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As Of Filer Filing For·On·As Docs:Size 3/01/21 PERRIGO Co. plc 8-K:2,9 3/01/21 13:1.4M |
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Document |
Year Ended | |||||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2018 | |||||||||||||||
Net sales | $ | 5,063.3 | $ | 4,837.4 | $ | 4,731.7 | |||||||||||
Cost of sales | 3,248.1 | 3,064.1 | 2,900.2 | ||||||||||||||
Gross profit | 1,815.2 | 1,773.3 | 1,831.5 | ||||||||||||||
Operating expenses | |||||||||||||||||
Distribution | 100.4 | 96.1 | 94.2 | ||||||||||||||
Research and development | 177.7 | 187.4 | 218.6 | ||||||||||||||
Selling | 579.1 | 567.0 | 595.7 | ||||||||||||||
Administration | 496.0 | 503.0 | 435.9 | ||||||||||||||
Impairment charges | 346.8 | 184.5 | 224.4 | ||||||||||||||
Restructuring | 3.5 | 26.3 | 21.0 | ||||||||||||||
Other operating expense (income) | (3.7) | 4.2 | 5.2 | ||||||||||||||
Total operating expenses | 1,699.8 | 1,568.5 | 1,595.0 | ||||||||||||||
Operating income | 115.4 | 204.8 | 236.5 | ||||||||||||||
Change in financial assets | 96.4 | (22.1) | (188.7) | ||||||||||||||
Interest expense, net | 131.2 | 121.7 | 128.0 | ||||||||||||||
Other (income) expense, net | 17.2 | (66.0) | 6.1 | ||||||||||||||
Loss on extinguishment of debt | 20.0 | 0.2 | 0.5 | ||||||||||||||
Income (loss) before income taxes | (149.4) | 171.0 | 290.6 | ||||||||||||||
Income tax expense | 13.2 | 24.9 | 159.6 | ||||||||||||||
Net income (loss) | $ | (162.6) | $ | 146.1 | $ | 131.0 | |||||||||||
Earnings (loss) per share | |||||||||||||||||
Basic | $ | (1.19) | $ | 1.07 | $ | 0.95 | |||||||||||
Diluted | $ | (1.19) | $ | 1.07 | $ | 0.95 | |||||||||||
Weighted-average shares outstanding | |||||||||||||||||
Basic | 136.1 | 136.0 | 137.8 | ||||||||||||||
Diluted | 136.1 | 136.5 | 138.3 | ||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 641.5 | $ | 354.3 | |||||||
Accounts receivable, net of allowance for credit losses of $7.6 and $6.7, respectively | 1,054.2 | 1,243.2 | |||||||||
Inventories | 1,200.2 | 967.3 | |||||||||
Prepaid expenses and other current assets | 237.6 | 165.8 | |||||||||
Total current assets | 3,133.5 | 2,730.6 | |||||||||
Property, plant and equipment, net | 996.0 | 902.8 | |||||||||
Operating lease assets | 186.0 | 129.9 | |||||||||
Goodwill and indefinite-lived intangible assets | 3,783.9 | 4,185.5 | |||||||||
Definite-lived intangible assets, net | 2,974.3 | 2,921.2 | |||||||||
Deferred income taxes | 44.2 | 5.4 | |||||||||
Other non-current assets | 370.5 | 426.0 | |||||||||
Total non-current assets | 8,354.9 | 8,570.8 | |||||||||
Total assets | $ | 11,488.4 | $ | 11,301.4 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Accounts payable | $ | 543.8 | $ | 520.2 | |||||||
Payroll and related taxes | 175.2 | 156.4 | |||||||||
Accrued customer programs | 365.9 | 394.4 | |||||||||
Other accrued liabilities | 250.3 | 229.2 | |||||||||
Accrued income taxes | 9.0 | 32.2 | |||||||||
Current indebtedness | 37.8 | 3.4 | |||||||||
Total current liabilities | 1,382.0 | 1,335.8 | |||||||||
Long-term debt, less current portion | 3,528.3 | 3,365.8 | |||||||||
Deferred income taxes | 279.3 | 280.6 | |||||||||
Other non-current liabilities | 643.7 | 515.1 | |||||||||
Total non-current liabilities | 4,451.3 | 4,161.5 | |||||||||
Total liabilities | 5,833.3 | 5,497.3 | |||||||||
Commitments and contingencies - Refer to Note 17 | |||||||||||
Shareholders’ equity | |||||||||||
Controlling interests: | |||||||||||
Preferred shares, $0.0001 par value per share, 10 shares authorized | — | — | |||||||||
Ordinary
shares, €0.001 par value per share, 10,000 shares authorized | 7,118.2 | 7,359.9 | |||||||||
Accumulated other comprehensive income | 395.0 | 139.4 | |||||||||
Retained earnings (accumulated deficit) | (1,858.1) | (1,695.5) | |||||||||
Total controlling interests | 5,655.1 | 5,803.8 | |||||||||
Noncontrolling interest | — | 0.3 | |||||||||
Total shareholders’ equity | 5,655.1 | 5,804.1 | |||||||||
Total liabilities and shareholders' equity | $ | 11,488.4 | $ | 11,301.4 | |||||||
Supplemental Disclosures of Balance Sheet Information | |||||||||||
Preferred shares, issued and outstanding | — | — | |||||||||
Ordinary shares, issued and outstanding | 133.1 | 136.1 |
Year Ended | |||||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2018 | |||||||||||||||
Cash Flows From (For) Operating Activities | |||||||||||||||||
Net income (loss) | $ | (162.6) | $ | 146.1 | $ | 131.0 | |||||||||||
Adjustments to derive cash flows: | |||||||||||||||||
Depreciation and amortization | 384.8 | 396.5 | 423.6 | ||||||||||||||
Loss (Gain) on sale of business | 20.9 | (71.7) | — | ||||||||||||||
Share-based compensation | 58.5 | 52.2 | 37.7 | ||||||||||||||
Impairment charges | 346.8 | 184.5 | 224.4 | ||||||||||||||
Asset abandonments | — | 11.0 | — | ||||||||||||||
Change in financial assets | 96.4 | (22.1) | (188.7) | ||||||||||||||
Loss on extinguishment of debt | 20.0 | 0.2 | 0.5 | ||||||||||||||
Restructuring charges | 3.5 | 26.3 | 21.0 | ||||||||||||||
Deferred income taxes | (54.5) | (43.9) | (17.9) | ||||||||||||||
Amortization of debt premium | (2.4) | (4.4) | (8.1) | ||||||||||||||
Other non-cash adjustments, net | (6.0) | 26.6 | (11.1) | ||||||||||||||
Subtotal | 705.4 | 701.3 | 612.4 | ||||||||||||||
Increase (decrease) in cash due to: | |||||||||||||||||
Accounts receivable | 168.9 | (140.7) | 21.0 | ||||||||||||||
Inventories | (170.6) | (67.0) | (98.6) | ||||||||||||||
Accounts payable | (2.7) | 17.0 | 28.8 | ||||||||||||||
Payroll and related taxes | 10.8 | (3.7) | (34.5) | ||||||||||||||
Accrued customer programs | (43.3) | (48.6) | 25.5 | ||||||||||||||
Accrued liabilities | (23.1) | (23.2) | (20.9) | ||||||||||||||
