0001585364-15-000035.txt : 20150421 0001585364-15-000035.hdr.sgml : 20150421 20150421165149 ACCESSION NUMBER: 0001585364-15-000035 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20150421 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20150421 DATE AS OF CHANGE: 20150421 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PERRIGO Co plc CENTRAL INDEX KEY: 0001585364 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 000000000 STATE OF INCORPORATION: L2 FISCAL YEAR END: 0627 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-36353 FILM NUMBER: 15783672 BUSINESS ADDRESS: STREET 1: TREASURY BUILDING STREET 2: LOWER GRAND CANAL STREET CITY: DUBLIN STATE: L2 ZIP: 2 BUSINESS PHONE: 269-673-8451 MAIL ADDRESS: STREET 1: 515 EASTERN AVENUE CITY: ALLEGAN STATE: MI ZIP: 49010 FORMER COMPANY: FORMER CONFORMED NAME: PERRIGO Co Ltd DATE OF NAME CHANGE: 20130828 8-K 1 fy158-krecast.htm 8-K RECAST FY15 8-K Recast


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

_______________________________________________
 FORM 8-K
_______________________________________________

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
April 21, 2015
_______________________________________________
Perrigo Company plc
(Exact name of registrant as specified in its charter)
_______________________________________________

Commission file number 001-36353

Ireland
 
Not Applicable
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
 
Treasury Building, Lower Grand Canal Street, Dublin 2, Ireland
 
-
(Address of principal executive offices)
 
(Zip Code)
+353 1 7094000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
________________________________________ 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ]     Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)

[ ]     Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)

[ ]     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))

[ ]         Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))





Item 2.02    Results of Operations and Financial Condition

As disclosed on the Form 8-K dated December 18, 2014, Perrigo Company plc (the “Company”) is changing its fiscal year-end to begin on January 1 and end on December 31 of each year, starting on January 1, 2016. Beginning with the fiscal 2015 third quarter earnings release, full year guidance will be provided on a calendar year basis.

In conjunction with the closing of the acquisition of Omega Pharma NV ("Omega"), as described further in the Form 8-K dated March 30, 2015, the Company changed its reporting segments to better align with the Company's organizational structure. These organizational changes were made to optimize the Company's structure to better serve customers. The Company's new reporting segments will be:

•
Consumer Healthcare will include the legacy Consumer Healthcare business and the legacy Nutritionals (Infant nutrition and VMS) business to create one consumer facing segment. This segment will also include the legacy Israel Pharmaceuticals and Diagnostics business, previously reported in the “Other” category.
•
Branded Consumer Healthcare will comprise the newly acquired Omega business.
•
Rx Pharmaceuticals will continue to comprise the legacy Rx Pharmaceuticals business.
•
Specialty Sciences will continue to comprise royalties from Tysabri® 
•
Other will comprise the legacy Active Pharmaceutical Ingredients (API) business.

The changes to the fiscal year end and reporting segments have no impact on the Company’s historical consolidated financial position, results of operations, or cash flows. In order to aid in comparability to historical financial data, the Company has recast selected financial statements and metrics utilizing the new calendar fiscal year and reporting segments.

Exhibit 99.1 contains select consolidated financial metrics for the three months ended March 26, 2011, June 25, 2011, and September 24, 2011, and the three and twelve months ended December 31, 2011; and the three months ended March 27, 2010, June 26, 2010, and September 25, 2010, and the three and twelve months ended December 25, 2010.

Exhibit 99.2 contains select financials on a consolidated basis for (i) the three months ended March 29, 2014, March 30, 2013 and March 31, 2012; (ii) the three and six months ended June 28, 2014, June 29, 2013 and June 30, 2012; (iii) the three and nine months ended September 27, 2014, September 28, 2013 and September 29, 2012; (iv) the three and twelve months ended December 27, 2014, December 28, 2013 and December 29, 2012; and on a new segment basis for the three- and twelve-month periods described above.

The recast financial information contained in Exhibits 99.1 and 99.2 do not represent a restatement of previously issued financial statements. The information in this Item 2.02, including Exhibits 99.1 and 99.2, should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 28, 2014 and the Company’s Quarterly Reports on Form 10-Q for the quarters ended September 27, 2014, December 27, 2014 and March 28, 2015.

The information furnished pursuant to this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that Section, and shall not be deemed incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

The Directors of Perrigo Company plc accept responsibility for the information contained in this document. To the best of their knowledge and belief (having taken all reasonable care to ensure such is the case), the information contained in this document is in accordance with the facts and does not omit anything likely to affect the import of such information.

A person interested in 1% or more of any class of relevant securities of Perrigo Company plc or Mylan N.V. may have disclosure obligations under Rule 8.3 of the Irish Takeover Rules.

The recast financial statements contain certain non-GAAP measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts different than the most directly comparable measure calculated and presented in accordance with U.S. Generally Accepted




Accounting Principles ("GAAP") in the statements of income, balance sheets or statements of cash flows of the Company. Pursuant to the requirements of Regulation G, the Company has included in Exhibit 99.1 a reconciliation of Operating income to the most directly comparable U.S. GAAP measure, and in Exhibit 99.2 a reconciliation for Cost of sales, Gross profit, Operating expenses, Operating income, Interest expense, net, Other expense, net, Income before income taxes, Income tax expense, Net income, Diluted weighted average shares outstanding, and Earnings per share to the most directly comparable U.S. GAAP measures.

The Company excludes the items listed below in the applicable period when monitoring and evaluating the on-going financial results and trends of its business, and believes that presenting operating results excluding these items is also useful for investors, since it provides important insight into the Company's on-going core business operations on a normalized basis. Management uses adjusted financial measures for planning and forecasting in future periods, including trending and analyzing the core operating performance of the Company’s business from period to period without the effect of the non-core business items indicated. Management also uses adjusted financial measures to prepare operating budgets and forecasts and to measure the Company’s performance against those budgets and forecasts on a corporate and segment level.

Items excluded from reported results include:

•
Acquisition-related amortization
•
Acquisition-related costs including transaction financing and integration, as well as related hedging activities
•
Loss contingency accrual
•
Restructuring charges
•
Losses on certain equity method investments
•
R&D payment made in connection with a collaborative arrangement
•
Adjustments of contingent consideration to fair value
•
Income related to the transfer of a rights agreement
•
Weighted average effect of shares issued in connection with an acquisition prior to the close of the Omega acquisition
•
Litigation settlements
•
Inventory step-ups
•
Write-off of IPR&D
•
Escrow settlement
•
Proceeds from sale of IPR&D projects

ITEM 9.01. Financial Statements and Exhibits

(d) Exhibits

99.1
Recast historical financial statements for calendar years 2010 - 2011, furnished solely pursuant to Item 2.02 hereof.

99.2
Recast historical financial statements for calendar years 2012 - 2014, furnished solely pursuant to Item 2.02 hereof.





SIGNATURES

Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



 
 
 
(Registrant)

 
 
 
PERRIGO COMPANY PLC

 
 
 
 
 
 
 
 
By:
/s/ Judy L. Brown
Dated:
April 21, 2015
 
 
Judy L. Brown
 
 
 
 
Executive Vice President and
 
 
 
 
Chief Financial Officer
 
 
 
 
(Principal Accounting and Financial Officer)


         
                        
     




Exhibit Index

99.1
Recast historical financial statements for calendar years 2010 - 2011, furnished solely pursuant to Item 2.02 hereof.

99.2
Recast historical financial statements for calendar years 2012 - 2014, furnished solely pursuant to Item 2.02 hereof.




 EX-99.1 2 ex991calendaryear2010and20.htm EXHIBIT 99.1 CALENDAR YEAR 2010 AND 2011 Ex 99.1 Calendar Year 2010 and 2011


Exhibit 99.1
PERRIGO COMPANY PLC
SELECTED CONSOLIDATED INFORMATION (1)
CALENDAR YEAR 2011
(in millions)
(unaudited)
 
Three Months Ended
 
Twelve Months
Ended
 
March 26,
2011
 
June 25,
2011
 
September 24,
2011
 
December 31,
2011
 
December 31,
2011
Net sales
$
691.6

 
$
704.6

 
$
725.3

 
$
838.2

 
$
2,959.7

Operating income
$
122.9

 
$
123.3

 
$
101.6

 
$
160.7

 
$
508.5

 
 
 
 
 
 
 
 
 
 
Operating income as a percentage of net sales (2)
17.8
%
 
17.5
%
 
14.0
%
 
19.2
%
 
17.2
%
 
 
 
 
 
 
 
 
 
 
(1) All information based on continuing operations.
 
 
 
 
 
 
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 

PERRIGO COMPANY PLC
ADJUSTED SELECTED CONSOLIDATED INFORMATION (1,3)
CALENDAR YEAR 2011
(in millions)
(unaudited)
 
Three Months Ended
 
Twelve Months
Ended
 
March 26,
2011
 
June 25,
2011
 
September 24,
2011
 
December 31,
2011
 
December 31,
2011
Net sales
$
691.6

 
$
704.6

 
$
725.3

 
$
838.2

 
$
2,959.7

Adjusted operating income
$
135.7

 
$
137.6

 
$
154.0

 
$
179.0

 
$
606.3

 
 
 
 
 
 
 
 
 
 
Adjusted operating income as a percentage of net sales (2)
19.6
%
 
19.5
%
 
21.2
%
 
21.4
%
 
20.5
%
 
 
 
 
 
 
 
 
 
 
(1) All information based on continuing operations.
 
 
 
 
 
 
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(3) See attached Table I for reconciliation to GAAP numbers.






PERRIGO COMPANY PLC
SELECTED CONSOLIDATED INFORMATION (1)
CALENDAR YEAR 2010
(in millions)
(unaudited)
 
Three Months Ended
 
Twelve Months
Ended
 
March 27,
2010
 
June 26,
2010
 
September 25,
2010
 
December 25,
2010
 
December 25,
2010
Net sales
$
537.6

 
$
619.8

 
$
641.3

 
$
717.5

 
$
2,516.2

Operating income
$
89.2

 
$
76.6

 
$
111.8

 
$
132.2

 
$
409.8

 
 
 
 
 
 
 
 
 
 
Operating income as a percentage of net sales (2)
16.6
%
 
12.4
%
 
17.4
%
 
18.4
%
 
16.3
%
 
 
 
 
 
 
 
 
 
 
(1) All information based on continuing operations.
 
