4) Amounts reclassified from AOCI 3.6 — (5.7) (2.1) Other comprehensive income (loss) (21.3) (339.9) 1.7 (359.5) Balance at December 31, 2021 $ (22.0) $ 67.4 $ (9.9) $ 35.5 (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, 2021 | |
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 $ 341.9 $ (179.9) $ (204.0) United States (35.3) 91.5 (368.4) Other foreign (47.9) 94.3 720.4 Total pre-tax income (loss) 258.7 5.9 148.0 Current provision (benefit) for income taxes: Ireland 303.6 0.1 (0.5) United States 14.9 4.5 24.8 Other foreign 81.3 34.9 8.3 Subtotal 399.8 39.5 32.6 Deferred provision (benefit) for income taxes: Ireland 0.4 (0.1) — United States 3.3 (64.2) (24.1) Other foreign (13.9) (13.5) (19.2) Subtotal (10.2) (77.8) (43.3) Total provision for income taxes $ 389.6 $ (38.3) $ (10.7) |
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 1.5 (952.9) 6.9 State income taxes, net of federal benefit 0.2 139.7 1.5 Provision to return 0.4 144.3 1.0 Tax credits (19.6) (229.3) (3.9) Change in tax law 1.5 46.5 (1.2) Change in valuation allowance 17.1 (1,331.7) (29.2) Change in unrecognized taxes 116.5 437.3 (8.5) Permanent differences 1.6 1,624.8 16.5 Legal entity restructuring 18.6 (561.9) — Taxes on unremitted earnings 0.2 (0.1) 0.3 Other 0.1 15.0 (3.1) Effective income tax rate 150.6 % (655.8) % (7.2) % |
Schedule of deferred tax assets and liabilities | The components of our net deferred income tax asset (liability) are presented on a total company basis as follows (in millions): Year Ended December 31, December 31, Deferred income tax asset (liability): Depreciation and amortization $ (320.5) $ (393.7) Right of use assets (42.5) (44.3) Unremitted earnings 19.6 (42.0) Inventory basis differences 29.4 27.7 Accrued liabilities 38.3 81.4 Lease obligations 43.2 45.3 Share-based compensation 27.5 24.5 Federal benefit of unrecognized tax positions 21.7 23.5 Loss and credit carryforwards 341.7 390.1 R&D credit carryforwards 39.4 48.4 Interest carryforwards 6.9 17.9 Other, net 13.2 0.9 Subtotal $ 217.9 $ 179.7 Valuation allowance (1) (450.7) (414.8) Net deferred income tax liability $ (232.8) $ (235.1) (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 $ 6.5 $ 44.2 Liabilities (239.3) (279.3) Net deferred income tax liability $ (232.8) $ (235.1) |
Summary of Valuation Allowance | The change in valuation allowance reducing deferred taxes was (in millions): Year Ended December 31, December 31, December 31, Balance at beginning of period $ 414.8 $ 501.3 $ 557.9 Change in assessment (1) 39.1 (50.3) (8.3) Current year operations, foreign currency and other (3.2) (36.2) (48.3) Balance at end of period $ 450.7 $ 414.8 $ 501.3 (1) Includes additions of $40.0 million related primarily to our Latin American businesses in 2021, and 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 is presented on a total company basis and summarizes the activity related to the liability recorded for uncertain tax positions, excluding interest and penalties (in millions): Unrecognized 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 Additions: Positions related to the current year 11.4 Positions related to prior years 339.0 Reductions: Settlements with taxing authorities (344.1) Lapse of statutes of limitation (11.9) Decrease in prior year positions (41.9) Cumulative translation adjustment (1.3) Balance at December 31, 2021 $ 347.2 |
Post Employment Plans - (Tables
Post Employment Plans - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2019 $ 28.0 $ 27.3 $ 26.6 |
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, 2020 December 31, December 31, 2020 Projected benefit obligation at beginning of period $ 214.3 $ 186.9 $ 3.5 $ 3.7 Service costs 3.9 2.7 — — Interest cost 2.6 2.8 0.1 0.1 Actuarial loss (gain) 6.1 7.0 (0.5) (0.2) Contributions paid 0.3 0.2 — — Benefits paid (2.0) (2.3) (0.1) (0.1) Settlements (7.9) — — — Foreign currency translation (14.7) 17.0 — — Projected benefit obligation at end of period $ 202.6 $ 214.3 $ 3.0 $ 3.5 Fair value of plan assets at beginning of period 189.1 165.4 — — Actual return on plan assets 12.6 8.3 — — Benefits paid (2.0) (2.3) (0.1) (0.1) Settlements (7.9) — — — Employer contributions 2.7 2.3 0.1 0.1 Contributions paid 0.3 0.2 — — Foreign currency translation (13.1) 15.2 — — Fair value of plan assets at end of period $ 181.7 $ 189.1 $ — $ — Unfunded status $ (20.9) $ (25.2) $ (3.0) $ (3.5) Presented as: Other non-current assets $ 21.2 $ 17.9 $ — $ — Current assets held for sale $ 0.4 $ — $ — $ — Other non-current liabilities $ (39.1) $ (43.1) $ — $ — Current liabilities held for sale $ (3.4) $ — $ — $ — |
Schedule of accumulated benefit obligation | The total accumulated benefit obligation for the defined benefit pension plans was $194.9 million and $207.5 million at December 31, 2021 and December 31, 2020 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, 2020 Accumulated benefit obligation $ 104.7 $ 107.4 Fair value of plan assets $ 70.0 $ 71.1 |
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, 2020 Projected benefit obligation $ 112.5 $ 114.2 Fair value of plan assets $ 70.0 $ 71.1 |
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, 2020 December 31, $ 0.6 $ 0.2 $ 2.6 |
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, 2020 December 31, $ 9.9 $ 11.6 $ 6.2 |
Schedule of expected benefit payments | At December 31, 2021, the total estimated future benefit payments to be paid by the plans for the next five years is approximately $14.1 million for pension benefits and $0.9 million for other benefits as follows (in millions): Payment Due Pension Benefits Other Benefits 2022 $ 2.3 $ 0.1 2023 2.2 0.2 2024 2.9 0.2 2025 3.1 0.2 2026 3.6 0.2 Thereafter 28.5 1.0 |
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, 2021 December 31, 2020 December 31, 2019 December 31, 2021 December 31, 2020 December 31, 2019 Service cost $ 3.9 $ 2.7 $ 2.5 $ — $ — $ 0.6 Interest cost 2.6 2.8 3.8 0.1 0.1 0.2 Expected return on assets (5.5) (4.9) (4.9) — — — Settlement 1.1 — 0.9 — — — Curtailment — — (2.5) — — — Net actuarial loss/(gain) 0.1 0.9 0.8 (1.4) (3.2) (0.3) Net periodic pension cost/(gain) $ 2.2 $ 1.5 $ 0.6 $ (1.3) $ (3.1) $ 0.5 |
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, 2020 December 31, December 31, December 31, 2020 December 31, Discount rate 1.18 % 0.95 % 1.06 % 2.14 % 3.14 % 4.25 % Inflation 2.10 % 1.33 % 1.18 % Expected return on assets 1.55 % 1.76 % 2.54 % Interest crediting rates 0.34 % 0.59 % 0.83 % As of December 31, 2021, the expected weighted-average long-term rate of return on assets of 1.6% was calculated based on the assumptions of the following returns for each asset class: Equities 5.0 % Bonds 1.5 % Absolute return fund 4.0 % Insurance contracts 1.4 % Other 0.9 % |
Schedule of allocation of plan assets | Certain of our plans have target asset allocation ranges. As of December 31, 2021, these ranges were as follows: Equities 20%-30% Bonds 40%-50% Absolute return 10%-20% The following table sets forth the fair value of the pension plan assets (in millions): Year Ended December 31, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Equities $ 0.1 $ 41.2 $ — $ 41.3 $ — $ 42.8 $ — $ 42.8 Bonds 1.0 42.5 — 43.5 1.2 43.0 — 44.2 Insurance contracts — — 63.3 63.3 — — 64.2 64.2 Absolute return fund — 23.7 — 23.7 — 30.8 — 30.8 Other — 9.9 — 9.9 — 7.1 — 7.1 Total $ 1.1 $ 117.3 $ 63.3 $ 181.7 $ 1.2 $ 123.7 $ 64.2 $ 189.1 |
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, 2020 Assets at beginning of year $ 64.2 $ 56.1 Actual return on plan assets 1.9 1.9 Purchases, sales and settlements, net 1.1 1.2 Foreign exchange (3.9) 5.0 Assets at end of year $ 63.3 $ 64.2 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring Charges [Abstract] | |
Schedule of restructuring charges | The following reflects our restructuring activity (in millions): Balance at December 31, 2018 $ 23.7 Additional charges 25.0 Payments (28.9) Non-cash adjustments (0.3) Balance at December 31, 2019 19.5 Additional charges 3.2 Payments (14.2) Non-cash adjustments 0.6 Balance at December 31, 2020 9.1 Additional charges 16.9 Payments (19.0) Non-cash adjustments (0.1) Balance at December 31, 2021 $ 6.9 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 Held for Sale Unallocated Total Year Ended December 31, 2021 Net sales $ 2,693.1 $ 1,445.6 $ — $ — $ 4,138.7 Operating income $ 206.5 $ 36.1 $ — $ 167.8 $ 410.4 Operating income % 7.7 % 2.5 % — % — % 9.9 % Total assets $ 5,983.8 $ 4,425.8 $ 16.1 $ — $ 10,425.7 Capital expenditures $ 112.0 $ 24.0 $ — $ — $ 136.0 Property, plant and equipment, net $ 706.9 $ 157.2 $ — $ — $ 864.1 Depreciation/amortization $ 117.0 $ 179.8 $ — $ — $ 296.8 Year Ended December 31, 2020 Net sales $ 2,693.0 $ 1,395.2 $ — $ — $ 4,088.2 Operating income (loss) $ 465.0 $ 32.3 $ — $ (232.1) $ 265.2 Operating income % 17.3 % 2.3 % — % — % 6.5 % Total assets $ 4,585.1 $ 4,872.4 $ 2,030.9 $ — $ 11,488.4 Capital expenditures $ 131.4 $ 28.8 $ — $ — $ 160.2 Property, plant and equipment, net $ 701.1 $ 163.5 $ — $ — $ 864.6 Depreciation/amortization $ 109.9 $ 177.8 $ — $ — $ 287.7 Change in financial assets $ — $ — $ — $ 95.3 $ 95.3 Year Ended December 31, 2019 Net sales $ 2,487.7 $ 1,382.2 $ — $ — $ 3,869.9 Operating income (loss) $ 406.7 $ 19.6 $ — $ (251.6) $ 174.7 Operating income % 16.3 % 1.4 % — % — % 4.5 % Total assets $ 4,087.7 $ 4,682.7 $ 2,531.0 $ — $ 11,301.4 Capital expenditures $ 102.6 $ 18.8 $ — $ — $ 121.4 Property, plant and equipment, net $ 624.3 $ 149.9 $ — $ — $ 774.2 Depreciation/amortization $ 102.8 $ 194.3 $ — $ — $ 297.1 Change in financial assets $ — $ — $ — $ (22.1) $ (22.1) |
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. $ 674.9 $ 636.3 Europe (1) 174.4 169.7 All other countries 14.8 58.6 $ 864.1 $ 864.6 |
Schedules of concentration of risk | Sales to Walmart as a percentage of Consolidated Net sales (reported primarily in our CSCA segment) were as follows: Year Ended December 31, December 31, 2020 December 31, 14.0% 15.2% 15.5% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)reportingUnit | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |||
Customer related accruals and allowances | $ 125.8 | $ 147.5 | |
Foreign currency transaction loss, before tax | 26.8 | 0.3 | $ 3.2 |
Depreciation | 86.8 | 75.6 | 77.5 |
Property, Plant and Equipment, Gross [Abstract] | |||
Land | 51.3 | 52.2 | |
Buildings | 537.6 | 516.1 | |
Machinery and equipment | 1,186.8 | 1,157.2 | |
Gross property, plant and equipment | 1,775.7 | 1,725.5 | |
Less accumulated depreciation | (911.6) | (860.9) | |
Property, plant and equipment, net | $ 864.1 | 864.6 | 774.2 |
Number of reporting units | reportingUnit | 2 | ||
Research and development | $ 122 | 121.7 | 119.2 |
Advertising expense | 130.9 | 130.5 | 142.8 |
Non-designated derivatives | |||
Summary of Significant Accounting Policies [Line Items] | |||
Gain (loss) recognized in income on derivatives | $ (3.8) | 2.4 | (27.9) |
Foreign currency forward contracts | |||
Summary of Significant Accounting Policies [Line Items] | |||
Maximum remaining maturity of foreign currency derivatives | 60 months | ||
Foreign currency forward contracts | Non-designated derivatives | Other (Income) expense, net | |||
Summary of Significant Accounting Policies [Line Items] | |||
Gain (loss) recognized in income on derivatives | $ (5.1) | (1.1) | (24.8) |
Foreign currency options | Non-designated derivatives | Other (Income) expense, net | |||
Summary of Significant Accounting Policies [Line Items] | |||
Gain (loss) recognized in income on derivatives | $ (20.9) | $ 0 | $ 0 |
CSCI | |||
Property, Plant and Equipment, Gross [Abstract] | |||
Omega advertising percentage | 90.00% | ||
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) | 10 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 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Accounting for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 6.5 | $ 6 |
Provision for credit losses, net | 4 | 2.3 |
Receivables written-off | (0.7) | (2.2) |
Transfer to held for sale | (1.4) | 0 |
Currency translation adjustment | (1.2) | 0.4 |
Balance at end of period | $ 7.2 | $ 6.5 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue by Geographic Location (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1] | $ 4,138.7 | $ 4,088.2 | $ 3,869.9 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1] | 2,565.9 | 2,579 | 2,360.3 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1],[2] | 1,393 | 1,350.6 | 1,335.8 |
All other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1],[3] | 179.8 | 158.6 | 173.8 |
Ireland | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 23.7 | $ 29.8 | $ 23.4 | |
