Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | AGN | |
Entity Registrant Name | Allergan plc | |
Entity Central Index Key | 0001578845 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 327,801,905 | |
Warner Chilcott Limited [Member] | ||
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | WARNER CHILCOTT LIMITED | |
Entity Central Index Key | 0001620602 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 788.5 | $ 880.4 |
Marketable securities | 995.2 | 1,026.9 |
Accounts receivable, net | 2,731.2 | 2,868.1 |
Inventories | 943.2 | 846.9 |
Current assets held for sale | 45.7 | 34 |
Prepaid expenses and other current assets | 785.5 | 819.1 |
Total current assets | 6,289.3 | 6,475.4 |
Property, plant and equipment, net | 1,781.1 | 1,787 |
Right of use asset - operating leases | 455.4 | |
Investments and other assets | 1,979.5 | 1,970.6 |
Non current assets held for sale | 897.2 | 882.2 |
Deferred tax assets | 1,032.6 | 1,063.7 |
Product rights and other intangibles | 42,264.6 | 43,695.4 |
Goodwill | 43,336.6 | 45,913.3 |
Total assets | 98,036.3 | 101,787.6 |
Current liabilities: | ||
Accounts payable and accrued expenses | 4,634.4 | 4,787.2 |
Income taxes payable | 126.9 | 72.4 |
Current portion of long-term debt | 3,971.8 | 868.3 |
Current portion of lease liability - operating | 116.1 | |
Total current liabilities | 8,849.2 | 5,727.9 |
Long-term debt | 19,554.1 | 22,929.4 |
Lease liability - operating | 415.2 | |
Other long-term liabilities | 804.4 | 882 |
Other taxes payable | 1,618.2 | 1,615.5 |
Deferred tax liabilities | 5,235.6 | 5,501.8 |
Total liabilities | 36,476.7 | 36,656.6 |
Commitments and contingencies (Refer to Note 20) | ||
Equity: | ||
Ordinary shares; $0.0001 par value per share; 1,000.0 million shares authorized, 327.8 million and 332.6 million shares issued and outstanding, respectively | 0 | 0 |
Additional paid-in capital | 55,742.8 | 56,510 |
Retained earnings | 4,582.8 | 7,258.9 |
Accumulated other comprehensive income | 1,216.4 | 1,345.2 |
Total shareholders’ equity | 61,542 | 65,114.1 |
Noncontrolling interest | 17.6 | 16.9 |
Total equity | 61,559.6 | 65,131 |
Noncontrolling interest | 17.6 | 16.9 |
Total equity | 61,559.6 | 65,131 |
Total liabilities and equity | 98,036.3 | 101,787.6 |
Warner Chilcott Limited [Member] | ||
Current assets: | ||
Cash and cash equivalents | 786.7 | 878.6 |
Marketable securities | 995.2 | 1,026.9 |
Accounts receivable, net | 2,731.2 | 2,868.1 |
Receivables from Parents | 814.1 | 640.9 |
Inventories | 943.2 | 846.9 |
Current assets held for sale | 45.7 | 34 |
Prepaid expenses and other current assets | 780.9 | 818.7 |
Total current assets | 7,097 | 7,114.1 |
Property, plant and equipment, net | 1,781.1 | 1,787 |
Right of use asset - operating leases | 455.4 | |
Investments and other assets | 1,979.5 | 1,970.6 |
Non current assets held for sale | 897.2 | 882.2 |
Deferred tax assets | 1,032.6 | 1,063.7 |
Product rights and other intangibles | 42,264.6 | 43,695.4 |
Goodwill | 43,336.6 | 45,913.3 |
Total assets | 98,844 | 102,426.3 |
Current liabilities: | ||
Accounts payable and accrued expenses | 4,634.3 | 4,787.4 |
Payables to Parents | 3,034.9 | 2,829.2 |
Income taxes payable | 126.9 | 72.4 |
Current portion of long-term debt | 3,971.8 | 868.3 |
Current portion of lease liability - operating | 116.1 | |
Total current liabilities | 11,884 | 8,557.3 |
Long-term debt | 19,554.1 | 22,929.4 |
Lease liability - operating | 415.2 | |
Other long-term liabilities | 804.4 | 882 |
Other taxes payable | 1,612 | 1,615.5 |
Deferred tax liabilities | 5,235.6 | 5,501.8 |
Total liabilities | 39,505.3 | 39,486 |
Commitments and contingencies (Refer to Note 20) | ||
Equity: | ||
Member's capital | 64,752.1 | 65,797.9 |
Retained earnings | (6,647.4) | (4,219.7) |
Accumulated other comprehensive income | 1,216.4 | 1,345.2 |
Total members’ equity | 59,321.1 | 62,923.4 |
Noncontrolling interest | 17.6 | 16.9 |
Total equity | 59,338.7 | 62,940.3 |
Noncontrolling interest | 17.6 | 16.9 |
Total equity | 59,338.7 | 62,940.3 |
Total liabilities and equity | $ 98,844 | $ 102,426.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares issued | 327,800,000 | 332,600,000 |
Ordinary shares, shares outstanding | 327,800,000 | 332,600,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net revenues | $ 3,597.1 | $ 3,672.1 |
Operating expenses: | ||
Cost of sales (excludes amortization and impairment of acquired intangibles including product rights) | 497.8 | 522.8 |
Research and development | 435 | 474.7 |
Selling and marketing | 804 | 800 |
General and administrative | 308.3 | 295.9 |
Amortization | 1,399.4 | 1,697.6 |
Goodwill impairments | 2,467 | |
In-process research and development impairments | 522 | |
Asset sales and impairments, net | (5.2) | 13.1 |
Total operating expenses | 5,906.3 | 4,326.1 |
Operating (loss) | (2,309.2) | (654) |
Interest income | 21.3 | 17.3 |
Interest (expense) | (201.8) | (250.6) |
Other income / (expense), net | 13.8 | (78.8) |
Total other income (expense), net | (166.7) | (312.1) |
Income / (loss) before income taxes and noncontrolling interest | (2,475.9) | (966.1) |
(Benefit) for income taxes | (68.6) | (682.2) |
Net (loss) / income | (2,407.3) | (283.9) |
(Income) attributable to noncontrolling interest | (0.7) | (2.2) |
Net (loss) attributable to shareholders | (2,408) | (286.1) |
Dividends on preferred shares | 46.4 | |
Net (loss) attributable to ordinary shareholders | (2,408) | (332.5) |
(Benefit) for income taxes | (68.6) | (682.2) |
Net (loss) / income | (2,407.3) | (283.9) |
(Income) attributable to noncontrolling interest | (0.7) | (2.2) |
Income / (loss) before income taxes and noncontrolling interest | $ (2,475.9) | $ (966.1) |
(Loss) per share attributable to ordinary shareholders | ||
Net (loss) / income per share - basic | $ (7.25) | $ (0.99) |
Net (loss) / income per share - diluted | $ (7.25) | $ (0.99) |
Weighted average shares outstanding: | ||
Basic | 332 | 334.6 |
Diluted | 332 | 334.6 |
Warner Chilcott Limited [Member] | ||
Net revenues | $ 3,597.1 | $ 3,672.1 |
Operating expenses: | ||
Cost of sales (excludes amortization and impairment of acquired intangibles including product rights) | 497.8 | 522.8 |
Research and development | 435 | 474.7 |
Selling and marketing | 804 | 800 |
General and administrative | 306.1 | 294.1 |
Amortization | 1,399.4 | 1,697.6 |
Goodwill impairments | 2,467 | |
In-process research and development impairments | 522 | |
Asset sales and impairments, net | (5.2) | 13.1 |
Total operating expenses | 5,904.1 | 4,324.3 |
Operating (loss) | (2,307) | (652.2) |
Interest income | 21.3 | 70.3 |
Interest (expense) | (201.8) | (250.6) |
Other income / (expense), net | 13.8 | (78.8) |
Total other income (expense), net | (166.7) | (259.1) |
Income / (loss) before income taxes and noncontrolling interest | (2,473.7) | (911.3) |
(Benefit) for income taxes | (68.7) | (682.2) |
Net (loss) / income | (2,405) | (229.1) |
(Income) attributable to noncontrolling interest | (0.7) | (2.2) |
(Benefit) for income taxes | (68.7) | (682.2) |
Net (loss) / income | (2,405) | (229.1) |
(Income) attributable to noncontrolling interest | (0.7) | (2.2) |
Net (loss) / income attributable to members | (2,405.7) | (231.3) |
Income / (loss) before income taxes and noncontrolling interest | (2,473.7) | (911.3) |
Net (loss) / income attributable to members | $ (2,405.7) | $ (231.3) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net (loss) | $ (2,407.3) | $ (283.9) |
Other comprehensive (loss) / income | ||
Foreign currency translation (losses) / gains | (127.8) | 183.8 |
Unrealized (losses), net of tax | (1) | |
Total other comprehensive (loss) / income, net of tax | (128.8) | 183.8 |
Comprehensive (loss) | (2,536.1) | (100.1) |
Comprehensive (income) attributable to noncontrolling interest | (0.7) | (2.2) |
Comprehensive (loss) attributable to ordinary shareholders | (2,536.8) | (102.3) |
Warner Chilcott Limited [Member] | ||
Net (loss) | (2,405) | (229.1) |
Other comprehensive (loss) / income | ||
Foreign currency translation (losses) / gains | (127.8) | 183.8 |
Unrealized (losses), net of tax | (1) | |
Total other comprehensive (loss) / income, net of tax | (128.8) | 183.8 |
Comprehensive (loss) | (2,533.8) | (45.3) |
Comprehensive (income) attributable to noncontrolling interest | (0.7) | (2.2) |
Comprehensive (loss) attributable to members | $ (2,534.5) | $ (47.5) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows From Operating Activities: | ||
Net (loss) | $ (2,407.3) | $ (283.9) |
Reconciliation to net cash provided by operating activities: | ||
Depreciation | 47.5 | 56.1 |
Amortization | 1,399.4 | 1,697.6 |
Provision for inventory reserve | 18.8 | 14.2 |
Share-based compensation | 52.3 | 72.5 |
Deferred income tax benefit | (229.7) | (1,026.4) |
Goodwill impairments | 2,467 | |
In-process research and development impairments | 522 | |
(Gain) / loss on asset sales and impairments, net | (5.2) | 13.1 |
Non-cash extinguishment of debt | 0.3 | |
Amortization of deferred financing costs | 4.6 | 6.3 |
Non-cash lease expense | 30.1 | |
Contingent consideration adjustments, including accretion | 18.7 | 5.3 |
Other, net | (10.3) | 6.5 |
Changes in assets and liabilities (net of effects of acquisitions): | ||
Decrease / (increase) in accounts receivable, net | 132.4 | 259.1 |
Decrease / (increase) in inventories | (128.3) | (52.7) |
Decrease / (increase) in prepaid expenses and other current assets | 36.2 | (0.6) |
Increase / (decrease) in accounts payable and accrued expenses | (199.8) | (231.6) |
Increase / (decrease) in income and other taxes payable | 60 | 336.6 |
Increase / (decrease) in other assets and liabilities | (52.7) | (13.5) |
Net cash provided by operating activities | 1,234 | 1,458.3 |
Cash Flows From Investing Activities: | ||
Additions to property, plant and equipment | (64.8) | (46.4) |
Additions to product rights and other intangibles | (7.5) | |
Additions to investments | (538.2) | (1,455.9) |
Proceeds from sale of investments and other assets | 569.1 | 4,889.5 |
Proceeds from sales of property, plant and equipment | 17.2 | 11.1 |
Acquisitions of businesses, net of cash acquired | (80.6) | |
Net cash (used in) / provided by investing activities | (104.8) | 2,932.3 |
Cash Flows From Financing Activities: | ||
Proceeds from borrowings of long-term indebtedness, including credit facility | 709 | |
Payments on debt, including finance lease obligations and credit facility | (159.4) | (4,322.1) |
Payments of contingent consideration and other financing | (2) | (9.3) |
Proceeds from stock plans | 9.7 | 35.5 |
Repurchase of ordinary shares | (829.2) | (1,439.6) |
Dividends paid | (246.1) | (319.5) |
Net cash (used in) financing activities | (1,227) | (5,207.7) |
Effect of currency exchange rate changes on cash and cash equivalents | 5.9 | (5.3) |
Net (decrease) in cash and cash equivalents | (91.9) | (822.4) |
Cash and cash equivalents at beginning of period | 880.4 | 1,817.2 |
Cash and cash equivalents at end of period | 788.5 | 994.8 |
Cash paid during the year for: | ||
Income taxes other, net of refunds | 105.4 | 35.7 |
Interest | 252 | 344.4 |
Schedule of Non-Cash Investing and Financing Activities: | ||
Conversion of mandatory convertible preferred shares | 4,929.7 | |
Dividends accrued | 1.4 | 1.4 |
Warner Chilcott Limited [Member] | ||
Cash Flows From Operating Activities: | ||
Net (loss) | (2,405) | (229.1) |
Reconciliation to net cash provided by operating activities: | ||
Depreciation | 47.5 | 56.1 |
Amortization | 1,399.4 | 1,697.6 |
Provision for inventory reserve | 18.8 | 14.2 |
Share-based compensation | 52.3 | 72.5 |
Deferred income tax benefit | (229.7) | (1,026.4) |
Goodwill impairments | 2,467 | |
In-process research and development impairments | 522 | |
(Gain) / loss on asset sales and impairments, net | (5.2) | 13.1 |
Loss on sale of Teva securities, net | 77.7 | |
Non-cash extinguishment of debt | 0.3 | |
Amortization of deferred financing costs | 4.6 | 6.3 |
Non-cash lease expense | 30.1 | |
Contingent consideration adjustments, including accretion | 18.7 | 5.3 |
Other, net | (10.3) | 6.5 |
Changes in assets and liabilities (net of effects of acquisitions): | ||
Decrease / (increase) in accounts receivable, net | 132.4 | 259.1 |
Decrease / (increase) in inventories | (128.3) | (52.7) |
Decrease / (increase) in prepaid expenses and other current assets | 40.4 | 0.1 |
Increase / (decrease) in accounts payable and accrued expenses | (199.5) | (229.1) |
Increase / (decrease) in income and other taxes payable | 60 | 336.6 |
Increase / (decrease) in other assets and liabilities, including receivable / payable with Parents | (79.3) | 64.8 |
Net cash provided by operating activities | 1,214.2 | 1,594.6 |
Cash Flows From Investing Activities: | ||
Additions to property, plant and equipment | (64.8) | (46.4) |
Additions to product rights and other intangibles | (7.5) | |
Additions to investments | (538.2) | (1,455.9) |
Proceeds from sale of investments and other assets | 569.1 | 4,889.5 |
Payments to settle Teva related matters | (466) | |
Proceeds from sales of property, plant and equipment | 17.2 | 11.1 |
Acquisitions of businesses, net of cash acquired | (80.6) | |
Net cash (used in) / provided by investing activities | (104.8) | 2,932.3 |
Cash Flows From Financing Activities: | ||
Proceeds from borrowings of long-term indebtedness, including credit facility | 709 | |
Payments on debt, including finance lease obligations and credit facility | (159.4) | (4,322.1) |
Payments of contingent consideration and other financing | (2) | (9.3) |
Proceeds from forward sale of Teva securities | 372.3 | |
Payments to settle Teva related matters | (234) | |
Dividend to Parent | (1,045.8) | (1,859.5) |
Net cash (used in) financing activities | (1,207.2) | (5,343.6) |
Effect of currency exchange rate changes on cash and cash equivalents | 5.9 | (5.3) |
Net (decrease) in cash and cash equivalents | (91.9) | (822) |
Cash and cash equivalents at beginning of period | 878.6 | 1,816.3 |
Cash and cash equivalents at end of period | $ 786.7 | 994.3 |
Teva [Member] | ||
Reconciliation to net cash provided by operating activities: | ||
Loss on sale of Teva securities, net | 77.7 | |
Cash Flows From Investing Activities: | ||
Payments to settle Teva related matters | (466) | |
Cash Flows From Financing Activities: | ||
Proceeds from forward sale of Teva securities | 372.3 | |
Payments to settle Teva related matters | (234) | |
Teva [Member] | Warner Chilcott Limited [Member] | ||
Reconciliation to net cash provided by operating activities: | ||
Loss on sale of Teva securities, net | 77.7 | |
Cash Flows From Investing Activities: | ||
Payments to settle Teva related matters | (466) | |
Cash Flows From Financing Activities: | ||
Proceeds from forward sale of Teva securities | 372.3 | |
Payments to settle Teva related matters | $ (234) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Ordinary Shares [Member] | Preferred Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings/(Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income / (Loss) [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2017 | $ 73,837.1 | $ 4,929.7 | $ 54,013.5 | $ 12,957.2 | $ 1,920.7 | $ 16 | |
Balance, shares at Dec. 31, 2017 | 330,200,000 | 5,100,000 | |||||
Implementation of new accounting pronouncements at Dec. 31, 2017 | 361.7 | 424.7 | (63) | ||||
Adjusted Balance at Dec. 31, 2017 | 74,198.8 | $ 4,929.7 | 54,013.5 | 13,381.9 | 1,857.7 | 16 | |
Comprehensive (loss): | |||||||
Net (loss) attributable to shareholders | (286.1) | (286.1) | |||||
Other comprehensive income, net of tax | 183.8 | 183.8 | |||||
Share-based compensation | 72.5 | 72.5 | |||||
Ordinary shares issued under employee stock plans | 35.5 | 35.5 | |||||
Ordinary shares issued under employee stock plans, shares | 700,000 | ||||||
Dividends declared | (296.3) | (296.3) | |||||
Conversion of Mandatory Preferred Shares | $ (4,929.7) | 4,929.7 | |||||
Issuance of Mandatory Convertible Preferred Shares, shares | 17,800,000 | (5,100,000) | |||||
Repurchase of ordinary shares under the share repurchase programs | (1,540) | (1,540) | |||||
Repurchase of ordinary shares under the share repurchase programs, shares | (9,600,000) | ||||||
Repurchase of ordinary shares | $ (24.3) | (24.3) | |||||
Repurchase of ordinary shares, shares | (9,600,000) | (100,000) | |||||
Movement in noncontrolling interest | $ 2.1 | 2.1 | |||||
Balance at Mar. 31, 2018 | 72,346 | 57,486.9 | 12,799.5 | 2,041.5 | 18.1 | ||
Balance, shares at Mar. 31, 2018 | 339,000,000 | ||||||
Balance at Dec. 31, 2018 | 65,131 | 56,510 | 7,258.9 | 1,345.2 | 16.9 | ||
Balance, shares at Dec. 31, 2018 | 332,600,000 | ||||||
Implementation of new accounting pronouncements at Dec. 31, 2018 | (22) | (22) | |||||
Adjusted Balance at Dec. 31, 2018 | 65,109 | 56,510 | 7,236.9 | 1,345.2 | 16.9 | ||
Comprehensive (loss): | |||||||
Net (loss) attributable to shareholders | (2,408) | (2,408) | |||||
Other comprehensive income, net of tax | (128.8) | (128.8) | |||||
Share-based compensation | 52.3 | 52.3 | |||||
Ordinary shares issued under employee stock plans | 9.7 | 9.7 | |||||
Ordinary shares issued under employee stock plans, shares | 700,000 | ||||||
Dividends declared | (246.1) | (246.1) | |||||
Repurchase of ordinary shares under the share repurchase programs | (799.7) | (799.7) | |||||
Repurchase of ordinary shares under the share repurchase programs, shares | (5,300,000) | ||||||
Repurchase of ordinary shares | $ (29.5) | (29.5) | |||||
Repurchase of ordinary shares, shares | (5,300,000) | (200,000) | |||||
Movement in noncontrolling interest | $ 0.7 | 0.7 | |||||
Balance at Mar. 31, 2019 | $ 61,559.6 | $ 55,742.8 | $ 4,582.8 | $ 1,216.4 | $ 17.6 | ||
Balance, shares at Mar. 31, 2019 | 327,800,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' and Members' Equity - USD ($) $ in Millions | Total | Retained Earnings/(Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income / (Loss) [Member] | Noncontrolling Interest [Member] | Warner Chilcott Limited [Member] | Warner Chilcott Limited [Member]Member's Capital [Member] | Warner Chilcott Limited [Member]Retained Earnings/(Accumulated Deficit) [Member] | Warner Chilcott Limited [Member]Accumulated Other Comprehensive Income / (Loss) [Member] | Warner Chilcott Limited [Member]Noncontrolling Interest [Member] |
Balance at Dec. 31, 2017 | $ 73,837.1 | $ 12,957.2 | $ 1,920.7 | $ 16 | $ 81,282.2 | $ 72,935.1 | $ 6,410.4 | $ 1,920.7 | $ 16 |
Balance, shares at Dec. 31, 2017 | 100 | ||||||||
Implementation of new accounting pronouncements at Dec. 31, 2017 | 361.7 | 424.7 | (63) | 361.7 | 424.7 | (63) | |||
Adjusted Balance at Dec. 31, 2017 | 74,198.8 | 13,381.9 | 1,857.7 | 16 | 81,643.9 | $ 72,935.1 | 6,835.1 | 1,857.7 | 16 |
Comprehensive (loss): | |||||||||
Net (loss) / income attributable to members | (231.3) | (231.3) | |||||||
Other comprehensive income, net of tax | 183.8 | 183.8 | 183.8 | 183.8 | |||||
Dividends to Parents | (1,859.5) | (1,859.5) | |||||||
Movement in noncontrolling interest | 2.1 | 2.1 | 2.1 | 2.1 | |||||
Balance at Mar. 31, 2018 | 72,346 | 12,799.5 | 2,041.5 | 18.1 | 79,739 | $ 72,935.1 | 4,744.3 | 2,041.5 | 18.1 |
Balance, shares at Mar. 31, 2018 | 100 | ||||||||
Balance at Dec. 31, 2018 | 65,131 | 7,258.9 | 1,345.2 | 16.9 | 62,940.3 | $ 65,797.9 | (4,219.7) | 1,345.2 | 16.9 |
Balance, shares at Dec. 31, 2018 | 100 | ||||||||
Implementation of new accounting pronouncements at Dec. 31, 2018 | (22) | (22) | (22) | (22) | |||||
Adjusted Balance at Dec. 31, 2018 | 65,109 | 7,236.9 | 1,345.2 | 16.9 | 62,918.3 | $ 65,797.9 | (4,241.7) | 1,345.2 | 16.9 |
Comprehensive (loss): | |||||||||
Net (loss) / income attributable to members | (2,405.7) | (2,405.7) | |||||||
Other comprehensive income, net of tax | (128.8) | (128.8) | (128.8) | (128.8) | |||||
Dividends to Parents | (1,045.8) | (1,045.8) | |||||||
Movement in noncontrolling interest | 0.7 | 0.7 | 0.7 | 0.7 | |||||
Balance at Mar. 31, 2019 | $ 61,559.6 | $ 4,582.8 | $ 1,216.4 | $ 17.6 | $ 59,338.7 | $ 64,752.1 | $ (6,647.4) | $ 1,216.4 | $ 17.6 |
Balance, shares at Mar. 31, 2019 | 100 |
General
General | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
General | NOTE 1 — General Allergan plc is a global pharmaceutical leader focused on developing, manufacturing and commercializing branded pharmaceutical, device, biologic, surgical and regenerative medicine products for patients around the world. Allergan markets a portfolio of leading brands and best-in-class products primarily focused on four key therapeutic areas including medical aesthetics, eye care, central nervous system and gastroenterology. The Company has operations in more than 100 countries. Warner Chilcott Limited is an indirect wholly-owned subsidiary of Allergan plc and has the same principal business activities. The accompanying consolidated financial statements should be read in conjunction with the Company’s annual report on Form 10-K for the year ended December 31, 2018 (“Annual Report”). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with United States generally accepted accounting principles (“GAAP”) have been condensed or omitted from the accompanying consolidated financial statements. The accompanying year end consolidated balance sheet was derived from the audited financial statements included in the Annual Report. The accompanying interim financial statements are unaudited and reflect all adjustments which are in the opinion of management necessary for a fair statement of the Company’s consolidated financial position, results of operations, comprehensive (loss) / income and cash flows for the periods presented. Unless otherwise noted, all such adjustments are of a normal, recurring nature. All intercompany transactions and balances have been eliminated in consolidation. The Company’s results of operations, comprehensive (loss) / income and cash flows for the interim periods are not necessarily indicative of the results of operations, comprehensive (loss) / income and cash flows that it may achieve in future periods. References throughout to “we,” “our,” “us,” the “Company” or “Allergan” refer to financial information and transactions of Allergan plc. References to “Warner Chilcott Limited” refer to Warner Chilcott Limited, the Company’s indirect wholly-owned subsidiary, and, unless the context otherwise requires, its subsidiaries. |
Reconciliation of Warner Chilco
Reconciliation of Warner Chilcott Limited Results to Allergan plc Results | 3 Months Ended |
Mar. 31, 2019 | |
Adjusted Earnings Before Interest Taxes Depreciation And Amortization And Other Non Cash Items [Abstract] | |
Reconciliation of Warner Chilcott Limited Results to Allergan plc Results | NOTE 2 — Reconciliation of Warner Chilcott Limited results to Allergan plc results Warner Chilcott Limited is an indirect wholly-owned subsidiary of Allergan plc, the ultimate parent of the group (together with other direct or indirect parents of Warner Chilcott Limited, the “Parents”). The results of Warner Chilcott Limited are consolidated into the results of Allergan plc. Due to the deminimis activity between Warner Chilcott Limited and the Parents (including Allergan plc), content throughout this filing relates to both Allergan plc and Warner Chilcott Limited. Warner Chilcott Limited disclosures relate only to itself and not to any other company. Except where otherwise indicated, and excluding certain insignificant cash and non-cash transactions at the Allergan plc level, these notes relate to the consolidated financial statements for both separate registrants, Allergan plc and Warner Chilcott Limited. In addition to certain inter-company payable and receivable amounts between the entities, the following is a reconciliation of the financial position and results of operations of Warner Chilcott Limited to Allergan plc ($ in millions): As of March 31, 2019 As of December 31, 2018 Allergan plc Warner Chilcott Limited Difference Allergan plc Warner Chilcott Limited Difference Cash and cash equivalents $ 788.5 $ 786.7 $ 1.8 $ 880.4 $ 878.6 $ 1.8 Prepaid expenses and other current assets 785.5 780.9 4.6 819.1 818.7 0.4 Accounts payable and accrued liabilities 4,634.4 4,634.3 0.1 4,787.2 4,787.4 (0.2 ) Other taxes payable 1,618.2 1,612.0 6.2 1,615.5 1,615.5 - Total equity 61,559.6 59,338.7 2,220.9 65,131.0 62,940.3 2,190.7 Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Allergan plc Warner Chilcott Limited Difference Allergan plc Warner Chilcott Limited Difference General and administrative expenses $ 308.3 $ 306.1 $ 2.2 $ 295.9 $ 294.1 $ 1.8 Operating (loss) (2,309.2 ) (2,307.0 ) (2.2 ) (654.0 ) (652.2 ) (1.8 ) Interest income 21.3 21.3 - 17.3 70.3 (53.0 ) (Loss) before income taxes and noncontrolling interest (2,475.9 ) (2,473.7 ) (2.2 ) (966.1 ) (911.3 ) (54.8 ) Net (loss) (2,407.3 ) (2,405.0 ) (2.3 ) (283.9 ) (229.1 ) (54.8 ) Dividends on preferred shares - - - 46.4 - 46.4 Net (loss) attributable to ordinary shareholders/members (2,408.0 ) (2,405.7 ) (2.3 ) (332.5 ) (231.3 ) (101.2 ) The differences between general and administrative expenses in the three months ended March 31, 2019 and 2018 were due to corporate related expenses incurred at Allergan plc. The differences in total equity were due to historical differences in the results of operations of the companies and differences in equity awards. During the three months ended March 31, 2018, the difference in interest income between Allergan plc and Warner Chilcott Limited was due to $5.7 billion and $4.0 billion in Receivables from the Parents and Non-current Receivables from the Parents, respectively. These Receivables were related to intercompany loans between Allergan plc and subsidiaries of Warner Chilcott Limited and caused a difference in interest income between the two entities in the prior year. These Receivables were contributed to the Parents during the year ended December 31, 2018 as an equity contribution and were reclassified from receivables to equity. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 3 — Summary of Significant Accounting Policies The following are interim updates to certain of the policies described in “Note 4” of the notes to the Company’s audited consolidated financial statements for the year ended December 31, 2018 included in the Annual Report. Implementation of New Guidance In February 2016, the Financial Accounting Standards Board (“FASB”) established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. On January 1, 2019, the Company adopted the new standard using the modified retrospective transition approach applied to all leases existing at the effective date of initial application of January 1, 2019. Prior period amounts are not adjusted and continue to be reported in accordance with historical accounting practices and the disclosures under the new standard are not required for dates and periods prior to January 1, 2019. When evaluating whether a contract contains a lease under the new standard, Allergan considers whether (1) the contract explicitly or implicitly identifies assets that are contractually defined and (2) the Company obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company does not have the right to use an identified asset if the supplier has the substantive right to substitute the asset throughout the period without the Company’s approval. The new standard provides a number of optional practical expedients in transition. The Company elected the ‘package of practical expedients’ which permits us not to reassess our prior conclusions about lease identification, lease classification and initial direct costs under the new standard. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter was not applicable to the Company. This standard has a significant impact on our consolidated balance sheet but did not have a significant impact on our consolidated statements of operations. The most significant effects relate to the recognition of ROU assets and lease liabilities on our balance sheet for our real estate and fleet operating leases. Upon adoption, the Company recognized lease liabilities and corresponding ROU assets as follows ($ in millions): ROU Asset Lease Liability Real estate $ 304.2 $ 370.6 Fleet 100.4 100.4 Other 57.5 77.6 Total operating leases $ 462.1 $ 548.6 The cumulative effective adjustment as of the effective date of $22.0 million was recorded to opening retained earnings. The Company has an immaterial amount of finance leases. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the lease recognition exemption for all leases with lease terms of 12 months or less. For leases that qualify under this exception, the Company will not recognize ROU assets or lease liabilities and did not recognize ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company also elected the practical expedient to not separate lease and non-lease components for leases of real estate, fleet, IT and office equipment. Refer to “NOTE 13 – Leases” for further information related to the Company’s leases. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This update allows for the optional reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act (“TCJA”) from accumulated other comprehensive income to retained earnings. The amount of the reclassification is calculated as the difference between the historical and newly enacted tax rates on deferred taxes originally recorded through accumulated other comprehensive income. The Company adopted the standard as of January 1, 2019; however, due to the immaterial amount of the stranded tax effects, the Company elected not to reclassify the income tax effects from accumulated other comprehensive income to retained earnings. Tax effects unrelated to the TCJA are released from accumulated other comprehensive income using either the specific identification approach or the portfolio approach based on the nature of the underlying item. The Company adopted ASU 2016-01, Financial Instruments on January 1, 2018. The new standard required modified retrospective adoption through 2018 beginning Retained Earnings and Accumulated Other Comprehensive Income. This was incorrectly recorded as a loss through Other Comprehensive Income of $63.0 million during the quarter ended March 31, 2018. This was corrected during 2018 and therefore, has no impact on the annual consolidated financial statements. The Company has determined that the adjustment was not material to any previously reported interim period. The Consolidated Statement of Comprehensive (Loss) for the quarter ended March 31, 2018 has been adjusted to correct for this error. Revenue Recognition General ASU No. 2014-09, “Revenue from Contracts with Customers” (“Topic 606”) provides that revenues are recognized when control of the promised goods under a contract is transferred to a customer, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods as specified in the underlying terms with the customer. The Company warrants products against defects and for specific quality standards, permitting the return of products under certain circumstances. Product sales are recorded net of all sales-related deductions including, but not limited to: chargebacks, trade discounts, commercial and government rebates, customer loyalty programs, fee-for-service arrangements with certain distributors, returns, and other allowances which we refer to in the aggregate as sales returns and allowances (“SRA”). The Company’s performance obligations are primarily achieved when control of the products is transferred to the customer. Transfer of control is based on contractual performance obligations, but typically occurs upon receipt of the goods by the customer as that is when the customer has obtained control of significantly all of the economic benefits. Refer to “NOTE 8 – Reportable Segments” for our revenues disaggregated by product and segment and our revenues disaggregated by geography for our international segment. We believe this level of disaggregation best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following table summarizes the activity from operations in the Company’s major categories of SRA ($ in millions): Chargebacks Rebates Returns and Other Allowances Cash Discounts Total Balance at December 31, 2018 $ 61.8 $ 1,908.5 $ 566.6 $ 30.7 $ 2,567.6 Provision related to sales in 2019 267.3 1,396.5 400.5 75.4 2,139.7 Credits and payments (262.9 ) (1,294.5 ) (361.7 ) (78.6 ) (1,997.7 ) Balance at March 31, 2019 $ 66.2 $ 2,010.5 $ 605.4 $ 27.5 $ 2,709.6 Contra accounts receivable at March 31, 2019 $ 66.2 $ 69.4 $ 41.0 $ 27.5 $ 204.1 Accounts payable and accrued expenses at March 31, 2019 $ - $ 1,941.1 $ 564.4 $ - $ 2,505.5 The following table summarizes the balance sheet classification of our SRA reserves ($ in millions): March 31, 2019 December 31, 2018 Contra accounts receivable $ 204.1 $ 207.7 Accounts payable and accrued expenses 2,505.5 2,359.9 Total $ 2,709.6 $ 2,567.6 The SRA provisions recorded to reduce gross product sales to net product sales were as follows ($ in millions): Three Months Ended March 31, 2019 2018 Gross product sales $ 5,659.9 $ 5,616.1 Provisions to reduce gross product sales to net product sales (2,139.7 ) (2,035.1 ) Net product sales $ 3,520.2 $ 3,581.0 Percentage of SRA provisions to gross sales 37.8 % 36.2 % Collectability Assessment At the time of contract inception or customer account set-up, the Company performs a collectability assessment on the creditworthiness of such customer. The Company assesses the probability that the Company will collect the consideration to which it will be entitled in exchange for the goods sold. In evaluating collectability, the Company considers the customer’s ability and intention to pay consideration when it is due. On a recurring basis, the Company estimates the amount of receivables considered uncollectible after sale to the customer to reflect allowances for doubtful accounts. Provision for bad debts, included in general and administrative expenses, were $3.4 million and $10.1 million in the three months ended March 31, 2019 and 2018, respectively. Earnings Per Share (“EPS”) The Company computes EPS in accordance with Accounting Standards Codification (“ASC”) Topic 260, “Earnings Per Share” (“ASC 260”) and related guidance, which requires two calculations of EPS to be disclosed: basic and diluted. Basic EPS is computed by dividing net (loss) by the weighted average ordinary shares outstanding during a period. Diluted EPS is based on the treasury stock method and includes the effect from potential issuance of ordinary shares, such as shares issuable pursuant to the exercise of stock options and restricted stock units. Ordinary share equivalents have been excluded where their inclusion would be anti-dilutive. A reconciliation of the numerators and denominators of basic and diluted EPS follows ($ in millions, except per share amounts): Three Months Ended March 31, 2019 2018 Net (loss): Net (loss) attributable to ordinary shareholders $ (2,408.0 ) $ (332.5 ) Basic weighted average ordinary shares outstanding 332.0 334.6 Basic EPS: Net (loss) per share $ (7.25 ) $ (0.99 ) Dividends per ordinary share $ 0.74 $ 0.72 Diluted weighted average ordinary shares outstanding 332.0 334.6 Diluted EPS: Net (loss) per share $ (7.25 ) $ (0.99 ) Stock awards to purchase 2.4 million ordinary shares for both the three months ended March 31, 2019 and 2018, respectively, were outstanding, but not included in the computation of diluted EPS, because the awards were anti-dilutive. The impact of the 5.3 million shares repurchased in the three months ended March 31, 2019 on basic EPS was 0.7 million weighted average shares. The impact of the 9.6 million shares repurchased in the three months ended March 31, 2018 on basic EPS was 2.0 million weighted average shares. The Company’s preferred shares were mandatorily converted to ordinary shares on March 1, 2018. The weighted average impact of ordinary share equivalents of 11.7 million for the three months ended March 31, 2018, which would result from the mandatory conversion of the Company’s preferred shares at the beginning of the period, were not included in the calculation of diluted EPS as their impact would be anti-dilutive. The weighted average impact of the mandatory conversion of the Company’s preferred shares into ordinary shares was 6.2 million in the three months ended March 31, 2018. Refer to “NOTE 16 –Shareholders’ Equity” for further discussion on the Company’s share repurchase programs. Research and Development Activities Research and development (“R&D”) activities are expensed as incurred and consist of self-funded R&D costs, the costs associated with work performed under collaborative R&D agreements, regulatory fees, and acquisition and license related milestone payments, if any. As of March 31, 2019, we are developing a number of products, some of which utilize novel drug delivery systems, through a combination of internal and collaborative programs including but not limited to the following: Product Therapeutic Area Indication Expected Launch Year Phase Cariprazine Central Nervous System Bipolar Depression 2019 Review Ubrogepant Central Nervous System Acute Migraine 2020 Review Abicipar Eye Care Age Related Macular Degeneration 2020 III Bimatoprost SR Eye Care Glaucoma 2020 III Atogepant Central Nervous System Prophylaxis Migraine 2021 III Presbysol Eye Care Presbyopia 2021 III Cenicriviroc Gastrointestinal NASH 2022 III Relamorelin Gastrointestinal Gastroparesis 2023 III Brimonidine DDS Eye Care Geographic Atrophy 2023 II Abicipar Eye Care Diabetic Macular Edema 2024 II Botox Medical Aesthetics Platysma/Masseter 2025/2023 II Brazikumab Gastrointestinal Crohn's Disease 2025 II Brazikumab Gastrointestinal Ulcerative Colitis 2026 II We also have a number of products in development as part of our life-cycle management strategy for our existing product portfolio. Recent Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40), relating to a customer's accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by a vendor (i.e., a service contract). Under the new guidance, a customer will apply the same criteria for capitalizing implementation costs as it would for an arrangement that has a software license. The new guidance also prescribes the balance sheet, income statement, and cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application is permitted. The Company can choose to adopt the new guidance (1) prospectively to eligible costs incurred on or after the date this guidance is first applied or (2) retrospectively. The Company is evaluating the impact, if any, that this pronouncement will have on our financial position and results of operations. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) – Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The revisions to the disclosure requirements affect only the year-end financial statements of plan sponsors, as there are no changes related to interim financial statements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is permitted. The ASU provisions will be applied on a retrospective basis to all periods presented. This pronouncement only has an impact to disclosure requirements and does not have an impact on our financial position or results of operations. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which removes, adds and modifies certain disclosure requirements for fair value measurements The Company will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the valuation processes of Level 3 fair value measurements. However, the Company will be required to additionally disclose the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements, and the range and weighted average of assumptions used to develop significant unobservable inputs for Level 3 fair value measurements. permitted to early adopt either the entire ASU or only the provisions that eliminate or modify the requirements. |