Accrued income taxes | (7.0) | (74.5) | 68.1 | ||||||||||||||
Other, net | (2.2) | 27.2 | (8.8) | ||||||||||||||
Subtotal | (69.2) | (313.5) | (19.4) | ||||||||||||||
Net cash from (for) operating activities | 636.2 | 387.8 | 593.0 | ||||||||||||||
Cash Flows From (For) Investing Activities | |||||||||||||||||
Proceeds from royalty rights | 4.1 | 2.9 | 13.7 | ||||||||||||||
Acquisitions of businesses, net of cash acquired | (168.5) | (747.7) | — | ||||||||||||||
Asset acquisitions | (35.2) | (149.1) | (35.6) | ||||||||||||||
Purchase of equity method investment | (15.0) | — | — | ||||||||||||||
Purchase of investment securities | — | — | (7.5) | ||||||||||||||
Proceeds from the Royalty Pharma contingent milestone | — | 250.0 | — | ||||||||||||||
Additions to property, plant and equipment | (170.4) | (137.7) | (102.6) | ||||||||||||||
Net proceeds from sale of business | 187.8 | 182.5 | 5.2 | ||||||||||||||
Other investing, net | 9.4 | 3.0 | — | ||||||||||||||
Net cash from (for) investing activities | (187.8) | (596.1) | (126.8) | ||||||||||||||
Cash Flows From (For) Financing Activities | |||||||||||||||||
Borrowings (repayments) of revolving credit agreements and other financing, net | (3.9) | 0.5 | (4.4) | ||||||||||||||
Issuances of long-term debt | 743.8 | 600.0 | 431.0 | ||||||||||||||
Payments on long-term debt | (590.0) | (476.0) | (482.5) | ||||||||||||||
Premiums on early debt retirement | (19.0) | — | — | ||||||||||||||
Deferred financing fees | (6.7) | (1.0) | (2.4) | ||||||||||||||
Issuance of ordinary shares | — | 0.9 | 1.3 | ||||||||||||||
Repurchase of ordinary shares | (164.2) | — | (400.0) | ||||||||||||||
Cash dividends | (123.9) | (112.4) | (104.9) | ||||||||||||||
Other financing, net | (17.2) | (10.2) | (10.0) | ||||||||||||||
Net cash from (for) financing activities | (181.1) | 1.8 | (571.9) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 19.9 | 9.7 | (21.9) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 287.2 | (196.8) | (127.6) | ||||||||||||||
Cash and cash equivalents, beginning of period | 354.3 | 551.1 | 678.7 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 641.5 | $ | 354.3 | $ | 551.1 | |||||||||||
TABLE I | ||||||||||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||||||||||||||||||||
SELECTED CONSOLIDATED INFORMATION | ||||||||||||||||||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Consolidated | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Restructuring, Impairment Charges, and Other Operating Income | Operating Income (Loss) | Interest, Other, and Change in Financial Assets | Income Tax Expense (Benefit) | Net Income (Loss)* | Diluted Earnings (Loss) per Share* | ||||||||||||||||||||||||||||
Reported | $ | 1,289.5 | $ | 469.2 | $ | 46.1 | $ | 330.0 | $ | 145.4 | $ | (52.3) | $ | 156.0 | $ | (33.3) | $ | (175.0) | $ | (1.29) | ||||||||||||||||||
As a % of reported net sales | 36.4 | % | 3.6 | % | 25.6 | % | 11.3 | % | (4.1) | % | 12.1 | % | (2.6) | % | (13.6) | % | ||||||||||||||||||||||
Effective tax rate | 16.0 | % | ||||||||||||||||||||||||||||||||||||
Pre-tax adjustments: | ||||||||||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | — | $ | 44.2 | $ | (0.4) | $ | (31.9) | $ | — | $ | 76.5 | $ | — | $ | — | $ | 76.5 | $ | 0.56 | ||||||||||||||||||
Acquisition
and integration-related charges and contingent consideration adjustments | — | 0.8 | — | (3.4) | (0.4) | 4.6 | — | — | 4.6 | 0.03 | ||||||||||||||||||||||||||||
Impairment charges | — | — | — | — | (144.4) | 144.4 | — | — | 144.4 | 1.06 | ||||||||||||||||||||||||||||
(Gain) loss on divestitures | — | — | — | (0.5) | 0.5 | — | (2.3) | — | 2.3 | 0.02 | ||||||||||||||||||||||||||||
Unusual litigation | — | — | — | (11.7) | 0.5 | 11.2 | — | — | 11.2 | 0.08 | ||||||||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | (0.1) | (1.6) | 1.7 | — | — | 1.7 | 0.01 | ||||||||||||||||||||||||||||
Change in financial assets | — | — | — | — | — | — | (121.2) | — | 121.2 | 0.89 | ||||||||||||||||||||||||||||
(Gain) Loss on investment securities | — | — | — | — | — | — | (0.7) | — | 0.7 | 0.01 | ||||||||||||||||||||||||||||
Separation and reorganization expense | — | — | — | (0.2) | — | 0.2 | — | — | 0.2 | — | ||||||||||||||||||||||||||||
Non-GAAP tax adjustments** | — | — | — | — | — | — | — | 61.3 | (61.3) | (0.44) | ||||||||||||||||||||||||||||
Adjusted | 1,289.5 | $ | 514.2 | $ | 45.7 | $ | 282.2 | $ | — | $ | 186.3 | $ | 31.8 | $ | 28.0 | $ | 126.5 | $ | 0.93 | |||||||||||||||||||
As a % of reported net sales | 39.9 | % | 3.5 | % | 21.9 | % | 14.4 | % | 2.5 | % | 2.2 | % | 9.8 | % | ||||||||||||||||||||||||
Adjusted effective tax rate | 18.1 | % | ||||||||||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | ||||||||||||||||||||||||||||||||||||||
Reported | 135.4 | |||||||||||||||||||||||||||||||||||||
Effect of dilution as reported amount was a loss, while adjusted amount was income*** | 1.2 | |||||||||||||||||||||||||||||||||||||
Adjusted | 136.6 | |||||||||||||||||||||||||||||||||||||
*Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item. | ||||||||||||||||||||||||||||||||||||||
**The non-GAAP tax adjustments of $61.3 million are primarily due to: (1) $9.0 million of additional tax expense related to pre-tax non-GAAP adjustments calculated
based upon the applicable jurisdictions of the pre-tax items and (2) removal of $51.5 million tax benefit related to valuation allowance releases in the U.S. | ||||||||||||||||||||||||||||||||||||||
***In the period of a net loss, reported diluted shares outstanding equal basic shares outstanding. |
TABLE I (CONTINUED) | ||||||||||||||||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||||||||||||||||||||||||||