 
 
 
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 

PERRIGO COMPANY PLC
ADJUSTED SELECTED CONSOLIDATED INFORMATION (1,3)
CALENDAR YEAR 2010
(in millions)
(unaudited)
 
Three Months Ended
 
Twelve Months
Ended
 
March 27,
2010
 
June 26,
2010
 
September 25,
2010
 
December 25,
2010
 
December 25,
2010
Net sales
$
537.6

 
$
619.8

 
$
641.3

 
$
717.5

 
$
2,516.2

Adjusted operating income
$
105.1

 
$
107.3

 
$
123.1

 
$
144.9

 
$
480.4

 
 
 
 
 
 
 
 
 
 
Adjusted operating income as a percentage of net sales (2)
19.6
%
 
17.3
%
 
19.2
%
 
20.2
%
 
19.1
%
 
 
 
 
 
 
 
 
 
 
(1) All information based on continuing operations.
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
(3) See attached Table I for reconciliation to GAAP numbers.
 
 
 
 
 
 




Table I
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2011
(in millions)
(unaudited)
 
Three Months Ended (1)
 
Twelve Months
Ended
 
March 26,
2011
 
June 25,
2011
 
September 24,
2011
 
December 31,
2011
 
December 31,
2011
Net sales
$
691.6

 
$
704.6

 
$
725.3

 
$
838.2

 
$
2,959.7

 
 
 
 
 
 
 
 
 
 
Reported operating income
$
122.9

 
$
123.3

 
$
101.6

 
$
160.7

 
$
508.5

Acquisition costs
1.1

 
0.8

 
8.8

 
0.6

 
11.3

Acquisition-related amortization (2)
11.7

 
12.4

 
20.0

 
17.8

 
61.9

Inventory step-ups
—

 
—

 
27.2

 
—

 
27.2

Restructuring charges
—

 
1.0

 
—

 
—

 
1.0

Proceeds from sale of pipeline
     development projects
—

 
—

 
(3.5
)
 
—

 
(3.5
)
Adjusted operating income
$
135.7

 
$
137.6

 
$
154.0

 
$
179.0

 
$
606.3

 
 
 
 
 
 
 
 
 
 
Adjusted operating income as a percentage of net sales (3)
19.6
%
 
19.5
%
 
21.2
%
 
21.4
%
 
20.5
%
 
 
 
 
 
 
 
 
 
 
(1) Amounts may not sum due to rounding.
 
 
 
 
 
 
(2) Amortization of acquired intangible assets related to business combinations and asset acquisitions.
 
 
(3) Ratios calculated using exact numbers.
 
 
 
 
 
 
Table I
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
(in millions)
(unaudited)
 
Three Months Ended (1)
 
Twelve Months
Ended
 
March 27,
2010
 
June 26,
2010
 
September 25,
2010
 
December 25,
2010
 
December 25,
2010
Net sales
$
537.6

 
$
619.8

 
$
641.3

 
$
717.5

 
$
2,516.2

 
 
 
 
 
 
 
 
 
 
Reported operating income
$
89.2

 
$
76.6

 
$
111.8

 
$
132.2

 
$
409.8

Acquisition costs
3.1

 
5.1

 
—

 
1.3

 
9.5

Acquisition-related amortization (2)
5.4

 
8.7

 
11.3

 
11.4

 
36.7

Inventory step-ups
0.1

 
9.9

 
—

 
—

 
10.0

Restructuring charges
7.5

 
2.0

 
—

 
—

 
9.5

Write-offs of in-process R&D
—

 
5.0

 
—

 
—

 
5.0

Adjusted operating income
$
105.1

 
$
107.3

 
$
123.1

 
$
144.9

 
$
480.4

 
 
 
 
 
 
 
 
 
 
Adjusted operating income as a percentage of net sales (3)
19.6
%
 
17.3
%
 
19.2
%
 
20.2
%
 
19.1
%
 
 
 
 
 
 
 
 
 
 
(1) Amounts may not sum due to rounding.
 
 
 
 
 
 
(2) Amortization of acquired intangible assets related to business combinations and asset acquisitions.
 
 
(3) Ratios calculated using exact numbers.
 
 
 
 
 
 


 EX-99.2 3 ex992calendaryear20122013a.htm EXHIBIT 99.2 CALENDAR YEAR 2012, 2013, 2014 Ex 99.2 Calendar Year 2012, 2013 and 2014


Exhibit 99.2
PERRIGO COMPANY PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
CALENDAR YEAR 2014
(in millions, except per share amounts)
(unaudited)
 
Three Months Ended (1)
 
Twelve Months
Ended (1)
 
March 29,
2014
 
June 28,
2014
 
September 27,
2014
 
December 27,
2014
 
December 27,
2014
Net sales
$
1,004.2

 
$
1,144.2

 
$
951.5

 
$
1,071.7

 
$
4,171.6

Cost of sales
689.2

 
728.5

 
629.7

 
687.9

 
2,735.3

Gross profit
315.0

 
415.7

 
321.8

 
383.8

 
1,436.3

 
 
 
 
 
 
 
 
 
 
Operating expenses
 
 
 
 
 
 
 
 
 
Distribution
13.9

 
14.1

 
14.4

 
14.8

 
57.2

Research and development
44.7

 
38.1

 
36.6

 
53.2

 
172.6

Selling
52.5

 
58.6

 
50.4

 
44.9

 
206.4

Administration
81.1

 
97.0

 
81.5

 
84.1

 
343.7

Restructuring
19.5

 
10.5

 
1.7

 
2.4

 
34.1

Total operating expenses
211.7

 
218.3

 
184.6

 
199.4

 
814.0

 
 
 
 
 
 
 
 
 
 
Operating income
103.3

 
197.4

 
137.2

 
184.4

 
622.3

 
 
 
 
 
 
 
 
 
 
Interest expense, net
26.2

 
26.3

 
25.9

 
30.8

 
109.2

Other expense, net
1.7

 
5.6

 
2.7

 
59.3

 
69.3

Loss on sale of investment
12.7

 
—

 
—

 
—

 
12.7

Loss on extinguishment of debt
—

 
—

 
—

 
9.6

 
9.6

Income before income taxes
62.7

 
165.5

 
108.6

 
84.7

 
421.5

Income tax expense
14.6

 
33.8

 
12.3

 
14.5

 
75.2

Net income
$
48.1

 
$
131.7

 
$
96.3

 
$
70.2

 
$
346.3

 
 
 
 
 
 
 
 
 
 
Earnings per share (2)
 
 
 
 
 
 
 
 
 
Basic earnings per share
$
0.36

 
$
0.98

 
$
0.72

 
$
0.52

 
$
2.58

Diluted earnings per share
$
0.36

 
$
0.98

 
$
0.72

 
$
0.51

 
$
2.57

 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
 
 
Basic
133.7

 
133.8

 
133.9

 
136.3

 
134.4

Diluted
134.3

 
134.3

 
134.4

 
136.8

 
135.0

 
 
 
 
 
 
 
 
 
 
Dividends declared per share
$
0.105

 
$
0.105

 
$
0.105

 
$
0.105

 
$
0.420

 
 
 
 
 
 
 
 
 
 
(1) Amounts may not sum due to rounding.
 
 
 
 
 
 
(2) Quarterly and year-to-date computations of per share amounts are made independently. As a result, the sum of the quarters may not equal year-to-date.











1


PERRIGO COMPANY PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
CALENDAR YEAR 2013
(in millions, except per share amounts)
(unaudited)
 
Three Months Ended (1)
 
Twelve Months
Ended (1)
 
March 30,
2013
 
June 29,
2013
 
September 28,
2013
 
December 28,
2013
 
December 28,
2013
Net sales
$
919.8

 
$
967.2

 
$
933.4

 
$
979.0

 
$
3,799.4

Cost of sales
588.4

 
611.0

 
577.1

 
618.3

 
2,394.8

Gross profit
331.4

 
356.2

 
356.3

 
360.7

 
1,404.6

 
 
 
 
 
 
 
 
 
 
Operating expenses
 
 
 
 
 
 
 
 
 
Distribution
12.6

 
12.5

 
13.2

 
14.0

 
52.3

Research and development
28.5

 
30.9

 
32.3

 
37.5

 
129.2

Selling
49.1

 
56.5

 
50.2

 
47.3

 
203.1

Administration
62.6

 
64.3

 
78.8

 
154.4

 
360.1

Write-off of in-process research and development
—

 
9.0

 
—

 
6.0

 
15.0

Restructuring
—

 
2.9

 
2.1

 
14.9

 
19.9

Total operating expenses
152.8

 
176.1

 
176.6

 
274.1

 
779.6

 
 
 
 
 
 
 
 
 
 
Operating income
178.6

 
180.1

 
179.7

 
86.6

 
625.0

 
 
 
 
 
 
 
 
 
 
Interest expense, net
16.1

 
18.6

 
21.4

 
29.7

 
85.8

Other expense, net
0.8

 
0.1

 
1.0

 
4.1

 
6.0

Loss on sale of investment
1.6

 
—

 
—

 
—

 
1.6

Loss on extinguishment of debt
—

 
—

 
—

 
165.8

 
165.8

Income before income taxes
160.1

 
161.4

 
157.3

 
(113.0
)
 
365.8

Income tax expense
48.2

 
43.0

 
45.9

 
(27.0
)
 
110.1

Net income (loss)
$
111.9

 
$
118.5

 
$
111.4

 
$
(86.0
)
 
$
255.8

 
 
 
 
 
 
 
 
 
 
Earnings per share (2)
 
 
 
 
 
 
 
 
 
Basic earnings per share
$
1.19

 
$
1.26

 
$
1.18

 
$
(0.87
)
 
$
2.68

Diluted earnings per share
$
1.18

 
$
1.25

 
$
1.18

 
$
(0.87
)
 
$
2.67

 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
 
 
Basic
94.0

 
94.0

 
94.2

 
98.7

 
95.3

Diluted
94.5

 
94.6

 
94.7

 
98.7

 
95.9

 
 
 
 
 
 
 
 
 
 
Dividends declared per share
$
0.09

 
$
0.09

 
$
0.09

 
$
0.09

 
$
0.36

 
 
 
 
 
 
 
 
 
 
(1) Amounts may not sum due to rounding.
 
 
 
 
 
 
(2) Quarterly and year-to-date computations of per share amounts are made independently. As a result, the sum of the quarters may not equal year-to-date.