Acquisitions and Other Agreemen
Acquisitions and Other Agreements | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Other Agreements | NOTE 4 — Acquisitions and Other Agreements 2019 Transactions The following are the significant transactions that were completed or announced in the three months ended March 31, 2019. Envy Medical, Inc. On March 26, 2019, the Company acquired Envy Medical, Inc. (“Envy”), a privately held medical aesthetics company that specializes in non-surgical, non-invasive skin resurfacing systems for an acquisition accounting purchase price of $81.4 million, which includes $67.4 million of product rights and other intangibles, $34.1 million of goodwill and other assets and liabilities. The transaction was treated as a business combination. The acquisition combines Envy’s skin care product portfolio with the Company’s leading medical aesthetics business. |
Assets Held for Sale
Assets Held for Sale | 3 Months Ended |
Mar. 31, 2019 | |
Assets Held For Sale Not Part Of Disposal Group [Abstract] | |
Assets Held for Sale | NOTE 5 — Assets Held for Sale The following represents the assets held for sale ($ in millions): March 31, December 31, 2019 2018 Assets held for sale: Inventories $ 45.7 $ 34.0 Property, plant and equipment, net 32.8 32.8 Product rights and other intangibles 864.4 849.4 Total assets held for sale $ 942.9 $ 916.2 As of March 31, 2019 and December 31, 2018, Allergan concluded that its Anti-Infectives business met the criteria for held for sale based on management’s intent and ability to divest the business within the next twelve months. Assets held for sale also includes miscellaneous properties. |
Other Income _ (Expense)
Other Income / (Expense) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Other Income / (Expense) | NOTE 6 – Other Income / (Expense) Other income / (expense), net consisted of the following ($ in millions): Three Months Ended March 31, 2019 2018 Teva Share Activity $ - $ (77.7 ) Debt extinguishment other (0.3 ) - Other income / (expense), net 14.1 (1.1 ) Other income / (expense), net $ 13.8 $ (78.8 ) Other Income / (Expense), Net Other income / (expense), net includes the mark to market gains of $10.4 million on equity securities held by the Company during the three months ended March 31, 2019. Teva Share Activity During the three months ended March 31, 2018, the Company recorded the following movements in its investment in Teva securities (“Teva Share Activity”) ($ in millions except per share information): Shares Carrying Value per Share Market Price Proceeds Received Value of Marketable Securities Unrealized Gain / (Loss) as a Component of Other Comprehensive Income Gain / (Loss) Recognized in Other Income/ (Expense), Net Derivative Instrument (Liability)/ Asset Retained Earnings Teva securities as of December 31, 2017 95.9 $ 17.60 $ 18.95 n.a. $ 1,817.7 $ 129.3 $ - $ (62.9 ) $ - Impact of ASU No. 2016-01 - - - - - (129.3 ) - - 129.3 Settlement of initial accelerated share repurchase ("ASR") (25.0 ) 18.95 16.53 * 413.3 (473.8 ) - 2.5 62.9 - Forward sale entered into during the three months ended March 31, 2018 ** n.a. n.a. 372.3 n.a. - 19.0 (353.3 ) - Open market sales (11.5 ) n.a. 19.95 229.9 (218.5 ) - 11.5 - - Other fair value movements during the three months ended March 31, 2018 - n.a. n.a. n.a. (110.7 ) - (110.7 ) - - Teva securities as of and for the three months ended March 31, 2018*** 59.4 $ 17.09 $ 17.09 $ 1,015.5 $ 1,014.7 $ - $ (77.7 ) $ (353.3 ) $ 129.3 * Market price represented average price over the life of the contract. On the date of settlement of January 17, 2018, the closing stock price of Teva securities was $21.48. ** On February 13, 2018, the Company entered into a forward sale transaction under which we delivered 25.0 million Teva shares to the transaction counterparty and received proceeds of $372.3 million in exchange for the shares. The forward sale transaction settled during the second quarter of 2018; the final settlement value of the shares was based on the volume weighted average price of the Teva shares plus a premium. As a result of the transaction, and in accordance with ASC Topic 860 - Transfers and Servicing, the marketable securities continued to be reported on the Company's books until the contract settled. The Company recorded the cash proceeds as a secured liability as well as a $19.0 million marked-to-market value of the bifurcated derivative component of the agreement in prepaid expenses and other current assets as of March 31, 2018. ***The Company sold the remaining Teva securities during the second quarter of 2018. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | NOTE 7 — Share-Based Compensation The Company recognizes compensation expense for all share-based compensation awards made to employees and directors based on the fair value of the awards on the date of grant. The Company grants awards with the following features: • Time-based restricted stock and restricted stock unit awards (including, in certain foreign jurisdictions, cash-settled restricted stock unit awards, which are recorded as a liability); • Performance-based restricted stock unit awards measured against performance-based targets defined by the Company, including, but not limited to, total shareholder return metrics and R&D milestones, as defined by the Company; and • Non-qualified options to purchase outstanding shares. The Company recognizes share-based compensation expense for granted awards over the applicable vesting period. Fair Value Assumptions All restricted stock and restricted stock units (whether time-based or performance-based) are granted and expensed using the fair value per share on the applicable grant date, over the applicable vesting period. Non-qualified options to purchase ordinary shares are granted to employees at exercise prices per share equal to the closing market price per share on the date of grant. The fair value of non-qualified options is determined on the applicable grant dates using the Black-Scholes method of valuation and that amount is recognized as an expense over the vesting period. Using the Black-Scholes valuation model, the fair value of options is based on the following assumptions: 2019 Grants 2018 Grants Dividend yield 2.2% 1.5% Expected volatility 23.5% 27.0% Risk-free interest rate 2.6% 2.2 - 2.9% Expected term (years) 7.0 7.0 Share-Based Compensation Expense Share-based compensation expense recognized in the Company’s results of operations for the three months ended March 31, 2019 and 2018 was as follows ($ in millions): Three Months Ended March 31, 2019 2018 Equity-based compensation awards $ 52.3 $ 72.5 Total share-based compensation expense $ 52.3 $ 72.5 Unrecognized future share-based compensation expense was $516.0 million as of March 31, 2019. This amount will be recognized as an expense over a remaining weighted average period of 1.8 years. Share-based compensation is being amortized and charged to operations over the same period as the restrictions are eliminated for the participants, which is generally on a straight-line basis. Share Activity The following is a summary of equity award activity for unvested restricted stock and stock units in the period from December 31, 2018 through March 31, 2019 (in millions, except per share data): Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Grant Date Fair Value Restricted shares / units outstanding at December 31, 2018 2.5 $ 190.27 1.6 $ 472.9 Granted 1.4 139.66 197.8 Vested (0.6 ) 210.69 (123.9 ) Forfeited - 208.11 (8.4 ) Restricted shares / units outstanding at March 31, 2019 3.3 $ 162.75 2.0 $ 538.4 The following is a summary of equity award activity for non-qualified options to purchase ordinary shares in the period from December 31, 2018 through March 31, 2019 (in millions, except per share data): Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding, vested and expected to vest at December 31, 2018 6.3 $ 122.74 4.4 $ 69.0 Granted 0.3 140.16 Exercised (0.2 ) 64.49 Cancelled - 223.68 Outstanding, vested and expected to vest at March 31, 2019 6.4 $ 124.43 4.5 $ 140.4 |
Reportable Segments
Reportable Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments | NOTE 8 — Reportable Segments The Company’s businesses are organized into the following segments: US Specialized Therapeutics, US General Medicine and International. In addition, certain revenues and shared costs, and the results of corporate initiatives, are managed outside of the three segments. The operating segments are organized as follows: • The US Specialized Therapeutics segment includes sales and expenses relating to branded products within the U.S., including Medical Aesthetics, Medical Dermatology through September 20, 2018, Eye Care and Neuroscience and Urology therapeutic products. • The US General Medicine segment includes sales and expenses relating to branded products within the U.S. that do not fall into the US Specialized Therapeutics business units, including Central Nervous System, Gastrointestinal, Women’s Health, Anti-Infectives and Diversified Brands. • The International segment includes sales and expenses relating to products sold outside the U.S. The Company evaluates segment performance based on segment contribution. Segment contribution for our segments represents net revenues less cost of sales (defined below), selling and marketing expenses, and select general and administrative expenses. The Company does not evaluate the following items at the segment level: • Revenues and operating expenses within cost of sales, selling and marketing expenses, and general and administrative expenses that result from the impact of corporate initiatives. Corporate initiatives primarily include integration, restructuring, divestitures, acquisitions, certain milestones and other shared costs. • General and administrative expenses that result from shared infrastructure, including certain expenses located within the United States. • Other select revenues and operating expenses including R&D expenses, amortization, IPR&D impairments, goodwill impairments and asset sales and impairments, net as not all such information has been accounted for at the segment level, or such information has not been used by all segments. • Total assets including capital expenditures. The Company defines segment net revenues as product sales and other revenue derived from our products or licensing agreements. Cost of sales within segment contribution includes standard production and packaging costs for the products we manufacture, third party acquisition costs for products manufactured by others, profit-sharing or royalty payments for products sold pursuant to licensing agreements and finished goods inventory reserve charges. Cost of sales within segment contribution excludes non-standard production costs, such as non-finished goods inventory obsolescence charges, manufacturing variances and excess capacity utilization charges, where applicable. Cost of sales does not include amortization or impairment costs for acquired product rights or other acquired intangibles. Selling and marketing expenses consist mainly of personnel-related costs, product promotion costs, distribution costs, professional service costs, insurance, depreciation and travel costs. General and administrative expenses consist mainly of personnel-related costs, facilities costs, transaction costs, insurance, depreciation, litigation costs and professional services costs which are general in nature and attributable to the segment. Segment net revenues, segment operating expenses and segment contribution information consisted of the following for the three months ended March 31, 2019 and 2018 ($ in millions): Three Months Ended March 31, 2019 US Specialized Therapeutics US General Medicine International Total Net revenues $ 1,542.9 $ 1,249.9 $ 801.5 $ 3,594.3 Operating expenses: Cost of sales (1) 120.1 190.5 109.7 420.3 Selling and marketing 356.8 210.5 237.6 804.9 General and administrative 54.6 43.8 25.7 124.1 Segment contribution $ 1,011.4 $ 805.1 $ 428.5 $ 2,245.0 Contribution margin 65.6 % 64.4 % 53.5 % 62.5 % Corporate (2) 258.0 Research and development 435.0 Amortization 1,399.4 Goodwill impairments 2,467.0 Asset sales and impairments, net (5.2 ) Operating (loss) $ (2,309.2 ) Operating margin (64.2 )% (1) (2) Three Months Ended March 31, 2018 US Specialized Therapeutics US General Medicine International Total Net revenues $ 1,578.6 $ 1,223.7 $ 864.0 $ 3,666.3 Operating expenses: Cost of sales (1) 134.2 182.6 120.9 437.7 Selling and marketing 313.2 225.5 245.7 784.4 General and administrative 50.2 38.9 31.4 120.5 Segment contribution $ 1,081.0 $ 776.7 $ 466.0 $ 2,323.7 Contribution margin 68.5 % 63.5 % 53.9 % 63.4 % Corporate (2) 270.3 Research and development 474.7 Amortization 1,697.6 In-process research and development impairments 522.0 Asset sales and impairments, net 13.1 Operating (loss) $ (654.0 ) Operating margin (17.8 )% (1) (2) The following table presents our net revenue disaggregated by geography for our international segment for the three months ended March 31, 2019 and 2018 ($ in millions): Three Months Ended March 31, 2019 2018 Europe $ 354.4 $ 398.4 Asia Pacific, Middle East and Africa 250.7 240.8 Latin America and Canada 178.2 212.1 Other* 18.2 12.7 Total International $ 801.5 $ 864.0 * Includes royalty and other revenue The following tables present global net revenues for the top products greater than 10% of total revenues of the Company as well as a reconciliation of segment revenues to total net revenues for the three months ended March 31, 2019 and 2018 ($ in millions): Three Months Ended March 31, 2019 US Specialized Therapeutics US General Medicine International Total Botox ® $ 627.1 $ - $ 241.3 $ 868.4 Juvederm ® 129.7 - 157.8 287.5 Restasis ® 231.7 - 10.4 242.1 Linzess ® ® - 161.3 5.5 166.8 Vraylar ® - 143.7 - 143.7 Lumigan ® ® 57.7 - 85.1 142.8 Bystolic ® ® - 128.3 0.4 128.7 Lo Loestrin ® - 125.8 - 125.8 Alphagan ® ® 83.0 - 37.6 120.6 Eye Drops 49.4 - 55.4 104.8 Alloderm ® 95.0 - 1.6 96.6 Ozurdex ® 30.3 - 63.1 93.4 Viibryd ® ® - 85.0 2.1 87.1 Breast Implants 61.2 - 11.2 72.4 Coolsculpting ® 47.8 - 17.8 65.6 Zenpep ® - 63.0 - 63.0 Carafate ® ® - 54.3 0.6 54.9 Armour Thyroid - 50.0 - 50.0 Viberzi ® - 37.2 0.3 37.5 Skin Care 34.7 - 2.7 37.4 Asacol ® ® - 24.7 10.3 35.0 Teflaro ® - 33.5 0.2 33.7 Saphris ® - 31.9 - 31.9 Avycaz ® - 29.7 - 29.7 Coolsculpting ® 15.1 - 10.6 25.7 Namzaric ® - 23.4 - 23.4 Savella ® - 20.7 - 20.7 Liletta ® - 14.8 - 14.8 Canasa ® ® - 10.2 3.6 13.8 Rapaflo ® 11.8 - 0.6 12.4 Dalvance ® - 12.0 - 12.0 Namenda ® - 9.5 - 9.5 Kybella ® ® 7.3 - 1.6 8.9 Aczone ® 1.6 - - 1.6 Other 59.5 190.9 81.7 332.1 Total segment revenues $ 1,542.9 $ 1,249.9 $ 801.5 $ 3,594.3 Corporate revenues 2.8 Total net revenues $ 3,597.1 Three Months Ended March 31, 2018 US Specialized Therapeutics US General Medicine International Total Botox ® $ 572.5 $ - $ 244.8 $ 817.3 Restasis ® 255.8 - 18.3 274.1 Juvederm ® 122.8 - 146.1 268.9 Lumigan ® ® 66.8 - 100.4 167.2 Linzess ® ® - 159.3 5.6 164.9 Bystolic ® ® - 132.8 0.5 133.3 Alphagan ® ® 84.2 - 44.2 128.4 Eye Drops 46.2 - 68.8 115.0 Lo Loestrin ® - 114.6 - 114.6 Breast Implants 60.7 - 44.1 104.8 Alloderm ® 99.5 - 2.2 101.7 Ozurdex ® 25.5 - 64.4 89.9 Vraylar ® - 84.4 - 84.4 Viibryd ® ® - 71.7 1.5 73.2 Coolsculpting ® 53.4 - 8.1 61.5 Carafate ® ® - 56.0 0.7 56.7 Zenpep ® - 52.9 - 52.9 Asacol ® ® - 38.2 11.7 49.9 Armour Thyroid - 48.2 - 48.2 Canasa ® ® - 38.6 4.2 42.8 Namenda ® - 40.6 - 40.6 Viberzi ® - 35.9 0.1 36.0 Skin Care 31.9 - 3.8 35.7 Coolsculpting ® 33.7 - 1.1 34.8 Namzaric ® - 33.4 - 33.4 Saphris ® - 32.7 - 32.7 Teflaro ® - 32.2 - 32.2 Rapaflo ® 22.8 - 1.2 24.0 Avycaz ® - 21.8 - 21.8 Savella ® - 19.9 - 19.9 Aczone ® 16.0 - 0.1 16.1 Dalvance ® - 11.9 - 11.9 Kybella ® ® 8.2 - 1.4 9.6 Liletta ® - 8.1 - 8.1 Other 78.6 190.5 90.7 359.8 Total segment revenues $ 1,578.6 $ 1,223.7 $ 864.0 $ 3,666.3 Corporate revenues 5.8 Total net revenues $ 3,672.1 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 9 — Inventories Inventories consist of finished goods held for sale and distribution, raw materials and work-in-process. Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. The Company writes down inventories to net realizable value based on forecasted demand, market conditions or other factors, which may differ from actual results. Inventories consisted of the following ($ in millions): March 31, December 31, 2019 2018 Raw materials $ 332.9 $ 303.2 Work-in-process 211.8 145.7 Finished goods 523.0 520.2 1,067.7 969.1 Less: inventory reserves 124.5 122.2 Total Inventories $ 943.2 $ 846.9 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 3 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | NOTE 10 — Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following ($ in millions): March 31, December 31, 2019 2018 Accrued expenses: Accrued third-party rebates $ 1,941.1 $ 1,832.1 Accrued returns and other allowances 564.4 527.8 Accrued payroll and related benefits 431.1 694.3 Accrued R&D expenditures 221.7 215.5 Accrued pharmaceutical fees 160.8 145.3 Royalties payable 156.9 155.1 Interest payable 141.2 191.4 Litigation-related reserves and legal fees 137.1 92.0 Accrued non-provision taxes 71.3 68.5 Accrued selling and marketing expenditures 66.6 61.1 Accrued severance, retention and other shutdown costs 36.7 71.6 Current portion of contingent consideration obligations 9.4 8.3 Dividends payable 1.4 1.4 Contractual commitments - 4.3 Other accrued expenses 338.0 368.7 Total accrued expenses $ 4,277.7 $ 4,437.4 Accounts payable 356.7 349.8 Total accounts payable and accrued expenses $ 4,634.4 $ 4,787.2 |
Goodwill, Product Rights and Ot
Goodwill, Product Rights and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill, Product Rights and Other Intangible Assets | NOTE 11 — Goodwill, Product Rights and Other Intangible Assets Goodwill Goodwill for the Company’s reporting segments consisted of the following ($ in millions): US Specialized Therapeutics US General Medicine International Total Balance as of December 31, 2018 $ 20,675.6 $ 17,936.6 $ 7,301.1 $ 45,913.3 Acquisitions 34.1 - - 34.1 Impairments - (2,467.0 ) - (2,467.0 ) Foreign exchange and other adjustments - - (143.8 ) (143.8 ) Balance as of March 31, 2019 $ 20,709.7 $ 15,469.6 $ 7,157.3 $ 43,336.6 As of December 31, 2018, the net asset value of the General Medicine Reporting Unit equaled fair value. On March 6, 2019, Allergan announced negative topline results from three pivotal studies of rapastinel as an adjunctive treatment of Major Depressive Disorder (MDD). These results represented a triggering event for the Company’s General Medicine Reporting Unit. In the three months ended March 31, 2019, primarily as a result of the impairment indicator noted above and a delay in clinical studies and anticipated launch of brazikumab, the Company recorded a $2,467.0 million goodwill impairment charge to its General Medicine Reporting Unit. No impairment indicators were noted for the Company’s other Reporting Units as of March 31, 2019. The fair value of the Company’s General Medicine Reporting Unit and other reporting units includes anticipated product launches in the next three years. Negative events regarding these pipeline assets including, but not limited to, Abicipar, Atogepant, Bimatoprost SR, Cariprazine, and Ubrogepant, as well as other next generation aesthetic products could lead to further goodwill impairment charges. Allergan’s General Medicine Reporting Unit’s asset value equals fair value as of March 31, 2019, while its US Eye Care Reporting Unit has headroom of less than 10%. As of March 31, 2019 and December 31, 2018, the gross balance of goodwill, prior to the consideration of impairments, was $48,662.0 million and $48,771.7 million, respectively. Product Rights and Other Intangible Assets Product rights and other intangible assets consisted of the following ($ in millions): Cost Basis Balance as of December 31, 2018 Additions IPR&D to CMP Transfers Foreign Currency Translation / Other Balance as of March 31, 2019 Intangibles with definite lives: Product rights and other intangibles $ 70,235.1 $ 74.9 $ 75.6 $ (160.0 ) $ 70,225.6 Trade name 690.0 - - - 690.0 Total definite lived intangible assets $ 70,925.1 $ 74.9 $ 75.6 $ (160.0 ) $ 70,915.6 Intangibles with indefinite lives: IPR&D $ 5,048.1 $ - $ (75.6 ) $ - $ 4,972.5 Total indefinite lived intangible assets $ 5,048.1 $ - $ (75.6 ) $ - $ 4,972.5 Total product rights and other intangibles $ 75,973.2 $ 74.9 $ - $ (160.0 ) $ 75,888.1 Accumulated Amortization Balance as of December 31, 2018 Amortization IPR&D to CMP Transfers Foreign Currency Translation / Other Balance as of March 31, 2019 Intangibles with definite lives: Product rights and other intangibles $ (31,985.0 ) $ (1,379.4 ) $ - $ 53.7 $ (33,310.7 ) Trade name (292.8 ) (20.0 ) - - (312.8 ) Total definite lived intangible assets $ (32,277.8 ) $ (1,399.4 ) $ - $ 53.7 $ (33,623.5 ) Total product rights and other intangibles $ (32,277.8 ) $ (1,399.4 ) $ - $ 53.7 $ (33,623.5 ) Net Product Rights and Other Intangibles $ 43,695.4 $ 42,264.6 Three Months Ended March 31, 2018 In the three months ended March 31, 2018, the Company impaired its retinoic acid receptor-related orphan receptor gamma (“RORyt”) IPR&D project obtained as part of the acquisition of Vitae Pharmaceuticals, Inc. by $522.0 million as a result of negative clinical data related to the oral psoriasis indication received in March 2018. Assuming no additions, disposals or adjustments are made to the carrying values and/or useful lives of the intangible assets, annual amortization expense on product rights and other related intangibles as of March 31, 2019 over the remainder of 2019 and each of the next five years is estimated to be as follows ($ in millions): Amortization Expense 2019 remaining $ 4,188.7 2020 $ 5,344.1 2021 $ 4,416.5 2022 $ 4,069.2 2023 $ 3,659.9 2024 $ 2,828.8 The above amortization expense is an estimate. Actual amounts may change from such estimated amounts due to fluctuations in foreign currency exchange rates, additional intangible asset acquisitions, finalization of preliminary fair value estimates, potential impairments, accelerated amortization or other events. Additional amortization may occur as products are approved. In addition, the Company has certain currently marketed products for which operating contribution performance has been below that which was originally assumed in the products’ initial valuations, and certain IPR&D projects which are subject to delays in timing or other events which may negatively impact the asset’s value. The Company, on a quarterly basis, monitors the related intangible assets for these products for potential impairments. It is reasonably possible that impairments may occur in future periods, which may have a material adverse effect on the Company’s results of operations and financial position. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long Term Debt | NOTE 12 — Long-Term Debt Debt consisted of the following ($ in millions): Balance As of Fair Market Value As of Guarantor Issuance Date / Acquisition Date Interest Payments March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Senior Notes: Floating Rate Notes $500.0 million floating rate notes due March 12, 2020 (1) (4) March 4, 2015 Quarterly 500.0 500.0 503.8 501.9 500.0 500.0 503.8 501.9 Fixed Rate Notes $3,500.0 million 3.000% notes due March 12, 2020 (4) March 4, 2015 Semi-annually 2,623.8 2,706.7 2,622.0 2,694.8 $650.0 million 3.375% notes due September 15, 2020 (5) March 17, 2015 Semi-annually 650.0 650.0 653.1 648.7 $750.0 million 4.875% notes due February 15, 2021 (6) July 1, 2014 Semi-annually 450.0 450.0 461.3 459.4 $1,200.0 million 5.000% notes due December 15, 2021 (6) July 1, 2014 Semi-annually 1,200.0 1,200.0 1,247.9 1,234.8 $3,000.0 million 3.450% notes due March 15, 2022 (4) March 4, 2015 Semi-annually 2,878.2 2,940.5 2,896.9 2,891.0 $1,700.0 million 3.250% notes due October 1, 2022 (5) October 2, 2012 Semi-annually 1,700.0 1,700.0 1,699.8 1,652.2 $350.0 million 2.800% notes due March 15, 2023 (5) March 17, 2015 Semi-annually 350.0 350.0 349.0 332.8 $1,200.0 million 3.850% notes due June 15, 2024 (4) June 10, 2014 Semi-annually 1,036.7 1,036.7 1,048.6 1,021.0 $4,000.0 million 3.800% notes due March 15, 2025 (4) March 4, 2015 Semi-annually 3,020.7 3,027.5 3,050.6 2,956.0 $2,500.0 million 4.550% notes due March 15, 2035 (4) March 4, 2015 Semi-annually 1,789.0 1,789.0 1,748.0 1,690.7 $1,000.0 million 4.625% notes due October 1, 2042 (5) October 2, 2012 Semi-annually 456.7 456.7 432.2 412.4 $1,500.0 million 4.850% notes due June 15, 2044 (4) June 10, 2014 Semi-annually 1,079.4 1,079.4 1,070.6 1,019.1 $2,500.0 million 4.750% notes due March 15, 2045 (4) March 4, 2015 Semi-annually 881.0 881.0 867.2 836.6 18,115.5 18,267.5 18,147.2 17,849.5 Euro Denominated Notes €700.0 million floating rate notes due June 1, 2019 (2) (4) May 26, 2017 Quarterly 785.3 802.7 785.5 794.9 €700.0 million floating rate notes due November 15, 2020 (3) (4) November 15, 2018 Quarterly 785.3 802.7 782.6 791.3 €750.0 million 0.500% notes due June 1, 2021 (4) May 26, 2017 Annually 841.4 860.0 844.7 849.7 €500.0 million 1.500% notes due November 15, 2023 (4) November 15, 2018 Annually 560.9 573.4 575.2 572.4 €700.0 million 1.250% notes due June 1, 2024 (4) May 26, 2017 Annually 785.3 802.7 789.2 775.5 €500.0 million 2.625% notes due November 15, 2028 (4) November 15, 2018 Annually 560.9 573.4 593.6 573.4 €550.0 million 2.125% notes due June 1, 2029 (4) May 26, 2017 Annually 617.0 630.7 618.8 594.7 4,936.1 5,045.6 4,989.6 4,951.9 Total Senior Notes Gross 23,551.6 23,813.1 23,640.6 23,303.3 Unamortized premium 58.1 64.3 - - Unamortized discount (61.8 ) (64.5 ) - - Total Senior Notes Net $ 23,547.9 $ 23,812.9 $ 23,640.6 $ 23,303.3 Other Indebtedness Debt Issuance Costs (86.7 ) (92.1 ) Other 64.7 69.3 Total Other Borrowings (22.0 ) (22.8 ) Capital Leases n.a. 7.6 Total Indebtedness $ 23,525.9 $ 23,797.7 (1) (2) (3) (4) (5) (6) Fair market value in the table above is determined in accordance with Fair Value Leveling (defined below) under Level 2 based upon quoted prices for similar items in active markets. Companies are required to use a fair value hierarchy as defined in ASC Topic 820 “Fair Value Measurement,” (“ASC 820”) which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value (“Fair Value Leveling”). There are three levels of inputs used to measure fair value with Level 1 having the highest priority and Level 3 having the lowest: Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity. The Level 3 assets are those whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques with significant unobservable inputs, as well as instruments for which the determination of fair value requires significant judgment or estimation. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants. The following represents the significant activity during the three months ended March 31, 2019 to the Company’s total indebtedness: • The Company repurchased and retired $152.0 million of senior notes at face value for a total of $152.0 million from open market redemptions. As a result of the debt extinguishment, the Company recognized a de minimis net loss of $0.3 million within “other income / (expense), net” for the non-cash write-off of premiums and debt fees related to the repaid notes of $0.3 million. During the three months ended March 31, 2019, the Company redeemed and retired the following senior notes ($ in millions): Three Months Ended March 31, 2019 Tranche Face Value Retired Cash Paid for Retirement Remaining Value at March 31, 2019 3.000% due 2020 $ 82.9 $ 82.9 $ 2,623.8 3.450% due 2022 62.3 62.3 2,878.2 3.800% due 2025 6.8 6.8 3,020.7 Total $ 152.0 $ 152.0 $ 8,522.7 Annual Debt Maturities As of March 31, 2019, annual debt maturities of senior notes gross were as follows ($ in millions): Total Payments 2019 remaining $ 785.3 2020 4,559.1 2021 2,491.4 2022 4,578.2 2023 910.9 2024 1,822.0 2025 and after 8,404.7 Total senior notes gross $ 23,551.6 Amounts represent total anticipated cash payments assuming scheduled repayments. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | NOTE 13 — Leases Leases are accounted for under ASC Topic 842. The Company has entered into various lease contracts, mainly operating leases for the use of real estate, fleet, and operating equipment. The Company leases certain assets to limit exposure to the risks of ownership as well as to reduce administrative burdens inherent in the ownership of assets. Term As of March 31, 2019, the remaining terms for leases other than real estate leases are between 1 and 9 years as of March 31, 2019. For real estate leases, the remaining lease terms are between 1 and 14 years as of March 31, 2019. The Company has an option for certain lease contracts, mainly for real estate lease contracts, to renew the lease term beyond the noncancelable lease period. The payments associated with the renewal will only be included in the measurement of the lease liability and ROU asset if the exercise of the renewal option is determined to be reasonably certain. The Company considers the timing of the renewal period and other economic factors such as the financial consequences of a decision to extend or not to extend a lease in determining if the renewal option is reasonably certain to be exercised. Discount Rate The Company is primarily a lessee, not a lessor. The Company discounts future lease payments to calculate the present value when determining the lease classification and measuring the lease liability. The rate utilized is either the implicit rate or the incremental borrowing rate. The incremental borrowing rate is not a commonly quoted rate and is derived through a combination of inputs including the Company’s credit rating and the impact of full collateralization. The incremental borrowing rate is based on the Company’s collateralized borrowing capabilities over a similar term of the lease payments. The Company utilizes the consolidated group incremental borrowing rate for all leases as the Company has centralized treasury operations. Other The Company does not have any material residual value guarantee terms in its lease contracts. The Company does not have material variable leases. The Company has chosen to separate lease and non-lease components for its plant operations and research and development equipment. The Company allocates the contract consideration to the lease component using the standalone price from our supplier. As of March 31, 2019, the Company had the following operating ROU assets and lease liabilities ($ in millions): March 31, 2019 ROU Asset Lease Liability Real estate $ 295.8 $ 361.0 Fleet 102.7 102.7 Other 56.9 67.6 Total operating leases $ 455.4 $ 531.3 March 31, 2019 Current lease liability - operating $ 116.1 Long-term lease liability - operating 415.2 Total lease liability - operating $ 531.3 Capital leases are not material as of March 31, 2019. For the three months ended March 31, 2019, the Company noted the following lease expense ($ in millions): Three Months Ended March 31, 2019 Operating lease expense* $ 32.3 Sublease (income) (3.4 ) Net operating lease expense $ 28.9 * Includes short-term and variable lease expenses of $0.9 million. As of March 31, 2019, the Company had the following lease commitments ($ in millions): Total Payments 2019 remaining $ 93.1 2020 111.6 2021 86.6 2022 57.0 2023 43.9 2024 37.5 2025 and after 148.1 Total undiscounted cash flows $ 577.8 Future interest (46.5 ) Total lease liability - operating $ 531.3 As of March 31, 2019, the weighted average remaining lease term for operating leases was 7.2 years with a weighted average discount rate of 2.7%. The ROU assets obtained in exchange for operating lease obligations were $23.4 million for the three months ended March 31, 2019. The cash paid for amounts included in the measurement of operating lease liabilities as of March 31, 2019 was $40.8 million. As of December 31, 2018, the Company had operating leases for certain facilities, vehicles and equipment. Total property rental expense for operating leases for the year ended December 31, 2018 was $63.2 million. Total fleet rental expense for operating leases for the year ended December 31, 2018 was $41.1 million. The Company also had de minimis capital leases for certain facilities and equipment. As of December 31, 2018, the future anticipated property lease rental payments under both capital and operating leases that had remaining terms in excess of one year were ($ in millions): Total Payments 2019 $ 62.5 2020 52.5 2021 47.9 2022 43.3 2023 39.0 Thereafter 173.8 Total minimum lease payments $ 419.0 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Long-Term Liabilities | NOTE 14 — Other Long-Term Liabilities Other long-term liabilities consisted of the following ($ in millions): March 31, December 31, 2019 2018 Acquisition related contingent consideration liabilities $ 351.8 $ 336.3 Long-term pension and post retirement liability 170.3 166.5 Legacy Allergan deferred executive compensation 94.5 90.8 Accrued R&D milestone 75.0 75.0 Deferred revenue 33.5 36.1 Product warranties 28.8 27.9 Long-term severance and restructuring liabilities 10.9 14.2 Long-term contractual obligations - 43.2 Other long-term liabilities 39.6 92.0 Total other long-term liabilities $ 804.4 $ 882.0 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 15 — Income Taxes The Company’s effective tax rate for the three months ended March 31, 2019 was 2.8%, compared to 70.6% for the three months ended March 31, 2018. The effective tax rate for the three months ended March 31, 2019 was favorably impacted by a tax benefit of $91.5 million related to excess tax over book basis in a U.S. subsidiary that will reverse in the foreseeable future. The effective tax rate was unfavorably impacted by a goodwill impairment charge of $2,467.0 million, for which no tax benefit was recorded. The effective tax rate for the three months ended March 31, 2018 was favorably impacted by income earned in jurisdictions with tax rates lower than the Irish statutory rate and U.S. losses tax benefited at rates greater than the Irish statutory rate. This was offset by the additional U.S. tax on the earnings of certain non-U.S. subsidiaries which are considered Global Intangible Low Taxed Income (“GILTI”) and the tax impact of amortization of intangible assets at rates less than the Irish statutory rate. Additionally, the tax benefit for the three months ended March 31, 2018 included tax benefits of $421.9 million related to the restructuring of an acquired business, $117.5 million related to the impairment of an IPR&D project obtained as part of the acquisition of Vitae Pharmaceuticals, Inc. Tax Audits The Company conducts business globally and, as a result, files U.S. federal, state and foreign tax returns. The Company strives to resolve open matters with each tax authority at the examination level and could reach agreement with a tax authority at any time. While the Company has accrued for amounts it believes are in accordance with the accounting standard, the final outcome with a tax authority may result in a tax liability that is different than that reflected in the consolidated financial statements. Furthermore, the Company may decide to challenge any assessments, if made, and may exercise its right to appeal. The uncertain tax positions are reviewed quarterly and adjusted as events occur that affect potential liabilities for additional taxes, such as lapsing of applicable statutes of limitations, proposed assessments by tax authorities, negotiations with tax authorities, identification of new issues and issuance of new legislation, regulations or case law. The Company has several concurrent audits open and pending with the IRS as set forth below: IRS Audits Taxable Years Allergan W.C. Holding Inc. f/k/a Actavis W.C. Holding Inc. 2013, 2014, 2015 and 2016 Warner Chilcott Corporation 2010, 2011, 2012 and 2013 Forest Laboratories, Inc. 2010, 2011, 2012, 2013 and 2014 Allergan, Inc. 2009, 2010, 2011, 2012, 2013, 2014 and 3/17/2015 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | NOTE 16 — Shareholders’ Equity Share Repurchase Programs On January 29, 2019, the Company announced that its Board of Directors approved a $2.0 billion share repurchase program, all of which remained outstanding as of March 31, 2019. The Company’s Board of Directors previously approved a $2.0 billion share repurchase program in July 2018. As of March 31, 2019, the Company had completed the program and repurchased 12.5 Preferred Shares In the three months ended March 31, 2018, the Company paid $69.6 million of dividends on preferred shares. Each preferred share automatically converted to approximately 3.53 ordinary shares on March 1, 2018, for a total of 17,876,930 ordinary shares. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | NOTE 17 — Derivative Instruments and Hedging Activities The Company’s revenue, earnings, cash flows and fair value of its assets and liabilities can be impacted by fluctuations in foreign exchange and interest rates, as applicable. The Company manages the impact of foreign exchange risk and interest rate movements through operational means and through the use of various financial instruments, including derivative instruments such as foreign currency derivatives. Internationally, the Company is a net recipient of currencies other than the U.S. dollar and, as such, benefits from a weaker dollar and is adversely affected by a stronger dollar relative to major currencies worldwide. Accordingly, changes in exchange rates, and in particular a strengthening of the U.S. dollar may negatively affect the Company’s consolidated revenues and favorably impact operating expenses in U.S. dollars. Derivatives Not Designated as Hedging Instruments In November 2018, the Company entered into a 700.0 million Euro forward contract to buy Euros while selling USD. The derivative has a maturity of May 31, 2019. The derivative instrument is marked-to-market to the P&L, offsetting the revaluation (P&L) impact on the Euro 700.0 million variable interest debt. As of March 31, 2019, the fair value of the Euro forward contract of $16.6 million was recorded in accounts payable and accrued expenses. As of December 31, 2018, the fair value of the Euro forward contract of $5.9 million was recorded in prepaid expenses and other current assets. For the three months ended March 31, 2019, the Company recorded a loss of $22.5 million relating to this instrument in general and administrative expenses. As of March 31, 2019 and December 31, 2018, the Company had additional outstanding third-party foreign currency forward instruments of $43.4 million and $42.1 million, respectively. For the three months ended March 31, 2019, these additional outstanding third-party foreign currency forward instruments did not have material mark-to-market adjustments. Derivatives Designated as Hedging Instruments Cash Flow Hedge In January 2019, Allergan entered into $500.0 million notional floating to fixed interest rate swaps maturing on March 12, 2020 whereby it fixed the interest rates on $500.0 million floating rate notes due March 12, 2020 to an average interest rate of 3.98%. The swaps are being accounted for using hedge accounting treatment. As of March 31, 2019, the fair value of the interest rate swaps of $1.0 million was recorded in accounts payable and accrued expenses. For the three months ended March 31, 2019, the corresponding unrealized loss of $1.0 million was recorded in accumulated other comprehensive income / (loss). Net Investment Hedge In the normal course of business, we manage certain foreign exchange risks through a variety of strategies, including hedging. Our hedging strategies include the use of derivatives, as well as net investment hedges. For net investment hedges, the effective portion of the gains and losses on the instruments arising from the effects of foreign exchange are recorded in the currency translation adjustment component of accumulated other comprehensive income / (loss), consistent with the underlying hedged item. Hedging transactions are limited to an underlying exposure. As a result, any change in the value of our hedging instruments would be substantially offset by an opposite change in the value of the underlying hedged items. The Company does not use derivative instruments for trading or speculative purposes. The Company is exposed to foreign exchange risk in its international operations from foreign currency purchases, net investments in foreign subsidiaries, and foreign currency assets and liabilities created in the normal course of business, including the Euro Denominated Notes. In the three months ended March 31, 2019, we used effective net investment hedges to partially offset the effects of foreign currency on our investments in certain of our foreign subsidiaries. The total notional amount of our instruments designated as net investment hedges was $5.0 billion as of March 31, 2019 and $5.1 billion as of December 31, 2018. During the three months ended March 31, 2019, the impact of the net investment hedges recorded in other comprehensive loss was a gain of $110.8 million, which primarily offset the currency impact of the Euro Denominated Notes. During the three months ended March 31, 2018, the impact of the net investment hedges on other comprehensive income was a loss of $95.1 million, which offset the currency impact of the Euro Denominated Notes. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 18 — Fair Value Measurement Assets and liabilities that are measured at fair value using Fair Value Leveling or that are disclosed at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 consisted of the following ($ in millions): Fair Value Measurements as of March 31, 2019 Using: Total Level 1 Level 2 Level 3 Assets: Cash equivalents* $ 331.4 $ 83.0 $ 248.4 $ - Short-term investments 995.2 - 995.2 - Deferred executive compensation investments 94.5 78.6 15.9 - Royalty receivable 50.3 - - 50.3 Investments and other 57.9 48.0 9.9 - Total assets $ 1,529.3 $ 209.6 $ 1,269.4 $ 50.3 Liabilities: Deferred executive compensation liabilities $ 94.5 $ 78.6 $ 15.9 $ - Contingent consideration obligations 361.2 - - 361.2 Total liabilities $ 455.7 $ 78.6 $ 15.9 $ 361.2 * Marketable securities with less than 90 days remaining until maturity at the time of acquisition are classified as cash equivalents. Fair Value Measurements as of December 31, 2018 Using: Total Level 1 Level 2 Level 3 Assets: Cash equivalents* $ 207.1 $ 207.1 $ - $ - Short-term investments 1,026.9 - 1,026.9 - Deferred executive compensation investments 90.8 73.8 17.0 - Royalty receivable 50.3 - - 50.3 Investments and other 46.0 38.5 7.5 - Total assets $ 1,421.1 $ 319.4 $ 1,051.4 $ 50.3 Liabilities: Deferred executive compensation liabilities $ 90.8 $ 73.8 $ 17.0 $ - Contingent consideration obligations 344.6 - - 344.6 Total liabilities $ 435.4 $ 73.8 $ 17.0 $ 344.6 * Marketable securities with less than 90 days remaining until maturity at the time of acquisition are classified as cash equivalents. Marketable securities and investments consist of money market securities, U.S. treasury and agency securities. Unrealized gains or losses on marketable securities are recorded in interest income, while unrealized gains or losses on marketable debt securities are recorded in accumulated other comprehensive income. Investments and other include equity and debt securities of publicly traded companies for which market prices are readily available. Unrealized gains or losses on long-term equity investments are recorded in other income / (expense), net. The Company’s marketable securities and other long-term investments are recorded at fair value based on quoted market prices using the specific identification method. These investments are classified as either current or non-current, as appropriate, in the Company’s consolidated balance sheets. The Company may sell certain of its marketable securities prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and maturity management. Contingent Consideration Obligations The fair value measurement of the contingent consideration obligations is determined using Level 3 inputs and is based on a probability-weighted income approach. The measurement is based upon unobservable inputs supported by little or no market activity, and is based on our own assumptions. Changes in the fair value of the contingent consideration obligations, including accretion, are recorded in our consolidated statements of operations as follows ($ in millions): Three Months Ended March 31, Expense / (income) 2019 2018 Cost of sales $ 16.2 $ 3.4 Research and development 2.5 1.9 Total $ 18.7 $ 5.3 The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2019 and 2018 ($ in millions): Balance as of December 31, 2018 Net transfers in to (out of) Level 3 Purchases, settlements, and other net Net accretion and fair value adjustments Balance as of March 31, 2019 Liabilities: Contingent consideration obligations $ 344.6 $ - $ (2.1 ) $ 18.7 $ 361.2 Balance as of December 31, 2017 Net transfers in to (out of) Level 3 Purchases, settlements, and other net Net accretion and fair value adjustments Balance as of March 31, 2018 Liabilities: Contingent consideration obligations $ 476.9 $ - $ (9.3 ) $ 5.3 $ 472.9 During the three months ended March 31, 2019, the activity in contingent consideration obligations by acquisition consisted of the following ($ in millions): Business Acquisition Balance as of December 31, 2018 Fair Value Adjustments and Accretion Payments and Other Balance as of March 31, 2019 Tobira acquisition $ 255.0 $ 2.3 $ - $ 257.3 Medicines 360 acquisition 43.1 13.9 (1.4 ) 55.6 ForSight acquisition 24.1 0.2 0.1 24.4 Forest acquisition 13.6 2.3 (0.5 ) 15.4 AqueSys acquisition 5.4 - - 5.4 Oculeve acquisition 1.7 - - 1.7 Other 1.7 - (0.3 ) 1.4 Total $ 344.6 $ 18.7 $ (2.1 ) $ 361.2 Royalty Receivable The fair value measurement of the royalty receivable is determined using Level 3 inputs and is based on a probability-weighted income approach. The measurement is based upon unobservable inputs supported by little or no market activity, and is based on our own assumptions. There were no material changes noted in the fair value of the royalty receivable for the three months ended March 31, 2019. |
Business Restructuring Charges
Business Restructuring Charges | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Business Restructuring Charges | NOTE 19 — Business Restructuring Charges Restructuring activities for the three months ended March 31, 2019 were as follows ($ in millions): Severance and Retention Other Total Reserve balance at December 31, 2018 $ 71.4 $ 14.4 $ 85.8 Charged to expense Cost of sales 1.1 - 1.1 General and administrative 0.8 0.1 0.9 Total expense 1.9 0.1 2.0 Cash payments (38.1 ) - (38.1 ) Non-cash adjustments (2.1 ) - (2.1 ) Reserve balance at March 31, 2019 $ 33.1 $ 14.5 $ 47.6 During the three months ended March 31, 2018, the Company recognized restructuring charges of $17.9 million including severance and other employee related charges of $14.6 million. The majority of these restructuring severance costs were paid during 2018. |
Commitments & Contingencies
Commitments & Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments & Contingencies | NOTE 20 — The Company and its affiliates are involved in various disputes, governmental and/or regulatory inspections, inquires, investigations and proceedings, and litigation matters that arise from time to time in the ordinary course of business. The process of resolving matters through litigation or other means is inherently uncertain and it is possible that an unfavorable resolution of these matters will adversely affect the Company, its results of operations, financial condition and cash flows. The Company’s general practice is to expense legal fees as services are rendered in connection with legal matters, and to accrue for liabilities when losses are probable and reasonably estimable. The Company evaluates, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that is accrued. As of March 31, 2019, the Company’s consolidated balance sheet includes accrued loss contingencies of approximately $ 75.0 The Company’s legal proceedings range from cases brought by a single plaintiff to mass tort actions and class actions with thousands of putative class members. These legal proceedings, as well as other matters, involve various aspects of our business and a variety of claims (including, but not limited to, qui tam In matters involving the assertion or defense of the Company’s intellectual property, the Company believes it has meritorious claims and intends to vigorously assert or defend the patents or other intellectual property at issue in such litigation. Similarly, in matters where the Company is a defendant, the Company believes it has meritorious defenses and intends to defend itself vigorously. However, the Company can offer no assurances that it will be successful in a litigation or, in the case of patent enforcement matters, that a generic version of the product at issue will not be launched or enjoined. Failing to prevail in a litigation could adversely affect the Company and could have a material adverse effect on the Company’s business, results of operations, financial condition and cash flows. Intellectual Property Litigation Patent Enforcement Matters Combigan ® ® ® Fetzima ® In April 2019, subsidiaries of the Company and Pierre Fabre Medicament S.A.S. brought an action for infringement of the ‘879, ‘598 and ‘937 Patents against Micro Labs Ltd. and Micro Labs USA, Inc. (“Micro”) in connection with Micro’s abbreviated new drug application seeking approval to market a generic version of Fetzima ® Juvéderm ® Kybella ® . On November 9, 2018, a subsidiary of the Company brought an action for infringement of U.S. Patent Nos. 8,101,593 (the “‘593 Patent”), 8,367,649 (the “‘649 Patent”) and 8,653,058 (the “‘058 Patent”) against Slayback Pharma LLC (“Slayback”) in the U.S. District Court for the District of New Jersey in connection with an abbreviated new drug application filed with the FDA by Slayback seeking approval to market a generic version of Kybella® and challenging said patents. The ‘593, ‘649, and ‘058 Patents expire in March 2030. On April 10, 2019, a subsidiary of the Company, together with Los Angeles Biomedical Research Institute at Harbor UCLA-Medical Center (“LA BioMed”) and The Regents of the University of California (the “Regents”) (all collectively, “Plaintiffs”), filed an amended complaint against Slayback asserting infringement of the ‘593, ‘649 and ‘058 Patents and U.S. Patent Nos. 7,622,130 (the “‘130 Patent”), 7,754,230 (the “‘230 Patent”), 8,298,556 (the “‘556 Patent”) and 8,846,066 (the “‘066 Patent”). The ‘130 and ‘230 Patents expire in December 2027 (not including pending applications for patent term extension (“PTE”)), the ‘556 Patent expires in August 2025, and the ‘066 Patent expires in February 2025. No trial date has been set. Latisse ® . In December 2016, Sandoz announced the U.S. market launch of its generic copy of Latisse ® ® Latisse ® . On September 25, 2017, subsidiaries of the Company and Duke University brought an action for infringement of U.S. Patent No. 9,579,270 (the “‘270 Patent”) against Alembic Pharmaceuticals, Ltd., Alembic Global Holding SA, and Alembic Pharmaceuticals, Inc. (collectively, “Alembic”) in the U.S. District Court for the District of New Jersey in connection with an abbreviated new drug application filed with FDA by Alembic, seeking approval to market a generic version of Latisse ® Latisse ® . On September 19, 2018, subsidiaries of the Company and Duke University brought an action for infringement of U.S. Patent No. 9,579,270 (the “‘270 Patent”) against Akorn, Inc. and Hi-Tech Pharmacal Co., Inc. (collectively, “Akorn”) in the U.S. District Court for the District of New Jersey in connection with an abbreviated new drug application filed with FDA by Akorn seeking approval to market a generic version of Latisse® and challenging the ‘270 patent. No trial date has been set. Linzess ® . Beginning in November 2016 subsidiaries of the Company and Ironwood Pharmaceuticals, Inc. (collectively, “Plaintiffs”), brought multiple actions for infringement of some or all of U.S. Patent Nos. 7,304,036 (the “‘036 Patent”); 7,371,727 (the “‘727 Patent”); 7,704,947 (the “‘947 Patent”); 7,745,409 (the “‘409 Patent”); 8,080,526 (the “‘526 Patent”); 8,110,553 (the “‘553 Patent”); 8,748,573 (the “‘573 Patent”); 8,802,628 (the “‘628 Patent”); and 8,933,030 (the “‘030 Patent”) against Teva Pharmaceuticals USA, Inc. (“Teva”), Aurobindo Pharma Ltd. (“Aurobindo”), Mylan Pharmaceuticals Inc. (“Mylan”), Sandoz Inc. (“Sandoz”) and Sun Pharma Global FZE (“Sun”) in the U.S. District Court for the District of Delaware in connection with abbreviated new drug applications respectively filed with the FDA by Teva, Aurobindo, Mylan, Sandoz and Sun, each seeking approval to market generic versions of Linzess ® 145 mcg and 290 mcg capsules and challenging some or all of said patents (“November 2016 Action”). The ‘727, ‘947, ‘409, ‘526 and ‘553 Patents expire in January 2024; the ‘036 Patent expires in August 2026; and the ‘573, ‘628 and ‘030 Patents expire in 2031. In the November 2016 Action, expert discovery has been completed. Trial is scheduled for June 2019. On October 20, 2017, November 30, 2017 and January 20, 2018, Plaintiffs brought actions for infringement of U.S. Patent No. 9,708,371 (the “‘371 Patent”) in the U.S. District Court for the District of Delaware against Teva, Mylan and Sandoz, respectively. The ‘371 Patent expires in 2033. The ‘371 patent actions have been consolidated with the November 2016 Action. On February 2, 2018 and March 29, 2018, Plaintiffs brought actions for infringement of some or all of the ‘036, ‘727, ‘947, ‘409, ‘526, ‘553, ‘030 and ‘371 Patents against Teva and Mylan in the U.S. District Court for the District of Delaware in connection with abbreviated new drug applications respectively filed with the FDA by Teva and Mylan, each seeking approval to market generic versions generic versions of Linzess ® In May and August 2018, the district court granted joint stipulations and orders to dismiss without prejudice all claims, counterclaims, and defenses in the November 2016 Action with respect to the ‘371 Patent and the ‘030 Patent, respectively, as between Plaintiffs, Teva, Mylan and Sandoz. On September 4, 2018, Plaintiffs filed an amended complaint as to Mylan to assert the ‘628 patent against Mylan’s 72 mcg ANDA product. Plaintiffs entered into a settlement agreement with Sun and certain Sun affiliates and the case against Sun was dismissed on January 18, 2018. Plaintiffs entered into a settlement agreement with Aurobindo and the case against Aurobindo was dismissed on May 7, 2018. Plaintiffs entered into a settlement agreement with Mylan and the case against Mylan was dismissed on December 27, 2018. Under the terms of the settlement agreement, Plaintiffs will provide a license to Mylan to market its generic versions of Linzess ® ® Restasis ® . Between August 2015 and July 2016, a subsidiary of the Company brought actions for infringement of U.S. Patent Nos. 8,629,111 (the “‘111 patent”), 8,633,162 (the “‘162 patent”), 8,642,556 (the “‘556 patent”), 8,648,048 (the “‘048 patent”), 8,685,930 (the “‘930 patent”) and 9,248,191 (the “’191 patent”) in the U.S. District Court for the Eastern District of Texas against Akorn, Inc., Apotex, Inc., Mylan Pharmaceuticals, Inc., Teva Pharmaceuticals USA, Inc., InnoPharma, Inc., Famy Care Limited (“Famy Care”), TWi Pharmaceuticals, Inc. (“TWi”) and related subsidiaries and affiliates thereof. The subsidiary entered into settlement agreements with Apotex, TWi, Famy Care and InnoPharma. As a result of certain of these settlements, Allergan will provide a license to certain parties to launch their generic versions of Restasis ® On September 8, 2017, the Company assigned all Orange Book-listed patents for Restasis ® On October 16, 2017, the District Court issued a decision and final judgment finding that the asserted claims of the ‘111 patent, the ‘048 patent, the ‘930 patent and the ‘191 patent were infringed, but invalid on the ground of obviousness. The District Court also held that the asserted claims were not invalid as anticipated, for lack of enablement, or for improper inventorship. On November 13, 2018, the U.S. Court of Appeals for the Federal Circuit issued a decision affirming the district court’s finding of invalidity of the asserted claims of the ‘111, ‘048, ‘930 and ‘191 Patents. On March 6, 2019, the Federal Circuit denied Allergan and the Tribe’s petition for rehearing, and a mandate issued on March 13, 2019. On April 10, 2019, Allergan and the Tribe filed a petition for a writ of certiorari with the United States Supreme Court. On December 22, 2016, a subsidiary of the Company Allergan filed a complaint for infringement of the ’111 patent, ’162 patent, ’556 patent, ’048 patent, ’930 patent, and the ’191 patent in the U.S. District Court for the Eastern District of Texas against Deva Holding A.S. (“Deva”). On March 6, 2018, the district court granted in part and denied in part the parties’ joint motion for entry of a stipulated order, and stayed the case until such time as the Federal Circuit in the lead appeal case with Teva, Mylan and Akron issues a mandate. The parties’ stipulation provides that Deva will be bound by the outcome of that appeal. On August 10 and September 20, 2018, a subsidiary of the Company and the Tribe filed complaints for infringement of the ’162 patent and the ’556 patent in the U.S. District Court for the District of Delaware against Saptalis and against Amneal Pharmaceuticals, LLC and Amneal Pharmaceuticals Co. India Private Limited (collectively, “Amneal”), respectively. The cases were voluntarily dismissed on January 2, 2019. Restasis ® . On June 6, 2016, a subsidiary of the Company received notification letters that Inter Partes Review of the USPTO (“IPR”) petitions were filed by Mylan Pharmaceuticals Inc. (“Mylan”) regarding U.S. Patent Nos. 8,629,111 (the “‘111 patent”), 8,633,162 (the “‘162 patent”), 8,642,556 (the “‘556 patent”), 8,648,048 (the “‘048 patent”), 8,685,930 (the “‘930 patent”), and 9,248,191 (the “‘191 patent”), which patents expire on August 27, 2024. Mylan filed the IPR petition on June 3, 2016. On June 23, 2016, a subsidiary of the Company received a notification letter that an IPR petition and motion for joinder was filed by Argentum Pharmaceuticals LLC (“Argentum”) regarding the ’111 patent. On December 7, 2016, the Company entered into a settlement agreement with Argentum and Argentum’s petition was withdrawn. On December 8, 2016, the USPTO granted Mylan’s petitions to institute IPRs with respect to these patents. On January 6, 2017, each of Akorn and Teva filed, and on January 9, 2017 the USPTO received, IPR petitions with respect to these patents and motions for joinder with the Mylan IPR. The USPTO granted Teva’s and Akorn’s joinder motions on March 31, 2017. On September 8, 2017, Allergan assigned all Orange Book-listed patents for Restasis ® ® On February 23, 2018, the USPTO issued orders denying the Tribe’s motion to dismiss (or terminate). On July 20, 2018, the Federal Circuit affirmed the USPTO’s denial of the Tribe’s motion to dismiss and Allergan’s motion to withdraw. On August 20, 2018, the Tribe and Allergan filed a petition for rehearing en banc, which the Federal Circuit denied on October 22, 2018. On December 21, 2018, the Company and the Tribe filed a petition for a writ of certiorari with the United States Supreme Court, which was denied on April 15, 2019. Saphris ® . Between September 2014 and May 2015, subsidiaries of the Company brought actions for infringement of some or all of U.S. Patent Nos. 5,763,476 (the “‘476 patent”), 7,741,358 (the “‘358 patent”) and 8,022,228 (the “‘228 patent”) against Sigmapharm Laboratories, LLC (“Sigmapharm”), Hikma Pharmaceuticals, LLC (“Hikma”), Breckenridge Pharmaceutical, Inc. (“Breckenridge”), Alembic Pharmaceuticals, Ltd. (“Alembic”) and Amneal Pharmaceuticals, LLC (“Amneal”), and related subsidiaries and affiliates thereof in the U.S. District Court for the District of Delaware in connection with an abbreviated new drug applications respectively filed with FDA by Sigmapharm, Hikma, Breckenridge, Alembic and Amneal, each seeking approval to market a generic versions of Saphris ® On March 14, 2019, the Federal Circuit vacated the district court’s July 2017 judgment that claims 1 and 4 are not invalid and remanded for the district court to consider a fact question and its impact on the obviousness analysis. On April 15, 2019, Plaintiffs filed a combined petition for panel rehearing and rehearing en banc with respect to this issue. In its March 14, 2019 order, the Federal Circuit also vacated the judgment of non-infringement of claims 4, 9 and 10 as to Alembic and Breckenridge and remanded for the district court to consider their infringement under a revised claim construction. A separate bench trial concerning Sigmapharm’s infringement of claim 1 of the ‘476 patent began on June 20, 2018, and on November 16, 2018, the court held that Sigmapharms’ proposed ANDA product would infringe claim 1 of the ‘476 patent On November 26, 2018, Sigmapharm sought relief from the November 16, 2018 decision. On November 30, 2018, the Company moved for entry of final judgment. Both motions are currently pending. Trade Secret Matters Botulinum Neurotoxin ITC Investigation . On January 30, 2019, subsidiaries of the Company and Medytox Inc. (collectively, “Complainants”) filed a complaint with the United States International Trade Commission (“ITC”) against Daewoong Pharmaceuticals Co., Ltd., Daewoong Co., Ltd., and Evolus Inc. (collectively, “Respondents”) requesting the ITC commence an investigation with respect to the Respondents’ importation into the United States of Respondents’ botulinum neurotoxin products, including DWP-450 (also known as Jeuveau TM TM TM Trademark Enforcement Matters Juvéderm ® . On April 5, 2017, a subsidiary of the Company brought an action for unfair competition, false advertising, dilution, conspiracy and infringement of Allergan’s Juvéderm ® ® Subsidiaries of the Company requested a preliminary injunction against Dermavita, Dima Corp, Aesthetic Services, Jacqueline Sillam and Dimitri Sillam in the High Court of Paris, France. During June 2017, the Paris Court preliminarily enjoined the defendants, inter alia, to refrain from promoting or selling in France its Juvederm products, to transfer various domain names and to pay provisional damages to Allergan, on the basis that such use would infringe Allergan’s EU and French Juvéderm ® On January 22, 2019, subsidiaries of the Company brought a related action for infringement of the Company’s Juvéderm ® Furthermore, more than 150 trademark opposition and cancellation actions between Allergan and Dermavita have been filed in front of the USPTO, EUIPO and various other national and regional trademark offices around the world. Most of these actions remain pending; however, Allergan has received favorable decisions in more than ten (10) such actions. Antitrust Litigation Asacol ® . Class action complaints have been filed against certain subsidiaries of the Company on behalf of putative classes of direct and indirect purchasers. The lawsuits have been consolidated in the U.S. District Court for the District of Massachusetts. The complaints allege that plaintiffs paid higher prices for Asacol ® ® ® Loestrin ® . Putative classes of direct and indirect purchasers as well as opt-out direct purchasers have filed complaints that have been consolidated in the U.S. District Court for the District of Rhode Island. The lawsuits allege that subsidiaries of the Company engaged in anticompetitive conduct, including when settling patent lawsuits related to Loestrin ® Namenda ® . In 2014, the State of New York filed a lawsuit in the U.S. District Court for the Southern District of New York alleging that Forest was acting to prevent or delay generic competition to Namenda® in violation of federal and New York antitrust laws and committed other fraudulent acts in connection with its commercial plans for Namenda ® Restasis ® . Shire, which offers the dry-eye disease drug Xiidra ® ® ® Restasis ® . Several class actions were filed on behalf of putative classes of direct and indirect purchasers of Restasis ® ® Commercial Litigation Celexa ® ® . Certain subsidiaries of the Company were named in federal court actions relating to the promotion of Celexa ® ® Warner Chilcott Marketing Practices . A putative nationwide class of private payer entities, or their assignees, that paid Medicare benefits on behalf of their beneficiaries filed a complaint against certain subsidiaries of the Company in the U.S. District Court for the District of Massachusetts. The Complaint asserts claims under the federal RICO statute, state consumer protection statutes, common law fraud, and unjust enrichment with respect to the sale and marketing of certain products. Defendants’ motion to dismiss the Amended Complaint is still pending. Generic Drug Pricing Securities and ERISA Litigation . Putative classes of shareholders and two individual opt-out plaintiffs filed class action lawsuits against the Company and certain of its current and former officers alleging that defendants made materially false and misleading statements between February 2014 and November 2016 regarding the Company’s internal controls over its financial reporting and that it failed to disclose that its former Actavis generics unit had engaged in illegal, anticompetitive price-fixing with its generic industry peers. These lawsuits have been consolidated in the U.S. District Court for the District of New Jersey. The complaints seek unspecified monetary damages. On April 11, 2019, the court heard oral arguments on the Company’s motion to dismiss the complaint. In addition, class action