SELECTED CONSOLIDATED INFORMATION | ||||||||||||||||||||||||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Restructuring, Impairment Charges, and Other Operating Income | Operating Income (Loss) | Interest, Other, and Change in Financial Assets | Income Tax Expense (Benefit) | Net
Income (Loss)** | Diluted Earnings (Loss) per Share** | ||||||||||||||||||||||||||||||||||
Reported | $ | 1,322.8 | $ | 480.9 | $ | 59.4 | $ | 288.6 | $ | 139.7 | $ | (6.8) | $ | 27.4 | $ | (15.2) | $ | (19.0) | $ | (0.14) | ||||||||||||||||||||||||
As a % of reported net sales | 36.4 | % | 4.5 | % | 21.8 | % | 10.6 | % | (0.5) | % | 2.1 | % | (1.2) | % | (1.4) | % | ||||||||||||||||||||||||||||
Effective tax rate | 44.5 | % | ||||||||||||||||||||||||||||||||||||||||||
Pre-tax adjustments: | ||||||||||||||||||||||||||||||||||||||||||||
Amortization expense primarily related to acquired intangible assets | $ | — | $ | 48.8 | $ | (0.1) | $ | (30.9) | $ | — | $ | 79.8 | $ | — | $ | — | $ | 79.8 | $ | 0.59 | ||||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | — | 0.4 | (0.4) | — | — | (0.4) | — | ||||||||||||||||||||||||||||||||||
Separation and reorganization expense | — | — | — | (2.2) | — | 2.2 | — | — | 2.2 | 0.02 | ||||||||||||||||||||||||||||||||||
Impairment charges | — | — | — | — | (141.6) | 141.6 | — | — | 141.6 | 1.03 | ||||||||||||||||||||||||||||||||||
Acquisition and integration-related charges and contingent consideration adjustments | — | 0.1 | — | (1.0) | 0.5 | 0.6 | — | — | 0.6 | — | ||||||||||||||||||||||||||||||||||
Unusual litigation | — | — | — | (1.8) | — | 1.8 | — | — | 1.8 | 0.01 | ||||||||||||||||||||||||||||||||||
(Gain) Loss on investment securities | — | — | — | — | — | — | 4.0 | — | (4.0) | (0.03) | ||||||||||||||||||||||||||||||||||
(Gain) loss on divestitures | — | — | — | 3.6 | 1.0 | (4.6) | (0.7) | — | (3.9) | (0.03) | ||||||||||||||||||||||||||||||||||
Change in financial assets | — | — | — | — | — | — | 3.6 | — | (3.6) | (0.03) | ||||||||||||||||||||||||||||||||||
Non-GAAP tax adjustments* | — | — | — | — | — | — | — | 50.3 | (50.3) | (0.36) | ||||||||||||||||||||||||||||||||||
Adjusted | $ | 1,322.8 | $ | 529.8 | $ | 59.3 | $ | 256.3 | $ | — | $ | 214.2 | $ | 34.3 | $ | 35.1 | $ | 144.8 | $ | 1.06 | ||||||||||||||||||||||||
As a % of reported net sales | 40.1 | % | 4.5 | % | 19.4 | % | 16.2 | % | 2.6 | % | 2.7 | % | 10.9 | % | ||||||||||||||||||||||||||||||
Adjusted effective tax rate | 19.5 | % | ||||||||||||||||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | ||||||||||||||||||||||||||||||||||||||||||||
Reported | 137.0 | |||||||||||||||||||||||||||||||||||||||||||
*The non-GAAP tax adjustments are primarily due to: (1) $4.9 million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax items and (2) $43.8 million of valuation allowance releases in the U.S. and Australia. | ||||||||||||||||||||||||||||||||||||||||||||
**Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item. | ||||||||||||||||||||||||||||||||||||||||||||
TABLE I (CONTINUED) | |||||||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||||||
SELECTED CONSOLIDATED INFORMATION | |||||||||||||||||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||||||||||||||
(unaudited) | Twelve Months Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||
Consolidated | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Restructuring, Impairment Charges, and Other Operating Income | Operating Income | Interest, Other, and Change in Financial Assets | Income Tax Expense | Net Income (Loss)** | Diluted Earnings (Loss) per Share** | |||||||||||||||||||||||||
Reported | $ | 5,063.3 | $ | 1,815.2 | $ | 177.7 | $ | 1,175.5 | $ | 346.6 | $ | 115.4 | $ | 264.8 | $ | 13.2 | $ | (162.6) | $ | (1.19) | |||||||||||||||
As a % of reported net sales | 35.9 | % | 3.5 | % | 23.2 | % | 6.8 | % | 2.3 | % | 5.2 | % | 0.3 | % | (3.2) | % | |||||||||||||||||||
Effective tax rate | (8.8) | % | |||||||||||||||||||||||||||||||||
Pre-tax adjustments: | |||||||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | — | $ | 172.2 | $ | (1.5) | $ | (121.3) | $ | — | $ | 295.0 | $ | — | $ | — | $ | 295.0 | $ | 2.15 | |||||||||||||||
Acquisition
and integration-related charges and contingent consideration adjustments | — | 2.8 | — | (9.8) | (1.3) | 13.9 | — | — | 13.9 | 0.10 | |||||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | (0.1) | (3.5) | 3.6 | — | — | 3.6 | 0.03 | |||||||||||||||||||||||||
(Gain) loss on divestitures | — | — | — | (0.8) | 0.6 | 0.2 | (20.8) | — | 21.0 | 0.15 | |||||||||||||||||||||||||
Change in financial assets | — | — | — | — | — | — | (95.3) | — | 95.3 | 0.69 | |||||||||||||||||||||||||
Unusual litigation | — | — | — | (24.2) | 4.4 | 19.8 | — | — | 19.8 | 0.14 | |||||||||||||||||||||||||
Separation and reorganization expense | — | — | — | (1.1) | — | 1.1 | — | — | 1.1 | 0.01 | |||||||||||||||||||||||||
Impairment charges | — | — | — | — | (346.8) | 346.8 | — | — | 346.8 | 2.53 | |||||||||||||||||||||||||
Loss on early debt extinguishment | — | — | — | — | — | — | (20.0) | — | 20.0 | 0.15 | |||||||||||||||||||||||||
(Gain) Loss on investment securities | — | — | — | — | — | — | (4.2) | — | 4.2 | 0.03 | |||||||||||||||||||||||||
Non-GAAP tax adjustments* | — | — | — | — | — | — | — | 105.9 | (105.9) | (0.77) | |||||||||||||||||||||||||
Adjusted | $ | 5,063.3 | $ | 1,990.2 | $ | 176.2 | $ | 1,018.2 | $ | — | $ | 795.8 | $ | 124.5 | $ | 119.1 | $ | 552.2 | $ | 4.02 | |||||||||||||||
As a % of reported net sales | 39.3 | % | 3.5 | % | 20.1 | % | 15.7 | % | 2.5 | % | 2.4 | % | 10.9 | % | |||||||||||||||||||||
Adjusted effective tax rate | 17.7 | % | |||||||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | |||||||||||||||||||||||||||||||||||
Reported | 136.1 | ||||||||||||||||||||||||||||||||||
Effect of dilution as reported amount was a loss, while adjusted amount was income*** | 1.1 | ||||||||||||||||||||||||||||||||||