2


PERRIGO COMPANY PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
CALENDAR YEAR 2012
(in millions, except per share amounts)
(unaudited)
 
Three Months Ended (1)
 
Twelve Months
Ended (1)
 
March 31,
2012
 
June 30,
2012
 
September 29,
2012
 
December 29,
2012
 
December 29,
2012
Net sales
$
778.0

 
$
831.8

 
$
769.8

 
$
883.0

 
$
3,262.6

Cost of sales
498.7

 
537.9

 
484.5

 
575.8

 
2,096.9

Gross profit
279.3

 
293.9

 
285.3

 
307.2

 
1,165.7

 
 
 
 
 
 
 
 
 
 
Operating expenses
 
 
 
 
 
 
 
 
 
Distribution
10.2

 
9.6

 
10.8

 
11.7

 
42.3

Research and development
28.0

 
27.0

 
27.4

 
28.3

 
110.7

Selling
35.4

 
38.7

 
37.4

 
43.1

 
154.6

Administration
52.5

 
55.9

 
53.1

 
60.2

 
221.7

Restructuring
7.1

 
1.7

 
—

 
—

 
8.8

Total operating expenses
133.2

 
132.9

 
128.7

 
143.3

 
538.1

 
 
 
 
 
 
 
 
 

Operating income
146.1

 
160.9

 
156.6

 
163.9

 
627.5

 
 
 
 
 
 
 
 
 
 
Interest expense, net
16.7

 
15.9

 
15.9

 
15.3

 
63.8

Other expense (income), net
(5.2
)
 
0.7

 
(0.1
)
 
0.1

 
(4.5
)
Loss on sale of investment
—

 
—

 
—

 
3.0

 
3.0

Income before income taxes
134.6

 
144.3

 
140.8

 
145.5

 
565.2

Income tax expense
18.9

 
37.3

 
35.2

 
39.5

 
130.9

Income from continuing operations
115.7

 
107.0

 
105.6

 
106.0

 
434.3

Income from discontinued operations,
net of tax
—

 
8.6

 
—

 
—

 
8.6

Net income
$
115.7

 
$
115.6

 
$
105.6

 
$
106.0

 
$
442.9

 
 
 
 
 
 
 
 
 
 
Basic earnings per share (2)
 
 
 
 
 
 
 
 
 
Continuing operations
$
1.24

 
$
1.15

 
$
1.13

 
$
1.13

 
$
4.64

Discontinued operations
—

 
0.09

 
—

 
—

 
0.09

Basic earnings per share
$
1.24


$
1.24


$
1.13


$
1.13


$
4.73

 
 
 
 
 
 
 
 
 
 
Diluted earnings per share (2)
 
 
 
 
 
 
 
 
 
Continuing operations
$
1.23

 
$
1.14

 
$
1.12

 
$
1.12

 
$
4.60

Discontinued operations
—

 
0.09

 
—

 
—

 
0.09

Diluted earnings per share
$
1.23


$
1.23


$
1.12


$
1.12


$
4.69

 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding
 
 
 
 
 
 
 
 
 
Basic
93.3

 
93.4

 
93.6

 
93.9

 
93.6

Diluted
94.1

 
94.3

 
94.3

 
94.5

 
94.4

 
 
 
 
 
 
 
 
 
 
Dividends declared per share
$
0.08

 
$
0.08

 
$
0.08

 
$
0.09

 
$
0.33

 
 
 
 
 
 
 
 
 
 
(1) Amounts may not sum due to rounding.
 
 
 
 
 
 
(2) Quarterly and year-to-date computations of per share amounts are made independently. As a result, the sum of the quarters may not equal year-to-date.



3


PERRIGO COMPANY PLC
ADJUSTED CONSOLIDATED STATEMENTS OF OPERATIONS (1)
CALENDAR YEAR 2014
(in millions, except per share amounts)
(unaudited)
 
Three Months Ended
 
Twelve Months
Ended
 
March 29,
2014
 
June 28,
2014
 
September 27,
2014
 
December 27,
2014
 
December 27,
2014
Net sales
$
1,004.2

 
$
1,144.2

 
$
951.5

 
$
1,071.7

 
$
4,171.6

Adjusted gross profit
$
416.2

 
$
508.8

 
$
422.3

 
$
484.6

 
$
1,831.9

Adjusted operating income
$
240.6

 
$
324.6

 
$
247.3

 
$
316.7

 
$
1,129.2

Adjusted net income
$
176.2

 
$
234.1

 
$
187.5

 
$
244.9

 
$
842.7

 
 
 
 
 
 
 
 
 
 
Adjusted diluted earnings per share (2)
$
1.31

 
$
1.74

 
$
1.40

 
$
1.82

 
$
6.27

 
 
 
 
 
 
 
 
 
 
Diluted weighted average shares
     outstanding
134.3

 
134.3

 
134.4

 
134.5

 
134.4

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (3)
 
 
 
 
 
 
Adjusted gross profit
41.4
%
 
44.5
%
 
44.4
%
 
45.2
%
 
43.9
%
Adjusted operating income
24.0
%
 
28.4
%
 
26.0
%
 
29.5
%
 
27.1
%
 
 
 
 
 
 
 
 
 
 
(1) See attached Table I for reconciliation to GAAP numbers.
(2) Quarterly and year-to-date computations of per share amounts are made independently. As a result, the sum of the quarters may not equal year-to-date.
(3) Ratios are calculated using exact numbers.
 
 
 
 
 
 
 

PERRIGO COMPANY PLC
ADJUSTED CONSOLIDATED STATEMENTS OF OPERATIONS (1)
CALENDAR YEAR 2013
(in millions, except per share amounts)
(unaudited)
 
Three Months Ended
 
Twelve Months
Ended
 
March 30,
2013
 
June 29,
2013
 
September 28,
2013
 
December 28,
2013
 
December 28,
2013
Net sales
$
919.8

 
$
967.2

 
$
933.4

 
$
979.0

 
$
3,799.4

Adjusted gross profit
$
351.9

 
$
380.1

 
$
379.7

 
$
398.2

 
$
1,509.9

Adjusted operating income
$
208.2

 
$
225.2

 
$
226.2

 
$
237.8

 
$
897.4

Adjusted net income
$
134.1

 
$
148.1

 
$
143.9

 
$
185.3

 
$
611.4

 
 
 
 
 
 
 
 
 
 
Adjusted diluted earnings per share (2)
$
1.42

 
$
1.57

 
$
1.52

 
$
1.87

 
$
6.38

 
 
 
 
 
 
 
 
 
 
Diluted weighted average shares
outstanding
94.5

 
94.6

 
94.7

 
99.2

 
95.9

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (3)
 
 
 
 
 
 
Adjusted gross profit
38.3
%
 
39.3
%
 
40.7
%
 
40.7
%
 
39.7
%
Adjusted operating income
22.6
%
 
23.3
%
 
24.2
%
 
24.3
%
 
23.6
%
 
 
 
 
 
 
 
 
 
 
(1) See attached Table I for reconciliation to GAAP numbers.
(2) Quarterly and year-to-date computations of per share amounts are made independently. As a result, the sum of the quarters may not equal year-to-date.
(3) Ratios are calculated using exact numbers
 
 
 
 
 
 

4


PERRIGO COMPANY PLC
ADJUSTED CONSOLIDATED STATEMENTS OF OPERATIONS (1)
CALENDAR YEAR 2012
(in millions, except per share amounts)
(unaudited)
 
Three Months Ended
 
Twelve Months
Ended
 
March 31,
2012
 
June 30,
2012
 
September 29,
2012
 
December 29,
2012
 
December 29,
2012
Net sales
$
778.0

 
$
831.8

 
$
769.8

 
$
883.0

 
$
3,262.6

Adjusted gross profit
$
292.8

 
$
307.3

 
$
298.6

 
$
330.5

 
$
1,229.2

Adjusted operating income
$
171.7

 
$
181.8

 
$
177.3

 
$
194.7

 
$
725.5

Adjusted income from continuing
    operations
$
132.7

 
$
120.9

 
$
119.5

 
$
128.1

 
$
501.2

 
 
 
 
 
 
 
 
 
 
Adjusted diluted earnings per share from
    continuing operations (2)
$
1.41

 
$
1.28

 
$
1.27

 
$
1.36

 
$
5.31

 
 
 
 
 
 
 
 
 
 
Diluted weighted average shares
outstanding
94.1

 
94.3

 
94.3

 
94.5

 
94.4

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (3)
 
 
 
 
 
 
Adjusted gross profit
37.6
%
 
36.9
%
 
38.8
%
 
37.4
%
 
37.7
%
Adjusted operating income
22.1
%
 
21.9
%
 
23.0
%
 
22.0
%
 
22.2
%
 
 
 
 
 
 
 
 
 
 
(1) See attached Table I for reconciliation to GAAP numbers.
(2) Quarterly and year-to-date computations of per share amounts are made independently. As a result, the sum of the quarters may not equal year-to-date.
(3) Ratios are calculated using exact numbers
 
 
 
 
 
 


5


PERRIGO COMPANY PLC
SELECTED SEGMENT INFORMATION
CALENDAR YEAR 2014
(in millions)
(unaudited)

Three Months Ended
 
Twelve Months
Ended
Consumer Healthcare
March 29,
2014
 
June 28,
2014
 
September 27,
2014
 
December 27,
2014
 
December 27,
2014
Net sales
$
695.3

 
$
772.4

 
$
640.3

 
$
678.5

 
$
2,786.5

Gross profit
$
210.9

 
$
245.3

 
$
193.0

 
$
207.1

 
$
856.3

Operating income
$
92.5

 
$
118.3

 
$
74.8

 
$
83.2

 
$
368.8

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Gross profit
30.3
%
 
31.8
%
 
30.1
%
 
30.5
%
 
30.7
%
Operating income
13.3
%
 
15.3
%
 
11.7
%
 
12.3
%
 
13.2
%

Three Months Ended
 
Twelve Months
Ended
Rx Pharmaceuticals
March 29,
2014
 
June 28,
2014
 
September 27,
2014
 
December 27,
2014
 
December 27,
2014
Net sales
$
223.4

 
$
253.4

 
$
194.5

 
$
276.6

 
$
947.9

Gross profit
$
112.9

 
$
135.6

 
$
96.4

 
$
149.5

 
$
494.4

Operating income
$
77.0

 
$
89.3

 
$
64.7

 
$
109.7

 
$
340.7

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Gross profit
50.5
%
 
53.5
%
 
49.6
%
 
54.0
%
 
52.2
%
Operating income
34.5
%
 
35.2
%
 
33.3
%
 
39.6
%
 
35.9
%
 
Three Months Ended
 
Twelve Months
Ended
Specialty Sciences
March 29,
2014
 
June 28,
2014
 
September 27,
2014
 
December 27,
2014
 
December 27,
2014
Net sales
$
53.4

 
$
85.9

 
$
91.9

 
$
86.6

 
$
317.8

Gross profit
$
(22.9
)
 
$
18.1

 
$
19.4

 
$
14.1

 
$
28.7

Operating income
$
(54.5
)
 
$
4.9

 
$
14.9

 
$
9.5

 
$
(25.2
)
 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Gross profit
(42.9
)%
 
21.1
%
 
21.1
%
 
16.3
%
 
9.0
 %
Operating income
(102.1
)%
 
5.8
%
 
16.2
%
 
11.0
%
 
(7.9
)%
 
Three Months Ended
 
Twelve Months
Ended
Other
March 29,
2014
 
June 28,
2014
 
September 27,
2014
 
December 27,
2014
 
December 27,
2014
Net sales
$
32.0

 
$
32.5

 
$
24.8

 
$
30.0

 
$
119.3

Gross profit
$
14.0

 
$
16.8

 
$
13.0

 
$
13.2

 
$
57.0

Operating income
$
6.8

 
$
8.8

 
$
7.1

 
$
7.4

 
$
30.1

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Gross profit
43.6
%
 
51.7
%
 
52.3
%
 
43.9
%
 
47.8
%
Operating income
21.0
%
 
27.0
%
 
28.3
%
 
24.7
%
 
25.2
%
 
 
 
 
 
 
 
 
 
 
(1) Ratios are calculated using exact numbers.
 