[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 $23.7 million, $29.8 million, and $23.4 million for the years ended December 31, 2021, December 31, 2020, and December 31, 2019, respectively. | |||
[3] | Includes revenue generated primarily in Mexico, Australia, and Canada. |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Revenue by Product (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1] | $ 4,138.7 | $ 4,088.2 | $ 3,869.9 |
CSCA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 2,693.1 | 2,693 | 2,487.7 |
CSCA | Upper respiratory | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 483.1 | 505.8 | 529.3 |
CSCA | Digestive health | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 475.1 | 471.3 | 429.2 |
CSCA | Pain and sleep-aids | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 405.4 | 434.5 | 390.9 |
CSCA | Nutrition | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 401.9 | 388.3 | 395.3 |
CSCA | Oral care | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 311.9 | 288.2 | 111.7 |
CSCA | Healthy lifestyle | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 297.7 | 352.4 | 356.1 |
CSCA | Skincare and personal hygiene | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 219.2 | 200.6 | 191.3 |
CSCA | Vitamins, minerals, and supplements | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 31.7 | 27 | 28.6 |
CSCA | Animal health | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 0 | 0 | 43.7 |
CSCA | Other CSCA | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [3] | 67.1 | 24.9 | 11.6 |
CSCI | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,445.6 | 1,395.2 | 1,382.2 | |
CSCI | Upper respiratory | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 226.2 | 255.1 | 276.8 | |
CSCI | Digestive health | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 38.4 | 26.5 | 27.1 | |
CSCI | Pain and sleep-aids | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 201.8 | 190.4 | 167.9 | |
CSCI | Oral care | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 95.8 | 97.8 | 51.2 | |
CSCI | Healthy lifestyle | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 179.3 | 165.4 | 173.8 | |
CSCI | Skincare and personal hygiene | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 394.3 | 351.8 | 371.6 | |
CSCI | Vitamins, minerals, and supplements | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 217.4 | 201 | 180.2 | |
CSCI | Other CSCI | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [4] | $ 92.4 | $ 107.2 | $ 133.6 |
[1] | The net sales by geography is derived from the location of the entity that sells to a third party. | |||
[2] | Includes net sales from our OTC contract manufacturing business. | |||
[3] | Consists primarily of product sales and royalty income related to supply and distribution agreements, diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales. | |||
[4] | 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 | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1] | $ 4,138.7 | $ 4,088.2 | $ 3,869.9 |
Contract manufacturing | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 299.7 | $ 261.4 | $ 285.3 | |
[1] | 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, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Short-term contract assets | $ 40.2 | $ 19.7 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) € in Millions, $ in Millions | Oct. 30, 2020EUR (€)brand | Oct. 30, 2020USD ($)brand | Apr. 01, 2020USD ($) | Feb. 13, 2020USD ($) | Jan. 03, 2020USD ($) | Nov. 29, 2019USD ($) | Jul. 01, 2019USD ($) | May 17, 2019USD ($) | Apr. 01, 2019USD ($) | Sep. 30, 2021contract | Jul. 02, 2022EUR (€) | Jul. 02, 2022USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | $ 3,095.7 | $ 2,999.4 | $ 3,102.8 | ||||||||||||
CSCA | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | 1,905 | 1,902.4 | 1,899.1 | ||||||||||||
CSCI | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | 1,190.7 | $ 1,097 | $ 1,203.7 | ||||||||||||
Developed product technology, formulations, and product rights | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Useful life of intangible assets | 8 years | ||||||||||||||
HRA Pharma | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Number of derivative contracts | contract | 2 | ||||||||||||||
HRA Pharma | Forecast | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Binding offer for acquisition | € 1,800 | $ 2,100 | |||||||||||||
Sanofi Brands | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Number of brands acquired | brand | 3 | 3 | |||||||||||||
Purchase price paid | € 53.3 | $ 62.3 | |||||||||||||
Useful life of intangible assets | 18 years 9 months 18 days | 18 years 9 months 18 days | |||||||||||||
Sanofi Brands | Brand | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible assets acquired | $ 52.5 | ||||||||||||||
Oral Care Assets of High Ridge Brands (Dr. Fresh) | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Binding offer for acquisition | $ 113 | ||||||||||||||
Purchase price paid | $ 106.2 | ||||||||||||||
Goodwill | $ 17.2 | ||||||||||||||
Weighted-average useful life (in years) | 17 years 9 months 18 days | ||||||||||||||
Dexsil | Brand | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible assets acquired | $ 8 | ||||||||||||||
Weighted-average useful life (in years) | 25 years | ||||||||||||||
Steripod | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price paid | $ 26 | ||||||||||||||
Steripod | Brand | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible assets acquired | $ 25.1 | ||||||||||||||
Weighted-average useful life (in years) | 25 years | ||||||||||||||
Branded OTC Rights of Prevacid | Brand | CSCA | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Intangible assets acquired | $ 61.7 | ||||||||||||||
Weighted-average useful life (in years) | 20 years | ||||||||||||||
Purchase price | $ 61.5 | ||||||||||||||
Generic Product Acquisition | Developed product technology, formulations, and product rights | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Weighted-average useful life (in years) | 20 years | ||||||||||||||
Purchase price | $ 15.7 | ||||||||||||||
Budesonide Nasal Spray and Triamcinolone Nasal Spray | Developed product technology, formulations, and product rights | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Weighted-average useful life (in years) | 10 years | ||||||||||||||
Purchase price | $ 14 | ||||||||||||||
Income from sales owned by Company (percent) | 100.00% | ||||||||||||||
Ranir Global Holdings, LLC | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Purchase price paid | $ 759.2 | ||||||||||||||
Goodwill | 292.7 | ||||||||||||||
Tax deductible goodwill | $ 252.3 | ||||||||||||||
Ranir Global Holdings, LLC | CSCA | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | $ 212.6 | ||||||||||||||
Ranir Global Holdings, LLC | CSCI | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | $ 80.1 | ||||||||||||||
Ranir Global Holdings, LLC | Trademarks and trade names | Minimum | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Weighted-average useful life (in years) | 20 years | ||||||||||||||
Ranir Global Holdings, LLC | Trademarks and trade names | Maximum | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Weighted-average useful life (in years) | 25 years | ||||||||||||||
Ranir Global Holdings, LLC | Customer relationships and distribution networks | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Weighted-average useful life (in years) | 24 years | ||||||||||||||
Ranir Global Holdings, LLC | Developed product technology, formulations, and product rights | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Weighted-average useful life (in years) | 10 years |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Consideration Paid and Provisional Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jul. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 01, 2020 |
Business Acquisition [Line Items] | |||||||
Cash consideration - net of cash acquired | $ 0 | $ 168.5 | $ 747.7 | ||||
Assets acquired: | |||||||
Goodwill | $ 3,102.8 | $ 3,095.7 | $ 2,999.4 | 3,095.7 | $ 3,102.8 | ||
Oral Care Assets of High Ridge Brands (Dr. Fresh) | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price paid | 106.2 | ||||||
Prepayment of contract consideration | 2 | $ 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 | ||||||
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 | ||||||
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 | ||||||
Other non-current liabilities | 2.5 | ||||||
Total liabilities | 16.1 | ||||||
Net assets acquired | 106.2 | ||||||
Oral Care Assets of High Ridge Brands (Dr. Fresh) | Distribution and License Agreements and Supply Agreements | |||||||
Assets acquired: | |||||||
Definite-lived intangibles: | 2.2 | ||||||
Oral Care Assets of High Ridge Brands (Dr. Fresh) | Developed product technology, formulations, and product rights | |||||||
Assets acquired: | |||||||
Definite-lived intangibles: | 0.1 | ||||||
Oral Care Assets of High Ridge Brands (Dr. Fresh) | Customer relationships and distribution networks | |||||||
Assets acquired: | |||||||
Definite-lived intangibles: | 20.6 | ||||||
Oral Care Assets of High Ridge Brands (Dr. Fresh) | Trademarks, trade names, and brands | |||||||
Assets acquired: | |||||||
Definite-lived intangibles: | $ 43.2 | ||||||
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 | ||||||
Ranir Global Holdings, LLC | Developed product technology, formulations, and product rights | |||||||
Assets acquired: | |||||||
Definite-lived intangibles: | 48.6 | ||||||
Ranir Global Holdings, LLC | Customer relationships and distribution networks | |||||||
Assets acquired: | |||||||
Definite-lived intangibles: | 260 | ||||||
Ranir Global Holdings, LLC | Trademarks, trade names, and brands | |||||||
Assets acquired: | |||||||
Definite-lived intangibles: | 41 | ||||||
Ranir Global Holdings, LLC | In-process research and development | |||||||
Assets acquired: | |||||||
Indefinite-lived intangibles: | $ 39.7 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Pro Forma Impact of Ranir Acquisition (Details) - Ranir Global Holdings, LLC - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||
Net sales | $ 4,136.5 | $ 4,144.7 |
Net income (loss) | $ 58.2 | $ 185 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Divestitures (Details) £ in Millions, $ in Millions | Jun. 19, 2020USD ($) | Jun. 19, 2020GBP (£) | Jul. 08, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | ||||||
Net proceeds from sale of businesses | $ 1,491.9 | $ 187.8 | $ 182.5 | |||
Gain (loss) on sale of business | $ 47.5 | $ (20.9) | $ 71.7 | |||
Rosemont Pharmaceuticals | ||||||
Business Acquisition [Line Items] | ||||||
Net proceeds from sale of businesses | $ 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 businesses | $ 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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jul. 03, 2021 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 3,095.7 | $ 3,102.8 | |
Business divestitures | (115.6) | ||
Business acquisitions | 22.1 | ||
Currency translation adjustments | (80.2) | 84.8 | |
Purchase accounting adjustments | 0 | 1.6 | |
Impairments | (16.1) | ||
Ending balance | 2,999.4 | 3,095.7 | |
CSCA | |||
Goodwill [Roll Forward] | |||
Beginning balance | 1,905 | 1,899.1 | |
Business divestitures | 0 | ||
Business acquisitions | 14.8 | ||
Currency translation adjustments | 1.1 | 1.5 | |
Purchase accounting adjustments | 2.4 | (10.4) | |
Impairments | (6.1) | ||
Ending balance | 1,902.4 | 1,905 | |
Accumulated impairments | $ 6.1 | ||
CSCI | |||
Goodwill [Roll Forward] | |||
Beginning balance | 1,190.7 | 1,203.7 | |
Business divestitures | (115.6) | ||
Business acquisitions | 7.3 | ||
Currency translation adjustments | (81.3) | 83.3 | |
Purchase accounting adjustments | (2.4) | 12 | |
Impairments | (10) | ||
Ending balance | 1,097 | 1,190.7 | |
Accumulated impairments | $ (878.4) | $ (868.4) |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 27, 2020 | |
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||
Goodwill impairment charge | $ 16,100 | |||
Goodwill | 2,999,400 | $ 3,095,700 | $ 3,102,800 | |
Amortization of intangible assets | 210,000 | 212,200 | 219,600 | |
In-process research and development | ||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||
Impairment of intangible assets, indefinite-lived | 900 | 4,100 | ||
CSCA | ||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||
Goodwill impairment charge | 6,100 | |||
Goodwill | 1,902,400 | 1,905,000 | 1,899,100 | |
CSCI | ||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||
Goodwill impairment charge | 10,000 | |||
Goodwill | $ 1,097,000 | $ 1,190,700 | 1,203,700 | |
Licensed Pain Relief Products | CSCI | ||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||
