Ireland | N/A | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Ordinary shares, €0.001 par value | PRGO | New York Stock Exchange |
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
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Yes
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☒
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No
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☐
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Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 of Section 15(d) of the Act.
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Yes
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☐
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No
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☒
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
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Yes
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☒
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No
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☐
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Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
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Yes
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☒
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No
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☐
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.
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Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.7262(b)) by the registered public accounting firm that prepared or issued its audit report. |
☒
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). |
Yes
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☐
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No
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☒
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Page No. | ||||||
Part I. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Additional Item. | ||||||||
Part II. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
Part III. | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
Part IV. | ||||||||
Item 15. |
Product Category | Description | |||||||
Pain and sleep-aids | Products comprised of pain relievers, fever reducers and sleep-aids. | |||||||
Upper respiratory | Products that relieve upper respiratory symptoms, including cough suppressants, expectorants, sinus and allergy relief. | |||||||
Digestive health | Products such as antacids, anti-diarrheal, and anti-heartburn that relieve symptoms associated with digestive issues. | |||||||
Nutrition | Infant formulas and nutritional beverages. | |||||||
Healthy lifestyle | Products that help consumers live a healthy lifestyle such as smoking cessation, diabetes care, and well-being products. | |||||||
Skincare and personal hygiene | Products for the face and body such as dermatological care, scar management, lice treatment, and other products for various skin conditions. | |||||||
Oral self-care | Products used for oral care, including toothbrushes, toothbrush replacement heads, floss, flossers, whitening products and toothbrush covers. | |||||||
Vitamins, minerals and supplements ("VMS") | Vitamins, minerals, and supplements. | |||||||
Other | Diagnostic products and other miscellaneous self-care products. |
Product Category | Description | Focus Brands | ||||||||||||
Pain and sleep-aids | Products comprised of pain relievers, fever reducers and sleep-aids. |
Solpadeine®
Nytol®
|
||||||||||||
Upper respiratory | Products that relieve upper respiratory symptoms, including cough suppressants, expectorants, sinus and allergy relief. |
Aflubin®
Bronchenolo®/Bronchostop®
Physiomer®
Phytosun®
Coldrex®
Prevalin®/Beconase®
|
||||||||||||
Digestive health | Products such as antacids, anti-diarrheal, and anti-heartburn that relieve symptoms associated with digestive issues. | |||||||||||||
Healthy lifestyle | Products that help consumers live a healthy lifestyle such as smoking cessation, weight management, diabetes care, and well-being products. |
Niquitin®
XLS (Medical)®
Yokebe®
|
||||||||||||
Skincare and personal hygiene | Products for the face and body such as dermatological care, sun protection, scar management, lice treatment, insect repellents, and other products for various skin conditions. |
ACO®
Biodermal® Canoderm®
Dermalex®
Lactacyd® Wartner®
Jungle Formula®
Paranix®
Pencivir®
|
||||||||||||
Oral self-care | Products used for oral care, including toothbrushes, toothbrush replacement heads, floss, flossers, and whitening products. |
Plackers®
|
||||||||||||
Vitamins, minerals and supplements ("VMS") | Vitamins, minerals, and supplements. |
Abtei®
Arterin®
Davitamon® Granufink® |
||||||||||||
Other | Diagnostic products and other miscellaneous self-care products. |
Generic Name (1)
|
Comparative Brand-Name Drug | |||||||
Acyclovir cream |
Zovirax®
|
|||||||
Alogliptin tabs |
Nesina®
|
|||||||
Bacitracin ophthalmic ointment | N/A | |||||||
Betamethasone calcipotriene ointment and suspension |
Taclonex®
|
|||||||
Clindamycin phosphate topical solution |
Cleocin T®
|
|||||||
Erythromycin ophthalmic ointment | N/A | |||||||
Hydrocortisone pramoxine cream |
Pramosone®
|
|||||||
Ketoconazole shampoo |
Nizoral®
|
|||||||
Mesalamine rectal |
Rowasa®
|
|||||||
Permethrin cream |
Elimite®
|
|||||||
Tacrolimus ointment |
Protopic®
|
|||||||
Testosterone 1.62% gel |
Androgel®
|
|||||||
Testosterone cypionate injection |
Depo®, Testosterone
|
|||||||
Tretinoin cream and gel |
Retin-A®
|
|||||||
Triamcinolone cream/ointment |
Triderm™/Kenalog™
|
Year Ended | ||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||
13.3 | % | 13.0 | % | 12.8 | % |
Country | Number of Facilities | Segment(s) Supported | ||||||||||||
Ireland | 1 | CSCA, CSCI, RX | ||||||||||||
United States | 44 | CSCA, CSCI, RX | ||||||||||||
Mexico | 9 | CSCA | ||||||||||||
United Kingdom | 7 | CSCI | ||||||||||||
France | 6 | CSCI | ||||||||||||
Belgium | 4 | CSCI | ||||||||||||
Austria | 3 | CSCI | ||||||||||||
India | 3 | CSCA, CSCI | ||||||||||||
Israel | 3 | CSCA, RX | ||||||||||||
Australia | 2 | CSCI | ||||||||||||
Germany | 2 | CSCI | ||||||||||||
Title and Business Experience | Age | |||||||||||||
Svend Andersen | Mr. Andersen was named Executive Vice President and President, Consumer Self-Care International in February 2017. Prior to joining Perrigo in May 2016, Mr. Andersen served as Executive Vice President - Europe for LEO-Pharma from December 2015 to May 2016. Prior to that, he was Regional President and Corporate officer at Hospira, Inc.’s Europe, Middle East and Africa (“EMEA”) business for five years, was Executive Vice President responsible for the Western European division’s pharmaceuticals, generics, OTC and hospital products businesses at Actavis from 2008 to 2015 including leading Alpharma’s EMEA businesses prior to its acquisition by Actavis, and prior to that, spent 10 years with Ferrosan (A Novo Nordisk Subsidiary) specialized in OTC and consumer health products as Vice President for Global Commercial Operations. | 59 | ||||||||||||
James E. Dillard III |
James E. Dillard III was named Executive Vice President and Chief Scientific Officer in January 2019. Mr. Dillard joined Perrigo from Altria Group, Inc., where he served as Senior Vice President, Research, Development and Sciences and Chief Innovation Officer from January 2009 to May 2018. During his tenure with Altria Group, Mr. Dillard led the creation of the Regulatory Affairs function in 2009 and also served as Chief Innovation Officer for Altria Client Services and Senior Vice President of Research, Development & Regulatory Affairs for Altria Group. He held science and technology leadership roles with U.S. Smokeless Tobacco Company, an Altria Group Inc. operating company, from 2001 to 2009. Mr. Dillard worked for the U.S. Food and Drug Administration between 1987 and 2001 as Director of the Division of Cardiovascular and Respiratory Devices, as well as in various leadership roles in the Center for Devices and Radiological Health and the Office of Device Evaluation.
|
57 | ||||||||||||
Thomas M. Farrington | Mr. Farrington was named Executive Vice President and Chief Information Officer in November 2015. He formerly served as Senior Vice President and Chief Information Officer from October 2006 to November 2015. | 63 | ||||||||||||
Ronald C. Janish | Mr. Janish was named Chief Transformation Officer in January 2019 and Executive Vice President of Global Operations and Supply Chain in October 2015. He served as Senior Vice President of International and Rx Operations from 2012 until 2015 and as Managing Director of Perrigo’s Australian operations from 2010 to 2012. Previously, he held Senior Vice President roles for Perrigo in International Market Development, China Business Development and Global Procurement. | 55 | ||||||||||||
Murray S. Kessler | Mr. Kessler was appointed President, Chief Executive Officer and Board Member of Perrigo Company plc, effective October 8, 2018. Before joining Perrigo, Mr. Kessler served as the Chairman of the Board of Directors, President and Chief Executive Officer of Lorillard, Inc. (2010-2015). He served as Vice Chair of Altria, Inc. (2009) and President and CEO of UST, Inc. (2000-2009), a wholly owned subsidiary. Previous to his time at UST, Mr. Kessler had over 18 years of consumer packaged goods experience with companies including Vlasic Foods International, Campbell Soup and The Clorox Company. Since 2015, Mr. Kessler has served as voluntary President of the United States Equestrian Federation, a non-profit national governing body. | 61 | ||||||||||||
Todd W. Kingma | Mr. Kingma was named Executive Vice President, General Counsel and Secretary in May 2006. He served as Vice President, General Counsel and Secretary from August 2003 to May 2006. | 61 | ||||||||||||
Sharon Kochan | Mr. Kochan was named Executive Vice President and President, RX Pharmaceuticals in October 2018. He served as Executive Vice President and President, Branded Consumer Healthcare International from February 2017 to October 2018. He served as Executive Vice President and General Manager, Consumer Healthcare International from August 2012 to February 2017. He served as Executive Vice President, General Manager of Prescription Pharmaceuticals from March 2007 to July 2012 and as Senior Vice President of Business Development and Strategy from March 2005 to March 2007. Mr. Kochan was Vice President, Business Development of Agis Industries (1983) Ltd. from July 2001 until the acquisition of Agis by the Company in March 2005. | 52 | ||||||||||||
Grainne Quinn | Dr. Quinn was named Executive Vice President in July 2016 and has served as Chief Medical Officer since November 2015. Prior to that she served as Vice President and Head of Global Patient Safety from January 2014 until November 2015. Dr. Quinn was Vice President and Head of Global Pharmacovigilance and Risk Management for Elan from April 2009 until December 2013 when the Company acquired Elan. | 51 | ||||||||||||
Raymond P. Silcock | Mr. Silcock was named Executive Vice President and Chief Financial Officer in March 2019. Prior to joining Perrigo, Mr. Silcock served as Chief Financial Officer at INW Holdings from 2018 to 2019 and as Executive Vice President and Chief Financial Officer of CTI Foods from 2016 to 2018. In March 2019, CTI Foods filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in U.S. Bankruptcy Court in Delaware. From 2013 until the company’s sale in 2016, Mr. Silcock was Executive Vice President and Chief Financial Officer of Diamond Foods, Inc. and previously held Chief Financial Officer roles at UST, Inc., Swift & Co. and Cott Corporation. He also served on the board of Pinnacle Foods, Inc. from 2008 until the company was sold in 2018. His early career was highlighted by an 18-year tenure in positions of increasing responsibility at Campbell Soup Company. Mr. Silcock is a Fellow of the Chartered Institute of Management Accountants (UK). | 70 | ||||||||||||
Title and Business Experience | Age | |||||||||||||
Richard S. Sorota | Mr. Sorota was named Executive Vice President and General Manager of Consumer Self-Care Americas in March 2020. He previously served as Chief Executive Officer and President of Ranir Global Holdings LLC from July 2015 to March 2020. Mr. Sorota has a long history of experience in general management, sales, marketing and product development. While at BISSELL Inc., he served as Senior Vice President and General Manager for Global Sales and Marketing and then Executive Vice President of Global Commercial Operations. Previous roles include serving as President of Consumer Business for HARMAN International, Senior Vice President and General Manager at The Scotts Miracle-Gro Company, and senior leadership roles in marketing and innovation for Philips Electronics and brand management at Procter & Gamble. Rich began his career in Finance at General Electric. | 57 | ||||||||||||
Robert Willis | Mr. Willis was named Executive Vice President and Chief Human Resources Officer in March 2019 after serving as Vice President of Human Resources Global Businesses for nearly six years. Prior to joining Perrigo, Mr. Willis gained more than 20 years of experience in Human Resources leadership through roles with Fawaz Alhokair Group in the Middle East, GE Capital in the UK and Ireland, DoubleClick in North America and internationally, and Norkom Technologies in Europe and North America. He also was a Partner and Founding Member of the Black & White Group. | 52 |
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Approximate Value of Shares Available for Purchase | ||||||||||||||||||||
October 1 - October 31, 2020 | — | $ | — | — | |||||||||||||||||||
November 1 - November 30, 2020 | 1,702,800 | $ | 48.17 | 1,702,800 | |||||||||||||||||||
December 1 - December 31, 2020 | 1,697,200 | $ | 48.44 | 1,697,200 | $ 835.80 million | ||||||||||||||||||
Total | 3,400,000 | $ 835.80 million |
Year Ended | |||||||||||||||||||||||||||||
(in millions, except per share amounts) |
December 31, 2020(1)
|
December 31, 2019(2)
|
December 31, 2018 | December 31, 2017 |
December 31, 2016(3)
|
||||||||||||||||||||||||
Statements of Operations Data | |||||||||||||||||||||||||||||
Net sales | $ | 5,063.3 | $ | 4,837.4 | $ | 4,731.7 | $ | 4,946.2 | $ | 5,280.6 | |||||||||||||||||||
Cost of sales | 3,248.1 | 3,064.1 | 2,900.2 | 2,966.7 | 3,228.8 | ||||||||||||||||||||||||
Gross profit | 1,815.2 | 1,773.3 | 1,831.5 | 1,979.5 | 2,051.8 | ||||||||||||||||||||||||
Operating expenses | 1,699.8 | 1,568.5 | 1,595.0 | 1,381.3 | 4,051.5 | ||||||||||||||||||||||||
Operating income (loss) | $ | 115.4 | $ | 204.8 | $ | 236.5 | $ | 598.2 | $ | (1,999.7) | |||||||||||||||||||
Net income (loss) | $ | (162.6) | $ | 146.1 | $ | 131.0 | $ | 119.6 | $ | (4,012.8) | |||||||||||||||||||
Diluted earnings (loss) from continuing operations per share
|
$ | (1.19) | $ | 1.07 | $ | 0.95 | $ | 0.84 | $ | (28.01) | |||||||||||||||||||
Dividends declared per share | $ | 0.90 | $ | 0.82 | $ | 0.76 | $ | 0.64 | $ | 0.58 |