Adjusted | 137.2 | ||||||||||||||||||||||||||||||||||
*The
non-GAAP tax adjustments of $105.9 million are primarily due to: (1) $55.4 million of additional tax expense related to pre-tax non-GAAP adjustments calculated based upon the applicable jurisdictions of the pre-tax items, (2) removal of $51.5 million tax benefit related to valuation allowance releases in the U.S. recorded in the fourth quarter of 2020, (3) removal of $15.9 million tax benefit related to U.S. CARES Act retroactive adjustments to the 2018 and 2019 tax years recorded in the first quarter of 2020 and (4) removal of $18.1 million tax expense related to Base Erosion and Anti-Abuse Tax (BEAT) expense resulting from the adoption of Section 163(j) interest expense limitation regulations recorded in the third quarter of 2020. | |||||||||||||||||||||||||||||||||||
**Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item. | |||||||||||||||||||||||||||||||||||
***In the period of a net loss, reported diluted shares outstanding equal basic shares outstanding. |
TABLE I (CONTINUED) | |||||||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||||||
SELECTED CONSOLIDATED INFORMATION | |||||||||||||||||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||||||||||||||
(unaudited) | Twelve Months Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||
Consolidated | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Restructuring, Impairment Charges, and Other Operating Income | Operating Income | Interest, Other, and Change in Financial Assets | Income Tax Expense | Net Income**** | Diluted Earnings per Share**** | |||||||||||||||||||||||||
Reported | $ | 4,837.4 | $ | 1,773.3 | $ | 187.4 | $ | 1,166.1 | $ | 215.0 | $ | 204.8 | $ | 33.8 | $ | 24.9 | $ | 146.1 | $ | 1.07 | |||||||||||||||
As a % of reported net sales | 36.7 | % | 3.9 | % | 24.1 | % | 4.4 | % | 4.2 | % | 0.7 | % | 0.5 | % | 3.0 | % | |||||||||||||||||||
Effective tax rate | 14.6 | % | |||||||||||||||||||||||||||||||||
Pre-tax adjustments: | |||||||||||||||||||||||||||||||||||
Amortization expense primarily related to acquired intangible assets | $ | — | $ | 191.9 | $ | (0.4) | $ | (119.0) | $ | — | $ | 311.3 | $ | — | $ | — | $ | 311.3 | $ | 2.29 | |||||||||||||||
Acquisition and integration-related charges and contingent consideration adjustments | — | 5.7 | — | (14.6) | 1.3 | 19.0 | — | — | 19.0 | 0.14 | |||||||||||||||||||||||||
Operating results attributable to held-for-sale business* | (24.1) | (12.1) | (0.5) | (9.4) | — | (2.2) | — | — | (2.2) | (0.02) | |||||||||||||||||||||||||
Separation and reorganization expense | — | — | — | (17.9) | — | 17.9 | — | — | 17.9 | 0.13 | |||||||||||||||||||||||||
Asset Abandonment | — | — | — | — | (7.1) | 7.1 | — | — | 7.1 | 0.05 | |||||||||||||||||||||||||
Impairment charges | — | — | — | — | (184.5) | 184.5 | — | — | 184.5 | 1.35 | |||||||||||||||||||||||||
Unusual litigation | — | — | — | (27.2) | — | 27.2 | — | — | 27.2 | 0.20 | |||||||||||||||||||||||||
(Gain) Loss on investment securities | — | — | — | — | — | — | (4.7) | — | 4.7 | 0.04 | |||||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | — | (26.3) | 26.3 | — | — | 26.3 | 0.19 | |||||||||||||||||||||||||
(Gain) loss on divestitures | — | — | — | 3.5 | 1.6 | (5.1) | 70.9 | — | (76.0) | (0.56) | |||||||||||||||||||||||||
Change in financial assets | — | — | — | — | — | — | 22.1 | — | (22.1) | (0.16) | |||||||||||||||||||||||||
Loss on early debt extinguishment | — | — | — | — | — | — | (0.2) | — | 0.2 | — | |||||||||||||||||||||||||
Ranitidine market withdrawal** | 9.2 | 18.4 | — | — | — | 18.4 | — | — | 18.4 | 0.14 | |||||||||||||||||||||||||
Non-GAAP tax adjustments*** | — | — | — | — | — | — | — | 112.9 | (112.9) | (0.83) | |||||||||||||||||||||||||
Adjusted | $ | 4,822.5 | $ | 1,977.2 | $ | 186.5 | $ | 981.5 | $ | — | $ | 809.2 | $ | 121.9 | $ | 137.8 | $ | 549.5 | $ | 4.03 | |||||||||||||||
As a % of adjusted net sales | 41.0 | % | 3.9 | % | 20.4 | % | 16.8 | % | 2.5 | % | 2.9 | % | 11.4 | % | |||||||||||||||||||||
Adjusted effective tax rate | 20.0 | % | |||||||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | |||||||||||||||||||||||||||||||||||
*Held-for-sale business includes our now divested animal health business. | Reported | 136.5 | |||||||||||||||||||||||||||||||||
**Ranitidine market withdrawal includes reversal of recorded returns and inventory write-downs. | |||||||||||||||||||||||||||||||||||
***The non-GAAP tax adjustments are primarily due to: (1) $67.5 million tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax items and (2) $43.8 million of valuation allowance releases in the U.S. and Australia. | |||||||||||||||||||||||||||||||||||
****Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item. |
TABLE II | |||||||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Worldwide Consumer* | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income | Net Sales | Gross
Profit | R&D Expense | DSG&A Expense | Operating Income | |||||||||||||||||||||||||
Reported | $ | 1,053.2 | $ | 384.4 | $ | 32.6 | $ | 306.5 | $ | 44.1 | $ | 1,066.9 | $ | 392.5 | $ | 34.1 | $ | 264.0 | $ | 85.6 | |||||||||||||||
As a % of reported net sales | 36.5 | % | 3.1 | % | 29.1 | % | 4.2 | % | 36.8 | % | 3.2 | % | 24.7 | % | 8.0 | % | |||||||||||||||||||
Pre-tax adjustments: | |||||||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | — | $ | 22.9 | $ | (0.4) | $ | (31.8) | $ | 55.1 | $ | — | $ | 26.7 | $ | (0.1) | $ | (30.8) | $ | 57.5 | |||||||||||||||
Unusual litigation | — | — | — | (11.7) | 11.2 | — | — | — | (1.8) | 1.8 | |||||||||||||||||||||||||
Impairment charges | — | — | — | — | — | — | — | — | — | 9.6 | |||||||||||||||||||||||||
