Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 23, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | PERRIGO CO PLC | ||
Entity Central Index Key | 1,585,364 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | Q4 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 140,833,598 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 10,768,787,616 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 2,632.2 | $ 4,946.2 | $ 5,280.6 | $ 4,227.1 |
Cost of sales | 1,553.3 | 2,966.7 | 3,228.8 | 2,582.9 |
Gross profit | 1,078.9 | 1,979.5 | 2,051.8 | 1,644.2 |
Operating expenses | ||||
Distribution | 47.9 | 87 | 88.3 | 67.7 |
Research and development | 88.2 | 167.7 | 184 | 187.8 |
Selling | 325.9 | 598.4 | 665 | 319 |
Administration | 306.8 | 461.1 | 452.2 | 385.3 |
Impairment charges | 215.6 | 47.5 | 2,631 | 6.8 |
Restructuring | 26.9 | 61 | 31 | 5.1 |
Other operating income | 0 | (41.4) | 0 | 0 |
Total operating expenses | 1,011.3 | 1,381.3 | 4,051.5 | 971.7 |
Operating income (loss) | 67.6 | 598.2 | (1,999.7) | 672.5 |
Change in financial assets | (57.3) | 24.9 | 2,608.2 | (78.5) |
Interest expense, net | 89.9 | 168.1 | 216.6 | 146 |
Other expense (Income), net | 25.2 | (10.1) | 22.7 | 334.2 |
Loss on extinguishment of debt | 0.9 | 135.2 | 1.1 | 10.5 |
Income (loss) before income taxes | 8.9 | 280.1 | (4,848.3) | 260.3 |
Income tax expense (benefit) | (33.6) | 160.5 | (835.5) | 124.2 |
Net income (loss) | $ 42.5 | $ 119.6 | $ (4,012.8) | $ 136.1 |
Earnings (loss) per share | ||||
Basic (in dollars per share) | $ 0.29 | $ 0.84 | $ (28.01) | $ 0.97 |
Diluted (in dollars per share) | $ 0.29 | $ 0.84 | $ (28.01) | $ 0.97 |
Weighted-average shares outstanding | ||||
Basic (in dollars per share) | 145.6 | 142.3 | 143.3 | 139.3 |
Diluted (in dollars per shares) | 146.1 | 142.6 | 143.3 | 139.8 |
Dividends declared per share | $ 0.25 | $ 0.64 | $ 0.58 | $ 0.4600 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 42.5 | $ 119.6 | $ (4,012.8) | $ 136.1 | |
Other comprehensive income: | |||||
Foreign currency translation adjustments | (135.5) | 328.5 | (63.3) | (33.5) | |
Change in fair value of derivative financial instruments | [1] | 2.1 | 9.7 | (5.3) | (0.2) |
Change in fair value of investment securities | [2] | 9.3 | (14.1) | 8.7 | (5.3) |
Change in post-retirement and pension liability | [3] | 5.3 | 10.8 | (6.6) | 2.9 |
Other comprehensive income (loss), net of tax | (118.8) | 334.9 | (66.5) | (36.1) | |
Comprehensive income (loss) | (76.3) | 454.5 | (4,079.3) | 100 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |||||
Derivatives qualifying as hedges benefit (expense), tax, portion attributable to parent | (0.4) | (3.5) | 2.1 | 5.7 | |
Available for sale securities benefit (expense), tax | (3.6) | 0.5 | (4.1) | 2.7 | |
Pension and other postretirement benefit (expense) plans, tax | $ (2.8) | $ 0 | $ 2.5 | $ (0.6) | |
[1] | Includes tax effect of $3.5 million, $2.1 million, $0.4 million and $5.7 million for the years ended December 31, 2017, December 31, 2016, the six months ended December 31, 2015, and the year ended June 27, 2015, respectively. | ||||
[2] | Includes tax effect of $0.5 million, $4.1 million, $3.6 million and $2.7 million for the years ended December 31, 2017, December 31, 2016, the six months ended December 31, 2015, and the year ended June 27, 2015, respectively. | ||||
[3] | Includes tax effect of $0.0 million, $2.5 million, $2.8 million and $0.6 million for the years ended December 31, 2017, December 31, 2016, the six months ended December 31, 2015, and the year ended June 27, 2015, respectively. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) shares in Millions, $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||
Cash and cash equivalents | $ 678.7 | $ 622.3 | $ 417.8 |
Accounts receivable, net of allowance for doubtful accounts of $6.2, $6.3 and $4.5, respectively | 1,130.8 | 1,176 | 1,189 |
Inventories | 806.9 | 795 | 898.7 |
Prepaid expenses and other current assets | 203.2 | 212 | 286.1 |
Total current assets | 2,819.6 | 2,805.3 | 2,791.6 |
Property, plant and equipment, net | 833.1 | 870.1 | 886.2 |
Financial assets | 0 | 2,350 | 5,310 |
Goodwill and other indefinite-lived intangible assets | 4,265.7 | 4,163.9 | 7,069 |
Other intangible assets, net | 3,290.5 | 3,396.8 | 2,973.1 |
Non-current deferred income taxes | 10.4 | 72.1 | 71.4 |
Other non-current assets | 409.5 | 211.9 | 248.3 |
Total non-current assets | 8,809.2 | 11,064.8 | 16,558 |
Total assets | 11,628.8 | 13,870.1 | 19,349.6 |
Liabilities and Shareholders’ Equity | |||
Accounts payable | 450.2 | 471.7 | 555.8 |
Payroll and related taxes | 148.8 | 115.8 | 125.3 |
Accrued customer programs | 419.7 | 380.3 | 396 |
Accrued liabilities | 230.8 | 263.3 | 351.9 |
Accrued income taxes | 116.1 | 32.4 | 62.7 |
Current indebtedness | 70.4 | 572.8 | 1,060.5 |
Total current liabilities | 1,436 | 1,836.3 | 2,552.2 |
Long-term debt, less current portion | 3,270.8 | 5,224.5 | 4,971.6 |
Non-current deferred income taxes | 321.9 | 389.9 | 1,372.7 |
Other non-current liabilities | 429.5 | 461.8 | 346.3 |
Total non-current liabilities | 4,022.2 | 6,076.2 | 6,690.6 |
Total liabilities | 5,458.2 | 7,912.5 | 9,242.8 |
Commitments and contingencies - Note 16 | |||
Controlling interest: | |||
Preferred shares, $0.0001 par value per share, 10 shares authorized | 0 | 0 | 0 |
Ordinary shares, €0.001 par value per share, 10,000 shares authorized | 7,892.9 | 8,135 | 8,142.6 |
Accumulated other comprehensive income (loss) | 253.1 | (81.8) | (15.3) |
Retained earnings (accumulated deficit) | (1,975.5) | (2,095.1) | 1,980.1 |
Total controlling interest | 6,170.5 | 5,958.1 | 10,107.4 |
Noncontrolling interest | 0.1 | (0.5) | (0.6) |
Total shareholders’ equity | 6,170.6 | 5,957.6 | 10,106.8 |
Total liabilities and shareholders' equity | $ 11,628.8 | $ 13,870.1 | $ 19,349.6 |
Supplemental Disclosures of Balance Sheet Information | |||
Preferred shares, issued and outstanding | 0 | 0 | 0 |
Ordinary shares, issued and outstanding | 140.8 | 143.4 | 143.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Millions | Dec. 31, 2017€ / shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016€ / shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015€ / shares | Dec. 31, 2015USD ($)$ / sharesshares |
Statement of Financial Position [Abstract] | ||||||
Allowance for doubtful accounts | $ | $ 6.2 | $ 6.3 | $ 4.5 | |||
Shareholders’ equity | ||||||
Preferred shares, par value (usd per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Preferred shares, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | |||
Ordinary shares, par value (EUR per share) | € / shares | € 0.001 | € 0.001 | € 0.001 | |||
Ordinary shares, shares authorized (in shares) | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Cash Flows From (For) Operating Activities | ||||
Net income (loss) | $ 42.5 | $ 119.6 | $ (4,012.8) | $ 136.1 |
Adjustments to derive cash flows | ||||
Depreciation and amortization | 182.4 | 444.8 | 457 | 258.7 |
Loss on acquisition-related foreign currency derivatives | 0 | 0 | 0 | 326.4 |
Share-based compensation | 22.8 | 43.8 | 23 | 31.6 |
Impairment charges | 215.6 | 47.5 | 2,631 | 6.8 |
Change in financial assets | (57.3) | 24.9 | 2,608.2 | (78.5) |
Loss on extinguishment of debt | 0.9 | 135.2 | 1.1 | 10.5 |
Restructuring charges | 26.9 | 61 | 31 | 5.1 |
Deferred income taxes | (120) | (48.9) | (990.9) | (16.3) |
Amortization of debt premium | (10.2) | (22.4) | (24.7) | 0.2 |
Other non-cash adjustments, net | 18.1 | (2.7) | 33.5 | 10.2 |
Subtotal | 321.7 | 802.8 | 756.4 | 690.8 |
Increase (decrease) in cash due to: | ||||
Accounts receivable | 52.5 | 3.2 | (0.6) | (51.1) |
Inventories | (29.6) | (16) | 100.7 | (11.4) |
Accounts payable | (194.1) | (39.6) | (75.7) | 120.5 |
Payroll and related taxes | (38.2) | (27.4) | (41.1) | (30.2) |
Accrued customer programs | 34.4 | 34.6 | (13.9) | 71.3 |
Accrued liabilities | 108.1 | (47.8) | (79.5) | 42.8 |
Accrued income taxes | (56.8) | (6.1) | 20.9 | 21.9 |
Other, net | 2.9 | (4.8) | (12.3) | 0.6 |
Subtotal | (120.8) | (103.9) | (101.5) | 164.4 |
Net cash from operating activities | 200.9 | 698.9 | 654.9 | 855.2 |
Cash Flows From (For) Investing Activities | ||||
Proceeds from royalty rights | 166.3 | 87.3 | 353.7 | 344.6 |
Acquisitions of businesses, net of cash acquired | (791.6) | (0.4) | (427.4) | (2,177.8) |
Asset acquisitions | 0 | 0 | (65.1) | (4) |
Settlement of acquisition-related foreign currency derivatives | (1.3) | 0 | 0 | (329.9) |
Proceeds from sale of securities | 0 | 0 | 4.5 | 0 |
Additions to property, plant and equipment | (77.8) | (88.6) | (106.2) | (137) |
Net proceeds from sale of business and other assets | 0 | 154.6 | 69.1 | 0 |
Proceeds from sale of the Tysabri® financial asset | 0 | 2,200 | 0 | 0 |
Other investing, net | (3.7) | (14.8) | (3.6) | 1.8 |
Net cash from (for) investing activities | (708.1) | 2,338.1 | (175) | (2,302.3) |
Cash Flows From (For) Financing Activities | ||||
Borrowings (repayments) of revolving credit agreements and other financing, net | 718 | 6.8 | (802.5) | (54) |
Issuances of long-term debt | 0 | 0 | 1,190.3 | 2,504.3 |
Payments on long-term debt | (28.3) | (2,611) | (559.2) | (1,823.5) |
Premium on early debt retirement | 0 | (116.1) | (0.6) | 0 |
Deferred financing fees | (0.3) | (4.8) | (2.8) | (28.1) |
Issuance of ordinary shares | 4.9 | 0.7 | 8.3 | 1,043.5 |
Equity issuance costs | 0 | 0 | (10.3) | (35.7) |
Repurchase of ordinary shares | (500) | (191.5) | 0 | 0 |
Cash dividends | (36.3) | (91.1) | (83.2) | (64.8) |
Other financing, net | (8.4) | 2.3 | (8.7) | (19.3) |
Net cash from (for) financing activities | 149.6 | (3,004.7) | (268.7) | 1,522.4 |
Effect of exchange rate changes on cash and cash equivalents | (10.2) | 24.1 | (6.7) | (89.2) |
Net increase (decrease) in cash and cash equivalents | (367.8) | 56.4 | 204.5 | (13.9) |
Cash and cash equivalents, beginning of period | 785.6 | 622.3 | 417.8 | 799.5 |
Cash and cash equivalents, end of period | 417.8 | 678.7 | 622.3 | 785.6 |
Cash paid/received during the year for: | ||||
Interest paid | 84.2 | 187.6 | 205.1 | 143.2 |
Interest received | 0.7 | 9.3 | 1.2 | 1.1 |
Income taxes paid | 87.8 | 186.9 | 139.5 | 131 |
Income taxes refunded | $ 1.7 | $ 3.6 | $ 9.3 | $ 9.6 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Ordinary Shares Issued | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) |
Balance at Jun. 28, 2014 | $ 8,720.4 | $ 6,678.2 | $ 139.6 | $ 1,902.6 |
Balance, shares at Jun. 27, 2015 | 146,300,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 136.1 | 136.1 | ||
Other comprehensive loss | (36.1) | (36.1) | ||
Issuance of ordinary shares under: | ||||
Equity offering, shares | 6,800,000 | |||
Equity offering | 1,035 | $ 1,035 | ||
Omega acquisition, shares | 5,400,000 | |||
Omega acquisition | 904.9 | $ 904.9 | ||
Stock options, shares | 200,000 | |||
Stock options | 8.5 | $ 8.5 | ||
Restricted stock plan, shares | 200,000 | |||
Compensation for stock options | 6.9 | $ 6.9 | ||
Compensation for restricted stock | 24.7 | 24.7 | ||
Cash dividends | (64.8) | (64.8) | ||
Tax effect from stock transactions | 7 | $ 7 | 0 | |
Shares withheld for payment of employee's withholding tax liability, shares | (100,000) | |||
Shares withheld for payment of employee's withholding tax liability | (7.6) | $ (7.6) | ||
Equity issuance costs | (35.7) | $ (35.7) | ||
Balance, shares at Jun. 28, 2014 | 133,800,000 | |||
Balance at Jun. 27, 2015 | 10,699.3 | $ 8,621.9 | 103.5 | 1,973.9 |
Balance, shares at Dec. 31, 2015 | 143,100,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 42.5 | 42.5 | ||
Other comprehensive loss | (118.8) | (118.8) | ||
Issuance of ordinary shares under: | ||||
Stock options, shares | 100,000 | |||
Stock options | 4.9 | $ 4.9 | ||
Restricted stock plan, shares | 100,000 | |||
Compensation for stock options | 2.5 | $ 2.5 | ||
Compensation for restricted stock | 20.3 | 20.3 | ||
Cash dividends | (36.3) | (36.3) | ||
Tax effect from stock transactions | 3.3 | $ 3.3 | ||
Shares withheld for payment of employee's withholding tax liability, shares | (100,000) | |||
Shares withheld for payment of employee's withholding tax liability | (10.3) | $ (10.3) | ||
Repurchases of ordinary shares, shares | (3,300,000) | |||
Repurchases of ordinary shares | (500) | $ (500) | ||
Balance, shares at Jun. 27, 2015 | 146,300,000 | |||
Balance at Dec. 31, 2015 | 10,107.4 | $ 8,142.6 | (15.3) | 1,980.1 |
Balance, shares at Dec. 31, 2016 | 143,400,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | (4,012.8) | (4,012.8) | ||
Other comprehensive loss | $ (66.5) | (66.5) | ||
Issuance of ordinary shares under: | ||||
Stock options, shares | 122,000 | 200,000 | ||
Stock options | $ 8.3 | $ 8.3 | ||
Restricted stock plan, shares | 200,000 | |||
Compensation for stock options | 5 | $ 5 | ||
Compensation for restricted stock | 18 | 18 | ||
Cash dividends | (83.2) | (20.8) | (62.4) | |
Tax effect from stock transactions | (1.5) | $ (1.5) | ||
Shares withheld for payment of employee's withholding tax liability, shares | (100,000) | |||
Shares withheld for payment of employee's withholding tax liability | $ (6.3) | $ (6.3) | 0 | |
Repurchases of ordinary shares, shares | 0 | |||
Equity issuance costs | $ (10.3) | $ (10.3) | ||
Balance, shares at Dec. 31, 2015 | 143,100,000 | |||
Balance at Dec. 31, 2016 | 5,958.1 | $ 8,135 | (81.8) | (2,095.1) |
Balance, shares at Dec. 31, 2017 | 140,800,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 119.6 | 119.6 | ||
Other comprehensive loss | $ 334.9 | 334.9 | ||
Issuance of ordinary shares under: | ||||
Stock options, shares | 31,000 | 100,000 | ||
Stock options | $ 0.7 | $ 0.7 | ||
Restricted stock plan, shares | 100,000 | |||
Compensation for stock options | 8.9 | $ 8.9 | ||
Compensation for restricted stock | 34.9 | 34.9 | ||
Cash dividends | (91.1) | $ (91.1) | 0 | |
Shares withheld for payment of employee's withholding tax liability, shares | (100,000) | |||
Shares withheld for payment of employee's withholding tax liability | (4) | $ (4) | ||
Repurchases of ordinary shares, shares | (2,700,000) | |||
Repurchases of ordinary shares | (191.5) | $ (191.5) | ||
Balance, shares at Dec. 31, 2016 | 143,400,000 | |||
Balance at Dec. 31, 2017 | $ 6,170.5 | $ 7,892.9 | $ 253.1 | $ (1,975.5) |
Consolidated Statements of Sha8
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 27, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||||
Dividends paid (per share) | $ 0.25 | $ 0.21 | $ 0.64 | $ 0.58 | $ 0.4600 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General Information The Company Perrigo Company plc was incorporated under the laws of Ireland on June 28, 2013 and became the successor registrant of Perrigo Company, a Michigan corporation, on December 18, 2013 in connection with the acquisition of Elan Corporation, plc ("Elan"). Unless the context requires otherwise, the terms "Perrigo," the "Company," "we," "our," "us," and similar pronouns used herein refer to Perrigo Company plc, its subsidiaries, and all predecessors of Perrigo Company plc and its subsidiaries. We are a leading global healthcare company, delivering value to our customers and consumers by providing Quality Affordable Healthcare Products ® . Founded in 1887 as a packager of home remedies, we have built a unique business model that is best described as the convergence of a fast-moving consumer goods company, a high-quality pharmaceutical manufacturing organization and a world-class supply chain network. We believe we are one of the world's largest manufacturers of over-the-counter (“OTC”) healthcare products and suppliers of infant formulas for the store brand market. We are a leading provider of branded OTC products throughout Europe, and also a leading producer of generic pharmaceutical topical products such as creams, lotions, and gels, as well as nasal sprays and injection ("extended topical") prescription drugs. We are headquartered in Ireland, and sell our products primarily in North America and Europe, as well as in other markets, including Australia, Israel and China. Basis of Presentation Our fiscal year previously consisted of a 52- or 53-week year ending on or around June 30 of each year with each quarter ending on the Saturday closest to each calendar quarter end. Beginning on January 1, 2016, we changed our fiscal year to begin on January 1 and end on December 31 of each year. As a result of our change in year end, this report on Form 10-K discloses the results of our operations for: • The twelve-month period from January 1, 2017 through December 31, 2017; • The twelve-month period from January 1, 2016 through December 31, 2016; • The six-month period from June 28, 2015 through December 31, 2015; • The twelve-month period from June 29, 2014 to June 27, 2015; and • The six-month period from June 29, 2014 through December 27, 2014. We cut off our quarterly accounting periods on the Saturday closest to the end of the calendar quarter, with the fourth quarter ending on December 31 of each year. Segment Reporting Our reporting segments are as follows: • Consumer Healthcare Americas (" CHCA ") , comprises our U.S., Mexico and Canada consumer healthcare business (OTC, contract, infant formula and animal health categories). • Consumer Healthcare International (" CHCI ") , comprises our branded consumer healthcare business primarily in Europe and our consumer focused businesses in the U.K., Australia, and Israel. This segment also includes our U.K. liquid licensed products business. • Prescription Pharmaceuticals (" RX ") , comprises our U.S. Prescription Pharmaceuticals business. We also had two legacy operating segments, Specialty Sciences and Other, which contained our Tysabri ® financial asset and Active Pharmaceuticals business ("API") businesses, respectively, which we divested (refer to Note 2 and Note 6 ). Following these divestitures, there were no substantial assets or operations left in either of these segments. Effective January 1, 2017, all expenses associated with our former Specialty Sciences segment were moved to unallocated expenses. Our segments reflect the way in which our management makes operating decisions, allocates resources and manages the growth and profitability of the Company. Principles of Consolidation The consolidated financial statements include our accounts and accounts of all majority-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Unconsolidated Variable Interest Entities We have research and development ("R&D") arrangements with certain biotechnology companies that we determined to be variable interest entities ("VIEs"). We did not consolidate the VIEs in our financial statements because we lack the power to direct the activities that most significantly impact their economic performance and thus are not considered the primary beneficiaries of these entities. These arrangements provide us with certain rights and obligations to purchase product candidates from the VIEs, dependent upon the outcome of the development activities. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions, which affect the reported earnings, financial position and various disclosures. Although the estimates are considered reasonable, actual results could differ from the estimates. Non-U.S. Operations We translate our non-U.S. dollar-denominated operations’ assets and liabilities denominated in foreign currencies into U.S. dollars at current rates of exchange as of the balance sheet date and income and expense items at the average exchange rate for the reporting period. Translation adjustments resulting from exchange rate fluctuations are recorded in the cumulative translation account, a component of Accumulated Other Comprehensive Income ("AOCI"). Gains or losses from foreign currency transactions are included in Other expense, net. Revenues We generally record revenues from product sales when the goods are shipped to the customer. For customers with Free on Board destination terms, a provision is recorded to exclude shipments estimated to be in-transit to these customers at the end of the reporting period. A sales allowance is recorded and accounts receivable are reduced as revenues are recognized for estimated losses on credit sales due to customer claims for discounts, price discrepancies, returned goods and other items. Revenue is also reduced for any contractual customer program arrangements and related liabilities are recorded concurrently. We maintain customer-related accruals and allowances that consist primarily of chargebacks, rebates, sales returns, shelf stock allowances, administrative fees and other incentive programs. Some of these adjustments relate specifically to the RX segment while others relate only to the CHCA and CHCI segments. Certain of these accruals and allowances are recorded in the balance sheet as current liabilities and others are recorded as a reduction in accounts receivable. Changes in these estimates and assumptions related to customer programs may result in additional accruals or allowances. Customer-related accruals and allowances were $512.3 million , $484.3 million , and $489.4 million at December 31, 2017 , December 31, 2016 , and December 31, 2015 , respectively. Revenues from service and royalty arrangements, including revenues from collaborative agreements, consist primarily of royalty payments, payments for R&D services, up-front fees and milestone payments. If an arrangement requires the delivery or performance of multiple deliverables or service elements, we determine whether the individual elements represent separate units of accounting. If the separate elements represent separate units of accounting, we recognize the revenue associated with each element separately and revenue is allocated among elements based on their relative selling prices. If the elements within a multiple deliverable arrangement are not considered separate units of accounting, the delivery of an individual element is considered not to have occurred if there are undelivered elements that are considered essential to the arrangement. To the extent such arrangements contain refund clauses triggered by non-performance or other adverse circumstances, revenue is not recognized until all contractual obligations are satisfied. Non-refundable up-front fees are deferred and amortized to revenue over the related performance period. We estimate the performance period based on the specific terms of each collaborative agreement. Revenue associated with R&D services is recognized on a proportional performance basis over the period that we perform the related activities under the terms of the agreement. Revenue resulting from the achievement of contingent milestone events stipulated in the agreements is recognized when the milestone is achieved. Milestones are based upon the occurrence of a substantive element specified in the contract. Shipping and handling costs billed to customers are included in net sales. Conversely, shipping and handling expenses we incur are included in cost of sales. Cash and Cash Equivalents Cash and cash equivalents consist primarily of demand deposits and other short-term investments with maturities of three months or less at the date of purchase. The carrying amount of cash and cash equivalents approximates its fair value. Accounts Receivable We maintain an allowance for doubtful accounts that reduces our receivables to amounts that are expected to be collected. In estimating the allowance, management considers factors such as current overall and industry-specific economic conditions, statutory requirements, historical and anticipated customer performance, historical experience with write-offs and the level of past-due amounts. Changes in these conditions may result in additional allowances. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. In addition, included in our accounts receivable balance is $84.4 million and $83.4 million related to our Tysabri ® financial asset at December 31, 2016 and December 31, 2015, respectively, for amounts earned that have not yet been received. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in first-out method. Costs include material and conversion costs. Inventory related to R&D is expensed at the point when it is determined the materials have no alternative future use. We maintain reserves for estimated obsolete or unmarketable inventory based on the difference between the cost of the inventory and its estimated net realizable value. In estimating the reserves, management considers factors such as excess or slow-moving inventories, product expiration dating, products on quality hold, current and future customer demand and market conditions. Changes in these conditions may result in additional reserves (refer to Note 5 ). Investments Available for Sale Investments We determine the appropriate classification of securities as held-to-maturity, available-for-sale, or trading. The classification depends on the purpose for which the financial assets were acquired. Marketable equity securities are classified as available-for-sale. These securities are carried at fair value with unrealized gains and losses included in AOCI. The assessment for impairment of marketable securities classified as available-for-sale is based on established financial methodologies, including quoted market prices for publicly traded securities. If we determine that a loss in the value of an investment is other than temporary, the investment is written down to its estimated fair value. Any such losses are recorded in Other expense, net (refer to Note 7 ). Cost Method Investments Non-marketable equity securities are carried at cost, less any write down for impairments, and are adjusted for impairment based on methodologies, an assessment of the impact of general private equity market conditions, and discounted projected future cash flows. Non-marketable equity securities are recorded in Other non-current assets (refer to Note 7 ). Equity Method Investments The equity method of accounting is used for unconsolidated entities over which we have significant influence; generally this represents ownership interests of at least 20% and not more than 50%. Under the equity method of accounting, we record the investments at carrying value and adjust for a proportionate share of the profits and losses of these entities each period. We evaluate our equity method investments for recoverability. If we determine that a loss in the value of an investment is other than temporary, the investment is written down to its estimated fair value. Any such losses are recorded in Other expense, net. Evaluations of recoverability are based primarily on projected cash flows. Due to uncertainties in the estimation process, actual results could differ from such estimates. Equity method investments are recorded in Other non-current assets (refer to Note 7 ). Derivative Instruments We record derivative instruments on the balance sheet on a gross basis as either an asset or liability measured at fair value (refer to Note 8 ). Additionally, changes in a derivative's fair value, which are measured at the end of each period, are recognized in earnings unless specific hedge accounting criteria are met. If hedge accounting criteria are met for cash flow hedges, the changes in a derivative’s fair value are recorded in shareholders’ equity as a component of other comprehensive income ("OCI"), net of tax. These deferred gains and losses are recognized in income in the period in which the hedged item and hedging instrument affect earnings. Any ineffective portion of the change in fair value is immediately recognized in earnings. We are exposed to credit loss in the event of nonperformance by the counterparties on derivative contracts. It is our policy to manage our credit risk on these transactions by dealing only with financial institutions having a long-term credit rating of "A" or better and by distributing the contracts among several financial institutions to diversify credit concentration risk. Should a counterparty default, our maximum exposure to loss is the asset balance of the instrument. The maximum term of our forward currency exchange contracts is 18 months. Property, Plant and Equipment, net Property, plant and equipment, net are recorded at cost and are depreciated using the straight-line method. Useful lives for financial reporting range from 3 to 20 years for machinery and equipment and 10 to 45 years for buildings. Maintenance and repair costs are charged to earnings, while expenditures that increase asset lives are capitalized. Depreciation expense includes amortization of assets recorded under capital leases and totaled $95.2 million , $100.2 million , $53.8 million , and $84.3 million , for the years ended December 31, 2017 and December 31, 2016 , the six months ended December 31, 2015 , and the year ended June 27, 2015 , respectively. We held the following property, plant and equipment, net (in millions): December 31, December 31, December 31, Land $ 45.5 $ 45.0 $ 47.5 Buildings 514.3 520.2 508.2 Machinery and equipment 1,078.6 1,094.7 1,103.3 Gross property, plant and equipment 1,638.4 1,659.9 1,659.0 Less accumulated depreciation (805.3 ) (789.8 ) (772.8 ) Property, plant and equipment, net $ 833.1 $ 870.1 $ 886.2 Financial Assets Prior to its divestiture on March 27, 2017, we accounted for the Tysabri ® royalty stream as a financial asset and have elected to use the fair value option model (refer to Note 6 ). We made the election to account for the Tysabri ® financial asset using the fair value option as we believe this method is most appropriate for an asset that does not have a par value, a stated interest stream, or a termination date. The fair value of the Tysabri ® financial asset is determined by using a discounted cash flow analysis related to the expected future cash flows to be received. This asset is classified as Level 3 assets within the fair value hierarchy, as our valuation estimates utilize significant unobservable inputs, including estimates as to the probability and timing of future sales of the related products. Critical estimates in determining the fair value are the underlying revenue assumptions of Tysabri ® sales and the discount rates. The revenue assumptions are impacted by product demand and market growth assumptions, inventory target levels, product approval, currency movements and pricing assumptions. Factors that could cause a change in estimates of future cash flows include a change in estimated market size, entry of a competitive product that would erode market share, manufacturing and approval of a biosimilar equivalent product, a change in pricing strategy or reimbursement coverage, a delay in obtaining regulatory approval, a change in dosage of the product, or a change in the number of treatments. Goodwill and Intangible Assets Goodwill Goodwill represents amounts paid for an acquisition in excess of the fair value of net assets received. Goodwill is tested for impairment annually on the first day of our fourth quarter, or more frequently if changes in circumstances or the occurrence of events suggest an impairment exists. The test for impairment requires us to make several estimates about fair value, most of which are based on projected future cash flows and market valuation multiples. The estimates associated with the goodwill impairment tests are considered critical due to the judgments required in determining fair value amounts, including projected discounted future cash flows. Changes in these estimates may result in the recognition of an impairment loss. Our annual impairment tests were performed as of October 1, 2017, October 2, 2016, September 27, 2015, and March 29, 2015, for the years ended December 31, 2017 and December 31, 2016 , the six months ended December 31, 2015 , and the year ended June 27, 2015 , respectively. Intangible Assets We have intangible assets that we have acquired through various business acquisitions and include trademarks, trade names and brands, in-process research and development ("IPR&D"), developed product technology/formulation and product rights, distribution and license agreements, customer relationships and distribution networks, and non-compete agreements. The assets are typically initially valued using one of the following valuation methods: • Relief from royalty method : This method assumes that if the acquired company did not own the intangible asset or intellectual property, it would be willing to pay a royalty for its use. The benefit of ownership of the intellectual property is valued as the relief from the royalty expense that would otherwise be incurred. We typically use this method for valuing readily transferable intangible assets that have licensing appeal, such as trade names and trademarks and certain technology assets. • Multi-period excess earnings method : This method starts with a forecast of the net cash flows expected to be generated by the asset over its estimated useful life. These cash flows are then adjusted to present value by applying an appropriate discount rate that reflects the risk factors associated with the cash flow streams. We typically use this method for valuing intangible assets such as developed product technology, customer relationships, product formulations and IPR&D. • Lost income method : This method estimates the fair value of an asset by comparing the value of the business, inclusive of the asset, to the hypothetical value of the same business excluding the asset. Indefinite-lived intangible assets include IPR&D and certain trademarks, trade names, and brands. IPR&D assets are recognized at fair value and are classified as indefinite-lived assets until the successful completion or abandonment of the associated research and development efforts. If the associated research and development is completed, the IPR&D asset becomes a definite-lived intangible asset and is amortized over the asset's assigned useful life. If it is abandoned, an impairment loss is recorded. We test indefinite-lived trademarks, trade names, and brands for impairment quarterly, or more frequently if changes in circumstances or the occurrence of events suggest impairment exists, by comparing the carrying value of the assets to their estimated fair values. An impairment loss is recognized if the carrying amount of the asset is not recoverable and its carrying amount exceeds its fair value. Definite-lived intangible assets consist of a portfolio of developed product technology/formulation and product rights, distribution and license agreements, customer relationships, non-compete agreements, and certain trademarks, trade names, and brands. The assets are amortized on either a straight-line basis or proportionately to the benefits derived from those relationships or agreements. Useful lives vary by asset type and are determined based on the period over which the intangible asset is expected to contribute directly or indirectly to our future cash flows. We also review all other long-lived assets that have finite lives and that are not held for sale for impairment when indicators of impairment are evident by comparing the carrying value of the assets to their estimated future undiscounted cash flows. See Note 3 for further information on our goodwill and intangible assets. Assets Held for Sale We classify assets as "held for sale" when management approves and commits to a formal plan of sale with the expectation the sale will be completed within one year. The net assets of the business held for sale are then recorded at the lower of their current carrying value and the fair market value, less costs to sell (refer to Note 9 ). Deferred Financing Fees We record deferred financing fees as a reduction of long-term debt. Share-Based Awards We measure and record compensation expense for all share-based awards based on estimated grant date fair values, and net of any estimated forfeitures over the vesting period of the awards. Forfeiture rates are estimated at the grant date based on historical experience and adjusted in subsequent periods for any differences in actual forfeitures from those estimates. We estimate the fair value of stock option awards granted based on the Black-Scholes option pricing model, which requires the use of subjective and complex assumptions. These assumptions include estimating the expected term that awards granted are expected to be outstanding, the expected volatility of our stock price for a period commensurate with the expected term of the related options, and the risk-free rate with a maturity closest to the expected term of the related awards. Restricted stock and restricted stock units are valued based on our stock price on the day the awards are granted. The estimated fair value of outstanding Relative Total Shareholder Return performance units (“RTSR”) is based on the grant date fair value of RTSR awards using a Monte Carlo simulation, which includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends (refer to Note 12 ). Income Taxes We record deferred income tax assets and liabilities on the balance sheet as noncurrent based upon the difference between the financial reporting and the tax reporting basis of assets and liabilities using the enacted tax rates. To the extent that available evidence raises doubt about the realization of a deferred income tax asset, a valuation allowance is established. We have provided for income taxes for certain earnings of certain foreign subsidiaries which have not been deemed to be permanently reinvested. For those foreign subsidiaries we have deemed to be permanently reinvested, we have provided no further tax provision. We record reserves for uncertain tax positions to the extent it is more likely than not that the tax position will be sustained on audit, based on the technical merits of the position. Periodic changes in reserves for uncertain tax positions are reflected in the provision for income taxes. We include interest and penalties attributable to uncertain tax positions and income taxes as a component of our income tax provision (refer to Note 14 ). Legal Contingencies We are involved in product liability, patent, commercial, regulatory and other legal proceedings that arise in the normal course of business. We record a liability when a loss is considered probable and the amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range and no amount within that range is a better estimate, the minimum amount in the range is accrued. If a loss is not probable or a probable loss cannot be reasonably estimated, no liability is recorded. We have established reserves for certain of our legal matters (refer to Note 16 ). We also separately record any insurance recoveries that are probable of occurring. Research and Development All R&D costs, including payments related to products under development and research consulting agreements, are expensed as incurred. We may continue to make non-refundable payments to third parties for new technologies and for R&D work that has been completed. These payments may be expensed at the time of payment depending on the nature of the payment made. R&D expense was $167.7 million , $184.0 million , $88.2 million , and $187.8 million for the years ended December 31, 2017 , and December 31, 2016 , the six months ended December 31, 2015 and the year ended June 27, 2015 , respectively. The year ended December 31, 2017 included R&D expense related to new product development and clinical trial expenses in our CHCA, CHCI and RX segments. The year ended December 31, 2016 included R&D expense related to clinical trials primarily in our CHCA and RX segments. The six months ended December 31, 2015 included incremental R&D expense attributable to the Omega Pharma Invest N.V. ("Omega") acquisition. The year ended June 27, 2015 included incremental R&D expense related to a collaboration agreement entered into as a result the Omega acquisition. We actively collaborate with other pharmaceutical companies to develop, manufacture and market certain products or groups of products. We may choose to enter into these types of agreements to, among other things, leverage our or others’ scientific research and development expertise or utilize our extensive marketing and distribution resources. Our policy on accounting for costs of strategic collaborations determines the timing of the recognition of certain development costs. In addition, this policy determines whether the cost is classified as development expense or capitalized as an asset. Management is required to form judgments with respect to the commercial status of such products in determining whether development costs meet the criteria for immediate expense or capitalization. For example, when we acquire certain products for which there is already an Abbreviated New Drug Application ("ANDA") or New Drug Application ("NDA") approval directly related to the product, and there is net realizable value based on projected sales for these products, we capitalize the amount paid as an intangible asset. If we acquire product rights that are in the development phase and as to which we have no assurance that the third party will successfully complete its development milestones, we expense the amount paid (refer to Note 17 for more information on our current collaboration agreements). Advertising Costs We expense advertising costs as incurred. Advertising costs relate primarily to print advertising, direct mail, on-line advertising and social media communications. For the year ended December 31, 2017 , 94% of advertising expense was attributable to our CHCI segment. Advertising costs were as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, 2016 December 31, June 27, $ 145.3 $ 155.9 $ 77.5 $ 55.7 Earnings per Share ("EPS") Basic EPS is calculated using the weighted-average number of ordinary shares outstanding during each period. It excludes both the dilutive effects of additional common shares that would have been outstanding if the shares issued under stock incentive plans had been exercised and the dilutive effect of restricted shares and restricted share units, to the extent those shares and units have not vested. Diluted EPS is calculated including the effects of shares and potential shares issued under stock incentive plans, following the treasury stock method. Defined Benefit Plans We operate a number of defined benefit plans for employees globally. Two significant assumptions, the discount rate and the expected rate of return on plan assets, are important elements of expense and liability measurement. We evaluate these assumptions annually. Other assumptions involve employee demographic factors, such as retirement patterns, mortality, turnover, and the rate of compensation increase. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The defined benefit obligation is calculated periodically by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of either high quality corporate bonds or long term government bonds depending on the depth and liquidity of the high quality corporate bond market in the different geographies where we have pension liabilities. The bonds are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension liability. Actuarial gains and losses are recognized on the Consolidated Statement of Operations using the corridor method. Under the corridor method, to the extent that any cumulative unrecognized net actuarial gain or loss exceeds 10% of the greater of the present value of the defined benefit obligation and the fair value of the plan assets, that portion is recognized over the expected average remaining working lives of the plan participants. Otherwise, the net actuarial gain or loss is recorded in OCI. We recognize the funded status of benefit plans on the Consolidated Balance Sheets. In addition, we recognize the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic pension cost of the period as a component of OCI (refer to Note 15 ). Recent Accounting Standard Pronouncements Below are recent accounting standard updates that we have adopted or are still assessing to determine the effect on our Consolidated Financial Statements. We do not believe that any other recently issued accounting standards could have a material effect on our Consolidated Financial Statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. Recently Issued Accounting Standards Adopted Standard Description Date of adoption Effect on the Financial Statements or Other Significant Matters Clarifying the Definition of a Business This update clarifies the definition of a business and addresses whether transactions should be accounted for as asset acquisitions or business combinations (or divestitures). The guidance includes an initial threshold that an acquired set of assets will not be considered a business if substantially all of the fair value of the assets acquired is concentrated in a single tangible or identifiable intangible asset (or group of similar assets). If the acquired set does not pass the initial threshold, then the guidance requires that, to be a business, the set must include an input and a substantive process that together significantly contribute to the ability to create outputs. Different factors are considered to determine whether the set includes a substantive process, such as the inclusion of an organized workforce. Further, the guidance removes language stating that a business need not include all of the inputs and processes that the seller used in operating the business. January 1, 2017 We early adopted this new standard and will apply it prospectively when determining whether transactions should be accounted for as asset acquisitions (divestitures) or business combinations (divestitures). During the year ended December 31, 2017, we applied the new guidance when determining whether certain product divestitures represented sales of assets or businesses. Improvements to Employee Share-Based Payment Accounting This guidance is intended to simplify several aspects of the accounting for share-based payment award transactions. It will require all income tax effects of awards to be recorded through the income statement when the awards vest or settle as opposed to certain amounts being recorde |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and divestitures | ACQUISITIONS AND DIVESTITURES All of the below acquisitions, with the exception of the generic Benzaclin™ product purchase, have been accounted for under the acquisition method of accounting based on our analysis of the acquired inputs and processes, and the related assets acquired and liabilities assumed were recorded at fair value as of the acquisition date. Fair value estimates are based on a complex series of judgments about future events and rely heavily on estimates and assumptions. The judgments used to determine the estimated fair value assigned to each class of assets and liabilities assumed, as well as asset lives, can materially impact our results of operations. The effects of all of the acquisitions described below were included in the Consolidated Financial Statements prospectively from the date of each acquisition. Unless otherwise indicated, acquisition costs incurred were immaterial and were recorded in Administration expense. Acquisitions Completed During the Year Ended December 31, 2016 Generic Benzaclin ™ Product On August 2, 2016 , we purchased the remaining 60.9% product rights to a generic Benzaclin™ product ("Generic Benzaclin™"), which we had developed and marketed in collaboration with Barr Laboratories, Inc. ("Barr"), a subsidiary of Teva Pharmaceuticals, for $62.0 million in cash. In September 2007, we entered into an initial development, marketing and commercialization agreement with Barr, in which Barr contributed to the product's development costs and we developed and marketed the product in the U.S. and Israel. Under this agreement, we paid Barr a percentage of net income from the product's sales in these territories, adjusted for Barr's contributions to the product's development costs. By purchasing the remaining product rights from Barr, we are now entitled to 100% of income from sales of the product. Operating results attributable to Generic Benzaclin™ are included within our RX segment. The intangible asset acquired is a distribution and license agreement with a nine -year useful life. Tretinoin Product Portfolio On January 22, 2016 , we acquired a portfolio of generic dosage forms and strengths of Retin-A ® (tretinoin), a topical prescription acne treatment, from Matawan Pharmaceuticals, LLC, for $416.4 million in cash ("Tretinoin Products"), which further expanded our standard topical products such as creams, lotions and gels, as well as inhalants and injections ("extended topicals") portfolio. We were the authorized generic distributor of these products from 2005 to 2013. Operating results attributable to the acquisition are included within our RX segment. The intangible assets acquired included generic product rights valued using the multi-period excess earnings method and assigned a 20 -year useful life, and non-compete agreements valued using the lost income method and assigned a five -year useful life. The goodwill acquired is deductible for tax purposes. Development-Stage Rx Products In May 2015, we entered into an agreement with a clinical stage biotechnology company for two specialty pharmaceutical products in development ("Development-Stage Rx Products"). We paid $18.0 million for an option to acquire the two products, which was recorded in R&D expense. On March 1, 2016, to further invest in our specialty "prescription only" ("Rx") portfolio, we exercised the option for both products, which requires us to make contingent payments if we obtain regulatory approval and achieve certain sales milestones. We will also be obligated to make certain royalty payments over periods ranging from seven to ten years from the launch of each product. We accounted for the option exercise as a business acquisition within our RX segment, recording IPR&D and contingent consideration on the balance sheet. The IPR&D was valued using the multi-period excess earnings method and has an indefinite useful life until such time as the research is completed (at which time it will become a definite-lived intangible asset), or is determined to have no future use (at which time it would be impaired). The contingent consideration is an estimate of the future milestone payments and royalties based on probability-weighted outcomes, sensitivity analysis, and discount rates reflective of the risk involved. The amount of contingent consideration recognized was $24.9 million and was recorded in Other non-current liabilities . On December 20, 2017, we completed the sale of one of the Development-Stage Rx Products to an ophthalmic pharmaceutical company (see below for additional details on the divestiture). Purchase Price Allocation of Acquisitions Completed During the Year Ended December 31, 2016 The Tretinoin Products, Developed-Stage Rx Products, and four product acquisitions opening balance sheets are final. The below table indicates the purchase price allocations for acquisitions completed during the year ended December 31, 2016 (in millions): Tretinoin Products Development-Stage Rx Products All Other (1) Purchase price paid $ 416.4 $ — $ 17.1 Contingent consideration — 24.9 26.2 Total purchase consideration $ 416.4 $ 24.9 $ 43.3 Assets acquired: Cash and cash equivalents $ — $ — $ 3.8 Accounts receivable — — 4.9 Inventories 1.4 — 7.1 Prepaid expenses and other current assets — — 0.1 Property, plant and equipment, net — — 1.2 Goodwill 1.7 — — Definite-lived intangibles : Distribution and license agreements, supply agreements $ — $ — $ 1.8 Developed product technology, formulations, and product rights 411.0 — 18.0 Customer relationships and distribution networks — — 8.2 Non-compete agreements 2.3 — — Indefinite-lived intangibles : In-process research and development $ — $ 24.9 $ 4.9 Total intangible assets $ 413.3 $ 24.9 $ 32.9 Total assets $ 416.4 $ 24.9 $ 50.0 Liabilities assumed: Accounts payable $ — $ — $ 2.8 Accrued liabilities — — 0.1 Long-term debt — — 3.3 Net deferred income tax liabilities — — 0.5 Total liabilities $ — $ — $ 6.7 Net assets acquired $ 416.4 $ 24.9 $ 43.3 (1) Consists of four product acquisitions in our CHCA , CHCI and RX segments. Acquisitions Completed During the Six Months Ended December 31, 2015 Entocort ® On December 15, 2015 , we completed our acquisition of Entocort ® (budesonide) capsules, as well as the authorized generic capsules, for sale within the U.S., from AstraZeneca plc for $380.2 million in cash. Entocort ® is a gastroenterology medicine for patients with mild to moderate Crohn's disease. The acquisition complemented our Rx portfolio. Operating results attributable to the acquisition are included within our RX segment. The intangible assets acquired included branded and authorized generic product rights with useful lives of 10 and 15 years, respectively, which were valued using the multi-period excess earnings method. During the year ended December 31, 2016, we recorded an impairment charge of $342.2 million (refer to Note 3 ). Naturwohl Pharma GmbH On September 15, 2015 , we completed our acquisition of 100% of Naturwohl Pharma GmbH ("Naturwohl"), a Munich, Germany-based nutritional business known for its leading German dietary supplement brand, Yokebe ® . The acquisition built on our CHCI segment's OTC product portfolio and European commercial infrastructure. The assets were purchased through an all-cash transaction valued at €133.5 million ( $150.4 million ). Operating results attributable to Naturwohl are included in the CHCI segment. The intangible assets acquired included a trademark with a 20 -year useful life, customer relationships with a 15 -year useful life, non-compete agreements with a three -year useful life, and a licensing agreement with a three -year useful life. We utilized the relief from royalty method for valuing the trademark, the multi-period excess earnings method for valuing the customer relationships, and the lost income method for valuing the non-compete agreements and the licensing agreement. The goodwill acquired is not deductible for tax purposes. ScarAway ® On August 28, 2015 , we completed our acquisition of ScarAway ® , a leading U.S. OTC scar management brand portfolio comprised of five products, from Enaltus, LLC, for $26.7 million in cash. This acquisition served as our entry into the niche branded OTC business in the U.S. Operating results attributable to ScarAway ® are included in the CHCA segment. The intangible assets acquired included a trademark with a 25 -year useful life, non-compete agreements with a four -year useful life, developed product technology with an eight -year useful life, and customer relationships with a 15 -year useful life. We utilized the relief from royalty method for valuing the trademark and developed product technology, the multi-period excess earnings method for valuing the customer relationships, and the lost income method for valuing the non-compete agreements. The goodwill acquired is deductible for tax purposes. GlaxoSmithKline Consumer Healthcare Product Portfolio On August 28, 2015 , we completed our acquisition of a portfolio of well-established OTC brands from GlaxoSmithKline Consumer Healthcare (“GSK Products”). This acquisition further leveraged our European market share and expanded our product offerings. The assets were purchased through an all-cash transaction valued at €200.0 million ( $223.6 million ). Operating results attributable to the acquired GSK Products are included primarily in the CHCI segment. The intangible assets acquired included trademarks with a 20 -year useful life and customer relationships with a 15 -year useful life. We utilized the relief from royalty method for valuing the trademarks and the multi-period excess earnings method for valuing the customer relationships. The goodwill acquired is deductible for tax purposes. Purchase Price Allocation of Acquisitions Completed During the Six Months Ended December 31, 2015 The Entocort ® , Naturwohl, ScarAway ® , GSK Products, and eight product development acquisitions opening balance sheets are final. The below table indicates the purchase price allocations for acquisitions completed during the six months ended December 31, 2015 (in millions): Entocort ® Naturwohl ScarAway ® GSK Products All Other (1) Purchase price paid $ 380.2 $ 150.4 $ 26.7 $ 223.6 $ 15.3 Contingent consideration — — — — 13.9 Total purchase consideration $ 380.2 $ 150.4 $ 26.7 $ 223.6 $ 29.2 Assets acquired: Cash and cash equivalents $ — $ 4.6 $ — $ — $ — Accounts receivable — 3.3 — — — Inventories 0.2 1.5 1.0 — — Goodwill — 61.0 3.5 32.6 — Definite-lived intangibles : Distribution and license agreements, supply agreements $ — $ 21.4 $ — $ — $ — Developed product technology, formulations, and product rights 380.0 — 0.5 — — Customer relationships and distribution networks — 25.9 9.8 61.5 — Trademarks, trade names, and brands — 64.2 11.4 129.5 — Non-compete agreements — 0.3 0.5 — — Indefinite-lived intangibles : In-process research and development $ — $ — $ — $ — $ 29.2 Total intangible assets $ 380.0 $ 111.8 $ 22.2 $ 191.0 $ 29.2 Total assets $ 380.2 $ 182.2 $ 26.7 $ 223.6 $ 29.2 Liabilities assumed: Accounts payable $ — $ 2.8 $ — $ — $ — Accrued liabilities — 1.6 — — — Net deferred income tax liabilities — 27.4 — — — Total liabilities $ — $ 31.8 $ — $ — $ — Net assets acquired $ 380.2 $ 150.4 $ 26.7 $ 223.6 $ 29.2 (1) Consists of eight product development acquisitions in our CHCA , CHCI and RX segments. Acquisitions Completed During the Year Ended June 27, 2015 Gelcaps Exportadora de Mexico, S.A. de C.V. On May 12, 2015 , we completed our acquisition of 100% of Gelcaps Exportadora de Mexico, S.A. de C.V. ("Gelcaps"), the Mexican operations of Durham, North Carolina-based Patheon Inc., for $37.9 million in cash. The acquisition added softgel manufacturing technology to our supply chain capabilities and broadened our presence, product portfolio, and customer network in Mexico. Operating results attributable to Gelcaps are included in the CHCA segment. The intangible assets acquired included a trademark with a 25 -year useful life and customer relationships with a 20 -year useful life. We utilized the relief from royalty method for valuing the trademark and the multi-period excess earnings method for valuing the customer relationships. Based on valuation estimates utilizing the comparative sales method, a step-up in the value of inventory of $0.6 million was recorded in the opening balance sheet, which was charged to cost of goods sold during the three months ended June 27, 2015. In addition, property, plant and equipment was written up by $0.9 million to its estimated fair market value based on a valuation method that included both the cost and market approaches. This additional step-up in value is being depreciated over the estimated remaining useful lives of the assets. The goodwill recorded is not deductible for tax purposes. Omega Pharma Invest N.V. On March 30, 2015 , we completed our acquisition of Omega, a limited liability company incorporated under the laws of Belgium. Omega was a leading European OTC company and is providing us several key benefits, including advancing our growth strategy outside the U.S. by providing access across a larger global platform with critical mass in key European countries, establishing commercial infrastructure in the high barrier-to-entry European OTC marketplace, strengthening our product portfolio while enhancing scale and distribution, and expanding our international management presence. We purchased 95.77% of the issued and outstanding share capital of Omega ( 685,348,257 shares) from Alychlo N.V. (“Alychlo”) and Holdco I BE N.V. (together with Alychlo, the “Sellers”), limited liability companies incorporated under the laws of Belgium, under the terms of the Share Purchase Agreement dated November 6, 2014 (the "Share Purchase Agreement"). Omega holds the remaining 30,243,983 shares as treasury shares. The acquisition was a cash and stock transaction made up of the following consideration (in millions except per share data): Perrigo ordinary shares issued 5.4 Perrigo per share price at transaction close on March 30, 2015 $ 167.64 Total value of Perrigo ordinary shares issued $ 904.9 Cash consideration 2,078.3 Total consideration $ 2,983.2 The cash consideration shown in the above table was financed by a combination of debt and equity. We issued $1.6 billion of debt and issued 6.8 million ordinary shares, which raised $999.3 million , net of issuance costs (refer to Note 10 ). The Sellers agreed to indemnify us for certain potential future losses. The Sellers’ indemnification and other obligations to us under the Share Purchase Agreement are secured by up to €120.9 million ( $127.2 million as of December 31, 2017 ) in cash that has been escrowed and 1.08 million of our ordinary shares, which are both being held in escrow to secure such obligations. Under the terms of the Share Purchase Agreement, Alychlo and its affiliates are subject to a three -year non-compete in Europe, and the Sellers are subject to a two -year non-solicit, in each case subject to certain exceptions. The Share Purchase Agreement contains other customary representations, warranties, and covenants of the parties, thereto. On December 16, 2016, we commenced an arbitral claim against the Sellers in connection with the Sellers' obligations to us under the Share Purchase Agreement. The fact of the claim has been made public, but the proceedings otherwise remain confidential. The Sellers deny liability (refer to Note 16 for additional information). The operating results attributable to Omega are included in the CHCI segment. We incurred general transaction costs (legal, banking and other professional fees), financing fees, and debt extinguishment charges in connection with the Omega acquisition. The amounts recorded were not allocated to a reporting segment. The table below details the acquisition costs, as well as losses on hedging activities associated with the acquisition purchase price, and where they were recorded (in millions): Year Ended Line item June 27, Administration $ 29.7 Interest expense, net 23.7 Other expense, net 324.0 Loss on extinguishment of debt 9.6 Total acquisition-related costs $ 387.0 See Note 8 for further details on losses on the Omega-related hedging activities shown above in Other expense, net, and Note 10 for details on the loss on extinguishment of debt. We acquired the following intangible assets: indefinite-lived brands, a definite-lived trade name with an eight -year useful life, definite-lived brands with a 22 -year useful life, a distribution network with a 21 -year useful life, and developed product technology with useful lives ranging from four to 13 years. We also recorded goodwill, which is not deductible for tax purposes and represents the value we assigned to the expected synergies described above, in our CHCI segment. We utilized the multi-period excess earnings method to value the indefinite-lived brands, the definite-lived brands, and distribution network. We utilized the relief from royalty method to value the developed product technology and definite-lived trade name. The weighted-average useful life of all intangible assets acquired is 20.6 years (refer to Note 3 for further detail on Goodwill and Other Intangible Assets). Based on valuation estimates utilizing the comparative sales method, a step-up in the value of inventory of $15.1 million was recorded in the opening balance sheet and was charged to cost of goods sold during the three months ended June 27, 2015. In addition, property, plant and equipment were written up $41.5 million to their estimated fair market value based on a valuation method that included both the cost and market approaches. This additional step-up in value is being depreciated over the estimated remaining useful lives of the assets. Additionally, the fair value of the debt assumed on the date of acquisition exceeded par value by $101.9 million , which was recorded as part of the carrying value of the underlying debt and will be amortized as a reduction of interest expense over the remaining terms of the respective debt instruments (refer to Note 10 for more information on the debt we assumed from Omega and our subsequent payments on the