(in millions) | December 31, 2020 | December 31, 2019 | December 31, 2018 | December 31, 2017 |
December 31,
2016 |
||||||||||||||||||||||||
Balance Sheet Data | |||||||||||||||||||||||||||||
Cash and cash equivalents
|
$ | 641.5 | $ | 354.3 | $ | 551.1 | $ | 678.7 | $ | 622.3 | |||||||||||||||||||
Total assets | $ | 11,488.4 | $ | 11,301.4 | $ | 10,983.4 | $ | 11,628.8 | $ | 13,870.1 | |||||||||||||||||||
Long-term debt, less current portion | $ | 3,528.3 | $ | 3,365.8 | $ | 3,052.2 | $ | 3,270.8 | $ | 5,224.5 |
Year Ended | |||||||||||||||||
(in millions, except percentages) |
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||||
Net sales | $ | 5,063.3 | $ | 4,837.4 | $ | 4,731.7 | |||||||||||
Gross profit | $ | 1,815.2 | $ | 1,773.3 | $ | 1,831.5 | |||||||||||
Gross profit % | 35.9 | % | 36.7 | % | 38.7 | % | |||||||||||
Operating income | $ | 115.4 | $ | 204.8 | $ | 236.5 | |||||||||||
Operating income % | 2.3 | % | 4.2 | % | 5.0 | % | |||||||||||
Year Ended | |||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
CSCA |
CSCI(1)
|
RX(2)
|
Total | ||||||||||||||||||||||||||
Goodwill | $ | — | $ | — | $ | 109.2 | $ | 109.2 | |||||||||||||||||||||
Definite-lived intangible assets | — | 9.7 | 59.8 | 69.5 | |||||||||||||||||||||||||
IPR&D | 4.1 | 0.1 | 1.6 | 5.8 | |||||||||||||||||||||||||
$ | 4.1 | $ | 9.8 | $ | 170.6 | $ | 184.5 |
Year Ended | |||||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||
CSCA(1)
|
CSCI | Total | |||||||||||||||||||||||||||
Goodwill | $ | 136.7 | $ | — | $ | 136.7 | |||||||||||||||||||||||
Indefinite-lived intangible assets | 27.7 | — | 27.7 | ||||||||||||||||||||||||||
Definite-lived intangible assets | 48.9 | 0.7 | 49.6 | ||||||||||||||||||||||||||
Assets held-for-sale | 0.6 | 1.1 | 1.7 | ||||||||||||||||||||||||||
IPR&D | 8.7 | — | 8.7 | ||||||||||||||||||||||||||
$ | 222.6 | $ | 1.8 | $ | 224.4 |
Year Ended | |||||||||||
(in millions, except percentages) |
December 31,
2020 |
December 31,
2019 |
|||||||||
Net sales | $ | 2,693.0 | $ | 2,487.7 | |||||||
Gross profit | $ | 858.5 | $ | 798.9 | |||||||
Gross profit % | 31.9 | % | 32.1 | % | |||||||
Operating income | $ | 472.0 | $ | 414.0 | |||||||
Operating income % | 17.5 | % | 16.6 | % |
Year Ended | |||||||||||
(in millions, except percentages) |
December 31,
2019 |
December 31,
2018 |
|||||||||
Net sales | $ | 2,487.7 | $ | 2,411.6 | |||||||
Gross profit | $ | 798.9 | $ | 789.0 | |||||||
Gross profit % | 32.1 | % | 32.7 | % | |||||||
Operating income | $ | 414.0 | $ | 174.4 | |||||||
Operating income % | 16.6 | % | 7.2 | % |
Year Ended | |||||||||||
(in millions, except percentages) |
December 31,
2020 |
December 31,
2019 |
|||||||||
Net sales | $ | 1,395.2 | $ | 1,382.2 | |||||||
Gross profit | $ | 641.1 | $ | 639.5 | |||||||
Gross profit % | 45.9 | % | 46.3 | % | |||||||
Operating income | $ | 32.3 | $ | 19.6 | |||||||
Operating income % | 2.3 | % | 1.4 | % |
Year Ended | |||||||||||
(in millions, except percentages) |
December 31,
2019 |
December 31,
2018 |
|||||||||
Net sales | $ | 1,382.2 | $ | 1,399.3 | |||||||
Gross profit | $ | 639.5 | $ | 668.7 | |||||||
Gross profit % | 46.3 | % | 47.8 | % | |||||||
Operating income | $ | 19.6 | $ | 6.8 | |||||||
Operating income % | 1.4 | % | 0.5 | % |
Year Ended | |||||||||||
(in millions, except percentages) |
December 31,
2020 |
December 31,
2019 |
|||||||||
Net sales | $ | 975.1 | $ | 967.5 | |||||||
Gross profit | $ | 315.3 | $ | 334.9 | |||||||
Gross profit % | 32.3 | % | 34.6 | % | |||||||
Operating income (loss) | $ | (177.7) | $ | 2.6 | |||||||
Operating income (loss) % | (18.2) | % | 0.3 | % |
Year Ended | |||||||||||
(in millions, except percentages) |
December 31,
2019 |
December 31,
2018 |
|||||||||
Net sales | $ | 967.5 | $ | 920.8 | |||||||
Gross profit | $ | 334.9 | $ | 373.9 | |||||||
Gross profit % | 34.6 | % | 40.6 | % | |||||||
Operating income | $ | 2.6 | $ | 214.6 | |||||||
Operating income % | 0.3 | % | 23.3 | % |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||
$ | 211.5 | $ | 231.4 | $ | 159.2 |
Year Ended | |||||||||||||||||
(in millions) |
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||||
Change in financial assets | $ | 96.4 | $ | (22.1) | $ | (188.7) | |||||||||||
Interest expense, net | $ | 131.2 | $ | 121.7 | $ | 128.0 | |||||||||||
Other (income) expense, net
|
$ | 17.2 | $ | (66.0) | $ | 6.1 | |||||||||||
Loss on extinguishment of debt | $ | 20.0 | $ | 0.2 | $ | 0.5 |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||
(8.8) | % | 14.6 | % | 54.9 | % |
Year Ended | |||||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
|||||||||||||||
Dividends paid (in millions) | $ | 123.9 | $ | 112.4 | $ | 104.9 | |||||||||||
Dividends paid per share | $ | 0.90 | $ | 0.82 | $ | 0.76 |
Year Ended | |||||||||||||||||
December 31,
2020 |
December 31,
2019 |
||||||||||||||||
Term loan | |||||||||||||||||
2019 Term loan due August 15, 2022 | $ | 600.0 | $ | 600.0 | |||||||||||||
Notes and bonds | |||||||||||||||||
Coupon | Due | ||||||||||||||||
3.500% | March 15, 2021 | $ | — | $ | 280.4 | ||||||||||||
3.500% | December 15, 2021 | — | 309.6 | ||||||||||||||
* | 5.105% | July 28, 2023 | 164.9 | 151.4 | |||||||||||||
4.000% | November 15, 2023 | 215.6 | 215.6 | ||||||||||||||
3.900% | December 15, 2024 | 700.0 | 700.0 | ||||||||||||||
4.375% | March 15, 2026 | 700.0 | 700.0 | ||||||||||||||
3.150% | June 15, 2030 | 750.0 | — | ||||||||||||||
5.300% | November 15, 2043 | 90.5 | 90.5 | ||||||||||||||
4.900% | December 15, 2044 | 303.9 | 303.9 | ||||||||||||||
Total notes and bonds | $ | 2,924.9 | $ | 2,751.4 | |||||||||||||
Payment Due | |||||||||||||||||||||||||||||
2021 | 2022-2023 | 2024-2025 | After 2025 | Total | |||||||||||||||||||||||||
Short and long-term debt (1)
|
$ | 162.6 | $ | 1,224.1 | $ | 875.2 | $ | 2,325.5 | $ | 4,587.4 | |||||||||||||||||||
Finance lease obligations
|
7.8 | 8.1 | 3.2 | 13.2 | 32.3 | ||||||||||||||||||||||||
Purchase obligations (2)
|
1,204.3 | 10.0 | — | — | 1,214.3 | ||||||||||||||||||||||||
Operating leases (3)
|
40.0 | 54.5 | 37.8 | 93.2 | 225.5 | ||||||||||||||||||||||||
Other contractual liabilities reflected on the consolidated balance sheets: | |||||||||||||||||||||||||||||
Deferred compensation and benefits (4)
|
— | — | — | 118.7 | 118.7 | ||||||||||||||||||||||||
Other (5)
|
55.2 | 26.5 | 11.5 | — | 93.2 | ||||||||||||||||||||||||
Total | $ | 1,469.9 | $ | 1,323.2 | $ | 927.7 | $ | 2,550.6 | $ | 6,271.4 |
RX | All Other Segments | ||||||||||||||||||||||||||||||||||
Chargebacks |
Medicaid
Rebates |
Sales Returns and Shelf Stock Allowances | Admin. Fees and Other Rebates | Rebates and Other Allowances | Total | ||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 266.0 | $ | 36.4 | $ | 71.0 | $ | 44.5 | $ | 116.9 | $ | 534.8 | |||||||||||||||||||||||
Balances acquired in business acquisition
|
— | — | — | — | 5.7 | 5.7 | |||||||||||||||||||||||||||||
Balances disposed of in business divestiture | — | — | — | — | (4.1) | (4.1) | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (1.7) | (1.7) | |||||||||||||||||||||||||||||
Provisions / Adjustments | 2,127.2 | 47.9 | 33.9 | 116.5 | 224.6 | 2,550.1 | |||||||||||||||||||||||||||||
Credits / Payments | (2,157.4) | (56.7) | (33.4) | (126.3) | (227.3) | (2,601.1) | |||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 235.8 | $ | 27.6 | $ | 71.5 | $ | 34.7 | $ | 114.1 | $ | 483.7 | |||||||||||||||||||||||
Balances acquired in business acquisition | — | — | — | — | 3.0 | 3.0 | |||||||||||||||||||||||||||||
Balances disposed of in business divestiture | — | — | — | — | (1.0) | (1.0) | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 5.5 | 5.5 | |||||||||||||||||||||||||||||
Provisions / Adjustments | 1,722.3 | 53.2 | 12.7 | 99.5 | 418.6 | 2,306.3 | |||||||||||||||||||||||||||||
Credits / Payments | (1,788.9) | (44.5) | (10.5) | (102.4) | (392.5) | (2,338.8) | |||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 169.2 | $ | 36.3 | $ | 73.7 | $ | 31.8 | $ | 147.7 | $ | 458.7 |
Year Ended | |||||||||||
December 31,
2019 |
|||||||||||
Volatility | 30.0 | % | |||||||||
Rate of return | 7.92 | % |
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS | PAGE NO. | |||||||
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21 | ||||||||
22 |
Subsequent Events
|
|||||||
Valuation of Goodwill for the RX U.S., BCS, and Oral Care International Reporting Units
|
||||||||
Description of the Matter |
At December 31, 2020, the Company’s goodwill was $3,768.8 million. As discussed in Note 1 of the consolidated financial statements, goodwill is not amortized but rather is tested for impairment at least annually at the reporting unit level. The Company’s goodwill is initially assigned to its reporting units as of the acquisition date. The Company recorded goodwill impairment charges of $346.8 million for the year ended December 31, 2020 in the RX U.S. reporting unit.
Auditing management’s goodwill impairment tests was complex and highly judgmental due to the significant measurement uncertainty in determining the fair value of the reporting units. In particular, the fair value estimates for the RX U.S., Branded Consumer Self-Care (BCS) and Oral Care International reporting units were sensitive to significant assumptions such as revenue growth, operating margins, and discount rate, which are affected by expected future market or economic conditions. |
|||||||
How We Addressed the Matter in Our Audit
|
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment assessment process. For example, we tested controls over the Company’s forecast process as well as controls over management’s review of the significant assumptions discussed above in estimating the fair values of the reporting units.
To test the fair value of the Company’s reporting units, our audit procedures included, among others, assessing methodologies used and testing the significant assumptions discussed above as well as the completeness and accuracy of the underlying data used by the Company. For example, we compared the significant assumptions used by management to current industry and economic trends, changes in the Company’s business model, customer base or product mix and other relevant factors. We performed sensitivity analyses of the significant assumptions to evaluate the change in the fair value of the reporting unit resulting from changes in the assumptions. We also reviewed the reconciliation of the fair value of the reporting units to the market capitalization of the Company and evaluated the implied control premium. We also assessed the historical accuracy of the significant assumptions used by management to determine the fair value of its reporting units. The evaluation of the Company’s methodology and significant assumptions was performed with the assistance of our valuation specialists. |
Uncertain Tax Positions
|
||||||||
Description of the Matter |
As described in Note 15 to the consolidated financial statements, the Company operates in multiple jurisdictions with complex tax policy and regulatory environments and establishes reserves for uncertain tax positions in accordance with the accounting guidance governing uncertainty in income taxes. Uncertainty in a tax position may arise because tax laws are subject to interpretation. The Company uses significant judgment to (1) determine whether, based on the technical merits, a tax position is more likely than not to be sustained and (2) measure the amount of tax benefit that qualifies for recognition. At December 31, 2020, the Company had liabilities of $396.0 million, excluding interest and penalties, relating to uncertain tax positions.
Auditing the measurement of the Company’s uncertain tax positions was challenging because the evaluation of whether a tax position is more likely than not to be sustained and the measurement of the benefit of various tax positions can be complex, involves significant judgment, and is based on interpretations of tax laws and legal rulings. |
|||||||
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s accounting process for uncertain tax positions. For example, we tested controls over management’s identification of uncertain tax positions and its application of the recognition and measurement principles for uncertain tax positions.
Our audit procedures included, among others, assessing the Company’s correspondence with the relevant tax authorities and evaluating income tax opinions or other third-party advice obtained by the Company. To test the Company’s assessment and measurement of uncertain tax positions, we involved our tax professionals to assess whether the uncertain tax positions identified by the Company are more-likely-than-not to be sustained upon audit and, if so, to assist in testing the assumptions made by the Company in measuring the amount of tax benefit that qualifies for recognition. We also used our knowledge of, and experience with, the application of domestic and international income tax laws by the relevant income tax authorities to evaluate the Company’s assessments of whether the uncertain tax position is more-likely-than-not to be sustained and, if so, the potential outcomes that could occur upon an audit by a taxing authority. We tested the completeness and accuracy of the data and calculations used to determine the amount of tax benefit to recognize. We also evaluated the adequacy of the Company’s disclosures to the consolidated financial statements in relation to these matters. |
Chargebacks and Product Returns
|
||||||||
Description of the Matter |
As described in Note 1 to the consolidated financial statements under the caption “Revenue,” net product sales include estimates of variable consideration for which accruals and allowances have been established. Variable consideration for product sales include chargebacks, which are recorded as Accrued customer programs, and product returns, which are recorded as a reduction to Accounts receivable.
Auditing the chargeback liability and product returns reserve was challenging because of the subjectivity of certain assumptions required to estimate these amounts. In particular, the accrual for chargebacks includes estimates for outstanding claims that have occurred but for which the related claim has not yet been paid and for future claims that will be made when the wholesaler inventory is sold to the indirect customer. These estimates are based on historical chargeback experience and estimated wholesaler inventory levels. In addition, the estimate of the product returns reserve is based on historical experience with actual returns and considers other factors such as levels of inventory in the distribution channel, product dating and expiration period, size and maturity of the market prior to a product launch, entrance into the market of additional competition, and changes in formulations. |
|||||||
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company’s controls addressing the risks of material misstatement for chargebacks and product returns. This included, for example, testing controls over management’s review of the significant assumptions used to calculate the chargeback liabilities and product returns reserves discussed above.