Separation and reorganization expense | — | — | — | (0.2) | 0.2 | — | — | — | (2.2) | 2.2 | |||||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | — | 1.6 | — | — | — | — | (0.5) | |||||||||||||||||||||||||
(Gain) loss on divestitures | — | — | — | (0.5) | 0.5 | — | — | — | 4.5 | (4.6) | |||||||||||||||||||||||||
Acquisition
and integration-related charges and contingent consideration adjustments | — | 0.8 | — | (3.4) | 4.2 | — | 0.1 | — | (1.0) | 1.1 | |||||||||||||||||||||||||
Adjusted | $ | 1,053.2 | $ | 408.1 | $ | 32.2 | $ | 258.9 | $ | 116.9 | $ | 1,066.9 | $ | 419.3 | $ | 34.0 | $ | 232.7 | $ | 152.7 | |||||||||||||||
As a % of reported net sales | 38.7 | % | 3.1 | % | 24.6 | % | 11.1 | % | 39.3 | % | 3.2 | % | 21.8 | % | 14.3% | ||||||||||||||||||||
*Worldwide Consumer includes the CSCA and CSCI segments in addition to Corporate. | |||||||||||||||||||||||||||||||||||
TABLE II (CONTINUED) | |||||||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Consumer Self-Care Americas | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income | Net Sales | Gross
Profit | R&D Expense | DSG&A Expense | Operating Income | |||||||||||||||||||||||||
Reported | $ | 700.8 | $ | 226.3 | $ | 20.8 | $ | 88.0 | $ | 117.5 | $ | 710.5 | $ | 233.0 | $ | 22.9 | $ | 78.5 | $ | 130.7 | |||||||||||||||
As a % of reported net sales | 32.3 | % | 3.0 | % | 12.6 | % | 16.8 | % | 32.8 | % | 3.2 | % | 11.1 | % | 18.4 | % | |||||||||||||||||||
Pre-tax adjustments: | |||||||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | — | $ | 5.3 | $ | — | $ | (7.3) | $ | 12.7 | $ | — | $ | 6.7 | $ | — | $ | (6.5) | $ | 13.2 | |||||||||||||||
Unusual litigation | — | — | — | — | (0.5) | — | — | — | — | — | |||||||||||||||||||||||||
(Gain) loss on divestitures | — | — | — | — | — | — | — | — | — | (0.1) | |||||||||||||||||||||||||
Separation and reorganization expense | — | — | — | — | — | — | — | — | 0.3 | (0.3) | |||||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | — | 0.4 | — | — | — | — | 1.0 | |||||||||||||||||||||||||
Acquisition and integration-related charges and contingent consideration adjustments | — | — | — | (2.0) | 2.0 | — | 0.1 | — | (0.1) | 0.3 | |||||||||||||||||||||||||
Adjusted | $ | 700.8 | $ | 231.6 | $ | 20.8 | $ | 78.7 | $ | 132.1 | $ | 710.5 | $ | 239.8 | $ | 22.9 | $ | 72.2 | $ | 144.8 | |||||||||||||||
As a % of reported net sales | 33.0 | % | 3.0 | % | 11.2 | % | 18.8 | % | 33.8 | % | 3.2 | % | 10.2 | % | 20.4% | ||||||||||||||||||||
TABLE II (CONTINUED) | |||||||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Consumer Self-Care International | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income (Loss) | Net
Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income | |||||||||||||||||||||||||
Reported | $ | 352.4 | $ | 157.8 | $ | 11.8 | $ | 158.4 | $ | (13.4) | $ | 356.4 | $ | 159.5 | $ | 11.2 | $ | 138.6 | $ | 1.3 | |||||||||||||||
As a % of reported net sales | 44.8 | % | 3.3 | % | 44.9 | % | (3.8) | % | 44.8 | % | 3.1 | % | 38.9 | % | 0.4 | % | |||||||||||||||||||
Pre-tax adjustments: | |||||||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | — | $ | 17.6 | $ | (0.4) | $ | (24.5) | $ | 42.4 | $ | — | $ | 20.0 | $ | (0.1) | $ | (24.2) | $ | 44.3 | |||||||||||||||
Impairment charges | — | — | — | — | — | — | — | — | — | 9.6 | |||||||||||||||||||||||||
Unusual litigation | — | — | — | (1.5) | 1.5 | — | — | — | — | — | |||||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | — | 1.0 | — | — | — | — | (1.1) | |||||||||||||||||||||||||
(Gain) loss on divestitures | — | — | — | — | — | — | — | — | 4.5 | (4.5) | |||||||||||||||||||||||||
Acquisition
and integration-related charges and contingent consideration adjustments | — | 0.8 | — | (1.4) | 2.2 | — | — | — | — | — | |||||||||||||||||||||||||
Adjusted | $ | 352.4 | $ | 176.2 | $ | 11.4 | $ | 131.0 | $ | 33.7 | $ | 356.4 | $ | 179.5 | $ | 11.1 | $ | 118.9 | $ | 49.6 | |||||||||||||||
As a % of reported net sales | 50.0 | % | 3.2 | % | 37.2 | % | 9.6 | % | 50.4 | % | 3.1 | % | 33.4 | % | 13.9 | % | |||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Prescription Pharmaceuticals | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income (loss) | Net
Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income (Loss) | |||||||||||||||||||||||||
Reported | $ | 236.3 | $ | 84.8 | $ | 13.5 | $ | 23.5 | $ | (96.4) | $ | 255.9 | $ | 88.4 | $ | 25.3 | $ | 24.6 | $ | (92.4) | |||||||||||||||
As a % of reported net sales | 35.9 | % | 5.7 | % | 9.9 | % | (40.8) | % | 34.5 | % | 9.9 | % | 9.6 | % | (36.1) | % | |||||||||||||||||||
Pre-tax adjustments: | |||||||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | — | $ | 21.3 | $ | — | $ | (0.1) | $ | 21.4 | $ | — | $ | 22.1 | $ | — | $ | (0.1) | $ | 22.3 | |||||||||||||||
(Gain) loss on divestitures | — | — | — | — | (0.5) | — | — | — | (0.9) | — | |||||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | (0.1) | 0.1 | — | — | — | — | 0.1 | |||||||||||||||||||||||||
Impairment charges | — | — | — | — | 144.4 | — | — | — | — | 132.0 | |||||||||||||||||||||||||
Acquisition
and integration-related charges and contingent consideration adjustments | — | — | — | — | 0.4 | — | — | — | — | (0.5) | |||||||||||||||||||||||||
Adjusted | $ | 236.3 | $ | 106.1 | $ | 13.5 | $ | 23.3 | $ | 69.4 | $ | 255.9 | $ | 110.5 | $ | 25.3 | $ | 23.6 | $ | 61.5 | |||||||||||||||
As a % of reported net sales | 44.9 | % | 5.7 | % | 9.8 | % | 29.4 | % | 43.2 | % | 9.9 | % | 9.2 | % | 24.0 | % | |||||||||||||||||||
TABLE II (CONTINUED) | |||||||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Worldwide Consumer* | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income | Net Sales | Gross
Profit | R&D Expense | DSG&A Expense | Operating Income | |||||||||||||||||||||||||