Impairment of intangible assets, definite-lived intangible | $ 9,700 | |||
BCS | CSCI | ||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||
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% |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Indefinite-lived intangible assets, gross | $ 5.3 | $ 7 |
Definite lived assets, gross | 3,678.5 | 3,883 |
Accumulated Amortization | 1,532.4 | 1,401.5 |
Total other intangible assets | 3,683.8 | 3,890 |
Distribution and license agreements and supply agreements | ||
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Definite lived assets, gross | 73.2 | 74.8 |
Accumulated Amortization | 56.9 | 55.4 |
Developed product technology, formulations, and product rights | ||
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Definite lived assets, gross | 300.2 | 303.3 |
Accumulated Amortization | 191.4 | 177.3 |
Customer relationships and distribution networks | ||
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Definite lived assets, gross | 1,820.7 | 1,920.5 |
Accumulated Amortization | 887.8 | 823.7 |
Trademarks, trade names, and brands | ||
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Definite lived assets, gross | 1,482.3 | 1,581.5 |
Accumulated Amortization | 394.2 | 342.2 |
Non-compete agreements | ||
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Definite lived assets, gross | 2.1 | 2.9 |
Accumulated Amortization | 2.1 | 2.9 |
Trademarks, trade names, and brands | ||
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Indefinite-lived intangible assets, gross | 3.5 | 4.3 |
In-process research and development | ||
Finite And Indefinite Lived Assets By Major Class [Line Items] | ||
Indefinite-lived intangible assets, gross | $ 1.8 | $ 2.7 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Intangible Asset Remaining Weighted-Average Useful Life (Details) | 12 Months Ended |
Dec. 31, 2021 | |
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) | 8 years |
Customer relationships and distribution networks | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining Weighted-Average Useful Life (Years) | 15 years |
Trademarks, trade names, and brands | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining Weighted-Average Useful Life (Years) | 15 years |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Millions | Dec. 31, 2021USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2022 | $ 194.9 |
2023 | 183.6 |
2024 | 174.7 |
2025 | 168 |
2026 | 160.2 |
Thereafter | $ 1,264.7 |
Accounts Receivable Factoring (
Accounts Receivable Factoring (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Receivable Factoring [Abstract] | ||
Accounts receivable factored and excluded from balance sheet | $ 0 | $ 6.9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 549.2 | $ 574.1 |
Work in process | 251.9 | 220.4 |
Raw materials | 219.1 | 264.9 |
Total inventories | $ 1,020.2 | $ 1,059.4 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments at Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets: | |||
Goodwill carrying value | $ 2,999.4 | $ 3,095.7 | $ 3,102.8 |
Assets Held for Sale | Mexico and Brazil-based Over-the-counter Businesses | |||
Liabilities: | |||
Total impairment charge | 162.2 | ||
Recurring | Level 1 | |||
Assets: | |||
Investment securities | 0.4 | 2.5 | |
Foreign currency forward contracts | 0 | 0 | |
Cross-currency swap | 0 | 0 | |
Foreign currency option contracts | 0 | 0 | |
Total assets | 0.4 | 2.5 | |
Liabilities: | |||
Foreign currency forward contracts | 0 | 0 | |
Cross-currency swap | 0 | 0 | |
Total liabilities | 0 | 0 | |
Recurring | Level 2 | |||
Assets: | |||
Investment securities | 0 | 0 | |
Foreign currency forward contracts | 5.7 | 9.8 | |
Cross-currency swap | 0 | 6.3 | |
Foreign currency option contracts | 5 | 0 | |
Total assets | 10.7 | 16.1 | |
Liabilities: | |||
Foreign currency forward contracts | 2.4 | 7.9 | |
Cross-currency swap | 13.8 | 0 | |
Total liabilities | 16.2 | 7.9 | |
Recurring | Level 3 | |||
Assets: | |||
Investment securities | 0 | 0 | |
Foreign currency forward contracts | 0 | 0 | |
Cross-currency swap | 0 | 0 | |
Foreign currency option contracts | 0 | 0 | |
Total assets | 0 | 0 | |
Liabilities: | |||
Foreign currency forward contracts | 0 | 0 | |
Cross-currency swap | 0 | 0 | |
Total liabilities | 0 | 0 | |
Nonrecurring | Level 1 | |||
Assets: | |||
Goodwill | 0 | 0 | |
Total assets | 0 | 0 | |
Liabilities: | |||
Liabilities held-for-sale, net | 0 | 0 | |
Total liabilities | 0 | 0 | |
Nonrecurring | Level 2 | |||
Assets: | |||
Goodwill | 0 | 0 | |
Total assets | 0 | 0 | |
Liabilities: | |||
Liabilities held-for-sale, net | 0 | 0 | |
Total liabilities | 0 | 0 | |
Nonrecurring | Level 3 | |||
Assets: | |||
Goodwill | 71.7 | 0 | |
Total assets | 71.7 | 0 | |
Liabilities: | |||
Liabilities held-for-sale, net | 16.8 | 0 | |
Total liabilities | 16.8 | 0 | |
CSCA | |||
Assets: | |||
Goodwill carrying value | 1,902.4 | $ 1,905 | $ 1,899.1 |
CSCA | Nonrecurring | |||
Assets: | |||
Goodwill carrying value | $ 81.7 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net proceeds from sale of businesses | $ 1,491.9 | $ 187.8 | $ 182.5 | |
Long-term growth rate | Oral care | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Indefinite-lived intangible assets, measurement input (percent) | 0.020 | |||
Tax rate | Oral care | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discounted cash flow (percent) | 0.165 | |||
Tax rate | Oral care | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discounted cash flow (percent) | 0.291 | |||
Discount rate | Oral care | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discounted cash flow (percent) | 0.0975 | |||
Royalty Pharma Contingent Milestone Payments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net sales threshold to trigger milestone payment | 351 | |||
Royalty Pharma contingent payment sales threshold | 400 | |||
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] | ||||
Royalty Pharma asset value | $ 0 | 95.3 | (95.3) | |
Change in fair value | $ (95.3) | 22.1 | ||
Net proceeds from sale of businesses | $ 250 |
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] | ||
Balance at beginning of period | $ (95.3) | |
Change in fair value | (95.3) | $ 22.1 |
Balance at end of period | $ 95.3 | $ (95.3) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 08, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Public bonds | $ 2,913.5 | $ 2,924.9 | $ 2,300 |
Public bonds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Public bonds | 2,847.2 | 3,031.1 | |
Private placement note | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value (excluding premium) | 162.6 | 177.5 | |
Reported Value Measurement | Public bonds | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Public bonds | 2,760 | 2,760 | |
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) | $ 153.5 | $ 164.9 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | Jul. 06, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Discontinued Operations | ||||
Gain (loss) on sale of business | $ 47.5 | $ (20.9) | $ 71.7 | |
Foreign currency translation gain | $ 159.3 | |||
Purchase of inventory | 2.4 | $ 170.6 | $ 67 | |
Prepaid expenses and other current assets | ||||
Discontinued Operations | ||||
Receivable from transition services agreement | 2.3 | |||
RX Pharmaceuticals | Discontinued Operations, Disposed of by Sale | ||||
Discontinued Operations | ||||
Total consideration in definitive agreement to sell | 1,550 | |||
Potential R&D milestone payments and contingent purchase obligations assumed by purchaser | 53.3 | |||
Gain (loss) on sale of business | $ 47.5 | |||
Transition service period | 24 months | |||
Supply agreement term | 4 years | |||
Supply agreement, extension period | 7 years | |||
Proceeds from transition services agreement | 3.6 | |||
Proceeds from supply and distribution agreements | 28.7 | |||
Payments for supply arrangements | 12 | |||
Aggregate cap on buyer's obligation for certain pre-closing liabilities (percent) | 50.00% | |||
Aggregate cap on buyer's obligation for certain pre-closing liabilities | $ 50 | |||
Separation costs | 40.8 | |||
RX Pharmaceuticals | Discontinued Operations, Disposed of by Sale | Other Operating Expense (Income) | ||||
Discontinued Operations | ||||
Income from transition services agreement | 7.2 | |||
RX Pharmaceuticals | Discontinued Operations, Disposed of by Sale | Net Sales | ||||
Discontinued Operations | ||||
Product sales and royalty income from transition services agreement | 60.6 | |||
RX Business | Discontinued Operations, Disposed of by Sale | RX Pharmaceuticals | ||||
Discontinued Operations | ||||
Purchase of inventory | $ 18.4 |
Discontinued Operations - Resul
Discontinued Operations - Results of Discontinued Operations (Details) - Discontinued Operations, Disposed of by Sale - RX Pharmaceuticals - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | $ 405,100 | $ 975,000 | $ 967,500 |
Cost of sales | 258,400 | 645,100 | 619,500 |
Gross profit | 146,700 | 329,900 | 348,000 |
Distribution | 6,100 | 15,200 | 14,100 |
Research and development | 30,800 | 54,800 | 67,300 |
Selling | 16,300 | 30,100 | 25,100 |
Administration | 36,400 | 31,800 | 39,100 |
Impairment charges | 0 | 346,800 | 170,700 |
Restructuring charges | 0 | 300 | 300 |
Other operating expense (income) | (400) | 700 | 1,300 |
Total operating expenses | 89,200 | 479,700 | 317,900 |
Operating income | 57,500 | (149,800) | 30,100 |
Interest expense, net | 800 | 3,500 | 4,300 |
Other (income) expense, net | (1,600) | 2,000 | 2,800 |
Income before income taxes | 58,300 | (155,300) | 23,000 |
Gain on disposal of discontinued operations before tax | (47,500) | 0 | 0 |
Income (loss) from discontinued operation, before income tax | 105,800 | (155,300) | 23,000 |
Income tax expense | 43,800 | 51,500 | 35,600 |
Income (loss) from discontinued operations, net of tax | $ 62,000 | $ (206,800) | $ (12,600) |
Discontinued Operations - Cash
Discontinued Operations - Cash Flow Information (Details) - USD ($) $ in Thousands | Mar. 08, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash flows from discontinued operations investing activities: | |||||
Net proceeds from sale of businesses | $ 1,491,900 | $ 187,800 | $ 182,500 | ||
Discontinued Operations, Disposed of by Sale | RX Pharmaceuticals | |||||
Cash flows from discontinued operations operating activities: | |||||
Depreciation and amortization | 15,400 | 97,000 | 99,400 | ||
Restructuring charges | 0 | 300 | 300 | ||
Impairment charges | 0 | 346,800 | 170,700 | ||
Share-based compensation | 10,800 | 5,200 | 5,500 | ||
Gain on sale of business | (47,500) | 0 | 0 | ||
Cash flows from discontinued operations investing activities: | |||||
Asset acquisitions | $ (53,300) | $ (16,400) | (69,700) | (900) | (49,100) |
Additions to property, plant and equipment | (16,100) | (10,200) | (16,300) | ||
Net proceeds from sale of businesses | $ 1,491,900 | $ 0 | $ 0 |
Discontinued Operations - Addit
Discontinued Operations - Additional Cash Flow Information (Details) $ in Millions | Mar. 08, 2021USD ($) | Dec. 31, 2020USD ($) | May 15, 2015brand | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of ANDAs acquired | brand | 2 | |||||
Discontinued Operations, Disposed of by Sale | RX Pharmaceuticals | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Asset acquisitions | $ | $ 53.3 | $ 16.4 | $ 69.7 | $ 0.9 | $ 49.1 |
Discontinued Operations - Asset
Discontinued Operations - Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash and cash equivalents | $ 14.4 | $ 10 | $ 9.8 | $ 9.2 |
Current assets held for sale | 16.1 | 666.9 | ||
Non-current assets held for sale | 0 | 1,364 | ||
Current liabilities held for sale | 32.9 | 419.6 | ||
Non-current liabilities held for sale | $ 0 | 108.3 | ||
Discontinued Operations, Disposed of by Sale | RX Pharmaceuticals | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash and cash equivalents | 10 | |||
Accounts receivable, net of allowance for credit losses of $1.1 | 460.7 | |||
Allowance for credit loss | 1.1 | |||
Inventories | 140.8 | |||
Prepaid expenses and other current assets | 55.4 | |||
Current assets held for sale | 666.9 | |||
Property, plant and equipment, net | 131.4 | |||
Operating lease assets | 31.3 | |||
Goodwill and indefinite-lived intangible assets | 681.2 | |||
Definite-lived intangible assets, net | 492.8 | |||
Deferred income taxes | 3.6 | |||
Other non-current assets | 23.7 | |||
Non-current assets held for sale | 1,364 | |||
Total assets held for sale | 2,030.9 | |||
Accounts payable | 92.2 | |||
Payroll and related taxes | 22.3 | |||
Accrued customer programs | 237.4 | |||