To test the Company’s chargeback liability and product returns reserves, we performed audit procedures that included, among others, testing the accuracy and completeness of the underlying data used in the calculations and evaluating the significant assumptions used by management to estimate its reserves. We also tested the Company's retrospective review of the accuracy of the reserves for product returns, compared the results of the retrospective review to the current year and performed analytical procedures, based on Company and external data sources, to evaluate the completeness of the reserves. |
|||||||
Year Ended | |||||||||||||||||
December 31, 2020 | December 31, 2019 |
December 31,
2018 |
|||||||||||||||
Net sales | $ | 5,063.3 | $ | 4,837.4 | $ | 4,731.7 | |||||||||||
Cost of sales | 3,248.1 | 3,064.1 | 2,900.2 | ||||||||||||||
Gross profit | 1,815.2 | 1,773.3 | 1,831.5 | ||||||||||||||
Operating expenses | |||||||||||||||||
Distribution | 100.4 | 96.1 | 94.2 | ||||||||||||||
Research and development | 177.7 | 187.4 | 218.6 | ||||||||||||||
Selling | 579.1 | 567.0 | 595.7 | ||||||||||||||
Administration | 496.0 | 503.0 | 435.9 | ||||||||||||||
Impairment charges | 346.8 | 184.5 | 224.4 | ||||||||||||||
Restructuring | 3.5 | 26.3 | 21.0 | ||||||||||||||
Other operating expense (income) | (3.7) | 4.2 | 5.2 | ||||||||||||||
Total operating expenses | 1,699.8 | 1,568.5 | 1,595.0 | ||||||||||||||
Operating income | 115.4 | 204.8 | 236.5 | ||||||||||||||
Change in financial assets | 96.4 | (22.1) | (188.7) | ||||||||||||||
Interest expense, net | 131.2 | 121.7 | 128.0 | ||||||||||||||
Other (income) expense, net
|
17.2 | (66.0) | 6.1 | ||||||||||||||
Loss on extinguishment of debt | 20.0 | 0.2 | 0.5 | ||||||||||||||
Income (loss) before income taxes | (149.4) | 171.0 | 290.6 | ||||||||||||||
Income tax expense | 13.2 | 24.9 | 159.6 | ||||||||||||||
Net income (loss) | $ | (162.6) | $ | 146.1 | $ | 131.0 | |||||||||||
Earnings (loss) per share
|
|||||||||||||||||
Basic | $ | (1.19) | $ | 1.07 | $ | 0.95 | |||||||||||
Diluted | $ | (1.19) | $ | 1.07 | $ | 0.95 | |||||||||||
Weighted-average shares outstanding | |||||||||||||||||
Basic | 136.1 | 136.0 | 137.8 | ||||||||||||||
Diluted | 136.1 | 136.5 | 138.3 | ||||||||||||||
Year Ended | |||||||||||||||||
December 31, 2020 |
December 31,
2019 |
December 31,
2018 |
|||||||||||||||
Net income (loss) | $ | (162.6) | $ | 146.1 | $ | 131.0 | |||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Foreign currency translation adjustments | 274.4 | 28.4 | (156.1) | ||||||||||||||
Change in fair value of derivative financial instruments | (13.4) | 28.2 | (5.7) | ||||||||||||||
Change in post-retirement and pension liability | (5.4) | (1.8) | (5.7) | ||||||||||||||
Other comprehensive income (loss), net of tax | 255.6 | 54.8 | (167.5) | ||||||||||||||
Comprehensive income (loss) | $ | 93.0 | $ | 200.9 | $ | (36.5) |
December 31,
2020 |
December 31,
2019 |
||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 641.5 | $ | 354.3 | |||||||
Accounts receivable, net of allowance for credit losses of $7.6 and $6.7, respectively
|
1,054.2 | 1,243.2 | |||||||||
Inventories | 1,200.2 | 967.3 | |||||||||
Prepaid expenses and other current assets | 237.6 | 165.8 | |||||||||
Total current assets | 3,133.5 | 2,730.6 | |||||||||
Property, plant and equipment, net | 996.0 | 902.8 | |||||||||
Operating lease assets | 186.0 | 129.9 | |||||||||
Goodwill and indefinite-lived intangible assets | 3,783.9 | 4,185.5 | |||||||||
Definite-lived intangible assets, net | 2,974.3 | 2,921.2 | |||||||||
Deferred income taxes | 44.2 | 5.4 | |||||||||
Other non-current assets | 370.5 | 426.0 | |||||||||
Total non-current assets | 8,354.9 | 8,570.8 | |||||||||
Total assets | $ | 11,488.4 | $ | 11,301.4 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Accounts payable | $ | 543.8 | $ | 520.2 | |||||||
Payroll and related taxes | 175.2 | 156.4 | |||||||||
Accrued customer programs | 365.9 | 394.4 | |||||||||
Other accrued liabilities | 250.3 | 229.2 | |||||||||
Accrued income taxes | 9.0 | 32.2 | |||||||||
Current indebtedness | 37.8 | 3.4 | |||||||||
Total current liabilities | 1,382.0 | 1,335.8 | |||||||||
Long-term debt, less current portion | 3,528.3 | 3,365.8 | |||||||||
Deferred income taxes | 279.3 | 280.6 | |||||||||
Other non-current liabilities | 643.7 | 515.1 | |||||||||
Total non-current liabilities | 4,451.3 | 4,161.5 | |||||||||
Total liabilities | 5,833.3 | 5,497.3 | |||||||||
Commitments and contingencies - Refer to Note 17 | |||||||||||
Shareholders’ equity | |||||||||||
Controlling interests: | |||||||||||
Preferred shares, $0.0001 par value per share, 10 shares authorized
|
— | — | |||||||||
Ordinary shares, €0.001 par value per share, 10,000 shares authorized
|
7,118.2 | 7,359.9 | |||||||||
Accumulated other comprehensive income | 395.0 | 139.4 | |||||||||
Retained earnings (accumulated deficit) | (1,858.1) | (1,695.5) | |||||||||
Total controlling interests | 5,655.1 | 5,803.8 | |||||||||
Noncontrolling interest | — | 0.3 | |||||||||
Total shareholders’ equity | 5,655.1 | 5,804.1 | |||||||||
Total liabilities and shareholders' equity | $ | 11,488.4 | $ | 11,301.4 | |||||||
Supplemental Disclosures of Balance Sheet Information | |||||||||||
Preferred shares, issued and outstanding
|
— | — | |||||||||
Ordinary shares, issued and outstanding
|
133.1 | 136.1 |
Year Ended | |||||||||||||||||
December 31,
2020 |
December 31, 2019 |
December 31,
2018 |
|||||||||||||||
Cash Flows From (For) Operating Activities | |||||||||||||||||
Net income (loss) | $ | (162.6) | $ | 146.1 | $ | 131.0 | |||||||||||
Adjustments to derive cash flows: | |||||||||||||||||
Depreciation and amortization | 384.8 | 396.5 | 423.6 | ||||||||||||||
Loss (Gain) on sale of business | 20.9 | (71.7) | — | ||||||||||||||
Share-based compensation | 58.5 | 52.2 | 37.7 | ||||||||||||||
Impairment charges | 346.8 | 184.5 | 224.4 | ||||||||||||||
Asset abandonments | — | 11.0 | — | ||||||||||||||
Change in financial assets | 96.4 | (22.1) | (188.7) | ||||||||||||||
Loss on extinguishment of debt | 20.0 | 0.2 | 0.5 | ||||||||||||||
Restructuring charges | 3.5 | 26.3 | 21.0 | ||||||||||||||
Deferred income taxes | (54.5) | (43.9) | (17.9) | ||||||||||||||
Amortization of debt premium | (2.4) | (4.4) | (8.1) | ||||||||||||||
Other non-cash adjustments, net | (6.0) | 26.6 | (11.1) | ||||||||||||||
Subtotal | 705.4 | 701.3 | 612.4 | ||||||||||||||
Increase (decrease) in cash due to: | |||||||||||||||||
Accounts receivable | 168.9 | (140.7) | 21.0 | ||||||||||||||
Inventories | (170.6) | (67.0) | (98.6) | ||||||||||||||
Accounts payable | (2.7) | 17.0 | 28.8 | ||||||||||||||
Payroll and related taxes | 10.8 | (3.7) | (34.5) | ||||||||||||||
Accrued customer programs | (43.3) | (48.6) | 25.5 | ||||||||||||||
Accrued liabilities | (23.1) | (23.2) | (20.9) | ||||||||||||||
Accrued income taxes | (7.0) | (74.5) | 68.1 | ||||||||||||||
Other, net | (2.2) | 27.2 | (8.8) | ||||||||||||||
Subtotal | (69.2) | (313.5) | (19.4) | ||||||||||||||
Net cash from (for) operating activities | 636.2 | 387.8 | 593.0 | ||||||||||||||
Cash Flows From (For) Investing Activities | |||||||||||||||||
Proceeds from royalty rights | 4.1 | 2.9 | 13.7 | ||||||||||||||
Acquisitions of businesses, net of cash acquired | (168.5) | (747.7) | — | ||||||||||||||
Asset acquisitions | (35.2) | (149.1) | (35.6) | ||||||||||||||
Purchase of equity method investment | (15.0) | — | — | ||||||||||||||
Purchase of investment securities | — | — | (7.5) | ||||||||||||||
Proceeds from the Royalty Pharma contingent milestone | — | 250.0 | — | ||||||||||||||
Additions to property, plant and equipment | (170.4) | (137.7) | (102.6) | ||||||||||||||
Net proceeds from sale of business | 187.8 | 182.5 | 5.2 | ||||||||||||||
Other investing, net | 9.4 | 3.0 | — | ||||||||||||||
Net cash from (for) investing activities | (187.8) | (596.1) | (126.8) | ||||||||||||||
Cash Flows From (For) Financing Activities | |||||||||||||||||
Borrowings (repayments) of revolving credit agreements and other financing, net | (3.9) | 0.5 | (4.4) | ||||||||||||||
Issuances of long-term debt | 743.8 | 600.0 | 431.0 | ||||||||||||||
Payments on long-term debt | (590.0) | (476.0) | (482.5) | ||||||||||||||
Premiums on early debt retirement | (19.0) | — | — | ||||||||||||||
Deferred financing fees | (6.7) | (1.0) | (2.4) | ||||||||||||||
Issuance of ordinary shares | — | 0.9 | 1.3 | ||||||||||||||
Repurchase of ordinary shares | (164.2) | — | (400.0) | ||||||||||||||
Cash dividends | (123.9) | (112.4) | (104.9) | ||||||||||||||
Other financing, net | (17.2) | (10.2) | (10.0) | ||||||||||||||
Net cash from (for) financing activities | (181.1) | 1.8 | (571.9) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 19.9 | 9.7 | (21.9) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 287.2 | (196.8) | (127.6) | ||||||||||||||
Cash and cash equivalents, beginning of period | 354.3 | 551.1 | 678.7 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 641.5 | $ | 354.3 | $ | 551.1 | |||||||||||
Year Ended | |||||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
|||||||||||||||
Supplemental Disclosures of Cash Flow Information | |||||||||||||||||
Cash paid/received during the year for: | |||||||||||||||||
Interest paid | $ | 145.8 | $ | 136.8 | $ | 133.8 | |||||||||||
Interest received | $ | 12.1 | $ | 15.1 | $ | 5.0 | |||||||||||
Income taxes paid | $ | 81.2 | $ | 136.2 | $ | 144.2 | |||||||||||
Income taxes refunded | $ | 38.3 | $ | 28.0 | $ | 5.1 |
Ordinary Shares
Issued |
Accumulated
Other Comprehensive Income |
Retained
Earnings (Accumulated Deficit) |
Total | ||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||
Balance at December 31, 2017 | 140.8 | $ | 7,892.9 | $ | 253.1 | $ | (1,975.5) | $ | 6,170.5 | ||||||||||||||||||||
Adoption of new accounting standards | — | — | (1.0) | 6.2 | 5.2 | ||||||||||||||||||||||||
Net income | — | — | — | 131.0 | 131.0 | ||||||||||||||||||||||||
Other comprehensive loss | — | — | (167.5) | — | (167.5) | ||||||||||||||||||||||||
Issuance of ordinary shares under: | |||||||||||||||||||||||||||||
Stock options | 0.1 | 1.3 | — | — | 1.3 | ||||||||||||||||||||||||
Restricted stock plan | 0.2 | — | — | — | — | ||||||||||||||||||||||||
Compensation for stock options | — | 8.1 | — | — | 8.1 | ||||||||||||||||||||||||
Compensation for restricted stock | — | 29.6 | — | — | 29.6 | ||||||||||||||||||||||||
Cash dividends, $0.76 per share
|
— | (104.9) | — | — | (104.9) | ||||||||||||||||||||||||
Shares withheld for payment of employees'
withholding tax liability |
(0.1) | (5.3) | — | — | (5.3) | ||||||||||||||||||||||||
Repurchases of ordinary shares | (5.1) | (400.0) | — | — | (400.0) | ||||||||||||||||||||||||
Balance at December 31, 2018 | 135.9 | 7,421.7 | 84.6 | (1,838.3) | 5,668.0 | ||||||||||||||||||||||||
Adoption of new accounting standards | — | — | — | (3.3) | (3.3) | ||||||||||||||||||||||||
Net income | — | — | — | 146.1 | 146.1 | ||||||||||||||||||||||||
Other comprehensive income | — | — | 54.8 | — | 54.8 | ||||||||||||||||||||||||
Issuance of ordinary shares under: | |||||||||||||||||||||||||||||
Stock options | — | 0.9 | — | — | 0.9 | ||||||||||||||||||||||||
Restricted stock plan | 0.3 | — | — | — | — | ||||||||||||||||||||||||
Compensation for stock options | — | 4.7 | — | — | 4.7 | ||||||||||||||||||||||||
Compensation for restricted stock | — | 50.6 | — | — | 50.6 | ||||||||||||||||||||||||
Cash dividends, $0.82 per share
|
— | (112.4) | — | — | (112.4) | ||||||||||||||||||||||||
Shares withheld for payment of employees'
withholding tax liability |
(0.1) | (5.6) | — | — | (5.6) | ||||||||||||||||||||||||
Balance at December 31, 2019 | 136.1 | 7,359.9 | 139.4 | (1,695.5) | 5,803.8 | ||||||||||||||||||||||||
Net loss | — | — | — | (162.6) | (162.6) | ||||||||||||||||||||||||
Other comprehensive income | — | — | 255.6 | — | 255.6 | ||||||||||||||||||||||||
Issuance of ordinary shares under: | |||||||||||||||||||||||||||||
Restricted stock plan | 0.6 | — | — | — | — | ||||||||||||||||||||||||
Compensation for stock options | — | 2.0 | — | — | 2.0 | ||||||||||||||||||||||||
Compensation for restricted stock | — | 56.5 | — | — | 56.5 | ||||||||||||||||||||||||
Cash dividends, $0.90 per share
|
— | (123.9) | — | — | (123.9) | ||||||||||||||||||||||||
Repurchases of ordinary shares | (3.4) | (164.2) | — | — | (164.2) | ||||||||||||||||||||||||
Shares withheld for payment of employees'
withholding tax liability |
(0.2) | (10.7) | — | — | (10.7) | ||||||||||||||||||||||||
Purchase of subsidiary's minority interest | — | (1.4) | — | — | (1.4) | ||||||||||||||||||||||||
Balance at December 31, 2020 | 133.1 | $ | 7,118.2 | $ | 395.0 | $ | (1,858.1) | $ | 5,655.1 |
December 31,
2020 |
December 31,
2019 |
||||||||||
Land | $ | 55.6 | $ | 50.4 | |||||||
Buildings | 607.4 | 578.7 | |||||||||
Machinery and equipment | 1,342.4 | 1,195.8 | |||||||||
Gross property, plant and equipment | 2,005.4 | 1,824.9 | |||||||||
Less: accumulated depreciation | (1,009.4) | (922.1) | |||||||||
Property, plant and equipment, net | $ | 996.0 | $ | 902.8 |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31, 2019 |
December 31,
2018 |
||||||||||||
$ | 130.5 | $ | 142.8 | $ | 159.2 |
Recently Issued Accounting Standards Not Yet Adopted | ||||||||||||||||||||
Standard | Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | |||||||||||||||||
ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes | This guidance enhances and simplifies various aspects of the income tax accounting guidance in ASC 740. | January 1, 2021 |
As of January 1, 2021 we adopted ASU 2019-12, which could have a material impact on the Consolidated Financial Statements due to the sale of the RX business and we are currently assessing the impact.