complaints have been filed premised on the same alleged underlying conduct that is at issue in the securities litigation but that assert claims under the Employee Retirement Income Security Act of 1974 (“ERISA”). These complaints have been consolidated in the district court in New Jersey. The court granted the Company’s motion to dismiss this complaint. The ERISA plaintiffs have appealed this decision to the Third Circuit Court of Appeals. Prescription Opioid Drug Abuse Litigation . The Company has been named as a defendant, along with several other manufacturers and distributors of opioid products, in over 1,850 matters relating to the promotion and sale of prescription opioid pain relievers and additional suits have been filed. The lawsuits allege generally that the manufacturer defendants engaged in a deceptive campaign to promote their products in violation of state laws and seek unspecified monetary damages, penalties and injunctive relief. Plaintiffs in these suits include states, political subdivisions of states (i.e., counties and municipalities), Native American tribes and other private litigants such as insurance plans, hospital systems and consumers who were prescribed opioid products and were subsequently treated for an overdose or addiction. Cases are pending in both federal and state courts. The federal court cases have been consolidated in an MDL in the U.S. District Court for the Northern District of Ohio, with a first set of cases set for trial in October 2019. Testosterone Replacement Therapy Class Action . Subsidiaries of the Company were named in a class action complaint filed on behalf a putative class of third-party payers in the U.S. District Court for the Northern District of Illinois. The suit alleges that the Company’s subsidiaries violated various laws including the federal RICO statute and state consumer protection laws in connection with the sale and marketing of Androderm ® Oculeve Shareholder Dispute . On February 26, 2019, Fortis Advisors LLC, as a representative of the former stockholders of Oculeve, Inc., filed a lawsuit against a subsidiary of the Company in state court in Delaware. The lawsuit centers on a claim that the Company breached the terms of a July 2015 merger agreement. The Company subsidiary has moved to dismiss the complaint. Product Liability Litigation Actonel ® . A subsidiary of the Company is a defendant in over 500 filed cases in federal and various state courts, relating to the bisphosphonate prescription drug Actonel ® ® Breast Implant Litigation . Certain Company subsidiaries are defendants in more than a dozen cases alleging that Allergan’s textured breast implants caused women to develop a rare condition known as anaplastic large cell lymphoma (“ALCL”), and that the defendants failed to properly warn against this risk and failed to promptly and properly report the results of the post-marketing studies relating to these products. These cases have been filed in both federal and state courts in the United States and well as provincial courts in Canada. One of the Canadian cases has been asserted on behalf a putative class of consumers. Benicar ® . A subsidiary of the Company has been named in a number of lawsuits involving allegations that Benicar ® Celexa ® ® . Certain Company subsidiaries are defendants in over 150 actions alleging that Celexa® or Lexapro ® RepliForm ® . A Company subsidiary has been named as a defendant in over 300 cases alleging that its biologic mesh product RepliForm ® Testosterone Litigation . A number of product liability suits were filed against certain Company subsidiaries as well as other manufacturers and distributors of testosterone products, for personal injuries including but not limited to cardiovascular events allegedly arising out of the use of Androderm ® Government Investigations, Government Litigation and Qui Tam Litigation The Company and its subsidiaries are involved in various disputes, governmental and/or regulatory inspections, inquires, investigations and proceedings that could result in litigation, and other litigation matters that arise from time to time. Company subsidiaries have received subpoenas and/or Civil Investigative Demands (“CID”) from the United States Department of Justice, the United States Health and Human Services, Office of Inspector General, United States Congressional Committees as well as various state regulatory and enforcement authorities. Each of the subpoenas and CIDs seek documents and information relating to discrete topics, including but not limited to: the calculation and reporting by certain Company subsidiaries of their Average Manufacturer Prices, Average Wholesale Prices and Best Prices for several of their products; sales and marketing practices of Botox to urology practices; the promotion and sale of two gastroenterology products; the Saint Regis Mohawk Tribe’s acquisition of six Restasis patents and the granting of exclusive licenses to the Restasis product to the Company; and, the promotion and sale of opioid products. In each case, the Company and its subsidiaries are cooperating fully with the governmental authority’s requests. Certain states have initiated lawsuits and qui tam lawsuits have been filed by private parties, also known as relators, on behalf of the federal or state governments. Certain Company subsidiaries have been named as defendants in lawsuits that allege generally that state Medicaid agencies were overcharged for their share of Medicaid drug reimbursement costs due to inflated Average Wholesale Prices (“AWP”) reported by the Company subsidiaries. AWP lawsuits are currently pending in Illinois, Utah and Wisconsin. Namenda XR ® ® . A relator filed a qui tam lawsuit on behalf of the United States government and several individual states against the Company and certain of its subsidiaries along with Adamas Pharma LLC and Adamas Pharmaceuticals, Inc. (collectively, “Adamas”). The lawsuit, filed in the U.S. District Court for the Northern District of California, was unsealed on February 6, 2019. The federal and state governments have declined to intervene in this action. The complaint alleges generally that the Adamas and Allergan defendants each engaged in conduct that delayed generic versions of Namenda XR ® ® Medical Aesthetics Qui Tam . A subsidiary of the Company was recently served with a qui tam lawsuit that was filed in the U.S. District Court for the Central District of California on behalf of the United States and several individual states. The federal and state governments have declined to intervene in this action. The complaint alleges that certain promotional programs and sampling practices of the Company’s Medical Aesthetics business result in price reporting violations and violate anti-kickback statutes. The Company subsidiary has not yet responded to this complaint. Matters Relating to the Company’s Divested Generics Business The following matters relate to the former generics business of the Company or the transaction pursuant to which that business was sold to Teva, effective August 2, 2016. Teva has agreed to indemnify and defend the Company against all matters asserted in litigation against the Company arising out of the former generics business, including litigations and investigations relating to generic opioid products including, without limitation, the actions described below. Lidoderm ® . The U.S. Federal Trade Commission filed a lawsuit in federal district court in the Eastern District of Pennsylvania against the Company and one of its former global generics business subsidiaries and others alleging that patent litigation settlements relating to Lidoderm were anticompetitive. The FTC voluntarily withdrew its complaint in Pennsylvania and filed a similar complaint in the U.S. District Court for the Northern District California where similar lawsuits filed by private plaintiffs were already pending and where the State of California filed a similar complaint against the same defendants. Defendants in the Pennsylvania action filed a declaratory judgment action against the FTC in the Pennsylvania federal court but the court granted the FTC’s motion to dismiss this lawsuit. The FTC and State of California’s actions were stayed pending the declaratory judgment action in the Eastern District of Pennsylvania. The federal court in California has not yet issued a ruling or lifted the stay in these cases since the court’s ruling in the Eastern District of Pennsylvania. Hydrocortisone Investigation . In 2016, the Company received notice from the UK Competition and Markets Authority (“CMA”) that it would be included within the scope of the CMA’s formal investigation under Section 25 of the Competition Act of 1998 (“CA98”) into suspected abuse of dominance by a former generics business subsidiary of the Company in relation to the supply of 10mg and 20mg hydrocortisone tablets. The CMA is investigating: (i) alleged excessive and unfair prices with respect to hydrocortisone tablets and (ii) whether the former generics business subsidiary entered into anti-competitive agreements with a potential competitor for this product. The CMA has issued statements of objection with respect to both parts of its investigation. The Company intends to cooperate fully with the investigation. Teva Shareholder Derivative Litigation . In 2017, the Company was named as defendant in a proposed Teva shareholder derivative litigation filed in the Economic Division of the Tel Aviv District Court in Israel. The lawsuit contains allegations that the Company aided and abetted Teva’s board of directors violations of Israeli securities laws. To date, the court has not determined whether it will allow plaintiffs to proceed with this action. |
Warner Chilcott Limited ("WCL")
Warner Chilcott Limited ("WCL") Guarantor and Non-Guarantor Condensed Consolidating Financial Information | 3 Months Ended |
Mar. 31, 2019 | |
Warner Chilcott Acquisition [Member] | |
Warner Chilcott Limited ("WCL") Guarantor and Non-Guarantor Condensed Consolidating Financial Information | NOTE 21 — Warner Chilcott Limited (“WCL”) Guarantor and Non-Guarantor Condensed Consolidating Financial Information The following financial information is presented to segregate the financial results of WCL, Allergan Funding SCS, and Allergan Finance, LLC (the issuers of the long-term notes), the guarantor subsidiaries for the long-term notes and the non-guarantor subsidiaries. The guarantors jointly and severally, and fully and unconditionally, guarantee the Company’s obligation under the long-term notes. The information includes elimination entries necessary to consolidate the guarantor and the non-guarantor subsidiaries. Investments in subsidiaries are accounted for using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries, equity and intercompany balances and transactions. WCL, Allergan Capital S.à.r.l. and Allergan Finance, LLC are guarantors of the long-term notes. The Company anticipates future legal entity structure changes which may impact the presentation of this footnote in the future. WCL has revised its consolidating balance sheets as previously presented in Footnote 26 of the December 31, 2018 Annual Report on Form 10-K and its consolidating financial statements as previously presented in Footnote 20 of the March 31, 2018 Quarterly Report on Form 10-Q due to a change in the Company’s legal entity structure and other reclassifications that occurred during the three months ended March 31, 2019. As a result, prior period information has been recast to conform to the current period presentation. The following financial information presents the consolidating balance sheets as of March 31, 2019 and December 31, 2018, the related statements of operations for the three months ended March 31, 2019 and 2018 and the statements of cash flows for the three months ended March 31, 2019 and 2018. Warner Chilcott Limited Consolidating Balance Sheets As of March 31, 2019 (Unaudited; in millions) Warner Chilcott Limited (Parent Guarantor) Allergan Capital S.a.r.l. (Guarantor) Allergan Funding SCS (Issuer) Allergan Finance, LLC (Issuer and Guarantor) Non- guarantors Eliminations Consolidated Warner Chilcott Limited ASSETS Current assets: Cash and cash equivalents $ 0.1 $ 60.4 $ 1.3 $ - $ 724.9 $ - $ 786.7 Marketable securities - 200.5 - - 794.7 - 995.2 Accounts receivable, net - - - - 2,731.2 - 2,731.2 Receivables from Parents - - - - 814.1 - 814.1 Inventories - - - - 943.2 - 943.2 Intercompany receivables - 4,089.7 597.5 33.7 27,471.6 (32,192.5 ) - Current assets held for sale - - - - 45.7 - 45.7 Prepaid expenses and other current assets - - - 33.3 747.6 - 780.9 Total current assets 0.1 4,350.6 598.8 67.0 34,273.0 (32,192.5 ) 7,097.0 Property, plant and equipment, net - - - - 1,781.1 - 1,781.1 Right of use asset - operating leases - - - - 455.4 - 455.4 Investments and other assets - - - - 1,979.5 - 1,979.5 Investment in subsidiaries 59,338.6 67,744.4 25,425.0 96,294.5 - (248,802.5 ) - Non current intercompany receivables - 15,603.7 - - 1,082.9 (16,686.6 ) - Non current assets held for sale - - - - 897.2 - 897.2 Deferred tax assets - 51.4 - - 981.2 - 1,032.6 Product rights and other intangibles - - - - 42,264.6 - 42,264.6 Goodwill - - - - 43,336.6 - 43,336.6 Total assets $ 59,338.7 $ 87,750.1 $ 26,023.8 $ 96,361.5 $ 127,051.5 $ (297,681.6 ) $ 98,844.0 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued expenses - 0.1 103.0 118.9 4,412.3 - 4,634.3 Intercompany payables - 17,016.3 12.2 10,443.1 4,720.9 (32,192.5 ) - Payables to Parents - - - - 3,034.9 - 3,034.9 Income taxes payable - - 3.9 - 123.0 - 126.9 Current portion of long-term debt - - 3,887.2 - 84.6 - 3,971.8 Current portion of lease liability - operating - - - - 116.1 - 116.1 Total current liabilities - 17,016.4 4,006.3 10,562.0 12,491.8 (32,192.5 ) 11,884.0 Long-term debt - - 14,738.2 2,140.2 2,675.7 - 19,554.1 Lease liability - operating - - - - 415.2 - 415.2 Other long-term liabilities - - - - 804.4 - 804.4 Long-term intercompany payables - - - 1,082.9 15,603.7 (16,686.6 ) - Other taxes payable - - - - 1,612.0 - 1,612.0 Deferred tax liabilities - - - - 5,235.6 - 5,235.6 Total liabilities - 17,016.4 18,744.5 13,785.1 38,838.4 (48,879.1 ) 39,505.3 Total equity / (deficit) 59,338.7 70,733.7 7,279.3 82,576.4 88,213.1 (248,802.5 ) 59,338.7 Total liabilities and equity $ 59,338.7 $ 87,750.1 $ 26,023.8 $ 96,361.5 $ 127,051.5 $ (297,681.6 ) $ 98,844.0 Warner Chilcott Limited Consolidating Balance Sheets As of December 31, 2018 (Unaudited; in millions) Warner Chilcott Limited (Parent Guarantor) Allergan Capital S.a.r.l. (Guarantor) Allergan Funding SCS (Issuer) Allergan Finance, LLC (Issuer and Guarantor) Non- guarantors Eliminations Consolidated Warner Chilcott Limited ASSETS Current assets: Cash and cash equivalents $ 0.1 $ 1.8 $ 0.8 $ - $ 875.9 $ - $ 878.6 Marketable securities - 489.9 - - 537.0 - 1,026.9 Accounts receivable, net - - - - 2,868.1 - 2,868.1 Receivables from Parents - - - 640.9 - 640.9 Inventories - - - - 846.9 - 846.9 Intercompany receivables - 3,534.7 961.0 16.7 24,779.3 (29,291.7 ) - Current assets held for sale - - - - 34.0 - 34.0 Prepaid expenses and other current assets - - - 33.3 785.4 - 818.7 Total current assets 0.1 4,026.4 961.8 50.0 31,367.5 (29,291.7 ) 7,114.1 Property, plant and equipment, net - - - - 1,787.0 - 1,787.0 Investments and other assets - - - - 1,970.6 - 1,970.6 Investment in subsidiaries 62,940.2 73,846.0 26,406.9 99,255.9 - (262,449.0 ) - Non current intercompany receivables - 28,239.4 18,090.2 - 19,674.2 (66,003.8 ) - Non current assets held for sale - - - - 882.2 - 882.2 Deferred tax assets - 43.6 - - 1,020.1 - 1,063.7 Product rights and other intangibles - - - - 43,695.4 - 43,695.4 Goodwill - - - - 45,913.3 - 45,913.3 Total assets $ 62,940.3 $ 106,155.4 $ 45,458.9 $ 99,305.9 $ 146,310.3 $ (357,744.5 ) $ 102,426.3 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued expenses - 0.1 156.3 92.9 4,538.1 - 4,787.4 Intercompany payables - 14,315.0 21.7 10,442.6 4,512.4 (29,291.7 ) - Payables to Parents - - - - 2,829.2 - 2,829.2 Income taxes payable - - - - 72.4 - 72.4 Current portion of long-term debt - - 779.6 - 88.7 - 868.3 Total current liabilities - 14,315.1 957.6 10,535.5 12,040.8 (29,291.7 ) 8,557.3 Long-term debt - - 18,090.2 2,135.9 2,703.3 - 22,929.4 Other long-term liabilities - - - - 882.0 - 882.0 Long-term intercompany payables - 18,597.4 - 1,076.8 46,329.6 (66,003.8 ) - Other taxes payable - - - - 1,615.5 - 1,615.5 Deferred tax liabilities - - - - 5,501.8 - 5,501.8 Total liabilities - 32,912.5 19,047.8 13,748.2 69,073.0 (95,295.5 ) 39,486.0 Total equity / (deficit) 62,940.3 73,242.9 26,411.1 85,557.7 77,237.3 (262,449.0 ) 62,940.3 Total liabilities and equity $ 62,940.3 $ 106,155.4 $ 45,458.9 $ 99,305.9 $ 146,310.3 $ (357,744.5 ) $ 102,426.3 Warner Chilcott Limited Consolidating Statements of Operations For the Three Months Ended March 31, 2019 (Unaudited; in millions) Warner Chilcott Limited (Parent Guarantor) Allergan Capital S.a.r.l. (Guarantor) Allergan Funding SCS (Issuer) Allergan Finance, LLC (Issuer and Guarantor) Non- guarantors Eliminations Consolidated Warner Chilcott Limited Net revenues $ - $ - $ - $ - $ 3,597.1 $ - $ 3,597.1 Operating expenses: Cost of sales (excludes amortization and impairment of acquired intangibles including product rights) - - - - 497.8 - 497.8 Research and development - - - - 435.0 - 435.0 Selling and marketing - - - - 804.0 - 804.0 General and administrative - - - - 306.1 - 306.1 Amortization - - - - 1,399.4 - 1,399.4 Goodwill impairments - - - - 2,467.0 - 2,467.0 Asset sales and impairments, net - - - - (5.2 ) - (5.2 ) Total operating expenses - - - - 5,904.1 - 5,904.1 Operating (loss) - - - - (2,307.0 ) - (2,307.0 ) Interest (expense), net - (23.4 ) (59.6 ) (19.9 ) (77.6 ) - (180.5 ) Other (expense) / income, net - - (0.1 ) - 13.9 - 13.8 Total other (expense), net - (23.4 ) (59.7 ) (19.9 ) (63.7 ) - (166.7 ) (Loss) before income taxes and noncontrolling interest - (23.4 ) (59.7 ) (19.9 ) (2,370.7 ) - (2,473.7 ) (Benefit) for income taxes - - - - (68.7 ) - (68.7 ) Losses / (earnings) of equity interest subsidiaries 2,405.7 2,345.0 809.3 2,377.4 - (7,937.4 ) - Net (loss) / income $ (2,405.7 ) $ (2,368.4 ) $ (869.0 ) $ (2,397.3 ) $ (2,302.0 ) $ 7,937.4 $ (2,405.0 ) (Income) attributable to noncontrolling interest - - - - (0.7 ) - (0.7 ) Net (loss) / income attributable to members $ (2,405.7 ) $ (2,368.4 ) $ (869.0 ) $ (2,397.3 ) $ (2,302.7 ) $ 7,937.4 $ (2,405.7 ) Other comprehensive (loss) / income, net of tax (128.8 ) (140.8 ) (172.6 ) (584.0 ) (128.8 ) 1,026.2 (128.8 ) Comprehensive (loss) / income attributable to members $ (2,534.5 ) $ (2,509.2 ) $ (1,041.6 ) $ (2,981.3 ) $ (2,431.5 ) $ 8,963.6 $ (2,534.5 ) Warner Chilcott Limited Consolidating Statements of Operations For the Three Months Ended March 31, 2018 (Unaudited; in millions) Warner Chilcott Limited (Parent Guarantor) Allergan Capital S.a.r.l. (Guarantor) Allergan Funding SCS (Issuer) Allergan Finance, LLC (Issuer and Guarantor) Non- guarantors Eliminations Consolidated Warner Chilcott Limited Net revenues $ - $ - $ - $ - $ 3,672.1 $ - $ 3,672.1 Operating expenses: Cost of sales (excludes amortization and impairment of acquired intangibles including product rights) - - - - 522.8 - 522.8 Research and development - - - - 474.7 - 474.7 Selling and marketing - - - - 800.0 - 800.0 General and administrative - - (0.7 ) - 294.8 - 294.1 Amortization - - - - 1,697.6 - 1,697.6 In-process research and development impairments - - - - 522.0 - 522.0 Asset sales and impairments, net - - - - 13.1 - 13.1 Total operating expenses - - (0.7 ) - 4,325.0 - 4,324.3 Operating income / (loss) - - 0.7 - (652.9 ) - (652.2 ) Interest income / (expense), net - 259.0 (3.3 ) (21.2 ) (414.8 ) - (180.3 ) Other (expense), net - - - - (78.8 ) - (78.8 ) Total other income / (expense), net - 259.0 (3.3 ) (21.2 ) (493.6 ) - (259.1 ) Income / (loss) before income taxes and noncontrolling interest - 259.0 (2.6 ) (21.2 ) (1,146.5 ) - (911.3 ) Provision / (benefit) for income taxes - - 0.3 (12.2 ) (670.3 ) - (682.2 ) Losses / (earnings) of equity interest subsidiaries 231.3 506.0 331.7 645.3 - (1,714.3 ) - Net (loss) / income $ (231.3 ) $ (247.0 ) $ (334.6 ) $ (654.3 ) $ (476.2 ) $ 1,714.3 $ (229.1 ) (Income) attributable to noncontrolling interest - - - - (2.2 ) - (2.2 ) Net (loss) / income attributable to members $ (231.3 ) $ (247.0 ) $ (334.6 ) $ (654.3 ) $ (478.4 ) $ 1,714.3 $ (231.3 ) Other comprehensive income / (loss), net of tax 183.8 270.6 118.5 358.5 183.8 (931.4 ) 183.8 Comprehensive (loss) / income attributable to members $ (47.5 ) $ 23.6 $ (216.1 ) $ (295.8 ) $ (294.6 ) $ 782.9 $ (47.5 ) Warner Chilcott Limited Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2019 (Unaudited; in millions) Warner Chilcott Limited (Parent Guarantor) Allergan Capital S.a.r.l. (Guarantor) Allergan Funding SCS (Issuer) Allergan Finance, LLC (Issuer and Guarantor) Non- guarantors Eliminations Consolidated Warner Chilcott Limited Cash Flows From Operating Activities: Net (loss) / income $ (2,405.7 ) $ (2,368.4 ) $ (869.0 ) $ (2,397.3 ) $ (2,302.0 ) $ 7,937.4 $ (2,405.0 ) Reconciliation to net cash provided by / (used in) operating activities: Losses / (earnings) of equity interest subsidiaries 2,405.7 2,345.0 809.3 2,377.4 - (7,937.4 ) - Depreciation - - - - 47.5 - 47.5 Amortization - - - - 1,399.4 - 1,399.4 Provision for inventory reserve - - - - 18.8 - 18.8 Share-based compensation - - - - 52.3 - 52.3 Deferred income tax benefit - - - - (229.7 ) - (229.7 ) Goodwill impairments - - - - 2,467.0 2,467.0 (Gain) on asset sales and impairments, net - - - - (5.2 ) - (5.2 ) Non-cash extinguishment of debt - - - - 0.3 - 0.3 Amortization of deferred financing costs - - 4.1 0.4 0.1 - 4.6 Non-cash lease expense - - - - 30.1 - 30.1 Contingent consideration adjustments, including accretion - - - - 18.7 - 18.7 Dividends from subsidiaries 1,045.8 - - - - (1,045.8 ) - Other, net - - (1.3 ) (0.4 ) (8.6 ) - (10.3 ) Changes in assets and liabilities (net of effects of acquisitions) - (207.4 ) 209.4 19.9 (196.2 ) - (174.3 ) Net cash provided by / (used in) operating activities 1,045.8 (230.8 ) 152.5 - 1,292.5 (1,045.8 ) 1,214.2 Cash Flows From Investing Activities: Additions to property, plant and equipment - - - - (64.8 ) - (64.8 ) Additions to product rights and other intangibles - - - - (7.5 ) - (7.5 ) Additions to investments - - - - (538.2 ) - (538.2 ) Proceeds from sale of investments and other assets - 289.4 - - 279.7 - 569.1 Proceeds from sales of property, plant and equipment - - - - 17.2 - 17.2 Acquisitions of businesses, net of cash acquired - - - - (80.6 ) - (80.6 ) Net cash provided by / (used in) investing activities - 289.4 - - (394.2 ) - (104.8 ) Cash Flows From Financing Activities: Payments on debt, including finance lease obligations and credit facility - - (152.0 ) - (7.4 ) - (159.4 ) Payments of contingent consideration and other financing - - - - (2.0 ) - (2.0 ) Dividends to Parents (1,045.8 ) - - - (1,045.8 ) 1,045.8 (1,045.8 ) Net cash (used in) / provided by financing activities (1,045.8 ) - (152.0 ) - (1,055.2 ) 1,045.8 (1,207.2 ) Effect of currency exchange rate changes on cash and cash equivalents - - - - 5.9 - 5.9 Net increase / (decrease) in cash and cash equivalents - 58.6 0.5 - (151.0 ) - (91.9 ) Cash and cash equivalents at beginning of period 0.1 1.8 0.8 - 875.9 - 878.6 Cash and cash equivalents at end of period $ 0.1 $ 60.4 $ 1.3 $ - $ 724.9 $ - $ 786.7 Warner Chilcott Limited Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2018 (Unaudited; in millions) Warner Chilcott Limited (Parent Guarantor) Allergan Capital S.a.r.l. (Guarantor) Allergan Funding SCS (Issuer) Allergan Finance, LLC (Issuer and Guarantor) Non- guarantors Eliminations Consolidated Warner Chilcott Limited Cash Flows From Operating Activities: Net (loss) / income $ (231.3 ) $ (247.0 ) $ (334.6 ) $ (654.3 ) $ (476.2 ) $ 1,714.3 $ (229.1 ) Reconciliation to net cash provided by / (used in) operating activities: Losses / (earnings) of equity interest subsidiaries 231.3 506.0 331.7 645.3 - (1,714.3 ) - Depreciation - - - - 56.1 - 56.1 Amortization - - - - 1,697.6 - 1,697.6 Provision for inventory reserve - - - - 14.2 - 14.2 Share-based compensation - - - - 72.5 - 72.5 Deferred income tax benefit - - - - (1,026.4 ) - (1,026.4 ) In-process research and development impairments - - - - 522.0 - 522.0 Loss on asset sales and impairments, net - - - - 13.1 - 13.1 Loss on sale of Teva securities, net - - - - 77.7 - 77.7 Amortization of deferred financing costs - - 5.9 0.4 - - 6.3 Contingent consideration adjustments, including accretion - - - - 5.3 - 5.3 Dividends from subsidiaries 1,859.5 - - - - (1,859.5 ) - Other, net - - (1.5 ) (0.4 ) 8.4 - 6.5 Changes in assets and liabilities (net of effects of acquisitions) - (1,675.2 ) 3,498.5 9.0 (1,453.5 ) - 378.8 Net cash provided by / (used in) operating activities 1,859.5 (1,416.2 ) 3,500.0 - (489.2 ) (1,859.5 ) 1,594.6 Cash Flows From Investing Activities: Additions to property, plant and equipment - - - - (46.4 ) - (46.4 ) Additions to investments - (400.0 ) - - (1,055.9 ) - (1,455.9 ) Proceeds from sale of investments and other assets - 800.0 - - 4,089.5 - 4,889.5 Payments to settle Teva related matters - - - - (466.0 ) - (466.0 ) Proceeds from sales of property, plant and equipment - - - - 11.1 - 11.1 Net cash provided by investing activities - 400.0 - - 2,532.3 - 2,932.3 Cash Flows From Financing Activities: Proceeds from borrowings of long-term indebtedness, including credit facility - 700.0 - - 9.0 - 709.0 Payments on debt, including finance lease obligations and credit facility - (200.0 ) (3,500.0 ) - (622.1 ) - (4,322.1 ) Payments of contingent consideration and other financing - - - - (9.3 ) - (9.3 ) Proceeds from forward sale of Teva securities - - - - 372.3 - 372.3 Payments to settle Teva related matters - - - - (234.0 ) - (234.0 ) Dividends to Parents (1,859.5 ) - - - (1,859.5 ) 1,859.5 (1,859.5 ) Net cash (used in) / provided by financing activities (1,859.5 ) 500.0 (3,500.0 ) - (2,343.6 ) 1,859.5 (5,343.6 ) Effect of currency exchange rate changes on cash and cash equivalents - - - - (5.3 ) - (5.3 ) Net (decrease) in cash and cash equivalents - (516.2 ) - - (305.8 ) - (822.0 ) Cash and cash equivalents at beginning of period 0.1 593.1 0.1 - 1,223.0 - 1,816.3 Cash and cash equivalents at end of period $ 0.1 $ 76.9 $ 0.1 $ - $ 917.2 $ - $ 994.3 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Implementation of New Guidance | Implementation of New Guidance In February 2016, the Financial Accounting Standards Board (“FASB”) established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. On January 1, 2019, the Company adopted the new standard using the modified retrospective transition approach applied to all leases existing at the effective date of initial application of January 1, 2019. Prior period amounts are not adjusted and continue to be reported in accordance with historical accounting practices and the disclosures under the new standard are not required for dates and periods prior to January 1, 2019. When evaluating whether a contract contains a lease under the new standard, Allergan considers whether (1) the contract explicitly or implicitly identifies assets that are contractually defined and (2) the Company obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. The Company does not have the right to use an identified asset if the supplier has the substantive right to substitute the asset throughout the period without the Company’s approval. The new standard provides a number of optional practical expedients in transition. The Company elected the ‘package of practical expedients’ which permits us not to reassess our prior conclusions about lease identification, lease classification and initial direct costs under the new standard. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter was not applicable to the Company. This standard has a significant impact on our consolidated balance sheet but did not have a significant impact on our consolidated statements of operations. The most significant effects relate to the recognition of ROU assets and lease liabilities on our balance sheet for our real estate and fleet operating leases. Upon adoption, the Company recognized lease liabilities and corresponding ROU assets as follows ($ in millions): ROU Asset Lease Liability Real estate $ 304.2 $ 370.6 Fleet 100.4 100.4 Other 57.5 77.6 Total operating leases $ 462.1 $ 548.6 The cumulative effective adjustment as of the effective date of $22.0 million was recorded to opening retained earnings. The Company has an immaterial amount of finance leases. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the lease recognition exemption for all leases with lease terms of 12 months or less. For leases that qualify under this exception, the Company will not recognize ROU assets or lease liabilities and did not recognize ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company also elected the practical expedient to not separate lease and non-lease components for leases of real estate, fleet, IT and office equipment. Refer to “NOTE 13 – Leases” for further information related to the Company’s leases. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This update allows for the optional reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act (“TCJA”) from accumulated other comprehensive income to retained earnings. The amount of the reclassification is calculated as the difference between the historical and newly enacted tax rates on deferred taxes originally recorded through accumulated other comprehensive income. The Company adopted the standard as of January 1, 2019; however, due to the immaterial amount of the stranded tax effects, the Company elected not to reclassify the income tax effects from accumulated other comprehensive income to retained earnings. Tax effects unrelated to the TCJA are released from accumulated other comprehensive income using either the specific identification approach or the portfolio approach based on the nature of the underlying item. The Company adopted ASU 2016-01, Financial Instruments on January 1, 2018. The new standard required modified retrospective adoption through 2018 beginning Retained Earnings and Accumulated Other Comprehensive Income. This was incorrectly recorded as a loss through Other Comprehensive Income of $63.0 million during the quarter ended March 31, 2018. This was corrected during 2018 and therefore, has no impact on the annual consolidated financial statements. The Company has determined that the adjustment was not material to any previously reported interim period. The Consolidated Statement of Comprehensive (Loss) for the quarter ended March 31, 2018 has been adjusted to correct for this error. |
Revenue Recognition | Revenue Recognition General ASU No. 2014-09, “Revenue from Contracts with Customers” (“Topic 606”) provides that revenues are recognized when control of the promised goods under a contract is transferred to a customer, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods as specified in the underlying terms with the customer. The Company warrants products against defects and for specific quality standards, permitting the return of products under certain circumstances. Product sales are recorded net of all sales-related deductions including, but not limited to: chargebacks, trade discounts, commercial and government rebates, customer loyalty programs, fee-for-service arrangements with certain distributors, returns, and other allowances which we refer to in the aggregate as sales returns and allowances (“SRA”). The Company’s performance obligations are primarily achieved when control of the products is transferred to the customer. Transfer of control is based on contractual performance obligations, but typically occurs upon receipt of the goods by the customer as that is when the customer has obtained control of significantly all of the economic benefits. Refer to “NOTE 8 – Reportable Segments” for our revenues disaggregated by product and segment and our revenues disaggregated by geography for our international segment. We believe this level of disaggregation best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. The following table summarizes the activity from operations in the Company’s major categories of SRA ($ in millions): Chargebacks Rebates Returns and Other Allowances Cash Discounts Total Balance at December 31, 2018 $ 61.8 $ 1,908.5 $ 566.6 $ 30.7 $ 2,567.6 Provision related to sales in 2019 267.3 1,396.5 400.5 75.4 2,139.7 Credits and payments (262.9 ) (1,294.5 ) (361.7 ) (78.6 ) (1,997.7 ) Balance at March 31, 2019 $ 66.2 $ 2,010.5 $ 605.4 $ 27.5 $ 2,709.6 Contra accounts receivable at March 31, 2019 $ 66.2 $ 69.4 $ 41.0 $ 27.5 $ 204.1 Accounts payable and accrued expenses at March 31, 2019 $ - $ 1,941.1 $ 564.4 $ - $ 2,505.5 The following table summarizes the balance sheet classification of our SRA reserves ($ in millions): March 31, 2019 December 31, 2018 Contra accounts receivable $ 204.1 $ 207.7 Accounts payable and accrued expenses 2,505.5 2,359.9 Total $ 2,709.6 $ 2,567.6 The SRA provisions recorded to reduce gross product sales to net product sales were as follows ($ in millions): Three Months Ended March 31, 2019 2018 Gross product sales $ 5,659.9 $ 5,616.1 Provisions to reduce gross product sales to net product sales (2,139.7 ) (2,035.1 ) Net product sales $ 3,520.2 $ 3,581.0 Percentage of SRA provisions to gross sales 37.8 % 36.2 % Collectability Assessment At the time of contract inception or customer account set-up, the Company performs a collectability assessment on the creditworthiness of such customer. The Company assesses the probability that the Company will collect the consideration to which it will be entitled in exchange for the goods sold. In evaluating collectability, the Company considers the customer’s ability and intention to pay consideration when it is due. On a recurring basis, the Company estimates the amount of receivables considered uncollectible after sale to the customer to reflect allowances for doubtful accounts. Provision for bad debts, included in general and administrative expenses, were $3.4 million and $10.1 million in the three months ended March 31, 2019 and 2018, respectively. |