Reported | $ | 4,088.2 | $ | 1,499.9 | $ | 120.9 | $ | 1,087.1 | $ | 293.1 | $ | 3,869.9 | $ | 1,438.4 | $ | 118.7 | $ | 1,074.9 | $ | 202.2 | |||||||||||||||
As a % of reported net sales | 36.7 | % | 3.0 | % | 26.6 | % | 7.2 | % | 37.2 | % | 3.1 | % | 27.8 | % | 5.2 | % | |||||||||||||||||||
Pre-tax adjustments: | |||||||||||||||||||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | — | $ | 87.4 | $ | (1.5) | $ | (120.8) | $ | 209.8 | $ | — | $ | 104.7 | $ | (0.4) | $ | (118.5) | $ | 223.6 | |||||||||||||||
Separation and reorganization expense | — | — | — | (1.1) | 1.1 | — | — | — | (17.2) | 17.2 | |||||||||||||||||||||||||
Unusual litigation | — | — | — | (24.2) | 19.8 | — | — | — | (27.2) | 27.2 | |||||||||||||||||||||||||
Impairment charges | — | — | — | — | — | — | — | — | — | 13.8 | |||||||||||||||||||||||||
Asset abandonment | — | — | — | — | — | — | — | — | — | 7.1 | |||||||||||||||||||||||||
(Gain) loss on divestitures | — | — | — | (0.8) | 0.8 | — | — | — | 4.4 | (4.5) | |||||||||||||||||||||||||
Operating results attributable to held-for-sale business** | — | — | — | — | — | (24.1) | (12.1) | (0.5) | (9.4) | (2.2) | |||||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | — | 3.2 | — | — | — | — | 26.0 | |||||||||||||||||||||||||
Ranitidine market withdrawal*** | — | — | — | — | — | 9.2 | 18.4 | — | — | 18.4 | |||||||||||||||||||||||||
Acquisition
and integration-related charges and contingent consideration adjustments | — | 2.8 | — | (9.8) | 12.6 | — | 5.7 | — | (14.6) | 16.2 | |||||||||||||||||||||||||
Adjusted | 4,088.2 | $ | 1,590.1 | $ | 119.4 | $ | 930.4 | $ | 540.4 | $ | 3,855.0 | $ | 1,555.1 | $ | 117.8 | $ | 892.4 | $ | 545.0 | ||||||||||||||||
As a % of reported net sales (2020) / As a % of adjusted net sales (2019) | 38.9 | % | 2.9 | % | 22.8 | % | 13.2 | % | 40.3 | % | 3.1 | % | 23.1 | % | 14.1 | % | |||||||||||||||||||
*Worldwide Consumer includes the CSCA and CSCI segments in addition to Corporate. | |||||||||||||||||||||||||||||||||||
**Held-for-sale business includes our now divested animal health business. | |||||||||||||||||||||||||||||||||||
***Ranitidine market withdrawal includes reversal of recorded returns and inventory write-downs. |
TABLE II (CONTINUED) | |||||||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Consumer Self-Care Americas | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income | Net Sales | Gross
Profit | R&D Expense | DSG&A Expense | Operating Income | |||||||||||||||||||||||||
Reported | $ | 2,693.0 | $ | 858.5 | $ | 73.7 | $ | 316.3 | $ | 472.0 | $ | 2,487.7 | $ | 798.9 | $ | 76.3 | $ | 298.9 | $ | 414.0 | |||||||||||||||
As a % of reported net sales | 31.9 | % | 2.7 | % | 11.7 | % | 17.5 | % | 32.1 | % | 3.1 | % | 12.0 | % | 16.6 | % | |||||||||||||||||||
Pre-tax adjustments: | |||||||||||||||||||||||||||||||||||
Amortization expense primarily related to acquired intangible assets | $ | — | $ | 19.8 | $ | — | $ | (28.4) | $ | 48.3 | $ | — | $ | 23.8 | $ | — | $ | (22.4) | $ | 46.2 | |||||||||||||||
Separation and reorganization expense | — | — | — | — | — | — | — | — | (0.4) | 0.4 | |||||||||||||||||||||||||
Unusual litigation | — | — | — | — | (4.3) | — | — | — | (1.3) | 1.3 | |||||||||||||||||||||||||
Asset abandonment | — | — | — | — | — | — | — | — | — | 7.1 | |||||||||||||||||||||||||
Impairment charges | — | — | — | — | — | — | — | — | — | 4.1 | |||||||||||||||||||||||||
(Gain) loss on divestitures | — | — | — | — | — | — | — | — | — | (0.1) | |||||||||||||||||||||||||
Operating results attributable to held-for-sale business** | — | — | — | — | — | (24.1) | (12.1) | (0.5) | (9.4) | (2.2) | |||||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | — | 0.8 | — | — | — | — | 2.7 | |||||||||||||||||||||||||
Ranitidine market withdrawal* | — | — | — | — | — | 7.4 | 15.5 | — | — | 15.5 | |||||||||||||||||||||||||
Acquisition
and integration-related charges and contingent consideration adjustments | — | 2.0 | — | (8.4) | 10.4 | — | 3.6 | — | 1.0 | (1.5) | |||||||||||||||||||||||||
Adjusted | $ | 2,693.0 | $ | 880.3 | $ | 73.7 | $ | 279.5 | $ | 527.2 | $ | 2,471.0 | $ | 829.7 | $ | 75.8 | $ | 266.4 | $ | 487.5 | |||||||||||||||
As a % of reported net sales (2020) / As a % of adjusted net sales (2019) | 32.7 | % | 2.7 | % | 10.4 | % | 19.6 | % | 33.6 | % | 3.1 | % | 10.8 | % | 19.7 | % | |||||||||||||||||||
*Ranitidine market withdrawal includes reversal of recorded returns and inventory write-downs. | |||||||||||||||||||||||||||||||||||
**Held-for-sale business includes our now divested animal health business. |
TABLE II (CONTINUED) | |||||||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Consumer Self-Care International | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income | Net
Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income | |||||||||||||||||||||||||
Reported | $ | 1,395.2 | $ | 641.1 | $ | 47.2 | $ | 560.2 | $ | 32.3 | $ | 1,382.2 | $ | 639.5 | $ | 42.4 | $ | 558.1 | $ | 19.6 | |||||||||||||||
As a % of reported net sales | 45.9 | % | 3.4 | % | 40.1 | % | 2.3 | % | 46.3 | % | 3.1 | % | 40.4 | % | 1.4 | % | |||||||||||||||||||
Pre-tax adjustments: | |||||||||||||||||||||||||||||||||||
Amortization expense primarily related to acquired intangible assets | $ | — | $ | 67.6 | $ | (1.5) | $ | (92.3) | $ | 161.5 | $ | — | $ | 80.9 | $ | (0.4) | $ | (96.2) | $ | 177.5 | |||||||||||||||
Impairment charges | — | — | — | — | — | — | — | — | — | 9.7 | |||||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | — | 1.4 | — | — | — | — | 9.7 | |||||||||||||||||||||||||
Unusual litigation | — | — | — | (1.5) | 1.5 | — | — | — | (0.3) | 0.3 | |||||||||||||||||||||||||
Ranitidine market withdrawal* | — | — | — | — | — | 1.8 | 2.9 | — | — | 2.9 | |||||||||||||||||||||||||
