PRGO
PERRIGO COMPANY PLC SELECTED CONSOLIDATED INFORMATION QUARTERS AND CALENDAR YEAR TO DATE 2016 (in millions) (unaudited) Three Months Ended Twelve Months Ended Consolidated
Tuesday, May 23, 2017 1 min read
Key Takeaway: SELECTED CONSOLIDATED INFORMATION
QUARTERS AND CALENDAR YEAR TO DATE 2016
Three Months Ended Twelve Months Ended Consolidated April 2, 2016 July 2, 2016 October 1, 2016 December 31, 2016 December 31, 2016 Net sales $ 1,347.3 $ 1,340.5 $ 1,261.6 $ 1,331.2 $ 5,280.6
Full Press Release Details
SELECTED CONSOLIDATED INFORMATION
QUARTERS AND CALENDAR YEAR TO DATE 2016
| | Three Months Ended | | Twelve Months Ended |
| Consolidated | April 2, 2016 | | July 2, 2016 | | October 1, 2016 | | December 31, 2016 | | December 31, 2016 |
| Net sales | $ | 1,347.3 | | | $ | 1,340.5 | | | $ | 1,261.6 | | | $ | 1,331.2 | | | $ | 5,280.6 | |
| Gross profit | $ | 533.1 | | | $ | 546.5 | | | $ | 484.5 | | | $ | 487.7 | | | $ | 2,051.8 | |
| Operating income (loss) | $ | (231.6 | ) | | $ | 184.8 | | | $ | (1,468.3 | ) | | $ | (484.6 | ) | | $ | (1,999.7 | ) |
| Net loss | $ | (529.2 | ) | | $ | (534.3 | ) | | $ | (1,590.2 | ) | | $ | (1,359.1 | ) | | $ | (4,012.8 | ) |
| Diluted loss per share | $ | (3.70 | ) | | $ | (3.73 | ) | | $ | (11.10 | ) | | $ | (9.48 | ) | | $ | (28.01 | ) |
| Selected ratios as a percentage of net sales | | | | | | |
| Gross profit | 39.6 | % | | 40.8 | % | | 38.4 | % | | 36.6 | % | | 38.9 | % |
| Operating income (loss) | (17.2 | )% | | 13.8 | % | | (116.4 | )% | | (36.4 | )% | | (37.9 | )% |
SELECTED CONSOLIDATED INFORMATION
QUARTERS AND CALENDAR YEAR TO DATE 2015
| | Three Months Ended | | Twelve Months Ended |
| Consolidated | March 28, 2015 | | June 27, 2015 | | September 26, 2015 | | December 31, 2015 | | December 31, 2015 |
| Net sales | $ | 967.2 | | | $ | 1,415.2 | | | $ | 1,273.2 | | | $ | 1,359.1 | | | $ | 5,014.7 | |
| Gross profit | $ | 369.4 | | | $ | 601.0 | | | $ | 535.2 | | | $ | 543.7 | | | $ | 2,049.4 | |
| Operating income (loss) | $ | 190.4 | | | $ | 192.3 | | | $ | 175.3 | | | $ | (107.7 | ) | | $ | 450.4 | |
| Net income (loss) | $ | (22.2 | ) | | $ | (22.2 | ) | | $ | 260.9 | | | $ | (218.4 | ) | | $ | (1.9 | ) |
| Diluted earnings (loss) per share | $ | (0.16 | ) | | $ | (0.15 | ) | | $ | 1.78 | | | $ | (1.51 | ) | | $ | (0.01 | ) |
| Selected ratios as a percentage of net sales | | | | | | |
| Gross profit | 38.2 | % | | 42.5 | % | | 42.0 | % | | 40.0 | % | | 40.9 | % |
| Operating income (loss) | 19.7 | % | | 13.6 | % | | 13.8 | % | | (7.9 | )% | | 9.0 | % |
SELECTED CONSOLIDATED INFORMATION
CALENDAR YEAR TO DATE 2014
| | | | Twelve Months Ended |
| Consolidated | | | December 27, 2014 |
| Net sales | | | $ | 3,853.8 | |
| Gross profit | | | $ | 1,407.7 | |
| Operating income | | | $ | 593.6 | |
| Net income | | | $ | 380.5 | |
| Diluted earnings per share | | | $ | 2.81 | |
| Selected ratios as a percentage of net sales | |
| Gross profit | | | 36.5 | % |
| Operating income | | | 15.4 | % |
ADJUSTED SELECTED CONSOLIDATED INFORMATION (1)
QUARTERS AND CALENDAR YEAR TO DATE 2016
| | Three Months Ended | | Twelve Months Ended |
| Consolidated | April 2, 2016 | | July 2, 2016 | | October 1, 2016 | | December 31, 2016 | | December 31, 2016 |
| Adjusted net sales | $ | 1,299.9 | | | $ | 1,297.0 | | | $ | 1,239.7 | | | NA* | | | $ | 5,167.8 | |
| Adjusted gross profit | $ | 580.5 | | | $ | 597.8 | | | $ | 539.5 | | | $ | 553.9 | | | $ | 2,271.8 | |
| Adjusted operating income | $ | 274.0 | | | $ | 297.9 | | | $ | 253.8 | | | $ | 258.5 | | | $ | 1,084.2 | |
| Adjusted net income | $ | 188.9 | | | $ | 185.2 | | | $ | 176.4 | | | $ | 177.5 | | | $ | 728.0 | |
| Adjusted diluted earnings per share | $ | 1.32 | | | $ | 1.31 | | | $ | 1.23 | | | $ | 1.24 | | | $ | 5.07 | |
| Selected ratios as a percentage of adjusted net sales | | | | | | |
| Adjusted gross profit | 44.7 | % | | 46.1 | % | | 43.5 | % | | 41.6 | % | ** | 44.0 | % |
| Adjusted operating income | 21.1 | % | | 23.0 | % | | 20.5 | % | | 19.4 | % | ** | 21.0 | % |
| * No adjusted sales in the period | | | | | | | | | |
| ** Selected ratios are as a percentage of reported net sales | | | | | | |
ADJUSTED SELECTED CONSOLIDATED INFORMATION (1)
QUARTERS AND CALENDAR YEAR TO DATE 2015
| | Three Months Ended | | Twelve Months Ended |
| Consolidated | March 28, 2015 | | June 27, 2015 | | September 26, 2015 | | December 31, 2015 | | December 31, 2015 |
| Adjusted gross profit | $ | 397.9 | | | $ | 653.2 | | | $ | 573.0 | | | $ | 581.9 | | | $ | 2,205.9 | |
| Adjusted operating income | $ | 231.2 | | | $ | 336.7 | | | $ | 273.4 | | | $ | 265.6 | | | $ | 1,106.9 | |
| Adjusted net income | $ | 177.4 | | | $ | 227.9 | | | $ | 191.3 | | | $ | 202.4 | | | $ | 798.9 | |
| Adjusted diluted earnings per share | $ | 1.32 | | | $ | 1.56 | | | $ | 1.30 | | | $ | 1.39 | | | $ | 5.57 | |
| Selected ratios as a percentage of reported net sales | | | | | | |
| Adjusted gross profit | 41.1 | % | | 46.2 | % | | 45.0 | % | | 42.8 | % | | 44.0 | % |
| Adjusted operating income | 23.9 | % | | 23.8 | % | | 21.5 | % | | 19.5 | % | | 22.1 | % |
(1) See attached Table I for reconciliation to GAAP numbers.
ADJUSTED SELECTED CONSOLIDATED INFORMATION (1)
CALENDAR YEAR TO DATE 2014
| | | Twelve Months Ended |
| Consolidated | | December 27, 2014 |
| Adjusted gross profit | | $ | 1,514.2 | |
| Adjusted operating income | | $ | 811.3 | |
| Adjusted net income | | $ | 570.3 | |
| Adjusted diluted earnings per share | | $ | 4.23 | |
| Selected ratios as a percentage of reported net sales |
| Adjusted gross profit | | 39.3 | % |
| Adjusted operating income | | 21.1 | % |
(1) See attached Table I for reconciliation to GAAP numbers.
