Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 22, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-33500 | ||
Entity Registrant Name | Jazz Pharmaceuticals plc | ||
Entity Incorporation, State or Country Code | L2 | ||
Entity Tax Identification Number | 98-1032470 | ||
Entity Address, Address Line One | Fifth Floor, Waterloo Exchange | ||
Entity Address, Address Line Two | Waterloo Road | ||
Entity Address, City or Town | Dublin 4 | ||
Entity Address, Country | IE | ||
Entity Address, Postal Zip Code | D04 E5W7 | ||
Country Region | 353 | ||
City Area Code | 1 | ||
Local Phone Number | 634-7800 | ||
Title of 12(b) Security | Ordinary shares, nominal value $0.0001 per share | ||
Trading Symbol | JAZZ | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Smaller Reporting Company | false | ||
Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 10,591,497,500 | ||
Entity Common Stock, Shares Outstanding (in shares) | 61,738,841 | ||
Documents Incorporated by Reference | Certain information required by Part III, Items 10-14 of this Form 10‑K is incorporated by reference to the registrant’s definitive Proxy Statement for the 2022 Annual General Meeting of Shareholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A. If such Proxy Statement is not filed within 120 days after the end of the fiscal year covered by this Form 10‑K, such information will be included in an amendment to this Form 10‑K to be filed within such 120-day period. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001232524 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Name | KPMG |
Auditor Location | Dublin, Ireland |
Auditor Firm ID | 1116 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 591,448 | $ 1,057,769 |
Investments | 0 | 1,075,000 |
Accounts receivable, net of allowances of $13,813 and $5,487 at December 31, 2021 and 2020, respectively | 563,360 | 396,490 |
Inventories | 1,072,721 | 95,396 |
Prepaid expenses | 131,413 | 62,422 |
Other current assets | 252,392 | 152,491 |
Total current assets | 2,611,334 | 2,839,568 |
Property, plant and equipment and finance lease right-of-use asset, net | 256,837 | 127,935 |
Operating lease assets | 86,586 | 129,169 |
Intangible assets, net | 7,152,328 | 2,195,051 |
Goodwill | 1,827,609 | 958,303 |
Deferred tax assets, net | 311,103 | 254,916 |
Deferred financing costs | 12,029 | 5,238 |
Other non-current assets | 40,813 | 25,721 |
Total assets | 12,298,639 | 6,535,901 |
Current liabilities: | ||
Accounts payable | 100,298 | 26,945 |
Accrued liabilities | 666,304 | 352,732 |
Current portion of long-term debt | 31,000 | 246,322 |
Income taxes payable | 9,608 | 25,200 |
Deferred revenue | 2,093 | 2,546 |
Total current liabilities | 809,303 | 653,745 |
Deferred revenue, non-current | 463 | 2,315 |
Long-term debt, less current portion | 6,018,943 | 1,848,516 |
Operating lease liabilities, less current portion | 87,200 | 140,035 |
Deferred tax liabilities, net | 1,300,541 | 130,397 |
Other non-current liabilities | 116,998 | 101,148 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Ordinary shares, nominal value $0.0001 per share; 300,000 shares authorized; 61,633 and 56,171 shares issued and outstanding at December 31, 2021 and 2020, respectively | 6 | 6 |
Non-voting euro deferred shares, €0.01 par value per share; 4,000 shares authorized, issued and outstanding at both December 31, 2021 and 2020 | 55 | 55 |
Capital redemption reserve | 472 | 472 |
Additional paid-in capital | 3,534,792 | 2,633,670 |
Accumulated other comprehensive loss | (400,360) | (134,352) |
Retained earnings | 830,226 | 1,159,894 |
Total shareholders’ equity | 3,965,191 | 3,659,745 |
Total liabilities and shareholders’ equity | $ 12,298,639 | $ 6,535,901 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) shares in Thousands, $ in Thousands | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2021€ / shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2020€ / shares |
Current assets: | ||||
Accounts receivable, allowances | $ | $ 13,813 | $ 5,487 | ||
Shareholders’ equity: | ||||
Ordinary shares, nominal value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
Ordinary shares, authorized (in shares) | 300,000 | 300,000 | ||
Ordinary shares, issued (in shares) | 61,633 | 56,171 | ||
Ordinary shares, outstanding (in shares) | 61,633 | 56,171 | ||
Nonvoting Euro Deferred shares, par value (in euros per share) | € / shares | € 0.01 | € 0.01 | ||
Nonvoting Euro Deferred shares, authorized (in shares) | 4,000 | 4,000 | ||
Nonvoting Euro Deferred shares, issued (in shares) | 4,000 | 4,000 | ||
Nonvoting Euro Deferred shares, outstanding (in shares) | 4,000 | 4,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Total revenues | $ 3,094,238 | $ 2,363,567 | $ 2,161,761 |
Operating expenses: | |||
Cost of product sales (excluding amortization of acquired developed technologies) | 440,760 | 148,917 | 127,930 |
Selling, general and administrative | 1,451,683 | 854,233 | 736,942 |
Research and development | 505,748 | 335,375 | 299,726 |
Intangible asset amortization | 525,769 | 259,580 | 354,814 |
Impairment charge | 0 | 136,139 | 0 |
Acquired in-process research and development | 0 | 251,250 | 109,975 |
Total operating expenses | 2,923,960 | 1,985,494 | 1,629,387 |
Income from operations | 170,278 | 378,073 | 532,374 |
Interest expense, net | (278,766) | (99,707) | (72,261) |
Foreign exchange loss | (4,350) | (3,271) | (5,811) |
Income (loss) before income tax expense (benefit) and equity in loss of investees | (112,838) | 275,095 | 454,302 |
Income tax expense (benefit) | 216,116 | 33,517 | (73,154) |
Equity in loss of investees | 714 | 2,962 | 4,089 |
Net income (loss) | $ (329,668) | $ 238,616 | $ 523,367 |
Net income (loss) per ordinary share: | |||
Basic (in dollars per share) | $ (5.52) | $ 4.28 | $ 9.22 |
Diluted (in dollars per share) | $ (5.52) | $ 4.22 | $ 9.09 |
Weighted-average ordinary shares used in per share calculations - basic (in shares) | 59,694 | 55,712 | 56,749 |
Weighted-average ordinary shares used in per share calculations - diluted (in shares) | 59,694 | 56,517 | 57,550 |
Product sales, net | |||
Revenues: | |||
Total revenues | $ 3,079,001 | $ 2,346,660 | $ 2,135,601 |
Royalties and contract revenues | |||
Revenues: | |||
Total revenues | $ 15,237 | $ 16,907 | $ 26,160 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (329,668) | $ 238,616 | $ 523,367 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (268,347) | 90,183 | (20,720) |
Unrealized gain (loss) on cash flow hedging activities, net of income tax expense (benefit) of $353, ($163) and ($697), respectively | 2,468 | (1,142) | (4,882) |
Unrealized loss on fair value hedging activities, net of income tax benefit of $43, $— and $—, respectively | (129) | 0 | 0 |
Other comprehensive income (loss) | (266,008) | 89,041 | (25,602) |
Total comprehensive income (loss) | $ (595,676) | $ 327,657 | $ 497,765 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Income tax provision (benefit) on unrealized gain (loss) on hedging activities | $ 353 | $ (163) | $ (697) |
Tax benefit effect on fair value hedging activities | $ 43 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Share Options | Cumulative Effect, Period of Adoption, Adjustment | Ordinary Shares | Non-voting Euro Deferred | Capital Redemption Reserve | Additional Paid-in Capital | Additional Paid-in CapitalShare Options | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Dec. 31, 2018 | 57,504 | 4,000 | ||||||||||
Beginning balance at Dec. 31, 2018 | $ 2,757,422 | $ 4,848 | $ 6 | $ 55 | $ 472 | $ 2,113,630 | $ (197,791) | $ 0 | $ 841,050 | $ 4,848 | ||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||||||
Issuance of ordinary shares in conjunction with exercise of share options (in shares) | 515 | |||||||||||
Issuance of ordinary shares in conjunction with exercise of share options | 46,477 | 46,477 | ||||||||||
Issuance of ordinary shares under employee stock purchase plan (in shares) | 106 | |||||||||||
Issuance of ordinary shares under employee stock purchase plan | 11,354 | 11,354 | ||||||||||
Issuance of ordinary shares in conjunction with vesting of restricted stock units (in shares) | 265 | |||||||||||
Shares withheld for payment of employee's withholding tax liability | (16,739) | (16,739) | ||||||||||
Share-based compensation | 111,304 | 111,304 | ||||||||||
Shares repurchased (in shares) | (2,250) | |||||||||||
Shares repurchased | (301,450) | (301,450) | ||||||||||
Other comprehensive (loss) income | (25,602) | (25,602) | ||||||||||
Net income (loss) | 523,367 | 523,367 | ||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 56,140 | 4,000 | ||||||||||
Ending balance at Dec. 31, 2019 | 3,110,981 | $ 6 | $ 55 | 472 | 2,266,026 | (223,393) | 1,067,815 | |||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||||||
Stock issued under directors deferred compensation plan (in shares) | 37 | |||||||||||
Issuance of Exchangeable Senior Notes, due 2026 | 176,260 | 176,260 | ||||||||||
Partial repurchase of Exchangeable Senior Notes, due 2021 | (12,513) | (12,513) | ||||||||||
Issuance of ordinary shares in conjunction with exercise of share options (in shares) | 780 | |||||||||||
Issuance of ordinary shares in conjunction with exercise of share options | 86,984 | 86,984 | ||||||||||
Issuance of ordinary shares under employee stock purchase plan (in shares) | 125 | |||||||||||
Issuance of ordinary shares under employee stock purchase plan | 12,697 | 12,697 | ||||||||||
Issuance of ordinary shares in conjunction with vesting of restricted stock units (in shares) | 290 | |||||||||||
Shares withheld for payment of employee's withholding tax liability | (16,877) | (16,877) | ||||||||||
Share-based compensation | 121,093 | 121,093 | ||||||||||
Shares repurchased (in shares) | (1,201) | |||||||||||
Shares repurchased | (146,537) | (146,537) | ||||||||||
Other comprehensive (loss) income | 89,041 | 89,041 | ||||||||||
Net income (loss) | 238,616 | 238,616 | ||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 56,171 | 4,000 | ||||||||||
Ending balance at Dec. 31, 2020 | 3,659,745 | $ 6 | $ 55 | 472 | 2,633,670 | (134,352) | 1,159,894 | |||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||||||
Issuance of ordinary shares arising from the acquisition of GW and share-based payment - pre-combination service (in shares) | 3,798 | |||||||||||
Issuance of ordinary shares arising from the acquisition of GW and share-based payment - pre-combination service | $ 608,456 | $ 3,555 | 608,456 | $ 3,555 | ||||||||
Issuance of ordinary shares in conjunction with exercise of share options (in shares) | 1,041 | 1,042 | ||||||||||
Issuance of ordinary shares in conjunction with exercise of share options | $ 119,058 | 119,058 | ||||||||||
Issuance of ordinary shares under employee stock purchase plan (in shares) | 157 | |||||||||||
Issuance of ordinary shares under employee stock purchase plan | 16,203 | 16,203 | ||||||||||
Issuance of ordinary shares in conjunction with vesting of restricted stock units (in shares) | 465 | |||||||||||
Shares withheld for payment of employee's withholding tax liability | (35,602) | (35,602) | ||||||||||
Share-based compensation | 189,452 | 189,452 | ||||||||||
Other comprehensive (loss) income | (266,008) | (266,008) | ||||||||||
Net income (loss) | (329,668) | (329,668) | ||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 61,633 | 4,000 | ||||||||||
Ending balance at Dec. 31, 2021 | $ 3,965,191 | $ 6 | $ 55 | $ 472 | $ 3,534,792 | $ (400,360) | $ 830,226 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | |||
Net income (loss) | $ (329,668) | $ 238,616 | $ 523,367 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Intangible asset amortization | 525,769 | 259,580 | 354,814 |
Acquisition accounting inventory fair value step-up adjustment | 223,085 | 0 | 0 |
Share-based compensation | 189,006 | 120,998 | 110,563 |
Non-cash interest expense | 92,655 | 61,748 | 46,396 |
Deferred tax expense (benefit) | 69,198 | (136,937) | (236,610) |
Depreciation | 26,714 | 18,673 | 15,342 |
Provision for losses on accounts receivable and inventory | 19,668 | 15,000 | 6,668 |
Impairment charge | 0 | 136,139 | 0 |
Acquired in-process research and development | 0 | 251,250 | 109,975 |
Other non-cash transactions | 10,032 | 14,580 | 59 |
Distributions from equity method investees | 0 | 5,438 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | (92,735) | (38,647) | (92,326) |
Inventories | (48,861) | (30,537) | (32,790) |
Prepaid expenses and other current assets | (83,320) | (98,042) | (25,650) |
Operating lease assets | 15,583 | 12,366 | 14,148 |
Other non-current assets | 817 | 21,913 | (18,919) |
Accounts payable | 57,021 | (18,935) | 4,770 |
Accrued liabilities | 142,355 | 79,477 | (5,565) |
Income taxes payable | (15,524) | 13,038 | 10,056 |
Deferred revenue | (2,305) | (4,720) | (5,414) |
Operating lease liabilities, less current portion | (16,037) | (12,383) | (6,044) |
Other non-current liabilities | (4,946) | (8,967) | 3,561 |
Net cash provided by operating activities | 778,507 | 899,648 | 776,401 |
Investing activities | |||
Proceeds from maturity of investments | 1,095,000 | 1,755,000 | 985,000 |
Purchases of property, plant and equipment | (27,641) | (15,004) | (40,135) |
Acquisition of intangible assets | (17,891) | (113,000) | (80,500) |
Acquisition of investments | (26,819) | (2,397,675) | (917,100) |
Acquisition of a business, net of cash acquired | (6,234,792) | 0 | 0 |
Acquired in-process research and development | 0 | (251,250) | (61,700) |
Asset acquisition, net of cash acquired | 0 | 0 | (55,074) |
Net proceeds from sale of assets | 0 | 14,259 | 14,209 |
Net cash used in investing activities | (5,212,143) | (1,007,670) | (155,300) |
Financing activities | |||
Net proceeds from issuance of borrowings under credit agreement | 3,719,930 | 0 | 0 |
Net proceeds from issuance of Senior Secured Notes, due 2029 | 1,471,533 | 0 | 0 |
Proceeds from employee equity incentive and purchase plans | 135,261 | 99,681 | 57,831 |
Payment of employee withholding taxes related to share-based awards | (35,602) | (16,877) | (16,739) |
Payments for repurchase of Exchangeable Senior Notes, due 2021 | (218,812) | (356,188) | 0 |
Repayments of long-term debt | (1,101,788) | (33,387) | (33,387) |
Net proceeds from issuance of Exchangeable Senior Notes, due 2026 | 0 | 981,381 | 0 |
Net proceeds from revolving credit facility | 0 | 500,000 | 0 |
Share repurchases | 0 | (146,537) | (301,450) |
Repayments under revolving credit facility | 0 | (500,000) | 0 |
Net cash provided by (used in) financing activities | 3,970,522 | 528,073 | (293,745) |
Effect of exchange rates on cash and cash equivalents | (3,207) | 374 | 366 |
Net increase (decrease) in cash and cash equivalents | (466,321) | 420,425 | 327,722 |
Cash and cash equivalents, at beginning of period | 1,057,769 | 637,344 | 309,622 |
Cash and cash equivalents, at end of period | 591,448 | 1,057,769 | 637,344 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 138,271 | 42,470 | 43,002 |
Cash paid for income taxes, net of refunds | $ 271,217 | $ 226,823 | $ 183,610 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Jazz Pharmaceuticals plc is a global biopharmaceutical company whose purpose is to innovate to transform the lives of patients and their families. We are dedicated to developing life-changing medicines for people with serious diseases - often with limited or no therapeutic options. We have a diverse portfolio of marketed medicines and novel product candidates, from early- to late-stage development, in neuroscience and oncology. Within these therapeutic areas, we strive to identify new options for patients by actively exploring small molecules and biologics, and through innovative delivery technologies and cannabinoid science. Our lead marketed products are: Neuroscience • Xywav® (calcium, magnesium, potassium, and sodium oxybates) oral solution , a product approved by the U.S. Food and Drug Administration, or FDA, in July 2020 and launched in the U.S. in November 2020 for the treatment of cataplexy or excessive daytime sleepiness, or EDS, in patients with narcolepsy aged seven years of age and older, and also approved by FDA in August 2021 for the treatment of idiopathic hypersomnia, or IH, in adults and launched in the U.S. in November 2021. Xywav contains 92% less sodium than Xyrem®; • Xyrem (sodium oxybate) oral solution , a product approved by FDA and distributed in the U.S. for the treatment of both cataplexy and EDS in patients seven years of age and older with narcolepsy; Jazz also markets Xyrem in Canada for the treatment of cataplexy in patients with narcolepsy. Xyrem is also approved and distributed in Europe, Great Britain and other markets through a licensing agreement; • Epidiolex® (cannabidiol) oral solution , a product approved by FDA and launched in the U.S. in 2018 by GW Pharmaceuticals plc, or GW, and currently indicated for the treatment of seizures associated with Lennox-Gastaut syndrome, Dravet syndrome, or tuberous sclerosis complex in patients one year of age or older; in Europe (where it is marketed as Epidyolex®) and other markets, it is approved for adjunctive treatment of seizures associated with Lennox-Gastaut syndrome or Dravet syndrome, in conjunction with clobazam (EU and Great Britain only), in patients 2 years of age and older and for adjunctive treatment of seizures associated with tuberous sclerosis complex in patients 2 years of age and older; • Sunosi® (solriamfetol) , a product approved by FDA and marketed in the U.S., Canada, Europe and Great Britain to improve wakefulness in adult patients with EDS associated with narcolepsy or obstructive sleep apnea; and • Sativex® (nabiximols) oral solution , a product approved and marketed in the U.K., Canada and other markets as treatment for symptom improvement in adult patients with moderate to severe spasticity due to multiple sclerosis, or MS, who have not responded adequately to other anti-spasticity medication and who demonstrate clinically significant improvement in spasticity-related symptoms during an initial trial of therapy. Oncology • Zepzelca® (lurbinectedin) , a product approved by FDA in June 2020 and launched in the U.S. in July 2020 for the treatment of adult patients with metastatic small cell lung cancer, or SCLC, with disease progression on or after platinum-based chemotherapy; i n Canada, Zepzelca was approved in September 2021 for the treatment of adults with Stage III or metastatic SCLC, who have progressed on or after platinum-containing therapy; • Rylaze™ (recombinant Erwinia asparaginase), a product approved by FDA in June 2021 and launched in the U.S. in July 2021 for use as a component of a multi-agent chemotherapeutic regimen for the treatment of acute lymphoblastic leukemia, or ALL, or lymphoblastic lymphoma, or LBL, in adults and pediatric patients who have developed hypersensitivity to E. coli -derived asparaginase; • Vyxeos® (daunorubicin and cytarabine) liposome for injection , a product approved in the U.S., Canada, Europe and Great Britain (marketed as Vyxeos® liposomal in Europe and Great Britain) for the treatment of adults with newly-diagnosed therapy-related acute myeloid leukemia, or t-AML, or AML with myelodysplasia-related changes (AML-MRC). An expanded indication was granted in the U.S. for the treatment of newly diagnosed t-AML or AML-MRC in pediatric patients aged 1 year and older; and • Defitelio® (defibrotide sodium) , is a product approved in the U.S. and Brazil for the treatment of hepatic veno-occlusive disease, or VOD, with renal or pulmonary dysfunction following hematopoietic stem cell transplantation, or HSCT, and in Japan for the treatment of hepatic sinusoidal obstruction syndrome (hepatic-veno occlusive disease). It is currently approved in the EU, Great Britain, Canada, Israel, South Korea, Australia and Switzerland for the treatment of severe hepatic VOD, also known as sinusoidal obstructive syndrome, or SOS, in HSCT therapy. It is indicated in adults and pediatric patients over 1 month of age. In May 2021, we acquired GW Pharmaceuticals plc, or GW, with the objectives of broadening our neuroscience portfolio, further diversifying our revenue and driving sustainable, long-term value creation opportunities. The total consideration paid by us for the entire issued share capital of GW was $7.2 billion. The acquisition, which we refer to as the GW Acquisition, closed on May 5, 2021. For further information regarding the GW Acquisition, please see Note 3. Throughout this report, unless otherwise indicated or the context otherwise requires, all references to “Jazz Pharmaceuticals,” “the registrant,” "the Company", “we,” “us,” and “our” refer to Jazz Pharmaceuticals plc and its consolidated subsidiaries. Throughout this report, all references to “ordinary shares” refer to Jazz Pharmaceuticals plc’s ordinary shares. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, and include the accounts of Jazz Pharmaceuticals plc and our subsidiaries and intercompany transactions and balances have been eliminated. Our consolidated financial statements include the results of operations of businesses we have acquired from the date of each acquisition for the applicable reporting periods. The results of operations of the acquired GW business, along with the estimated fair values of the assets acquired and liabilities assumed in the GW Acquisition, have been included in our consolidated financial statements since the closing of the GW Acquisition on May 5, 2021. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures in the consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates. Adoption of New Accounting Standards In December 2019, the Financial Accounting Standards Board, or FASB, issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes by removing certain exceptions to the general principles in the existing guidance for income taxes and making other minor improvements. We adopted this standard on January 1, 2021 and adoption did not have a material impact on our consolidated financial statements. Significant Risks and Uncertainties We have implemented a comprehensive response strategy designed to manage the ongoing impact of the COVID-19 pandemic on our employees, patients and our business. The prolonged nature of the pandemic is negatively impacting our business in a varied manner due to the emergence of the Delta and Omicron variants and other variants with increased transmissibility, even in some cases in vaccinated people, limited access to health care provider offices and institutions and the willingness of patients or parents of patients to seek treatment. We expect that our business, financial condition, results of operations and growth prospects may continue to be negatively impacted by the pandemic on a limited basis that may vary depending on the context. However we have begun to observe, and expect to continue to observe, a gradual normalization in patient and healthcare provider practices, as providers and patients have adapted their behaviors and procedures to the evolving circumstances and as COVID-19 vaccines continue to be administered. With respect to our commercialization activities, while there continues to be some negative impact on demand, new patient starts and treatments for our products arising from the pandemic, primarily due to the inherent limitations of telemedicine and a reprioritization of healthcare resources toward COVID-19, we have seen improvements as healthcare systems have adapted to cope with the ongoing situation. We believe these dynamics have negatively impacted new patient starts in the U.S. and Europe. The extent of the impact on our ability to generate sales of approved products, execute on new product launches, our clinical development and regulatory efforts, our corporate development objectives and the value of and market for our ordinary shares, will depend on future developments that are highly uncertain and cannot be predicted with confidence at this time. Such developments include continued spread of the Delta and Omicron variants in the U.S. and other countries and the potential emergence of other SARS-CoV-2 variants that may prove especially contagious or virulent, the ultimate duration and severity of the pandemic, governmental “stay-at-home” orders and travel restrictions, quarantines, social distancing and business closure requirements in the U.S., Ireland and other countries, and the effectiveness of vaccination programs and other actions taken globally to contain and treat the disease. Our business has been substantially dependent on Xyrem and while we expect that our business will continue to be substantially dependent on oxybate product sales from both Xywav and Xyrem, there is no guarantee that we can maintain oxybate revenues at or near current levels, or that oxybate revenues will continue to grow. Our ability to maintain or increase oxybate revenues and realize the anticipated benefits from our investment in Xywav are subject to a number of risks and uncertainties including, without limitation, those related to the launch of Xywav for the treatment of idiopathic hypersomnia in adults and adoption in that indication; competition from the introduction of authorized generic and generic versions of sodium oxybate and new products for treatment of cataplexy and/or EDS in narcolepsy in the U.S. market and from other competitors; the current and potential impacts of the COVID-19 pandemic, including the current and expected future negative impact on demand for our products; increased pricing pressure from, changes in policies by, or restrictions on reimbursement imposed by, third party payors, including our ability to maintain adequate coverage and reimbursement for Xywav; increased rebates required to maintain access to our products; challenges to our intellectual property around Xyrem and/or Xywav, including pending antitrust and intellectual property litigation; and continued acceptance of Xywav and Xyrem by physicians and patients . In addition to risks related specifically to Xywav and Xyrem, we are subject to other challenges and risks related to successfully commercializing a portfolio of oncology products and other neuroscience products, including Epidiolex, Sunosi, Defitelio, Vyxeos, Rylaze and Zepzelca, and other risks specific to our business and our ability to execute on our strategy, as well as risks and uncertainties common to companies in the pharmaceutical industry with development and commercial operations, including, without limitation, risks and uncertainties associated with: ongoing clinical research activity and related outcomes, obtaining regulatory approval of our late-stage product candidates; effectively commercializing our recently approved or acquired products such as Xywav, Epidiolex, Zepzelca and Rylaze; obtaining and maintaining adequate coverage and reimbursement for our products; contracting and rebates to pharmacy benefit managers that reduces our net revenue; increasing scrutiny of pharmaceutical product pricing and resulting changes in healthcare laws and policy; market acceptance; regulatory concerns with controlled substances generally and the potential for abuse; future legislation, Drug enforcement agency, or DEA, action or FDA action authorizing the sale, distribution, use, and insurance reimbursement of non-FDA approved cannabinoid products; delays or problems in the supply of our products, loss of single source suppliers or failure to comply with manufacturing regulations; delays or problems with third parties that are part of our manufacturing and supply chain; identifying, acquiring or in-licensing additional products or product candidates; pharmaceutical product development and the inherent uncertainty of clinical success; the challenges of protecting and enhancing our intellectual property rights; complying with applicable regulatory requirements; and possible restrictions on our ability and flexibility to pursue certain future opportunities as a result of our substantial outstanding debt obligations. In addition, the success of the GW Acquisition will depend, in part, on our ability to realize the anticipated benefits from successfully combining our and GW's historical businesses and the integration of our business practices and operations with GW's so that we can fully realize the anticipated benefits of the acquisition. The anticipated benefits to us of the GW Acquisition may not be realized fully within the expected timeframe or at all or may take longer to realize or cost more than expected, which could materially and adversely affect our business, financial condition, results of operations and growth prospects. Moreover, to the extent the COVID-19 pandemic continues to adversely affect our business and results of operations, it may also have the effect of heightening many of the other risks and uncertainties discussed above. Concentrations of Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, investments and derivative contracts. Our investment policy permits investments in U.S. federal government and federal agency securities, corporate bonds or commercial paper issued by U.S. corporations, money market instruments, certain qualifying money market mutual funds, certain repurchase agreements, and tax-exempt obligations of U.S. states, agencies and municipalities and places restrictions on credit ratings, maturities, and concentration by type and issuer. We are exposed to credit risk in the event of a default by the financial institutions holding our cash, cash equivalents and investments to the extent recorded on the balance sheet. We manage our foreign currency transaction risk and interest rate risk within specified guidelines through the use of derivatives. All of our derivative instruments are utilized for risk management purposes, and we do not use derivatives for speculative trading purposes. As of December 31, 2021 and 2020, we had foreign exchange forward contracts with notional amounts totaling $347.2 million and $357.4 million, respectively. As of December 31, 2021 and 2020, the outstanding foreign exchange forward contracts had a net liability fair value of $2.6 million and a net asset fair value of $11.1 million, respectively. As of December 31, 2021, we had a cross-currency interest rate swap with a notional amount of $251.0 million. This outstanding cross-currency interest rate swap contract had a net liability fair value of $15.2 million as of December 31, 2021. The counterparties to these contracts are large multinational commercial banks, and we believe the risk of nonperformance is not significant. We are also subject to credit risk from our accounts receivable related to our product sales. We monitor our exposure within accounts receivable and record a reserve against uncollectible accounts receivable as necessary. We extend credit to pharmaceutical wholesale distributors and specialty pharmaceutical distribution companies, primarily in the U.S., and to other international distributors and hospitals. Customer creditworthiness is monitored and collateral is not required. We monitor economic conditions in certain European countries which may result in variability of the timing of cash receipts and an increase in the average length of time that it takes to collect accounts receivable outstanding. Historically, we have not experienced significant credit losses on our accounts receivable and as of December 31, 2021, allowances on receivables were not material. As of December 31, 2021, three customers accounted for 74% of gross accounts receivable, Express Scripts Specialty Distribution Services, Inc. and its affiliates, or ESSDS, which accounted for 52% of gross accounts receivable, McKesson Corporation and affiliates, or McKesson, which accounted for 12% of gross accounts receivable and Cardinal Health Inc., or Cardinal, which accounted for 10% of gross accounts receivable. As of December 31, 2020, three customers accounted for 84% of gross accounts receivable, ESSDS, which accounted for 68% of gross accounts receivable, McKesson, which accounted for 12% of gross accounts receivable and Cardinal which accounted for 4% of gross accounts receivable. We depend on single source suppliers for most of our products, product candidates and their active pharmaceutical ingredients, or APIs. With respect to our oxybate products, the API is manufactured for us by a single source supplier and the finished product are manufactured both by us in our facility in Athlone, Ireland and by our U.S.-based supplier. Business Acquisitions Our consolidated financial statements include the results of operations of an acquired business from the date of acquisition. We account for acquired businesses using the acquisition method of accounting. The acquisition method of accounting for acquired businesses requires, among other things, that assets acquired, liabilities assumed and any noncontrolling interests in the acquired business be recognized at their estimated fair values as of the acquisition date, with limited exceptions, and that the fair value of acquired in-process research and development, or IPR&D, be recorded on the balance sheet. Also, transaction costs are expensed as incurred. Any excess of the acquisition consideration over the assigned values of the net assets acquired is recorded as goodwill. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved and changes in fair value are recognized in earnings. Cash Equivalents and Investments We consider all highly liquid investments, readily convertible to cash, that mature within three months or less from date of purchase to be cash equivalents. Investments consist of time deposits with initial maturities of greater than three months. Collectively, cash equivalents and investments are considered available-for-sale and are recorded at fair value. Unrealized gains and losses, net of tax, are recorded in accumulated other comprehensive loss in shareholders’ equity. We use the specific-identification method for calculating realized gains and losses on securities sold. Realized gains and losses and declines in value judged to be other than temporary on investments are included in interest expense, net in the consolidated statements of income (loss). Derivative Instruments and Hedging Activities We record the fair value of derivative instruments as either assets or liabilities on the consolidated balance sheets. Changes in the fair value of derivative instruments are recorded each period in current earnings or other comprehensive income (loss), depending on whether a derivative instrument is designated as part of a hedging transaction and, if it is, the type of hedging transaction. For a derivative to qualify as a hedge at inception and throughout the hedged period, we formally document the nature and relationships between the hedging instruments and hedged item. For derivatives formally designated as hedges, we assess both at inception and quarterly thereafter, whether the hedging derivatives are highly effective in offsetting changes in either the fair value or cash flows of the hedged item. Gains or losses on cash flow hedges are reclassified from other comprehensive income (loss) to earnings when the hedged transaction occurs. If we determine that a forecasted transaction is no longer probable of occurring, we discontinue hedge accounting and any related unrealized gain or loss on the derivative instrument is recognized in current earnings. We designate cross-currency interest rate swaps as fair value hedges to hedge foreign currency risks related to our borrowings denominated in currencies other than the U.S. dollar. Fair value hedge amounts included in the assessment of hedge effectiveness are recognized in foreign exchange gain (loss) within the consolidated statements of income (loss), along with the offsetting gains and losses of the related hedged item. We have elected to exclude the total forward points or currency basis from the assessment of hedge effectiveness and account for them as excluded components. The initial fair value of the excluded component is amortized to foreign exchange gain (loss) and the difference between changes in fair value of the excluded component and the amount recorded in earnings is recorded in other comprehensive income (loss). Derivatives that are not designated and do not qualify as hedges are adjusted to fair value through current earnings. Inventories Inventories are valued at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method for all inventories. Our policy is to write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value and inventory in excess of expected requirements. The estimate of excess quantities is subjective and primarily dependent on our estimates of future demand for a particular product. If our estimate of future demand changes, we consider the impact on the reserve for excess inventory and adjust the reserve as required. Increases in the reserve are recorded as charges in cost of product sales. We capitalize inventory costs associated with our products prior to regulatory approval when, based on management's judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed as research and development. The determination to capitalize inventory costs is based on various factors, including status and expectations of the regulatory approval process, any known safety or efficacy concerns, potential labeling restrictions, and any other impediments to obtaining regulatory approval. We had no pre-approval inventory on our consolidated balance sheet as of December 31, 2021 or 2020. Our inventory production process for our cannabinoid products includes the cultivation of botanical raw material. Because of the duration of the cultivation process, a portion of our inventory will not be sold within one year. Consistent with the practice in other industries that cultivate botanical raw materials, all inventory is classified as a current asset. Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows: Buildings 40 years Manufacturing equipment and machinery 4-20 years Computer software and equipment 3-7 years Furniture and fixtures 5 years Leasehold improvements are amortized over the shorter of the noncancelable term of our leases or their economic useful lives. Maintenance and repairs are expensed as incurred. Leases We determine if an arrangement is a lease at inception. Leases are classified at lease commencement as either operating leases or finance leases. Operating leases are included in operating lease assets, other current liabilities, and operating lease liabilities on our consolidated balance sheets. Finance lease assets are included in property, plant and equipment, net, and finance lease liabilities are included in other current liabilities and other non-current liabilities in our consolidated balance sheets. Lease assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. In determining the net present value of lease payments, we use our incremental borrowing rate based on the information available at the lease commencement date. The lease asset also includes any lease payments made, reduced by lease incentives and increased by initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Finance lease expense is recognized as depreciation expense of fixed assets and interest expense on finance lease liabilities. We have lease agreements with lease and non-lease components, which are generally accounted for separately. For vehicle leases we account for the lease and non-lease components as a single lease component. We have elected the short-term lease exemption and, therefore, do not recognize a lease asset or corresponding liability for lease arrangements with an original term of 12 months or less. Rent expense under short-term leases is recognized on a straight-line basis over the lease term. Goodwill Goodwill represents the excess of the acquisition consideration over the fair value of assets acquired and liabilities assumed. We have determined that we operate in a single segment and have a single reporting unit associated with the development and commercialization of pharmaceutical products. In performing the annual impairment test, the fair value of the reporting unit is compared to its corresponding carrying value, including goodwill. If the carrying value exceeds the fair value of the reporting unit an impairment loss will be recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. We test goodwill for impairment annually in October and when events or changes in circumstances indicate that the carrying value may not be recoverable. Acquired In-Process Research and Development The initial costs of rights to IPR&D projects acquired in an asset acquisition are expensed as IPR&D unless the project has an alternative future use. The fair value of IPR&D projects acquired in a business combination are capitalized and accounted for as indefinite-lived intangible assets until the underlying project receives regulatory approval, at which point the intangible asset will be accounted for as a finite-lived intangible asset, or discontinued, at which point the intangible asset will be written off. Development costs incurred after an acquisition are expensed as incurred. Intangible Assets Intangible assets with finite useful lives consist primarily of purchased developed technology and are amortized on a straight-line basis over their estimated useful lives, which range from two twenty Revenue Recognition Our revenue comprises product sales, net and royalty and contract revenues. Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Prior to recognizing revenue, we make estimates of the transaction price, including variable consideration that is subject to a constraint. Amounts of variable consideration are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Product Sales, Net Product sales revenue is recognized when control has transferred to the customer, which occurs at a point in time, which is typically on delivery to the customer or, in the case of products that are subject to consignment agreements, when the customer removes product from our consigned inventory location for shipment directly to a patient. Reserves for Variable Consideration Revenues from sales of products are recorded at the net sales price, which includes estimates of variable consideration for which reserves are established and which relate to returns, specialty distributor fees, wholesaler fees, prompt payment discounts, government rebates, government chargebacks, coupon programs and rebates under managed care plans and commercial payor contracts. Calculating certain of these reserves involves estimates and judgments and we determine their expected value based on sales or invoice data, contractual terms, historical utilization rates, new information regarding changes in these programs’ regulations and guidelines that would impact the amount of the actual rebates, our expectations regarding future utilization rates for these programs and channel inventory data. These reserves reflect our best estimates of the amount of consideration to which we are entitled based on the terms of the contract. The amount of variable consideration that is included in the transaction price may be constrained, and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. We reassess our reserves for variable consideration at each reporting date. Historically, adjustments to estimates for these reserves have not been material. Reserves for returns, specialty distributor fees, wholesaler fees, government rebates, coupon programs and rebates under managed care plans and commercial payor contracts are included within current liabilities in our consolidated balance sheets. Reserves for government chargebacks and prompt payment discounts are shown as a reduction in accounts receivable. Royalties and Contract Revenues We enter into out-licensing agreements under which we license certain rights to our products or product candidates to third parties. If a licensing arrangement includes multiple goods or services, we consider whether the license is distinct. If the license to our intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, we recognize revenue from non-refundable, upfront fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. If the license to our intellectual property is determined not to be distinct, it is combined with other goods or services into a combined performance obligation. We consider whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, upfront fees. We evaluate the measure of progress each reporting date and, if necessary, adjust the measure of performance and related revenue recognition. At the inception of each arrangement that includes development milestone payments, we evaluate whether the milestones are considered probable of being reached and estimate the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within our control or that of the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is allocated to each performance obligation on a relative stand-alone selling price basis, for which we recognize revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, we re-evaluate the probability of achievement of such development milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price. For arrangements that include sales-based royalties and milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties and sales-based milestones relate, we recognize revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty or sales-based milestone has been allocated has been satisfied (or partially satisfied). Cost of Product Sales Cost of product sales includes manufacturing and distribution costs, the cost of drug substance, royalties due to third parties on product sales, product liability and cargo insurance, FDA user fees, freight, shipping, handling and storage costs and salaries and related costs of employees involved with production. Excluded from cost of product sales shown on the consolidated statements of income (loss) is amortization of acquired developed technology of $525.8 million, $259.6 million and $243.7 million in 2021, 2020 and 2019, respectively. Research and Development Research and development expenses consist primarily of costs related to clinical studies and outside services, personnel expenses and other research and development costs, including milestone payments incurred prior to regulatory approval of products. Clinical study and outside services costs relate primarily to services performed by clinical research organizations, clinical studies performed at clinical sites, materials and supplies, and other third party fees. Personnel expenses relate primarily to salaries, benefits and share-based compensation. Other research and development expenses primarily include overhead allocations consisting of various support and facilities-related costs. Research and development costs are expensed as incurred. For product candidates that have not been approved by FDA, inventory used in clinical trials is expensed at the time of production and recorded as research and development expense. For products that have been approved by FDA, inventory used in clinical trials is expensed at the time the inventory is packaged for the trial. Advertising Expenses We expense the costs of advertising, including promotional expenses, as incurred. Advertising expenses were $161.5 million, $99.6 million and $65.4 million in 2021, 2020 and 2019, respectively. Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amount and the tax basis of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is provided when it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. We recognize the benefits of a tax position if it is “more-likely-than-not” of being sustained. A recognized tax benefit is then measured as the largest amount of tax benefit that is greater than fifty percent likely of being realized upon settlement. Interest and penalties related to an underpayment of income taxes are included in the income tax expense and classified with the related liability on the consolidated balance sheets. Foreign Currency Our functional and reporting currency is the U.S. dollar. The assets and liabilities of our subsidiaries that have a functional currency other than the U.S. dollar are translated into U.S. dollars at the exchange rate prevailing at the balance sheet date with the results of operations of subsidiaries translated at the weighted average exchange rate for the reporting period. The cumulative foreign currency translation adjustment is recorded as a component of accumulated other comprehensive income (loss) in shareholders’ equity. Transactions in foreign currencies are translated into the functional currency of the relevant subsidiary at the weighted average exchange rate for the reporting period. Any monetary assets and liabilities arising from these transactions are translated into the relevant functional currency at exchange rates prevailing at the balance sheet date or on settlement. Resulting gains and losses are recorded in foreign exchange gain (loss) in our consolidated statements of income (loss). Deferred Financing Costs Deferred financing costs are reported at cost, less accumulated amortization and are presented in the consolidated balance sheets as a direct deduction from the carrying value of the associated debt, with the exception of deferred financing costs associated with revolving-debt arrangements which are presented as assets. The related amortization expense is included in interest expense, net in our consolidated statements of income (loss). Contingencies From time to time, we may become involved in claims and other legal matters arising in the ordinary course of business. We record accruals for loss contingencies to the extent that we conclude that it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated. Legal fees and other expenses related to litigation are expensed as incurred and included in selling, general and administrative expenses. Share-Based Compensation We account for compensation cost for all share-based awards at fair value on the |
Business Combination, Asset Acq
Business Combination, Asset Acquisitions and Collaborations | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Combination, Asset Acquisitions and Collaborations | Business Combination, Asset Acquisitions and Collaborations GW Acquisition On May 5, 2021, or the Closing Date, we acquired the entire issued share capital of GW. As a result, GW became an indirect wholly owned subsidiary of the Company. We acquired GW with the objective of broadening our neuroscience portfolio, further diversifying our revenue and driving sustainable, long-term value creation opportunities. GW was a global leader in discovering, developing, manufacturing and commercializing novel, regulatory approved therapeutics from its proprietary cannabinoid research platform to address a broad range of diseases. The aggregate consideration for the GW Acquisition was $7.2 billion as follows (all amounts in thousands except American Depositary Shares, or ADS, and per GW ADS amounts): GW ADS outstanding May 5, 2021 31,556,200 Cash consideration per GW ADS $ 200 Total cash consideration to GW ADS holders $ 6,311,240 Cash consideration to GW share option holders (inclusive of payroll taxes) 267,450 Total cash consideration 6,578,690 Equity consideration to GW ADS holders (1) 608,456 Consideration related to replacement share option pre-combination service 3,555 Total equity consideration 612,011 Total purchase consideration $ 7,190,701 ________________________ (1) 3.8 million ordinary shares were issued to GW ADS holders. The closing price of the ordinary shares on May 4, 2021 ($160.20) was used to determine the fair value of this equity consideration because the closing of the transaction on May 5, 2021 occurred prior to the opening of regular trading. In April 2021, we closed an offering of $1.5 billion in aggregate principal amount of 4.375% senior secured notes, due 2029, or the Secured Notes. In May 2021, we entered into a credit agreement, or the Credit Agreement, that provides for (i) a seven-year $3.1 billion term loan B facility, or the Dollar Term Loan, (ii) a seven-year €625.0 million term loan B facility, or the Euro Term Loan and, together with the Dollar Term Loan, collectively known as the Term Loan and (iii) a five-year $500.0 million revolving credit facility, or the Revolving Credit Facility. We financed the cash portion of the GW Acquisition consideration through a combination of cash on hand and borrowings under the Term Loan and the Secured Notes. For further information on the Term Loan and the Secured Notes, please see Note 12. The GW Acquisition was accounted for as a business combination using the acquisition method under which assets and liabilities of GW were recorded at their respective estimated fair values as of the Closing Date and added to the assets and liabilities of the Company, including an amount for goodwill representing the difference between the acquisition consideration and the estimated fair value of the identifiable net assets. The results of operations of GW and the estimated fair values of the assets acquired and liabilities assumed have been included in our consolidated financial statements since the Closing Date. In 2021, we incurred $81.9 million in acquisition-related costs related to the GW Acquisition, which primarily consisted of banking, legal, accounting and valuation-related expenses. These expenses were recorded in selling, general and administrative expense in the accompanying consolidated statements of income (loss). In 2021, our consolidated statements of income (loss) included revenues of $476.4 million and a net loss of $704.6 million from the acquired GW business, as measured from the Closing Date. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed at the Closing Date before and after the measurement period adjustment (in thousands): Before Measurement Period Adjustment Measurement Period Adjustment After Measurement Period Adjustment Cash and cash equivalents $ 343,898 $ — $ 343,898 Accounts receivable 76,355 — 76,355 Inventory 1,206,290 — 1,206,290 Prepaid expenses and other current assets 72,758 — 72,758 Property, plant and equipment 154,407 — 154,407 Acquired developed technologies 5,480,000 — 5,480,000 In-process research and development 160,000 — 160,000 Total acquired identifiable intangible assets 5,640,000 — 5,640,000 Goodwill 947,831 (14,597) 933,234 Deferred tax liabilities, net (1,083,673) 14,597 (1,069,076) Accrued liabilities (131,971) — (131,971) Other assets/liabilities (35,194) — (35,194) Total purchase consideration $ 7,190,701 $ — $ 7,190,701 The fair value estimates for the assets acquired and liabilities assumed were based upon preliminary calculations, and our estimates and assumptions are subject to change as we obtain additional information for our estimates during the measurement period (up to one year from the Closing Date). During the three months ended December 31, 2021, we recorded a measurement period adjustment which reduced deferred tax liabilities, net and goodwill by $14.6 million. The measurement period adjustment primarily related to the refinement of the opening UK net operating loss position of GW. Inventory Inventories acquired included raw materials, work in progress and finished goods. Inventories were recorded at their estimated fair values. The inventory was valued at estimated selling price less the estimated costs to be incurred to complete (in the case of work in progress) and sell the inventory, the associated margins on these activities and holding costs. A step-up in value of inventory of $1,062.6 million was recorded in connection with the GW Acquisition. The step-up expense will be recorded in cost of product sales on our consolidated statements of income (loss) as the inventory is sold to customers from the Closing Date. Intangible assets The fair value of acquired intangible assets was $5,640.0 million. The intangible assets include acquired developed technologies, primarily related to Epidiolex, and IPR&D. The fair value of the Epidiolex acquired developed technology asset was determined by applying the income approach, which recognizes that the fair value of an asset is premised upon the expected receipt of future economic benefits such as earnings and cash inflows based on current sales projections and estimated direct costs, using a discount rate of 9.4% that reflects the return requirements of the market. This intangible asset is being amortized over an estimated useful life of 12 years. Acquired IPR&D relates to nabiximols, which is currently in Phase 3 clinical trials for the treatment of spasticity associated with multiple sclerosis and spinal cord injury. The fair value of acquired IPR&D was determined using the income approach, including the application of probability factors related to the likelihood of success of nabiximols reaching final development and commercialization. The fair value of acquired IPR&D was capitalized as of the Closing Date and is subsequently accounted for as an indefinite-lived intangible asset until completion or abandonment of the associated research and development efforts. Accordingly, during the development period after the Closing Date, this asset will not be amortized into earnings; instead, it will be subject to periodic impairment testing. Some of the more significant assumptions inherent in the development of intangible asset fair values include: the amount and timing of projected future cash flows (including revenue, cost of sales, research and development cost and sales and marketing expenses); probability of success; the discount rate selected to measure inherent risk of future cash flows; and the assessment of the asset’s life cycle and the competitive trends impacting the asset, among other factors. Deferred tax liabilities, net The net deferred tax liability relates to the difference between the financial statement carrying amount and the tax basis of acquired intangible assets and inventory, partially offset by acquired net operating loss carryforwards and other temporary differences. Other tangible assets and liabilities Other tangible assets and liabilities were valued at their respective carrying amounts as management believes that these amounts approximated their acquisition-date fair values. Goodwill Goodwill represents the excess of the total purchase consideration over the estimated fair value of net assets acquired and was recorded in the consolidated balance sheet as of the Closing Date. The goodwill was primarily attributable to the establishment of the deferred tax liability for the acquired intangible assets and inventory. We do not expect any portion of this goodwill to be deductible for income tax purposes. Pro Forma Financial Information (Unaudited) The following unaudited supplemental pro forma information presents the combined historical results of income (loss) of the Company and GW for 2021 and 2020, respectively, as if the GW Acquisition had been completed on January 1, 2020. The primary pro forma adjustments include: • The exclusion of acquisition-related and integration expenses of $357.6 million in 2021 and related income tax expense of $23.6 million. The inclusion of acquisition-related and integration expenses of $386.7 million in 2020 and related income tax benefit of $27.9 million. • An increase in amortization expense of $159.1 million in 2021 and related income tax benefit of $30.2 million. An increase in amortization expense of $464.6 million in 2020 and related income tax benefit of $88.3 million. • An increase in cost of product sales of $81.9 million in 2021 and related income tax benefit of $12.4 million. An increase in cost of product sales of $296.3 million in 2020 and related income tax benefit of $59.5 million. • An increase in interest expense of $49.1 million in 2021 and related income tax benefit of $9.0 million. An increase in interest expense of $241.0 million in 2020 and related income tax benefit of $51.9 million. The increase in interest arose on additional borrowings made to partially fund the GW Acquisition as if the borrowings had occurred on January 1, 2020. The unaudited pro forma results do not assume any operating efficiencies as a result of the consolidation of operations and are as follows (in thousands): Year Ended 2021 2020 Total revenues $ 3,294,697 $ 2,890,772 Net loss $ (422,588) $ (980,481) Asset Acquisition and Exclusive License Agreement In October 2020, we entered into an asset purchase and exclusive license agreement with SpringWorks Therapeutics, Inc., or SpringWorks, under which we acquired SpringWorks’ fatty acid amide hydrolase, or FAAH, inhibitor program. Under the terms of the agreement, SpringWorks has assigned or exclusively licensed all assets relating to its FAAH inhibitor program to us, including assignment of SpringWorks’ proprietary FAAH inhibitor PF-04457845, or PF-’845, now named JZP150 and its license agreement with Pfizer, Inc., or Pfizer, under which Pfizer exclusively licensed PF-’845 to SpringWorks in 2017. In addition to assuming all milestone and royalty obligations owed by SpringWorks to Pfizer, we made an upfront payment of $35.0 million to SpringWorks, which was recorded as acquired IPR&D expense in our consolidated statement of income for the year ended December 31, 2020, and may make potential milestone payments to SpringWorks of up to $375.0 million upon the achievement of certain clinical, regulatory and commercial milestones, and pay incremental tiered royalties to SpringWorks on future net sales of JZP150 in the mid- to high-single digit percentages. License Agreement In December 2019, we entered into an exclusive license agreement, or original license agreement, with Pharma Mar, S.A., or PharmaMar, for development and U.S. commercialization of Zepzelca. Zepzelca was granted orphan drug designation for relapsed SCLC by FDA in August 2018. In December 2019, PharmaMar submitted a new drug application, or NDA, to FDA for accelerated approval of Zepzelca for relapsed SCLC based on data from a Phase 2 trial, and in February 2020, FDA accepted the NDA for filing with priority review. In June 2020, FDA approved the NDA for Zepzelca for the treatment of adult patients with metastatic SCLC with disease progression on or after platinum-based chemotherapy. Under the terms of the original license agreement, which became effective in January 2020 upon expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, we paid PharmaMar an upfront payment of $200.0 million, which was recorded as acquired IPR&D expense in our consolidated statement of income for the year ended December 31, 2020. In June 2020, we made a milestone payment of $100.0 million to PharmaMar following FDA accelerated approval of Zepzelca, which was capitalized as an intangible asset on our consolidated balance sheet. In October 2021, we reached our first sales milestone triggering a payment of $25.0 million, which was capitalized as an intangible asset on our consolidated balance sheet. PharmaMar is eligible to receive potential future regulatory milestone payments of up to $150.0 million upon the achievement of continued U.S. regulatory approval of Zepzelca following the successful completion of confirmatory trials within certain timelines. PharmaMar is also eligible to receive up to $525.0 million in potential U.S. commercial milestone payments, as well as incremental tiered royalties on future net sales of Zepzelca ranging from the high teens up to 30 percent. PharmaMar may receive additional payments on approval of other indications, with any such payments creditable against commercial milestone payment obligations. PharmaMar retains production rights for Zepzelca and will supply the product to us. In October 2020, we entered into an amendment and restatement of the original license agreement with PharmaMar, or the amended license agreement, which expanded our exclusive license to include rights to develop and commercialize Zepzelca in Canada. To date, we have paid PharmaMar an upfront payment of $1.0 million, which was recorded as acquired IPR&D expense in our consolidated statement of income for the year ended December 31, 2020, and a milestone payment of $1.0 million in September 2021 following the first NDA Approval by Health Canada, which was capitalized as an intangible asset on our consolidated balance sheet. PharmaMar is also eligible to receive up to $6.0 million in potential Canadian regulatory and commercial milestone payments, as well as incremental tiered royalties on future Canadian net sales of Zepzelca ranging from the high teens up to 30 percent. Asset Acquisition In August 2019, we announced the acquisition of Cavion, Inc., or Cavion, a clinical-stage biotechnology company, for an upfront payment of $52.5 million with the potential for additional payments of up to $260.0 million upon the achievement of certain clinical, regulatory and commercial milestones, for a total potential consideration of $312.5 million. As a result of the acquisition, we added JZP385, a modulator of T-type calcium channels, for the potential treatment of essential tremor, to our clinical pipeline. The acquisition of Cavion was accounted for as an asset acquisition because it did not meet the definition of a business. The following table summarizes the total consideration for the acquisition and the value of assets acquired and liabilities assumed (in thousands): Consideration Upfront payment for acquisition of Cavion's outstanding shares $ 52,500 Cash acquired 397 Working capital adjustment (255) Transaction costs 2,829 Total consideration $ 55,471 Assets Acquired and Liabilities Assumed Cash $ 397 In-process research and development 48,275 Deferred tax assets 7,995 Other assets and liabilities (1,196) Total net assets acquired $ 55,471 The value attributed to in-process research and development related to JZP385 and was expensed as it was determined to have no alternative future use. Collaboration and License Agreement In January 2019, we entered into a strategic collaboration agreement with Codiak BioSciences, Inc., or Codiak, focused on the research, development and commercialization of exosome therapeutics to treat cancer. Codiak granted us an exclusive, worldwide, royalty-bearing license to develop, manufacture and commercialize therapeutic candidates directed at five targets to be developed using Codiak's engEx™ precision engineering platform for exosome therapeutics. Under the terms of the agreement, Codiak is responsible for the execution of preclinical and early clinical development of therapeutic candidates directed at all five targets through Phase 1/2 proof of concept studies. Following the conclusion of the applicable Phase 1/2 study, we will be responsible for future development, potential regulatory submissions and commercialization for each product. Codiak has the option to participate in co-commercialization and cost/profit-sharing in the U.S. and Canada on up to two products. As part of the agreement, we paid Codiak an upfront payment of $56.0 million in January 2019, which was recorded as acquired IPR&D expense in our consolidated statement of income for the year ended December 31, 2020. Codiak is eligible to receive up to $20.0 million in preclinical development milestone payments. Codiak is also eligible to receive milestone payments totaling up to $200.0 million per target based on investigational new drug application acceptance, clinical and regulatory milestones, including approvals in the U.S., the European Union and Japan, and certain sales milestones. Codiak is also eligible to receive tiered royalties on net sales of each approved product. Collaboration and Option Agreement In 2017, we entered into a collaboration and option agreement with ImmunoGen, Inc. and we paid them a non-refundable upfront payment of $75.0 million, which was charged to acquired IPR&D expense upon closing of the transaction. |
Cash and Available-for-Sale Sec
Cash and Available-for-Sale Securities | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Available-for-Sale Securities | Cash and Available-for-Sale Securities Cash and cash equivalents and investments consisted of the following (in thousands): December 31, 2021 Amortized Gross Gross Estimated Cash and Investments Cash $ 510,747 $ — $ — $ 510,747 $ 510,747 $ — Money market funds 80,701 — — 80,701 80,701 — Totals $ 591,448 $ — $ — $ 591,448 $ 591,448 $ — December 31, 2020 Amortized Gross Gross Estimated Cash and Investments Cash $ 517,117 $ — $ — $ 517,117 $ 517,117 $ — Time deposits 1,360,000 — — 1,360,000 285,000 1,075,000 Money market funds 255,652 — — 255,652 255,652 — Totals $ 2,132,769 $ — $ — $ 2,132,769 $ 1,057,769 $ 1,075,000 Cash equivalents and investments are considered available-for-sale securities. We use the specific-identification method for calculating realized gains and losses on securities sold and include them in interest expense, net in the consolidated statements of income (loss). Our investment balances represent time deposits with original maturities of greater than three months and less than one year. Interest income from available-for-sale securities was $1.8 million, $11.1 million and $20.5 million in 2021, 2020 and 2019, respectively. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement The following table summarizes, by major security type, our available-for-sale securities and derivative contracts that were measured at fair value on a recurring basis and were categorized using the fair value hierarchy (in thousands): December 31, 2021 December 31, 2020 Quoted Significant Total Quoted Significant Total Assets: Available-for-sale securities: Time deposits $ — $ — $ — $ — $ 1,360,000 $ 1,360,000 Money market funds 80,701 — 80,701 255,652 — 255,652 Foreign exchange forward contracts — 580 580 — 11,907 11,907 Totals $ 80,701 $ 580 $ 81,281 $ 255,652 $ 1,371,907 $ 1,627,559 Liabilities: Cross-currency interest rate contracts $ — $ 15,232 $ 15,232 $ — $ — $ — Interest rate contracts — — — — 2,835 2,835 Foreign exchange forward contracts — 3,187 3,187 — 790 790 Totals $ — $ 18,419 $ 18,419 $ — $ 3,625 $ 3,625 As of December 31, 2021 our available-for-sale securities were comprised of money market funds and the carrying value was approximately equal to the fair values. Money market funds were measured using quoted prices in active markets, which represent Level 1 inputs. As of December 31, 2020 our available-for-sale securities comprised money market funds and time deposits. Time deposits were measured at fair value using Level 2 inputs. Level 2 inputs are obtained from various third party data providers and represent quoted prices for similar assets in active markets, or these inputs were derived from observable market data, or if not directly observable, were derived from or corroborated by other observable market data. Our derivative assets and liabilities include cross-currency interest rate and foreign exchange derivatives that are measured at fair value using observable market inputs such as forward rates, interest rates, our own credit risk as well as an evaluation of our counterparties’ credit risks. Based on these inputs, the derivative assets and liabilities are classified within Level 2 of the fair value hierarchy. The interest rate swap agreements matured in July 2021. There were no transfers between the different levels of the fair value hierarchy in 2021 or in 2020. As of December 31, 2021 and 2020, the carrying amount of investments measured using the measurement alternative for equity investments without a readily determinable fair value was $5.0 million and $4.5 million, respectively. The carrying amount, which is recorded within other non-current assets, is based on the latest observable transaction price. As of December 31, 2021, the estimated fair values of our 1.50% exchangeable senior notes due 2024, or the 2024 Notes, and our 2.00% exchangeable senior notes due 2026, or the 2026 Notes, were approximately $576.0 million and $1.1 billion, respectively. The 2024 Notes and the 2026 Notes, together with the 1.875% exchangeable senior notes due 2021, or the 2021 Notes, that were repurchased on maturity on August 15, 2021, are collectively known as the Exchangeable Senior Notes. As of December 31, 2021, the estimated fair value of the Secured Notes, the Dollar Term Loan and the Euro Term Loan, were approximately $1.6 billion, $3.1 billion and $236.0 million, respectively. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities We are exposed to certain risks arising from operating internationally, including fluctuations in foreign exchange rates primarily related to the translation of the Euro Term Loan and sterling and euro-denominated net monetary liabilities, including intercompany balances, held by subsidiaries with a U.S. dollar functional currency. We manage these exposures within specified guidelines through the use of derivatives. All of our derivative instruments are utilized for risk management purposes, we do not use derivatives for speculative trading purposes. In order to hedge our exposure to foreign currency exchange risk associated with our Euro Term Loan, we entered into a cross-currency interest rate swap contract in May 2021 with a maturity date of March 31, 2022. The terms of this contract convert the principal repayments and interest payments on our Euro Term Loan into U.S. dollar. As of December 31, 2021, the cross-currency interest rate swap had a notional amount of $251.0 million which is designated for accounting purposes as a fair value hedge. The carrying amount of the Euro Term Loan and the fair value of the cross-currency interest rate swap contract will be remeasured with changes in the euro to U.S. dollar foreign exchange rates recognized within foreign exchange loss in the consolidated statements of income (loss). The impact on accumulated other comprehensive income (loss) and earnings from the cross-currency interest rate swap contract was as follows (in thousands): Cross-Currency Interest Rate Contract: Year Ended December 31, 2021 Loss recognized in accumulated other comprehensive income (loss), net of tax $ (375) Loss reclassified from accumulated other comprehensive income (loss) to foreign exchange loss, net of tax 246 Loss recognized in foreign exchange loss 35,885 During the next 12 months, we expect to reclassify $0.1 million of losses, net of tax, on the cross-currency interest rate contract recognized in accumulated other comprehensive income (loss) to foreign exchange gain (loss). We enter into foreign exchange forward contracts, with durations of up to 12 months, designed to limit the exposure to fluctuations in foreign exchange rates related to the translation of certain non-U.S. dollar denominated liabilities, including intercompany balances. Hedge accounting is not applied to these derivative instruments as gains and losses on these hedge transactions are designed to offset gains and losses on underlying balance sheet exposures. As of December 31, 2021 and 2020 , the notional amount of foreign exchange contracts where hedge accounting was not applied was $347.2 million and $357.4 million, respectively. The foreign exchange loss in our consolidated statements of income (loss) included the following gains and losses associated with foreign exchange contracts not designated as hedging instruments (in thousands): Year Ended December 31, Foreign Exchange Forward Contracts: 2021 2020 2019 Gain (loss) recognized in foreign exchange loss $ (19,585) $ 19,843 $ (6,192) The cash flow effects of our derivative contracts are included within net cash provided by operating activities in the consolidated statements of cash flows, except for the settlement of notional amounts of the cross-currency swap, which are included in net cash provided by (used in) financing activities. To achieve a desired mix of floating and fixed interest rates on our variable rate debt, we entered into interest rate swap agreements in March 2017. In May 2021, we repaid the term loan to which these interest rate swap agreements related, at which point the interest rate swap contracts were de-designated as cash flow hedges. The interest rate swap agreements matured in July 2021. The impact on accumulated other comprehensive income (loss) and earnings from interest rate swap contracts was as follows (in thousands): Year Ended December 31, Interest Rate Contracts: 2021 2020 2019 Loss recognized in accumulated other comprehensive income (loss), net of tax $ (14) $ (4,543) $ (3,903) Loss (gain) reclassified from accumulated other comprehensive income (loss) to interest expense, net of tax $ 2,482 $ 3,401 $ (979) The following tables summarize the fair value of outstanding derivatives (in thousands): December 31, 2021 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Cross-currency interest rate contracts Other current assets $ — Accrued liabilities $ 15,232 Derivatives not designated as hedging instruments: Foreign exchange forward contracts Other current assets 580 Accrued liabilities 3,187 Total fair value of derivative instruments $ 580 $ 18,419 December 31, 2020 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate contracts Other current assets $ — Accrued liabilities $ 2,835 Derivatives not designated as hedging instruments: Foreign exchange forward contracts Other current assets 11,907 Accrued liabilities 790 Total fair value of derivative instruments $ 11,907 $ 3,625 Although we do not offset derivative assets and liabilities within our consolidated balance sheets, our International Swap and Derivatives Association agreements provide for net settlement of transactions that are due to or from the same counterparty upon early termination of the agreement due to an event of default or other termination event. The following tables summarize the potential effect on our consolidated balance sheets of offsetting our interest rate contracts and foreign exchange forward contracts subject to such provisions (in thousands): December 31, 2021 Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Description Derivative Financial Instruments Cash Collateral Received (Pledged) Net Amount Derivative assets $ 580 $ — $ 580 $ (567) $ — $ 13 Derivative liabilities $ (18,419) $ — $ (18,419) $ 567 $ — $ (17,852) December 31, 2020 Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Description Derivative Financial Instruments Cash Collateral Received (Pledged) Net Amount Derivative assets $ 11,907 $ — $ 11,907 $ (2,207) $ — $ 9,700 Derivative liabilities $ (3,625) $ — $ (3,625) $ 2,207 $ — $ (1,418) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): December 31, 2021 2020 Raw materials $ 21,550 $ 16,003 Work in process 886,849 45,758 Finished goods 164,322 33,635 Total inventories $ 1,072,721 $ 95,396 As of December 31, 2021, inventories included $811.3 million related to the purchase accounting inventory fair value step-up on inventory acquired in the GW Acquisition. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Current Assets [Abstract] | |