(Gain) loss on divestitures | — | — | — | (0.3) | 0.3 | — | — | 4.4 | (4.4) | ||||||||||||||||||||||||||
Acquisition
and integration-related charges and contingent consideration adjustments | — | 0.8 | — | (1.3) | 2.1 | — | 2.1 | — | — | 2.1 | |||||||||||||||||||||||||
Adjusted | $ | 1,395.2 | $ | 709.5 | $ | 45.7 | $ | 464.8 | $ | 199.1 | $ | 1,384.0 | $ | 725.4 | $ | 42.0 | $ | 466.0 | $ | 217.4 | |||||||||||||||
As a % of reported net sales (2020) / As a % of adjusted net sales (2019) | 50.8 | % | 3.3 | % | 33.3 | % | 14.3 | % | 52.4 | % | 3.0 | % | 33.7 | % | 15.7 | % | |||||||||||||||||||
*Ranitidine market withdrawal includes reversal of recorded returns and inventory write-downs. |
TABLE II (CONTINUED) | |||||||||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Prescription Pharmaceuticals | Net Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income (Loss) | Net
Sales | Gross Profit | R&D Expense | DSG&A Expense | Operating Income | |||||||||||||||||||||||||
Reported | $ | 975.1 | $ | 315.3 | $ | 56.8 | $ | 88.4 | $ | (177.7) | $ | 967.5 | $ | 334.9 | $ | 68.7 | $ | 91.2 | $ | 2.6 | |||||||||||||||
As a % of reported net sales | 32.3 | % | 5.8 | % | 9.1 | % | (18.2) | % | 34.6 | % | 7.1 | % | 9.4 | % | 0.3 | % | |||||||||||||||||||
Pre-tax adjustments: | |||||||||||||||||||||||||||||||||||
Amortization expense primarily related to acquired intangible assets | $ | — | $ | 84.8 | — | $ | (0.5) | $ | 85.2 | — | $ | 87.2 | — | $ | (0.5) | $ | 87.7 | ||||||||||||||||||
Separation and reorganization expense | — | — | — | — | — | — | — | — | (0.7) | 0.7 | |||||||||||||||||||||||||
(Gain) loss on divestitures | — | — | — | — | (0.6) | — | — | — | (0.9) | (0.6) | |||||||||||||||||||||||||
Restructuring charges and other termination benefits | — | — | — | (0.1) | 0.4 | — | — | — | — | 0.3 | |||||||||||||||||||||||||
Impairment charges | — | — | — | — | 346.8 | — | — | — | — | 170.7 | |||||||||||||||||||||||||
Acquisition
and integration-related charges and contingent consideration adjustments | — | — | — | — | 1.3 | — | — | — | — | 2.8 | |||||||||||||||||||||||||
Adjusted | $ | 975.1 | $ | 400.1 | $ | 56.8 | $ | 87.8 | $ | 255.4 | $ | 967.5 | $ | 422.1 | $ | 68.7 | $ | 89.1 | $ | 264.2 | |||||||||||||||
As a % of reported net sales | 41.0 | % | 5.8 | % | 9.0 | % | 26.2 | % | 43.6 | % | 7.1 | % | 9.2 | % | 27.3 | % | |||||||||||||||||||
TABLE III | |||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||
ADJUSTED NET SALES GROWTH - SELECTED SEGMENTS | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | Total Change | FX Change | Constant Currency Change | |||||||||||||||||||||||||
Reported Net sales | |||||||||||||||||||||||||||||
Consolidated | $ | 1,289.5 | $ | 1,322.8 | (2.5)% | (1.3)% | (3.8)% | ||||||||||||||||||||||
CSCA | $ | 700.8 | $ | 710.5 | (1.4)% | 0.3% | (1.1)% | ||||||||||||||||||||||
CSCI | $ | 352.4 | $ | 356.4 | (1.1)% | (5.0)% | (6.1)% | ||||||||||||||||||||||
RX | $ | 236.3 | $ | 255.9 | (7.7)% | (0.5)% | (8.2)% | ||||||||||||||||||||||
Consolidated | $ | 1,289.5 | $ | 1,322.8 | |||||||||||||||||||||||||
Less: Rosemont Pharmaceuticals business | — | (14.8) | |||||||||||||||||||||||||||
Less: Canoderm prescription product | — | (4.0) | |||||||||||||||||||||||||||
Consolidated net sales as so adjusted excluding divested businesses | $ | 1,289.5 | $ | 1,304.0 | (1.1)% | (1.3)% | (2.4)% | ||||||||||||||||||||||
Less: Dr. Fresh* | (27.8) | — | |||||||||||||||||||||||||||
Less: Eastern European Brands Acquisition | (2.1) | — | |||||||||||||||||||||||||||
Organic Consolidated net sales as so adjusted | $ | 1,259.6 | $ | 1,304.0 | (3.4)% | (1.3)% | (4.7)% | ||||||||||||||||||||||
Worldwide Consumer | |||||||||||||||||||||||||||||
CSCA | $ | 700.8 | $ | 710.5 | |||||||||||||||||||||||||
CSCI | 352.4 | 356.4 | |||||||||||||||||||||||||||
Total Worldwide Consumer | $ | 1,053.2 | $ | 1,066.9 | (1.3)% | (1.4)% | (2.7)% | ||||||||||||||||||||||
Less: Canoderm prescription product | — | (4.0) | |||||||||||||||||||||||||||
Less: Rosemont Pharmaceuticals business | — | (14.8) | |||||||||||||||||||||||||||
Worldwide Consumer net sales as so adjusted excluding divested businesses | $ | 1,053.2 | $ | 1,048.1 | 0.5% | (1.5)% | (1.0)% | ||||||||||||||||||||||
Less: Dr. Fresh* | (27.8) | — | |||||||||||||||||||||||||||
Less: Eastern European Brands Acquisition | (2.1) | — | |||||||||||||||||||||||||||
Organic Worldwide Consumer net sales as so adjusted | $ | 1,023.3 | $ | 1,048.1 | (2.4)% | (1.4)% | (3.8)% | ||||||||||||||||||||||
CSCA | $ | 700.8 | $ | 710.5 | |||||||||||||||||||||||||
Less: Dr. Fresh* | (26.2) | — | |||||||||||||||||||||||||||
Organic CSCA net sales as so adjusted | $ | 674.6 | $ | 710.5 | (5.1)% | 0.4% | (4.7)% | ||||||||||||||||||||||
*Dr.
Fresh acquisition comprises all oral self-care assets purchased from High Ridge Brands, including the brands Dr. Fresh®, REACH® and Firefly®. | |||||||||||||||||||||||||||||
TABLE III (CONTINUED) | |||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||
ADJUSTED NET SALES GROWTH - SELECTED SEGMENTS | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | Total Change | FX Change | Constant Currency Change | |||||||||||||||||||||||||
CSCI | $ | 352.4 | $ | 356.4 | |||||||||||||||||||||||||
Less: Canoderm prescription product | — | (4.0) | |||||||||||||||||||||||||||
Less: Rosemont Pharmaceuticals business | — | (14.8) | |||||||||||||||||||||||||||
CSCI net sales as so adjusted excluding divested businesses | $ | 352.4 | $ | 337.6 | 4.4% | (5.2)% | (0.8)% | ||||||||||||||||||||||
Less: Dr. Fresh* | (1.6) | — | |||||||||||||||||||||||||||
Less: Eastern European Brands Acquisition | (2.1) | — | |||||||||||||||||||||||||||
Organic CSCI net sales as so adjusted | $ | 348.7 | $ | 337.6 | 3.3% | (5.2)% | (1.9)% | ||||||||||||||||||||||
*Dr.