| Table I |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS ENDED FOR CALENDAR YEAR 2016 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | April 2, 2016 |
| Consolidated | Net Sales | Gross Profit | Operating Income (Loss) | Net Income (Loss) | Diluted Earnings (Loss) per Share |
| Reported | $ | 1,347.3 | | $ | 533.1 | | $ | (231.6 | ) | $ | (529.2 | ) | $ | (3.70 | ) |
| As a % of sales | | 39.6 | % | (17.2 | )% | | |
| Adjustments: | | | | | |
| Amortization expense related primarily to acquired intangible assets | $ | - | | $ | 51.4 | | $ | 86.8 | | $ | 86.9 | | $ | 0.62 | |
| Operating results attributable to held-for-sale businesses* | (47.4 | ) | (6.8 | ) | (2.2 | ) | (2.2 | ) | (0.02 | ) |
| Restructuring charges | - | | - | | 5.4 | | 5.4 | | 0.04 | |
| Tysabri royalty stream - change in fair value | - | | - | | - | | 204.4 | | 1.43 | |
| Acquisition and integration-related charges | - | | 2.8 | | 11.7 | | 12.0 | | 0.08 | |
| Impairment charges | - | | - | | 403.9 | | 403.9 | | 2.82 | |
| Losses on equity method investments | - | | - | | - | | 2.4 | | 0.02 | |
| Loss on early debt extinguishment | - | | - | | - | | 0.4 | | - | |
| Non-GAAP tax adjustments *** | - | | - | | - | | 4.9 | | 0.03 | |
| Adjusted | $ | 1,299.9 | | $ | 580.5 | | $ | 274.0 | | $ | 188.9 | | $ | 1.32 | |
| As a % of sales | | 44.7 | % | 21.1 | % | | |
| Diluted weighted average shares outstanding | | | | | |
| Reported | | | | | 143.2 | |
| Effect of dilution as reported amount was a loss, while adjusted amount was income** | | 0.4 | |
| Adjusted | | | | | 143.6 | |
| *Held-for-sale businesses include the U.S. VMS business and India API business. | | |
| **In the period of a net loss, diluted shares outstanding equal basic shares outstanding. | | |
| ***The non-GAAP tax adjustment includes the following: (1) $(177.4) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; and (2) $182.3 million of tax effects on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income. |
| Table I (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS ENDED FOR CALENDAR YEAR 2016 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | July 2, 2016 |
| Consolidated | Net Sales | Gross Profit | Operating Income | Net Income (Loss) | Diluted Earnings (Loss) per Share |
| Reported | $ | 1,340.5 | | $ | 546.5 | | $ | 184.8 | | $ | (534.3 | ) | $ | (3.73 | ) |
| As a % of sales | | 40.8 | % | 13.8 | % | | |
| Adjustments: | | | | | |
| Amortization expense related primarily to acquired intangible assets | $ | - | | $ | 56.1 | | $ | 90.7 | | $ | 90.6 | | $ | 0.65 | |
| Impairment charges | - | | - | | 10.5 | | 34.6 | | 0.24 | |
| Operating results attributable to held-for-sale businesses* | (43.5 | ) | (5.9 | ) | 2.6 | | 2.2 | | 0.02 | |
| Restructuring charges | - | | - | | 5.8 | | 5.8 | | 0.04 | |
| Tysabri royalty stream - change in fair value | - | | - | | - | | 910.8 | | 6.36 | |
| Acquisition and integration-related charges | - | | 1.1 | | 3.5 | | 3.4 | | 0.02 | |
| Losses on equity method investments | - | | - | | - | | 1.8 | | 0.01 | |
| Non-GAAP tax adjustments** | - | | - | | - | | (329.7 | ) | (2.30 | ) |
| Adjusted | $ | 1,297.0 | | $ | 597.8 | | $ | 297.9 | | $ | 185.2 | | $ | 1.31 | |
| As a % of sales | | 46.1 | % | 23.0 | % | | |
| Diluted weighted average shares outstanding | | | | | |
| Reported | | | | | 143.2 | |
| Effect of dilution as reported amount was a loss, while adjusted amount was income*** | | 0.4 | |
| Adjusted | | | | | 143.6 | |
| *Held-for-sale businesses include the U.S. VMS business, European sports brand, and India API business. |
| **The non-GAAP tax adjustment includes the following: ( 1) $(124.8) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; and (2) $(204.9) million of tax effects on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income. |
| ***In the period of a net loss, diluted shares outstanding equal basic shares outstanding. | |
| Table I (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS ENDED FOR CALENDAR YEAR 2016 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | October 1, 2016 |
| Consolidated | Net Sales | Gross Profit | Operating Income (Loss) | Net Income (Loss) | Diluted Earnings (Loss) per Share |
| Reported | $ | 1,261.6 | | $ | 484.5 | | $ | (1,468.3 | ) | $ | (1,590.2 | ) | $ | (11.10 | ) |
| As a % of sales | | 38.4 | % | (116.4 | )% | | |
| Adjustments: | | | | | |
| Amortization expense related primarily to acquired intangible assets | $ | - | | $ | 57.1 | | $ | 91.5 | | $ | 91.5 | | $ | 0.64 | |
| Operating results attributable to held-for-sale businesses* | (21.9 | ) | (2.9 | ) | 3.5 | | 3.9 | | 0.03 | |
| Restructuring charges | - | | - | | 6.6 | | 6.6 | | 0.05 | |
| Tysabri royalty stream - change in fair value | - | | - | | - | | 377.4 | | 2.63 | |
| Acquisition and integration-related charges | - | | 0.8 | | 6.1 | | 6.7 | | 0.05 | |
| Impairment charges | - | | - | | 1,614.4 | | 1,614.4 | | 11.25 | |
| Loss on early debt extinguishment | - | | - | | - | | (0.4 | ) | - | |
| Non-GAAP tax adjustments *** | - | | - | | - | | (333.5 | ) | (2.32 | ) |
| Adjusted | $ | 1,239.7 | | $ | 539.5 | | $ | 253.8 | | $ | 176.4 | | $ | 1.23 | |
| As a % of sales | | 43.5 | % | 20.5 | % | | |
| Diluted weighted average shares outstanding | | | | | |
| Reported | | | | | 143.3 | |
| Effect of dilution as reported amount was a loss, while adjusted amount was income** | | 0.3 | |
| Adjusted | | | | | 143.6 | |
| *Held-for-sale businesses include the U.S. VMS business, European sports brand, and India API business. |
| **In the period of a net loss, diluted shares outstanding equal basic shares outstanding. | |
| ***The non-GAAP tax adjustment includes the following: (1) $(313.1) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; (2) $2.0 million of tax effects on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes; and (3) $(22.4) million of discrete income tax adjustments related to revisions to the weighted average blended tax rates used to calculate opening balance sheet deferred tax liabilities. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income. |
| Table I (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS ENDED FOR CALENDAR YEAR 2016 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | December 31, 2016 |
| Consolidated | Net Sales | Gross Profit | Operating Income (Loss) | Net Income (Loss) | Diluted Earnings (Loss) per Share |
| Reported | $ | 1,331.2 | | $ | 487.7 | | $ | (484.6 | ) | $ | (1,359.1 | ) | $ | (9.48 | ) |
| As a % of sales | | 36.6 | % | (36.4 | )% | | |
| Adjustments: | | | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 62.0 | | $ | 94.9 | | $ | 94.9 | | $ | 0.67 | |
| Impairment charges | | - | | 602.2 | | 600.5 | | 4.18 | |
| Gain on divestitures | | - | | - | | (7.8 | ) | (0.05 | ) |
| Unusual litigation | | - | | 18.4 | | 18.4 | | 0.13 | |
| Restructuring charges | | - | | 13.1 | | 13.1 | | 0.09 | |
| Tysabri royalty stream - change in fair value | | - | | - | | 1,115.6 | | 7.78 | |
| Operating results attributable to held-for-sale businesses* | | 4.2 | | 11.5 | | 11.5 | | 0.08 | |
| Acquisition and integration-related charges | | - | | 3.0 | | 3.3 | | 0.02 | |
| Non-GAAP tax adjustments*** | | - | | - | | (312.9 | ) | (2.18 | ) |
| Adjusted | | $ | 553.9 | | $ | 258.5 | | $ | 177.5 | | $ | 1.24 | |
| As a % of reported sales | | 41.6 | % | 19.4 | % | | |
| Diluted weighted average shares outstanding | | | | | |
| Reported | | | | | 143.4 | |
| Effect of dilution as reported amount was a loss, while adjusted amount was income** | | 0.2 | |
| Adjusted | | | | | 143.6 | |
| *Held-for-sale businesses include the European sports brand and the India API business. |
| **In the period of a net loss, diluted shares outstanding equal basic shares outstanding. |
| *** The non-GAAP tax adjustment includes the following: (1) $(187.1) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; (2) a $20.6 million effect on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes; and (3) discrete income tax adjustments of $(26.9) million related to jurisdictional tax rate changes in France & Italy, $102.6 million net impact of valuation allowances on deferred tax assets commensurate with non-GAAP pre-tax measures and $(222.1) million valuation allowance release due to the divestiture of the Tysabri financial asset. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income. |
| Table I (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| CALENDAR YEAR TO DATE 2016 |
| (in millions) |
| (unaudited) |
| | Twelve Months Ended |
| | December 31, 2016 |