Other accrued liabilities | 67.2 | |||
Current indebtedness | 0.5 | |||
Current liabilities held for sale | 419.6 | |||
Long-term debt, less current portion | 0.7 | |||
Deferred income taxes | 3.1 | |||
Other non-current liabilities | 104.5 | |||
Non-current liabilities held for sale | 108.3 | |||
Total liabilities held for sale | $ 527.9 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Oct. 02, 2021 | Jul. 03, 2021 | Dec. 31, 2021 |
CSCA | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Accumulated impairments | $ 6.1 | |||
Assets Held for Sale | Mexico and Brazil-based Over-the-counter Businesses | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Fair value impairment charge | $ 1 | $ 2.6 | $ 152.5 | $ 156.1 |
Total impairment charge | 162.2 | |||
Assets Held for Sale | Mexico and Brazil-based Over-the-counter Businesses | Current assets held for sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale | 16.1 | 16.1 | ||
Assets Held for Sale | Mexico and Brazil-based Over-the-counter Businesses | Current liabilities held for sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Liabilities held for sale | $ 32.9 | $ 32.9 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | Jun. 17, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Purchase of equity method investment | $ 0 | $ 15 | $ 0 | ||
Other (income) expense, net | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity securities, fair value method, other expense (income) | 2 | 3 | 4.9 | ||
Equity securites, equity method, other expense (income) | 1.1 | (3) | $ (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 | ||||
Prepaid expenses and other current assets | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity securities, fair value method | 2.5 | ||||
Other non-current assets | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity securities, fair value method | [1] | 1.8 | 1.9 | ||
Equity method investments | $ 66.4 | $ 69.8 | |||
[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) € in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021EUR (€) | Sep. 30, 2021USD ($)derivative | |
Non-designated derivatives | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of loss recognized in income | $ 3.8 | $ (2.4) | $ 27.9 | ||
Cross-currency swap | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount of derivatives | 498 | € 450 | |||
Foreign currency options | Non-designated derivatives | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount of derivatives | $ 1,100 | ||||
Number of Foreign Currency Derivatives Held | derivative | 2 | ||||
Derivative, Deferred Financing Fee | 25.9 | ||||
Foreign currency options | Non-designated derivatives | Other (Income) expense, net | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of loss recognized in income | $ 20.9 | $ 0 | $ 0 |
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, 2021 | Dec. 31, 2020 | |
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 | $ 588.1 | $ 867.7 |
European Euro (EUR) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 232.6 | 312.6 |
British Pound (GBP) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 135.8 | 92.3 |
Swedish Krona (SEK) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 47.8 | 41.2 |
Chinese Yuan (CNH) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 37.7 | 49.1 |
Danish Krone (DKK) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 37.5 | 65.2 |
Canadian Dollar (CAD) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 29 | 36.8 |
United States Dollar (USD) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 22.9 | 101.5 |
Polish Zloty (PLZ) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 21 | 21.8 |
Norwegian Krone (NOK) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 11 | 7.8 |
Turkish Lira (TRY) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 3.1 | 4 |
Switzerland Franc (CHF) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 1.9 | 8.2 |
Australian Dollar (AUD) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 1.6 | 11.3 |
Romanian New Leu (RON) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 1.6 | 3.6 |
Mexican Peso (MPX) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 1 | 15.6 |
Israeli Shekel (ILS) | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | 0 | 94.4 |
Other | ||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||
Notional amount of derivatives | $ 3.6 | $ 2.3 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Designated derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 4.8 | $ 11.8 |
Liability Derivatives | 15 | 5.5 |
Non-designated derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 5.9 | 4.3 |
Foreign currency forward contracts | Designated derivatives | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 3.5 | 5 |
Foreign currency forward contracts | Designated derivatives | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 1.3 | 0.5 |
Foreign currency forward contracts | Designated derivatives | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1.2 | 5.5 |
Foreign currency forward contracts | Non-designated derivatives | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0.9 | 4.3 |
Foreign currency forward contracts | Non-designated derivatives | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1.2 | 2.4 |
Cross-currency swap | Designated derivatives | Other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 6.3 |
Cross-currency swap | Designated derivatives | Other accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 13.8 | 0 |
Foreign currency options | Non-designated derivatives | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 0 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI, Cash flow hedges | $ 5.7 | [1] | $ 5 | $ (2.4) |
Amount of Gain/(Loss) Recorded in OCI, Net investment hedges | (31.2) | |||
Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing | 1.2 | 1.5 | (4.7) | |
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 | 7.5 | |||
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 | (3.6) | 0.3 | (0.3) | |
Treasury locks | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI, Cash flow hedges | 0 | [1] | 0 | 0 |
Treasury locks | Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | (0.1) | (0.1) | (0.1) | |
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0 | 0 | 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 | Other (income) expense, net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | 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 | 0 |
Interest rate swap agreements | Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | (1.8) | (1.8) | (1.8) | |
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0 | 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 | Other (income) 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 | |||
Foreign currency forward contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI, Cash flow hedges | 5.7 | [1] | 5 | (2.4) |
Amount of Gain/(Loss) Recorded in OCI, Net investment hedges | (11.2) | |||
Foreign currency forward contracts | Interest Expense | ||||
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) | |||
Foreign currency forward contracts | Net Sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | (2.5) | 0.2 | 2.5 | |
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0 | 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 | 0.8 | 2 | (0.9) | |
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0.5 | 0.9 | (2.6) | |
Foreign currency forward contracts | Other (income) 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 | 0.7 | 0.5 | ||
Cross-currency swap | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI, Net investment hedges | (20.1) | [1] | (20) | 31.2 |
Cross-currency swap | Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | $ (3.9) | $ 6.6 | $ 4.9 | |
[1] | Net loss of $7.5 million is expected to be reclassified out of AOCI into earnings during the next 12 months. |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Amount of Gain (Loss) Recorded in OCI/Reclassified from AOCI into Earnings (Effective Portion) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI, Cash flow hedges | $ 5.7 | [1] | $ 5 | $ (2.4) |
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 1.2 | 1.5 | (4.7) | |
Amount of Gain/(Loss) Recorded in OCI, Net investment hedges | (31.2) | |||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 6.5 | |||
Fair Value of Derivative Financial Instruments, net of tax | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (3.6) | 0.3 | (0.3) | |
Treasury locks | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI, Cash flow hedges | 0 | [1] | 0 | 0 |
Treasury locks | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | (0.1) | (0.1) | (0.1) | |
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0 | 0 | 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 | 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 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI, Cash flow hedges | 0 | [1] | 0 | 0 |
Interest rate swap agreements | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | (1.8) | (1.8) | (1.8) | |
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 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 | 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 | |||
Foreign currency forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI, Cash flow hedges | 5.7 | [1] | 5 | (2.4) |
Amount of Gain/(Loss) Recorded in OCI, Net investment hedges | (11.2) | |||
Foreign currency forward contracts | Interest Expense | ||||
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 | ||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | (0.1) | |||
Foreign currency forward contracts | Net Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | (2.5) | 0.2 | 2.5 | |
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0 | 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 | 0.8 | 2 | (0.9) | |
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0.5 | 0.9 | (2.6) | |
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 | 0.7 | 0.5 | ||
Currency Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI, Net investment hedges | (20.1) | [1] | (20) | 31.2 |
Currency Swap [Member] | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | $ (3.9) | $ 6.6 | $ 4.9 | |
[1] | Net loss of $7.5 million is expected to be reclassified out of AOCI into earnings during the next 12 months. |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Non-Designated Derivatives (Details) - Non-designated derivatives - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income | $ (3.8) | $ 2.4 | $ (27.9) |
Foreign currency forward contracts | Interest Expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income | 1.3 | 3.5 | (3.1) |
Foreign currency forward contracts | Other (Income) expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income | (5.1) | (1.1) | (24.8) |
Foreign currency options | Other (Income) expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain/(Loss) Recognized in Income | $ (20.9) | $ 0 | $ 0 |
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 | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net sales | [1] | $ 4,138.7 | $ 4,088.2 | $ 3,869.9 |
Cost of sales | 2,722.5 | 2,593.3 | 2,436.2 | |
Interest expense, net | 125 | 127.7 | 117.5 | |
Other (income) expense, net | 26.7 | 16.3 | (68.9) | |
Foreign currency forward contracts | Net Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | (2.5) | 0.2 | 2.5 | |
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0 | 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 | 0.8 | 2 | (0.9) | |
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | 0.5 | 0.9 | (2.6) | |
Foreign currency forward contracts | Interest Expense | ||||
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 | 0.7 | 0.5 | ||
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 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | (0.1) | (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 | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain or (loss) reclassified from AOCI into earnings | (1.8) | (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] | 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, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | $ 166.9 | $ 154.7 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Finance leases | $ 27.9 | $ 29.8 |
Right-of-use assets | $ 194.8 | $ 184.5 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Operating lease liability, current | $ 26 | $ 28.3 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current indebtedness | Current indebtedness |
Finance lease liability, current | $ 4.9 | $ 6.7 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities |
Operating lease liability, noncurrent | $ 147.3 | $ 132.5 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Total long-term debt, less current portion | Total long-term debt, less current portion |
Finance lease liability, noncurrent | $ 20.9 | $ 20.2 |
Present value of lease liabilities | 199.1 | 187.7 |
Total operating lease liabilities | 173.3 | 160.8 |
Total finance lease liabilities | 25.8 | 26.9 |
CSCA | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | 98.2 | 75.9 |
Finance leases | 15.3 | 16.7 |
Total operating lease liabilities | 99.7 | 75.8 |
Total finance lease liabilities | 16 | 17 |
CSCI | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | 30.7 | 34.4 |
Finance leases | 7.9 | 5.9 |
Total operating lease liabilities | 31.8 | 35.2 |
Total finance lease liabilities | 5 | 2.5 |
Unallocated | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | 38 | 44.4 |
Finance leases | 4.7 | 7.2 |
Total operating lease liabilities | 41.8 | 49.8 |
Total finance lease liabilities | $ 4.8 | $ 7.4 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Leases [Abstract] | ||||
Operating leases | [1] | $ 38.6 | $ 37.3 | |
Finance leases | ||||
Amortization | 5.9 | 4.4 | ||
Interest | 0.8 | 0.8 | ||
Total finance leases | $ 6.7 | $ 5.2 | ||
Operating lease expense | $ 37.9 | |||
[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, 2021 | Dec. 31, 2020 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 29.9 | |
2023 | 22.5 | |
2024 | 19.4 | |
2025 | 16.9 | |
2026 | 15.3 | |
After 2026 | 94.9 | |
Total lease payments | 198.9 | |
Less: Interest | 25.6 | |
Present value of lease liabilities | 173.3 | $ 160.8 |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2022 | 5.6 | |
2023 | 3.9 | |
2024 | 2.4 | |
2025 | 2.2 | |
2026 | 2.1 | |
After 2026 | 13.7 | |
Total lease payments | 29.9 | |
Less: Interest | 4.1 | |
Present value of lease liabilities | 25.8 | 26.9 |
Lease Liabilities, Payments, Due [Abstract] | ||
2022 | 35.5 | |
2023 | 26.4 | |
2024 | 21.8 | |
2025 | 19.1 | |
2026 | 17.4 | |
After 2026 | 108.6 | |
Total lease payments | 228.8 | |
Less: Interest | 29.7 | |
Present value of lease liabilities | $ 199.1 | $ 187.7 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Terms and Discount Rates (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Weighted-average remaining lease term - operating leases | 11 years 5 months 4 days | 10 years 7 months 17 days |
Weighted-average remaining lease term - finance leases | 9 years 2 months 23 days | 8 years 9 months 21 days |
Weighted-average discount rate - operating leases | 2.63% | 3.02% |
Weighted-average discount rate - finance leases | 2.79% | 3.08% |
Leases - Cash Flow Classificati
Leases - Cash Flow Classifications (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ 33.5 | $ 34.4 |
Operating cash flows for finance leases | 0.8 | 0.8 |
Financing cash flows for finance leases | 5.3 | 4.1 |
Leased assets obtained in exchange for new finance lease liabilities | 4.6 | 7 |
Leased assets obtained in exchange for new operating lease liabilities | $ 48.8 | $ 84.5 |
Indebtedness - Borrowings Outst
Indebtedness - Borrowings Outstanding (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 19, 2020 | Mar. 07, 2016 | Dec. 02, 2014 | Nov. 08, 2013 |
Debt Instrument [Line Items] | ||||||
Senior notes | $ 2,913,500,000 | $ 2,924,900,000 | $ 2,300,000,000 | |||
Other financing | 25,800,000 | 57,400,000 | ||||
Unamortized premium (discount), net | (4,800,000) | (300,000) | ||||
Deferred financing fees | (14,000,000) | (17,100,000) | ||||
Total borrowings outstanding | 3,520,500,000 | 3,564,900,000 | ||||
Current indebtedness | (603,800,000) | (37,300,000) | ||||
Total long-term debt, less current portion | 2,916,700,000 | 3,527,600,000 | ||||
2019 Euro-Denominated Term Loan due August 15, 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Term loans | 600,000,000 | 600,000,000 | ||||
Deferred financing fees | $ (1,400,000) | |||||
5.105% Senior note due July 28, 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 5.105% | |||||
Senior notes | $ 153,500,000 | 164,900,000 | ||||
4.00% Unsecured Senior Notes due November 15, 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 4.00% | 4.00% | ||||
Senior notes | $ 215,600,000 | 215,600,000 | ||||
3.9% senior note due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 3.90% | 3.90% | ||||
Senior notes | $ 700,000,000 | 700,000,000 | ||||
4.375% senior note due March 15, 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 4.375% | 4.375% | ||||
Senior notes | $ 700,000,000 | 700,000,000 | ||||
3.9% Senior Notes due June 15, 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 3.90% | |||||
Senior notes | $ 750,000,000 | 750,000,000 | ||||
5.30% Unsecured Senior Notes due November 15, 2043 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 5.30% | 5.30% | ||||
Senior notes | $ 90,500,000 | 90,500,000 | ||||
4.9% Senior Loan due 2044 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 4.90% | 4.90% | ||||
Senior notes | $ 303,900,000 | $ 303,900,000 | ||||
3.150% Senior Notes due June 15, 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 3.15% | 3.15% |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Details) | Jun. 07, 2021USD ($) | Dec. 08, 2020USD ($) | Jul. 06, 2020USD ($) | Jun. 19, 2020USD ($) | Sep. 29, 2016USD ($) | Mar. 15, 2016USD ($) | Mar. 30, 2015USD ($) | Mar. 30, 2015EUR (€) | Jul. 02, 2022 | Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 17, 2020USD ($)promissoryNote | Aug. 15, 2019USD ($) | Mar. 08, 2018USD ($) | Mar. 07, 2016USD ($) | Mar. 30, 2015EUR (€) | Dec. 02, 2014USD ($) | Nov. 08, 2013USD ($) |
Debt Instrument [Line Items] | ||||||||||||||||||||||
Loss on extinguishment of debt | $ 0 | $ 20,000,000 | $ 200,000 | |||||||||||||||||||
Debt Instrument, Fee Amount | $ 14,000,000 | 14,000,000 | 17,100,000 | |||||||||||||||||||
Extinguishment of debt | $ 500,000,000 | |||||||||||||||||||||
Senior notes | 2,913,500,000 | 2,913,500,000 | 2,924,900,000 | $ 2,300,000,000 | ||||||||||||||||||
Line of credit facility, fair value of amount outstanding | 0 | 0 | 0 | |||||||||||||||||||
2018 Revolver | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, face amount | $ 1,000,000,000 | |||||||||||||||||||||
Borrowings on line of credit | 0 | 0 | 0 | |||||||||||||||||||
2019 Euro-Denominated Term Loan due August 15, 2022 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, face amount | $ 600,000,000 | |||||||||||||||||||||
Loss on extinguishment of debt | $ (200,000) | |||||||||||||||||||||
Loans payable | $ 600,000,000 | $ 600,000,000 | 600,000,000 | |||||||||||||||||||
Maximum leverage ratio | 575.00% | 375.00% | ||||||||||||||||||||
Debt Instrument, Fee Amount | $ 1,400,000 | $ 1,400,000 | ||||||||||||||||||||
2019 Euro-Denominated Term Loan due August 15, 2022 | Forecast | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maximum leverage ratio | 375.00% | |||||||||||||||||||||
Maximum leverage ratio, subject to consummation of qualifying acquisitions | 4 | |||||||||||||||||||||
3.150% Senior Notes due June 15, 2030 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||||||||||||||||
Interest rate, stated percentage | 3.15% | 3.15% | 3.15% | |||||||||||||||||||
Net proceeds from issuance of debt | $ 737,100,000 | |||||||||||||||||||||
3.9% Senior Notes due June 15, 2030 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Interest rate, stated percentage | 3.90% | 3.90% | ||||||||||||||||||||
Senior notes | $ 750,000,000 | $ 750,000,000 | 750,000,000 | |||||||||||||||||||
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% | ||||||||||||||||||||
Extinguishment of debt | $ 280,400,000 | $ 219,600,000 | ||||||||||||||||||||
3.5% Senior note due 2021 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||||||||||||||
Interest rate, stated percentage | 3.50% | 3.50% | ||||||||||||||||||||
Extinguishment of debt | $ 309,600,000 | $ 190,400,000 | ||||||||||||||||||||
3.500% Senior Notes due March 15, 2021 and December 15, 2021 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Loss on extinguishment of debt | $ (20,000,000) | |||||||||||||||||||||
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% | 4.375% | |||||||||||||||||||
Senior notes | $ 700,000,000 | $ 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 | |||||||||||||||||||||
3.9% senior note due 2024 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, face amount | $ 700,000,000 | |||||||||||||||||||||
Interest rate, stated percentage | 3.90% | 3.90% | 3.90% | |||||||||||||||||||
Senior notes | $ 700,000,000 | $ 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% | 4.90% | |||||||||||||||||||
Extinguishment of debt | 96,100,000 | |||||||||||||||||||||
Senior notes | $ 303,900,000 | $ 303,900,000 | 303,900,000 | |||||||||||||||||||
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% | 4.00% | |||||||||||||||||||
Extinguishment of debt | 584,400,000 | |||||||||||||||||||||
Senior notes | $ 215,600,000 | $ 215,600,000 | 215,600,000 | |||||||||||||||||||
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% | 5.30% | |||||||||||||||||||
Extinguishment of debt | $ 309,500,000 | |||||||||||||||||||||
Senior notes | $ 90,500,000 | $ 90,500,000 | $ 90,500,000 | |||||||||||||||||||
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] | ||||||||||||||||||||||
Extinguishment of debt | $ 5,800,000 | |||||||||||||||||||||
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 | ||||||||||||||||||||||
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 |
Indebtedness - Future Maturitie
Indebtedness - Future Maturities (Details) $ in Millions | Dec. 31, 2021USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2022 | $ 604.9 |
2023 | 373.3 |
2024 | 704.2 |
2025 | 4.2 |
2026 | 704.2 |
Thereafter | $ 1,148.5 |
Earnings Per Share And Shareh_3
Earnings Per Share And Shareholder's Equity - Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Numerator: | ||||
Net income (loss) | $ (68.9) | $ (162.6) | $ 146.1 | |
Denominator: | ||||
Weighted average share outstanding for basis EPS (in shares) | 133.6 | 136.1 | 136 | |
Dilutive effect of share-based awards (in shares) | [1] | 0 | 1.1 | 0.5 |
Diluted (in shares) | 133.6 | 137.2 | 136.5 | |
Antidilutive share-based awards excluded from computation of diluted EPS (in shares) | 0 | 0 | 1.5 | |
[1] | In the period of a loss from continuing operations, 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Dividends paid (in millions) | $ 129.6 | $ 123.9 | $ 112.4 |
Dividends paid (per share) | $ 0.96 | $ 0.90 | $ 0.82 |
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 | 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 | ||||
Payments for repurchase of equity | $ 164,200,000 | ||||
Common Stock | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Repurchases of ordinary shares, shares | 3.4 | 0 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available to be granted | 2,900,000 | ||
Unrecognized share-based compensation expense | $ 46.8 | ||
Unrecognized share-based compensation expense, period of recognition | 1 year 3 months 18 days | ||
RTSR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested, total fair value | $ 0.5 | $ 1.5 | $ 0 |
Granted, weighted average grant date fair value (in dollars per share) | $ 41.20 | $ 67.72 | $ 55.61 |
Service-based Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested, total fair value | $ 47.2 | $ 25.9 | $ 25.6 |
Granted, weighted average grant date fair value (in dollars per share) | $ 41.36 | $ 54.68 | $ 47.48 |
Performance-based Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested, total fair value | $ 14.2 | $ 12.7 | $ 8 |
Granted, weighted average grant date fair value (in dollars per share) | $ 41.04 | $ 55.08 | $ 47.54 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Share-based compensation | $ 57 | $ 53.3 | $ 46.7 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Options | |||
Options outstanding, number of options (in shares) | 1,344 | 1,464 | |
Forfeited or expired (in shares) | (96) | (120) | |
Options outstanding, number of options (in shares) | 1,248 | 1,344 | 1,464 |
Options exercisable (in shares) | 1,248 | ||
Options expected to vest (in shares) | 0 | ||
Weighted-Average Exercise Price Per Share | |||
Beginning options outstanding, weighted average exercise price (in dollars per share) | $ 93.61 | $ 92.33 | |
Forfeited or expired (in dollars per share) | 91.10 | 78.21 | |
Ending options outstanding, weighted average exercise price (in dollars per share) | 93.80 | $ 93.61 | $ 92.33 |
Options exercisable (in dollars per share) | 93.80 | ||
Options expected to vest (in dollars per share) | $ 0 | ||
Weighted- Average Remaining Term in Years | 4 years 4 months 24 days | 5 years 2 months 12 days | |