Other Current Assets | Other Current Assets Other current assets consisted of the following (in thousands): December 31, 2021 2020 Deferred charge for income taxes on intercompany profit $ 203,480 $ 114,234 Other 48,912 38,257 Total other current assets $ 252,392 $ 152,491 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following (in thousands): December 31, 2021 2020 Construction-in-progress $ 86,511 $ 7,262 Manufacturing equipment and machinery 69,079 33,465 Leasehold improvements 66,318 54,113 Land and buildings 64,008 47,555 Computer software 25,646 22,781 Computer equipment 16,234 18,749 Furniture and fixtures 14,412 11,598 Subtotal 342,208 195,523 Less accumulated depreciation and amortization (85,371) (67,588) Property, plant and equipment, net $ 256,837 $ 127,935 Depreciation and amortization expense on property, plant and equipment amounted to $26.7 million, $18.7 million and $15.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The gross carrying amount of goodwill was as follows (in thousands): Balance at December 31, 2020 $ 958,303 Goodwill arising from the GW Acquisition 933,234 Foreign exchange (63,928) Balance at December 31, 2021 $ 1,827,609 The gross carrying amounts and net book values of our intangible assets were as follows (in thousands): December 31, 2021 December 31, 2020 Remaining Gross Accumulated Net Book Gross Accumulated Net Book Acquired developed technologies 11.4 $ 8,195,675 $ (1,198,333) $ 6,997,342 $ 3,379,162 $ (1,184,111) $ 2,195,051 Manufacturing contracts — 12,124 (12,124) — 13,135 (13,135) — Trademarks — 2,893 (2,893) — 2,917 (2,917) — Total finite-lived intangible assets 8,210,692 (1,213,350) 6,997,342 3,395,214 (1,200,163) 2,195,051 Acquired IPR&D assets 154,986 — 154,986 — — — Total intangible assets $ 8,365,678 $ (1,213,350) $ 7,152,328 $ 3,395,214 $ (1,200,163) $ 2,195,051 The increase in the gross carrying amount of intangible assets as of December 31, 2021 compared to December 31, 2020 primarily reflects the intangible assets arising from the GW Acquisition, as described in Note 3, partially offset by the de-recognition of the fully amortized Erwinaze intangible assets and the negative impact of foreign currency translation adjustments due to the weakening of sterling and euro against the U.S. dollar. The assumptions and estimates used to determine future cash flows and remaining useful lives of our intangible and other long-lived assets are complex and subjective. They can be affected by various factors, including external factors, such as industry and economic trends, and internal factors such as changes in our business strategy and our forecasts for specific product lines. Based on finite-lived intangible assets recorded as of December 31, 2021, and assuming the underlying assets will not be impaired and that we will not change the expected lives of any other assets, future amortization expenses were estimated as follows (in thousands): Year Ending December 31, Estimated Amortization Expense 2022 $ 627,866 2023 627,866 2024 627,866 2025 627,866 2026 627,866 Thereafter 3,858,012 Total $ 6,997,342 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following (in thousands): December 31, 2021 2020 Rebates and other sales deductions $ 215,397 $ 127,534 Employee compensation and benefits 158,870 102,601 Accrued interest 48,640 5,722 Clinical trial accruals 25,612 9,108 Accrued milestones 25,000 — Consulting and professional services 22,507 6,660 Selling and marketing accruals 21,566 6,742 Accrued royalties 20,345 15,230 Derivative instrument liabilities 18,419 3,625 Inventory-related accruals 16,166 9,809 Sales return reserve 15,814 18,368 Current portion of lease liabilities 15,763 14,457 Accrued construction-in-progress 2,894 1,119 Other 59,311 31,757 Total accrued liabilities $ 666,304 $ 352,732 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table summarizes the carrying amount of our indebtedness (in thousands): December 31, 2021 2020 2021 Notes $ — $ 218,812 Unamortized discount and debt issuance costs on 2021 Notes — (5,883) 2021 Notes, net — 212,929 2024 Notes 575,000 575,000 Unamortized discount and debt issuance costs on 2024 Notes (71,237) (95,275) 2024 Notes, net 503,763 479,725 2026 Notes 1,000,000 1,000,000 Unamortized discount and debt issuance costs on 2026 Notes (150,730) (179,518) 2026 Notes, net 849,270 820,482 Secured Notes 1,473,810 — Term Loan 3,223,100 581,702 Total debt 6,049,943 2,094,838 Less current portion 31,000 246,322 Total long-term debt $ 6,018,943 $ 1,848,516 Credit Agreement On May 5, 2021, the Company, Jazz Financing Lux S.à.r.l., or Jazz Lux, and certain of our other subsidiaries, as borrowers, (collectively with the Company and Jazz Lux, the “Borrowers”), entered into the Credit Agreement, that provides for (i) the Dollar Term Loan which was drawn by Jazz Lux on the Closing Date in U.S. dollars (ii) the Euro Term Loan which was drawn by Jazz Lux on the Closing Date in Euros and (iii) the Revolving Credit Facility, which is available to be drawn by any Borrower in U.S. dollars. We used the proceeds from the Term Loan (i) to repay in full $575.9 million under that certain credit agreement, dated as of June 18, 2015 (as amended) among the Company, and certain of our other subsidiaries as borrowers, the lenders party thereto and Bank of America, N.A., as administrative agent and collateral agent, or the Existing Credit Agreement, (ii) to fund, in part, the cash consideration payable in connection with the GW Acquisition and (iii) to pay related fees and expenses. Upon the repayment in full of loans under the Existing Credit Agreement, it was terminated and all guarantees and liens thereunder were released. Loans under the Term Loan and Revolving Credit Facility bear interest at a rate equal to (A) in the case of the Dollar Term Loan and the Revolving Credit Facility, at the applicable Borrower’s option, either (a) London Inter-Bank Offered Rate, or LIBOR or (b) the prime lending rate and (B) in the case of the Euro Term Loan, Euro Inter-Bank Offered Rate, or EURIBOR, in each case, plus an applicable margin. The applicable margin for the Term Loan is 3.50% (in the case of LIBOR or EURIBOR borrowings) and 2.50% (in the case of borrowings at the prime lending rate). The applicable margin for the Revolving Credit Facility ranges from 3.25% to 2.75% (in the case of LIBOR borrowings) and 2.25% to 1.75% (in the case of borrowings at the prime lending rate), depending on our first lien secured net leverage ratio level. The Dollar Term Loan is subject to a LIBOR floor of 0.50%, the Euro Term Loan and loans under the Revolving Credit Facility are not subject to a EURIBOR or LIBOR (as applicable) floor. The Revolving Credit Facility has a commitment fee payable on the undrawn amount ranging from 0.50% to 0.40% per annum based upon our first lien secured net leverage ratio. As of December 31, 2021, the interest rate and effective interest rate on the Dollar Term Loan were 4.00% and 4.55%, respectively. The interest rate and effective interest rate on the Euro Term Loan were 4.43% and 4.93%, respectively. As of December 31, 2021, we had an undrawn Revolving Credit Facility totaling $500.0 million. The Borrowers’ obligations under the Credit Agreement and any hedging or cash management obligations entered into with any lender thereunder are guaranteed by the Company, the other borrowers, and each of the Company’s other existing or subsequently acquired or organized direct and indirect subsidiaries (subject to certain exceptions), or the Guarantors. We refer to the Borrowers and the Guarantors collectively as the “Loan Parties.” The Loan Parties’ obligations under the Credit Agreement are secured, subject to customary permitted liens and other exceptions, by a security interest in (a) all tangible and intangible assets of the Loan Parties, except for certain excluded assets, and (b) all of the equity interests of the subsidiaries of the Loan Parties held by the Loan Parties. We may make voluntary prepayments at any time without payment of a premium or penalty, subject to certain exceptions, and are required to make certain mandatory prepayments of outstanding indebtedness under the Credit Agreement in certain circumstances. Principal repayments of the Dollar Term Loan, which are due quarterly, began in September 2021 and are equal to 1.0% per annum of the original principal amount of $3.1 billion with any remaining balance payable on the maturity date. The Euro Term Loan does not have any mandatory principal repayments during its term, however in September and December 2021, we made voluntary prepayments totaling €416.7 million or $502.0 million. The Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants applicable to the Company and its restricted subsidiaries, including, among other things, restrictions on indebtedness, liens, investments, mergers, dispositions, prepayment of junior indebtedness and dividends and other distributions. The Credit Agreement contains financial covenants that require the Company and its restricted subsidiaries to (a) not exceed a maximum first lien secured net leverage ratio and (b) not fall below a minimum interest coverage ratio, provided that such covenants apply only to the Revolving Credit Facility and are applicable only if amounts are drawn (or non-cash collateralized letters of credit in excess of $50 million are outstanding) under the Revolving Credit Facility. The Credit Agreement also contains customary events of default relating to, among other things, failure to make payments, breach of covenants and breach of representations. 2029 Senior Secured Notes On April 29, 2021, Jazz Securities Designated Activity Company, or Jazz Securities, a direct wholly owned subsidiary of the Company, closed the offering of the Secured Notes in a private placement. We used the proceeds from the Secured Notes to fund, in part, the cash consideration payable in connection with the GW Acquisition. Interest on the Secured Notes is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2022, at a rate of 4.375% per year. The Secured Notes mature on January 15, 2029. The Secured Notes are jointly and severally guaranteed by the Company and each of its restricted subsidiaries, other than Jazz Securities, that is a borrower, or a guarantor, under the Credit Agreement. The Secured Notes and related guarantees are secured by a first priority lien (subject to permitted liens and certain other exceptions), equally and ratably with the Credit Agreement, on the collateral securing the Credit Agreement. Except as described below, the Secured Notes may not be optionally redeemed before July 15, 2024. Thereafter, some or all of the Secured Notes, may be redeemed at any time and from time to time at a specified redemption prices, plus accrued and unpaid interest, if any, to, but excluding, to the redemption date. Jazz Securities may redeem all but not part of the Secured Notes at its option at any time in connection with certain tax-related events and may redeem some or all of the Secured Notes at any time and from time to time prior to July 15, 2024 at a price equal to 100% of the principal amount of the Secured Notes to be redeemed plus a “make whole” premium, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, Jazz Securities may redeem up to 40% of the aggregate principal amount of the Secured Notes at any time and from time to time prior to July 15, 2024, with the net proceeds of certain equity offerings at a price of 104.375% of the principal amount of such Secured Notes, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, during each of the three consecutive twelve-month periods commencing on the issue date of the Secured Notes, Jazz Securities may redeem up to 10% of the original aggregate initial principal amount of the Secured Notes at a redemption price of 103% of the principal amount of such Secured Notes, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. If Jazz undergoes a change of control, Jazz Securities will be required to make an offer to purchase all of the Secured Notes at a purchase price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase, subject to certain exceptions. The indenture governing the Secured Notes contains customary affirmative covenants and negative covenants applicable to the Company and its restricted subsidiaries, including, among other things, restrictions on indebtedness, liens, investments, mergers, dispositions, prepayment of junior indebtedness and dividends and other distributions. If Jazz Securities or the Company’s restricted subsidiaries engage in certain asset sales, Jazz Securities will be required under certain circumstances to make an offer to purchase the Secured Notes at 100% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. As of December 31, 2021, the interest rate and effective interest rate on the Secured Notes were 4.375% and 4.64%, respectively. Exchangeable Senior Notes Due 2026 In 2020 we completed a private placement of $1.0 billion principal amount of the 2026 Notes. We used a portion of the net proceeds from this offering to repurchase for cash $332.9 million aggregate principal amount of the 2021 Notes through privately-negotiated transactions concurrently with the offering of the 2026 Notes. Interest on the 2026 Notes is payable semi-annually in cash in arrears on June 15 and December 15 of each year, beginning on December 15, 2020, at a rate of 2.00% per year. In certain circumstances, we may be required to pay additional amounts as a result of any applicable tax withholding or deductions required in respect of payments on the 2026 Notes. The 2026 Notes mature on June 15, 2026, unless earlier exchanged, repurchased or redeemed. The holders of the 2026 Notes have the ability to require us to repurchase all or a portion of their 2026 Notes for cash in the event we undergo certain fundamental changes, such as specified change of control transactions, our liquidation or dissolution or the delisting of our ordinary shares from any of The New York Stock Exchange, The Nasdaq Global Market, The Nasdaq Global Select Market or The Nasdaq Capital Market (or any of their respective successors). Additionally, the terms and covenants in the indenture related to the 2026 Notes include certain events of default after which the 2026 Notes may be due and payable immediately. Prior to June 15, 2026, we may redeem the 2026 Notes, in whole but not in part, subject to compliance with certain conditions, if we have, or on the next interest payment date would, become obligated to pay to the holder of any 2026 Notes additional amounts as a result of certain tax-related events. We also may redeem the 2026 Notes on or after June 20, 2023 and prior to March 15, 2026, in whole or in part, if the last reported sale price per ordinary share has been at least 130% of the exchange price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide the notice of redemption. The 2026 Notes are exchangeable at an initial exchange rate of 6.4182 ordinary shares per $1,000 principal amount of 2026 Notes, which is equivalent to an initial exchange price of approximately $155.81 per ordinary share. Upon exchange, the 2026 Notes may be settled in cash, ordinary shares or a combination of cash and ordinary shares, at our election. Our intent and policy is to settle the principal amount of the 2026 Notes in cash upon exchange. The exchange rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain make-whole fundamental changes occurring prior to the maturity date of the 2026 Notes or upon our issuance of a notice of redemption, we will in certain circumstances increase the exchange rate for holders of the 2026 Notes who elect to exchange their 2026 Notes in connection with that make-whole fundamental change or during the related redemption period. Prior to March 15, 2026, the 2026 Notes will be exchangeable only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. In accounting for the issuance of the 2026 Notes, we separated the 2026 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the estimated fair value of a similar liability that does not have an associated exchange feature. The carrying amount of the equity component representing the exchange option was determined by deducting the fair value of the liability component from the face value of the 2026 Notes as a whole. The excess of the principal amount of the liability component over its carrying amount will be amortized to interest expense over the expected life of the 2026 Notes using the effective interest method with an effective interest rate of 5.98% per annum. We have determined the expected life of the 2026 Notes to be equal to the original 6-year term. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. As of December 31, 2021, the “if converted value” of the 2026 Notes did not exceed the principal amount of the 2026 Notes. As of December 31, 2020, the “if converted value” of the 2026 Notes exceeded the principal amount by $59.3 million. We allocated the total issuance costs incurred of $18.6 million to the liability and equity components based on their relative values. Issuance costs attributable to the liability component will be amortized to expense over the term of the 2026 Notes, and issuance costs attributable to the equity component were included with the equity component in our shareholders’ equity. As of December 31, 2021 and 2020, the carrying value of the equity component of the 2026 Notes, net of equity issuance costs, was $176.3 million. Exchangeable Senior Notes Due 2024 In 2017, we completed a private placement of $575.0 million principal amount of 2024 Notes. We used the net proceeds from this offering to repay $500.0 million in outstanding loans under the revolving credit facility and to pay related fees and expenses. We used the remainder of the net proceeds for general corporate purposes. Interest on the 2024 Notes is payable semi-annually in cash in arrears on February 15 and August 15 of each year, beginning on February 15, 2018, at a rate of 1.50% per year. In certain circumstances, we may be required to pay additional amounts as a result of any applicable tax withholding or deductions required in respect of payments on the 2024 Notes. The 2024 Notes mature on August 15, 2024, unless earlier exchanged, repurchased or redeemed. The holders of the 2024 Notes have the ability to require us to repurchase all or a portion of their 2024 Notes for cash in the event we undergo certain fundamental changes, such as specified change of control transactions, our liquidation or dissolution or the delisting of our ordinary shares from The Nasdaq Global Select Market. Prior to August 15, 2024, we may redeem the 2024 Notes, in whole but not in part, subject to compliance with certain conditions, if we have, or on the next interest payment date would, become obligated to pay to the holder of any 2024 Notes additional amounts as a result of certain tax-related events. We also may redeem the 2024 Notes on or after August 20, 2021, in whole or in part, if the last reported sale price per ordinary share has been at least 130% of the exchange price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide the notice of redemption. The 2024 Notes are exchangeable at an initial exchange rate of 4.5659 ordinary shares per $1,000 principal amount of 2024 Notes, which is equivalent to an initial exchange price of approximately $219.02 per ordinary share. Upon exchange, the 2024 Notes may be settled in cash, ordinary shares or a combination of cash and ordinary shares, at our election. Our intent and policy is to settle the principal amount of the 2024 Notes in cash upon exchange. The exchange rate will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain make-whole fundamental changes occurring prior to the maturity date of the 2024 Notes or upon our issuance of a notice of redemption, we will in certain circumstances increase the exchange rate for holders of the 2024 Notes who elect to exchange their 2024 Notes in connection with that make-whole fundamental change or during the related redemption period. Prior to May 15, 2024, the 2024 Notes will be exchangeable only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. In accounting for the issuance of the 2024 Notes, we separated the 2024 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the estimated fair value of a similar liability that does not have an associated exchange feature. The carrying amount of the equity component representing the exchange option was determined by deducting the fair value of the liability component from the face value of the 2024 Notes as a whole. The excess of the principal amount of the liability component over its carrying amount will be amortized to interest expense over the expected life of the 2024 Notes using the effective interest method with an effective interest rate of 6.8% per annum. We have determined the expected life of the 2024 Notes to be equal to the original seven We allocated the total issuance costs incurred of $15.6 million to the liability and equity components based on their relative values. Issuance costs attributable to the liability component will be amortized to expense over the term of the 2024 Notes, and issuance costs attributable to the equity component were included with the equity component in our shareholders’ equity. As of December 31, 2021 and 2020, the carrying value of the equity component of the 2024 Notes, net of equity issuance costs, was $149.8 million. Exchangeable Senior Notes Due 2021 In 2014, we completed a private placement of the 2021 Notes with a maturity date of August 15, 2021. Interest on the 2021 Notes was payable semi-annually in cash in arrears on February 15 and August 15 of each year, beginning on February 15, 2015, at a rate of 1.875% per year. The exchange rate was 5.0057 ordinary shares per $1,000 principal amount of 2021 Notes, which was equivalent to an exchange price of approximately $199.77 per ordinary share. In accounting for the issuance of the 2021 Notes, we separated the 2021 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the estimated fair value of a similar liability that does not have an associated exchange feature. The carrying amount of the equity component representing the exchange option was determined by deducting the fair value of the liability component from the face value of the 2021 Notes as a whole. The excess of the principal amount of the liability component over its carrying amount was amortized to interest expense over the expected life of the 2021 Notes using the effective interest method with an effective interest rate of 6.4% per annum. We allocated the total issuance costs incurred of $16.1 million to the liability and equity components based on their relative values. Issuance costs attributable to the liability component were amortized to interest expense, net over the term of the 2021 Notes, and issuance costs attributable to the equity component were included with the equity component in our shareholders’ equity. In 2020 we repurchased $356.2 million aggregate principal amount of the 2021 Notes and we repurchased the remaining $218.8 million aggregate principal amount on maturity in August 2021. The Exchangeable Senior Notes were issued by Jazz Investments I Limited, or the Issuer, a 100%-owned finance subsidiary of Jazz Pharmaceuticals plc. The Exchangeable Senior Notes are senior unsecured obligations of the Issuer and are fully and unconditionally guaranteed on a senior unsecured basis by Jazz Pharmaceuticals plc. No subsidiary of Jazz Pharmaceuticals plc guaranteed the Exchangeable Senior Notes. Subject to certain local law restrictions on payment of dividends, among other things, and potential negative tax consequences, we are not aware of any significant restrictions on the ability of Jazz Pharmaceuticals plc to obtain funds from the Issuer or Jazz Pharmaceuticals plc’s other subsidiaries by dividend or loan, or any legal or economic restrictions on the ability of the Issuer or Jazz Pharmaceuticals plc’s other subsidiaries to transfer funds to Jazz Pharmaceuticals plc in the form of cash dividends, loans or advances. There is no assurance that in the future such restrictions will not be adopted. For the years ended December 31, 2021, 2020 and 2019, we recognized $89.9 million, $87.6 million and $62.5 million, respectively, in interest expense, net related to the contractual coupon rate and the amortization of the debt discount and debt issuance costs on the Exchangeable Senior Notes. Scheduled maturities with respect to our long-term debt are as follows (in thousands): Year Ending December 31, Scheduled Long-Term Debt Maturities 2022 $ 31,000 2023 31,000 2024 606,000 2025 31,000 2026 1,031,000 Thereafter 4,665,458 Total $ 6,395,458 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases We have noncancelable leases for our buildings and growing facilities and we are obligated to make payments under noncancelable operating leases for automobiles used by our sales force. The components of the lease expense for the years ended December 31, 2021, 2020 and 2019 were as follows (in thousands): Year Ended December 31, Lease Cost 2021 2020 2019 Operating lease cost $ 23,869 $ 21,755 $ 23,087 Short-term lease cost 5,540 4,079 2,465 Variable lease cost 10 3 5 Sublease income — (224) (634) Finance Lease Cost Amortization of leased asset 324 — — Interest on lease liabilities 295 — — Net lease cost $ 30,038 $ 25,613 $ 24,923 Supplemental balance sheet information related to operating and finance leases was as follows (in thousands): December 31, Leases Classification 2021 2020 Assets Operating lease assets Operating lease assets $ 86,586 $ 129,169 Finance lease assets Property, plant and equipment 5,738 — Total lease assets $ 92,324 $ 129,169 Liabilities Current Operating lease liabilities Accrued liabilities $ 15,357 $ 14,457 Finance lease liabilities Accrued liabilities 406 — Non-current Operating lease liabilities Operating lease liabilities, less current portion 87,200 140,035 Finance lease liabilities Other non-current liabilities 6,269 — Total lease liabilities $ 109,232 $ 154,492 December 31, Lease Term and Discount Rate 2021 2020 Weighted-average remaining lease term (years) Operating leases 6.5 8.7 Finance leases 12.9 — Weighted-average discount rate Operating leases 5.2 % 5.3 % Finance leases 7.4 % — % Supplemental cash flow information related to operating and finance leases was as follows (in thousands): Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 24,847 $ 21,678 $ 17,066 Operating cash outflows from finance leases 625 — — Financing cash outflows from finance leases 324 — — Non-cash operating activities: Operating lease assets obtained in exchange for new operating lease liabilities (1) $ 8,188 $ 1,763 $ 153,448 Finance lease assets obtained in exchange for new finance lease liabilities 650 — — De-recognition of operating lease asset on lease assignment 56,968 — — De-recognition of operating lease liability on lease assignment 68,064 — — _____________________________ (1) Includes the balances recognized on January 1, 2019 on adoption of ASU No. 2016-02. Maturities of operating and finance lease liabilities were as follows (in thousands): Year Ending December 31, Operating Leases Finance Leases 2022 $ 20,373 $ 876 2023 19,426 872 2024 20,996 872 2025 14,565 872 2026 12,741 872 Thereafter 34,560 6,135 Total lease payments $ 122,661 $ 10,499 Less imputed interest (20,104) (3,824) Present value of lease liabilities $ 102,557 $ 6,675 |
Leases | Leases We have noncancelable leases for our buildings and growing facilities and we are obligated to make payments under noncancelable operating leases for automobiles used by our sales force. The components of the lease expense for the years ended December 31, 2021, 2020 and 2019 were as follows (in thousands): Year Ended December 31, Lease Cost 2021 2020 2019 Operating lease cost $ 23,869 $ 21,755 $ 23,087 Short-term lease cost 5,540 4,079 2,465 Variable lease cost 10 3 5 Sublease income — (224) (634) Finance Lease Cost Amortization of leased asset 324 — — Interest on lease liabilities 295 — — Net lease cost $ 30,038 $ 25,613 $ 24,923 Supplemental balance sheet information related to operating and finance leases was as follows (in thousands): December 31, Leases Classification 2021 2020 Assets Operating lease assets Operating lease assets $ 86,586 $ 129,169 Finance lease assets Property, plant and equipment 5,738 — Total lease assets $ 92,324 $ 129,169 Liabilities Current Operating lease liabilities Accrued liabilities $ 15,357 $ 14,457 Finance lease liabilities Accrued liabilities 406 — Non-current Operating lease liabilities Operating lease liabilities, less current portion 87,200 140,035 Finance lease liabilities Other non-current liabilities 6,269 — Total lease liabilities $ 109,232 $ 154,492 December 31, Lease Term and Discount Rate 2021 2020 Weighted-average remaining lease term (years) Operating leases 6.5 8.7 Finance leases 12.9 — Weighted-average discount rate Operating leases 5.2 % 5.3 % Finance leases 7.4 % — % Supplemental cash flow information related to operating and finance leases was as follows (in thousands): Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 24,847 $ 21,678 $ 17,066 Operating cash outflows from finance leases 625 — — Financing cash outflows from finance leases 324 — — Non-cash operating activities: Operating lease assets obtained in exchange for new operating lease liabilities (1) $ 8,188 $ 1,763 $ 153,448 Finance lease assets obtained in exchange for new finance lease liabilities 650 — — De-recognition of operating lease asset on lease assignment 56,968 — — De-recognition of operating lease liability on lease assignment 68,064 — — _____________________________ (1) Includes the balances recognized on January 1, 2019 on adoption of ASU No. 2016-02. Maturities of operating and finance lease liabilities were as follows (in thousands): Year Ending December 31, Operating Leases Finance Leases 2022 $ 20,373 $ 876 2023 19,426 872 2024 20,996 872 2025 14,565 872 2026 12,741 872 Thereafter 34,560 6,135 Total lease payments $ 122,661 $ 10,499 Less imputed interest (20,104) (3,824) Present value of lease liabilities $ 102,557 $ 6,675 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Indemnification In the normal course of business, we enter into agreements that contain a variety of representations and warranties and provide for general indemnification, including indemnification associated with product liability or infringement of intellectual property rights. Our exposure under these agreements is unknown because it involves future claims that may be made but have not yet been made against us. To date, we have not paid any claims or been required to defend any action related to these indemnification obligations. We have agreed to indemnify our executive officers, directors and certain other employees for losses and costs incurred in connection with certain events or occurrences, including advancing money to cover certain costs, subject to certain limitations. The maximum potential amount of future payments we could be required to make under the indemnification obligations is unlimited; however, we maintain insurance policies that may limit our exposure and may enable us to recover a portion of any future amounts paid. Assuming the applicability of coverage, the willingness of the insurer to assume coverage, and subject to certain retention, loss limits and other policy provisions, we believe the fair value of these indemnification obligations is not significant. Accordingly, we did not recognize any liabilities relating to these obligations as of December 31, 2021 and December 31, 2020. No assurances can be given that the covering insurers will not attempt to dispute the validity, applicability, or amount of coverage without expensive litigation against these insurers, in which case we may incur substantial liabilities as a result of these indemnification obligations. Other Commitments As of December 31, 2021, we had $73.2 million of noncancelable purchase commitments due within one year, primarily related to agreements with third party manufacturers. Legal Proceedings We are involved in legal proceedings, including the following matters: Xyrem Class Action From June 2020 to October 2021, a number of lawsuits were filed on behalf of purported direct and indirect Xyrem purchasers, alleging that the patent litigation settlement agreements we entered with generic drug manufacturers who had filed Abbreviated New Drug Applications, or ANDA, violate state and federal antitrust and consumer protection laws, as follows: On June 17, 2020, a class action lawsuit was filed in the United States District Court for the Northern District of Illinois by Blue Cross and Blue Shield Association, or BCBS, against Jazz Pharmaceuticals plc, Jazz Pharmaceuticals, Inc., and Jazz Pharmaceuticals Ireland Limited, or, collectively, the Company Defendants (hereinafter referred to as the BCBS Lawsuit). The BCBS Lawsuit also names Roxane Laboratories, Inc., Hikma Pharmaceuticals USA Inc., Eurohealth (USA), Inc., Hikma Pharmaceuticals plc, Amneal Pharmaceuticals LLC, Par Pharmaceuticals, Inc., Lupin Ltd., Lupin Pharmaceuticals Inc., and Lupin Inc., or, collectively, the BCBS Defendants. On June 18 and June 23, 2020, respectively, two additional class action lawsuits were filed against the Company Defendants and the BCBS Defendants: one by the New York State Teamsters Council Health and Hospital Fund in the United States District Court for the Northern District of California, and another by the Government Employees Health Association Inc. in the United States District Court for the Northern District of Illinois (hereinafter referred to as the GEHA Lawsuit). On June 18, 2020, a class action lawsuit was filed in the United States District Court for the Northern District of California by the City of Providence, Rhode Island, on behalf of itself and all others similarly situated, against Jazz Pharmaceuticals plc, and Roxane Laboratories, Inc., West-Ward Pharmaceuticals Corp., Hikma Labs Inc., Hikma Pharmaceuticals USA Inc., and Hikma Pharmaceuticals plc, or, collectively, the City of Providence Defendants. On June 30, 2020, a class action lawsuit was filed in the United States District Court for the Northern District of Illinois by UFCW Local 1500 Welfare Fund on behalf of itself and all others similarly situated, against Jazz Pharmaceuticals Ireland Ltd., Jazz Pharmaceuticals, Inc., Roxane Laboratories, Inc., Hikma Pharmaceuticals plc, Eurohealth (USA), Inc. and West-Ward Pharmaceuticals Corp., or collectively the UFCW Defendants (hereinafter referred to as the UFCW Lawsuit). On July 13, 2020, the plaintiffs in the BCBS Lawsuit and the GEHA Lawsuit dismissed their complaints in the United States District Court for the Northern District of Illinois and refiled their respective lawsuits in the United States District Court for the Northern District of California. On July 14, 2020, the plaintiffs in the UFCW Lawsuit dismissed their complaint in the United States District Court for the Northern District of Illinois and on July 15, 2020, refiled their lawsuit in the United States District Court for the Northern District of California. On July 31, 2020, a class action lawsuit was filed in the United States District Court for the Southern District of New York by the A.F. of L.