| Consolidated | Net Sales | Gross Profit | Operating Income (Loss) | Net Income (Loss) | Diluted Earnings (Loss) per Share |
| Reported | $ | 5,280.6 | | $ | 2,051.8 | | $ | (1,999.7 | ) | $ | (4,012.8 | ) | $ | (28.01 | ) |
| As a % of sales | | 38.9 | % | (37.9 | )% | | |
| Adjustments: | | | | | |
| Amortization expense related primarily to acquired intangible assets | $ | - | | $ | 226.7 | | $ | 363.9 | | $ | 363.9 | | $ | 2.59 | |
| Acquisition and integration-related charges | - | | 4.7 | | 24.3 | | 25.4 | | 0.18 | |
| Restructuring charges | - | | - | | 31.0 | | 31.0 | | 0.22 | |
| Tysabri royalty stream - change in fair value | - | | - | | - | | 2,608.2 | | 18.16 | |
| Gain on divestitures | - | | - | | - | | (7.7 | ) | (0.05 | ) |
| Losses on equity method investments | - | | - | | - | | 4.2 | | 0.03 | |
| Operating results attributable to held-for-sale businesses* | (112.8 | ) | (11.4 | ) | 15.3 | | 15.3 | | 0.11 | |
| Unusual litigation | - | | - | | 18.4 | | 18.4 | | 0.13 | |
| Impairment charges | - | | - | | 2,631.0 | | 2,653.4 | | 18.48 | |
| Non-GAAP tax adjustments*** | - | | - | | - | | (971.3 | ) | (6.77 | ) |
| Adjusted | $ | 5,167.8 | | $ | 2,271.8 | | $ | 1,084.2 | | $ | 728.0 | | $ | 5.07 | |
| As a % of sales | | 44.0 | % | 21.0 | % | | |
| Diluted weighted average shares outstanding | | | | | |
| Reported | | | | | 143.3 | |
| Effect of dilution as reported amount was a loss, while adjusted amount was income** | 0.3 | |
| Adjusted | | | | | 143.6 | |
| *Held-for-sale businesses include the U.S. VMS business, European sports brand, and the India API business. |
| **In the period of a net loss, diluted shares outstanding equal basic shares outstanding. | |
| ***The non-GAAP tax adjustment includes the following: (1) $(802.5) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; and (2) Discrete income tax adjustments of: $(49.3) million related to jurisdictional tax rate changes in Italy, UK, Germany & France, $102.6 million net impact of valuation allowances on deferred tax assets commensurate with non-GAAP pre-tax measures, and $(222.1) million valuation allowance release due to the divestiture of the Tysabri financial asset. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income. |
| Table I (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS ENDED FOR CALENDAR YEAR 2015 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | March 28, 2015 |
| Consolidated | Net Sales | Gross Profit | Operating Income | Net Income (Loss) | Diluted Earnings (Loss) per Share |
| Reported | $ | 967.2 | | $ | 369.4 | | $ | 190.4 | | $ | (22.2 | ) | $ | (0.16 | ) |
| As a % of sales | | 38.2 | % | 19.7 | % | | |
| Adjustments: | | | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 28.5 | | $ | 35.3 | | $ | 35.2 | | $ | 0.26 | |
| Restructuring charges | | - | | 1.1 | | 1.1 | | 0.01 | |
| Tysabri royalty stream - change in fair value | | - | | - | | (100.8 | ) | (0.75 | ) |
| Acquisition and integration-related charges | | - | | 2.4 | | 2.4 | | 0.02 | |
| Losses from derivatives associated primarily with the Omega acquisition | | - | | - | | 258.3 | | 1.92 | |
| Unusual litigation | | - | | 2.0 | | 2.0 | | 0.01 | |
| Losses on equity method investments | | - | | - | | 0.3 | | - | |
| Financing fees and loss on early debt extinguishment | | - | | - | | 18.7 | | 0.14 | |
| Non-GAAP tax adjustments ** | | - | | - | | (17.6 | ) | (0.13 | ) |
| Adjusted | | $ | 397.9 | | $ | 231.2 | | $ | 177.4 | | $ | 1.32 | |
| As a % of reported sales | | 41.1 | % | 23.9 | % | | |
| Diluted weighted average shares outstanding | | | | | |
| Reported | | | | | 140.8 | |
| Weighted-average effect from December 28, 2014 to March 28, 2015 of 6.8 million shares issued on November 26, 2014 to finance the Omega acquisition, which closed on March 30, 2015. In addition, effect of dilution as reported amount was a loss, while adjusted amount was income*. | (6.3 | ) |
| Adjusted | | | | | 134.5 | |
| 2015 QTD Net sales excluding the U.S. VMS business | | | | | Net Sales | |
| Reported | | | | | $ | 967.2 | |
| Operating results attributable to held-for-sale businesses | | | | | (37.5 | ) |
| Adjusted | | | | | $ | 929.7 | |
| *In the period of a net loss, diluted shares outstanding equal basic shares outstanding. | |
| **The non-GAAP tax adjustment includes the following: ( 1) $1.0 million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; and (2) $(18.6) million of tax effects on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income. | |
| Table I (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS ENDED FOR CALENDAR YEAR 2015 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | June 27, 2015 |
| Consolidated | Net Sales | Gross Profit | Operating Income | Net Income (Loss) | Diluted Earnings (Loss) per Share |
| Reported | $ | 1,415.2 | | $ | 601.0 | | $ | 192.3 | | $ | (22.2 | ) | $ | (0.15 | ) |
| As a % of sales | | 42.5 | % | 13.6 | % | | |
| Adjustments: | | | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 51.7 | | $ | 85.7 | | $ | 85.7 | | $ | 0.59 | |
| R&D payment made in connection with a collaborative agreement | | - | | 18.0 | | 18.0 | | 0.12 | |
| Impairment charges | | - | | 7.2 | | 9.0 | | 0.06 | |
| Restructuring charges | | - | | (0.1 | ) | (0.1 | ) | - | |
| Tysabri royalty stream - change in fair value | | - | | - | | 69.2 | | 0.47 | |
| Losses on acquisition-related foreign currency hedges | | - | | - | | 5.5 | | 0.04 | |
| Acquisition and integration-related charges | | 0.5 | | 20.2 | | 20.2 | | 0.14 | |
| Legal and consulting fees related to Mylan defense | | - | | 13.4 | | 13.4 | | 0.09 | |
| Losses on equity method investments | | - | | - | | 5.1 | | 0.03 | |
| Loss on early debt extinguishment | | - | | - | | 0.9 | | 0.01 | |
| Non-GAAP tax adjustments* | | - | | - | | 23.2 | | 0.16 | |
| Adjusted | | $ | 653.2 | | $ | 336.7 | | $ | 227.9 | | $ | 1.56 | |
| As a % of reported sales | | 46.2 | % | 23.8 | % | | |
| Diluted weighted average shares outstanding | | | | | |
| Reported | | | | | 146.3 | |
| Effect of dilution as reported amount was a loss, while adjusted amount was income** | 0.5 | |
| Adjusted | | | | | 146.8 | |
| 2015 QTD Net sales excluding the U.S. VMS business and the European sports brand | | Net Sales |
| Reported | | | | | $ | 1,415.2 | |
| Operating results attributable to held-for-sale businesses | | | (39.7 | ) |
| Adjusted | | | | | $ | 1,375.5 | |
| *The non-GAAP tax adjustment includes the following: (1) $(44.4) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; (2) $21.1 million of tax effects on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes; and (3) $46.5 million of discrete income tax adjustments related to debt restructuring for the acquisition of Omega. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income. |
| **In the period of a net loss, diluted shares outstanding equal basic shares outstanding. | |
| Table I (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS ENDED FOR CALENDAR YEAR 2015 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | September 26, 2015 |
| Consolidated | Net Sales | Gross Profit | Operating Income | Net Income | Diluted Earnings per Share |
| Reported | $ | 1,273.2 | | $ | 535.2 | | $ | 175.3 | | $ | 260.9 | | $ | 1.78 | |
| As a % of sales | | 42.0 | % | 13.8 | % | | |
| Adjustments: | | | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 37.8 | | $ | 76.2 | | $ | 76.3 | | $ | 0.51 | |
| Restructuring charges | | - | | 2.2 | | 2.2 | | 0.01 | |
| Tysabri royalty stream - change in fair value | | - | | - | | (173.8 | ) | (1.18 | ) |
| Losses on acquisition-related foreign currency hedges | | - | | - | | 4.7 | | 0.03 | |
| Acquisition and integration-related charges | | - | | 4.1 | | 3.9 | | 0.03 | |
| Legal and consulting fees related to Mylan defense | | - | | 15.6 | | 15.6 | | 0.11 | |
| Losses on equity method investments | | - | | - | | 2.5 | | 0.02 | |
| Non-GAAP tax adjustments* | | - | | - | | (1.0 | ) | (0.01 | ) |
| Adjusted | | $ | 573.0 | | $ | 273.4 | | $ | 191.3 | | $ | 1.30 | |
| As a % of reported sales | | 45.0 | % | 21.5 | % | | |
| Diluted weighted average shares outstanding | | | | | 146.9 | |
| 2015 QTD Net sales excluding the U.S. VMS business and the European sports brand | | Net Sales |
| Reported | | | | | $ | 1,273.2 | |
| Operating results attributable to held-for-sale businesses | | | | | (40.9 | ) |
| Adjusted | | | | | $ | 1,232.3 | |
| *The non-GAAP tax adjustment includes the following: (1) $(0.6) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; and (2) a $(0.4) million effect on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income. |