Weighted- Average Remaining Term in Years, Options exercisable | 4 years 4 months 24 days | ||
Weighted- Average Remaining Term in Years, Options expected to vest | 0 years | ||
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 | $ 500,000 |
Options granted, weighted-average grant date fair value (in USD per share) | $ 0 | $ 0 | $ 0 |
Share-Based Compensation Plan_5
Share-Based Compensation Plans - Restricted Stock Unit Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Service-based Restricted Share Units | |||
Number of Non-vested Service- Based Share Units | |||
Beginning balance (in shares) | 1,620 | 1,211 | |
Granted (in shares) | 1,197 | 823 | |
Vested (in shares) | (782) | (372) | |
Forfeited (in shares) | (101) | (42) | |
Ending balance (in shares) | 1,934 | 1,620 | 1,211 |
Weighted- Average Grant Date Fair Value Per Share | |||
Beginning balance (in dollars per share) | $ 55.82 | $ 60.96 | |
Granted (in dollars per share) | 41.36 | 54.68 | $ 47.48 |
Vested (in dollars per share) | 60.43 | 69.64 | |
Forfeited (in dollars per share) | 46.32 | 59.82 | |
Ending balance (in dollars per share) | $ 45.52 | $ 55.82 | $ 60.96 |
Weighted- Average Remaining Term in Years | 9 months 18 days | 1 year | |
Aggregate Intrinsic Value | $ 75.2 | $ 72.5 | |
Performance-based Restricted Share Units | |||
Number of Non-vested Service- Based Share Units | |||
Beginning balance (in shares) | 751 | 653 | |
Granted (in shares) | 381 | 291 | |
Vested (in shares) | (188) | (184) | |
Forfeited (in shares) | (26) | (9) | |
Ending balance (in shares) | 918 | 751 | 653 |
Weighted- Average Grant Date Fair Value Per Share | |||
Beginning balance (in dollars per share) | $ 57.13 | $ 61.44 | |
Granted (in dollars per share) | 41.04 | 55.08 | $ 47.54 |
Vested (in dollars per share) | 75.58 | 68.89 | |
Forfeited (in dollars per share) | 47.74 | 70.60 | |
Ending balance (in dollars per share) | $ 47.10 | $ 57.13 | $ 61.44 |
Weighted- Average Remaining Term in Years | 1 year 2 months 12 days | 1 year 4 months 24 days | |
Aggregate Intrinsic Value | $ 35.7 | $ 33.6 |
Share-Based Compensation Plan_6
Share-Based Compensation Plans - RTSR fair value assumptions (Details) - RTSR | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 2.30% | 1.60% | 1.60% |
Volatility, as a percent | 44.00% | 40.40% | 40.20% |
Risk-free interest rate | 0.30% | 0.60% | 1.90% |
Expected life in years | 2 years 9 months 18 days | 2 years 9 months 18 days | 2 years 4 months 24 days |
Share-Based Compensation Plan_7
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Number of Non-vested Performance- Based Share Units | ||||
Beginning balance (in shares) | 176 | 142 | ||
Granted (in shares) | 69 | 58 | ||
Vested (in shares) | (9) | (24) | ||
Ending balance (in shares) | 236 | 176 | 142 | |
Weighted-Average Grant Date Fair Value Per Share | ||||
Nonvested shares outstanding (in shares) | $ 53.85 | $ 65.04 | $ 63.02 | |
Granted (in dollars per share) | 41.20 | 67.72 | $ 55.61 | |
Vested (in dollars per share) | $ 52.52 | $ 62.73 | ||
Weighted- Average Remaining Term in Years | [1] | 1 year 2 months 12 days | 1 year 6 months | |
Aggregate Intrinsic Value | $ 9.2 | $ 7.9 | ||
Fair value of shares vested in period | $ 0.5 | $ 1.5 | $ 0 | |
[1] | * Midpoint used in calculation. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance | $ 5,655.1 | $ 5,803.8 | $ 5,668 |
OCI before reclassifications | (357.4) | 217.6 | |
Amounts reclassified from AOCI | (2.1) | 38 | |
Other comprehensive income (loss), net of tax | (359.5) | 255.6 | 54.8 |
Balance | 5,151.7 | 5,655.1 | 5,803.8 |
Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance | 395 | 139.4 | 84.6 |
Other comprehensive income (loss), net of tax | (359.5) | 255.6 | 54.8 |
Balance | 35.5 | 395 | 139.4 |
Fair Value of Derivative Financial Instruments, net of tax | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance | (0.7) | 12.7 | |
OCI before reclassifications | (24.9) | (12.2) | |
Amounts reclassified from AOCI | 3.6 | (1.2) | |
Other comprehensive income (loss), net of tax | (21.3) | (13.4) | |
Balance | (22) | (0.7) | 12.7 |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance | 407.3 | 132.9 | |
OCI before reclassifications | (339.9) | 228 | |
Amounts reclassified from AOCI | 0 | 46.4 | |
Other comprehensive income (loss), net of tax | (339.9) | 274.4 | |
Balance | 67.4 | 407.3 | 132.9 |
Post-Retirement and Pension Liability Adjustments, net of tax | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
Balance | (11.6) | (6.2) | |
OCI before reclassifications | 7.4 | 1.8 | |
Amounts reclassified from AOCI | (5.7) | (7.2) | |
Other comprehensive income (loss), net of tax | 1.7 | (5.4) | |
Balance | $ (9.9) | $ (11.6) | $ (6.2) |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pre-tax income: | |||
Ireland | $ 341.9 | $ (179.9) | $ (204) |
United States | (35.3) | 91.5 | (368.4) |
Other foreign | (47.9) | 94.3 | 720.4 |
Income from continuing operations before income taxes | 258.7 | 5.9 | 148 |
Current provision (benefit) for income taxes: | |||
Ireland | 303.6 | 0.1 | (0.5) |
United States | 14.9 | 4.5 | 24.8 |
Other foreign | 81.3 | 34.9 | 8.3 |
Subtotal | 399.8 | 39.5 | 32.6 |
Deferred provision (benefit) for income taxes: | |||
Ireland | 0.4 | (0.1) | 0 |
United States | 3.3 | (64.2) | (24.1) |
Other foreign | (13.9) | (13.5) | (19.2) |
Subtotal | (10.2) | (77.8) | (43.3) |
Total provision for income taxes | $ 389.6 | $ (38.3) | $ (10.7) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Provision at statutory rate | 12.50% | 12.50% | 12.50% |
Foreign rate differential | 1.50% | (952.90%) | 6.90% |
State income taxes, net of federal benefit | 0.20% | 139.70% | 1.50% |
Provision to return | 0.40% | 144.30% | 1.00% |
Tax credits | (19.60%) | (229.30%) | (3.90%) |
Change in tax law | 1.50% | 46.50% | (1.20%) |
Change in valuation allowance | 17.10% | (1331.70%) | (29.20%) |
Change in unrecognized taxes | 116.50% | 437.30% | (8.50%) |
Permanent differences | 1.60% | 1624.80% | 16.50% |
Legal entity restructuring | 18.60% | (561.90%) | 0.00% |
Taxes on unremitted earnings | 0.20% | (0.10%) | 0.30% |
Other | 0.10% | 15.00% | (3.10%) |
Effective income tax rate | 150.60% | (655.80%) | (7.20%) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) € in Millions | Jan. 20, 2022USD ($) | Oct. 05, 2021USD ($) | Oct. 05, 2021EUR (€) | Sep. 29, 2021EUR (€) | Jan. 13, 2021USD ($) | Dec. 19, 2020USD ($) | May 15, 2020USD ($) | Aug. 15, 2017USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2020USD ($) | Jul. 09, 2021EUR (€) | Dec. 29, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 22, 2019USD ($) | Apr. 26, 2019USD ($) | Nov. 29, 2018EUR (€) |
Operating Loss Carryforwards [Line Items] | |||||||||||||||||||||
Undistributed foreign earnings | $ 42,500,000 | ||||||||||||||||||||
Undistributed foreign earnings of subsidiaries | 500,000 | ||||||||||||||||||||
Outside basis difference in foreign business held for sale | 20,100,000 | ||||||||||||||||||||
Undistributed earnings of foreign subsidiaries indefinitely reinvested | 9,200,000 | ||||||||||||||||||||
Undistributed earnings of foreign subsidiaries | 1,200,000 | ||||||||||||||||||||
Increase (decrease) in valuation allowance | (35,900,000) | ||||||||||||||||||||
Release deferred tax assets | 51,500,000 | ||||||||||||||||||||
Unrecognized tax benefits liability, interest and penalties accrued | 105,100,000 | $ 108,900,000 | $ 108,900,000 | $ 98,100,000 | |||||||||||||||||
Unrecognized tax benefits that would impact effective tax rate | 240,100,000 | 250,200,000 | 250,200,000 | $ 204,600,000 | |||||||||||||||||
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 | ||||||||||||||||||||
Royalty conceded on all omeprazole sales as a percent of refund claims (percent) | 5.24% | ||||||||||||||||||||
IRS Notice of Proposed Audit Adjustment from 2013, 2014 and 2015 | $ 141,600,000 | ||||||||||||||||||||
IRS Notice of Proposed Audit Adjustment for ANDA from 2013, 2014, and 2015 | $ 21,900,000 | ||||||||||||||||||||
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 | ||||||||||||||||||||
IRS notice of proposed audit adjustment, increase to gross sales revenue | $ 99,500,000 | ||||||||||||||||||||
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 | ||||||||||||||||||||
Unrecognized tax benefits, period decrease | 38,300,000 | ||||||||||||||||||||
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 | ||||||||||||||||||||
Irish Revenue | |||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||||||
Irish revenue, potential reduction in tax assessment | € | € 660 | ||||||||||||||||||||
Expire Through Tax Year 2040 | |||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||||||
Tax credit carryforwards | 43,600,000 | ||||||||||||||||||||
Net operating loss carryforwards | 367,200,000 | ||||||||||||||||||||
No Expiration | |||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||||||
State tax credit carryforwards | 9,000,000 | ||||||||||||||||||||
U.S. interest carryforward | 28,100,000 | ||||||||||||||||||||
No Expiration | U.S. Federal and Non-U.S. | |||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||||||
Net operating loss carryforwards | 1,200,000,000 | ||||||||||||||||||||
Tax Year 2021 | |||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||||||
Income tax examination, estimate of additional tax | 7,000,000 | ||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||||||
Blended interest rate proposed | 4.36% | ||||||||||||||||||||
Blended interest rate in RAR | 2.57% | ||||||||||||||||||||
Stated blended interest rate on debt | 6.80% | ||||||||||||||||||||
Income tax examination, estimated increase to tax expense from audit adjustment to fiscal years 2014 and 2015, excluding interest and penalties | $ 72,900,000 | ||||||||||||||||||||
Income tax examination, estimate of additional tax | 58,500,000 | ||||||||||||||||||||
Subsequent Event | Tax Years 2013-2015 | |||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||||||
Income tax examination, estimate of additional tax | $ 18,000,000 | ||||||||||||||||||||
Minimum | |||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||||||
Income tax examination, estimate of additional tax | 24,000,000 | ||||||||||||||||||||
Maximum | |||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||||||
Income tax examination, estimate of additional tax | $ 112,000,000 | ||||||||||||||||||||
Irish Revenue | |||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||||||
Notice of unsettled assessed audit liability, amount | € | € 1,643 | ||||||||||||||||||||
Unsettled audit assessment from income tax examination | € | € 1,636 | ||||||||||||||||||||
Settlement amount | € | € 297 | ||||||||||||||||||||
Taxes paid | $ 307,500,000 | € 266.1 | |||||||||||||||||||
Israel Tax Authority | |||||||||||||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||||||||||||
Unsettled audit assessment from income tax examination | $ 63,800,000 | ||||||||||||||||||||
Required payment from ITA | 19,000,000 | ||||||||||||||||||||
Offset of refunds, amount | 17,200,000 | ||||||||||||||||||||
Decrease in tax liability due to payment | $ 12,500,000 |
Income Taxes - Net Deferred Inc
Income Taxes - Net Deferred Income Tax Asset (Liability) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax asset (liability): | ||||
Depreciation and amortization | $ (320.5) | $ (393.7) | ||
Right of use assets | (42.5) | (44.3) | ||
Unremitted earnings | 19.6 | (42) | ||
Inventory basis differences | 29.4 | 27.7 | ||
Accrued liabilities | 38.3 | 81.4 | ||
Lease obligations | 43.2 | 45.3 | ||
Share-based compensation | 27.5 | 24.5 | ||
Federal benefit of unrecognized tax positions | 21.7 | 23.5 | ||
Loss and credit carryforwards | 341.7 | 390.1 | ||
R&D credit carryforwards | 39.4 | 48.4 | ||
Interest carryforwards | 6.9 | 17.9 | ||
Other, net | 13.2 | 0.9 | ||
Subtotal | 217.9 | 179.7 | ||
Valuation allowance | (450.7) | (414.8) | $ (501.3) | $ (557.9) |
Net deferred income tax liability | (232.8) | (235.1) | ||
Assets | 6.5 | 44.2 | ||
Liabilities | $ (239.3) | (279.3) | ||
Noncurrent assets | 3.6 | |||
Noncurrent liabilities | $ 3.1 |
Income Taxes - Change in Valuat
Income Taxes - Change in Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Change in assessment | $ 39.1 | $ (50.3) | $ (8.3) |
Deferred Tax Valuation Allowance [Roll Forward] | |||
Balance at beginning of period | 414.8 | 501.3 | 557.9 |
Change in assessment | 39.1 | (50.3) | (8.3) |
Current year operations, foreign currency and other | (3.2) | (36.2) | (48.3) |
Balance at end of period | 450.7 | $ 414.8 | $ 501.3 |
Release deferred tax assets | 51.5 | ||
Latin America Businesses | |||
Operating Loss Carryforwards [Line Items] | |||
Change in assessment | 40 | ||