Earnings Per Share ("EPS") | Earnings Per Share (“EPS”) The Company computes EPS in accordance with Accounting Standards Codification (“ASC”) Topic 260, “Earnings Per Share” (“ASC 260”) and related guidance, which requires two calculations of EPS to be disclosed: basic and diluted. Basic EPS is computed by dividing net (loss) by the weighted average ordinary shares outstanding during a period. Diluted EPS is based on the treasury stock method and includes the effect from potential issuance of ordinary shares, such as shares issuable pursuant to the exercise of stock options and restricted stock units. Ordinary share equivalents have been excluded where their inclusion would be anti-dilutive. A reconciliation of the numerators and denominators of basic and diluted EPS follows ($ in millions, except per share amounts): Three Months Ended March 31, 2019 2018 Net (loss): Net (loss) attributable to ordinary shareholders $ (2,408.0 ) $ (332.5 ) Basic weighted average ordinary shares outstanding 332.0 334.6 Basic EPS: Net (loss) per share $ (7.25 ) $ (0.99 ) Dividends per ordinary share $ 0.74 $ 0.72 Diluted weighted average ordinary shares outstanding 332.0 334.6 Diluted EPS: Net (loss) per share $ (7.25 ) $ (0.99 ) Stock awards to purchase 2.4 million ordinary shares for both the three months ended March 31, 2019 and 2018, respectively, were outstanding, but not included in the computation of diluted EPS, because the awards were anti-dilutive. The impact of the 5.3 million shares repurchased in the three months ended March 31, 2019 on basic EPS was 0.7 million weighted average shares. The impact of the 9.6 million shares repurchased in the three months ended March 31, 2018 on basic EPS was 2.0 million weighted average shares. The Company’s preferred shares were mandatorily converted to ordinary shares on March 1, 2018. The weighted average impact of ordinary share equivalents of 11.7 million for the three months ended March 31, 2018, which would result from the mandatory conversion of the Company’s preferred shares at the beginning of the period, were not included in the calculation of diluted EPS as their impact would be anti-dilutive. The weighted average impact of the mandatory conversion of the Company’s preferred shares into ordinary shares was 6.2 million in the three months ended March 31, 2018. |
Research and Development Activities | Research and Development Activities Research and development (“R&D”) activities are expensed as incurred and consist of self-funded R&D costs, the costs associated with work performed under collaborative R&D agreements, regulatory fees, and acquisition and license related milestone payments, if any. As of March 31, 2019, we are developing a number of products, some of which utilize novel drug delivery systems, through a combination of internal and collaborative programs including but not limited to the following: Product Therapeutic Area Indication Expected Launch Year Phase Cariprazine Central Nervous System Bipolar Depression 2019 Review Ubrogepant Central Nervous System Acute Migraine 2020 Review Abicipar Eye Care Age Related Macular Degeneration 2020 III Bimatoprost SR Eye Care Glaucoma 2020 III Atogepant Central Nervous System Prophylaxis Migraine 2021 III Presbysol Eye Care Presbyopia 2021 III Cenicriviroc Gastrointestinal NASH 2022 III Relamorelin Gastrointestinal Gastroparesis 2023 III Brimonidine DDS Eye Care Geographic Atrophy 2023 II Abicipar Eye Care Diabetic Macular Edema 2024 II Botox Medical Aesthetics Platysma/Masseter 2025/2023 II Brazikumab Gastrointestinal Crohn's Disease 2025 II Brazikumab Gastrointestinal Ulcerative Colitis 2026 II We also have a number of products in development as part of our life-cycle management strategy for our existing product portfolio. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40), relating to a customer's accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by a vendor (i.e., a service contract). Under the new guidance, a customer will apply the same criteria for capitalizing implementation costs as it would for an arrangement that has a software license. The new guidance also prescribes the balance sheet, income statement, and cash flow classification of the capitalized implementation costs and related amortization expense, and requires additional quantitative and qualitative disclosures. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application is permitted. The Company can choose to adopt the new guidance (1) prospectively to eligible costs incurred on or after the date this guidance is first applied or (2) retrospectively. The Company is evaluating the impact, if any, that this pronouncement will have on our financial position and results of operations. In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) – Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, which amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The revisions to the disclosure requirements affect only the year-end financial statements of plan sponsors, as there are no changes related to interim financial statements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is permitted. The ASU provisions will be applied on a retrospective basis to all periods presented. This pronouncement only has an impact to disclosure requirements and does not have an impact on our financial position or results of operations. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which removes, adds and modifies certain disclosure requirements for fair value measurements The Company will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the valuation processes of Level 3 fair value measurements. However, the Company will be required to additionally disclose the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements, and the range and weighted average of assumptions used to develop significant unobservable inputs for Level 3 fair value measurements. permitted to early adopt either the entire ASU or only the provisions that eliminate or modify the requirements. |
Reconciliation of Warner Chil_2
Reconciliation of Warner Chilcott Limited Results to Allergan plc Results (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Adjusted Earnings Before Interest Taxes Depreciation And Amortization And Other Non Cash Items [Abstract] | |
Summary of Financial Position Reconciliation Results of Warner Chilcott Limited to Allergan Plc | As of March 31, 2019 As of December 31, 2018 Allergan plc Warner Chilcott Limited Difference Allergan plc Warner Chilcott Limited Difference Cash and cash equivalents $ 788.5 $ 786.7 $ 1.8 $ 880.4 $ 878.6 $ 1.8 Prepaid expenses and other current assets 785.5 780.9 4.6 819.1 818.7 0.4 Accounts payable and accrued liabilities 4,634.4 4,634.3 0.1 4,787.2 4,787.4 (0.2 ) Other taxes payable 1,618.2 1,612.0 6.2 1,615.5 1,615.5 - Total equity 61,559.6 59,338.7 2,220.9 65,131.0 62,940.3 2,190.7 |
Summary of Operations Reconciliation Results of Warner Chilcott Limited to Allergan Plc | Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Allergan plc Warner Chilcott Limited Difference Allergan plc Warner Chilcott Limited Difference General and administrative expenses $ 308.3 $ 306.1 $ 2.2 $ 295.9 $ 294.1 $ 1.8 Operating (loss) (2,309.2 ) (2,307.0 ) (2.2 ) (654.0 ) (652.2 ) (1.8 ) Interest income 21.3 21.3 - 17.3 70.3 (53.0 ) (Loss) before income taxes and noncontrolling interest (2,475.9 ) (2,473.7 ) (2.2 ) (966.1 ) (911.3 ) (54.8 ) Net (loss) (2,407.3 ) (2,405.0 ) (2.3 ) (283.9 ) (229.1 ) (54.8 ) Dividends on preferred shares - - - 46.4 - 46.4 Net (loss) attributable to ordinary shareholders/members (2,408.0 ) (2,405.7 ) (2.3 ) (332.5 ) (231.3 ) (101.2 ) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Recognized Lease Liabilities and Corresponding Right of Use Assets | Upon adoption, the Company recognized lease liabilities and corresponding ROU assets as follows ($ in millions): ROU Asset Lease Liability Real estate $ 304.2 $ 370.6 Fleet 100.4 100.4 Other 57.5 77.6 Total operating leases $ 462.1 $ 548.6 |
Provisions for Sales Returns and Allowances from Continuing Operations Activity | The following table summarizes the activity from operations in the Company’s major categories of SRA ($ in millions): Chargebacks Rebates Returns and Other Allowances Cash Discounts Total Balance at December 31, 2018 $ 61.8 $ 1,908.5 $ 566.6 $ 30.7 $ 2,567.6 Provision related to sales in 2019 267.3 1,396.5 400.5 75.4 2,139.7 Credits and payments (262.9 ) (1,294.5 ) (361.7 ) (78.6 ) (1,997.7 ) Balance at March 31, 2019 $ 66.2 $ 2,010.5 $ 605.4 $ 27.5 $ 2,709.6 Contra accounts receivable at March 31, 2019 $ 66.2 $ 69.4 $ 41.0 $ 27.5 $ 204.1 Accounts payable and accrued expenses at March 31, 2019 $ - $ 1,941.1 $ 564.4 $ - $ 2,505.5 |
Schedule of Balance Sheet Classification of SRA Reserves | The following table summarizes the balance sheet classification of our SRA reserves ($ in millions): March 31, 2019 December 31, 2018 Contra accounts receivable $ 204.1 $ 207.7 Accounts payable and accrued expenses 2,505.5 2,359.9 Total $ 2,709.6 $ 2,567.6 |
Summary of Activity in Gross-to-Net Revenue | The SRA provisions recorded to reduce gross product sales to net product sales were as follows ($ in millions): Three Months Ended March 31, 2019 2018 Gross product sales $ 5,659.9 $ 5,616.1 Provisions to reduce gross product sales to net product sales (2,139.7 ) (2,035.1 ) Net product sales $ 3,520.2 $ 3,581.0 Percentage of SRA provisions to gross sales 37.8 % 36.2 % |
Earnings Per Share | A reconciliation of the numerators and denominators of basic and diluted EPS follows ($ in millions, except per share amounts): Three Months Ended March 31, 2019 2018 Net (loss): Net (loss) attributable to ordinary shareholders $ (2,408.0 ) $ (332.5 ) Basic weighted average ordinary shares outstanding 332.0 334.6 Basic EPS: Net (loss) per share $ (7.25 ) $ (0.99 ) Dividends per ordinary share $ 0.74 $ 0.72 Diluted weighted average ordinary shares outstanding 332.0 334.6 Diluted EPS: Net (loss) per share $ (7.25 ) $ (0.99 ) |
Summary of Products Which Utilize Novel Drug Delivery Systems through Combination of Internal and Collaborative Programs | As of March 31, 2019, we are developing a number of products, some of which utilize novel drug delivery systems, through a combination of internal and collaborative programs including but not limited to the following: Product Therapeutic Area Indication Expected Launch Year Phase Cariprazine Central Nervous System Bipolar Depression 2019 Review Ubrogepant Central Nervous System Acute Migraine 2020 Review Abicipar Eye Care Age Related Macular Degeneration 2020 III Bimatoprost SR Eye Care Glaucoma 2020 III Atogepant Central Nervous System Prophylaxis Migraine 2021 III Presbysol Eye Care Presbyopia 2021 III Cenicriviroc Gastrointestinal NASH 2022 III Relamorelin Gastrointestinal Gastroparesis 2023 III Brimonidine DDS Eye Care Geographic Atrophy 2023 II Abicipar Eye Care Diabetic Macular Edema 2024 II Botox Medical Aesthetics Platysma/Masseter 2025/2023 II Brazikumab Gastrointestinal Crohn's Disease 2025 II Brazikumab Gastrointestinal Ulcerative Colitis 2026 II |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Assets Held For Sale Not Part Of Disposal Group [Abstract] | |
Summary of Products Sale Transaction and Key Financial Results of Business | The following represents the assets held for sale ($ in millions): March 31, December 31, 2019 2018 Assets held for sale: Inventories $ 45.7 $ 34.0 Property, plant and equipment, net 32.8 32.8 Product rights and other intangibles 864.4 849.4 Total assets held for sale $ 942.9 $ 916.2 |
Other Income _ (Expense) (Table
Other Income / (Expense) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Components of Other Income / (Expense), Net | Other income / (expense), net consisted of the following ($ in millions): Three Months Ended March 31, 2019 2018 Teva Share Activity $ - $ (77.7 ) Debt extinguishment other (0.3 ) - Other income / (expense), net 14.1 (1.1 ) Other income / (expense), net $ 13.8 $ (78.8 ) |
Summary of Teva Share Activity | During the three months ended March 31, 2018, the Company recorded the following movements in its investment in Teva securities (“Teva Share Activity”) ($ in millions except per share information): Shares Carrying Value per Share Market Price Proceeds Received Value of Marketable Securities Unrealized Gain / (Loss) as a Component of Other Comprehensive Income Gain / (Loss) Recognized in Other Income/ (Expense), Net Derivative Instrument (Liability)/ Asset Retained Earnings Teva securities as of December 31, 2017 95.9 $ 17.60 $ 18.95 n.a. $ 1,817.7 $ 129.3 $ - $ (62.9 ) $ - Impact of ASU No. 2016-01 - - - - - (129.3 ) - - 129.3 Settlement of initial accelerated share repurchase ("ASR") (25.0 ) 18.95 16.53 * 413.3 (473.8 ) - 2.5 62.9 - Forward sale entered into during the three months ended March 31, 2018 ** n.a. n.a. 372.3 n.a. - 19.0 (353.3 ) - Open market sales (11.5 ) n.a. 19.95 229.9 (218.5 ) - 11.5 - - Other fair value movements during the three months ended March 31, 2018 - n.a. n.a. n.a. (110.7 ) - (110.7 ) - - Teva securities as of and for the three months ended March 31, 2018*** 59.4 $ 17.09 $ 17.09 $ 1,015.5 $ 1,014.7 $ - $ (77.7 ) $ (353.3 ) $ 129.3 * Market price represented average price over the life of the contract. On the date of settlement of January 17, 2018, the closing stock price of Teva securities was $21.48. ** On February 13, 2018, the Company entered into a forward sale transaction under which we delivered 25.0 million Teva shares to the transaction counterparty and received proceeds of $372.3 million in exchange for the shares. The forward sale transaction settled during the second quarter of 2018; the final settlement value of the shares was based on the volume weighted average price of the Teva shares plus a premium. As a result of the transaction, and in accordance with ASC Topic 860 - Transfers and Servicing, the marketable securities continued to be reported on the Company's books until the contract settled. The Company recorded the cash proceeds as a secured liability as well as a $19.0 million marked-to-market value of the bifurcated derivative component of the agreement in prepaid expenses and other current assets as of March 31, 2018. ***The Company sold the remaining Teva securities during the second quarter of 2018. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Fair Value Assumptions of Options based on Black-Scholes Valuation Model | Using the Black-Scholes valuation model, the fair value of options is based on the following assumptions: 2019 Grants 2018 Grants Dividend yield 2.2% 1.5% Expected volatility 23.5% 27.0% Risk-free interest rate 2.6% 2.2 - 2.9% Expected term (years) 7.0 7.0 |
Share-Based Compensation Expense Recognized in Company's Results of Operations | Share-based compensation expense recognized in the Company’s results of operations for the three months ended March 31, 2019 and 2018 was as follows ($ in millions): Three Months Ended March 31, 2019 2018 Equity-based compensation awards $ 52.3 $ 72.5 Total share-based compensation expense $ 52.3 $ 72.5 |
Summary of Equity Award Activity for Unvested Restricted Stock and Stock Units | The following is a summary of equity award activity for unvested restricted stock and stock units in the period from December 31, 2018 through March 31, 2019 (in millions, except per share data): Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (Years) Aggregate Grant Date Fair Value Restricted shares / units outstanding at December 31, 2018 2.5 $ 190.27 1.6 $ 472.9 Granted 1.4 139.66 197.8 Vested (0.6 ) 210.69 (123.9 ) Forfeited - 208.11 (8.4 ) Restricted shares / units outstanding at March 31, 2019 3.3 $ 162.75 2.0 $ 538.4 |
Summary of Equity Award Activity for Non-Qualified Options to Purchase Ordinary Shares | The following is a summary of equity award activity for non-qualified options to purchase ordinary shares in the period from December 31, 2018 through March 31, 2019 (in millions, except per share data): Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding, vested and expected to vest at December 31, 2018 6.3 $ 122.74 4.4 $ 69.0 Granted 0.3 140.16 Exercised (0.2 ) 64.49 Cancelled - 223.68 Outstanding, vested and expected to vest at March 31, 2019 6.4 $ 124.43 4.5 $ 140.4 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Net Revenues, Operating Expenses Contribution Information by Reportable Segment | Segment net revenues, segment operating expenses and segment contribution information consisted of the following for the three months ended March 31, 2019 and 2018 ($ in millions): Three Months Ended March 31, 2019 US Specialized Therapeutics US General Medicine International Total Net revenues $ 1,542.9 $ 1,249.9 $ 801.5 $ 3,594.3 Operating expenses: Cost of sales (1) 120.1 190.5 109.7 420.3 Selling and marketing 356.8 210.5 237.6 804.9 General and administrative 54.6 43.8 25.7 124.1 Segment contribution $ 1,011.4 $ 805.1 $ 428.5 $ 2,245.0 Contribution margin 65.6 % 64.4 % 53.5 % 62.5 % Corporate (2) 258.0 Research and development 435.0 Amortization 1,399.4 Goodwill impairments 2,467.0 Asset sales and impairments, net (5.2 ) Operating (loss) $ (2,309.2 ) Operating margin (64.2 )% (1) (2) Three Months Ended March 31, 2018 US Specialized Therapeutics US General Medicine International Total Net revenues $ 1,578.6 $ 1,223.7 $ 864.0 $ 3,666.3 Operating expenses: Cost of sales (1) 134.2 182.6 120.9 437.7 Selling and marketing 313.2 225.5 245.7 784.4 General and administrative 50.2 38.9 31.4 120.5 Segment contribution $ 1,081.0 $ 776.7 $ 466.0 $ 2,323.7 Contribution margin 68.5 % 63.5 % 53.9 % 63.4 % Corporate (2) 270.3 Research and development 474.7 Amortization 1,697.6 In-process research and development impairments 522.0 Asset sales and impairments, net 13.1 Operating (loss) $ (654.0 ) Operating margin (17.8 )% (1) (2) |
Schedule of Net Revenue Disaggregated by Geography for International Segment | The following table presents our net revenue disaggregated by geography for our international segment for the three months ended March 31, 2019 and 2018 ($ in millions): Three Months Ended March 31, 2019 2018 Europe $ 354.4 $ 398.4 Asia Pacific, Middle East and Africa 250.7 240.8 Latin America and Canada 178.2 212.1 Other* 18.2 12.7 Total International $ 801.5 $ 864.0 * Includes royalty and other revenue |
Schedule of Global Net Revenues for Top Products and Reconciliation of Segment Revenues to Total Net Revenues | The following tables present global net revenues for the top products greater than 10% of total revenues of the Company as well as a reconciliation of segment revenues to total net revenues for the three months ended March 31, 2019 and 2018 ($ in millions): Three Months Ended March 31, 2019 US Specialized Therapeutics US General Medicine International Total Botox ® $ 627.1 $ - $ 241.3 $ 868.4 Juvederm ® 129.7 - 157.8 287.5 Restasis ® 231.7 - 10.4 242.1 Linzess ® ® - 161.3 5.5 166.8 Vraylar ® - 143.7 - 143.7 Lumigan ® ® 57.7 - 85.1 142.8 Bystolic ® ® - 128.3 0.4 128.7 Lo Loestrin ® - 125.8 - 125.8 Alphagan ® ® 83.0 - 37.6 120.6 Eye Drops 49.4 - 55.4 104.8 Alloderm ® 95.0 - 1.6 96.6 Ozurdex ® 30.3 - 63.1 93.4 Viibryd ® ® - 85.0 2.1 87.1 Breast Implants 61.2 - 11.2 72.4 Coolsculpting ® 47.8 - 17.8 65.6 Zenpep ® - 63.0 - 63.0 Carafate ® ® - 54.3 0.6 54.9 Armour Thyroid - 50.0 - 50.0 Viberzi ® - 37.2 0.3 37.5 Skin Care 34.7 - 2.7 37.4 Asacol ® ® - 24.7 10.3 35.0 Teflaro ® - 33.5 0.2 33.7 Saphris ® - 31.9 - 31.9 Avycaz ® - 29.7 - 29.7 Coolsculpting ® 15.1 - 10.6 25.7 Namzaric ® - 23.4 - 23.4 Savella ® - 20.7 - 20.7 Liletta ® - 14.8 - 14.8 Canasa ® ® - 10.2 3.6 13.8 Rapaflo ® 11.8 - 0.6 12.4 Dalvance ® - 12.0 - 12.0 Namenda ® - 9.5 - 9.5 Kybella ® ® 7.3 - 1.6 8.9 Aczone ® 1.6 - - 1.6 Other 59.5 190.9 81.7 332.1 Total segment revenues $ 1,542.9 $ 1,249.9 $ 801.5 $ 3,594.3 Corporate revenues 2.8 Total net revenues $ 3,597.1 Three Months Ended March 31, 2018 US Specialized Therapeutics US General Medicine International Total Botox ® $ 572.5 $ - $ 244.8 $ 817.3 Restasis ® 255.8 - 18.3 274.1 Juvederm ® 122.8 - 146.1 268.9 Lumigan ® ® 66.8 - 100.4 167.2 Linzess ® ® - 159.3 5.6 164.9 Bystolic ® ® - 132.8 0.5 133.3 Alphagan ® ® 84.2 - 44.2 128.4 Eye Drops 46.2 - 68.8 115.0 Lo Loestrin ® - 114.6 - 114.6 Breast Implants 60.7 - 44.1 104.8 Alloderm ® 99.5 - 2.2 101.7 Ozurdex ® 25.5 - 64.4 89.9 Vraylar ® - 84.4 - 84.4 Viibryd ® ® - 71.7 1.5 73.2 Coolsculpting ® 53.4 - 8.1 61.5 Carafate ® ® - 56.0 0.7 56.7 Zenpep ® - 52.9 - 52.9 Asacol ® ® - 38.2 11.7 49.9 Armour Thyroid - 48.2 - 48.2 Canasa ® ® - 38.6 4.2 42.8 Namenda ® - 40.6 - 40.6 Viberzi ® - 35.9 0.1 36.0 Skin Care 31.9 - 3.8 35.7 Coolsculpting ® 33.7 - 1.1 34.8 Namzaric ® - 33.4 - 33.4 Saphris ® - 32.7 - 32.7 Teflaro ® - 32.2 - 32.2 Rapaflo ® 22.8 - 1.2 24.0 Avycaz ® - 21.8 - 21.8 Savella ® - 19.9 - 19.9 Aczone ® 16.0 - 0.1 16.1 Dalvance ® - 11.9 - 11.9 Kybella ® ® 8.2 - 1.4 9.6 Liletta ® - 8.1 - 8.1 Other 78.6 190.5 90.7 359.8 Total segment revenues $ 1,578.6 $ 1,223.7 $ 864.0 $ 3,666.3 Corporate revenues 5.8 Total net revenues $ 3,672.1 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following ($ in millions): March 31, December 31, 2019 2018 Raw materials $ 332.9 $ 303.2 Work-in-process 211.8 145.7 Finished goods 523.0 520.2 1,067.7 969.1 Less: inventory reserves 124.5 122.2 Total Inventories $ 943.2 $ 846.9 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Summary of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following ($ in millions): March 31, December 31, 2019 2018 Accrued expenses: Accrued third-party rebates $ 1,941.1 $ 1,832.1 Accrued returns and other allowances 564.4 527.8 Accrued payroll and related benefits 431.1 694.3 Accrued R&D expenditures 221.7 215.5 Accrued pharmaceutical fees 160.8 145.3 Royalties payable 156.9 155.1 Interest payable 141.2 191.4 Litigation-related reserves and legal fees 137.1 92.0 Accrued non-provision taxes 71.3 68.5 Accrued selling and marketing expenditures 66.6 61.1 Accrued severance, retention and other shutdown costs 36.7 71.6 Current portion of contingent consideration obligations 9.4 8.3 Dividends payable 1.4 1.4 Contractual commitments - 4.3 Other accrued expenses 338.0 368.7 Total accrued expenses $ 4,277.7 $ 4,437.4 Accounts payable 356.7 349.8 Total accounts payable and accrued expenses $ 4,634.4 $ 4,787.2 |
Goodwill, Product Rights and _2
Goodwill, Product Rights and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill Goodwill for the Company’s reporting segments consisted of the following ($ in millions): US Specialized Therapeutics US General Medicine International Total Balance as of December 31, 2018 $ 20,675.6 $ 17,936.6 $ 7,301.1 $ 45,913.3 Acquisitions 34.1 - - 34.1 Impairments - (2,467.0 ) - (2,467.0 ) Foreign exchange and other adjustments - - (143.8 ) (143.8 ) Balance as of March 31, 2019 $ 20,709.7 $ 15,469.6 $ 7,157.3 $ 43,336.6 |
Schedule of Cost Basis on Product Rights and Other Intangible Assets | Product Rights and Other Intangible Assets Product rights and other intangible assets consisted of the following ($ in millions): Cost Basis Balance as of December 31, 2018 Additions IPR&D to CMP Transfers Foreign Currency Translation / Other Balance as of March 31, 2019 Intangibles with definite lives: Product rights and other intangibles $ 70,235.1 $ 74.9 $ 75.6 $ (160.0 ) $ 70,225.6 Trade name 690.0 - - - 690.0 Total definite lived intangible assets $ 70,925.1 $ 74.9 $ 75.6 $ (160.0 ) $ 70,915.6 Intangibles with indefinite lives: IPR&D $ 5,048.1 $ - $ (75.6 ) $ - $ 4,972.5 Total indefinite lived intangible assets $ 5,048.1 $ - $ (75.6 ) $ - $ 4,972.5 Total product rights and other intangibles $ 75,973.2 $ 74.9 $ - $ (160.0 ) $ 75,888.1 Accumulated Amortization Balance as of December 31, 2018 Amortization IPR&D to CMP Transfers Foreign Currency Translation / Other Balance as of March 31, 2019 Intangibles with definite lives: Product rights and other intangibles $ (31,985.0 ) $ (1,379.4 ) $ - $ 53.7 $ (33,310.7 ) Trade name (292.8 ) (20.0 ) - - (312.8 ) Total definite lived intangible assets $ (32,277.8 ) $ (1,399.4 ) $ - $ 53.7 $ (33,623.5 ) Total product rights and other intangibles $ (32,277.8 ) $ (1,399.4 ) $ - $ 53.7 $ (33,623.5 ) Net Product Rights and Other Intangibles $ 43,695.4 $ 42,264.6 |
Schedule of Annual Amortization Expense on Product Rights and Other Related Intangibles | Assuming no additions, disposals or adjustments are made to the carrying values and/or useful lives of the intangible assets, annual amortization expense on product rights and other related intangibles as of March 31, 2019 over the remainder of 2019 and each of the next five years is estimated to be as follows ($ in millions): Amortization Expense 2019 remaining $ 4,188.7 2020 $ 5,344.1 2021 $ 4,416.5 2022 $ 4,069.2 2023 $ 3,659.9 2024 $ 2,828.8 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Debt consisted of the following ($ in millions): Balance As of Fair Market Value As of Guarantor Issuance Date / Acquisition Date Interest Payments March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Senior Notes: Floating Rate Notes $500.0 million floating rate notes due March 12, 2020 (1) (4) March 4, 2015 Quarterly 500.0 500.0 503.8 501.9 500.0 500.0 503.8 501.9 Fixed Rate Notes $3,500.0 million 3.000% notes due March 12, 2020 (4) March 4, 2015 Semi-annually 2,623.8 2,706.7 2,622.0 2,694.8 $650.0 million 3.375% notes due September 15, 2020 (5) March 17, 2015 Semi-annually 650.0 650.0 653.1 648.7 $750.0 million 4.875% notes due February 15, 2021 (6) July 1, 2014 Semi-annually 450.0 450.0 461.3 459.4 $1,200.0 million 5.000% notes due December 15, 2021 (6) July 1, 2014 Semi-annually 1,200.0 1,200.0 1,247.9 1,234.8 $3,000.0 million 3.450% notes due March 15, 2022 (4) March 4, 2015 Semi-annually 2,878.2 2,940.5 2,896.9 2,891.0 $1,700.0 million 3.250% notes due October 1, 2022 (5) October 2, 2012 Semi-annually 1,700.0 1,700.0 1,699.8 1,652.2 $350.0 million 2.800% notes due March 15, 2023 (5) March 17, 2015 Semi-annually 350.0 350.0 349.0 332.8 $1,200.0 million 3.850% notes due June 15, 2024 (4) June 10, 2014 Semi-annually 1,036.7 1,036.7 1,048.6 1,021.0 $4,000.0 million 3.800% notes due March 15, 2025 (4) March 4, 2015 Semi-annually 3,020.7 3,027.5 3,050.6 2,956.0 $2,500.0 million 4.550% notes due March 15, 2035 (4) March 4, 2015 Semi-annually 1,789.0 1,789.0 1,748.0 1,690.7 $1,000.0 million 4.625% notes due October 1, 2042 (5) October 2, 2012 Semi-annually 456.7 456.7 432.2 412.4 $1,500.0 million 4.850% notes due June 15, 2044 (4) June 10, 2014 Semi-annually 1,079.4 1,079.4 1,070.6 1,019.1 $2,500.0 million 4.750% notes due March 15, 2045 (4) March 4, 2015 Semi-annually 881.0 881.0 867.2 836.6 18,115.5 18,267.5 18,147.2 17,849.5 Euro Denominated Notes €700.0 million floating rate notes due June 1, 2019 (2) (4) May 26, 2017 Quarterly 785.3 802.7 785.5 794.9 €700.0 million floating rate notes due November 15, 2020 (3) (4) November 15, 2018 Quarterly 785.3 802.7 782.6 791.3 €750.0 million 0.500% notes due June 1, 2021 (4) May 26, 2017 Annually 841.4 860.0 844.7 849.7 €500.0 million 1.500% notes due November 15, 2023 (4) November 15, 2018 Annually 560.9 573.4 575.2 572.4 €700.0 million 1.250% notes due June 1, 2024 (4) May 26, 2017 Annually 785.3 802.7 789.2 775.5 €500.0 million 2.625% notes due November 15, 2028 (4) November 15, 2018 Annually 560.9 573.4 593.6 573.4 €550.0 million 2.125% notes due June 1, 2029 (4) May 26, 2017 Annually 617.0 630.7 618.8 594.7 4,936.1 5,045.6 4,989.6 4,951.9 Total Senior Notes Gross 23,551.6 23,813.1 23,640.6 23,303.3 Unamortized premium 58.1 64.3 - - Unamortized discount (61.8 ) (64.5 ) - - Total Senior Notes Net $ 23,547.9 $ 23,812.9 $ 23,640.6 $ 23,303.3 Other Indebtedness Debt Issuance Costs (86.7 ) (92.1 ) Other 64.7 69.3 Total Other Borrowings (22.0 ) (22.8 ) Capital Leases n.a. 7.6 Total Indebtedness $ 23,525.9 $ 23,797.7 (1) (2) (3) (4) (5) (6) |
Schedule of Debt Redeemed and Retired | During the three months ended March 31, 2019, the Company redeemed and retired the following senior notes ($ in millions): Three Months Ended March 31, 2019 Tranche Face Value Retired Cash Paid for Retirement Remaining Value at March 31, 2019 3.000% due 2020 $ 82.9 $ 82.9 $ 2,623.8 3.450% due 2022 62.3 62.3 2,878.2 3.800% due 2025 6.8 6.8 3,020.7 Total $ 152.0 $ 152.0 $ 8,522.7 |
Schedule of Annual Debt Maturities | As of March 31, 2019, annual debt maturities of senior notes gross were as follows ($ in millions): Total Payments 2019 remaining $ 785.3 2020 4,559.1 2021 2,491.4 2022 4,578.2 2023 910.9 2024 1,822.0 2025 and after 8,404.7 Total senior notes gross $ 23,551.6 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of Operating ROU Assets and liabilities | As of March 31, 2019, the Company had the following operating ROU assets and lease liabilities ($ in millions): March 31, 2019 ROU Asset Lease Liability Real estate $ 295.8 $ 361.0 Fleet 102.7 102.7 Other 56.9 67.6 Total operating leases $ 455.4 $ 531.3 March 31, 2019 Current lease liability - operating $ 116.1 Long-term lease liability - operating 415.2 Total lease liability - operating $ 531.3 |
Schedule of Lease Expense | For the three months ended March 31, 2019, the Company noted the following lease expense ($ in millions): Three Months Ended March 31, 2019 Operating lease expense* $ 32.3 Sublease (income) (3.4 ) Net operating lease expense $ 28.9 * Includes short-term and variable lease expenses of $0.9 million. |
Schedule of Lease Commitments | As of March 31, 2019, the Company had the following lease commitments ($ in millions): Total Payments 2019 remaining $ 93.1 2020 111.6 2021 86.6 2022 57.0 2023 43.9 2024 37.5 2025 and after 148.1 Total undiscounted cash flows $ 577.8 Future interest (46.5 ) Total lease liability - operating $ 531.3 |
Schedule of Future Minimum Property Lease Rental Payments under Capital and Operating Leases | As of December 31, 2018, the future anticipated property lease rental payments under both capital and operating leases that had remaining terms in excess of one year were ($ in millions): Total Payments 2019 $ 62.5 2020 52.5 2021 47.9 2022 43.3 2023 39.0 Thereafter 173.8 Total minimum lease payments $ 419.0 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Long-Term Liabilities | Other long-term liabilities consisted of the following ($ in millions): March 31, December 31, 2019 2018 Acquisition related contingent consideration liabilities $ 351.8 $ 336.3 Long-term pension and post retirement liability 170.3 166.5 Legacy Allergan deferred executive compensation 94.5 90.8 Accrued R&D milestone 75.0 75.0 Deferred revenue 33.5 36.1 Product warranties 28.8 27.9 Long-term severance and restructuring liabilities 10.9 14.2 Long-term contractual obligations - 43.2 Other long-term liabilities 39.6 92.0 Total other long-term liabilities $ 804.4 $ 882.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Acquired U.S. Entities and Taxable Years that are Currently under Audit by IRS | The Company has several concurrent audits open and pending with the IRS as set forth below: IRS Audits Taxable Years Allergan W.C. Holding Inc. f/k/a Actavis W.C. Holding Inc. 2013, 2014, 2015 and 2016 Warner Chilcott Corporation 2010, 2011, 2012 and 2013 Forest Laboratories, Inc. 2010, 2011, 2012, 2013 and 2014 Allergan, Inc. 2009, 2010, 2011, 2012, 2013, 2014 and 3/17/2015 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value using Fair Value Leveling or Disclosed at Fair Value on Recurring Basis | Assets and liabilities that are measured at fair value using Fair Value Leveling or that are disclosed at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 consisted of the following ($ in millions): Fair Value Measurements as of March 31, 2019 Using: Total Level 1 Level 2 Level 3 Assets: Cash equivalents* $ 331.4 $ 83.0 $ 248.4 $ - Short-term investments 995.2 - 995.2 - Deferred executive compensation investments 94.5 78.6 15.9 - Royalty receivable 50.3 - - 50.3 Investments and other 57.9 48.0 9.9 - Total assets $ 1,529.3 $ 209.6 $ 1,269.4 $ 50.3 Liabilities: Deferred executive compensation liabilities $ 94.5 $ 78.6 $ 15.9 $ - Contingent consideration obligations 361.2 - - 361.2 Total liabilities $ 455.7 $ 78.6 $ 15.9 $ 361.2 * Marketable securities with less than 90 days remaining until maturity at the time of acquisition are classified as cash equivalents. Fair Value Measurements as of December 31, 2018 Using: Total Level 1 Level 2 Level 3 Assets: Cash equivalents* $ 207.1 $ 207.1 $ - $ - Short-term investments 1,026.9 - 1,026.9 - Deferred executive compensation investments 90.8 73.8 17.0 - Royalty receivable 50.3 - - 50.3 Investments and other 46.0 38.5 7.5 - Total assets $ 1,421.1 $ 319.4 $ 1,051.4 $ 50.3 Liabilities: Deferred executive compensation liabilities $ 90.8 $ 73.8 $ 17.0 $ - Contingent consideration obligations 344.6 - - 344.6 Total liabilities $ 435.4 $ 73.8 $ 17.0 $ 344.6 * Marketable securities with less than 90 days remaining until maturity at the time of acquisition are classified as cash equivalents. |
Change in Fair Value of Contingent Consideration Obligations | Changes in the fair value of the contingent consideration obligations, including accretion, are recorded in our consolidated statements of operations as follows ($ in millions): Three Months Ended March 31, Expense / (income) 2019 2018 Cost of sales $ 16.2 $ 3.4 Research and development 2.5 1.9 Total $ 18.7 $ 5.3 |
Summary of Changes in Fair Value of all Financial Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2019 and 2018 ($ in millions): Balance as of December 31, 2018 Net transfers in to (out of) Level 3 Purchases, settlements, and other net Net accretion and fair value adjustments Balance as of March 31, 2019 Liabilities: Contingent consideration obligations $ 344.6 $ - $ (2.1 ) $ 18.7 $ 361.2 Balance as of December 31, 2017 Net transfers in to (out of) Level 3 Purchases, settlements, and other net Net accretion and fair value adjustments Balance as of March 31, 2018 Liabilities: Contingent consideration obligations $ 476.9 $ - $ (9.3 ) $ 5.3 $ 472.9 |
Schedule of Contingent Consideration Obligations by Acquisitions | During the three months ended March 31, 2019, the activity in contingent consideration obligations by acquisition consisted of the following ($ in millions): Business Acquisition Balance as of December 31, 2018 Fair Value Adjustments and Accretion Payments and Other Balance as of March 31, 2019 Tobira acquisition $ 255.0 $ 2.3 $ - $ 257.3 Medicines 360 acquisition 43.1 13.9 (1.4 ) 55.6 ForSight acquisition 24.1 0.2 0.1 24.4 Forest acquisition 13.6 2.3 (0.5 ) 15.4 AqueSys acquisition 5.4 - - 5.4 Oculeve acquisition 1.7 - - 1.7 Other 1.7 - (0.3 ) 1.4 Total $ 344.6 $ 18.7 $ (2.1 ) $ 361.2 |
Business Restructuring Charges
Business Restructuring Charges (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Activity Related to Business Restructuring and Facility Rationalization Activities | Restructuring activities for the three months ended March 31, 2019 were as follows ($ in millions): Severance and Retention Other Total Reserve balance at December 31, 2018 $ 71.4 $ 14.4 $ 85.8 Charged to expense Cost of sales 1.1 - 1.1 General and administrative 0.8 0.1 0.9 Total expense 1.9 0.1 2.0 Cash payments (38.1 ) - (38.1 ) Non-cash adjustments (2.1 ) - (2.1 ) Reserve balance at March 31, 2019 $ 33.1 $ 14.5 $ 47.6 |
Warner Chilcott Limited ("WCL_2
Warner Chilcott Limited ("WCL") Guarantor and Non-Guarantor Condensed Consolidating Financial Information (Tables) - Warner Chilcott Acquisition [Member] | 3 Months Ended |
Mar. 31, 2019 | |