| Table I (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS ENDED FOR CALENDAR YEAR 2015 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | December 31, 2015 |
| Consolidated | Net Sales | Gross Profit | Operating Income (Loss) | Net Income (Loss) | Diluted Earnings (Loss) per Share |
| Reported | $ | 1,359.1 | | $ | 543.7 | | $ | (107.7 | ) | $ | (218.4 | ) | $ | (1.51 | ) |
| As a % of sales | | 40.0 | % | (7.9 | )% | | |
| Adjustments: | | | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 38.2 | | $ | 54.9 | | $ | 54.9 | | $ | 0.38 | |
| Acquisition and integration-related charges | | - | | 8.5 | | 9.3 | | 0.06 | |
| Legal and consulting fees related to Mylan defense | | - | | 71.3 | | 71.3 | | 0.49 | |
| Impairment charges | | - | | 215.6 | | 226.3 | | 1.56 | |
| Unusual litigation | | - | | (1.7 | ) | (1.7 | ) | (0.01 | ) |
| Losses on equity method investments | | - | | - | | 2.7 | | 0.02 | |
| Loss on debt extinguishment | | - | | - | | 0.9 | | 0.01 | |
| Restructuring charges | | - | | 24.7 | | 24.7 | | 0.17 | |
| Tysabri royalty stream - change in fair value | | - | | - | | 116.6 | | 0.80 | |
| Non-GAAP tax adjustments* | | - | | - | | (84.2 | ) | (0.58 | ) |
| Adjusted | | $ | 581.9 | | $ | 265.6 | | $ | 202.4 | | $ | 1.39 | |
| As a % of reported sales | | 42.8 | % | 19.5 | % | | |
| Diluted weighted average shares outstanding | | | | | |
| Reported | | | | | 144.9 | |
| In addition, effect of dilution as reported amount was a loss, while adjusted amount was income** | 0.5 | |
| Adjusted | | | | | 145.4 | |
| 2015 QTD Net Sales excluding the U.S. VMS business and the European sports brand | Net Sales |
| Reported | | | | | $ | 1,359.1 | |
| Operating results attributable to held-for-sale businesses | | | | | (44.5 | ) |
| Adjusted | | | | | $ | 1,314.6 | |
| *The non-GAAP tax adjustment includes the following: (1) $(91.4) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; (2) a $0.4 million effect on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes; and (3) $6.8 million of discrete income tax adjustments related to debt restructuring for the acquisition of Omega. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income. |
| **In the period of a net loss, diluted shares outstanding equal basic shares outstanding. | |
| Table I (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| CALENDAR YEAR TO DATE 2015 |
| (in millions) |
| (unaudited) |
| | Twelve Months Ended |
| | December 31, 2015 |
| Consolidated | Net Sales | Gross Profit | Operating Income | Net Income (Loss) | Diluted Earnings (Loss) per Share |
| Reported | $ | 5,014.7 | | $ | 2,049.4 | | $ | 450.4 | | $ | (1.9 | ) | $ | (0.01 | ) |
| As a % of sales | | 40.9 | % | 9.0 | % | | |
| Adjustments: | | | | | |
| Amortization expense related to acquired intangible assets | | $ | 156.1 | | $ | 251.7 | | $ | 251.7 | | $ | 1.76 | |
| Losses on acquisition-related foreign currency hedges | | - | | - | | 268.5 | | 1.87 | |
| Acquisition and integration-related charges | | - | | 35.2 | | 35.7 | | 0.25 | |
| R&D payment made in connection with a collaborative agreement | | - | | 18.0 | | 18.0 | | 0.13 | |
| Legal and consulting fees related to Mylan defense | | - | | 100.3 | | 100.3 | | 0.70 | |
| Impairment charges | | - | | 222.8 | | 235.3 | | 1.64 | |
| Losses on equity method investments | | - | | - | | 10.7 | | 0.07 | |
| Restructuring charges | | 0.4 | | 28.2 | | 28.2 | | 0.20 | |
| Tysabri royalty stream - change in fair value | | - | | - | | (88.8 | ) | (0.62 | ) |
| Unusual litigation | | - | | 0.3 | | 0.3 | | - | |
| Loss on debt extinguishment | | - | | - | | 20.5 | | 0.14 | |
| Non-GAAP tax adjustments* | | - | | - | | (79.6 | ) | (0.56 | ) |
| Adjusted | | $ | 2,205.9 | | $ | 1,106.9 | | $ | 798.9 | | $ | 5.57 | |
| As a % of reported sales | | 44.0 | % | 22.1 | % | | |
| Diluted weighted average shares outstanding | | | | | |
| Reported | | | | | 144.6 | |
| Weighted average effect of 6.8 million shares issued on November 26, 2014 to finance the Omega acquisition, which closed on March 30, 2015. In addition, effect of dilution as reported amount was a loss, while adjusted amount was income** | (1.2 | ) |
| Adjusted | | | | | 143.4 | |
| 2015 YTD Net Sales excluding the U.S. VMS business and the European sports brand | | Net Sales | |
| Reported | | | | | $ | 5,014.7 | |
| Operating results attributable to held-for-sale businesses | | | | | (162.6 | ) |
| Adjusted | | | | | $ | 4,852.1 | |
| * The non-GAAP tax adjustment includes the following: (1) $(135.5) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; (2) a $2.5 million effect on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes; and (3) $53.4 million of discrete income tax adjustments related to debt restructuring for the acquisition of Omega. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income. |
| **In the period of a net loss, diluted shares outstanding equal basic shares outstanding. |
| Table I (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| CALENDAR YEAR TO DATE 2014 |
| (in millions) |
| (unaudited) |
| | Twelve Months Ended |
| | December 27, 2014 |
| Consolidated | Net Sales | Gross Profit | Operating Income | Net Income | Diluted Earnings per Share |
| Reported | $ | 3,853.8 | | $ | 1,407.7 | | $ | 593.6 | | $ | 380.5 | | $ | 2.81 | |
| As a % of sales | | 36.5 | % | 15.4 | % | | |
| Adjustments: | | | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 105.7 | | $ | 132.2 | | $ | 132.2 | | $ | 1.00 | |
| Losses from derivatives associated primarily with the Omega acquisition | | - | | - | | 64.9 | | 0.48 | |
| Tysabri royalty stream - change in fair value | | - | | - | | (66.2 | ) | (0.49 | ) |
| Acquisition and integration-related charges | | 0.8 | | 23.5 | | 29.7 | | 0.22 | |
| Restructuring charges | | - | | 34.2 | | 34.2 | | 0.25 | |
| Loss on extinguishment of debt | | - | | - | | 9.6 | | 0.07 | |
| Initial payment made in connection with an R&D arrangement | | - | | 10.0 | | 10.0 | | 0.07 | |
| Investment losses | | - | | - | | 12.7 | | 0.09 | |
| Losses on equity method investments | | - | | - | | 10.2 | | 0.08 | |
| Unusual litigation | | - | | 17.8 | | 17.8 | | 0.13 | |
| Transfer of rights agreement | | - | | - | | (12.5 | ) | (0.09 | ) |
| Non-GAAP tax adjustments** | | - | | - | | (52.8 | ) | (0.39 | ) |
| Adjusted | | $ | 1,514.2 | | $ | 811.3 | | $ | 570.3 | | $ | 4.23 | |
| As a % of reported sales | | 39.3 | % | 21.1 | % | | |
| Diluted weighted average shares outstanding | | | | | |
| Reported | | | | | 135.0 | |
| Weighted-average effect from November 26, 2014 to December 27, 2014 of 6.8 million shares issued on November 26, 2014 to finance the Omega acquisition. | (0.6 | ) |
| Adjusted | | | | | 134.4 | |
| **The non-GAAP tax adjustment includes the following: ( 1) $(46.8) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; (2) $(2.5) million of tax effects on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes; and (3) $(1.5) million of discrete income tax adjustments related to prior year tax credits. The GAAP benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income. |
SELECTED SEGMENT INFORMATION
QUARTERS AND CALENDAR YEAR TO DATE 2016
| | Three Months Ended | | Twelve Months Ended |
| Consumer Healthcare Americas | April 2, 2016 | | July 2, 2016 | | October 1, 2016 | | December 31, 2016 | | December 31, 2016 |
| Net sales | $ | 639.1 | | | $ | 630.0 | | | $ | 611.2 | | | $ | 626.8 | | | $ | 2,507.1 | |
| Gross profit | $ | 196.0 | | | $ | 220.0 | | | $ | 199.2 | | | $ | 210.0 | | | $ | 825.2 | |
| Operating income | $ | 100.6 | | | $ | 116.8 | | | $ | 99.0 | | | $ | 83.3 | | | $ | 399.8 | |
| Selected ratios as a percentage of net sales | | | | | | |
| Gross profit | 30.7 | % | | 34.9 | % | | 32.6 | % | | 33.5 | % | | 32.9 | % |
| Operating income | 15.7 | % | | 18.5 | % | | 16.2 | % | | 13.3 | % | | 15.9 | % |
| | Three Months Ended | Twelve Months Ended |
| Consumer Healthcare International | April 2, 2016 | | July 2, 2016 | | October 1, 2016 | | December 31, 2016 | | December 31, 2016 |
| Net sales | $ | 439.4 | | | $ | 415.9 | | | $ | 377.4 | | | $ | 419.5 | | | $ | 1,652.2 | |
| Gross profit | $ | 199.3 | | | $ | 187.6 | | | $ | 155.2 | | | $ | 151.3 | | | $ | 693.4 | |
| Operating income (loss) | $ | (396.4 | ) | | $ | 0.6 | | | $ | (1,615.5 | ) | | $ | (76.1 | ) | | $ | (2,087.4 | ) |
| Selected ratios as a percentage of net sales | | | | | | |
| Gross profit | 45.4 | % | | 45.1 | % | | 41.1 | % | | 36.1 | % | | 42.0 | % |
| Operating income (loss) | (90.2 | )% | | 0.1 | % | | (428.1 | )% | | (18.1 | )% | | (126.3 | )% |
| | Three Months Ended | | Twelve Months Ended |