debt). Lumara Health, Inc. On October 31, 2014 , we acquired a portfolio of women's healthcare products from Lumara Health, Inc., ("Lumara") a privately-held, Chesterfield, Missouri-based specialty pharmaceutical company, for $83.0 million in cash. The acquisition of this portfolio further expanded our women's healthcare product offerings. Operating results attributable to the acquired Lumara products are included in the RX segment. The intangible assets acquired consisted of three product formulations with useful lives ranging from eight to 12 years. The assets were valued utilizing the multi-period excess earnings method. Purchase Price Allocation of Acquisitions Completed During the Year Ended June 27, 2015 The Gelcaps, Omega, and Lumara opening balance sheets are final. Measurement period adjustments to the Gelcaps opening balance sheet were not material; there were no measurement period adjustments to the Lumara opening balance sheet. Measurement period adjustment made to the Omega opening balance sheet are shown below. June 27, Measurement Period Adjustments December 31, Accounts receivable $ 227.4 $ (4.5 ) $ 222.9 Inventories $ 288.9 $ (11.9 ) $ 277.0 Property, plant and equipment, net $ 121.2 $ 9.6 $ 130.8 Goodwill $ 1,269.6 $ 419.1 $ 1,688.7 Intangible assets: Developed product technology, formulations, and product rights $ 36.9 $ (5.5 ) $ 31.4 Customer relationships and distribution networks 1,342.7 (286.4 ) 1,056.3 Definite-lived trademarks, trade names, and brands 282.0 5.5 287.5 Indefinite-lived trademarks, trade names, and brands 2,145.2 (141.4 ) 2,003.8 Total intangible assets $ 3,806.8 $ (427.8 ) $ 3,379.0 Accrued liabilities $ 50.0 $ (0.7 ) $ 49.3 Net deferred income tax liabilities $ 771.1 $ 14.4 $ 785.5 Other non-current liabilities $ 88.9 $ (29.0 ) $ 59.9 The measurement period changes in the Omega purchase accounting were due primarily to refinements in the underlying valuation assumptions for the intangible assets, including updates to the allocations of projected cash flows to the intangible assets and the related jurisdictional tax rates that were used in those projections, the accounting of intangible assets as definite-lived versus indefinite-lived assets, and finalization of the related deferred taxes. Valuation adjustments made during the measurement period resulted in a $10.2 million reduction of amortization expense (recorded primarily in Selling expense) for the six months ended December 31, 2015 that were related to the year ended June 27, 2015 (refer to Note 3 for further detail on Goodwill and Other Intangible Assets). The below table indicates the purchase price allocation for acquisitions completed during the year ended June 27, 2015 (in millions): Gelcaps Omega Lumara Total purchase consideration $ 37.9 $ 2,983.2 $ 83.0 Assets acquired: Cash and cash equivalents $ 4.6 $ 14.7 $ — Accounts receivable 7.3 222.9 2.9 Inventories 7.2 277.0 1.5 Prepaid expenses and other current assets 2.1 51.2 0.4 Property, plant and equipment, net 6.0 130.8 0.1 Goodwill 6.0 1,688.7 — Definite-lived intangibles : Developed product technology, formulations, and product rights $ — $ 31.4 $ 82.0 Customer relationships and distribution networks 6.6 1,056.3 — Trademarks, trade names, and brands — 287.5 — Indefinite-lived intangibles : Trademarks, trade names, and brands 4.4 2,003.8 — Total intangible assets $ 11.0 $ 3,379.0 $ 82.0 Other non-current assets 0.4 2.4 — Total assets $ 44.6 $ 5,766.7 $ 86.9 Liabilities assumed: Accounts payable $ 3.3 $ 225.0 $ — Short-term debt — 112.6 — Accrued liabilities 1.6 49.3 3.9 Payroll and related taxes — 51.3 — Accrued customer programs — 28.9 — Long-term debt — 1,471.0 — Net deferred income tax liabilities 1.4 785.5 — Other non-current liabilities 0.4 59.9 — Total liabilities $ 6.7 $ 2,783.5 $ 3.9 Net assets acquired $ 37.9 $ 2,983.2 $ 83.0 Actual and Unaudited Pro Forma Impact of Acquisitions Our Consolidated Financial Statements include operating results from the Tretinoin Products, Entocort ® , Naturwohl, GSK Products, ScarAway ® , Omega, Gelcaps, and Lumara ® acquisitions as well as from three small product acquisitions, from the date of each acquisition through December 31, 2017 . Net sales and operating income attributable to the Tretinoin Products and two small product acquisitions included in our financial statements for the year ended December 31, 2016 totaled $85.3 million and $45.1 million , respectively. Net sales and operating income attributable to the Entocort ® , Naturwohl, ScarAway ® , and GSK acquisitions included in our financial statements for the six months ended December 31, 2015 totaled $51.0 million and $20.6 million , respectively. Net sales and operating income attributable to the Omega, Gelcaps, and Lumara acquisitions included in our financial statements for the year ended June 27, 2015 totaled $418.2 million and $18.9 million , respectively. The following unaudited pro forma information gives effect to the Tretinoin Products, Entocort ® , Naturwohl, GSK Products, ScarAway ®, Omega, Gelcaps, and Lumara acquisitions, as well as two small product acquisitions, as if the acquisitions had occurred on the first day of the year ended ended June 27, 2015 and had been included in our Results of Operations for all periods presented thereafter (in millions): Year Ended Six Months Ended Year Ended (Unaudited) December 31, 2016 December 31, June 27, Net sales $ 5,288.6 $ 2,748.8 $ 5,682.5 Net income (loss) $ (4,011.0 ) $ 81.0 $ 250.2 The historical consolidated financial information of Perrigo, and the Tretinoin Products, Entocort ® , Naturwohl, GSK Products, and ScarAway ® , Omega, Gelcaps, and Lumara ® acquisitions and the two small product acquisitions, has been adjusted in the pro forma information to give effect to pro forma events that are (1) directly attributable to the transactions, (2) factually supportable and (3) expected to have a continuing impact on combined results. In order to reflect the occurrence of the acquisitions on the first day of the year ended June 27, 2015 as required, the unaudited pro forma results include adjustments to reflect the incremental amortization expense to be incurred based on the current values of each acquisition's identifiable intangible and tangible assets, along with the reclassification of acquisition-related costs from the period ended December 31, 2016 to the period ended June 27, 2015 . The unaudited pro forma results do not reflect future events that have occurred or may occur after the acquisitions. Divestitures Completed During the Year Ended December 31, 2017 On January 3, 2017 , we sold certain ANDAs for $15.0 million to a third party, which was recorded as a gain in Other operating income on the Consolidated Statements of Operations in our RX segment. On February 1, 2017 , we completed the sale of the animal health pet treats plant fixed assets within our CHCA segment, which were previously classified as held-for sale. We received $7.7 million in proceeds, which resulted in an immaterial loss. On April 6, 2017 , we completed the sale of our India API business to Strides Shasun Limited. We received $22.2 million of proceeds, inclusive of an estimated working capital adjustment, which resulted in an immaterial gain recorded in our Other segment. Prior to closing the sale, we determined that the carrying value of the India API business exceeded its fair value less the cost to sell, resulting in an impairment charge of $35.3 million , which was recorded in Impairment charges on the Consolidated Statements of Operations for the year ended December 31, 2016. On August 25, 2017 , we completed the sale of our Russian business, which was previously classified as held-for-sale, to Alvogen Pharma LLC. The total sale price was €12.7 million ( $15.1 million ), inclusive of an estimated working capital adjustment, which resulted in an immaterial gain recorded in our CHCI segment. Prior to closing the sale, we determined that the carrying value of the Russian business exceeded its fair value less the cost to sell, resulting in an impairment charge of $3.7 million , which was recorded in Impairment charges on the Consolidated Statements of Operations for the three months ended July 1, 2017. On November 21, 2017 , we completed the sale of our Israel API business, which was previously classified as held-for-sale, to SK Capital for a sale price of $110.0 million , which resulted in an immaterial gain recorded in our Other segment in Other expense (Income), net on the Consolidated Statements of Operations. As a result of the sale, we recognized a guarantee liability (refer to Note 6 ). Per the agreement, we will be reimbursed for tax receivables for tax years prior to closing and will need to reimburse SK Capital for the settlement of any uncertain tax liability positions for tax years prior to closing. In addition, after closing and going forward, the Israel API business, will be assessed by and liable to the Israel Tax Authority ("ITA") for any audit findings. We are no longer the primary obligor on the liabilities transferred to SK Capital on November 21, 2017 , however, we have provided a guarantee on certain obligations that were recorded at a fair value of $13.8 million , with a maximum possible payout of $34.9 million . On December 20, 2017, we completed the sale of one of the Development-Stage Rx Products to an ophthalmic pharmaceutical company. We will potentially receive the following consideration: (1) a milestone payment of $1.5 million after the buyer achieves net sales of $25.0 million in any given calendar year; (2) a milestone payment of $5.0 million after the buyer achieves $50.0 million in net sales in any given year; and (3) royalty payments of 2.5% of all net sales of the product from the date of the first commercial sales of the product and continuing until market entry of a generic equivalent of the product. Divestitures Completed During the Year Ended December 31, 2016 On August 5, 2016 , we completed the sale of our U.S. Vitamins, Minerals, and Supplements ("VMS") business within our CHCA segment to International Vitamins Corporation ("IVC") for $61.8 million inclusive of an estimated working capital adjustment. Prior to closing the sale, we determined that the carrying value of the VMS business exceeded its fair value less the cost to sell, resulting in an impairment charge of $6.2 million , which was recorded in Impairment charges on the Consolidated Statements of Operations for the year ended December 31, 2016. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Changes in the carrying amount of goodwill, by reportable segment, were as follows (in millions): CHCA CHCI RX Specialty Sciences Other Total Balance at June 27, 2015 $ 1,817.2 $ 1,530.2 $ 1,086.0 $ 199.6 $ 88.2 $ 4,721.2 Business acquisitions 9.7 87.4 — — — 97.1 Changes in assets held-for-sale (13.0 ) — — — (14.6 ) (27.6 ) Currency translation adjustments (0.8 ) (53.3 ) (1.9 ) — (2.1 ) (58.1 ) Purchase accounting adjustments 1.2 418.9 — — — 420.1 Balance at December 31, 2015 1,814.3 1,983.2 1,084.1 199.6 71.5 5,152.7 Business acquisitions — — 1.7 — — 1.7 Changes in assets held-for-sale 4.5 — — — 9.0 13.5 Impairments (24.5 ) (868.4 ) — (199.6 ) — (1,092.5 ) Currency translation adjustments (0.9 ) (27.5 ) 0.8 — 0.9 (26.7 ) Purchase accounting adjustments 17.2 (16.5 ) — — — 0.7 Balance at December 31, 2016 1,810.6 1,070.8 1,086.6 — 81.4 4,049.4 Re-allocation of goodwill (1) 35.3 — 27.7 — (63.0 ) — Business divestitures — (4.1 ) — — (26.4 ) (30.5 ) Currency translation adjustments 1.5 139.0 8.0 — 8.0 156.5 Balance at December 31, 2017 $ 1,847.4 $ 1,205.7 $ 1,122.3 $ — $ — $ 4,175.4 (1) Certain cash flow associated with the API business were retained. We performed a relative fair value allocation of the business retained and allocated it among the two segments where the business was allocated. The increase in goodwill in the year ended December 31, 2017 was due primarily to foreign currency translation adjustments. The decrease in goodwill for the year ended December 31, 2016 was due primarily to impairment charges recorded in the CHCI and Specialty Sciences segments as discussed below. The increase in goodwill in the six months ended December 31, 2015 was due primarily to purchase accounting adjustments to the Omega acquisition, as well as the Naturwohl and GSK acquisitions recorded in the CHCI segment (refer to Note 2 ). As required by our policy, we tested goodwill for impairment in the fourth quarter of 2017 (refer to Note 1 ). We determined the fair value of each of our reporting units exceeded their net book values. The fair values of the BCH, UK AUS and Animal Health reporting units were each less than 25.0% higher than their respective net book values as of the annual assessment date. As a result, these reporting units are inherently at a higher risk for future impairments if they experience deterioration in business performance or market multiples, or increases in discount rates. These reporting units had the following remaining goodwill balances as of December 31, 2017 (in millions): Reporting Unit Goodwill Remaining in Reporting Unit Segment Fair Value in excess of Carrying Value BCH $ 1,026.0 CHCI 6.6% Animal Health $ 178.9 CHCA 23.6% UK AUS $ 53.1 CHCI 18.3% Subsequently, at the end of the fourth quarter of 2017, the Animal Health reporting unit had an indication of potential impairment resulting from the termination of a supply agreement. We prepared an impairment test as of December 31, 2017 and determined the fair value of the Animal Health reporting unit continued to exceed net book value, by 8.9% . The 8.9% margin was lower than the excess fair value over carrying value of 23.6% that was estimated as of October 1, 2017. Therefore, while no impairment was recorded in 2017, the supply agreement termination increased the risk of future impairment in this reporting unit. The discounted cash flow forecasts used for these reporting units in goodwill impairment testing include assumptions about future activity levels in both the near term and longer-term. If growth in these reporting units is lower than expected, we may experience deterioration in our cash flow forecasts that may indicate goodwill in the reporting units may be impaired in future impairment tests. We continue to monitor the progress and assess the reporting units for potential impairment should impairment indicators arise, as applicable, and at least annually during our fourth quarter impairment testing. During the year ended December 31, 2016, we identified indicators of goodwill impairment for certain of our reporting units, which required us to complete interim goodwill impairment testing (refer to Note 1 for our impairment process). Step one of the goodwill impairment test involves determining the fair value of the reporting unit using a discounted cash flow technique and comparing it to the reporting unit’s carrying value. The main assumptions supporting the cash flow projections used to determine the reporting units’ fair value include revenue growth based on product line extensions, product life cycle strategies, and geographical expansion within the markets in which the reporting unit distributes products, gross margins consistent with historical trends, and advertising and promotion investments largely consistent with the reporting unit's growth plans. If a reporting unit does not pass step one of the goodwill impairment test, step two is completed. The second step of the goodwill impairment test requires that we determine the implied fair value of the reporting unit’s goodwill, which involves determining the value of the reporting unit’s individual assets and liabilities. If the reporting unit’s carrying value exceeds its book value, an impairment charge is recorded. During the three months ended April 2, 2016, we identified indicators of impairment for our Branded Consumer Healthcare - Rest of World ("BCH-ROW") reporting unit, which comprises primarily operations attributable to the Omega acquisition in all geographic regions except for Belgium. The primary impairment indicators included the decline in our 2016 performance expectations and a reduction in our long-range revenue growth forecast. BCH-ROW did not pass step one of goodwill impairment testing. The change in fair value from previous estimates was due primarily to the changes in the market and performance of the brands such that the evaluation of brand prioritization and product extensions or launches in new regions are being more focused to maximize the potential of all brands in the segment's portfolio. Based on our evaluation and initial estimates of the fair values of the assets and liabilities and the deficit of the fair value when compared to the related book value, we recorded $130.5 million in impairment charges on the Consolidated Statement of Operations within our CHCI segment. During the three months ended October 1, 2016, we identified additional indicators of goodwill impairment in both our BCH-ROW and our Branded Consumer Healthcare - Belgium ("BCH-Belgium") reporting units. With respect to both reporting units, the primary impairment indicators included an additional decline in our 2016 performance expectations for the remainder of the year and a reduction in our long-range revenue growth and margin forecasts due to the factors outlined below. Neither the BCH-ROW nor the BCH-Belgium reporting units passed step one of goodwill impairment testing. As it relates to the BCH-ROW reporting unit, the changes in fair value from previous estimates were due primarily to (1) changes in the market and performance of certain brands due to moderated new product launch assumptions, (2) execution of certain key product strategies falling short of expectations causing a reduction to baseline forecast models in France, Germany and Italy and (3) certain macro-economic factors continuing to impact the business more than expected in France, Russia and Turkey in addition to unfavorable foreign currency impacts experienced (primarily in the UK related to Brexit.) As it relates to the BCH-Belgium reporting unit, the changes in fair value from previous estimates were due to changes in the forecasts as a result of a reduction in volume with a major wholesaler due to factors consistent with those outlined for the BCH-ROW reporting unit. Based on our estimates of the fair values of the assets and liabilities and the deficit of the fair value when compared to the related book value, we recorded an impairment charge of $675.6 million related to the BCH-ROW reporting unit and $62.3 million related to the BCH-Belgium reporting unit on the Consolidated Statement of Operations within our CHCI segment. During the three months ended December 31, 2016, we identified indicators of goodwill impairment in the BCH-Belgium reporting unit related to the early termination of a distribution agreement. We prepared a goodwill impairment test as of December 3, 2016, which was the end of the month in which the impairment indicator occurred. Step one of the goodwill impairment test indicated that the fair value of the BCH-Belgium reporting unit as greater than its net book value. As a result, we did not perform the second step of the goodwill impairment test. During the three months ended December 31, 2016, we identified indicators of goodwill impairment in the Animal Health reporting unit related to changes in the market and performance of certain brands. We prepared a goodwill impairment test as of October 2, 2016 as part of our annual goodwill impairment testing process. Step one of the goodwill impairment test indicated that the fair value of the Animal Health reporting unit was below its net book value. As a result, we performed the second step of the goodwill impairment test to measure the amount of impairment. We concluded that Animal Health goodwill was impaired by $24.5 million , which we recorded in Impairment charges on the Consolidated Statement of Operations within our CHCA segment. During the three months ended December 31, 2016, we identified indicators of goodwill impairment in the Specialty Sciences reporting unit related to our decision to review strategic alternatives for the Tysabri ® financial asset. As a result of the impairment indicators, we prepared a goodwill impairment test as of December 31, 2016. Step one of the goodwill impairment test indicated that the fair value of the Specialty Sciences reporting unit was below its net book value. As a result, we initiated the second step of the goodwill impairment test to measure the amount of impairment. We concluded that the goodwill was fully impaired and recorded an impairment of $199.6 million in Impairment charges on the Consolidated Statement of Operations within our Specialty Sciences segment. No impairment charges were recorded as a result of the annual goodwill impairment testing during the six months ended December 31, 2015 . During the year ended June 27, 2015 , we performed our annual goodwill impairment testing, which indicated that our CHCA Mexico reporting unit's goodwill fair value was below its net book value as of March 28, 2015. As a result, we initiated the second step of the goodwill impairment test to measure the amount of impairment. We concluded that the goodwill was fully impaired and recorded an impairment of $6.8 million in the CHCA segment during the year ended June 27, 2015 in Impairment charges. No other segments were affected by this impairment charge. Intangible Assets Other intangible assets and the related accumulated amortization consisted of the following (in millions): December 31, 2017 December 31, 2016 December 31, 2015 Gross Accumulated Amortization Gross Accumulated Amortization Gross Accumulated Amortization Definite-lived intangibles : Distribution and license agreements, supply agreements $ 311.2 $ 169.8 $ 305.6 $ 120.4 $ 242.4 $ 77.7 Developed product technology, formulations, and product rights 1,358.4 598.7 1,418.1 526.0 1,387.6 426.0 Customer relationships and distribution networks 1,642.0 460.6 1,489.9 307.5 1,520.7 193.0 Trademarks, trade names, and brands 1,335.4 129.5 1,189.3 55.3 539.4 22.8 Non-compete agreements 14.7 12.6 14.3 11.2 15.2 12.7 Total definite-lived intangibles $ 4,661.7 $ 1,371.2 $ 4,417.2 $ 1,020.4 $ 3,705.3 $ 732.2 Indefinite-lived intangibles : Trademarks, trade names, and brands $ 52.1 $ — $ 50.5 $ — $ 1,868.1 $ — In-process research and development 38.2 — 64.0 — 48.2 — Total indefinite-lived intangibles $ 90.3 $ — $ 114.5 $ — $ 1,916.3 $ — Total other intangible assets $ 4,752.0 $ 1,371.2 $ 4,531.7 $ 1,020.4 $ 5,621.6 $ 732.2 Certain intangible assets are denominated in currencies other than the U.S. dollars; therefore, their gross and net carrying values are subject to foreign currency movements. The increase in gross amortizable intangible assets during the year ended December 31, 2017 was due primarily to foreign currency translation . The decrease in gross amortizable intangible assets during the year ended December 31, 2016 was due to the reclassification of Omega indefinite-lived assets to definite-lived assets as described below, offset by current year impairments taken as described below. The increase during the six months ended December 31, 2015 was due to the Entocort ® , GSK, Naturwohl, and ScarAway ® acquisitions, offset partially by purchase price adjustments to the Omega intangible assets (refer to Note 2 ). Intangible asset impairments taken are as follows (in millions): Year Ended Six Months Ended December 31, 2017 December 31, 2016 December 31, 2015 Definite-Lived Intangible Assets IPR&D Indefinite-Lived Intangible Assets Definite-Lived Intangible Assets IPR&D Indefinite-Lived Intangible Assets CHCA $ — $ — $ 0.4 $ — $ — $ — CHCI — 1.1 849.1 321.4 3.5 185.1 RX 19.7 11.6 — 342.2 — — Other — — — 2.0 — — $ 19.7 $ 12.7 $ 849.5 $ 665.6 $ 3.5 $ 185.1 During the three months ended July 1, 2017, we identified impairment indicators for our Lumara Health, Inc. ("Lumara") product assets. The primary impairment indicators included the decline in our 2017 performance expectations and a reduction in our long-range revenue growth forecast. The assessment utilized the multi-period excess earnings method to determine fair value and resulted in an impairment charge of $18.5 million in Impairment charges on the Consolidated Statements of Operations within our RX segment, which represented the difference between the carrying amount of the intangible assets and their estimated fair value. During the three months ended April 2, 2016, we identified indicators of impairment associated with certain indefinite-lived intangible assets acquired in conjunction with the Omega acquisition. The primary impairment indicators included the decline in our 2016 performance expectations and a reduction in our long-range revenue growth forecast. The assessment utilized the excess earnings method to determine fair value and resulted in an impairment charge of $273.4 million in Impairment charges on the Consolidated Statements of Operations within our CHCI segment, which represented the difference between the carrying amount of the intangible assets and their estimated fair value. The change in fair value from previous estimates was due primarily to the changes in the market and performance of the brands such that the evaluation of brand prioritization and product extensions or launches in new regions are being more focused to maximize the potential of all brands in the segment's portfolio. The main assumptions supporting the fair value of these assets and cash flow projections included revenue growth based on product line extensions, product life cycle strategies, geographical expansion within the markets in which the CHCI segment distributes products, gross margins consistent with historical trends, and advertising and promotion investments largely consistent with the segment's growth plans. During the three months ended October 1, 2016, we identified additional indicators of impairment associated with certain indefinite-lived and definite-lived intangible brand category assets acquired in conjunction with the Omega acquisition. The primary impairment indicators are discussed above in goodwill. The assessment of the indefinite-lived assets utilized the excess earnings method to determine fair value and resulted in an impairment charge of $575.7 million . With regards to definite-lived assets, it was determined that the carrying value of one asset group was not recoverable based on an assessment of the undiscounted future cash flows expected to be generated by the asset group. Given this, the excess earnings method was utilized to determine fair value of the definite-lived asset and resulted in an impairment charge of $290.9 million . Both charges, which represented the difference between the carrying amount of the intangible assets and their estimated fair value, were recorded in Impairment charges on the Consolidated Statements of Operations within our CHCI segment. The main assumptions supporting the fair value of these assets and cash flow projections are included in the goodwill discussions above. During the three months ended December 31, 2016, we identified impairment indicators in our Entocort ® product assets which related to the entrance of new market competition and resulting negative impacts on sales volume and pricing. Utilizing a multi-period excess earnings method, we determined that the Entocort ® product assets were impaired by $342.2 million . We recorded this impairment in Impairment charges on the Consolidated Statement of Operations within our RX segment. During the three months ended December 31, 2016, we identified impairment indicators in certain definite-lived intangible assets, including trademarks and trade names related to our Herron products that we originally acquired through the acquisition of Aspen. After determining the assets were impaired, we utilized the relief from royalty method to quantify the impairment, resulting in a $30.5 million impairment. We recorded these impairments in Impairment charges on the Consolidated Statement of Operations within our CHCI segment. During our impairment testing for the six months ended December 31, 2015, we identified an impairment of certain indefinite-lived intangible assets based on management’s expectations of the prospects for future revenues, profits, and cash flows associated with these assets. The indefinite-lived intangible assets were purchased in conjunction with the Omega acquisition and are included in the CHCI segment. The assessment utilized the excess earnings method to determine fair value and resulted in an impairment charge of $185.1 million , which represents the difference between the carrying amount of the intangible assets and their estimated fair value. The amount was recorded in Impairment charges on the Consolidated Statements of Operations within the CHCI segment. The primary assumptions supporting the fair value of these assets and cash flow projections assume modest revenue growth based on product line extensions, product life cycle strategies, and geographical expansion within the markets in which the CHCI segment currently distributes products, and gross margins and advertising and promotion investments largely consistent with historical trends. No material impairment charges were recorded as a result of the annual intangible asset impairment testing during the year ended June 27, 2015 . We recorded an impairment charge of $12.7 million and $3.5 million on certain IPR&D assets during the years ended December 31, 2017 and December 31, 2016 , respectively, due to changes in the projected development and regulatory timelines for various projects, we also recorded a decrease in the contingent consideration liability associated with certain IPR&D assets in Other operating income on the Consolidated Statements of Operations (refer to Note 6) . In addition, due to reprioritization of certain brands in the CHCI segment and change in performance expectations for the cough/cold/allergy, anti-parasite, personal care, lifestyle, and natural health brands, we reclassified $364.5 million and $674.4 million of indefinite-lived assets to definite-lived assets with useful lives of 20 years, which we began amortizing during the second and third quarters of 2016, respectively. The remaining weighted-average useful life for our amortizable intangible assets by asset class at December 31, 2017 was as follows: Amortizable Intangible Asset Category Remaining Weighted-Average Useful Life (Years) Distribution and license agreements, supply agreements 7 Developed product technology, formulations, and product rights 12 Customer relationships and distribution networks 17 Trademarks, trade names, and brands 20 Non-compete agreements 2 We recorded amortization expense of $349.6 million , $356.8 million , $128.6 million , $174.5 million during the years ended December 31, 2017 and December 31, 2016 , the six months ended December 31, 2015 , and the year ended June 27, 2015 , respectively. The amortization expense in the year ended December 31, 2017 remained relatively flat. The increase in amortization expense in the year ended December 31, 2016 was due primarily to the incremental amortization expense incurred on the definite-lived intangible assets acquired from the Omega, Entocort ® , and Tretinoin Products acquisitions. In addition, we incurred additional amortization in 2016 due to the previously indefinite-lived Omega brands changing classification to definite-lived during the year. The increase in amortization expense in the six months ended December 31, 2015 was due primarily to definite-lived assets acquired from Omega. The increase in amortization expense in the year ended June 27, 2015 was due primarily to the inclusion of one quarter of amortization expense related to the intangible assets acquired from Omega. Estimated future amortization expense includes the additional amortization related to recently acquired intangible assets subject to amortization. Our estimated future amortization expense is as follows (in millions): Year Amount 2018 $ 341.0 2019 316.4 2020 280.8 2021 251.8 2022 222.0 Thereafter 1,878.5 |
Accounts Receivable Factoring
Accounts Receivable Factoring | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Receivable Factoring [Abstract] | |
ACCOUNTS RECEIVABLE FACTORING | ACCOUNTS RECEIVABLE FACTORING We have accounts receivable factoring arrangements with non-related third-party financial institutions (the “Factors”). Pursuant to the terms of the arrangements, we sell to the Factors certain of our accounts receivable balances on a non-recourse basis for credit approved accounts. An administrative fee per invoice is charged on the gross amount of accounts receivables assigned to the Factors, and interest is calculated at the applicable EUR LIBOR rate plus a spread. The total amount factored on a non-recourse basis and excluded from accounts receivable was $27.5 million , $50.7 million , and $64.5 million at December 31, 2017 , December 31, 2016 and December 31, 2015 , respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Major components of inventory were as follows (in millions): December 31, December 31, December 31, Finished goods $ 454.3 $ 431.1 $ 537.2 Work in process 152.8 165.7 151.6 Raw materials 199.8 198.2 209.9 Total inventories $ 806.9 $ 795.0 $ 898.7 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement | FAIR VALUE MEASUREMENTS Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable. Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs are not observable. The following tables summarize the valuation of our financial instruments carried at fair value by the above pricing categories (in millions): Fair Value Fair Value Hierarchy December 31, December 31, December 31, Measured at fair value on a recurring basis: Assets: Investment securities Level 1 $ 17.0 $ 38.2 $ 14.9 Foreign currency forward contracts Level 2 $ 6.3 $ 3.8 $ 4.8 Funds associated with Israeli severance liability Level 2 16.3 15.9 17.2 Total level 2 assets $ 22.6 $ 19.7 $ 22.0 Royalty Pharma contingent milestone payments Level 3 $ 134.5 $ — $ — Financial assets Level 3 — 2,350.0 5,310.0 Total level 3 assets $ 134.5 $ 2,350.0 $ 5,310.0 Liabilities: Interest rate swap agreements Level 2 $ — $ — $ 0.3 Foreign currency forward contracts Level 2 3.8 5.0 3.9 Total level 2 liabilities $ 3.8 $ 5.0 $ 4.2 Contingent consideration Level 3 $ 22.0 $ 69.9 $ 17.9 Measured at fair value on a non-recurring basis: Assets: Goodwill (1) Level 3 $ — $ 1,148.4 $ — Indefinite-lived intangible assets (2) Level 3 — 0.3 1,031.8 Definite-lived intangible assets (3) Level 3 11.5 758.0 — Assets held for sale, net Level 3 — 18.2 37.5 Total level 3 assets $ 11.5 $ 1,924.9 $ 1,069.3 (1) As of December 31, 2016, goodwill with a carrying amount of $2.2 billion was written down to its implied fair value of $1.1 billion . (2) As of December 31, 2016, indefinite-lived intangible assets with a carrying amount of $0.7 million were written down to a fair value of $0.3 million . As of December 31, 2015, indefinite-lived intangible assets with a carrying amount of $1.2 billion were written down to a fair value of $1.0 billion . (3) As of December 31, 2017, definite-lived intangible assets with a carrying amount of $31.2 million were written down to a fair value of $11.5 million . As of December 31, 2016, definite-lived intangible assets with a carrying amount of $2.3 billion were written down to a fair value of $758.0 million . Included in this balance are indefinite-lived intangible assets with a fair value of $364.5 million and $674.2 million that were reclassified to definite-lived assets at April 3, 2016 and October 2, 2016, respectively. There were no transfers among Level 1, 2, and 3 during the years ended December 31, 2017, and December 31, 2016 , or the six months ended December 31, 2015 . Our policy regarding the recording of transfers between levels is to record any such transfers at the end of the reporting period (refer to Note 7 for information on our investment securities and Note 8 for a discussion of derivatives). Foreign Currency Forward Contracts The fair value of foreign currency forward contracts is determined using a market approach, which utilizes values for comparable derivative instruments. Funds Associated with Israel Severance Liability Israeli labor laws and agreements require us to pay benefits to employees dismissed or retiring under certain circumstances. Severance pay is calculated on the basis of the most recent employee salary levels and the length of employee service. Our Israeli subsidiaries also provide retirement bonuses to certain managerial employees. We make regular deposits to retirement funds and purchase insurance policies to partially fund these liabilities. The funds are determined using prices for recently traded financial instruments with similar underlying terms, as well as directly or indirectly observable inputs, such as interest rates and yield curves, that are observable at commonly quoted intervals. Financial Assets On December 18, 2013 , we acquired Elan, which had a royalty agreement with Biogen Idec Inc. ("Biogen"), whereby Biogen conveyed the right to receive royalties that are typically payable on sales revenue generated by the sale, distribution or other use of the drug Tysabri ® . Pursuant to the royalty agreement, we were entitled to royalty payments from Biogen based on its Tysabri ® sales in all indications and geographies. We received royalties of 12% on worldwide Biogen sales of Tysabri ® from December 18, 2013 through April 30, 2014. From May 1, 2014, we received royalties of 18% on annual worldwide Biogen sales of Tysabri ® up to $2.0 billion and 25% on annual sales above $2.0 billion . Prior to its divestiture on March 27, 2017, we accounted for the Tysabri ® royalty stream as a financial asset and elected to use the fair value option model. We made the election to account for the Tysabri ® financial asset using the fair value option as we believed this method was most appropriate for an asset that did not have a par value, a stated interest stream, or a termination date. The financial asset acquired represented a single unit of accounting. The fair value of the financial asset acquired was determined by using a discounted cash flow analysis related to the expected probability weighted future cash flows to be generated by the royalty stream. The financial asset was classified as a Level 3 asset within the fair value hierarchy, as our valuation utilized significant unobservable inputs, including industry analyst estimates for global Tysabri ® sales, probability weighted as to the timing and amount of future cash flows along with certain discount rate assumptions. Cash flow forecasts included the estimated effect and timing of future competition, considering patents in effect for Tysabri ® through 2024 and contractual rights to receive cash flows into perpetuity. The discounted cash flows were based upon the expected royalty stream forecasted into perpetuity using a 20 -year discrete period with a declining rate terminal value. The pre-tax discount rate utilized was 7.72% and 7.83% at December 31, 2015, and June 27, 2015, respectively. In the first quarter of 2016, a competitor's pipeline product, Ocrevus ® , received breakthrough therapy designation from the U.S. Food and Drug Administration ("FDA"). Breakthrough therapy designation is granted when a drug is intended alone or in combination with one or more other drugs to treat a serious or life threatening disease or condition and preliminary clinical evidence indicates that the drug may demonstrate substantial improvement over existing therapies on one or more clinically significant endpoints, such as substantial treatment effects observed early in clinical development. In June 2016, the FDA granted priority review with a target action date in December 2016. A priority review is a designation when the FDA will direct overall attention and resources to the evaluation of applications for drugs that, if approved, would be significant improvements in the safety or effectiveness of the treatment, diagnosis, or prevention of serious conditions when compared to standard applications. The product was approved late in the first quarter of 2017. The product is expected to compete with Tysabri ® , and we expected it to have a significant negative impact on the Tysabri ® royalty stream. Industry analysts believe that, based on released clinical study information, Ocrevus ® will compete favorably against Tysabri ® in the relapsing, remitting multiple sclerosis market segment due to its high efficacy and convenient dosage form. Given the new market information for Ocrevus ® , we used industry analyst estimates to reduce our first ten year growth forecasts from an average growth of approximately 3.4% in the fourth calendar quarter of 2015 to an average decline of approximately minus 2.0% in the third and fourth calendar quarters of 2016. In November 2016, we announced we were evaluating strategic alternatives for the Tysabri ® financial asset. As of December 31, 2016, the financial asset was adjusted based on the strategic review and sale process. These effects, combined with the change in discount rate each quarter, led to a reduction in fair value of $204.4 million , $910.8 million , $377.4 million and $1.1 billion in the first, second, third and fourth quarters of 2016, respectively. At December 31, 2015, and June 27, 2015, we performed an evaluation to assess the discount rate and general market conditions potentially affecting the fair value of our Tysabri ® financial asset. As of December 31, 2015, had this discount rate increased or decreased by 0.5% , the fair value of the asset would have increased by $270.0 million or decreased by $260.0 million , respectively. As of June 27, 2015, had this discount rate increased or decreased by 0.5% , the fair value of the asset would have decreased by $260.0 million or increased by $290.0 million , respectively. The estimated fair value of the asset is subject to variation should those cash flows vary significantly from those estimates. Quarterly, we assess the expected future cash flows and to the extent such payments are greater or less than initial estimates, or the timing of such payments is materially different than the original estimates, we will adjust the estimated fair value of the asset. As of December 31, 2015, if the expected royalty cash flows used in the estimation process had increased or decreased by 5.0% , the fair value of the asset would have increased by $270.0 million or decreased by $280.0 million , respectively. As of June 27, 2015, if the expected royalty cash flows used in the estimation process had increased or decreased by 5.0% , the fair value of the asset would have increased by $280.0 million or decreased by $280.0 million , respectively. In November 2016, we announced we were evaluating strategic alternatives for the Tysabri ® financial asset. As of December 31, 2016, the financial asset was adjusted based on this strategic review and sale process. On March 27, 2017 , we announced the completed divestment of our Tysabri ® financial asset to Royalty Pharma for up to $2.85 billion , consisting of $2.2 billion in cash and up to $250.0 million and $400.0 million in milestone payments if the royalties on global net sales of Tysabri ® that are received by Royalty Pharma meet specific thresholds in 2018 and 2020, respectively. As a result of this transaction, we transferred the entire financial asset to Royalty Pharma and recorded a $17.1 million gain during the three months ended April 1, 2017. We elected to account for the contingent milestone payments using the fair value option method, and these were recorded at an estimated fair value of $134.5 million as of December 31, 2017 . We chose the fair value option as we believe it will help investors understand the potential future cash flows we may receive associated with the two contingent milestones. The following table summarizes the change in our Consolidated Balance Sheet for the Tysabri ® Financial Asset, which includes our fair value adjustment that is a Level 3 measurement under ASC 820 and is included in our Consolidated Statement of Operations for the years ended December 31, 2017 and December 31, 2016, six months ended December 31, 2015, and year ended June 27, 2015 (in millions): Year Ended Six Months Ended Year Ended December 31, 2017 December 31, December 31, June 27, Tysabri ® financial asset Beginning balance $ 2,350.0 $ 5,310.0 $ 5,420.0 $ 5,680.0 Royalties earned — (351.8 ) (167.3 ) (338.5 ) Change in fair value — (2,608.2 ) 57.3 78.5 Divestitures (2,350.0 ) — — — Ending balance $ — $ 2,350.0 $ 5,310.0 $ 5,420.0 Royalty Pharma Contingent Milestone Payments We valued the contingent milestone payments using a modified Black-Scholes Option Pricing Model ("BSOPM"). Key inputs in the BSOPM are the estimated volatility and rate of return of royalties on global net sales of Tysabri ® that are received by Royalty Pharma over time until payment of the contingent milestone payments is completed. Volatility and the estimated fair value of the milestones have a positive relationship such that higher volatility translates to a higher estimated fair value of the contingent milestone payments. In the valuation of contingent milestone payments performed, we assumed volatility of 30.0% and a rate of return of 8.07% as of December 31, 2017 . We assess volatility and rate of return inputs quarterly by analyzing certain market volatility benchmarks and the risk associated with Royalty Pharma achieving the underlying projected royalties. During the year ended December 31, 2017 , the fair value of the Royalty Pharma contingent milestone payments decreased $42.0 million , as a result of the decrease in the estimated projected Tysabri ® revenues due to the launch of Ocrevus ® late in the first quarter of 2017. In addition, payment of the contingent milestone payments is dependent on global net sales of Tysabri ® . Of the $134.5 million of estimated fair valued contingent milestone payments as of December 31, 2017, $79.7 million and $54.8 million relates to the 2018 and 2020 contingent milestone payments, respectively. If Tysabri ® global net sales do not meet the prescribed threshold in 2018, we will write off the $79.7 million asset as an expense to Change in financial assets on the Consolidated Statement of Operations. If the prescribed threshold is exceeded, we will write up the asset to $250 million and recognize income of $170.3 million in Change in financial assets on the Consolidated Statement of Operations. If Tysabri ® global net sales do not meet the prescribed threshold in 2020, we will write off the $54.8 million asset as an expense to Change in financial assets on the Consolidated Statement of Operations. If the prescribed threshold is exceeded, we will write up the asset to $400.0 million and recognize income of $345.2 million in Change in financial assets on the Consolidated Statement of Operations. Global Tysabri ® net sales need to exceed $1.9 billion and $2.0 billion in 2018 and 2020, respectively in order for Royalty Pharma to receive the level of royalties needed to trigger the milestone payments owed to us. See Note 1 for amounts recorded in our accounts receivable related to our Tysabri ® financial asset. The table below presents a reconciliation for the Royalty Pharma contingent milestone payments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in millions). Change in fair value in the table was recorded in Change in financial assets on the Consolidated Statements of Operations. Year Ended December 31, Royalty Pharma Contingent Milestone Payments Beginning balance $ — Additions 184.5 Payments (8.0 ) Change in fair value (42.0 ) Ending balance $ 134.5 Interest Rate Swaps The fair values of interest rate swaps are determined using a market approach, which utilizes values for comparable swap instruments. Guarantee Liability Related to The Israel API Sale On November 21, 2017 , we completed the sale of our Israel API business to SK Capital (refer to Item 8. Note 2 ). As a result of the sale, we recognized a guarantee liability, which was classified as a level 3 liability. Per the agreement, we will be reimbursed for tax receivables for tax years prior to closing and will need to reimburse SK Capital for the settlement of any uncertain tax liability positions for tax years prior to closing. In addition, after closing and going forward, the Israel API business, will be assessed by and liable to the Israel Tax Authority ("ITA") for any audit findings. As of November 21, 2017 , we are no longer the primary obligor on the liabilities transferred to SK Capital, however, we have provided a guarantee on certain obligations that were recorded at a fair value of $13.8 million , with a maximum possible payout of $34.9 million . Contingent Consideration Contingent consideration represents milestone payment obligations obtained through product acquisitions, which are valued using estimates based on probability-weighted outcomes, sensitivity analysis, and discount rates reflective of the risk involved. The estimates are updated quarterly and the liabilities are adjusted to fair value depending on a number of assumptions, including the competitive landscape and regulatory approvals that may impact the future sales of a product. We reduced a contingent consideration liability associated with certain IPR&D assets (refer to Note 3 ) and recorded a corresponding gain of $17.4 million during the year ended December 31, 2017 . The liability decrease relates to a reduction of the probability of achievement assumptions and anticipated cash flows (refer to Note 2 ). In addition, we sold a certain IPR&D asset and the corresponding contingent consideration of $12.5 million was reduced. Purchases or additions for the year ended December 31, 2016 included contingent consideration associated with five transactions. The table below presents a reconciliation for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in millions). Net realized losses in the table were recorded in Other expense (Income), net on the Consolidated Statements of Operations. Year Ended Six Months Ended December 31, December 31, December 31, Contingent Consideration Beginning balance $ 69.9 $ 17.9 $ — Net realized losses (19.5 ) (2.1 ) — Purchases or additions — 56.7 17.9 Divestiture (12.5 ) — — Currency translation adjustments 1.5 0.1 — Settlements (17.4 ) (2.7 ) — Ending balance $ 22.0 $ 69.9 $ 17.9 Non-recurring Fair Value Measurements The non-recurring fair values represent only those assets whose carrying values were adjusted to fair value during the reporting period. Goodwill and Indefinite-Lived Intangible Assets We have six reporting units for which we assess the goodwill in each reporting unit for impairment. We conduct our goodwill and indefinite-lived intangible asset impairment test on the first day of the fourth quarter, unless indications of impairment exists during an interim period. We utilize a comparable company market approach, weighted equally with a discounted cash flow analysis, to determine the fair value of the reporting units . We utilize either a relief from royalty method or a multi-period excess earnings method to value our indefinite-lived intangible assets. We use a consistent set of projected financial information for the goodwill and indefinite-lived asset impairment tests. The discounted cash flow analysis that we prepared for goodwill impairment testing purposes for the year ended December 31, 2017 included long-term growth rates ranging from of 2.0% to 3.0% . We also utilized discount rates ranging from 7.5% to 13.5% , which were deemed to be commensurate with the required investment return and risk involved in realizing the projected free cash flows of each reporting unit. In addition, we burdened projected free cash flows with the capital spending deemed necessary to support the cash flows of each reporting unit, and applied the tax rates that were applicable to the jurisdictions represented within each reporting unit. We recorded Impairment charges on the Consolidated Statements of Operations related to Goodwill and indefinite lived intangible assets of $1.1 billion and $849.5 million , for the year ended December 31, 2016 , respectively. We recorded Impairment charges on the Consolidated Statements of Operations related to indefinite-lived intangible assets of $185.1 million for the six months ended December 31, 2015 . As of December 31, 2017, the remaining goodwill and indefinite-lived asset balances were $4.2 billion and $90.3 million , respectively (refer to Note 3 ). Definite-Lived Intangible Assets When assessing our definite-lived assets for impairment, we utilize either a multi-period excess earnings method or a relief from royalty method to determine the fair value of the asset and use the forecasts that are consistent with those used in the reporting unit analysis. We conduct our definite-lived intangible asset impairment test quarterly when indications of impairment exists. Below is a summary of the various metrics used in our valuations: Year Ended December 31, 2017 Lumara 5-year average growth rate (4.1)% Discount rate 13.5% Valuation method MPEEM Year Ended December 31, 2016 Omega - Lifestyle Omega - Entocort ® - Branded Products Entocort ® - AG Products Herron Trade Names and Trademarks 5-year average growth rate 2.5% 3.2% (31.7)% (30.4)% 4.6% Long-term growth rates 2.0% NA (10.0)% (4.7)% 2.5% Discount rate 9.3% 9.5% 13.0% 10.5% 10.8% Royalty rate NA 4.0% NA NA 11.0% Valuation method MPEEM Relief from Royalty MPEEM MPEEM Relief from Royalty We recorded Impairment charges on the Consolidated Statements of Operations related to definite-lived intangible assets of $665.6 million during the year ended December 31, 2016 . These impairments were primarily recorded in our BCH and RX goodwill reporting units (refer to Note 3 for a additional detail on impaired definite-lived intangible assets). Fixed Rate Long-term Debt Our fixed rate long-term debt consisted of public bonds, a private placement note and retail bonds as follows (in millions): Year Ended Fair Value Hierarchy December 31, December 31, December 31, Public bonds Level 1 Carrying value $ 2.6 $ 4.6 $ 3.9 Fair value $ 2.7 $ 4.6 $ 3.8 Retail bonds and private placement note Level 2 Carrying value (excluding premium) $ 306.0 $ 773.1 $ 798.3 Fair value $ 342.1 $ 825.0 $ 859.8 Premium $ 21.4 $ 49.8 $ 82.5 The fair values of our public bonds for all periods were based on quoted market prices. The fair values of our retail bonds and private placement note for all periods were based on interest rates offered for borrowings of a similar nature and remaining maturities. The carrying amounts of our other financial instruments, consisting of cash and cash equivalents, accounts receivable, accounts payable, short-term debt and variable rate long-term debt, approximate their fair value. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities, Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS | INVESTMENTS Available for Sale Securities Our available for sale securities are reported in Prepaid expenses and other current assets . Unrealized investment gains (losses) on available for sale securities were as follows (in millions): Year Ended Six Months Ended December 31, December 31, December 31, Equity securities, at cost less impairments $ 15.5 $ 16.5 $ 6.4 Gross unrealized gains 1.5 21.7 9.3 Gross unrealized losses — — (0.8 ) Estimated fair value of equity securities $ 17.0 $ 38.2 $ 14.9 The factors affecting the assessment of impairments include both general financial market conditions and factors specific to a particular company. We recorded impairment charges of $1.8 million and $10.7 million during the year ended December 31, 2016 , and the six months ended December 31, 2015 , respectively, related to other-than-temporary impairments of marketable equity securities due to prolonged losses incurred on each of the investments. We have evaluated the near-term prospects of the equity securities in relation to the severity and duration of any impairments, and based on that evaluation, we have the ability and intent to hold these investments until a recovery of fair value. We sold a number of our investment securities and recorded gains of $1.6 million and $1.0 million during the years ended December 31, 2017 and December 31, 2016 , respectively. The gains were reclassified out of AOCI and into earnings. Cost Method Investments Our cost method investments totaled $6.3 million , $6.9 million , and $6.9 million at December 31, 2017 , December 31, 2016 , and December 31, 2015 , respectively, and were included in Other non-current assets . During the year ended December 31, 2017 , due to significant and prolonged losses incurred by one of our cost method investments, we recorded a $1.0 million impairment charge in Other (income) expense, net on the Consolidated Statements of Operations. Equity Method Investments Our equity method investments totaled $4.9 million , $4.6 million , and $45.5 million at December 31, 2017 , December 31, 2016 , and December 31, 2015 , respectively, and were included in Other non-current assets . We recorded net gain s of $0.3 million , and net losses of $4.1 million , $5.4 million , and $11.6 million during the years ended December 31, 2017 and December 31, 2016 , the six months ended December 31, 2015 , and the year ended June 27, 2015 , respectively, for our proportionate share of the equity method investment earnings or losses. The gains and losses were recorded in Other (income) expense, net on the Consolidated Statements of Operations. During the year ended December 31, 2016 , one of our equity method investments became publicly traded. As a result, we transferred the $15.5 million investment to available for sale and recorded an $8.7 million unrealized gain, net of tax in Other Comprehensive Income ("OCI"). In addition, due to significant and prolonged losses incurred on one of our equity method investments, we recorded a $22.3 million impairment charge in Other (income) expense, net on the Consolidated Statements of Operations. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instruments and hedging activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We enter into certain derivative financial instruments, when available on a cost-effective basis, to mitigate our risk associated with changes in interest rates and foreign currency exchange rates as follows: Interest rate risk management - We are exposed to the impact of interest rate changes through our cash investments and borrowings. We utilize a variety of strategies to manage the impact of changes in interest rates including using a mix of debt maturities along with both fixed-rate and variable-rate debt. In addition, we may enter into treasury-lock agreements and interest rate swap agreements on certain investing and borrowing transactions to manage our exposure to interest rate changes and our overall cost of borrowing. Foreign currency exchange risk management - We conduct business in several major currencies other than the U.S. dollar and are subject to risks associated with changing foreign exchange rates. Our objective is to reduce cash flow volatility associated with foreign exchange rate changes on a consolidated basis to allow management to focus its attention on business operations. Accordingly, we enter into various contracts that change in value as foreign exchange rates change to protect the value of existing foreign currency assets and liabilities, commitments, and anticipated foreign currency sales and expenses. All derivative instruments are managed on a consolidated basis to efficiently net exposures and thus take advantage of any natural offsets. Gains and losses related to the derivative instruments are expected to be offset largely by gains and losses on the original underlying asset or liability. We do not use derivative financial instruments for speculative purposes. All of our designated derivatives were classified as cash flow hedges as of December 31, 2017 , December 31, 2016 , and December 31, 2015 . Designated derivatives meet hedge accounting criteria, which means the fair value of the hedge is recorded in shareholders’ equity as a component of OCI, net of tax. The deferred gains and losses are recognized in income in the period in which the hedged item affects earnings. Any ineffective portion of the change in fair value of the derivative is immediately recognized in earnings. All of our designated derivatives are assessed for hedge effectiveness quarterly. We also have economic non-designated derivatives that do not meet hedge accounting criteria. These derivative instruments are adjusted to current market value at the end of each period through earnings. Gains or losses on these instruments are offset substantially by the remeasurement adjustment on the hedged item. Interest Rate Swaps and Treasury Locks Interest rate swap agreements are contracts to exchange floating rate for fixed rate payments (or vice versa) over the life of the agreement without the exchange of the underlying notional amounts. The notional amounts of the interest rate swap agreements are used to measure interest to be paid or received and do not represent the amount of exposure to credit loss. The differential paid or received on the interest rate swap agreements is recognized as an adjustment to interest expense. During the three months ended July 1, 2017, we repaid $584.4 million of senior notes with an interest rate of 4.000% due 2023 and $309.5 million of senior notes with an interest rate of 5.300% due 2043 (refer to Note 10 ). As a result of the senior note repayments on June 15, 2017, the proportionate amount remaining in OCI related to the pre-issuance hedge was reclassified to earnings. Accordingly, we recorded a loss of $5.9 million in Other expense, net, during the three months ended July 1, 2017 for the amount remaining in OCI. During the six months ended December 31, 2015 , we entered into a forward interest rate swap to hedge against changes in the benchmark interest rate between the date the interest rate swap was entered into and the date of expected future debt issuance. The interest rate swap was designated as a cash flow hedge and had a notional amount totaling $200.0 million . The interest rate swap was settled upon the issuance of an aggregate $1.2 billion principal amount of senior notes on March 7, 2016 for a cumulative after-tax loss of $7.0 million in OCI during the three months ended April 2, 2016. During the year ended June 27, 2015, we repaid a $300.0 million term loan with floating interest rates priced off the LIBOR yield curve (refer to Note 10 ). As a result of the term loan repayment on June 24, 2015, the forward interest rate swap agreements with notional amounts totaling $240.0 million that were in place to hedge the change in the LIBOR rate were terminated as well. We recorded a loss of $3.6 million in Other expense, net, during the year ended June 27, 2015 for the amount remaining in AOCI when the hedges were terminated. In connection with the Omega acquisition, we assumed a $20.0 million private placement note. We also assumed an interest rate swap agreement with a notional amount totaling $20.0 million that was in place to hedge the cross currency exchange differences between the U.S. dollar and the euro on the above-mentioned debt. On May 29, 2015, we repaid the loan and the interest rate swap. We also assumed €500.0 million ( $544.5 million ) of debt under Omega's revolving credit facility, as well as an interest rate swap agreement with a notional amount of €135.0 million ( $147.0 million ) that was in place to hedge the change in the floating rate on that credit facility. On April 8, 2015, we repaid the loan and terminated the interest rate swap. Because both interest rate swaps mentioned above were recorded at fair market value on the date of termination, no gain or loss was recorded. For more information on the acquired debt and termination (refer to Note 10 ). During the year ended June 27, 2015, we entered into forward interest rate swaps and treasury locks (together "Rate Locks") to hedge against changes in the interest rates between the date the Rate Locks were entered into and the date of the issuance of our 2014 Bonds (refer to Note 10 ). These Rate Locks were designated as cash flow hedges of expected future debt issuances with a notional amount totaling $750.0 million . The Rate Locks were settled upon the issuance of an aggregate $1.6 billion principal amount of our 2014 Bonds on December 2, 2014 for a cumulative after-tax loss of $5.8 million in OCI after recording $1.1 million of ineffectiveness to Other expense, net, during the year ended June 27, 2015 . Foreign Currency Derivatives We enter into foreign currency forward contracts, both designated and non-designated, in order to manage the impact of foreign exchange fluctuations on expected future purchases and related payables denominated in a foreign currency, as well as to hedge the impact of foreign exchange fluctuations on expected future sales and related receivables, and expected future royalties denominated in a foreign currency. Both types of forward contracts have a maximum maturity date of 18 months. The total notional amount for these contracts was $592.3 million , $533.5 million , and $755.5 million , as of December 31, 2017 , December 31, 2016 , and December 31, 2015 , respectively. In June 2015, in order to economically hedge the foreign currency exposure associated with the planned payment of the euro-denominated GSK Products acquisition (refer to Note 2 ), we entered into a non-designated option contract to protect against a strengthening of the euro relative to the U.S. dollar. We recorded losses of $1.9 million for the change in fair value of the option contract during the year ended June 27, 2015 in Other expense, net. Because these derivatives were economically hedging future acquisitions, the cash outflows associated with their settlement are shown as investing activity on the Consolidated Statements of Cash Flows. In November 2014, in order to economically hedge the foreign currency exposure associated with the planned payment of the euro-denominated purchase price of Omega, we entered into non-designated option contracts with a total notional amount of €2.0 billion . The option contracts settled in December 2014, resulting in a loss of $26.4 million . The option contracts were replaced with non-designated forward contracts that matured during the three months ended March 28, 2015. We recorded losses of $298.1 million during the year ended June 27, 2015 related to the settlement of the forward contracts. Both losses were recorded primarily in Other expense, net. The losses on the derivatives due to changes in the euro to U.S. dollar exchange rates were economically offset at closing in the final settlement of the euro-denominated Omega purchase price. Effects of Derivatives on the Financial Statements The below tables indicate the effects of all derivative instruments on the Consolidated Financial Statements. All amounts exclude income tax effects and are presented in millions. The balance sheet location and gross fair value of our outstanding derivative instruments were as follows: Asset Derivatives Fair Value Balance Sheet Location December 31, December 31, December 31, Designated derivatives: Foreign currency forward contracts Other current assets $ 4.1 $ 3.1 $ 3.8 Non-designated derivatives: Foreign currency forward contracts Other current assets $ 2.2 $ 0.7 $ 1.0 Liability Derivatives Fair Value Balance Sheet Location December 31, December 31, December 31, Designated derivatives: Foreign currency forward contracts Accrued liabilities $ 1.4 $ 3.0 $ 2.0 Interest rate swap agreements Other non-current liabilities — — 0.3 Total designated derivatives $ 1.4 $ 3.0 $ 2.3 Non-designated derivatives: Foreign currency forward contracts Accrued liabilities $ 2.4 $ 2.0 $ 1.9 The gains (losses) recorded in OCI for the effective portion of our designated cash flow hedges were as follows: Amount of Gain/(Loss) Recorded in OCI Year Ended Six Months Ended Year Ended Designated Cash Flow Hedges December 31, December 31, December 31, June 27, Treasury locks $ — $ — $ — $ (2.7 ) Interest rate swap agreements — (9.0 ) (0.3 ) (10.1 ) Foreign currency forward contracts 9.4 2.1 1.7 (7.7 ) $ 9.4 $ (6.9 ) $ 1.4 $ (20.5 ) The gains (losses) reclassified from AOCI into earnings for the effective portion of our designated cash flow hedges were as follows: Amount of Gain/(Loss) Reclassified from AOCI into Earnings Year Ended Six Months Ended Year Ended Designated Cash Flow Hedges Income Statement Location December 31, December 31, December 31, June 27, Treasury locks Interest expense, net $ (0.1 ) $ (0.1 ) $ — $ (0.1 ) Interest rate swap agreements Interest expense, net (2.1 ) (2.3 ) (0.8 ) (16.4 ) Other expense (Income), net (6.0 ) — — — Foreign currency forward contracts Net sales 1.5 1.3 (1.8 ) 1.9 Cost of sales 5.6 3.0 0.8 (4.2 ) Interest expense, net (2.6 ) (1.6 ) (0.4 ) — Other expense (Income), net (1.5 ) 0.4 1.1 (4.4 ) $ (5.2 ) $ 0.7 $ (1.1 ) $ (23.2 ) The net of tax amount expected to be reclassified out of AOCI into earnings during the next 12 months is a $5.5 million gain . The gains (losses) recognized against earnings for the ineffective portion of our designated cash flow hedges were as follows: Amount of Gain/(Loss) Recognized against Earnings Year Ended Six Months Ended Year Ended Designated Cash Flow Hedges Income Statement Location December 31, December 31, December 31, June 27, Treasury locks Other expense (Income), net $ — $ — $ — $ (0.4 ) Interest rate swap agreements Other expense (Income), net — (0.1 ) — (0.7 ) Foreign currency forward contracts Net sales 0.2 (0.1 ) (0.1 ) (0.1 ) Cost of sales 0.1 (0.1 ) 0.2 0.2 Other expense, net 1.0 $ 0.6 — — Total $ 1.3 $ 0.3 $ 0.1 $ (1.0 ) The effects of our non-designated derivatives on the Consolidated Statements of Operations were as follows: Amount of Gain/(Loss) Recognized in Income Year Ended Six Months Ended Year Ended Non-Designated Derivatives Income Statement Location December 31, December 31, December 31, June 27, Foreign currency forward contracts Other expense (Income), net $ 12.6 $ (2.4 ) $ (8.0 ) $ (295.4 ) Interest expense, net (5.3 ) (2.2 ) (0.7 ) (3.4 ) Foreign exchange option contracts Other expense (Income), net — — — (26.4 ) Total $ 7.3 $ (4.6 ) $ (8.7 ) $ (325.2 ) |