-A.G.C. Building Trades Welfare Plan on behalf of itself and all others similarly situated, against Jazz Pharmaceuticals plc (hereinafter referred to as the AFL Plan Lawsuit). The AFL Plan Lawsuit also names Roxane Laboratories Inc., West-Ward Pharmaceuticals Corp., Hikma Labs Inc., Hikma Pharmaceuticals plc, Amneal Pharmaceuticals LLC, Par Pharmaceuticals Inc., Lupin Ltd., Lupin Pharmaceuticals, Inc., and Lupin Inc. On August 14, 2020, an additional class action lawsuit was filed in the United States District Court for the Southern District of New York by the Self-Insured Schools of California on behalf of itself and all others similarly situated, against the Company Defendants, as well as Hikma Pharmaceuticals plc, Eurohealth (USA) Inc., Hikma Pharmaceuticals USA, Inc., West-Ward Pharmaceuticals Corp., Roxane Laboratories, Inc., Amneal Pharmaceuticals LLC, Endo International, plc, Endo Pharmaceuticals LLC, Par Pharmaceutical, Inc., Lupin Ltd., Lupin Pharmaceuticals Inc., Lupin Inc., Sun Pharmaceutical Industries Ltd., Sun Pharmaceutical Holdings USA, Inc., Sun Pharmaceutical Industries, Inc., Ranbaxy Laboratories Ltd., Teva Pharmaceutical Industries Ltd., Watson Laboratories, Inc., Wockhardt Ltd., Morton Grove Pharmaceuticals, Inc., Wockhardt USA LLC, Mallinckrodt plc, and Mallinckrodt LLC (hereinafter referred to as the Self-Insured Schools Lawsuit). On September 16, 2020, an additional class action lawsuit was filed in the United States District Court for the Northern District of California, by Ruth Hollman on behalf of herself and all others similarly situated, against the same defendants named in the Self-Insured Schools Lawsuit. In December 2020, the above cases were centralized and transferred to the United States District Court for the Northern District of California, where the multidistrict litigation will proceed for the purpose of discovery and pre-trial proceedings. On March 18, 2021, United Healthcare Services, Inc. filed a lawsuit in the United States District Court for the District of Minnesota against the Company Defendants, Hikma Pharmaceuticals plc, Roxane Laboratories, Inc., Hikma Pharmaceuticals USA Inc., Eurohealth (USA) Inc., Amneal Pharmaceuticals LLC, Par Pharmaceutical Inc., Lupin Ltd., and Lupin Pharmaceuticals, Inc., raising similar allegations, or the UHS Lawsuit. On March 24, 2021, the U.S. Judicial Panel on Multidistrict Litigation conditionally transferred the UHS Lawsuit to the United States District Court for the Northern District of California, where it was consolidated for discovery and pre-trial proceedings with the other cases. On August 13, 2021, the United States District Court for the Northern District of California granted in part and denied in part the Company Defendants motion to dismiss the complaints in the cases referenced above. On October 8, 2021, Humana Inc. filed a lawsuit in the United States District Court for the Northern District of California against the Company Defendants, Hikma Pharmaceuticals plc, Hikma Pharmaceuticals USA Inc., Hikma Labs, Inc., Eurohealth (USA), Inc., Amneal Pharmaceuticals LLC, Par Pharmaceutical, Inc., Lupin Ltd., Lupin Pharmaceuticals, Inc., and Lupin Inc, raising similar allegations. On October 8, 2021, Molina Healthcare Inc. filed a lawsuit in the United States District Court for the Northern District of California against the Company Defendants, Hikma Pharmaceuticals plc, Hikma Pharmaceuticals USA Inc., Hikma Labs, Inc., Eurohealth (USA), Inc., Amneal Pharmaceuticals LLC, Par Pharmaceutical, Inc., Lupin Ltd., Lupin Pharmaceuticals, Inc., and Lupin Inc, raising similar allegations. On February 17, 2022, Health Care Service Corporation filed a lawsuit in the United States District Court for the Northern District of California against the Company Defendants, Hikma Pharmaceuticals plc, Hikma Pharmaceuticals USA Inc., Hikma Labs, Inc., Eurohealth (USA), Inc., Amneal Pharmaceuticals LLC, Par Pharmaceutical, Inc., Lupin Ltd., Lupin Pharmaceuticals, Inc., and Lupin Inc, raising similar allegations. The parties have submitted a proposed case schedule through briefing on class certification. A trial date will be set following a ruling on class certification. The plaintiffs in certain of these lawsuits are seeking to represent a class of direct purchasers of Xyrem, and the plaintiffs in the remaining lawsuits are seeking to represent a class of indirect purchasers of Xyrem. Each of the lawsuits generally alleges violations of U.S. federal and state antitrust, consumer protection, and unfair competition laws in connection with the Company Defendants’ conduct related to Xyrem, including actions leading up to, and entering into, patent litigation settlement agreements with each of the other named defendants. Each of the lawsuits seeks monetary damages, exemplary damages, equitable relief against the alleged unlawful conduct, including disgorgement of profits and restitution, and injunctive relief. It is possible that additional lawsuits will be filed against the Company Defendants making similar or related allegations. If the plaintiffs were to be successful in their claims, they may be entitled to injunctive relief or we may be required to pay significant monetary damages, which could have a material adverse effect on our business, financial condition, results of operations and growth prospects. GW Acquisition Litigation On March 15, 2021, GW filed a definitive proxy statement, or Proxy Statement, with the Securities and Exchange Commission in connection with the GW Acquisition. Since the filing of the Proxy Statement, Jazz Pharmaceuticals plc has been named in two lawsuits filed in state and federal courts in New York on March 17, 2021 by purported GW shareholders in connection with the GW Acquisition. The first was filed in the United States District Court for the Southern District of New York by James Farrell (hereinafter referred to as the Farrell Lawsuit) and an additional suit was filed in New York state court by Brian Levy (hereinafter referred to as the Levy Lawsuit). In addition to Jazz Pharmaceuticals plc, Jazz Pharmaceuticals U.K. Holdings Ltd., GW Pharmaceuticals plc, and the GW Board of Directors are named as defendants in the Farrell Lawsuit. In the Levy Lawsuit, GW Pharmaceuticals plc, the GW Board of Directors, Centerview Partners LLC, and Goldman Sachs & Co. LLC are named as defendants. In addition to the Farrell Lawsuit and the Levy Lawsuit, ten additional suits have been filed in New York, California, and Pennsylvania federal courts by purported GW shareholders against GW Pharmaceuticals plc and its Board of Directors, but which do not name any Jazz Pharmaceuticals parties (hereinafter referred to as the GW Litigation, and collectively with the Farrell Lawsuit and the Levy Lawsuit, as the Transaction Litigation). In the Transaction Litigation, the plaintiffs allege that the Proxy Statement omitted material information and contained misrepresentations, and that the individual members of the GW Board of Directors breached their fiduciary duties, in violation of state and federal laws, including the Securities Exchange Act of 1934. The plaintiffs in the Transaction Litigation sought various remedies, including injunctive relief to prevent the consummation of the GW Acquisition unless certain allegedly material information was disclosed, or in the alternative, rescission or damages. On April 14, 2021, GW filed a Form 8-K containing supplemental disclosures related to the GW Acquisition. Pursuant to a memorandum of understanding between the parties, the Levy Lawsuit was dismissed on April 14, 2021. On May 27, 2021, a class action lawsuit was filed in the United States District Court for the Southern District of California by plaintiff Kurt Ziegler against GW and its former Directors asserting claims under Sections 14(a) and 20(a) of the Securities Exchange Act of 1934, referred to as the Ziegler Lawsuit. The allegations in the Ziegler Lawsuit are similar to those in the previously dismissed Transaction Litigation. Patent Infringement Litigation Avadel Patent Litigation On May 13, 2021, we filed a patent infringement suit against Avadel Pharmaceuticals plc, or Avadel, and several of its corporate affiliates in the United States District Court for the District of Delaware. The suit alleges that Avadel’s product candidate FT-218 will infringe five of our patents related to controlled release formulations of oxybate and the safe and effective distribution of oxybate. The suit seeks an injunction to prevent Avadel from launching a product that would infringe these patents, and an award of monetary damages if Avadel does launch an infringing product. Avadel filed an answer to the complaint and counterclaims asserting that the patents are invalid or not enforceable, and that its product, if approved, will not infringe our patents. On August 4, 2021, we filed an additional patent infringement suit against Avadel in the United States District Court for the District of Delaware. The second suit alleges that Avadel’s product candidate FT-218 will infringe a newly-issued patent related to sustained-release formulations of oxybate. The suit seeks an injunction to prevent Avadel from launching a product that would infringe this patent, and an award of monetary damages if Avadel does launch an infringing product. Avadel filed an answer to the complaint and counterclaims asserting that the patents are invalid or not enforceable, and that its product, if approved, will not infringe our patent s. On November 10, 2021, we filed an additional patent infringement suit against Avadel in the United States District Court for the District of Delaware. The third suit alleges that Avadel’s product candidate FT-218 will infringe a newly-issued patent related to sustained-release formulations of oxybate. The suit seeks an injunction to prevent Avadel from launching a product that would infringe this patent, and an award of monetary damages if Avadel does launch an infringing product. Avadel filed an answer to the complaint and counterclaims asserting that the patents are invalid or not enforceable, and that its product, if approved, will not infringe our patents. Canopy Patent Litigation In December 2020, Canopy Growth Corporation filed a complaint against our subsidiary, GW, in the United States District Court for the Western District of Texas, alleging infringement of its patent, U.S. Patent No. 10,870,632. Canopy claims that our extraction process used to produce material used to produce Epidiolex infringes its patent. Canopy seeks a judgment that we have infringed their patent and an award of monetary damages. In July 2021, we filed an answer to the amended complaint, and counterclaims seeking judgment that the ‘632 patent is invalid and that we have not infringed the patent. In October 2021, the United States District Court for the Western District of Texas held a claim construction hearing regarding the disputed term of the ‘632 patent. In November 2021, the Court issued a claim construction order, which the Company views as generally favorable. On February 23, 2022, the parties filed a Joint Motion and Stipulation to Enter Final Judgment in favor of GW. Pursuant to the stipulation, Canopy has the right to appeal the Court’s ruling on the disputed term. On February 25, 2022, the Court granted the parties’ motion and entered final judgment in favor of GW. Lupin Patent Litigation In June 2021, we received notice from Lupin Inc., or Lupin, that it has filed with FDA an ANDA, for a generic version of Xywav. The notice from Lupin included a “paragraph IV certification” with respect to ten of our patents listed in FDA’s Orange Book for Xywav on the date of our receipt of the notice. The asserted patents relate generally to the composition and method of use of Xywav, and methods of treatment when Xywav is administered concomitantly with certain other medications. A paragraph IV certification is a certification by a generic applicant that alleges that patents covering the branded product are invalid, unenforceable, and/or will not be infringed by the manufacture, use or sale of the generic product. In July 2021, we filed a patent infringement suit against Lupin in the United States District Court for the District of New Jersey. The complaint alleges that by filing its ANDA, Lupin has infringed ten of our Orange Book listed patents. We are seeking a permanent injunction to prevent Lupin from introducing a generic version of Xywav that would infringe our patents. As a result of this lawsuit, we expect that a stay of approval of up to 30 months will be imposed by FDA on Lupin's ANDA. In June 2021, FDA recognized seven years of Orphan Drug Exclusivity for Xywav through July 21, 2027. On October 4, 2021, Lupin filed an answer to the complaint and counterclaims asserting that the patents are invalid or not enforceable, and that its product, if approved, will not infringe our patents. Otsuka Patent Litigation In October 2021, Otsuka Pharmaceutical Co., Ltd., or Otsuka, filed claims against GW Pharma Limited and GW Pharmaceuticals Limited, or collectively, the GW Parties, in the English High Court, Patents Court. Otsuka alleges that under a now-expired Research Collaboration and License Agreement between Otsuka and the GW Parties, Otsuka and the GW Parties jointly own certain patents and other intellectual property, that Epidiolex is covered by that intellectual property, and that Otsuka is therefore due a royalty on net sales of Epidiolex. In December 2021, we filed an application for an order declaring that the English High Court, Patents Court has no jurisdiction over the dispute with Otsuka, or should not exercise its jurisdiction. In January 2022, we filed a lawsuit against Otsuka in the Supreme Court of the State of New York, County of New York, seeking a declaration that Otsuka is not entitled to any royalties on sales of Epidiolex under the Research Collaboration and License Agreement. The Company vigorously enforces its intellectual property rights, but cannot predict the outcome of these matters. From time to time we are involved in legal proceedings arising in the ordinary course of business. We believe there is no other litigation pending that could have, individually or in the aggregate, a material adverse effect on our results of operations or financial condition. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Share Repurchase Program In November 2016, our board of directors authorized a share repurchase program and as of December 31, 2021 had authorized the repurchase of up to $1.5 billion, exclusive of any brokerage commissions. Under this program, which has no expiration date, we may repurchase ordinary shares from time to time on the open market. The timing and amount of repurchases will depend on a variety of factors, including the price of our ordinary shares, alternative investment opportunities, restrictions under the amended credit agreement, corporate and regulatory requirements and market conditions. The share repurchase program may be modified, suspended or discontinued at any time without prior notice. In 2021, we did not repurchase any of our ordinary shares under the share repurchase program. In 2020, we spent a total of $146.5 million to repurchase 1.2 million of our ordinary shares at an average total purchase price, including brokerage commissions, of $121.98 per share. All ordinary shares repurchased were canceled. As of December 31, 2021, the remaining amount authorized under the share repurchase program was $431.2 million. Authorized But Unissued Ordinary Shares We had reserved the following shares of authorized but unissued ordinary shares (in thousands): December 31, 2021 2020 2011 Equity Incentive Plan 22,195 21,070 2007 Employee Stock Purchase Plan 3,285 2,600 GW Incentive Plans 1,853 — Amended and Restated 2007 Non-Employee Directors Stock Award Plan 807 889 2007 Equity Incentive Plan — 5 Total 28,140 24,564 Dividends |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes net income (loss) and all changes in shareholders’ equity during a period, except for those changes resulting from investments by shareholders or distributions to shareholders. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss as of December 31, 2021 and 2020 were as follows (in thousands): Net Unrealized Foreign Total Balance at December 31, 2020 $ (2,467) $ (131,885) $ (134,352) Other comprehensive income (loss) before reclassifications (389) (268,347) (268,736) Amounts reclassified from accumulated other comprehensive income (loss) 2,728 — 2,728 Other comprehensive income (loss), net 2,339 (268,347) (266,008) Balance at December 31, 2021 $ (128) $ (400,232) $ (400,360) In 2021, other comprehensive loss reflects foreign currency translation adjustments, primarily due to the weakening of the sterling and euro against the U.S. dollar. |
Net Income (Loss) per Ordinary
Net Income (Loss) per Ordinary Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Ordinary Share | Net Income (Loss) per Ordinary ShareBasic net income (loss) per ordinary share is based on the weighted-average number of ordinary shares outstanding. Diluted net income (loss) per ordinary share is based on the weighted-average number of ordinary shares outstanding and potentially dilutive ordinary shares outstanding. Basic and diluted net income (loss) per ordinary share were computed as follows (in thousands, except per share amounts): Year Ended December 31, 2021 2020 2019 Numerator: Net income (loss) $ (329,668) $ 238,616 $ 523,367 Denominator: Weighted-average ordinary shares used in per share calculations - basic 59,694 55,712 56,749 Dilutive effect of employee equity incentive and purchase plans — 805 801 Weighted-average ordinary shares used in per share calculations - diluted 59,694 56,517 57,550 Net income (loss) per ordinary share : Basic $ (5.52) $ 4.28 $ 9.22 Diluted $ (5.52) $ 4.22 $ 9.09 Potentially dilutive ordinary shares from our employee equity incentive and purchase plans and the Exchangeable Senior Notes are determined by applying the treasury stock method to the assumed exercise of share options, the assumed vesting of outstanding restricted stock units, or RSUs and PRSUs, the assumed issuance of ordinary shares under our employee stock purchase plan, or ESPP, and the assumed issuance of ordinary shares upon exchange of the Exchangeable Senior Notes. The average share price of our ordinary shares in 2021 exceeded the effective exchange price per ordinary share of the 2026 Notes. However, the potential ordinary shares issuable upon exchange were excluded from the calculation of diluted net loss per ordinary share because their effect would have been anti-dilutive. The average price of our ordinary shares in 2021 did not exceed the effective exchange price per ordinary share of the 2021 Notes and 2024 Notes. The potential issue of ordinary shares issuable upon exchange of the Exchangeable Senior Notes had no effect on diluted net income per ordinary share for 2020 and 2019 as the average price of our ordinary shares during those periods did not exceed the effective exchange prices per ordinary share of the Exchangeable Senior Notes. The following table represents the weighted-average ordinary shares that were excluded from the computation of diluted net income (loss) per ordinary share for the years presented because including them would have an anti-dilutive effect (in thousands): Year Ended December 31, 2021 2020 2019 Exchangeable Senior Notes 9,725 8,077 5,504 Employee equity incentive and purchase plans 3,927 4,780 5,000 |
Segment and Other Information
Segment and Other Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment and Other Information | Segment and Other Information Our operating segment is reported in a manner consistent with the internal reporting provided to the chief operating decision maker, or CODM. Our CODM has been identified as our chief executive officer. We have determined that we operate in one business segment, which is the identification, development and commercialization of meaningful pharmaceutical products that address unmet medical needs. The following table presents total long-lived assets by location (in thousands): December 31, 2021 2020 Ireland $ 65,478 $ 71,906 United Kingdom 176,778 3,438 United States 76,290 157,282 Italy 16,698 16,008 Other 8,179 8,470 Total long-lived assets (1) $ 343,423 $ 257,104 _________________________ (1) Long-lived assets consist of property, plant and equipment and operating lease assets. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The following table presents a summary of total revenues (in thousands): Year Ended December 31, 2021 2020 2019 Xyrem $ 1,265,830 $ 1,741,758 $ 1,642,525 Xywav 535,297 15,264 — Total Oxybate 1,801,127 1,757,022 1,642,525 Epidiolex/Epidyolex 463,645 — — Sunosi 57,914 28,333 3,714 Sativex 12,707 — — Total Neuroscience 2,335,393 1,785,355 1,646,239 Zepzelca 246,808 90,380 — Rylaze 85,629 — — Vyxeos 134,060 121,105 121,407 Defitelio/defibrotide 197,931 195,842 172,938 Erwinaze/Erwinase 69,382 147,136 177,465 Total Oncology 733,810 554,463 471,810 Other 9,798 6,842 17,552 Product sales, net 3,079,001 2,346,660 2,135,601 Royalties and contract revenues 15,237 16,907 26,160 Total revenues $ 3,094,238 $ 2,363,567 $ 2,161,761 The following table presents a summary of total revenues attributed to geographic sources (in thousands): Year Ended December 31, 2021 2020 2019 United States $ 2,820,242 $ 2,144,541 $ 1,964,161 Europe 230,158 175,208 150,201 All other 43,838 43,818 47,399 Total revenues $ 3,094,238 $ 2,363,567 $ 2,161,761 The following table presents a summary of the percentage of total revenues from customers that represented more than 10% of our total revenues: Year Ended December 31, 2021 2020 2019 ESSDS 60 % 74 % 76 % McKesson 12 % 12 % 14 % Financing and payment Our payment terms vary by the type and location of our customer but payment is generally required in a term ranging from 30 to 45 days. Contract Liabilities - Deferred Revenue The deferred revenue balance as of December 31, 2021 primarily related to deferred upfront fees received from Nippon Shinyaku Co., Ltd., or Nippon Shinyaku, in connection with two license, development and commercialization agreements granting Nippon Shinyaku exclusive rights to develop and commercialize each of Defitelio and Vyxeos in Japan. We recognized contract revenues of $2.8 million in 2021 relating to these upfront payments. The deferred revenue balances are being recognized over an average of four years representing the period we expect to perform our research and developments obligations under each agreement. The following table presents a reconciliation of our beginning and ending balances in contract liabilities from contracts with customers for the year ended December 31, 2021 (in thousands): Contract Liabilities Balance as of December 31, 2020 $ 4,861 Additions 483 Amount recognized within royalties and contract revenues (2,788) Balance as of December 31 2021 $ 2,556 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation GW Incentive Plans On May 5, 2021, Jazz Pharmaceuticals plc acquired the entire issued share capital of GW Pharmaceuticals plc. In connection with the GW Acquisition, we assumed the GW Pharmaceuticals plc 2008 Long-Term Incentive Plan, GW Pharmaceuticals plc 2017 Long-Term Incentive Plan and GW Pharmaceuticals plc 2020 Long-Term Incentive Plan, each as amended from time to time, together referred to as the GW Incentive Plans. The terms of the GW Incentive Plans provide for the grant of stock options, stock appreciation rights, RSUs, other stock awards, and performance awards that may be settled in cash, shares, or other property. Ordinary shares granted to employees in exchange for GW ADS in connection with the GW Acquisition vest ratably over service periods of two years, while all post-acquisition grants vest ratably over service periods of four years, and expire no more than 10 years after the date of grant. As of December 31, 2021, a total of 1,864,475 of our ordinary shares had been authorized for issuance under the GW Incentive Plans. 2011 Equity Incentive Plan On January 18, 2012, the businesses of Jazz Pharmaceuticals, Inc. and Azur Pharma were combined in a merger transaction, or the Azur Merger. In connection with the Azur Merger, Jazz Pharmaceuticals, Inc.’s board of directors adopted the 2011 Equity Incentive Plan, or the 2011 Plan, in October 2011 and its stockholders approved the 2011 Plan at the special meeting of the stockholders held in December 2011 in connection with the Azur Merger. The 2011 Plan became effective immediately before the consummation of the Azur Merger and was assumed and adopted by us upon the consummation of the Azur Merger. The terms of the 2011 Plan provide for the grant of stock options, stock appreciation rights, RSUs, other stock awards, and performance awards that may be settled in cash, shares, or other property. All outstanding grants under the 2011 Plan were granted to employees and vest ratably over service periods of four years and expire no more than 10 years after the date of grant. As of December 31, 2021, a total of 32,065,082 of our ordinary shares had been authorized for issuance under the 2011 Plan. In addition, the share reserve under the 2011 Plan will automatically increase on January 1 of each year through January 1, 2022, by the least of (a) 4.5% of the total number of ordinary shares outstanding on December 31 of the preceding calendar year, (b) 5,000,000 shares, or (c) such lesser number of ordinary shares as determined by our board of directors. On January 1, 2022, the share reserve under the 2011 Plan automatically increased by 2,771,906 ordinary shares pursuant to this provision. 2007 Equity Incentive Plan The 2007 Equity Incentive Plan, or the 2007 Plan, which was initially adopted by the Jazz Pharmaceuticals, Inc. board of directors and approved by the Jazz Pharmaceuticals, Inc. stockholders in connection with its initial public offering, was continued and assumed by us upon consummation of the Azur Merger. The 2007 Plan provided for the grant of stock options, RSUs, stock appreciation rights, performance stock awards and other forms of equity compensation to employees, including officers, non-employee directors and consultants. Prior to the consummation of the Azur Merger, all of the grants under the 2007 Plan were granted to employees and vest ratably over service periods of three one 2007 Employee Stock Purchase Plan In 2007, Jazz Pharmaceuticals, Inc.’s employees became eligible to participate in the ESPP. The ESPP was amended and restated by Jazz Pharmaceuticals, Inc.’s board of directors in October 2011 and approved by its stockholders in December 2011. The amended and restated ESPP became effective immediately prior to the effective time of the Azur Merger and was assumed by us upon the consummation of the Azur Merger. The amended and restated ESPP allows our eligible employee participants (including employees of any of a parent or subsidiary company if our board of directors designates such company as eligible to participate) to purchase our ordinary shares at a discount of 15% through payroll deductions. The ESPP consists of a fixed offering period of 24 months with four purchase periods within each offering period. The number of shares available for issuance under our ESPP during any six-month purchase period is 175,000 shares. As of December 31, 2021, a total of 6,105,282 of our ordinary shares had been authorized for issuance under the ESPP. The share reserve under the ESPP will automatically increase on January 1 of each year through January 1, 2022, by the least of (a) 1.5% of the total number of ordinary shares outstanding on December 31 of the preceding calendar year, (b) 1,000,000 shares, and (c) such lesser number of ordinary shares as determined by our board of directors or a duly-authorized committee thereof. On January 1, 2022, the share reserve under the ESPP automatically increased by 923,968 ordinary shares pursuant to this provision. Amended and Restated 2007 Non-Employee Directors Stock Award Plan The Amended and Restated 2007 Non-Employee Directors Stock Award Plan, or the 2007 Directors Award Plan, which was initially adopted by the Jazz Pharmaceuticals, Inc. board of directors and approved by the Jazz Pharmaceuticals, Inc. stockholders in connection with its initial public offering, was continued and assumed by us upon the consummation of the Azur Merger. Until October 2011, the 2007 Directors Award Plan provided for the automatic grant of stock options to purchase shares of Jazz Pharmaceuticals, Inc.’s common stock to its non-employee directors initially at the time any individual first became a non-employee director, which vest over three years, and then annually over their period of service on its board of directors, which vest over one year. On October 24, 2011, Jazz Pharmaceuticals, Inc.’s board of directors amended the 2007 Directors Award Plan to eliminate all future initial and annual automatic grants so that future automatic grants would not be made that would be subject to the excise tax imposed by Section 4985 of the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code, in connection with the Azur Merger. Accordingly, all future stock option grants under the 2007 Directors Award Plan will be at the discretion of our board of directors. Since the Azur Merger, all of the new grants under the 2007 Directors Award Plan were granted to non-employee directors and vest ratably over service periods of one Amended and Restated Directors Deferred Compensation Plan In May 2007, the Jazz Pharmaceuticals, Inc. board of directors adopted the Directors Deferred Compensation Plan, or the Directors Deferred Plan, which was amended in December 2008 and was then amended and restated in August 2010, and which was continued and assumed by us upon consummation of the Azur Merger. The Directors Deferred Plan allows each non-employee director to elect to defer receipt of all or a portion of his or her annual retainer fees to a future date or dates. Amounts deferred under the Directors Deferred Plan are credited as shares of Jazz Pharmaceuticals, Inc.’s common stock (or our ordinary shares following the Azur Merger) to a phantom stock account, the number of which are based on the amount of the retainer fees deferred divided by the market value of Jazz Pharmaceuticals, Inc.’s common stock (or our ordinary shares following the Azur Merger) on the first trading day of the first open window period following the date the retainer fees are deemed earned. On the 10th business day following the day of separation from the board of directors or the occurrence of a change in control, or as soon thereafter as practical once the non-employee director has provided the necessary information for electronic deposit of the deferred shares, each non-employee director will receive (or commence receiving, depending upon whether the director has elected to receive distributions from his or her phantom stock account in a lump sum or in installments over time) a distribution of his or her phantom stock account, in our ordinary shares (i) reserved under the 2007 Directors Option Plan prior to August 15, 2010 and (ii) from a new reserve of 200,000 shares set up under the Directors Deferred Plan on August 15, 2010. Since the consummation of the Azur Merger we have not permitted non-employee directors to defer any annual retainer fees under the Directors Deferred Plan. On October 31, 2019, our board of directors approved the termination of the Directors Deferred Plan, and all outstanding phantom stock was distributed to each applicable non-employee director on November 2, 2020. We recorded no expense in 2021, 2020 and 2019 related to retainer fees earned and deferred. Share-Based Compensation The table below shows, for market strike price option grants, the weighted-average assumptions used in the Black-Scholes option pricing model and the resulting weighted-average grant date fair value of market strike price option grants granted in each of the past three years: Year Ended December 31, 2021 2020 2019 Grant date fair value $ 51.39 $ 34.68 $ 42.09 Volatility 37 % 33 % 32 % Expected term (years) 4.5 4.6 4.5 Range of risk-free rates 0.4-0.8% 0.2-1.6% 1.3-2.5% Expected dividend yield — % — % — % We rely on a blend of the historical and implied volatilities of our own ordinary shares to determine expected volatility for share option grants. In addition, we use a single volatility estimate for each share option grant. The weighted-average volatility is determined by calculating the weighted average of volatilities for all share options granted in a given year. The expected term of share option grants represents the weighted-average period the awards are expected to remain outstanding and our estimates were based on historical exercise data. The risk-free interest rate assumption was based on zero coupon U.S. Treasury instruments whose term was consistent with the expected term of our share option grants. The expected dividend yield assumption was based on our history and expectation of dividend payouts. Share-based compensation expense related to share options, RSUs, PRSUs and grants under our ESPP was as follows (in thousands): Year Ended December 31, 2021 2020 2019 Selling, general and administrative $ 135,285 $ 84,384 $ 78,697 Research and development 43,758 29,242 25,229 Cost of product sales 9,963 7,372 6,637 Total share-based compensation expense, pre-tax 189,006 120,998 110,563 Income tax benefit from share-based compensation expense (33,958) (12,838) (15,712) Total share-based compensation expense, net of tax $ 155,048 $ 108,160 $ 94,851 We recognized income tax benefits related to share option exercises of $9.3 million, $3.9 million and $5.1 million in 2021, 2020 and 2019, respectively. Share Options The following table summarizes information as of December 31, 2021 and activity during 2021 related to our share option plans: Shares Weighted- Weighted- Aggregate Outstanding at January 1, 2021 5,279 $ 130.51 Options granted 110 164.45 Options exercised (1,041) 114.33 Options forfeited (137) 139.24 Options expired (90) 164.45 Outstanding at December 31, 2021 4,121 $ 134.48 5.6 $ 30,696 Vested and expected to vest at December 31, 2021 4,039 $ 134.56 5.6 $ 30,164 Exercisable at December 31, 2021 3,270 $ 135.06 5.1 $ 26,248 Aggregate intrinsic value shown in the table above is equal to the difference between the exercise price of the underlying share options and the fair value of our ordinary shares for share options that were in the money. The aggregate intrinsic value changes based on the fair market value of our ordinary shares. The aggregate intrinsic value of share options exercised was $51.8 million, $26.4 million and $26.2 million during 2021, 2020 and 2019, respectively. We issued new ordinary shares upon exercise of share options. As of December 31, 2021, total compensation cost not yet recognized related to unvested share options was $29.2 million, which is expected to be recognized over a weighted-average period of 1.8 years. As of December 31, 2021, total compensation cost not yet recognized related to grants under the ESPP was $4.4 million, which is expected to be recognized over a weighted-average period of 1.1 years. Nominal Strike Price Options During the second quarter of 2021, we issued nominal strike price options to replace certain unvested GW awards in connection with the GW Acquisition with a weighted-average grant date fair value of $170.82. The fair value of nominal strike price options was determined on the date of the grant based on the market price of our ordinary shares as of that date. The following table summarizes information as of December 31, 2021 and activity during 2021 related to our nominal strike price options: Shares Weighted- Weighted- Aggregate Outstanding at January 1, 2021 — $ — Options granted 124 0.02 Options exercised (1) 0.02 Options forfeited (7) 0.02 Outstanding at December 31, 2021 116 $ 0.02 7.4 $ 14,803 Vested and expected to vest at December 31, 2021 110 $ 0.02 7.3 $ 13,969 Exercisable at December 31, 2021 22 $ 0.02 0.5 $ 2,846 As of December 31, 2021, total compensation cost not yet recognized related to unvested nominal strike price options was $8.1 million, which is expected to be recognized over a weighted-average period of 1.1 years. Restricted Stock Units In 2021, we granted RSUs covering an equal number of our ordinary shares to employees with a weighted-average grant date fair value of $168.10. The fair value of RSUs is determined on the date of grant based on the market price of our ordinary shares as of that date. The fair value of the RSUs is recognized as an expense ratably over the vesting period of four years. In 2021, 692,000 RSUs were released with 465,000 ordinary shares issued and 227,000 ordinary shares withheld for tax purposes. The total fair value of shares vested was $109.2 million, $53.5 million and $52.0 million during 2021, 2020 and 2019, respectively. As of December 31, 2021, total compensation cost not yet recognized related to unvested RSUs was $238.2 million, which is expected to be recognized over a weighted-average period of 2.6 years. The following table summarizes information as of December 31, 2021 and activity during 2021 related to our RSUs: Number of RSUs (In thousands) Weighted- Weighted- Aggregate Outstanding at January 1, 2021 1,878 $ 125.07 RSUs granted 1,780 168.10 RSUs released (692) 133.40 RSUs forfeited (335) 148.12 Outstanding at December 31, 2021 2,631 $ 149.05 1.4 $ 335,224 Performance-Based Restricted Stock Units In May 2021, the Compensation & Management Development Committee of our board of directors approved awards of PRSU's to certain employees of the Company, subject to vesting on the achievement of certain commercial and pipeline performance criteria to be assessed over a performance period from the date of the grant to December 31, 2023. Following the determination of the Company’s achievement with respect to the performance criteria, the amount of shares awarded will be subject to adjustment based on the application of a relative TSR modifier. The number of shares that may be earned ranges between 0% and 200% of the target number of PRSUs granted based on the degree of achievement of the applicable performance metric and the application of the relative TSR modifier. The table below shows the number of PRSUs granted covering an equal number of our ordinary shares and the weighted-average grant date fair value of PRSUs granted: Number of PRSUs (In thousands) Weighted- Weighted- Aggregate Outstanding at January 1, 2021 — $ — PRSUs granted 224 190.81 PRSUs forfeited (10) 190.81 Outstanding at December 31, 2021 214 $ 190.81 2.0 $ 27,265 As of December 31, 2021, total compensation cost not yet recognized related to unvested PRSUs was $26.4 million, which is expected to be recognized over a weighted-average period of 2.0 years. As the PRSUs granted in May 2021 are subject to a market condition, the grant date fair value for such PRSUs was based on a Monte Carlo simulation model. The Company evaluated the performance targets in the context of its current long-range financial plan and its product candidate development pipeline and recognized compensation expense based on the probable number of awards that will ultimately vest. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We maintain a qualified 401(k) savings plan, in which all U.S. based employees are eligible to participate, provided they meet the requirements of the plan. We match certain employee contributions under the 401(k) savings plan and for the years ended December 31, 2021, 2020 and 2019 we recorded expense of $9.1 million, $6.3 million and $5.0 million, respectively, related to this plan. We also operate a number of defined contribution retirement plans for certain non-U.S. based employees. Expenses related to contributions to such plans for the years ended December 31, 2021, 2020 and 2019 were $11.4 million, $4.2 million and $3.2 million, respectively. The expense for employee benefit plans in 2021 included plans acquired in the GW Acquisition. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income (loss) before income tax expense (benefit) and equity in loss of investees were as follows (in thousands): Year Ended December 31, 2021 2020 2019 Ireland $ 97,557 $ (102,328) $ (6,451) United Kingdom (681,291) 3,836 3,304 United States 221,185 372,910 317,728 Other 249,711 677 139,721 Total $ (112,838) $ 275,095 $ 454,302 The following table sets forth the details of income tax expense (benefit) (in thousands): Year Ended December 31, 2021 2020 2019 Current Ireland $ 25,770 $ 19,437 $ 51,696 United Kingdom (924) 166 — United States 88,850 110,896 109,495 Other 33,222 39,955 2,265 Total current tax expense 146,918 170,454 163,456 Deferred, exclusive of other components below Ireland (5,388) (32,458) (163,626) United Kingdom (111,534) 679 1,353 United States (46,531) (29,117) (41,297) Other (28,604) (74,278) (38,597) Total deferred, exclusive of other components (192,057) (135,174) (242,167) Deferred, change in tax rates United Kingdom 259,873 (1,155) (52) United States 1,377 (371) 203 Other 5 (237) 5,406 Total deferred, change in tax rates 261,255 (1,763) 5,557 Total deferred tax expense (benefit) 69,198 (136,937) (236,610) Total income tax expense (benefit) $ 216,116 $ 33,517 $ (73,154) Our income tax expense of $216.1 million and $33.5 million in 2021 and 2020, respectively, and our income tax benefit of $73.2 million in 2019 related to tax arising on income in Ireland, the U.K., the U.S. and certain other foreign jurisdictions, certain unrecognized tax benefits and various expenses not deductible for income tax purposes. Our income tax expense in 2021 included an expense of $259.9 million arising on the remeasurement of our U.K. net deferred tax liability, which arose primarily in relation to the GW Acquisition, due to a change in the statutory tax rate in the U.K. following enactment of the U.K. Finance Act 2021. Our income tax benefit in 2019 included a discrete tax benefit of $112.3 million resulting from an intra-entity intellectual property asset transfer. The effective tax rates for 2021, 2020 and 2019 were (191.5)% , 12.2% and (16.1)%, respectively. The effective tax rate for 2021 was lower than the Irish statutory rate of 12.5% primarily due to the impact of the remeasurement of our U.K. net deferred tax liability due to the change in the statutory tax rate in the U.K. The effective tax rate for 2020 was lower than the Irish statutory rate of 12.5% primarily due to the impact of originating tax credits and deductions on subsidiary equity, partially offset by income taxable at a rate higher than the Irish statutory rate, the disallowance of certain interest deductions and a provision for a proposed settlement reached with the French taxing authorities. The effective tax rate for 2019 was lower than the Irish statutory rate of 12.5% primarily due to the impact of the intra-entity intellectual property asset transfer. The decrease in the effective tax rate in 2021 compared to 2020 was primarily due to the impact of the U.K. statutory rate change. Excluding this impact, the increase in the benefit for income taxes in 2021 compared to 2020 resulted primarily from the mix of pre-tax income and losses incurred across tax jurisdictions, deductions on subsidiary equity and the impacts recognized in 2020 of the disallowance of certain interest deductions and a provision for a proposed settlement reached with the French taxing authorities. The increase in the effective tax rate in 2020 compared to 2019 was primarily due to the impact of the intra-entity intellectual property asset transfer. Excluding this effect, the increase in the effective tax rate for 2020 compared to 2019 was primarily due to the benefit recognized in 2019 from the application of the Italian patent box incentive regime 2015 through 2019 and the impacts recognized in 2020 of the disallowance of certain interest deductions and a provision for a proposed settlement reached with the French taxing authorities. The reconciliation between the statutory income tax rate applied to income before the income tax expense (benefit) and equity in loss of investees and our effective income tax rate was as follows (in thousands): Year Ended December 31, 2021 2020 2019 Income tax expense/(benefit) at the statutory income tax rate $ (14,105) $ 34,387 $ 56,788 Change in tax rate 261,663 (1,836) 6,923 Deduction on subsidiary equity (116,438) (25,740) (23,450) Change in valuation allowance 81,280 6,074 14,823 Research and other tax credits (31,069) (30,836) (39,776) Non-deductible acquisition-related costs 20,929 — 11,738 Non-deductible compensation 19,914 8,604 8,321 Financing costs 14,418 7,132 (7,615) Change in unrecognized tax benefits (6,436) 16,309 499 Tax deficiencies/(excess tax benefits) from share-based compensation (5,555) 5,274 537 Foreign income tax rate differential (4,343) 16,126 39,695 Foreign derived intangible income benefit (3,416) — — Change in estimates (2,653) (3,604) 1,156 Intra-entity transfer of intellectual property assets — — (112,274) Patent box incentive benefit — — (31,642) Other 1,927 1,627 1,123 Reported income tax expense/(benefit) $ 216,116 $ 33,517 $ (73,154) Significant components of our net deferred tax assets/(liabilities) were as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Tax credit carryforwards $ 284,155 $ 258,296 Operating loss carryforwards 265,156 68,860 Intangible assets 189,959 173,918 Accrued liabilities 84,509 62,561 Deduction on subsidiary equity carryforwards 78,514 13,201 Indirect effects of unrecognized tax benefits 46,876 48,743 Share-based compensation 37,289 26,090 Lease liabilities 15,865 31,787 Other 65,224 69,289 Total deferred tax assets 1,067,547 752,745 Valuation allowance (154,255) (77,342) Deferred tax assets, net of valuation allowance 913,292 675,403 Deferred tax liabilities: Intangible assets (1,652,297) (448,310) Inventory (181,742) — Operating lease assets (12,657) (26,316) Other (56,034) (76,258) Total deferred tax liabilities (1,902,730) (550,884) Net of deferred tax assets and (liabilities) $ (989,438) $ 124,519 The net change in valuation allowance was an increase of $76.9 million, $11.0 million and $5.1 million in 2021, 2020 and 2019, respectively. The following table summarizes the presentation of deferred tax assets and liabilities (in thousands): December 31, 2021 2020 Deferred tax assets $ 311,103 $ 254,916 Deferred tax liabilities (1,300,541) (130,397) Net of deferred tax assets and (liabilities) $ (989,438) $ 124,519 As of December 31, 2021, we had net operating losses, or NOL, carryforwards and tax credit carryforwards for U.S. federal income tax purposes of approximately $81.6 million and $216.5 million, respectively, available to reduce future income subject to income taxes. The U.S. federal NOL carryforwards will expire, if not utilized, in the tax years 2022 to 2036, and the U.S. federal tax credits will expire, if not utilized, in the tax years 2022 to 2041. In addition, we had approximately $44.3 million of NOL carryforwards and $8.0 million of tax credit carryforwards as of December 31, 2021 available to reduce future taxable income for U.S. state income tax purposes. The U.S. state NOL carryforwards will expire, if not utilized, in the tax years 2022 to 2040. As of December 31, 2021, there were NOL and other carryforwards for income tax purposes of approximately $864.9 million, $224.3 million, $133.5 million and $45.7 million available to reduce future income subject to income taxes in the United Kingdom, Malta, Ireland and Luxembourg respectively. The NOLs and other carryforwards generated in the United Kingdom, Malta, Ireland and Luxembourg have no expiration date. We also had foreign tax credit carryforwards in Ireland, as of December 31, 2021, of $58.8 million, which may only be utilized against certain sources of income. The foreign tax credit carryforwards have no expiration date. Utilization of certain of our NOL and tax credit carryforwards in the U.S. is subject to an annual limitation due to the ownership change limitations provided by Sections 382 and 383 of the Internal Revenue Code and similar state provisions. Such an annual limitation may result in the expiration of certain NOLs and tax credits before future utilization. In addition, as a result of the Azur Merger, until 2022 we are subject to certain limitations under the Internal Revenue Code in relation to the utilization of U.S. NOLs to offset U.S. taxable income resulting from certain transactions. Valuation allowances require an assessment of both positive and negative evidence when determining whether it is more likely than not that deferred tax assets are recoverable. Such assessment is required by tax paying component. Our valuation allowance was $154.3 million and $77.3 million as of December 31, 2021 and 2020, respectively, for certain Irish, U.S. (federal and state) and foreign deferred tax assets which we maintain until sufficient positive evidence exists to support reversal. During 2021, as part of the overall change in valuation allowance, we recognized a net income tax expense of $81.3 million relating primarily to the creation of a valuation allowance against certain deferred tax assets primarily associated with temporary differences related to foreign subsidiaries and foreign tax credit carryforwards. During 2020, as part of the overall change in valuation allowance, we recognized a net income tax expense of $6.2 million relating primarily to the creation of a valuation allowance against certain deferred tax assets primarily associated with temporary differences related to foreign subsidiaries. During 2019, as part of the overall change in valuation allowance, we recognized a net income tax expense of $6.3 million relating primarily to the creation of a valuation allowance of $15.7 million against certain deferred tax assets primarily associated with foreign tax credits and temporary differences related to foreign subsidiaries, partially offset by the net release of valuation allowances against certain deferred tax assets primarily associated with NOLs. We periodically evaluate the likelihood of the realization of deferred tax assets and will adjust such amounts in light of changing facts and circumstances including, but not limited to, future projections of taxable income, tax legislation, rulings by relevant taxing authorities, the progress of tax examinations and the regulatory approval of products currently under development. Realization of the deferred tax assets is dependent on future taxable income. No provision has been made for income tax on undistributed earnings of the Company’s foreign subsidiaries where such earnings are considered indefinitely reinvested in the foreign operations. Temporary differences related to such earnings totaled approximately $2.3 billion as of December 31, 2021. In the event of the distribution of those earnings in the form of dividends, a sale of the subsidiaries, or certain other transactions, we may be liable for income taxes, subject to an adjustment, if any, for foreign tax credits. The Company estimates that it would incur additional income taxes of up to approximately $113 million on repatriation of these unremitted earnings to Ireland. We only recognize the financial statement effects of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. As a result, we have recorded an unrecognized tax benefit for certain tax benefits which we judge may not be sustained upon examination. A reconciliation of our gross unrecognized tax benefits follows (in thousands): December 31, 2021 2020 2019 Balance at the beginning of the year $ 146,557 $ 124,319 $ 118,213 Increases related to current year tax positions 26,675 27,908 27,552 Increases related to prior year tax positions 211 19,712 761 Decreases related to prior year tax positions (182) (213) (91) Increases recognized through purchase accounting 5,916 — — Decreases related to settlements with taxing authorities (14,744) — — Lapse of the applicable statute of limitations (26,566) (25,169) (22,116) Balance at the end of the year $ 137,867 $ 146,557 $ 124,319 The unrecognized tax benefits were included in income taxes payable, other non-current liabilities and deferred tax assets, net, in our consolidated balance sheets. Interest related to our unrecognized tax benefits is recorded in the income tax expense (benefit) in our consolidated statements of income (loss). As of December 31, 2021 and 2020, our accrued interest and penalties related to income taxes was $4.6 million and $11.3 million, respectively. Interest and penalties related to income taxes benefits recognized in the consolidated statements of income (loss) were not significant. Included in the balance of unrecognized tax benefits were potential benefits of $82.0 million and $93.0 million at December 31, 2021 and 2020, respectively, that, if recognized, would affect the effective tax rate on income. We file income tax returns in multiple tax jurisdictions, the most significant of which are Ireland the U.K. and the U.S. (both at the federal level and in various state jurisdictions). For Ireland we are no longer subject to income tax examinations by taxing authorities for the years prior to 2017. For the U.K. we are no longer subject to income tax examinations by taxing authorities for the years prior to 2018. The U.S. jurisdictions generally have statute of limitations three to four years from the later of the return due date or the date when the return was filed. However, in the U.S. (at the federal level and in most states), carryforwards that were generated in 2017 and earlier may still be adjusted upon examination by the taxing authorities. During 2021, certain of our subsidiaries were under examination by the French taxing authorities for the years ended December 31, 2012, 2013, 2015, 2016 and 2017. Due to the subjective nature of the transfer pricing issues involved, the |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts (In thousands) Balance at Additions Other Additions Deductions Balance at For the year ended December 31, 2021 Allowance for doubtful accounts (1) $ 50 $ 127 $ 771 $ (650) $ 298 Allowance for sales discounts (1) 144 13,196 1,243 (12,457) 2,126 Allowance for chargebacks (1) 5,293 91,425 1,322 (86,651) 11,389 Deferred tax asset valuation allowance (2)(3)(4) 77,342 82,820 9 (5,916) 154,255 For the year ended December 31, 2020 Allowance for doubtful accounts (1) $ 50 $ 5 $ — $ (5) $ 50 Allowance for sales discounts (1) 113 1,432 — (1,401) 144 Allowance for chargebacks (1) 1,133 45,550 — (41,390) 5,293 Deferred tax asset valuation allowance (2)(3)(4) 66,307 6,576 4,961 (502) 77,342 For the year ended December 31, 2019 Allowance for doubtful accounts (1) $ 50 $ 9 $ — $ (9) $ 50 Allowance for sales discounts (1) 76 782 — (745) 113 Allowance for chargebacks (1) 408 41,864 — (41,139) 1,133 Deferred tax asset valuation allowance (2)(3) 61,237 20,086 357 (15,373) 66,307 __________________________ (1) Shown as a reduction of accounts receivable. Charges related to sales discounts and chargebacks are reflected as a reduction of revenue. (2) Additions to the deferred tax asset valuation allowance charged to costs and expenses relate to movements on certain Irish, U.S. (federal and state) and other foreign deferred tax assets where we continue to maintain a valuation allowance until sufficient positive evidence exists to support reversal. (3) Other additions to the deferred tax asset valuation allowance relate to currency translation adjustments recorded directly in other comprehensive income and, in 2019, additions resulting from the Cavion asset acquisition. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, and include the accounts of Jazz Pharmaceuticals plc and our subsidiaries and intercompany transactions and balances have been eliminated. Our consolidated financial statements include the results of operations of businesses we have acquired from the date of each acquisition for the applicable reporting periods. The results of operations of the acquired GW business, along with the estimated fair values of the assets acquired and liabilities assumed in the GW Acquisition, have been included in our consolidated financial statements since the closing of the GW Acquisition on May 5, 2021. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures in the consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates. |
Adoption of New Accounting Standards and Recent Accounting Pronouncements | Adoption of New Accounting Standards In December 2019, the Financial Accounting Standards Board, or FASB, issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes by removing certain exceptions to the general principles in the existing guidance for income taxes and making other minor improvements. We adopted this standard on January 1, 2021 and adoption did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity”, which simplifies the accounting for convertible instruments by eliminating the requirement to separate embedded conversion features from the host contract when the conversion features are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. By removing the separation model, a convertible debt instrument will be reported as a single liability instrument with no separate accounting for embedded conversion features. This new standard also removes certain settlement conditions that are required for contracts to qualify for equity classification and eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. The Company adopted ASU 2020-06 on January 1, 2022, on a modified retrospective basis. As a result of adoption, the Company increased its convertible debt liabilities, retained earnings and deferred tax assets on January 1, 2022 by $206.2 million, $127.4 million and $0.1 million, respectively and decreased its additional paid-in capital by $333.5 million. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The new standard is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early adoption permitted. The new guidance is not expected to have a material impact on our results of operations, financial position, or cash flows. |
Significant Risks and Uncertainties | Significant Risks and Uncertainties We have implemented a comprehensive response strategy designed to manage the ongoing impact of the COVID-19 pandemic on our employees, patients and our business. The prolonged nature of the pandemic is negatively impacting our business in a varied manner due to the emergence of the Delta and Omicron variants and other variants with increased transmissibility, even in some cases in vaccinated people, limited access to health care provider offices and institutions and the willingness of patients or parents of patients to seek treatment. We expect that our business, financial condition, results of operations and growth prospects may continue to be negatively impacted by the pandemic on a limited basis that may vary depending on the context. However we have begun to observe, and expect to continue to observe, a gradual normalization in patient and healthcare provider practices, as providers and patients have adapted their behaviors and procedures to the evolving circumstances and as COVID-19 vaccines continue to be administered. With respect to our commercialization activities, while there continues to be some negative impact on demand, new patient starts and treatments for our products arising from the pandemic, primarily due to the inherent limitations of telemedicine and a reprioritization of healthcare resources toward COVID-19, we have seen improvements as healthcare systems have adapted to cope with the ongoing situation. We believe these dynamics have negatively impacted new patient starts in the U.S. and Europe. The extent of the impact on our ability to generate sales of approved products, execute on new product launches, our clinical development and regulatory efforts, our corporate development objectives and the value of and market for our ordinary shares, will depend on future developments that are highly uncertain and cannot be predicted with confidence at this time. Such developments include continued spread of the Delta and Omicron variants in the U.S. and other countries and the potential emergence of other SARS-CoV-2 variants that may prove especially contagious or virulent, the ultimate duration and severity of the pandemic, governmental “stay-at-home” orders and travel restrictions, quarantines, social distancing and business closure requirements in the U.S., Ireland and other countries, and the effectiveness of vaccination programs and other actions taken globally to contain and treat the disease. Our business has been substantially dependent on Xyrem and while we expect that our business will continue to be substantially dependent on oxybate product sales from both Xywav and Xyrem, there is no guarantee that we can maintain oxybate revenues at or near current levels, or that oxybate revenues will continue to grow. Our ability to maintain or increase oxybate revenues and realize the anticipated benefits from our investment in Xywav are subject to a number of risks and uncertainties including, without limitation, those related to the launch of Xywav for the treatment of idiopathic hypersomnia in adults and adoption in that indication; competition from the introduction of authorized generic and generic versions of sodium oxybate and new products for treatment of cataplexy and/or EDS in narcolepsy in the U.S. market and from other competitors; the current and potential impacts of the COVID-19 pandemic, including the current and expected future negative impact on demand for our products; increased pricing pressure from, changes in policies by, or restrictions on reimbursement imposed by, third party payors, including our ability to maintain adequate coverage and reimbursement for Xywav; increased rebates required to maintain access to our products; challenges to our intellectual property around Xyrem and/or Xywav, including pending antitrust and intellectual property litigation; and continued acceptance of Xywav and Xyrem by physicians and patients . In addition to risks related specifically to Xywav and Xyrem, we are subject to other challenges and risks related to successfully commercializing a portfolio of oncology products and other neuroscience products, including Epidiolex, Sunosi, Defitelio, Vyxeos, Rylaze and Zepzelca, and other risks specific to our business and our ability to execute on our strategy, as well as risks and uncertainties common to companies in the pharmaceutical industry with development and commercial operations, including, without limitation, risks and uncertainties associated with: ongoing clinical research activity and related outcomes, obtaining regulatory approval of our late-stage product candidates; effectively commercializing our recently approved or acquired products such as Xywav, Epidiolex, Zepzelca and Rylaze; obtaining and maintaining adequate coverage and reimbursement for our products; contracting and rebates to pharmacy benefit managers that reduces our net revenue; increasing scrutiny of pharmaceutical product pricing and resulting changes in healthcare laws and policy; market acceptance; regulatory concerns with controlled substances generally and the potential for abuse; future legislation, Drug enforcement agency, or DEA, action or FDA action authorizing the sale, distribution, use, and insurance reimbursement of non-FDA approved cannabinoid products; delays or problems in the supply of our products, loss of single source suppliers or failure to comply with manufacturing regulations; delays or problems with third parties that are part of our manufacturing and supply chain; identifying, acquiring or in-licensing additional products or product candidates; pharmaceutical product development and the inherent uncertainty of clinical success; the challenges of protecting and enhancing our intellectual property rights; complying with applicable regulatory requirements; and possible restrictions on our ability and flexibility to pursue certain future opportunities as a result of our substantial outstanding debt obligations. In addition, the success of the GW Acquisition will depend, in part, on our ability to realize the anticipated benefits from successfully combining our and GW's historical businesses and the integration of our business practices and operations with GW's so that we can fully realize the anticipated benefits of the acquisition. The anticipated benefits to us of the GW Acquisition may not be realized fully within the expected timeframe or at all or may take longer to realize or cost more than expected, which could materially and adversely affect our business, financial condition, results of operations and growth prospects. Moreover, to the extent the COVID-19 pandemic continues to adversely affect our business and results of operations, it may also have the effect of heightening many of the other risks and uncertainties discussed above. |
Concentrations of Risk | Concentrations of Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, investments and derivative contracts. Our investment policy permits investments in U.S. federal government and federal agency securities, corporate bonds or commercial paper issued by U.S. corporations, money market instruments, certain qualifying money market mutual funds, certain repurchase agreements, and tax-exempt obligations of U.S. states, agencies and municipalities and places restrictions on credit ratings, maturities, and concentration by type and issuer. We are exposed to credit risk in the event of a default by the financial institutions holding our cash, cash equivalents and investments to the extent recorded on the balance sheet. |
Business Acquisitions | Business Acquisitions Our consolidated financial statements include the results of operations of an acquired business from the date of acquisition. We account for acquired businesses using the acquisition method of accounting. The acquisition method of accounting for acquired businesses requires, among other things, that assets acquired, liabilities assumed and any noncontrolling interests in the acquired business be recognized at their estimated fair values as of the acquisition date, with limited exceptions, and that the fair value of acquired in-process research and development, or IPR&D, be recorded on the balance sheet. Also, transaction costs are expensed as incurred. Any excess of the acquisition consideration over the assigned values of the net assets acquired is recorded as goodwill. Contingent consideration is included within the acquisition cost and is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is remeasured to fair value at each reporting date until the contingency is resolved and changes in fair value are recognized in earnings. |
Cash Equivalents and Investments | Cash Equivalents and Investments We consider all highly liquid investments, readily convertible to cash, that mature within three months or less from date of purchase to be cash equivalents. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities We record the fair value of derivative instruments as either assets or liabilities on the consolidated balance sheets. Changes in the fair value of derivative instruments are recorded each period in current earnings or other comprehensive income (loss), depending on whether a derivative instrument is designated as part of a hedging transaction and, if it is, the type of hedging transaction. For a derivative to qualify as a hedge at inception and throughout the hedged period, we formally document the nature and relationships between the hedging instruments and hedged item. For derivatives formally designated as hedges, we assess both at inception and quarterly thereafter, whether the hedging derivatives are highly effective in offsetting changes in either the fair value or cash flows of the hedged item. Gains or losses on cash flow hedges are reclassified from other comprehensive income (loss) to earnings when the hedged transaction occurs. If we determine that a forecasted transaction is no longer probable of occurring, we discontinue hedge accounting and any related unrealized gain or loss on the derivative instrument is recognized in current earnings. We designate cross-currency interest rate swaps as fair value hedges to hedge foreign currency risks related to our borrowings denominated in currencies other than the U.S. dollar. Fair value hedge amounts included in the assessment of hedge effectiveness are recognized in foreign exchange gain (loss) within the consolidated statements of income (loss), along with the offsetting gains and losses of the related hedged item. We have elected to exclude the total forward points or currency basis from the assessment of hedge effectiveness and account for them as excluded components. The initial fair value of the excluded component is amortized to foreign exchange gain (loss) and the difference between changes in fair value of the excluded component and the amount recorded in earnings is recorded in other comprehensive income (loss). Derivatives that are not designated and do not qualify as hedges are adjusted to fair value through current earnings. |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method for all inventories. Our policy is to write down inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value and inventory in excess of expected requirements. The estimate of excess quantities is subjective and primarily dependent on our estimates of future demand for a particular product. If our estimate of future demand changes, we consider the impact on the reserve for excess inventory and adjust the reserve as required. Increases in the reserve are recorded as charges in cost of product sales. We capitalize inventory costs associated with our products prior to regulatory approval when, based on management's judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed as research and development. The determination to capitalize inventory costs is based on various factors, including status and expectations of the regulatory approval process, any known safety or efficacy concerns, potential labeling restrictions, and any other impediments to obtaining regulatory approval. We had no pre-approval inventory on our consolidated balance sheet as of December 31, 2021 or 2020. Our inventory production process for our cannabinoid products includes the cultivation of botanical raw material. Because of the duration of the cultivation process, a portion of our inventory will not be sold within one year. Consistent with the practice in other industries that cultivate botanical raw materials, all inventory is classified as a current asset. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows: Buildings 40 years Manufacturing equipment and machinery 4-20 years Computer software and equipment 3-7 years Furniture and fixtures 5 years Leasehold improvements are amortized over the shorter of the noncancelable term of our leases or their economic useful lives. Maintenance and repairs are expensed as incurred. |
Leases | Leases We determine if an arrangement is a lease at inception. Leases are classified at lease commencement as either operating leases or finance leases. Operating leases are included in operating lease assets, other current liabilities, and operating lease liabilities on our consolidated balance sheets. Finance lease assets are included in property, plant and equipment, net, and finance lease liabilities are included in other current liabilities and other non-current liabilities in our consolidated balance sheets. Lease assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. In determining the net present value of lease payments, we use our incremental borrowing rate based on the information available at the lease commencement date. The lease asset also includes any lease payments made, reduced by lease incentives and increased by initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Finance lease expense is recognized as depreciation expense of fixed assets and interest expense on finance lease liabilities. We have lease agreements with lease and non-lease components, which are generally accounted for separately. For vehicle leases we account for the lease and non-lease components as a single lease component. We have elected the short-term lease exemption and, therefore, do not recognize a lease asset or corresponding liability for lease arrangements with an original term of 12 months or less. Rent expense under short-term leases is recognized on a straight-line basis over the lease term. |
Goodwill, Acquired In-Process Research and Development, and Intangible Assets | Goodwill Goodwill represents the excess of the acquisition consideration over the fair value of assets acquired and liabilities assumed. We have determined that we operate in a single segment and have a single reporting unit associated with the development and commercialization of pharmaceutical products. In performing the annual impairment test, the fair value of the reporting unit is compared to its corresponding carrying value, including goodwill. If the carrying value exceeds the fair value of the reporting unit an impairment loss will be recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. We test goodwill for impairment annually in October and when events or changes in circumstances indicate that the carrying value may not be recoverable. Acquired In-Process Research and Development The initial costs of rights to IPR&D projects acquired in an asset acquisition are expensed as IPR&D unless the project has an alternative future use. The fair value of IPR&D projects acquired in a business combination are capitalized and accounted for as indefinite-lived intangible assets until the underlying project receives regulatory approval, at which point the intangible asset will be accounted for as a finite-lived intangible asset, or discontinued, at which point the intangible asset will be written off. Development costs incurred after an acquisition are expensed as incurred. Intangible Assets Intangible assets with finite useful lives consist primarily of purchased developed technology and are amortized on a straight-line basis over their estimated useful lives, which range from two twenty |