| Prescription Pharmaceuticals | April 2, 2016 | | July 2, 2016 | | October 1, 2016 | | December 31, 2016 | | December 31, 2016 |
| Net sales | $ | 248.2 | | | $ | 276.9 | | | $ | 251.9 | | | $ | 265.9 | | | $ | 1,042.8 | |
| Gross profit | $ | 127.9 | | | $ | 131.4 | | | $ | 120.9 | | | $ | 121.0 | | | $ | 501.1 | |
| Operating income (loss) | $ | 91.4 | | | $ | 92.6 | | | $ | 74.4 | | | $ | (258.5 | ) | | $ | (0.2 | ) |
| Selected ratios as a percentage of net sales | | | | | | |
| Gross profit | 51.5 | % | | 47.5 | % | | 48.0 | % | | 45.5 | % | | 48.1 | % |
| Operating income (loss) | 36.8 | % | | 33.5 | % | | 29.5 | % | | (97.3 | )% | | - | % |
SELECTED SEGMENT INFORMATION
QUARTERS AND CALENDAR YEAR TO DATE 2015
| | Three Months Ended | | Twelve Months Ended |
| Consumer Healthcare Americas | March 28, 2015 | | June 27, 2015 | | September 26, 2015 | | December 31, 2015 | | December 31, 2015 |
| Net sales | $ | 622.8 | | | $ | 679.9 | | | $ | 608.3 | | | $ | 643.2 | | | $ | 2,554.2 | |
| Gross profit | $ | 196.9 | | | $ | 231.9 | | | $ | 211.6 | | | $ | 206.2 | | | $ | 846.7 | |
| Operating income | $ | 104.0 | | | $ | 126.7 | | | $ | 116.2 | | | $ | 92.8 | | | $ | 439.9 | |
| Selected ratios as a percentage of net sales | | | | | | |
| Gross profit | 31.6 | % | | 34.1 | % | | 34.8 | % | | 32.1 | % | | 33.2 | % |
| Operating income | 16.7 | % | | 18.6 | % | | 19.1 | % | | 14.4 | % | | 17.2 | % |
| | Three Months Ended | | Twelve Months Ended |
| Consumer Healthcare International* | March 28, 2015 | | June 27, 2015 | | September 26, 2015 | | December 31, 2015 | | December 31, 2015 |
| Net sales | $ | 76.6 | | | $ | 450.9 | | | $ | 398.8 | | | $ | 434.3 | | | $ | 1,360.6 | |
| Gross profit | $ | 21.2 | | | $ | 207.4 | | | $ | 189.7 | | | $ | 196.3 | | | $ | 614.7 | |
| Operating income (loss) | $ | 2.3 | | | $ | 21.8 | | | $ | 7.0 | | | $ | (155.5 | ) | | $ | (124.3 | ) |
| Selected ratios as a percentage of net sales | | | | | | |
| Gross profit | 27.7 | % | | 46.0 | % | | 47.6 | % | | 45.2 | % | | 45.2 | % |
| Operating income (loss) | 2.9 | % | | 4.8 | % | | 1.8 | % | | (35.8 | )% | | (9.1 | )% |
| * We acquired Omega on March 30, 2015, thus data for the twelve months ended December 31, 2015 includes only nine months of results from operations attributable to Omega. |
| | Three Months Ended | | Twelve Months Ended |
| Prescription Pharmaceuticals | March 28, 2015 | | June 27, 2015 | | September 26, 2015 | | December 31, 2015 | | December 31, 2015 |
| Net sales | $ | 237.0 | | | $ | 262.2 | | | $ | 243.6 | | | $ | 259.1 | | | $ | 1,001.9 | |
| Gross profit | $ | 135.5 | | | $ | 154.3 | | | $ | 122.8 | | | $ | 130.8 | | | $ | 543.3 | |
| Operating income | $ | 98.1 | | | $ | 97.8 | | | $ | 87.7 | | | $ | 94.3 | | | $ | 377.8 | |
| Selected ratios as a percentage of net sales | | | | | | |
| Gross profit | 57.2 | % | | 58.9 | % | | 50.4 | % | | 50.5 | % | | 54.2 | % |
| Operating income | 41.4 | % | | 37.3 | % | | 36.0 | % | | 36.4 | % | | 37.7 | % |
SELECTED SEGMENT INFORMATION
CALENDAR YEAR TO DATE 2014
| | | | Twelve Months Ended |
| Consumer Healthcare Americas | | | December 27, 2014 |
| Net sales | | | $ | 2,503.6 | |
| Gross profit | | | $ | 776.7 | |
| Operating income | | | $ | 354.2 | |
| Selected ratios as a percentage of net sales | |
| Gross profit | | | 31.0 | % |
| Operating income | | | 14.1 | % |
| | | | Twelve Months Ended |
| Consumer Healthcare International | | | December 27, 2014 |
| Net sales | | | $ | 348.7 | |
| Gross profit | | | $ | 107.6 | |
| Operating income | | | $ | 24.6 | |
| Selected ratios as a percentage of net sales | | |
| Gross profit | | | 30.8 | % |
| Operating income | | | 7.1 | % |
| | | | Twelve Months Ended |
| Prescription Pharmaceuticals | | | December 27, 2014 |
| Net sales | | | $ | 882.1 | |
| Gross profit | | | $ | 466.5 | |
| Operating income | | | $ | 330.7 | |
| Selected ratios as a percentage of net sales | |
| Gross profit | | | 52.9 | % |
| Operating income | | | 37.5 | % |
ADJUSTED SELECTED SEGMENT INFORMATION (1)
QUARTERS AND CALENDAR YEAR TO DATE 2016
| | Three Months Ended | | Twelve Months Ended |
| Consumer Healthcare Americas | April 2, 2016 | | July 2, 2016 | | October 1, 2016 | | December 31, 2016 | | December 31, 2016 |
| Adjusted net sales | $ | 592.0 | | | $ | 587.8 | | | $ | 590.2 | | | NA* | | | $ | 2,396.9 | |
| Adjusted gross profit | $ | 204.6 | | | $ | 226.3 | | | $ | 209.1 | | | $ | 222.6 | | | $ | 862.6 | |
| Adjusted operating income | $ | 120.7 | | | $ | 138.8 | | | $ | 125.2 | | | $ | 139.4 | | | $ | 524.2 | |
| Selected ratios as a percentage of adjusted net sales | | | | | | |
| Adjusted gross profit | 34.6 | % | | 38.5 | % | | 35.4 | % | | 35.5 | % | ** | 36.0 | % |
| Adjusted operating income | 20.4 | % | | 23.6 | % | | 21.2 | % | | 22.2 | % | ** | 21.9 | % |
| | Three Months Ended | | Twelve Months Ended |
| Consumer Healthcare International | April 2, 2016 | | July 2, 2016 | | October 1, 2016 | | December 31, 2016 | | December 31, 2016 |
| Adjusted net sales | NA* | | | $ | 415.8 | | | $ | 377.2 | | | NA* | | | $ | 1,652.0 | |
| Adjusted gross profit | $ | 212.4 | | | $ | 205.4 | | | $ | 172.3 | | | $ | 175.7 | | | $ | 765.8 | |
| Adjusted operating income | $ | 54.8 | | | $ | 56.6 | | | $ | 40.5 | | | $ | 36.4 | | | $ | 188.2 | |
| Selected ratios as a percentage of adjusted net sales | | | | | | |
| Adjusted gross profit | 48.3 | % | ** | 49.4 | % | | 45.7 | % | | 41.9 | % | ** | 46.4 | % |
| Adjusted operating income | 12.5 | % | ** | 13.6 | % | | 10.7 | % | | 8.7 | % | ** | 11.4 | % |
| | Three Months Ended | | Twelve Months Ended |
| Prescription Pharmaceuticals | April 2, 2016 | | July 2, 2016 | | October 1, 2016 | | December 31, 2016 | | December 31, 2016 |
| Adjusted gross profit | $ | 153.1 | | | $ | 157.4 | | | $ | 148.0 | | | $ | 149.0 | | | $ | 607.5 | |
| Adjusted operating income | $ | 116.9 | | | $ | 118.5 | | | $ | 106.5 | | | $ | 115.0 | | | $ | 456.9 | |
| Selected ratios as a percentage of reported net sales | | | | | | |
| Adjusted gross profit | 61.7 | % | | 56.8 | % | | 58.7 | % | | 56.1 | % | | 58.3 | % |
| Adjusted operating income | 47.1 | % | | 42.8 | % | | 42.3 | % | | 43.2 | % | | 43.8 | % |
| * No adjusted sales in the period | | | | | | | | | |
| ** Selected ratios as a percentage of reported net sales | | | | | | | | |
ADJUSTED SELECTED SEGMENT INFORMATION (1)
QUARTERS AND CALENDAR YEAR TO DATE 2015
| | Three Months Ended | | Twelve Months Ended |
| Consumer Healthcare Americas | March 28, 2015 | | June 27, 2015 | | September 26, 2015 | | December 31, 2015 | | December 31, 2015 |
| Adjusted gross profit | $ | 205.7 | | | $ | 241.1 | | | $ | 224.4 | | | $ | 218.4 | | | $ | 889.7 | |
| Adjusted operating income | $ | 119.2 | | | $ | 147.7 | | | $ | 135.6 | | | $ | 125.3 | | | $ | 527.8 | |
| Selected ratios as a percentage of reported net sales | | | | | | |
| Adjusted gross profit | 33.0 | % | | 35.5 | % | | 36.9 | % | | 34.0 | % | | 34.8 | % |
| Adjusted operating income | 19.1 | % | | 21.7 | % | | 22.3 | % | | 19.5 | % | | 20.7 | % |
| | Three Months Ended | | Twelve Months Ended |
| Consumer Healthcare International* | March 28, 2015 | | June 27, 2015 | | September 26, 2015 | | December 31, 2015 | | December 31, 2015 |
| Adjusted gross profit | $ | 26.1 | | | $ | 235.1 | | | $ | 199.9 | | | $ | 207.7 | | | $ | 668.8 | |
| Adjusted operating income | $ | 8.4 | | | $ | 78.8 | | | $ | 53.2 | | | $ | 52.6 | | | $ | 193.1 | |
| Selected ratios as a percentage of reported net sales | | | | | | |
| Adjusted gross profit | 34.1 | % | | 52.1 | % | | 50.1 | % | | 47.8 | % | | 49.2 | % |
| Adjusted operating income | 10.9 | % | | 17.5 | % | | 13.3 | % | | 12.1 | % | | 14.2 | % |
| * We acquired Omega on March 30, 2015, thus data for the twelve months ended December 31, 2015 includes only nine months of results from operations attributable to Omega. |
| | Three Months Ended | | Twelve Months Ended |
| Prescription Pharmaceuticals | March 28, 2015 | | June 27, 2015 | | September 26, 2015 | | December 31, 2015 | | December 31, 2015 |
| Adjusted gross profit | $ | 149.8 | | | $ | 169.1 | | | $ | 137.1 | | | $ | 145.0 | | | $ | 601.0 | |
| Adjusted operating income | $ | 114.4 | | | $ | 131.5 | | | $ | 101.9 | | | $ | 109.2 | | | $ | 457.0 | |
| Selected ratios as a percentage of reported net sales | | | | | | |
| Adjusted gross profit | 63.2 | % | | 64.5 | % | | 56.3 | % | | 56.0 | % | | 60.0 | % |
| Adjusted operating income | 48.2 | % | | 50.2 | % | | 41.9 | % | | 42.1 | % | | 45.6 | % |
(1) See attached Table II for reconciliation to GAAP numbers.