Assets Held for Sale
Assets Held for Sale | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE Our India API business was classified as held-for-sale beginning as of December 31, 2015. We recorded impairment charges totaling $6.3 million and $29.0 million during the years ended December 31, 2016 and December 31, 2015, respectively, after determining the carrying value of the India API business exceeded its fair value less the cost to sell. On April 6, 2017 , we completed the sale of our India API business (refer to Note 2 ). The India API business was reported in our Other segment. During the three months ended October 1, 2016, management committed to a plan to sell certain fixed assets associated with our animal health pet treats plant. Such assets were classified as held-for-sale beginning at October 1, 2016. On February 1, 2017 , we completed the sale of our animal health pet treats plant fixed assets (refer to Note 2 ). We determined that the carrying value of the fixed assets associated with our animal health pet treats plant exceeded the fair value less the cost to sell. We recorded impairment charges totaling $3.7 million during the year ended December 31, 2016. The assets associated with our animal health pet treats plant were reported in our CHCA segment. The assets held-for-sale were reported within Prepaid expenses and other current assets and liabilities held-for-sale were reported in Accrued liabilities . The amounts consisted of the following (in millions): December 31, CHCA Other Assets held for sale Current assets $ — $ 5.1 Goodwill — 5.5 Property, plant and equipment 13.5 33.2 Other assets — 3.8 Less: impairment reserves (3.7 ) (35.3 ) Total assets held for sale $ 9.8 $ 12.3 Liabilities held for sale Current liabilities $ 0.1 $ 1.9 Other liabilities — 1.9 Total liabilities held for sale $ 0.1 $ 3.8 |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Indebtness | INDEBTEDNESS Total borrowings outstanding are summarized as follows (in millions): December 31, December 31, December 31, Revolving credit agreements 2015 Revolver $ — $ — $ 380.0 2014 Revolver — — 300.0 Total revolving credit agreements — — 680.0 Term loans * 2014 term loan due December 5, 2019 420.0 420.7 488.8 Notes and bonds Coupon Due 1.300% November 8, 2016 (2) — — 500.0 * 4.500% May 23, 2017 (3) — 189.3 195.5 * 5.125% December 12, 2017 (3) — 315.6 325.8 2.300% November 8, 2018 (2) — 600.0 600.0 * 5.000% May 23, 2019 (3) 144.0 126.2 130.3 3.500% March 15, 2021 (4) 280.4 500.0 — 3.500% December 15, 2021 (1) 309.6 500.0 500.0 * 5.105% July 19, 2023 (3) 162.0 142.0 146.7 4.000% November 15, 2023 (2) 215.6 800.0 800.0 3.900% December 15, 2024 (1) 700.0 700.0 700.0 4.375% March 15, 2026 (4) 700.0 700.0 — 5.300% November 15, 2043 (2) 90.5 400.0 400.0 4.900% December 15, 2044 (1) 303.9 400.0 400.0 Total notes and bonds 2,906.0 5,373.1 4,698.3 Other financing 11.7 3.6 128.2 Unamortized premium (discount), net 21.4 33.0 73.4 Deferred financing fees (17.9 ) (33.1 ) (36.6 ) Total borrowings outstanding 3,341.2 5,797.3 6,032.1 Current indebtedness (70.4 ) (572.8 ) (1,060.5 ) Total long-term debt less current portion $ 3,270.8 $ 5,224.5 $ 4,971.6 (1) Discussed below collectively as the "2014 Notes." (2) Discussed below collectively as the "2013 Notes." (3) Debt assumed from Omega. (4) Discussed below collectively as the "2016 Notes." * Debt denominated in euros subject to fluctuations in the euro-to-U.S. dollar exchange rate. We entered into amendments on March 16, 2017 related to the 2014 Revolver and the 2014 Term Loan, providing for additional time to deliver certain financial statements, as well as the modification of certain financial and other covenants. We also entered into additional amendments to the 2014 Revolver and the 2014 Term Loan on April 25, 2017 to modify provisions of such agreements necessary as a result of the correction in accounting related to the Tysabri ® financial asset, as well as waivers of any default or event of default that may arise from any restatement of or deficiencies in our financial statements for the periods specified in such amendments and waivers. No default or event of default existed prior to entering into these amendments and waivers. We are in compliance with all covenants under our debt agreements as of December 31, 2017 . Revolving Credit Agreements On December 9, 2015 , our 100% owned finance subsidiary, Perrigo Finance Unlimited Company ("Perrigo Finance"), entered into a $750.0 million revolving credit agreement (the "2015 Revolver"). On March 15, 2016, we used the proceeds of the long-term debt issuance described below under "2016 Notes" to repay the $750.0 million then outstanding under the 2015 Revolver and terminated the facility. On March 30, 2015 , we assumed a revolving credit facility with €500.0 million ( $544.5 million ) outstanding from Omega. On April 8, 2015 , we repaid the €500.0 million ( $539.1 million ) outstanding under the assumed revolving credit facility and terminated the facility. On December 5, 2014 , Perrigo Finance entered into a $600.0 million revolving credit agreement, which increased to $1.0 billion on March 30, 2015 (the "2014 Revolver"). On March 15, 2016, we used the proceeds of the long-term debt issuance described below under "2016 Notes" to repay the $435.0 million then outstanding under the 2014 Revolver. There were no borrowings outstanding under the 2014 Revolver as of December 31, 2017 or December 31, 2016 . Term Loans On December 5, 2014 , Perrigo Finance entered into a term loan agreement consisting of a €500.0 million ( $614.3 million ) tranche, with the ability to draw an additional €300.0 million ( $368.6 million ) tranche, maturing December 5, 2019; we also entered into a $300.0 million term loan tranche maturing December 18, 2015, which we repaid in full on June 25, 2015. On September 6, 2013 , Perrigo Company entered into a $1.0 billion term loan agreement (the "2013 Term Loan") (together with the 2013 Revolver, the "2013 Credit Agreements"). The 2013 Term Loan consisted of a $300.0 million tranche maturing December 18, 2015 and a $700.0 million tranche maturing December 18, 2018. Both tranches were drawn in full on December 18, 2013. Amounts outstanding under the 2013 Credit Agreements bore interest at our option (a) at the alternative base rate or (b) the eurodollar rate plus, in either case, applicable margins as set forth in the 2013 Credit Agreements. Perrigo Company obligations under the 2013 Credit Agreements were guaranteed by Perrigo Company plc, certain U.S. subsidiaries of Perrigo Company plc, Elan, and certain Irish subsidiaries of Elan until November 21, 2014, at which time the terms of the 2013 Credit Agreements were amended to remove all guarantors. On December 5, 2014, we repaid the remaining $895.0 million outstanding under our 2013 Term Loan, then terminated it. We recorded a $10.5 million loss on extinguishment of debt during the year ended June 27, 2015 , which consisted of the Bridge Loan Facility interest expense and deferred financing fees related to the 2013 Credit Agreements, and 2013 Term Loan. Notes and Bonds 2016 Notes On March 7, 2016 , Perrigo Finance issued $500.0 million in aggregate principal amount of 3.500% senior notes due 2021 and $700.0 million in aggregate principal amount of 4.375% senior notes due 2026 (together, the "2016 Notes") and received net proceeds of $1.2 billion after fees and market discount. Interest on the 2016 Notes is payable semiannually in arrears in March and September of each year, beginning in September 2016. The 2016 Notes are governed by a base indenture and a second supplemental indenture (collectively, the "2016 Indenture"). The 2016 Notes are fully and unconditionally guaranteed on a senior basis by Perrigo, and no other subsidiary of Perrigo guarantees the 2016 Notes. The proceeds were used to repay amounts borrowed under the 2015 Revolver and the 2014 Revolver, as mentioned above. There are no restrictions under the 2016 Notes on our ability to obtain funds from our subsidiaries. Perrigo Finance may redeem the 2016 Notes in whole or in part at any time for cash at the make-whole redemption prices described in the 2016 Indenture. Notes and Bonds Assumed from Omega In connection with the Omega acquisition, on March 30, 2015 , we assumed: • $20.0 million in aggregate principal amount of 6.190% senior notes due 2016 , which was repaid on May 29, 2015 in full; • €135.0 million ( $147.0 million ) in aggregate principal amount of 5.105% senior notes due 2023 (the "2023 Notes"); • €300.0 million ( $326.7 million ) in aggregate principal amount of 5.125% retail bonds due 2017 ; €180.0 million ( $196.0 million ) in aggregate principal amount of 4.500% retail bonds due 2017 ; and €120.0 million ( $130.7 million ) in aggregate principal amount of 5.000% retail bonds due 2019 (collectively, the "Retail Bonds"). The fair value of the 2023 Notes and Retail Bonds exceeded par value by €93.6 million ( $101.9 million ) on the date of the Omega acquisition. As a result, a fair value adjustment was recorded as part of the carrying value of the underlying debt and will be amortized as a reduction of interest expense over the remaining terms of the respective debt instruments. The adjustment does not affect cash interest payments. 2014 Notes On December 2, 2014 , Perrigo Finance issued $500.0 million in aggregate principal amount of 3.500% senior notes due 2021 (the "2021 Notes”), $700.0 million in aggregate principal amount of 3.900% senior notes due 2024 (the “2024 Notes”), and $400.0 million in aggregate principal amount of 4.900% senior notes due 2044 (the “2044 Notes” and, together with the 2021 Notes and the 2024 Notes, the “2014 Notes”) and received net proceeds of $1.6 billion after fees and market discount. Interest on the 2014 Notes is payable semiannually in arrears in June and December of each year, beginning in June 2015. The 2014 Notes are governed by a base indenture and a first supplemental indenture (collectively, the "2014 Indenture"). The 2014 Notes are fully and unconditionally guaranteed on a senior unsecured basis by Perrigo, and no other subsidiary of Perrigo guarantees the 2014 Notes. There are no restrictions under the 2014 Notes on our ability to obtain funds from our subsidiaries. Perrigo Finance may redeem the 2014 Notes in whole or in part at any time for cash at the make-whole redemption prices described in the 2014 Indenture. 2013 Notes On November 8, 2013, Perrigo Company issued $500.0 million aggregate principal amount of its 1.300% senior notes due 2016 (the " 1.300% 2016 Notes"), $600.0 million aggregate principal amount of its 2.300% senior notes due 2018 (the "2018 Notes"), $800.0 million aggregate principal amount of its 4.000% senior notes due 2023 (the " 4.000% 2023 Notes") and $400.0 million aggregate principal amount of its 5.300% senior notes due 2043 (the "2043 Notes" and, together with the 1.300% 2016 Notes, the 2018 Notes and the 4.000% 2023 Notes, the "2013 Notes") in a private placement with registration rights. We received net proceeds of $2.3 billion from the issuance of the 2013 Notes after fees and market discount. On September 29, 2016, we repaid all $500.0 million of the 1.300% 2016 Notes outstanding. Interest on the 2013 Notes is payable semiannually in arrears in May and November of each year, beginning in May 2014. The 2013 Notes are governed by a base indenture and a first supplemental indenture (collectively, the "2013 Indenture"). The 2013 Notes are our unsecured and unsubordinated obligations, ranking equally in right of payment to all of our existing and future unsecured and unsubordinated indebtedness. The 2013 Notes are not entitled to mandatory redemption or sinking fund payments. We may redeem the 2013 Notes in whole or in part at any time for cash at the make-whole redemption prices described in the 2013 Indenture. The 2013 Notes were guaranteed on an unsubordinated, unsecured basis by the same entities that guaranteed our then-outstanding credit agreement until November 21, 2014, at which time the 2013 Indenture was amended to remove all guarantors. On September 2, 2014, we offered to exchange our private placement senior notes for public bonds (the "Exchange Offer"). The Exchange Offer expired on October 1, 2014, at which time substantially all of the private placement notes had been exchanged for bonds registered with the Securities and Exchange Commission. As a result of the changes in the guarantor structure noted above, we are no longer required to present guarantor financial statements. Other Financing Overdraft Facilities We have overdraft facilities available that we use to support our cash management operations. We report any balances outstanding in the above table under "Other financing". The balance outstanding under the facilities was $6.9 million and $82.9 million at December 31, 2017 and December 31, 2015 respectively, and there were no balances outstanding under the facilities at December 31, 2016 . On March 30, 2015 , we assumed and repaid certain overdraft facilities totaling €51.4 million ( $56.0 million ) with the Omega acquisition. Debt Repayments and Related Extinguishment During the Year Ended December 31, 2017 During the year ended December 31, 2017 , we reduced our outstanding debt through a variety of transactions (in millions): Date Series Transaction Type Principal Retired April 1, 2017 2014 term loan due December 5, 2019 Scheduled quarterly payment $ 13.3 May 8, 2017 $600.0 2.300% senior notes due 2018 Early redemption 600.0 May 23, 2017 €180.0 4.500% retail bonds due 2017 Scheduled maturity 201.3 June 15, 2017 $500.0 3.500% senior notes due 2021 Tender offer 190.4 June 15, 2017 $500.0 3.500% senior notes due 2021 Tender offer 219.6 June 15, 2017 $800.0 4.000% senior notes due 2023 Tender offer 584.4 June 15, 2017 $400.0 5.300% senior notes due 2043 Tender offer 309.5 June 15, 2017 $400.0 4.900% senior notes due 2044 Tender offer 96.1 July 1, 2017 2014 term loan due December 5, 2019 Scheduled quarterly payment 14.3 September 30, 2017 2014 term loan due December 5, 2019 Scheduled quarterly payment 14.8 December 12, 2017 €300.0 5.125% senior notes due 2017 Scheduled maturity 352.3 December 31, 2017 2014 term loan due December 5, 2019 Scheduled quarterly payment 15.0 $ 2,611.0 As a result of the early redemption and tender offer transactions, we recorded a loss of $135.2 million during the three months ended July 1, 2017 in Loss on extinguishment of debt (in millions): Premium on debt repayment $ 116.1 Transaction costs 3.8 Write-off of deferred financing fees 10.6 Write-off of remaining discount on bond 4.7 Total loss on extinguishment of debt $ 135.2 Future Maturities The annual future maturities of our short-term and long-term debt, including capitalized leases, are as follows (in millions): Payment Due Amount 2018 $ 70.4 2019 504.7 2020 0.7 2021 590.0 2022 — Thereafter 2,171.9 |
Earnings (Loss) Per Share And S
Earnings (Loss) Per Share And Shareholder's Equity | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE AND SHAREHOLDERS' EQUITY | EARNINGS PER SHARE AND SHAREHOLDERS' EQUITY Earnings per Share A reconciliation of the numerators and denominators used in our basic and diluted EPS calculation is as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, Numerator: Net income (loss) $ 119.6 $ (4,012.8 ) $ 42.5 $ 136.1 Denominator: Weighted average shares outstanding for basic EPS 142.3 143.3 145.6 139.3 Dilutive effect of share-based awards* 0.3 — 0.5 0.5 Weighted average shares outstanding for diluted EPS 142.6 143.3 146.1 139.8 Anti-dilutive share-based awards excluded from computation of diluted EPS* 0.8 — 0.1 0.1 * In the period of a net loss, diluted shares equal basic shares. Shareholders' Equity Our common stock consists of ordinary shares of Perrigo Company plc, a public limited company incorporated under the laws of Ireland. We trade our ordinary shares on the New York Stock Exchange under the symbol PRGO. Our ordinary shares are also traded on the Tel Aviv Stock Exchange. Dividends In January 2003, the Board of Directors adopted a policy of paying quarterly dividends. We paid dividends as follows: Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, Dividends paid (in millions) $ 91.1 $ 83.2 $ 36.3 $ 64.8 Dividends paid (per share) $ 0.64 $ 0.58 $ 0.25 $ 0.46 The declaration and payment of dividends and the amount paid, if any, are subject to the discretion of the Board of Directors and depend on our earnings, financial condition, capital and surplus requirements and other factors the Board of Directors may consider relevant. Share Repurchases In October 2015, the Board of Directors approved a share repurchase plan of up to $2.0 billion (the "2015 Authorization"). We did not repurchase any shares under the share repurchase plan during the three months ended December 31, 2017 . During the year ended December 31, 2017 , we repurchased 2.7 million ordinary shares at an average repurchase price of $71.72 per share, for a total of $191.5 million . We did not repurchase any shares under the share repurchase plan during the year ended December 31, 2016 . During the six months ended December 31, 2015 , we repurchased 3.3 million ordinary shares at an average repurchase price of $151.59 per share, for a total of $500.0 million . |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS All share-based compensation for employees and directors is granted under the 2013 Long-Term Incentive Plan, as amended (the "Plan"). The Plan has been approved by our shareholders and provides for the granting of awards to our employees and directors. As of December 31, 2017 , there were 3.8 million shares available to be granted. The purpose of the Plan is to attract and retain individuals of exceptional talent and encourage these individuals to acquire a vested interest in our success and prosperity. The awards that may be granted under this program include non-qualified stock options, restricted shares, restricted share units, and RTSR units. Restricted shares are generally service-based, requiring a certain length of service before vesting occurs, while restricted share units can be either service-based or performance-based. Performance-based restricted share units require a certain length of service until vesting; however, they contain an additional performance feature, which can vary the amount of shares ultimately paid out based on certain performance criteria specified in the Plan. RTSR performance share units are subject to a market condition. Awards granted under the Plan vest and may be exercised and/or sold from one to ten years after the date of grant based on a vesting schedule. Share-based compensation expense was as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, $ 43.8 $ 23.0 $ 22.8 $ 31.6 As of December 31, 2017 , unrecognized share-based compensation expense was $51.2 million , and the weighted-average period over which the expense is expected to be recognized was approximately 2.0 years. Proceeds from the exercise of stock options are credited to ordinary shares. Stock Options A summary of activity related to stock options is presented below (options in thousands): Number of Weighted-Average Weighted- Aggregate Options outstanding at December 31, 2015 783 $ 99.93 Granted 344 $ 126.67 Exercised (122 ) $ 67.68 Forfeited or expired (256 ) $ 126.54 Options outstanding at December 31, 2016 749 $ 108.40 6.6 $ 5.5 Granted 439 $ 70.34 Exercised (31 ) $ 24.75 Forfeited or expired (85 ) $ 118.47 Options outstanding December 31, 2017 1,072 $ 94.90 6.9 $ 10.9 Options exercisable 519 $ 107.14 5.0 $ 3.8 Options expected to vest 533 $ 83.63 8.7 $ 6.8 The aggregate intrinsic value for options exercised was as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, $ 1.7 $ 5.2 $ 6.7 $ 20.7 The weighted-average fair values per share at the grant date for options granted were $19.50 , $33.53 , and $39.96 for the years ended December 31, 2017 , December 31, 2016 , and June 27, 2015 , respectively. There were no options granted during the six months ended December 31, 2015. The fair values were estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended December 31, December 31, June 27, Dividend yield 0.9 % 0.5 % 0.3 % Volatility, as a percent 30.0 % 27.6 % 27.1 % Risk-free interest rate 1.8 % 1.3 % 1.7 % Expected life in years 5.41 5.5 5.3 The valuation model utilizes historical volatility. The risk-free interest rate is based on the yield of U.S. government securities with a maturity date that coincides with the expected term of the option. The expected life in years is estimated based on past exercise behavior of employees. Non-Vested Restricted Shares There were no restricted shares granted, vested or outstanding for the years ended December 31, 2017 or December 31, 2016 , the six months ended December 31, 2015 , or the year ended June 27, 2015 . The total fair value of restricted shares that vested was $0.9 million for the year ended June 27, 2015 . Non-Vested Service-Based Restricted Share Units A summary of activity related to non-vested service-based restricted share units is presented below (units in thousands): Number of Weighted- Weighted- Aggregate Non-vested service-based share units outstanding at December 31, 2015 382 $ 154.07 Granted 298 $ 113.26 Vested (92 ) $ 137.15 Forfeited (120 ) $ 151.64 Non-vested service-based share units outstanding at December 31, 2016 468 $ 137.53 1.7 $ 39.0 Granted 298 $ 70.55 Vested (112 ) $ 128.86 Forfeited (55 ) $ 120.97 Non-vested service-based share units outstanding at December 31, 2017 599 $ 107.26 1.5 $ 52.2 The weighted-average fair value per share at the date of grant for service-based restricted share units granted was as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, $ 70.55 $ 113.26 $ 165.64 $ 153.99 The total fair value of service-based restricted share units that vested was as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, $ 14.5 $ 12.6 $ 11.7 $ 9.1 Non-Vested Performance-Based Restricted Share Units A summary of activity related to non-vested performance-based restricted share units is presented below (units in thousands): Number of Weighted- Weighted- Aggregate Non-vested performance-based share units outstanding at December 31, 2015 223 $ 146.31 Granted 159 $ 126.37 Vested (81 ) $ 128.74 Forfeited (124 ) $ 143.64 Non-vested performance-based share units outstanding at December 31, 2016 177 $ 138.29 1.7 $ 14.8 Granted 191 $ 70.34 Vested (27 ) $ 142.18 Forfeited (38 ) $ 130.34 Non-vested performance-based share units outstanding at December 31, 2017 303 $ 93.65 2.0 $ 26.5 The weighted-average fair value of performance-based restricted share units can fluctuate depending upon the success or failure of the achievement of performance criteria as set forth in the Plan. The weighted-average fair value per share at the date of grant for performance-based restricted share units granted was as follows: Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, $ 70.34 $ 126.37 $ 184.49 $ 150.14 The total fair value of performance-based restricted share units that vested was as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, $ 3.8 $ 10.4 $ 6.4 $ 5.1 Non-vested Relative Total Shareholder Return Performance Share Units The fair value of the RTSR performance share units is determined using the Monte Carlo pricing model as the number of shares to be awarded is subject to a market condition. The valuation model considers a range of possible outcomes, and compensation cost is recognized regardless of whether the market condition is actually satisfied. The assumptions used in estimating the fair value of the RTSR performance share units granted during each year were as follows: Year Ended December 31, Dividend yield 0.9 % Volatility, as a percent 36.1 % Risk-free interest rate 1.4 % Expected life in years 2.57 A summary of activity related to non-vested RTSR performance share units is presented below (units in thousands): Number of Weighted- Weighted- Aggregate Non-vested RTSR performance share units outstanding at December 31, 2016 — $ — 0 $ — Granted 39 $ 64.82 Non-vested RTSR performance share units outstanding at December 31, 2017 39 $ 64.82 2.0 $ 3.4 * Midpoint used in calculation. The weighted-average fair value per share at the date of grant for RTSR performance share units granted was $64.82 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME Changes in our AOCI balances, net of tax, were as follows (in millions): Fair value of derivative financial instruments, net of tax Foreign currency translation adjustments Fair value of investment securities, net of tax Post-retirement and pension liability adjustments, net of tax Total AOCI Balance at June 27, 2015 $ (16.3 ) $ 130.9 $ (2.9 ) $ (8.2 ) $ 103.5 OCI before reclassifications 1.1 (135.5 ) (1.4 ) 6.7 (129.1 ) Amounts reclassified from AOCI 1.0 — 10.7 (1.4 ) 10.3 Other comprehensive income (loss) 2.1 (135.5 ) 9.3 5.3 (118.8 ) Balance at December 31, 2015 (14.2 ) (4.6 ) 6.4 (2.9 ) (15.3 ) OCI before reclassifications (5.4 ) (63.3 ) 7.4 (3.2 ) (64.5 ) Amounts reclassified from AOCI 0.1 — 1.3 (3.4 ) (2.0 ) Other comprehensive income (loss) (5.3 ) (63.3 ) 8.7 (6.6 ) (66.5 ) Balance at December 31, 2016 (19.5 ) (67.9 ) 15.1 (9.5 ) (81.8 ) OCI before reclassifications 7.1 328.5 (12.5 ) 15.0 338.1 Amounts reclassified from AOCI 2.6 — (1.6 ) (4.2 ) (3.2 ) Other comprehensive income (loss) 9.7 328.5 (14.1 ) 10.8 334.9 Balance at December 31, 2017 $ (9.8 ) $ 260.6 $ 1.0 $ 1.3 $ 253.1 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | INCOME TAXES Pre-tax income (loss) and the (benefit) provision for income taxes from continuing operations are summarized as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, Pre-tax income (loss): Ireland $ (454.0 ) $ (3,624.1 ) $ (310.2 ) $ (792.8 ) Other 734.1 (1,224.2 ) 319.1 1,053.1 Total pre-tax income (loss) 280.1 (4,848.3 ) 8.9 260.3 (Benefit) provision for income taxes: Current: Ireland (8.1 ) 0.3 1.6 (2.2 ) United States - federal 96.4 93.0 58.9 77.2 United States - state 4.0 0.7 3.0 6.8 Other foreign 46.1 26.7 53.0 67.4 Subtotal 138.4 120.7 116.5 149.2 Deferred (credit): Ireland 13.1 (549.4 ) (23.1 ) 11.1 United States - federal 6.8 (7.6 ) (34.4 ) (19.9 ) United States - state 1.0 (5.1 ) (3.3 ) (0.8 ) Other foreign 1.2 (394.1 ) (89.3 ) (15.4 ) Subtotal 22.1 (956.2 ) (150.1 ) (25.0 ) Total (benefit) provision for income taxes $ 160.5 $ (835.5 ) $ (33.6 ) $ 124.2 A reconciliation of the provision based on the Federal statutory income tax rate to our effective income tax rate is as follows: Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, Provision at statutory rate 12.5 % 12.5 % 12.5 % 12.5 % Ireland tax on non-trading differences (47.7 ) (0.4 ) (207.4 ) (9.9 ) Expenses not deductible for tax purposes/deductions not expensed for book, net 63.4 (0.7 ) 394.0 14.7 Goodwill impairment not deductible for tax purposes — (2.8 ) — — U.S. Operations: State income taxes, net of federal benefit (1.4 ) 0.1 38.4 (1.0 ) Research and development credit (0.6 ) — (13.2 ) (0.7 ) Other (5.8 ) 0.4 112.3 4.8 Tax Law Change - US 5.4 — — — Tax Law Change - Belgium (3.2 ) — — — Other foreign differences (earnings taxed at other than applicable statutory rate) (22.7 ) 3.3 (647.2 ) (16.1 ) Intangible impairment differences (3.0 ) 4.8 (397.6 ) — Worldwide operations: Valuation allowance changes 17.8 0.8 249.3 25.7 Change in unrecognized taxes 25.3 (0.8 ) 82.7 17.7 Withholding taxes 17.3 — — — Effective income tax rate 57.3 % 17.2 % (376.2 )% 47.7 % We have provided for income taxes for certain earnings of certain foreign subsidiaries that have not been deemed to be permanently reinvested. No further provision has been made for income taxes on remaining undistributed earnings of foreign subsidiaries of approximately $6.3 billion at December 31, 2017 , since it is our intention to indefinitely reinvest undistributed earnings of our foreign subsidiaries. Due to the complexity of the legal entity structure and the complexity of the tax laws in various jurisdictions, we believe it is not practicable to estimate, within any reasonable range, the additional income taxes that may be payable on the remittance of such undistributed earnings. Deferred income taxes arise from temporary differences between the financial reporting and the tax reporting basis of assets and liabilities and operating loss and tax credit carryforwards for tax purposes. The components of our net deferred income tax asset (liability) were as follows: December 31, December 31, December 31, Deferred income tax asset (liability): Depreciation and amortization $ (457.8 ) $ (765.2 ) $ (1,550.6 ) Inventory basis differences 21.3 27.4 22.8 Accrued liabilities 87.9 68.5 50.8 Allowance for doubtful accounts 1.5 1.7 1.3 Research and development 58.9 61.7 63.7 Loss and credit carryforwards 292.5 292.4 244.2 Share-based compensation 16.2 18.1 20.6 Foreign tax credit — 10.6 10.6 Federal benefit of unrecognized tax positions 17.0 24.3 22.8 Interest carryforwards 30.5 435.3 334.6 Other, net 28.2 3.0 14.7 Subtotal $ 96.2 $ 177.8 $ (764.5 ) Valuation allowance (407.7 ) (495.6 ) (536.8 ) Net deferred income tax asset (liability): $ (311.5 ) $ (317.8 ) $ (1,301.3 ) The above amounts are classified on the Consolidated Balance Sheets as follows (in millions): December 31, December 31, December 31, Assets $ 10.4 $ 72.1 $ 71.4 Liabilities (321.9 ) (389.9 ) (1,372.7 ) Net deferred income tax (liability) asset $ (311.5 ) $ (317.8 ) $ (1,301.3 ) At December 31, 2017 , we had gross carryforwards as follows: December 31, 2017 Gross (1) Gross Valuation Allowances U.S. state net operating losses $ 248.5 $ 203.6 Worldwide federal net operating losses excluding U.S. states $ 1,389.0 $ 861.6 Worldwide federal capital losses $ 22.0 $ 22.0 U.S. federal credits $ 82.6 $ 82.6 U.S. state credits $ 71.9 $ 71.9 Interest carryforwards $ 478.8 $ 127.0 (1) Utilization of such carryforwards within the applicable statutory periods is uncertain. In 2017, we recorded income tax expense related to valuation allowances of $10.3 million in Ireland. In addition, we released valuation allowances of $42.4 million and $55.8 million for Omega and the U.S. and other jurisdictions, respectively, resulting in a tax benefit. U.S. federal credit carryforwards of $28.2 million , $37.2 million and $167.8 million expire through 2022 , 2025 and 2027 , respectively, with the remaining U.S. credits having no expiration. U.S. state net operating loss carryforwards expire through 2037 , and U.S. state credit carryforwards expire through 2032 . Of the non-U.S. net operating loss carryforwards, $1.8 million , $20.3 million , $0.9 million , and $0.1 million expire through 2019 , 2022 , 2024 and 2025 , respectively, while the remaining amounts of non U.S. net operating loss carryforwards and non-U.S. capital loss carryforwards have no expiration. The valuation allowances for these net operating loss carryforwards are adjusted annually, as necessary. After application of the valuation allowances, as described above, we anticipate no significant limitations will apply with respect to the realization of our net deferred income tax assets. The following table summarizes the activity related to amounts recorded for uncertain tax positions, excluding interest and penalties (in millions): Unrecognized Tax Benefits Balance at June 27, 2015 $ 324.0 Additions: Positions related to the current year 22.9 Reductions: Positions related to prior years (43.5 ) Settlements with taxing authorities (15.3 ) Balance at December 31, 2015 288.1 Additions: Positions related to the current year 45.5 Positions related to prior years 8.6 Reductions: Settlements with taxing authorities (2.4 ) Lapse of statutes of limitation (5.3 ) Balance at December 31, 2016 334.5 Additions: Positions related to the current year 55.0 Positions related to prior years 76.6 Reductions: Settlements with taxing authorities (11.1 ) Lapse of statutes of limitation (0.1 ) Decrease in prior year positions (35.2 ) Balance at December 31, 2017 $ 419.7 We recognize interest and penalties related to uncertain tax positions as a component of income tax expense. The total amount accrued for interest and penalties in the liability for uncertain tax positions was $82.0 million , $63.5 million , and $52.1 million as of December 31, 2017 , December 31, 2016 , and December 31, 2015 , respectively. The total liability for uncertain tax positions was $501.7 million , $398.0 million , and $340.3 million as of December 31, 2017 , December 31, 2016 , and December 31, 2015 , respectively, before considering the federal tax benefit of certain state and local items, of which $204.0 million , $248.7 million , and $198.5 million , respectively, would impact the effective tax rate in future periods, if recognized. We file income tax returns in numerous jurisdictions and are therefore subject to audits by tax authorities. Our primary income tax jurisdictions are Ireland, U.S., Israel, Belgium, France, and the United Kingdom. Although we believe that our tax estimates are reasonable and that we prepare our tax filings in accordance with all applicable tax laws, the final determination with respect to any tax audit and any related litigation could be materially different from our estimates or from our historical income tax provisions and accruals. The results of an audit or litigation could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, and/or interest assessments. On August 15, 2017, we filed a complaint in the U.S. District Court for the Western District of Michigan to recover $163.6 million of Federal income tax, penalties, and interest assessed and collected by the Internal Revenue Service (“IRS”), plus statutory interest thereon from the dates of payment, for the fiscal years ended June 27, 2009, June 26, 2010, June 25, 2011, and June 30, 2012 (the “2009 tax year,” “2010 tax year,” “2011 tax year,” and “2012 tax year,” respectively). The IRS audits of those years culminated in the issuances of two statutory notices of deficiency: (1) on August 27, 2014 for the 2009 and 2010 tax years and (2) on April 20, 2017 for the 2011 and 2012 tax years. The statutory notices of deficiency both included un-agreed income adjustments related principally to transfer pricing adjustments regarding the purchase, distribution, and sale of store-brand OTC pharmaceutical products in the United States. In addition, the statutory notice of deficiency for the 2011 and 2012 tax years included the capitalization of certain expenses that were deducted when paid or incurred in defending against certain patent infringement lawsuits. We fully paid the assessed amounts of tax, interest, and penalties set forth in the statutory notices and filed timely claims for refund on June 11, 2015 and June 7, 2017 for the 2009-2010 tax years and 2011-2012 tax years, respectively. Our claims for refund were disallowed by certified letters dated August 18, 2015 and July 11, 2017, for the 2009-2010 tax years and 2011-2012 tax years, respectively. The complaint was timely, based upon the refund claim denials, and seeks refunds of tax, interest, and penalties of $37.2 million for the 2009 tax year, $61.5 million for the 2010 tax year, $40.2 million for the 2011 tax year, and $24.7 million for the 2012 tax year. The amounts sought in the complaint for the 2009 and 2010 tax years were recorded as deferred charges on our balance sheet during the three months ended March 28, 2015, and the amounts sought in the complaint for the 2011 and 2012 tax years were recorded as deferred charges on our balance sheet during the three months ended July 1, 2017. On December 22, 2016, we received a notice of proposed adjustment for the IRS audit of Athena Neurosciences, Inc. (“Athena”), a subsidiary of Elan acquired in 1996, for the years ended December 31, 2011, December 31, 2012, and December 31, 2013. Perrigo acquired Elan in December 2013. This proposed adjustment relates to the deductibility of litigation costs. We disagree with the IRS’s position asserted in the notice of proposed adjustment and intend to contest it. On July 11, 2017, we received a draft notice of proposed adjustment associated with transfer pricing positions for the IRS audit of Athena for the years ended December 31, 2011, December 31, 2012, and December 31, 2013. Athena was the originator of the patents associated with Tysabri ® prior to the acquisition of Athena by Elan in 1996. In response to the draft notice of proposed adjustment, we provided the IRS with substantial additional documentation supporting our position. The amount of adjustments that may be asserted by the IRS in the final notice of proposed adjustment cannot be quantified at this time; however, based on the draft notice received, the amount to be assessed may be material. We disagree with the IRS’s position as asserted in the draft notice of proposed adjustment and intend to contest it. We have ongoing audits in multiple other jurisdictions the resolution of which remains uncertain. These jurisdictions include, but are not limited to, the U.S., Israel, Ireland and other jurisdictions in Europe. In addition to the matters discussed above, the IRS is currently auditing our fiscal years ended June 29, 2013, June 28, 2014, and June 27, 2015. The Israel Tax Authority is currently auditing our fiscal years ended June 29, 2013 and June 28, 2014 (which covers the period of the Elan transaction). The Ireland Tax Authority is currently auditing our years ended December 31, 2012 and December 31, 2013. Based on the final resolution of tax examinations, judicial or administrative proceedings, changes in facts or law, expirations of statute of limitations in specific jurisdictions or other resolutions of, or changes in, tax positions, it is reasonably possible that unrecognized tax benefits for certain tax positions taken on previously filed tax returns may change materially from those represented on the financial statements as of December 31, 2017 . During the next 12 months, it is reasonably possible that such circumstances may occur that would have a material effect on previously unrecognized tax benefits. As a result, the total net amount of unrecognized tax benefits may decrease, which would reduce the provision for taxes on earnings by a range estimated at $1.0 million to $17.9 million . Tax Law Changes On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (“U.S. Tax Act”). The U.S. Tax Act includes a number of significant changes to existing U.S. tax laws that impact the Company. These changes include a corporate income tax rate reduction from 35% to 21% and the elimination or reduction of certain U.S. deductions and credits including limitations on the U.S. deductibility of interest expense and executive compensation. The U.S. Tax Act also transitions the U.S. taxation of international earnings from a worldwide system to a modified territorial system. These changes are effective beginning in 2018. The U.S. Tax Act also includes a one-time mandatory deemed repatriation tax on accumulated U.S. owned foreign corporations’ previously untaxed foreign earnings (“Transition Toll Tax”) . The Transition Toll Tax may be paid over an eight-year period, starting in 2018, and will not accrue interest. On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of the U.S. GAAP ASC 740 income tax accounting for tax law changes enacted during 2017, in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the U.S. Tax Act. In accordance with SAB 118, we have recorded an income tax benefit of $2.4 million in connection with the remeasurement of certain deferred tax assets and liabilities. We also recorded a $17.5 million increase of current tax expense in connection with the Transition Toll Tax on cumulative U.S. owned foreign earnings of $1.2 billion . The tax impacts represent provisional amounts and are a reasonable estimate at December 31, 2017. Additional work is necessary to perform additional analysis of historical foreign earnings and U.S. cumulative temporary differences, as well as potential correlative adjustments. Any subsequent adjustment to these amounts will be recorded to current tax expense in 2018 when the analysis is complete. The U.S. Tax Act subjects a U.S. shareholder to tax on global intangible low-taxed income (GILTI) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. Given the complexity of the GILTI provisions, we are still evaluating the effects of the GILTI provisions and have not yet determined our accounting policy. At December 31, 2017 , because we are still evaluating the GILTI provisions and our analysis of future taxable income that is subject to GILTI, we are unable to make a reasonable estimate and have not reflected any adjustments related to GILTI in our financial statements. On December 22, 2017, the Belgian Parliament approved Belgian tax reform legislation (“Belgium Tax Act”), which was signed by the Belgian King and enacted on December 25, 2017. The Belgium Tax Act provides for a reduction to the corporate income tax rate from 34% to 30% , for 2018 and 2019, as well as a reduced corporate income tax rate of 25% for 2020 and beyond. The Belgium Tax Act also increased the participation exemption on dividend distributions to Belgium entities from 95% to 100% . The Belgium Tax Act also introduces Belgium tax consolidation and other anti-tax avoidance directives. We recorded an additional income tax expense of $24.1 million for the remeasurement of certain deferred tax assets and additional income tax benefit of $33.2 million for the remeasurement of certain deferred tax liabilities as a result of the Belgium Tax Act. For the years ended December 31, 2016 and December 31, 2015, statutory rate changes, primarily in Europe, favorably impacted the effective tax rate in the amount of $ 4.0 million and $ 27.9 million , respectively. |
Post Employment Plans
Post Employment Plans | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Post employment plans | POST EMPLOYMENT PLANS Defined Contribution Plans We have a qualified profit-sharing and investment plan under Section 401(k) of the IRS, which covers substantially all U.S. employees. Our contributions to the plan include an annual nondiscretionary contribution of 3% of an employee's eligible compensation and a discretionary contribution at the option of the Board of Directors. Additionally, we match a portion of employees' contributions. We also have a defined contribution plan that covers our Ireland employees. We contribute up to 18% of each participating employee’s annual eligible salary on a monthly basis. We assumed a number of defined contribution plans associated with the Omega acquisition and we pay contributions to the pension insurance plans. Our contributions to all of the plans were as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, 2016 December 31, June 27, 2015* $ 25.5 $ 26.1 $ 18.9 $ 25.9 * Includes Omega activity from March 30, 2015 to June 27, 2015 Pension and Post-Retirement Healthcare Benefit Plans We assumed the liability of two defined benefit plans (staff and executive plan) for employees based in Ireland with the Elan acquisition in 2013. These plans were subsequently merged and all plan assets and liabilities were transferred from the executive scheme to the staff scheme as a result of a plan combination. In connection with the Omega acquisition, we assumed the liability of a number of defined benefit plans. The defined benefit plans cover employees based primarily in the Netherlands, Belgium, Germany, Switzerland, Greece, France, and Norway. Omega companies operate various pension plans across each country. Our defined benefit pension plans are managed externally and the related pension costs and liabilities are assessed at least annually in accordance with the advice of a qualified professional actuary. We used a December 31, 2017 measurement date and all plan assets and liabilities are reported as of that date. We provide certain healthcare benefits to eligible U.S. employees and their dependents who meet certain age and service requirements when they retire. Generally, benefits are provided to eligible retirees after age 65 and to their dependents. Increases in our contribution for benefits are limited to increases in the Consumer Price Index. Additional healthcare cost increases are paid through participant contributions. We accrue the expected costs of such benefits during a portion of the employees’ years of service. The plan is not funded. Under current plan provisions, the plan is not eligible for any U.S. federal subsidy related to the Medicare Modernization Act of 2003 Part D Subsidy. The change in the projected benefit obligation and plan assets consisted of the following (in millions): Pension Benefits Other Benefits Year Ended Six Months Ended Year Ended Six Months Ended December 31, December 31, 2016 December 31, December 31, December 31, 2016 December 31, Projected benefit obligation at beginning of period $ 158.9 $ 135.0 $ 140.3 $ 5.8 $ 7.0 $ 6.0 Acquisitions — — 5.6 — — — Curtailment (1.0 ) — — — — — Service costs 4.5 4.1 2.2 0.6 0.6 0.3 Interest cost 3.3 3.6 1.7 0.2 0.2 0.1 Actuarial (gain) loss (10.3 ) 22.6 (10.1 ) (0.3 ) (1.9 ) 0.5 Contributions paid 0.1 0.3 — — — — Benefits paid (2.5 ) (1.7 ) (0.6 ) (0.1 ) (0.1 ) (0.1 ) Foreign currency translation 21.0 (5.0 ) (4.1 ) — — 0.1 Projected benefit obligation at end of period $ 174.0 $ 158.9 $ 135.0 $ 6.2 $ 5.8 $ 7.0 Fair value of plan assets at beginning of period 138.2 126.7 128.1 — — — Acquisitions — — 3.2 — — — Actual return on plan assets 5.5 9.4 (1.7 ) — — — Benefits paid (2.5 ) (1.7 ) (0.6 ) — — — Employer contributions 2.2 8.2 1.4 — — — Contributions paid 0.1 0.3 — — — — Foreign currency translation 19.0 (4.7 ) (3.7 ) — — — Fair value of plan assets at end of period $ 162.5 $ 138.2 $ 126.7 $ — $ — $ — Unfunded status $ (11.5 ) $ (20.7 ) $ (8.3 ) $ (6.2 ) $ (5.8 ) $ (7.0 ) Presented as: Other non-current assets $ 22.0 $ 10.4 $ 16.5 $ — $ — $ — Other non-current liabilities $ (33.5 ) $ (31.1 ) $ (24.8 ) $ — $ (5.8 ) $ (7.0 ) The total accumulated benefit obligation for the defined benefit pension plans was as follows (in millions): Year Ended Six Months Ended December 31, December 31, 2016 December 31, $ 167.6 $ 136.3 $ 109.4 The following unrecognized actual gains (losses) for the other benefits liability was included in OCI, net of tax (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, 2016 December 31, June 27, $ 0.3 $ (0.7 ) $ (0.4 ) $ 0.1 The unamortized net actuarial loss in AOCI net of tax for defined benefit pension and other benefits was as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, 2016 December 31, June 27, 2015* $ (1.3 ) $ 9.5 $ 2.9 $ 8.2 * Includes Omega activity from March 30, 2015 to June 27, 2015 The total estimated credit amount to be recognized from AOCI into net periodic cost during the next year is $0.7 million . At December 31, 2017 , the total estimated future benefit payments to be paid by the plans for the next five years is approximately $9.9 million for pension benefits and $1.0 million for other benefits as follows (in millions): Payment Due Pension Benefits Other Benefits 2018 $ 1.4 $ 0.1 2019 1.5 0.2 2020 2.3 0.2 2021 2.1 0.2 2022 2.6 0.3 Thereafter 20.1 1.9 The expected benefits to be paid are based on the same assumptions used to measure our benefit obligation at December 31, 2017 , including the expected future employee service. We expect to contribute $2.2 million to the defined benefit plans within the next year. Net periodic pension cost consisted of the following (in millions): Pension Benefits Other Benefits Year Ended Six Months Ended Year Ended Year Ended Six Months Ended Year Ended December 31, December 31, 2016 December 31, June 27, 2015* December 31, December 31, 2016 December 31, June 27, 2015* Service cost $ 4.5 $ 4.1 $ 2.2 $ 0.9 $ 0.6 $ 0.6 $ 0.3 $ 0.3 Interest cost 3.3 3.6 1.7 2.4 0.2 0.2 0.1 0.2 Expected return on assets (4.3 ) (3.9 ) (1.8 ) (2.7 ) — — — — Curtailment (0.7 ) — — — — — — — Net actuarial loss 0.8 0.5 0.4 1.0 (0.1 ) — — 0.1 Net periodic pension cost $ 3.6 $ 4.3 $ 2.5 $ 1.6 $ 0.7 $ 0.8 $ 0.4 $ 0.6 * Includes Omega activity from March 30, 2015 to June 27, 2015 The weighted-average assumptions used to determine net periodic pension cost and benefit obligation were: Pension Benefits Other Benefits Year Ended Six Months Ended Year Ended Year Ended Six Months Ended Year Ended December 31, December 31, 2016 December 31, June 27, 2015* December 31, December 31, 2016 December 31, June 27, 2015* Discount rate 1.91 % 1.76 % 2.22 % 2.11 % 3.59 % 4.00 % 4.25 % 4.25 % Inflation 1.45 % 1.43 % 2.25 % 1.93 % Expected return on assets 2.90 % 2.89 % 2.93 % 2.85 % * Includes Omega activity from March 30, 2015 to June 27, 2015 The discount rate is based on market yields at the valuation date and chosen with reference to the yields available on high quality corporate bonds, having regard to the duration of the plan's liabilities. As of December 31, 2017 , the expected weighted-average long-term rate of return on assets of 2.9% was calculated based on the assumptions of the following returns for each asset class: Equities 6.0 % Bonds 1.9 % Absolute return fund 4.0 % Insurance contracts 2.8 % Other 2.5 % The investment mix of the pension plans' assets is a blended asset allocation, with a diversified portfolio of shares listed and traded on recognized exchanges. Certain of our plans have target asset allocation ranges, as of December 31, 2017 these ranges are as follows: Equities 10% - 20% Bonds 20% - 30% Absolute return 50% - 60% Other plans do not have target asset allocation ranges, for such plans the strategy is to invest primarily 100% in Insurance Contracts. The purpose of the pension funds is to provide a flow of income for members in retirement. A flow of income delivered through fixed interest bonds provides a costly but close match to this objective. Equities are held within the portfolio as a means of reducing this cost, but holding equities creates a strategic risk because they give a very different pattern of return. Property investments are held to help diversify the portfolio. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies, and investment portfolio reviews. The following table sets forth the fair value of the pension plan assets, as of December 31, 2017 (in millions): Quoted Prices in Active Markets Other Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Equities $ 0.1 $ 19.1 $ — $ 19.2 Bonds 1.8 30.2 — 32.0 Insurance contracts — — 50.8 50.8 Absolute return fund — 54.5 — 54.5 Other — 6.0 — 6.0 Total $ 1.9 $ 109.8 $ 50.8 $ 162.5 The following table sets forth the fair value of the pension plan assets, as of December 31, 2016 (in millions): Quoted Prices in Active Markets Other Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Equities $ 0.1 $ 13.6 $ — $ 13.7 Bonds 1.6 22.8 — 24.4 Insurance contracts — — 43.4 43.4 Absolute return fund — 51.5 — 51.5 Other — 5.2 — 5.2 Total $ 1.7 $ 93.1 $ 43.4 $ 138.2 The following table sets forth the fair value of the pension plan assets, as of December 31, 2015 (in millions): Other Observable Inputs Unobservable Inputs (Level 2) (Level 3) Total Equities $ 14.5 $ — $ 14.5 Bonds 38.1 — 38.1 Property — 0.3 0.3 Insurance contracts — 34.9 34.9 Absolute return fund 33.7 — 33.7 Other 5.2 — 5.2 Total $ 91.5 $ 35.2 $ 126.7 For a discussion of the fair value levels and the valuation methodologies used to measure equities, bonds, and the absolute return fund (refer to Note 6 ). The following table sets forth a summary of the changes in the fair value of the Level 3 pension plan assets, which were measured at fair value on a recurring basis (in millions): Year Ended Six Months Ended December 31, December 31, 2016 December 31, Assets at beginning of year $ 43.4 $ 35.2 $ 34.3 Actual return on plan assets 1.0 6.7 0.1 Purchases, sales and settlements, net 0.9 (4.2 ) 2.1 Net transfers — 7.6 — Foreign exchange 5.5 (1.9 ) (1.3 ) Assets at end of year $ 50.8 $ 43.4 $ 35.2 All properties in the fund are valued by independent valuation experts by forecasting the returns of the market at regular intervals. The inputs to the forecasts include gross national product growth, interest rates and inflation. The fair value of the insurance contracts is an estimate of the amount that would be received in an orderly sale to a market participant at the measurement date. The amount the plan would receive from the contract holder if the contracts were terminated is the primary input and is unobservable. The insurance contracts are therefore classified as Level 3 investments. Deferred Compensation Plans We have non-qualified plans related to deferred compensation and executive retention that allow certain employees and directors to defer compensation subject to specific requirements. Although the plans are not formally funded, we own insurance policies that had a cash surrender value of $34.6 million , $32.7 million and $34.6 million at December 31, 2017 , December 31, 2016 , and December 31, 2015 , respectively, that are intended as a long-term funding source for these plans. The assets, which are recorded in Other non-current assets, are not a committed funding source and may, under certain circumstances, be subject to claims from creditors. The deferred compensation liability of $31.6 million , $29.3 million , and $34.5 million at December 31, 2017 , December 31, 2016 , and December 31, 2015 , respectively, was recorded in Other non-current liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We lease certain assets, principally warehouse facilities and computer equipment, under agreements that expire at various dates through the year ended December 31, 2024. Certain leases contain provisions for renewal and purchase options and require us to pay various related expenses. Future non-cancelable minimum operating lease commitments are as follows (in millions): Due Amount 2018 $ 38.1 2019 31.9 2020 24.3 2021 18.6 2022 13.7 Thereafter 16.6 Rent expense under all leases was $50.9 million , $53.0 million , $26.2 million , and $39.2 million for the years ended December 31, 2017 and December 31, 2016 , the six months ended December 31, 2015 , and the year ended June 27, 2015 , respectively. At December 31, 2017 , we had non-cancelable purchase obligations totaling $771.0 million consisting of contractual commitments to purchase materials and services to support operations. The obligations are expected to be paid within one year. In view of the inherent difficulties of predicting the outcome of various types of legal proceedings, we cannot determine the ultimate resolution of the matters described below. We establish reserves for litigation and regulatory matters when losses associated with the claims become probable and the amounts can be reasonably estimated. The actual costs of resolving legal matters may be substantially higher or lower than the amounts reserved for those matters. For matters where the likelihood or extent of a loss is not probable or cannot be reasonably estimated as of December 31, 2017 , we have not recorded a loss reserve. If certain of these matters are determined against us, there could be a material adverse effect on our financial condition, results of operations, or cash flows. We currently believe we have valid defenses to the claims in these lawsuits and intend to defend these lawsuits vigorously regardless of whether or not we have a loss reserve. Other than what is disclosed below, we do not expect the outcome of the litigation matters to which we are currently subject to, individually or in the aggregate, have a material adverse effect on our financial condition, results of operations, or cash flows. Antitrust Violations We were named as a counterclaim co-defendant in the lawsuit Fera Pharmaceuticals, LLC v. Akorn, Inc., et al. in the Southern District of New York, in which Akorn, Inc. (“Akorn”) alleged tortious interference and antitrust violations against us and Fera Pharmaceuticals, LLC (“Fera”). Trial was set for February 2018 in the Southern District of New York. This litigation arose out of our acquisition of bacitracin ophthalmic ointment from Fera in 2013. Akorn asserted claims under Sections 1 and 2 of the Sherman Antitrust Act alleging that we and Fera conspired to monopolize, attempted to monopolize, and did unlawfully monopolize the market for sterile bacitracin ophthalmic ointment in the United States through the use of an exclusive agreement with a supplier of sterile bacitracin active pharmaceutical ingredient. The parties have executed a written settlement of all claims and the case has been dismissed. Price-Fixing Lawsuits We have been named as a co-defendant with other manufacturers in a number of class actions alleging that we and other manufacturers of the same product engaged in anti-competitive behavior to fix or raise the prices of certain drugs starting, in some instances, as early as June 2013. The products in question are Clobetasol, Desonide, and Econazole. These complaints, along with complaints filed against other companies alleging price fixing with respect to more than two dozen other drugs, have been consolidated for pretrial proceedings as part of a case captioned In re Generic Pharmaceuticals Pricing Antitrust Litigation, MDL No. 2724 in the U.S. District Court for the Eastern District of Pennsylvania. Pursuant to the court’s schedule staging various cases in phases, we have moved to dismiss the complaints relating to Clobetasol and Econazole. We have also recently been named a defendant along with 31 other manufacturers in a complaint filed by three supermarket chains alleging that defendants conspired to fix prices of all generic pharmaceutical products starting in 2013. At this stage, we cannot reasonably predict the outcome of the liability, if any, associated with these claims. Securities Litigation In the United States On May 18, 2016, a shareholder filed a securities case against us and our former CEO, Joseph Papa, in the U.S. District Court for the District of New Jersey ( Roofers’ Pension Fund v. Papa, et al.) . The plaintiff purported to represent a class of shareholders for the period from April 21, 2015 through May 11, 2016, inclusive. The original complaint alleged violations of Securities Exchange Act sections 10(b) (and Rule 10b‑5) and 14(e) against both defendants and 20(a) control person liability against Mr. Papa. In general, the allegations concerned the actions taken by us and the former executive to defend against the unsolicited takeover bid by Mylan in the period from April 21, 2015 through November 13, 2015. The plaintiff also alleged that the defendants provided inadequate disclosure concerning alleged integration problems related to the Omega acquisition in the period from April 21, 2015 through May 11, 2016. On July 19, 2016, a different shareholder filed a securities class action against us and our former CEO, Joseph Papa, also in the District of New Jersey ( Wilson v. Papa, et al .). The plaintiff purported to represent a class of persons who sold put options on our shares between April 21, 2015 and May 11, 2016. In general, the allegations and the claims were the same as those made in the original complaint filed in the Roofers' Pension Fund case described above. On December 8, 2016, the court consolidated Roofers' Pension Fund case and the Wilson case under the Roofers' Pension Fund case number. In February 2017, the court selected the lead plaintiffs for the consolidated case and the lead counsel to the putative class. In March 2017, the court entered a scheduling order. On June 21, 2017, the court-appointed lead plaintiffs filed an amended complaint that superseded the original complaints in the Roofers’ Pension Fund case and the Wilson case. The lead plaintiffs seek to represent a class of shareholders for the period April 21, 2015 through May 3, 2017, and the amended complaint identifies three subclasses - shareholders who purchased shares during the period on the U.S. exchanges; shareholders who purchased shares during the period on the Tel Aviv exchange; and shareholders who owned shares on the final day of the Mylan tender offer November 13, 2015. The amended complaint names as defendants us and 11 current or former directors and officers of Perrigo (Mses. Judy Brown, Laurie Brlas, Jacqualyn Fouse, Ellen Hoffing, and Messrs. Joe Papa, Marc Coucke, Gary Cohen, Michael Jandernoa, Gerald Kunkle, Herman Morris, and Donal O’Connor). The amended complaint alleges violations of Securities Exchange Act sections 10(b) (and Rule 10b‑5) and 14(e) against all defendants and 20(a) control person liability against the 11 individuals. In general, the allegations concern the actions taken by us and the former executives to defend against the unsolicited takeover bid by Mylan in the period from April 21, 2015 through November 13, 2015 and the allegedly inadequate disclosure throughout the entire class period related to purported integration problems related to the Omega acquisition, alleges incorrect reporting of organic growth at the Company and at Omega, alleges price fixing activities with respect to six generic prescription pharmaceuticals, and alleges improper accounting for the Tysabri ® royalty stream. The amended complaint does not include an estimate of damages. In August 2017, the defendants filed motions to dismiss the amended complaint. The plaintiffs filed their opposition in October 2017. The defendants filed replies in support of the motions to dismiss in November 2017. The court has not indicated whether there will be oral argument of the motions or whether the court will decide the motions on the papers. We intend to defend the lawsuit vigorously. On November 1, 2017, Carmignac Gestion, S.A., filed a securities lawsuit against us and three individuals (former Chairman and CEO Joseph Papa, former CFO Judy Brown, and former Executive Vice President and Board member Marc Coucke). This lawsuit is not a securities class action. The case is styled Carmignac Gestion, S.A. v. Perrigo Company plc, et al. , and was filed in the U.S. District Court for the District of New Jersey. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b-5), 14(e), and 18 against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiff’s allegations focus on events during the period from April 2015 through April 2016. Plaintiff contends that the defendants provided inadequate disclosure throughout the period concerning the valuation and integration of Omega, the financial guidance provided by us during that period, our reporting about the generic prescription pharmaceutical business and its prospects, and the activities surrounding the efforts to defeat the Mylan tender offer during 2015. Many of the allegations in this case overlap with the allegations of the June 2017 amended complaint in the Roofers’ Pension Fund case described above. The plaintiff does not provide an estimate of damages. We intend to defend the lawsuit vigorously. The parties jointly requested that the court stay this case pending the outcome of a ruling on the motions to dismiss filed in the Roofers' Pension Fund case (discussed above), and the court granted the stay motion. On January 16, 2018, Manning & Napier Advisors, LLC filed a securities lawsuit against us and three individuals (former Chairman and CEO Joseph Papa, former CFO Judy Brown, and former Executive Vice President and Board member Marc Coucke). This lawsuit is not a securities class action. The case is styled Manning & Napier Advisors, LLC v. Perrigo Company plc, et al. , and was filed in the U.S. District Court for the District of New Jersey. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b-5) and 18 against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiff’s allegations focus on events during the period from April 2015 through May 2017. Plaintiff contends that the defendants provided inadequate disclosure at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri ® financial asset. Many of the allegations in this case overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. We intend to defend the lawsuit vigorously. The parties jointly requested that the court stay this case pending the outcome of a ruling on the motion to dismiss filed in the Roofers' Pension Fund case (discussed above), and the court granted the stay motion. On January 26, 2018, two different plaintiff groups (the Mason Capital group and the Pentwater group) each filed a lawsuit against us and the same individuals who are defendants in the amended complaint in the securities class action case described above ( Roofers’ Pension Fund case). The same law firm represents these two plaintiff groups, and the two complaints are substantially similar. These two cases are not securities class actions. One case is styled Mason Capital L.P., et al. v. Perrigo Company plc, et al. , and was filed in the U.S. District Court for the District of New Jersey. The other case is styled Pentwater Equity Opportunities Master Fund Ltd., et al. v. Perrigo Company plc, et al. , and also was filed in the U.S. District Court for the District of New Jersey. Both cases are assigned to the same federal judge that is hearing the class action case and the other individual cases described above ( Carmignac and Manning & Napier ). Each complaint asserts claims under Securities Exchange Act sections 14(e) (related to tender offer disclosures) against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiff’s allegations describe events during the period from April 2015 through May 2017. Plaintiff contends that the defendants provided inadequate disclosure during the tender offer period in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri ® financial asset. Many of the factual allegations in these two cases overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above and the allegations in the Carmignac case described above. The plaintiff does not provide an estimate of damages. The parties to each case jointly requested that the court stay each case pending the outcome of a ruling on the motions to dismiss filed in the Roofers’ Pension Fund case (discussed above). The court granted the stay motion in each case. We intend to defend both lawsuits vigorously. On February 13, 2018, a group of plaintiff investors affiliated with Harel Insurance Investments & Financial Services, Ltd. filed a lawsuit against us and the same individuals who are defendants in the amended complaint in the securities class action case described above ( Roofers’ Pension Fund case). The new complaint is substantially similar to the amended complaint in the Roofers' Pension Fund case. The relevant period in the new complaint stretches from February 2014 to May 2, 2017. The complaint adds as defendants two individuals who served on our Board prior to 2016. The case is styled Harel Insurance Company, Ltd., et al. v. Perrigo Company plc, et al. , and was filed in the U.S. District Court for the District of New Jersey and is assigned to the same federal judge that is hearing the class action cases and the four other individual cases described above ( Carmignac , Manning & Napier , Mason Capital , and Pentwater ). The Harel Insurance Company complaint asserts claims under Securities Exchange Act section 10(b) (and related SEC Rule 10b‑5) and section 14(e) (related to tender offer disclosures) against all defendants as well as 20(a) control person liability against the individual defendants. The complaint also asserts claims based on Israeli securities laws. In general, the plaintiff’s allegations describe events during the period from February 2014 through May 2017. Plaintiff contends that the defendants provided inadequate disclosure during the tender offer events in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri ® financial asset from February 2014 until the withdrawal of past financial statements in April 2017. Many of the factual allegations in these two cases overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above and the allegations in the four opt out cases also described above. The plaintiff does not provide an estimate of damages. The parties jointly filed a stay motion similar to the stay sought in the five other opt out cases. The court granted the stay motion. We intend to defend the lawsuit vigorously. On February 16, 2018, First Manhattan Company filed a securities lawsuit against us and three individuals (former Chairman and CEO Joseph Papa, former CFO Judy Brown, and former Executive Vice President and Board member Marc Coucke). This lawsuit is not a securities class action. The case is styled First Manhattan Co. v. Perrigo Company plc, et al. , and was filed in the U.S. District Court for the District of New Jersey. The case was assigned to the same judge hearing the class action case and the five other opt out cases. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b-5), 14(e), and 18 against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiff’s allegations focus on events during the period from April 2015 through May 2017. Plaintiff contends that the defendants provided inadequate disclosure at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri ® financial asset. This lawsuit was filed by the same law firm that filed the Manning & Napier Advisors case and the Carmignac case described above and generally makes the same factual assertions as in the Manning & Napier Advisors case. Many of the allegations in this case overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. We intend to defend the lawsuit vigorously. The parties jointly requested that the court stay this case pending the outcome of a ruling on the motions to dismiss filed in the Roofers’ Pension Fund case (discussed above). The court granted the stay motion. In Israel Because our shares are traded on the Tel Aviv exchange under a dual trading arrangement, we are potentially subject to securities litigation in Israel. Three cases were filed; two were voluntarily dismissed and one was stayed. We are consulting Israeli counsel about our response to these allegations and we intend to defend these cases vigorously. On May 22, 2016, shareholders filed a securities class action against us and five individual defendants: Our former CEO Mr. Papa, our former Executive Vice President and General Manager of the BCH segment Marc Coucke, our then Chief Executive Officer John Hendrickson, our former Board member Gary Kunkle, Jr., and our Board member Laurie Brlas alleging violations of Israeli law in the District Court of Tel Aviv-Jaffa ( Schweiger et al. v. Perrigo Company plc, et al.). On June 15, 2016, we filed a motion to stay the case pending the outcome of the securities class action pending in the New Jersey Federal Court. The plaintiffs did not oppose the motion. The Israeli court granted the motion on the same day, and the Schweiger action was stayed. In October 2017, the Schweiger plaintiffs dismissed their claims without prejudice because of the pendency of another class action case filed in Israel (see discussion below of the Israel Elec. Corp. Employees’ Educ. Fund case). The court approved the voluntary dismissal. On March 29, 2017, plaintiff Eyal Keinan commenced an action in the District Court of Tel Aviv-Jaffa asserting securities claims against two defendants: Perrigo and its auditor Ernst & Young LLP ("EY"). The case is styled Keinan v. Perrigo Company plc, et al. The action sought certification of a class of purchasers of Perrigo shares on the Israeli exchange beginning February 6, 2014. The proposed closing date for the class was not clear from the complaint though it appeared to extend into 2017. In general, the plaintiff asserted that we improperly accounted for our stream of royalty income from two drugs: Tysabri ® and Prialt. The court filings contended that the alleged improper accounting caused the audited financial results for Perrigo to be incorrect for the six month period ended December 31, 2015, and the years ended June 27, 2015 and June 28, 2014 and the other financial data released by us over those years and 2016 to also be inaccurate. The plaintiff maintained that the defendants are liable under Israeli securities law or, in the alternative, under U.S. securities law. The plaintiff indicated an initial, preliminary class damages estimate of 686.0 million NIS (approximately $192.0 million at 1 NIS = $0.28 cent ). In January 2018, the Keinan plaintiff announced its intention to dismiss his claims because of the pendency of another class action case filed in Israel (see discussion below of the Israel Elec. Corp. Employees’ Educ. Fund case). The court granted the dismissal on February 11, 2018. On June 28, 2017, a plaintiff filed a complaint in Tel Aviv District Court styled Israel Elec. Corp. Employees’ Educ. Fund v. Perrigo Company plc, et al. The lead plaintiff seeks to represent a class of shareholders who purchased Perrigo stock on the Tel Aviv exchange during the period April 24, 2015 through May 3, 2017 and also a claim for those that owned shares on the final day of the Mylan tender offer (November 13, 2015). The amended complaint names as defendants the Company, EY (the Company’s auditor), and 11 current or former directors and officers of Perrigo (Mses. Judy Brown, Laurie Brlas, Jacqualyn Fouse, Ellen Hoffing, and Messrs. Joe Papa, Marc Coucke, Gary Cohen, Michael Jandernoa, Gerald Kunkle, Herman Morris, and Donal O’Connor). The complaint alleges violations under U.S. securities laws of Securities Exchange Act sections 10(b) (and Rule 10b‑5) and 14(e) against all defendants and 20(a) control person liability against the 11 individuals or, in the alternative, under Israeli securities laws. In general, the allegations concern the actions taken by us and our former executives to defend against the unsolicited takeover bid by Mylan in the period from April 21, 2015 through November 13, 2015 and the allegedly inadequate disclosure concerning purported integration problems related to the Omega acquisition, alleges incorrect reporting of organic growth at the Company, alleges price fixing activities with respect to six generic prescription pharmaceuticals, and alleges improper accounting for the Tysabri ® royalty stream. The plaintiff indicates an initial, preliminary class damages estimate of 2.7 billion NIS (approximately $760.0 million at 1 NIS = $0.28 cent ). We intend to defend the lawsuit vigorously. On July 12, 2017, the plaintiff in the Israel Elec. Corp. Employees’ Educ. Fund v. Perrigo Company plc, et al. case filed a motion to have all three cases pending in Israel either consolidated or the other two cases dismissed so that the Israel Elec. Corp. Educ. Fund plaintiff can proceed as the sole plaintiff. In October 2017, the Schweiger plaintiffs (see description above) voluntarily dismissed their securities class action without prejudice as part of their response to the motion filed by the Israel Elec. Corp. Educ. Fund plaintiff. A variety of other procedural motions were also pending having to do with the timing of any response by defendants. The court held an initial conference on November 9, 2017 to address the motion filed by the Israel Elec. Corp. Educ. Fund plaintiff. Subsequently, the competing class plaintiffs held discussions and informed the court in January 2018 that they had reached an agreement among themselves such that the Education Fund case will continue while the Keinan plaintiff will dismiss its case. The court approved this outcome. At the request of the parties, the court has stayed the Education Fund case pending the final adjudication of the class action case in DNJ (the Roofers’ Pension Fund case described above under Securities Litigation In the United States). The court approved the stay. Eltroxin During October and November 2011, nine applications to certify a class action lawsuit were filed in various courts in Israel related to Eltroxin, a prescription thyroid medication manufactured by a third party and distributed in Israel by our subsidiary, Perrigo Israel Agencies Ltd. The respondents included our subsidiaries, Perrigo Israel Pharmaceuticals Ltd. and/or Perrigo Israel Agencies Ltd., the manufacturers of the product, and various healthcare providers who provide healthcare services as part of the compulsory healthcare system in Israel. One of the applications was dismissed and the remaining eight applications were consolidated into one application. The applications arose from the 2011 launch of a reformulated version of Eltroxin in Israel. The consolidated application generally alleges that the respondents (a) failed to timely inform patients, pharmacists and physicians about the change in the formulation; and (b) failed to inform physicians about the need to monitor patients taking the new formulation in order to confirm patients were receiving the appropriate dose of the drug. As a result, claimants allege they incurred the following damages: (a) purchases of product that otherwise would not have been made by patients had they been aware of the reformulation; (b) adverse events to some patients resulting from an imbalance of thyroid functions that could have been avoided; and (c) harm resulting from the patients' lack of informed consent prior to the use of the reformulation. Several hearings on whether or not to certify the consolidated application took place in December 2013 and January 2014. On May 17, 2015, the District Court certified the motion against Perrigo Israel Agencies Ltd. and dismissed it against the remaining respondents, including Perrigo Israel Pharmaceuticals Ltd. On June 16, 2015, we submitted a motion for permission to appeal the decision to certify to the Israeli Supreme Court together with a motion to stay the proceedings of the class action until the motion for permission to appeal is adjudicated. We have filed our statement of defense to the underlying proceedings. The parties are currently engaged in mediation in an attempt to settle the matter. The underlying proceedings have been stayed pending the outcome of the mediation process and, if necessary, a decision on the motion to appeal. On November 14, 2017 the Parties submitted the agreed settlement agreement to the approval of the Supreme Court, which referred the approval back to the District Court. During three hearings that took place on November 29, 2017, December 13, 2017 and January 11, 2018 the District Court opined that it would approve the settlement agreement subject to certain amendments to be proposed by the Court (which would not impact the monetary settlement reached) and set a hearing for January 30, 2018 to discuss and finalize the proposed changes. Meanwhile, the Court ordered the settlement to be (1) provided to the Attorney General for review (standard procedure); and (2) published in the written media (newspapers), to enable the class members to submit any objections or “opt-out” to the proposed settlement by February 15, 2018. On February 21, 2018, the District Court held a hearing to, among others, review objections received from class members who had notified the District Court of their desire to opt out of the settlement. In addition, a representative of the Israeli Attorney General’s office notified the District Court that, based upon their preliminary examination of the settlement, they intend to object to the settlement in its current form. The District Court recommended that the parties continue to discuss and minimize objections to the settlement and scheduled another hearing for May 13, 2018. Tysabri ® Product Liability Lawsuits We and our collaborator Biogen are co-defendants in product liability lawsuits arising out of the occurrence of Progressive Multifocal Leukoencephalopathy, a serious brain infection, and serious adverse events, including deaths, which occurred in patients taking Tysabri ® . Each co-defendant would be responsible for 50% of losses and expenses arising out of any Tysabri ® product liability claims. During calendar year 2016, one case in the U.S. was settled and two others were dismissed with prejudice. In 2017, seven other cases were dismissed with prejudice. While we intend to vigorously defend the remaining lawsuits, management cannot predict how these cases will be resolved. Adverse results in one or more of these lawsuits could result in substantial judgments against us. Claim Arising from the Omega Acquisition On December 16, 2016, we and Perrigo Ireland 2 brought an arbitral claim ("Claim") against Alychlo NV ("Alychlo") and Holdco I BE NV ("Holdco") (together the Sellers) in accordance with clause 26.2 of the Share Purchase Agreement dated November 6, 2014 ("SPA") and the rules of the Belgian Centre for Arbitration and Mediation ("CEPANI"). Our Claim relates to the accuracy and completeness of information about Omega provided by the Sellers as part of the sale process, the withholding of information by the Sellers during that process and breaches of Sellers’ warranties. We are seeking monetary damages from the Sellers. The Sellers served their respective responses to the Claim on February 20, 2017. In its response, Alychlo has asserted a counterclaim for monetary damages contending that we breached the duty of good faith in performing the SPA. There can be no assurance that our Claim will be successful, and Sellers deny liability for the Claim. We deny that Alychlo is entitled to any relief (including monetary relief) under the counterclaim. The arbitration proceedings are confidential as required by the SPA and the rules of the CEPANI. |
Collaboration Agreements And Ot
Collaboration Agreements And Other Contractual Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Collaboration Agreements [Abstract] | |
COLLABORATION AGREEMENTS AND OTHER CONTRACTUAL ARRANGEMENTS | COLLABORATION AGREEMENTS AND OTHER CONTRACTUAL ARRANGEMENTS We actively collaborate with other pharmaceutical companies to develop, manufacture and market certain products or groups of products. These types of agreements are common in the pharmaceutical industry. We may choose to enter into these types of agreements to, among other things, leverage our or others’ scientific research and development expertise or utilize our extensive marketing and distribution resources. Terms of the various collaboration agreements may require us to make or receive milestone payments upon the achievement of certain product research and development objectives and pay or receive royalties on the future sale, if any, of commercial products resulting from the collaboration. Milestone and up-front payments made are generally recorded in research and development expense if the payments relate to drug candidates that have not yet received regulatory approval. Milestone and up-front payments made related to approved drugs will generally be capitalized and amortized to cost of goods sold over the economic life of the product. Royalties received are generally reflected as revenues, and royalties paid are generally reflected as cost of goods sold. We enter into a number of collaboration agreements in the ordinary course of business. Although we do not consider these arrangements to be material, the following is a brief description of notable agreements entered into during the years ended December 31, 2016 and June 27, 2015 . We did not enter into any collaborative arrangements during the the six months ended December 31, 2015 . Year Ended December 31, 2017 In December 2017, we entered into a collaboration agreement with a generic pharmaceutical development company, pursuant to which the parties will collaborate in the ongoing development and commercialization of a generic injectable product. We will provide assistance including preparing and filing the product ANDA, and be responsible for commercializing the product. As part of the agreement, we paid a $2.5 million milestone payment on the effective date of the agreement. The $2.5 million fee is reported in Research and development on the consolidated financial statements. We will make additional payments if regulatory approval is obtained and certain other development milestones are achieved. These contingent milestone payments could total $14.5 million in aggregate. There can be no assurance that any such products will be approved by the FDA on the anticipated schedule or at all. Year Ended December 31, 2016 During the year ended December 31, 2016, we added three additional products to the May 15, 2015 development agreement discussed below that are subject to similar buy-back terms if the products are approved by the FDA. We did not receive any consideration from the clinical stage development company, nor do we expect to incur any expense related to the development of the additional products. The estimated purchase price for these additional products, based on the initial development budget, is approximately $126.0 million . If development costs exceed the initial budgeted amounts, the purchase price will increase, but will not exceed approximately $174.0 million . If the products are approved by the FDA and we purchase the products, we estimate that one of the acquisitions will occur in 2019 and two of the acquisitions will occur in 2021. There can be no assurance that any such products will be approved by the FDA on the anticipated schedule or at all. Year Ended June 27, 2015 On May 15, 2015, we entered into a development agreement wherein we transferred the ownership rights to two pharmaceutical products to a clinical stage development company to fund and conduct development activities for the products. We do not expect to incur any expense related to the development of either product. If the products are approved by the FDA, we will execute a buy-back agreement to purchase each product for a multiple of the development costs incurred. Based on the initial development budget for each product, the estimated purchase price for both products is approximately $78.0 million . If development costs exceed the initial budgeted amounts, the purchase price will increase but will not exceed approximately $105.0 million . If the products are approved by the FDA and we purchase the products, we estimate the acquisitions will occur in 2019. On May 1, 2015, we entered into an agreement with a clinical stage biotechnology company for the development of two specialty pharmaceutical products. We paid $18.0 million for an option to acquire the two products, which we reported in research and development expense. On March 1, 2016, we exercised the purchase option to acquire both products. We will make additional payments if we obtain regulatory approval and achieve certain sales milestones, and these contingent milestone payments could total $30.0 million in aggregate. We will also be obligated to make certain royalty payments over periods ranging from seven to ten years from the launch of each product (refer to the Development-Stage Rx Products acquisition in Note 2 for additional information regarding the acquisition). In addition, on December 20, 2017, we divested one of the development-stage Rx products (refer to Note 2 for additional information on the divestment. Additional future milestone payments and receipts related to agreements not specifically discussed above are not material. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring Charges [Abstract] | |
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES We periodically take action to reduce redundant expenses and improve operating efficiencies, typically in connection with business acquisitions. The following reflects our restructuring activity (in millions): Balance at June 28, 2014 $ 16.4 Additional charges 5.1 Payments (18.5 ) Non-cash adjustments (1.4 ) Balance at June 27, 2015 1.6 Additional charges 26.9 Payments (6.4 ) Non-cash adjustments (1.4 ) Balance at December 31, 2015 20.7 Additional charges 31.0 Payments (35.8 ) Non-cash adjustments 3.8 Balance at December 31, 2016 19.7 Additional charges 61.0 Payments (59.6 ) Non-cash adjustments 0.3 Balance at December 31, 2017 $ 21.4 Restructuring activity includes severance, lease exit costs, and asset impairments. The charges incurred during the six months ended December 31, 2015 and the year ended December 31, 2016 were primarily associated with actions we took to streamline our organization as announced on October 22, 2015. The charges incurred during the year ended December 31, 2017 were primarily associated with actions we took to streamline our organization as announced on February 21, 2017. During the year ended December 31, 2017 , $61.0 million of restructuring expenses were recorded, $27.4 million of which was recorded in our CHCA segment and $17.1 million in our CHCI segment. There were no other material restructuring programs that impacted any other one reportable segment for the year ended December 31, 2017 . During the year ended December 31, 2016 , $31.0 million of restructuring expenses were recorded, $20.9 million of which was recorded in our CHCI segment. There were no other material restructuring programs in any of the periods presented. All charges are recorded in Restructuring expense. The remaining $17.6 million liability for employee severance benefits will be paid within the next year, while the remaining $3.8 million liability for lease exit costs will be incurred over the remaining terms of the applicable leases. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
Segments and Geographic Information [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION Our segment reporting structure is consistent with the way our chief operating decision maker makes operating decisions, allocates resources and manages the growth and profitability of the business. Operating segments with similar economic characteristics, including long-term profitability, nature of the products sold and production processes, distribution methods, and classes of customers, are aggregated as reportable segments (refer to Note 1 ). We generated third-party revenue in the following geographic locations (1) during each of the periods presented below (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, Ireland $ 30.4 $ 89.1 $ 11.4 $ 7.2 U.S. 3,272.3 3,353.0 1,686.2 3,303.2 Europe 1,313.2 1,493.0 758.2 576.4 All other countries (2) 330.3 345.5 176.4 340.3 $ 4,946.2 $ 5,280.6 $ 2,632.2 $ 4,227.1 (1) The net sales by geography is derived from the location of the entity that sells to a third party. (2) Includes revenue generated primarily in Israel, Mexico, Australia, and Canada. The net book value of Property, plant and equipment, net by location was as follows (in millions): December 31, December 31, December 31, Ireland $ 4.6 $ 2.7 $ 1.3 U.S. 538.3 556.6 555.0 Europe 155.6 144.6 157.2 Israel 81.5 114.3 115.7 All other countries 53.1 51.9 57.0 $ 833.1 $ 870.1 $ 886.2 Sales to Walmart as a percentage of Consolidated Net sales (reported primarily in our CHCA segment) were as follows: Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, 13.0 % 13.0 % 13.0 % 16.0 % Below is a summary of our results by reporting segment (in millions): CHCA CHCI (1) RX Specialty Sciences Other Unallocated Total Year Ended December 31, 2017 Net sales $ 2,429.9 $ 1,491.0 $ 969.7 $ — $ 55.6 $ — $ 4,946.2 Operating income (loss) $ 445.0 $ 12.5 $ 307.6 $ — $ 8.7 $ (175.6 ) $ 598.2 Operating income (loss) % 18.3 % 0.8 % 31.7 % — % 15.6 % — % 12.1 % Total assets $ 3,786.8 $ 5,029.0 $ 2,813.0 $ — $ — $ — $ 11,628.8 Capital expenditures $ 39.5 $ 27.5 $ 21.6 $ — $ — $ — $ 88.6 Property, plant and equipment, net $ 512.7 $ 180.9 $ 139.5 $ — $ — $ — $ 833.1 Depreciation/amortization $ 115.2 $ 223.7 $ 100.1 $ — $ 5.8 $ — $ 444.8 Change in financial assets $ — $ — $ — $ 24.9 $ — $ — $ 24.9 Year Ended December 31, 2016 Net sales $ 2,507.1 $ 1,652.2 $ 1,042.8 $ — $ 78.5 $ — $ 5,280.6 Operating income (loss) $ 399.8 $ (2,087.4 ) $ (0.2 ) $ (201.2 ) $ 6.1 $ (116.8 ) $ (1,999.7 ) Operating income (loss) % 15.9 % (126.3 )% — % — % 7.8 % — % (37.9 )% Total assets $ 3,351.3 $ 4,795.2 $ 2,646.4 $ 2,775.8 $ 301.4 $ — $ 13,870.1 Capital expenditures $ 59.1 $ 23.7 $ 20.4 $ — $ 3.0 $ — $ 106.2 Property, plant and equip, net $ 528.3 $ 167.2 $ 129.7 $ 0.4 $ 44.5 $ — $ 870.1 Depreciation/amortization $ 119.1 $ 210.0 $ 120.1 $ — $ 7.8 $ — $ 457.0 Change in financial assets $ — $ — $ — $ 2,608.2 $ — $ — $ 2,608.2 Six Months Ended December 31, 2015 Net sales $ 1,251.5 $ 833.0 $ 502.6 $ — $ 45.1 $ — $ 2,632.2 Operating income (loss) $ 209.2 $ (148.5 ) $ 181.9 $ (6.5 ) $ (19.5 ) $ (149.0 ) $ 67.6 Operating income (loss) % 16.7 % (17.8 )% 36.2 % — % (43.3 )% — % 2.6 % Total assets $ 3,384.8 $ 7,083.5 $ 2,738.0 $ 5,930.2 $ 213.1 $ — $ 19,349.6 Capital expenditures $ 38.0 $ 26.3 $ 12.1 $ — $ 1.4 $ — $ 77.8 Property, plant and equip, net $ 540.9 $ 179.5 $ 118.5 $ — $ 47.3 — $ — $ 886.2 Depreciation/amortization $ 60.9 $ 81.9 $ 34.3 $ — $ 5.3 $ — $ 182.4 Change in financial assets $ — $ — $ — $ (57.3 ) $ — $ — $ (57.3 ) Year Ended June 27, 2015 Net sales $ 2,478.8 $ 704.6 $ 936.0 $ — $ 107.7 $ — $ 4,227.1 Operating income (loss) $ 381.9 $ 38.2 $ 364.7 $ (17.6 ) $ 26.8 $ (121.5 ) $ 672.5 Operating income % 15.4 % 5.4 % 39.0 % — % 24.9 % — % 15.9 % Total assets $ 3,763.8 $ 7,163.0 $ 2,373.4 $ 6,040.7 $ 251.0 $ — $ 19,591.9 Capital expenditures $ 76.8 $ 13.1 $ 41.0 $ 0.5 $ 5.6 $ — $ 137.0 Property, plant and equip, net $ 556.8 $ 176.8 $ 113.0 $ — $ 85.8 $ — $ 932.4 Depreciation/amortization $ 108.4 $ 72.5 $ 65.7 $ 1.5 $ 10.6 $ — $ 258.7 Change in financial assets $ — $ — $ — $ (78.5 ) $ — $ — $ (78.5 ) (1) CHCI includes Omega activity subsequent to March 30, 2015. The following is a summary of our revenue by category (in millions): Year Ended Six Months Ended Year Ended December 31, 2017 December 31, 2016 December 31, June 27, CHCA Cough/Cold/Allergy/Sinus (1) $ 483.7 $ 454.6 $ 234.6 $ 455.6 Analgesics (1) 349.8 343.5 173.1 375.7 Gastrointestinal (1) 340.0 335.4 195.8 384.0 Infant nutritionals 413.9 427.0 200.2 383.8 Smoking cessation 297.2 308.5 147.5 284.5 Vitamins, minerals and dietary supplements (1) 45.4 160.4 105.8 183.5 Animal health 141.3 143.7 62.3 157.0 Other CHCA (1),(2) 358.6 334.0 132.2 254.7 Total CHCA 2,429.9 2,507.1 1,251.5 2,478.8 CHCI Branded OTC 1,174.0 1,349.2 665.9 368.4 Other CHCI (3) 317.0 303.0 167.1 336.2 Total CHCI 1,491.0 1,652.2 833.0 704.6 Generic prescription drugs 969.7 1,042.8 502.6 936.0 Active pharmaceutical ingredients 55.6 78.5 45.1 107.7 Total revenue $ 4,946.2 $ 5,280.6 $ 2,632.2 $ 4,227.1 (1) Includes net sales from our OTC contract manufacturing business. (2) Consists primarily of feminine hygiene, diabetes care, dermatological care, branded OTC, diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the CHCA segment. (3) Consists primarily of liquids licensed products, cough/cold/allergy, analgesics, diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the CHCI segment. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Quarterly financial data (unaudited) | QUARTERLY FINANCIAL DATA (unaudited) The following table presents unaudited quarterly consolidated operating results for each of our last ten quarters. The information below has been prepared on a basis consistent with our audited consolidated financial statements (in millions, except per share amounts). Year Ended December 31, 2017 First (2) Second (3) Third (4) Fourth (5) Net sales $ 1,194.0 $ 1,237.9 $ 1,231.3 $ 1,283.0 Gross profit $ 464.4 $ 504.6 $ 497.8 $ 512.7 Change in financial assets $ (17.1 ) $ 38.7 $ 2.6 $ 0.7 Net income (loss) $ 71.6 $ (69.6 ) $ 44.5 $ 73.1 Earnings (loss) per share (1) : Basic $ 0.50 $ (0.49 ) $ 0.31 $ 0.52 Diluted $ 0.50 $ (0.49 ) $ 0.31 $ 0.52 Weighted average shares outstanding Basic 143.4 143.3 141.3 140.8 Diluted 143.6 143.3 141.7 141.2 (1) The sum of individual per share amounts may not equal due to rounding. (2) Includes IPR&D impairment charges of $12.2 million , gain on certain divestiture of $21.8 million , and restructuring charges of $38.7 million . (3) Includes intangible asset impairment charges of $18.5 million , changes in financial assets of $38.7 million , and loss on early debt extinguishment of $135.2 million . (4) Includes held-for-sale impairment charges of $3.3 million , and fixed asset impairment charges of $4.0 million . (5) Includes unusual litigation charge reversal of $0.2 million . Year Ended December 31, 2016 First (2) Second (3) Third (4) Fourth (5) Net sales $ 1,347.3 $ 1,340.5 $ 1,261.6 $ 1,331.2 Gross profit $ 533.1 $ 546.5 $ 484.5 $ 487.7 Change in financial assets $ 204.4 $ 910.8 $ 377.4 $ 1,115.6 Net loss $ (529.2 ) $ (534.3 ) $ (1,590.2 ) $ (1,359.1 ) Loss per share (1) : Basic $ (3.70 ) $ (3.73 ) $ (11.10 ) $ (9.48 ) Diluted $ (3.70 ) $ (3.73 ) $ (11.10 ) $ (9.48 ) Weighted average shares outstanding Basic 143.2 143.2 143.3 143.4 Diluted 143.2 143.2 143.3 143.4 (1) The sum of individual per share amounts may not equal due to rounding. (2) Includes an intangible asset impairment charges of $273.3 million , and a goodwill impairment charge of $130.5 million . (3) Includes held-for-sale impairment charges of $10.5 million and change in financial assets of $910.8 million . (4) Includes intangible asset impairment charges of $866.6 million , goodwill impairment charge of $737.9 thousand , and held-for-sale impairment charges of $10.2 million . (5) Includes intangible asset impairment charges of $378.6 million , goodwill impairment charge of $224.1 million , and a reduction in held-for-sale impairment charges of $4.5 million . Six Months Ended December 31, 2015 September 26, 2015 (2) December 31, 2015 (3) Net sales $ 1,273.1 $ 1,359.1 Gross profit $ 535.2 $ 543.7 Change in financial assets $ (173.8 ) $ 116.6 Net income (loss) $ 260.9 $ (218.4 ) Earnings (loss) per share (1) : Basic $ 1.78 $ (1.51 ) Diluted $ 1.78 $ (1.51 ) Weighted average shares outstanding Basic 146.3 144.9 Diluted 146.9 144.9 (1) The sum of individual per share amounts may not equal due to rounding. (2) Includes Mylan defense-related fees of $15.6 million . (3) Includes an intangible asset impairment charge of $185.1 million , Mylan defense-related fees of $71.3 million , an impairment charge on our India API held for sale assets of $29.0 million , restructuring charges of $24.7 million , and an investment impairment charge of $10.7 million . |
Transition Period Comparative D
Transition Period Comparative Data | 12 Months Ended |
Dec. 31, 2017 | |
Transition period financial data [Abstract] | |
TRANSITION PERIOD COMPARATIVE DATA | TRANSITION PERIOD COMPARATIVE DATA The following table presents certain financial information (in millions, except per share amounts): Six Months Ended December 31, December 27, (Unaudited) Net sales $ 2,632.2 $ 1,844.7 Cost of sales 1,553.3 1,170.9 Gross profit 1,078.9 673.8 Operating expenses Distribution 47.9 29.2 Research and development 88.2 89.8 Selling 325.9 95.3 Administration 306.8 165.6 Impairment charges 215.6 — Restructuring 26.9 4.2 Total operating expenses 1,011.3 384.1 Operating income 67.6 289.7 Change in financial assets (57.3 ) (46.9 ) Interest expense, net 89.9 56.7 Other expense (Income), net 25.2 60.3 Loss on extinguishment of debt 0.9 9.6 Income before income taxes 8.9 210.0 Income tax expense (benefit) (33.6 ) 29.4 Net income $ 42.5 $ 180.6 Income per share Basic $ 0.29 $ 1.34 Diluted $ 0.29 $ 1.34 Weighted-average shares outstanding Basic 145.6 135.1 Diluted 146.1 135.6 Dividends declared per share $ 0.25 $ 0.21 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 27, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | VALUATION AND QUALIFYING ACCOUNTS PERRIGO COMPANY PLC (in millions) Year Ended Six Months Ended Allowance for doubtful accounts December 31, December 31, December 31, Balance at beginning of period $ 6.3 $ 4.5 $ 2.6 Net bad debt expenses (1) 1.4 2.1 2.5 Additions/(deductions) (2) (1.5 ) (0.3 ) (0.6 ) Balance at end of period $ 6.2 $ 6.3 $ 4.5 (1) Includes effects of changes in foreign exchange rates. (2) Uncollectible accounts written off, net of recoveries. Also includes effects of changes in foreign exchange rates. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our fiscal year previously consisted of a 52- or 53-week year ending on or around June 30 of each year with each quarter ending on the Saturday closest to each calendar quarter end. Beginning on January 1, 2016, we changed our fiscal year to begin on January 1 and end on December 31 of each year. As a result of our change in year end, this report on Form 10-K discloses the results of our operations for: • The twelve-month period from January 1, 2017 through December 31, 2017; • The twelve-month period from January 1, 2016 through December 31, 2016; • The six-month period from June 28, 2015 through December 31, 2015; • The twelve-month period from June 29, 2014 to June 27, 2015; and • The six-month period from June 29, 2014 through December 27, 2014. We cut off our quarterly accounting periods on the Saturday closest to the end of the calendar quarter, with the fourth quarter ending on December 31 of each year. |
Segment Reporting | Segment Reporting Our reporting segments are as follows: • Consumer Healthcare Americas (" CHCA ") , comprises our U.S., Mexico and Canada consumer healthcare business (OTC, contract, infant formula and animal health categories). • Consumer Healthcare International (" CHCI ") , comprises our branded consumer healthcare business primarily in Europe and our consumer focused businesses in the U.K., Australia, and Israel. This segment also includes our U.K. liquid licensed products business. • Prescription Pharmaceuticals (" RX ") , comprises our U.S. Prescription Pharmaceuticals business. We also had two legacy operating segments, Specialty Sciences and Other, which contained our Tysabri ® financial asset and Active Pharmaceuticals business ("API") businesses, respectively, which we divested (refer to Note 2 and Note 6 ). Following these divestitures, there were no substantial assets or operations left in either of these segments. Effective January 1, 2017, all expenses associated with our former Specialty Sciences segment were moved to unallocated expenses. Our segments reflect the way in which our management makes operating decisions, allocates resources and manages the growth and profitability of the Company. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our accounts and accounts of all majority-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Unconsolidated Variable Interest Entity | Unconsolidated Variable Interest Entities We have research and development ("R&D") arrangements with certain biotechnology companies that we determined to be variable interest entities ("VIEs"). We did not consolidate the VIEs in our financial statements because we lack the power to direct the activities that most significantly impact their economic performance and thus are not considered the primary beneficiaries of these entities. These arrangements provide us with certain rights and obligations to purchase product candidates from the VIEs, dependent upon the outcome of the development activities. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions, which affect the reported earnings, financial position and various disclosures. Although the estimates are considered reasonable, actual results could differ from the estimates |
Non-U.S. Operations | Non-U.S. Operations We translate our non-U.S. dollar-denominated operations’ assets and liabilities denominated in foreign currencies into U.S. dollars at current rates of exchange as of the balance sheet date and income and expense items at the average exchange rate for the reporting period. Translation adjustments resulting from exchange rate fluctuations are recorded in the cumulative translation account, a component of Accumulated Other Comprehensive Income ("AOCI"). Gains or losses from foreign currency transactions are included in Other expense, net. |
Revenues | Revenues We generally record revenues from product sales when the goods are shipped to the customer. For customers with Free on Board destination terms, a provision is recorded to exclude shipments estimated to be in-transit to these customers at the end of the reporting period. A sales allowance is recorded and accounts receivable are reduced as revenues are recognized for estimated losses on credit sales due to customer claims for discounts, price discrepancies, returned goods and other items. Revenue is also reduced for any contractual customer program arrangements and related liabilities are recorded concurrently. We maintain customer-related accruals and allowances that consist primarily of chargebacks, rebates, sales returns, shelf stock allowances, administrative fees and other incentive programs. Some of these adjustments relate specifically to the RX segment while others relate only to the CHCA and CHCI segments. Certain of these accruals and allowances are recorded in the balance sheet as current liabilities and others are recorded as a reduction in accounts receivable. Changes in these estimates and assumptions related to customer programs may result in additional accruals or allowances. Customer-related accruals and allowances were $512.3 million , $484.3 million , and $489.4 million at December 31, 2017 , December 31, 2016 , and December 31, 2015 , respectively. Revenues from service and royalty arrangements, including revenues from collaborative agreements, consist primarily of royalty payments, payments for R&D services, up-front fees and milestone payments. If an arrangement requires the delivery or performance of multiple deliverables or service elements, we determine whether the individual elements represent separate units of accounting. If the separate elements represent separate units of accounting, we recognize the revenue associated with each element separately and revenue is allocated among elements based on their relative selling prices. If the elements within a multiple deliverable arrangement are not considered separate units of accounting, the delivery of an individual element is considered not to have occurred if there are undelivered elements that are considered essential to the arrangement. To the extent such arrangements contain refund clauses triggered by non-performance or other adverse circumstances, revenue is not recognized until all contractual obligations are satisfied. Non-refundable up-front fees are deferred and amortized to revenue over the related performance period. We estimate the performance period based on the specific terms of each collaborative agreement. Revenue associated with R&D services is recognized on a proportional performance basis over the period that we perform the related activities under the terms of the agreement. Revenue resulting from the achievement of contingent milestone events stipulated in the agreements is recognized when the milestone is achieved. Milestones are based upon the occurrence of a substantive element specified in the contract. Shipping and handling costs billed to customers are included in net sales. Conversely, shipping and handling expenses we incur are included in cost of sales. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist primarily of demand deposits and other short-term investments with maturities of three months or less at the date of purchase. The carrying amount of cash and cash equivalents approximates its fair value. |
Accounts Receivable | Accounts Receivable We maintain an allowance for doubtful accounts that reduces our receivables to amounts that are expected to be collected. In estimating the allowance, management considers factors such as current overall and industry-specific economic conditions, statutory requirements, historical and anticipated customer performance, historical experience with write-offs and the level of past-due amounts. Changes in these conditions may result in additional allowances. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. In addition, included in our accounts receivable balance is $84.4 million and $83.4 million related to our Tysabri ® financial asset at December 31, 2016 and December 31, 2015, respectively, for amounts earned that have not yet been received. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the first-in first-out method. Costs include material and conversion costs. Inventory related to R&D is expensed at the point when it is determined the materials have no alternative future use. We maintain reserves for estimated obsolete or unmarketable inventory based on the difference between the cost of the inventory and its estimated net realizable value. In estimating the reserves, management considers factors such as excess or slow-moving inventories, product expiration dating, products on quality hold, current and future customer demand and market conditions. Changes in these conditions may result in additional reserves (refer to Note 5 ). |
Available for Sale Investments | Available for Sale Investments We determine the appropriate classification of securities as held-to-maturity, available-for-sale, or trading. The classification depends on the purpose for which the financial assets were acquired. Marketable equity securities are classified as available-for-sale. These securities are carried at fair value with unrealized gains and losses included in AOCI. The assessment for impairment of marketable securities classified as available-for-sale is based on established financial methodologies, including quoted market prices for publicly traded securities. If we determine that a loss in the value of an investment is other than temporary, the investment is written down to its estimated fair value. Any such losses are recorded in Other expense, net (refer to Note 7 ). |
Cost Method Investments | Cost Method Investments Non-marketable equity securities are carried at cost, less any write down for impairments, and are adjusted for impairment based on methodologies, an assessment of the impact of general private equity market conditions, and discounted projected future cash flows. Non-marketable equity securities are recorded in Other non-current assets (refer to Note 7 ). |
Equity Method Investments | Equity Method Investments The equity method of accounting is used for unconsolidated entities over which we have significant influence; generally this represents ownership interests of at least 20% and not more than 50%. Under the equity method of accounting, we record the investments at carrying value and adjust for a proportionate share of the profits and losses of these entities each period. We evaluate our equity method investments for recoverability. If we determine that a loss in the value of an investment is other than temporary, the investment is written down to its estimated fair value. Any such losses are recorded in Other expense, net. Evaluations of recoverability are based primarily on projected cash flows. Due to uncertainties in the estimation process, actual results could differ from such estimates. Equity method investments are recorded in Other non-current assets (refer to Note 7 ). |
Derivatives Instruments | Derivative Instruments We record derivative instruments on the balance sheet on a gross basis as either an asset or liability measured at fair value (refer to Note 8 ). Additionally, changes in a derivative's fair value, which are measured at the end of each period, are recognized in earnings unless specific hedge accounting criteria are met. If hedge accounting criteria are met for cash flow hedges, the changes in a derivative’s fair value are recorded in shareholders’ equity as a component of other comprehensive income ("OCI"), net of tax. These deferred gains and losses are recognized in income in the period in which the hedged item and hedging instrument affect earnings. Any ineffective portion of the change in fair value is immediately recognized in earnings. We are exposed to credit loss in the event of nonperformance by the counterparties on derivative contracts. It is our policy to manage our credit risk on these transactions by dealing only with financial institutions having a long-term credit rating of "A" or better and by distributing the contracts among several financial institutions to diversify credit concentration risk. Should a counterparty default, our maximum exposure to loss is the asset balance of the instrument. The maximum term of our forward currency exchange contracts is 18 months. We enter into certain derivative financial instruments, when available on a cost-effective basis, to mitigate our risk associated with changes in interest rates and foreign currency exchange rates as follows: Interest rate risk management - We are exposed to the impact of interest rate changes through our cash investments and borrowings. We utilize a variety of strategies to manage the impact of changes in interest rates including using a mix of debt maturities along with both fixed-rate and variable-rate debt. In addition, we may enter into treasury-lock agreements and interest rate swap agreements on certain investing and borrowing transactions to manage our exposure to interest rate changes and our overall cost of borrowing. Foreign currency exchange risk management - We conduct business in several major currencies other than the U.S. dollar and are subject to risks associated with changing foreign exchange rates. Our objective is to reduce cash flow volatility associated with foreign exchange rate changes on a consolidated basis to allow management to focus its attention on business operations. Accordingly, we enter into various contracts that change in value as foreign exchange rates change to protect the value of existing foreign currency assets and liabilities, commitments, and anticipated foreign currency sales and expenses. All derivative instruments are managed on a consolidated basis to efficiently net exposures and thus take advantage of any natural offsets. Gains and losses related to the derivative instruments are expected to be offset largely by gains and losses on the original underlying asset or liability. We do not use derivative financial instruments for speculative purposes. All of our designated derivatives were classified as cash flow hedges as of December 31, 2017 , December 31, 2016 , and December 31, 2015 . Designated derivatives meet hedge accounting criteria, which means the fair value of the hedge is recorded in shareholders’ equity as a component of OCI, net of tax. The deferred gains and losses are recognized in income in the period in which the hedged item affects earnings. Any ineffective portion of the change in fair value of the derivative is immediately recognized in earnings. All of our designated derivatives are assessed for hedge effectiveness quarterly. We also have economic non-designated derivatives that do not meet hedge accounting criteria. These derivative instruments are adjusted to current market value at the end of each period through earnings. Gains or losses on these instruments are offset substantially by the remeasurement adjustment on the hedged item. |
Property, Plant and Equipment, Net | Property, Plant and Equipment, net Property, plant and equipment, net are recorded at cost and are depreciated using the straight-line method. Useful lives for financial reporting range from 3 to 20 years for machinery and equipment and 10 to 45 years for buildings. Maintenance and repair costs are charged to earnings, while expenditures that increase asset lives are capitalized. |
Financial Assets | Financial Assets Prior to its divestiture on March 27, 2017, we accounted for the Tysabri ® royalty stream as a financial asset and have elected to use the fair value option model (refer to Note 6 ). We made the election to account for the Tysabri ® financial asset using the fair value option as we believe this method is most appropriate for an asset that does not have a par value, a stated interest stream, or a termination date. The fair value of the Tysabri ® financial asset is determined by using a discounted cash flow analysis related to the expected future cash flows to be received. This asset is classified as Level 3 assets within the fair value hierarchy, as our valuation estimates utilize significant unobservable inputs, including estimates as to the probability and timing of future sales of the related products. Critical estimates in determining the fair value are the underlying revenue assumptions of Tysabri ® sales and the discount rates. The revenue assumptions are impacted by product demand and market growth assumptions, inventory target levels, product approval, currency movements and pricing assumptions. Factors that could cause a change in estimates of future cash flows include a change in estimated market size, entry of a competitive product that would erode market share, manufacturing and approval of a biosimilar equivalent product, a change in pricing strategy or reimbursement coverage, a delay in obtaining regulatory approval, a change in dosage of the product, or a change in the number of treatments. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill represents amounts paid for an acquisition in excess of the fair value of net assets received. Goodwill is tested for impairment annually on the first day of our fourth quarter, or more frequently if changes in circumstances or the occurrence of events suggest an impairment exists. The test for impairment requires us to make several estimates about fair value, most of which are based on projected future cash flows and market valuation multiples. The estimates associated with the goodwill impairment tests are considered critical due to the judgments required in determining fair value amounts, including projected discounted future cash flows. Changes in these estimates may result in the recognition of an impairment loss. Our annual impairment tests were performed as of October 1, 2017, October 2, 2016, September 27, 2015, and March 29, 2015, for the years ended December 31, 2017 and December 31, 2016 , the six months ended December 31, 2015 , and the year ended June 27, 2015 , respectively. Intangible Assets We have intangible assets that we have acquired through various business acquisitions and include trademarks, trade names and brands, in-process research and development ("IPR&D"), developed product technology/formulation and product rights, distribution and license agreements, customer relationships and distribution networks, and non-compete agreements. The assets are typically initially valued using one of the following valuation methods: • Relief from royalty method : This method assumes that if the acquired company did not own the intangible asset or intellectual property, it would be willing to pay a royalty for its use. The benefit of ownership of the intellectual property is valued as the relief from the royalty expense that would otherwise be incurred. We typically use this method for valuing readily transferable intangible assets that have licensing appeal, such as trade names and trademarks and certain technology assets. • Multi-period excess earnings method : This method starts with a forecast of the net cash flows expected to be generated by the asset over its estimated useful life. These cash flows are then adjusted to present value by applying an appropriate discount rate that reflects the risk factors associated with the cash flow streams. We typically use this method for valuing intangible assets such as developed product technology, customer relationships, product formulations and IPR&D. • Lost income method : This method estimates the fair value of an asset by comparing the value of the business, inclusive of the asset, to the hypothetical value of the same business excluding the asset. Indefinite-lived intangible assets include IPR&D and certain trademarks, trade names, and brands. IPR&D assets are recognized at fair value and are classified as indefinite-lived assets until the successful completion or abandonment of the associated research and development efforts. If the associated research and development is completed, the IPR&D asset becomes a definite-lived intangible asset and is amortized over the asset's assigned useful life. If it is abandoned, an impairment loss is recorded. We test indefinite-lived trademarks, trade names, and brands for impairment quarterly, or more frequently if changes in circumstances or the occurrence of events suggest impairment exists, by comparing the carrying value of the assets to their estimated fair values. An impairment loss is recognized if the carrying amount of the asset is not recoverable and its carrying amount exceeds its fair value. Definite-lived intangible assets consist of a portfolio of developed product technology/formulation and product rights, distribution and license agreements, customer relationships, non-compete agreements, and certain trademarks, trade names, and brands. The assets are amortized on either a straight-line basis or proportionately to the benefits derived from those relationships or agreements. Useful lives vary by asset type and are determined based on the period over which the intangible asset is expected to contribute directly or indirectly to our future cash flows. We also review all other long-lived assets that have finite lives and that are not held for sale for impairment when indicators of impairment are evident by comparing the carrying value of the assets to their estimated future undiscounted cash flows. See Note 3 for further information on our goodwill and intangible assets. |
Assets Held for Sale | Assets Held for Sale We classify assets as "held for sale" when management approves and commits to a formal plan of sale with the expectation the sale will be completed within one year. The net assets of the business held for sale are then recorded at the lower of their current carrying value and the fair market value, less costs to sell (refer to Note 9 ). |
Deferred Financing Fees | Deferred Financing Fees We record deferred financing fees as a reduction of long-term debt. |
Share-Based Awards | Share-Based Awards We measure and record compensation expense for all share-based awards based on estimated grant date fair values, and net of any estimated forfeitures over the vesting period of the awards. Forfeiture rates are estimated at the grant date based on historical experience and adjusted in subsequent periods for any differences in actual forfeitures from those estimates. We estimate the fair value of stock option awards granted based on the Black-Scholes option pricing model, which requires the use of subjective and complex assumptions. These assumptions include estimating the expected term that awards granted are expected to be outstanding, the expected volatility of our stock price for a period commensurate with the expected term of the related options, and the risk-free rate with a maturity closest to the expected term of the related awards. Restricted stock and restricted stock units are valued based on our stock price on the day the awards are granted. The estimated fair value of outstanding Relative Total Shareholder Return performance units (“RTSR”) is based on the grant date fair value of RTSR awards using a Monte Carlo simulation, which includes estimating the movement of stock prices and the effects of volatility, interest rates, and dividends (refer to Note 12 ). |