|
Year Ended | |||||||||||
December 31,
2020 |
|||||||||||
Beginning balance | $ | 6.7 | |||||||||
Provision for credit losses, net | 2.9 | ||||||||||
Receivables written-off | (2.3) | ||||||||||
Recoveries collected | — | ||||||||||
Currency translation adjustment | 0.3 | ||||||||||
Ending balance | $ | 7.6 |
Year Ended | |||||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
|||||||||||||||
U.S. | $ | 3,441.1 | $ | 3,225.6 | $ | 3,098.3 | |||||||||||
Europe(2)
|
1,350.6 | 1,335.8 | 1,347.6 | ||||||||||||||
All other countries(3)
|
271.6 | 276.0 | 285.8 | ||||||||||||||
Total net sales | $ | 5,063.3 | $ | 4,837.4 | $ | 4,731.7 |
Year Ended | |||||||||||||||||
December 31, 2020 | December 31, 2019 |
December 31,
2018 |
|||||||||||||||
CSCA(1)
|
|||||||||||||||||
Upper respiratory | $ | 489.5 | $ | 515.2 | $ | 492.5 | |||||||||||
Digestive health | 452.6 | 413.9 | 403.6 | ||||||||||||||
Pain and sleep-aids | 424.7 | 383.6 | 388.1 | ||||||||||||||
Nutrition | 387.4 | 394.4 | 432.4 | ||||||||||||||
Healthy lifestyle | 348.5 | 352.4 | 333.6 | ||||||||||||||
Oral self-care | 284.6 | 106.4 | — | ||||||||||||||
Skincare and personal hygiene | 191.8 | 182.9 | 164.1 | ||||||||||||||
Vitamins, minerals, and supplements | 27.0 | 28.6 | 26.1 | ||||||||||||||
Animal health | — | 43.7 | 93.9 | ||||||||||||||
Other CSCA(2)
|
86.9 | 66.6 | 77.3 | ||||||||||||||
Total CSCA | 2,693.0 | 2,487.7 | 2,411.6 | ||||||||||||||
CSCI | |||||||||||||||||
Skincare and personal hygiene | 351.8 | 371.6 | 396.5 | ||||||||||||||
Upper respiratory | 255.1 | 276.8 | 276.5 | ||||||||||||||
Vitamins, minerals, and supplements | 201.0 | 180.2 | 187.2 | ||||||||||||||
Pain and sleep-aids | 190.4 | 167.9 | 170.0 | ||||||||||||||
Healthy lifestyle | 165.4 | 173.8 | 180.7 | ||||||||||||||
Oral self-care | 97.8 | 51.2 | 8.9 | ||||||||||||||
Digestive health | 26.5 | 27.1 | 29.5 | ||||||||||||||
Other CSCI(3)
|
107.2 | 133.6 | 150.0 | ||||||||||||||
Total CSCI | 1,395.2 | 1,382.2 | 1,399.3 | ||||||||||||||
RX | 975.1 | 967.5 | 920.8 | ||||||||||||||
Total net sales | $ | 5,063.3 | $ | 4,837.4 | $ | 4,731.7 |
Balance Sheet Location |
December 31,
2020 |
December 31,
2019 |
|||||||||||||||||||||
Short-term contract assets | Prepaid expenses and other current assets | $ | 19.7 | $ | 26.3 |
Oral Care Assets of High Ridge Brands (Dr. Fresh) | ||||||||
Purchase price paid | $ | 106.2 | ||||||
Assets acquired: | ||||||||
Accounts receivable | $ | 13.1 | ||||||
Inventories | 22.2 | |||||||
Prepaid expenses and other current assets | 0.4 | |||||||
Property, plant and equipment, net | 0.7 | |||||||
Operating lease assets | 2.6 | |||||||
Goodwill | 17.2 | |||||||
Distribution and license agreements and supply agreements | $ | 2.2 | ||||||
Developed product technology, formulations, and product rights | 0.1 | |||||||
Customer relationships and distribution networks | 20.6 | |||||||
Trademarks, trade names, and brands | 43.2 | |||||||
Total intangible assets | $ | 66.1 | ||||||
Total assets | $ | 122.3 | ||||||
Liabilities assumed: | ||||||||
Accounts payable | $ | 6.1 | ||||||
Other accrued liabilities | 3.8 | |||||||
Payroll and related taxes | 0.7 | |||||||
Accrued customer programs | 3.0 | |||||||
Other non-current liabilities | 2.5 | |||||||
Total liabilities | $ | 16.1 | ||||||
Net assets acquired | $ | 106.2 |
Ranir | ||||||||
Purchase price paid | $ | 759.2 | ||||||
Assets acquired: | ||||||||
Cash and cash equivalents | $ | 11.5 | ||||||
Accounts receivable | 40.6 | |||||||
Inventories | 59.0 | |||||||
Prepaid expenses and other current assets | 4.0 | |||||||
Property, plant and equipment, net | 40.8 | |||||||
Operating lease assets | 3.7 | |||||||
Goodwill | 292.7 | |||||||
Definite-lived intangibles:
|
||||||||
Developed product technology, formulations, and product rights | $ | 48.6 | ||||||
Customer relationships and distribution networks | 260.0 | |||||||
Trademarks, trade names, and brands | 41.0 | |||||||
Indefinite-lived intangibles:
|
||||||||
In-process research and development | 39.7 | |||||||
Total intangible assets | $ | 389.3 | ||||||
Other non-current assets | 2.8 | |||||||
Total assets | $ | 844.4 | ||||||
Liabilities assumed: | ||||||||
Accounts payable | $ | 17.6 | ||||||
Other accrued liabilities | 7.7 | |||||||
Payroll and related taxes | 5.5 | |||||||
Accrued customer programs | 5.7 | |||||||
Deferred income taxes | 45.9 | |||||||
Other non-current liabilities | 2.8 | |||||||
Total liabilities | $ | 85.2 | ||||||
Net assets acquired | $ | 759.2 |
Year Ended | |||||||||||||||||||||||||||||||||||
(Unaudited) | December 31, 2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||||||||||||||||||||||
Net sales | $ | 5,111.5 | $ | 5,112.3 | $ | 5,018.9 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (148.6) | $ | 172.4 | $ | 96.8 |
CSCA |
CSCI(1)
|
RX(2)
|
Total | ||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 1,713.7 | $ | 1,151.3 | $ | 1,114.8 | $ | 3,979.8 | |||||||||||||||||||||||||||
Impairments | — | — | (109.2) | (109.2) | |||||||||||||||||||||||||||||||
Business divestitures | (42.2) | — | — | (42.2) | |||||||||||||||||||||||||||||||
Business acquisitions | 223.0 | 68.1 | — | 291.1 | |||||||||||||||||||||||||||||||
Currency translation adjustments | 4.6 | (15.7) | 8.3 | (2.8) | |||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 1,899.1 | 1,203.7 | 1,013.9 | 4,116.7 | |||||||||||||||||||||||||||||||
Impairments | — | — | (346.8) | (346.8) | |||||||||||||||||||||||||||||||
Business divestitures | — | (115.6) | — | (115.6) | |||||||||||||||||||||||||||||||
Business acquisitions | 14.8 | 7.3 | — | 22.1 | |||||||||||||||||||||||||||||||
Purchase accounting adjustments | (10.4) | 12.0 | — | 1.6 | |||||||||||||||||||||||||||||||
Currency translation adjustments | 1.5 | 83.3 | 6.0 | 90.8 | |||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 1,905.0 | $ | 1,190.7 | $ | 673.1 | $ | 3,768.8 |
Year Ended | |||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Gross |
Accumulated
Amortization |
Gross |
Accumulated
Amortization |
||||||||||||||||||||||||||||||||
Indefinite-lived intangibles:
|
|||||||||||||||||||||||||||||||||||
Trademarks, trade names, and brands | $ | 4.3 | $ | — | $ | 18.8 | $ | — | |||||||||||||||||||||||||||
In-process research and development | 10.8 | — | 50.0 | — | |||||||||||||||||||||||||||||||
Total indefinite-lived intangibles | $ | 15.1 | $ | — | $ | 68.8 | $ | — | |||||||||||||||||||||||||||
Definite-lived intangibles:
|
|||||||||||||||||||||||||||||||||||
Distribution and license agreements and supply agreements | $ | 126.5 | $ | 87.5 | $ | 126.7 | $ | 81.1 | |||||||||||||||||||||||||||
Developed product technology, formulations, and product rights | 1,363.6 | 765.9 | 1,392.8 | 755.3 | |||||||||||||||||||||||||||||||
Customer relationships and distribution networks | 1,934.6 | 836.4 | 1,805.6 | 671.4 | |||||||||||||||||||||||||||||||
Trademarks, trade names, and brands | 1,586.6 | 347.2 | 1,353.5 | 250.1 | |||||||||||||||||||||||||||||||
Non-compete agreements | 5.2 | 5.2 | 6.5 | 6.0 | |||||||||||||||||||||||||||||||
Total definite-lived intangibles | $ | 5,016.5 | $ | 2,042.2 | $ | 4,685.1 | $ | 1,763.9 | |||||||||||||||||||||||||||
Total intangible assets | $ | 5,031.6 | $ | 2,042.2 | $ | 4,753.9 | $ | 1,763.9 |
Amortizable Intangible Asset Category | Remaining Weighted-Average Useful Life (Years) | |||||||
Distribution and license agreements and supply agreements | 7 | |||||||
Developed product technology, formulations, and product rights | 12 | |||||||
Customer relationships and distribution networks | 16 | |||||||
Trademarks, trade names, and brands | 16 | |||||||
Year | Amount | |||||||
2021 | $ | 282.2 | ||||||
2022 | 252.7 | |||||||
2023 | 237.3 | |||||||
2024 | 225.4 | |||||||
2025 | 214.8 | |||||||
Thereafter | 1,761.9 |
Year Ended | |||||||||||
December 31,
2020 |
December 31,
2019 |
||||||||||
Finished goods | $ | 679.4 | $ | 530.3 | |||||||
Work in process | 221.7 | 186.9 | |||||||||
Raw materials | 299.1 | 250.1 | |||||||||
Total inventories | $ | 1,200.2 | $ | 967.3 |
Year Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities
|
$ | 2.5 | $ | — | $ | — | $ | 6.6 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts
|
— | 21.5 | — | — | 4.3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swap
|
— | 6.3 | — | — | 26.3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Funds associated with Israeli severance liability
|
— | 15.7 | — | — | 14.6 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Royalty Pharma contingent milestone | — | — | — | — | — | 95.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 2.5 | $ | 43.5 | $ | — | $ | 6.6 | $ | 45.2 | $ | 95.3 | ||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | $ | — | $ | 8.2 | $ | — | $ | — | $ | 8.4 | $ | — | ||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration payments
|
— | — | 13.2 | — | — | 11.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | 8.2 | $ | 13.2 | $ | — | $ | 8.4 | $ | 11.9 | ||||||||||||||||||||||||||||||||||||||||||||
Measured at fair value on a non-recurring basis: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill(1)
|
$ | — | $ | — | $ | 673.1 | $ | — | $ | — | $ | 1,013.1 | ||||||||||||||||||||||||||||||||||||||||||||
Definite-lived intangible assets(2)
|
— | — | — | — | — | 23.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | — | $ | — | $ | 673.1 | $ | — | $ | — | $ | 1,036.4 |
Year Ended | |||||||||||||||||||||||||||||
December 31,
2020 |
December 31,
2019 |
||||||||||||||||||||||||||||
Beginning balance | $ | 95.3 | $ | 323.2 | |||||||||||||||||||||||||
Payments received | — | (250.0) | |||||||||||||||||||||||||||
Change in fair value | (95.3) | 22.1 | |||||||||||||||||||||||||||
Ending balance | $ | — | $ | 95.3 |
Year Ended | |||||||||||
December 31,
2019 |
|||||||||||
Volatility | 30.0 | % | |||||||||
Rate of return | 7.92 | % |
Year Ended | |||||||||||||||||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
|||||||||||||||||||||||||||
Beginning balance | $ | 11.9 | $ | 15.3 | $ | 22.0 | |||||||||||||||||||||||
Changes in value | 1.3 | (1.4) | (1.5) | ||||||||||||||||||||||||||
Currency translation adjustments | — | — | (0.2) | ||||||||||||||||||||||||||
Settlements and other adjustments | — | (2.0) | (5.0) | ||||||||||||||||||||||||||
Ending balance | $ | 13.2 | $ | 11.9 | $ | 15.3 |
Twelve Months Ended | |||||||||||||||||
December 31, 2020 | |||||||||||||||||
Valuation Technique | Unobservable Input |
Range (Weighted Average)(1)
|
|||||||||||||||
Contingent consideration payments: sales-based milestones | Discounted cash flow | Projected royalties | $ | 36.6 | |||||||||||||
Projected year of payment of sales-based milestones | 2021 - 2036 (2027) | ||||||||||||||||
Discount rate | 26.0 | % |
Year Ended | |||||||||||||||||||||||
December 31,
2020 |
December 31,
2019 |
||||||||||||||||||||||
Level 1 | Level 2 | Level 1 | Level 2 | ||||||||||||||||||||
Public bonds | |||||||||||||||||||||||
Carrying value (excluding discount) | $ | 2,760.0 | $ | — | $ | 2,600.0 | $ | — | |||||||||||||||
Fair value | $ | 3,031.1 | $ | — | $ | 2,618.4 | $ | — | |||||||||||||||
Private placement note | |||||||||||||||||||||||
Carrying value (excluding premium) | $ | — | $ | 164.9 | $ | — | $ | 151.4 | |||||||||||||||
Fair value | $ | — | $ | 177.5 | $ | — | $ | 168.4 |
Year Ended | ||||||||||||||||||||||||||
Measurement Category | Balance Sheet Location |
December 31,
2020 |
December 31, 2019 | |||||||||||||||||||||||
Fair value method | Prepaid expenses and other current assets | $ | 2.5 | $ | 6.6 | |||||||||||||||||||||
Fair value method(1)
|
Other non-current assets | $ | 1.9 | $ | 2.3 | |||||||||||||||||||||
Equity method | Other non-current assets | $ | 69.8 | $ | 17.8 |
Year Ended | ||||||||||||||||||||||||||||||||||||||||||||
Measurement Category | Income Statement Location |
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||||||||||||||||||||||||||||||
Fair value method |
Other (income) expense, net
|
$ | 3.0 | $ | 4.9 | $ | 9.5 | |||||||||||||||||||||||||||||||||||||
Equity method |
Other (income) expense, net
|
$ | (3.0) | $ | (2.7) | $ | (2.7) |
Notional Amount | ||||||||||||||
December 31,
2020 |
December 31,
2019 |