ADJUSTED SELECTED SEGMENT INFORMATION (1)
CALENDAR YEAR TO DATE 2014
| | | | Twelve Months Ended |
| Consumer Healthcare Americas | | | December 27, 2014 |
| Adjusted gross profit | | | $ | 807.2 | |
| Adjusted operating income | | | $ | 425.5 | |
| Selected ratios as a percentage of reported net sales | |
| Adjusted gross profit | | | 32.2 | % |
| Adjusted operating income | | | 17.0 | % |
| | | | Twelve Months Ended |
| Consumer Healthcare International | | | December 27, 2014 |
| Adjusted gross profit | | | $ | 129.3 | |
| Adjusted operating income | | | $ | 52.4 | |
| Selected ratios as a percentage of reported net sales | |
| Adjusted gross profit | | | 37.1 | % |
| Adjusted operating income | | | 15.0 | % |
| | | | Twelve Months Ended |
| Prescription Pharmaceuticals | | | December 27, 2014 |
| Adjusted gross profit | | | $ | 518.7 | |
| Adjusted operating income | | | $ | 404.0 | |
| Selected ratios as a percentage of reported net sales | |
| Adjusted gross profit | | | 58.8 | % |
| Adjusted operating income | | | 45.8 | % |
(1) See attached Table II for reconciliation to GAAP numbers.
| Table II |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS AND CALENDAR YEAR TO DATE 2016 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | April 2, 2016 |
| Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 639.1 | | $ | 196.0 | | $ | 100.6 | |
| As a % of sales | | 30.7 | % | 15.7 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | $ | - | | $ | 12.8 | | $ | 18.1 | |
| Operating results attributable to held-for-sale business | (47.1 | ) | (7.0 | ) | (2.5 | ) |
| Restructuring charges | - | | - | | 1.5 | |
| Acquisition and integration-related charges | - | | 2.8 | | 3.0 | |
| Adjusted | $ | 592.0 | | $ | 204.6 | | $ | 120.7 | |
| As a % of sales | | 34.6 | % | 20.4 | % |
| | Three Months Ended |
| | July 2, 2016 |
| Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 630.0 | | $ | 220.0 | | $ | 116.8 | |
| As a % of sales | | 34.9 | % | 18.5 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | $ | - | | $ | 12.5 | | $ | 17.6 | |
| Impairment charges | - | | - | | 6.2 | |
| Operating results attributable to held-for-sale business | (42.2 | ) | (7.2 | ) | (3.1 | ) |
| Restructuring charges | - | | - | | 0.3 | |
| Acquisition and integration-related charges | - | | 1.0 | | 1.0 | |
| Adjusted | $ | 587.8 | | $ | 226.3 | | $ | 138.8 | |
| As a % of sales | | 38.5 | % | 23.6 | % |
| | Three Months Ended |
| | October 1, 2016 |
| Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 611.2 | | $ | 199.2 | | $ | 99.0 | |
| As a % of sales | | 32.6 | % | 16.2 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | $ | - | | $ | 12.5 | | $ | 17.6 | |
| Impairment charges | - | | - | | 3.7 | |
| Operating results attributable to held-for-sale business | (21.0 | ) | (3.4 | ) | (0.1 | ) |
| Restructuring charges | - | | - | | 3.9 | |
| Acquisition and integration-related charges | - | | 0.8 | | 1.1 | |
| Adjusted | $ | 590.2 | | $ | 209.1 | | $ | 125.2 | |
| As a % of sales | | 35.4 | % | 21.2 | % |
| Table II (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS AND CALENDAR YEAR TO DATE 2016 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | December 31, 2016 |
| Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 626.8 | | $ | 210.0 | | $ | 83.3 | |
| As a % of sales | | 33.5 | % | 13.3 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 12.6 | | $ | 17.7 | |
| Unusual litigation | | - | | 10.2 | |
| Impairment charges | | - | | 27.1 | |
| Restructuring charges | | - | | (0.1 | ) |
| Acquisition and integration-related charges | | - | | 1.2 | |
| Adjusted | | $ | 222.6 | | $ | 139.4 | |
| As a % of reported sales | | 35.5 | % | 22.2 | % |
| | Twelve Months Ended |
| | December 31, 2016 |
| Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 2,507.1 | | $ | 825.2 | | $ | 399.8 | |
| As a % of sales | | 32.9 | % | 15.9 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | $ | - | | $ | 50.3 | | $ | 71.0 | |
| Unusual litigation | - | | - | | 10.2 | |
| Impairment charges | - | | - | | 37.0 | |
| Operating results attributable to held-for-sale business | (110.2 | ) | (17.6 | ) | (5.7 | ) |
| Restructuring charges | - | | - | | 5.6 | |
| Acquisition and integration-related charges | - | | 4.7 | | 6.3 | |
| Adjusted | $ | 2,396.9 | | $ | 862.6 | | $ | 524.2 | |
| As a % of sales | | 36.0 | % | 21.9 | % |
| | Three Months Ended |
| | April 2, 2016 |
| Consumer Healthcare International | Net Sales | Gross Profit | Operating Income (Loss) |
| Reported | $ | 439.4 | | $ | 199.3 | | $ | (396.4 | ) |
| As a % of sales | | 45.4 | % | (90.2 | )% |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 13.1 | | $ | 42.9 | |
| Impairment charges | | - | | 403.9 | |
| Restructuring charges | | - | | 3.1 | |
| Acquisition and integration-related charges | | - | | 1.3 | |
| Adjusted | | $ | 212.4 | | $ | 54.8 | |
| As a % of reported sales | | 48.3 | % | 12.5 | % |
| Table II (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS AND CALENDAR YEAR TO DATE 2016 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | July 2, 2016 |
| Consumer Healthcare International | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 415.9 | | $ | 187.6 | | $ | 0.6 | |
| As a % of sales | | 45.1 | % | 0.1 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | $ | - | | $ | 17.1 | | $ | 46.6 | |
| Impairment charges | - | | - | | - | |
| Operating results attributable to held-for-sale business | (0.1 | ) | 0.7 | | 4.8 | |
| Restructuring charges | - | | - | | 4.8 | |
| Acquisition and integration-related charges | - | | - | | (0.2 | ) |
| Adjusted | $ | 415.8 | | $ | 205.4 | | $ | 56.6 | |
| As a % of sales | | 49.4 | % | 13.6 | % |
| | Three Months Ended |
| | October 1, 2016 |
| Consumer Healthcare International | Net Sales | Gross Profit | Operating Income (Loss) |
| Reported | $ | 377.4 | | $ | 155.2 | | $ | (1,615.5 | ) |
| As a % of sales | | 41.1 | % | (428.1 | )% |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | $ | - | | $ | 16.9 | | $ | 46.3 | |
| Impairment charges | - | | - | | 1,604.5 | |
| Operating results attributable to held-for-sale business | (0.2 | ) | 0.2 | | 3.0 | |
| Restructuring charges | - | | - | | 2.5 | |
| Acquisition and integration-related charges | - | | - | | (0.3 | ) |
| Adjusted | $ | 377.2 | | $ | 172.3 | | $ | 40.5 | |
| As a % of sales | | 45.7 | % | 10.7 | % |
| | Three Months Ended |
| | December 31, 2016 |
| Consumer Healthcare International | Net Sales | Gross Profit | Operating Income (Loss) |
| Reported | $ | 419.5 | | $ | 151.3 | | $ | (76.1 | ) |
| As a % of sales | | 36.1 | % | (18.1 | )% |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 20.8 | | $ | 48.4 | |
| Impairment charges | | - | | 34.1 | |
| Operating results attributable to held-for-sale business | | 3.6 | | 10.3 | |
| Restructuring charges | | - | | 10.5 | |
| Unusual litigation | | - | | 8.2 | |
| Acquisition and integration-related charges | | - | | 1.0 | |
| Adjusted | | $ | 175.7 | | $ | 36.4 | |
| As a % of reported sales | | 41.9 | % | 8.7 | % |
| Table II (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS AND CALENDAR YEAR TO DATE 2016 |
| (in millions) |
| (unaudited) |
| | Twelve Months Ended |
| | December 31, 2016 |
| Consumer Healthcare International | Net Sales | Gross Profit | Operating Income (Loss) |
| Reported | $ | 1,652.2 | | $ | 693.4 | | $ | (2,087.4 | ) |
| As a % of sales | | 42.0 | % | (126.3 | )% |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | $ | - | | $ | 68.1 | | $ | 184.2 | |
| Impairment charges | - | | - | | 2,042.4 | |
| Operating results attributable to held-for-sale business | (0.2 | ) | 4.3 | | 18.0 | |
| Restructuring charges | - | | - | | 20.9 | |
| Unusual litigation | - | | - | | 8.2 | |
| Acquisition and integration-related charges | - | | - | | 1.9 | |
| Adjusted | $ | 1,652.0 | | $ | 765.8 | | $ | 188.2 | |
| As a % of sales | | 46.4 | % | 11.4 | % |
| | Three Months Ended |
| | April 2, 2016 |
| Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 248.2 | | $ | 127.9 | | $ | 91.4 | |
| As a % of sales | | 51.5 | % | 36.8 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 25.2 | | $ | 25.5 | |
| Adjusted | | $ | 153.1 | | $ | 116.9 | |
| As a % of reported sales | | 61.7 | % | 47.1 | % |
| | Three Months Ended |
| | July 2, 2016 |
| Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 276.9 | | $ | 131.4 | | $ | 92.6 | |
| As a % of sales | | 47.5 | % | 33.5 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 26.0 | | $ | 25.9 | |
| Adjusted | | $ | 157.4 | | $ | 118.5 | |
| As a % of reported sales | | 56.8 | % | 42.8 | % |
| Table II (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS AND CALENDAR YEAR TO DATE 2016 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | October 1, 2016 |
| Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 251.9 | | $ | 120.9 | | $ | 74.4 | |
| As a % of sales | | 48.0 | % | 29.5 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 27.1 | | $ | 27.1 | |
| Acquisition and integration-related charges | | - | | 5.0 | |
| Adjusted | | $ | 148.0 | | $ | 106.5 | |
| As a % of reported sales | | 58.7 | % | 42.3 | % |
| | Three Months Ended |
| | December 31, 2016 |
| Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income (Loss) |
| Reported | $ | 265.9 | | $ | 121.0 | | $ | (258.5 | ) |
| As a % of sales | | 45.5 | % | (97.3 | )% |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 28.0 | | $ | 28.1 | |
| Impairment charges | | - | | 342.4 | |
| Restructuring charges | | - | | 2.1 | |
| Acquisition and integration-related charges | | - | | 0.9 | |
| Adjusted | | $ | 149.0 | | $ | 115.0 | |
| As a % of reported sales | | 56.1 | % | 43.2 | % |
| | Twelve Months Ended |
| | December 31, 2016 |
| Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income (Loss) |
| Reported | $ | 1,042.8 | | $ | 501.1 | | $ | (0.2 | ) |
| As a % of sales | | 48.1 | % | - | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 106.4 | | $ | 106.7 | |
| Impairment charges | | - | | 342.4 | |
| Restructuring charges | | - | | 2.1 | |
| Acquisition and integration-related charges | | - | | 5.9 | |
| Adjusted | | $ | 607.5 | | $ | 456.9 | |
| As a % of reported sales | | 58.3 | % | 43.8 | % |
| Table II (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS AND CALENDAR YEAR TO DATE 2015 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | March 28, 2015 |
| Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 622.8 | | $ | 196.9 | | $ | 104.0 | |
| As a % of reported net sales | | 31.6 | % | 16.7 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 8.8 | | $ | 14.1 | |
| Restructuring charges | | - | | 1.1 | |
| Adjusted | | $ | 205.7 | | $ | 119.2 | |
| As a % of reported net sales | | 33.0 | % | 19.1 | % |
| For Comparative Purposes* | | | |
| Reported | $ | 622.8 | | | |
| Operating results attributable to held-for-sale business | (37.5 | ) | | |
| Adjusted | $ | 585.3 | | | |
| *Q1 2015 net sales adjustment is made for comparison purposes only and does not change any other prior year financial information or metrics since the U.S. VMS business was not held-for-sale in 2015. Q1 2015 gross margin and operating margin use reported net sales as the denominator. |
| | Three Months Ended |
| | June 27, 2015 |
| Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 679.9 | | $ | 231.9 | | $ | 126.7 | |
| As a % of reported net sales | | 34.1 | % | 18.6 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 9.2 | | $ | 14.6 | |
| Impairment charges | | - | | 6.8 | |
| Restructuring charges | | - | | (0.4 | ) |
| Adjusted | | $ | 241.1 | | $ | 147.7 | |
| As a % of reported net sales | | 35.5 | % | 21.7 | % |
| For Comparative Purposes* | | | |
| Reported | $ | 679.9 | | | |
| Operating results attributable to held-for-sale business | (39.6 | ) | | |
| Adjusted | $ | 640.3 | | | |
| *Q2 2015 net sales adjustment is made for comparison purposes only and does not change any other prior year financial information or metrics since the U.S. VMS business was not held-for-sale in 2015. Q2 2015 gross margin and operating margin use reported net sales as the denominator. |
| Table II (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS AND CALENDAR YEAR TO DATE 2015 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | September 26, 2015 |
| Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 608.3 | | $ | 211.6 | | $ | 116.2 | |
| As a % of reported net sales | | 34.8 | % | 19.1 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 12.8 | | $ | 18.0 | |
| Restructuring charges | | - | | 1.9 | |
| Acquisition and integration-related charges | | - | | (0.5 | ) |
| Adjusted | | $ | 224.4 | | $ | 135.6 | |
| As a % of reported net sales | | 36.9 | % | 22.3 | % |
| For Comparative Purposes* | | | |
| Reported | $ | 608.3 | | | |
| Operating results attributable to held-for-sale business | (40.9 | ) | | |
| Adjusted | $ | 567.4 | | | |
| *Q3 2015 net sales adjustment is made for comparison purposes only and does not change any other prior year financial information or metrics since the U.S. VMS business was not held-for-sale in 2015. Q3 2015 gross margin and operating margin use reported net sales as the denominator. |
| | Three Months Ended |
| | December 31, 2015 |
| Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 643.2 | | $ | 206.2 | | $ | 92.8 | |
| As a % of reported net sales | | 32.1 | % | 14.4 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 12.2 | | $ | 17.9 | |
| Impairment charges | | - | | 1.5 | |
| Unusual litigation | | - | | 0.3 | |
| Restructuring charges | | - | | 12.8 | |
| Adjusted | | $ | 218.4 | | $ | 125.3 | |
| As a % of reported net sales | | 34.0 | % | 19.5 | % |
| For Comparative Purposes* | | | |
| Reported | $ | 643.2 | | | |
| Operating results attributable to held-for-sale business | (44.3 | ) | | |
| Adjusted | $ | 598.9 | | | |
| *Q4 2015 net sales adjustment is made for comparison purposes only and does not change any other prior year financial information or metrics since the U.S. VMS business was not held-for-sale in 2015. Q4 2015 gross margin and operating margin use reported net sales as the denominator. |
| Table II (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS AND CALENDAR YEAR TO DATE 2015 |
| (in millions) |
| (unaudited) |
| | Twelve Months Ended |
| | December 31, 2015 |
| Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 2,554.2 | | $ | 846.7 | | $ | 439.9 | |
| As a % of reported net sales | | 33.2 | % | 17.2 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 43.0 | | $ | 64.4 | |
| Impairment charges | | - | | 8.3 | |
| Unusual litigation | | - | | 0.3 | |
| Restructuring charges | | - | | 15.4 | |
| Acquisition and integration-related charges | | - | | (0.5 | ) |
| Adjusted | | $ | 889.7 | | $ | 527.8 | |
| As a % of reported net sales | | 34.8 | % | 20.7 | % |
| For Comparative Purposes* | | | |
| Reported | $ | 2,554.2 | | | |
| Operating results attributable to held-for-sale business | (162.3 | ) | | |
| Adjusted | $ | 2,391.9 | | | |
| *YTD 2015 net sales adjustment is made for comparison purposes only and does not change any other prior year financial information or metrics since the U.S. VMS business was not held-for-sale in 2015. YTD 2015 gross margin and operating margin use reported net sales as the denominator. |
| | Three Months Ended |
| | March 28, 2015 |
| Consumer Healthcare International | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 76.6 | | $ | 21.2 | | $ | 2.3 | |
| As a % of reported net sales | | 27.7 | % | 2.9 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 4.9 | | $ | 6.1 | |
| Adjusted | | $ | 26.1 | | $ | 8.4 | |
| As a % of reported net sales | | 34.1 | % | 10.9 | % |
| Table II (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS AND CALENDAR YEAR TO DATE 2015 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | June 27, 2015 |
| Consumer Healthcare International | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 450.9 | | $ | 207.4 | | $ | 21.8 | |