 
 
 
 
 



6


PERRIGO COMPANY PLC
SELECTED SEGMENT INFORMATION
CALENDAR YEAR 2013
(in millions)
(unaudited)
 
Three Months Ended
 
Twelve Months
Ended
Consumer Healthcare
March 30,
2013
 
June 29,
2013
 
September 28,
2013
 
December 28,
2013
 
December 28,
2013
Net sales
$
689.3

 
$
731.7

 
$
686.6

 
$
695.0

 
$
2,802.6

Gross profit
$
213.9

 
$
245.3

 
$
214.0

 
$
216.6

 
$
889.8

Operating income
$
104.5

 
$
119.8

 
$
98.8

 
$
103.5

 
$
426.6

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Gross profit
31.0
%
 
33.5
%
 
31.2
%
 
31.2
%
 
31.7
%
Operating income
15.2
%
 
16.4
%
 
14.4
%
 
14.9
%
 
15.2
%
 
Three Months Ended
 
Twelve Months
Ended
Rx Pharmaceuticals
March 30,
2013
 
June 29,
2013
 
September 28,
2013
 
December 28,
2013
 
December 28,
2013
Net sales
$
189.4

 
$
194.7

 
$
203.6

 
$
246.6

 
$
834.3

Gross profit
$
96.5

 
$
92.3

 
$
112.5

 
$
128.8

 
$
430.1

Operating income
$
73.4

 
$
57.2

 
$
83.1

 
$
100.4

 
$
314.1

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Gross profit
51.0
%
 
47.4
%
 
55.2
%
 
52.2
%
 
51.6
%
Operating income
38.8
%
 
29.4
%
 
40.8
%
 
40.7
%
 
37.6
%
 
 
Three and Twelve Months Ended (2)
 
Specialty Sciences
 
December 28,
2013
 
Net sales
 
$
7.4

 
Gross profit
 
$
(1.3
)
 
Operating income
 
$
(19.0
)
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
Gross profit
 
(17.1
)%
 
Operating income
 
(256.2
)%
 
 
Three Months Ended
 
Twelve Months
Ended
Other
March 30,
2013
 
June 29,
2013
 
September 28,
2013
 
December 28,
2013
 
December 28,
2013
Net sales
$
41.1

 
$
40.9

 
$
43.2

 
$
30.0

 
$
155.2

Gross profit
$
20.9

 
$
18.7

 
$
29.8

 
$
16.5

 
$
85.9

Operating income
$
11.7

 
$
10.0

 
$
22.4

 
$
8.2

 
$
52.3

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Gross profit
50.9
%
 
45.7
%
 
69.1
%
 
55.2
%
 
55.3
%
Operating income
28.5
%
 
24.5
%
 
52.0
%
 
27.4
%
 
33.7
%
 
 
 
 
 
 
 
 
 
 
(1) Ratios are calculated using exact numbers.
 
 
 
 
 
 
(2) Only includes activity from December 18, 2013 to December 28, 2013.


7


PERRIGO COMPANY PLC
SELECTED SEGMENT INFORMATION
CALENDAR YEAR 2012
(in millions)
(unaudited)
 
Three Months Ended
 
Twelve Months
Ended
Consumer Healthcare
March 31,
2012
 
June 30,
2012
 
September 29,
2012
 
December 29,
2012
 
December 29,
2012
Net sales
$
585.4

 
$
636.4

 
$
570.4

 
$
679.6

 
$
2,471.8

Gross profit
$
177.3

 
$
195.7

 
$
177.2

 
$
198.3

 
$
748.5

Operating income
$
82.0

 
$
96.3

 
$
83.5

 
$
93.9

 
$
355.7

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Gross profit
30.3
%
 
30.8
%
 
31.1
%
 
29.2
%
 
30.3
%
Operating income
14.0
%
 
15.1
%
 
14.6
%
 
13.8
%
 
14.4
%
 
Three Months Ended
 
Twelve Months
Ended
Rx Pharmaceutical
March 31,
2012
 
June 30,
2012
 
September 29,
2012
 
December 29,
2012
 
December 29,
2012
Net sales
$
155.6

 
$
157.0

 
$
162.9

 
$
162.5

 
$
638.0

Gross profit
$
83.3

 
$
72.5

 
$
86.7

 
$
86.0

 
$
328.5

Operating income
$
67.3

 
$
51.8

 
$
68.5

 
$
64.0

 
$
251.6

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Gross profit
53.6
%
 
46.2
%
 
53.2
%
 
52.9
%
 
51.5
%
Operating income
43.2
%
 
33.0
%
 
42.0
%
 
39.4
%
 
39.4
%
 
Three Months Ended
 
Twelve Months
Ended
Other
March 31,
2012
 
June 30,
2012
 
September 29,
2012
 
December 29,
2012
 
December 29,
2012
Net sales
$
37.0

 
$
38.4

 
$
36.4

 
$
40.9

 
$
152.6

Gross profit
$
18.7

 
$
25.7

 
$
21.3

 
$
22.9

 
$
88.6

Operating income
$
10.5

 
$
17.5

 
$
13.3

 
$
13.8

 
$
55.1

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Gross profit
50.5
%
 
66.8
%
 
58.7
%
 
56.0
%
 
58.1
%
Operating income
28.3
%
 
45.6
%
 
36.6
%
 
33.8
%
 
36.1
%
 
 
 
 
 
 
 
 
 
 
(1) Ratios are calculated using exact numbers.
 
 
 
 
 
 


8


PERRIGO COMPANY PLC
ADJUSTED SELECTED SEGMENT INFORMATION (3)
CALENDAR YEAR 2014
(in millions)
(unaudited)
 
Three Months Ended
 
Twelve Months
Ended
Consumer Healthcare
March 29,
2014
 
June 28,
2014
 
September 27,
2014
 
December 27,
2014
 
December 27,
2014
Adjusted net sales
$
695.3

 
$
772.4

 
$
640.3

 
$
678.5

 
$
2,786.5

Adjusted gross profit
$
218.0

 
$
252.6

 
$
203.6

 
$
217.2

 
$
891.4

Adjusted operating income
$
109.2

 
$
135.5

 
$
93.6

 
$
111.6

 
$
449.9

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Adjusted gross profit
31.4
%
 
32.7
%
 
31.8
%
 
32.0
%
 
32.0
%
Adjusted operating income
15.7
%
 
17.5
%
 
14.6
%
 
16.4
%
 
16.1
%
 
Three Months Ended
 
Twelve Months
Ended
Rx Pharmaceuticals
March 29,
2014
 
June 28,
2014
 
September 27,
2014
 
December 27,
2014
 
December 27,
2014
Adjusted net sales
$
223.4

 
$
253.4

 
$
194.5

 
$
276.6

 
$
947.9

Adjusted gross profit
$
130.2

 
$
153.1

 
$
113.3

 
$
167.3

 
$
563.9

Adjusted operating income
$
100.3

 
$
122.3

 
$
81.8

 
$
127.7

 
$
432.1

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Adjusted gross profit
58.3
%
 
60.4
%
 
58.3
%
 
60.5
%
 
59.5
%
Adjusted operating income
44.9
%
 
48.3
%
 
42.1
%
 
46.2
%
 
45.6
%
 
Three Months Ended
 
Twelve Months
Ended
Specialty Sciences
March 29,
2014
 
June 28,
2014
 
September 27,
2014
 
December 27,
2014
 
December 27,
2014
Adjusted net sales
$
53.4

 
$
85.9

 
$
91.9

 
$
86.6

 
$
317.8

Adjusted gross profit
$
53.4

 
$
85.9

 
$
91.9

 
$
86.6

 
$
317.8

Adjusted operating income
$
38.7

 
$
78.5

 
$
87.8

 
$
82.8

 
$
287.8

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Adjusted gross profit
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
Adjusted operating income
72.5
%
 
91.4
%
 
95.6
%
 
95.6
%
 
90.6
%
 
Three Months Ended
 
Twelve Months
Ended
Other
March 29,
2014
 
June 28,
2014
 
September 27,
2014
 
December 27,
2014
 
December 27,
2014
Adjusted net sales
$
32.0

 
$
32.5

 
$
24.8

 
$
30.0

 
$
119.3

Adjusted gross profit
$
14.5

 
$
17.3

 
$
13.5

 
$
13.7

 
$
59.0

Adjusted operating income
$
7.3

 
$
9.5

 
$
7.6

 
$
7.9

 
$
32.3

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Adjusted gross profit
45.3
%
 
53.4
%
 
54.4
%
 
45.5
%
 
49.5
%
Adjusted operating income
22.7
%
 
29.3
%
 
30.5
%
 
26.3
%
 
27.1
%
 
 
 
 
 
 
 
 
 
 
(1) Ratios are calculated using exact numbers.
 
 
 
 
 
 
(3) See attached Table II for reconciliation to GAAP numbers.
 