Consolidating Balance Sheets | Warner Chilcott Limited Consolidating Balance Sheets As of March 31, 2019 (Unaudited; in millions) Warner Chilcott Limited (Parent Guarantor) Allergan Capital S.a.r.l. (Guarantor) Allergan Funding SCS (Issuer) Allergan Finance, LLC (Issuer and Guarantor) Non- guarantors Eliminations Consolidated Warner Chilcott Limited ASSETS Current assets: Cash and cash equivalents $ 0.1 $ 60.4 $ 1.3 $ - $ 724.9 $ - $ 786.7 Marketable securities - 200.5 - - 794.7 - 995.2 Accounts receivable, net - - - - 2,731.2 - 2,731.2 Receivables from Parents - - - - 814.1 - 814.1 Inventories - - - - 943.2 - 943.2 Intercompany receivables - 4,089.7 597.5 33.7 27,471.6 (32,192.5 ) - Current assets held for sale - - - - 45.7 - 45.7 Prepaid expenses and other current assets - - - 33.3 747.6 - 780.9 Total current assets 0.1 4,350.6 598.8 67.0 34,273.0 (32,192.5 ) 7,097.0 Property, plant and equipment, net - - - - 1,781.1 - 1,781.1 Right of use asset - operating leases - - - - 455.4 - 455.4 Investments and other assets - - - - 1,979.5 - 1,979.5 Investment in subsidiaries 59,338.6 67,744.4 25,425.0 96,294.5 - (248,802.5 ) - Non current intercompany receivables - 15,603.7 - - 1,082.9 (16,686.6 ) - Non current assets held for sale - - - - 897.2 - 897.2 Deferred tax assets - 51.4 - - 981.2 - 1,032.6 Product rights and other intangibles - - - - 42,264.6 - 42,264.6 Goodwill - - - - 43,336.6 - 43,336.6 Total assets $ 59,338.7 $ 87,750.1 $ 26,023.8 $ 96,361.5 $ 127,051.5 $ (297,681.6 ) $ 98,844.0 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued expenses - 0.1 103.0 118.9 4,412.3 - 4,634.3 Intercompany payables - 17,016.3 12.2 10,443.1 4,720.9 (32,192.5 ) - Payables to Parents - - - - 3,034.9 - 3,034.9 Income taxes payable - - 3.9 - 123.0 - 126.9 Current portion of long-term debt - - 3,887.2 - 84.6 - 3,971.8 Current portion of lease liability - operating - - - - 116.1 - 116.1 Total current liabilities - 17,016.4 4,006.3 10,562.0 12,491.8 (32,192.5 ) 11,884.0 Long-term debt - - 14,738.2 2,140.2 2,675.7 - 19,554.1 Lease liability - operating - - - - 415.2 - 415.2 Other long-term liabilities - - - - 804.4 - 804.4 Long-term intercompany payables - - - 1,082.9 15,603.7 (16,686.6 ) - Other taxes payable - - - - 1,612.0 - 1,612.0 Deferred tax liabilities - - - - 5,235.6 - 5,235.6 Total liabilities - 17,016.4 18,744.5 13,785.1 38,838.4 (48,879.1 ) 39,505.3 Total equity / (deficit) 59,338.7 70,733.7 7,279.3 82,576.4 88,213.1 (248,802.5 ) 59,338.7 Total liabilities and equity $ 59,338.7 $ 87,750.1 $ 26,023.8 $ 96,361.5 $ 127,051.5 $ (297,681.6 ) $ 98,844.0 Warner Chilcott Limited Consolidating Balance Sheets As of December 31, 2018 (Unaudited; in millions) Warner Chilcott Limited (Parent Guarantor) Allergan Capital S.a.r.l. (Guarantor) Allergan Funding SCS (Issuer) Allergan Finance, LLC (Issuer and Guarantor) Non- guarantors Eliminations Consolidated Warner Chilcott Limited ASSETS Current assets: Cash and cash equivalents $ 0.1 $ 1.8 $ 0.8 $ - $ 875.9 $ - $ 878.6 Marketable securities - 489.9 - - 537.0 - 1,026.9 Accounts receivable, net - - - - 2,868.1 - 2,868.1 Receivables from Parents - - - 640.9 - 640.9 Inventories - - - - 846.9 - 846.9 Intercompany receivables - 3,534.7 961.0 16.7 24,779.3 (29,291.7 ) - Current assets held for sale - - - - 34.0 - 34.0 Prepaid expenses and other current assets - - - 33.3 785.4 - 818.7 Total current assets 0.1 4,026.4 961.8 50.0 31,367.5 (29,291.7 ) 7,114.1 Property, plant and equipment, net - - - - 1,787.0 - 1,787.0 Investments and other assets - - - - 1,970.6 - 1,970.6 Investment in subsidiaries 62,940.2 73,846.0 26,406.9 99,255.9 - (262,449.0 ) - Non current intercompany receivables - 28,239.4 18,090.2 - 19,674.2 (66,003.8 ) - Non current assets held for sale - - - - 882.2 - 882.2 Deferred tax assets - 43.6 - - 1,020.1 - 1,063.7 Product rights and other intangibles - - - - 43,695.4 - 43,695.4 Goodwill - - - - 45,913.3 - 45,913.3 Total assets $ 62,940.3 $ 106,155.4 $ 45,458.9 $ 99,305.9 $ 146,310.3 $ (357,744.5 ) $ 102,426.3 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued expenses - 0.1 156.3 92.9 4,538.1 - 4,787.4 Intercompany payables - 14,315.0 21.7 10,442.6 4,512.4 (29,291.7 ) - Payables to Parents - - - - 2,829.2 - 2,829.2 Income taxes payable - - - - 72.4 - 72.4 Current portion of long-term debt - - 779.6 - 88.7 - 868.3 Total current liabilities - 14,315.1 957.6 10,535.5 12,040.8 (29,291.7 ) 8,557.3 Long-term debt - - 18,090.2 2,135.9 2,703.3 - 22,929.4 Other long-term liabilities - - - - 882.0 - 882.0 Long-term intercompany payables - 18,597.4 - 1,076.8 46,329.6 (66,003.8 ) - Other taxes payable - - - - 1,615.5 - 1,615.5 Deferred tax liabilities - - - - 5,501.8 - 5,501.8 Total liabilities - 32,912.5 19,047.8 13,748.2 69,073.0 (95,295.5 ) 39,486.0 Total equity / (deficit) 62,940.3 73,242.9 26,411.1 85,557.7 77,237.3 (262,449.0 ) 62,940.3 Total liabilities and equity $ 62,940.3 $ 106,155.4 $ 45,458.9 $ 99,305.9 $ 146,310.3 $ (357,744.5 ) $ 102,426.3 |
Consolidating Statements of Operations | Warner Chilcott Limited Consolidating Statements of Operations For the Three Months Ended March 31, 2019 (Unaudited; in millions) Warner Chilcott Limited (Parent Guarantor) Allergan Capital S.a.r.l. (Guarantor) Allergan Funding SCS (Issuer) Allergan Finance, LLC (Issuer and Guarantor) Non- guarantors Eliminations Consolidated Warner Chilcott Limited Net revenues $ - $ - $ - $ - $ 3,597.1 $ - $ 3,597.1 Operating expenses: Cost of sales (excludes amortization and impairment of acquired intangibles including product rights) - - - - 497.8 - 497.8 Research and development - - - - 435.0 - 435.0 Selling and marketing - - - - 804.0 - 804.0 General and administrative - - - - 306.1 - 306.1 Amortization - - - - 1,399.4 - 1,399.4 Goodwill impairments - - - - 2,467.0 - 2,467.0 Asset sales and impairments, net - - - - (5.2 ) - (5.2 ) Total operating expenses - - - - 5,904.1 - 5,904.1 Operating (loss) - - - - (2,307.0 ) - (2,307.0 ) Interest (expense), net - (23.4 ) (59.6 ) (19.9 ) (77.6 ) - (180.5 ) Other (expense) / income, net - - (0.1 ) - 13.9 - 13.8 Total other (expense), net - (23.4 ) (59.7 ) (19.9 ) (63.7 ) - (166.7 ) (Loss) before income taxes and noncontrolling interest - (23.4 ) (59.7 ) (19.9 ) (2,370.7 ) - (2,473.7 ) (Benefit) for income taxes - - - - (68.7 ) - (68.7 ) Losses / (earnings) of equity interest subsidiaries 2,405.7 2,345.0 809.3 2,377.4 - (7,937.4 ) - Net (loss) / income $ (2,405.7 ) $ (2,368.4 ) $ (869.0 ) $ (2,397.3 ) $ (2,302.0 ) $ 7,937.4 $ (2,405.0 ) (Income) attributable to noncontrolling interest - - - - (0.7 ) - (0.7 ) Net (loss) / income attributable to members $ (2,405.7 ) $ (2,368.4 ) $ (869.0 ) $ (2,397.3 ) $ (2,302.7 ) $ 7,937.4 $ (2,405.7 ) Other comprehensive (loss) / income, net of tax (128.8 ) (140.8 ) (172.6 ) (584.0 ) (128.8 ) 1,026.2 (128.8 ) Comprehensive (loss) / income attributable to members $ (2,534.5 ) $ (2,509.2 ) $ (1,041.6 ) $ (2,981.3 ) $ (2,431.5 ) $ 8,963.6 $ (2,534.5 ) Warner Chilcott Limited Consolidating Statements of Operations For the Three Months Ended March 31, 2018 (Unaudited; in millions) Warner Chilcott Limited (Parent Guarantor) Allergan Capital S.a.r.l. (Guarantor) Allergan Funding SCS (Issuer) Allergan Finance, LLC (Issuer and Guarantor) Non- guarantors Eliminations Consolidated Warner Chilcott Limited Net revenues $ - $ - $ - $ - $ 3,672.1 $ - $ 3,672.1 Operating expenses: Cost of sales (excludes amortization and impairment of acquired intangibles including product rights) - - - - 522.8 - 522.8 Research and development - - - - 474.7 - 474.7 Selling and marketing - - - - 800.0 - 800.0 General and administrative - - (0.7 ) - 294.8 - 294.1 Amortization - - - - 1,697.6 - 1,697.6 In-process research and development impairments - - - - 522.0 - 522.0 Asset sales and impairments, net - - - - 13.1 - 13.1 Total operating expenses - - (0.7 ) - 4,325.0 - 4,324.3 Operating income / (loss) - - 0.7 - (652.9 ) - (652.2 ) Interest income / (expense), net - 259.0 (3.3 ) (21.2 ) (414.8 ) - (180.3 ) Other (expense), net - - - - (78.8 ) - (78.8 ) Total other income / (expense), net - 259.0 (3.3 ) (21.2 ) (493.6 ) - (259.1 ) Income / (loss) before income taxes and noncontrolling interest - 259.0 (2.6 ) (21.2 ) (1,146.5 ) - (911.3 ) Provision / (benefit) for income taxes - - 0.3 (12.2 ) (670.3 ) - (682.2 ) Losses / (earnings) of equity interest subsidiaries 231.3 506.0 331.7 645.3 - (1,714.3 ) - Net (loss) / income $ (231.3 ) $ (247.0 ) $ (334.6 ) $ (654.3 ) $ (476.2 ) $ 1,714.3 $ (229.1 ) (Income) attributable to noncontrolling interest - - - - (2.2 ) - (2.2 ) Net (loss) / income attributable to members $ (231.3 ) $ (247.0 ) $ (334.6 ) $ (654.3 ) $ (478.4 ) $ 1,714.3 $ (231.3 ) Other comprehensive income / (loss), net of tax 183.8 270.6 118.5 358.5 183.8 (931.4 ) 183.8 Comprehensive (loss) / income attributable to members $ (47.5 ) $ 23.6 $ (216.1 ) $ (295.8 ) $ (294.6 ) $ 782.9 $ (47.5 ) |
Consolidating Statement of Cash Flows | Warner Chilcott Limited Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2019 (Unaudited; in millions) Warner Chilcott Limited (Parent Guarantor) Allergan Capital S.a.r.l. (Guarantor) Allergan Funding SCS (Issuer) Allergan Finance, LLC (Issuer and Guarantor) Non- guarantors Eliminations Consolidated Warner Chilcott Limited Cash Flows From Operating Activities: Net (loss) / income $ (2,405.7 ) $ (2,368.4 ) $ (869.0 ) $ (2,397.3 ) $ (2,302.0 ) $ 7,937.4 $ (2,405.0 ) Reconciliation to net cash provided by / (used in) operating activities: Losses / (earnings) of equity interest subsidiaries 2,405.7 2,345.0 809.3 2,377.4 - (7,937.4 ) - Depreciation - - - - 47.5 - 47.5 Amortization - - - - 1,399.4 - 1,399.4 Provision for inventory reserve - - - - 18.8 - 18.8 Share-based compensation - - - - 52.3 - 52.3 Deferred income tax benefit - - - - (229.7 ) - (229.7 ) Goodwill impairments - - - - 2,467.0 2,467.0 (Gain) on asset sales and impairments, net - - - - (5.2 ) - (5.2 ) Non-cash extinguishment of debt - - - - 0.3 - 0.3 Amortization of deferred financing costs - - 4.1 0.4 0.1 - 4.6 Non-cash lease expense - - - - 30.1 - 30.1 Contingent consideration adjustments, including accretion - - - - 18.7 - 18.7 Dividends from subsidiaries 1,045.8 - - - - (1,045.8 ) - Other, net - - (1.3 ) (0.4 ) (8.6 ) - (10.3 ) Changes in assets and liabilities (net of effects of acquisitions) - (207.4 ) 209.4 19.9 (196.2 ) - (174.3 ) Net cash provided by / (used in) operating activities 1,045.8 (230.8 ) 152.5 - 1,292.5 (1,045.8 ) 1,214.2 Cash Flows From Investing Activities: Additions to property, plant and equipment - - - - (64.8 ) - (64.8 ) Additions to product rights and other intangibles - - - - (7.5 ) - (7.5 ) Additions to investments - - - - (538.2 ) - (538.2 ) Proceeds from sale of investments and other assets - 289.4 - - 279.7 - 569.1 Proceeds from sales of property, plant and equipment - - - - 17.2 - 17.2 Acquisitions of businesses, net of cash acquired - - - - (80.6 ) - (80.6 ) Net cash provided by / (used in) investing activities - 289.4 - - (394.2 ) - (104.8 ) Cash Flows From Financing Activities: Payments on debt, including finance lease obligations and credit facility - - (152.0 ) - (7.4 ) - (159.4 ) Payments of contingent consideration and other financing - - - - (2.0 ) - (2.0 ) Dividends to Parents (1,045.8 ) - - - (1,045.8 ) 1,045.8 (1,045.8 ) Net cash (used in) / provided by financing activities (1,045.8 ) - (152.0 ) - (1,055.2 ) 1,045.8 (1,207.2 ) Effect of currency exchange rate changes on cash and cash equivalents - - - - 5.9 - 5.9 Net increase / (decrease) in cash and cash equivalents - 58.6 0.5 - (151.0 ) - (91.9 ) Cash and cash equivalents at beginning of period 0.1 1.8 0.8 - 875.9 - 878.6 Cash and cash equivalents at end of period $ 0.1 $ 60.4 $ 1.3 $ - $ 724.9 $ - $ 786.7 Warner Chilcott Limited Consolidating Statements of Cash Flows For the Three Months Ended March 31, 2018 (Unaudited; in millions) Warner Chilcott Limited (Parent Guarantor) Allergan Capital S.a.r.l. (Guarantor) Allergan Funding SCS (Issuer) Allergan Finance, LLC (Issuer and Guarantor) Non- guarantors Eliminations Consolidated Warner Chilcott Limited Cash Flows From Operating Activities: Net (loss) / income $ (231.3 ) $ (247.0 ) $ (334.6 ) $ (654.3 ) $ (476.2 ) $ 1,714.3 $ (229.1 ) Reconciliation to net cash provided by / (used in) operating activities: Losses / (earnings) of equity interest subsidiaries 231.3 506.0 331.7 645.3 - (1,714.3 ) - Depreciation - - - - 56.1 - 56.1 Amortization - - - - 1,697.6 - 1,697.6 Provision for inventory reserve - - - - 14.2 - 14.2 Share-based compensation - - - - 72.5 - 72.5 Deferred income tax benefit - - - - (1,026.4 ) - (1,026.4 ) In-process research and development impairments - - - - 522.0 - 522.0 Loss on asset sales and impairments, net - - - - 13.1 - 13.1 Loss on sale of Teva securities, net - - - - 77.7 - 77.7 Amortization of deferred financing costs - - 5.9 0.4 - - 6.3 Contingent consideration adjustments, including accretion - - - - 5.3 - 5.3 Dividends from subsidiaries 1,859.5 - - - - (1,859.5 ) - Other, net - - (1.5 ) (0.4 ) 8.4 - 6.5 Changes in assets and liabilities (net of effects of acquisitions) - (1,675.2 ) 3,498.5 9.0 (1,453.5 ) - 378.8 Net cash provided by / (used in) operating activities 1,859.5 (1,416.2 ) 3,500.0 - (489.2 ) (1,859.5 ) 1,594.6 Cash Flows From Investing Activities: Additions to property, plant and equipment - - - - (46.4 ) - (46.4 ) Additions to investments - (400.0 ) - - (1,055.9 ) - (1,455.9 ) Proceeds from sale of investments and other assets - 800.0 - - 4,089.5 - 4,889.5 Payments to settle Teva related matters - - - - (466.0 ) - (466.0 ) Proceeds from sales of property, plant and equipment - - - - 11.1 - 11.1 Net cash provided by investing activities - 400.0 - - 2,532.3 - 2,932.3 Cash Flows From Financing Activities: Proceeds from borrowings of long-term indebtedness, including credit facility - 700.0 - - 9.0 - 709.0 Payments on debt, including finance lease obligations and credit facility - (200.0 ) (3,500.0 ) - (622.1 ) - (4,322.1 ) Payments of contingent consideration and other financing - - - - (9.3 ) - (9.3 ) Proceeds from forward sale of Teva securities - - - - 372.3 - 372.3 Payments to settle Teva related matters - - - - (234.0 ) - (234.0 ) Dividends to Parents (1,859.5 ) - - - (1,859.5 ) 1,859.5 (1,859.5 ) Net cash (used in) / provided by financing activities (1,859.5 ) 500.0 (3,500.0 ) - (2,343.6 ) 1,859.5 (5,343.6 ) Effect of currency exchange rate changes on cash and cash equivalents - - - - (5.3 ) - (5.3 ) Net (decrease) in cash and cash equivalents - (516.2 ) - - (305.8 ) - (822.0 ) Cash and cash equivalents at beginning of period 0.1 593.1 0.1 - 1,223.0 - 1,816.3 Cash and cash equivalents at end of period $ 0.1 $ 76.9 $ 0.1 $ - $ 917.2 $ - $ 994.3 |
General - Additional Informatio
General - Additional Information (Detail) | Sep. 30, 2018Country |
Segment Reporting [Abstract] | |
Number of operating countries | 100 |
Reconciliation of Warner Chil_3
Reconciliation of Warner Chilcott Limited Results to Allergan Plc Results - Summary of Financial Position Reconciliation Results of Warner Chilcott Limited to Allergan Plc (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule Of Reconciliation Of Subsidiary Results [Line Items] | ||||
Cash and cash equivalents | $ 788.5 | $ 880.4 | $ 994.8 | $ 1,817.2 |
Prepaid expenses and other current assets | 785.5 | 819.1 | ||
Accounts payable and accrued liabilities | 4,634.4 | 4,787.2 | ||
Other taxes payable | 1,618.2 | 1,615.5 | ||
Total equity | 61,559.6 | 65,131 | 72,346 | 73,837.1 |
Warner Chilcott Limited [Member] | ||||
Schedule Of Reconciliation Of Subsidiary Results [Line Items] | ||||
Cash and cash equivalents | 786.7 | 878.6 | 994.3 | 1,816.3 |
Prepaid expenses and other current assets | 780.9 | 818.7 | ||
Accounts payable and accrued liabilities | 4,634.3 | 4,787.4 | ||
Other taxes payable | 1,612 | 1,615.5 | ||
Total equity | 59,338.7 | 62,940.3 | $ 79,739 | $ 81,282.2 |
Difference [Member] | ||||
Schedule Of Reconciliation Of Subsidiary Results [Line Items] | ||||
Cash and cash equivalents | 1.8 | 1.8 | ||
Prepaid expenses and other current assets | 4.6 | 0.4 | ||
Accounts payable and accrued liabilities | 0.1 | (0.2) | ||
Other taxes payable | 6.2 | |||
Total equity | $ 2,220.9 | $ 2,190.7 |
Reconciliation of Warner Chil_4
Reconciliation of Warner Chilcott Limited Results to Allergan Plc Results - Summary of Operations Reconciliation Results of Warner Chilcott Limited to Allergan Plc (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule Of Reconciliation Of Subsidiary Results [Line Items] | ||
General and administrative expenses | $ 308.3 | $ 295.9 |
Operating (loss) | (2,309.2) | (654) |
Interest income | 21.3 | 17.3 |
(Loss) before income taxes and noncontrolling interest | (2,475.9) | (966.1) |
Net (loss) | (2,407.3) | (283.9) |
Dividends on preferred shares | 46.4 | |
Net (loss) attributable to ordinary shareholders/members | (2,408) | (332.5) |
Warner Chilcott Limited [Member] | ||
Schedule Of Reconciliation Of Subsidiary Results [Line Items] | ||
General and administrative expenses | 306.1 | 294.1 |
Operating (loss) | (2,307) | (652.2) |
Interest income | 21.3 | 70.3 |
(Loss) before income taxes and noncontrolling interest | (2,473.7) | (911.3) |
Net (loss) | (2,405) | (229.1) |
Net (loss) attributable to ordinary shareholders/members | (2,405.7) | (231.3) |
Difference [Member] | ||
Schedule Of Reconciliation Of Subsidiary Results [Line Items] | ||
General and administrative expenses | 2.2 | 1.8 |
Operating (loss) | (2.2) | (1.8) |
Interest income | (53) | |
(Loss) before income taxes and noncontrolling interest | (2.2) | (54.8) |
Net (loss) | (2.3) | (54.8) |
Dividends on preferred shares | 46.4 | |
Net (loss) attributable to ordinary shareholders/members | $ (2.3) | $ (101.2) |
Reconciliation of Warner Chil_5
Reconciliation of Warner Chilcott Limited Results to Allergan Plc Results - Additional Information (Detail) - Warner Chilcott Limited [Member] - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Schedule Of Reconciliation Of Subsidiary Results [Line Items] | |||
Receivable from Parents | $ 814.1 | $ 640.9 | $ 5,700 |
Non current receivables from Parents | $ 4,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Recognized Lease Liabilities and Corresponding Righ of use Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 |
Right of use asset - operating leases | $ 455.4 | $ 462.1 |
Lease Liability | 531.3 | 548.6 |
Real Estate [Member] | ||
Right of use asset - operating leases | 295.8 | 304.2 |
Lease Liability | $ 361 | 370.6 |
Fleet [Member] | ||
Right of use asset - operating leases | 100.4 | |
Lease Liability | 100.4 | |
Other [Member] | ||
Right of use asset - operating leases | 57.5 | |
Lease Liability | $ 77.6 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 01, 2018 |
Summary Of Significant Accounting Policies [Line Items] | ||||
Implementation of new accounting pronouncements | $ 63 | |||
Shares repurchased | 5,300,000 | 9,600,000 | ||
Repurchase of share on EPS basis | 700,000 | 2,000,000 | ||
Conversion of preferred stock to ordinary shares | 3.53 | |||
Ordinary Shares [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Shares not included in the computation of diluted EPS | 11,700,000 | |||
Shares repurchased | 200,000 | 100,000 | ||
Conversion of preferred stock to ordinary shares | 6,200,000 | |||
Stock Awards [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Shares not included in the computation of diluted EPS | 2,400,000 | 2,400,000 | ||
ASU 2016-02 [Member] | Adjustment [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Implementation of new accounting pronouncement | $ 22 | |||
ASC 606 [Member] | General and Administrative Expense [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Provision for bad debts | $ 3.4 | $ 10.1 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Provisions for Sales Returns and Allowances from Continuing Operations Activity (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Accounts payable and accrued expenses | $ 4,634.4 | $ 4,787.2 |
Chargebacks [Member] | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Balance at beginning of period | 61.8 | |
Provision related to sales in 2019 | 267.3 | |
Credits and payments | (262.9) | |
Balance at end of period | 66.2 | |
Contra accounts receivable at March 31, 2019 | 66.2 | |
Rebates [Member] | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Balance at beginning of period | 1,908.5 | |
Provision related to sales in 2019 | 1,396.5 | |
Credits and payments | (1,294.5) | |
Balance at end of period | 2,010.5 | |
Contra accounts receivable at March 31, 2019 | 69.4 | |
Accounts payable and accrued expenses | 1,941.1 | |
Returns and Other Allowances [Member] | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Balance at beginning of period | 566.6 | |
Provision related to sales in 2019 | 400.5 | |
Credits and payments | (361.7) | |
Balance at end of period | 605.4 | |
Contra accounts receivable at March 31, 2019 | 41 | |
Accounts payable and accrued expenses | 564.4 | |
Cash Discounts [Member] | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Balance at beginning of period | 30.7 | |
Provision related to sales in 2019 | 75.4 | |
Credits and payments | (78.6) | |
Balance at end of period | 27.5 | |
Contra accounts receivable at March 31, 2019 | 27.5 | |
Allowance for Sales Returns [Member] | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Balance at beginning of period | 2,567.6 | |
Provision related to sales in 2019 | 2,139.7 | |
Credits and payments | (1,997.7) | |
Balance at end of period | 2,709.6 | |
Contra accounts receivable at March 31, 2019 | 204.1 | 207.7 |
Accounts payable and accrued expenses | $ 2,505.5 | $ 2,359.9 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summarizes The Balance Sheet Classification of Our SRA Reserves (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Sales Return Allowance Reserve [Line Items] | ||
Accounts payable and accrued expenses | $ 4,634.4 | $ 4,787.2 |
Allowance for Sales Returns [Member] | ||
Sales Return Allowance Reserve [Line Items] | ||
Contra accounts receivable | 204.1 | 207.7 |
Accounts payable and accrued expenses | 2,505.5 | 2,359.9 |
Total | $ 2,709.6 | $ 2,567.6 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Activity in Gross-to-Net Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Net product sales | $ 3,597.1 | $ 3,672.1 |
Product [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Gross product sales | 5,659.9 | 5,616.1 |
Provisions to reduce gross product sales to net product sales | (2,139.7) | (2,035.1) |
Net product sales | $ 3,520.2 | $ 3,581 |
Percentage of SRA provisions to gross sales | 37.80% | 36.20% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net (loss): | ||
Net (loss) attributable to ordinary shareholders | $ (2,408) | $ (332.5) |
Basic weighted average ordinary shares outstanding | 332 | 334.6 |
Basic EPS: | ||
Net (loss) per share | $ (7.25) | $ (0.99) |
Dividends per ordinary share | $ 0.74 | $ 0.72 |
Diluted weighted average ordinary shares outstanding | 332 | 334.6 |
Diluted EPS: | ||
Net (loss) per share | $ (7.25) | $ (0.99) |
Acquisitions and Other Agreem_2
Acquisitions and Other Agreements - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Mar. 26, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Product rights and other intangibles | $ 42,264.6 | $ 43,695.4 | |
Goodwill | $ 43,336.6 | $ 45,913.3 | |
Envy Medical, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, transaction costs | $ 81.4 | ||
Product rights and other intangibles | 67.4 | ||
Goodwill | $ 34.1 |
Assets Held for Sale - Summary
Assets Held for Sale - Summary of Assets Held For Sale (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Assets held for sale: | ||
Inventories | $ 45.7 | $ 34 |
Property, plant and equipment, net | 32.8 | 32.8 |
Product rights and other intangibles | 864.4 | 849.4 |
Total assets held for sale | $ 942.9 | $ 916.2 |
Other Income _ (Expense) - Comp
Other Income / (Expense) - Components of Other (Expense) / Income, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Non Operating Income Expense [Line Items] | ||
Debt extinguishment other | $ (0.3) | |
Other income / (expense), net | 14.1 | $ (1.1) |
Other income / (expense), net | $ 13.8 | (78.8) |
Teva [Member] | ||
Other Non Operating Income Expense [Line Items] | ||
Net income impact of other-than-temporary loss on investment | $ (77.7) |
Other Income _ (Expense) - Addi
Other Income / (Expense) - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Other Income And Expenses [Abstract] | |
Mark to market gains on equity securities | $ 10.4 |
Other Income _ (Expense) - Summ
Other Income / (Expense) - Summary of Teva Share Activity (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Feb. 13, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Dec. 31, 2018 |
Other Non Operating Income Expense [Line Items] | |||||
Retained earnings | $ 4,582.8 | $ 7,258.9 | |||
Teva [Member] | |||||
Other Non Operating Income Expense [Line Items] | |||||
Shares | 59.4 | 95.9 | |||
Carrying Value per Share | $ 17.09 | $ 17.60 | |||
Market Price | $ 17.09 | $ 18.95 | |||
Proceeds Received | $ 372.3 | $ 1,015.5 | |||
Value of Marketable ecurities | 1,014.7 | $ 1,817.7 | |||
Unrealized Gain / (Loss) as a Component of Other Comprehensive Income | 129.3 | ||||
Gain / (Loss) Recognized in Other Income/ (Expense), Net | (77.7) | ||||
Derivative Instrument (Liability)/ Asset | (353.3) | $ (62.9) | |||
Retained earnings | 129.3 | ||||
Teva [Member] | Accounting Standards Update No. 2016-01 [Member] | |||||
Other Non Operating Income Expense [Line Items] | |||||
Unrealized Gain / (Loss) as a Component of Other Comprehensive Income | (129.3) | ||||
Retained earnings | $ 129.3 | ||||
Teva [Member] | Settlement of Initial Accelerated Share Repurchase ("ASR"), Net [Member] | |||||
Other Non Operating Income Expense [Line Items] | |||||
Shares | (25) | ||||
Carrying Value per Share | $ 18.95 | ||||
Market Price | $ 16.53 | ||||
Proceeds Received | $ 413.3 | ||||
Value of Marketable ecurities | (473.8) | ||||
Gain / (Loss) Recognized in Other Income/ (Expense), Net | 2.5 | ||||
Derivative Instrument (Liability)/ Asset | 62.9 | ||||
Teva [Member] | Settlement of Forward Sale, Net [Member] | |||||
Other Non Operating Income Expense [Line Items] | |||||
Proceeds Received | 372.3 | ||||
Gain / (Loss) Recognized in Other Income/ (Expense), Net | 19 | ||||
Derivative Instrument (Liability)/ Asset | $ (353.3) | ||||
Teva [Member] | Open Market Sales [Member] | |||||
Other Non Operating Income Expense [Line Items] | |||||
Shares | (11.5) | ||||
Market Price | $ 19.95 | ||||
Proceeds Received | $ 229.9 | ||||
Value of Marketable ecurities | (218.5) | ||||
Gain / (Loss) Recognized in Other Income/ (Expense), Net | 11.5 | ||||
Teva [Member] | Other Fair Value [Member] | |||||
Other Non Operating Income Expense [Line Items] | |||||
Value of Marketable ecurities | (110.7) | ||||
Gain / (Loss) Recognized in Other Income/ (Expense), Net | $ (110.7) |
Other Income _ (Expense) - Su_2
Other Income / (Expense) - Summary of Teva Share Activity (Parenthetical) (Detail) - Teva [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Feb. 13, 2018 | Mar. 31, 2018 | Jan. 17, 2018 |
Other Non Operating Income Expense [Line Items] | |||
Closing stock price of securities | $ 21.48 | ||
Forward sale of investment shares | 25 | ||
Proceeds from forward sale received | $ 372.3 | $ 1,015.5 | |
Marked-to-market value of bifurcated derivative component in prepaid expenses and other current assets | $ 19 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Fair Value Assumptions of Options based on Black-Scholes Valuation Model (Detail) - Two Thousand Eighteen Grants [Member] | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Dividend yield | 2.20% | |
Expected volatility | 23.50% | |
Risk-free interest rate | 2.60% | |
Expected term | 7 years | |
Dividend yield | 1.50% | |
Expected volatility | 27.00% | |
Risk-free interest rate, Minimum | 2.20% | |
Risk-free interest rate, Maximum | 2.90% | |
Expected term | 7 years |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense Recognized in Company's Results of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 52.3 | $ 72.5 |
Equity Based Compensation Awards [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 52.3 | $ 72.5 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Unrecognized future share-based compensation expense | $ 516 |
Remaining weighted average period (years) | 1 year 9 months 18 days |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Equity Award Activity for Unvested Restricted Stock and Stock Units (Detail) - Restricted Stock [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restricted shares / units outstanding, beginning balance | 2.5 | |
Shares, Granted | 1.4 | |
Shares, Vested | (0.6) | |
Restricted shares / units outstanding, ending balance | 3.3 | 2.5 |
Weighted Average Grant Date Fair Value, outstanding, beginning balance | $ 190.27 | |
Weighted Average Grant Date Fair Value, Granted | 139.66 | |
Weighted Average Grant Date Fair Value, Vested | 210.69 | |
Weighted Average Grant Date Fair Value, Forfeited | 208.11 | |
Weighted Average Grant Date Fair Value, outstanding, ending balance | $ 162.75 | $ 190.27 |
Weighted Average Remaining Contractual Term (Years) | 2 years | 1 year 7 months 6 days |
Aggregate Grant Date Fair Value, outstanding, beginning balance | $ 472.9 | |
Aggregate Grant Date Fair Value, Granted | 197.8 | |
Aggregate Grant Date Fair Value, Vested | (123.9) | |
Aggregate Grant Date Fair Value, Forfeited | (8.4) | |
Aggregate Grant Date Fair Value, outstanding, ending balance | $ 538.4 | $ 472.9 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Equity Award Activity for Non-Qualified Options to Purchase Ordinary Shares (Detail) - Non-qualified Options [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options, Outstanding, Beginning Balance | 6.3 | |
Options, vested and expected to vest, Beginning Balance | 6.4 | 6.3 |
Options, Granted | 0.3 | |
Options, Exercised | (0.2) | |
Options, Outstanding, Ending Balance | 6.4 | 6.3 |
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ 122.74 | |
Weighted Average Exercise Price, vested and expected to vest, Beginning Balance | 122.74 | |
Weighted Average Exercise Price, Granted | 140.16 | |
Weighted Average Exercise Price, Exercised | 64.49 | |
Weighted Average Exercise Price, Cancelled | 223.68 | |
Weighted Average Exercise Price, Outstanding, Ending Balance | 124.43 | $ 122.74 |
Weighted Average Exercise Price, vested and expected to vest, Ending Balance | $ 124.43 | $ 122.74 |
Weighted Average Remaining Contractual Term (Years), Outstanding | 4 years 6 months | 4 years 4 months 24 days |
Weighted Average Remaining Contractual Term (Years), vested and expected to vest | 4 years 6 months | 4 years 4 months 24 days |
Aggregate Intrinsic Value, Outstanding | $ 140.4 | $ 69 |
Aggregate Intrinsic Value, vested and expected to vest | $ 140.4 | $ 69 |
Reportable Segments - Additiona
Reportable Segments - Additional Information (Detail) - Segment | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | 3 | |
Product Concentration Risk [Member] | Revenues [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration risk percentage | 10.00% | 10.00% |
Reportable Segments - Schedule
Reportable Segments - Schedule of Net Revenues, Operating Expenses Contribution Information by Reportable Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 3,597.1 | $ 3,672.1 |
Operating expenses: | ||
Cost of sales | 497.8 | 522.8 |
Selling and marketing | 804 | 800 |
General and administrative | 308.3 | 295.9 |
Research and development | 435 | 474.7 |
Amortization | 1,399.4 | 1,697.6 |
Goodwill impairments | 2,467 | |
Asset sales and impairments, net | (5.2) | 13.1 |
In-process research and development impairments | 522 | |
Operating (loss) | $ (2,309.2) | $ (654) |
Operating margin | (64.20%) | (17.80%) |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 3,594.3 | $ 3,666.3 |
Operating expenses: | ||
Cost of sales | 420.3 | 437.7 |
Selling and marketing | 804.9 | 784.4 |
General and administrative | 124.1 | 120.5 |
Segment contribution | $ 2,245 | $ 2,323.7 |
Contribution margin | 62.50% | 63.40% |
Corporate Non Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 2.8 | $ 5.8 |
Operating expenses: | ||
Corporate | 258 | 270.3 |
US Specialized Therapeutics [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 1,542.9 | 1,578.6 |
Operating expenses: | ||
Cost of sales | 120.1 | 134.2 |
Selling and marketing | 356.8 | 313.2 |
General and administrative | 54.6 | 50.2 |
Segment contribution | $ 1,011.4 | $ 1,081 |
Contribution margin | 65.60% | 68.50% |
International [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 801.5 | $ 864 |
Operating expenses: | ||
Cost of sales | 109.7 | 120.9 |
Selling and marketing | 237.6 | 245.7 |
General and administrative | 25.7 | 31.4 |
Segment contribution | $ 428.5 | $ 466 |
Contribution margin | 53.50% | 53.90% |
US General Medicine [Member] | ||
Operating expenses: | ||
Goodwill impairments | $ 2,467 | |
US General Medicine [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 1,249.9 | $ 1,223.7 |
Operating expenses: | ||
Cost of sales | 190.5 | 182.6 |
Selling and marketing | 210.5 | 225.5 |
General and administrative | 43.8 | 38.9 |
Segment contribution | $ 805.1 | $ 776.7 |
Contribution margin | 64.40% | 63.50% |
Reportable Segments - Schedul_2
Reportable Segments - Schedule of Net Revenues, Operating Expenses Contribution Information by Reportable Segment (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 3,597.1 | $ 3,672.1 |
Corporate Non Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 2.8 | $ 5.8 |
Reportable Segments - Schedul_3
Reportable Segments - Schedule of Net Revenue Disaggregated by Geography for International Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net Revenues | $ 3,597.1 | $ 3,672.1 |
Operating Segments [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net Revenues | 3,594.3 | 3,666.3 |
Operating Segments [Member] | International [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net Revenues | 801.5 | 864 |
Operating Segments [Member] | International [Member] | Europe [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net Revenues | 354.4 | 398.4 |
Operating Segments [Member] | International [Member] | Asia Pacific, Middle East and Africa [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net Revenues | 250.7 | 240.8 |
Operating Segments [Member] | International [Member] | Latin America and Canada [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net Revenues | 178.2 | 212.1 |
Operating Segments [Member] | International [Member] | Other [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Net Revenues | $ 18.2 | $ 12.7 |
Reportable Segments - Schedul_4
Reportable Segments - Schedule of Global Net Revenues for Top Products and Reconciliation of Segment Revenues to Total Net Revenues by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | $ 3,597.1 | $ 3,672.1 |
Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 3,594.3 | 3,666.3 |
Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 1,542.9 | 1,578.6 |
Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 1,249.9 | 1,223.7 |
Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 801.5 | 864 |
Corporate Non Segment [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 2.8 | 5.8 |
Botox [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 868.4 | 817.3 |
Botox [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 627.1 | 572.5 |
Botox [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 241.3 | 244.8 |
Juvederm Collection [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 287.5 | 268.9 |
Juvederm Collection [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 129.7 | 122.8 |
Juvederm Collection [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 157.8 | 146.1 |
Restasis [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 242.1 | 274.1 |
Restasis [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 231.7 | 255.8 |
Restasis [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 10.4 | 18.3 |
Lumigan/Ganfort [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 142.8 | 167.2 |