| As a % of reported net sales | | 46.0 | % | 4.8 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 27.7 | | $ | 56.0 | |
| Restructuring charges | | - | | 0.3 | |
| Acquisition and integration-related charges | | - | | 0.7 | |
| Adjusted | | $ | 235.1 | | $ | 78.8 | |
| As a % of reported net sales | | 52.1 | % | 17.5 | % |
| For Comparative Purposes* | | | |
| Reported | $ | 450.9 | | | |
| Operating results attributable to held-for-sale business | (0.1 | ) | | |
| Adjusted | $ | 450.8 | | | |
| *Q2 2015 net sales adjustment is made for comparison purposes only and does not change any other prior year financial information or metrics since the European sports brand was not held-for-sale in 2015. Q2 2015 gross margin and operating margin use reported net sales as the denominator. |
| | Three Months Ended |
| | September 26, 2015 |
| Consumer Healthcare International | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 398.8 | | $ | 189.7 | | $ | 7.0 | |
| As a % of reported net sales | | 47.6 | % | 1.8 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 10.2 | | $ | 43.2 | |
| Restructuring charges | | - | | 0.2 | |
| Acquisition and integration-related charges | | - | | 2.8 | |
| Adjusted | | $ | 199.9 | | $ | 53.2 | |
| As a % of reported net sales | | 50.1 | % | 13.3 | % |
| Table II (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS AND CALENDAR YEAR TO DATE 2015 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | December 31, 2015 |
| Consumer Healthcare International | Net Sales | Gross Profit | Operating Income (Loss) |
| Reported | $ | 434.3 | | $ | 196.3 | | $ | (155.5 | ) |
| As a % of reported net sales | | 45.2 | % | (35.8 | )% |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 11.4 | | $ | 23.0 | |
| Impairment charges | | - | | 185.1 | |
| Restructuring charges | | - | | 0.2 | |
| Acquisition and integration-related charges | | - | | (0.2 | ) |
| Adjusted | | $ | 207.7 | | $ | 52.6 | |
| As a % of reported net sales | | 47.8 | % | 12.1 | % |
| For Comparative Purposes* | | | |
| Reported | $ | 434.3 | | | |
| Operating results attributable to held-for-sale business | (0.2 | ) | | |
| Adjusted | $ | 434.1 | | | |
| *Q4 2015 net sales adjustment is made for comparison purposes only and does not change any other prior year financial information or metrics since the European sports brand was not held-for-sale in 2015. Q4 2015 gross margin and operating margin use reported net sales as the denominator. |
| | Twelve Months Ended |
| | December 31, 2015 |
| Consumer Healthcare International | Net Sales | Gross Profit | Operating Income (Loss) |
| Reported | $ | 1,360.6 | | $ | 614.7 | | $ | (124.3 | ) |
| As a % of reported net sales | | 45.2 | % | (9.1 | )% |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 54.1 | | $ | 128.3 | |
| Impairment charges | | - | | 185.1 | |
| Restructuring charges | | - | | 0.7 | |
| Acquisition and integration-related charges | | - | | 3.3 | |
| Adjusted | | $ | 668.8 | | $ | 193.1 | |
| As a % of reported net sales | | 49.2 | % | 14.2 | % |
| For Comparative Purposes* | | | |
| Reported | $ | 1,360.6 | | | |
| Operating results attributable to held-for-sale business | (0.3 | ) | | |
| Adjusted | $ | 1,360.3 | | | |
| *YTD 2015 net sales adjustment is made for comparison purposes only and does not change any other prior year financial information or metrics since the European sports brand was not held-for-sale in 2015. YTD 2015 gross margin and operating margin use reported net sales as the denominator. |
| Table II (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS AND CALENDAR YEAR TO DATE 2015 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | March 28, 2015 |
| Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 237.0 | | $ | 135.5 | | $ | 98.1 | |
| As a % of reported net sales | | 57.2 | % | 41.4 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 14.3 | | $ | 14.3 | |
| Unusual litigation | | - | | 2.0 | |
| Adjusted | | $ | 149.8 | | $ | 114.4 | |
| As a % of reported net sales | | 63.2 | % | 48.2 | % |
| | Three Months Ended |
| | June 27, 2015 |
| Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 262.2 | | $ | 154.3 | | $ | 97.8 | |
| As a % of reported net sales | | 58.9 | % | 37.3 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 14.3 | | $ | 14.3 | |
| R&D payment made in connection with a collaborative agreement | | - | | 18.0 | |
| Acquisition and integration-related charges | | 0.5 | | 1.4 | |
| Adjusted | | $ | 169.1 | | $ | 131.5 | |
| As a % of reported net sales | | 64.5 | % | 50.2 | % |
| | Three Months Ended |
| | September 26, 2015 |
| Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 243.6 | | $ | 122.8 | | $ | 87.7 | |
| As a % of reported net sales | | 50.4 | % | 36.0 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 14.3 | | $ | 14.2 | |
| Adjusted | | $ | 137.1 | | $ | 101.9 | |
| As a % of reported net sales | | 56.3 | % | 41.9 | % |
| Table II (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| QUARTERS AND CALENDAR YEAR TO DATE 2015 |
| (in millions) |
| (unaudited) |
| | Three Months Ended |
| | December 31, 2015 |
| Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 259.1 | | $ | 130.8 | | $ | 94.3 | |
| As a % of reported net sales | | 50.5 | % | 36.4 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 14.2 | | $ | 14.3 | |
| Unusual litigation | | - | | (2.0 | ) |
| Restructuring charges | | - | | 2.6 | |
| Adjusted | | $ | 145.0 | | $ | 109.2 | |
| As a % of reported net sales | | 56.0 | % | 42.1 | % |
| | Twelve Months Ended |
| | December 31, 2015 |
| Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 1,001.9 | | $ | 543.3 | | $ | 377.8 | |
| As a % of reported net sales | | 54.2 | % | 37.7 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 57.2 | | $ | 57.2 | |
| Restructuring charges | | - | | 2.6 | |
| R&D payment made in connection with a collaborative agreement | | - | | 18.0 | |
| Acquisition and integration-related charges | | 0.5 | | 1.4 | |
| Adjusted | | $ | 601.0 | | $ | 457.0 | |
| As a % of reported net sales | | 60.0 | % | 45.6 | % |
| Table II (continued) |
| PERRIGO COMPANY PLC |
| RECONCILIATION OF NON-GAAP MEASURES |
| CALENDAR YEAR TO DATE 2014 |
| (in millions) |
| (unaudited) |
| | Twelve Months Ended |
| | December 27, 2014 |
| Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 2,503.6 | | $ | 776.7 | | $ | 354.2 | |
| As a % of reported net sales | | 31.0 | % | 14.1 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 29.8 | | $ | 50.9 | |
| R&D payment made in connection with a collaborative agreement | | - | | 10.0 | |
| Restructuring charges | | - | | 7.2 | |
| Unusual litigation | | - | | 2.8 | |
| Acquisition and integration-related charges | | 0.7 | | 0.4 | |
| Adjusted | | $ | 807.2 | | $ | 425.5 | |
| As a % of reported net sales | | 32.2 | % | 17.0 | % |
| | Twelve Months Ended |
| | December 27, 2014 |
| Consumer Healthcare International | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 348.7 | | $ | 107.6 | | $ | 24.6 | |
| As a % of reported net sales | | 30.8 | % | 7.1 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | $ | 21.9 | | $ | 26.9 | |
| Acquisition and integration-related charges | | (0.2 | ) | 0.9 | |
| Adjusted | | $ | 129.3 | | $ | 52.4 | |
| As a % of reported net sales | | 37.1 | % | 15.0 | % |
| | Twelve Months Ended |
| | December 27, 2014 |
| Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income |
| Reported | $ | 882.1 | | $ | 466.5 | | $ | 330.7 | |
| As a % of reported net sales | | 52.9 | % | 37.5 | % |
| Adjustments: | | | |
| Amortization expense related primarily to acquired intangible assets | | 52.1 | | 52.1 | |
| Restructuring charges | | - | | 0.2 | |
| Acquisition and integration-related charges | | 0.1 | | 6.0 | |
| Unusual litigation | | - | | 15.0 | |
| Adjusted | | $ | 518.7 | | $ | 404.0 | |
| As a % of reported net sales | | 58.8 | % | 45.8 | % |