 
 
 
 
 



9



PERRIGO COMPANY PLC
ADJUSTED SELECTED SEGMENT INFORMATION (3)
CALENDAR YEAR 2013
(in millions)
(unaudited)
 
Three Months Ended
 
Twelve Months
Ended
Consumer Healthcare
March 30,
2013
 
June 29,
2013
 
September 28,
2013
 
December 28,
2013
 
December 28,
2013
Adjusted net sales
$
689.3

 
$
731.7

 
$
686.6

 
$
695.0

 
$
2,802.6

Adjusted gross profit
$
220.8

 
$
252.0

 
$
220.9

 
$
223.5

 
$
917.2

Adjusted operating income
$
117.2

 
$
138.3

 
$
112.7

 
$
115.3

 
$
483.5

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Adjusted gross profit
32.0
%
 
34.4
%
 
32.2
%
 
32.2
%
 
32.7
%
Adjusted operating income
17.0
%
 
18.9
%
 
16.4
%
 
16.6
%
 
17.3
%
 
Three Months Ended
 
Twelve Months
Ended
Rx Pharmaceuticals
March 30,
2013
 
June 29,
2013
 
September 28,
2013
 
December 28,
2013
 
December 28,
2013
Adjusted net sales
$
189.4

 
$
194.7

 
$
203.6

 
$
246.6

 
$
834.3

Adjusted gross profit
$
109.7

 
$
109.0

 
$
128.5

 
$
150.2

 
$
497.4

Adjusted operating income
$
86.7

 
$
83.0

 
$
103.1

 
$
123.1

 
$
395.9

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Adjusted gross profit
57.9
%
 
56.0
%
 
63.1
%
 
60.9
%
 
59.6
%
Adjusted operating income
45.7
%
 
42.7
%
 
50.6
%
 
49.9
%
 
47.5
%
 
 
Three and Twelve Months Ended (2)
 
Specialty Sciences
 
December 28,
2013
 
Adjusted net sales
 
$
7.4

 
Adjusted gross profit
 
$
7.4

 
Adjusted operating income
 
$
4.3

 
 
 
 
 
Selected ratios as a percentage of net sales (1)
Adjusted gross profit
 
100.0
%
 
Adjusted operating income
 
57.6
%
 
 
Three Months Ended
 
Twelve Months
Ended
Other
March 30,
2013
 
June 29,
2013
 
September 28,
2013
 
December 28,
2013
 
December 28,
2013
Adjusted net sales
$
41.1

 
$
40.9

 
$
43.2

 
$
30.0

 
$
155.2

Adjusted gross profit
$
21.4

 
$
19.2

 
$
30.3

 
$
17.1

 
$
88.0

Adjusted operating income
$
12.2

 
$
10.5

 
$
22.9

 
$
8.7

 
$
54.3

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Adjusted gross profit
52.1
%
 
46.9
%
 
70.3
%
 
56.9
%
 
56.7
%
Adjusted operating income
29.7
%
 
25.7
%
 
53.1
%
 
29.1
%
 
35.0
%
 
 
 
 
 
 
 
 
 
 
(1) Ratios are calculated using exact numbers.
 
 
 
(2) Only includes activity from December 18, 2013 to December 28, 2013.
(3) See attached Table II for reconciliation to GAAP numbers.
 
 
 

10


PERRIGO COMPANY PLC
ADJUSTED SELECTED SEGMENT INFORMATION (3)
CALENDAR YEAR 2012
(in millions)
(unaudited)
 
Three Months Ended
 
Twelve Months
Ended
Consumer Healthcare
March 31,
2012
 
June 30,
2012
 
September 29,
2012
 
December 29,
2012
 
December 29,
2012
Adjusted net sales
$
585.4

 
$
636.4

 
$
570.4

 
$
679.6

 
$
2,471.8

Adjusted gross profit
$
181.7

 
$
200.2

 
$
181.7

 
$
212.6

 
$
776.2

Adjusted operating income
$
98.7

 
$
107.4

 
$
93.5

 
$
114.2

 
$
413.8

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Adjusted gross profit
31.0
%
 
31.5
%
 
31.9
%
 
31.3
%
 
31.4
%
Adjusted operating income
16.9
%
 
16.9
%
 
16.4
%
 
16.8
%
 
16.7
%
 
Three Months Ended
 
Twelve Months
Ended
Rx Pharmaceuticals
March 31,
2012
 
June 30,
2012
 
September 29,
2012
 
December 29,
2012
 
December 29,
2012
Adjusted net sales
$
155.6

 
$
157.0

 
$
162.9

 
$
162.5

 
$
638.0

Adjusted gross profit
$
91.9

 
$
81.0

 
$
95.1

 
$
94.5

 
$
362.5

Adjusted operating income
$
75.8

 
$
61.1

 
$
76.9

 
$
74.0

 
$
287.8

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Adjusted gross profit
59.1
%
 
51.6
%
 
58.4
%
 
58.1
%
 
56.8
%
Adjusted operating income
48.7
%
 
38.9
%
 
47.2
%
 
45.6
%
 
45.1
%
 
Three Months Ended
 
Twelve Months
Ended
Other
March 31,
2012
 
June 30,
2012
 
September 29,
2012
 
December 29,
2012
 
December 29,
2012
Adjusted net sales
$
37.0

 
$
38.4

 
$
36.4

 
$
40.9

 
$
152.7

Adjusted gross profit
$
19.2

 
$
26.2

 
$
21.8

 
$
23.4

 
$
90.6

Adjusted operating income
$
11.0

 
$
18.0

 
$
13.8

 
$
14.3

 
$
57.0

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of net sales (1)
 
 
 
 
 
 
Adjusted gross profit
51.9
%
 
68.1
%
 
59.9
%
 
57.2
%
 
59.3
%
Adjusted operating income
29.6
%
 
46.8
%
 
37.8
%
 
35.0
%
 
37.4
%
 
 
 
 
 
 
 
 
 
 
(1) Ratios are calculated using exact numbers.
 
 
 
 
 
 
(3) See attached Table II for reconciliation to GAAP numbers.
 
 
 
 
 
 


11


PERRIGO COMPANY PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
 
Three Months Ended
 
March 29, 2014
 
March 30, 2013
 
March 31, 2012
Cash Flows From (For) Operating Activities
 
 
 
 
 
Net income (loss)
$
48.1

 
$
111.9

 
$
115.7

Adjustments to derive cash flows
 
 
 
 
 
Non-cash restructuring charges
3.3

 
—

 
7.1

Depreciation and amortization
127.2

 
42.9

 
34.6

Share-based compensation
4.9

 
4.6

 
4.9

Loss on sale of investment
12.7

 
1.7

 
—

Excess tax benefit of stock transactions
0.5

 
0.2

 
(1.0
)
Deferred income taxes (credit)
(21.7
)
 
(4.1
)
 
8.4

Other non-cash adjustments
(1.3
)
 
(1.4
)
 
(1.4
)
Subtotal
173.7

 
155.8

 
168.3

Increase (decrease) in cash due to:
 
 
 
 
 
Accounts receivable
(24.9
)
 
(22.1
)
 
(18.1
)
Inventories
9.2

 
(36.3
)
 
6.6

Accounts payable
18.4

 
0.7

 
(29.6
)
Payroll and related taxes
(54.0
)
 
(1.4
)
 
2.3

Accrued customer programs
9.8

 
3.4

 
(12.3
)
Accrued liabilities
6.8

 
17.2

 
1.3

Accrued income taxes
29.1

 
18.4

 
(27.3
)
Other
12.4

 
14.8

 
0.3

Subtotal
6.8

 
(5.3
)

(76.8
)
Net cash from (for) operating activities
180.5

 
150.5


91.5

Cash Flows From (For) Investing Activities
 
 
 
 
 
Acquisitions of businesses, net of cash acquired
(70.4
)
 
(280.9
)
 
(35.2
)
Additions to property and equipment
(42.2
)
 
(24.2
)
 
(30.1
)
Proceeds from sale of securities
81.4

 
8.6

 
—

Other investing
(15.0
)
 
—

 
—

Net cash from (for) investing activities
(46.2
)
 
(296.5
)

(65.3
)
Cash Flows From (For) Financing Activities
 
 
 
 
 
Issuance of long-term debt
—

 
0.2

 
2.1

Payments on long-term debt
(35.0
)
 
—

 
—

Issuance of ordinary shares
2.2

 
1.1

 
2.3

Excess tax benefit of stock transactions
(0.5
)
 
(0.3
)
 
1.0

Repurchase of ordinary shares
(0.2
)
 
(0.1
)
 
—

Cash dividends
(14.0
)
 
(8.5
)
 
(7.5
)
Other financing
—

 
1.8

 
—

Net cash from (for) financing activities
(47.5
)
 
(5.8
)

(2.1
)
Effect of exchange rate changes on cash
1.5

 
(6.9
)
 
(1.2
)
Net increase (decrease) in cash and cash equivalents
88.3

 
(158.7
)

22.9

Cash and cash equivalents, beginning of period
521.1

 
459.5

 
531.4

Cash and cash equivalents, end of period
$
609.4

 
$
300.8


$
554.3

 
 
 
 
 
 
Supplemental Disclosures of Cash Flow Information
 
 
 
 
 
Cash paid/received during the period for:
 
 
 
 
 
Interest paid
$
5.6

 
$
2.0

 
$
6.4

Interest received
$
0.5

 
$
(0.2
)
 
$
0.9

Income taxes paid
$
9.4

 
$
25.6

 
$
37.2

Income taxes refunded
$
—

 
$
0.1

 
$
—








12



PERRIGO COMPANY PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
 
Six Months Ended
 
June 28, 2014
 
June 29, 2013
 
June 30, 2012
Cash Flows From (For) Operating Activities
 
 
 
 
 
Net income (loss)
$
179.8

 
$
230.4

 
$
231.3

Adjustments to derive cash flows
 
 
 
 
 
(Gain) loss on sale of business
—

 
—

 
(8.6
)
Non-cash restructuring charges
32.7

 
2.9

 
8.7

Depreciation and amortization
248.5

 
90.2

 
68.2

Share-based compensation
11.0

 
9.0

 
10.0

Write-off of IPR&D
—

 
9.0

 
—

Loss on sale of investment
12.7

 
1.7

 
—

Excess tax benefit of stock transactions
1.2

 
(0.1
)
 
(1.7
)
Deferred income taxes (credit)
(48.4
)
 
4.7

 
23.8

Other non-cash adjustments
(2.8
)
 
(2.5
)
 
(2.7
)
Subtotal
434.7

 
345.3


329.0

Increase (decrease) in cash due to:
 
 
 
 
 
Accounts receivable
(161.6
)
 
(53.2
)
 
(38.7
)
Inventories
72.5

 
(49.6
)
 
39.5

Accounts payable
45.9

 
24.6

 
(9.2
)
Payroll and related taxes
(69.2
)
 
8.1

 
17.0

Accrued customer programs
40.3

 
6.0

 
(0.2
)
Accrued liabilities
21.0

 
15.5

 
(12.1
)
Accrued income taxes
39.7

 
16.1

 
(32.7
)
Other
49.9

 
11.4

 
0.7

Subtotal
38.5

 
(21.1
)