|||||||||||||
Israeli Shekel (ILS) | $ | 436.5 | $ | 712.7 | ||||||||||
European Euro (EUR) | 312.6 | 157.6 | ||||||||||||
United States Dollar (USD) | 101.5 | 92.4 | ||||||||||||
British Pound (GBP) | 92.3 | 86.9 | ||||||||||||
Danish Krone (DKK) | 65.2 | 51.7 | ||||||||||||
Chinese Yuan (CNY) | 49.1 | 20.9 | ||||||||||||
Swedish Krona (SEK) | 41.2 | 42.0 | ||||||||||||
Canadian Dollar (CAD) | 36.8 | 41.3 | ||||||||||||
Polish Zloty (PLZ) | 21.8 | 21.5 | ||||||||||||
Mexican Peso (MPX) | 15.6 | 9.7 | ||||||||||||
Australian Dollar (AUD) | 11.3 | 1.2 | ||||||||||||
Switzerland Franc (CHF) | 8.2 | 4.1 | ||||||||||||
Norwegian Krone (NOK) | 7.9 | 6.6 | ||||||||||||
Romanian New Leu (RON) | 3.6 | 2.3 | ||||||||||||
Other | 6.2 | 6.3 | ||||||||||||
Total | $ | 1,209.8 | $ | 1,257.2 |
Asset Derivatives | |||||||||||||||||
Fair Value | |||||||||||||||||
Year Ended | |||||||||||||||||
Balance Sheet Location |
December 31,
2020 |
December 31,
2019 |
|||||||||||||||
Designated derivatives | |||||||||||||||||
Foreign currency forward contracts | Prepaid expenses and other current assets | $ | 13.2 | $ | 1.0 | ||||||||||||
Foreign currency forward contracts | Other non-current assets | 0.5 | — | ||||||||||||||
Cross-currency swap | Other non-current assets | 6.3 | 26.3 | ||||||||||||||
Total designated derivatives | $ | 20.0 | $ | 27.3 | |||||||||||||
Non-designated derivatives | |||||||||||||||||
Foreign currency forward contracts | Prepaid expenses and other current assets | $ | 7.8 | $ | 3.3 | ||||||||||||
Liability Derivatives | |||||||||||||||||
Fair Value | |||||||||||||||||
Year Ended | |||||||||||||||||
Balance Sheet Location |
December 31,
2020 |
December 31,
2019 |
|||||||||||||||
Designated derivatives | |||||||||||||||||
Foreign currency forward contracts | Other accrued liabilities | $ | 5.8 | $ | 4.7 | ||||||||||||
Non-designated derivatives | |||||||||||||||||
Foreign currency forward contracts | Other accrued liabilities | $ | 2.4 | $ | 3.7 | ||||||||||||
Year Ended | ||||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||
Instrument |
Amount of Gain/(Loss) Recorded in OCI(1)
|
Classification of Gain/(Loss) Reclassified from AOCI into Earnings | Amount of Gain/(Loss) Reclassified from AOCI into Earnings | Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing | Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing | |||||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||||||||||
Treasury locks | $ | — | Interest expense, net | $ | (0.1) | Interest expense, net | $ | — | ||||||||||||||||||||||||
Interest rate swap agreements | — | Interest expense, net | (1.8) | Interest expense, net | — | |||||||||||||||||||||||||||
Foreign currency forward contracts | 7.3 | Net sales | 0.2 | Net sales | 0.1 | |||||||||||||||||||||||||||
Cost of sales | 2.9 | Cost of sales | 1.1 | |||||||||||||||||||||||||||||
Other (income) expense, net | 0.5 | |||||||||||||||||||||||||||||||
$ | 7.3 | $ | 1.2 | $ | 1.7 | |||||||||||||||||||||||||||
Net investment hedges | ||||||||||||||||||||||||||||||||
Cross-currency swap | $ | (20.0) | Interest expense, net | $ | 6.6 | |||||||||||||||||||||||||||
Foreign currency forward contract | (11.2) | Interest expense, net | (0.1) | |||||||||||||||||||||||||||||
$ | (31.2) | $ | 6.5 |
Year Ended | ||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||
Instrument | Amount of Gain/(Loss) Recorded in OCI | Classification of Gain/(Loss) Reclassified from AOCI into Earnings | Amount of Gain/(Loss) Reclassified from AOCI into Earnings | Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing | Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing | |||||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||||||||||
Treasury locks | $ | — | Interest expense, net | $ | (0.1) | Interest expense, net | $ | — | ||||||||||||||||||||||||
Interest rate swap agreements | — | Interest expense, net | (1.8) | Interest expense, net | — | |||||||||||||||||||||||||||
Foreign currency forward contracts | (1.2) | Net sales | 2.5 | Net sales | (2.1) | |||||||||||||||||||||||||||
Cost of sales | 0.1 | Cost of sales | (1.5) | |||||||||||||||||||||||||||||
$ | (1.2) | $ | 0.7 | $ | (3.6) | |||||||||||||||||||||||||||
Net investment hedges | ||||||||||||||||||||||||||||||||
Cross-currency swap | $ | 31.2 | Interest expense, net | $ | 4.9 |
Year Ended | ||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Effective Portion | ||||||||||||||||||||
Instrument | Amount of Gain/(Loss) Recorded in OCI | Classification of Gain/(Loss) Reclassified from AOCI into Earnings | Amount of Gain/(Loss) Reclassified from AOCI into Earnings | |||||||||||||||||
Treasury locks | $ | — | Interest expense, net | $ | (0.1) | |||||||||||||||
Interest rate swap agreements | — | Interest expense, net | (1.8) | |||||||||||||||||
Foreign currency forward contracts | (9.1) | Net sales | 0.5 | |||||||||||||||||
Cost of sales | 1.9 | |||||||||||||||||||
Interest expense, net | (4.8) | |||||||||||||||||||
Other (income) expense, net
|
2.1 | |||||||||||||||||||
$ | (9.1) | $ | (2.2) |
Year Ended | ||||||||||||||||||||||||||
Non-Designated Derivatives | Income Statement Location |
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||||||||||||
Foreign currency forward contracts
|
Other (income) expense, net
|
$ | (10.0) | $ | (25.4) | $ | 7.6 | |||||||||||||||||||
Interest expense, net | 6.2 | 1.8 | (1.0) | |||||||||||||||||||||||
$ | (3.8) | $ | (23.6) | $ | 6.6 |
Year Ended | ||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||
Net Sales | Cost of Sales | Interest Expense, net | Other (Income) Expense, net | |||||||||||||||||||||||
Total amounts of income and expense line items presented on the Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded
|
$ | 5,063.3 | $ | 3,248.1 | $ | 131.2 | $ | 17.2 | ||||||||||||||||||
The effects of cash flow hedging: | ||||||||||||||||||||||||||
Gain (loss) on cash flow hedging relationships | ||||||||||||||||||||||||||
Foreign currency forward contracts | ||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | $ | 0.2 | $ | 2.9 | $ | — | $ | — | ||||||||||||||||||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | $ | 0.1 | $ | 1.1 | $ | — | $ | 0.5 | ||||||||||||||||||
Treasury locks | ||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | $ | — | $ | — | $ | (0.1) | $ | — | ||||||||||||||||||
Interest rate swap agreements | ||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | $ | — | $ | — | $ | (1.8) | $ | — | ||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||
Net Sales | Cost of Sales | Interest Expense, net | Other (Income) Expense, net | |||||||||||||||||||||||
Total amounts of income and expense line items presented on the Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded
|
$ | 4,837.4 | $ | 3,064.1 | $ | 121.7 | $ | (66.0) | ||||||||||||||||||
The effects of cash flow hedging: | ||||||||||||||||||||||||||
Gain (loss) on cash flow hedging relationships | ||||||||||||||||||||||||||
Foreign currency forward contracts | ||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | $ | 2.5 | $ | 0.1 | $ | — | $ | — | ||||||||||||||||||
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach | $ | (2.1) | $ | (1.5) | $ | — | $ | — | ||||||||||||||||||
Treasury locks | ||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | $ | — | $ | — | $ | (0.1) | $ | — | ||||||||||||||||||
Interest rate swap agreements | ||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from AOCI into earnings | $ | — | $ | — | $ | (1.8) | $ | — | ||||||||||||||||||
Assets | Balance Sheet Location |
December 31,
2020 |
December 31,
2019 |
|||||||||||||||||||||||
Operating | Operating lease assets | $ | 186.0 | $ | 129.9 | |||||||||||||||||||||
Finance | Other non-current assets | 31.0 | 27.6 | |||||||||||||||||||||||
Total | $ | 217.0 | $ | 157.5 | ||||||||||||||||||||||
Liabilities | Balance Sheet Location |
December 31,
2020 |
December 31,
2019 |
|||||||||||||||||||||||
Current | ||||||||||||||||||||||||||
Operating | Other accrued liabilities | $ | 34.0 | $ | 32.0 | |||||||||||||||||||||
Finance | Current indebtedness | 7.2 | 3.4 | |||||||||||||||||||||||
Non-Current | ||||||||||||||||||||||||||
Operating | Other non-current liabilities | 159.3 | 101.7 | |||||||||||||||||||||||
Finance | Long-term debt, less current portion | 20.8 | 21.1 | |||||||||||||||||||||||
Total | $ | 221.3 | $ | 158.2 |
Assets | Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating | Financing | Operating | Financing | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2020 |
December 31,
2019 |
December 31,
2020 |
December 31,
2019 |
December 31,
2020 |
December 31,
2019 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CSCA | $ | 22.8 | $ | 22.4 | $ | 16.7 | $ | 16.8 | $ | 23.2 | $ | 22.8 | $ | 17.0 | $ | 16.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CSCI | 34.4 | 41.6 | 5.9 | 5.8 | 35.2 | 42.4 | 2.5 | 2.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RX | 84.4 | 35.1 | 1.2 | 0.8 | 85.1 | 36.3 | 1.1 | 0.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated | 44.4 | 30.8 | 7.2 | 4.2 | 49.8 | 32.2 | 7.4 | 4.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 186.0 | $ | 129.9 | $ | 31.0 | $ | 27.6 | $ | 193.3 | $ | 133.7 | $ | 28.0 | $ | 24.5 |
Year Ended | ||||||||||||||||||||||||||||||||||||||
December 31,
2020 |
December 31,
2019 |
|||||||||||||||||||||||||||||||||||||
Operating leases(1)
|
$ | 43.4 | $ | 43.7 | ||||||||||||||||||||||||||||||||||
Finance leases | ||||||||||||||||||||||||||||||||||||||
Amortization | $ | 4.8 | $ | 3.2 | ||||||||||||||||||||||||||||||||||
Interest | 0.8 | 0.6 | ||||||||||||||||||||||||||||||||||||
Total finance leases | $ | 5.6 | $ | 3.8 |
Operating Leases | Finance Leases | Total | ||||||||||||||||||
2021 | $ | 40.0 | $ | 7.8 | $ | 47.8 | ||||||||||||||
2022 | 31.3 | 5.0 | 36.3 | |||||||||||||||||
2023 | 23.2 | 3.1 | 26.3 | |||||||||||||||||
2024 | 19.9 | 1.7 | 21.6 | |||||||||||||||||
2025 | 17.9 | 1.5 | 19.4 | |||||||||||||||||
After 2025 | 92.0 | 13.2 | 105.2 | |||||||||||||||||
Total lease payments | 224.3 | 32.3 | 256.6 | |||||||||||||||||
Less: Interest | 31.0 | 4.3 | 35.3 | |||||||||||||||||
Present value of lease liabilities | $ | 193.3 | $ | 28.0 | $ | 221.3 |
December 31,
2020 |
December 31,
2019 |
|||||||||||||||||||
Weighted-average remaining lease term (in years) | ||||||||||||||||||||
Operating leases | 10.00 | 6.56 | ||||||||||||||||||
Finance leases | 8.56 | 10.33 | ||||||||||||||||||
Weighted-average discount rate | ||||||||||||||||||||
Operating leases | 3.24 | % | 4.11 | % | ||||||||||||||||
Finance leases | 3.05 | % | 3.47 | % |
Year Ended | ||||||||||||||||||||
December 31,
2020 |
December 31,
2019 |
|||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||||||
Operating cash flows for operating leases | $ | 41.9 | $ | 43.9 | ||||||||||||||||
Operating cash flows for finance leases | $ | 0.8 | $ | 0.6 | ||||||||||||||||
Financing cash flows for finance leases | $ | 4.4 | $ | 3.0 | ||||||||||||||||
Leased assets obtained in exchange for new finance lease liabilities | $ | 7.6 | $ | 20.2 | ||||||||||||||||
Leased assets obtained in exchange for new operating lease liabilities | $ | 86.9 | $ | 10.3 |
Year Ended | |||||||||||||||||
December 31,
2020 |
December 31,
2019 |
||||||||||||||||
Term loan | |||||||||||||||||
2019 Term loan due August 15, 2022 | $ | 600.0 | $ | 600.0 | |||||||||||||
Notes and bonds | |||||||||||||||||
Coupon | Due | ||||||||||||||||
3.500% |
March 15, 2021(4)
|
$ | — | $ | 280.4 | ||||||||||||
3.500% |
December 15, 2021(1)
|
— | 309.6 | ||||||||||||||
* | 5.105% |
July 28, 2023(3)
|
164.9 | 151.4 | |||||||||||||
4.000% |
November 15, 2023(2)
|
215.6 | 215.6 | ||||||||||||||
3.900% |
December 15, 2024(1)
|
700.0 | 700.0 | ||||||||||||||
4.375% |
March 15, 2026(4)
|
700.0 | 700.0 | ||||||||||||||
3.150% |
June 15, 2030(5)
|
750.0 | — | ||||||||||||||
5.300% |
November 15, 2043(2)
|
90.5 | 90.5 | ||||||||||||||
4.900% |
December 15, 2044(1)
|
303.9 | 303.9 | ||||||||||||||
Total notes and bonds | 2,924.9 | 2,751.4 | |||||||||||||||
Other financing | 58.6 | 24.6 | |||||||||||||||
Unamortized premium (discount), net | (0.3) | 7.3 | |||||||||||||||