Deferred Tax Valuation Allowance [Roll Forward] | |||
Change in assessment | $ 40 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits, beginning balance | $ 396 | $ 350.5 |
Positions related to the current year | 11.4 | 18.2 |
Positions related to prior years | 339 | 28.9 |
Lapse of statutes of limitation | (11.9) | (2.2) |
Decrease in prior year positions | (41.9) | (1) |
Cumulative translation adjustment | (1.3) | (1.6) |
Unrecognized tax benefits, ending balance | 347.2 | $ 396 |
Settlements with taxing authorities | $ (344.1) |
Post Employment Plans - Additio
Post Employment Plans - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)year | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Expected future benefit payments, year one through five | $ 14.1 | ||
Estimated future employer contributions in next fiscal year | $ 3.2 | ||
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% | ||
Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial gain (loss) | $ 1.4 | $ 3.2 | $ 0.3 |
Expected future benefit payments, year one through five | $ 0.9 | ||
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] | |||
Net actuarial gain (loss) | $ (0.1) | $ (0.9) | $ (0.8) |
Expected return on assets, percent | 1.55% | 1.76% | 2.54% |
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 | $ 38.4 | $ 37.3 | |
Deferred compensation liability, non-current | $ 31.6 | $ 34.2 |
Post Employment Plans - Contrib
Post Employment Plans - Contributions to the plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |||
Defined contribution plans cost | $ 28 | $ 27.3 | $ 26.6 |
Post Employment Plans - Project
Post Employment Plans - Projected Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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 at beginning of period | 189.1 | ||
Settlements | 0 | ||
Fair value of plan assets at end of period | 181.7 | $ 189.1 | |
Pension plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of period | 214.3 | 186.9 | |
Service costs | 3.9 | 2.7 | $ 2.5 |
Interest cost | 2.6 | 2.8 | 3.8 |
Actuarial loss (gain) | 6.1 | 7 | |
Contributions paid | 0.3 | 0.2 | |
Benefits paid | (2) | (2.3) | |
Settlements | (7.9) | 0 | |
Foreign currency translation | (14.7) | 17 | |
Projected benefit obligation at end of period | 202.6 | 214.3 | 186.9 |
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 189.1 | 165.4 | |
Actual return on plan assets | 12.6 | 8.3 | |
Benefits paid | (2) | (2.3) | |
Settlements | (7.9) | 0 | |
Employer contributions | 2.7 | 2.3 | |
Contributions paid | 0.3 | 0.2 | |
Foreign currency translation | (13.1) | 15.2 | |
Fair value of plan assets at end of period | 181.7 | 189.1 | 165.4 |
Unfunded status | (20.9) | (25.2) | |
Pension plan | Other non-current assets | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Unfunded status | 21.2 | 17.9 | |
Pension plan | Current assets held for sale | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Unfunded status | 0.4 | 0 | |
Pension plan | Other non-current liabilities | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Unfunded status | (39.1) | (43.1) | |
Pension plan | Current liabilities held for sale | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Unfunded status | (3.4) | 0 | |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of period | 3.5 | 3.7 | |
Service costs | 0 | 0 | 0.6 |
Interest cost | 0.1 | 0.1 | 0.2 |
Actuarial loss (gain) | (0.5) | (0.2) | |
Contributions paid | 0 | 0 | |
Benefits paid | (0.1) | (0.1) | |
Settlements | 0 | ||
Foreign currency translation | 0 | 0 | |
Projected benefit obligation at end of period | 3 | 3.5 | 3.7 |
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 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) | (3.5) | |
Other Postretirement Benefits Plan | Other non-current assets | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Unfunded status | 0 | 0 | |
Other Postretirement Benefits Plan | Current assets held for sale | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Unfunded status | 0 | 0 | |
Other Postretirement Benefits Plan | Other non-current liabilities | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Unfunded status | 0 | 0 | |
Other Postretirement Benefits Plan | Current liabilities held for sale | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Unfunded status | $ 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, 2021 | Dec. 31, 2020 |
Postemployment Benefits [Abstract] | ||
Unfunded accumulated projected benefit obligation | $ 194.9 | $ 207.5 |
Accumulated benefit obligation | 104.7 | 107.4 |
Fair value of plan assets | 70 | 71.1 |
Projected benefit obligation | 112.5 | 114.2 |
Fair value of plan assets | $ 70 | $ 71.1 |
Post Employment Plans - Schedul
Post Employment Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
AOCI pension and other postretirement benefit plans | $ 9.9 | $ 11.6 | $ 6.2 |
Other Postretirement Benefits Plan | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
AOCI pension and other postretirement benefit plans | $ 0.6 | $ 0.2 | $ 2.6 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Postemployment Benefits [Abstract] | |||
AOCI pension and other postretirement benefit plans | $ 9.9 | $ 11.6 | $ 6.2 |
Post Employment Plans - Expecte
Post Employment Plans - Expected Future Minimum Benefit Payment (Details) $ in Millions | Dec. 31, 2021USD ($) |
Pension plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 2.3 |
2023 | 2.2 |
2024 | 2.9 |
2025 | 3.1 |
2026 | 3.6 |
Thereafter | 28.5 |
Other Postretirement Benefits Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 0.1 |
2023 | 0.2 |
2024 | 0.2 |
2025 | 0.2 |
2026 | 0.2 |
Thereafter | $ 1 |
Post Employment Plans - Net per
Post Employment Plans - Net periodic pension cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service costs | $ 3.9 | $ 2.7 | $ 2.5 |
Interest cost | 2.6 | 2.8 | 3.8 |
Expected return on assets | (5.5) | (4.9) | (4.9) |
Settlement | 1.1 | 0 | 0.9 |
Curtailment | 0 | 0 | (2.5) |
Net actuarial loss/(gain) | 0.1 | 0.9 | 0.8 |
Net periodic pension cost/(gain) | 2.2 | 1.5 | 0.6 |
Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service costs | 0 | 0 | 0.6 |
Interest cost | 0.1 | 0.1 | 0.2 |
Expected return on assets | 0 | 0 | 0 |
Settlement | 0 | 0 | 0 |
Curtailment | 0 | 0 | 0 |
Net actuarial loss/(gain) | (1.4) | (3.2) | (0.3) |
Net periodic pension cost/(gain) | $ (1.3) | $ (3.1) | $ 0.5 |
Post Employment Plans - Weighte
Post Employment Plans - Weighted Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 1.18% | 0.95% | 1.06% |
Decrease in the discount rate attributable to the reduction in bond yields across the Euro zone | 23.00% | ||
Inflation | 2.10% | 1.33% | 1.18% |
Expected return on assets | 1.55% | 1.76% | 2.54% |
Interest crediting rates | 0.34% | 0.59% | 0.83% |
Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 2.14% | 3.14% | 4.25% |
Post Employment Plans - Expec_2
Post Employment Plans - Expected Long-term Rate of Return (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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 | 1.50% | ||
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 | 1.40% | ||
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 | 1.55% | 1.76% | 2.54% |
Post Employment Plans - Target
Post Employment Plans - Target Asset Allocation Ranges (Details) | Dec. 31, 2021 |
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 | 10.00% |
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 | 20.00% |
Post Employment Plans - Fair Va
Post Employment Plans - Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 181.7 | $ 189.1 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1.1 | 1.2 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 117.3 | 123.7 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 63.3 | 64.2 | $ 56.1 |
Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 41.3 | 42.8 | |
Equities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0.1 | 0 | |
Equities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 41.2 | 42.8 | |
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 | 43.5 | 44.2 | |
Bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1 | 1.2 | |
Bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 42.5 | 43 | |
Bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Absolute return fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 23.7 | 30.8 | |
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 | 23.7 | 30.8 | |
Absolute return fund | 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 | 63.3 | 64.2 | |
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 | 63.3 | 64.2 | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 9.9 | 7.1 | |
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 | 9.9 | 7.1 | |
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, 2021 | Dec. 31, 2020 | |
Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | $ 189.1 | |
Fair value of plan assets at end of period | 181.7 | $ 189.1 |
Level 3 | ||
Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of period | 64.2 | 56.1 |
Actual return on plan assets | 1.9 | 1.9 |
Purchases, sales and settlements, net | 1.1 | 1.2 |
Foreign exchange | (3.9) | 5 |
Fair value of plan assets at end of period | $ 63.3 | $ 64.2 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Future lease maturities | $ 199.1 | $ 187.7 | |
Lease cost | 44.5 | $ 41.7 | $ 41 |
Purchase obligation | $ 865.6 |
Commitments and Contingencies_2
Commitments and Contingencies - Price Fixing Lawsuits (Details) | Sep. 26, 2020retailer | Jan. 16, 2019defendantgenericPrescriptionPharmaceutical | Dec. 31, 2021classcomplaint | Oct. 08, 2021healthPlanindividualmanufacturer | Aug. 30, 2021pharmaceuticalCompany | Apr. 03, 2021manufacturer | Dec. 15, 2020brandpharmaceuticalCompanymanufacturer | Dec. 14, 2020manufacturer | Dec. 11, 2020manufacturer | Sep. 04, 2020manufacturer | Aug. 27, 2020manufacturer | Jul. 14, 2020casemanufacturerbrand | Jul. 09, 2020pharmaceuticalCompany | Jun. 10, 2020employeepharmaceuticalProductretailermanufacturerplaintiffGroup | Jun. 09, 2020manufacturer | May 31, 2020healthPlanindividualmanufacturer | Mar. 01, 2020defendant | Dec. 27, 2019defendant | Dec. 23, 2019defendant | Dec. 16, 2019defendant | Dec. 11, 2019defendant | Nov. 14, 2019class | Jul. 18, 2019individualmanufacturerhealthPlan | Apr. 30, 2019genericPrescriptionPharmaceuticalpharmaceuticalProductmanufacturer | Dec. 21, 2018manufacturergenericPrescriptionPharmaceutical | Aug. 03, 2018genericPrescriptionPharmaceuticalmanufacturer | Jan. 22, 2018manufacturergenericPrescriptionPharmaceuticalsupermarket | Jun. 21, 2017genericPrescriptionPharmaceuticalindividualclass |
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of classes | class | 3 | 3 | 3 | |||||||||||||||||||||||||
Number of complaints | complaint | 2 | |||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | genericPrescriptionPharmaceutical | 6 | |||||||||||||||||||||||||||
Number of individuals | individual | 11 | |||||||||||||||||||||||||||
Price-fixing Lawsuit, Westchester County, NY | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of Other Pharmaceutical Companies | pharmaceuticalCompany | 45 | |||||||||||||||||||||||||||
Price-fixing Lawsuit, Pennsylvania State Court | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of manufacturers | 46 | |||||||||||||||||||||||||||
Number of health plans | healthPlan | 20 | |||||||||||||||||||||||||||
Number of individuals | individual | 24 | |||||||||||||||||||||||||||
State Attorney General Complaint | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of manufacturers | 35 | |||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | pharmaceuticalProduct | 80 | |||||||||||||||||||||||||||
Number of additional states and territories | plaintiffGroup | 50 | |||||||||||||||||||||||||||
Loss Contingency, Number of Former Employees | retailer | 1 | |||||||||||||||||||||||||||
Number of current employees | employee | 1 | |||||||||||||||||||||||||||
Acetaminophen Litigation | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Loss Contingency, Number of Retailers | retailer | 10 | |||||||||||||||||||||||||||
Canadian Class Action Complaint | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of manufacturers | 29 | |||||||||||||||||||||||||||
States' May 2019 Case Alleging Conspiracy (which does not Name Perrigo a Defendant) | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of products included in expedited cases | brand | 120 | |||||||||||||||||||||||||||
Number of manufacturers | 35 | |||||||||||||||||||||||||||
Overarching Conspiracy Class Actions | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of manufacturers | 27 | |||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | genericPrescriptionPharmaceutical | 135 | |||||||||||||||||||||||||||