Revenue Recognition and Cost of Product Sales | Revenue Recognition Our revenue comprises product sales, net and royalty and contract revenues. Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Prior to recognizing revenue, we make estimates of the transaction price, including variable consideration that is subject to a constraint. Amounts of variable consideration are included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Product Sales, Net Product sales revenue is recognized when control has transferred to the customer, which occurs at a point in time, which is typically on delivery to the customer or, in the case of products that are subject to consignment agreements, when the customer removes product from our consigned inventory location for shipment directly to a patient. Reserves for Variable Consideration Revenues from sales of products are recorded at the net sales price, which includes estimates of variable consideration for which reserves are established and which relate to returns, specialty distributor fees, wholesaler fees, prompt payment discounts, government rebates, government chargebacks, coupon programs and rebates under managed care plans and commercial payor contracts. Calculating certain of these reserves involves estimates and judgments and we determine their expected value based on sales or invoice data, contractual terms, historical utilization rates, new information regarding changes in these programs’ regulations and guidelines that would impact the amount of the actual rebates, our expectations regarding future utilization rates for these programs and channel inventory data. These reserves reflect our best estimates of the amount of consideration to which we are entitled based on the terms of the contract. The amount of variable consideration that is included in the transaction price may be constrained, and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. We reassess our reserves for variable consideration at each reporting date. Historically, adjustments to estimates for these reserves have not been material. Reserves for returns, specialty distributor fees, wholesaler fees, government rebates, coupon programs and rebates under managed care plans and commercial payor contracts are included within current liabilities in our consolidated balance sheets. Reserves for government chargebacks and prompt payment discounts are shown as a reduction in accounts receivable. Royalties and Contract Revenues We enter into out-licensing agreements under which we license certain rights to our products or product candidates to third parties. If a licensing arrangement includes multiple goods or services, we consider whether the license is distinct. If the license to our intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, we recognize revenue from non-refundable, upfront fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. If the license to our intellectual property is determined not to be distinct, it is combined with other goods or services into a combined performance obligation. We consider whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, upfront fees. We evaluate the measure of progress each reporting date and, if necessary, adjust the measure of performance and related revenue recognition. At the inception of each arrangement that includes development milestone payments, we evaluate whether the milestones are considered probable of being reached and estimate the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within our control or that of the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is allocated to each performance obligation on a relative stand-alone selling price basis, for which we recognize revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, we re-evaluate the probability of achievement of such development milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price. For arrangements that include sales-based royalties and milestone payments based on the level of sales, and the license is deemed to be the predominant item to which the royalties and sales-based milestones relate, we recognize revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty or sales-based milestone has been allocated has been satisfied (or partially satisfied). Cost of Product Sales |
Research and Development | Research and Development Research and development expenses consist primarily of costs related to clinical studies and outside services, personnel expenses and other research and development costs, including milestone payments incurred prior to regulatory approval of products. Clinical study and outside services costs relate primarily to services performed by clinical research organizations, clinical studies performed at clinical sites, materials and supplies, and other third party fees. Personnel expenses relate primarily to salaries, benefits and share-based compensation. Other research and development expenses primarily include overhead allocations consisting of various support and facilities-related costs. Research and development costs are expensed as incurred. For product candidates that have not been approved by FDA, inventory used in clinical trials is expensed at the time of production and recorded as research and development expense. For products that have been approved by FDA, inventory used in clinical trials is expensed at the time the inventory is packaged for the trial. |
Advertising Expenses | Advertising ExpensesWe expense the costs of advertising, including promotional expenses, as incurred. |
Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amount and the tax basis of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is provided when it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. We recognize the benefits of a tax position if it is “more-likely-than-not” of being sustained. A recognized tax benefit is then measured as the largest amount of tax benefit that is greater than fifty percent likely of being realized upon settlement. Interest and penalties related to an underpayment of income taxes are included in the income tax expense and classified with the related liability on the consolidated balance sheets. |
Foreign Currency | Foreign Currency Our functional and reporting currency is the U.S. dollar. The assets and liabilities of our subsidiaries that have a functional currency other than the U.S. dollar are translated into U.S. dollars at the exchange rate prevailing at the balance sheet date with the results of operations of subsidiaries translated at the weighted average exchange rate for the reporting period. The cumulative foreign currency translation adjustment is recorded as a component of accumulated other comprehensive income (loss) in shareholders’ equity. Transactions in foreign currencies are translated into the functional currency of the relevant subsidiary at the weighted average exchange rate for the reporting period. Any monetary assets and liabilities arising from these transactions are translated into the relevant functional currency at exchange rates prevailing at the balance sheet date or on settlement. Resulting gains and losses are recorded in foreign exchange gain (loss) in our consolidated statements of income (loss). |
Deferred Financing Costs | Deferred Financing CostsDeferred financing costs are reported at cost, less accumulated amortization and are presented in the consolidated balance sheets as a direct deduction from the carrying value of the associated debt, with the exception of deferred financing costs associated with revolving-debt arrangements which are presented as assets. The related amortization expense is included in interest expense, net in our consolidated statements of income (loss). |
Contingencies | ContingenciesFrom time to time, we may become involved in claims and other legal matters arising in the ordinary course of business. We record accruals for loss contingencies to the extent that we conclude that it is probable that a liability has been incurred and the amount of the related loss can be reasonably estimated. Legal fees and other expenses related to litigation are expensed as incurred and included in selling, general and administrative expenses. |
Share-Based Compensation | Share-Based Compensation We account for compensation cost for all share-based awards at fair value on the date of grant. The fair value is recognized as expense over the service period, net of estimated forfeitures, using the straight-line method. The estimation of share-based awards that will ultimately vest requires judgment, and, to the extent actual results or updated estimates differ from current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. We primarily consider historical experience when estimating expected forfeitures. Performance-Based Restricted Stock Unit Awards Performance-based restricted stock units, or PRSUs, awarded to employees vest upon the achievement of certain performance criteria at the end of a specified performance period, subject to a relative total shareholder return, or TSR, modifier. The estimated fair value of these PRSUs is based on a Monte Carlo simulation model. Compensation expense for PRSUs is recognized from the date the Company determines the performance criteria probable of being achieved to the date the award, or relevant portion of the award, is expected to vest. Cumulative adjustments are recorded on a quarterly basis to reflect subsequent changes to the estimated outcome of the performance criteria until the date results are determined. |
Variable Interest Entity | Variable Interest EntityIn the year ended December 31, 2021, we invested in a cell of a protected cell company, or the protected cell, as part of our directors’ and officers’ liability risk financing strategy. Based on our control and the structure of the protected cell, we concluded that Jazz is the primary beneficiary of the protected cell and is required to consolidate the protected cell. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Property, Plant and Equipment | Estimated useful lives are as follows: Buildings 40 years Manufacturing equipment and machinery 4-20 years Computer software and equipment 3-7 years Furniture and fixtures 5 years Property, plant and equipment consisted of the following (in thousands): December 31, 2021 2020 Construction-in-progress $ 86,511 $ 7,262 Manufacturing equipment and machinery 69,079 33,465 Leasehold improvements 66,318 54,113 Land and buildings 64,008 47,555 Computer software 25,646 22,781 Computer equipment 16,234 18,749 Furniture and fixtures 14,412 11,598 Subtotal 342,208 195,523 Less accumulated depreciation and amortization (85,371) (67,588) Property, plant and equipment, net $ 256,837 $ 127,935 |
Business Combination, Asset A_2
Business Combination, Asset Acquisitions and Collaborations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Business Combination Consideration | The aggregate consideration for the GW Acquisition was $7.2 billion as follows (all amounts in thousands except American Depositary Shares, or ADS, and per GW ADS amounts): GW ADS outstanding May 5, 2021 31,556,200 Cash consideration per GW ADS $ 200 Total cash consideration to GW ADS holders $ 6,311,240 Cash consideration to GW share option holders (inclusive of payroll taxes) 267,450 Total cash consideration 6,578,690 Equity consideration to GW ADS holders (1) 608,456 Consideration related to replacement share option pre-combination service 3,555 Total equity consideration 612,011 Total purchase consideration $ 7,190,701 ________________________ (1) 3.8 million ordinary shares were issued to GW ADS holders. The closing price of the ordinary shares on May 4, 2021 ($160.20) was used to determine the fair value of this equity consideration because the closing of the transaction on May 5, 2021 occurred prior to the opening of regular trading. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of assets acquired and liabilities assumed at the Closing Date before and after the measurement period adjustment (in thousands): Before Measurement Period Adjustment Measurement Period Adjustment After Measurement Period Adjustment Cash and cash equivalents $ 343,898 $ — $ 343,898 Accounts receivable 76,355 — 76,355 Inventory 1,206,290 — 1,206,290 Prepaid expenses and other current assets 72,758 — 72,758 Property, plant and equipment 154,407 — 154,407 Acquired developed technologies 5,480,000 — 5,480,000 In-process research and development 160,000 — 160,000 Total acquired identifiable intangible assets 5,640,000 — 5,640,000 Goodwill 947,831 (14,597) 933,234 Deferred tax liabilities, net (1,083,673) 14,597 (1,069,076) Accrued liabilities (131,971) — (131,971) Other assets/liabilities (35,194) — (35,194) Total purchase consideration $ 7,190,701 $ — $ 7,190,701 The following table summarizes the total consideration for the acquisition and the value of assets acquired and liabilities assumed (in thousands): Consideration Upfront payment for acquisition of Cavion's outstanding shares $ 52,500 Cash acquired 397 Working capital adjustment (255) Transaction costs 2,829 Total consideration $ 55,471 Assets Acquired and Liabilities Assumed Cash $ 397 In-process research and development 48,275 Deferred tax assets 7,995 Other assets and liabilities (1,196) Total net assets acquired $ 55,471 |
Business Combination Pro Forma Information | The unaudited pro forma results do not assume any operating efficiencies as a result of the consolidation of operations and are as follows (in thousands): Year Ended 2021 2020 Total revenues $ 3,294,697 $ 2,890,772 Net loss $ (422,588) $ (980,481) |
Cash and Available-for-Sale S_2
Cash and Available-for-Sale Securities - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Investments | Cash and cash equivalents and investments consisted of the following (in thousands): December 31, 2021 Amortized Gross Gross Estimated Cash and Investments Cash $ 510,747 $ — $ — $ 510,747 $ 510,747 $ — Money market funds 80,701 — — 80,701 80,701 — Totals $ 591,448 $ — $ — $ 591,448 $ 591,448 $ — December 31, 2020 Amortized Gross Gross Estimated Cash and Investments Cash $ 517,117 $ — $ — $ 517,117 $ 517,117 $ — Time deposits 1,360,000 — — 1,360,000 285,000 1,075,000 Money market funds 255,652 — — 255,652 255,652 — Totals $ 2,132,769 $ — $ — $ 2,132,769 $ 1,057,769 $ 1,075,000 |
Fair Value Measurement - (Table
Fair Value Measurement - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes, by major security type, our available-for-sale securities and derivative contracts that were measured at fair value on a recurring basis and were categorized using the fair value hierarchy (in thousands): December 31, 2021 December 31, 2020 Quoted Significant Total Quoted Significant Total Assets: Available-for-sale securities: Time deposits $ — $ — $ — $ — $ 1,360,000 $ 1,360,000 Money market funds 80,701 — 80,701 255,652 — 255,652 Foreign exchange forward contracts — 580 580 — 11,907 11,907 Totals $ 80,701 $ 580 $ 81,281 $ 255,652 $ 1,371,907 $ 1,627,559 Liabilities: Cross-currency interest rate contracts $ — $ 15,232 $ 15,232 $ — $ — $ — Interest rate contracts — — — — 2,835 2,835 Foreign exchange forward contracts — 3,187 3,187 — 790 790 Totals $ — $ 18,419 $ 18,419 $ — $ 3,625 $ 3,625 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Income (Losses) on Derivative Instruments | The impact on accumulated other comprehensive income (loss) and earnings from the cross-currency interest rate swap contract was as follows (in thousands): Cross-Currency Interest Rate Contract: Year Ended December 31, 2021 Loss recognized in accumulated other comprehensive income (loss), net of tax $ (375) Loss reclassified from accumulated other comprehensive income (loss) to foreign exchange loss, net of tax 246 Loss recognized in foreign exchange loss 35,885 |
Schedule of Foreign Exchange Gain (Loss) of Outstanding Derivatives | The foreign exchange loss in our consolidated statements of income (loss) included the following gains and losses associated with foreign exchange contracts not designated as hedging instruments (in thousands): Year Ended December 31, Foreign Exchange Forward Contracts: 2021 2020 2019 Gain (loss) recognized in foreign exchange loss $ (19,585) $ 19,843 $ (6,192) |
Schedule of Gains (Losses) on Derivative Instruments | The impact on accumulated other comprehensive income (loss) and earnings from interest rate swap contracts was as follows (in thousands): Year Ended December 31, Interest Rate Contracts: 2021 2020 2019 Loss recognized in accumulated other comprehensive income (loss), net of tax $ (14) $ (4,543) $ (3,903) Loss (gain) reclassified from accumulated other comprehensive income (loss) to interest expense, net of tax $ 2,482 $ 3,401 $ (979) |
Schedule of the Fair Value of Outstanding Derivatives | The following tables summarize the fair value of outstanding derivatives (in thousands): December 31, 2021 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Cross-currency interest rate contracts Other current assets $ — Accrued liabilities $ 15,232 Derivatives not designated as hedging instruments: Foreign exchange forward contracts Other current assets 580 Accrued liabilities 3,187 Total fair value of derivative instruments $ 580 $ 18,419 December 31, 2020 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Interest rate contracts Other current assets $ — Accrued liabilities $ 2,835 Derivatives not designated as hedging instruments: Foreign exchange forward contracts Other current assets 11,907 Accrued liabilities 790 Total fair value of derivative instruments $ 11,907 $ 3,625 |
Schedule of Offsetting Assets | The following tables summarize the potential effect on our consolidated balance sheets of offsetting our interest rate contracts and foreign exchange forward contracts subject to such provisions (in thousands): December 31, 2021 Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Description Derivative Financial Instruments Cash Collateral Received (Pledged) Net Amount Derivative assets $ 580 $ — $ 580 $ (567) $ — $ 13 Derivative liabilities $ (18,419) $ — $ (18,419) $ 567 $ — $ (17,852) December 31, 2020 Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Description Derivative Financial Instruments Cash Collateral Received (Pledged) Net Amount Derivative assets $ 11,907 $ — $ 11,907 $ (2,207) $ — $ 9,700 Derivative liabilities $ (3,625) $ — $ (3,625) $ 2,207 $ — $ (1,418) |
Schedule of Offsetting Liabilities | The following tables summarize the potential effect on our consolidated balance sheets of offsetting our interest rate contracts and foreign exchange forward contracts subject to such provisions (in thousands): December 31, 2021 Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Description Derivative Financial Instruments Cash Collateral Received (Pledged) Net Amount Derivative assets $ 580 $ — $ 580 $ (567) $ — $ 13 Derivative liabilities $ (18,419) $ — $ (18,419) $ 567 $ — $ (17,852) December 31, 2020 Gross Amounts of Recognized Assets/ Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Description Derivative Financial Instruments Cash Collateral Received (Pledged) Net Amount Derivative assets $ 11,907 $ — $ 11,907 $ (2,207) $ — $ 9,700 Derivative liabilities $ (3,625) $ — $ (3,625) $ 2,207 $ — $ (1,418) |
Inventories - (Tables)
Inventories - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following (in thousands): December 31, 2021 2020 Raw materials $ 21,550 $ 16,003 Work in process 886,849 45,758 Finished goods 164,322 33,635 Total inventories $ 1,072,721 $ 95,396 As of December 31, 2021, inventories included $811.3 million related to the purchase accounting inventory fair value step-up on inventory acquired in the GW Acquisition. |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following (in thousands): December 31, 2021 2020 Deferred charge for income taxes on intercompany profit $ 203,480 $ 114,234 Other 48,912 38,257 Total other current assets $ 252,392 $ 152,491 |
Property, Plant and Equipment -
Property, Plant and Equipment - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Estimated useful lives are as follows: Buildings 40 years Manufacturing equipment and machinery 4-20 years Computer software and equipment 3-7 years Furniture and fixtures 5 years Property, plant and equipment consisted of the following (in thousands): December 31, 2021 2020 Construction-in-progress $ 86,511 $ 7,262 Manufacturing equipment and machinery 69,079 33,465 Leasehold improvements 66,318 54,113 Land and buildings 64,008 47,555 Computer software 25,646 22,781 Computer equipment 16,234 18,749 Furniture and fixtures 14,412 11,598 Subtotal 342,208 195,523 Less accumulated depreciation and amortization (85,371) (67,588) Property, plant and equipment, net $ 256,837 $ 127,935 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Gross Carrying Amount of Goodwill | The gross carrying amount of goodwill was as follows (in thousands): Balance at December 31, 2020 $ 958,303 Goodwill arising from the GW Acquisition 933,234 Foreign exchange (63,928) Balance at December 31, 2021 $ 1,827,609 |
Schedule of Gross Carrying Amounts and Net Book Values of Intangible Assets | The gross carrying amounts and net book values of our intangible assets were as follows (in thousands): December 31, 2021 December 31, 2020 Remaining Gross Accumulated Net Book Gross Accumulated Net Book Acquired developed technologies 11.4 $ 8,195,675 $ (1,198,333) $ 6,997,342 $ 3,379,162 $ (1,184,111) $ 2,195,051 Manufacturing contracts — 12,124 (12,124) — 13,135 (13,135) — Trademarks — 2,893 (2,893) — 2,917 (2,917) — Total finite-lived intangible assets 8,210,692 (1,213,350) 6,997,342 3,395,214 (1,200,163) 2,195,051 Acquired IPR&D assets 154,986 — 154,986 — — — Total intangible assets $ 8,365,678 $ (1,213,350) $ 7,152,328 $ 3,395,214 $ (1,200,163) $ 2,195,051 |
Schedule of Estimated Future Amortization Costs | Based on finite-lived intangible assets recorded as of December 31, 2021, and assuming the underlying assets will not be impaired and that we will not change the expected lives of any other assets, future amortization expenses were estimated as follows (in thousands): Year Ending December 31, Estimated Amortization Expense 2022 $ 627,866 2023 627,866 2024 627,866 2025 627,866 2026 627,866 Thereafter 3,858,012 Total $ 6,997,342 |
Accrued Liabilities - (Tables)
Accrued Liabilities - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): December 31, 2021 2020 Rebates and other sales deductions $ 215,397 $ 127,534 Employee compensation and benefits 158,870 102,601 Accrued interest 48,640 5,722 Clinical trial accruals 25,612 9,108 Accrued milestones 25,000 — Consulting and professional services 22,507 6,660 Selling and marketing accruals 21,566 6,742 Accrued royalties 20,345 15,230 Derivative instrument liabilities 18,419 3,625 Inventory-related accruals 16,166 9,809 Sales return reserve 15,814 18,368 Current portion of lease liabilities 15,763 14,457 Accrued construction-in-progress 2,894 1,119 Other 59,311 31,757 Total accrued liabilities $ 666,304 $ 352,732 |
Debt - (Tables)
Debt - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The following table summarizes the carrying amount of our indebtedness (in thousands): December 31, 2021 2020 2021 Notes $ — $ 218,812 Unamortized discount and debt issuance costs on 2021 Notes — (5,883) 2021 Notes, net — 212,929 2024 Notes 575,000 575,000 Unamortized discount and debt issuance costs on 2024 Notes (71,237) (95,275) 2024 Notes, net 503,763 479,725 2026 Notes 1,000,000 1,000,000 Unamortized discount and debt issuance costs on 2026 Notes (150,730) (179,518) 2026 Notes, net 849,270 820,482 Secured Notes 1,473,810 — Term Loan 3,223,100 581,702 Total debt 6,049,943 2,094,838 Less current portion 31,000 246,322 Total long-term debt $ 6,018,943 $ 1,848,516 |
Schedule of Maturities of Long-term Debt | Scheduled maturities with respect to our long-term debt are as follows (in thousands): Year Ending December 31, Scheduled Long-Term Debt Maturities 2022 $ 31,000 2023 31,000 2024 606,000 2025 31,000 2026 1,031,000 Thereafter 4,665,458 Total $ 6,395,458 |
Leases - (Tables)
Leases - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost and Supplemental Cash Flow Information | The components of the lease expense for the years ended December 31, 2021, 2020 and 2019 were as follows (in thousands): Year Ended December 31, Lease Cost 2021 2020 2019 Operating lease cost $ 23,869 $ 21,755 $ 23,087 Short-term lease cost 5,540 4,079 2,465 Variable lease cost 10 3 5 Sublease income — (224) (634) Finance Lease Cost Amortization of leased asset 324 — — Interest on lease liabilities 295 — — Net lease cost $ 30,038 $ 25,613 $ 24,923 December 31, Lease Term and Discount Rate 2021 2020 Weighted-average remaining lease term (years) Operating leases 6.5 8.7 Finance leases 12.9 — Weighted-average discount rate Operating leases 5.2 % 5.3 % Finance leases 7.4 % — % Supplemental cash flow information related to operating and finance leases was as follows (in thousands): Year Ended December 31, 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 24,847 $ 21,678 $ 17,066 Operating cash outflows from finance leases 625 — — Financing cash outflows from finance leases 324 — — Non-cash operating activities: Operating lease assets obtained in exchange for new operating lease liabilities (1) $ 8,188 $ 1,763 $ 153,448 Finance lease assets obtained in exchange for new finance lease liabilities 650 — — De-recognition of operating lease asset on lease assignment 56,968 — — De-recognition of operating lease liability on lease assignment 68,064 — — _____________________________ (1) Includes the balances recognized on January 1, 2019 on adoption of ASU No. 2016-02. |
Schedule of Lease Supplemental Balance Sheet Information | Supplemental balance sheet information related to operating and finance leases was as follows (in thousands): December 31, Leases Classification 2021 2020 Assets Operating lease assets Operating lease assets $ 86,586 $ 129,169 Finance lease assets Property, plant and equipment 5,738 — Total lease assets $ 92,324 $ 129,169 Liabilities Current Operating lease liabilities Accrued liabilities $ 15,357 $ 14,457 Finance lease liabilities Accrued liabilities 406 — Non-current Operating lease liabilities Operating lease liabilities, less current portion 87,200 140,035 Finance lease liabilities Other non-current liabilities 6,269 — Total lease liabilities $ 109,232 $ 154,492 |
Schedule of Operating Lease Liability Maturities | Maturities of operating and finance lease liabilities were as follows (in thousands): Year Ending December 31, Operating Leases Finance Leases 2022 $ 20,373 $ 876 2023 19,426 872 2024 20,996 872 2025 14,565 872 2026 12,741 872 Thereafter 34,560 6,135 Total lease payments $ 122,661 $ 10,499 Less imputed interest (20,104) (3,824) Present value of lease liabilities $ 102,557 $ 6,675 |
Schedule of Finance Lease Liability Maturities | Maturities of operating and finance lease liabilities were as follows (in thousands): Year Ending December 31, Operating Leases Finance Leases 2022 $ 20,373 $ 876 2023 19,426 872 2024 20,996 872 2025 14,565 872 2026 12,741 872 Thereafter 34,560 6,135 Total lease payments $ 122,661 $ 10,499 Less imputed interest (20,104) (3,824) Present value of lease liabilities $ 102,557 $ 6,675 |
Shareholders' Equity - (Tables)
Shareholders' Equity - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Authorized but Unissued Ordinary Shares | We had reserved the following shares of authorized but unissued ordinary shares (in thousands): December 31, 2021 2020 2011 Equity Incentive Plan 22,195 21,070 2007 Employee Stock Purchase Plan 3,285 2,600 GW Incentive Plans 1,853 — Amended and Restated 2007 Non-Employee Directors Stock Award Plan 807 889 2007 Equity Incentive Plan — 5 Total 28,140 24,564 |
Comprehensive Income (Loss) - (
Comprehensive Income (Loss) - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss as of December 31, 2021 and 2020 were as follows (in thousands): Net Unrealized Foreign Total Balance at December 31, 2020 $ (2,467) $ (131,885) $ (134,352) Other comprehensive income (loss) before reclassifications (389) (268,347) (268,736) Amounts reclassified from accumulated other comprehensive income (loss) 2,728 — 2,728 Other comprehensive income (loss), net 2,339 (268,347) (266,008) Balance at December 31, 2021 $ (128) $ (400,232) $ (400,360) |
Net Income (Loss) per Ordinar_2
Net Income (Loss) per Ordinary Share - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) per Ordinary Share Computation | Basic and diluted net income (loss) per ordinary share were computed as follows (in thousands, except per share amounts): Year Ended December 31, 2021 2020 2019 Numerator: Net income (loss) $ (329,668) $ 238,616 $ 523,367 Denominator: Weighted-average ordinary shares used in per share calculations - basic 59,694 55,712 56,749 Dilutive effect of employee equity incentive and purchase plans — 805 801 Weighted-average ordinary shares used in per share calculations - diluted 59,694 56,517 57,550 Net income (loss) per ordinary share : Basic $ (5.52) $ 4.28 $ 9.22 Diluted $ (5.52) $ 4.22 $ 9.09 |
Weighted-Average Ordinary Shares Excluded from Computation of Diluted Net Income (Loss) per Share | The following table represents the weighted-average ordinary shares that were excluded from the computation of diluted net income (loss) per ordinary share for the years presented because including them would have an anti-dilutive effect (in thousands): Year Ended December 31, 2021 2020 2019 Exchangeable Senior Notes 9,725 8,077 5,504 Employee equity incentive and purchase plans 3,927 4,780 5,000 |
Segment and Other Information -
Segment and Other Information - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Total Long-lived Assets by Location | The following table presents total long-lived assets by location (in thousands): December 31, 2021 2020 Ireland $ 65,478 $ 71,906 United Kingdom 176,778 3,438 United States 76,290 157,282 Italy 16,698 16,008 Other 8,179 8,470 Total long-lived assets (1) $ 343,423 $ 257,104 _________________________ (1) Long-lived assets consist of property, plant and equipment and operating lease assets. |
Revenues - (Tables)
Revenues - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue | The following table presents a summary of total revenues (in thousands): Year Ended December 31, 2021 2020 2019 Xyrem $ 1,265,830 $ 1,741,758 $ 1,642,525 Xywav 535,297 15,264 — Total Oxybate 1,801,127 1,757,022 1,642,525 Epidiolex/Epidyolex 463,645 — — Sunosi 57,914 28,333 3,714 Sativex 12,707 — — Total Neuroscience 2,335,393 1,785,355 1,646,239 Zepzelca 246,808 90,380 — Rylaze 85,629 — — Vyxeos 134,060 121,105 121,407 Defitelio/defibrotide 197,931 195,842 172,938 Erwinaze/Erwinase 69,382 147,136 177,465 Total Oncology 733,810 554,463 471,810 Other 9,798 6,842 17,552 Product sales, net 3,079,001 2,346,660 2,135,601 Royalties and contract revenues 15,237 16,907 26,160 Total revenues $ 3,094,238 $ 2,363,567 $ 2,161,761 The following table presents a summary of total revenues attributed to geographic sources (in thousands): Year Ended December 31, 2021 2020 2019 United States $ 2,820,242 $ 2,144,541 $ 1,964,161 Europe 230,158 175,208 150,201 All other 43,838 43,818 47,399 Total revenues $ 3,094,238 $ 2,363,567 $ 2,161,761 |
Summary of Revenues from Customers Representing More Than 10% of Total Revenues | The following table presents a summary of the percentage of total revenues from customers that represented more than 10% of our total revenues: Year Ended December 31, 2021 2020 2019 ESSDS 60 % 74 % 76 % McKesson 12 % 12 % 14 % |
Summary of a Reconciliation in Contract Liabilities from Contracts with Customer | The following table presents a reconciliation of our beginning and ending balances in contract liabilities from contracts with customers for the year ended December 31, 2021 (in thousands): Contract Liabilities Balance as of December 31, 2020 $ 4,861 Additions 483 Amount recognized within royalties and contract revenues (2,788) Balance as of December 31 2021 $ 2,556 |
Share-Based Compensation - (Tab
Share-Based Compensation - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Weighted-average Assumptions Used in Black-Scholes Option Pricing Model and Resulting Weighted-average Grant Date Fair Value of Share Options Granted | The table below shows, for market strike price option grants, the weighted-average assumptions used in the Black-Scholes option pricing model and the resulting weighted-average grant date fair value of market strike price option grants granted in each of the past three years: Year Ended December 31, 2021 2020 2019 Grant date fair value $ 51.39 $ 34.68 $ 42.09 Volatility 37 % 33 % 32 % Expected term (years) 4.5 4.6 4.5 Range of risk-free rates 0.4-0.8% 0.2-1.6% 1.3-2.5% Expected dividend yield — % — % — % |
Schedule of Share-based Compensation Expense Related to Share Options, RSUs, and Grants Under ESPP | Share-based compensation expense related to share options, RSUs, PRSUs and grants under our ESPP was as follows (in thousands): Year Ended December 31, 2021 2020 2019 Selling, general and administrative $ 135,285 $ 84,384 $ 78,697 Research and development 43,758 29,242 25,229 Cost of product sales 9,963 7,372 6,637 Total share-based compensation expense, pre-tax 189,006 120,998 110,563 Income tax benefit from share-based compensation expense (33,958) (12,838) (15,712) Total share-based compensation expense, net of tax $ 155,048 $ 108,160 $ 94,851 |
Schedule of Information and Activity Related to Share Option Plans Activity | The following table summarizes information as of December 31, 2021 and activity during 2021 related to our share option plans: Shares Weighted- Weighted- Aggregate Outstanding at January 1, 2021 5,279 $ 130.51 Options granted 110 164.45 Options exercised (1,041) 114.33 Options forfeited (137) 139.24 Options expired (90) 164.45 Outstanding at December 31, 2021 4,121 $ 134.48 5.6 $ 30,696 Vested and expected to vest at December 31, 2021 4,039 $ 134.56 5.6 $ 30,164 Exercisable at December 31, 2021 3,270 $ 135.06 5.1 $ 26,248 The following table summarizes information as of December 31, 2021 and activity during 2021 related to our nominal strike price options: Shares Weighted- Weighted- Aggregate Outstanding at January 1, 2021 — $ — Options granted 124 0.02 Options exercised (1) 0.02 Options forfeited (7) 0.02 Outstanding at December 31, 2021 116 $ 0.02 7.4 $ 14,803 Vested and expected to vest at December 31, 2021 110 $ 0.02 7.3 $ 13,969 Exercisable at December 31, 2021 22 $ 0.02 0.5 $ 2,846 |
Schedule of Information and Activity Related to RSUs and PRSUs | The following table summarizes information as of December 31, 2021 and activity during 2021 related to our RSUs: Number of RSUs (In thousands) Weighted- Weighted- Aggregate Outstanding at January 1, 2021 1,878 $ 125.07 RSUs granted 1,780 168.10 RSUs released (692) 133.40 RSUs forfeited (335) 148.12 Outstanding at December 31, 2021 2,631 $ 149.05 1.4 $ 335,224 The table below shows the number of PRSUs granted covering an equal number of our ordinary shares and the weighted-average grant date fair value of PRSUs granted: Number of PRSUs (In thousands) Weighted- Weighted- Aggregate Outstanding at January 1, 2021 — $ — PRSUs granted 224 190.81 PRSUs forfeited (10) 190.81 Outstanding at December 31, 2021 214 $ 190.81 2.0 $ 27,265 |
Income Taxes - (Tables)
Income Taxes - (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) from Continuing Operations Before Income Tax Provision (Benefit) | The components of income (loss) before income tax expense (benefit) and equity in loss of investees were as follows (in thousands): Year Ended December 31, 2021 2020 2019 Ireland $ 97,557 $ (102,328) $ (6,451) United Kingdom (681,291) 3,836 3,304 United States 221,185 372,910 317,728 Other 249,711 677 139,721 Total $ (112,838) $ 275,095 $ 454,302 |
Details of Income Tax Provision (Benefit) | The following table sets forth the details of income tax expense (benefit) (in thousands): Year Ended December 31, 2021 2020 2019 Current Ireland $ 25,770 $ 19,437 $ 51,696 United Kingdom (924) 166 — United States 88,850 110,896 109,495 Other 33,222 39,955 2,265 Total current tax expense 146,918 170,454 163,456 Deferred, exclusive of other components below Ireland (5,388) (32,458) (163,626) United Kingdom (111,534) 679 1,353 United States (46,531) (29,117) (41,297) Other (28,604) (74,278) (38,597) Total deferred, exclusive of other components (192,057) (135,174) (242,167) Deferred, change in tax rates United Kingdom 259,873 (1,155) (52) United States 1,377 (371) 203 Other 5 (237) 5,406 Total deferred, change in tax rates 261,255 (1,763) 5,557 Total deferred tax expense (benefit) 69,198 (136,937) (236,610) Total income tax expense (benefit) $ 216,116 $ 33,517 $ (73,154) |
Reconciliation of Income Taxes at the Statutory Income Tax Rate to Effective Income Tax Rate | The reconciliation between the statutory income tax rate applied to income before the income tax expense (benefit) and equity in loss of investees and our effective income tax rate was as follows (in thousands): Year Ended December 31, 2021 2020 2019 Income tax expense/(benefit) at the statutory income tax rate $ (14,105) $ 34,387 $ 56,788 Change in tax rate 261,663 (1,836) 6,923 Deduction on subsidiary equity (116,438) (25,740) (23,450) Change in valuation allowance 81,280 6,074 14,823 Research and other tax credits (31,069) (30,836) (39,776) Non-deductible acquisition-related costs 20,929 — 11,738 Non-deductible compensation 19,914 8,604 8,321 Financing costs 14,418 7,132 (7,615) Change in unrecognized tax benefits (6,436) 16,309 499 Tax deficiencies/(excess tax benefits) from share-based compensation (5,555) 5,274 537 Foreign income tax rate differential (4,343) 16,126 39,695 Foreign derived intangible income benefit (3,416) — — Change in estimates (2,653) (3,604) 1,156 Intra-entity transfer of intellectual property assets — — (112,274) Patent box incentive benefit — — (31,642) Other 1,927 1,627 1,123 Reported income tax expense/(benefit) $ 216,116 $ 33,517 $ (73,154) |