(35.7
)
Net cash from (for) operating activities
473.2

 
324.2


293.3

Cash Flows From (For) Investing Activities
 
 
 
 
 
Acquisitions of businesses, net of cash acquired
(77.9
)
 
(525.4
)
 
(35.3
)
Additions to property and equipment
(93.8
)
 
(64.8
)
 
(64.5
)
Proceeds from sale of securities
81.4

 
8.6

 
—

Other investing
(15.0
)
 
—

 
8.6

Net cash from (for) investing activities
(105.3
)
 
(581.6
)

(91.2
)
Cash Flows From (For) Financing Activities
 
 
 
 
 
Issuance of long-term debt
—

 
596.7

 
1.7

Payments on long-term debt
(70.0
)
 
—

 
(125.0
)
Deferred financing fees
—

 
(5.4
)
 
—

Issuance of ordinary shares
3.1

 
3.1

 
3.9

Excess tax benefit of stock transactions
(1.2
)
 
—

 
1.7

Repurchase of ordinary shares
(0.2
)
 
(0.2
)
 
(0.3
)
Cash dividends
(28.1
)
 
(17.0
)
 
(15.0
)
Other financing
2.0

 
2.3

 
0.1

Net cash from (for) financing activities
(94.4
)
 
579.5


(132.9
)
Effect of exchange rate changes on cash
4.9

 
(1.7
)
 
1.9

Net increase (decrease) in cash and cash equivalents
278.4

 
320.4


71.1

Cash and cash equivalents, beginning of period
521.1

 
459.5

 
531.4

Cash and cash equivalents, end of period
$
799.5

 
$
779.9


$
602.5

 
 
 
 
 
 
Supplemental Disclosures of Cash Flow Information
 
 
 
 
 
Cash paid/received during the period for:
 
 
 
 
 
Interest paid
$
49.3

 
$
29.3

 
$
30.8

Interest received
$
0.8

 
$
1.2

 
$
2.7

Income taxes paid
$
19.3

 
$
65.3

 
$
66.4

Income taxes refunded
$
0.7

 
$
0.1

 
$
0.1




13




PERRIGO COMPANY PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
 
Nine Months Ended
 
September 27, 2014
 
September 28, 2013
 
September 29, 2012
Cash Flows From (For) Operating Activities
 
 
 
 
 
Net income (loss)
$
276.1

 
$
341.8

 
$
336.9

Adjustments to derive cash flows
 
 
 
 
 
(Gain) loss on sale of business
—

 
—

 
(8.6
)
Non-cash restructuring charges
34.4

 
4.8

 
8.7

Depreciation and amortization
375.1

 
137.9

 
101.6

Share-based compensation
19.8

 
14.9

 
14.8

Write-off of IPR&D
—

 
9.0

 
—

Loss on sale of investment
12.7

 
1.7

 
—

Excess tax benefit of stock transactions
(3.1
)
 
(7.3
)
 
(15.0
)
Deferred income taxes (credit)
(68.5
)
 
(9.9
)
 
20.3

Other non-cash adjustments
1.8

 
(0.7
)
 
(0.7
)
Subtotal
648.3


492.2


458.0

Increase (decrease) in cash due to:
 
 
 
 
 
Accounts receivable
(104.3
)
 
(98.9
)
 
(45.4
)
Inventories
42.8

 
(61.6
)
 
(8.6
)
Accounts payable
13.4

 
(43.0
)
 
(21.8
)
Payroll and related taxes
(104.1
)
 
(0.5
)
 
(15.3
)
Accrued customer programs
58.4

 
33.5

 
6.2

Accrued liabilities
21.6

 
36.7

 
(9.4
)
Accrued income taxes
54.3

 
50.7

 
(17.0
)
Other
37.9

 
13.8

 
(8.5
)
Subtotal
20.0


(69.3
)

(119.8
)
Net cash from (for) operating activities
668.3


422.9


338.2

Cash Flows From (For) Investing Activities
 
 
 
 
 
Acquisitions of businesses, net of cash acquired
(77.9
)
 
(525.4
)
 
(35.3
)
Additions to property and equipment
(125.5
)
 
(105.2
)
 
(79.3
)
Proceeds from sale of securities
81.4

 
8.6

 
—

Other investing
(14.0
)
 
4.6

 
8.6

Net cash from (for) investing activities
(136.0
)

(617.4
)

(106.0
)
Cash Flows From (For) Financing Activities
 
 
 
 
 
Issuance of long-term debt
(39.5
)
 
596.7

 
2.3

Payments on long-term debt
(70.0
)
 
—

 
(125.0
)
Deferred financing fees
—

 
(30.2
)
 
—

Issuance of ordinary shares
5.7

 
6.6

 
8.0

Excess tax benefit of stock transactions
3.1

 
7.2

 
15.0

Repurchase of ordinary shares
(7.7
)
 
(7.5
)
 
(12.5
)
Cash dividends
(42.2
)
 
(25.5
)
 
(22.5
)
Other financing
(5.1
)
 
3.4

 
1.6

Net cash from (for) financing activities
(155.7
)

550.7


(133.1
)
Effect of exchange rate changes on cash
(6.2
)
 
0.9

 
1.5

Net increase (decrease) in cash and cash equivalents
370.4


357.1


100.6

Cash and cash equivalents, beginning of period
521.1

 
459.5

 
531.4

Cash and cash equivalents, end of period
$
891.5


$
816.6


$
632.0

 
 
 
 
 
 
Supplemental Disclosures of Cash Flow Information
 
 
 
 
 
Cash paid/received during the period for:
 
 
 
 
 
Interest paid
$
54.5

 
$
31.0

 
$
32.9

Interest received
$
1.0

 
$
1.4

 
$
4.0

Income taxes paid
$
30.2

 
$
87.4

 
$
86.9

Income taxes refunded
$
1.2

 
$
0.9

 
$
0.6



14




PERRIGO COMPANY PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
 
Twelve Months Ended
 
December 27, 2014
 
December 28, 2013
 
December 29, 2012
Cash Flows From (For) Operating Activities
 
 
 
 
 
Net income (loss)
$
346.3

 
$
255.8

 
$
442.9

Adjustments to derive cash flows
 
 
 
 
 
(Gain) loss on sale of business
—

 
—

 
(8.6
)
Non-cash restructuring charges
36.9

 
17.2

 
8.7

Depreciation and amortization
502.2

 
200.6

 
138.1

Loss on acquisition-related foreign currency derivatives
26.4

 
—

 
—

Share-based compensation
27.2

 
22.6

 
19.4

Loss on extinguishment of debt
9.6

 
165.8

 
—

Write-off of IPR&D
—

 
15.0

 
—

Loss on sale of investment
12.7

 
1.7

 
3.0

Excess tax benefit of stock transactions
(2.6
)
 
(7.0
)
 
(17.3
)
Deferred income taxes (credit)
(86.6
)
 
(0.7
)
 
24.8

Other non-cash adjustments
5.8

 
(2.2
)
 
(1.6
)
Subtotal
877.9

 
668.8

 
609.4

Increase (decrease) in cash due to:
 
 
 
 
 
Accounts receivable
(166.1
)
 
(118.3
)
 
(22.5
)
Inventories
54.8

 
(39.1
)
 
(5.5
)
Accounts payable
(0.9
)
 
(46.2
)
 
(27.3
)
Payroll and related taxes
(95.5
)
 
21.8

 
(3.0
)
Accrued customer programs
92.1

 
78.8

 
6.4

Accrued liabilities
73.0

 
17.5

 
(19.2
)
Accrued income taxes
72.1

 
(34.3
)
 
(19.9
)
Other
33.5

 
(4.5
)
 
4.4

Subtotal
63.0

 
(124.3
)
 
(86.6
)
Net cash from (for) operating activities
940.9

 
544.5

 
522.8

Cash Flows From (For) Investing Activities
 
 
 
 
 
Acquisitions of businesses, net of cash acquired
(160.9
)
 
(2,053.3
)
 
(362.2
)
Settlement of acquisition-related foreign currency derivatives
(26.4
)
 
—

 
—

Additions to property and equipment
(141.8
)
 
(142.6
)
 
(103.8
)
Proceeds from sale of securities
81.4

 
8.6

 
—

Other investing
(14.2
)
 
6.2

 
8.6

Net cash from (for) investing activities
(261.9
)
 
(2,181.1
)
 
(457.4
)
Cash Flows From (For) Financing Activities
 
 
 
 
 
Issuance of long-term debt
2,504.5

 
3,890.3

 
42.3

Payments on long-term debt
(1,004.5
)
 
(1,965.0
)
 
(165.0
)
Deferred financing fees
(24.8
)
 
(54.2
)
 
(0.6
)
Premium on early debt retirement
—

 
(133.5
)
 
—

Issuance of ordinary shares
1,042.5

 
9.8

 
11.5

Equity issuance costs
(35.7
)
 
—

 
—

Excess tax benefit of stock transactions
2.6

 
6.9

 
17.4

Repurchase of ordinary shares
(7.9
)
 
(7.5
)
 
(12.5
)
Cash dividends
(57.1
)
 
(35.0
)
 
(31.0
)
Purchase of noncontrolling interest
—

 
(7.2
)
 
—

Other financing
(5.0
)
 
(2.7
)
 
2.8

Net cash from (for) financing activities
2,414.6

 
1,701.9

 
(135.1
)
Effect of exchange rate changes on cash
(18.6
)
 
(3.7
)
 
(2.2
)
Net increase (decrease) in cash and cash equivalents
3,075.0

 
61.6

 
(71.9
)
Cash and cash equivalents, beginning of period
521.1

 
459.5

 
531.4

Cash and cash equivalents, end of period
$
3,596.1

 
$
521.1

 
$
459.5

 
 
 
 
 
 
Supplemental Disclosures of Cash Flow Information
 
 
 
 
 
Cash paid/received during the period for:
 
 
 
 
 
Interest paid
$
106.2

 
$
78.4

 
$
60.0

Interest received
$
1.2

 
$
2.8

 
$
5.4

Income taxes paid
$
40.1

 
$
139.2

 
$
134.3

Income taxes refunded
$
8.2

 
$
3.7

 
$
1.3


15


Table I
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2014
(in millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consolidated
March 29, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
1,004.2

 
$
—

 
$
1,004.2

Cost of sales
689.2

 
101.2

(a)
588.0

Gross profit
315.0

 
101.2

 
416.2

 
 
 
 
 
 
Operating expenses
 
 
 
 
 