Deferred financing fees | (17.1) | (14.1) | |||||||||||||||
Total borrowings outstanding | 3,566.1 | 3,369.2 | |||||||||||||||
Current indebtedness | (37.8) | (3.4) | |||||||||||||||
Total long-term debt less current portion | $ | 3,528.3 | $ | 3,365.8 |
Payment Due | Amount | |||||||
2021 | $ | 37.9 | ||||||
2022 | 604.2 | |||||||
2023 | 384.7 | |||||||
2024 | 704.2 | |||||||
2025 | 4.2 | |||||||
Thereafter | 1,848.3 |
Year Ended | |||||||||||||||||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
|||||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||
Net income (loss) | $ | (162.6) | $ | 146.1 | $ | 131.0 | |||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Weighted average shares outstanding for basic EPS | 136.1 | 136.0 | 137.8 | ||||||||||||||||||||||||||
Dilutive effect of share-based awards* | — | 0.5 | 0.5 | ||||||||||||||||||||||||||
Weighted average shares outstanding for diluted EPS | 136.1 | 136.5 | 138.3 | ||||||||||||||||||||||||||
Anti-dilutive share-based awards excluded from computation of diluted EPS* | — | 1.5 | 1.4 |
Year Ended | |||||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
|||||||||||||||
Dividends paid (in millions) | $ | 123.9 | $ | 112.4 | $ | 104.9 | |||||||||||
Dividends paid (per share) | $ | 0.90 | $ | 0.82 | $ | 0.76 |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||
$ | 58.5 | $ | 52.2 | $ | 37.7 |
Number of
Options |
Weighted-Average
Exercise Price Per Share |
Weighted-
Average Remaining Term in Years |
Aggregate
Intrinsic Value |
||||||||||||||||||||
Options outstanding at December 31, 2018 | 1,534 | $ | 91.56 | ||||||||||||||||||||
Granted | — | $ | — | ||||||||||||||||||||
Exercised | (27) | $ | 34.30 | ||||||||||||||||||||
Forfeited or expired | (43) | $ | 99.58 | ||||||||||||||||||||
Options outstanding at December 31, 2019 | 1,464 | $ | 92.33 | 5.8 | $ | — | |||||||||||||||||
Granted | — | $ | — | ||||||||||||||||||||
Exercised | — | $ | — | ||||||||||||||||||||
Forfeited or expired | (120) | $ | 78.21 | ||||||||||||||||||||
Options outstanding December 31, 2020 | 1,344 | $ | 93.61 | 5.2 | $ | — | |||||||||||||||||
Options exercisable | 1,138 | $ | 96.34 | 4.8 | $ | — | |||||||||||||||||
Options expected to vest | 200 | $ | 78.51 | 7.1 | $ | — |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||
$ | — | $ | 0.5 | $ | 1.1 |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||
$ | — | $ | — | $ | 24.43 |
Year Ended | |||||||||||||||||
December 31,
2018 |
|||||||||||||||||
Dividend yield | 0.8 | % | |||||||||||||||
Volatility, as a percent | 31.2 | % | |||||||||||||||
Risk-free interest rate | 2.8 | % | |||||||||||||||
Expected life in years | 5.6 |
Number of
Non-vested Service- Based Share Units |
Weighted-
Average Grant Date Fair Value Per Share |
Weighted-
Average Remaining Term in Years |
Aggregate
Intrinsic Value |
||||||||||||||||||||
Non-vested service-based share units outstanding at December 31, 2018 | 728 | $ | 89.47 | ||||||||||||||||||||
Granted | 818 | $ | 47.48 | ||||||||||||||||||||
Vested | (269) | $ | 95.09 | ||||||||||||||||||||
Forfeited | (66) | $ | 71.03 | ||||||||||||||||||||
Non-vested service-based share units outstanding at December 31, 2019 | 1,211 | $ | 60.96 | 1.4 | $ | 62.5 | |||||||||||||||||
Granted | 823 | $ | 54.68 | ||||||||||||||||||||
Vested | (372) | $ | 69.64 | ||||||||||||||||||||
Forfeited | (42) | $ | 59.82 | ||||||||||||||||||||
Non-vested service-based share units outstanding at December 31, 2020 | 1,620 | $ | 55.82 | 1.0 | $ | 72.5 |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||
$ | 54.68 | $ | 47.48 | $ | 81.51 |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||
$ | 25.9 | $ | 25.6 | $ | 24.6 |
Number of
Non-vested Performance- Based Share Units |
Weighted-
Average Grant Date Fair Value Per Share |
Weighted-
Average Remaining Term in Years |
Aggregate
Intrinsic Value |
||||||||||||||||||||
Non-vested performance-based share units outstanding at December 31, 2018 | 442 | $ | 86.61 | ||||||||||||||||||||
Granted | 298 | $ | 47.54 | ||||||||||||||||||||
Vested | (68) | $ | 116.35 | ||||||||||||||||||||
Forfeited | (19) | $ | 72.83 | ||||||||||||||||||||
Non-vested performance-based share units outstanding at December 31, 2019 | 653 | $ | 61.44 | 1.5 | $ | 33.7 | |||||||||||||||||
Granted | 291 | $ | 55.08 | ||||||||||||||||||||
Vested | (184) | $ | 68.89 | ||||||||||||||||||||
Forfeited | (9) | $ | 70.60 | ||||||||||||||||||||
Non-vested performance-based share units outstanding at December 31, 2020 | 751 | $ | 57.13 | 1.4 | $ | 33.6 |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||
$ | 55.08 | $ | 47.54 | $ | 85.01 |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||
$ | 12.7 | $ | 8.0 | $ | 2.4 |
Year Ended | |||||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
|||||||||||||||
Dividend yield | 1.6 | % | 1.6 | % | 0.9 | % | |||||||||||
Volatility, as a percent | 40.4 | % | 40.2 | % | 35.3 | % | |||||||||||
Risk-free interest rate | 0.6 | % | 1.9 | % | 2.4 | % | |||||||||||
Expected life in years | 2.8 | 2.4 | 2.8 |
Number of
Non-vested RTSR Performance Share Units |
Weighted-
Average Grant Date Fair Value Per Share |
Weighted-
Average Remaining Term in Years* |
Aggregate
Intrinsic Value |
||||||||||||||||||||
Non-vested RTSR performance share units outstanding at December 31, 2018 | 62 | $ | 78.35 | ||||||||||||||||||||
Granted | 80 | $ | 55.61 | ||||||||||||||||||||
Vested | — | $ | — | ||||||||||||||||||||
Forfeited | — | $ | — | ||||||||||||||||||||
Non-vested RTSR performance share units outstanding at December 31, 2019 | 142 | $ | 63.02 | 1.5 | $ | 7.3 | |||||||||||||||||
Granted | 58 | $ | 67.72 | ||||||||||||||||||||
Vested | (24) | $ | 62.73 | ||||||||||||||||||||
Forfeited | — | $ | — | ||||||||||||||||||||
Non-vested RTSR performance share units outstanding at December 31, 2020 | 176 | $ | 65.04 | 1.5 | $ | 7.9 |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||
$ | 67.72 | $ | 55.61 | $ | 101.13 |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||
$ | 1.5 | $ | — | $ | — |
Fair Value of Derivative Financial Instruments, net of tax |
Foreign Currency Translation Adjustments (1)
|
Post-Retirement and Pension Liability Adjustments, net of tax | Total AOCI | ||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | (15.5) | $ | 104.5 | $ | (4.4) | $ | 84.6 | |||||||||||||||||||||
OCI before reclassifications | 26.8 | 28.4 | 4.9 | 60.1 | |||||||||||||||||||||||||
Amounts reclassified from AOCI | 1.4 | — | (6.7) | (5.3) | |||||||||||||||||||||||||
Other comprehensive income (loss) | 28.2 | 28.4 | (1.8) | 54.8 | |||||||||||||||||||||||||
Balance at December 31, 2019 | 12.7 | 132.9 | (6.2) | 139.4 | |||||||||||||||||||||||||
OCI before reclassifications | (12.2) | 228.0 | 1.8 | 217.6 | |||||||||||||||||||||||||
Amounts reclassified from AOCI | (1.2) | 46.4 | (7.2) | 38.0 | |||||||||||||||||||||||||
Other comprehensive income (loss) | (13.4) | 274.4 | (5.4) | 255.6 | |||||||||||||||||||||||||
Balance at December 31, 2020 | $ | (0.7) | $ | 407.3 | $ | (11.6) | $ | 395.0 |
Year Ended | |||||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
|||||||||||||||
Pre-tax income (loss): | |||||||||||||||||
Ireland | $ | (411.8) | $ | (300.3) | $ | (109.0) | |||||||||||
United States | 147.3 | (291.9) | (428.6) | ||||||||||||||
Other foreign | 115.1 | 763.2 | 828.2 | ||||||||||||||
Total pre-tax income (loss) | (149.4) | 171.0 | 290.6 | ||||||||||||||
Current provision (benefit) for income taxes: | |||||||||||||||||
Ireland | 2.7 | (2.2) | 22.7 | ||||||||||||||
United States | 17.6 | 51.0 | 66.4 | ||||||||||||||
Other foreign | 47.4 | 16.1 | 75.1 | ||||||||||||||
Subtotal | 67.7 | 64.9 | 164.2 | ||||||||||||||
Deferred provision (benefit) for income taxes: | |||||||||||||||||
Ireland | (0.1) | — | (13.9) | ||||||||||||||
United States | (52.3) | (30.2) | 7.3 | ||||||||||||||
Other foreign | (2.1) | (9.8) | 2.0 | ||||||||||||||
Subtotal | (54.5) | (40.0) | (4.6) | ||||||||||||||
Total provision for income taxes | $ | 13.2 | $ | 24.9 | $ | 159.6 |
Year Ended | |||||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
|||||||||||||||
Provision at statutory rate | 12.5 | % | 12.5 | % | 12.5 | % | |||||||||||
Foreign rate differential | 14.9 | 3.1 | (7.1) | ||||||||||||||
State income taxes, net of federal benefit | (6.2) | 2.7 | 3.0 | ||||||||||||||
Provision to return | (1.2) | 0.8 | (1.0) | ||||||||||||||
Tax credits | 8.8 | (2.7) | (1.3) | ||||||||||||||
Change in tax law | (1.8) | (1.1) | (6.2) | ||||||||||||||
Change in valuation allowance | 52.0 | (29.1) | 51.0 | ||||||||||||||
Change in unrecognized taxes | (28.8) | (4.7) | 13.8 | ||||||||||||||
Permanent differences | (70.7) | 31.2 | (14.1) | ||||||||||||||
Legal entity restructuring | 21.1 | — | — | ||||||||||||||
Taxes on unremitted earnings | (8.8) | 3.6 | 3.9 | ||||||||||||||
Other | (0.6) | (1.7) | 0.4 | ||||||||||||||
Effective income tax rate | (8.8) | % | 14.6 | % | 54.9 | % |
Year Ended | |||||||||||
December 31,
2020 |
December 31,
2019 |
||||||||||
Deferred income tax asset (liability): | |||||||||||
Depreciation and amortization | $ | (393.7) | $ | (366.7) | |||||||
Investment in partnership | — | (38.1) | |||||||||
Right of use assets | (44.3) | (30.5) | |||||||||
Unremitted earnings | (42.0) | (29.0) | |||||||||
Inventory basis differences | 27.7 | 32.7 | |||||||||
Accrued liabilities | 81.4 | 91.3 | |||||||||
Lease obligations | 45.3 | 30.5 | |||||||||
Share-based compensation | 24.5 | 23.2 | |||||||||
Federal benefit of unrecognized tax positions | 23.5 | 20.7 | |||||||||
Loss and credit carryforwards | 390.1 | 373.3 | |||||||||
R&D credit carryforwards | 48.4 | 54.1 | |||||||||
Interest carryforwards | 17.9 | 60.5 | |||||||||
Other, net | 0.9 | 4.1 | |||||||||
Subtotal | $ | 179.7 | $ | 226.1 | |||||||
Valuation allowance (1)
|
(414.8) | (501.3) | |||||||||
Net deferred income tax liability | $ | (235.1) | $ | (275.2) |
Year Ended | |||||||||||
December 31,
2020 |
December 31,
2019 |
||||||||||
Assets | $ | 44.2 | $ | 5.4 | |||||||
Liabilities | (279.3) | (280.6) | |||||||||
Net deferred income tax liability | $ | (235.1) | $ | (275.2) |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31,
2019 |
|||||||||||||
Balance at beginning of period | $ | 501.3 | $ | 557.9 | ||||||||||
Change in assessment (1)
|
(50.3) | (8.3) | ||||||||||||
Current year operations, foreign currency and other | (36.2) | (48.3) | ||||||||||||
Balance at end of period | $ | 414.8 | $ | 501.3 |
Unrecognized
Tax Benefits |
|||||
Balance at December 31, 2018 | $ | 377.1 | |||
Additions: | |||||
Positions related to the current year | 8.2 | ||||
Positions related to prior years | 3.1 | ||||
Reductions: | |||||
Settlements with taxing authorities | (3.0) | ||||
Lapse of statutes of limitation | (23.5) | ||||
Decrease in prior year positions | (12.1) | ||||
Cumulative translation adjustment | 0.7 | ||||
Balance at December 31, 2019 | 350.5 | ||||
Additions: | |||||
Positions related to the current year | 18.2 | ||||
Positions related to prior years | 28.9 | ||||
Reductions: | |||||
Lapse of statutes of limitation | (2.2) | ||||
Decrease in prior year positions | (1.0) | ||||
Cumulative translation adjustment | 1.6 | ||||
Balance at December 31, 2020 | $ | 396.0 |
Year Ended | |||||||||||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31, 2018 | |||||||||||||||||||||
$ | 27.3 | $ | 26.6 | $ | 25.2 |
Pension Benefits | Other Benefits | ||||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||
December 31,
2020 |
December 31, 2019 |
December 31,
2020 |
December 31, 2019 | ||||||||||||||||||||
Projected benefit obligation at beginning of period | $ | 186.9 | $ | 168.6 | $ | 3.7 | $ | 5.6 | |||||||||||||||
Curtailment | — | (2.5) | — | — | |||||||||||||||||||
Service costs | 2.7 | 2.5 | — | 0.6 | |||||||||||||||||||
Interest cost | 2.8 | 3.8 | 0.1 | 0.2 | |||||||||||||||||||
Actuarial loss (gain) | 7.0 | 22.7 | (0.2) | 0.3 | |||||||||||||||||||
Amendments | — | — | — | (2.9) | |||||||||||||||||||
Contributions paid | 0.2 | 0.3 | — | — | |||||||||||||||||||
Benefits paid | (2.3) | (1.6) | (0.1) | (0.1) | |||||||||||||||||||
Settlements | — | (3.8) | — | — | |||||||||||||||||||