Income Taxes | Income Taxes We record deferred income tax assets and liabilities on the balance sheet as noncurrent based upon the difference between the financial reporting and the tax reporting basis of assets and liabilities using the enacted tax rates. To the extent that available evidence raises doubt about the realization of a deferred income tax asset, a valuation allowance is established. We have provided for income taxes for certain earnings of certain foreign subsidiaries which have not been deemed to be permanently reinvested. For those foreign subsidiaries we have deemed to be permanently reinvested, we have provided no further tax provision. We record reserves for uncertain tax positions to the extent it is more likely than not that the tax position will be sustained on audit, based on the technical merits of the position. Periodic changes in reserves for uncertain tax positions are reflected in the provision for income taxes. We include interest and penalties attributable to uncertain tax positions and income taxes as a component of our income tax provision (refer to Note 14 ) |
Legal Contingencies | Legal Contingencies We are involved in product liability, patent, commercial, regulatory and other legal proceedings that arise in the normal course of business. We record a liability when a loss is considered probable and the amount can be reasonably estimated. If the reasonable estimate of a probable loss is a range and no amount within that range is a better estimate, the minimum amount in the range is accrued. If a loss is not probable or a probable loss cannot be reasonably estimated, no liability is recorded. We have established reserves for certain of our legal matters (refer to Note 16 ). We also separately record any insurance recoveries that are probable of occurring. |
Research and Development | Research and Development All R&D costs, including payments related to products under development and research consulting agreements, are expensed as incurred. We may continue to make non-refundable payments to third parties for new technologies and for R&D work that has been completed. These payments may be expensed at the time of payment depending on the nature of the payment made. R&D expense was $167.7 million , $184.0 million , $88.2 million , and $187.8 million for the years ended December 31, 2017 , and December 31, 2016 , the six months ended December 31, 2015 and the year ended June 27, 2015 , respectively. The year ended December 31, 2017 included R&D expense related to new product development and clinical trial expenses in our CHCA, CHCI and RX segments. The year ended December 31, 2016 included R&D expense related to clinical trials primarily in our CHCA and RX segments. The six months ended December 31, 2015 included incremental R&D expense attributable to the Omega Pharma Invest N.V. ("Omega") acquisition. The year ended June 27, 2015 included incremental R&D expense related to a collaboration agreement entered into as a result the Omega acquisition. We actively collaborate with other pharmaceutical companies to develop, manufacture and market certain products or groups of products. We may choose to enter into these types of agreements to, among other things, leverage our or others’ scientific research and development expertise or utilize our extensive marketing and distribution resources. Our policy on accounting for costs of strategic collaborations determines the timing of the recognition of certain development costs. In addition, this policy determines whether the cost is classified as development expense or capitalized as an asset. Management is required to form judgments with respect to the commercial status of such products in determining whether development costs meet the criteria for immediate expense or capitalization. For example, when we acquire certain products for which there is already an Abbreviated New Drug Application ("ANDA") or New Drug Application ("NDA") approval directly related to the product, and there is net realizable value based on projected sales for these products, we capitalize the amount paid as an intangible asset. If we acquire product rights that are in the development phase and as to which we have no assurance that the third party will successfully complete its development milestones, we expense the amount paid (refer to Note 17 for more information on our current collaboration agreements). |
Advertising Costs | Advertising Costs We expense advertising costs as incurred. Advertising costs relate primarily to print advertising, direct mail, on-line advertising and social media communications. |
Earnings per Share (EPS) | Earnings per Share ("EPS") Basic EPS is calculated using the weighted-average number of ordinary shares outstanding during each period. It excludes both the dilutive effects of additional common shares that would have been outstanding if the shares issued under stock incentive plans had been exercised and the dilutive effect of restricted shares and restricted share units, to the extent those shares and units have not vested. Diluted EPS is calculated including the effects of shares and potential shares issued under stock incentive plans, following the treasury stock method. |
Defined Benefit Plans | Defined Benefit Plans We operate a number of defined benefit plans for employees globally. Two significant assumptions, the discount rate and the expected rate of return on plan assets, are important elements of expense and liability measurement. We evaluate these assumptions annually. Other assumptions involve employee demographic factors, such as retirement patterns, mortality, turnover, and the rate of compensation increase. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The defined benefit obligation is calculated periodically by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of either high quality corporate bonds or long term government bonds depending on the depth and liquidity of the high quality corporate bond market in the different geographies where we have pension liabilities. The bonds are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension liability. Actuarial gains and losses are recognized on the Consolidated Statement of Operations using the corridor method. Under the corridor method, to the extent that any cumulative unrecognized net actuarial gain or loss exceeds 10% of the greater of the present value of the defined benefit obligation and the fair value of the plan assets, that portion is recognized over the expected average remaining working lives of the plan participants. Otherwise, the net actuarial gain or loss is recorded in OCI. We recognize the funded status of benefit plans on the Consolidated Balance Sheets. In addition, we recognize the gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic pension cost of the period as a component of OCI (refer to Note 15 ). |
Recently Accounting Standards Pronouncements | Recent Accounting Standard Pronouncements Below are recent accounting standard updates that we have adopted or are still assessing to determine the effect on our Consolidated Financial Statements. We do not believe that any other recently issued accounting standards could have a material effect on our Consolidated Financial Statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. Recently Issued Accounting Standards Adopted Standard Description Date of adoption Effect on the Financial Statements or Other Significant Matters Clarifying the Definition of a Business This update clarifies the definition of a business and addresses whether transactions should be accounted for as asset acquisitions or business combinations (or divestitures). The guidance includes an initial threshold that an acquired set of assets will not be considered a business if substantially all of the fair value of the assets acquired is concentrated in a single tangible or identifiable intangible asset (or group of similar assets). If the acquired set does not pass the initial threshold, then the guidance requires that, to be a business, the set must include an input and a substantive process that together significantly contribute to the ability to create outputs. Different factors are considered to determine whether the set includes a substantive process, such as the inclusion of an organized workforce. Further, the guidance removes language stating that a business need not include all of the inputs and processes that the seller used in operating the business. January 1, 2017 We early adopted this new standard and will apply it prospectively when determining whether transactions should be accounted for as asset acquisitions (divestitures) or business combinations (divestitures). During the year ended December 31, 2017, we applied the new guidance when determining whether certain product divestitures represented sales of assets or businesses. Improvements to Employee Share-Based Payment Accounting This guidance is intended to simplify several aspects of the accounting for share-based payment award transactions. It will require all income tax effects of awards to be recorded through the income statement when the awards vest or settle as opposed to certain amounts being recorded in additional paid-in capital. An entity will also have to elect whether to account for forfeitures as they occur or by estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change (as currently required). The guidance will also increase the amount an employer can withhold to cover income taxes on awards. January 1, 2017 We adopted this standard as of January 1, 2017. We elected to estimate the number of awards expected to be forfeited and adjust the estimate when it is likely to change, consistent with past practice. We did not change the amounts that we withhold to cover income taxes on awards. As the requirement to record all income tax effects of vested or settled awards through the income statement is prospective in nature, there was no cumulative effect of adopting the standard on our balance sheet. Recently Issued Accounting Standards Not Yet Adopted Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Revenue from Contracts with Customers The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the entity satisfies a performance obligation. This guidance allows for two adoption methods, full retrospective approach or modified retrospective approach. January 1, 2018 We have substantially completed our evaluation of the impact of adoption of the new revenue standard on our Consolidated Financial Statements. We will adopt the new revenue standard effective January 1, 2018 using the modified retrospective method. Upon adoption, we anticipate recognizing an adjustment of $5.4 million to the opening balance of retained earnings. The impact of adoption relates primarily to the new guidance on when revenue should be recognized, focusing on indicators of the customer gaining control. Under this new model, in certain cases revenue may be recognized over-time as opposed to a point in time. In our business, revenue may be recognized over-time for certain of our contract manufacturing and private label arrangements in which we produce products that do not have an alternative use, and if the contracts with customers were canceled, we would have an enforceable right to payment for performance completed to date, inclusive of a reasonable profit margin. As a result, we expect to recognize revenue earlier in the performance period for these arrangements as product is customized, as opposed to when units are shipped or delivered. Our assessment of the new revenue standard has also included, but has not been limited to, estimation of variable consideration and identification of performance obligations and we have determined that the related accounting is not materially different compared to our current practice. Intra-Entity Asset Transfers of Assets Other Than Inventory Under the new guidance, the tax impact to the seller on the profit from the transfers and the buyer’s deferred tax benefit on the increased tax basis would be recognized when the transfers occur, resulting in the recognition of expense sooner than under historical guidance. The guidance excludes intra-entity transfers of inventory. For intra-entity transfers of inventory, the Financial Accounting Standards Board ("FASB") decided to retain current GAAP, which requires an entity to recognize the income tax consequences when the inventory has been sold to an outside party. January 1, 2018 We have identified certain intra-entity asset transfers that will require an adjustment; based on our current analysis, no material adjustments have been identified at this time. Financial Instruments - Recognition and Measurement of Financial Assets and Liabilities The objective of this simplification update is to improve the decision usefulness of financial instrument reporting, and it principally affects accounting for equity investments currently classified as available for sale and financial liabilities where the fair value option has been elected. Entities will have to measure many equity investments at fair value and recognize changes in fair value in net income rather than other comprehensive income as required under current U.S. GAAP. January 1, 2018 We have identified certain investments that will require an adjustment; based on our current analysis, no material adjustments have been identified at this time. Recently Issued Accounting Standards Not Yet Adopted (continued) Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Leases This guidance was issued to increase transparency and comparability among organizations by requiring recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. For leases with a term of 12 months or less, lessees are permitted to make an election to not recognize right-of-use assets and lease liabilities. Upon adoption, lessees will apply the new standard as of the beginning of the earliest comparative period presented in the financial statements, however lessees will be able to exclude leases that expire as of the implementation date. Early adoption is permitted. January 1, 2019 We are currently evaluating the implications of adoption on our Consolidated Financial Statements. The actual impact will depend on our lease portfolio at the time of adoption. We have commenced the first step of identifying a task force to take the lead in implementing the new lease standard. Derivatives and Hedging This update was issued to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. In addition, the amendments simplify the application of hedge accounting in certain situations. Under the new rule, the entity’s ability to hedge non-financial and financial risk components is expanded. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and also eases certain documentation and assessment requirements. Early adoption is permitted. January 1, 2019 We are currently evaluating the implications of adoption on our Consolidated Financial Statements. Measurement of Credit Losses on Financial Instruments This guidance changes the impairment model for most financial assets and certain other instruments, replacing the current "incurred loss" approach with an "expected loss" credit impairment model, which will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, and off-balance sheet credit exposures such as letters of credit. Early adoption is permitted. January 1, 2020 We are currently evaluating the new standard for potential impacts on our receivables, debt, and other financial instruments. Intangibles - Goodwill and Other Simplifying the Test for Goodwill The objective of this update is to reduce the cost and complexity of subsequent goodwill accounting by simplifying the impairment test by removing the Step 2 requirement to perform a hypothetical purchase price allocation when the carrying value of a reporting unit exceeds its fair value. If a reporting unit’s carrying value exceeds its fair value, an entity would record an impairment charge based on that difference, limited to the amount of goodwill attributed to that reporting unit. The proposal would not change the guidance on completing Step 1 of the goodwill impairment test. The proposed guidance would be applied prospectively. Early adoption is permitted. January 1, 2020 We are currently evaluating the implications of adoption on our Consolidated Financial Statements. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Property, plant and equipment | We held the following property, plant and equipment, net (in millions): December 31, December 31, December 31, Land $ 45.5 $ 45.0 $ 47.5 Buildings 514.3 520.2 508.2 Machinery and equipment 1,078.6 1,094.7 1,103.3 Gross property, plant and equipment 1,638.4 1,659.9 1,659.0 Less accumulated depreciation (805.3 ) (789.8 ) (772.8 ) Property, plant and equipment, net $ 833.1 $ 870.1 $ 886.2 |
Schedule of advertising expense | Advertising costs were as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, 2016 December 31, June 27, $ 145.3 $ 155.9 $ 77.5 $ 55.7 |
Schedule of new accounting pronouncements and changes in accounting principles | As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. Recently Issued Accounting Standards Adopted Standard Description Date of adoption Effect on the Financial Statements or Other Significant Matters Clarifying the Definition of a Business This update clarifies the definition of a business and addresses whether transactions should be accounted for as asset acquisitions or business combinations (or divestitures). The guidance includes an initial threshold that an acquired set of assets will not be considered a business if substantially all of the fair value of the assets acquired is concentrated in a single tangible or identifiable intangible asset (or group of similar assets). If the acquired set does not pass the initial threshold, then the guidance requires that, to be a business, the set must include an input and a substantive process that together significantly contribute to the ability to create outputs. Different factors are considered to determine whether the set includes a substantive process, such as the inclusion of an organized workforce. Further, the guidance removes language stating that a business need not include all of the inputs and processes that the seller used in operating the business. January 1, 2017 We early adopted this new standard and will apply it prospectively when determining whether transactions should be accounted for as asset acquisitions (divestitures) or business combinations (divestitures). During the year ended December 31, 2017, we applied the new guidance when determining whether certain product divestitures represented sales of assets or businesses. Improvements to Employee Share-Based Payment Accounting This guidance is intended to simplify several aspects of the accounting for share-based payment award transactions. It will require all income tax effects of awards to be recorded through the income statement when the awards vest or settle as opposed to certain amounts being recorded in additional paid-in capital. An entity will also have to elect whether to account for forfeitures as they occur or by estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change (as currently required). The guidance will also increase the amount an employer can withhold to cover income taxes on awards. January 1, 2017 We adopted this standard as of January 1, 2017. We elected to estimate the number of awards expected to be forfeited and adjust the estimate when it is likely to change, consistent with past practice. We did not change the amounts that we withhold to cover income taxes on awards. As the requirement to record all income tax effects of vested or settled awards through the income statement is prospective in nature, there was no cumulative effect of adopting the standard on our balance sheet. Recently Issued Accounting Standards Not Yet Adopted Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Revenue from Contracts with Customers The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the entity satisfies a performance obligation. This guidance allows for two adoption methods, full retrospective approach or modified retrospective approach. January 1, 2018 We have substantially completed our evaluation of the impact of adoption of the new revenue standard on our Consolidated Financial Statements. We will adopt the new revenue standard effective January 1, 2018 using the modified retrospective method. Upon adoption, we anticipate recognizing an adjustment of $5.4 million to the opening balance of retained earnings. The impact of adoption relates primarily to the new guidance on when revenue should be recognized, focusing on indicators of the customer gaining control. Under this new model, in certain cases revenue may be recognized over-time as opposed to a point in time. In our business, revenue may be recognized over-time for certain of our contract manufacturing and private label arrangements in which we produce products that do not have an alternative use, and if the contracts with customers were canceled, we would have an enforceable right to payment for performance completed to date, inclusive of a reasonable profit margin. As a result, we expect to recognize revenue earlier in the performance period for these arrangements as product is customized, as opposed to when units are shipped or delivered. Our assessment of the new revenue standard has also included, but has not been limited to, estimation of variable consideration and identification of performance obligations and we have determined that the related accounting is not materially different compared to our current practice. Intra-Entity Asset Transfers of Assets Other Than Inventory Under the new guidance, the tax impact to the seller on the profit from the transfers and the buyer’s deferred tax benefit on the increased tax basis would be recognized when the transfers occur, resulting in the recognition of expense sooner than under historical guidance. The guidance excludes intra-entity transfers of inventory. For intra-entity transfers of inventory, the Financial Accounting Standards Board ("FASB") decided to retain current GAAP, which requires an entity to recognize the income tax consequences when the inventory has been sold to an outside party. January 1, 2018 We have identified certain intra-entity asset transfers that will require an adjustment; based on our current analysis, no material adjustments have been identified at this time. Financial Instruments - Recognition and Measurement of Financial Assets and Liabilities The objective of this simplification update is to improve the decision usefulness of financial instrument reporting, and it principally affects accounting for equity investments currently classified as available for sale and financial liabilities where the fair value option has been elected. Entities will have to measure many equity investments at fair value and recognize changes in fair value in net income rather than other comprehensive income as required under current U.S. GAAP. January 1, 2018 We have identified certain investments that will require an adjustment; based on our current analysis, no material adjustments have been identified at this time. Recently Issued Accounting Standards Not Yet Adopted (continued) Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters Leases This guidance was issued to increase transparency and comparability among organizations by requiring recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. For leases with a term of 12 months or less, lessees are permitted to make an election to not recognize right-of-use assets and lease liabilities. Upon adoption, lessees will apply the new standard as of the beginning of the earliest comparative period presented in the financial statements, however lessees will be able to exclude leases that expire as of the implementation date. Early adoption is permitted. January 1, 2019 We are currently evaluating the implications of adoption on our Consolidated Financial Statements. The actual impact will depend on our lease portfolio at the time of adoption. We have commenced the first step of identifying a task force to take the lead in implementing the new lease standard. Derivatives and Hedging This update was issued to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. In addition, the amendments simplify the application of hedge accounting in certain situations. Under the new rule, the entity’s ability to hedge non-financial and financial risk components is expanded. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and also eases certain documentation and assessment requirements. Early adoption is permitted. January 1, 2019 We are currently evaluating the implications of adoption on our Consolidated Financial Statements. Measurement of Credit Losses on Financial Instruments This guidance changes the impairment model for most financial assets and certain other instruments, replacing the current "incurred loss" approach with an "expected loss" credit impairment model, which will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, and off-balance sheet credit exposures such as letters of credit. Early adoption is permitted. January 1, 2020 We are currently evaluating the new standard for potential impacts on our receivables, debt, and other financial instruments. Intangibles - Goodwill and Other Simplifying the Test for Goodwill The objective of this update is to reduce the cost and complexity of subsequent goodwill accounting by simplifying the impairment test by removing the Step 2 requirement to perform a hypothetical purchase price allocation when the carrying value of a reporting unit exceeds its fair value. If a reporting unit’s carrying value exceeds its fair value, an entity would record an impairment charge based on that difference, limited to the amount of goodwill attributed to that reporting unit. The proposal would not change the guidance on completing Step 1 of the goodwill impairment test. The proposed guidance would be applied prospectively. Early adoption is permitted. January 1, 2020 We are currently evaluating the implications of adoption on our Consolidated Financial Statements. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of assets acquired and liabilities assumed | The below table indicates the purchase price allocations for acquisitions completed during the year ended December 31, 2016 (in millions): Tretinoin Products Development-Stage Rx Products All Other (1) Purchase price paid $ 416.4 $ — $ 17.1 Contingent consideration — 24.9 26.2 Total purchase consideration $ 416.4 $ 24.9 $ 43.3 Assets acquired: Cash and cash equivalents $ — $ — $ 3.8 Accounts receivable — — 4.9 Inventories 1.4 — 7.1 Prepaid expenses and other current assets — — 0.1 Property, plant and equipment, net — — 1.2 Goodwill 1.7 — — Definite-lived intangibles : Distribution and license agreements, supply agreements $ — $ — $ 1.8 Developed product technology, formulations, and product rights 411.0 — 18.0 Customer relationships and distribution networks — — 8.2 Non-compete agreements 2.3 — — Indefinite-lived intangibles : In-process research and development $ — $ 24.9 $ 4.9 Total intangible assets $ 413.3 $ 24.9 $ 32.9 Total assets $ 416.4 $ 24.9 $ 50.0 Liabilities assumed: Accounts payable $ — $ — $ 2.8 Accrued liabilities — — 0.1 Long-term debt — — 3.3 Net deferred income tax liabilities — — 0.5 Total liabilities $ — $ — $ 6.7 Net assets acquired $ 416.4 $ 24.9 $ 43.3 (1) Consists of four product acquisitions in our CHCA , CHCI and RX segments The below table indicates the purchase price allocations for acquisitions completed during the six months ended December 31, 2015 (in millions): Entocort ® Naturwohl ScarAway ® GSK Products All Other (1) Purchase price paid $ 380.2 $ 150.4 $ 26.7 $ 223.6 $ 15.3 Contingent consideration — — — — 13.9 Total purchase consideration $ 380.2 $ 150.4 $ 26.7 $ 223.6 $ 29.2 Assets acquired: Cash and cash equivalents $ — $ 4.6 $ — $ — $ — Accounts receivable — 3.3 — — — Inventories 0.2 1.5 1.0 — — Goodwill — 61.0 3.5 32.6 — Definite-lived intangibles : Distribution and license agreements, supply agreements $ — $ 21.4 $ — $ — $ — Developed product technology, formulations, and product rights 380.0 — 0.5 — — Customer relationships and distribution networks — 25.9 9.8 61.5 — Trademarks, trade names, and brands — 64.2 11.4 129.5 — Non-compete agreements — 0.3 0.5 — — Indefinite-lived intangibles : In-process research and development $ — $ — $ — $ — $ 29.2 Total intangible assets $ 380.0 $ 111.8 $ 22.2 $ 191.0 $ 29.2 Total assets $ 380.2 $ 182.2 $ 26.7 $ 223.6 $ 29.2 Liabilities assumed: Accounts payable $ — $ 2.8 $ — $ — $ — Accrued liabilities — 1.6 — — — Net deferred income tax liabilities — 27.4 — — — Total liabilities $ — $ 31.8 $ — $ — $ — Net assets acquired $ 380.2 $ 150.4 $ 26.7 $ 223.6 $ 29.2 (1) Consists of eight product development acquisitions in our CHCA , CHCI and RX segments. The below table indicates the purchase price allocation for acquisitions completed during the year ended June 27, 2015 (in millions): Gelcaps Omega Lumara Total purchase consideration $ 37.9 $ 2,983.2 $ 83.0 Assets acquired: Cash and cash equivalents $ 4.6 $ 14.7 $ — Accounts receivable 7.3 222.9 2.9 Inventories 7.2 277.0 1.5 Prepaid expenses and other current assets 2.1 51.2 0.4 Property, plant and equipment, net 6.0 130.8 0.1 Goodwill 6.0 1,688.7 — Definite-lived intangibles : Developed product technology, formulations, and product rights $ — $ 31.4 $ 82.0 Customer relationships and distribution networks 6.6 1,056.3 — Trademarks, trade names, and brands — 287.5 — Indefinite-lived intangibles : Trademarks, trade names, and brands 4.4 2,003.8 — Total intangible assets $ 11.0 $ 3,379.0 $ 82.0 Other non-current assets 0.4 2.4 — Total assets $ 44.6 $ 5,766.7 $ 86.9 Liabilities assumed: Accounts payable $ 3.3 $ 225.0 $ — Short-term debt — 112.6 — Accrued liabilities 1.6 49.3 3.9 Payroll and related taxes — 51.3 — Accrued customer programs — 28.9 — Long-term debt — 1,471.0 — Net deferred income tax liabilities 1.4 785.5 — Other non-current liabilities 0.4 59.9 — Total liabilities $ 6.7 $ 2,783.5 $ 3.9 Net assets acquired $ 37.9 $ 2,983.2 $ 83.0 |
Fair value of consideration transferred in business acquisition | The acquisition was a cash and stock transaction made up of the following consideration (in millions except per share data): Perrigo ordinary shares issued 5.4 Perrigo per share price at transaction close on March 30, 2015 $ 167.64 Total value of Perrigo ordinary shares issued $ 904.9 Cash consideration 2,078.3 Total consideration $ 2,983.2 |
Schedule of acquisition-related costs | The amounts recorded were not allocated to a reporting segment. The table below details the acquisition costs, as well as losses on hedging activities associated with the acquisition purchase price, and where they were recorded (in millions): Year Ended Line item June 27, Administration $ 29.7 Interest expense, net 23.7 Other expense, net 324.0 Loss on extinguishment of debt 9.6 Total acquisition-related costs $ 387.0 |
Schedule of prior period adjustments | Measurement period adjustment made to the Omega opening balance sheet are shown below. June 27, Measurement Period Adjustments December 31, Accounts receivable $ 227.4 $ (4.5 ) $ 222.9 Inventories $ 288.9 $ (11.9 ) $ 277.0 Property, plant and equipment, net $ 121.2 $ 9.6 $ 130.8 Goodwill $ 1,269.6 $ 419.1 $ 1,688.7 Intangible assets: Developed product technology, formulations, and product rights $ 36.9 $ (5.5 ) $ 31.4 Customer relationships and distribution networks 1,342.7 (286.4 ) 1,056.3 Definite-lived trademarks, trade names, and brands 282.0 5.5 287.5 Indefinite-lived trademarks, trade names, and brands 2,145.2 (141.4 ) 2,003.8 Total intangible assets $ 3,806.8 $ (427.8 ) $ 3,379.0 Accrued liabilities $ 50.0 $ (0.7 ) $ 49.3 Net deferred income tax liabilities $ 771.1 $ 14.4 $ 785.5 Other non-current liabilities $ 88.9 $ (29.0 ) $ 59.9 |
Pro forma information | The following unaudited pro forma information gives effect to the Tretinoin Products, Entocort ® , Naturwohl, GSK Products, ScarAway ®, Omega, Gelcaps, and Lumara acquisitions, as well as two small product acquisitions, as if the acquisitions had occurred on the first day of the year ended ended June 27, 2015 and had been included in our Results of Operations for all periods presented thereafter (in millions): Year Ended Six Months Ended Year Ended (Unaudited) December 31, 2016 December 31, June 27, Net sales $ 5,288.6 $ 2,748.8 $ 5,682.5 Net income (loss) $ (4,011.0 ) $ 81.0 $ 250.2 |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Changes in the carrying amount of goodwill, by reportable segment, were as follows (in millions): CHCA CHCI RX Specialty Sciences Other Total Balance at June 27, 2015 $ 1,817.2 $ 1,530.2 $ 1,086.0 $ 199.6 $ 88.2 $ 4,721.2 Business acquisitions 9.7 87.4 — — — 97.1 Changes in assets held-for-sale (13.0 ) — — — (14.6 ) (27.6 ) Currency translation adjustments (0.8 ) (53.3 ) (1.9 ) — (2.1 ) (58.1 ) Purchase accounting adjustments 1.2 418.9 — — — 420.1 Balance at December 31, 2015 1,814.3 1,983.2 1,084.1 199.6 71.5 5,152.7 Business acquisitions — — 1.7 — — 1.7 Changes in assets held-for-sale 4.5 — — — 9.0 13.5 Impairments (24.5 ) (868.4 ) — (199.6 ) — (1,092.5 ) Currency translation adjustments (0.9 ) (27.5 ) 0.8 — 0.9 (26.7 ) Purchase accounting adjustments 17.2 (16.5 ) — — — 0.7 Balance at December 31, 2016 1,810.6 1,070.8 1,086.6 — 81.4 4,049.4 Re-allocation of goodwill (1) 35.3 — 27.7 — (63.0 ) — Business divestitures — (4.1 ) — — (26.4 ) (30.5 ) Currency translation adjustments 1.5 139.0 8.0 — 8.0 156.5 Balance at December 31, 2017 $ 1,847.4 $ 1,205.7 $ 1,122.3 $ — $ — $ 4,175.4 (1) Certain cash flow associated with the API business were retained. We performed a relative fair value allocation of the business retained and allocated it among the two segments where the business was allocated. These reporting units had the following remaining goodwill balances as of December 31, 2017 (in millions): Reporting Unit Goodwill Remaining in Reporting Unit Segment Fair Value in excess of Carrying Value BCH $ 1,026.0 CHCI 6.6% Animal Health $ 178.9 CHCA 23.6% UK AUS $ 53.1 CHCI 18.3% |
Schedule of finite and indefinite-lived intangible assets | Other intangible assets and the related accumulated amortization consisted of the following (in millions): December 31, 2017 December 31, 2016 December 31, 2015 Gross Accumulated Amortization Gross Accumulated Amortization Gross Accumulated Amortization Definite-lived intangibles : Distribution and license agreements, supply agreements $ 311.2 $ 169.8 $ 305.6 $ 120.4 $ 242.4 $ 77.7 Developed product technology, formulations, and product rights 1,358.4 598.7 1,418.1 526.0 1,387.6 426.0 Customer relationships and distribution networks 1,642.0 460.6 1,489.9 307.5 1,520.7 193.0 Trademarks, trade names, and brands 1,335.4 129.5 1,189.3 55.3 539.4 22.8 Non-compete agreements 14.7 12.6 14.3 11.2 15.2 12.7 Total definite-lived intangibles $ 4,661.7 $ 1,371.2 $ 4,417.2 $ 1,020.4 $ 3,705.3 $ 732.2 Indefinite-lived intangibles : Trademarks, trade names, and brands $ 52.1 $ — $ 50.5 $ — $ 1,868.1 $ — In-process research and development 38.2 — 64.0 — 48.2 — Total indefinite-lived intangibles $ 90.3 $ — $ 114.5 $ — $ 1,916.3 $ — Total other intangible assets $ 4,752.0 $ 1,371.2 $ 4,531.7 $ 1,020.4 $ 5,621.6 $ 732.2 |
Schedule of Intangible Assets Impairment | Intangible asset impairments taken are as follows (in millions): Year Ended Six Months Ended December 31, 2017 December 31, 2016 December 31, 2015 Definite-Lived Intangible Assets IPR&D Indefinite-Lived Intangible Assets Definite-Lived Intangible Assets IPR&D Indefinite-Lived Intangible Assets CHCA $ — $ — $ 0.4 $ — $ — $ — CHCI — 1.1 849.1 321.4 3.5 185.1 RX 19.7 11.6 — 342.2 — — Other — — — 2.0 — — $ 19.7 $ 12.7 $ 849.5 $ 665.6 $ 3.5 $ 185.1 |
Schedule of acquired finite-lived intangible assets by major class | The remaining weighted-average useful life for our amortizable intangible assets by asset class at December 31, 2017 was as follows: Amortizable Intangible Asset Category Remaining Weighted-Average Useful Life (Years) Distribution and license agreements, supply agreements 7 Developed product technology, formulations, and product rights 12 Customer relationships and distribution networks 17 Trademarks, trade names, and brands 20 Non-compete agreements 2 |
Schedule of finite-lived intangible assets, future amortization expense | Our estimated future amortization expense is as follows (in millions): Year Amount 2018 $ 341.0 2019 316.4 2020 280.8 2021 251.8 2022 222.0 Thereafter 1,878.5 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory, current | Major components of inventory were as follows (in millions): December 31, December 31, December 31, Finished goods $ 454.3 $ 431.1 $ 537.2 Work in process 152.8 165.7 151.6 Raw materials 199.8 198.2 209.9 Total inventories $ 806.9 $ 795.0 $ 898.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value, assets measured on recurring and nonrecurring basis | The following tables summarize the valuation of our financial instruments carried at fair value by the above pricing categories (in millions): Fair Value Fair Value Hierarchy December 31, December 31, December 31, Measured at fair value on a recurring basis: Assets: Investment securities Level 1 $ 17.0 $ 38.2 $ 14.9 Foreign currency forward contracts Level 2 $ 6.3 $ 3.8 $ 4.8 Funds associated with Israeli severance liability Level 2 16.3 15.9 17.2 Total level 2 assets $ 22.6 $ 19.7 $ 22.0 Royalty Pharma contingent milestone payments Level 3 $ 134.5 $ — $ — Financial assets Level 3 — 2,350.0 5,310.0 Total level 3 assets $ 134.5 $ 2,350.0 $ 5,310.0 Liabilities: Interest rate swap agreements Level 2 $ — $ — $ 0.3 Foreign currency forward contracts Level 2 3.8 5.0 3.9 Total level 2 liabilities $ 3.8 $ 5.0 $ 4.2 Contingent consideration Level 3 $ 22.0 $ 69.9 $ 17.9 Measured at fair value on a non-recurring basis: Assets: Goodwill (1) Level 3 $ — $ 1,148.4 $ — Indefinite-lived intangible assets (2) Level 3 — 0.3 1,031.8 Definite-lived intangible assets (3) Level 3 11.5 758.0 — Assets held for sale, net Level 3 — 18.2 37.5 Total level 3 assets $ 11.5 $ 1,924.9 $ 1,069.3 (1) As of December 31, 2016, goodwill with a carrying amount of $2.2 billion was written down to its implied fair value of $1.1 billion . (2) As of December 31, 2016, indefinite-lived intangible assets with a carrying amount of $0.7 million were written down to a fair value of $0.3 million . As of December 31, 2015, indefinite-lived intangible assets with a carrying amount of $1.2 billion were written down to a fair value of $1.0 billion . (3) As of December 31, 2017, definite-lived intangible assets with a carrying amount of $31.2 million were written down to a fair value of $11.5 million . As of December 31, 2016, definite-lived intangible assets with a carrying amount of $2.3 billion were written down to a fair value of $758.0 million . Included in this balance are indefinite-lived intangible assets with a fair value of $364.5 million and $674.2 million that were reclassified to definite-lived assets at April 3, 2016 and October 2, 2016, respectively. |
Fair value assets, unobservable inputs reconciliation | The following table summarizes the change in our Consolidated Balance Sheet for the Tysabri ® Financial Asset, which includes our fair value adjustment that is a Level 3 measurement under ASC 820 and is included in our Consolidated Statement of Operations for the years ended December 31, 2017 and December 31, 2016, six months ended December 31, 2015, and year ended June 27, 2015 (in millions): Year Ended Six Months Ended Year Ended December 31, 2017 December 31, December 31, June 27, Tysabri ® financial asset Beginning balance $ 2,350.0 $ 5,310.0 $ 5,420.0 $ 5,680.0 Royalties earned — (351.8 ) (167.3 ) (338.5 ) Change in fair value — (2,608.2 ) 57.3 78.5 Divestitures (2,350.0 ) — — — Ending balance $ — $ 2,350.0 $ 5,310.0 $ 5,420.0 The table below presents a reconciliation for the Royalty Pharma contingent milestone payments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in millions). Change in fair value in the table was recorded in Change in financial assets on the Consolidated Statements of Operations. Year Ended December 31, Royalty Pharma Contingent Milestone Payments Beginning balance $ — Additions 184.5 Payments (8.0 ) Change in fair value (42.0 ) Ending balance $ 134.5 |
Liabilities unobservable inputs reconciliation | The table below presents a reconciliation for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in millions). Net realized losses in the table were recorded in Other expense (Income), net on the Consolidated Statements of Operations. Year Ended Six Months Ended December 31, December 31, December 31, Contingent Consideration Beginning balance $ 69.9 $ 17.9 $ — Net realized losses (19.5 ) (2.1 ) — Purchases or additions — 56.7 17.9 Divestiture (12.5 ) — — Currency translation adjustments 1.5 0.1 — Settlements (17.4 ) (2.7 ) — Ending balance $ 22.0 $ 69.9 $ 17.9 |
Fair value inputs assets | Below is a summary of the various metrics used in our valuations: Year Ended December 31, 2017 Lumara 5-year average growth rate (4.1)% Discount rate 13.5% Valuation method MPEEM Year Ended December 31, 2016 Omega - Lifestyle Omega - Entocort ® - Branded Products Entocort ® - AG Products Herron Trade Names and Trademarks 5-year average growth rate 2.5% 3.2% (31.7)% (30.4)% 4.6% Long-term growth rates 2.0% NA (10.0)% (4.7)% 2.5% Discount rate 9.3% 9.5% 13.0% 10.5% 10.8% Royalty rate NA 4.0% NA NA 11.0% Valuation method MPEEM Relief from Royalty MPEEM MPEEM Relief from Royalty |
Long-term debt fair value | Our fixed rate long-term debt consisted of public bonds, a private placement note and retail bonds as follows (in millions): Year Ended Fair Value Hierarchy December 31, December 31, December 31, Public bonds Level 1 Carrying value $ 2.6 $ 4.6 $ 3.9 Fair value $ 2.7 $ 4.6 $ 3.8 Retail bonds and private placement note Level 2 Carrying value (excluding premium) $ 306.0 $ 773.1 $ 798.3 Fair value $ 342.1 $ 825.0 $ 859.8 Premium $ 21.4 $ 49.8 $ 82.5 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities, Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of unrealized gains (losses) on available for sale securities | Unrealized investment gains (losses) on available for sale securities were as follows (in millions): Year Ended Six Months Ended December 31, December 31, December 31, Equity securities, at cost less impairments $ 15.5 $ 16.5 $ 6.4 Gross unrealized gains 1.5 21.7 9.3 Gross unrealized losses — — (0.8 ) Estimated fair value of equity securities $ 17.0 $ 38.2 $ 14.9 |
Derivative Instruments and He38
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments in statement of financial position, fair value | The balance sheet location and gross fair value of our outstanding derivative instruments were as follows: Asset Derivatives Fair Value Balance Sheet Location December 31, December 31, December 31, Designated derivatives: Foreign currency forward contracts Other current assets $ 4.1 $ 3.1 $ 3.8 Non-designated derivatives: Foreign currency forward contracts Other current assets $ 2.2 $ 0.7 $ 1.0 Liability Derivatives Fair Value Balance Sheet Location December 31, December 31, December 31, Designated derivatives: Foreign currency forward contracts Accrued liabilities $ 1.4 $ 3.0 $ 2.0 Interest rate swap agreements Other non-current liabilities — — 0.3 Total designated derivatives $ 1.4 $ 3.0 $ 2.3 Non-designated derivatives: Foreign currency forward contracts Accrued liabilities $ 2.4 $ 2.0 $ 1.9 |
Schedule of derivative instruments, effect on other comprehensive income (loss) | The gains (losses) recorded in OCI for the effective portion of our designated cash flow hedges were as follows: Amount of Gain/(Loss) Recorded in OCI Year Ended Six Months Ended Year Ended Designated Cash Flow Hedges December 31, December 31, December 31, June 27, Treasury locks $ — $ — $ — $ (2.7 ) Interest rate swap agreements — (9.0 ) (0.3 ) (10.1 ) Foreign currency forward contracts 9.4 2.1 1.7 (7.7 ) $ 9.4 $ (6.9 ) $ 1.4 $ (20.5 ) |
Reclassification out of accumulated other comprehensive income | The gains (losses) reclassified from AOCI into earnings for the effective portion of our designated cash flow hedges were as follows: Amount of Gain/(Loss) Reclassified from AOCI into Earnings Year Ended Six Months Ended Year Ended Designated Cash Flow Hedges Income Statement Location December 31, December 31, December 31, June 27, Treasury locks Interest expense, net $ (0.1 ) $ (0.1 ) $ — $ (0.1 ) Interest rate swap agreements Interest expense, net (2.1 ) (2.3 ) (0.8 ) (16.4 ) Other expense (Income), net (6.0 ) — — — Foreign currency forward contracts Net sales 1.5 1.3 (1.8 ) 1.9 Cost of sales 5.6 3.0 0.8 (4.2 ) Interest expense, net (2.6 ) (1.6 ) (0.4 ) — Other expense (Income), net (1.5 ) 0.4 1.1 (4.4 ) $ (5.2 ) $ 0.7 $ (1.1 ) $ (23.2 ) |
Schedule of hedge ineffectiveness | The gains (losses) recognized against earnings for the ineffective portion of our designated cash flow hedges were as follows: Amount of Gain/(Loss) Recognized against Earnings Year Ended Six Months Ended Year Ended Designated Cash Flow Hedges Income Statement Location December 31, December 31, December 31, June 27, Treasury locks Other expense (Income), net $ — $ — $ — $ (0.4 ) Interest rate swap agreements Other expense (Income), net — (0.1 ) — (0.7 ) Foreign currency forward contracts Net sales 0.2 (0.1 ) (0.1 ) (0.1 ) Cost of sales 0.1 (0.1 ) 0.2 0.2 Other expense, net 1.0 $ 0.6 — — Total $ 1.3 $ 0.3 $ 0.1 $ (1.0 ) |
Schedule of other derivatives not designated as hedging instruments, statements of financial performance and financial position, location | The effects of our non-designated derivatives on the Consolidated Statements of Operations were as follows: Amount of Gain/(Loss) Recognized in Income Year Ended Six Months Ended Year Ended Non-Designated Derivatives Income Statement Location December 31, December 31, December 31, June 27, Foreign currency forward contracts Other expense (Income), net $ 12.6 $ (2.4 ) $ (8.0 ) $ (295.4 ) Interest expense, net (5.3 ) (2.2 ) (0.7 ) (3.4 ) Foreign exchange option contracts Other expense (Income), net — — — (26.4 ) Total $ 7.3 $ (4.6 ) $ (8.7 ) $ (325.2 ) |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of assets held for sale | The amounts consisted of the following (in millions): December 31, CHCA Other Assets held for sale Current assets $ — $ 5.1 Goodwill — 5.5 Property, plant and equipment 13.5 33.2 Other assets — 3.8 Less: impairment reserves (3.7 ) (35.3 ) Total assets held for sale $ 9.8 $ 12.3 Liabilities held for sale Current liabilities $ 0.1 $ 1.9 Other liabilities — 1.9 Total liabilities held for sale $ 0.1 $ 3.8 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Total borrowings outstanding are summarized as follows (in millions): December 31, December 31, December 31, Revolving credit agreements 2015 Revolver $ — $ — $ 380.0 2014 Revolver — — 300.0 Total revolving credit agreements — — 680.0 Term loans * 2014 term loan due December 5, 2019 420.0 420.7 488.8 Notes and bonds Coupon Due 1.300% November 8, 2016 (2) — — 500.0 * 4.500% May 23, 2017 (3) — 189.3 195.5 * 5.125% December 12, 2017 (3) — 315.6 325.8 2.300% November 8, 2018 (2) — 600.0 600.0 * 5.000% May 23, 2019 (3) 144.0 126.2 130.3 3.500% March 15, 2021 (4) 280.4 500.0 — 3.500% December 15, 2021 (1) 309.6 500.0 500.0 * 5.105% July 19, 2023 (3) 162.0 142.0 146.7 4.000% November 15, 2023 (2) 215.6 800.0 800.0 3.900% December 15, 2024 (1) 700.0 700.0 700.0 4.375% March 15, 2026 (4) 700.0 700.0 — 5.300% November 15, 2043 (2) 90.5 400.0 400.0 4.900% December 15, 2044 (1) 303.9 400.0 400.0 Total notes and bonds 2,906.0 5,373.1 4,698.3 Other financing 11.7 3.6 128.2 Unamortized premium (discount), net 21.4 33.0 73.4 Deferred financing fees (17.9 ) (33.1 ) (36.6 ) Total borrowings outstanding 3,341.2 5,797.3 6,032.1 Current indebtedness (70.4 ) (572.8 ) (1,060.5 ) Total long-term debt less current portion $ 3,270.8 $ 5,224.5 $ 4,971.6 (1) Discussed below collectively as the "2014 Notes." (2) Discussed below collectively as the "2013 Notes." (3) Debt assumed from Omega. (4) Discussed below collectively as the "2016 Notes." * Debt denominated in euros subject to fluctuations in the euro-to-U.S. dollar exchange rate. |
Schedule of extinguishment of debt | During the year ended December 31, 2017 , we reduced our outstanding debt through a variety of transactions (in millions): Date Series Transaction Type Principal Retired April 1, 2017 2014 term loan due December 5, 2019 Scheduled quarterly payment $ 13.3 May 8, 2017 $600.0 2.300% senior notes due 2018 Early redemption 600.0 May 23, 2017 €180.0 4.500% retail bonds due 2017 Scheduled maturity 201.3 June 15, 2017 $500.0 3.500% senior notes due 2021 Tender offer 190.4 June 15, 2017 $500.0 3.500% senior notes due 2021 Tender offer 219.6 June 15, 2017 $800.0 4.000% senior notes due 2023 Tender offer 584.4 June 15, 2017 $400.0 5.300% senior notes due 2043 Tender offer 309.5 June 15, 2017 $400.0 4.900% senior notes due 2044 Tender offer 96.1 July 1, 2017 2014 term loan due December 5, 2019 Scheduled quarterly payment 14.3 September 30, 2017 2014 term loan due December 5, 2019 Scheduled quarterly payment 14.8 December 12, 2017 €300.0 5.125% senior notes due 2017 Scheduled maturity 352.3 December 31, 2017 2014 term loan due December 5, 2019 Scheduled quarterly payment 15.0 $ 2,611.0 As a result of the early redemption and tender offer transactions, we recorded a loss of $135.2 million during the three months ended July 1, 2017 in Loss on extinguishment of debt (in millions): Premium on debt repayment $ 116.1 Transaction costs 3.8 Write-off of deferred financing fees 10.6 Write-off of remaining discount on bond 4.7 Total loss on extinguishment of debt $ 135.2 |
Schedule of maturities of short-term and long-term debt | The annual future maturities of our short-term and long-term debt, including capitalized leases, are as follows (in millions): Payment Due Amount 2018 $ 70.4 2019 504.7 2020 0.7 2021 590.0 2022 — Thereafter 2,171.9 |
Earnings (Loss) Per Share And41
Earnings (Loss) Per Share And Shareholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | A reconciliation of the numerators and denominators used in our basic and diluted EPS calculation is as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, Numerator: Net income (loss) $ 119.6 $ (4,012.8 ) $ 42.5 $ 136.1 Denominator: Weighted average shares outstanding for basic EPS 142.3 143.3 145.6 139.3 Dilutive effect of share-based awards* 0.3 — 0.5 0.5 Weighted average shares outstanding for diluted EPS 142.6 143.3 146.1 139.8 Anti-dilutive share-based awards excluded from computation of diluted EPS* 0.8 — 0.1 0.1 * In the period of a net loss, diluted shares equal basic shares. |
Schedule of dividends payable | In January 2003, the Board of Directors adopted a policy of paying quarterly dividends. We paid dividends as follows: Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, Dividends paid (in millions) $ 91.1 $ 83.2 $ 36.3 $ 64.8 Dividends paid (per share) $ 0.64 $ 0.58 $ 0.25 $ 0.46 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Schedule of share-based compensation expense | Share-based compensation expense was as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, $ 43.8 $ 23.0 $ 22.8 $ 31.6 |
Schedule of share-based compensation, stock options, activity | A summary of activity related to stock options is presented below (options in thousands): Number of Weighted-Average Weighted- Aggregate Options outstanding at December 31, 2015 783 $ 99.93 Granted 344 $ 126.67 Exercised (122 ) $ 67.68 Forfeited or expired (256 ) $ 126.54 Options outstanding at December 31, 2016 749 $ 108.40 6.6 $ 5.5 Granted 439 $ 70.34 Exercised (31 ) $ 24.75 Forfeited or expired (85 ) $ 118.47 Options outstanding December 31, 2017 1,072 $ 94.90 6.9 $ 10.9 Options exercisable 519 $ 107.14 5.0 $ 3.8 Options expected to vest 533 $ 83.63 8.7 $ 6.8 |
Schedule of aggregate intrinsic value | The aggregate intrinsic value for options exercised was as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, $ 1.7 $ 5.2 $ 6.7 $ 20.7 |
Schedule of share-based payment award, stock options, valuation assumptions | The assumptions used in estimating the fair value of the RTSR performance share units granted during each year were as follows: Year Ended December 31, Dividend yield 0.9 % Volatility, as a percent 36.1 % Risk-free interest rate 1.4 % Expected life in years 2.57 The fair values were estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended December 31, December 31, June 27, Dividend yield 0.9 % 0.5 % 0.3 % Volatility, as a percent 30.0 % 27.6 % 27.1 % Risk-free interest rate 1.8 % 1.3 % 1.7 % Expected life in years 5.41 5.5 5.3 |
Schedule of nonvested RSUs | A summary of activity related to non-vested service-based restricted share units is presented below (units in thousands): Number of Weighted- Weighted- Aggregate Non-vested service-based share units outstanding at December 31, 2015 382 $ 154.07 Granted 298 $ 113.26 Vested (92 ) $ 137.15 Forfeited (120 ) $ 151.64 Non-vested service-based share units outstanding at December 31, 2016 468 $ 137.53 1.7 $ 39.0 Granted 298 $ 70.55 Vested (112 ) $ 128.86 Forfeited (55 ) $ 120.97 Non-vested service-based share units outstanding at December 31, 2017 599 $ 107.26 1.5 $ 52.2 |
Schedule of weighted average grant date fair value | The weighted-average fair value per share at the date of grant for performance-based restricted share units granted was as follows: Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, $ 70.34 $ 126.37 $ 184.49 $ 150.14 The weighted-average fair value per share at the date of grant for service-based restricted share units granted was as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, $ 70.55 $ 113.26 $ 165.64 $ 153.99 |
Schedule of total fair value of RSUs | The total fair value of service-based restricted share units that vested was as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, $ 14.5 $ 12.6 $ 11.7 $ 9.1 |
Schedule of nonvested PSUs | A summary of activity related to non-vested performance-based restricted share units is presented below (units in thousands): Number of Weighted- Weighted- Aggregate Non-vested performance-based share units outstanding at December 31, 2015 223 $ 146.31 Granted 159 $ 126.37 Vested (81 ) $ 128.74 Forfeited (124 ) $ 143.64 Non-vested performance-based share units outstanding at December 31, 2016 177 $ 138.29 1.7 $ 14.8 Granted 191 $ 70.34 Vested (27 ) $ 142.18 Forfeited (38 ) $ 130.34 Non-vested performance-based share units outstanding at December 31, 2017 303 $ 93.65 2.0 $ 26.5 A summary of activity related to non-vested RTSR performance share units is presented below (units in thousands): Number of Weighted- Weighted- Aggregate Non-vested RTSR performance share units outstanding at December 31, 2016 — $ — 0 $ — Granted 39 $ 64.82 Non-vested RTSR performance share units outstanding at December 31, 2017 39 $ 64.82 2.0 $ 3.4 |
Schedule total fair value | The total fair value of performance-based restricted share units that vested was as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, $ 3.8 $ 10.4 $ 6.4 $ 5.1 |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Changes in our AOCI balances, net of tax, were as follows (in millions): Fair value of derivative financial instruments, net of tax Foreign currency translation adjustments Fair value of investment securities, net of tax Post-retirement and pension liability adjustments, net of tax Total AOCI Balance at June 27, 2015 $ (16.3 ) $ 130.9 $ (2.9 ) $ (8.2 ) $ 103.5 OCI before reclassifications 1.1 (135.5 ) (1.4 ) 6.7 (129.1 ) Amounts reclassified from AOCI 1.0 — 10.7 (1.4 ) 10.3 Other comprehensive income (loss) 2.1 (135.5 ) 9.3 5.3 (118.8 ) Balance at December 31, 2015 (14.2 ) (4.6 ) 6.4 (2.9 ) (15.3 ) OCI before reclassifications (5.4 ) (63.3 ) 7.4 (3.2 ) (64.5 ) Amounts reclassified from AOCI 0.1 — 1.3 (3.4 ) (2.0 ) Other comprehensive income (loss) (5.3 ) (63.3 ) 8.7 (6.6 ) (66.5 ) Balance at December 31, 2016 (19.5 ) (67.9 ) 15.1 (9.5 ) (81.8 ) OCI before reclassifications 7.1 328.5 (12.5 ) 15.0 338.1 Amounts reclassified from AOCI 2.6 — (1.6 ) (4.2 ) (3.2 ) Other comprehensive income (loss) 9.7 328.5 (14.1 ) 10.8 334.9 Balance at December 31, 2017 $ (9.8 ) $ 260.6 $ 1.0 $ 1.3 $ 253.1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax and components of Income tax expense (benefit) | Pre-tax income (loss) and the (benefit) provision for income taxes from continuing operations are summarized as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, Pre-tax income (loss): Ireland $ (454.0 ) $ (3,624.1 ) $ (310.2 ) $ (792.8 ) Other 734.1 (1,224.2 ) 319.1 1,053.1 Total pre-tax income (loss) 280.1 (4,848.3 ) 8.9 260.3 (Benefit) provision for income taxes: Current: Ireland (8.1 ) 0.3 1.6 (2.2 ) United States - federal 96.4 93.0 58.9 77.2 United States - state 4.0 0.7 3.0 6.8 Other foreign 46.1 26.7 53.0 67.4 Subtotal 138.4 120.7 116.5 149.2 Deferred (credit): Ireland 13.1 (549.4 ) (23.1 ) 11.1 United States - federal 6.8 (7.6 ) (34.4 ) (19.9 ) United States - state 1.0 (5.1 ) (3.3 ) (0.8 ) Other foreign 1.2 (394.1 ) (89.3 ) (15.4 ) Subtotal 22.1 (956.2 ) (150.1 ) (25.0 ) Total (benefit) provision for income taxes $ 160.5 $ (835.5 ) $ (33.6 ) $ 124.2 |
Schedule of effective income tax rate reconciliation | A reconciliation of the provision based on the Federal statutory income tax rate to our effective income tax rate is as follows: Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, Provision at statutory rate 12.5 % 12.5 % 12.5 % 12.5 % Ireland tax on non-trading differences (47.7 ) (0.4 ) (207.4 ) (9.9 ) Expenses not deductible for tax purposes/deductions not expensed for book, net 63.4 (0.7 ) 394.0 14.7 Goodwill impairment not deductible for tax purposes — (2.8 ) — — U.S. Operations: State income taxes, net of federal benefit (1.4 ) 0.1 38.4 (1.0 ) Research and development credit (0.6 ) — (13.2 ) (0.7 ) Other (5.8 ) 0.4 112.3 4.8 Tax Law Change - US 5.4 — — — Tax Law Change - Belgium (3.2 ) — — — Other foreign differences (earnings taxed at other than applicable statutory rate) (22.7 ) 3.3 (647.2 ) (16.1 ) Intangible impairment differences (3.0 ) 4.8 (397.6 ) — Worldwide operations: Valuation allowance changes 17.8 0.8 249.3 25.7 Change in unrecognized taxes 25.3 (0.8 ) 82.7 17.7 Withholding taxes 17.3 — — — Effective income tax rate 57.3 % 17.2 % (376.2 )% 47.7 % |
Schedule of deferred tax assets and liabilities | The components of our net deferred income tax asset (liability) were as follows: December 31, December 31, December 31, Deferred income tax asset (liability): Depreciation and amortization $ (457.8 ) $ (765.2 ) $ (1,550.6 ) Inventory basis differences 21.3 27.4 22.8 Accrued liabilities 87.9 68.5 50.8 Allowance for doubtful accounts 1.5 1.7 1.3 Research and development 58.9 61.7 63.7 Loss and credit carryforwards 292.5 292.4 244.2 Share-based compensation 16.2 18.1 20.6 Foreign tax credit — 10.6 10.6 Federal benefit of unrecognized tax positions 17.0 24.3 22.8 Interest carryforwards 30.5 435.3 334.6 Other, net 28.2 3.0 14.7 Subtotal $ 96.2 $ 177.8 $ (764.5 ) Valuation allowance (407.7 ) (495.6 ) (536.8 ) Net deferred income tax asset (liability): $ (311.5 ) $ (317.8 ) $ (1,301.3 ) The above amounts are classified on the Consolidated Balance Sheets as follows (in millions): December 31, December 31, December 31, Assets $ 10.4 $ 72.1 $ 71.4 Liabilities (321.9 ) (389.9 ) (1,372.7 ) Net deferred income tax (liability) asset $ (311.5 ) $ (317.8 ) $ (1,301.3 ) |
Summary of operating loss carryforwards | At December 31, 2017 , we had gross carryforwards as follows: December 31, 2017 Gross (1) Gross Valuation Allowances U.S. state net operating losses $ 248.5 $ 203.6 Worldwide federal net operating losses excluding U.S. states $ 1,389.0 $ 861.6 Worldwide federal capital losses $ 22.0 $ 22.0 U.S. federal credits $ 82.6 $ 82.6 U.S. state credits $ 71.9 $ 71.9 Interest carryforwards $ 478.8 $ 127.0 (1) Utilization of such carryforwards within the applicable statutory periods is uncertain. |
Summary of income tax contingencies | The following table summarizes the activity related to amounts recorded for uncertain tax positions, excluding interest and penalties (in millions): Unrecognized Tax Benefits Balance at June 27, 2015 $ 324.0 Additions: Positions related to the current year 22.9 Reductions: Positions related to prior years (43.5 ) Settlements with taxing authorities (15.3 ) Balance at December 31, 2015 288.1 Additions: Positions related to the current year 45.5 Positions related to prior years 8.6 Reductions: Settlements with taxing authorities (2.4 ) Lapse of statutes of limitation (5.3 ) Balance at December 31, 2016 334.5 Additions: Positions related to the current year 55.0 Positions related to prior years 76.6 Reductions: Settlements with taxing authorities (11.1 ) Lapse of statutes of limitation (0.1 ) Decrease in prior year positions (35.2 ) Balance at December 31, 2017 $ 419.7 |
Post Employment Plans - (Tables
Post Employment Plans - (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Defined contribution plan disclosures | Our contributions to all of the plans were as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, 2016 December 31, June 27, 2015* $ 25.5 $ 26.1 $ 18.9 $ 25.9 |
Schedule of change in the projected benefit obligation and plan assets | The change in the projected benefit obligation and plan assets consisted of the following (in millions): Pension Benefits Other Benefits Year Ended Six Months Ended Year Ended Six Months Ended December 31, December 31, 2016 December 31, December 31, December 31, 2016 December 31, Projected benefit obligation at beginning of period $ 158.9 $ 135.0 $ 140.3 $ 5.8 $ 7.0 $ 6.0 Acquisitions — — 5.6 — — — Curtailment (1.0 ) — — — — — Service costs 4.5 4.1 2.2 0.6 0.6 0.3 Interest cost 3.3 3.6 1.7 0.2 0.2 0.1 Actuarial (gain) loss (10.3 ) 22.6 (10.1 ) (0.3 ) (1.9 ) 0.5 Contributions paid 0.1 0.3 — — — — Benefits paid (2.5 ) (1.7 ) (0.6 ) (0.1 ) (0.1 ) (0.1 ) Foreign currency translation 21.0 (5.0 ) (4.1 ) — — 0.1 Projected benefit obligation at end of period $ 174.0 $ 158.9 $ 135.0 $ 6.2 $ 5.8 $ 7.0 Fair value of plan assets at beginning of period 138.2 126.7 128.1 — — — Acquisitions — — 3.2 — — — Actual return on plan assets 5.5 9.4 (1.7 ) — — — Benefits paid (2.5 ) (1.7 ) (0.6 ) — — — Employer contributions 2.2 8.2 1.4 — — — Contributions paid 0.1 0.3 — — — — Foreign currency translation 19.0 (4.7 ) (3.7 ) — — — Fair value of plan assets at end of period $ 162.5 $ 138.2 $ 126.7 $ — $ — $ — Unfunded status $ (11.5 ) $ (20.7 ) $ (8.3 ) $ (6.2 ) $ (5.8 ) $ (7.0 ) Presented as: Other non-current assets $ 22.0 $ 10.4 $ 16.5 $ — $ — $ — Other non-current liabilities $ (33.5 ) $ (31.1 ) $ (24.8 ) $ — $ (5.8 ) $ (7.0 ) |
Schedule of accumulated benefit obligation | The total accumulated benefit obligation for the defined benefit pension plans was as follows (in millions): Year Ended Six Months Ended December 31, December 31, 2016 December 31, $ 167.6 $ 136.3 $ 109.4 |
Schedule of unrecognized actual gains (losses) | The following unrecognized actual gains (losses) for the other benefits liability was included in OCI, net of tax (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, 2016 December 31, June 27, $ 0.3 $ (0.7 ) $ (0.4 ) $ 0.1 |
Schedule of unamortized net actuarial loss in AOCI net of tax | The unamortized net actuarial loss in AOCI net of tax for defined benefit pension and other benefits was as follows (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, 2016 December 31, June 27, 2015* $ (1.3 ) $ 9.5 $ 2.9 $ 8.2 * Includes Omega activity from March 30, 2015 to June 27, 2015 |