Number of formulations of products manufactured by the Company | genericPrescriptionPharmaceutical | 2 | |||||||||||||||||||||||||||
Number of drugs | pharmaceuticalProduct | 1 | |||||||||||||||||||||||||||
Number of Cases Included in Expedited Schedule | case | 0 | |||||||||||||||||||||||||||
Price-fixing Lawsuit, Health Plans | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of manufacturers | 53 | |||||||||||||||||||||||||||
Number of health plans | healthPlan | 7 | 87 | ||||||||||||||||||||||||||
Number of dozens of manufacturers | 3 | |||||||||||||||||||||||||||
Number of individuals | individual | 17 | 17 | ||||||||||||||||||||||||||
Price-fixing Lawsuit, Health Insurance Carrier | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of manufacturers | 25 | |||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | genericPrescriptionPharmaceutical | 30 | |||||||||||||||||||||||||||
Number of defendants | defendant | 30 | |||||||||||||||||||||||||||
Price-fixing Lawsuit, Drugstore Chain | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of manufacturers | 45 | 45 | ||||||||||||||||||||||||||
Number of drugs | brand | 63 | |||||||||||||||||||||||||||
Number of Other Pharmaceutical Companies | pharmaceuticalCompany | 39 | |||||||||||||||||||||||||||
Price-Fixing Lawsuit, Suffolk County of New York | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of manufacturers | 35 | |||||||||||||||||||||||||||
Price-Fixing Lawsuit, Drug Wholesaler and Distributor | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of manufacturers | 39 | |||||||||||||||||||||||||||
Price-Fixing Lawsuit, Supermarket Chains | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of manufacturers | 45 | 35 | ||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | genericPrescriptionPharmaceutical | 31 | |||||||||||||||||||||||||||
Number of supermarket chains | supermarket | 3 | |||||||||||||||||||||||||||
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, Supermarket Chains, Amended Complaint | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of manufacturers | 39 | |||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | genericPrescriptionPharmaceutical | 33 | |||||||||||||||||||||||||||
Price-fixing Lawsuit, Managed Care Organization | ||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||||||
Number of manufacturers | 27 | |||||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | genericPrescriptionPharmaceutical | 17 | |||||||||||||||||||||||||||
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, 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 |
Commitments and Contingencies_3
Commitments and Contingencies - Securities Litigation (Details) $ in Millions, ₪ in Billions | May 31, 2019individual | Jun. 28, 2017ILS (₪)individualcasegenericPrescriptionPharmaceutical$ / ₪ | Jun. 28, 2017USD ($)individualcasegenericPrescriptionPharmaceutical$ / ₪ | Mar. 30, 2019case | Mar. 31, 2018case | Jun. 29, 2019brand | Sep. 26, 2020case | Dec. 31, 2021caseindividualclassgenericPrescriptionPharmaceuticaldefendantlawsuit | Nov. 14, 2019class | Dec. 31, 2018case | Jul. 31, 2018individual | Jun. 30, 2017case | Jun. 21, 2017genericPrescriptionPharmaceuticalindividualclass |
Loss Contingencies [Line Items] | |||||||||||||
Number of classes | class | 3 | 3 | 3 | ||||||||||
Number of current or former directors and officers | individual | 11 | ||||||||||||
Number of individuals | individual | 11 | ||||||||||||
Number of generic prescription pharmaceuticals | genericPrescriptionPharmaceutical | 6 | ||||||||||||
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 | ||||||||||||
Mason Capital, Pentwater and Similar Cases | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of current or former directors and officers | 11 | ||||||||||||
Number of generic prescription pharmaceuticals | genericPrescriptionPharmaceutical | 6 | ||||||||||||
Number of cases with similar factual allegations | 8 | ||||||||||||
Harel Insurance and TIAA-CREFF Cases | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of current or former directors and officers | individual | 13 | ||||||||||||
Number of individuals | individual | 11 | ||||||||||||
Number of generic prescription pharmaceuticals | genericPrescriptionPharmaceutical | 6 | ||||||||||||
Number of cases with similar factual allegations | 2 | ||||||||||||
Number of defendants added | defendant | 2 | ||||||||||||
Loss Contingency, Number of Defendants Dismissed without Prejudice | individual | 8 | ||||||||||||
Other Cases Related to Events in 2015-2017 | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of cases with similar factual allegations | 1 | ||||||||||||
Number of overlapped cases | 3 | ||||||||||||
Blackrock Global Complaint | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of generic prescription pharmaceuticals | genericPrescriptionPharmaceutical | 6 | ||||||||||||
First Manhattan and Similar Cases | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of generic prescription pharmaceuticals | 6 | ||||||||||||
Israel Elec. Corp. Employees' Educ. Fund v. Perrigo Company plc, et al. | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of current or former directors and officers | individual | 11 | 11 | |||||||||||
Number of generic prescription pharmaceuticals | genericPrescriptionPharmaceutical | 6 | 6 | |||||||||||
Number of cases dismissed | 2 | 2 | |||||||||||
Preliminary class damages | ₪ 2.7 | $ 760 | |||||||||||
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 added | individual | 1 | ||||||||||||
Number of defendants | individual | 3 | ||||||||||||
Carmignac, First Manhattan and Similar Cases | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of cases with similar factual allegations | 7 | ||||||||||||
In Israel (Cases Related to Events in 2015-2017) | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of cases | 3 | ||||||||||||
Number of cases dismissed | 1 | 1 | |||||||||||
Number of cases stayed | brand | 1 | ||||||||||||
In Israel (Cases Related to Irish Tax Events) | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of cases stayed | 2 |
Commitments and Contingencies_4
Commitments and Contingencies - Omega Acquisition (Details) - Aug. 27, 2021 € in Millions, $ in Millions | EUR (€) | USD ($) |
Claim Arising from the Omega Acquisition | Damages Awarded | Judicial Ruling | ||
Loss Contingencies [Line Items] | ||
Gain Contingency, Litigation Settlement Receivable | € 355 | $ 417.6 |
Commitments and Contingencies_5
Commitments and Contingencies - Other Matters (Details) | Oct. 15, 2021lawsuittender | Sep. 30, 2021complaintclaim | Sep. 26, 2020retailerlawsuitclaim | Dec. 31, 2021USD ($)lawsuit | May 31, 2021policyPeriod | Dec. 31, 2017USD ($) |
Loss Contingencies [Line Items] | ||||||
Guarantee on certain obligations | $ 0 | |||||
Estimated Litigation Liability | 96,900,000 | |||||
Loss Contingency, Receivable, Additions | 79,000,000 | |||||
Contingency Loss, Coverage Available to Satisfy Judgements, Number of Policy Periods | policyPeriod | 1 | |||||
Israel Tax Authority | ||||||
Loss Contingencies [Line Items] | ||||||
Payment for Indemnified Tax Liability | 12,500,000 | |||||
Level 3 | ||||||
Loss Contingencies [Line Items] | ||||||
Guarantee on certain obligations | $ 700,000 | |||||
Level 3 | Recurring | ||||||
Loss Contingencies [Line Items] | ||||||
Guarantee on certain obligations | $ 13,800,000 | |||||
Ranitidine Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Number of Master Complaints | complaint | 3 | |||||
Loss Contingency, Number of Master Complaints Naming Company | complaint | 3 | |||||
Number of Appeals of Master Complaints | complaint | 1 | |||||
Number of Appeals of Personal Injury Claims | claim | 2 | |||||
Number of Personal Injury Lawsuits | lawsuit | 305 | |||||
Acetaminophen Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Number of Lawsuits | lawsuit | 1 | |||||
Loss Contingency, Number of Claims for Indemnification or Defense | claim | 16 | |||||
Loss Contingency, Number of Retailers | retailer | 10 | |||||
Talcum Powder Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Number of Lawsuits | lawsuit | 54 | |||||
Number of Tenders Accepted | tender | 1 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 9.1 | $ 19.5 | $ 23.7 |
Additional charges | 16.9 | 3.2 | 25 |
Payments | (19) | (14.2) | (28.9) |
Non-cash adjustments | (0.1) | (0.6) | (0.3) |
Ending balance | 6.9 | 9.1 | 19.5 |
Restructuring charges | 16.9 | 3.2 | 25.9 |
CSCI | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | 6.1 | 1.4 | 12.2 |
Unallocated | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | $ 7.9 | $ 1 | $ 10.1 |
Segment and Geographic Inform_3
Segment and Geographic Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting Information [Line Items] | ||||
Net sales | [1] | $ 4,138.7 | $ 4,088.2 | $ 3,869.9 |
Operating income (loss) | $ 410.4 | $ 265.2 | $ 174.7 | |
Operating income % | 9.90% | 6.50% | 4.50% | |
Total assets | $ 10,425.7 | $ 11,488.4 | $ 11,301.4 | |
Capital expenditures | 136 | 160.2 | 121.4 | |
Property, plant and equipment, net | 864.1 | 864.6 | 774.2 | |
Depreciation/amortization | 296.8 | 287.7 | 297.1 | |
Change in financial assets | 0 | 95.3 | (22.1) | |
CSCA | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | [2] | 2,693.1 | 2,693 | 2,487.7 |
CSCI | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,445.6 | 1,395.2 | 1,382.2 | |
Ireland | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 23.7 | 29.8 | 23.4 | |
Property, plant and equipment, net | 0.1 | 20.3 | ||
United States | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | [1] | 2,565.9 | 2,579 | 2,360.3 |
Property, plant and equipment, net | 674.9 | 636.3 | ||
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | [1],[3] | 1,393 | 1,350.6 | $ 1,335.8 |
Property, plant and equipment, net | [4] | 174.4 | 169.7 | |
All other countries | ||||
Segment Reporting Information [Line Items] | ||||
Property, plant and equipment, net | $ 14.8 | $ 58.6 | ||
Walmart | Net sales | Customer Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 14.00% | 15.20% | 15.50% | |
Operating Segments | CSCA | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 2,693.1 | $ 2,693 | $ 2,487.7 | |
Operating income (loss) | $ 206.5 | $ 465 | $ 406.7 | |
Operating income % | 7.70% | 17.30% | 16.30% | |
Total assets | $ 5,983.8 | $ 4,585.1 | $ 4,087.7 | |
Capital expenditures | 112 | 131.4 | 102.6 | |
Property, plant and equipment, net | 706.9 | 701.1 | 624.3 | |
Depreciation/amortization | 117 | 109.9 | 102.8 | |
Change in financial assets | 0 | 0 | ||
Operating Segments | CSCI | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,445.6 | 1,395.2 | 1,382.2 | |
Operating income (loss) | $ 36.1 | $ 32.3 | $ 19.6 | |
Operating income % | 2.50% | 2.30% | 1.40% | |
Total assets | $ 4,425.8 | $ 4,872.4 | $ 4,682.7 | |
Capital expenditures | 24 | 28.8 | 18.8 | |
Property, plant and equipment, net | 157.2 | 163.5 | 149.9 | |
Depreciation/amortization | 179.8 | 177.8 | 194.3 | |
Change in financial assets | 0 | 0 | ||
Operating Segments | RX Pharmaceuticals | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | |
Operating income (loss) | $ 0 | $ 0 | $ 0 | |
Operating income % | 0.00% | 0.00% | 0.00% | |
Total assets | $ 16.1 | $ 2,030.9 | $ 2,531 | |
Capital expenditures | 0 | 0 | 0 | |
Property, plant and equipment, net | 0 | 0 | 0 | |
Depreciation/amortization | 0 | 0 | 0 | |
Change in financial assets | 0 | 0 | ||
Unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | 0 | 0 | |
Operating income (loss) | $ 167.8 | $ (232.1) | $ (251.6) | |
Operating income % | 0.00% | 0.00% | 0.00% | |
Total assets | $ 0 | $ 0 | $ 0 | |
Capital expenditures | 0 | 0 | 0 | |
Property, plant and equipment, net | 0 | 0 | 0 | |
Depreciation/amortization | $ 0 | 0 | 0 | |
Change in financial assets | $ 95.3 | $ (22.1) | ||
[1] | The net sales by geography is derived from the location of the entity that sells to a third party. | |||
[2] | Includes net sales from our OTC contract manufacturing business. | |||
[3] | Includes Ireland net sales of $23.7 million, $29.8 million, and $23.4 million for the years ended December 31, 2021, December 31, 2020, and December 31, 2019, respectively. | |||
[4] | Includes Ireland Property, plant and equipment, net of $0.1 million and $20.3 million, for the years ended December 31, 2021 and December 31, 2020, respectively. |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Beginning Balance | $ 6.5 | $ 6 | $ 5.8 | |
Net bad debt expenses | [1] | 4 | 2.3 | 2.2 |
Additions (deductions) | [2] | (3.3) | (1.8) | (2) |
Ending Balance | $ 7.2 | $ 6.5 | $ 6 | |
[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 and transfers to held for sale. |