Distribution
13.9

 
—

 
13.9

Research and development
44.7

 
—


44.7

Selling
52.5

 
5.5

(a)
47.0

Administration
81.1

 
11.1

(a,b,c,d)
70.0

Restructuring
19.5

 
19.5

(e)
—

Total operating expenses
211.7

 
36.1

 
175.6

 
 
 
 
 
 
Operating income
103.3

 
137.3

 
240.6

 
 
 
 
 
 
Interest expense, net
26.2

 
—


26.2

Other expense, net
1.7

 
1.8

(f)
(0.1
)
Loss on sale of investment
12.7

 
12.7

 
—

Income before income taxes
62.7

 
151.8

 
214.5

Income tax expense
14.6

 
23.8

(g)
38.3

Net income
$
48.1

 
$
128.0

 
$
176.2

 
 
 
 
 
 
Diluted earnings per share
$
0.36

 
 
 
$
1.31

 
 
 
 
 
 
Diluted weighted average shares outstanding
134.3

 
 
 
134.3

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
31.4
%
 
 
 
41.4
%
Operating expenses
21.1
%
 
 
 
17.5
%
Operating income
10.3
%
 
 
 
24.0
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) Elan transaction costs of $3.2 million
 
(c) Write-up of contingent consideration of $5.8 million
 
(d) Litigation settlement of $2.0 million
 
(e) Restructuring charges related primarily to Elan
 
(f) Losses on Elan equity method investments
 
(g) Tax effect of non-GAAP adjustments
 

16


Table I continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2014
(in millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consolidated
June 28, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
1,144.2

 
$
—

 
$
1,144.2

Cost of sales
728.5

 
93.0

(a)
635.4

Gross profit
415.7

 
93.0

 
508.8

 
 
 
 
 
 
Operating expenses
 
 
 
 
 
Distribution
14.1

 
—

 
14.1

Research and development
38.1

 
—


38.1

Selling
58.6

 
5.8

(a)
52.8

Administration
97.0

 
17.8

(a,b)
79.2

Restructuring
10.5

 
10.5

(c)
—

Total operating expenses
218.3

 
34.1

 
184.2

 
 
 
 
 
 
Operating income
197.4

 
127.1

 
324.6

 
 
 
 
 
 
Interest expense, net
26.3

 
—


26.3

Other expense, net
5.6

 
3.5

(d)
2.1

Income before income taxes
165.5

 
130.6

 
296.2

Income tax expense
33.8

 
28.3

(e)
62.1

Net income
$
131.7

 
$
102.3

 
$
234.1

 
 
 
 
 
 
Diluted earnings per share
$
0.98

 
 
 
$
1.74

 
 
 
 
 
 
Diluted weighted average shares outstanding
134.3

 
 
 
134.3

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
36.3
%
 
 
 
44.5
%
Operating expenses
19.1
%
 
 
 
16.1
%
Operating income
17.3
%
 
 
 
28.4
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
 
 
 
 
(b) Loss contingency accrual of $15.0 million
 
 
 
 
 
(c) Restructuring charges related primarily to Elan
 
 
 
 
(d) Losses on Elan equity method investments
 
 
 
 
 
(e) Tax effect of non-GAAP adjustments
 
 
 
 
 

17


Table I continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2014
(in millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consolidated
September 27, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
951.5

 
$
—

 
$
951.5

Cost of sales
629.7

 
100.5

(a)
529.2

Gross profit
321.8

 
100.5

 
422.3

 
 
 
 
 
 
Operating expenses
 
 
 
 
 
Distribution
14.4

 
—

 
14.4

Research and development
36.6

 
—


36.6

Selling
50.4

 
5.6

(a)
44.8

Administration
81.5

 
2.3

(a,b)
79.2

Restructuring
1.7

 
1.7

(c)
—

Total operating expenses
184.6

 
9.6

 
175.0

 
 
 
 
 
 
Operating income
137.2

 
110.1

 
247.3

 
 
 
 
 
 
Interest expense, net
25.9

 
—


25.9

Other expense, net
2.7

 
1.9

(d)
0.8

Income before income taxes
108.6

 
112.0

 
220.6

Income tax expense
12.3

 
20.8

(e)
33.1

Net income
$
96.3

 
$
91.2

 
$
187.5

 
 
 
 
 
 
Diluted earnings per share
$
0.72

 
 
 
$
1.40

 
 
 
 
 
 
Diluted weighted average shares outstanding
134.4

 
 
 
134.4

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
33.8
%
 
 
 
44.4
%
Operating expenses
19.4
%
 
 
 
18.4
%
Operating income
14.4
%
 
 
 
26.0
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
 
 
 
 
(b) Acquisition and integration-related charges of $1.0 million
 
 
(c) Restructuring and other integration-related charges
 
 
(d) Equity method investment losses totaling $3.1 million and a $1.2 million investment distribution
(e) Tax effect of non-GAAP adjustments
 
 
 
 
 






18


Table I continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2014
(in millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consolidated
December 27, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
1,071.7

 
$
—

 
$
1,071.7

Cost of sales
687.9

 
100.8

(a)
587.1

Gross profit
383.8

 
100.8

 
484.6

 
 
 
 
 
 
Operating expenses
 
 
 
 
 
Distribution
14.8

 
—

 
14.8

Research and development
53.2

 
10.0

(c)
43.2

Selling
44.9

 
5.5

(a)
39.4

Administration
84.1

 
13.6

(a,b,d)
70.5

Restructuring
2.4

 
2.4

(b)
—

Total operating expenses
199.4

 
31.5

 
167.9

 
 
 
 
 
 
Operating income
184.4

 
132.3

 
316.7

 
 
 
 
 
 
Interest expense, net
30.8

 
5.0

(e)
25.8

Other expense, net
59.3

 
56.4

(f,g,h)
2.9

Loss on extinguishment of debt
9.6

 
9.6

(i)
—

Income before income taxes
84.7

 
203.3

 
288.0

Income tax expense
14.5

 
28.6

(j)
43.1

Net income
$
70.2

 
$
174.7

 
$
244.9

 
 
 
 
 
 
Diluted earnings per share
$
0.51

 
 
 
$
1.82

 
 
 
 
 
 
Diluted weighted average shares outstanding
136.8

 
(2.3
)
(k)
134.5

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
35.8
%
 
 
 
45.2
%
Operating expenses
18.6
%
 
 
 
15.7
%
Operating income
17.2
%
 
 
 
29.5
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
(b) Restructuring and other integration-related charges
(c) R&D payment of $10.0 million made in connection with collaborative arrangement
(d) Omega transaction expenses totaling $11.6 million
(e) Omega financing fees
(f) Loss on derivatives associated with the pending Omega acquisition totaling $64.7 million
(g) Elan equity method investment losses totaling $3.0 million
(h) Income of $12.5 million from transfer of a rights agreement
(i) Bridge fees and extinguishment of debt in connection with Omega financing
(j) Tax effect of non-GAAP adjustments
(k) Weighted average effect of 6.8 million shares issued on November 26, 2014 to finance the pending Omega acquisition

19


Table I continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2014
(in millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Twelve Months Ended
Consolidated
December 27, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
4,171.6

 
$
—

 
$
4,171.6

Cost of sales
2,735.3

 
395.5

(a)
2,339.7

Gross profit
1,436.3

 
395.5

 
1,831.9

 
 
 
 
 
 
Operating expenses
 
 
 
 
 
Distribution
57.2

 
—

 
57.2

Research and development
172.6

 
10.0

(b)
162.6

Selling
206.4

 
22.4

(a)
184.0

Administration
343.7

 
44.8

(a,c,d,e,f)
298.9

Restructuring
34.1

 
34.1

(g)
—

Total operating expenses
814.0

 
111.3

 
702.7

 
 
 
 
 
 
Operating income
622.3

 
506.8

 
1,129.2

 
 
 
 
 
 
Interest expense, net
109.2

 
5.0

(h)
104.2

Other expense, net
69.3

 
63.6

(i,j,k)
5.7

Loss on sale of investment
12.7

 
12.7

 
—

Loss on extinguishment of debt
9.6

 
9.6

(l)
—

Income before income taxes
421.5

 
597.7

 
1,019.3

Income tax expense
75.2

 
101.5

(m)
176.6

Net income
$
346.3

 
$
496.2

 
$
842.7

 
 
 
 
 
 
Diluted earnings per share
$
2.57

 
 
 
$
6.27

 
 
 
 
 
 
Diluted weighted average shares outstanding
135.0

 
(0.6
)
(n)
134.4

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
34.4
%
 
 
 
43.9
%
Operating expenses
19.5
%
 
 
 
16.8
%
Operating income
14.9
%
 
 
 
27.1
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) R&D payment of $10.0 million made in connection with collaborative arrangement
 
(c) Acquisition and integration-related charges totaling $15.8 million related primarily to Omega and Elan
 
(d) Write-up of contingent consideration of $5.8 million
 
(e) Litigation settlement of $2.0 million
 
(f) Loss contingency accrual of $15.0 million
 
(g) Restructuring and other integration-related charges due primarily to Elan
 
(h) Omega financing fees
 
(i) Elan equity method investment losses totaling $11.4 million
 
(j) Loss on derivatives associated with the pending Omega acquisition totaling $64.7 million
 
(k) Income of $12.5 million from transfer of a rights agreement
 
(l) Bridge fees and extinguishment of debt in connection with Omega financing
 
(m) Tax effect of non-GAAP adjustments
 
(n) Weighted average effect of 6.8 million shares issued on November 26, 2014 to finance the pending Omega acquisition
 

20


Table I continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2013
(in millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consolidated
March 30, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
919.8

 
$
—

 
$
919.8

Cost of sales
588.4

 
20.5

(a,b)
567.9

Gross profit
331.4

 
20.5

 
351.9

 
 
 
 
 
 
Operating expenses
 
 
 
 
 
Distribution
12.6

 
—

 
12.6

Research and development
28.5

 
—


28.5

Selling
49.1

 
5.3

(a)
43.8

Administration
62.6

 
3.8

(a,c)
58.8

Restructuring
—

 
—


—

Total operating expenses
152.8

 
9.1

 
143.7

 
 
 
 
 
 
Operating income
178.6

 
29.6

 
208.2

 
 
 
 
 
 
Interest expense, net
16.1

 
—


16.1

Other expense, net
0.8

 
—


0.8

Loss on sale of investment
1.6

 
1.6

 
—

Income before income taxes
160.1

 
31.2

 
191.3

Income tax expense
48.2

 
9.0

(d)
57.2

Net income
$
111.9

 
$
22.2

 
$
134.1

 
 
 
 
 
 