Schedule of expected benefit payments | At December 31, 2017 , the total estimated future benefit payments to be paid by the plans for the next five years is approximately $9.9 million for pension benefits and $1.0 million for other benefits as follows (in millions): Payment Due Pension Benefits Other Benefits 2018 $ 1.4 $ 0.1 2019 1.5 0.2 2020 2.3 0.2 2021 2.1 0.2 2022 2.6 0.3 Thereafter 20.1 1.9 |
Schedule of net periodic pension cost | Net periodic pension cost consisted of the following (in millions): Pension Benefits Other Benefits Year Ended Six Months Ended Year Ended Year Ended Six Months Ended Year Ended December 31, December 31, 2016 December 31, June 27, 2015* December 31, December 31, 2016 December 31, June 27, 2015* Service cost $ 4.5 $ 4.1 $ 2.2 $ 0.9 $ 0.6 $ 0.6 $ 0.3 $ 0.3 Interest cost 3.3 3.6 1.7 2.4 0.2 0.2 0.1 0.2 Expected return on assets (4.3 ) (3.9 ) (1.8 ) (2.7 ) — — — — Curtailment (0.7 ) — — — — — — — Net actuarial loss 0.8 0.5 0.4 1.0 (0.1 ) — — 0.1 Net periodic pension cost $ 3.6 $ 4.3 $ 2.5 $ 1.6 $ 0.7 $ 0.8 $ 0.4 $ 0.6 * Includes Omega activity from March 30, 2015 to June 27, 2015 |
Schedule of assumptions used | As of December 31, 2017 , the expected weighted-average long-term rate of return on assets of 2.9% was calculated based on the assumptions of the following returns for each asset class: Equities 6.0 % Bonds 1.9 % Absolute return fund 4.0 % Insurance contracts 2.8 % Other 2.5 % The weighted-average assumptions used to determine net periodic pension cost and benefit obligation were: Pension Benefits Other Benefits Year Ended Six Months Ended Year Ended Year Ended Six Months Ended Year Ended December 31, December 31, 2016 December 31, June 27, 2015* December 31, December 31, 2016 December 31, June 27, 2015* Discount rate 1.91 % 1.76 % 2.22 % 2.11 % 3.59 % 4.00 % 4.25 % 4.25 % Inflation 1.45 % 1.43 % 2.25 % 1.93 % Expected return on assets 2.90 % 2.89 % 2.93 % 2.85 % * Includes Omega activity from March 30, 2015 to June 27, 2015 |
Schedule of allocation of plan assets | Certain of our plans have target asset allocation ranges, as of December 31, 2017 these ranges are as follows: Equities 10% - 20% Bonds 20% - 30% Absolute return 50% - 60% The following table sets forth the fair value of the pension plan assets, as of December 31, 2017 (in millions): Quoted Prices in Active Markets Other Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Equities $ 0.1 $ 19.1 $ — $ 19.2 Bonds 1.8 30.2 — 32.0 Insurance contracts — — 50.8 50.8 Absolute return fund — 54.5 — 54.5 Other — 6.0 — 6.0 Total $ 1.9 $ 109.8 $ 50.8 $ 162.5 The following table sets forth the fair value of the pension plan assets, as of December 31, 2016 (in millions): Quoted Prices in Active Markets Other Observable Inputs Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Equities $ 0.1 $ 13.6 $ — $ 13.7 Bonds 1.6 22.8 — 24.4 Insurance contracts — — 43.4 43.4 Absolute return fund — 51.5 — 51.5 Other — 5.2 — 5.2 Total $ 1.7 $ 93.1 $ 43.4 $ 138.2 The following table sets forth the fair value of the pension plan assets, as of December 31, 2015 (in millions): Other Observable Inputs Unobservable Inputs (Level 2) (Level 3) Total Equities $ 14.5 $ — $ 14.5 Bonds 38.1 — 38.1 Property — 0.3 0.3 Insurance contracts — 34.9 34.9 Absolute return fund 33.7 — 33.7 Other 5.2 — 5.2 Total $ 91.5 $ 35.2 $ 126.7 |
Schedule of summary of the changes in the fair value of the Level 3 pension plan assets | The following table sets forth a summary of the changes in the fair value of the Level 3 pension plan assets, which were measured at fair value on a recurring basis (in millions): Year Ended Six Months Ended December 31, December 31, 2016 December 31, Assets at beginning of year $ 43.4 $ 35.2 $ 34.3 Actual return on plan assets 1.0 6.7 0.1 Purchases, sales and settlements, net 0.9 (4.2 ) 2.1 Net transfers — 7.6 — Foreign exchange 5.5 (1.9 ) (1.3 ) Assets at end of year $ 50.8 $ 43.4 $ 35.2 |
Commitments and Contingencies -
Commitments and Contingencies - Operating Leases, Future Minimum Payments Due (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments for operating leases | Future non-cancelable minimum operating lease commitments are as follows (in millions): Due Amount 2018 $ 38.1 2019 31.9 2020 24.3 2021 18.6 2022 13.7 Thereafter 16.6 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring Charges [Abstract] | |
Schedule of restructuring charges | The following reflects our restructuring activity (in millions): Balance at June 28, 2014 $ 16.4 Additional charges 5.1 Payments (18.5 ) Non-cash adjustments (1.4 ) Balance at June 27, 2015 1.6 Additional charges 26.9 Payments (6.4 ) Non-cash adjustments (1.4 ) Balance at December 31, 2015 20.7 Additional charges 31.0 Payments (35.8 ) Non-cash adjustments 3.8 Balance at December 31, 2016 19.7 Additional charges 61.0 Payments (59.6 ) Non-cash adjustments 0.3 Balance at December 31, 2017 $ 21.4 |
Segment and Geographic Inform48
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segments and Geographic Information [Abstract] | |
Schedule of revenue by geographic location | We generated third-party revenue in the following geographic locations (1) during each of the periods presented below (in millions): Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, Ireland $ 30.4 $ 89.1 $ 11.4 $ 7.2 U.S. 3,272.3 3,353.0 1,686.2 3,303.2 Europe 1,313.2 1,493.0 758.2 576.4 All other countries (2) 330.3 345.5 176.4 340.3 $ 4,946.2 $ 5,280.6 $ 2,632.2 $ 4,227.1 (1) The net sales by geography is derived from the location of the entity that sells to a third party. (2) Includes revenue generated primarily in Israel, Mexico, Australia, and Canada. |
Schedule of property and equipment by geographic location | The net book value of Property, plant and equipment, net by location was as follows (in millions): December 31, December 31, December 31, Ireland $ 4.6 $ 2.7 $ 1.3 U.S. 538.3 556.6 555.0 Europe 155.6 144.6 157.2 Israel 81.5 114.3 115.7 All other countries 53.1 51.9 57.0 $ 833.1 $ 870.1 $ 886.2 |
Schedules of Concentration of Risk, by Risk Factor | Sales to Walmart as a percentage of Consolidated Net sales (reported primarily in our CHCA segment) were as follows: Year Ended Six Months Ended Year Ended December 31, December 31, December 31, June 27, 13.0 % 13.0 % 13.0 % 16.0 % |
Schedule of segment reporting information, by segment | Below is a summary of our results by reporting segment (in millions): CHCA CHCI (1) RX Specialty Sciences Other Unallocated Total Year Ended December 31, 2017 Net sales $ 2,429.9 $ 1,491.0 $ 969.7 $ — $ 55.6 $ — $ 4,946.2 Operating income (loss) $ 445.0 $ 12.5 $ 307.6 $ — $ 8.7 $ (175.6 ) $ 598.2 Operating income (loss) % 18.3 % 0.8 % 31.7 % — % 15.6 % — % 12.1 % Total assets $ 3,786.8 $ 5,029.0 $ 2,813.0 $ — $ — $ — $ 11,628.8 Capital expenditures $ 39.5 $ 27.5 $ 21.6 $ — $ — $ — $ 88.6 Property, plant and equipment, net $ 512.7 $ 180.9 $ 139.5 $ — $ — $ — $ 833.1 Depreciation/amortization $ 115.2 $ 223.7 $ 100.1 $ — $ 5.8 $ — $ 444.8 Change in financial assets $ — $ — $ — $ 24.9 $ — $ — $ 24.9 Year Ended December 31, 2016 Net sales $ 2,507.1 $ 1,652.2 $ 1,042.8 $ — $ 78.5 $ — $ 5,280.6 Operating income (loss) $ 399.8 $ (2,087.4 ) $ (0.2 ) $ (201.2 ) $ 6.1 $ (116.8 ) $ (1,999.7 ) Operating income (loss) % 15.9 % (126.3 )% — % — % 7.8 % — % (37.9 )% Total assets $ 3,351.3 $ 4,795.2 $ 2,646.4 $ 2,775.8 $ 301.4 $ — $ 13,870.1 Capital expenditures $ 59.1 $ 23.7 $ 20.4 $ — $ 3.0 $ — $ 106.2 Property, plant and equip, net $ 528.3 $ 167.2 $ 129.7 $ 0.4 $ 44.5 $ — $ 870.1 Depreciation/amortization $ 119.1 $ 210.0 $ 120.1 $ — $ 7.8 $ — $ 457.0 Change in financial assets $ — $ — $ — $ 2,608.2 $ — $ — $ 2,608.2 Six Months Ended December 31, 2015 Net sales $ 1,251.5 $ 833.0 $ 502.6 $ — $ 45.1 $ — $ 2,632.2 Operating income (loss) $ 209.2 $ (148.5 ) $ 181.9 $ (6.5 ) $ (19.5 ) $ (149.0 ) $ 67.6 Operating income (loss) % 16.7 % (17.8 )% 36.2 % — % (43.3 )% — % 2.6 % Total assets $ 3,384.8 $ 7,083.5 $ 2,738.0 $ 5,930.2 $ 213.1 $ — $ 19,349.6 Capital expenditures $ 38.0 $ 26.3 $ 12.1 $ — $ 1.4 $ — $ 77.8 Property, plant and equip, net $ 540.9 $ 179.5 $ 118.5 $ — $ 47.3 — $ — $ 886.2 Depreciation/amortization $ 60.9 $ 81.9 $ 34.3 $ — $ 5.3 $ — $ 182.4 Change in financial assets $ — $ — $ — $ (57.3 ) $ — $ — $ (57.3 ) Year Ended June 27, 2015 Net sales $ 2,478.8 $ 704.6 $ 936.0 $ — $ 107.7 $ — $ 4,227.1 Operating income (loss) $ 381.9 $ 38.2 $ 364.7 $ (17.6 ) $ 26.8 $ (121.5 ) $ 672.5 Operating income % 15.4 % 5.4 % 39.0 % — % 24.9 % — % 15.9 % Total assets $ 3,763.8 $ 7,163.0 $ 2,373.4 $ 6,040.7 $ 251.0 $ — $ 19,591.9 Capital expenditures $ 76.8 $ 13.1 $ 41.0 $ 0.5 $ 5.6 $ — $ 137.0 Property, plant and equip, net $ 556.8 $ 176.8 $ 113.0 $ — $ 85.8 $ — $ 932.4 Depreciation/amortization $ 108.4 $ 72.5 $ 65.7 $ 1.5 $ 10.6 $ — $ 258.7 Change in financial assets $ — $ — $ — $ (78.5 ) $ — $ — $ (78.5 ) (1) CHCI includes Omega activity subsequent to March 30, 2015. |
Schedule of sales by major product category | The following is a summary of our revenue by category (in millions): Year Ended Six Months Ended Year Ended December 31, 2017 December 31, 2016 December 31, June 27, CHCA Cough/Cold/Allergy/Sinus (1) $ 483.7 $ 454.6 $ 234.6 $ 455.6 Analgesics (1) 349.8 343.5 173.1 375.7 Gastrointestinal (1) 340.0 335.4 195.8 384.0 Infant nutritionals 413.9 427.0 200.2 383.8 Smoking cessation 297.2 308.5 147.5 284.5 Vitamins, minerals and dietary supplements (1) 45.4 160.4 105.8 183.5 Animal health 141.3 143.7 62.3 157.0 Other CHCA (1),(2) 358.6 334.0 132.2 254.7 Total CHCA 2,429.9 2,507.1 1,251.5 2,478.8 CHCI Branded OTC 1,174.0 1,349.2 665.9 368.4 Other CHCI (3) 317.0 303.0 167.1 336.2 Total CHCI 1,491.0 1,652.2 833.0 704.6 Generic prescription drugs 969.7 1,042.8 502.6 936.0 Active pharmaceutical ingredients 55.6 78.5 45.1 107.7 Total revenue $ 4,946.2 $ 5,280.6 $ 2,632.2 $ 4,227.1 (1) Includes net sales from our OTC contract manufacturing business. (2) Consists primarily of feminine hygiene, diabetes care, dermatological care, branded OTC, diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the CHCA segment. (3) Consists primarily of liquids licensed products, cough/cold/allergy, analgesics, diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the CHCI segment. |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The following table presents unaudited quarterly consolidated operating results for each of our last ten quarters. The information below has been prepared on a basis consistent with our audited consolidated financial statements (in millions, except per share amounts). Year Ended December 31, 2017 First (2) Second (3) Third (4) Fourth (5) Net sales $ 1,194.0 $ 1,237.9 $ 1,231.3 $ 1,283.0 Gross profit $ 464.4 $ 504.6 $ 497.8 $ 512.7 Change in financial assets $ (17.1 ) $ 38.7 $ 2.6 $ 0.7 Net income (loss) $ 71.6 $ (69.6 ) $ 44.5 $ 73.1 Earnings (loss) per share (1) : Basic $ 0.50 $ (0.49 ) $ 0.31 $ 0.52 Diluted $ 0.50 $ (0.49 ) $ 0.31 $ 0.52 Weighted average shares outstanding Basic 143.4 143.3 141.3 140.8 Diluted 143.6 143.3 141.7 141.2 (1) The sum of individual per share amounts may not equal due to rounding. (2) Includes IPR&D impairment charges of $12.2 million , gain on certain divestiture of $21.8 million , and restructuring charges of $38.7 million . (3) Includes intangible asset impairment charges of $18.5 million , changes in financial assets of $38.7 million , and loss on early debt extinguishment of $135.2 million . (4) Includes held-for-sale impairment charges of $3.3 million , and fixed asset impairment charges of $4.0 million . (5) Includes unusual litigation charge reversal of $0.2 million . Year Ended December 31, 2016 First (2) Second (3) Third (4) Fourth (5) Net sales $ 1,347.3 $ 1,340.5 $ 1,261.6 $ 1,331.2 Gross profit $ 533.1 $ 546.5 $ 484.5 $ 487.7 Change in financial assets $ 204.4 $ 910.8 $ 377.4 $ 1,115.6 Net loss $ (529.2 ) $ (534.3 ) $ (1,590.2 ) $ (1,359.1 ) Loss per share (1) : Basic $ (3.70 ) $ (3.73 ) $ (11.10 ) $ (9.48 ) Diluted $ (3.70 ) $ (3.73 ) $ (11.10 ) $ (9.48 ) Weighted average shares outstanding Basic 143.2 143.2 143.3 143.4 Diluted 143.2 143.2 143.3 143.4 (1) The sum of individual per share amounts may not equal due to rounding. (2) Includes an intangible asset impairment charges of $273.3 million , and a goodwill impairment charge of $130.5 million . (3) Includes held-for-sale impairment charges of $10.5 million and change in financial assets of $910.8 million . (4) Includes intangible asset impairment charges of $866.6 million , goodwill impairment charge of $737.9 thousand , and held-for-sale impairment charges of $10.2 million . (5) Includes intangible asset impairment charges of $378.6 million , goodwill impairment charge of $224.1 million , and a reduction in held-for-sale impairment charges of $4.5 million . Six Months Ended December 31, 2015 September 26, 2015 (2) December 31, 2015 (3) Net sales $ 1,273.1 $ 1,359.1 Gross profit $ 535.2 $ 543.7 Change in financial assets $ (173.8 ) $ 116.6 Net income (loss) $ 260.9 $ (218.4 ) Earnings (loss) per share (1) : Basic $ 1.78 $ (1.51 ) Diluted $ 1.78 $ (1.51 ) Weighted average shares outstanding Basic 146.3 144.9 Diluted 146.9 144.9 (1) The sum of individual per share amounts may not equal due to rounding. (2) Includes Mylan defense-related fees of $15.6 million . (3) Includes an intangible asset impairment charge of $185.1 million , Mylan defense-related fees of $71.3 million , an impairment charge on our India API held for sale assets of $29.0 million , restructuring charges of $24.7 million , and an investment impairment charge of $10.7 million . |
Transition Period Comparative50
Transition Period Comparative Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Transition period financial data [Abstract] | |
Transition period comparative income statement | The following table presents certain financial information (in millions, except per share amounts): Six Months Ended December 31, December 27, (Unaudited) Net sales $ 2,632.2 $ 1,844.7 Cost of sales 1,553.3 1,170.9 Gross profit 1,078.9 673.8 Operating expenses Distribution 47.9 29.2 Research and development 88.2 89.8 Selling 325.9 95.3 Administration 306.8 165.6 Impairment charges 215.6 — Restructuring 26.9 4.2 Total operating expenses 1,011.3 384.1 Operating income 67.6 289.7 Change in financial assets (57.3 ) (46.9 ) Interest expense, net 89.9 56.7 Other expense (Income), net 25.2 60.3 Loss on extinguishment of debt 0.9 9.6 Income before income taxes 8.9 210.0 Income tax expense (benefit) (33.6 ) 29.4 Net income $ 42.5 $ 180.6 Income per share Basic $ 0.29 $ 1.34 Diluted $ 0.29 $ 1.34 Weighted-average shares outstanding Basic 145.6 135.1 Diluted 146.1 135.6 Dividends declared per share $ 0.25 $ 0.21 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 27, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Customer related acruals and allowances | $ 489.4 | $ 512.3 | $ 484.3 | ||
Depreciation | 53.8 | 95.2 | 100.2 | $ 84.3 | |
Property, Plant and Equipment, Gross [Abstract] | |||||
Land | 47.5 | 45.5 | 45 | ||
Buildings | 508.2 | 514.3 | 520.2 | ||
Machinery and equipment | 1,103.3 | 1,078.6 | 1,094.7 | ||
Gross property, plant and equipment | 1,659 | 1,638.4 | 1,659.9 | ||
Less accumulated depreciation | (772.8) | (805.3) | (789.8) | ||
Property, plant and equipment, net | 886.2 | 833.1 | 870.1 | 932.4 | |
Research and development | 88.2 | $ 89.8 | 167.7 | 184 | 187.8 |
Advertising expense | $ 77.5 | 145.3 | $ 155.9 | $ 55.7 | |
Cumulative Effect on Retained Earnings, Net of Tax | $ 5.4 | ||||
CHCI | |||||
Property, Plant and Equipment, Gross [Abstract] | |||||
Omega advertising percentage | 94.00% | ||||
Foreign currency forward contracts | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Maximum remaining maturity of foreign currency derivatives | 18 months | 18 months | 18 months | ||
Minimum | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Previous years fiscal period (in weeks) | 365 days | ||||
Minimum | Machinery and Equipment | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life (in years) | 3 years | ||||
Minimum | Building | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life (in years) | 10 years | ||||
Maximum | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Previous years fiscal period (in weeks) | 372 days | ||||
Maximum | Machinery and Equipment | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life (in years) | 20 years | ||||
Maximum | Building | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life (in years) | 45 years | ||||
Tysabri [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Accounts receivable | $ 83.4 | $ 84.4 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - 2016 Acquisitions (Details) $ in Millions | Dec. 20, 2017product | Aug. 02, 2016USD ($) | Mar. 01, 2016USD ($) | Jan. 22, 2016USD ($) | May 01, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 27, 2014USD ($) | Oct. 01, 2016 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 27, 2015USD ($) |
Business Acquisition [Line Items] | |||||||||||
Finite lived assets, useful life | 20 years | ||||||||||
Research and development | $ 88.2 | $ 89.8 | $ 167.7 | $ 184 | $ 187.8 | ||||||
Benzaclin | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Effective date of acquisition | Aug. 2, 2016 | ||||||||||
Percentage of interest acquired | 60.90% | ||||||||||
Purchase price paid | $ 62 | ||||||||||
Benzaclin | Distribution and license agreements, supply agreements | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Finite lived assets, useful life | 9 years | ||||||||||
Tretinoin Products | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Effective date of acquisition | Jan. 22, 2016 | ||||||||||
Purchase price paid | $ 416.4 | ||||||||||
Contingent consideration | $ 0 | ||||||||||
Tretinoin Products | Developed product technology, formulations, and product rights | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Finite lived assets, useful life | 20 years | ||||||||||
Tretinoin Products | Non-compete agreements | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Finite lived assets, useful life | 5 years | ||||||||||
Development-Stage Rx Products | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Purchase price paid | $ 0 | ||||||||||
Research and development | $ 18 | ||||||||||
Contingent consideration | $ 24.9 | ||||||||||
Number of products sold | product | 1 | ||||||||||
Development-Stage Rx Products | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Royalty payment period | 7 years | ||||||||||
Development-Stage Rx Products | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Royalty payment period | 10 years |
Acquisitions and Divestitures53
Acquisitions and Divestitures - Purchase Price Allocation for Year Ended 2016 (Details) $ in Millions | Mar. 01, 2016USD ($) | Jan. 22, 2016USD ($) | May 01, 2015product | Dec. 31, 2015USD ($)product | Dec. 31, 2017USD ($)product | Dec. 31, 2016USD ($)product | Jun. 27, 2015USD ($)product | |||
Assets acquired: | ||||||||||
Goodwill | $ 5,152.7 | $ 4,175.4 | $ 4,049.4 | $ 4,721.2 | ||||||
Liabilities assumed: | ||||||||||
Business combination, number of products purchased | product | 3 | 2 | 2 | |||||||
Tretinoin Products | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price paid | $ 416.4 | |||||||||
Contingent consideration | 0 | |||||||||
Total purchase consideration | 416.4 | |||||||||
Assets acquired: | ||||||||||
Cash and cash equivalents | 0 | |||||||||
Accounts receivable | 0 | |||||||||
Inventories | 1.4 | |||||||||
Prepaid expenses and other current assets | 0 | |||||||||
Property, plant and equipment, net | 0 | |||||||||
Goodwill | 1.7 | |||||||||
Indefinite-lived intangibles: | ||||||||||
Total intangible assets | 413.3 | |||||||||
Total assets | 416.4 | |||||||||
Liabilities assumed: | ||||||||||
Accounts payable | 0 | |||||||||
Accrued liabilities | 0 | |||||||||
Long-term debt | 0 | |||||||||
Net deferred income tax liabilities | 0 | |||||||||
Total liabilities | 0 | |||||||||
Net assets acquired | 416.4 | |||||||||
Tretinoin Products | In-process research and development | ||||||||||
Indefinite-lived intangibles: | ||||||||||
Indefinite-lived intangibles | 0 | |||||||||
Tretinoin Products | Distribution and license agreements, supply agreements | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | |||||||||
Tretinoin Products | Developed product technology, formulations, and product rights | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 411 | |||||||||
Tretinoin Products | Customer relationships and distribution networks | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | |||||||||
Tretinoin Products | Non-compete agreements | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | $ 2.3 | |||||||||
Development-Stage Rx Products | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price paid | $ 0 | |||||||||
Contingent consideration | 24.9 | |||||||||
Total purchase consideration | 24.9 | |||||||||
Assets acquired: | ||||||||||
Cash and cash equivalents | 0 | |||||||||
Accounts receivable | 0 | |||||||||
Inventories | 0 | |||||||||
Prepaid expenses and other current assets | 0 | |||||||||
Property, plant and equipment, net | 0 | |||||||||
Goodwill | 0 | |||||||||
Indefinite-lived intangibles: | ||||||||||
Total intangible assets | 24.9 | |||||||||
Total assets | 24.9 | |||||||||
Liabilities assumed: | ||||||||||
Accounts payable | 0 | |||||||||
Accrued liabilities | 0 | |||||||||
Long-term debt | 0 | |||||||||
Net deferred income tax liabilities | 0 | |||||||||
Total liabilities | 0 | |||||||||
Net assets acquired | 24.9 | |||||||||
Business combination, number of products purchased | product | 2 | |||||||||
Development-Stage Rx Products | In-process research and development | ||||||||||
Indefinite-lived intangibles: | ||||||||||
Indefinite-lived intangibles | 24.9 | |||||||||
Development-Stage Rx Products | Distribution and license agreements, supply agreements | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | |||||||||
Development-Stage Rx Products | Developed product technology, formulations, and product rights | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | |||||||||
Development-Stage Rx Products | Customer relationships and distribution networks | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | |||||||||
Development-Stage Rx Products | Non-compete agreements | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | $ 0 | |||||||||
All Other | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price paid | 15.3 | [1] | $ 17.1 | [2] | ||||||
Contingent consideration | 13.9 | [1] | 26.2 | [2] | ||||||
Total purchase consideration | 29.2 | [1] | 43.3 | [2] | ||||||
Assets acquired: | ||||||||||
Cash and cash equivalents | 0 | [1] | 3.8 | [2] | ||||||
Accounts receivable | 0 | [1] | 4.9 | [2] | ||||||
Inventories | 0 | [1] | 7.1 | [2] | ||||||
Prepaid expenses and other current assets | [2] | 0.1 | ||||||||
Property, plant and equipment, net | [2] | 1.2 | ||||||||
Goodwill | 0 | [1] | 0 | [2] | ||||||
Indefinite-lived intangibles: | ||||||||||
Total intangible assets | 29.2 | [1] | 32.9 | [2] | ||||||
Total assets | 29.2 | [1] | 50 | [2] | ||||||
Liabilities assumed: | ||||||||||
Accounts payable | 0 | [1] | 2.8 | [2] | ||||||
Accrued liabilities | 0 | [1] | 0.1 | [2] | ||||||
Long-term debt | [2] | 3.3 | ||||||||
Net deferred income tax liabilities | 0 | [1] | 0.5 | [2] | ||||||
Total liabilities | 0 | [1] | 6.7 | [2] | ||||||
Net assets acquired | $ 29.2 | [1] | $ 43.3 | [2] | ||||||
Business combination, number of products purchased | product | 8 | 4 | ||||||||
All Other | In-process research and development | ||||||||||
Indefinite-lived intangibles: | ||||||||||
Indefinite-lived intangibles | $ 29.2 | [1] | $ 4.9 | [2] | ||||||
All Other | Distribution and license agreements, supply agreements | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | [1] | 1.8 | [2] | ||||||
All Other | Developed product technology, formulations, and product rights | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | [1] | 18 | [2] | ||||||
All Other | Customer relationships and distribution networks | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | [1] | 8.2 | [2] | ||||||
All Other | Non-compete agreements | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | $ 0 | [1] | $ 0 | [2] | ||||||
[1] | Consists of eight product development acquisitions in our CHCA, CHCI and RX segments. | |||||||||
[2] | Consists of four product acquisitions in our CHCA, CHCI and RX segments. |
Acquisitions and Divestitures54
Acquisitions and Divestitures - 2015 Acquisitions (Details) $ in Thousands, € in Millions | Dec. 15, 2015USD ($) | Sep. 15, 2015EUR (€) | Sep. 15, 2015USD ($) | Aug. 28, 2015USD ($)product | May 12, 2015USD ($) | Mar. 30, 2015USD ($)shares | Oct. 31, 2014USD ($)products | Jun. 27, 2015USD ($)shares | Dec. 31, 2015USD ($)shares | Oct. 01, 2016 | Dec. 31, 2017EUR (€)product | Dec. 31, 2017USD ($)productshares | Dec. 31, 2016USD ($)productshares | Jun. 27, 2015USD ($)productshares | Dec. 02, 2014USD ($) | Jun. 28, 2014shares | Nov. 08, 2013USD ($) |
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 20 years | ||||||||||||||||
Impairment of intangible assets, definite-lived intangible | $ 19,700 | $ 665,600 | |||||||||||||||
Business combination, number of products purchased | product | 3 | 3 | 2 | 2 | |||||||||||||
Senior notes | $ 4,698,300 | $ 2,906,000 | $ 5,373,100 | $ 4,698,300 | $ 2,300,000 | ||||||||||||
Common Stock | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Shares outstanding (in shares) | shares | 146,300,000 | 143,100,000 | 140,800,000 | 143,400,000 | 146,300,000 | 133,800,000 | |||||||||||
Shares issued during period (in shares) | shares | 6,800,000 | ||||||||||||||||
Proceeds from issuance of stock | $ 999,300 | ||||||||||||||||
Developed product technology, formulations, and product rights | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Remaining Weighted-Average Useful Life (Years) | 12 years | 12 years | |||||||||||||||
Customer relationships and distribution networks | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Remaining Weighted-Average Useful Life (Years) | 17 years | 17 years | |||||||||||||||
Non-compete agreements | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Remaining Weighted-Average Useful Life (Years) | 2 years | 2 years | |||||||||||||||
Distribution and license agreements, supply agreements | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Remaining Weighted-Average Useful Life (Years) | 7 years | 7 years | |||||||||||||||
Entocort® | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Effective date of acquisition | Dec. 15, 2015 | ||||||||||||||||
Purchase price paid | $ 380,200 | ||||||||||||||||
Entocort® | Minimum | Developed product technology, formulations, and product rights | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 10 years | ||||||||||||||||
Entocort® | Maximum | Developed product technology, formulations, and product rights | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 15 years | ||||||||||||||||
Naturwohl | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Effective date of acquisition | Sep. 15, 2015 | Sep. 15, 2015 | |||||||||||||||
Purchase price paid | $ 150,400 | ||||||||||||||||
Percentage of interest acquired | 100.00% | 100.00% | |||||||||||||||
Naturwohl | Trademarks, trade names, and brands | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 20 years | 20 years | |||||||||||||||
Naturwohl | Customer relationships and distribution networks | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 15 years | 15 years | |||||||||||||||
Naturwohl | Non-compete agreements | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 3 years | 3 years | |||||||||||||||
Naturwohl | Distribution and license agreements, supply agreements | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 3 years | 3 years | |||||||||||||||
Naturwohl | Euro | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Purchase price paid | € | € 133.5 | ||||||||||||||||
ScarAway® | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Effective date of acquisition | Aug. 28, 2015 | ||||||||||||||||
Purchase price paid | $ 26,700 | ||||||||||||||||
Business combination, number of products purchased | product | 5 | ||||||||||||||||
ScarAway® | Developed product technology, formulations, and product rights | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 8 years | ||||||||||||||||
ScarAway® | Trademarks, trade names, and brands | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 25 years | ||||||||||||||||
ScarAway® | Customer relationships and distribution networks | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 15 years | ||||||||||||||||
ScarAway® | Non-compete agreements | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 4 years | ||||||||||||||||
GSK Products | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Effective date of acquisition | Aug. 28, 2015 | ||||||||||||||||
Purchase price paid | $ 223,600 | ||||||||||||||||
GSK Products | Trademarks, trade names, and brands | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 20 years | ||||||||||||||||
GSK Products | Customer relationships and distribution networks | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 15 years | ||||||||||||||||
GSK Products | Euro | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Purchase price paid | $ 200,000 | ||||||||||||||||
Gelcaps | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Effective date of acquisition | May 12, 2015 | ||||||||||||||||
Purchase price paid | $ 37,900 | ||||||||||||||||
Percentage of interest acquired | 100.00% | ||||||||||||||||
Gelcaps | Inventories | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Adjustment, increase (decrease) in inventory | $ 600 | ||||||||||||||||
Gelcaps | Property, Plant and Equipment | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Adjustment, increase (decrease) in property plant and equipment | (900) | ||||||||||||||||
Gelcaps | Trademarks, trade names, and brands | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 25 years | ||||||||||||||||
Gelcaps | Customer relationships and distribution networks | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 20 years | ||||||||||||||||
Omega | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Effective date of acquisition | Mar. 30, 2015 | ||||||||||||||||
Purchase price paid | $ 2,983,200 | ||||||||||||||||
Percentage of interest acquired | 95.77% | ||||||||||||||||
Shares outstanding (in shares) | shares | 685,348,257 | ||||||||||||||||
Repurchases of common stock (in shares) | shares | 30,243,983 | ||||||||||||||||
Indemnification available from acquired company's sellers | $ 1,080 | ||||||||||||||||
Remaining Weighted-Average Useful Life (Years) | 20 years 7 months 6 days | ||||||||||||||||
Accounting adjustment to intangibles | $ 10,200 | ||||||||||||||||
Omega | Inventories | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Adjustment, increase (decrease) in inventory | 15,100 | ||||||||||||||||
Omega | Property, Plant and Equipment | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Adjustment, increase (decrease) in property plant and equipment | $ 41,500 | ||||||||||||||||
Omega | Long-term debt | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Business combination fair value adjustment | $ 101,900 | ||||||||||||||||
Omega | Trademarks, trade names, and brands | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 8 years | ||||||||||||||||
Omega | Customer relationships and distribution networks | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 21 years | ||||||||||||||||
Omega | Non-compete agreements | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Remaining Weighted-Average Useful Life (Years) | 3 years | 3 years | |||||||||||||||
Omega | Non-solicit agreement | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Remaining Weighted-Average Useful Life (Years) | 2 years | 2 years | |||||||||||||||
Omega | Brands | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 22 years | ||||||||||||||||
Omega | Minimum | Developed product technology, formulations, and product rights | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 4 years | ||||||||||||||||
Omega | Maximum | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Indemnification available from acquired company's sellers | € 120.9 | $ 127,200 | |||||||||||||||
Omega | Maximum | Developed product technology, formulations, and product rights | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 13 years | ||||||||||||||||
Lumara | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Effective date of acquisition | Oct. 31, 2014 | ||||||||||||||||
Purchase price paid | $ 83,000 | ||||||||||||||||
Number of formulations | products | 3 | ||||||||||||||||
Lumara | Minimum | Developed product technology, formulations, and product rights | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 8 years | ||||||||||||||||
Lumara | Maximum | Developed product technology, formulations, and product rights | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Finite lived assets, useful life | 12 years | ||||||||||||||||
2014 bonds [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Senior notes | $ 1,600,000 |
Acquisitions and Divestitures55
Acquisitions and Divestitures - Purchase Price Allocation for Six Months Ended December 2015 (Details) $ in Millions | Dec. 15, 2015USD ($) | Sep. 15, 2015USD ($) | Aug. 28, 2015USD ($)product | Dec. 31, 2015USD ($)product | Dec. 31, 2017USD ($)product | Dec. 31, 2016USD ($)product | Jun. 27, 2015USD ($)product | |||
Assets acquired: | ||||||||||
Goodwill | $ 5,152.7 | $ 4,175.4 | $ 4,049.4 | $ 4,721.2 | ||||||
Liabilities assumed: | ||||||||||
Business combination, number of products purchased | product | 3 | 2 | 2 | |||||||
Entocort® | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price paid | $ 380.2 | |||||||||
Contingent consideration | 0 | |||||||||
Total purchase consideration | 380.2 | |||||||||
Assets acquired: | ||||||||||
Cash and cash equivalents | 0 | |||||||||
Accounts receivable | 0 | |||||||||
Inventories | 0.2 | |||||||||
Goodwill | 0 | |||||||||
Indefinite-lived intangibles: | ||||||||||
Total intangible assets | 380 | |||||||||
Total assets | 380.2 | |||||||||
Liabilities assumed: | ||||||||||
Accounts payable | 0 | |||||||||
Accrued liabilities | 0 | |||||||||
Net deferred income tax liabilities | 0 | |||||||||
Total liabilities | 0 | |||||||||
Net assets acquired | 380.2 | |||||||||
Naturwohl | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price paid | $ 150.4 | |||||||||
Contingent consideration | 0 | |||||||||
Total purchase consideration | 150.4 | |||||||||
Assets acquired: | ||||||||||
Cash and cash equivalents | 4.6 | |||||||||
Accounts receivable | 3.3 | |||||||||
Inventories | 1.5 | |||||||||
Goodwill | 61 | |||||||||
Indefinite-lived intangibles: | ||||||||||
Total intangible assets | 111.8 | |||||||||
Total assets | 182.2 | |||||||||
Liabilities assumed: | ||||||||||
Accounts payable | 2.8 | |||||||||
Accrued liabilities | 1.6 | |||||||||
Net deferred income tax liabilities | 27.4 | |||||||||
Total liabilities | 31.8 | |||||||||
Net assets acquired | 150.4 | |||||||||
ScarAway® | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price paid | $ 26.7 | |||||||||
Contingent consideration | 0 | |||||||||
Total purchase consideration | 26.7 | |||||||||
Assets acquired: | ||||||||||
Cash and cash equivalents | 0 | |||||||||
Accounts receivable | 0 | |||||||||
Inventories | 1 | |||||||||
Goodwill | 3.5 | |||||||||
Indefinite-lived intangibles: | ||||||||||
Total intangible assets | 22.2 | |||||||||
Total assets | 26.7 | |||||||||
Liabilities assumed: | ||||||||||
Accounts payable | 0 | |||||||||
Accrued liabilities | 0 | |||||||||
Net deferred income tax liabilities | 0 | |||||||||
Total liabilities | 0 | |||||||||
Net assets acquired | $ 26.7 | |||||||||
Business combination, number of products purchased | product | 5 | |||||||||
GSK Products | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price paid | $ 223.6 | |||||||||
Contingent consideration | 0 | |||||||||
Total purchase consideration | 223.6 | |||||||||
Assets acquired: | ||||||||||
Cash and cash equivalents | 0 | |||||||||
Accounts receivable | 0 | |||||||||
Inventories | 0 | |||||||||
Goodwill | 32.6 | |||||||||
Indefinite-lived intangibles: | ||||||||||
Total intangible assets | 191 | |||||||||
Total assets | 223.6 | |||||||||
Liabilities assumed: | ||||||||||
Accounts payable | 0 | |||||||||
Accrued liabilities | 0 | |||||||||
Net deferred income tax liabilities | 0 | |||||||||
Total liabilities | 0 | |||||||||
Net assets acquired | 223.6 | |||||||||
All Other | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price paid | 15.3 | [1] | $ 17.1 | [2] | ||||||
Contingent consideration | 13.9 | [1] | 26.2 | [2] | ||||||
Total purchase consideration | 29.2 | [1] | 43.3 | [2] | ||||||
Assets acquired: | ||||||||||
Cash and cash equivalents | 0 | [1] | 3.8 | [2] | ||||||
Accounts receivable | 0 | [1] | 4.9 | [2] | ||||||
Inventories | 0 | [1] | 7.1 | [2] | ||||||
Goodwill | 0 | [1] | 0 | [2] | ||||||
Indefinite-lived intangibles: | ||||||||||
Total intangible assets | 29.2 | [1] | 32.9 | [2] | ||||||
Total assets | 29.2 | [1] | 50 | [2] | ||||||
Liabilities assumed: | ||||||||||
Accounts payable | 0 | [1] | 2.8 | [2] | ||||||
Accrued liabilities | 0 | [1] | 0.1 | [2] | ||||||
Net deferred income tax liabilities | 0 | [1] | 0.5 | [2] | ||||||
Total liabilities | 0 | [1] | 6.7 | [2] | ||||||
Net assets acquired | $ 29.2 | [1] | $ 43.3 | [2] | ||||||
Business combination, number of products purchased | product | 8 | 4 | ||||||||
Distribution and license agreements, supply agreements | Entocort® | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | |||||||||
Distribution and license agreements, supply agreements | Naturwohl | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 21.4 | |||||||||
Distribution and license agreements, supply agreements | ScarAway® | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | |||||||||
Distribution and license agreements, supply agreements | GSK Products | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | |||||||||
Distribution and license agreements, supply agreements | All Other | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | $ 0 | [1] | $ 1.8 | [2] | ||||||
Developed product technology, formulations, and product rights | Entocort® | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 380 | |||||||||
Developed product technology, formulations, and product rights | Naturwohl | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | |||||||||
Developed product technology, formulations, and product rights | ScarAway® | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0.5 | |||||||||
Developed product technology, formulations, and product rights | GSK Products | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | |||||||||
Developed product technology, formulations, and product rights | All Other | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | [1] | 18 | [2] | ||||||
Customer relationships and distribution networks | Entocort® | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | |||||||||
Customer relationships and distribution networks | Naturwohl | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 25.9 | |||||||||
Customer relationships and distribution networks | ScarAway® | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 9.8 | |||||||||
Customer relationships and distribution networks | GSK Products | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 61.5 | |||||||||
Customer relationships and distribution networks | All Other | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | [1] | 8.2 | [2] | ||||||
Trademarks, trade names, and brands | Entocort® | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | |||||||||
Trademarks, trade names, and brands | Naturwohl | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 64.2 | |||||||||
Trademarks, trade names, and brands | ScarAway® | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 11.4 | |||||||||
Trademarks, trade names, and brands | GSK Products | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 129.5 | |||||||||
Trademarks, trade names, and brands | All Other | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | [1] | 0 | ||||||||
Non-compete agreements | Entocort® | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | |||||||||
Non-compete agreements | Naturwohl | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0.3 | |||||||||
Non-compete agreements | ScarAway® | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0.5 | |||||||||
Non-compete agreements | GSK Products | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | |||||||||
Non-compete agreements | All Other | ||||||||||
Definite-lived intangibles: | ||||||||||
Definite-lived intangibles | 0 | [1] | 0 | [2] | ||||||
In-process research and development | Entocort® | ||||||||||
Indefinite-lived intangibles: | ||||||||||
Indefinite-lived intangibles | $ 0 | |||||||||
In-process research and development | Naturwohl | ||||||||||
Indefinite-lived intangibles: | ||||||||||
Indefinite-lived intangibles | $ 0 | |||||||||
In-process research and development | ScarAway® | ||||||||||
Indefinite-lived intangibles: | ||||||||||
Indefinite-lived intangibles | 0 | |||||||||
In-process research and development | GSK Products | ||||||||||
Indefinite-lived intangibles: | ||||||||||
Indefinite-lived intangibles | $ 0 | |||||||||
In-process research and development | All Other | ||||||||||
Indefinite-lived intangibles: | ||||||||||
Indefinite-lived intangibles | $ 29.2 | [1] | $ 4.9 | [2] | ||||||
[1] | Consists of eight product development acquisitions in our CHCA, CHCI and RX segments. | |||||||||
[2] | Consists of four product acquisitions in our CHCA, CHCI and RX segments. |
Acquisitions and Divestitures56
Acquisitions and Divestitures - Fair value of Consideration Paid (Details) - Omega $ / shares in Units, shares in Millions, $ in Millions | Mar. 30, 2015USD ($)$ / sharesshares |
Business Acquisition, Equity Interests Issued or Issuable [Line Items] | |
Perrigo ordinary shares issued (in shares) | shares | 5.4 |
Perrigo per share price at transaction close (in dollars per share) | $ / shares | $ 167.64 |
Total value of Perrigo ordinary shares issued | $ 904.9 |
Cash consideration | 2,078.3 |
Total consideration | $ 2,983.2 |
Acquisitions and Divestitures57
Acquisitions and Divestitures - Schedule of Acquisition Costs (Details) - Omega $ in Millions | 12 Months Ended |
Jun. 27, 2015USD ($) | |
Schedule of acquisition expenses [Line Items] | |
Acquisition related costs | $ 387 |
Administration | |
Schedule of acquisition expenses [Line Items] | |
Acquisition related costs | 29.7 |
Interest expense, net | |
Schedule of acquisition expenses [Line Items] | |
Acquisition related costs | 23.7 |
Other expense, net | |
Schedule of acquisition expenses [Line Items] | |
Acquisition related costs | 324 |
Loss on extinguishment of debt | |
Schedule of acquisition expenses [Line Items] | |
Acquisition related costs | $ 9.6 |
Acquisitions and Divestitures58
Acquisitions and Divestitures - Measurement Period Adjustments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 27, 2015 | Mar. 30, 2015 |
Measurement period adjustments | |||||
Goodwill | $ 4,175.4 | $ 4,049.4 | $ 5,152.7 | $ 4,721.2 | |
Omega | |||||
Measurement period adjustments | |||||
Accounts receivable | $ 222.9 | ||||
Inventories | 277 | ||||
Property, plant and equipment, net | 130.8 | ||||
Goodwill | 1,688.7 | ||||
Intangible assets: | |||||
Total intangible assets | 3,379 | 3,379 | |||
Accrued liabilities | 49.3 | ||||
Net deferred income tax liabilities | 785.5 | ||||
Other non-current liabilities | 59.9 | ||||
Previously Reported | Omega | |||||
Measurement period adjustments | |||||
Accounts receivable | 227.4 | ||||
Inventories | 288.9 | ||||
Property, plant and equipment, net | 121.2 | ||||
Goodwill | 1,269.6 | ||||
Intangible assets: | |||||
Total intangible assets | 3,806.8 | ||||
Accrued liabilities | 50 | ||||
Net deferred income tax liabilities | 771.1 | ||||
Other non-current liabilities | 88.9 | ||||
Measurement Period Adjustments | Omega | |||||
Measurement period adjustments | |||||
Accounts receivable | (4.5) | ||||
Inventories | (11.9) | ||||
Property, plant and equipment, net | 9.6 | ||||
Goodwill | 419.1 | ||||
Intangible assets: | |||||
Total intangible assets | (427.8) | ||||
Accrued liabilities | (0.7) | ||||
Net deferred income tax liabilities | 14.4 | ||||
Other non-current liabilities | (29) | ||||
Developed product technology, formulations, and product rights | Omega | |||||
Intangible assets: | |||||
Definite-lived intangibles | 31.4 | ||||
Developed product technology, formulations, and product rights | Previously Reported | Omega | |||||
Intangible assets: | |||||
Definite-lived intangibles | 36.9 | ||||
Developed product technology, formulations, and product rights | Measurement Period Adjustments | Omega | |||||
Intangible assets: | |||||
Definite-lived intangibles | (5.5) | ||||
Customer relationships and distribution networks | Omega | |||||
Intangible assets: | |||||
Definite-lived intangibles | 1,056.3 | ||||
Customer relationships and distribution networks | Previously Reported | Omega | |||||
Intangible assets: | |||||
Definite-lived intangibles | 1,342.7 | ||||
Customer relationships and distribution networks | Measurement Period Adjustments | Omega | |||||
Intangible assets: | |||||
Definite-lived intangibles | (286.4) | ||||
Trademarks, trade names, and brands | Omega | |||||
Intangible assets: | |||||
Definite-lived intangibles | 287.5 | ||||
Trademarks, trade names, and brands | Previously Reported | Omega | |||||
Intangible assets: | |||||
Definite-lived intangibles | 282 | ||||
Trademarks, trade names, and brands | Measurement Period Adjustments | Omega | |||||
Intangible assets: | |||||
Definite-lived intangibles | 5.5 | ||||
Trademarks, trade names, and brands | Omega | |||||
Intangible assets: | |||||
Indefinite-lived intangibles | $ 2,003.8 | ||||
Trademarks, trade names, and brands | Previously Reported | Omega | |||||
Intangible assets: | |||||
Indefinite-lived intangibles | $ 2,145.2 | ||||
Trademarks, trade names, and brands | Measurement Period Adjustments | Omega | |||||
Intangible assets: | |||||
Indefinite-lived intangibles | $ (141.4) |
Acquisitions and Divestitures59
Acquisitions and Divestitures - Purchase Price Allocation for Year Ended June 2015 (Details) - USD ($) $ in Millions | May 12, 2015 | Mar. 30, 2015 | Oct. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 27, 2015 |
Assets acquired: | |||||||
Goodwill | $ 4,175.4 | $ 4,049.4 | $ 5,152.7 | $ 4,721.2 | |||
Gelcaps | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase consideration | $ 37.9 | ||||||
Assets acquired: | |||||||
Cash and cash equivalents | 4.6 | ||||||
Accounts receivable | 7.3 | ||||||
Inventories | 7.2 | ||||||
Prepaid expenses and other current assets | 2.1 | ||||||
Property, plant and equipment, net | 6 | ||||||
Goodwill | 6 | ||||||
Indefinite-lived intangibles: | |||||||
Total intangible assets | 11 | ||||||
Other non-current assets | 0.4 | ||||||
Total assets | 44.6 | ||||||
Liabilities assumed: | |||||||
Accounts payable | 3.3 | ||||||
Short-term debt | 0 | ||||||
Accrued liabilities | 1.6 | ||||||
Payroll and related taxes | 0 | ||||||
Accrued customer programs | 0 | ||||||
Long-term debt | 0 | ||||||
Net deferred income tax liabilities | 1.4 | ||||||
Other non-current liabilities | 0.4 | ||||||
Total liabilities | 6.7 | ||||||
Net assets acquired | 37.9 | ||||||
Omega | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase consideration | $ 2,983.2 | ||||||
Assets acquired: | |||||||
Cash and cash equivalents | 14.7 | ||||||
Accounts receivable | 222.9 | ||||||
Inventories | 277 | ||||||
Prepaid expenses and other current assets | 51.2 | ||||||
Property, plant and equipment, net | 130.8 | ||||||
Goodwill | 1,688.7 | ||||||
Indefinite-lived intangibles: | |||||||
Total intangible assets | 3,379 | $ 3,379 | |||||
Other non-current assets | 2.4 | ||||||
Total assets | 5,766.7 | ||||||
Liabilities assumed: | |||||||
Accounts payable | 225 | ||||||
Short-term debt | 112.6 | ||||||
Accrued liabilities | 49.3 | ||||||
Payroll and related taxes | 51.3 | ||||||
Accrued customer programs | 28.9 | ||||||
Long-term debt | 1,471 | ||||||
Net deferred income tax liabilities | 785.5 | ||||||
Other non-current liabilities | 59.9 | ||||||
Total liabilities | 2,783.5 | ||||||
Net assets acquired | 2,983.2 | ||||||
Lumara | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase consideration | $ 83 | ||||||
Assets acquired: | |||||||
Cash and cash equivalents | 0 | ||||||
Accounts receivable | 2.9 | ||||||
Inventories | 1.5 | ||||||
Prepaid expenses and other current assets | 0.4 | ||||||
Property, plant and equipment, net | 0.1 | ||||||
Goodwill | 0 | ||||||
Indefinite-lived intangibles: | |||||||
Total intangible assets | 82 | ||||||
Other non-current assets | 0 | ||||||
Total assets | 86.9 | ||||||
Liabilities assumed: | |||||||
Accounts payable | 0 | ||||||
Short-term debt | 0 | ||||||
Accrued liabilities | 3.9 | ||||||
Payroll and related taxes | 0 | ||||||
Accrued customer programs | 0 | ||||||
Long-term debt | 0 | ||||||
Net deferred income tax liabilities | 0 | ||||||
Other non-current liabilities | 0 | ||||||
Total liabilities | 3.9 | ||||||
Net assets acquired | 83 | ||||||
Developed product technology, formulations, and product rights | Gelcaps | |||||||
Definite-lived intangibles: | |||||||
Definite-lived intangibles | 0 | ||||||
Developed product technology, formulations, and product rights | Omega | |||||||
Definite-lived intangibles: | |||||||
Definite-lived intangibles | 31.4 | ||||||
Developed product technology, formulations, and product rights | Lumara | |||||||
Definite-lived intangibles: | |||||||
Definite-lived intangibles | 82 | ||||||
Customer relationships and distribution networks | Gelcaps | |||||||
Definite-lived intangibles: | |||||||
Definite-lived intangibles | 6.6 | ||||||
Customer relationships and distribution networks | Omega | |||||||
Definite-lived intangibles: | |||||||
Definite-lived intangibles | 1,056.3 | ||||||
Customer relationships and distribution networks | Lumara | |||||||
Definite-lived intangibles: | |||||||
Definite-lived intangibles | 0 | ||||||
Trademarks, trade names, and brands | Gelcaps | |||||||
Definite-lived intangibles: | |||||||
Definite-lived intangibles | 0 | ||||||
Trademarks, trade names, and brands | Omega | |||||||
Definite-lived intangibles: | |||||||
Definite-lived intangibles | 287.5 | ||||||
Trademarks, trade names, and brands | Lumara | |||||||
Definite-lived intangibles: | |||||||
Definite-lived intangibles | 0 | ||||||
Trademarks, trade names, and brands | Gelcaps | |||||||
Indefinite-lived intangibles: | |||||||
Indefinite-lived intangibles | $ 4.4 | ||||||
Trademarks, trade names, and brands | Omega | |||||||
Indefinite-lived intangibles: | |||||||
Indefinite-lived intangibles | $ 2,003.8 | ||||||
Trademarks, trade names, and brands | Lumara | |||||||
Indefinite-lived intangibles: | |||||||
Indefinite-lived intangibles | $ 0 |
Acquisitions and Divestitures60
Acquisitions and Divestitures - Pro Forma (Details) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2017product | Dec. 31, 2016USD ($)product | Jun. 27, 2015USD ($)product | |
Business Combinations [Abstract] | ||||
Business combination, number of products purchased | product | 3 | 2 | 2 | |
Net sales from acquisitions | $ 51 | $ 85.3 | $ 418.2 | |
Operating income from acquisitions | 20.6 | 45.1 | 18.9 | |
Net sales | 2,748.8 | 5,288.6 | 5,682.5 | |
Net income (loss) | $ 81 | $ (4,011) | $ 250.2 |
Acquisitions and Divestitures61
Acquisitions and Divestitures - Divestitures (Details) € in Millions, $ in Millions | Dec. 20, 2017product | Nov. 21, 2017USD ($) | Aug. 25, 2017EUR (€) | Aug. 25, 2017USD ($) | Apr. 06, 2017USD ($) | Feb. 01, 2017USD ($) | Jan. 03, 2017USD ($) | Aug. 05, 2016USD ($) | Sep. 30, 2017USD ($) | Jul. 01, 2017USD ($) | Apr. 01, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 01, 2016USD ($) | Jul. 02, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 27, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||||||||||||
Net proceeds from sale of business and other assets | $ 0 | $ 154.6 | $ 69.1 | $ 0 | ||||||||||||||
Gain (loss) on disposition of business | $ 21.8 | |||||||||||||||||
Guarantor maximum exposure | 34.9 | |||||||||||||||||
Net sales threshold for 1.5 million milestone payment | 25 | |||||||||||||||||
Net sales threshold for 5 million milestone payment | $ 50 | |||||||||||||||||
Unrecorded gain contingency, royalty payment percentage | 2.50% | |||||||||||||||||
Impairment charge | $ 3.3 | $ 4.5 | $ 10.2 | $ 10.5 | ||||||||||||||
First | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Gain contingency, unrecorded amount | $ 1.5 | |||||||||||||||||
Second | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Gain contingency, unrecorded amount | $ 5 | |||||||||||||||||
ANDA | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Net proceeds from sale of business and other assets | $ 15 | |||||||||||||||||
CHCA | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Net proceeds from sale of business and other assets | $ 7.7 | $ 61.8 | ||||||||||||||||
Other | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Net proceeds from sale of business and other assets | $ 22.2 | |||||||||||||||||
Impairment charge | 35.3 | |||||||||||||||||
CHCI | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Net proceeds from sale of business and other assets | € 12.7 | $ 15.1 | ||||||||||||||||
Impairment charge | $ 3.7 | |||||||||||||||||
CHCA | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Impairment charge | $ 6.2 | |||||||||||||||||
Development-Stage Rx Products | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of products sold | product | 1 | |||||||||||||||||
Held for sale | Israel API | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Net proceeds from sale of business and other assets | $ 110 |
Goodwill and Other Intangible62
Goodwill and Other Intangible Assets - Goodwill Roll Forward (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2016 | Oct. 01, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | ||
Goodwill [Roll Forward] | |||||||||
Beginning balance | $ 5,152,700,000 | $ 4,721,200,000 | $ 4,049,400,000 | $ 5,152,700,000 | |||||
Business acquisitions | 97,100,000 | 1,700,000 | |||||||
Changes in assets held-for-sale | (27,600,000) | 13,500,000 | |||||||
Impairments | $ (224,100,000) | $ (737,900) | (130,500,000) | 0 | (1,092,500,000) | ||||
Re-allocation of goodwill | [1] | 0 | |||||||
Business divestitures | (30,500,000) | ||||||||
Currency translation adjustments | (58,100,000) | 156,500,000 | (26,700,000) | ||||||
Purchase accounting adjustments | 420,100,000 | 700,000 | |||||||
Ending balance | 4,049,400,000 | $ 4,049,400,000 | 5,152,700,000 | 4,175,400,000 | 4,049,400,000 | $ 4,721,200,000 | |||
CHCA | |||||||||
Goodwill [Roll Forward] | |||||||||
Beginning balance | 1,814,300,000 | 1,817,200,000 | 1,810,600,000 | 1,814,300,000 | |||||
Business acquisitions | 9,700,000 | 0 | |||||||
Changes in assets held-for-sale | (13,000,000) | 4,500,000 | |||||||
Impairments | (24,500,000) | (6,800,000) | |||||||
Re-allocation of goodwill | [1] | 35,300,000 | |||||||
Business divestitures | 0 | ||||||||
Currency translation adjustments | (800,000) | 1,500,000 | (900,000) | ||||||
Purchase accounting adjustments | 1,200,000 | 17,200,000 | |||||||
Ending balance | 1,810,600,000 | 1,810,600,000 | 1,814,300,000 | 1,847,400,000 | 1,810,600,000 | 1,817,200,000 | |||
CHCI | |||||||||
Goodwill [Roll Forward] | |||||||||
Beginning balance | 1,983,200,000 | 1,530,200,000 | 1,070,800,000 | 1,983,200,000 | |||||
Business acquisitions | 87,400,000 | 0 | |||||||
Changes in assets held-for-sale | 0 | 0 | |||||||
Impairments | (130,500,000) | (868,400,000) | |||||||
Re-allocation of goodwill | [1] | 0 | |||||||
Business divestitures | (4,100,000) | ||||||||
Currency translation adjustments | (53,300,000) | 139,000,000 | (27,500,000) | ||||||
Purchase accounting adjustments | 418,900,000 | (16,500,000) | |||||||
Ending balance | 1,070,800,000 | 1,070,800,000 | 1,983,200,000 | 1,205,700,000 | 1,070,800,000 | 1,530,200,000 | |||
RX | |||||||||
Goodwill [Roll Forward] | |||||||||
Beginning balance | 1,084,100,000 | 1,086,000,000 | 1,086,600,000 | 1,084,100,000 | |||||
Business acquisitions | 0 | 1,700,000 | |||||||
Changes in assets held-for-sale | 0 | 0 | |||||||
Impairments | 0 | ||||||||
Re-allocation of goodwill | [1] | 27,700,000 | |||||||
Business divestitures | 0 | ||||||||
Currency translation adjustments | (1,900,000) | 8,000,000 | 800,000 | ||||||
Purchase accounting adjustments | 0 | 0 | |||||||
Ending balance | 1,086,600,000 | 1,086,600,000 | 1,084,100,000 | 1,122,300,000 | 1,086,600,000 | 1,086,000,000 | |||
Specialty Sciences | |||||||||
Goodwill [Roll Forward] | |||||||||
Beginning balance | 199,600,000 | 199,600,000 | 0 | 199,600,000 | |||||
Business acquisitions | 0 | 0 | |||||||
Changes in assets held-for-sale | 0 | 0 | |||||||
Impairments | (199,600,000) | (199,600,000) | |||||||
Re-allocation of goodwill | [1] | 0 | |||||||
Business divestitures | 0 | ||||||||
Currency translation adjustments | 0 | 0 | 0 | ||||||
Purchase accounting adjustments | 0 | 0 | |||||||
Ending balance | 0 | 0 | 199,600,000 | 0 | 0 | 199,600,000 | |||
Other | |||||||||
Goodwill [Roll Forward] | |||||||||
Beginning balance | $ 71,500,000 | 88,200,000 | 81,400,000 | 71,500,000 | |||||
Business acquisitions | 0 | 0 | |||||||
Changes in assets held-for-sale | (14,600,000) | 9,000,000 | |||||||
Impairments | 0 | ||||||||
Re-allocation of goodwill | [1] | (63,000,000) | |||||||
Business divestitures | (26,400,000) | ||||||||
Currency translation adjustments | (2,100,000) | 8,000,000 | 900,000 | ||||||
Purchase accounting adjustments | 0 | 0 | |||||||
Ending balance | $ 81,400,000 | $ 81,400,000 | $ 71,500,000 | $ 0 | $ 81,400,000 | $ 88,200,000 | |||
[1] | Certain cash flow associated with the API business were retained. We performed a relative fair value allocation of the business retained and allocated it among the two segments where the business was allocated. |
Goodwill and Other Intangible63
Goodwill and Other Intangible Assets - Goodwill Impairment Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2016 | Oct. 01, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | Oct. 01, 2017 | |
Goodwill [Line Items] | |||||||||
Goodwill impairment charge | $ 224,100,000 | $ 737,900 | $ 130,500,000 | $ 0 | $ 1,092,500,000 | ||||
CHCI | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill impairment charge | $ 130,500,000 | 868,400,000 | |||||||
CHCI | BCH | |||||||||
Goodwill [Line Items] | |||||||||
Reporting unit, percentage of fair value in excess of carrying amount (less than) | 6.60% | ||||||||
CHCI | BCH | Goodwill | |||||||||
Goodwill [Line Items] | |||||||||
Discount rate increase | 0.50% | ||||||||
Long-term grow rate decrease | 0.50% | ||||||||
CHCI | BCH | Maximum | |||||||||
Goodwill [Line Items] | |||||||||
Reporting unit, percentage of fair value in excess of carrying amount (less than) | 25.00% | ||||||||
CHCI | UK AUS | |||||||||
Goodwill [Line Items] | |||||||||
Reporting unit, percentage of fair value in excess of carrying amount (less than) | 18.30% | ||||||||
CHCI | UK AUS | Maximum | |||||||||
Goodwill [Line Items] | |||||||||
Reporting unit, percentage of fair value in excess of carrying amount (less than) | 25.00% | ||||||||
CHCI | BCH - ROW | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill impairment charge | 675,600,000 | ||||||||
CHCI | BCH - Belgium | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill impairment charge | $ 62,300,000 | ||||||||
CHCA | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill impairment charge | 24,500,000 | $ 6,800,000 | |||||||
CHCA | Animal health | |||||||||
Goodwill [Line Items] | |||||||||
Reporting unit, percentage of fair value in excess of carrying amount (less than) | 23.60% | ||||||||
Percentage of fair value in excess of carrying amount, margin | 8.90% | ||||||||
Goodwill impairment charge | $ 24,500,000 | ||||||||
CHCA | Animal health | Maximum | |||||||||
Goodwill [Line Items] | |||||||||
Reporting unit, percentage of fair value in excess of carrying amount (less than) | 25.00% | ||||||||
Specialty Sciences | |||||||||
Goodwill [Line Items] | |||||||||
Goodwill impairment charge | $ 199,600,000 | $ 199,600,000 |
Goodwill and Other Intangible64
Goodwill and Other Intangible Assets - Schedule of Goodwill and Fair Value by Reporting Unit (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Oct. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 27, 2015 |
Goodwill [Line Items] | |||||
Goodwill | $ 4,175.4 | $ 4,049.4 | $ 5,152.7 | $ 4,721.2 | |
CHCI | |||||
Goodwill [Line Items] | |||||
Goodwill | 1,205.7 | 1,070.8 | 1,983.2 | 1,530.2 | |
CHCI | BCH | |||||
Goodwill [Line Items] | |||||
Goodwill | 1,026 | ||||
Reporting unit, percentage of fair value in excess of carrying amount (less than) | 6.60% | ||||
CHCI | UK AUS | |||||
Goodwill [Line Items] | |||||
Goodwill | 53.1 | ||||
Reporting unit, percentage of fair value in excess of carrying amount (less than) | 18.30% | ||||
CHCA | |||||
Goodwill [Line Items] | |||||
Goodwill | 1,847.4 | $ 1,810.6 | $ 1,814.3 | $ 1,817.2 | |
CHCA | Animal health | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 178.9 | ||||
Reporting unit, percentage of fair value in excess of carrying amount (less than) | 23.60% |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Finite And Indefinite Lived Assets By Major Class [Line Items] | |||
Definite lived assets, gross | $ 4,661.7 | $ 4,417.2 | $ 3,705.3 |
Accumulated Amortization | 1,371.2 | 1,020.4 | 732.2 |
Indefinite-lived intangible assets, gross | 90.3 | 114.5 | 1,916.3 |
Total other intangible assets | 4,752 | 4,531.7 | 5,621.6 |
Trademarks, trade names, and brands | |||
Finite And Indefinite Lived Assets By Major Class [Line Items] | |||
Indefinite-lived intangible assets, gross | 52.1 | 50.5 | 1,868.1 |
In-process research and development | |||
Finite And Indefinite Lived Assets By Major Class [Line Items] | |||
Indefinite-lived intangible assets, gross | 38.2 | 64 | 48.2 |
Distribution and license agreements, supply agreements | |||
Finite And Indefinite Lived Assets By Major Class [Line Items] | |||
Definite lived assets, gross | 311.2 | 305.6 | 242.4 |
Accumulated Amortization | 169.8 | 120.4 | 77.7 |
Developed product technology, formulations, and product rights | |||
Finite And Indefinite Lived Assets By Major Class [Line Items] | |||
Definite lived assets, gross | 1,358.4 | 1,418.1 | 1,387.6 |
Accumulated Amortization | 598.7 | 526 | 426 |
Customer relationships and distribution networks | |||
Finite And Indefinite Lived Assets By Major Class [Line Items] | |||
Definite lived assets, gross | 1,642 | 1,489.9 | 1,520.7 |
Accumulated Amortization | 460.6 | 307.5 | 193 |
Trademarks, trade names, and brands | |||
Finite And Indefinite Lived Assets By Major Class [Line Items] | |||
Definite lived assets, gross | 1,335.4 | 1,189.3 | 539.4 |
Accumulated Amortization | 129.5 | 55.3 | 22.8 |
Non-compete agreements | |||
Finite And Indefinite Lived Assets By Major Class [Line Items] | |||
Definite lived assets, gross | 14.7 | 14.3 | 15.2 |
Accumulated Amortization | $ 12.6 | $ 11.2 | $ 12.7 |
Goodwill and Other Intangible66
Goodwill and Other Intangible Assets - Intangible Assets Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||
Impairment of intangible assets, definite-lived intangible | $ 19.7 | $ 665.6 | ||||
Impairment of intangible assets, indefinite-lived | $ 12.2 | $ 185.1 | 12.7 | 849.5 | ||
CHCA | ||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||
Impairment of intangible assets, definite-lived intangible | 0 | |||||
Impairment of intangible assets, indefinite-lived | 0 | 0 | ||||
CHCI | ||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||
Impairment of intangible assets, definite-lived intangible | 0 | 321.4 | ||||
Impairment of intangible assets, indefinite-lived | $ 30.5 | 185.1 | 1.1 | |||
RX | ||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||