Foreign currency translation | 17.0 | (3.1) | — | — | |||||||||||||||||||
Projected benefit obligation at end of period | $ | 214.3 | $ | 186.9 | $ | 3.5 | $ | 3.7 | |||||||||||||||
Fair value of plan assets at beginning of period | 165.4 | 151.9 | — | — | |||||||||||||||||||
Actual return on plan assets | 8.3 | 19.8 | — | — | |||||||||||||||||||
Benefits paid | (2.3) | (1.6) | (0.1) | (0.1) | |||||||||||||||||||
Settlements | — | (3.8) | — | — | |||||||||||||||||||
Employer contributions | 2.3 | 2.0 | 0.1 | 0.1 | |||||||||||||||||||
Contributions paid | 0.2 | 0.3 | — | — | |||||||||||||||||||
Foreign currency translation | 15.2 | (3.2) | — | — | |||||||||||||||||||
Fair value of plan assets at end of period | $ | 189.1 | $ | 165.4 | $ | — | $ | — | |||||||||||||||
Unfunded status | $ | (25.2) | $ | (21.5) | $ | (3.5) | $ | (3.7) | |||||||||||||||
Presented as: | |||||||||||||||||||||||
Other non-current assets | $ | 17.9 | $ | 15.8 | $ | — | $ | — | |||||||||||||||
Other non-current liabilities | $ | (43.1) | $ | (37.3) | $ | — | $ | — | |||||||||||||||
Year Ended | |||||||||||
December 31,
2020 |
December 31, 2019 | ||||||||||
Accumulated benefit obligation | $ | 107.4 | $ | 93.7 | |||||||
Fair value of plan assets | $ | 71.1 | $ | 62.1 |
Year Ended | |||||||||||
December 31,
2020 |
December 31, 2019 | ||||||||||
Projected benefit obligation | $ | 114.2 | $ | 99.4 | |||||||
Fair value of plan assets | $ | 71.1 | $ | 62.1 |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31, 2019 |
December 31,
2018 |
||||||||||||
$ | 0.2 | $ | 2.6 | $ | 1.3 |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31, 2019 |
December 31,
2018 |
||||||||||||
$ | 11.6 | $ | 6.2 | $ | 4.4 |
Payment Due | Pension Benefits | Other Benefits | ||||||||||||
2021 | $ | 2.1 | $ | 0.1 | ||||||||||
2022 | 2.6 | 0.1 | ||||||||||||
2023 | 2.6 | 0.2 | ||||||||||||
2024 | 3.5 | 0.2 | ||||||||||||
2025 | 3.9 | 0.2 | ||||||||||||
Thereafter | 27.4 | 1.1 |
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | December 31, 2018 | December 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||
Service cost | $ | 2.7 | $ | 2.5 | $ | 3.0 | $ | — | $ | 0.6 | $ | 0.6 | |||||||||||||||||||||||
Interest cost | 2.8 | 3.8 | 3.8 | 0.1 | 0.2 | 0.2 | |||||||||||||||||||||||||||||
Expected return on assets | (4.9) | (4.9) | (5.3) | — | — | — | |||||||||||||||||||||||||||||
Settlement | — | 0.9 | — | — | — | — | |||||||||||||||||||||||||||||
Curtailment | — | (2.5) | (1.2) | — | — | — | |||||||||||||||||||||||||||||
Net actuarial loss/(gain) | 0.9 | 0.8 | 0.6 | (3.2) | (0.3) | (0.1) | |||||||||||||||||||||||||||||
Net periodic pension cost/(gain) | $ | 1.5 | $ | 0.6 | $ | 0.9 | $ | (3.1) | $ | 0.5 | $ | 0.7 |
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||||||||||||||
December 31,
2020 |
December 31, 2019 |
December 31,
2018 |
December 31,
2020 |
December 31, 2019 |
December 31,
2018 |
||||||||||||||||||||||||||||||
Discount rate | 0.95 | % | 1.06 | % | 2.04 | % | 3.14 | % | 4.25 | % | 3.59 | % | |||||||||||||||||||||||
Inflation | 1.33 | % | 1.18 | % | 1.45 | % | |||||||||||||||||||||||||||||
Expected return on assets | 1.76 | % | 2.54 | % | 2.94 | % | |||||||||||||||||||||||||||||
Interest crediting rates | 0.59 | % | 0.83 | % | 1.41 | % |
Equities | 5.0 | % | |||
Bonds | 1.7 | % | |||
Absolute return fund | 4.0 | % | |||
Insurance contracts | 1.6 | % | |||
Other | 0.9 | % |
Equities |
20%-30%
|
||||
Bonds |
40%-50%
|
||||
Absolute return |
20%-30%
|
Year Ended | |||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||
Equities | $ | — | $ | 42.8 | $ | — | $ | 42.8 | $ | 0.1 | $ | 24.5 | $ | — | $ | 24.6 | |||||||||||||||||||||||||||||||
Bonds | 1.2 | 43.0 | — | 44.2 | 1.1 | 32.7 | — | 33.8 | |||||||||||||||||||||||||||||||||||||||
Insurance contracts | — | — | 64.2 | 64.2 | — | — | 56.1 | 56.1 | |||||||||||||||||||||||||||||||||||||||
Absolute return fund | — | 30.8 | — | 30.8 | — | 44.9 | — | 44.9 | |||||||||||||||||||||||||||||||||||||||
Other | — | 7.1 | — | 7.1 | — | 6.0 | — | 6.0 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 1.2 | $ | 123.7 | $ | 64.2 | $ | 189.1 | $ | 1.2 | $ | 108.1 | $ | 56.1 | $ | 165.4 |
Year Ended | |||||||||||
December 31,
2020 |
December 31, 2019 | ||||||||||
Assets at beginning of year | $ | 56.1 | $ | 49.9 | |||||||
Actual return on plan assets | 1.9 | 8.1 | |||||||||
Purchases, sales and settlements, net | 1.2 | (0.5) | |||||||||
Foreign exchange | 5.0 | (1.4) | |||||||||
Assets at end of year | $ | 64.2 | $ | 56.1 |
Case | Date Filed | ||||
Carmignac Gestion, S.A. v. Perrigo Company plc, et al. | 11/1/2017 | ||||
First Manhattan Co. v. Perrigo Company plc, et al. | 2/16/2018; amended 4/20/2018 | ||||
Nationwide Mutual Funds, et al. v. Perrigo Company plc, et al. | 10/29/2018 | ||||
Schwab Capital Trust, et al. v. Perrigo Company plc, et al. | 1/31/2019 | ||||
Aberdeen Canada Funds -- Global Equity Fund, et al. v. Perrigo Company plc, et al. | 2/22/2019 | ||||
Principal Funds, Inc., et al. v. Perrigo Company plc, et al. | 3/5/2020 | ||||
Kuwait Investment Authority, et al. v. Perrigo Company plc, et al. | 3/31/2020 | ||||
Case | Date Filed | ||||
Mason Capital L.P., et al. v. Perrigo Company plc, et al. | 1/26/2018 | ||||
Pentwater Equity Opportunities Master Fund Ltd., et al. v. Perrigo Company plc, et al. | 1/26/2018 | ||||
WCM Alternatives: Event-Drive Fund, et al. v. Perrigo Co., plc, et al. | 11/15/2018 | ||||
Hudson Bay Master Fund Ltd., et al. v. Perrigo Co., plc, et al. | 11/15/2018 | ||||
Discovery Global Citizens Master Fund, Ltd., et al. v. Perrigo Co. plc, et al. | 12/18/2019 | ||||
York Capital Management, L.P., et al. v. Perrigo Co. plc, et al. | 12/20/2019 | ||||
Burlington Loan Management DAC v. Perrigo Co. plc, et al. | 2/12/2020 | ||||
Universities Superannuation Scheme Limited v. Perrigo Co. plc, et al. | 3/2/2020 | ||||
Case | Date Filed | ||||
Harel Insurance Company, Ltd., et al. v. Perrigo Company plc, et al. | 2/13/2018 | ||||
TIAA-CREF Investment Management, LLC., et al. v. Perrigo Company plc, et al. | 4/20/2018 |
Case | Date Filed | ||||
Sculptor Master Fund (f/k/a OZ Master Fund, Ltd.), et al. v. Perrigo Company plc, et al. | 2/6/2019 | ||||
Highfields Capital I LP, et al. v. Perrigo Company plc, et al. | 6/4/2020 | ||||
BlackRock Global Allocation Fund, Inc., et al. v. Perrigo Co. plc, et al. | 4/21/2020 | ||||
Starboard Value and Opportunity C LP, et al. v. Perrigo Company plc, et al. | 2/25/2021 | ||||
Balance at December 31, 2017 | $ | 21.4 | |||
Additional charges | 21.0 | ||||
Payments | (18.8) | ||||
Non-cash adjustments | 0.4 | ||||
Balance at December 31, 2018 | 24.0 | ||||
Additional charges | 25.3 | ||||
Payments | (29.4) | ||||
Non-cash adjustments | (0.3) | ||||
Balance at December 31, 2019 | 19.6 | ||||
Additional charges | 3.5 | ||||
Payments | (14.3) | ||||
Non-cash adjustments | 0.7 | ||||
Balance at December 31, 2020 | $ | 9.5 |
CSCA | CSCI | RX | Unallocated | Total | |||||||||||||||||||||||||||||||
Year Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||
Net sales | $ | 2,693.0 | $ | 1,395.2 | $ | 975.1 | $ | — | $ | 5,063.3 | |||||||||||||||||||||||||
Operating income (loss) | $ | 472.0 | $ | 32.3 | $ | (177.7) | $ | (211.2) | $ | 115.4 | |||||||||||||||||||||||||
Operating income % | 17.5 | % | 2.3 | % | (18.2) | % | — | % | 2.3 | % | |||||||||||||||||||||||||
Total assets | $ | 4,443.0 | $ | 4,872.4 | $ | 2,173.0 | $ | — | $ | 11,488.4 | |||||||||||||||||||||||||
Capital expenditures | $ | 126.0 | $ | 28.8 | $ | 15.6 | $ | — | $ | 170.4 | |||||||||||||||||||||||||
Property, plant and equipment, net | $ | 675.7 | $ | 163.5 | $ | 156.8 | $ | — | $ | 996.0 | |||||||||||||||||||||||||
Depreciation/amortization | $ | 103.6 | $ | 177.8 | $ | 103.4 | $ | — | $ | 384.8 | |||||||||||||||||||||||||
Change in financial assets | $ | — | $ | — | $ | — | $ | 96.4 | $ | 96.4 | |||||||||||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||
Net sales | $ | 2,487.7 | $ | 1,382.2 | $ | 967.5 | $ | — | $ | 4,837.4 | |||||||||||||||||||||||||
Operating income (loss) | $ | 414.0 | $ | 19.6 | $ | 2.6 | $ | (231.4) | $ | 204.8 | |||||||||||||||||||||||||
Operating income % | 16.6 | % | 1.4 | % | 0.3 | % | — | % | 4.2 | % | |||||||||||||||||||||||||
Total assets | $ | 3,990.2 | $ | 4,682.7 | $ | 2,628.5 | $ | — | $ | 11,301.4 | |||||||||||||||||||||||||
Capital expenditures | $ | 98.4 | $ | 18.8 | $ | 20.5 | $ | — | $ | 137.7 | |||||||||||||||||||||||||
Property, plant and equipment, net | $ | 599.8 | $ | 149.9 | $ | 153.1 | $ | — | $ | 902.8 | |||||||||||||||||||||||||
Depreciation/amortization | $ | 97.4 | $ | 194.3 | $ | 104.8 | $ | — | $ | 396.5 | |||||||||||||||||||||||||
Change in financial assets | $ | — | $ | — | $ | — | $ | (22.1) | $ | (22.1) | |||||||||||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||
Net sales | $ | 2,411.6 | $ | 1,399.3 | $ | 920.8 | $ | — | $ | 4,731.7 | |||||||||||||||||||||||||
Operating income (loss) | $ | 174.4 | $ | 6.8 | $ | 214.6 | $ | (159.3) | $ | 236.5 | |||||||||||||||||||||||||
Operating income % | 7.2 | % | 0.5 | % | 23.3 | % | — | % | 5.0 | % | |||||||||||||||||||||||||
Total assets | $ | 3,571.7 | $ | 4,613.0 | $ | 2,798.7 | $ | — | $ | 10,983.4 | |||||||||||||||||||||||||
Capital expenditures | $ | 65.0 | $ | 19.1 | $ | 18.6 | $ | — | $ | 102.7 | |||||||||||||||||||||||||
Property, plant and equipment, net | $ | 530.3 | $ | 154.8 | $ | 144.0 | $ | — | $ | 829.1 | |||||||||||||||||||||||||
Depreciation/amortization | $ | 104.8 | $ | 219.2 | $ | 99.6 | $ | — | $ | 423.6 | |||||||||||||||||||||||||
Change in financial assets | $ | — | $ | — | $ | — | $ | (188.7) | $ | (188.7) |
Year Ended | |||||||||||
December 31,
2020 |
December 31,
2019 |
||||||||||
U.S. | $ | 678.2 | $ | 614.5 | |||||||
Europe(1)
|
169.7 | 146.8 | |||||||||
Israel | 90.7 | 86.1 | |||||||||
All other countries | 57.4 | 55.4 | |||||||||
$ | 996.0 | $ | 902.8 |
Year Ended | ||||||||||||||
December 31,
2020 |
December 31, 2019 |
December 31,
2018 |
||||||||||||
13.3% | 13.0% | 12.8% |
First Quarter |
Second
Quarter (2)
|
Third
Quarter (3)
|
Fourth
Quarter(4)
|
||||||||||||||||||||
Year Ended December 31, 2020 | |||||||||||||||||||||||
Net sales | $ | 1,341.0 | $ | 1,219.1 | $ | 1,213.7 | $ | 1,289.5 | |||||||||||||||
Gross profit | $ | 483.2 | $ | 434.7 | $ | 428.1 | $ | 469.2 | |||||||||||||||
Change in financial assets | $ | (1.6) | $ | (2.1) | $ | (22.2) | $ | 122.3 | |||||||||||||||
Net income (loss) | $ | 106.4 | $ | 60.6 | $ | (154.6) | $ | (175.0) | |||||||||||||||
Earnings (loss) per share(1):
|
|||||||||||||||||||||||
Basic | $ | 0.78 | $ | 0.44 | $ | (1.13) | $ | (1.29) | |||||||||||||||
Diluted | $ | 0.77 | $ | 0.44 | $ | (1.13) | $ | (1.29) | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 136.2 | 136.4 | 136.5 | 135.4 | |||||||||||||||||||
Diluted | 137.3 | 137.5 | 136.5 | 135.4 |
First
Quarter(2)
|
Second
Quarter (3)
|
Third
Quarter (4)
|
Fourth
Quarter(5)
|
||||||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||
Net sales | $ | 1,174.5 | $ | 1,149.0 | $ | 1,191.1 | $ | 1,322.8 | |||||||||||||||
Gross profit | $ | 448.8 | $ | 430.8 | $ | 412.8 | $ | 480.9 | |||||||||||||||
Change in financial assets | $ | (10.4) | $ | (5.5) | $ | (2.6) | $ | (3.6) | |||||||||||||||
Net income (loss) | $ | 63.9 | $ | 9.0 | $ | 92.2 | $ | (19.0) | |||||||||||||||
Earnings (loss) per share(1):
|
|||||||||||||||||||||||
Basic | $ | 0.47 | $ | 0.07 | $ | 0.68 | $ | (0.14) | |||||||||||||||
Diluted | $ | 0.47 | $ | 0.07 | $ | 0.67 | $ | (0.14) | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 135.9 | 136.0 | 136.0 | 136.1 | |||||||||||||||||||
Diluted | 136.2 | 136.5 | 136.8 | 137.0 |
2.1 | |||||
2.2 | |||||
2.3+
|
|||||
2.4 | |||||
2.5 | |||||
2.6 | |||||
2.7 | |||||
3.1 | |||||
3.2 | |||||
4.1 | |||||
4.2 | |||||
4.3 | |||||
4.4 | |||||
4.5 | |||||
4.6 | |||||
4.7 | |||||
4.8 | |||||
4.9 | |||||
4.10 | |||||
4.11 | |||||
4.12 | |||||
10.1 | |||||
10.2 | |||||
10.3 | |||||
10.4 | |||||
10.5 | |||||
10.6* | |||||
10.7* | |||||
10.8* | |||||
10.9* | |||||
10.10* | |||||
10.11* | |||||
10.12* | |||||
10.13* | |||||
10.14* | |||||
10.15* | |||||
10.16* | |||||
10.17* | |||||
10.18* | |||||
10.19* | |||||
10.20* | |||||
10.21* | |||||