Lumigan/Ganfort [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 57.7 | 66.8 |
Lumigan/Ganfort [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 85.1 | 100.4 |
Bystolic/Byvalson [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 128.7 | 133.3 |
Bystolic/Byvalson [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 128.3 | 132.8 |
Bystolic/Byvalson [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 0.4 | 0.5 |
Linzess/Constella [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 166.8 | 164.9 |
Linzess/Constella [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 161.3 | 159.3 |
Linzess/Constella [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 5.5 | 5.6 |
Alphagan/Combigan [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 120.6 | 128.4 |
Alphagan/Combigan [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 83 | 84.2 |
Alphagan/Combigan [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 37.6 | 44.2 |
Asacol/Delzicol [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 35 | 49.9 |
Asacol/Delzicol [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 24.7 | 38.2 |
Asacol/Delzicol [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 10.3 | 11.7 |
Lo Loestrin [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 125.8 | 114.6 |
Lo Loestrin [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 125.8 | 114.6 |
Eye Drops [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 104.8 | 115 |
Eye Drops [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 49.4 | 46.2 |
Eye Drops [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 55.4 | 68.8 |
Breast Implants [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 72.4 | 104.8 |
Breast Implants [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 61.2 | 60.7 |
Breast Implants [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 11.2 | 44.1 |
Viibryd/Fetzima [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 87.1 | 73.2 |
Viibryd/Fetzima [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 85 | 71.7 |
Viibryd/Fetzima [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 2.1 | 1.5 |
Ozurdex [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 93.4 | 89.9 |
Ozurdex [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 30.3 | 25.5 |
Ozurdex [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 63.1 | 64.4 |
Carafate/Sulcrate [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 54.9 | 56.7 |
Carafate/Sulcrate [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 54.3 | 56 |
Carafate/Sulcrate [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 0.6 | 0.7 |
Coolsculpting Consumables [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 65.6 | 61.5 |
Coolsculpting Consumables [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 47.8 | 53.4 |
Coolsculpting Consumables [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 17.8 | 8.1 |
Aczone [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 1.6 | 16.1 |
Aczone [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 1.6 | 16 |
Aczone [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 0.1 | |
Zenpep [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 63 | 52.9 |
Zenpep [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 63 | 52.9 |
Skin Care [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 37.4 | 35.7 |
Skin Care [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 34.7 | 31.9 |
Skin Care [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 2.7 | 3.8 |
Canasa/Salofalk [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 13.8 | 42.8 |
Canasa/Salofalk [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 10.2 | 38.6 |
Canasa/Salofalk [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 3.6 | 4.2 |
Vraylar [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 143.7 | 84.4 |
Vraylar [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 143.7 | 84.4 |
Saphris [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 31.9 | 32.7 |
Saphris [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 31.9 | 32.7 |
Viberzi [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 37.5 | 36 |
Viberzi [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 37.2 | 35.9 |
Viberzi [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 0.3 | 0.1 |
Coolsculpting Systems & Add On Applicators [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 25.7 | 34.8 |
Coolsculpting Systems & Add On Applicators [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 15.1 | 33.7 |
Coolsculpting Systems & Add On Applicators [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 10.6 | 1.1 |
Teflaro [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 33.7 | 32.2 |
Teflaro [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 33.5 | 32.2 |
Teflaro [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 0.2 | |
Namzaric [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 23.4 | 33.4 |
Namzaric [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 23.4 | 33.4 |
Rapaflo [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 12.4 | 24 |
Rapaflo [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 11.8 | 22.8 |
Rapaflo [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 0.6 | 1.2 |
Kybella/Belkyra [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 8.9 | 9.6 |
Kybella/Belkyra [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 7.3 | 8.2 |
Kybella/Belkyra [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 1.6 | 1.4 |
Alloderm [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 96.6 | 101.7 |
Alloderm [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 95 | 99.5 |
Alloderm [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 1.6 | 2.2 |
Dalvance [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 12 | 11.9 |
Dalvance [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 12 | 11.9 |
Namenda [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 9.5 | 40.6 |
Namenda [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 9.5 | 40.6 |
Avycaz [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 29.7 | 21.8 |
Avycaz [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 29.7 | 21.8 |
Liletta [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 14.8 | 8.1 |
Liletta [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 14.8 | 8.1 |
Armour Thyroid [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 50 | 48.2 |
Armour Thyroid [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 50 | 48.2 |
Savella [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 20.7 | 19.9 |
Savella [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 20.7 | 19.9 |
Other [Member] | Operating Segments [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 332.1 | 359.8 |
Other [Member] | Operating Segments [Member] | US Specialized Therapeutics [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 59.5 | 78.6 |
Other [Member] | Operating Segments [Member] | US General Medicine [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | 190.9 | 190.5 |
Other [Member] | Operating Segments [Member] | International [Member] | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Net revenues | $ 81.7 | $ 90.7 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 332.9 | $ 303.2 |
Work-in-process | 211.8 | 145.7 |
Finished goods | 523 | 520.2 |
Inventory, Gross | 1,067.7 | 969.1 |
Less: inventory reserves | 124.5 | 122.2 |
Total Inventories | $ 943.2 | $ 846.9 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses - Summary of Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Accrued expenses: | |||
Accrued third-party rebates | $ 1,941.1 | $ 1,832.1 | |
Accrued returns and other allowances | 564.4 | 527.8 | |
Accrued payroll and related benefits | 431.1 | 694.3 | |
Accrued R&D expenditures | 221.7 | 215.5 | |
Accrued pharmaceutical fees | 160.8 | 145.3 | |
Royalties payable | 156.9 | 155.1 | |
Interest payable | 141.2 | 191.4 | |
Litigation-related reserves and legal fees | 137.1 | 92 | |
Accrued non-provision taxes | 71.3 | 68.5 | |
Accrued selling and marketing expenditures | 66.6 | 61.1 | |
Accrued severance, retention and other shutdown costs | 36.7 | 71.6 | |
Current portion of contingent consideration obligations | 9.4 | 8.3 | |
Dividends payable | 1.4 | 1.4 | $ 1.4 |
Contractual commitments | 4.3 | ||
Other accrued expenses | 338 | 368.7 | |
Total accrued expenses | 4,277.7 | 4,437.4 | |
Accounts payable | 356.7 | 349.8 | |
Total accounts payable and accrued expenses | $ 4,634.4 | $ 4,787.2 |
Goodwill, Product Rights and _3
Goodwill, Product Rights and Other Intangible Assets - Schedule of Goodwill (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Line Items] | |
Balance as of December 31, 2018 | $ 45,913.3 |
Acquisitions | 34.1 |
Impairments | (2,467) |
Foreign exchange and other adjustments | (143.8) |
Balance as of March 31, 2019 | 43,336.6 |
US Specialized Therapeutics [Member] | |
Goodwill [Line Items] | |
Balance as of December 31, 2018 | 20,675.6 |
Acquisitions | 34.1 |
Balance as of March 31, 2019 | 20,709.7 |
US General Medicine [Member] | |
Goodwill [Line Items] | |
Balance as of December 31, 2018 | 17,936.6 |
Impairments | (2,467) |
Balance as of March 31, 2019 | 15,469.6 |
International [Member] | |
Goodwill [Line Items] | |
Balance as of December 31, 2018 | 7,301.1 |
Foreign exchange and other adjustments | (143.8) |
Balance as of March 31, 2019 | $ 7,157.3 |
Goodwill, Product Rights and _4
Goodwill, Product Rights and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Goodwill Product Rights And Other Intangible Assets [Line Items] | |||
Gross balance of goodwill | $ 48,662 | $ 48,771.7 | |
Goodwill impairment charge | $ 2,467 | ||
In-process research and development impairments | $ 522 | ||
IPR&D [Member] | Vitae [Member] | RORyt [Member] | |||
Goodwill Product Rights And Other Intangible Assets [Line Items] | |||
In-process research and development impairments | $ 522 | ||
Eye Care Reporting Unit [Member] | |||
Goodwill Product Rights And Other Intangible Assets [Line Items] | |||
Maximum headroom percentage of reporting unit | 10.00% |
Goodwill, Product Rights and _5
Goodwill, Product Rights and Other Intangible Assets - Schedule of Cost Basis on Product Rights and Other Intangible Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangible assets, gross, Amortization | $ (1,399.4) | $ (1,697.6) | |
Product rights and other intangibles | 42,264.6 | $ 43,695.4 | |
Cost Basis [Member] | |||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangibles with definite lives, Beginning balance | 70,925.1 | ||
Intangibles with definite lives, Additions | 74.9 | ||
Intangibles with definite lives, IPR&D to CMP Transfers | 75.6 | ||
Intangibles with definite lives, Foreign Currency Translation | (160) | ||
Intangibles with definite lives, Ending balance | 70,915.6 | ||
Intangibles assets, gross, Foreign Currency Translation | (160) | ||
Intangibles with indefinite lives, Beginning balance | 5,048.1 | ||
Intangibles with indefinite lives, Additions | 0 | ||
Intangibles with indefinite lives, IPR&D to CMP Transfers | (75.6) | ||
Intangibles with indefinite lives, Foreign Currency Translation | 0 | ||
Intangibles with indefinite lives, Ending balance | 4,972.5 | ||
Intangible assets, gross, Beginning balance | 75,973.2 | ||
Intangible assets, gross, Additions | 74.9 | ||
Intangible assets, IPR&D to CMP Transfers | 0 | ||
Intangible assets, gross, Ending balance | 75,888.1 | ||
Cost Basis [Member] | Product Rights and Other Intangibles [Member] | |||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangibles with definite lives, Beginning balance | 70,235.1 | ||
Intangibles with definite lives, Additions | 74.9 | ||
Intangibles with definite lives, IPR&D to CMP Transfers | 75.6 | ||
Intangibles with definite lives, Foreign Currency Translation | (160) | ||
Intangibles with definite lives, Ending balance | 70,225.6 | ||
Cost Basis [Member] | Trade Name [Member] | |||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangibles with definite lives, Beginning balance | 690 | ||
Intangibles with definite lives, Additions | 0 | ||
Intangibles with definite lives, IPR&D to CMP Transfers | 0 | ||
Intangibles with definite lives, Foreign Currency Translation | 0 | ||
Intangibles with definite lives, Ending balance | 690 | ||
Cost Basis [Member] | IPR&D [Member] | |||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangibles with indefinite lives, Beginning balance | 5,048.1 | ||
Intangibles with indefinite lives, Additions | 0 | ||
Intangibles with indefinite lives, IPR&D to CMP Transfers | (75.6) | ||
Intangibles with indefinite lives, Foreign Currency Translation | 0 | ||
Intangibles with indefinite lives, Ending balance | 4,972.5 | ||
Accumulated Amortization [Member] | |||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangible assets, Accumulated Amortization, Beginning balance | (32,277.8) | ||
Intangible assets, gross, Amortization | (1,399.4) | ||
Intangibles with definite lives, IPR&D to CMP Transfers | 0 | ||
Intangibles with definite lives, Foreign Currency Translation | 53.7 | ||
Intangibles assets, gross, Foreign Currency Translation | 53.7 | ||
Intangible assets, Accumulated Amortization, Ending balance | (33,623.5) | ||
Accumulated Amortization [Member] | Product Rights and Other Intangibles [Member] | |||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangible assets, Accumulated Amortization, Beginning balance | (31,985) | ||
Intangible assets, gross, Amortization | (1,379.4) | ||
Intangibles with definite lives, IPR&D to CMP Transfers | 0 | ||
Intangibles with definite lives, Foreign Currency Translation | 53.7 | ||
Intangible assets, Accumulated Amortization, Ending balance | (33,310.7) | ||
Accumulated Amortization [Member] | Trade Name [Member] | |||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Intangible assets, Accumulated Amortization, Beginning balance | (292.8) | ||
Intangible assets, gross, Amortization | (20) | ||
Intangibles with definite lives, IPR&D to CMP Transfers | 0 | ||
Intangibles with definite lives, Foreign Currency Translation | 0 | ||
Intangible assets, Accumulated Amortization, Ending balance | $ (312.8) |
Goodwill, Product Rights and _6
Goodwill, Product Rights and Other Intangible Assets - Schedule of Annual Amortization Expense on Product Rights and Other Related Intangibles (Detail) - Product Rights and Other Related Intangibles [Member] $ in Millions | Mar. 31, 2019USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2019 remaining | $ 4,188.7 |
2020 | 5,344.1 |
2021 | 4,416.5 |
2022 | 4,069.2 |
2023 | 3,659.9 |
2024 | $ 2,828.8 |
Long-Term Debt and Capital Leas
Long-Term Debt and Capital Leases - Schedule of Long-Term Debt and Capital Leases (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 23,551.6 | $ 23,813.1 |
Unamortized premium | 58.1 | 64.3 |
Unamortized discount | (61.8) | (64.5) |
Total Senior Notes Net | 23,547.9 | 23,812.9 |
Senior Notes, Fair Market Value | 23,640.6 | 23,303.3 |
Debt Issuance Costs | (86.7) | (92.1) |
Total Other Borrowings | (22) | (22.8) |
Total Indebtedness | 23,525.9 | 23,797.7 |
Capital Leases [Member] | ||
Debt Instrument [Line Items] | ||
Total Term Loan Indebtedness | 7.6 | |
Floating Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | 500 | 500 |
Senior Notes, Fair Market Value | 503.8 | 501.9 |
Floating Rate Notes [Member] | Notes Due March 12, 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | 500 | 500 |
Senior Notes, Fair Market Value | $ 503.8 | 501.9 |
Issuance Date | Mar. 4, 2015 | |
Interest Payments | Quarterly | |
Acquisition Date | Mar. 4, 2015 | |
Euro Denominated Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 4,936.1 | 5,045.6 |
Senior Notes, Fair Market Value | 4,989.6 | 4,951.9 |
Euro Denominated Notes [Member] | Notes Due June 1, 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | 785.3 | 802.7 |
Senior Notes, Fair Market Value | $ 785.5 | 794.9 |
Issuance Date | May 26, 2017 | |
Interest Payments | Quarterly | |
Acquisition Date | May 26, 2017 | |
Euro Denominated Notes [Member] | 0.500% Notes Due June 1, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 841.4 | 860 |
Senior Notes, Fair Market Value | $ 844.7 | 849.7 |
Issuance Date | May 26, 2017 | |
Interest Payments | Annually | |
Acquisition Date | May 26, 2017 | |
Euro Denominated Notes [Member] | 1.500% Notes Due November 15, 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 560.9 | 573.4 |
Senior Notes, Fair Market Value | $ 575.2 | 572.4 |
Issuance Date | Nov. 15, 2018 | |
Interest Payments | Annually | |
Acquisition Date | Nov. 15, 2018 | |
Euro Denominated Notes [Member] | Notes Due November 15, 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 785.3 | 802.7 |
Senior Notes, Fair Market Value | $ 782.6 | 791.3 |
Issuance Date | Nov. 15, 2018 | |
Interest Payments | Quarterly | |
Acquisition Date | Nov. 15, 2018 | |
Euro Denominated Notes [Member] | 1.250% Notes Due June 1, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 785.3 | 802.7 |
Senior Notes, Fair Market Value | $ 789.2 | 775.5 |
Issuance Date | May 26, 2017 | |
Interest Payments | Annually | |
Acquisition Date | May 26, 2017 | |
Euro Denominated Notes [Member] | 2.625% Notes Due November 15, 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 560.9 | 573.4 |
Senior Notes, Fair Market Value | $ 593.6 | 573.4 |
Issuance Date | Nov. 15, 2018 | |
Interest Payments | Annually | |
Acquisition Date | Nov. 15, 2018 | |
Euro Denominated Notes [Member] | 2.125% Notes Due June 1, 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 617 | 630.7 |
Senior Notes, Fair Market Value | $ 618.8 | 594.7 |
Issuance Date | May 26, 2017 | |
Interest Payments | Annually | |
Acquisition Date | May 26, 2017 | |
Fixed Rate Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 18,115.5 | 18,267.5 |
Senior Notes, Fair Market Value | 18,147.2 | 17,849.5 |
Fixed Rate Notes [Member] | 3.000% notes due March 12, 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | 2,623.8 | 2,706.7 |
Senior Notes, Fair Market Value | $ 2,622 | 2,694.8 |
Issuance Date | Mar. 4, 2015 | |
Interest Payments | Semi-annually | |
Acquisition Date | Mar. 4, 2015 | |
Fixed Rate Notes [Member] | 3.375% Notes Due September 15, 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 650 | 650 |
Senior Notes, Fair Market Value | $ 653.1 | 648.7 |
Issuance Date | Mar. 17, 2015 | |
Interest Payments | Semi-annually | |
Acquisition Date | Mar. 17, 2015 | |
Fixed Rate Notes [Member] | 4.875% Notes Due February 15, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 450 | 450 |
Senior Notes, Fair Market Value | $ 461.3 | 459.4 |
Issuance Date | Jul. 1, 2014 | |
Interest Payments | Semi-annually | |
Acquisition Date | Jul. 1, 2014 | |
Fixed Rate Notes [Member] | 5.000% Notes Due December 15, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 1,200 | 1,200 |
Senior Notes, Fair Market Value | $ 1,247.9 | 1,234.8 |
Issuance Date | Jul. 1, 2014 | |
Interest Payments | Semi-annually | |
Acquisition Date | Jul. 1, 2014 | |
Fixed Rate Notes [Member] | 3.450% notes due March 15, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 2,878.2 | 2,940.5 |
Senior Notes, Fair Market Value | $ 2,896.9 | 2,891 |
Issuance Date | Mar. 4, 2015 | |
Interest Payments | Semi-annually | |
Acquisition Date | Mar. 4, 2015 | |
Fixed Rate Notes [Member] | 3.250% Notes Due October 1, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 1,700 | 1,700 |
Senior Notes, Fair Market Value | $ 1,699.8 | 1,652.2 |
Issuance Date | Oct. 2, 2012 | |
Interest Payments | Semi-annually | |
Acquisition Date | Oct. 2, 2012 | |
Fixed Rate Notes [Member] | 2.800% Notes Due March 15, 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 350 | 350 |
Senior Notes, Fair Market Value | $ 349 | 332.8 |
Issuance Date | Mar. 17, 2015 | |
Interest Payments | Semi-annually | |
Acquisition Date | Mar. 17, 2015 | |
Fixed Rate Notes [Member] | 3.850% Notes Due June 15, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 1,036.7 | 1,036.7 |
Senior Notes, Fair Market Value | $ 1,048.6 | 1,021 |
Issuance Date | Jun. 10, 2014 | |
Interest Payments | Semi-annually | |
Acquisition Date | Jun. 10, 2014 | |
Fixed Rate Notes [Member] | 3.800% notes due March 15, 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 3,020.7 | 3,027.5 |
Senior Notes, Fair Market Value | $ 3,050.6 | 2,956 |
Issuance Date | Mar. 4, 2015 | |
Interest Payments | Semi-annually | |
Acquisition Date | Mar. 4, 2015 | |
Fixed Rate Notes [Member] | 4.550% notes due March 15, 2035 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 1,789 | 1,789 |
Senior Notes, Fair Market Value | $ 1,748 | 1,690.7 |
Issuance Date | Mar. 4, 2015 | |
Interest Payments | Semi-annually | |
Acquisition Date | Mar. 4, 2015 | |
Fixed Rate Notes [Member] | 4.625% Notes Due October 1, 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 456.7 | 456.7 |
Senior Notes, Fair Market Value | $ 432.2 | 412.4 |
Issuance Date | Oct. 2, 2012 | |
Interest Payments | Semi-annually | |
Acquisition Date | Oct. 2, 2012 | |
Fixed Rate Notes [Member] | 4.850% Notes Due June 15, 2044 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 1,079.4 | 1,079.4 |
Senior Notes, Fair Market Value | $ 1,070.6 | 1,019.1 |
Issuance Date | Jun. 10, 2014 | |
Interest Payments | Semi-annually | |
Acquisition Date | Jun. 10, 2014 | |
Fixed Rate Notes [Member] | 4.750% notes due March 15, 2045 [Member] | ||
Debt Instrument [Line Items] | ||
Total Senior Notes Gross | $ 881 | 881 |
Senior Notes, Fair Market Value | $ 867.2 | 836.6 |
Issuance Date | Mar. 4, 2015 | |
Interest Payments | Semi-annually | |
Acquisition Date | Mar. 4, 2015 | |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Total Other Borrowings | $ 64.7 | $ 69.3 |
Long-Term Debt and Capital Le_2
Long-Term Debt and Capital Leases - Schedule of Long-Term Debt and Capital Leases (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Floating Rate Notes [Member] | Notes Due March 12, 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Mar. 12, 2020 | Mar. 12, 2020 |
Percentage of margin | 1.255% | 1.255% |
Debt instrument variable rate basis | three month USD LIBOR | three month USD LIBOR |
Interest payment terms | Interest on the 2020 floating rate note is three month USD LIBOR plus 1.255% per annum | Interest on the 2020 floating rate note is three month USD LIBOR plus 1.255% per annum |
Fixed Rate Notes [Member] | 3.000% notes due March 12, 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Mar. 12, 2020 | Mar. 12, 2020 |
Senior notes, interest rate | 3.00% | 3.00% |
Fixed Rate Notes [Member] | 3.375% Notes Due September 15, 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Sep. 15, 2020 | Sep. 15, 2020 |
Senior notes, interest rate | 3.375% | 3.375% |
Fixed Rate Notes [Member] | 4.875% Notes Due February 15, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Feb. 15, 2021 | Feb. 15, 2021 |
Senior notes, interest rate | 4.875% | 4.875% |
Fixed Rate Notes [Member] | 5.000% Notes Due December 15, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Dec. 15, 2021 | Dec. 15, 2021 |
Senior notes, interest rate | 5.00% | 5.00% |
Fixed Rate Notes [Member] | 3.450% notes due March 15, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Mar. 15, 2022 | Mar. 15, 2022 |
Senior notes, interest rate | 3.45% | 3.45% |
Fixed Rate Notes [Member] | 3.250% Notes Due October 1, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Oct. 1, 2022 | Oct. 1, 2022 |
Senior notes, interest rate | 3.25% | 3.25% |
Fixed Rate Notes [Member] | 2.800% Notes Due March 15, 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Mar. 15, 2023 | Mar. 15, 2023 |
Senior notes, interest rate | 2.80% | 2.80% |
Fixed Rate Notes [Member] | 3.850% Notes Due June 15, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Jun. 15, 2024 | Jun. 15, 2024 |
Senior notes, interest rate | 3.85% | 3.85% |
Fixed Rate Notes [Member] | 3.800% notes due March 15, 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Mar. 15, 2025 | Mar. 15, 2025 |
Senior notes, interest rate | 3.80% | 3.80% |
Fixed Rate Notes [Member] | 4.550% notes due March 15, 2035 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Mar. 15, 2035 | Mar. 15, 2035 |
Senior notes, interest rate | 4.55% | 4.55% |
Fixed Rate Notes [Member] | 4.625% Notes Due October 1, 2042 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Oct. 1, 2042 | Oct. 1, 2042 |
Senior notes, interest rate | 4.625% | 4.625% |
Fixed Rate Notes [Member] | 4.850% Notes Due June 15, 2044 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Jun. 15, 2044 | Jun. 15, 2044 |
Senior notes, interest rate | 4.85% | 4.85% |
Fixed Rate Notes [Member] | 4.750% notes due March 15, 2045 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Mar. 15, 2045 | Mar. 15, 2045 |
Senior notes, interest rate | 4.75% | 4.75% |
Euro Denominated Notes [Member] | 1.500% Notes Due November 15, 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Nov. 15, 2023 | Nov. 15, 2023 |
Senior notes, interest rate | 1.50% | 1.50% |
Euro Denominated Notes [Member] | 1.250% Notes Due June 1, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Jun. 1, 2024 | Jun. 1, 2024 |
Senior notes, interest rate | 1.25% | 1.25% |
Euro Denominated Notes [Member] | 2.625% Notes Due November 15, 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Nov. 15, 2028 | Nov. 15, 2028 |
Senior notes, interest rate | 2.625% | 2.625% |
Euro Denominated Notes [Member] | 2.125% Notes Due June 1, 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Jun. 1, 2029 | Jun. 1, 2029 |
Senior notes, interest rate | 2.125% | 2.125% |
Euro Denominated Notes [Member] | 0.500% Notes Due June 1, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes, maturity date | Jun. 1, 2021 | Jun. 1, 2021 |
Senior notes, interest rate | 0.50% | 0.50% |
Euro Denominated Notes [Member] | Notes Due November 15, 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of margin | 0.35% | 0.35% |
Debt instrument variable rate basis | three month EURIBOR | three month EURIBOR |
Interest payment terms | Interest on the 2020 floating rate notes is the three month EURIBOR plus 0.350% per annum | Interest on the 2020 floating rate notes is the three month EURIBOR plus 0.350% per annum |
Euro Denominated Notes [Member] | Notes Due June 1, 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of margin | 0.35% | 0.35% |
Debt instrument variable rate basis | three month EURIBOR | three month EURIBOR |
Interest payment terms | Interest on the 2019 floating rate notes is the three month EURIBOR plus 0.350% per annum | Interest on the 2019 floating rate notes is the three month EURIBOR plus 0.350% per annum |
Long-Term Debt and Capital Le_3
Long-Term Debt and Capital Leases - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Line Of Credit Facility [Line Items] | |
Debt instrument, repurchase amount | $ 152 |
Income/ expenses net | 0.3 |
Write off premium and debt fees | 0.3 |
Senior Notes | |
Line Of Credit Facility [Line Items] | |
Senior notes, repurchase amount | $ 152 |
Long-Term Debt and Capital Le_4
Long-Term Debt and Capital Leases - Schedule of Debt Redeemed and Retired (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Senior notes, repurchase amount | $ 152 |
Cash Paid for Retirement | 152 |
Remaining Value at March 31, 2019 | 8,522.7 |
3.000% notes due March 12, 2020 [Member] | |
Debt Instrument [Line Items] | |
Senior notes, repurchase amount | 82.9 |
Cash Paid for Retirement | 82.9 |
Remaining Value at March 31, 2019 | 2,623.8 |
3.450% notes due March 15, 2022 [Member] | |
Debt Instrument [Line Items] | |
Senior notes, repurchase amount | 62.3 |
Cash Paid for Retirement | 62.3 |
Remaining Value at March 31, 2019 | 2,878.2 |
3.800% notes due March 15, 2025 [Member] | |
Debt Instrument [Line Items] | |
Senior notes, repurchase amount | 6.8 |
Cash Paid for Retirement | 6.8 |
Remaining Value at March 31, 2019 | $ 3,020.7 |
Long-Term Debt and Capital Le_5
Long-Term Debt and Capital Leases - Schedule of Annual Debt Maturities (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2019 remaining | $ 785.3 |
2020 | 4,559.1 |
2021 | 2,491.4 |
2022 | 4,578.2 |
2023 | 910.9 |
2024 | 1,822 |
2025 and after | 8,404.7 |
Total senior notes gross | $ 23,551.6 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Property Subject To Or Available For Operating Lease [Line Items] | ||
Weighted average remaining lease term for operating leases | 7 years 2 months 12 days | |
Weighted average discount rate for operating leases | 2.70% | |
Right-of-Use asset obtained in exchange for operating lease liability | $ 23.4 | |
Cash paid for amounts included in measurement of lease liabilities | $ 40.8 | |
Property Rental Expense [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Rent expenses for operating leases | $ 63.2 | |
Fleet Rental Expense [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Rent expenses for operating leases | $ 41.1 | |
Minimum [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Remaining lease terms | 1 year | |
Maximum [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Remaining lease terms | 9 years | |
Real Estate [Member] | Minimum [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Remaining lease terms | 1 year | |
Real Estate [Member] | Maximum [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Remaining lease terms | 14 years |
Leases - Summary of Operating R
Leases - Summary of Operating ROU Assets and liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 |
Property Subject To Or Available For Operating Lease [Line Items] | ||
Right of use asset - operating leases | $ 455.4 | $ 462.1 |
Lease Liability | 531.3 | 548.6 |
Current portion of lease liability - operating | 116.1 | |
Lease liability - operating | 415.2 | |
Real Estate [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Right of use asset - operating leases | 295.8 | 304.2 |
Lease Liability | 361 | $ 370.6 |
Fleet Rental Expense [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Right of use asset - operating leases | 102.7 | |
Lease Liability | 102.7 | |
Other [Member] | ||
Property Subject To Or Available For Operating Lease [Line Items] | ||
Right of use asset - operating leases | 56.9 | |
Lease Liability | $ 67.6 |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 32.3 |
Sublease (income) | (3.4) |
Net operating lease expense | $ 28.9 |
Leases - Schedule of Lease Ex_2
Leases - Schedule of Lease Expense (Detail) (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Short-term and variable lease expenses | $ 0.9 |
Leases - Schedule of Lease Comm
Leases - Schedule of Lease Commitments (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 remaining | $ 93.1 | |
2020 | 111.6 | |
2021 | 86.6 | |
2022 | 57 | |
2023 | 43.9 | |
2024 | 37.5 | |
2025 and after | 148.1 | |
Total undiscounted cash flows | 577.8 | |
Future interest | (46.5) | |
Lease Liability | $ 531.3 | $ 548.6 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Property Lease Rental Payments under Capital and Operating Leases (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 62.5 |
2020 | 52.5 |
2021 | 47.9 |
2022 | 43.3 |
2023 | 39 |
Thereafter | 173.8 |
Total minimum lease payments | $ 419 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Summary of Other Long-Term Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Acquisition related contingent consideration liabilities | $ 351.8 | $ 336.3 |
Long-term pension and post retirement liability | 170.3 | 166.5 |
Legacy Allergan deferred executive compensation | 94.5 | 90.8 |
Accrued R&D milestone | 75 | 75 |
Deferred revenue | 33.5 | 36.1 |
Product warranties | 28.8 | 27.9 |
Long-term severance and restructuring liabilities | 10.9 | 14.2 |
Long-term contractual obligations | 43.2 | |
Other long-term liabilities | 39.6 | 92 |
Total other long-term liabilities | $ 804.4 | $ 882 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax [Line Items] | ||
Company's effective tax rate | 2.80% | 70.60% |
Goodwill impairments | $ 2,467 | |
Tax benefit for impairment | 0 | |
Income tax benefit related to restructuring of acquired business | $ 421.9 | |
IPR&D [Member] | Vitae [Member] | ||
Income Tax [Line Items] | ||
Tax benefit for impairment | 117.5 | |
U.S. Subsidiaries [Member] | ||
Income Tax [Line Items] | ||
Income tax benefit for investment | $ 91.5 | $ 89.7 |
Income Taxes - Summary of Acqui
Income Taxes - Summary of Acquired U.S. Entities and Taxable Years that are Currently under Audit by IRS (Detail) - U.S. Federal Income Tax Authority [Member] | 3 Months Ended |
Mar. 31, 2019 | |
Allergan W C Holding Inc. [Member] | |
Income Tax Examination [Line Items] | |
Tax Years | 2013 2014 2015 2016 |
Warner Chilcott Corporation [Member] | |
Income Tax Examination [Line Items] | |
Tax Years | 2010 2011 2012 2013 |
Forest Laboratories, Inc. [Member] | |
Income Tax Examination [Line Items] | |
Tax Years | 2010 2011 2012 2013 2014 |
Allergan, Inc. [Member] | |
Income Tax Examination [Line Items] | |
Tax Years | 2009 2010 2011 2012 2013 2014 |
Taxable Years, date | Jul. 3, 2015 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Mar. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Jan. 29, 2019 | Jul. 26, 2018 |
Shareholders Equity [Line Items] | |||||
Share repurchase program, Approved amount | $ 2,000,000,000 | $ 2,000,000,000 | |||
Number of shares repurchased under program | 12,500,000 | ||||
Shares repurchased amount under program | $ 2,000,000,000 | ||||
Dividends on preferred shares | $ 69,600,000 | ||||
Convertible Preferred Share, conversion date | Mar. 1, 2018 | ||||
Convertible Preferred Stock, shares issued upon each share conversion | 3.53 | ||||
Ordinary Shares [Member] | |||||
Shareholders Equity [Line Items] | |||||
Convertible Preferred Stock, shares issued upon each share conversion | 6,200,000 | ||||
Convertible Preferred Stock, shares issued upon conversion | 17,876,930 | ||||
July 26, 2018 Share Repurchase Program [Member] | |||||
Shareholders Equity [Line Items] | |||||
Number of shares repurchased under program | 5,300,000 | ||||
Shares repurchased amount under program | $ 800,000,000 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2019USD ($) | Nov. 30, 2018EUR (€) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||
Derivative, Maturity Date | May 31, 2019 | ||||
Derivative instrument offsetting revaluation impact on variable interest debt | € | € 700 | ||||
Fair value of forward contract | $ 16.6 | $ 5.9 | |||
Outstanding third-party foreign currency instruments | 43.4 | 42.1 | |||
Designated as Hedging Instrument [Member] | |||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||
Derivative notional amount | 5,000 | $ 5,100 | |||
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | 110.8 | $ (95.1) | |||
Designated as Hedging Instrument [Member] | Cash Flow Hedge [Member] | Interest Rate Swap [Member] | |||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||
Derivative notional amount | $ 500 | ||||
Debt instrument, maturity date | Mar. 12, 2020 | ||||
Derivative, average interest rate | 3.98% | ||||
Interest rate swaps fair value | 1 | ||||
Unrealized loss on interest rate swaps | 1 | ||||
Foreign Currency Gain [Member] | |||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||
Loss on derivatives | $ 22.5 | ||||
Forward Contract [Member] | |||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||||