Impairment of intangible assets, definite-lived intangible | $ 18.5 | 19.7 | 342.2 | |||
Impairment of intangible assets, indefinite-lived | 0 | 11.6 | ||||
Other | ||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||
Impairment of intangible assets, definite-lived intangible | 0 | 2 | ||||
Impairment of intangible assets, indefinite-lived | $ 0 | 0 | ||||
In-process research and development | ||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived | $ 12.7 | 3.5 | ||||
In-process research and development | CHCA | ||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived | 0 | |||||
In-process research and development | CHCI | ||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived | 3.5 | |||||
In-process research and development | RX | ||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived | 0 | |||||
In-process research and development | Other | ||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived | 0 | |||||
Trademarks, trade names, and brands | ||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived | 849.5 | |||||
Trademarks, trade names, and brands | CHCA | ||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived | 0.4 | |||||
Trademarks, trade names, and brands | CHCI | ||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived | 849.1 | |||||
Trademarks, trade names, and brands | RX | ||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived | 0 | |||||
Trademarks, trade names, and brands | Other | ||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||
Impairment of intangible assets, indefinite-lived | $ 0 |
Goodwill and Other Intangible67
Goodwill and Other Intangible Assets - Intangible Assets Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | Oct. 01, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Dec. 31, 2015 | Oct. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | Sep. 30, 2016 | Apr. 03, 2016 | |
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||
Impairment of intangible assets | $ 18.5 | $ 378.6 | $ 866.6 | $ 273.3 | $ 185.1 | $ 0 | ||||||||
Impairment of intangible assets, definite-lived intangible | $ 19.7 | $ 665.6 | ||||||||||||
Impairment of intangible assets, indefinite-lived | $ 12.2 | $ 185.1 | 12.7 | 849.5 | ||||||||||
Amortization of intangible assets | 128.6 | 349.6 | 356.8 | $ 174.5 | ||||||||||
Indefinite-lived intangible assets | $ 674.4 | |||||||||||||
Finite lived assets, useful life | 20 years | |||||||||||||
RX | ||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||
Impairment of intangible assets, definite-lived intangible | $ 18.5 | 19.7 | 342.2 | |||||||||||
Impairment of intangible assets, indefinite-lived | 0 | 11.6 | ||||||||||||
CHCI | ||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||
Impairment of intangible assets, definite-lived intangible | 0 | 321.4 | ||||||||||||
Impairment of intangible assets, indefinite-lived | $ 30.5 | $ 185.1 | 1.1 | |||||||||||
Omega | CHCI | ||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||
Impairment of intangible assets, definite-lived intangible | 290.9 | |||||||||||||
Impairment of intangible assets, indefinite-lived | $ 575.7 | $ 273.4 | ||||||||||||
Entocort® | RX | ||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||
Impairment of intangible assets, definite-lived intangible | 342.2 | |||||||||||||
In-process research and development | ||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||
Impairment of intangible assets, indefinite-lived | $ 12.7 | 3.5 | ||||||||||||
In-process research and development | RX | ||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||
Impairment of intangible assets, indefinite-lived | 0 | |||||||||||||
In-process research and development | CHCI | ||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||
Impairment of intangible assets, indefinite-lived | $ 3.5 | |||||||||||||
Nonrecurring | ||||||||||||||
Schedule of Definite and Indefinite Intangible Asset [Line Items] | ||||||||||||||
Indefinite-lived intangible assets | $ 364.5 |
Goodwill and Other Intangible68
Goodwill and Other Intangible Assets - Intangible Asset Remaining Weighted-Average Useful Life (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Distribution and license agreements, supply agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining Weighted-Average Useful Life (Years) | 7 years |
Developed product technology, formulations, and product rights | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining Weighted-Average Useful Life (Years) | 12 years |
Customer relationships and distribution networks | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining Weighted-Average Useful Life (Years) | 17 years |
Trademarks, trade names, and brands | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining Weighted-Average Useful Life (Years) | 20 years |
Non-compete agreements | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining Weighted-Average Useful Life (Years) | 2 years |
Goodwill and Other Intangible69
Goodwill and Other Intangible Assets - Future Amortization Expense (Details) $ in Millions | Dec. 31, 2017USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2,018 | $ 341 |
2,019 | 316.4 |
2,020 | 280.8 |
2,021 | 251.8 |
2,022 | 222 |
Thereafter | $ 1,878.5 |
Accounts Receivable Factoring (
Accounts Receivable Factoring (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts Receivable Factoring [Abstract] | |||
Accounts receivable factored and excluded from balance sheet | $ 27.5 | $ 50.7 | $ 64.5 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 454.3 | $ 431.1 | $ 537.2 |
Work in process | 152.8 | 165.7 | 151.6 |
Raw materials | 199.8 | 198.2 | 209.9 |
Total inventories | $ 806.9 | $ 795 | $ 898.7 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 02, 2016 | Sep. 30, 2016 | Apr. 03, 2016 | Mar. 01, 2016 | Dec. 31, 2015 | ||||
Assets: | |||||||||||
Royalty Pharma contingent milestone payments | $ 30 | ||||||||||
Financial assets | $ 0 | $ 2,350 | $ 5,310 | ||||||||
Indefinite-lived intangible assets | $ 674.4 | ||||||||||
Liabilities: | |||||||||||
Indefinite-lived intangible assets, gross | 90.3 | 114.5 | 1,916.3 | ||||||||
Definite lived assets, gross | 4,661.7 | 4,417.2 | 3,705.3 | ||||||||
Recurring | Level 1 | |||||||||||
Assets: | |||||||||||
Investment securities | 17 | 38.2 | 14.9 | ||||||||
Recurring | Level 2 | |||||||||||
Assets: | |||||||||||
Foreign currency forward contracts | 6.3 | 3.8 | 4.8 | ||||||||
Funds associated with Israeli severance liability | 16.3 | 15.9 | 17.2 | ||||||||
Total assets | 22.6 | 19.7 | 22 | ||||||||
Liabilities: | |||||||||||
Interest rate swap agreements | 0 | 0 | 0.3 | ||||||||
Foreign currency forward contracts | 3.8 | 5 | 3.9 | ||||||||
Total liabilities | 3.8 | 5 | 4.2 | ||||||||
Recurring | Level 3 | |||||||||||
Assets: | |||||||||||
Royalty Pharma contingent milestone payments | 134.5 | 0 | 0 | ||||||||
Financial assets | 0 | 2,350 | 5,310 | ||||||||
Total assets | 134.5 | 2,350 | 5,310 | ||||||||
Liabilities: | |||||||||||
Contingent consideration | 22 | 69.9 | 17.9 | ||||||||
Nonrecurring | |||||||||||
Assets: | |||||||||||
Indefinite-lived intangible assets | $ 364.5 | ||||||||||
Liabilities: | |||||||||||
Intangible assets, gross | 1,200 | ||||||||||
Definite lived assets, gross | 31.2 | 2,300 | |||||||||
Nonrecurring | Level 3 | |||||||||||
Assets: | |||||||||||
Goodwill | [1] | 0 | 1,148.4 | 0 | |||||||
Indefinite-lived intangible assets | 0 | [2] | 0.3 | [2] | $ 674.2 | 1,031.8 | [2] | ||||
Definite-lived intangible assets | [3] | 11.5 | 758 | 0 | |||||||
Assets held for sale, net | 0 | 18.2 | 37.5 | ||||||||
Total assets | $ 11.5 | 1,924.9 | $ 1,069.3 | ||||||||
Liabilities: | |||||||||||
Goodwill, gross | 2,200 | ||||||||||
Indefinite-lived intangible assets, gross | $ 0.7 | ||||||||||
[1] | As of December 31, 2016, goodwill with a carrying amount of $2.2 billion was written down to its implied fair value of $1.1 billion. | ||||||||||
[2] | As of December 31, 2016, indefinite-lived intangible assets with a carrying amount of $0.7 million were written down to a fair value of $0.3 million. As of December 31, 2015, indefinite-lived intangible assets with a carrying amount of $1.2 billion were written down to a fair value of $1.0 billion. | ||||||||||
[3] | As of December 31, 2017, definite-lived intangible assets with a carrying amount of $31.2 million were written down to a fair value of $11.5 million. As of December 31, 2016, definite-lived intangible assets with a carrying amount of $2.3 billion were written down to a fair value of $758.0 million. Included in this balance are indefinite-lived intangible assets with a fair value of $364.5 million and $674.2 million that were reclassified to definite-lived assets at April 3, 2016 and October 2, 2016, respectively. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | Mar. 27, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | [3] | Jul. 01, 2017USD ($) | [4] | Apr. 01, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Oct. 01, 2016USD ($) | Jul. 02, 2016USD ($) | [8] | Apr. 02, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 26, 2015USD ($) | [11] | Apr. 30, 2014 | Dec. 31, 2015USD ($) | Dec. 27, 2014USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)reporting_unit | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 27, 2015USD ($) | Dec. 31, 2017USD ($) | Mar. 01, 2016USD ($) | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Percent of royalty revenues generated by specific agreement | 12.00% | |||||||||||||||||||||||||||||||||
Net sales | [1] | $ 2,632,200,000 | $ 4,946,200,000 | $ 5,280,600,000 | $ 4,227,100,000 | |||||||||||||||||||||||||||||
Royalty stream discrete period | 20 | |||||||||||||||||||||||||||||||||
Discount rate | 7.72% | 7.83% | ||||||||||||||||||||||||||||||||
Discrete growth rate | 2.00% | 3.40% | ||||||||||||||||||||||||||||||||
Change in financial assets, gain (loss) | $ (700,000) | [2] | $ (2,600,000) | $ (38,700,000) | $ 17,100,000 | [5] | $ (1,100,000,000) | $ (1,115,600,000) | [6] | $ (377,400,000) | [7] | $ (910,800,000) | $ (204,400,000) | [9] | $ (116,600,000) | [10] | $ 173,800,000 | 57,300,000 | $ 46,900,000 | $ (24,900,000) | (2,608,200,000) | $ 78,500,000 | ||||||||||||
Discount rate on fair value asset, percent | 0.50% | 0.50% | ||||||||||||||||||||||||||||||||
Fair value, assets, sensitivity analysis, effect of 0.5 percent increase in discount rate, decrease in fair value | 270,000,000 | 270,000,000 | $ 270,000,000 | $ 290,000,000 | ||||||||||||||||||||||||||||||
Fair value, assets, sensitivity analysis, effect of 0.5 percent decrease in discount rate, increase in fair value | 260,000,000 | 260,000,000 | $ 260,000,000 | $ 260,000,000 | ||||||||||||||||||||||||||||||
Discount Rate, royalty evaluation, percent | 5.00% | 5.00% | ||||||||||||||||||||||||||||||||
Sensitivity analysis, effect of 5.0 percent increase in royalty rate, increase in fair value | 270,000,000 | 270,000,000 | $ 270,000,000 | $ 280,000,000 | ||||||||||||||||||||||||||||||
Sensitivity analysis, effect of 5.0 percent decrease in royalty rate, decrease in fair value | 280,000,000 | 280,000,000 | 280,000,000 | 280,000,000 | ||||||||||||||||||||||||||||||
Net proceeds from sale of business and other assets | 0 | 154,600,000 | 69,100,000 | 0 | ||||||||||||||||||||||||||||||
Gain (loss) on disposition of business | 21,800,000 | |||||||||||||||||||||||||||||||||
Royalty Pharma contingent milestone payments | $ 30,000,000 | |||||||||||||||||||||||||||||||||
Guarantor maximum exposure | 34,900,000 | 34,900,000 | $ 34,900,000 | |||||||||||||||||||||||||||||||
Gain (loss) on settlement of contingent consideration | $ 17,400,000 | |||||||||||||||||||||||||||||||||
Number of reporting units | reporting_unit | 6 | |||||||||||||||||||||||||||||||||
Goodwill impairment charge | 224,100,000 | $ 737,900 | 130,500,000 | 0 | 1,092,500,000 | |||||||||||||||||||||||||||||
Impairment of intangible assets, indefinite-lived | 12,200,000 | 185,100,000 | $ 12,700,000 | 849,500,000 | ||||||||||||||||||||||||||||||
Goodwill | 4,175,400,000 | 4,049,400,000 | 4,049,400,000 | 5,152,700,000 | 5,152,700,000 | 4,175,400,000 | 4,049,400,000 | 5,152,700,000 | 4,721,200,000 | 4,175,400,000 | ||||||||||||||||||||||||
Indefinite-lived intangible assets, gross | 90,300,000 | 114,500,000 | 114,500,000 | 1,916,300,000 | 1,916,300,000 | 90,300,000 | 114,500,000 | 1,916,300,000 | 90,300,000 | |||||||||||||||||||||||||
Impairment of intangible assets, definite-lived intangible | 19,700,000 | 665,600,000 | ||||||||||||||||||||||||||||||||
Recurring | Level 3 | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Royalty Pharma contingent milestone payments | 134,500,000 | 0 | 0 | 0 | 0 | 134,500,000 | 0 | 0 | 134,500,000 | |||||||||||||||||||||||||
Change in fair value | 42,000,000 | |||||||||||||||||||||||||||||||||
Guarantee on certain obligations | 13,800,000 | 13,800,000 | 13,800,000 | |||||||||||||||||||||||||||||||
Specialty Sciences | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Gain (loss) on disposition of business | $ 17,100,000 | |||||||||||||||||||||||||||||||||
Goodwill impairment charge | 199,600,000 | 199,600,000 | ||||||||||||||||||||||||||||||||
Goodwill | 0 | 0 | 0 | 199,600,000 | 199,600,000 | 0 | 0 | 199,600,000 | 199,600,000 | 0 | ||||||||||||||||||||||||
CHCI | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Net sales | 833,000,000 | 1,491,000,000 | 1,652,200,000 | 704,600,000 | ||||||||||||||||||||||||||||||
Goodwill impairment charge | $ 130,500,000 | 868,400,000 | ||||||||||||||||||||||||||||||||
Impairment of intangible assets, indefinite-lived | 30,500,000 | 185,100,000 | 1,100,000 | |||||||||||||||||||||||||||||||
Goodwill | $ 1,205,700,000 | $ 1,070,800,000 | $ 1,070,800,000 | $ 1,983,200,000 | 1,983,200,000 | 1,205,700,000 | 1,070,800,000 | $ 1,983,200,000 | $ 1,530,200,000 | 1,205,700,000 | ||||||||||||||||||||||||
Impairment of intangible assets, definite-lived intangible | $ 0 | $ 321,400,000 | ||||||||||||||||||||||||||||||||
Royalty Pharma | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Sale price of divestiture - cash plus non-cash | $ 2,850,000,000 | |||||||||||||||||||||||||||||||||
Net proceeds from sale of business and other assets | 2,200,000,000 | |||||||||||||||||||||||||||||||||
Contingent proceeds from divestiture of business, milestone one, maximum | 250,000,000 | |||||||||||||||||||||||||||||||||
Contingent proceeds from divestiture of business, milestone two, maximum | $ 400,000,000 | |||||||||||||||||||||||||||||||||
Expected volatility rate | 30.00% | |||||||||||||||||||||||||||||||||
Rate of return | 8.07% | |||||||||||||||||||||||||||||||||
Royalty Pharma Contingent Milestone Payments [Member] | Recurring | Level 3 | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Royalty Pharma contingent milestone payments | $ 134,500,000 | $ 134,500,000 | $ 134,500,000 | |||||||||||||||||||||||||||||||
Goodwill | Minimum | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Discount rate | 7.50% | |||||||||||||||||||||||||||||||||
Long-term growth rates | 2.00% | |||||||||||||||||||||||||||||||||
Goodwill | Maximum | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Discount rate | 13.50% | |||||||||||||||||||||||||||||||||
Long-term growth rates | 3.00% | |||||||||||||||||||||||||||||||||
Tysabri | Minimum | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Percent of royalty revenues generated by specific agreement | 18.00% | |||||||||||||||||||||||||||||||||
Net sales | $ 2,000,000,000 | |||||||||||||||||||||||||||||||||
Tysabri | Maximum | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Percent of royalty revenues generated by specific agreement | 25.00% | |||||||||||||||||||||||||||||||||
Net sales | $ 2,000,000,000 | |||||||||||||||||||||||||||||||||
Lumara | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Discount rate | 13.50% | |||||||||||||||||||||||||||||||||
Discrete growth rate | (4.10%) | |||||||||||||||||||||||||||||||||
Omega - Lifestyle | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Discount rate | 9.30% | |||||||||||||||||||||||||||||||||
Discrete growth rate | 2.50% | |||||||||||||||||||||||||||||||||
Long-term growth rates | 2.00% | |||||||||||||||||||||||||||||||||
Omega-XLS | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Discount rate | 9.50% | |||||||||||||||||||||||||||||||||
Discrete growth rate | 3.20% | |||||||||||||||||||||||||||||||||
Entocort - Branded Products | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Discount rate | 13.00% | |||||||||||||||||||||||||||||||||
Discrete growth rate | (31.70%) | |||||||||||||||||||||||||||||||||
Long-term growth rates | (10.00%) | |||||||||||||||||||||||||||||||||
Entocort - AG Products | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Discount rate | 10.50% | |||||||||||||||||||||||||||||||||
Discrete growth rate | (30.40%) | |||||||||||||||||||||||||||||||||
Long-term growth rates | (4.70%) | |||||||||||||||||||||||||||||||||
Herron Trade Names and Trademarks | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Discount rate | 10.80% | |||||||||||||||||||||||||||||||||
Discrete growth rate | 4.60% | |||||||||||||||||||||||||||||||||
Long-term growth rates | 2.50% | |||||||||||||||||||||||||||||||||
Forecast | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Change in financial assets, gain (loss) | $ 345,200,000 | $ 170,300,000 | ||||||||||||||||||||||||||||||||
Royalty Pharma contingent milestone payments | 54,800,000 | 79,700,000 | ||||||||||||||||||||||||||||||||
Assets, Fair Value Adjustment | 400,000,000 | 250,000,000 | ||||||||||||||||||||||||||||||||
Net sales threshold for milestone payment | $ 2,000,000,000 | $ 1,900,000,000 | ||||||||||||||||||||||||||||||||
Contingent consideration | Recurring | Level 3 | ||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||
Provision for new credit guarantees | $ 0 | $ 12,500,000 | $ 0 | |||||||||||||||||||||||||||||||
[1] | The net sales by geography is derived from the location of the entity that sells to a third party. | |||||||||||||||||||||||||||||||||
[2] | (5) Includes unusual litigation charge reversal of $0.2 million.Year Ended December 31, 2016FirstQuarter (2) SecondQuarter (3) ThirdQuarter (4) FourthQuarter (5)Net sales$1,347.3 $1,340.5 $1,261.6 $1,331.2Gross profit$533.1 $546.5 $484.5 $487.7Change in financial assets$204.4 $910.8 $377.4 $1,115.6Net loss$(529.2) $(534.3) $(1,590.2) $(1,359.1)Loss per share(1): Basic$(3.70) $(3.73) $(11.10) $(9.48)Diluted$(3.70) $(3.73) $(11.10) $(9.48)Weighted average shares outstanding Basic143.2 143.2 143.3 143.4Diluted143.2 143.2 143.3 143.4 | |||||||||||||||||||||||||||||||||
[3] | Includes held-for-sale impairment charges of $3.3 million, and fixed asset impairment charges of $4.0 million. | |||||||||||||||||||||||||||||||||
[4] | Includes intangible asset impairment charges of $18.5 million, changes in financial assets of $38.7 million, and loss on early debt extinguishment of $135.2 million. | |||||||||||||||||||||||||||||||||
[5] | Includes IPR&D impairment charges of $12.2 million, gain on certain divestiture of $21.8 million, and restructuring charges of $38.7 million. | |||||||||||||||||||||||||||||||||
[6] | Includes intangible asset impairment charges of $378.6 million, goodwill impairment charge of $224.1 million, and a reduction in held-for-sale impairment charges of $4.5 million. | |||||||||||||||||||||||||||||||||
[7] | Includes intangible asset impairment charges of $866.6 million, goodwill impairment charge of $737.9 thousand, and held-for-sale impairment charges of $10.2 million. | |||||||||||||||||||||||||||||||||
[8] | Includes held-for-sale impairment charges of $10.5 million and change in financial assets of $910.8 million. | |||||||||||||||||||||||||||||||||
[9] | Includes an intangible asset impairment charges of $273.3 million, and a goodwill impairment charge of $130.5 million. | |||||||||||||||||||||||||||||||||
[10] | Includes an intangible asset impairment charge of $185.1 million, Mylan defense-related fees of $71.3 million, an impairment charge on our India API held for sale assets of $29.0 million, restructuring charges of $24.7 million, and an investment impairment charge of $10.7 million. | |||||||||||||||||||||||||||||||||
[11] | Includes Mylan defense-related fees of $15.6 million. |
Fair Value Measurements - Tysab
Fair Value Measurements - Tysabri Financial Asset (Details) - Recurring - Level 3 - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Change in fair value | $ (42) | |||
Tysabri Financial Asset | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 5,420 | 2,350 | $ 5,310 | $ 5,680 |
Royalties earned | (167.3) | 0 | (351.8) | (338.5) |
Change in fair value | 57.3 | 0 | (2,608.2) | 78.5 |
Divestitures | 0 | (2,350) | 0 | 0 |
Ending balance | $ 5,310 | $ 0 | $ 2,350 | $ 5,420 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Recurring Basis (Details) - Recurring - Level 3 - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 69.9 | $ 17.9 | |
Ending balance | $ 17.9 | 22 | 69.9 |
Contingent consideration | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 0 | 69.9 | 17.9 |
Net realized losses | 0 | (19.5) | (2.1) |
Purchases or additions | 17.9 | 0 | 56.7 |
Divestitures | 0 | (12.5) | 0 |
Currency translation adjustments | 0 | 1.5 | 0.1 |
Settlements | 0 | (17.4) | (2.7) |
Ending balance | $ 17.9 | $ 22 | $ 69.9 |
Fair Value Measurements - Royal
Fair Value Measurements - Royalty Pharma Contingent Milestone Payments (Details) - Level 3 - Recurring - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Change in fair value | $ (42) | |||
Accounts Receivable | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 5,420 | 2,350 | $ 5,310 | $ 5,680 |
Royalties earned | (167.3) | 0 | (351.8) | (338.5) |
Change in fair value | 57.3 | 0 | (2,608.2) | 78.5 |
Ending balance | $ 5,310 | 0 | 2,350 | $ 5,420 |
Royalty Pharma Contingent Milestone Payments [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 0 | |||
Additions | 184.5 | |||
Royalties earned | (8) | |||
Ending balance | $ 134.5 | $ 0 |
Fair Value Measurements - Input
Fair Value Measurements - Inputs (Details) | 3 Months Ended | 12 Months Ended | ||||
Oct. 01, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 27, 2015 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Discrete growth rate | 2.00% | 3.40% | ||||
Discount rate | 7.72% | 7.83% | ||||
Lumara | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Discrete growth rate | (4.10%) | |||||
Discount rate | 13.50% | |||||
Omega - Lifestyle | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Discrete growth rate | 2.50% | |||||
Long-term growth rates | 2.00% | |||||
Discount rate | 9.30% | |||||
Omega - XLS | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Discrete growth rate | 3.20% | |||||
Discount rate | 9.50% | |||||
Fair Value Inputs, Royalty Rate | 4.00% | |||||
Entocort® - Branded Products | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Discrete growth rate | (31.70%) | |||||
Long-term growth rates | (10.00%) | |||||
Discount rate | 13.00% | |||||
Entocort® - AG Products | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Discrete growth rate | (30.40%) | |||||
Long-term growth rates | (4.70%) | |||||
Discount rate | 10.50% | |||||
Trademarks, trade names, and brands | ||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||
Discrete growth rate | 4.60% | |||||
Long-term growth rates | 2.50% | |||||
Discount rate | 10.80% | |||||
Fair Value Inputs, Royalty Rate | 11.00% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 27, 2015 | Nov. 08, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Public bonds | $ 2,906 | $ 5,373.1 | $ 4,698.3 | $ 2,300 | |
Public bonds | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Public bonds | 2,700 | 4,600 | $ 3,800 | ||
Retail bonds and private placement note | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying value (excluding premium) | 300 | 800 | 800 | ||
Fair value | 300 | 800 | 900 | ||
Premium | 0 | 0 | 100 | ||
Reported Value Measurement | Public bonds | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Public bonds | $ 2,600 | $ 4,600 | $ 3,900 |
Investments - Available for Sal
Investments - Available for Sale Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net unrealized investment gains (losses): | ||||
Equity securities, at cost less impairments | $ 6.4 | $ 6.4 | $ 15.5 | $ 16.5 |
Gross unrealized gains | 9.3 | 9.3 | 1.5 | 21.7 |
Gross unrealized losses | (0.8) | (0.8) | 0 | 0 |
Estimated fair value of equity securities | 14.9 | 14.9 | 17 | 38.2 |
Other than temporary impairment losses, investments, portion recognized in earnings, net, available-for-sale securities | $ 10.7 | $ 10.7 | 1.8 | |
Available-for-sale securities, gross unrealized gain | $ 1.6 | $ 1 |
Investments - Cost and Equity M
Investments - Cost and Equity Method Investments (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||
Cost-method investments, other than temporary impairment | $ 1 | |||
Net gain (loss) from equity method investment | $ 5.4 | 0.3 | $ (4.1) | $ 11.6 |
Transfer from investments | 15.5 | |||
Unrealized gain (loss) on investments | 8.7 | |||
Equity method investment other than temporary impairment | 22.3 | |||
Other noncurrent assets | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Cost method Investments | 6.9 | 6.3 | 6.9 | |
Equity method investments | $ 45.5 | $ 4.9 | $ 4.6 |
Derivative Instruments and He81
Derivative Instruments and Hedging Activities - Additional Information (Details) | Jun. 15, 2017USD ($) | Dec. 02, 2014USD ($) | Jul. 01, 2017USD ($) | Apr. 02, 2016USD ($) | Dec. 27, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 27, 2015USD ($) | Mar. 30, 2015EUR (€) | Mar. 30, 2015USD ($) | Nov. 14, 2014EUR (€) | Nov. 08, 2013 | Sep. 06, 2013USD ($) |
Derivatives, Fair Value [Line Items] | ||||||||||||||
Repayments of debt | $ 2,611,000,000 | |||||||||||||
Amount of loss recognized in income | $ 5,800,000 | $ 5,900,000 | $ 7,000,000 | |||||||||||
Proceeds from issuance of debt | 1,600,000,000 | $ 1,200,000,000 | ||||||||||||
Loans payable | $ 300,000,000 | $ 1,000,000,000 | ||||||||||||
Derivative, loss on derivative | $ 0 | 0 | $ 0 | 326,400,000 | ||||||||||
Gain (loss) on cash flow hedge ineffectiveness | 1,100,000 | |||||||||||||
Gain (loss) on cash flow hedges to be reclassified during next 12 months | 5,500,000 | |||||||||||||
Other expense, net | ||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||
Derivative, loss on derivative | $ 3,600,000 | |||||||||||||
Foreign currency forward contracts | ||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||
Derivative, notional amount | $ 755,500,000 | $ 592,300,000 | $ 533,500,000 | |||||||||||
Maximum remaining maturity of foreign currency derivatives | 18 months | 18 months | 18 months | |||||||||||
Designated derivatives | Foreign currency forward contracts | ||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||
Amount of loss recognized in income | $ 26,400,000 | $ 1,900,000 | ||||||||||||
Designated derivatives | Interest rate swap agreements | ||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||
Derivative, notional amount | $ 750,000,000 | $ 200,000,000 | 240,000,000 | |||||||||||
Non-designated derivatives | ||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||
Amount of loss recognized in income | $ 8,700,000 | $ (7,300,000) | $ 4,600,000 | 325,200,000 | ||||||||||
Non-designated derivatives | Foreign currency forward contracts | ||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||
Derivative, notional amount | € | € 2,000,000,000 | |||||||||||||
Omega | Designated derivatives | Interest rate swap agreements | ||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||
Derivative, notional amount | $ 20,000,000 | |||||||||||||
Perrigo Co PLC | Non-designated derivatives | Foreign currency forward contracts | ||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||
Amount of loss recognized in income | $ 298,100,000 | |||||||||||||
Omega | Designated derivatives | Interest rate swap agreements | ||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||
Derivative, notional amount | € 135,000,000 | 147,015,000 | ||||||||||||
Credit facility indebtedness | Omega | ||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||
Business combination, current liabilities, long-term debt | € 500,000,000 | $ 544,500,000 | ||||||||||||
4.00% Unsecured Senior Notes due November 15, 2023 | ||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||
Repayments of debt | $ 584,400,000 | 584,400,000 | ||||||||||||
Interest rate, stated percentage | 4.00% | 4.00% | ||||||||||||
5.30% Unsecured Senior Notes due November 15, 2043 | ||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||
Repayments of debt | $ 309,500,000 | $ 309,500,000 | ||||||||||||
Interest rate, stated percentage | 5.30% | 5.30% | ||||||||||||
6.19% Senior Note | Omega | ||||||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||||||
Interest rate, stated percentage | 6.19% | 6.19% | ||||||||||||
Business combination, current liabilities, long-term debt | $ 20,000,000 |
Derivative Instruments and He82
Derivative Instruments and Hedging Activities - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Designated derivatives | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives | $ 1.4 | $ 3 | $ 2.3 |
Foreign currency forward contracts | Designated derivatives | Other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 4.1 | 3.1 | 3.8 |
Foreign currency forward contracts | Designated derivatives | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives | 1.4 | 3 | 2 |
Foreign currency forward contracts | Non-designated derivatives | Other current assets | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 2.2 | 0.7 | 1 |
Foreign currency forward contracts | Non-designated derivatives | Accrued liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives | 2.4 | 2 | 1.9 |
Interest rate swap agreements | Designated derivatives | Other non-current liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives | $ 0 | $ 0 | $ 0.3 |
Derivative Instruments and He83
Derivative Instruments and Hedging Activities - Gains (Losses) Recorded In OCI For the Effective Portion of Our Designated Cash Flow Hedges (Details) - Designated derivatives - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI (Effective Portion) | $ 1.4 | $ 9.4 | $ (6.9) | $ (20.5) |
Treasury locks | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI (Effective Portion) | 0 | 0 | 0 | (2.7) |
Interest rate swap agreements | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI (Effective Portion) | (0.3) | 0 | (9) | (10.1) |
Foreign currency forward contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recorded in OCI (Effective Portion) | $ 1.7 | $ 9.4 | $ 2.1 | $ (7.7) |
Derivative Instruments and He84
Derivative Instruments and Hedging Activities - Amount of Gain (Loss) Reclassified from AOCI into Earnings (Effective Portion) (Details) - Designated derivatives - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | $ (1.1) | $ (5.2) | $ 0.7 | $ (23.2) |
Treasury locks | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | 0 | (0.1) | (0.1) | (0.1) |
Interest rate swap agreements | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | (0.8) | (2.1) | (2.3) | (16.4) |
Interest rate swap agreements | Other expense (Income), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | 0 | (6) | 0 | 0 |
Foreign currency forward contracts | Interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | (0.4) | (2.6) | (1.6) | 0 |
Foreign currency forward contracts | Other expense (Income), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | 1.1 | (1.5) | 0.4 | (4.4) |
Foreign currency forward contracts | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | (1.8) | 1.5 | 1.3 | 1.9 |
Foreign currency forward contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | $ 0.8 | $ 5.6 | $ 3 | $ (4.2) |
Derivative Instruments and He85
Derivative Instruments and Hedging Activities - Amount of Gain/(Loss) Recognized against Earnings (Ineffective Portion) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized against Earnings (Ineffective Portion) | $ 0.1 | $ 1.3 | $ 0.3 | $ (1) |
Treasury locks | Other expense (Income), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized against Earnings (Ineffective Portion) | 0 | 0 | 0 | (0.4) |
Interest rate swap agreements | Other expense (Income), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized against Earnings (Ineffective Portion) | 0 | 0 | (0.1) | (0.7) |
Foreign currency forward contracts | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized against Earnings (Ineffective Portion) | (0.1) | 0.2 | (0.1) | (0.1) |
Foreign currency forward contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized against Earnings (Ineffective Portion) | 0.2 | 0.1 | (0.1) | 0.2 |
Foreign currency forward contracts | Other expense (Income), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain/(Loss) Recognized against Earnings (Ineffective Portion) | $ 0 | $ 1 | $ 0.6 | $ 0 |
Derivative Instruments and He86
Derivative Instruments and Hedging Activities - Non-Designated Derivatives (Details) - USD ($) $ in Millions | Dec. 02, 2014 | Jul. 01, 2017 | Apr. 02, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Amount of Gain/(Loss) Recognized in Income | $ (5.8) | $ (5.9) | $ (7) | ||||
Non-designated derivatives | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Amount of Gain/(Loss) Recognized in Income | $ (8.7) | $ 7.3 | $ (4.6) | $ (325.2) | |||
Foreign currency forward contracts | Other expense (Income), net | Non-designated derivatives | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Amount of Gain/(Loss) Recognized in Income | (8) | 12.6 | (2.4) | (295.4) | |||
Foreign currency forward contracts | Interest expense, net | Non-designated derivatives | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Amount of Gain/(Loss) Recognized in Income | (0.7) | (5.3) | (2.2) | (3.4) | |||
Foreign exchange option | Other expense (Income), net | Non-designated derivatives | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Amount of Gain/(Loss) Recognized in Income | $ 0 | $ 0 | $ 0 | $ (26.4) |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment charge | $ 3.3 | $ 4.5 | $ 10.2 | $ 10.5 | |||
Other | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment charge | $ 35.3 | ||||||
Held for sale | CHCA | |||||||
Assets held for sale | |||||||
Current assets | 0 | 0 | |||||
Goodwill | 0 | 0 | |||||
Property, plant and equipment | 13.5 | 13.5 | |||||
Other assets | 0 | 0 | |||||
Less: impairment reserves | (3.7) | (3.7) | |||||
Total assets held for sale | 9.8 | 9.8 | |||||
Liabilities held for sale | |||||||
Current liabilities | 0.1 | 0.1 | |||||
Other liabilities | 0 | 0 | |||||
Total liabilities held for sale | 0.1 | 0.1 | |||||
Held for sale | Other | |||||||
Assets held for sale | |||||||
Current assets | 5.1 | 5.1 | |||||
Goodwill | 5.5 | 5.5 | |||||
Property, plant and equipment | 33.2 | 33.2 | |||||
Other assets | 3.8 | 3.8 | |||||
Less: impairment reserves | (35.3) | (35.3) | |||||
Total assets held for sale | 12.3 | 12.3 | |||||
Liabilities held for sale | |||||||
Current liabilities | 1.9 | 1.9 | |||||
Other liabilities | 1.9 | 1.9 | |||||
Total liabilities held for sale | $ 3.8 | 3.8 | |||||
Held for sale | API | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment charge | $ 29 | ||||||
Held for sale | API | Other | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment charge | 6.3 | $ 29 | |||||
Held for sale | Animal Health pet treats | CHCA | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairment charge | $ 3.7 |
Indebtedness - Borrowings Outst
Indebtedness - Borrowings Outstanding (Details) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Jun. 15, 2017 | May 08, 2017 | Apr. 01, 2017 | Dec. 02, 2014 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 26, 2016 | Mar. 07, 2016 | Dec. 31, 2015 | Jun. 27, 2015 | Nov. 08, 2013 | Sep. 06, 2013 | |
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit agreements | $ 0 | $ 0 | $ 0 | $ 0 | $ 680,000,000 | ||||||||||||
Term loans | 300,000,000 | $ 1,000,000,000 | |||||||||||||||
Senior notes | 2,906,000,000 | 2,906,000,000 | 2,906,000,000 | 5,373,100,000 | 4,698,300,000 | $ 2,300,000,000 | |||||||||||
Other financing | 11,700,000 | 11,700,000 | 11,700,000 | 3,600,000 | 128,200,000 | ||||||||||||
Unamortized premium (discount), net | 21,400,000 | 21,400,000 | 21,400,000 | 33,000,000 | 73,400,000 | ||||||||||||
Deferred financing fees | (17,900,000) | (17,900,000) | (17,900,000) | (33,100,000) | (36,600,000) | ||||||||||||
Total borrowings outstanding | 3,341,200,000 | 3,341,200,000 | 3,341,200,000 | 5,797,300,000 | 6,032,100,000 | ||||||||||||
Current indebtedness | (70,400,000) | (70,400,000) | (70,400,000) | (572,800,000) | (1,060,500,000) | ||||||||||||
Total long-term debt, less current portion | 3,270,800,000 | 3,270,800,000 | 3,270,800,000 | 5,224,500,000 | $ 4,971,600,000 | 4,971,600,000 | |||||||||||
2015 Revolver | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit agreements | 0 | 0 | 0 | 0 | 380,000,000 | ||||||||||||
2014 Revolver | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Revolving credit agreements | $ 0 | $ 0 | 0 | 0 | 300,000,000 | ||||||||||||
2014 Euro-Denominated Term Loan due December 5, 2019 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | Dec. 31, 2017 | Sep. 30, 2017 | Jul. 1, 2017 | Apr. 1, 2017 | Dec. 31, 2017 | ||||||||||||
Term loans | [1] | $ 420,000,000 | $ 420,000,000 | $ 420,000,000 | 420,700,000 | 488,800,000 | |||||||||||
1.30% Unsecured Senior Notes due November 8, 2016 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate, stated percentage | 1.30% | 1.30% | 1.30% | 1.30% | 1.30% | ||||||||||||
Maturity date | Nov. 8, 2016 | ||||||||||||||||
Senior notes | [2] | $ 0 | $ 0 | $ 0 | 0 | 500,000,000 | |||||||||||
4.500% Unsecured Senior Notes due May 23, 2017 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate, stated percentage | 4.50% | 4.50% | 4.50% | ||||||||||||||
Maturity date | May 23, 2017 | ||||||||||||||||
Senior notes | [1],[3] | $ 0 | $ 0 | $ 0 | 189,300,000 | 195,500,000 | |||||||||||
5.125% Unsecured Senior Notes due December 12, 2017 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate, stated percentage | 5.125% | 5.125% | 5.125% | ||||||||||||||
Maturity date | Dec. 12, 2017 | ||||||||||||||||
Senior notes | [1],[3] | $ 0 | $ 0 | $ 0 | 315,600,000 | 325,800,000 | |||||||||||
2.30% Unsecured Senior notes November 8, 2018 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | May 8, 2017 | ||||||||||||||||
Interest rate, stated percentage | 2.30% | 2.30% | 2.30% | 2.30% | |||||||||||||
Maturity date | Nov. 8, 2018 | ||||||||||||||||
Senior notes | [2] | $ 0 | $ 0 | $ 0 | 600,000,000 | 600,000,000 | |||||||||||
5.000% Unsecured Senior notes due May 23, 2019 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate, stated percentage | 5.00% | 5.00% | 5.00% | ||||||||||||||
Maturity date | May 23, 2019 | ||||||||||||||||
Senior notes | [1],[3] | $ 144,000,000 | $ 144,000,000 | $ 144,000,000 | 126,200,000 | 130,300,000 | |||||||||||
3.500% Unsecured Senior notes due March 15, 2021 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | Jun. 15, 2017 | ||||||||||||||||
Interest rate, stated percentage | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||||||
Maturity date | Mar. 15, 2021 | ||||||||||||||||
Senior notes | [4] | $ 280,400,000 | $ 280,400,000 | $ 280,400,000 | 500,000,000 | 0 | |||||||||||
3.5% Senior note due 2021 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | Jun. 15, 2017 | ||||||||||||||||
Interest rate, stated percentage | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||||||
Maturity date | Jan. 1, 2021 | Dec. 15, 2021 | |||||||||||||||
Senior notes | [5] | $ 309,600,000 | $ 309,600,000 | $ 309,600,000 | 500,000,000 | 500,000,000 | |||||||||||
5.105% Senior note due July 19, 2023 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate, stated percentage | 5.1045% | 5.1045% | 5.1045% | ||||||||||||||
Maturity date | Jul. 19, 2023 | ||||||||||||||||
Senior notes | [1],[3] | $ 162,000,000 | $ 162,000,000 | $ 162,000,000 | 142,000,000 | 146,700,000 | |||||||||||
4.00% Unsecured Senior Notes due November 15, 2023 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | Jun. 15, 2017 | ||||||||||||||||
Interest rate, stated percentage | 4.00% | 4.00% | 4.00% | 4.00% | |||||||||||||
Maturity date | Nov. 15, 2023 | ||||||||||||||||
Senior notes | [2] | $ 215,600,000 | $ 215,600,000 | $ 215,600,000 | 800,000,000 | 800,000,000 | |||||||||||
3.9% senior note due 2024 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate, stated percentage | 3.90% | 3.90% | 3.90% | 3.90% | |||||||||||||
Maturity date | Jan. 1, 2024 | Dec. 15, 2024 | |||||||||||||||
Senior notes | [5] | $ 700,000,000 | $ 700,000,000 | $ 700,000,000 | 700,000,000 | 700,000,000 | |||||||||||
4.375% senior note due March 15, 2026 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate, stated percentage | 4.375% | 4.375% | 4.375% | 4.375% | |||||||||||||
Maturity date | Mar. 15, 2026 | ||||||||||||||||
Senior notes | [4] | $ 700,000,000 | $ 700,000,000 | $ 700,000,000 | 700,000,000 | 0 | |||||||||||
5.30% Unsecured Senior Notes due November 15, 2043 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | Jun. 15, 2017 | ||||||||||||||||
Interest rate, stated percentage | 5.30% | 5.30% | 5.30% | 5.30% | |||||||||||||
Maturity date | Nov. 15, 2043 | ||||||||||||||||
Senior notes | [2] | $ 90,500,000 | $ 90,500,000 | $ 90,500,000 | 400,000,000 | 400,000,000 | |||||||||||
4.9% Senior Loan due 2044 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | Jun. 15, 2017 | ||||||||||||||||
Interest rate, stated percentage | 4.90% | 4.90% | 4.90% | 4.90% | |||||||||||||
Maturity date | Jan. 1, 2044 | Dec. 15, 2044 | |||||||||||||||
Senior notes | [5] | $ 303,900,000 | $ 303,900,000 | $ 303,900,000 | $ 400,000,000 | $ 400,000,000 | |||||||||||
[1] | Debt denominated in euros subject to fluctuations in the euro-to-U.S. dollar exchange rate. | ||||||||||||||||
[2] | Discussed below collectively as the "2013 Notes." | ||||||||||||||||
[3] | Debt assumed from Omega. | ||||||||||||||||
[4] | Discussed below collectively as the "2016 Notes." | ||||||||||||||||
[5] | Discussed below collectively as the "2014 Notes." |
Indebtedness - Additional Infor
Indebtedness - Additional Information (Details) | Dec. 31, 2017USD ($) | Dec. 12, 2017USD ($) | Sep. 30, 2017USD ($) | Jul. 01, 2017USD ($) | Jun. 15, 2017USD ($) | May 23, 2017USD ($) | May 08, 2017USD ($) | Apr. 01, 2017USD ($) | Sep. 26, 2016USD ($) | Mar. 15, 2016USD ($) | Mar. 07, 2016USD ($) | Dec. 09, 2015USD ($) | Apr. 08, 2015EUR (€) | Apr. 08, 2015USD ($) | Mar. 30, 2015EUR (€) | Mar. 30, 2015USD ($) | Dec. 05, 2014USD ($) | Dec. 02, 2014USD ($) | Dec. 31, 2017USD ($) | Jul. 01, 2017USD ($) | Dec. 31, 2015USD ($) | Dec. 27, 2014USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 27, 2015USD ($) | Mar. 30, 2015USD ($) | Dec. 05, 2014EUR (€) | Dec. 05, 2014USD ($) | Nov. 08, 2013USD ($) | Sep. 06, 2013USD ($) | |
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, issuance date | Mar. 7, 2016 | Dec. 9, 2015 | Dec. 5, 2014 | ||||||||||||||||||||||||||||
Repayments of debt | $ 2,611,000,000 | ||||||||||||||||||||||||||||||
Revolving credit agreements | $ 0 | $ 0 | 0 | $ 0 | $ 680,000,000 | ||||||||||||||||||||||||||
Extinguishment of debt | $ 500,000,000 | $ 895,000,000 | |||||||||||||||||||||||||||||
Loans payable | 300,000,000 | $ 1,000,000,000 | |||||||||||||||||||||||||||||
Loss on extinguishment of debt | $ 135,200,000 | $ 900,000 | $ 9,600,000 | 135,200,000 | 1,100,000 | 10,500,000 | |||||||||||||||||||||||||
Senior notes | 2,906,000,000 | 2,906,000,000 | 2,906,000,000 | 5,373,100,000 | 4,698,300,000 | $ 2,300,000,000 | |||||||||||||||||||||||||
Line of credit facility, fair value of amount outstanding | 6,900,000 | 6,900,000 | $ 82,900,000 | 6,900,000 | 0 | ||||||||||||||||||||||||||
2015 Revolver | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 750,000,000 | ||||||||||||||||||||||||||||||
Repayments of debt | $ 750,000,000 | ||||||||||||||||||||||||||||||
Revolving credit agreements | 0 | 0 | 0 | 0 | 380,000,000 | ||||||||||||||||||||||||||
2014 Revolver | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 600,000,000 | ||||||||||||||||||||||||||||||
Repayments of debt | $ 435,000,000 | ||||||||||||||||||||||||||||||
Revolving credit agreements | $ 0 | $ 0 | 0 | 0 | 300,000,000 | ||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | ||||||||||||||||||||||||||||||
2014 Euro-Denominated Term Loan due December 5, 2019 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, date of repayment | Dec. 31, 2017 | Sep. 30, 2017 | Jul. 1, 2017 | Apr. 1, 2017 | Dec. 31, 2017 | ||||||||||||||||||||||||||
Debt instrument, face amount | € 500,000,000 | 614,300,000 | |||||||||||||||||||||||||||||
Repayments of debt | $ 15,000,000 | $ 14,800,000 | $ 14,300,000 | $ 13,300,000 | |||||||||||||||||||||||||||
Loans payable | [1] | $ 420,000,000 | $ 420,000,000 | $ 420,000,000 | 420,700,000 | 488,800,000 | |||||||||||||||||||||||||
Debt instrument, description | 2014 term loan due December 5, 2019 | ||||||||||||||||||||||||||||||
Debt instrument, transaction type | Scheduled quarterly payment | Scheduled quarterly payment | |||||||||||||||||||||||||||||
5.125% Senior note due 2017 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, date of repayment | Dec. 12, 2017 | ||||||||||||||||||||||||||||||
Repayments of debt | $ 352,300,000 | ||||||||||||||||||||||||||||||
Debt instrument, description | €300.0 5.125% senior notes due 2017 | ||||||||||||||||||||||||||||||
Debt instrument, transaction type | Scheduled maturity | ||||||||||||||||||||||||||||||
2014 Euro-Denominated Term Loan due December 5, 2019 additional draw | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, face amount | € 300,000,000 | $ 368,600,000 | |||||||||||||||||||||||||||||
3.500% Unsecured Senior notes due March 15, 2021 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, date of repayment | Jun. 15, 2017 | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||||||||||||||||||||
Repayments of debt | $ 219,600,000 | ||||||||||||||||||||||||||||||
Interest rate, stated percentage | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||||||||||||||||||||
Senior notes | [2] | $ 280,400,000 | $ 280,400,000 | $ 280,400,000 | 500,000,000 | 0 | |||||||||||||||||||||||||
Maturity date | Mar. 15, 2021 | ||||||||||||||||||||||||||||||
Debt instrument, description | $500.0 3.500% senior notes due 2021 | ||||||||||||||||||||||||||||||
Debt instrument, transaction type | Tender offer | ||||||||||||||||||||||||||||||
4.375% senior note due March 15, 2026 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 700,000,000 | ||||||||||||||||||||||||||||||
Interest rate, stated percentage | 4.375% | 4.375% | 4.375% | 4.375% | |||||||||||||||||||||||||||
Senior notes | [2] | $ 700,000,000 | $ 700,000,000 | $ 700,000,000 | 700,000,000 | 0 | |||||||||||||||||||||||||
Maturity date | Mar. 15, 2026 | ||||||||||||||||||||||||||||||
Debt securities | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Senior notes | $ 1,200,000,000 | ||||||||||||||||||||||||||||||
4.5% Retail Bond | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, date of repayment | May 23, 2017 | ||||||||||||||||||||||||||||||
Repayments of debt | $ 201,300,000 | ||||||||||||||||||||||||||||||
Debt instrument, description | €180.0 4.500% retail bonds due 2017 | ||||||||||||||||||||||||||||||
Debt instrument, transaction type | Scheduled maturity | ||||||||||||||||||||||||||||||
3.5% Senior note due 2021 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, date of repayment | Jun. 15, 2017 | ||||||||||||||||||||||||||||||
Debt instrument, issuance date | Dec. 2, 2014 | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||||||||||||||||||||
Repayments of debt | $ 190,400,000 | ||||||||||||||||||||||||||||||
Interest rate, stated percentage | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||||||||||||||||||||
Senior notes | [3] | $ 309,600,000 | $ 309,600,000 | $ 309,600,000 | 500,000,000 | 500,000,000 | |||||||||||||||||||||||||
Maturity date | Jan. 1, 2021 | Dec. 15, 2021 | |||||||||||||||||||||||||||||
Debt instrument, description | $500.0 3.500% senior notes due 2021 | ||||||||||||||||||||||||||||||
Debt instrument, transaction type | Tender offer | ||||||||||||||||||||||||||||||
3.9% senior note due 2024 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 700,000,000 | ||||||||||||||||||||||||||||||
Interest rate, stated percentage | 3.90% | 3.90% | 3.90% | 3.90% | |||||||||||||||||||||||||||
Senior notes | [3] | $ 700,000,000 | $ 700,000,000 | $ 700,000,000 | 700,000,000 | 700,000,000 | |||||||||||||||||||||||||
Maturity date | Jan. 1, 2024 | Dec. 15, 2024 | |||||||||||||||||||||||||||||
4.9% Senior Loan due 2044 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, date of repayment | Jun. 15, 2017 | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||||||||||||||||||||||
Repayments of debt | $ 96,100,000 | ||||||||||||||||||||||||||||||
Interest rate, stated percentage | 4.90% | 4.90% | 4.90% | 4.90% | |||||||||||||||||||||||||||
Senior notes | [3] | $ 303,900,000 | $ 303,900,000 | $ 303,900,000 | 400,000,000 | 400,000,000 | |||||||||||||||||||||||||
Maturity date | Jan. 1, 2044 | Dec. 15, 2044 | |||||||||||||||||||||||||||||
Debt instrument, description | $400.0 4.900% senior notes due 2044 | ||||||||||||||||||||||||||||||
Debt instrument, transaction type | Tender offer | ||||||||||||||||||||||||||||||
2014 bonds [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Senior notes | $ 1,600,000,000 | ||||||||||||||||||||||||||||||
1.30% Unsecured Senior Notes due November 8, 2016 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||||||||||||||||||||
Interest rate, stated percentage | 1.30% | 1.30% | 1.30% | 1.30% | 1.30% | ||||||||||||||||||||||||||
Senior notes | [4] | $ 0 | $ 0 | $ 0 | 0 | 500,000,000 | |||||||||||||||||||||||||
Maturity date | Nov. 8, 2016 | ||||||||||||||||||||||||||||||
2.30% Unsecured Senior notes November 8, 2018 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, date of repayment | May 8, 2017 | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 600,000,000 | ||||||||||||||||||||||||||||||
Repayments of debt | $ 600,000,000 | ||||||||||||||||||||||||||||||
Interest rate, stated percentage | 2.30% | 2.30% | 2.30% | 2.30% | |||||||||||||||||||||||||||
Senior notes | [4] | $ 0 | $ 0 | $ 0 | 600,000,000 | 600,000,000 | |||||||||||||||||||||||||
Maturity date | Nov. 8, 2018 | ||||||||||||||||||||||||||||||
Debt instrument, description | $600.0 2.300% senior notes due 2018 | ||||||||||||||||||||||||||||||
Debt instrument, transaction type | Early redemption | ||||||||||||||||||||||||||||||
4.00% Unsecured Senior Notes due November 15, 2023 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, date of repayment | Jun. 15, 2017 | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 800,000,000 | ||||||||||||||||||||||||||||||
Repayments of debt | $ 584,400,000 | 584,400,000 | |||||||||||||||||||||||||||||
Interest rate, stated percentage | 4.00% | 4.00% | 4.00% | 4.00% | |||||||||||||||||||||||||||
Senior notes | [4] | $ 215,600,000 | $ 215,600,000 | $ 215,600,000 | 800,000,000 | 800,000,000 | |||||||||||||||||||||||||
Maturity date | Nov. 15, 2023 | ||||||||||||||||||||||||||||||
Debt instrument, description | $800.0 4.000% senior notes due 2023 | ||||||||||||||||||||||||||||||
Debt instrument, transaction type | Tender offer | ||||||||||||||||||||||||||||||
5.30% Unsecured Senior Notes due November 15, 2043 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, date of repayment | Jun. 15, 2017 | ||||||||||||||||||||||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||||||||||||||||||||||
Repayments of debt | $ 309,500,000 | $ 309,500,000 | |||||||||||||||||||||||||||||
Interest rate, stated percentage | 5.30% | 5.30% | 5.30% | 5.30% | |||||||||||||||||||||||||||
Senior notes | [4] | $ 90,500,000 | $ 90,500,000 | $ 90,500,000 | $ 400,000,000 | $ 400,000,000 | |||||||||||||||||||||||||
Maturity date | Nov. 15, 2043 | ||||||||||||||||||||||||||||||
Debt instrument, description | $400.0 5.300% senior notes due 2043 | ||||||||||||||||||||||||||||||
Debt instrument, transaction type | Tender offer | ||||||||||||||||||||||||||||||
2013 Term Loan due December 18, 2018 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Loans payable | 700,000,000 | ||||||||||||||||||||||||||||||
2013 Term Loan due December 18, 2015 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Loans payable | $ 300,000,000 | ||||||||||||||||||||||||||||||
Omega | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Extinguishment of debt | € 500,000,000 | $ 539,100,000 | |||||||||||||||||||||||||||||
Long-term debt | 1,471,000,000 | ||||||||||||||||||||||||||||||
Omega | 6.19% Senior Note | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Business combination, current liabilities, long-term debt | $ 20,000,000 | ||||||||||||||||||||||||||||||
Interest rate, stated percentage | 6.19% | 6.19% | |||||||||||||||||||||||||||||
Maturity date | Jan. 1, 2016 | Jan. 1, 2016 | |||||||||||||||||||||||||||||
Omega | 5.1045% Senior Note | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Interest rate, stated percentage | 5.1045% | 5.1045% | |||||||||||||||||||||||||||||
Maturity date | Jan. 1, 2023 | Jan. 1, 2023 | |||||||||||||||||||||||||||||
Long-term debt | € 135,000,000 | $ 147,000,000 | |||||||||||||||||||||||||||||
Omega | 5.125% Retail Bond | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Business combination, current liabilities, long-term debt | € 300,000,000 | $ 326,700,000 | |||||||||||||||||||||||||||||
Interest rate, stated percentage | 5.125% | 5.125% | |||||||||||||||||||||||||||||
Maturity date | Jan. 1, 2017 | Jan. 1, 2017 | |||||||||||||||||||||||||||||
Omega | 4.5% Retail Bond | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Business combination, current liabilities, long-term debt | € 180,000,000 | $ 196,000,000 | |||||||||||||||||||||||||||||
Interest rate, stated percentage | 4.50% | 4.50% | |||||||||||||||||||||||||||||
Maturity date | Jan. 1, 2017 | Jan. 1, 2017 | |||||||||||||||||||||||||||||
Omega | 5.0% Retail Bond [Member] | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Business combination, current liabilities, long-term debt | € 120,000,000 | $ 130,700,000 | |||||||||||||||||||||||||||||
Interest rate, stated percentage | 5.00% | 5.00% | |||||||||||||||||||||||||||||
Maturity date | Jan. 1, 2019 | Jan. 1, 2019 | |||||||||||||||||||||||||||||
Omega | Credit facility indebtedness | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Business combination, current liabilities, long-term debt | € 500,000,000 | $ 544,500,000 | |||||||||||||||||||||||||||||
Omega | Over Draft | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Business combination, current liabilities, long-term debt | 51,400,000 | $ 56,000,000 | |||||||||||||||||||||||||||||
Omega | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Amount debt exceeded par value | € 93,600,000 | $ 101,900,000 | |||||||||||||||||||||||||||||
[1] | Debt denominated in euros subject to fluctuations in the euro-to-U.S. dollar exchange rate. | ||||||||||||||||||||||||||||||
[2] | Discussed below collectively as the "2016 Notes." | ||||||||||||||||||||||||||||||
[3] | Discussed below collectively as the "2014 Notes." | ||||||||||||||||||||||||||||||
[4] | Discussed below collectively as the "2013 Notes." |
Indebtedness - Debt Repayment a
Indebtedness - Debt Repayment and Related Extinguishment (Details) | Dec. 31, 2017USD ($) | Dec. 12, 2017USD ($) | Sep. 30, 2017USD ($) | Jul. 01, 2017USD ($) | Jun. 15, 2017USD ($) | May 23, 2017USD ($) | May 08, 2017USD ($) | Apr. 01, 2017USD ($) | Dec. 31, 2017EUR (€) | Jul. 01, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Mar. 07, 2016USD ($) | Dec. 05, 2014EUR (€) | Dec. 05, 2014USD ($) | Dec. 02, 2014USD ($) | Nov. 08, 2013USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||
Repayments of debt | $ 2,611,000,000 | ||||||||||||||||
2014 Euro-Denominated Term Loan due December 5, 2019 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | Dec. 31, 2017 | Sep. 30, 2017 | Jul. 1, 2017 | Apr. 1, 2017 | Dec. 31, 2017 | ||||||||||||
Debt instrument, face amount | € 500,000,000 | $ 614,300,000 | |||||||||||||||
Debt instrument, description | 2014 term loan due December 5, 2019 | ||||||||||||||||
Debt instrument, transaction type | Scheduled quarterly payment | Scheduled quarterly payment | |||||||||||||||
Repayments of debt | $ 15,000,000 | $ 14,800,000 | $ 14,300,000 | $ 13,300,000 | |||||||||||||
2.30% Unsecured Senior notes November 8, 2018 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | May 8, 2017 | ||||||||||||||||
Debt instrument, face amount | $ 600,000,000 | ||||||||||||||||
Interest rate, stated percentage | 2.30% | 2.30% | 2.30% | ||||||||||||||
Debt instrument, description | $600.0 2.300% senior notes due 2018 | ||||||||||||||||
Debt instrument, transaction type | Early redemption | ||||||||||||||||
Repayments of debt | $ 600,000,000 | ||||||||||||||||
4.5% Retail Bond | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | May 23, 2017 | ||||||||||||||||
Debt instrument, description | €180.0 4.500% retail bonds due 2017 | ||||||||||||||||
Debt instrument, transaction type | Scheduled maturity | ||||||||||||||||
Repayments of debt | $ 201,300,000 | ||||||||||||||||
3.5% Senior note due 2021 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | Jun. 15, 2017 | ||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||||||
Interest rate, stated percentage | 3.50% | 3.50% | 3.50% | ||||||||||||||
Debt instrument, description | $500.0 3.500% senior notes due 2021 | ||||||||||||||||
Debt instrument, transaction type | Tender offer | ||||||||||||||||
Repayments of debt | $ 190,400,000 | ||||||||||||||||
3.500% Unsecured Senior notes due March 15, 2021 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | Jun. 15, 2017 | ||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||||||
Interest rate, stated percentage | 3.50% | 3.50% | 3.50% | ||||||||||||||
Debt instrument, description | $500.0 3.500% senior notes due 2021 | ||||||||||||||||
Debt instrument, transaction type | Tender offer | ||||||||||||||||
Repayments of debt | $ 219,600,000 | ||||||||||||||||
4.00% Unsecured Senior Notes due November 15, 2023 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | Jun. 15, 2017 | ||||||||||||||||
Debt instrument, face amount | $ 800,000,000 | ||||||||||||||||
Interest rate, stated percentage | 4.00% | 4.00% | 4.00% | ||||||||||||||
Debt instrument, description | $800.0 4.000% senior notes due 2023 | ||||||||||||||||
Debt instrument, transaction type | Tender offer | ||||||||||||||||
Repayments of debt | $ 584,400,000 | $ 584,400,000 | |||||||||||||||
5.30% Unsecured Senior Notes due November 15, 2043 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | Jun. 15, 2017 | ||||||||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||||||||
Interest rate, stated percentage | 5.30% | 5.30% | 5.30% | ||||||||||||||
Debt instrument, description | $400.0 5.300% senior notes due 2043 | ||||||||||||||||
Debt instrument, transaction type | Tender offer | ||||||||||||||||
Repayments of debt | $ 309,500,000 | $ 309,500,000 | |||||||||||||||
4.9% Senior Loan due 2044 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | Jun. 15, 2017 | ||||||||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||||||||
Interest rate, stated percentage | 4.90% | 4.90% | 4.90% | ||||||||||||||
Debt instrument, description | $400.0 4.900% senior notes due 2044 | ||||||||||||||||
Debt instrument, transaction type | Tender offer | ||||||||||||||||
Repayments of debt | $ 96,100,000 | ||||||||||||||||
5.125% Senior note due 2017 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, date of repayment | Dec. 12, 2017 | ||||||||||||||||
Debt instrument, description | €300.0 5.125% senior notes due 2017 | ||||||||||||||||
Debt instrument, transaction type | Scheduled maturity | ||||||||||||||||
Repayments of debt | $ 352,300,000 | ||||||||||||||||
Senior Notes [Member] | Senior Notes due 2018 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 600,000,000 | ||||||||||||||||
Interest rate, stated percentage | 2.30% | 2.30% | |||||||||||||||
Senior Notes [Member] | Senior Note 1 due 2021 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||||||
Interest rate, stated percentage | 3.50% | 3.50% | |||||||||||||||
Senior Notes [Member] | Senior Note 2 due 2021 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 500,000,000 | ||||||||||||||||
Interest rate, stated percentage | 3.50% | 3.50% | |||||||||||||||
Senior Notes [Member] | Senior Notes due 2023 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 800,000,000 | ||||||||||||||||
Interest rate, stated percentage | 4.00% | 4.00% | |||||||||||||||
Senior Notes [Member] | Senior Notes due 2043 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||||||||
Interest rate, stated percentage | 5.30% | 5.30% | |||||||||||||||
Senior Notes [Member] | Senior Notes due 2044 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||||||||
Interest rate, stated percentage | 4.90% | 4.90% | |||||||||||||||
Senior Notes [Member] | Senior Notes due 2017 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | € | € 300,000,000 | ||||||||||||||||
Interest rate, stated percentage | 5.125% | 5.125% | |||||||||||||||
Bonds [Member] | Retail Bonds due 2017 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument, face amount | € | € 180,000,000 | ||||||||||||||||
Interest rate, stated percentage | 4.50% | 4.50% |
Indebtedness - Debt Extinguishm
Indebtedness - Debt Extinguishment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 01, 2017 | Dec. 31, 2015 | Dec. 27, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Gains (Losses) on Extinguishment of Debt [Abstract] | ||||||
Premium on debt repayment | $ 116.1 | |||||
Transaction costs | 3.8 | |||||
Write-off of deferred financing fees | 10.6 | |||||
Write-off of unamortized discount | 4.7 | |||||
Total loss on extinguishment of debt | $ 135.2 | $ 0.9 | $ 9.6 | $ 135.2 | $ 1.1 | $ 10.5 |
Indebtedness - Future Maturitie
Indebtedness - Future Maturities (Details) $ in Millions | Dec. 31, 2017USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,018 | $ 70.4 |
2,019 | 504.7 |
2,020 | 0.7 |
2,021 | 590 |
2,022 | 0 |
Thereafter | $ 2,171.9 |
Earnings (Loss) Per Share And93
Earnings (Loss) Per Share And Shareholder's Equity - Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | [2] | Jul. 01, 2017 | [3] | Apr. 01, 2017 | [4] | Dec. 31, 2016 | [5] | Oct. 01, 2016 | [6] | Jul. 02, 2016 | [7] | Apr. 02, 2016 | [8] | Dec. 31, 2015 | [9] | Sep. 26, 2015 | [10] | Dec. 31, 2015 | Dec. 27, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | ||
Numerator: | ||||||||||||||||||||||||||
Net income (loss) | $ 73.1 | $ 44.5 | $ (69.6) | $ 71.6 | $ (1,359.1) | $ (1,590.2) | $ (534.3) | $ (529.2) | $ (218.4) | $ 260.9 | $ 42.5 | $ 180.6 | $ 119.6 | $ (4,012.8) | $ 136.1 | |||||||||||
Denominator: | ||||||||||||||||||||||||||
Basic (in shares) | 140.8 | [11] | 141.3 | [11] | 143.3 | [11] | 143.4 | [11] | 143.4 | [11] | 143.3 | [11] | 143.2 | [11] | 143.2 | [11] | 144.9 | [11] | 146.3 | [11] | 145.6 | 135.1 | 142.3 | 143.3 | 139.3 | |
Dilutive effect of share-based awards | [12] | 0.5 | 0.3 | 0 | 0.5 | |||||||||||||||||||||
Diluted (in shares) | 141.2 | [11] | 141.7 | [11] | 143.3 | [11] | 143.6 | [11] | 143.4 | [11] | 143.3 | [11] | 143.2 | [11] | 143.2 | [11] | 144.9 | [11] | 146.9 | [11] | 146.1 | 135.6 | 142.6 | 143.3 | 139.8 | |
Antidilutive share-based awards oustanding | 0.1 | 0.8 | 0 | 0.1 | ||||||||||||||||||||||
[1] | (5) Includes unusual litigation charge reversal of $0.2 million.Year Ended December 31, 2016FirstQuarter (2) SecondQuarter (3) ThirdQuarter (4) FourthQuarter (5)Net sales$1,347.3 $1,340.5 $1,261.6 $1,331.2Gross profit$533.1 $546.5 $484.5 $487.7Change in financial assets$204.4 $910.8 $377.4 $1,115.6Net loss$(529.2) $(534.3) $(1,590.2) $(1,359.1)Loss per share(1): Basic$(3.70) $(3.73) $(11.10) $(9.48)Diluted$(3.70) $(3.73) $(11.10) $(9.48)Weighted average shares outstanding Basic143.2 143.2 143.3 143.4Diluted143.2 143.2 143.3 143.4 | |||||||||||||||||||||||||
[2] | Includes held-for-sale impairment charges of $3.3 million, and fixed asset impairment charges of $4.0 million. | |||||||||||||||||||||||||