Fresh acquisition comprises all oral self-care assets purchased from High Ridge Brands, including the brands Dr. Fresh®, REACH® and Firefly®. |
TABLE III (CONTINUED) | |||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||
ADJUSTED NET SALES GROWTH - SELECTED SEGMENTS | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Twelve Months Ended | |||||||||||||||||||||||||||||
December
31, 2020 | December 31, 2019 | Total Change | FX Change | Constant Currency Change | |||||||||||||||||||||||||
Adjusted Net Sales | |||||||||||||||||||||||||||||
Consolidated net sales as so adjusted | $ | 5,063.3 | $ | 4,822.5 | 5.0% | —% | 5.0% | ||||||||||||||||||||||
Less: Animal health* | — | (19.6) | |||||||||||||||||||||||||||
Less: Canoderm prescription product | — | (13.2) | |||||||||||||||||||||||||||
Less: Rosemont Pharmaceuticals business | — | (27.1) | |||||||||||||||||||||||||||
Consolidated net sales as so adjusted excluding divested businesses | $ | 5,063.3 | $ | 4,762.6 | 6.3% | 0.1% | 6.4% | ||||||||||||||||||||||
Less: Ranir*** | (139.1) | — | |||||||||||||||||||||||||||
Less: Dr. Fresh** | (72.3) | — | |||||||||||||||||||||||||||
Less: Eastern European Brands Acquisition | (2.1) | — | |||||||||||||||||||||||||||
Organic Consolidated net sales as so adjusted | $ | 4,849.8 | $ | 4,762.6 | 1.8% | 0.1% | 1.9% | ||||||||||||||||||||||
Worldwide Consumer net sales as so adjusted | $ | 4,088.2 | $ | 3,855.0 | 6.0% | 0.2% | 6.2% | ||||||||||||||||||||||
Less: Canoderm prescription product | — | (13.2) | |||||||||||||||||||||||||||
Less: Rosemont Pharmaceuticals business | — | (27.1) | |||||||||||||||||||||||||||
Less: Animal health* | — | (19.6) | |||||||||||||||||||||||||||
Worldwide Consumer net sales as so adjusted excluding divested businesses | $ | 4,088.2 | $ | 3,795.1 | 7.7% | 0.2% | 7.9% | ||||||||||||||||||||||
Less: Ranir*** | (139.1) | — | |||||||||||||||||||||||||||
Less: Dr. Fresh** | (72.3) | — | |||||||||||||||||||||||||||
Less: Eastern European Brands Acquisition | (2.1) | — | |||||||||||||||||||||||||||
Organic Worldwide Consumer net sales as so adjusted | $ | 3,874.7 | $ | 3,795.1 | 2.1% | 0.2% | 2.3% | ||||||||||||||||||||||
CSCA net sales as so adjusted | $ | 2,693.0 | $ | 2,471.0 | 9.0% | 0.4% | 9.4% | ||||||||||||||||||||||
Less: Animal health* | — | (19.6) | |||||||||||||||||||||||||||
CSCA net sales as so adjusted excluding divested businesses | $ | 2,693.0 | $ | 2,451.4 | 9.9% | 0.4% | 10.3% | ||||||||||||||||||||||
Less: Ranir*** | (100.0) | — | |||||||||||||||||||||||||||
Less: Dr. Fresh** | (68.2) | — | |||||||||||||||||||||||||||
Organic CSCA net sales as so adjusted | $ | 2,524.8 | $ | 2,451.4 | 3.0% | 0.4% | 3.4% | ||||||||||||||||||||||
* This line item excludes the $19.6 million in animal health net sales before the business was classified as held-for-sale for comparative purposes only. This amount is in addition to the $24.1 million of animal health net sales that was excluded from adjusted net sales for the twelve months ended December 31, 2019. See Table I. | |||||||||||||||||||||||||||||
**Dr. Fresh acquisition comprises all oral self-care assets purchased from High Ridge Brands, including the brands Dr. Fresh®, REACH® and Firefly®. | |||||||||||||||||||||||||||||
***Includes Ranir net sales through the second quarter of 2020. |
TABLE III (CONTINUED) | |||||||||||||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||||||||||||
ADJUSTED NET SALES GROWTH - SELECTED SEGMENTS | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||
Twelve Months Ended | |||||||||||||||||||||||||||||
December
31, 2020 | December 31, 2019 | Total Change | FX Change | Constant Currency Change | |||||||||||||||||||||||||
Adjusted Net Sales | |||||||||||||||||||||||||||||
CSCI net sales as so adjusted | $ | 1,395.2 | $ | 1,384.0 | 0.8% | (0.3)% | 0.5% | ||||||||||||||||||||||
Less: Rosemont Pharmaceuticals business | — | (27.1) | |||||||||||||||||||||||||||
Less: Canoderm prescription product | — | (13.2) | |||||||||||||||||||||||||||
CSCI net sales as so adjusted excluding divested businesses | $ | 1,395.2 | $ | 1,343.7 | 3.8% | (0.2)% | 3.6% | ||||||||||||||||||||||
Less: Ranir** | (39.1) | — | |||||||||||||||||||||||||||
Less: Dr. Fresh* | (4.1) | — | |||||||||||||||||||||||||||
Less: Eastern European Brands Acquisition | (2.1) | — | |||||||||||||||||||||||||||
Organic CSCI net sales as so adjusted | $ | 1,349.9 | $ | 1,343.7 | 0.5% | (0.3)% | 0.2% | ||||||||||||||||||||||
*Dr. Fresh acquisition comprises
all oral self-care assets purchased from High Ridge Brands, including the brands Dr. Fresh®, REACH® and Firefly®. | |||||||||||||||||||||||||||||
**Includes Ranir net sales through the second quarter of 2020. |
TABLE IV | ||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||
SELECTED CONSOLIDATED AND SEGMENT INFORMATION | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
December 31, 2020 | December 31, 2019 | Total Change | ||||||||||||||||||
Consolidated adjusted EPS | $ | 0.93 | $ | 1.06 | (12.3)% | |||||||||||||||
Adjusted gross margin | ||||||||||||||||||||
Worldwide Consumer | 38.7 | % | 39.3 | % | (60) bps | |||||||||||||||
CSCA | 33.0 | % | 33.8 | % | (80) bps | |||||||||||||||
CSCI | 50.0 | % | 50.4 | % | (40) bps | |||||||||||||||
RX | 44.9 | % | 43.2 | % | 170 bps | |||||||||||||||
Adjusted operating margin | ||||||||||||||||||||
Worldwide Consumer | 11.1 | % | 14.3 | % | (320) bps | |||||||||||||||
CSCA | 18.8 | % | 20.4 | % | (160) bps | |||||||||||||||
CSCI | 9.6 | % | 13.9 | % | (430) bps | |||||||||||||||
RX | 29.4 | % | 24.0 | % | 540 bps | |||||||||||||||
Twelve Months Ended | ||||||||||||||||||||
December 31, 2020 | December 31, 2019 | Total Change | ||||||||||||||||||
Adjusted gross margin | ||||||||||||||||||||
Worldwide Consumer | 38.9 | % | 40.3 | % | (140) bps | |||||||||||||||
CSCA | 32.7 | % | 33.6 | % | (90) bps | |||||||||||||||
CSCI | 50.8 | % | 52.4 | % | (160) bps | |||||||||||||||
RX | 41.0 | % | 43.6 | % | (260) bps | |||||||||||||||
Adjusted operating income | ||||||||||||||||||||
CSCA | $ | 527.2 | $ | 487.5 | 8.1% | |||||||||||||||
Adjusted operating margin | ||||||||||||||||||||
Worldwide Consumer | 13.2 | % | 14.1 | % | (90) bps | |||||||||||||||
CSCA | 19.6 | % | 19.7 | % | (10) bps | |||||||||||||||
CSCI | 14.3 | % | 15.7 | % | (140) bps | |||||||||||||||
RX | 26.2 | % | 27.3 | % | (110) bps | |||||||||||||||
TABLE IV (CONTINUED) | ||||||||||||||||||||
PERRIGO COMPANY PLC | ||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||||||
SELECTED CONSOLIDATED AND SEGMENT INFORMATION | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
(unaudited) |
Twelve Months Ended | ||||||||||||||
December 31, 2020 | ||||||||||||||
Operating cash flow | $ | 636.2 | ||||||||||||
Adjusted net income | $ | 552.2 | ||||||||||||
Cash conversion ratio | 115 | % |
This ‘8-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
3/15/21 | ||||
Filed on / For Period end: | 3/1/21 | 10-K, 8-K | ||
12/31/20 | 10-K, 11-K, SD | |||
12/27/20 | ||||
12/31/19 | 10-K, 11-K, 4 | |||
12/31/18 | 10-K, 11-K | |||
List all Filings |