Schedule of Net Deferred Tax Assets/(Liabilities) | Significant components of our net deferred tax assets/(liabilities) were as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Tax credit carryforwards $ 284,155 $ 258,296 Operating loss carryforwards 265,156 68,860 Intangible assets 189,959 173,918 Accrued liabilities 84,509 62,561 Deduction on subsidiary equity carryforwards 78,514 13,201 Indirect effects of unrecognized tax benefits 46,876 48,743 Share-based compensation 37,289 26,090 Lease liabilities 15,865 31,787 Other 65,224 69,289 Total deferred tax assets 1,067,547 752,745 Valuation allowance (154,255) (77,342) Deferred tax assets, net of valuation allowance 913,292 675,403 Deferred tax liabilities: Intangible assets (1,652,297) (448,310) Inventory (181,742) — Operating lease assets (12,657) (26,316) Other (56,034) (76,258) Total deferred tax liabilities (1,902,730) (550,884) Net of deferred tax assets and (liabilities) $ (989,438) $ 124,519 The following table summarizes the presentation of deferred tax assets and liabilities (in thousands): December 31, 2021 2020 Deferred tax assets $ 311,103 $ 254,916 Deferred tax liabilities (1,300,541) (130,397) Net of deferred tax assets and (liabilities) $ (989,438) $ 124,519 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of our gross unrecognized tax benefits follows (in thousands): December 31, 2021 2020 2019 Balance at the beginning of the year $ 146,557 $ 124,319 $ 118,213 Increases related to current year tax positions 26,675 27,908 27,552 Increases related to prior year tax positions 211 19,712 761 Decreases related to prior year tax positions (182) (213) (91) Increases recognized through purchase accounting 5,916 — — Decreases related to settlements with taxing authorities (14,744) — — Lapse of the applicable statute of limitations (26,566) (25,169) (22,116) Balance at the end of the year $ 137,867 $ 146,557 $ 124,319 |
Organization and Description _2
Organization and Description of Business - Basis of Presentation Narrative (Details) $ in Thousands | May 05, 2021USD ($) |
GW Pharmaceuticals plc | |
Schedule of Asset Acquisitions, by Acquisition [Line Items] | |
Total purchase consideration | $ 7,190,701 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | May 05, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2022 |
Summary Of Significant Accounting Policies [Line Items] | |||||
Intangible asset amortization | $ 525,769,000 | $ 259,580,000 | $ 354,814,000 | ||
Advertising expenses | 161,500,000 | 99,600,000 | 65,400,000 | ||
Retained earnings | 830,226,000 | 1,159,894,000 | |||
Deferred tax asset | 1,067,547,000 | 752,745,000 | |||
Accounting Standards Update 2020-06 | Subsequent Event | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Convertible debt | $ 206,200,000 | ||||
Retained earnings | 127,400,000 | ||||
Deferred tax asset | 100,000 | ||||
Additional paid in capital | $ 333,500,000 | ||||
Acquired Developed Technologies | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Finite-lived intangible asset, useful life | 12 years | ||||
Intangible asset amortization | $ 525,800,000 | $ 259,600,000 | $ 243,700,000 | ||
Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Finite-lived intangible asset, useful life | 2 years | ||||
Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Finite-lived intangible asset, useful life | 20 years | ||||
Customer concentration risk | Accounts Receivable | Three Customers | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 74.00% | 84.00% | |||
Customer concentration risk | Accounts Receivable | ESSDS | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 52.00% | 68.00% | |||
Customer concentration risk | Accounts Receivable | McKesson | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 12.00% | 12.00% | |||
Customer concentration risk | Accounts Receivable | Cardinal Health Inc | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 10.00% | 4.00% | |||
Foreign exchange forward contracts | Derivatives not designated as hedging instruments | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Notional amount | $ 347,200,000 | $ 357,400,000 | |||
Net asset (liability) fair value | (2,600,000) | $ 11,100,000 | |||
Cross-currency interest rate contracts | Derivatives designated as hedging instruments | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Notional amount | 251,000,000 | ||||
Net asset (liability) fair value | $ (15,200,000) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 40 years |
Manufacturing equipment and machinery | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 4 years |
Manufacturing equipment and machinery | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 20 years |
Computer software and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 3 years |
Computer software and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 7 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property and equipment | 5 years |
Business Combination, Asset A_3
Business Combination, Asset Acquisitions and Collaborations - Business Combination Narrative (Details) $ in Thousands, € in Millions | May 05, 2021USD ($) | May 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | May 31, 2021EUR (€) | Apr. 30, 2021USD ($) | Apr. 29, 2021 |
Business Acquisition [Line Items] | |||||||||
Income tax expense (benefit) | $ 216,116 | $ 33,517 | $ (73,154) | ||||||
Intangible asset amortization | 525,769 | 259,580 | 354,814 | ||||||
Cost of product sales (excluding amortization of acquired developed technologies) | 440,760 | 148,917 | 127,930 | ||||||
Pro Forma | Acquisition-related Costs | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition costs not expensed during period | 357,600 | ||||||||
Income tax expense (benefit) | 23,600 | (27,900) | |||||||
Acquisition cost expensed during period | 386,700 | ||||||||
Pro Forma | Amortization Expense Adjustment | |||||||||
Business Acquisition [Line Items] | |||||||||
Income tax expense (benefit) | (30,200) | (88,300) | |||||||
Intangible asset amortization | 159,100 | 464,600 | |||||||
Pro Forma | Cost Of Product Sales Adjustment | |||||||||
Business Acquisition [Line Items] | |||||||||
Income tax expense (benefit) | (12,400) | (59,500) | |||||||
Cost of product sales (excluding amortization of acquired developed technologies) | 81,900 | 296,300 | |||||||
Pro Forma | Interest Expense Adjustment | |||||||||
Business Acquisition [Line Items] | |||||||||
Income tax expense (benefit) | (9,000) | (51,900) | |||||||
Interest expense | 49,100 | 241,000 | |||||||
Acquired developed technologies | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible asset, useful life | 12 years | ||||||||
Intangible asset amortization | $ 525,800 | $ 259,600 | $ 243,700 | ||||||
Acquired developed technologies | Measurement Input, Discount Rate | Valuation, Income Approach | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible asset, measurement input | 0.094 | ||||||||
Senior Notes Due 2029 | Senior Secured Debt | Jazz Securities Designated Activity Company | |||||||||
Business Acquisition [Line Items] | |||||||||
Debt instrument face amount | $ 1,500,000 | ||||||||
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | ||||||
2021 Credit Agreement, Dollar Term Loan | Line of Credit | |||||||||
Business Acquisition [Line Items] | |||||||||
Debt instrument face amount | $ 3,100,000 | $ 3,100,000 | |||||||
Interest rate (as a percent) | 4.00% | 4.00% | |||||||
Debt term | 7 years | ||||||||
2021 Credit Agreement, Euro Term Loan | Line of Credit | |||||||||
Business Acquisition [Line Items] | |||||||||
Debt instrument face amount | € | € 625 | ||||||||
Interest rate (as a percent) | 4.43% | 4.43% | |||||||
Debt term | 7 years | ||||||||
2021 Credit Agreement, Revolving Credit Facility | Line of Credit | Borrowings under revolving credit facility | |||||||||
Business Acquisition [Line Items] | |||||||||
Debt term | 5 years | ||||||||
Line of credit, maximum borrowing capacity | $ 500,000 | ||||||||
GW Pharmaceuticals plc | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred | 7,190,701 | ||||||||
Transactions costs incurred during period | $ 81,900 | ||||||||
Revenue of acquiree since acquisition date, actual | 476,400 | ||||||||
Net loss of acquiree since acquisition date, actual | 704,600 | ||||||||
Goodwill, measurement period adjustment | $ 14,600 | ||||||||
Acquisition accounting inventory fair value step-up adjustment | 1,062,600 | ||||||||
Total acquired identifiable intangible assets | $ 5,640,000 | 5,640,000 | 5,640,000 | ||||||
Income tax expense (benefit) | 259,900 | ||||||||
GW Pharmaceuticals plc | Acquired developed technologies | |||||||||
Business Acquisition [Line Items] | |||||||||
Total acquired identifiable intangible assets | $ 5,480,000 | $ 5,480,000 |
Business Combination, Asset A_4
Business Combination, Asset Acquisitions and Collaborations - Schedule of Aggregate Consideration (Details) - GW Pharmaceuticals plc - USD ($) $ / shares in Units, $ in Thousands | May 05, 2021 | May 04, 2021 |
Business Acquisition [Line Items] | ||
GW ADS Outstanding May 5, 2021 (in shares) | 31,556,200 | |
Cash consideration per GW ADS (USD per share) | $ 200 | |
Total cash consideration | $ 6,578,690 | |
Total equity consideration | 612,011 | |
Total purchase consideration | 7,190,701 | |
Share Options | ||
Business Acquisition [Line Items] | ||
Total cash consideration | 267,450 | |
Total equity consideration | 3,555 | |
ADR | ||
Business Acquisition [Line Items] | ||
Total cash consideration | 6,311,240 | |
Total equity consideration | $ 608,456 | |
Ordinary Shares | ||
Business Acquisition [Line Items] | ||
Ordinary shares issued to GW ADS holders (in shares) | 3,800,000 | |
Closing price of ordinary shares (USD per share) | $ 160.20 |
Business Combination, Asset A_5
Business Combination, Asset Acquisitions and Collaborations - Schedule of Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | May 05, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,827,609 | $ 958,303 | |
GW Pharmaceuticals plc | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 343,898 | ||
Accounts receivable | 76,355 | ||
Inventory | 1,206,290 | ||
Prepaid expenses and other current assets | 72,758 | ||
Property, plant and equipment | 154,407 | ||
Total acquired identifiable intangible assets | 5,640,000 | $ 5,640,000 | |
Goodwill | 933,234 | ||
Deferred tax liabilities, net | (1,069,076) | ||
Accrued liabilities | (131,971) | ||
Other assets/liabilities | (35,194) | ||
Total purchase consideration | 7,190,701 | ||
GW Pharmaceuticals plc | Previously Reported | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 343,898 | ||
Accounts receivable | 76,355 | ||
Inventory | 1,206,290 | ||
Prepaid expenses and other current assets | 72,758 | ||
Property, plant and equipment | 154,407 | ||
Total acquired identifiable intangible assets | 5,640,000 | ||
Goodwill | 947,831 | ||
Deferred tax liabilities, net | (1,083,673) | ||
Accrued liabilities | (131,971) | ||
Other assets/liabilities | (35,194) | ||
Total purchase consideration | 7,190,701 | ||
GW Pharmaceuticals plc | Revision of Prior Period, Adjustment | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 0 | ||
Accounts receivable | 0 | ||
Inventory | 0 | ||
Prepaid expenses and other current assets | 0 | ||
Property, plant and equipment | 0 | ||
Total acquired identifiable intangible assets | 0 | ||
Goodwill | (14,597) | ||
Deferred tax liabilities, net | (14,597) | ||
Accrued liabilities | 0 | ||
Other assets/liabilities | 0 | ||
Total purchase consideration | 0 | ||
GW Pharmaceuticals plc | Acquired developed technologies | |||
Business Acquisition [Line Items] | |||
Total acquired identifiable intangible assets | 5,480,000 | ||
GW Pharmaceuticals plc | Acquired developed technologies | Previously Reported | |||
Business Acquisition [Line Items] | |||
Total acquired identifiable intangible assets | 5,480,000 | ||
GW Pharmaceuticals plc | Acquired developed technologies | Revision of Prior Period, Adjustment | |||
Business Acquisition [Line Items] | |||
Total acquired identifiable intangible assets | 0 | ||
GW Pharmaceuticals plc | Acquired IPR&D assets | |||
Business Acquisition [Line Items] | |||
Total acquired identifiable intangible assets | 160,000 | ||
GW Pharmaceuticals plc | Acquired IPR&D assets | Previously Reported | |||
Business Acquisition [Line Items] | |||
Total acquired identifiable intangible assets | $ 160,000 | ||
GW Pharmaceuticals plc | Acquired IPR&D assets | Revision of Prior Period, Adjustment | |||
Business Acquisition [Line Items] | |||
Total acquired identifiable intangible assets | $ 0 |
Business Combination, Asset A_6
Business Combination, Asset Acquisitions and Collaborations - Pro Forma Information (Details) - GW Pharmaceuticals plc - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 3,294,697 | $ 2,890,772 |
Net loss | $ (422,588) | $ (980,481) |
Business Combination, Asset A_7
Business Combination, Asset Acquisitions and Collaborations - Asset Acquisitions and Exclusive License Agreements Narrative (Details) - USD ($) | Dec. 19, 2019 | Aug. 12, 2019 | Oct. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 31, 2021 | Jun. 30, 2020 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Acquired in-process research and development | $ 0 | $ 251,250,000 | $ 109,975,000 | |||||
Gross Carrying Amount | $ 8,210,692,000 | 3,395,214,000 | ||||||
Cavion Inc | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Asset acquisition upfront payment | $ 52,500,000 | |||||||
Asset acquisition potential payment upon meeting certain milestones | 260,000,000 | |||||||
Total payment for asset acquisition, including potential payments | $ 312,500,000 | |||||||
SpringWorks | Upfront Payment | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Acquired in-process research and development | 35,000,000 | |||||||
SpringWorks | Clinical, Regulatory And Commercial Milestones | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Milestone payment not yet incurred | $ 375,000,000 | |||||||
Pharma Mar, S.A. | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Tiered royalty fees percentage, maximum | 30.00% | 30.00% | ||||||
Pharma Mar, S.A. | Upfront Payment | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Acquired in-process research and development | $ 1,000,000 | $ 200,000,000 | ||||||
Pharma Mar, S.A. | Milestone Payment | FDA Approval Of Zepzelca | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Gross Carrying Amount | 1,000,000 | $ 100,000,000 | ||||||
Pharma Mar, S.A. | Milestone Triggering Payment | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Gross Carrying Amount | $ 25,000,000 | |||||||
Pharma Mar, S.A. | Accelerated And/Or Full Regulatory Approval Milestone Payments | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Milestone payment not yet incurred | $ 150,000,000 | |||||||
Pharma Mar, S.A. | Commercial Milestone Payments | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Milestone payment not yet incurred | $ 525,000,000 | $ 6,000,000 |
Business Combination, Asset A_8
Business Combination, Asset Acquisitions and Collaborations - Schedule of Asset Acquisition (Details) - Cavion Inc $ in Thousands | Aug. 12, 2019USD ($) |
Consideration | |
Upfront payment for acquisition of Cavion's outstanding shares | $ 52,500 |
Cash acquired | 397 |
Working capital adjustment | (255) |
Transaction costs | 2,829 |
Total consideration | 55,471 |
Assets Acquired and Liabilities Assumed | |
Cash | 397 |
In-process research and development | 48,275 |
Deferred tax assets | 7,995 |
Other assets and liabilities | (1,196) |
Total net assets acquired | $ 55,471 |
Business Combination, Asset A_9
Business Combination, Asset Acquisitions and Collaborations - Collaboration and License Agreement Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2019USD ($)producttarget | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Upfront payment paid | $ 0 | $ 251,250 | $ 109,975 | |
Codiak Biosciences Inc | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Number of targets/programs | target | 5 | |||
Number of projects subject to right to co-commercialize | product | 2 | |||
Upfront Payment | Codiak Biosciences Inc | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Upfront payment paid | $ 56,000 | |||
Preclinical Development Milestone Payment | Codiak Biosciences Inc | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Milestone payments not yet due or paid | 20,000 | |||
Milestone Payment | Codiak Biosciences Inc | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Milestone payments per target not yet due or paid | $ 200,000 |
Business Combination, Asset _10
Business Combination, Asset Acquisitions and Collaborations - Collaboration and Option Agreement Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Non-refundable upfront payment | $ 0 | $ 251,250 | $ 61,700 | |
ImmunoGen, Inc. | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Non-refundable upfront payment | $ 75,000 |
Cash and Available-for-Sale S_3
Cash and Available-for-Sale Securities - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 591,448 | $ 2,132,769 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 591,448 | 2,132,769 | |
Cash and Cash Equivalents | 591,448 | 1,057,769 | |
Investments | 0 | 1,075,000 | |
Interest income | 1,800 | 11,100 | $ 20,500 |
Cash | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 510,747 | 517,117 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 510,747 | 517,117 | |
Cash and Cash Equivalents | 510,747 | 517,117 | |
Investments | 0 | 0 | |
Time deposits | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,360,000 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Estimated Fair Value | 1,360,000 | ||
Cash and Cash Equivalents | 285,000 | ||
Investments | 1,075,000 | ||
Money market funds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 80,701 | 255,652 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Estimated Fair Value | 80,701 | 255,652 | |
Cash and Cash Equivalents | 80,701 | 255,652 | |
Investments | $ 0 | $ 0 |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available-for-sale securities: | ||
Available-for-sale securities | $ 591,448 | $ 2,132,769 |
Time deposits | ||
Available-for-sale securities: | ||
Available-for-sale securities | 1,360,000 | |
Money market funds | ||
Available-for-sale securities: | ||
Available-for-sale securities | 80,701 | 255,652 |
Recurring | ||
Available-for-sale securities: | ||
Totals | 81,281 | 1,627,559 |
Liabilities: | ||
Totals | 18,419 | 3,625 |
Recurring | Time deposits | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 1,360,000 |
Recurring | Money market funds | ||
Available-for-sale securities: | ||
Available-for-sale securities | 80,701 | 255,652 |
Recurring | Cross-currency interest rate contracts | ||
Liabilities: | ||
Derivative Liability | 15,232 | 0 |
Recurring | Interest rate contracts | ||
Liabilities: | ||
Derivative Liability | 0 | 2,835 |
Recurring | Foreign exchange forward contracts | ||
Available-for-sale securities: | ||
Derivative asset | 580 | 11,907 |
Liabilities: | ||
Derivative Liability | 3,187 | 790 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Available-for-sale securities: | ||
Totals | 80,701 | 255,652 |
Liabilities: | ||
Totals | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Time deposits | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Money market funds | ||
Available-for-sale securities: | ||
Available-for-sale securities | 80,701 | 255,652 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Cross-currency interest rate contracts | ||
Liabilities: | ||
Derivative Liability | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Interest rate contracts | ||
Liabilities: | ||
Derivative Liability | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Foreign exchange forward contracts | ||
Available-for-sale securities: | ||
Derivative asset | 0 | 0 |
Liabilities: | ||
Derivative Liability | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Recurring | ||
Available-for-sale securities: | ||
Totals | 580 | 1,371,907 |
Liabilities: | ||
Totals | 18,419 | 3,625 |
Significant Other Observable Inputs (Level 2) | Recurring | Time deposits | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 1,360,000 |
Significant Other Observable Inputs (Level 2) | Recurring | Money market funds | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Recurring | Cross-currency interest rate contracts | ||
Liabilities: | ||
Derivative Liability | 15,232 | 0 |
Significant Other Observable Inputs (Level 2) | Recurring | Interest rate contracts | ||
Liabilities: | ||
Derivative Liability | 0 | 2,835 |
Significant Other Observable Inputs (Level 2) | Recurring | Foreign exchange forward contracts | ||
Available-for-sale securities: | ||
Derivative asset | 580 | 11,907 |
Liabilities: | ||
Derivative Liability | $ 3,187 | $ 790 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Aug. 15, 2021 | Apr. 29, 2021 | Dec. 31, 2020 | Feb. 15, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Equity securities without readily determinable value, fair value | $ 5 | $ 4.5 | ||||
Convertible Debt | 2021 Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Interest rate (as a percent) | 1.875% | |||||
Convertible Debt | 2024 Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Interest rate (as a percent) | 1.50% | 1.50% | ||||
Convertible Debt | 2026 Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Interest rate (as a percent) | 2.00% | |||||
Senior Secured Debt | Senior Notes Due 2029 | Jazz Securities Designated Activity Company | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Interest rate (as a percent) | 4.375% | 4.375% | ||||
Line of Credit | 2021 Credit Agreement, Dollar Term Loan | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Interest rate (as a percent) | 4.00% | |||||
Line of Credit | 2021 Credit Agreement, Euro Term Loan | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Interest rate (as a percent) | 4.43% | |||||
Significant Other Observable Inputs (Level 2) | Convertible Debt | 2024 Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Fair value of exchangeable senior notes | $ 576 | |||||
Significant Other Observable Inputs (Level 2) | Convertible Debt | 2026 Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Fair value of exchangeable senior notes | 1,100 | |||||
Significant Other Observable Inputs (Level 2) | Senior Secured Debt | Senior Notes Due 2029 | Jazz Securities Designated Activity Company | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Fair value of secured debt | 1,600 | |||||
Significant Other Observable Inputs (Level 2) | Line of Credit | 2021 Credit Agreement, Dollar Term Loan | Borrowings under revolving credit facility | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Fair value of lines of credit | 3,100 | |||||
Significant Other Observable Inputs (Level 2) | Line of Credit | 2021 Credit Agreement, Euro Term Loan | Borrowings under revolving credit facility | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Fair value of lines of credit | $ 236 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Cross-currency interest rate contracts | ||
Derivative [Line Items] | ||
Hedge loss to be reclassified | $ 100,000 | |
Derivatives designated as hedging instruments | Cross-currency interest rate contracts | ||
Derivative [Line Items] | ||
Notional amount | 251,000,000 | |
Derivatives not designated as hedging instruments | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Notional amount | $ 347,200,000 | $ 357,400,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Cross-Currency Loss Derivative Instruments (Details) - Cross-currency interest rate contracts - Derivatives designated as hedging instruments $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Loss recognized in accumulated other comprehensive income (loss), net of tax | $ (375) |
Loss reclassified from accumulated other comprehensive income (loss) to foreign exchange loss, net of tax | 246 |
Loss recognized in foreign exchange loss | $ 35,885 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Foreign Exchange Gain (Loss) Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives not designated as hedging instruments | Foreign exchange forward contracts | |||
Derivative [Line Items] | |||
Gain (loss) recognized in foreign exchange loss | $ (19,585) | $ 19,843 | $ (6,192) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Gains and Losses on Derivative Instruments (Details) - Interest rate contracts - Cash Flow Hedges - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Loss recognized in accumulated other comprehensive income (loss), net of tax | $ (14) | $ (4,543) | $ (3,903) |
Loss (gain) reclassified from accumulated other comprehensive income (loss) to interest expense, net of tax | $ 2,482 | $ 3,401 | $ (979) |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Fair Value of Outstanding Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 580 | $ 11,907 |
Liability Derivatives | 18,419 | 3,625 |
Derivatives designated as hedging instruments | Cross-currency interest rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | |
Derivatives designated as hedging instruments | Cross-currency interest rate contracts | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 15,232 | |
Derivatives designated as hedging instruments | Interest rate contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | |
Derivatives designated as hedging instruments | Interest rate contracts | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 2,835 | |
Derivatives not designated as hedging instruments | Foreign exchange forward contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 580 | 11,907 |
Derivatives not designated as hedging instruments | Foreign exchange forward contracts | Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 3,187 | $ 790 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Offsetting Assets and Liabilities (Details) - Pro Forma - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative assets | ||
Gross Amounts of Recognized Assets/ Liabilities | $ 580 | $ 11,907 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet | 580 | 11,907 |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Derivative Financial Instruments | (567) | (2,207) |
Cash Collateral Received (Pledged) | 0 | 0 |
Net Amount | 13 | 9,700 |
Derivative liabilities | ||
Gross Amounts of Recognized Assets/ Liabilities | (18,419) | (3,625) |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheet | (18,419) | (3,625) |
Gross Amounts Not Offset in the Consolidated Balance Sheet | ||
Derivative Financial Instruments | 567 | 2,207 |
Cash Collateral Received (Pledged) | 0 | 0 |
Net Amount | $ (17,852) | $ (1,418) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Raw materials | $ 21,550 | $ 16,003 |
Work in process | 886,849 | 45,758 |
Finished goods | 164,322 | 33,635 |
Total inventories | 1,072,721 | $ 95,396 |
GW Pharmaceuticals plc | ||
Inventory [Line Items] | ||
Inventory, step-up value | $ 811,300 |
Other Current Assets (Details)
Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Current Assets [Abstract] | ||
Deferred charge for income taxes on intercompany profit | $ 203,480 | $ 114,234 |
Other | 48,912 | 38,257 |
Total other current assets | $ 252,392 | $ 152,491 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross and finance lease right out use asset before accumulated depreciation and amortization | $ 342,208 | $ 195,523 | |
Less accumulated depreciation and amortization | (85,371) | (67,588) | |
Property, plant and equipment and finance lease right-of-use asset, net | 256,837 | 127,935 | |
Depreciation and amortization expense | 26,700 | 18,700 | $ 15,300 |
Construction-in-progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross and finance lease right out use asset before accumulated depreciation and amortization | 86,511 | 7,262 | |
Manufacturing equipment and machinery | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross and finance lease right out use asset before accumulated depreciation and amortization | 69,079 | 33,465 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross and finance lease right out use asset before accumulated depreciation and amortization | 66,318 | 54,113 | |
Land and buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross and finance lease right out use asset before accumulated depreciation and amortization | 64,008 | 47,555 | |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross and finance lease right out use asset before accumulated depreciation and amortization | 25,646 | 22,781 | |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross and finance lease right out use asset before accumulated depreciation and amortization | 16,234 | 18,749 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross and finance lease right out use asset before accumulated depreciation and amortization | $ 14,412 | $ 11,598 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Gross Carrying Amount of Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | $ 958,303 |
Goodwill arising from the GW Acquisition | 933,234 |
Foreign exchange | (63,928) |
Goodwill, end of period | $ 1,827,609 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Gross Carrying Amounts and Net Book Values of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,210,692 | $ 3,395,214 |
Accumulated Amortization | (1,213,350) | (1,200,163) |
Total | 6,997,342 | 2,195,051 |
Intangible assets, gross | 8,365,678 | 3,395,214 |
Intangible assets, net | 7,152,328 | 2,195,051 |
Acquired IPR&D assets | ||
Finite-Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Acquired IPR&D assets | $ 154,986 | 0 |
Acquired developed technologies | ||
Finite-Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Remaining Weighted- Average Useful Life (In years) | 11 years 4 months 24 days | |
Gross Carrying Amount | $ 8,195,675 | 3,379,162 |
Accumulated Amortization | (1,198,333) | (1,184,111) |
Total | $ 6,997,342 | 2,195,051 |
Manufacturing contracts | ||
Finite-Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Remaining Weighted- Average Useful Life (In years) | 0 years | |
Gross Carrying Amount | $ 12,124 | 13,135 |
Accumulated Amortization | (12,124) | (13,135) |
Total | $ 0 | 0 |
Trademarks | ||
Finite-Lived and Indefinite Lived Intangible Assets [Line Items] | ||
Remaining Weighted- Average Useful Life (In years) | 0 years | |
Gross Carrying Amount | $ 2,893 | 2,917 |
Accumulated Amortization | (2,893) | (2,917) |
Total | $ 0 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 627,866 | |
2023 | 627,866 | |
2024 | 627,866 | |
2025 | 627,866 | |
2026 | 627,866 | |
Thereafter | 3,858,012 | |
Total | $ 6,997,342 | $ 2,195,051 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Rebates and other sales deductions | $ 215,397 | $ 127,534 |
Employee compensation and benefits | 158,870 | 102,601 |
Accrued interest | 48,640 | 5,722 |
Clinical trial accruals | 25,612 | 9,108 |
Accrued milestones | 25,000 | 0 |
Consulting and professional services | 22,507 | 6,660 |
Selling and marketing accruals | 21,566 | 6,742 |
Accrued royalties | 20,345 | 15,230 |
Derivative instrument liabilities | 18,419 | 3,625 |
Inventory-related accruals | 16,166 | 9,809 |
Sales return reserve | 15,814 | 18,368 |
Current portion of lease liabilities | 15,763 | 14,457 |
Accrued construction-in-progress | 2,894 | 1,119 |
Other | 59,311 | 31,757 |
Total accrued liabilities | $ 666,304 | $ 352,732 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Principal amount | $ 6,395,458 | |
Total debt | 6,049,943 | $ 2,094,838 |
Less current portion | 31,000 | 246,322 |
Total long-term debt | 6,018,943 | 1,848,516 |
Convertible Debt | 2021 Notes | ||
Debt Instrument [Line Items] | ||
Principal amount | 0 | 218,812 |
Unamortized discount and debt issuance costs | 0 | (5,883) |
Total debt | 0 | 212,929 |
Convertible Debt | 2024 Notes | ||
Debt Instrument [Line Items] | ||
Principal amount | 575,000 | 575,000 |
Unamortized discount and debt issuance costs | (71,237) | (95,275) |
Total debt | 503,763 | 479,725 |
Convertible Debt | 2026 Notes | ||
Debt Instrument [Line Items] | ||
Principal amount | 1,000,000 | 1,000,000 |
Unamortized discount and debt issuance costs | (150,730) | (179,518) |
Total debt | 849,270 | 820,482 |
Convertible Debt | Senior Notes Due 2029 | ||
Debt Instrument [Line Items] | ||
Total debt | 1,473,810 | 0 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Total debt | $ 3,223,100 | $ 581,702 |
Debt - Credit Agreement Narrati
Debt - Credit Agreement Narrative (Details) € in Millions, $ in Millions | May 05, 2021USD ($) | Sep. 30, 2021 | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | May 31, 2021USD ($) | May 31, 2021EUR (€) |
Term Loan | Credit Agreement June 2015 | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of debt | $ 575.9 | |||||
Line of Credit | Term Loan Facility | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.50% | |||||
Line of Credit | Term Loan Facility | LIBOR or EURIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 3.50% | |||||
Line of Credit | 2021 Credit Agreement, Dollar Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of debt | $ 502 | € 416.7 | ||||
Interest rate (as a percent) | 4.00% | |||||
Line of credit facility, interest rate at period end (as a percent) | 4.55% | |||||
Debt instrument, redemption price, percentage of principal amount redeemed (as a percent) | 1.00% | |||||
Face amount | $ 3,100 | $ 3,100 | ||||
Line of Credit | 2021 Credit Agreement, Dollar Term Loan | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Line of Credit | 2021 Credit Agreement, Euro Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate (as a percent) | 4.43% | |||||
Line of credit facility, interest rate at period end (as a percent) | 4.93% | |||||
Face amount | € | € 625 | |||||
Line of Credit | Borrowings under revolving credit facility | 2021 Credit Agreement, Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Remaining borrowing capacity | $ 500 | |||||
Debt covenant, revolving credit facility, outstanding amount threshold | $ 50 | |||||
Line of Credit | Borrowings under revolving credit facility | 2021 Credit Agreement, Revolving Credit Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, commitment fee percentage (as a percentage) | 0.40% | |||||
Line of Credit | Borrowings under revolving credit facility | 2021 Credit Agreement, Revolving Credit Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, commitment fee percentage (as a percentage) | 0.50% | |||||
Line of Credit | Borrowings under revolving credit facility | 2021 Credit Agreement, Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.75% | |||||
Line of Credit | Borrowings under revolving credit facility | 2021 Credit Agreement, Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 3.25% | |||||
Line of Credit | Borrowings under revolving credit facility | 2021 Credit Agreement, Revolving Credit Facility | Prime Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
Line of Credit | Borrowings under revolving credit facility | 2021 Credit Agreement, Revolving Credit Facility | Prime Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.25% |
Debt - 2029 Senior Secured Note
Debt - 2029 Senior Secured Notes Narrative (Details) - Senior Notes Due 2029 - Senior Secured Debt - Jazz Securities Designated Activity Company | Apr. 29, 2021 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 4.375% | 4.375% |
Effective interest rate (as a percent) | 4.64% | |
Debt Instrument, Redemption, Period One | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 100.00% | |
Debt Instrument, Redemption, Period Two | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 104.375% | |
Percentage of principal subject to redemption | 40.00% | |
Debt Instrument, Redemption, Period Three | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 103.00% | |
Percentage of principal subject to redemption | 10.00% | |
Debt Instrument, Redemption, Period Four | ||
Debt Instrument [Line Items] | ||
Redemption price, percentage | 101.00% |
Debt - Exchangeable Senior Note
Debt - Exchangeable Senior Notes Due 2026 Narrative (Details) - Convertible Debt | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2014USD ($) | Jun. 30, 2021 | Jun. 30, 2020USD ($)d$ / shares | Dec. 31, 2021USD ($) | Aug. 15, 2021$ / shares | |
2026 Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 1,000,000,000 | ||||
Interest rate (as a percent) | 2.00% | ||||
Percentage of conversion price | 130.00% | ||||
Number of trading days | d | 20 | ||||
Number of consecutive days in trading period | d | 30 | ||||
Conversion rate of shares (in shares per dollar) | 0.0064182 | ||||
Debt conversion price (in dollars per share) | $ / shares | $ 155.81 | ||||
Effective interest rate (as a percent) | 5.98% | ||||
Debt term | 6 years | ||||
If-converted value in excess of principal | $ 59,300,000 | ||||
Debt issuance cost | 18,600,000 | ||||
Carrying value of the equity component | $ 176,300,000 | ||||
2021 Notes | |||||
Debt Instrument [Line Items] | |||||
Debt repurchased amount | $ 332,900,000 | ||||
Interest rate (as a percent) | 1.875% | ||||
Conversion rate of shares (in shares per dollar) | 0.0050057 | ||||
Debt conversion price (in dollars per share) | $ / shares | $ 199.77 | ||||
Effective interest rate (as a percent) | 6.40% | ||||
Debt issuance cost | $ 16,100,000 |
Debt - Exchangeable Senior No_2