[3] | Includes intangible asset impairment charges of $18.5 million, changes in financial assets of $38.7 million, and loss on early debt extinguishment of $135.2 million. | |||||||||||||||||||||||||
[4] | Includes IPR&D impairment charges of $12.2 million, gain on certain divestiture of $21.8 million, and restructuring charges of $38.7 million. | |||||||||||||||||||||||||
[5] | Includes intangible asset impairment charges of $378.6 million, goodwill impairment charge of $224.1 million, and a reduction in held-for-sale impairment charges of $4.5 million. | |||||||||||||||||||||||||
[6] | Includes intangible asset impairment charges of $866.6 million, goodwill impairment charge of $737.9 thousand, and held-for-sale impairment charges of $10.2 million. | |||||||||||||||||||||||||
[7] | Includes held-for-sale impairment charges of $10.5 million and change in financial assets of $910.8 million. | |||||||||||||||||||||||||
[8] | Includes an intangible asset impairment charges of $273.3 million, and a goodwill impairment charge of $130.5 million. | |||||||||||||||||||||||||
[9] | Includes an intangible asset impairment charge of $185.1 million, Mylan defense-related fees of $71.3 million, an impairment charge on our India API held for sale assets of $29.0 million, restructuring charges of $24.7 million, and an investment impairment charge of $10.7 million. | |||||||||||||||||||||||||
[10] | Includes Mylan defense-related fees of $15.6 million. | |||||||||||||||||||||||||
[11] | The sum of individual per share amounts may not equal due to rounding. | |||||||||||||||||||||||||
[12] | In the period of a net loss, diluted shares equal basic shares. |
Earnings (Loss) Per Share And94
Earnings (Loss) Per Share And Shareholder's Equity - Schedule of Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 27, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Earnings Per Share [Abstract] | |||||
Dividends paid (in millions) | $ 36.3 | $ 91.1 | $ 83.2 | $ 64.8 | |
Dividends paid (per share) | $ 0.25 | $ 0.21 | $ 0.64 | $ 0.58 | $ 0.4600 |
Earnings (Loss) Per Share And95
Earnings (Loss) Per Share And Shareholder's Equity (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 22, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 2,000,000,000 | |||
Repurchases of ordinary shares, shares | 0 | |||
Repurchases of ordinary shares | $ 500,000,000 | $ 191,500,000 | ||
Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchases of ordinary shares, shares | 3,300,000 | 2,700,000 | ||
Average repurchase price (in USD per share) | $ 151.59 | $ 71.72 | ||
Repurchases of ordinary shares | $ 500,000,000 | $ 191,500,000 |
Share-Based Compensation Plan96
Share-Based Compensation Plans - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available to be granted | 3.8 | |||
Unrecognized share-based compensation expense | $ 51.2 | |||
Unrecognized share-based compensation expense, period of recognition | 2 years | |||
Options granted, weighted average grant date fair value (in dollars per share) | $ 19.50 | $ 33.53 | $ 39.96 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested, total fair value | $ 0.9 | |||
Service-based Restricted Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested, total fair value | $ 11.7 | $ 14.5 | $ 12.6 | 9.1 |
Nonvested shares outstanding (in shares) | $ 154.07 | $ 107.26 | $ 137.53 | |
Performance-based Restricted Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested, total fair value | $ 6.4 | $ 3.8 | $ 10.4 | $ 5.1 |
Nonvested shares outstanding (in shares) | $ 146.31 | $ 93.65 | $ 138.29 | |
RTSR | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Nonvested shares outstanding (in shares) | $ 64.82 | $ 0 | ||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
Maximum | RTSR | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 10 years |
Share-Based Compensation Plan97
Share-Based Compensation Plans - Share-based Compensation Expense (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-based compensation | $ 22.8 | $ 43.8 | $ 23 | $ 31.6 |
Share-Based Compensation Plan98
Share-Based Compensation Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Number of Options | ||||
Options outstanding, number of options (in shares) | 749 | 783 | ||
Granted (in shares) | 439 | 344 | ||
Exercised (in shares) | (31) | (122) | ||
Forfeited or expired (in shares) | (85) | (256) | ||
Options outstanding, number of options (in shares) | 783 | 1,072 | 749 | |
Options exercisable (in shares) | 519 | |||
Options expected to vest (in shares) | 533 | |||
Weighted-Average Exercise Price Per Share | ||||
Beginning options outstanding, weighted average exercise price (in dollars per share) | $ 108.40 | $ 99.93 | ||
Granted (in dollars per share) | 70.34 | 126.67 | ||
Exercised (in dollars per share) | 24.75 | 67.68 | ||
Forfeited or expired (in dollars per share) | 118.47 | 126.54 | ||
Ending options outstanding, weighted average exercise price (in dollars per share) | $ 99.93 | 94.90 | $ 108.40 | |
Options exercisable (in dollars per share) | 107.14 | |||
Options expected to vest (in dollars per share) | $ 83.63 | |||
Weighted- Average Remaining Term in Years | 6 years 10 months 24 days | 6 years 7 months 6 days | ||
Weighted- Average Remaining Term in Years, Options exercisable | 5 years | |||
Weighted- Average Remaining Term in Years, Options expected to vest | 8 years 8 months 12 days | |||
Aggregate Intrinsic Value | $ 10.9 | $ 5.5 | ||
Aggregate Intrinsic Value, Options exercisable | 3.8 | |||
Aggregate Intrinsic Value, Options expected to vest | 6.8 | |||
Options exercised, aggregate intrinsic value | $ 6.7 | $ 1.7 | $ 5.2 | $ 20.7 |
Share-Based Compensation Plan99
Share-Based Compensation Plans - Options Fair Value Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Share-based Compensation [Abstract] | |||
Dividend yield | 0.90% | 0.50% | 0.30% |
Volatility, as a percent | 30.00% | 27.60% | 27.10% |
Risk-free interest rate | 1.80% | 1.30% | 1.70% |
Expected life in years | 5 years 4 months 28 days | 5 years 5 months 27 days | 5 years 3 months 18 days |
Share-Based Compensation Pla100
Share-Based Compensation Plans - Restricted Stock Unit Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Number of Non-vested Service- Based Share Units | ||||
Beginning balance (in shares) | 0 | 0 | 0 | |
Granted (in shares) | 0 | 0 | 0 | 0 |
Vested (in shares) | 0 | 0 | 0 | 0 |
Ending balance (in shares) | 0 | 0 | 0 | 0 |
Service-based Restricted Share Units | ||||
Number of Non-vested Service- Based Share Units | ||||
Beginning balance (in shares) | 468,000 | 382,000 | ||
Granted (in shares) | 298,000 | 298,000 | ||
Vested (in shares) | (112,000) | (92,000) | ||
Forfeited (in shares) | (55,000) | (120,000) | ||
Ending balance (in shares) | 382,000 | 599,000 | 468,000 | |
Weighted- Average Grant Date Fair Value Per Share | ||||
Beginning balance (in dollars per share) | $ 137.53 | $ 154.07 | ||
Granted (in dollars per share) | $ 165.64 | 70.55 | 113.26 | $ 153.99 |
Vested (in dollars per share) | 128.86 | 137.15 | ||
Forfeited (in dollars per share) | 120.97 | 151.64 | ||
Ending balance (in dollars per share) | $ 154.07 | $ 107.26 | $ 137.53 | |
Weighted- Average Remaining Term in Years | 1 year 6 months | 1 year 8 months 16 days | ||
Aggregate Intrinsic Value | $ 52.2 | $ 39 | ||
Performance-based Restricted Share Units | ||||
Number of Non-vested Service- Based Share Units | ||||
Beginning balance (in shares) | 177,000 | 223,000 | ||
Granted (in shares) | 191,000 | 159,000 | ||
Vested (in shares) | (27,000) | (81,000) | ||
Forfeited (in shares) | (38,000) | (124,000) | ||
Ending balance (in shares) | 223,000 | 303,000 | 177,000 | |
Weighted- Average Grant Date Fair Value Per Share | ||||
Beginning balance (in dollars per share) | $ 138.29 | $ 146.31 | ||
Granted (in dollars per share) | $ 184.49 | 70.34 | 126.37 | $ 150.14 |
Vested (in dollars per share) | 142.18 | 128.74 | ||
Forfeited (in dollars per share) | 130.34 | 143.64 | ||
Ending balance (in dollars per share) | $ 146.31 | $ 93.65 | $ 138.29 | |
Weighted- Average Remaining Term in Years | 2 years | 1 year 8 months 5 days | ||
Aggregate Intrinsic Value | $ 26.5 | $ 14.8 |
Share-Based Compensation Pla101
Share-Based Compensation Plans - RTSR fair value assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.90% | 0.50% | 0.30% |
Volatility, as a percent | 30.00% | 27.60% | 27.10% |
Risk-free interest rate | 1.80% | 1.30% | 1.70% |
Expected life in years | 5 years 4 months 28 days | 5 years 5 months 27 days | 5 years 3 months 18 days |
RTSR | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.90% | ||
Volatility, as a percent | 36.10% | ||
Risk-free interest rate | 1.40% | ||
Expected life in years | 2 years 6 months 26 days |
Share-Based Compensation Pla102
Share-Based Compensation Plans - Relative Total Shareholder Return Performance Unit Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Beginning balance (in shares) | 0 | 0 | 0 | ||
Granted (in shares) | 0 | 0 | 0 | 0 | |
Ending balance (in shares) | 0 | 0 | 0 | 0 | |
RTSR | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Beginning balance (in shares) | 0 | ||||
Granted (in shares) | 39,000 | ||||
Ending balance (in shares) | 39,000 | 0 | |||
Nonvested shares outstanding (in shares) | $ 64.82 | $ 0 | |||
Granted, weighted average grant date fair value (in dollars per share) | $ 64.82 | ||||
Weighted- Average Remaining Term in Years | [1] | 2 years | |||
Aggregate Intrinsic Value | $ 3.4 | ||||
[1] | Midpoint used in calculation. |
Accumulated Other Comprehens103
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance | $ 10,699.3 | $ 5,958.1 | $ 10,107.4 | $ 8,720.4 |
OCI before reclassifications | (129.1) | 338.1 | (64.5) | |
Amounts reclassified from AOCI | 10.3 | (3.2) | (2) | |
Other comprehensive income (loss), net of tax | (118.8) | 334.9 | (66.5) | (36.1) |
Balance | 10,107.4 | 6,170.5 | 5,958.1 | 10,699.3 |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance | 103.5 | (81.8) | (15.3) | 139.6 |
Other comprehensive income (loss), net of tax | (118.8) | 334.9 | (66.5) | (36.1) |
Balance | (15.3) | 253.1 | (81.8) | 103.5 |
Fair value of derivative financial instruments, net of tax | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance | (16.3) | (19.5) | (14.2) | |
OCI before reclassifications | 1.1 | 7.1 | (5.4) | |
Amounts reclassified from AOCI | 1 | 2.6 | 0.1 | |
Other comprehensive income (loss), net of tax | 2.1 | 9.7 | (5.3) | |
Balance | (14.2) | (9.8) | (19.5) | (16.3) |
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance | 130.9 | (67.9) | (4.6) | |
OCI before reclassifications | (135.5) | 328.5 | (63.3) | |
Amounts reclassified from AOCI | 0 | 0 | 0 | |
Other comprehensive income (loss), net of tax | (135.5) | 328.5 | (63.3) | |
Balance | (4.6) | 260.6 | (67.9) | 130.9 |
Fair value of investment securities, net of tax | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance | (2.9) | 15.1 | 6.4 | |
OCI before reclassifications | (1.4) | (12.5) | 7.4 | |
Amounts reclassified from AOCI | 10.7 | (1.6) | 1.3 | |
Other comprehensive income (loss), net of tax | 9.3 | (14.1) | 8.7 | |
Balance | 6.4 | 1 | 15.1 | (2.9) |
Post-retirement and pension liability adjustments, net of tax | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Balance | (8.2) | (9.5) | (2.9) | |
OCI before reclassifications | 6.7 | 15 | (3.2) | |
Amounts reclassified from AOCI | (1.4) | (4.2) | (3.4) | |
Other comprehensive income (loss), net of tax | 5.3 | 10.8 | (6.6) | |
Balance | $ (2.9) | $ 1.3 | $ (9.5) | $ (8.2) |
Income Taxes - Pre-tax Income a
Income Taxes - Pre-tax Income and the Provision for Income Taxes (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 27, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Pre-tax income: | |||||
Ireland | $ 8.9 | $ 210 | $ 280.1 | $ (4,848.3) | $ 260.3 |
Other | 319.1 | 734.1 | (1,224.2) | 1,053.1 | |
Total pre-tax income (loss) | 8.9 | 280.1 | (4,848.3) | 260.3 | |
Current: | |||||
Ireland | 1.6 | (8.1) | 0.3 | (2.2) | |
Subtotal | 116.5 | 138.4 | 120.7 | 149.2 | |
Deferred (credit): | |||||
Ireland | (23.1) | 13.1 | (549.4) | 11.1 | |
Subtotal | (150.1) | 22.1 | (956.2) | (25) | |
Total (benefit) provision for income taxes | (33.6) | $ 29.4 | 160.5 | (835.5) | 124.2 |
United States | |||||
Current: | |||||
United States - federal | 58.9 | 96.4 | 93 | 77.2 | |
United States - state | 3 | 4 | 0.7 | 6.8 | |
Deferred (credit): | |||||
United States - federal | (34.4) | 6.8 | (7.6) | (19.9) | |
United States - state | (3.3) | 1 | (5.1) | (0.8) | |
Other Income Tax Authority | |||||
Current: | |||||
Other foreign | 53 | 46.1 | 26.7 | 67.4 | |
Deferred (credit): | |||||
Other foreign | (89.3) | 1.2 | (394.1) | (15.4) | |
Ireland | |||||
Pre-tax income: | |||||
Ireland | $ (310.2) | $ (454) | $ (3,624.1) | $ (792.8) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Provision at statutory rate | 12.50% | 12.50% | 12.50% | 12.50% |
Ireland tax on non-trading differences | (207.40%) | (47.70%) | (0.40%) | (9.90%) |
Expenses not deductible for tax purposes/deductions not expensed for book, net | 394.00% | 63.40% | (0.70%) | 14.70% |
Goodwill impairment not deductible for tax purposes | 0.00% | 0.00% | (2.80%) | 0.00% |
U.S. Operations: | ||||
State income taxes, net of federal benefit | 38.40% | (1.40%) | 0.10% | (1.00%) |
Research and development credit | (13.20%) | (0.60%) | (0.00%) | (0.70%) |
Other | 112.30% | (5.80%) | 0.40% | 4.80% |
Other foreign differences (earnings taxed at other than applicable statutory rate) | (647.20%) | (22.70%) | 3.30% | (16.10%) |
Intangible impairment differences | (397.60%) | (3.00%) | 4.80% | 0.00% |
Worldwide operations: | ||||
Valuation allowance changes | 249.30% | 17.80% | 0.80% | 25.70% |
Change in unrecognized taxes | 82.70% | 25.30% | (0.80%) | 17.70% |
Withholding taxes | 0.00% | 17.30% | 0.00% | 0.00% |
Effective income tax rate | (376.20%) | 57.30% | 17.20% | 47.70% |
United States | ||||
Worldwide operations: | ||||
Rate Change Impacts | 0.00% | 5.40% | 0.00% | 0.00% |
Belgium Taxing Authority | ||||
Worldwide operations: | ||||
Rate Change Impacts | 0.00% | (3.20%) | 0.00% | 0.00% |
Income Taxes - Net Deferred Inc
Income Taxes - Net Deferred Income Tax Asset (Liability) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred income tax asset (liability): | |||
Depreciation and amortization | $ (457.8) | $ (765.2) | $ (1,550.6) |
Inventory basis differences | 21.3 | 27.4 | 22.8 |
Accrued liabilities | 87.9 | 68.5 | 50.8 |
Allowance for doubtful accounts | 1.5 | 1.7 | 1.3 |
Research and development | 58.9 | 61.7 | 63.7 |
Loss and credit carryforwards | 292.5 | 292.4 | 244.2 |
Share-based compensation | 16.2 | 18.1 | 20.6 |
Foreign tax credit | 0 | 10.6 | 10.6 |
Federal benefit of unrecognized tax positions | 17 | 24.3 | 22.8 |
Interest carryforwards | 30.5 | 435.3 | 334.6 |
Other, net | 28.2 | 3 | 14.7 |
Subtotal | 96.2 | 177.8 | (764.5) |
Valuation allowance | (407.7) | (495.6) | (536.8) |
Net deferred income tax asset (liability): | (311.5) | (317.8) | (1,301.3) |
Non-current deferred income taxes | 10.4 | 72.1 | 71.4 |
Non-current deferred income taxes | $ 321.9 | $ 389.9 | $ 1,372.7 |
Income Taxes - Gross Carryforwa
Income Taxes - Gross Carryforwards (Details) $ in Millions | Dec. 31, 2017USD ($) | |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 1,389 | [1] |
Operating loss carryforwards, valuation allowance | 861.6 | |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforwards | 82.6 | [1] |
Tax credit carryforwards, valuation allowance | 82.6 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 248.5 | [1] |
Operating loss carryforwards, valuation allowance | 203.6 | |
Tax credit carryforwards | 71.9 | [1] |
Tax credit carryforwards, valuation allowance | 71.9 | |
Capital Loss Carryforward | Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforwards | 22 | [1] |
Tax credit carryforwards, valuation allowance | 22 | |
Interest Carryforward | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforwards | 478.8 | [1] |
Tax credit carryforwards, valuation allowance | $ 127 | |
[1] | Utilization of such carryforwards within the applicable statutory periods is uncertain. |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 324 | $ 334.5 | $ 288.1 |
Positions related to the current year, increase | 22.9 | 55 | 45.5 |
Positions related to prior years, decrease | (43.5) | ||
Positions related to prior years, increase | 76.6 | 8.6 | |
Settlements with taxing authorities | (15.3) | (11.1) | (2.4) |
Lapse of statutes of limitation | (0.1) | (5.3) | |
Decrease in prior year positions | (35.2) | ||
Unrecognized tax benefits, ending balance | $ 288.1 | $ 419.7 | $ 334.5 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Aug. 15, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
Operating Loss Carryforwards [Line Items] | |||||||||
Undistributed earnings of foreign subsidiaries reinvested indefinitely for which no provision have been provided | $ 6,300 | ||||||||
Unrecognized tax benefits liability, interest and penalties accrued | 82 | $ 63.5 | $ 52.1 | ||||||
Unrecognized tax benefits, including income tax penalties and interest accrued | 501.7 | 398 | 340.3 | ||||||
Unrecognized tax benefits that would impact effective tax rate | 204 | 248.7 | 198.5 | ||||||
Penalties and interest expense | $ 163.6 | $ 24.7 | $ 40.2 | $ 61.5 | $ 37.2 | ||||
Tax cuts and jobs act of 2017, change in tax rate, income tax expense (benefit) | (2.4) | ||||||||
Tax cuts and jobs act, transition tax for accumulated foreign earnings | 17.5 | ||||||||
Tax cuts and jobs act 2017, undistributed accumulated earnings of foreign subsidiary | 1,200 | ||||||||
Non-US Taxing Authority | Expires tax Year 2019 | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax credit carryforwards | 1.8 | ||||||||
Non-US Taxing Authority | Expires tax year 2022 | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax credit carryforwards | 20.3 | ||||||||
Non-US Taxing Authority | Expires tax Year 2024 | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax credit carryforwards | 0.9 | ||||||||
Non-US Taxing Authority | Expires tax year 2025 | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax credit carryforwards | 0.1 | ||||||||
Belgium Taxing Authority | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Income tax expense as a result of Belgium Tax Act | 24.1 | ||||||||
Income tax benefit as a result of Belgium Tax Act | 33.2 | ||||||||
Domestic Tax Authority | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Valuation allowance increase (decrease), amount | (10.3) | ||||||||
Tax credit carryforwards | [1] | 82.6 | |||||||
Foreign Tax Authority | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Valuation allowance increase (decrease), amount | 42.4 | ||||||||
Foreign Tax Authority | United States | Expires tax year 2022 | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax credit carryforwards | 28.2 | ||||||||
Foreign Tax Authority | United States | Expires tax year 2025 | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax credit carryforwards | 37.2 | ||||||||
Foreign Tax Authority | United States | Expires tax year 2027 | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Tax credit carryforwards | 167.8 | ||||||||
Minimum | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Decrease in unrecognized tax benefits is reasonably possible | 1 | ||||||||
Maximum | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Decrease in unrecognized tax benefits is reasonably possible | 17.9 | ||||||||
Omega | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Valuation allowance increase (decrease), amount | $ (55.8) | ||||||||
Europe | |||||||||
Operating Loss Carryforwards [Line Items] | |||||||||
Income tax expense (benefit), adjustment of DTA and DTL | $ (4) | $ (27.9) | |||||||
[1] | Utilization of such carryforwards within the applicable statutory periods is uncertain. |
Post Employment Plans - Additio
Post Employment Plans - Additional Information (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($)years | Dec. 31, 2016USD ($) | Jun. 27, 2015 | Dec. 31, 2013plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Amount to be amortized from accumulated other comprehensive income (loss) next fiscal year | $ 0.7 | ||||
Expected future benefit payments, year one through five | 9.9 | ||||
Estimated future employer contributions in next fiscal year | $ 2.2 | ||||
Other plans without target asset allocations | Insurance contracts | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined benefit plan, target allocation, percentage | 100.00% | ||||
Other Postretirement Benefits Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Expected future benefit payments, year one through five | $ 1 | ||||
Postretirement health coverage | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Retiree eligible age | years | 65 | ||||
Pension plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Expected return on assets, percent | 2.93% | 2.90% | 2.89% | 2.85% | |
Deferred compensation arrangement with individual, by type of compensation, pension and Other Postretirement Benefits | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Cash surrender value of insurance policies | $ 34.6 | $ 34.6 | $ 32.7 | ||
Deferred compensation liability, non-current | $ 34.5 | $ 31.6 | $ 29.3 | ||
Unites States | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer nondiscretionary contribution to plan | 3.00% | ||||
Ireland | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer matching contribution, percent of employees' gross pay | 18.00% | ||||
Elan corporation | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Number of defined benefit plans assumed | plan | 2 |
Post Employment Plans - Contrib
Post Employment Plans - Contributions to the plans (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | ||
Postemployment Benefits [Abstract] | |||||
Defined contribution plans cost | $ 18.9 | $ 25.5 | $ 26.1 | $ 25.9 | [1] |
[1] | Includes Omega activity from March 30, 2015 to June 27, 2015 |
Post Employment Plans - Project
Post Employment Plans - Projected Benefit Obligation (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | ||||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Fair value of plan assets, beginning | $ 138.2 | $ 126.7 | |||||
Fair value of plan assets at end of period | $ 126.7 | 162.5 | 138.2 | ||||
Pension plan | |||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||||
Projected benefit obligation, beginning | 140.3 | 158.9 | 135 | ||||
Acquisitions | 5.6 | 0 | 0 | ||||
Curtailment | 0 | (1) | 0 | ||||
Service costs | 2.2 | 4.5 | 4.1 | $ 0.9 | [1] | ||
Interest cost | 1.7 | 3.3 | 3.6 | 2.4 | [1] | ||
Actuarial (gain) loss | (10.1) | (10.3) | 22.6 | ||||
Contributions paid | 0 | 0.1 | 0.3 | ||||
Benefits paid | (0.6) | (2.5) | (1.7) | ||||
Foreign currency translation | (4.1) | 21 | (5) | ||||
Projected benefit obligation, ending | 135 | 174 | 158.9 | 140.3 | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Fair value of plan assets, beginning | 128.1 | 138.2 | 126.7 | ||||
Purchases, sales and settlements, net | 3.2 | 0 | 0 | ||||
Actual return on plan assets | (1.7) | 5.5 | 9.4 | ||||
Benefits paid | (0.6) | (2.5) | (1.7) | ||||
Employer contributions | 1.4 | 2.2 | 8.2 | ||||
Contributions paid | 0 | 0.1 | 0.3 | ||||
Foreign currency translation | (3.7) | 19 | (4.7) | ||||
Fair value of plan assets at end of period | 126.7 | 162.5 | 138.2 | 128.1 | |||
Funded (unfunded) status | (8.3) | (11.5) | (20.7) | ||||
Presented as: | |||||||
Other non-current assets | 16.5 | 22 | 10.4 | ||||
Other non-current liabilities | (24.8) | (33.5) | (31.1) | ||||
Other Postretirement Benefits Plan | |||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||||
Projected benefit obligation, beginning | 6 | [1] | 5.8 | 7 | [1] | ||
Acquisitions | 0 | [1] | 0 | 0 | |||
Curtailment | 0 | 0 | 0 | ||||
Service costs | 0.3 | [1] | 0.6 | 0.6 | 0.3 | [1] | |
Interest cost | 0.1 | [1] | 0.2 | 0.2 | 0.2 | [1] | |
Actuarial (gain) loss | 0.5 | [1] | (0.3) | (1.9) | |||
Contributions paid | 0 | [1] | 0 | 0 | |||
Benefits paid | (0.1) | [1] | (0.1) | (0.1) | |||
Foreign currency translation | 0.1 | [1] | 0 | 0 | |||
Projected benefit obligation, ending | 7 | [1] | 6.2 | 5.8 | 6 | [1] | |
Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Fair value of plan assets, beginning | 0 | [1] | 0 | 0 | [1] | ||
Purchases, sales and settlements, net | 0 | [1] | 0 | 0 | |||
Actual return on plan assets | 0 | [1] | 0 | 0 | |||
Benefits paid | 0 | [1] | 0 | 0 | |||
Employer contributions | 0 | [1] | 0 | 0 | |||
Contributions paid | 0 | [1] | 0 | 0 | |||
Foreign currency translation | 0 | [1] | 0 | 0 | |||
Fair value of plan assets at end of period | 0 | [1] | 0 | 0 | $ 0 | [1] | |
Funded (unfunded) status | (7) | [1] | (6.2) | (5.8) | |||
Presented as: | |||||||
Other non-current assets | 0 | [1] | 0 | 0 | |||
Other non-current liabilities | $ (7) | [1] | $ 0 | $ (5.8) | |||
[1] | Includes Omega activity from March 30, 2015 to June 27, 2015 |
Post Employment Plans - Accumul
Post Employment Plans - Accumulated benefit obligation (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Postemployment Benefits [Abstract] | |||
Unfunded accumulated projected benefit obligation | $ 167.6 | $ 136.3 | $ 109.4 |
Post Employment Plans - Schedul
Post Employment Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 27, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI pension and other postretirement benefit plans | $ (1.3) | $ 9.5 | $ 2.9 | $ 8.2 | [1] |
Other Postretirement Benefits Plan | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
AOCI pension and other postretirement benefit plans | $ (0.3) | $ 0.7 | $ 0.4 | $ (0.1) | |
[1] | Includes Omega activity from March 30, 2015 to June 27, 2015 |
Post Employment Plans - Sche115
Post Employment Plans - Schedule of Defined Benefit Plan Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 27, 2015 | |
Postemployment Benefits [Abstract] | |||||
AOCI pension and other postretirement benefit plans | $ 1.3 | $ (9.5) | $ (2.9) | $ (8.2) | [1] |
[1] | Includes Omega activity from March 30, 2015 to June 27, 2015 |
Post Employment Plans - Expecte
Post Employment Plans - Expected Future Minimum Benefit Payment (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 1.4 |
2,019 | 1.5 |
2,020 | 2.3 |
2,021 | 2.1 |
2,022 | 2.6 |
Thereafter | 20.1 |
Other Postretirement Benefits Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 0.1 |
2,019 | 0.2 |
2,020 | 0.2 |
2,021 | 0.2 |
2,022 | 0.3 |
Thereafter | $ 1.9 |
Post Employment Plans - Net per
Post Employment Plans - Net periodic pension cost (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | [1] | ||
Pension plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Service costs | $ 2.2 | $ 4.5 | $ 4.1 | $ 0.9 | ||
Interest cost | 1.7 | 3.3 | 3.6 | 2.4 | ||
Expected return on assets | (1.8) | (4.3) | (3.9) | (2.7) | ||
Curtailment | 0 | (0.7) | 0 | 0 | ||
Net actuarial loss | 0.4 | 0.8 | 0.5 | 1 | ||
Net periodic pension cost | 2.5 | 3.6 | 4.3 | 1.6 | ||
Other Postretirement Benefits Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Service costs | 0.3 | [1] | 0.6 | 0.6 | 0.3 | |
Interest cost | 0.1 | [1] | 0.2 | 0.2 | 0.2 | |
Expected return on assets | 0 | 0 | 0 | 0 | ||
Curtailment | 0 | 0 | 0 | 0 | ||
Net actuarial loss | 0 | (0.1) | 0 | 0.1 | ||
Net periodic pension cost | $ 0.4 | $ 0.7 | $ 0.8 | $ 0.6 | ||
[1] | Includes Omega activity from March 30, 2015 to June 27, 2015 |
Post Employment Plans - Weighte
Post Employment Plans - Weighted Average Assumptions (Details) | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | ||
Pension plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Discount rate | 2.22% | 1.91% | 1.76% | 2.11% | |
Inflation | 2.25% | 1.45% | 1.43% | 1.93% | |
Expected return on assets | 2.93% | 2.90% | 2.89% | 2.85% | |
Other Postretirement Benefits Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Discount rate | 4.25% | 3.59% | 4.00% | 4.25% | [1] |
[1] | Includes Omega activity from March 30, 2015 to June 27, 2015 |
Post Employment Plans - Expe119
Post Employment Plans - Expected Long-term Rate of Return (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Equities | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected return on assets, percent | 6.00% |
Bonds | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected return on assets, percent | 1.90% |
Absolute return fund | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected return on assets, percent | 4.00% |
Insurance contracts | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected return on assets, percent | 2.80% |
Other | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected return on assets, percent | 2.50% |
Post Employment Plans - Target
Post Employment Plans - Target Asset Allocation Ranges (Details) | Dec. 31, 2017 |
Minimum | Equities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation, percentage | 10.00% |
Minimum | Bonds | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation, percentage | 20.00% |
Minimum | Absolute return fund | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation, percentage | 50.00% |
Maximum | Equities | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation, percentage | 20.00% |
Maximum | Bonds | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation, percentage | 30.00% |
Maximum | Absolute return fund | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan, target allocation, percentage | 60.00% |
Post Employment Plans - Fair Va
Post Employment Plans - Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 27, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | $ 162.5 | $ 138.2 | $ 126.7 | |
Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 1.9 | 1.7 | ||
Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 109.8 | 93.1 | 91.5 | |
Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 50.8 | 43.4 | 35.2 | $ 34.3 |
Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 19.2 | 13.7 | 14.5 | |
Equities | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 0.1 | 0.1 | ||
Equities | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 19.1 | 13.6 | 14.5 | |
Equities | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 0 | 0 | 0 | |
Bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 32 | 24.4 | 38.1 | |
Bonds | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 1.8 | 1.6 | ||
Bonds | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 30.2 | 22.8 | 38.1 | |
Bonds | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 0 | 0 | 0 | |
Property | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 0.3 | |||
Property | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 0 | |||
Property | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 0.3 | |||
Insurance contracts | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 50.8 | 43.4 | 34.9 | |
Insurance contracts | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 0 | 0 | ||
Insurance contracts | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 0 | 0 | 0 | |
Insurance contracts | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 50.8 | 43.4 | 34.9 | |
Absolute return fund | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 54.5 | 51.5 | 33.7 | |
Absolute return fund | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 0 | 0 | ||
Absolute return fund | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 54.5 | 51.5 | 33.7 | |
Absolute return fund | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 0 | 0 | 0 | |
Other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 6 | 5.2 | 5.2 | |
Other | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 0 | 0 | ||
Other | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | 6 | 5.2 | 5.2 | |
Other | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of pension plan assets | $ 0 | $ 0 | $ 0 |
Post Employment Plans - Changes
Post Employment Plans - Changes in Fair Value of Level 3 Pension Plan Assets (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning | $ 138.2 | $ 126.7 | |
Fair value of plan assets at end of period | $ 126.7 | 162.5 | 138.2 |
Level 3 | |||
Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning | 34.3 | 43.4 | 35.2 |
Actual return on plan assets | 0.1 | 1 | 6.7 |
Purchases, sales and settlements, net | 2.1 | 0.9 | (4.2) |
Net transfers | 0 | 0 | 7.6 |
Foreign currency translation | (1.3) | 5.5 | (1.9) |
Fair value of plan assets at end of period | $ 35.2 | $ 50.8 | $ 43.4 |
Commitments and Contingencie123
Commitments and Contingencies - Additional Details (Details) ₪ in Millions, $ in Millions | Feb. 13, 2018productcasedefendant | Jul. 12, 2017case | Jun. 28, 2017USD ($)productdefendant | Jun. 28, 2017ILS (₪)productdefendant | Mar. 29, 2017USD ($)product | Mar. 29, 2017ILS (₪)product | May 22, 2016defendant | Nov. 30, 2011application | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($)case | Dec. 31, 2016USD ($)case | Jun. 27, 2015USD ($) | Feb. 16, 2018productindividualcase | Jan. 26, 2018productplaintiffcasecomplaint | Jan. 16, 2018productindividual | Dec. 31, 2017USD ($) | Dec. 31, 2017$ / ₪ | Dec. 31, 2017manufacturer | Dec. 31, 2017supermarket | Dec. 31, 2017case | Dec. 31, 2017dozens | Nov. 14, 2017hearing | Nov. 01, 2017individual | Jun. 21, 2017productsubclassindividual |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||||||||||||||||||||||
2018 | $ | $ 38.1 | |||||||||||||||||||||||
2019 | $ | 31.9 | |||||||||||||||||||||||
2020 | $ | 24.3 | |||||||||||||||||||||||
2021 | $ | 18.6 | |||||||||||||||||||||||
2022 | $ | 13.7 | |||||||||||||||||||||||
Thereafter | $ | 16.6 | |||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Rent expense under all leases | $ | $ 26.2 | $ 50.9 | $ 53 | $ 39.2 | ||||||||||||||||||||
Purchase obligation | $ | $ 771 | |||||||||||||||||||||||
Number of dozens of other drugs | dozens | 2 | |||||||||||||||||||||||
Number of manufacturers | manufacturer | 31 | |||||||||||||||||||||||
Number of supermarket chains | supermarket | 3 | |||||||||||||||||||||||
Number of subclasses | subclass | 3 | |||||||||||||||||||||||
Number of former directors and officers | individual | 11 | |||||||||||||||||||||||
Number of generic prescription pharmaceuticals | product | 6 | 6 | 6 | |||||||||||||||||||||
Number of individuals | individual | 3 | |||||||||||||||||||||||
Number of cases | 3 | |||||||||||||||||||||||
Number of defendants | defendant | 5 | |||||||||||||||||||||||
Number of drugs | product | 2 | 2 | ||||||||||||||||||||||
Preliminary class damages | $ 760 | ₪ 2,700 | $ 192 | ₪ 686 | ||||||||||||||||||||
Foreign currency exchange rate, remeasurement | 0.0028 | 0.0028 | ||||||||||||||||||||||
Number of current or former directors and officers | defendant | 11 | 11 | ||||||||||||||||||||||
Number of cases dismissed | 2 | 7 | ||||||||||||||||||||||
Number of applications filed | application | 9 | |||||||||||||||||||||||
Number of applications dismissed | application | 1 | |||||||||||||||||||||||
Number of applications consolidated | application | 8 | |||||||||||||||||||||||
Number of applications | application | 1 | |||||||||||||||||||||||
Number of hearings | hearing | 3 | |||||||||||||||||||||||
Losses and expenses per co-defendant, percentage | 50.00% | |||||||||||||||||||||||
Number of claims settled | 1 | |||||||||||||||||||||||
Number of claims dismissed with prejudice | 2 | |||||||||||||||||||||||
Subsequent Event [Member] | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Number of generic prescription pharmaceuticals | product | 6 | 6 | 6 | 6 | ||||||||||||||||||||
Number of individuals | individual | 3 | 3 | ||||||||||||||||||||||
Number of plaintiff groups | plaintiff | 2 | |||||||||||||||||||||||
Number of complaints | complaint | 2 | |||||||||||||||||||||||
Number of cases not securities class actions | 2 | |||||||||||||||||||||||
Number of cases | 4 | 1 | ||||||||||||||||||||||
Number of defendants | defendant | 2 | |||||||||||||||||||||||
Number of overlapped cases | 2 | |||||||||||||||||||||||
Number of opt out cases | 4 | 5 | ||||||||||||||||||||||
ISRAEL | ||||||||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||||||||
Pending cases | 3 | |||||||||||||||||||||||
Number of cases dismissed | 2 | |||||||||||||||||||||||
Loss Contingency, Number Of Cases Stayed | 1 |
Collaboration Agreements And124
Collaboration Agreements And Other Contractual Arrangements (Details) $ in Millions | Dec. 20, 2017product | Mar. 01, 2016USD ($) | May 15, 2015USD ($)product | May 01, 2015USD ($)product | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | Dec. 27, 2014USD ($) | Dec. 31, 2021product | Dec. 31, 2019product | Dec. 31, 2017USD ($)product | Dec. 31, 2016USD ($)product | Jun. 27, 2015USD ($)product | Dec. 31, 2020USD ($) | Dec. 31, 2018USD ($) |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Research and development | $ 88.2 | $ 89.8 | $ 167.7 | $ 184 | $ 187.8 | |||||||||
Royalty Pharma contingent milestone payments | $ 30 | |||||||||||||
Business combination, number of products purchased | product | 3 | 2 | 2 | |||||||||||
May 2015 agreement | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Number of products added to agreement | product | 3 | |||||||||||||
Business combination, number of products purchased | product | 2 | |||||||||||||
May 2015 agreement | Minimum | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Royalty Pharma contingent milestone payments | $ 78 | $ 126 | ||||||||||||
May 2015 agreement | Maximum | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Royalty Pharma contingent milestone payments | $ 105 | $ 174 | ||||||||||||
Development-Stage Rx Products | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Research and development | $ 18 | |||||||||||||
Business combination, number of products purchased | product | 2 | |||||||||||||
Number of products sold | product | 1 | |||||||||||||
Development-Stage Rx Products | Minimum | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Royalty payment period | 7 years | |||||||||||||
Development-Stage Rx Products | Maximum | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Royalty payment period | 10 years | |||||||||||||
Forecast | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Royalty Pharma contingent milestone payments | $ 54.8 | $ 79.7 | ||||||||||||
Forecast | May 2015 agreement | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Business combination, number of products purchased | product | 2 | 1 | ||||||||||||
ANDA | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Research and development | $ 2.5 | |||||||||||||
ANDA | Maximum | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Royalty Pharma contingent milestone payments | $ 14.5 | $ 14.5 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Apr. 01, 2017 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 27, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |
Restructuring Reserve [Roll Forward] | |||||||
Beginning balance | $ 19.7 | $ 1.6 | $ 16.4 | $ 19.7 | $ 20.7 | $ 16.4 | |
Additional charges | $ 38.7 | $ 24.7 | 26.9 | $ 4.2 | 61 | 31 | 5.1 |
Payments | (6.4) | (59.6) | (35.8) | (18.5) | |||
Non-cash adjustments | (1.4) | 0.3 | 3.8 | (1.4) | |||
Ending balance | $ 20.7 | $ 20.7 | 21.4 | 19.7 | $ 1.6 | ||
Severance | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Ending balance | 17.6 | ||||||
Contract Termination | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Ending balance | 3.8 | ||||||
CHCA | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Additional charges | 27.4 | ||||||
CHCI | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Additional charges | $ 17.1 | $ 20.9 |
Segment and Geographic Infor126
Segment and Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | [3] | Jul. 01, 2017 | [4] | Apr. 01, 2017 | [5] | Dec. 31, 2016 | Dec. 31, 2016 | Oct. 01, 2016 | [7] | Jul. 02, 2016 | [8] | Apr. 02, 2016 | [9] | Dec. 31, 2015 | Sep. 26, 2015 | [11] | Dec. 31, 2015 | Dec. 27, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | [1] | $ 2,632.2 | $ 4,946.2 | $ 5,280.6 | $ 4,227.1 | ||||||||||||||||||||||
Operating income | $ 67.6 | $ 289.7 | $ 598.2 | $ (1,999.7) | $ 672.5 | ||||||||||||||||||||||
Operating income % | 2.60% | 12.10% | (37.90%) | 15.90% | |||||||||||||||||||||||
Assets | $ 11,628.8 | $ 13,870.1 | $ 13,870.1 | $ 19,349.6 | $ 19,349.6 | $ 11,628.8 | $ 13,870.1 | $ 19,591.9 | |||||||||||||||||||
Capital expenditures | 77.8 | 88.6 | 106.2 | 137 | |||||||||||||||||||||||
Property and equip, net | 833.1 | 870.1 | 870.1 | 886.2 | 886.2 | 833.1 | 870.1 | 932.4 | |||||||||||||||||||
Depreciation/amortization | 182.4 | 444.8 | 457 | 258.7 | |||||||||||||||||||||||
Change in financial assets | 0.7 | [2] | $ 2.6 | $ 38.7 | $ (17.1) | 1,100 | 1,115.6 | [6] | $ 377.4 | $ 910.8 | $ 204.4 | 116.6 | [10] | $ (173.8) | (57.3) | $ (46.9) | 24.9 | 2,608.2 | (78.5) | ||||||||
CHCA | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 1,251.5 | 2,429.9 | 2,507.1 | 2,478.8 | |||||||||||||||||||||||
CHCA | Cough/Cold/Allergy/Sinus | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | [12] | 234.6 | 483.7 | 454.6 | 455.6 | ||||||||||||||||||||||
CHCA | Analgesics | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | [12] | 173.1 | 349.8 | 343.5 | 375.7 | ||||||||||||||||||||||
CHCA | Gastrointestinal | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | [12] | 195.8 | 340 | 335.4 | 384 | ||||||||||||||||||||||
CHCA | Infant nutritionals | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 200.2 | 413.9 | 427 | 383.8 | |||||||||||||||||||||||
CHCA | Smoking cessation | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 147.5 | 297.2 | 308.5 | 284.5 | |||||||||||||||||||||||
CHCA | Vitamins, minerals and dietary supplements | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | [12] | 105.8 | 45.4 | 160.4 | 183.5 | ||||||||||||||||||||||
CHCA | Animal health | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 62.3 | 141.3 | 143.7 | 157 | |||||||||||||||||||||||
CHCA | Other CHCA | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | [12],[13] | 132.2 | 358.6 | 334 | 254.7 | ||||||||||||||||||||||
CHCI | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 833 | 1,491 | 1,652.2 | 704.6 | |||||||||||||||||||||||
CHCI | Branded OTC | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 665.9 | 1,174 | 1,349.2 | 368.4 | |||||||||||||||||||||||
CHCI | Other CHCI | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | [14] | 167.1 | 317 | 303 | 336.2 | ||||||||||||||||||||||
RX | Generic prescription drugs | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 502.6 | 969.7 | 1,042.8 | 936 | |||||||||||||||||||||||
Other | Active pharmaceutical ingredients | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 45.1 | 55.6 | 78.5 | 107.7 | |||||||||||||||||||||||
Ireland | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | [1] | 11.4 | 30.4 | 89.1 | 7.2 | ||||||||||||||||||||||
Property and equip, net | 4.6 | 2.7 | 2.7 | 1.3 | 1.3 | 4.6 | 2.7 | ||||||||||||||||||||
Unites States | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | [1] | 1,686.2 | 3,272.3 | 3,353 | 3,303.2 | ||||||||||||||||||||||
Property and equip, net | 538.3 | 556.6 | 556.6 | 555 | 555 | 538.3 | 556.6 | ||||||||||||||||||||
Europe | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | [1] | 758.2 | 1,313.2 | 1,493 | 576.4 | ||||||||||||||||||||||
Property and equip, net | 155.6 | 144.6 | 144.6 | 157.2 | 157.2 | 155.6 | 144.6 | ||||||||||||||||||||
ISRAEL | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Property and equip, net | 81.5 | 114.3 | 114.3 | 115.7 | 115.7 | 81.5 | 114.3 | ||||||||||||||||||||
All other countries | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | [1],[15] | 176.4 | 330.3 | 345.5 | $ 340.3 | ||||||||||||||||||||||
Property and equip, net | 53.1 | 51.9 | 51.9 | 57 | $ 57 | $ 53.1 | $ 51.9 | ||||||||||||||||||||
Walmart | Net sales | Customer Concentration Risk | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Concentration risk percentage | 13.00% | 13.00% | 13.00% | 16.00% | |||||||||||||||||||||||
Operating Segments | CHCA | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | $ 1,251.5 | $ 2,429.9 | $ 2,507.1 | $ 2,478.8 | |||||||||||||||||||||||
Operating income | $ 209.2 | $ 445 | $ 399.8 | $ 381.9 | |||||||||||||||||||||||
Operating income % | 16.70% | 18.30% | 15.90% | 15.40% | |||||||||||||||||||||||
Assets | 3,786.8 | 3,351.3 | 3,351.3 | 3,384.8 | $ 3,384.8 | $ 3,786.8 | $ 3,351.3 | $ 3,763.8 | |||||||||||||||||||
Capital expenditures | 38 | 39.5 | 59.1 | 76.8 | |||||||||||||||||||||||
Property and equip, net | 512.7 | 528.3 | 528.3 | 540.9 | 540.9 | 512.7 | 528.3 | 556.8 | |||||||||||||||||||
Depreciation/amortization | 60.9 | 115.2 | 119.1 | 108.4 | |||||||||||||||||||||||
Change in financial assets | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Operating Segments | CHCI | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | [16] | 833 | 1,491 | 1,652.2 | 704.6 | ||||||||||||||||||||||
Operating income | [16] | $ (148.5) | $ 12.5 | $ (2,087.4) | $ 38.2 | ||||||||||||||||||||||
Operating income % | [16] | (17.80%) | 0.80% | (126.30%) | 5.40% | ||||||||||||||||||||||
Assets | [16] | 5,029 | 4,795.2 | 4,795.2 | 7,083.5 | $ 7,083.5 | $ 5,029 | $ 4,795.2 | $ 7,163 | ||||||||||||||||||
Capital expenditures | [16] | 26.3 | 27.5 | 23.7 | 13.1 | ||||||||||||||||||||||
Property and equip, net | [16] | 180.9 | 167.2 | 167.2 | 179.5 | 179.5 | 180.9 | 167.2 | 176.8 | ||||||||||||||||||
Depreciation/amortization | [16] | 81.9 | 223.7 | 210 | 72.5 | ||||||||||||||||||||||
Change in financial assets | [16] | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Operating Segments | RX | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 502.6 | 969.7 | 1,042.8 | 936 | |||||||||||||||||||||||
Operating income | $ 181.9 | $ 307.6 | $ (0.2) | $ 364.7 | |||||||||||||||||||||||
Operating income % | 36.20% | 31.70% | 0.00% | 39.00% | |||||||||||||||||||||||
Assets | 2,813 | 2,646.4 | 2,646.4 | 2,738 | $ 2,738 | $ 2,813 | $ 2,646.4 | $ 2,373.4 | |||||||||||||||||||
Capital expenditures | 12.1 | 21.6 | 20.4 | 41 | |||||||||||||||||||||||
Property and equip, net | 139.5 | 129.7 | 129.7 | 118.5 | 118.5 | 139.5 | 129.7 | 113 | |||||||||||||||||||
Depreciation/amortization | 34.3 | 100.1 | 120.1 | 65.7 | |||||||||||||||||||||||
Change in financial assets | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Operating Segments | Specialty Sciences | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Operating income | $ (6.5) | $ 0 | $ (201.2) | $ (17.6) | |||||||||||||||||||||||
Operating income % | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||||||||||||||||
Assets | 0 | 2,775.8 | 2,775.8 | 5,930.2 | $ 5,930.2 | $ 0 | $ 2,775.8 | $ 6,040.7 | |||||||||||||||||||
Capital expenditures | 0 | 0 | 0 | 0.5 | |||||||||||||||||||||||
Property and equip, net | 0 | 0.4 | 0.4 | 0 | 0 | 0 | 0.4 | 0 | |||||||||||||||||||
Depreciation/amortization | 0 | 0 | 0 | 1.5 | |||||||||||||||||||||||
Change in financial assets | (57.3) | 24.9 | 2,608.2 | (78.5) | |||||||||||||||||||||||
Operating Segments | Other | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 45.1 | 55.6 | 78.5 | 107.7 | |||||||||||||||||||||||
Operating income | $ (19.5) | $ 8.7 | $ 6.1 | $ 26.8 | |||||||||||||||||||||||
Operating income % | (43.30%) | 15.60% | 7.80% | 24.90% | |||||||||||||||||||||||
Assets | 0 | 301.4 | 301.4 | 213.1 | $ 213.1 | $ 0 | $ 301.4 | $ 251 | |||||||||||||||||||
Capital expenditures | 1.4 | 0 | 3 | 5.6 | |||||||||||||||||||||||
Property and equip, net | 0 | 44.5 | 44.5 | 47.3 | 47.3 | 0 | 44.5 | 85.8 | |||||||||||||||||||
Depreciation/amortization | 5.3 | 5.8 | 7.8 | 10.6 | |||||||||||||||||||||||
Change in financial assets | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Unallocated | |||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||
Net sales | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Operating income | $ (149) | $ (175.6) | $ (116.8) | $ (121.5) | |||||||||||||||||||||||
Operating income % | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||||||||||||||||
Assets | 0 | 0 | 0 | 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||||||||||
Capital expenditures | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Property and equip, net | $ 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||
Depreciation/amortization | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Change in financial assets | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||||||||||||||
[1] | The net sales by geography is derived from the location of the entity that sells to a third party. | ||||||||||||||||||||||||||
[2] | (5) Includes unusual litigation charge reversal of $0.2 million.Year Ended December 31, 2016FirstQuarter (2) SecondQuarter (3) ThirdQuarter (4) FourthQuarter (5)Net sales$1,347.3 $1,340.5 $1,261.6 $1,331.2Gross profit$533.1 $546.5 $484.5 $487.7Change in financial assets$204.4 $910.8 $377.4 $1,115.6Net loss$(529.2) $(534.3) $(1,590.2) $(1,359.1)Loss per share(1): Basic$(3.70) $(3.73) $(11.10) $(9.48)Diluted$(3.70) $(3.73) $(11.10) $(9.48)Weighted average shares outstanding Basic143.2 143.2 143.3 143.4Diluted143.2 143.2 143.3 143.4 | ||||||||||||||||||||||||||
[3] | Includes held-for-sale impairment charges of $3.3 million, and fixed asset impairment charges of $4.0 million. | ||||||||||||||||||||||||||
[4] | Includes intangible asset impairment charges of $18.5 million, changes in financial assets of $38.7 million, and loss on early debt extinguishment of $135.2 million. | ||||||||||||||||||||||||||
[5] | Includes IPR&D impairment charges of $12.2 million, gain on certain divestiture of $21.8 million, and restructuring charges of $38.7 million. | ||||||||||||||||||||||||||
[6] | Includes intangible asset impairment charges of $378.6 million, goodwill impairment charge of $224.1 million, and a reduction in held-for-sale impairment charges of $4.5 million. | ||||||||||||||||||||||||||
[7] | Includes intangible asset impairment charges of $866.6 million, goodwill impairment charge of $737.9 thousand, and held-for-sale impairment charges of $10.2 million. | ||||||||||||||||||||||||||
[8] | Includes held-for-sale impairment charges of $10.5 million and change in financial assets of $910.8 million. | ||||||||||||||||||||||||||
[9] | Includes an intangible asset impairment charges of $273.3 million, and a goodwill impairment charge of $130.5 million. | ||||||||||||||||||||||||||
[10] | Includes an intangible asset impairment charge of $185.1 million, Mylan defense-related fees of $71.3 million, an impairment charge on our India API held for sale assets of $29.0 million, restructuring charges of $24.7 million, and an investment impairment charge of $10.7 million. | ||||||||||||||||||||||||||
[11] | Includes Mylan defense-related fees of $15.6 million. | ||||||||||||||||||||||||||
[12] | Includes net sales from our OTC contract manufacturing business. | ||||||||||||||||||||||||||
[13] | Consists primarily of feminine hygiene, diabetes care, dermatological care, branded OTC, diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the CHCA segment. | ||||||||||||||||||||||||||
[14] | Consists primarily of liquids licensed products, cough/cold/allergy, analgesics, diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the CHCI segment. | ||||||||||||||||||||||||||
[15] | Includes revenue generated primarily in Israel, Mexico, Australia, and Canada. | ||||||||||||||||||||||||||
[16] | CHCI includes Omega activity subsequent to March 30, 2015. |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Dec. 31, 2015 | Sep. 26, 2015 | Dec. 31, 2015 | Dec. 27, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | |||||||||||
Quarterly Financial Data [Line Items] | ||||||||||||||||||||||||||
Net sales | $ 1,283,000,000 | [1] | $ 1,231,300,000 | [2] | $ 1,237,900,000 | [3] | $ 1,194,000,000 | [4] | $ 1,331,200,000 | [5] | $ 1,261,600,000 | [6] | $ 1,340,500,000 | [7] | $ 1,347,300,000 | [8] | $ 1,359,100,000 | [9] | $ 1,273,100,000 | [10] | $ 2,632,200,000 | $ 1,844,700,000 | $ 4,946,200,000 | $ 5,280,600,000 | $ 4,227,100,000 | |
Gross profit | 512,700,000 | [1] | 497,800,000 | [2] | 504,600,000 | [3] | 464,400,000 | [4] | 487,700,000 | [5] | 484,500,000 | [6] | 546,500,000 | [7] | 533,100,000 | [8] | 543,700,000 | [9] | 535,200,000 | [10] | 1,078,900,000 | 673,800,000 | 1,979,500,000 | 2,051,800,000 | 1,644,200,000 | |
Change in financial assets | 700,000 | [1] | 2,600,000 | [2] | 38,700,000 | [3] | (17,100,000) | [4] | $ 1,100,000,000 | 1,115,600,000 | [5] | 377,400,000 | [6] | 910,800,000 | [7] | 204,400,000 | [8] | 116,600,000 | [9] | (173,800,000) | [10] | (57,300,000) | (46,900,000) | 24,900,000 | 2,608,200,000 | (78,500,000) |
Net income (loss) | $ 73,100,000 | [1] | $ 44,500,000 | [2] | $ (69,600,000) | [3] | $ 71,600,000 | [4] | $ (1,359,100,000) | [5] | $ (1,590,200,000) | [6] | $ (534,300,000) | [7] | $ (529,200,000) | [8] | $ (218,400,000) | [9] | $ 260,900,000 | [10] | $ 42,500,000 | $ 180,600,000 | $ 119,600,000 | $ (4,012,800,000) | $ 136,100,000 | |
Earnings (loss) per share | ||||||||||||||||||||||||||
Basic (in dollars per share) | $ 0.52 | [1],[11] | $ 0.31 | [2],[11] | $ (0.49) | [3],[11] | $ 0.50 | [4],[11] | $ (9.48) | [5],[11] | $ (11.10) | [6],[11] | $ (3.73) | [7],[11] | $ (3.70) | [8],[11] | $ (1.51) | [9],[11] | $ 1.78 | [10],[11] | $ 0.29 | $ 1.34 | $ 0.84 | $ (28.01) | $ 0.97 | |
Diluted (in dollars per share) | $ 0.52 | [1],[11] | $ 0.31 | [2],[11] | $ (0.49) | [3],[11] | $ 0.50 | [4],[11] | $ (9.48) | [5],[11] | $ (11.10) | [6],[11] | $ (3.73) | [7],[11] | $ (3.70) | [8],[11] | $ (1.51) | [9],[11] | $ 1.78 | [10],[11] | $ 0.29 | $ 1.34 | $ 0.84 | $ (28.01) | $ 0.97 | |
Weighted-average shares outstanding | ||||||||||||||||||||||||||
Basic (in shares) | 140.8 | [1],[11] | 141.3 | [2],[11] | 143.3 | [3],[11] | 143.4 | [4],[11] | 143.4 | [5],[11] | 143.3 | [6],[11] | 143.2 | [7],[11] | 143.2 | [8],[11] | 144.9 | [9],[11] | 146.3 | [10],[11] | 145.6 | 135.1 | 142.3 | 143.3 | 139.3 | |
Diluted (in shares) | 141.2 | [1],[11] | 141.7 | [2],[11] | 143.3 | [3],[11] | 143.6 | [4],[11] | 143.4 | [5],[11] | 143.3 | [6],[11] | 143.2 | [7],[11] | 143.2 | [8],[11] | 144.9 | [9],[11] | 146.9 | [10],[11] | 146.1 | 135.6 | 142.6 | 143.3 | 139.8 | |
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||||||
Impairment of intangible assets, indefinite-lived | $ 12,200,000 | $ 185,100,000 | $ 12,700,000 | $ 849,500,000 | ||||||||||||||||||||||
Gain (loss) on disposition of business | 21,800,000 | |||||||||||||||||||||||||
Restructuring | $ 38,700,000 | $ 24,700,000 | 26,900,000 | $ 4,200,000 | 61,000,000 | 31,000,000 | $ 5,100,000 | |||||||||||||||||||
Impairment of intangible assets | $ 18,500,000 | $ 378,600,000 | $ 866,600,000 | $ 273,300,000 | 185,100,000 | 0 | ||||||||||||||||||||
Goodwill impairment charge | 224,100,000 | 737,900 | $ 130,500,000 | 0 | 1,092,500,000 | |||||||||||||||||||||
Loss on extinguishment of debt | $ 135,200,000 | 900,000 | $ 9,600,000 | $ 135,200,000 | 1,100,000 | $ 10,500,000 | ||||||||||||||||||||
Held-for-sale impairment charges | $ 3,300,000 | $ 4,500,000 | $ 10,200,000 | $ 10,500,000 | ||||||||||||||||||||||
Fixed asset impairment | $ 4,000,000 | |||||||||||||||||||||||||
Legal fee charge (reversal) | 71,300,000 | $ 15,600,000 | ||||||||||||||||||||||||
Gain (loss) related to litigation settlement | $ 200,000 | |||||||||||||||||||||||||
Other than temporary impairment losses, investments, portion recognized in earnings, net, available-for-sale securities | 10,700,000 | $ 10,700,000 | $ 1,800,000 | |||||||||||||||||||||||
Held for sale | API | ||||||||||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||||||||
Held-for-sale impairment charges | $ 29,000,000 | |||||||||||||||||||||||||
[1] | (5) Includes unusual litigation charge reversal of $0.2 million.Year Ended December 31, 2016FirstQuarter (2) SecondQuarter (3) ThirdQuarter (4) FourthQuarter (5)Net sales$1,347.3 $1,340.5 $1,261.6 $1,331.2Gross profit$533.1 $546.5 $484.5 $487.7Change in financial assets$204.4 $910.8 $377.4 $1,115.6Net loss$(529.2) $(534.3) $(1,590.2) $(1,359.1)Loss per share(1): Basic$(3.70) $(3.73) $(11.10) $(9.48)Diluted$(3.70) $(3.73) $(11.10) $(9.48)Weighted average shares outstanding Basic143.2 143.2 143.3 143.4Diluted143.2 143.2 143.3 143.4 | |||||||||||||||||||||||||
[2] | Includes held-for-sale impairment charges of $3.3 million, and fixed asset impairment charges of $4.0 million. | |||||||||||||||||||||||||
[3] | Includes intangible asset impairment charges of $18.5 million, changes in financial assets of $38.7 million, and loss on early debt extinguishment of $135.2 million. | |||||||||||||||||||||||||
[4] | Includes IPR&D impairment charges of $12.2 million, gain on certain divestiture of $21.8 million, and restructuring charges of $38.7 million. | |||||||||||||||||||||||||
[5] | Includes intangible asset impairment charges of $378.6 million, goodwill impairment charge of $224.1 million, and a reduction in held-for-sale impairment charges of $4.5 million. | |||||||||||||||||||||||||
[6] | Includes intangible asset impairment charges of $866.6 million, goodwill impairment charge of $737.9 thousand, and held-for-sale impairment charges of $10.2 million. | |||||||||||||||||||||||||
[7] | Includes held-for-sale impairment charges of $10.5 million and change in financial assets of $910.8 million. | |||||||||||||||||||||||||
[8] | Includes an intangible asset impairment charges of $273.3 million, and a goodwill impairment charge of $130.5 million. | |||||||||||||||||||||||||
[9] | Includes an intangible asset impairment charge of $185.1 million, Mylan defense-related fees of $71.3 million, an impairment charge on our India API held for sale assets of $29.0 million, restructuring charges of $24.7 million, and an investment impairment charge of $10.7 million. | |||||||||||||||||||||||||
[10] | Includes Mylan defense-related fees of $15.6 million. | |||||||||||||||||||||||||
[11] | The sum of individual per share amounts may not equal due to rounding. |
Transition Period Comparativ128
Transition Period Comparative Data (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | [2] | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | [5] | Oct. 01, 2016 | [6] | Jul. 02, 2016 | [7] | Apr. 02, 2016 | [8] | Dec. 31, 2015 | Sep. 26, 2015 | [10] | Dec. 31, 2015 | Dec. 27, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 27, 2015 | ||||
Transition period financial data [Abstract] | ||||||||||||||||||||||||||
Net sales | $ 1,283 | $ 1,231.3 | $ 1,237.9 | [3] | $ 1,194 | [4] | $ 1,331.2 | $ 1,261.6 | $ 1,340.5 | $ 1,347.3 | $ 1,359.1 | [9] | $ 1,273.1 | $ 2,632.2 | $ 1,844.7 | $ 4,946.2 | $ 5,280.6 | $ 4,227.1 | ||||||||
Cost of sales | 1,553.3 | 1,170.9 | 2,966.7 | 3,228.8 | 2,582.9 | |||||||||||||||||||||
Gross profit | 512.7 | 497.8 | 504.6 | [3] | 464.4 | [4] | 487.7 | 484.5 | 546.5 | 533.1 | 543.7 | [9] | 535.2 | 1,078.9 | 673.8 | 1,979.5 | 2,051.8 | 1,644.2 | ||||||||
Operating expenses | ||||||||||||||||||||||||||
Distribution | 47.9 | 29.2 | 87 | 88.3 | 67.7 | |||||||||||||||||||||
Research and development | 88.2 | 89.8 | 167.7 | 184 | 187.8 | |||||||||||||||||||||
Selling | 325.9 | 95.3 | 598.4 | 665 | 319 | |||||||||||||||||||||
Administration | 306.8 | 165.6 | 461.1 | 452.2 | 385.3 | |||||||||||||||||||||
Impairment charges | 215.6 | 0 | 47.5 | 2,631 | 6.8 | |||||||||||||||||||||
Restructuring | 38.7 | 24.7 | 26.9 | 4.2 | 61 | 31 | 5.1 | |||||||||||||||||||
Total operating expenses | 1,011.3 | 384.1 | 1,381.3 | 4,051.5 | 971.7 | |||||||||||||||||||||
Operating income (loss) | 67.6 | 289.7 | 598.2 | (1,999.7) | 672.5 | |||||||||||||||||||||
Change in financial assets | 0.7 | 2.6 | 38.7 | [3] | (17.1) | [4] | $ 1,100 | 1,115.6 | 377.4 | 910.8 | 204.4 | 116.6 | [9] | (173.8) | (57.3) | (46.9) | 24.9 | 2,608.2 | (78.5) | |||||||
Interest expense, net | 89.9 | 56.7 | 168.1 | 216.6 | 146 | |||||||||||||||||||||
Other expense (Income), net | 25.2 | 60.3 | (10.1) | 22.7 | 334.2 | |||||||||||||||||||||
Loss on extinguishment of debt | 135.2 | 0.9 | 9.6 | 135.2 | 1.1 | 10.5 | ||||||||||||||||||||
Income (loss) before income taxes | 8.9 | 210 | 280.1 | (4,848.3) | 260.3 | |||||||||||||||||||||
Income tax expense (benefit) | (33.6) | 29.4 | 160.5 | (835.5) | 124.2 | |||||||||||||||||||||
Net income (loss) | $ 73.1 | $ 44.5 | $ (69.6) | [3] | $ 71.6 | [4] | $ (1,359.1) | $ (1,590.2) | $ (534.3) | $ (529.2) | $ (218.4) | [9] | $ 260.9 | $ 42.5 | $ 180.6 | $ 119.6 | $ (4,012.8) | $ 136.1 | ||||||||
Earnings (loss) per share | ||||||||||||||||||||||||||
Basic (in dollars per share) | $ 0.52 | [11] | $ 0.31 | [11] | $ (0.49) | [3],[11] | $ 0.50 | [4],[11] | $ (9.48) | [11] | $ (11.10) | [11] | $ (3.73) | [11] | $ (3.70) | [11] | $ (1.51) | [9],[11] | $ 1.78 | [11] | $ 0.29 | $ 1.34 | $ 0.84 | $ (28.01) | $ 0.97 | |
Diluted (in dollars per share) | $ 0.52 | [11] | $ 0.31 | [11] | $ (0.49) | [3],[11] | $ 0.50 | [4],[11] | $ (9.48) | [11] | $ (11.10) | [11] | $ (3.73) | [11] | $ (3.70) | [11] | $ (1.51) | [9],[11] | $ 1.78 | [11] | $ 0.29 | $ 1.34 | $ 0.84 | $ (28.01) | $ 0.97 | |
Weighted Average Shares Outstanding [Abstract] | ||||||||||||||||||||||||||
Basic (in shares) | 140.8 | [11] | 141.3 | [11] | 143.3 | [3],[11] | 143.4 | [4],[11] | 143.4 | [11] | 143.3 | [11] | 143.2 | [11] | 143.2 | [11] | 144.9 | [9],[11] | 146.3 | [11] | 145.6 | 135.1 | 142.3 | 143.3 | 139.3 | |
Diluted (in shares) | 141.2 | [11] | 141.7 | [11] | 143.3 | [3],[11] | 143.6 | [4],[11] | 143.4 | [11] | 143.3 | [11] | 143.2 | [11] | 143.2 | [11] | 144.9 | [9],[11] | 146.9 | [11] | 146.1 | 135.6 | 142.6 | 143.3 | 139.8 | |
Dividends declared per share | $ 0.25 | $ 0.21 | $ 0.64 | $ 0.58 | $ 0.4600 | |||||||||||||||||||||
[1] | (5) Includes unusual litigation charge reversal of $0.2 million.Year Ended December 31, 2016FirstQuarter (2) SecondQuarter (3) ThirdQuarter (4) FourthQuarter (5)Net sales$1,347.3 $1,340.5 $1,261.6 $1,331.2Gross profit$533.1 $546.5 $484.5 $487.7Change in financial assets$204.4 $910.8 $377.4 $1,115.6Net loss$(529.2) $(534.3) $(1,590.2) $(1,359.1)Loss per share(1): Basic$(3.70) $(3.73) $(11.10) $(9.48)Diluted$(3.70) $(3.73) $(11.10) $(9.48)Weighted average shares outstanding Basic143.2 143.2 143.3 143.4Diluted143.2 143.2 143.3 143.4 | |||||||||||||||||||||||||
[2] | Includes held-for-sale impairment charges of $3.3 million, and fixed asset impairment charges of $4.0 million. | |||||||||||||||||||||||||
[3] | Includes intangible asset impairment charges of $18.5 million, changes in financial assets of $38.7 million, and loss on early debt extinguishment of $135.2 million. | |||||||||||||||||||||||||
[4] | Includes IPR&D impairment charges of $12.2 million, gain on certain divestiture of $21.8 million, and restructuring charges of $38.7 million. | |||||||||||||||||||||||||
[5] | Includes intangible asset impairment charges of $378.6 million, goodwill impairment charge of $224.1 million, and a reduction in held-for-sale impairment charges of $4.5 million. | |||||||||||||||||||||||||
[6] | Includes intangible asset impairment charges of $866.6 million, goodwill impairment charge of $737.9 thousand, and held-for-sale impairment charges of $10.2 million. | |||||||||||||||||||||||||
[7] | Includes held-for-sale impairment charges of $10.5 million and change in financial assets of $910.8 million. | |||||||||||||||||||||||||
[8] | Includes an intangible asset impairment charges of $273.3 million, and a goodwill impairment charge of $130.5 million. | |||||||||||||||||||||||||
[9] | Includes an intangible asset impairment charge of $185.1 million, Mylan defense-related fees of $71.3 million, an impairment charge on our India API held for sale assets of $29.0 million, restructuring charges of $24.7 million, and an investment impairment charge of $10.7 million. | |||||||||||||||||||||||||
[10] | Includes Mylan defense-related fees of $15.6 million. | |||||||||||||||||||||||||
[11] | The sum of individual per share amounts may not equal due to rounding. |
Schedule II - Valuation and 129
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Beginning Balance | $ 2.6 | $ 6.3 | $ 4.5 | |
Net bad debt expenses | [1] | 2.5 | 1.4 | 2.1 |
Additions (deductions) | [2] | (0.6) | (1.5) | (0.3) |
Ending Balance | $ 4.5 | $ 6.2 | $ 6.3 | |
[1] | Includes effects of changes in foreign exchange rates | |||
[2] | Uncollectible accounts written off, net of recoveries. Also includes effects of changes in foreign exchange rates. |