10.22* | |||||
10.23* | |||||
10.24* | |||||
10.25* | |||||
10.26* | |||||
10.27* | |||||
10.28* | |||||
10.29* | |||||
10.30* | |||||
10.31* | |||||
10.32* | |||||
10.33* | |||||
10.34* | |||||
10.35* | |||||
10.36* | |||||
10.37* | |||||
10.38* | |||||
10.39* | |||||
10.40* | |||||
10.41* | |||||
10.42* | |||||
10.43* | |||||
10.44* | |||||
10.45* | |||||
10.46* | |||||
10.47* | |||||
10.48* | |||||
10.49* | |||||
10.50* | |||||
10.51* | |||||
10.52* | |||||
10.53* | |||||
10.54* | |||||
10.55* | |||||
10.56* | |||||
10.57* | |||||
10.58* | |||||
10.59* | |||||
10.60* | |||||
10.61* | |||||
10.62* | |||||
10.63* | |||||
21 | |||||
23 | |||||
24 | |||||
31 | |||||
32 | |||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||
101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||||
104 | Cover Page Interactive Data File, formatted in Inline XBRL (contained in Exhibit 101.INS). | ||||
Year Ended | ||||||||||||||||||||
December 31,
2020 |
December 31,
2019 |
December 31,
2018 |
||||||||||||||||||
Allowance for doubtful accounts | ||||||||||||||||||||
Balance at beginning of period | $ | 6.7 | $ | 6.4 | $ | 6.2 | ||||||||||||||
Net bad debt expenses(1)
|
2.9 | 0.8 | — | |||||||||||||||||
Additions/(deductions)(2)
|
(2.0) | (0.5) | 0.2 | |||||||||||||||||
Balance at end of period | $ | 7.6 | $ | 6.7 | $ | 6.4 |
PERRIGO COMPANY PLC | |||||
By: | /s/ Murray S. Kessler | ||||
Murray S. Kessler | |||||
Chief Executive Officer and President | |||||
(Principal Executive Officer) |
Signature | Title | |||||||
/s/ Murray S. Kessler | President and Chief Executive Officer and Director | |||||||
Murray S. Kessler | (Principal Executive Officer) | |||||||
/s/ Raymond P. Silcock |
Chief Financial Officer
|
|||||||
Raymond P. Silcock | (Principal Accounting and Financial Officer) | |||||||
/s/ Rolf A. Classon | Chairman of the Board | |||||||
Rolf A. Classon | ||||||||
/s/ Bradley A. Alford | Director | |||||||
Bradley A. Alford | ||||||||
/s/ Orlando D. Ashford | Director | |||||||
Orlando D. Ashford | ||||||||
/s/ Katherine Doyle | Director | |||||||
Katherine Doyle | ||||||||
/s/ Adriana Karaboutis | Director | |||||||
Adriana Karaboutis | ||||||||
/s/ Jeffrey B. Kindler | Director | |||||||
Jeffrey B. Kindler | ||||||||
/s/ Erica L. Mann | Director | |||||||
Erica L. Mann | ||||||||
/s/ Donal O'Connor | Director | |||||||
Donal O'Connor | ||||||||
/s/ Geoffrey M. Parker | Director | |||||||
Geoffrey M. Parker | ||||||||
/s/ Theodore R. Samuels | Director | |||||||
Theodore R. Samuels | ||||||||
/s/ Murray S. Kessler | |||||
Murray S. Kessler | |||||
PERRIGO MANAGEMENT COMPANY | |||||
By: | /s/ Todd W. Kingma | ||||
Name: | Todd W. Kingma | ||||
Title: | Executive Vice President, General Counsel and Secretary |
Murray S. Kessler | |||||
Dated as of: | |||||
Name of Subsidiary | State/Country of Incorporation | ||||
Chefaro Ireland Designated Activity Company | Ireland | ||||
Habsont Unlimited Company | Ireland | ||||
Irish Biosciences Venture Capital Fund | Ireland | ||||
Omega Teknika Designated Activity Company | Ireland | ||||
Perrigo Company plc | Ireland | ||||
Perrigo Corporation Designated Activity Company | Ireland | ||||
Perrigo Finance Unlimited Company | Ireland | ||||
Perrigo Holdings Unlimited Company | Ireland | ||||
Perrigo International Finance Designated Activity Company | Ireland | ||||
Perrigo Ireland 1 Designated Activity Company | Ireland | ||||
Perrigo Ireland 10 Unlimited Company | Ireland | ||||
Perrigo Ireland 11 DAC | Ireland | ||||
Perrigo Ireland 12 Designated Activity Company | Ireland | ||||
Perrigo Ireland 13 Designated Activity Company | Ireland | ||||
Perrigo Ireland 2 Designated Activity Company | Ireland | ||||
Perrigo Ireland 3 Designated Activity Company | Ireland | ||||
Perrigo Ireland 4 Unlimited Company | Ireland | ||||
Perrigo Ireland 5 Unlimited Company | Ireland | ||||
Perrigo Ireland 6 Unlimited Company | Ireland | ||||
Perrigo Ireland 7 Designated Activity Company | Ireland | ||||
Perrigo Ireland 8 Designated Activity Company | Ireland | ||||
Perrigo Ireland 9 Unlimited Company | Ireland | ||||
Perrigo Ireland Management Designated Activity Company | Ireland | ||||
Perrigo Pharma International Designated Activity Company | Ireland | ||||
Perrigo Science Eight Unlimited Company | Ireland | ||||
Perrigo Science One Designated Activity Company | Ireland | ||||
Gr8ness, LLC | Michigan | ||||
L. Perrigo Company | Michigan | ||||
P2C, Inc. | Michigan | ||||
Perrigo Company | Michigan | ||||
Perrigo Company Charitable Foundation | Michigan | ||||
Perrigo Company of South Carolina, Inc. | Michigan | ||||
Perrigo Finance (US) LLC | Michigan | ||||
Perrigo International Holdings, LLC | Michigan | ||||
Perrigo International, Inc. | Michigan | ||||
Perrigo Management Company | Michigan | ||||
Perrigo Pharmaceuticals Company | Michigan | ||||
Perrigo Research & Development Company | Michigan | ||||
Perrigo Sales Corporation | Michigan | ||||
Perrigo Sourcing Solutions, Inc. | Michigan | ||||
PMI Branded Pharmaceuticals, Inc. | Michigan | ||||
Athena Neurosciences, LLC | Delaware | ||||
Cobrek Pharmaceuticals, Inc. | Delaware | ||||
CP Kayak Holdings, Inc. | Delaware | ||||
Elan Pharmaceuticals, LLC | Delaware |
Paddock Laboratories, LLC | Delaware | ||||
PBM Canada Holdings, LLC | Delaware | ||||
PBM China Holdings, LLC | Delaware | ||||
PBM Foods, LLC | Delaware | ||||
PBM Holdings, LLC | Delaware | ||||
PBM International Holdings, LLC | Delaware | ||||
PBM Mexico Holdings, LLC | Delaware | ||||
PBM Nutritionals, LLC | Delaware | ||||
PBM Products, LLC | Delaware | ||||
Perrigo China Business Trustee, LLC | Delaware | ||||
Perrigo Diabetes Care, LLC | Delaware | ||||
Perrigo International Holdings II, Inc. | Delaware | ||||
Perrigo LLC | Delaware | ||||
Perrigo Mexico Investment Holdings, LLC | Delaware | ||||
Perrigo New York, Inc. | Delaware | ||||
Perrigo Oral Health Care Holdings, Inc. | Delaware | ||||
Ranir Global Holdings, LLC | Delaware | ||||
Ranir, LLC | Delaware | ||||
Perrigo Company of Tennessee | Tennessee | ||||
Perrigo Florida, Inc. | Florida | ||||
Geiss, Destin & Dunn, Inc | Georgia | ||||
Kazmira LLC | Colorado | ||||
Arginet Investments and Property (2003) Ltd. | Israel | ||||
CanNegev Ltd | Israel | ||||
Perrigo Israel Agencies Ltd | Israel | ||||
Perrigo Israel Enterprises & Investments Ltd. | Israel | ||||
Perrigo Israel Holdings Ltd | Israel | ||||
Perrigo Israel Opportunities II Ltd. | Israel | ||||
Perrigo Israel Pharmaceuticals Ltd. | Israel | ||||
Perrigo Israel Trading Limited Partnership | Israel | ||||
Pharma Clal (1983) Ltd. | Israel | ||||
Galpharm Healthcare Limited | United Kingdom | ||||
Galpharm International Limited | United Kingdom | ||||
Kiteacre Limited | United Kingdom | ||||
Omega Pharma Limited | United Kingdom | ||||
Perrigo Pharma Limited | United Kingdom | ||||
Perrigo Holdings Limited | United Kingdom | ||||
Perrigo UK Acquisition Limited | United Kingdom | ||||
Perrigo UK Finco Limited Partnership | United Kingdom | ||||
Perrigo Ventures Limited Partnership | United Kingdom | ||||
Ranir (Holdings) Limited | United Kingdom | ||||
Ranir Limited | United Kingdom | ||||
Solent Oral Care Limited | United Kingdom | ||||
The Learning Pharmacy Limited | United Kingdom | ||||
Wrafton Laboratories Limited | United Kingdom | ||||
Gelcaps Exportadora de Mexico, S.A. de C.V. | Mexico | ||||
Laboratorios DIBA S.A. | Mexico | ||||
PBM Products Mexico S de R.L. de C.V. | Mexico | ||||
Perrigo de Mexico S.A. de C.V. | Mexico | ||||
Perrigo Mexico Holding S.A. de C.V. | Mexico |
Quimica Y Farmacia S.A. de C.V. | Mexico | ||||
Cinetic Laboratories Argentina SA | Argentina | ||||
Perrigo Australian Holding Company II PTY Limited | Australia | ||||
Orion Laboratories PTY Limited | Australia | ||||
Aurora Pharmaceuticals Pty Ltd | Australia | ||||
Omega Pharma Australia Pty Ltd | Australia | ||||
Rubicon Healthcare Holdings Pty Ltd | Australia | ||||
Orion Laboratories (NZ) Ltd. | New Zealand | ||||
Jewel Consumer Care Pvt. Ltd. | India | ||||
Perrigo Laboratories India Private Limited | India | ||||
Omega Pharma Austria Healthcare GmbH | Austria | ||||
Omega Pharma GmbH | Austria | ||||
Richard Bittner AG | Austria | ||||
Elan International Services Limited | Bermuda | ||||
Perrigo International Insurance Limited | Bermuda | ||||
Perrigo do Brasil Farmaceutica Ltda. | Brazil | ||||
Perrigo Danmark A/S | Denmark | ||||
Perrigo Denmark Holdings K/S | Denmark | ||||
Elan Europa Finance S.á r.l. | Luxembourg | ||||
Hud SA | Luxembourg | ||||
Omega Pharma Luxembourg SarL | Luxembourg | ||||
Luxembourg Investment Company 289 Sàrl | Luxembourg | ||||
P-Direct NL B.V. | Netherlands | ||||
Monksland Holdings B.V. | Netherlands | ||||
Oce-Bio Nederland B.V. | Netherlands | ||||
Omega Pharma Nederland B.V. | Netherlands | ||||
Perrigo Ireland Holding Company B.V. | Netherlands | ||||
Perrigo Israel Holdings II B.V. | Netherlands | ||||
Perrigo Netherlands B.V. | Netherlands | ||||
Perrigo Netherlands Finco 1 Coöperatief U.A. | Netherlands | ||||
Perrigo Netherlands Finco 2 B.V. | Netherlands | ||||
Perrigo Netherlands International Partnership C.V. | Netherlands | ||||
Perrigo Pharma Holding Nederland BV | Netherlands | ||||
Samenwerkende Apothekers Nederland B.V. | Netherlands | ||||
Interdelta S.A. | Switzerland | ||||
JLR Pharma S.A. | Switzerland | ||||
Perrigo China Business Trust | China | ||||
Perrigo Trading (Shanghai) Co., Ltd. | China | ||||
Zibo Xinhua - Perrigo Pharmaceutical Company Ltd. | China | ||||
Ranir Changshu Oral Care CO., Ltd. | China | ||||
Solent Dental Company Limited | Hong Kong | ||||
Perrigo Asia Holding Company Ltd. | Mauritius | ||||
Perrigo Ukraine LLC | Ukraine | ||||
Biover NV | Belgium | ||||
Jaico R.D.P. NV | Belgium | ||||
Medgenix Benelux NV | Belgium | ||||
Oce Bio BV | Belgium | ||||
Omega Pharma Belgium NV | Belgium | ||||
Omega Pharma Capital NV | Belgium | ||||
Omega Pharma Innovation & Development NV | Belgium |
Omega Pharma International NV | Belgium | ||||
Perrigo Europe Invest NV | Belgium | ||||
Perrigo Holding NV | Belgium | ||||
Omega Pharma Trading NV | Belgium | ||||
Totalcare International Corp | British Virgin Islands | ||||
Perrigo Bulgaria OOD | Bulgaria | ||||
Omega Alpharm Cyprus Ltd. | Cyprus | ||||
Omega Pharma AS | Czech Republic | ||||
Perrigo Suomi Oy | Finland | ||||
Bioxydiet France SAS | France | ||||
Cosmediet - Biotechnie SAS | France | ||||
Laboratoire de la Mer SAS | France | ||||
Laboratoires Omega Pharma France SAS | France | ||||
Perrigo France SAS | France | ||||
Ranir (SAS) | France | ||||
Naturwohl Pharma GmbH | Germany | ||||
Abtei Omega Pharma GmbH | Germany | ||||
Omega Pharma Deutschland GmbH | Germany | ||||
Omega Pharma Manufacturing GmbH & Co. KG | Germany | ||||
Omega Pharma Manufacturing Verwaltungs GmbH | Germany | ||||
Paracelsia Pharma GmbH | Germany | ||||
Ranir GmbH | Germany | ||||
Omega Pharma Hellas SA Health and Beauty Products | Greece | ||||
Despharma Kft. | Hungary | ||||
Omega Pharma Hungary Kft. | Hungary | ||||
Perrigo Italia S.r.l | Italy | ||||
Oralys Italia Societa A Responsabilita Limita | Italy | ||||
Omega Pharma Baltics SIA | Latvia | ||||
Perrigo Norge AS | Norway | ||||
Perrigo Poland Sp.z.o.o | Poland | ||||
Perrigo Portugal LDA | Portugal | ||||
SC Hipocrate 2000 SRL | Romania | ||||
Adriatic Distribution doo Beograd | Serbia | ||||
Omega Pharma s.r.o. | Slovakia | ||||
Adriatic BST Trgovina in Storitve D.o.o. | Slovenia | ||||
OmegaLabs (Pty) Ltd | South Africa | ||||
Perrigo España SA | Spain | ||||
Aco Hud Nordic AB | Sweden | ||||
Perrigo Sverige AB | Sweden | ||||
Perrigo Kişisel Bakım Ürünleri Sanayi ve Ticaret Limited Şirketi | Turkey |
/s/ Murray S. Kessler | ||
Murray S. Kessler | ||
Chief Executive Officer and President | ||
/s/ Raymond P. Silcock | ||
Raymond P. Silcock | ||
Chief Financial Officer
|
||
Date: | March 1, 2021 | /s/ Murray S. Kessler | |||||||||
Murray S. Kessler | |||||||||||
Chief Executive Officer and President | |||||||||||
Date: | March 1, 2021 | /s/ Raymond P. Silcock | |||||||||
Raymond P. Silcock | |||||||||||
Chief Financial Officer
|
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