Forward contract to buy Euros | € | € 700 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Financial Assets and Liabilities Measured at Fair Value using Fair Value Leveling or Disclosed at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Short-term investments | $ 995.2 | $ 1,026.9 |
Deferred executive compensation investments | 94.5 | 90.8 |
Royalty receivable | 50.3 | 50.3 |
Investments and other | 57.9 | 46 |
Total assets | 1,529.3 | 1,421.1 |
Liabilities: | ||
Deferred executive compensation liabilities | 94.5 | 90.8 |
Contingent consideration obligations | 361.2 | 344.6 |
Total liabilities | 455.7 | 435.4 |
Cash Equivalents [Member] | ||
ASSETS | ||
Cash equivalents | 331.4 | 207.1 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ||
ASSETS | ||
Deferred executive compensation investments | 78.6 | 73.8 |
Investments and other | 48 | 38.5 |
Total assets | 209.6 | 319.4 |
Liabilities: | ||
Deferred executive compensation liabilities | 78.6 | 73.8 |
Total liabilities | 78.6 | 73.8 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Cash Equivalents [Member] | ||
ASSETS | ||
Cash equivalents | 83 | 207.1 |
Significant Other Observable Inputs (Level 2) [Member] | ||
ASSETS | ||
Short-term investments | 995.2 | 1,026.9 |
Deferred executive compensation investments | 15.9 | 17 |
Investments and other | 9.9 | 7.5 |
Total assets | 1,269.4 | 1,051.4 |
Liabilities: | ||
Deferred executive compensation liabilities | 15.9 | 17 |
Total liabilities | 15.9 | 17 |
Significant Other Observable Inputs (Level 2) [Member] | Cash Equivalents [Member] | ||
ASSETS | ||
Cash equivalents | 248.4 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
ASSETS | ||
Royalty receivable | 50.3 | 50.3 |
Total assets | 50.3 | 50.3 |
Liabilities: | ||
Contingent consideration obligations | 361.2 | 344.6 |
Total liabilities | $ 361.2 | $ 344.6 |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Financial Assets and Liabilities Measured at Fair Value using Fair Value Leveling or Disclosed at Fair Value on Recurring Basis (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Maximum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities remaining maturity period at the time of acquisition | 90 days | 90 days |
Fair Value Measurement - Change
Fair Value Measurement - Change in Fair Value of Contingent Consideration Obligations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Change in fair value of contingent consideration obligation | $ 18.7 | $ 5.3 |
Cost of Sales [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Change in fair value of contingent consideration obligation | 16.2 | 3.4 |
R&D Expense [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Change in fair value of contingent consideration obligation | $ 2.5 | $ 1.9 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Changes in Fair Value of all Financial Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Detail) - Contingent Consideration Obligations [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 344.6 | $ 476.9 |
Purchases, settlements, and other net | (2.1) | (9.3) |
Net accretion and fair value adjustments | 18.7 | 5.3 |
Ending balance | $ 361.2 | $ 472.9 |
Fair Value Measurement - Sche_3
Fair Value Measurement - Schedule of Contingent Consideration Obligations by Acquisitions (Detail) - Contingent Consideration Obligations [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Beginning balance | $ 344.6 | $ 476.9 |
Fair Value Adjustments and Accretion | 18.7 | 5.3 |
Payments and Other | (2.1) | |
Ending balance | 361.2 | $ 472.9 |
Tobira [Member] | ||
Business Acquisition [Line Items] | ||
Beginning balance | 255 | |
Fair Value Adjustments and Accretion | 2.3 | |
Ending balance | 257.3 | |
Medicines 360 Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Beginning balance | 43.1 | |
Fair Value Adjustments and Accretion | 13.9 | |
Payments and Other | (1.4) | |
Ending balance | 55.6 | |
AqueSys Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Beginning balance | 5.4 | |
Ending balance | 5.4 | |
ForSight [Member] | ||
Business Acquisition [Line Items] | ||
Beginning balance | 24.1 | |
Fair Value Adjustments and Accretion | 0.2 | |
Payments and Other | 0.1 | |
Ending balance | 24.4 | |
Oculeve Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Beginning balance | 1.7 | |
Ending balance | 1.7 | |
Forest Laboratories, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Beginning balance | 13.6 | |
Fair Value Adjustments and Accretion | 2.3 | |
Payments and Other | (0.5) | |
Ending balance | 15.4 | |
Other Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Beginning balance | 1.7 | |
Payments and Other | (0.3) | |
Ending balance | $ 1.4 |
Business Restructuring Charge_2
Business Restructuring Charges - Schedule of Activity Related to Business Restructuring and Facility Rationalization Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||
Reserve beginning balance | $ 85.8 | |
Charged to expense | 2 | $ 17.9 |
Cash payments | (38.1) | |
Non-cash adjustments | (2.1) | |
Reserve ending balance | 47.6 | |
Cost of Sales [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Charged to expense | 1.1 | |
General and Administrative Expense [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Charged to expense | 0.9 | |
Severance and Retention [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Reserve beginning balance | 71.4 | |
Charged to expense | 1.9 | |
Cash payments | (38.1) | |
Non-cash adjustments | (2.1) | |
Reserve ending balance | 33.1 | |
Severance and Retention [Member] | Cost of Sales [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Charged to expense | 1.1 | |
Severance and Retention [Member] | General and Administrative Expense [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Charged to expense | 0.8 | |
Other [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Reserve beginning balance | 14.4 | |
Charged to expense | 0.1 | |
Cash payments | 0 | |
Non-cash adjustments | 0 | |
Reserve ending balance | 14.5 | |
Other [Member] | Cost of Sales [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Charged to expense | 0 | |
Other [Member] | General and Administrative Expense [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Charged to expense | $ 0.1 |
Business Restructuring Charge_3
Business Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring And Related Activities [Abstract] | ||
Restructuring charges recognized | $ 2 | $ 17.9 |
Severance and other employee related charges | $ 14.6 |
Commitments & Contingencies - A
Commitments & Contingencies - Additional Information (Detail) - USD ($) | Aug. 01, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | |||
Accrued loss contingencies | $ 75,000,000 | $ 65,000,000 | |
Sandoz [Member] | Pending Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Litigation plaintiff preliminary injunction bond amount | $ 157,300,000 | ||
Mylan [Member] | |||
Loss Contingencies [Line Items] | |||
Dismissal date | Dec. 27, 2018 | ||
Aurobindo | |||
Loss Contingencies [Line Items] | |||
Dismissal date | May 7, 2018 | ||
Sun And Sun Certain Affiliates | |||
Loss Contingencies [Line Items] | |||
Dismissal date | Jan. 18, 2018 | ||
Argentum [Member] | Restasis [Member] | |||
Loss Contingencies [Line Items] | |||
Settlement agreement date | December 7, 2016 |
Commitments & Contingencies -_2
Commitments & Contingencies - Additional Information 1 (Detail) | Dec. 28, 2015ProductPatent | Mar. 31, 2019EUR (€)CasesDefendant |
Botox [Member] | ||
Loss Contingencies [Line Items] | ||
Number of putative class actions filed | Product | 2 | |
Saint Regis Mohawk Tribe [Member] | Restasis [Member] | ||
Loss Contingencies [Line Items] | ||
Number of patents acquired | Patent | 6 | |
Dermavita Limited Partnership [Member] | Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Liquidated damages for violation of preliminary injunction | € | € 75,000 | |
Number of trademark opposition and cancellation pending | € | 150 | |
Product Liability Litigation [Member] | Pending Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Number of Plaintiffs | 2 | |
Product Liability Litigation [Member] | Pending Litigation [Member] | Canada [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Pending Claims, Number | 3 | |
Product Liability Litigation [Member] | Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Number of defendant cases | 500 | |
Juvederm [Member] | KBC [Member] | ||
Loss Contingencies [Line Items] | ||
Settlement agreement date | June 2017 | |
Breast Implant Litigation [Member] | Product Liability Litigation [Member] | Canada [Member] | ||
Loss Contingencies [Line Items] | ||
Number of putative class actions filed | 1 | |
Celexa/Lexapro Litigation [Member] | Product Liability Litigation [Member] | Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Number of defendant cases | Defendant | 150 | |
RepliForm Litigation [Member] | Product Liability Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Cases settled or dismissed | 200 | |
RepliForm Litigation [Member] | Product Liability Litigation [Member] | Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Number of defendant cases | 300 |
Warner Chilcott Limited ("WCL_3
Warner Chilcott Limited ("WCL") Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Consolidating Balance Sheets (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | |||||
Cash and cash equivalents | $ 788.5 | $ 880.4 | $ 994.8 | $ 1,817.2 | |
Marketable securities | 995.2 | 1,026.9 | |||
Accounts receivable, net | 2,731.2 | 2,868.1 | |||
Inventories | 943.2 | 846.9 | |||
Current assets held for sale | 45.7 | 34 | |||
Prepaid expenses and other current assets | 785.5 | 819.1 | |||
Total current assets | 6,289.3 | 6,475.4 | |||
Property, plant and equipment, net | 1,781.1 | 1,787 | |||
Right of use asset - operating leases | 455.4 | $ 462.1 | |||
Investments and other assets | 1,979.5 | 1,970.6 | |||
Non current assets held for sale | 897.2 | 882.2 | |||
Deferred tax assets | 1,032.6 | 1,063.7 | |||
Product rights and other intangibles | 42,264.6 | 43,695.4 | |||
Goodwill | 43,336.6 | 45,913.3 | |||
Total assets | 98,036.3 | 101,787.6 | |||
Current liabilities: | |||||
Accounts payable and accrued expenses | 4,634.4 | 4,787.2 | |||
Income taxes payable | 126.9 | 72.4 | |||
Current portion of long-term debt | 3,971.8 | 868.3 | |||
Current portion of lease liability - operating | 116.1 | ||||
Total current liabilities | 8,849.2 | 5,727.9 | |||
Long-term debt | 19,554.1 | 22,929.4 | |||
Lease liability - operating | 415.2 | ||||
Other long-term liabilities | 804.4 | 882 | |||
Other taxes payable | 1,618.2 | 1,615.5 | |||
Deferred tax liabilities | 5,235.6 | 5,501.8 | |||
Total liabilities | 36,476.7 | 36,656.6 | |||
Total equity / (deficit) | 61,559.6 | 65,131 | 72,346 | 73,837.1 | |
Total liabilities and equity | 98,036.3 | 101,787.6 | |||
Warner Chilcott Limited Parent Guarantor [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 0.1 | 0.1 | 0.1 | 0.1 | |
Total current assets | 0.1 | 0.1 | |||
Investment in subsidiaries | 59,338.6 | 62,940.2 | |||
Total assets | 59,338.7 | 62,940.3 | |||
Current liabilities: | |||||
Total equity / (deficit) | 59,338.7 | 62,940.3 | |||
Total liabilities and equity | 59,338.7 | 62,940.3 | |||
Allergan Capital S.a.r.l. (Guarantor) [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 60.4 | 1.8 | 76.9 | 593.1 | |
Marketable securities | 200.5 | 489.9 | |||
Intercompany receivables | 4,089.7 | 3,534.7 | |||
Total current assets | 4,350.6 | 4,026.4 | |||
Investment in subsidiaries | 67,744.4 | 73,846 | |||
Non current intercompany receivables | 15,603.7 | 28,239.4 | |||
Deferred tax assets | 51.4 | 43.6 | |||
Total assets | 87,750.1 | 106,155.4 | |||
Current liabilities: | |||||
Accounts payable and accrued expenses | 0.1 | 0.1 | |||
Intercompany payables | 17,016.3 | 14,315 | |||
Total current liabilities | 17,016.4 | 14,315.1 | |||
Long-term intercompany payables | 18,597.4 | ||||
Total liabilities | 17,016.4 | 32,912.5 | |||
Total equity / (deficit) | 70,733.7 | 73,242.9 | |||
Total liabilities and equity | 87,750.1 | 106,155.4 | |||
Allergan Funding SCS (Issuer) [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 1.3 | 0.8 | 0.1 | 0.1 | |
Intercompany receivables | 597.5 | 961 | |||
Total current assets | 598.8 | 961.8 | |||
Investment in subsidiaries | 25,425 | 26,406.9 | |||
Non current intercompany receivables | 18,090.2 | ||||
Total assets | 26,023.8 | 45,458.9 | |||
Current liabilities: | |||||
Accounts payable and accrued expenses | 103 | 156.3 | |||
Intercompany payables | 12.2 | 21.7 | |||
Income taxes payable | 3.9 | ||||
Current portion of long-term debt | 3,887.2 | 779.6 | |||
Total current liabilities | 4,006.3 | 957.6 | |||
Long-term debt | 14,738.2 | 18,090.2 | |||
Total liabilities | 18,744.5 | 19,047.8 | |||
Total equity / (deficit) | 7,279.3 | 26,411.1 | |||
Total liabilities and equity | 26,023.8 | 45,458.9 | |||
Allergan Finance LLC (Issuer and Guarantor) [Member] | |||||
Current assets: | |||||
Intercompany receivables | 33.7 | 16.7 | |||
Prepaid expenses and other current assets | 33.3 | 33.3 | |||
Total current assets | 67 | 50 | |||
Investment in subsidiaries | 96,294.5 | 99,255.9 | |||
Total assets | 96,361.5 | 99,305.9 | |||
Current liabilities: | |||||
Accounts payable and accrued expenses | 118.9 | 92.9 | |||
Intercompany payables | 10,443.1 | 10,442.6 | |||
Total current liabilities | 10,562 | 10,535.5 | |||
Long-term debt | 2,140.2 | 2,135.9 | |||
Long-term intercompany payables | 1,082.9 | 1,076.8 | |||
Total liabilities | 13,785.1 | 13,748.2 | |||
Total equity / (deficit) | 82,576.4 | 85,557.7 | |||
Total liabilities and equity | 96,361.5 | 99,305.9 | |||
Non-Guarantors [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 724.9 | 875.9 | 917.2 | 1,223 | |
Marketable securities | 794.7 | 537 | |||
Accounts receivable, net | 2,731.2 | 2,868.1 | |||
Receivables from Parents | 814.1 | 640.9 | |||
Inventories | 943.2 | 846.9 | |||
Intercompany receivables | 27,471.6 | 24,779.3 | |||
Current assets held for sale | 45.7 | 34 | |||
Prepaid expenses and other current assets | 747.6 | 785.4 | |||
Total current assets | 34,273 | 31,367.5 | |||
Property, plant and equipment, net | 1,781.1 | 1,787 | |||
Right of use asset - operating leases | 455.4 | ||||
Investments and other assets | 1,979.5 | 1,970.6 | |||
Non current intercompany receivables | 1,082.9 | 19,674.2 | |||
Non current assets held for sale | 897.2 | 882.2 | |||
Deferred tax assets | 981.2 | 1,020.1 | |||
Product rights and other intangibles | 42,264.6 | 43,695.4 | |||
Goodwill | 43,336.6 | 45,913.3 | |||
Total assets | 127,051.5 | 146,310.3 | |||
Current liabilities: | |||||
Accounts payable and accrued expenses | 4,412.3 | 4,538.1 | |||
Intercompany payables | 4,720.9 | 4,512.4 | |||
Payables to Parents | 3,034.9 | 2,829.2 | |||
Income taxes payable | 123 | 72.4 | |||
Current portion of long-term debt | 84.6 | 88.7 | |||
Current portion of lease liability - operating | 116.1 | ||||
Total current liabilities | 12,491.8 | 12,040.8 | |||
Long-term debt | 2,675.7 | 2,703.3 | |||
Lease liability - operating | 415.2 | ||||
Other long-term liabilities | 804.4 | 882 | |||
Long-term intercompany payables | 15,603.7 | 46,329.6 | |||
Other taxes payable | 1,612 | 1,615.5 | |||
Deferred tax liabilities | 5,235.6 | 5,501.8 | |||
Total liabilities | 38,838.4 | 69,073 | |||
Total equity / (deficit) | 88,213.1 | 77,237.3 | |||
Total liabilities and equity | 127,051.5 | 146,310.3 | |||
Warner Chilcott Limited [Member] | |||||
Current assets: | |||||
Cash and cash equivalents | 786.7 | 878.6 | 994.3 | 1,816.3 | |
Marketable securities | 995.2 | 1,026.9 | |||
Accounts receivable, net | 2,731.2 | 2,868.1 | |||
Receivables from Parents | 814.1 | 640.9 | |||
Inventories | 943.2 | 846.9 | |||
Current assets held for sale | 45.7 | 34 | |||
Prepaid expenses and other current assets | 780.9 | 818.7 | |||
Total current assets | 7,097 | 7,114.1 | |||
Property, plant and equipment, net | 1,781.1 | 1,787 | |||
Right of use asset - operating leases | 455.4 | ||||
Investments and other assets | 1,979.5 | 1,970.6 | |||
Non current assets held for sale | 897.2 | 882.2 | |||
Deferred tax assets | 1,032.6 | 1,063.7 | |||
Product rights and other intangibles | 42,264.6 | 43,695.4 | |||
Goodwill | 43,336.6 | 45,913.3 | |||
Total assets | 98,844 | 102,426.3 | |||
Current liabilities: | |||||
Accounts payable and accrued expenses | 4,634.3 | 4,787.4 | |||
Payables to Parents | 3,034.9 | 2,829.2 | |||
Income taxes payable | 126.9 | 72.4 | |||
Current portion of long-term debt | 3,971.8 | 868.3 | |||
Current portion of lease liability - operating | 116.1 | ||||
Total current liabilities | 11,884 | 8,557.3 | |||
Long-term debt | 19,554.1 | 22,929.4 | |||
Lease liability - operating | 415.2 | ||||
Other long-term liabilities | 804.4 | 882 | |||
Other taxes payable | 1,612 | 1,615.5 | |||
Deferred tax liabilities | 5,235.6 | 5,501.8 | |||
Total liabilities | 39,505.3 | 39,486 | |||
Total equity / (deficit) | 59,338.7 | 62,940.3 | $ 79,739 | $ 81,282.2 | |
Total liabilities and equity | 98,844 | 102,426.3 | |||
Eliminations [Member] | |||||
Current assets: | |||||
Intercompany receivables | (32,192.5) | (29,291.7) | |||
Total current assets | (32,192.5) | (29,291.7) | |||
Investment in subsidiaries | (248,802.5) | (262,449) | |||
Non current intercompany receivables | (16,686.6) | (66,003.8) | |||
Total assets | (297,681.6) | (357,744.5) | |||
Current liabilities: | |||||
Intercompany payables | (32,192.5) | (29,291.7) | |||
Total current liabilities | (32,192.5) | (29,291.7) | |||
Long-term intercompany payables | (16,686.6) | (66,003.8) | |||
Total liabilities | (48,879.1) | (95,295.5) | |||
Total equity / (deficit) | (248,802.5) | (262,449) | |||
Total liabilities and equity | $ (297,681.6) | $ (357,744.5) |
Warner Chilcott Limited ("WCL_4
Warner Chilcott Limited ("WCL") Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Consolidating Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Income Statements Captions [Line Items] | ||
Net revenues | $ 3,597.1 | $ 3,672.1 |
Operating expenses: | ||
Cost of sales (excludes amortization and impairment of acquired intangibles including product rights) | 497.8 | 522.8 |
Research and development | 435 | 474.7 |
Selling and marketing | 804 | 800 |
General and administrative | 308.3 | 295.9 |
Amortization | 1,399.4 | 1,697.6 |
Goodwill impairments | 2,467 | |
Asset sales and impairments, net | (5.2) | 13.1 |
Total operating expenses | 5,906.3 | 4,326.1 |
Cost of sales (excludes amortization and impairment of acquired intangibles including product rights) | 497.8 | 522.8 |
Operating (loss) | (2,309.2) | (654) |
Other (expense) / income, net | 13.8 | (78.8) |
Total other income (expense), net | (166.7) | (312.1) |
Income / (loss) before income taxes and noncontrolling interest | (2,475.9) | (966.1) |
(Benefit) for income taxes | (68.6) | (682.2) |
Net (loss) / income | (2,407.3) | (283.9) |
(Income) attributable to noncontrolling interest | (0.7) | (2.2) |
Other comprehensive (loss) / income, net of tax | (128.8) | 183.8 |
Other comprehensive income / (loss), net of tax | (128.8) | 183.8 |
Warner Chilcott Limited Parent Guarantor [Member] | ||
Operating expenses: | ||
Losses / (earnings) of equity interest subsidiaries | 2,405.7 | 231.3 |
Net (loss) / income | (2,405.7) | (231.3) |
Net (loss) / income attributable to members | (2,405.7) | (231.3) |
Other comprehensive (loss) / income, net of tax | (128.8) | 183.8 |
Comprehensive (loss) attributable to members | (2,534.5) | (47.5) |
Other comprehensive income / (loss), net of tax | (128.8) | 183.8 |
Allergan Capital S.a.r.l. (Guarantor) [Member] | ||
Operating expenses: | ||
Interest income / (expense), net | (23.4) | 259 |
Total other income (expense), net | (23.4) | 259 |
Income / (loss) before income taxes and noncontrolling interest | (23.4) | 259 |
Losses / (earnings) of equity interest subsidiaries | 2,345 | 506 |
Net (loss) / income | (2,368.4) | (247) |
Net (loss) / income attributable to members | (2,368.4) | (247) |
Other comprehensive (loss) / income, net of tax | (140.8) | 270.6 |
Comprehensive (loss) attributable to members | (2,509.2) | 23.6 |
Other comprehensive income / (loss), net of tax | (140.8) | 270.6 |
Allergan Funding SCS (Issuer) [Member] | ||
Operating expenses: | ||
General and administrative | (0.7) | |
Total operating expenses | (0.7) | |
Operating (loss) | 0.7 | |
Interest income / (expense), net | (59.6) | (3.3) |
Other (expense) / income, net | (0.1) | |
Total other income (expense), net | (59.7) | (3.3) |
Income / (loss) before income taxes and noncontrolling interest | (59.7) | (2.6) |
(Benefit) for income taxes | 0.3 | |
Losses / (earnings) of equity interest subsidiaries | 809.3 | 331.7 |
Net (loss) / income | (869) | (334.6) |
Net (loss) / income attributable to members | (869) | (334.6) |
Other comprehensive (loss) / income, net of tax | (172.6) | 118.5 |
Comprehensive (loss) attributable to members | (1,041.6) | (216.1) |
Other comprehensive income / (loss), net of tax | (172.6) | 118.5 |
Allergan Finance LLC (Issuer and Guarantor) [Member] | ||
Operating expenses: | ||
Interest income / (expense), net | (19.9) | (21.2) |
Total other income (expense), net | (19.9) | (21.2) |
Income / (loss) before income taxes and noncontrolling interest | (19.9) | (21.2) |
(Benefit) for income taxes | (12.2) | |
Losses / (earnings) of equity interest subsidiaries | 2,377.4 | 645.3 |
Net (loss) / income | (2,397.3) | (654.3) |
Net (loss) / income attributable to members | (2,397.3) | (654.3) |
Other comprehensive (loss) / income, net of tax | (584) | 358.5 |
Comprehensive (loss) attributable to members | (2,981.3) | (295.8) |
Other comprehensive income / (loss), net of tax | (584) | 358.5 |
Non-Guarantors [Member] | ||
Condensed Income Statements Captions [Line Items] | ||
Net revenues | 3,597.1 | 3,672.1 |
Operating expenses: | ||
Cost of sales (excludes amortization and impairment of acquired intangibles including product rights) | 497.8 | 522.8 |
Research and development | 435 | 474.7 |
Selling and marketing | 804 | 800 |
General and administrative | 306.1 | 294.8 |
Amortization | 1,399.4 | 1,697.6 |
Goodwill impairments | 2,467 | |
In-process research and development impairments | 522 | |
Asset sales and impairments, net | (5.2) | 13.1 |
Total operating expenses | 5,904.1 | 4,325 |
Cost of sales (excludes amortization and impairment of acquired intangibles including product rights) | 497.8 | 522.8 |
Operating (loss) | (2,307) | (652.9) |
Interest income / (expense), net | (77.6) | (414.8) |
Other (expense) / income, net | 13.9 | (78.8) |
Total other income (expense), net | (63.7) | (493.6) |
Income / (loss) before income taxes and noncontrolling interest | (2,370.7) | (1,146.5) |
(Benefit) for income taxes | (68.7) | (670.3) |
Net (loss) / income | (2,302) | (476.2) |
(Income) attributable to noncontrolling interest | (0.7) | (2.2) |
Net (loss) / income attributable to members | (2,302.7) | (478.4) |
Other comprehensive (loss) / income, net of tax | (128.8) | 183.8 |
Comprehensive (loss) attributable to members | (2,431.5) | (294.6) |
Other comprehensive income / (loss), net of tax | (128.8) | 183.8 |
Warner Chilcott Limited [Member] | ||
Condensed Income Statements Captions [Line Items] | ||
Net revenues | 3,597.1 | 3,672.1 |
Operating expenses: | ||
Cost of sales (excludes amortization and impairment of acquired intangibles including product rights) | 497.8 | 522.8 |
Research and development | 435 | 474.7 |
Selling and marketing | 804 | 800 |
General and administrative | 306.1 | 294.1 |
Amortization | 1,399.4 | 1,697.6 |
Goodwill impairments | 2,467 | |
In-process research and development impairments | 522 | |
Asset sales and impairments, net | (5.2) | 13.1 |
Total operating expenses | 5,904.1 | 4,324.3 |
Cost of sales (excludes amortization and impairment of acquired intangibles including product rights) | 497.8 | 522.8 |
Operating (loss) | (2,307) | (652.2) |
Interest income / (expense), net | (180.5) | (180.3) |
Other (expense) / income, net | 13.8 | (78.8) |
Total other income (expense), net | (166.7) | (259.1) |
Income / (loss) before income taxes and noncontrolling interest | (2,473.7) | (911.3) |
(Benefit) for income taxes | (68.7) | (682.2) |
Net (loss) / income | (2,405) | (229.1) |
(Income) attributable to noncontrolling interest | (0.7) | (2.2) |
Net (loss) / income attributable to members | (2,405.7) | (231.3) |
Other comprehensive (loss) / income, net of tax | (128.8) | 183.8 |
Comprehensive (loss) attributable to members | (2,534.5) | (47.5) |
Other comprehensive income / (loss), net of tax | (128.8) | 183.8 |
Eliminations [Member] | ||
Operating expenses: | ||
Losses / (earnings) of equity interest subsidiaries | (7,937.4) | (1,714.3) |
Net (loss) / income | 7,937.4 | 1,714.3 |
Net (loss) / income attributable to members | 7,937.4 | 1,714.3 |
Other comprehensive (loss) / income, net of tax | 1,026.2 | (931.4) |
Comprehensive (loss) attributable to members | 8,963.6 | 782.9 |
Other comprehensive income / (loss), net of tax | $ 1,026.2 | $ (931.4) |
Warner Chilcott Limited ("WCL_5
Warner Chilcott Limited ("WCL") Guarantor and Non-Guarantor Condensed Consolidating Financial Information - Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows From Operating Activities: | ||
Net (loss) / income | $ (2,407.3) | $ (283.9) |
Reconciliation to net cash provided by operating activities: | ||
Depreciation | 47.5 | 56.1 |
Amortization | 1,399.4 | 1,697.6 |
Provision for inventory reserve | 18.8 | 14.2 |
Share-based compensation | 52.3 | 72.5 |
Deferred income tax benefit | (229.7) | (1,026.4) |
In-process research and development impairments | 522 | |
Goodwill impairments | 2,467 | |
(Gain) / loss on asset sales and impairments, net | (5.2) | 13.1 |
Non-cash extinguishment of debt | 0.3 | |
Amortization of deferred financing costs | 4.6 | 6.3 |
Non-cash lease expense | 30.1 | |
Contingent consideration adjustments, including accretion | 18.7 | 5.3 |
Other, net | (10.3) | 6.5 |
Net cash provided by operating activities | 1,234 | 1,458.3 |
Cash Flows From Investing Activities: | ||
Additions to property, plant and equipment | (64.8) | (46.4) |
Additions to product rights and other intangibles | (7.5) | |
Additions to investments | (538.2) | (1,455.9) |
Proceeds from sale of investments and other assets | 569.1 | 4,889.5 |
Proceeds from sales of property, plant and equipment | 17.2 | 11.1 |
Acquisitions of businesses, net of cash acquired | (80.6) | |
Net cash (used in) / provided by investing activities | (104.8) | 2,932.3 |
Cash Flows From Financing Activities: | ||
Proceeds from borrowings of long-term indebtedness, including credit facility | 709 | |
Payments on debt, including finance lease obligations and credit facility | (159.4) | (4,322.1) |
Payments of contingent consideration and other financing | (2) | (9.3) |
Net cash (used in) financing activities | (1,227) | (5,207.7) |
Effect of currency exchange rate changes on cash and cash equivalents | 5.9 | (5.3) |
Net (decrease) in cash and cash equivalents | (91.9) | (822.4) |
Cash and cash equivalents at beginning of period | 880.4 | 1,817.2 |
Cash and cash equivalents at end of period | 788.5 | 994.8 |
Warner Chilcott Limited Parent Guarantor [Member] | ||
Cash Flows From Operating Activities: | ||
Net (loss) / income | (2,405.7) | (231.3) |
Reconciliation to net cash provided by operating activities: | ||
Losses / (earnings) of equity interest subsidiaries | 2,405.7 | 231.3 |
Dividends from subsidiaries | 1,045.8 | 1,859.5 |
Net cash provided by operating activities | 1,045.8 | 1,859.5 |
Cash Flows From Financing Activities: | ||
Dividend to Parent | (1,045.8) | (1,859.5) |
Net cash (used in) financing activities | (1,045.8) | (1,859.5) |
Cash and cash equivalents at beginning of period | 0.1 | 0.1 |
Cash and cash equivalents at end of period | 0.1 | 0.1 |
Allergan Capital S.a.r.l. (Guarantor) [Member] | ||
Cash Flows From Operating Activities: | ||
Net (loss) / income | (2,368.4) | (247) |
Reconciliation to net cash provided by operating activities: | ||
Losses / (earnings) of equity interest subsidiaries | 2,345 | 506 |
Changes in assets and liabilities (net of effects of acquisitions) | (207.4) | (1,675.2) |
Net cash provided by operating activities | (230.8) | (1,416.2) |
Cash Flows From Investing Activities: | ||
Additions to investments | (400) | |
Proceeds from sale of investments and other assets | 289.4 | 800 |
Net cash (used in) / provided by investing activities | 289.4 | 400 |
Cash Flows From Financing Activities: | ||
Proceeds from borrowings of long-term indebtedness, including credit facility | 700 | |
Payments on debt, including finance lease obligations and credit facility | (200) | |
Net cash (used in) financing activities | 500 | |
Net (decrease) in cash and cash equivalents | 58.6 | (516.2) |
Cash and cash equivalents at beginning of period | 1.8 | 593.1 |
Cash and cash equivalents at end of period | 60.4 | 76.9 |
Allergan Funding SCS (Issuer) [Member] | ||
Cash Flows From Operating Activities: | ||
Net (loss) / income | (869) | (334.6) |
Reconciliation to net cash provided by operating activities: | ||
Losses / (earnings) of equity interest subsidiaries | 809.3 | 331.7 |
Amortization of deferred financing costs | 4.1 | 5.9 |
Other, net | (1.3) | (1.5) |
Changes in assets and liabilities (net of effects of acquisitions) | 209.4 | 3,498.5 |
Net cash provided by operating activities | 152.5 | 3,500 |
Cash Flows From Financing Activities: | ||
Payments on debt, including finance lease obligations and credit facility | (152) | (3,500) |
Net cash (used in) financing activities | (152) | (3,500) |
Net (decrease) in cash and cash equivalents | 0.5 | |
Cash and cash equivalents at beginning of period | 0.8 | 0.1 |
Cash and cash equivalents at end of period | 1.3 | 0.1 |
Allergan Finance LLC (Issuer and Guarantor) [Member] | ||
Cash Flows From Operating Activities: | ||
Net (loss) / income | (2,397.3) | (654.3) |
Reconciliation to net cash provided by operating activities: | ||
Losses / (earnings) of equity interest subsidiaries | 2,377.4 | 645.3 |
Amortization of deferred financing costs | 0.4 | 0.4 |
Other, net | (0.4) | (0.4) |
Changes in assets and liabilities (net of effects of acquisitions) | 19.9 | 9 |
Non-Guarantors [Member] | ||
Cash Flows From Operating Activities: | ||
Net (loss) / income | (2,302) | (476.2) |
Reconciliation to net cash provided by operating activities: | ||
Depreciation | 47.5 | 56.1 |
Amortization | 1,399.4 | 1,697.6 |
Provision for inventory reserve | 18.8 | 14.2 |
Share-based compensation | 52.3 | 72.5 |
Deferred income tax benefit | (229.7) | (1,026.4) |
In-process research and development impairments | 522 | |
Goodwill impairments | 2,467 | |
(Gain) / loss on asset sales and impairments, net | (5.2) | 13.1 |
Loss on sale of Teva securities, net | 77.7 | |
Non-cash extinguishment of debt | 0.3 | |
Amortization of deferred financing costs | 0.1 | |
Non-cash lease expense | 30.1 | |
Contingent consideration adjustments, including accretion | 18.7 | 5.3 |
Other, net | (8.6) | 8.4 |
Changes in assets and liabilities (net of effects of acquisitions) | (196.2) | (1,453.5) |
Net cash provided by operating activities | 1,292.5 | (489.2) |
Cash Flows From Investing Activities: | ||
Additions to property, plant and equipment | (64.8) | (46.4) |
Additions to product rights and other intangibles | (7.5) | |
Additions to investments | (538.2) | (1,055.9) |
Proceeds from sale of investments and other assets | 279.7 | 4,089.5 |
Payments to settle Teva related matters | (466) | |
Proceeds from sales of property, plant and equipment | 17.2 | 11.1 |
Acquisitions of businesses, net of cash acquired | (80.6) | |
Net cash (used in) / provided by investing activities | (394.2) | 2,532.3 |
Cash Flows From Financing Activities: | ||
Proceeds from borrowings of long-term indebtedness, including credit facility | 9 | |
Payments on debt, including finance lease obligations and credit facility | (7.4) | (622.1) |
Payments of contingent consideration and other financing | (2) | (9.3) |
Proceeds from forward sale of Teva securities | 372.3 | |
Payments to settle Teva related matters | (234) | |
Dividend to Parent | (1,045.8) | (1,859.5) |
Net cash (used in) financing activities | (1,055.2) | (2,343.6) |
Effect of currency exchange rate changes on cash and cash equivalents | 5.9 | (5.3) |
Net (decrease) in cash and cash equivalents | (151) | (305.8) |
Cash and cash equivalents at beginning of period | 875.9 | 1,223 |
Cash and cash equivalents at end of period | 724.9 | 917.2 |
Warner Chilcott Limited [Member] | ||
Cash Flows From Operating Activities: | ||
Net (loss) / income | (2,405) | (229.1) |
Reconciliation to net cash provided by operating activities: | ||
Depreciation | 47.5 | 56.1 |
Amortization | 1,399.4 | 1,697.6 |
Provision for inventory reserve | 18.8 | 14.2 |
Share-based compensation | 52.3 | 72.5 |
Deferred income tax benefit | (229.7) | (1,026.4) |
In-process research and development impairments | 522 | |
Goodwill impairments | 2,467 | |
(Gain) / loss on asset sales and impairments, net | (5.2) | 13.1 |
Loss on sale of Teva securities, net | 77.7 | |
Non-cash extinguishment of debt | 0.3 | |
Amortization of deferred financing costs | 4.6 | 6.3 |
Non-cash lease expense | 30.1 | |
Contingent consideration adjustments, including accretion | 18.7 | 5.3 |
Other, net | (10.3) | 6.5 |
Changes in assets and liabilities (net of effects of acquisitions) | (174.3) | 378.8 |
Net cash provided by operating activities | 1,214.2 | 1,594.6 |
Cash Flows From Investing Activities: | ||
Additions to property, plant and equipment | (64.8) | (46.4) |
Additions to product rights and other intangibles | (7.5) | |
Additions to investments | (538.2) | (1,455.9) |
Proceeds from sale of investments and other assets | 569.1 | 4,889.5 |
Payments to settle Teva related matters | (466) | |
Proceeds from sales of property, plant and equipment | 17.2 | 11.1 |
Acquisitions of businesses, net of cash acquired | (80.6) | |
Net cash (used in) / provided by investing activities | (104.8) | 2,932.3 |
Cash Flows From Financing Activities: | ||
Proceeds from borrowings of long-term indebtedness, including credit facility | 709 | |
Payments on debt, including finance lease obligations and credit facility | (159.4) | (4,322.1) |
Payments of contingent consideration and other financing | (2) | (9.3) |
Proceeds from forward sale of Teva securities | 372.3 | |
Payments to settle Teva related matters | (234) | |
Dividend to Parent | (1,045.8) | (1,859.5) |
Net cash (used in) financing activities | (1,207.2) | (5,343.6) |
Effect of currency exchange rate changes on cash and cash equivalents | 5.9 | (5.3) |
Net (decrease) in cash and cash equivalents | (91.9) | (822) |
Cash and cash equivalents at beginning of period | 878.6 | 1,816.3 |
Cash and cash equivalents at end of period | 786.7 | 994.3 |
Eliminations [Member] | ||
Cash Flows From Operating Activities: | ||
Net (loss) / income | 7,937.4 | 1,714.3 |
Reconciliation to net cash provided by operating activities: | ||
Losses / (earnings) of equity interest subsidiaries | (7,937.4) | (1,714.3) |
Dividends from subsidiaries | (1,045.8) | (1,859.5) |
Net cash provided by operating activities | (1,045.8) | (1,859.5) |
Cash Flows From Financing Activities: | ||
Dividend to Parent | 1,045.8 | 1,859.5 |
Net cash (used in) financing activities | $ 1,045.8 | $ 1,859.5 |