Debt - Exchangeable Senior Notes Due 2024 Narrative (Details) | 12 Months Ended | |||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018 | Dec. 31, 2017USD ($)d$ / shares | Feb. 15, 2018 | |
Debt Instrument [Line Items] | ||||||
Repayments under revolving credit facility | $ 0 | $ 500,000,000 | $ 0 | |||
Borrowings under revolving credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Repayments under revolving credit facility | $ 500,000,000 | |||||
2024 Notes | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 575,000,000 | |||||
Interest rate (as a percent) | 1.50% | 1.50% | ||||
Percentage of conversion price | 130.00% | |||||
Number of trading days | d | 20 | |||||
Number of consecutive days in trading period | d | 30 | |||||
Conversion rate of shares (in shares per dollar) | 0.0045659 | |||||
Debt conversion price (in dollars per share) | $ / shares | $ 219.02 | |||||
Effective interest rate (as a percent) | 6.80% | |||||
Debt term | 7 years | |||||
Debt issuance cost | $ 15,600,000 | |||||
Carrying value of the equity component | $ 149,800,000 | $ 149,800,000 |
Debt - Exchangeable Senior No_3
Debt - Exchangeable Senior Notes Due 2021 Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 15, 2021 | Aug. 31, 2014 | |
Debt Instrument [Line Items] | ||||||
Interest expense, net | $ 89,900 | $ 87,600 | $ 62,500 | |||
Jazz Investments I Limited | ||||||
Debt Instrument [Line Items] | ||||||
Ownership percentage (as a percent) | 100.00% | |||||
2021 Notes | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate (as a percent) | 1.875% | |||||
Debt conversion price (in dollars per share) | $ 199.77 | |||||
Effective interest rate (as a percent) | 6.40% | |||||
Debt issuance cost | $ 16,100 | |||||
Repayment of debt | $ 218,800 | $ 356,200 |
Debt - Exchangeable Senior No_4
Debt - Exchangeable Senior Notes Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Long-term debt outstanding | $ 6,395,458 | ||
Interest expense, net | 89,900 | $ 87,600 | $ 62,500 |
2021 Notes | Convertible Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt outstanding | $ 0 | $ 218,812 | |
Jazz Investments I Limited | |||
Debt Instrument [Line Items] | |||
Ownership percentage (as a percent) | 100.00% |
Debt - Schedule of Debt Maturit
Debt - Schedule of Debt Maturities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2022 | $ 31,000 |
2023 | 31,000 |
2024 | 606,000 |
2025 | 31,000 |
2026 | 1,031,000 |
Thereafter | 4,665,458 |
Long-term debt outstanding | $ 6,395,458 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease Cost | |||
Operating lease cost | $ 23,869 | $ 21,755 | $ 23,087 |
Short-term lease cost | 5,540 | 4,079 | 2,465 |
Variable lease cost | 10 | 3 | 5 |
Sublease income | 0 | (224) | (634) |
Finance Lease Cost | |||
Amortization of leased asset | 324 | 0 | 0 |
Interest on lease liabilities | 295 | 0 | 0 |
Net lease cost | $ 30,038 | $ 25,613 | $ 24,923 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Operating lease assets | $ 86,586 | $ 129,169 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment and finance lease right-of-use asset, net | Property, plant and equipment and finance lease right-of-use asset, net |
Finance lease assets | $ 5,738 | $ 0 |
Total lease assets | $ 92,324 | $ 129,169 |
Liabilities | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities | Accrued liabilities |
Operating lease liabilities | $ 15,357 | $ 14,457 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Finance lease liabilities | $ 406 | $ 0 |
Operating lease liabilities, less current portion | $ 87,200 | $ 140,035 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities | Other non-current liabilities |
Finance lease liabilities | $ 6,269 | $ 0 |
Total lease liabilities | $ 109,232 | $ 154,492 |
Leases - Weighted Average Terms
Leases - Weighted Average Terms and Discount Rates (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted-average remaining lease term (years) | ||
Operating leases | 6 years 6 months | 8 years 8 months 12 days |
Finance leases | 12 years 10 months 24 days | 0 years |
Weighted-average discount rate | ||
Operating leases | 5.20% | 5.30% |
Finance leases | 7.40% | 0.00% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash outflows from operating leases | $ 24,847 | $ 21,678 | $ 17,066 |
Operating cash outflows from finance leases | 625 | 0 | 0 |
Financing cash outflows from finance leases | 324 | 0 | 0 |
Non-cash operating activities: | |||
Operating lease assets obtained in exchange for new operating lease liabilities | 8,188 | 1,763 | 153,448 |
Finance lease assets obtained in exchange for new finance lease liabilities | 650 | 0 | 0 |
De-recognition of operating lease asset on lease assignment | 56,968 | 0 | 0 |
De-recognition of operating lease liability on lease assignment | $ 68,064 | $ 0 | $ 0 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Operating Leases | |
2022 | $ 20,373 |
2023 | 19,426 |
2024 | 20,996 |
2025 | 14,565 |
2026 | 12,741 |
Thereafter | 34,560 |
Total lease payments | 122,661 |
Less imputed interest | (20,104) |
Present value of lease liabilities | 102,557 |
Finance Leases | |
2022 | 876 |
2023 | 872 |
2024 | 872 |
2025 | 872 |
2026 | 872 |
Thereafter | 6,135 |
Total lease payments | 10,499 |
Less imputed interest | (3,824) |
Present value of lease liabilities | $ 6,675 |
Commitments and Contingencies -
Commitments and Contingencies - Leases and Other Commitments (Details) $ in Millions | Mar. 17, 2021litigationCase | Jun. 23, 2020litigationCase | Jul. 31, 2021patent | Jun. 30, 2021 | Dec. 31, 2021USD ($) | May 13, 2021patent |
Loss Contingencies [Line Items] | ||||||
Noncancelable purchase commitments due within one year | $ | $ 73.2 | |||||
Teamsters And GEHA Lawsuits | ||||||
Loss Contingencies [Line Items] | ||||||
Class action lawsuits filed | 2 | |||||
Farrell Lawsuit And Levy Lawsuit | ||||||
Loss Contingencies [Line Items] | ||||||
Class action lawsuits filed | 2 | |||||
GW Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Class action lawsuits filed | 10 | |||||
Avadel Pharmaceuticals plc Lawsuit | ||||||
Loss Contingencies [Line Items] | ||||||
Infringed patents suit, number of patents | patent | 5 | |||||
Lupin Lawsuit | ||||||
Loss Contingencies [Line Items] | ||||||
Infringed patents suit, number of patents | patent | 10 | |||||
FDA stay of approval period | 30 months | |||||
Lupin Lawsuit | Xywav | ||||||
Loss Contingencies [Line Items] | ||||||
FDA recognition of orphan drug exclusivity, period | 7 years |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)$ / sharesshares | |
Stockholders' Equity Note [Line Items] | ||
Cash dividends declared or paid | $ 0 | $ 0 |
Maximum allowable dividend and restricted payments | 30,000,000 | |
Maximum allowable restricted payments | $ 100,000,000 | |
Maximum secured leverage ratio, for restricted payments to be allowed | 3 | |
Minimum total leverage ratio, allowable restricted payments | 2 | |
Ordinary Shares | November 2016 Share Repurchase Program | ||
Stockholders' Equity Note [Line Items] | ||
Total amount authorized for repurchase of shares under share repurchase program | $ 1,500,000,000 | |
Stock repurchased | 0 | $ 146,500,000 |
Stock repurchased (in shares) | shares | 1,200,000 | |
Stock repurchased, average cost per share (in dollars per share) | $ / shares | $ 121.98 | |
Remaining amount authorized for repurchase of shares | $ 431,200,000 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Authorized But Unissued Ordinary Shares (Details) - shares shares in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Authorized but unissued ordinary shares reserved (in shares) | 28,140 | 24,564 |
2011 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Authorized but unissued ordinary shares reserved (in shares) | 22,195 | 21,070 |
2007 Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Authorized but unissued ordinary shares reserved (in shares) | 3,285 | 2,600 |
GW Incentive Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Authorized but unissued ordinary shares reserved (in shares) | 1,853 | 0 |
Amended and Restated 2007 Non-Employee Directors Stock Award Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Authorized but unissued ordinary shares reserved (in shares) | 807 | 889 |
2007 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Authorized but unissued ordinary shares reserved (in shares) | 0 | 5 |
Comprehensive Income (Loss) - C
Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 3,659,745 | $ 3,110,981 | $ 2,757,422 |
Other comprehensive income (loss) before reclassifications | (268,736) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 2,728 | ||
Other comprehensive income (loss), net | (266,008) | 89,041 | (25,602) |
Ending balance | 3,965,191 | 3,659,745 | 3,110,981 |
Net Unrealized Loss From Hedging Activities | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (2,467) | ||
Other comprehensive income (loss) before reclassifications | (389) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 2,728 | ||
Other comprehensive income (loss), net | 2,339 | ||
Ending balance | (128) | (2,467) | |
Foreign Currency Translation Adjustments | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (131,885) | ||
Other comprehensive income (loss) before reclassifications | (268,347) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | ||
Other comprehensive income (loss), net | (268,347) | ||
Ending balance | (400,232) | (131,885) | |
Total Accumulated Other Comprehensive Loss | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (134,352) | (223,393) | (197,791) |
Ending balance | $ (400,360) | $ (134,352) | $ (223,393) |
Net Income (Loss) per Ordinar_3
Net Income (Loss) per Ordinary Share - Basic and Diluted Net Income (Loss) per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net income (loss) | $ (329,668) | $ 238,616 | $ 523,367 |
Denominator: | |||
Weighted-average ordinary shares used in per share calculations - basic (in shares) | 59,694 | 55,712 | 56,749 |
Dilutive effect of employee equity incentive and purchase plans (in shares) | 0 | 805 | 801 |
Weighted-average ordinary shares used in per share calculations - diluted (in shares) | 59,694 | 56,517 | 57,550 |
Net income (loss) per ordinary share : | |||
Basic (in dollars per share) | $ (5.52) | $ 4.28 | $ 9.22 |
Diluted (in dollars per share) | $ (5.52) | $ 4.22 | $ 9.09 |
Net Income (Loss) per Ordinar_4
Net Income (Loss) per Ordinary Share - Weighted-Average Ordinary Shares Excluded from Computation of Diluted Net Income per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Exchangeable Senior Notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Ordinary shares (in shares) | 9,725 | 8,077 | 5,504 |
Employee equity incentive and purchase plans | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Ordinary shares (in shares) | 3,927 | 4,780 | 5,000 |
Segment and Other Information_2
Segment and Other Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating business segments | 1 |
Segment and Other Information_3
Segment and Other Information - Total Long-Lived Assets by Location (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 343,423 | $ 257,104 |
Ireland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 65,478 | 71,906 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 176,778 | 3,438 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 76,290 | 157,282 |
Italy | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 16,698 | 16,008 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 8,179 | $ 8,470 |
Revenues - Summary of Disaggreg
Revenues - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 3,094,238 | $ 2,363,567 | $ 2,161,761 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,820,242 | 2,144,541 | 1,964,161 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 230,158 | 175,208 | 150,201 |
All other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 43,838 | 43,818 | 47,399 |
Product sales, net | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 3,079,001 | 2,346,660 | 2,135,601 |
Total Neuroscience | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,335,393 | 1,785,355 | 1,646,239 |
Total Oxybate | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,801,127 | 1,757,022 | 1,642,525 |
Xyrem | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,265,830 | 1,741,758 | 1,642,525 |
Xywav | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 535,297 | 15,264 | 0 |
Epidiolex/Epidyolex | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 463,645 | 0 | 0 |
Sunosi | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 57,914 | 28,333 | 3,714 |
Sativex | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 12,707 | 0 | 0 |
Total Oncology | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 733,810 | 554,463 | 471,810 |
Zepzelca | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 246,808 | 90,380 | 0 |
Rylaze | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 85,629 | 0 | 0 |
Vyxeos | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 134,060 | 121,105 | 121,407 |
Defitelio/defibrotide | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 197,931 | 195,842 | 172,938 |
Erwinaze/Erwinase | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 69,382 | 147,136 | 177,465 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 9,798 | 6,842 | 17,552 |
Royalties and contract revenues | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 15,237 | $ 16,907 | $ 26,160 |
Revenues - Summary of the Perce
Revenues - Summary of the Percentage of Total Revenues from Customers (Details) - Total Revenues - Customer concentration risk | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
ESSDS | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 60.00% | 74.00% | 76.00% |
McKesson | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.00% | 12.00% | 14.00% |
Revenues - Narrative (Details)
Revenues - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)agreement | |
Summary Of Deferred Revenue [Line Items] | |
Contract revenue recognized | $ 2,788 |
Nippon Shinyaku | |
Summary Of Deferred Revenue [Line Items] | |
Number of license, development, and commercialization agreements | agreement | 2 |
Contract revenue recognized | $ 2,800 |
Revenue, performance obligation, description of timing | The deferred revenue balances are being recognized over an average of four years representing the period we expect to perform our research and developments obligations under each agreement. |
Minimum | |
Summary Of Deferred Revenue [Line Items] | |
Payment terms, range | 30 days |
Maximum | |
Summary Of Deferred Revenue [Line Items] | |
Payment terms, range | 45 days |
Revenues - Summary of Contract
Revenues - Summary of Contract Liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Change In Contract With Customer, Liability [Roll Forward] | |
Balance as of December 31, 2020 | $ 4,861 |
Additions | 483 |
Amount recognized within royalties and contract revenues | (2,788) |
Balance as of December 31 2021 | $ 2,556 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) | Jan. 01, 2022shares | May 05, 2021 | Jan. 18, 2012shares | Jan. 17, 2012 | Oct. 24, 2011 | Aug. 15, 2010shares | Jul. 31, 2020shares | Dec. 31, 2011periodshares | Jun. 30, 2021$ / shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Recognized tax benefits related to share options exercised | $ | $ 9,300,000 | $ 3,900,000 | $ 5,100,000 | |||||||||
Aggregate intrinsic value of share options exercised | $ | 51,800,000 | $ 26,400,000 | $ 26,200,000 | |||||||||
Share Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Unrecognized compensation cost related to unvested stock options | $ | $ 29,200,000 | |||||||||||
Unrecognized compensation cost, weighted-average period of recognition (in years) | 1 year 9 months 18 days | |||||||||||
Grant date fair value | $ / shares | $ 51.39 | $ 34.68 | $ 42.09 | |||||||||
Nominal Strike Price Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Unrecognized compensation cost related to unvested stock options | $ | $ 8,100,000 | |||||||||||
Unrecognized compensation cost, weighted-average period of recognition (in years) | 1 year 1 month 6 days | |||||||||||
Grant date fair value | $ / shares | $ 170.82 | |||||||||||
Restricted Stock Units (RSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period (in years) | 4 years | |||||||||||
Unrecognized compensation cost, weighted-average period of recognition (in years) | 2 years 7 months 6 days | |||||||||||
PRSUs weighted-average grant date fair value (in dollars per share) | $ / shares | $ 168.10 | |||||||||||
Number of RSUs released (in shares) | 692,000 | |||||||||||
Shares issued (in shares) | 465,000 | |||||||||||
Shares withheld for tax purposes (in shares) | 227,000 | |||||||||||
Total fair value of shares vested | $ | $ 109,200,000 | $ 53,500,000 | $ 52,000,000 | |||||||||
Unrecognized compensation cost related to unvested RSUs | $ | $ 238,200,000 | |||||||||||
Performance-Based Restricted Stock Units (PRSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Unrecognized compensation cost, weighted-average period of recognition (in years) | 2 years | |||||||||||
Unrecognized compensation cost related to grants under PRSUs | $ | $ 26,400,000 | |||||||||||
PRSUs weighted-average grant date fair value (in dollars per share) | $ / shares | $ 190.81 | |||||||||||
GW Incentive Plans | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Requisite service periods (in years) | 2 years | |||||||||||
Grants expiration period (in years) | 10 years | |||||||||||
Shares authorized for issuance (in shares) | 1,864,475 | |||||||||||
GW Incentive Plans, Post Acquisition Grants | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Requisite service periods (in years) | 4 years | |||||||||||
2011 Equity Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Requisite service periods (in years) | 4 years | |||||||||||
Shares authorized for issuance (in shares) | 32,065,082 | |||||||||||
2011 Equity Incentive Plan | Subsequent Event | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Increase in shares reserved under plan (in shares) | 2,771,906 | |||||||||||
2011 Equity Incentive Plan | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Grants expiration period (in years) | 10 years | |||||||||||
2011 Equity Incentive Plan, Option One | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares authorized for issuance, annual automatic increase, maximum percentage of outstanding shares | 4.50% | |||||||||||
2011 Equity Incentive Plan, Option Two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Increase in shares reserved under plan (in shares) | 5,000,000 | |||||||||||
2007 Equity Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares authorized for issuance (in shares) | 1,000,000 | |||||||||||
2007 Equity Incentive Plan | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Requisite service periods (in years) | 1 year | 3 years | ||||||||||
2007 Equity Incentive Plan | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Requisite service periods (in years) | 3 years | 5 years | ||||||||||
Grants expiration period (in years) | 10 years | 10 years | ||||||||||
2007 Employee Stock Purchase Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares authorized for issuance (in shares) | 6,105,282 | |||||||||||
ESPP discount rate (as a percent) | 15.00% | |||||||||||
ESPP offering period (in months) | 24 months | |||||||||||
Number of purchase periods within each ESPP offering period | period | 4 | |||||||||||
Number of shares available for issuance (in shares) | 175,000 | |||||||||||
Unrecognized compensation cost, weighted-average period of recognition (in years) | 1 year 1 month 6 days | |||||||||||
Unrecognized compensation cost related to grants under PRSUs | $ | $ 4,400,000 | |||||||||||
2007 Employee Stock Purchase Plan | Subsequent Event | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Increase in shares reserved under plan (in shares) | 923,968 | |||||||||||
2007 Employee Stock Purchase Plan Option One | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares authorized for issuance, annual automatic increase, maximum percentage of outstanding shares | 1.50% | |||||||||||
2007 Employee Stock Purchase Plan Option Two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Increase in shares reserved under plan (in shares) | 1,000,000 | |||||||||||
2007 Directors Award Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Increase in shares authorized for issuance under deferred compensation plan (in shares) | 500,000 | |||||||||||
Shares authorized for issuance under deferred compensation plan (in shares) | 1,403,938 | |||||||||||
2007 Directors Award Plan | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Requisite service periods (in years) | 1 year | |||||||||||
2007 Directors Award Plan | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Requisite service periods (in years) | 3 years | |||||||||||
Grants expiration period (in years) | 10 years | |||||||||||
Directors Deferred Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Increase in shares reserved under plan (in shares) | 200,000 | |||||||||||
Recorded expense related to retainer fees earned and deferred | $ | $ 0 | $ 0 | $ 0 | |||||||||
Initial Grant | 2007 Directors Award Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period (in years) | 3 years | |||||||||||
Annual Automatic Grant | 2007 Directors Award Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period (in years) | 1 year |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Weighted-Average Assumptions Used in Black-Scholes Option Pricing Model and Resulting Weighted-Average Grant Date Fair Value of Share Options Granted (Details) - Share Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value (in dollars per share) | $ 51.39 | $ 34.68 | $ 42.09 |
Volatility (as a percent) | 37.00% | 33.00% | 32.00% |
Expected term (in years) | 4 years 6 months | 4 years 7 months 6 days | 4 years 6 months |
Range of risk-free rates, minimum (as a percent) | 0.40% | 0.20% | 1.30% |
Range of risk-free rates, maximum (as a percent) | 0.80% | 1.60% | 2.50% |
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation - Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense, pre-tax | $ 189,006 | $ 120,998 | $ 110,563 |
Income tax benefit from share-based compensation expense | (33,958) | (12,838) | (15,712) |
Total share-based compensation expense, net of tax | 155,048 | 108,160 | 94,851 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense, pre-tax | 135,285 | 84,384 | 78,697 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense, pre-tax | 43,758 | 29,242 | 25,229 |
Cost of product sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total share-based compensation expense, pre-tax | $ 9,963 | $ 7,372 | $ 6,637 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Share Option Plans Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2021 | |
Shares Subject to Outstanding Options [Roll Forward] | ||
Outstanding, beginning balance (in shares) | 5,279 | |
Options granted (in shares) | 110 | |
Options exercised (in shares) | (1,041) | |
Options forfeited (in shares) | (137) | |
Options expired (in shares) | (90) | |
Outstanding, ending balance (in shares) | 4,121 | |
Vested and expected to vest (in shares) | 4,039 | |
Exercisable, balance (in shares) | 3,270 | |
Weighted Average Exercise Price (in dollars per share) [Roll Forward] | ||
Outstanding, beginning balance (in dollars per share) | $ 130.51 | |
Options granted (in dollars per share) | 164.45 | |
Options exercised (in dollars per share) | 114.33 | |
Options forfeited (in dollars per share) | 139.24 | |
Options expired (in dollars per share) | 164.45 | |
Outstanding, ending balance (in dollars per share) | 134.48 | |
Vested and expected to vest (in dollars per share) | 134.56 | |
Exercisable (in dollars per share) | $ 135.06 | |
Weighted- Average Remaining Contractual Term (Years) | ||
Weighted-average remaining contractual term, outstanding (in years) | 5 years 7 months 6 days | |
Weighted-average remaining contractual term, vested and expected to vest, exercisable (in years) | 5 years 7 months 6 days | |
Weighted-average remaining contractual term, exercisable (in years) | 5 years 1 month 6 days | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, outstanding | $ 30,696 | |
Aggregate intrinsic value, vested and expected to vest | 30,164 | |
Aggregate intrinsic value, exercisable | $ 26,248 | |
Nominal Strike Price Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant date fair value | $ 170.82 | |
Shares Subject to Outstanding Options [Roll Forward] | ||
Outstanding, beginning balance (in shares) | 0 | |
Options granted (in shares) | 124 | |
Options exercised (in shares) | (1) | |
Options forfeited (in shares) | (7) | |
Outstanding, ending balance (in shares) | 116 | |
Vested and expected to vest (in shares) | 110 | |
Exercisable, balance (in shares) | 22 | |
Weighted Average Exercise Price (in dollars per share) [Roll Forward] | ||
Outstanding, beginning balance (in dollars per share) | $ 0 | |
Options granted (in dollars per share) | 0.02 | |
Options exercised (in dollars per share) | 0.02 | |
Options forfeited (in dollars per share) | 0.02 | |
Outstanding, ending balance (in dollars per share) | 0.02 | |
Vested and expected to vest (in dollars per share) | 0.02 | |
Exercisable (in dollars per share) | $ 0.02 | |
Weighted- Average Remaining Contractual Term (Years) | ||
Weighted-average remaining contractual term, outstanding (in years) | 7 years 4 months 24 days | |
Weighted-average remaining contractual term, vested and expected to vest, exercisable (in years) | 7 years 3 months 18 days | |
Weighted-average remaining contractual term, exercisable (in years) | 6 months | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value, outstanding | $ 14,803 | |
Aggregate intrinsic value, vested and expected to vest | 13,969 | |
Aggregate intrinsic value, exercisable | $ 2,846 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of RSUs Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Restricted Stock Units (RSUs) | |
Number of RSUs and PRSUs [Roll Forward] | |
Number of RSUs and PRSUs, outstanding, beginning balance (in shares) | shares | 1,878 |
Number of RSUs and PRSUs granted (in shares) | shares | 1,780 |
Number of RSUs and PRSUs released (in shares) | shares | (692) |
Number of RSUs and PRSUs forfeited (in shares) | shares | (335) |
Number of RSUs and PRSUs, outstanding, ending balance (in shares) | shares | 2,631 |
Weighted-Average Grant-Date Fair Value [Roll Forward] | |
Weighted-average grant-date fair value, outstanding, beginning balance (in dollars per share) | $ / shares | $ 125.07 |
Weighted-average grant-date fair value, RSUs and PRSUs granted (in dollars per share) | $ / shares | 168.10 |
Weighted-average grant-date fair value, RSUs and PRSUs released (in dollars per share) | $ / shares | 133.40 |
Weighted-average grant-date fair value, RSUs and PRSUs forfeited (in dollars per share) | $ / shares | 148.12 |
Weighted-average grant-date fair value, outstanding, ending balance (in dollars per share) | $ / shares | $ 149.05 |
Weighted-average remaining contractual term, outstanding | 1 year 4 months 24 days |
Aggregate intrinsic value, outstanding | $ | $ 335,224 |
Performance-Based Restricted Stock Units (PRSUs) | |
Number of RSUs and PRSUs [Roll Forward] | |
Number of RSUs and PRSUs, outstanding, beginning balance (in shares) | shares | 0 |
Number of RSUs and PRSUs granted (in shares) | shares | 224 |
Number of RSUs and PRSUs forfeited (in shares) | shares | (10) |
Number of RSUs and PRSUs, outstanding, ending balance (in shares) | shares | 214 |
Weighted-Average Grant-Date Fair Value [Roll Forward] | |
Weighted-average grant-date fair value, outstanding, beginning balance (in dollars per share) | $ / shares | $ 0 |
Weighted-average grant-date fair value, RSUs and PRSUs granted (in dollars per share) | $ / shares | 190.81 |
Weighted-average grant-date fair value, RSUs and PRSUs forfeited (in dollars per share) | $ / shares | 190.81 |
Weighted-average grant-date fair value, outstanding, ending balance (in dollars per share) | $ / shares | $ 190.81 |
Weighted-average remaining contractual term, outstanding | 2 years |
Aggregate intrinsic value, outstanding | $ | $ 27,265 |
Share-Based Compensation - Perf
Share-Based Compensation - Performance-based RSU's Narrative (Details) - Performance-Based Restricted Stock Units (PRSUs) | 1 Months Ended |
May 31, 2021 | |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Achievement target, percentage of awards granted | 0.00% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Achievement target, percentage of awards granted | 200.00% |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
United States | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Expenses related to defined contribution plans | $ 9.1 | $ 6.3 | $ 5 |
Outside United States | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Expenses related to defined contribution plans | $ 11.4 | $ 4.2 | $ 3.2 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes - Components of Income Before Income Tax Provision (Benefit) [Line Items] | |||
Ireland | $ 97,557 | $ (102,328) | $ (6,451) |
Other | 249,711 | 677 | 139,721 |
Income (loss) before income tax expense (benefit) and equity in loss of investees | (112,838) | 275,095 | 454,302 |
United Kingdom | |||
Income Taxes - Components of Income Before Income Tax Provision (Benefit) [Line Items] | |||
United Kingdom and United States | (681,291) | 3,836 | 3,304 |
United States | |||
Income Taxes - Components of Income Before Income Tax Provision (Benefit) [Line Items] | |||
United Kingdom and United States | $ 221,185 | $ 372,910 | $ 317,728 |
Income Taxes - Details of Incom
Income Taxes - Details of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | |||
Ireland | $ 25,770 | $ 19,437 | $ 51,696 |
Other | 33,222 | 39,955 | 2,265 |
Total current tax expense | 146,918 | 170,454 | 163,456 |
Deferred, exclusive of other components below | |||
Ireland | (5,388) | (32,458) | (163,626) |
Other | (28,604) | (74,278) | (38,597) |
Total deferred, exclusive of other components | (192,057) | (135,174) | (242,167) |
Deferred, change in tax rates | |||
Other | 5 | (237) | 5,406 |
Total deferred, change in tax rates | 261,255 | (1,763) | 5,557 |
Total deferred tax expense (benefit) | 69,198 | (136,937) | (236,610) |
Total income tax expense (benefit) | 216,116 | 33,517 | (73,154) |
United Kingdom | |||
Current | |||
United Kingdom and United States | (924) | 166 | 0 |
Deferred, exclusive of other components below | |||
United Kingdom and United States | (111,534) | 679 | 1,353 |
Deferred, change in tax rates | |||
United Kingdom and United States | 259,873 | (1,155) | (52) |
United States | |||
Current | |||
United Kingdom and United States | 88,850 | 110,896 | 109,495 |
Deferred, exclusive of other components below | |||
United Kingdom and United States | (46,531) | (29,117) | (41,297) |
Deferred, change in tax rates | |||
United Kingdom and United States | $ 1,377 | $ (371) | $ 203 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax expense (benefit) | $ 216,116 | $ 33,517 | $ (73,154) |
Discrete tax benefit, intra-entity intellectual property asset transfer | $ 112,300 | ||
Effective income tax rate (as a percent) | (191.50%) | 12.20% | (16.10%) |
Increase (decrease) in valuation allowance | $ 76,900 | $ 11,000 | $ 5,100 |
Deferred tax assets, valuation allowance | 154,255 | 77,342 | |
Cumulated unremitted earnings of overseas subsidiaries | 2,300,000 | ||
Additional expected tax expense if foreign earnings repatriated | 113,000 | ||
Unrecognized tax benefits, accrued interest and penalties | 4,600 | 11,300 | |
Unrecognized tax benefits that would impact the effective tax rate | 82,000 | $ 93,000 | |
GW Pharmaceuticals plc | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax expense (benefit) | $ 259,900 | ||
Ireland | |||
Operating Loss Carryforwards [Line Items] | |||
Statutory income tax rate (as a percent) | 12.50% | 12.50% | 12.50% |
Ireland | Ireland | |||
Operating Loss Carryforwards [Line Items] | |||
NOL carryforwards | $ 133,500 | ||
U.S. Federal | |||
Operating Loss Carryforwards [Line Items] | |||
NOL carryforwards | 81,600 | ||
Tax credit carryforwards | 216,500 | ||
U.S. State | |||
Operating Loss Carryforwards [Line Items] | |||
NOL carryforwards | 44,300 | ||
Tax credit carryforwards | 8,000 | ||
Foreign Tax Authorities | |||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in valuation allowance | $ 15,700 | ||
Tax credit carryforwards | 58,800 | ||
Foreign Tax Authorities | United Kingdom | |||
Operating Loss Carryforwards [Line Items] | |||
NOL carryforwards | 864,900 | ||
Foreign Tax Authorities | Malta | |||
Operating Loss Carryforwards [Line Items] | |||
NOL carryforwards | 224,300 | ||
Foreign Tax Authorities | Luxembourg | |||
Operating Loss Carryforwards [Line Items] | |||
NOL carryforwards | 45,700 | ||
French Tax Authorities | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax examination, penalties and interest expense | 19,700 | ||
Income tax examination, penalties and interest accrued | 19,700 | ||
Valuation Allowance, Operating Loss Carryforwards | |||
Operating Loss Carryforwards [Line Items] | |||
Increase (decrease) in valuation allowance | $ 81,300 | $ 6,200 | $ 6,300 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation [Abstract] | |||
Income tax expense/(benefit) at the statutory income tax rate | $ (14,105,000) | $ 34,387,000 | $ 56,788,000 |
Change in tax rate | 261,663,000 | (1,836,000) | 6,923,000 |
Deduction on subsidiary equity | (116,438,000) | (25,740,000) | (23,450,000) |
Change in valuation allowance | 81,280,000 | 6,074,000 | 14,823,000 |
Research and other tax credits | (31,069,000) | (30,836,000) | (39,776,000) |
Non-deductible acquisition-related costs | 20,929,000 | 0 | 11,738,000 |
Non-deductible compensation | 19,914,000 | 8,604,000 | 8,321,000 |
Financing costs | 14,418,000 | 7,132,000 | (7,615,000) |
Change in unrecognized tax benefits | (6,436,000) | 16,309,000 | 499,000 |
Tax deficiencies/(excess tax benefits) from share-based compensation | (5,555,000) | 5,274,000 | 537,000 |
Foreign income tax rate differential | (4,343,000) | 16,126,000 | 39,695,000 |
Foreign derived intangible income benefit | (3,416,000) | 0 | 0 |
Change in estimates | (2,653,000) | (3,604,000) | 1,156,000 |
Intra-entity transfer of intellectual property assets | 0 | 0 | (112,274,000) |
Patent box incentive benefit | 0 | 0 | (31,642,000) |
Other | 1,927,000 | 1,627,000 | 1,123,000 |
Reported income tax expense/(benefit) | $ 216,116,000 | $ 33,517,000 | $ (73,154,000) |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Assets/(Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Tax credit carryforwards | $ 284,155 | $ 258,296 |
Operating loss carryforwards | 265,156 | 68,860 |
Intangible assets | 189,959 | 173,918 |
Accrued liabilities | 84,509 | 62,561 |
Deduction on subsidiary equity carryforwards | 78,514 | 13,201 |
Indirect effects of unrecognized tax benefits | 46,876 | 48,743 |
Share-based compensation | 37,289 | 26,090 |
Lease liabilities | 15,865 | 31,787 |
Other | 65,224 | 69,289 |
Total deferred tax assets | 1,067,547 | 752,745 |
Valuation allowance | (154,255) | (77,342) |
Deferred tax assets, net of valuation allowance | 913,292 | 675,403 |
Deferred tax liabilities: | ||
Intangible assets | (1,652,297) | (448,310) |
Inventory | (181,742) | 0 |
Operating lease assets | (12,657) | (26,316) |
Other | (56,034) | (76,258) |
Total deferred tax liabilities | (1,902,730) | (550,884) |
Net of deferred tax assets and (liabilities) | $ (989,438) | |
Net of deferred tax assets and (liabilities) | $ 124,519 |
Income Taxes - Current and Non-
Income Taxes - Current and Non-current Deferred Assets/(Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 311,103 | $ 254,916 |
Deferred tax liabilities | (1,300,541) | (130,397) |
Net of deferred tax assets and (liabilities) | $ 124,519 | |
Net of deferred tax assets and (liabilities) | $ (989,438) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | |||
Balance at the beginning of the year | $ 146,557 | $ 124,319 | $ 118,213 |
Increases related to current year tax positions | 26,675 | 27,908 | 27,552 |
Increases related to prior year tax positions | 211 | 19,712 | 761 |
Decreases related to prior year tax positions | (182) | (213) | (91) |
Increases recognized through purchase accounting | 5,916 | 0 | 0 |
Decreases related to settlements with taxing authorities | (14,744) | 0 | 0 |
Lapse of the applicable statute of limitations | (26,566) | (25,169) | (22,116) |
Balance at the end of the year | $ 137,867 | $ 146,557 | $ 124,319 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 50 | $ 50 | $ 50 |
Additions charged to costs and expenses | 127 | 5 | 9 |
Other Additions | 771 | 0 | 0 |
Deductions | (650) | (5) | (9) |
Balance at end of period | 298 | 50 | 50 |
Allowance for sales discounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 144 | 113 | 76 |
Additions charged to costs and expenses | 13,196 | 1,432 | 782 |
Other Additions | 1,243 | 0 | 0 |
Deductions | (12,457) | (1,401) | (745) |
Balance at end of period | 2,126 | 144 | 113 |
Allowance for chargebacks | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 5,293 | 1,133 | 408 |
Additions charged to costs and expenses | 91,425 | 45,550 | 41,864 |
Other Additions | 1,322 | 0 | 0 |
Deductions | (86,651) | (41,390) | (41,139) |
Balance at end of period | 11,389 | 5,293 | 1,133 |
Deferred tax asset valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 77,342 | 66,307 | 61,237 |
Additions charged to costs and expenses | 82,820 | 6,576 | 20,086 |
Other Additions | 9 | 4,961 | 357 |
Deductions | (5,916) | (502) | (15,373) |
Balance at end of period | $ 154,255 | $ 77,342 | $ 66,307 |