Diluted earnings per share
$
1.18

 
 
 
$
1.42

 
 
 
 
 
 
Diluted weighted average shares outstanding
94.5

 


94.5

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
         Gross profit
36.0
%
 
 
 
38.3
%
         Operating expenses
16.6
%
 
 
 
15.6
%
         Operating income
19.4
%
 
 
 
22.6
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
 
 
 
 
(b) Inventory step-up of $1.9 million
 
 
 
 
 
(c) Acquisition costs of $3.1 million
 
 
 
 
 
(d) Tax effect of non-GAAP adjustments
 
 
 
 
 

21


Table I continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2013
(in millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consolidated
June 29, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
967.2

 
$
—

 
$
967.2

Cost of sales
611.0

 
23.9

(a,b)
587.1

Gross profit
356.2

 
23.9

 
380.1

 
 
 
 
 
 
Operating expenses
 
 
 
 
 
Distribution
12.5

 
—

 
12.5

Research and development
30.9

 
—


30.9

Selling
56.5

 
5.6

(a)
51.0

Administration
64.3

 
3.7

(a,c)
60.6

Write-off of in-process research and development
9.0

 
9.0

(d)
—

Restructuring
2.9

 
2.9

(e)
—

Total operating expenses
176.1

 
21.2

 
154.9

 
 
 
 
 
 
Operating income
180.1

 
45.1

 
225.2

 
 
 
 
 
 
Interest expense, net
18.6

 
—


18.6

Other expense, net
0.1

 
—


0.1

Income before income taxes
161.4

 
45.1

 
206.6

Income tax expense
43.0

 
15.5

(f)
58.5

Net income
$
118.5

 
$
29.6

 
$
148.1

 
 
 
 
 
 
Diluted earnings per share
$
1.25

 
 
 
$
1.57

 
 
 
 
 
 
Diluted weighted average shares outstanding
94.6

 


94.6

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
         Gross profit
36.8
%
 
 
 
39.3
%
         Operating expenses
18.2
%
 
 
 
16.0
%
         Operating income
18.6
%
 
 
 
23.3
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
 
 
 
 
(b) Inventory step-up of $1.2 million
 
 
 
 
 
(c) Acquisition and other integration-related charges of $3.0 million
 
 
(d) Write-off of IPR&D related to the Paddock acquisition
 
 
(e) Restructuring charges
 
 
 
 
 
(f) Tax effect of non-GAAP adjustments
 
 
 
 
 

22


Table I continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2013
(in millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consolidated
September 28, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
933.4

 
$
—

 
$
933.4

Cost of sales
577.1

 
23.5

(a)
553.7

Gross profit
356.3

 
23.5

 
379.7

 
 
 
 
 
 
Operating expenses
 
 
 
 
 
Distribution
13.2

 
—

 
13.2

Research and development
32.3

 
—


32.3

Selling
50.2

 
5.5

(a)
44.7

Administration
78.8

 
15.4

(a,b,c)
63.3

Restructuring
2.1

 
2.1

(d)
—

Total operating expenses
176.6

 
23.1

 
153.5

 
 
 
 
 
 
Operating income
179.7

 
46.5

 
226.2

 
 
 
 
 
 
Interest expense, net
21.4

 
2.8

(e)
18.7

Other expense, net
1.0

 
—


1.0

Income before income taxes
157.3

 
49.3

 
206.5

Income tax expense
45.9

 
16.8

(f)
62.7

Net income
$
111.4

 
$
32.5

 
$
143.9

 
 
 
 
 
 
Diluted earnings per share
$
1.18

 
 
 
$
1.52

 
 
 
 
 
 
Diluted weighted average shares outstanding
94.7

 


94.7

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
         Gross profit
38.2
%
 
 
 
40.7
%
         Operating expenses
18.9
%
 
 
 
16.4
%
         Operating income
19.3
%
 
 
 
24.2
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
 
 
 
 
(b) Elan transaction costs of $12.0 million
 
 
 
 
 
(c) Litigation settlement of $2.5 million
 
 
 
 
 
(d) Restructuring charges
 
 
 
 
(e) Elan transaction costs
 
 
 
 
 
(f) Tax effect of non-GAAP adjustments
 
 
 
 
 





23


Table I continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2013
(in millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consolidated
December 28, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
979.0

 
$
—

 
$
979.0

Cost of sales
618.3

 
37.5

(a)
580.8

Gross profit
360.7

 
37.5

 
398.2

 
 
 
 
 
 
Operating expenses
 
 
 
 
 
Distribution
14.0

 
—

 
14.0

Research and development
37.5

 
—


37.5

Selling
47.3

 
5.5

(a)
41.8

Administration
154.4

 
87.3

(a,b,c,d)
67.1

Write-off of in-process research and development
6.0

 
6.0

(e)
—

Restructuring
14.9

 
14.9

(f)
—

Total operating expenses
274.1

 
113.8

 
160.4

 
 
 
 
 
 
Operating income
86.6

 
151.3

 
237.8

 
 
 
 
 
 
Interest expense, net
29.7

 
9.0

(g)
20.7

Other expense, net
4.1

 
1.8

(g,h)
2.3

Loss on extinguishment of debt
165.8

 
165.8


—

Income before income taxes
(113.0
)
 
327.8

 
214.8

Income tax expense
(27.0
)
 
56.5

(i)
29.5

Net income
$
(86.0
)
 
$
271.3

 
$
185.3

 
 
 
 
 
 
Diluted earnings per share
$
(0.87
)
 
 
 
$
1.87

 
 
 
 
 
 
Diluted weighted average shares outstanding
98.7

 


99.2

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
         Gross profit
36.8
%
 
 
 
40.7
%
         Operating expenses
28.0
%
 
 
 
16.4
%
         Operating income
8.8
%
 
 
 
24.3
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
 
(b) Elan transaction costs of $93.7 million
(c) Escrow settlement of $2.5 million related to the Sergeant's acquisition
(d) Write-off of contingent consideration of $4.9 million related to the Fera acquisition
(e) Write-offs of IPR&D related to the Paddock and Rosemont acquisitions
(f) Restructuring charges related primarily to Elan
 
 
(g) Elan transaction costs
 
 
(h) Losses on Elan equity method investments of $1.3 million
 
 
(i) Tax effect of non-GAAP adjustments
 
 

24


Table I continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2013
(in millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Twelve Months Ended
Consolidated
December 28, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
3,799.4

 
$
—

 
$
3,799.4

Cost of sales
2,394.8

 
105.4

(a,b)
2,289.5

Gross profit
1,404.6

 
105.4

 
1,509.9

 
 
 
 
 
 
Operating expenses
 
 
 
 
 
Distribution
52.3

 
—

 
52.3

Research and development
129.2

 
—

 
129.2

Selling
203.1

 
21.9

(a)
181.3

Administration
360.1

 
110.2

(a,c,d,e,f)
249.8

Write-off of in-process research and development
15.0

 
15.0

(g)
—

Restructuring
19.9

 
19.9

(h)
—

Total operating expenses
779.6

 
167.2

 
612.5

 
 
 
 
 
 
Operating income
625.0

 
272.5

 
897.4

 
 
 
 
 
 
Interest expense, net
85.8

 
11.8

(i)
74.1

Other expense, net
6.0

 
1.8

(i,j)
4.2

Loss on sale of investment
1.6

 
1.6

 
—

Loss on extinguishment of debt
165.8

 
165.8

 
—

Income before income taxes
365.8

 
453.4

 
819.2

Income tax expense
110.1

 
97.8

(k)
207.9

Net income
$
255.8

 
$
355.6

 
$
611.4

 
 
 
 
 
 
Diluted earnings per share
$
2.67

 

 
$
6.38

 
 
 
 
 
 
Diluted weighted average shares outstanding
95.9

 

 
95.9

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
         Gross profit
37.0
%
 
 
 
39.7
%
         Operating expenses
20.5
%
 
 
 
16.1
%
         Operating income
16.4
%
 
 
 
23.6
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) Inventory step-up of $3.1 million
 
(c) Acquisition and other integration-related charges totaling $111.8 million, due primarily to Elan
 
(d) Litigation settlement of $2.5 million
 
(e) Escrow settlement of $2.5 million related to the Sergeant's acquisition
 
(f) Write-off of contingent consideration of $4.9 million related to the Fera acquisition
 
(g) Write-off of IPR&D related to the Paddock and Rosemont acquisitions
 
(h) Restructuring charges related primarily to Elan
 
(i) Elan transaction costs
 
(j) Losses on Elan equity method investments of $1.3 million
 
(k) Tax effect of non-GAAP adjustments
 

25


Table I continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2012
(in millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consolidated
March 31, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
778.0

 
$
—

 
$
778.0

Cost of sales
498.7

 
13.5

(a)
485.2

Gross profit
279.3

 
13.5

 
292.8

 
 
 
 
 
 
Operating expenses
 
 
 
 
 
Distribution
10.2

 
—

 
10.2

Research and development
28.0

 
—


28.0

Selling
35.4

 
4.6

(a)
30.8

Administration
52.5

 
0.4

(a)
52.1

Restructuring
7.1

 
7.1

(b)
—

Total operating expenses
133.2

 
12.1

 
121.1

 
 
 
 
 
 
Operating income
146.1

 
25.6

 
171.7

 
 
 
 
 
 
Interest expense, net
16.7

 
—


16.7

Other expense, net
(5.2
)
 
—


(5.2
)
Income before income taxes
134.6

 
25.6

 
160.2

Income tax expense
18.9

 
8.6

(c)
27.5

Net income
$
115.7

 
$
17.0

 
$
132.7

 
 
 
 
 
 
Diluted earnings per share
$
1.23

 
 
 
$
1.41

 
 
 
 
 
 
Diluted weighted average shares outstanding
94.1

 


94.1

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
         Gross profit
35.9
%
 
 
 
37.6
%
         Operating expenses
17.1
%
 
 
 
15.6
%
         Operating income
18.8
%
 
 
 
22.1
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
(a) Acquisition-related amortization expense
(b) Restructuring charges
(c) Tax effect of non-GAAP adjustments

26


Table I continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2012
(in millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consolidated
June 30, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
831.8

 
$
—

 
$
831.8

Cost of sales
537.9

 
13.4

(a)
524.5

Gross profit
293.9

 
13.4

 
307.3

 
 
 
 
 
 
Operating expenses
 
 
 
 
 
Distribution
9.6

 
—

 
9.6

Research and development
27.0

 
0.8

(b)
26.3

Selling
38.7

 
4.6

(a)
34.1

Administration
55.9

 
0.4

(a)
55.5

Restructuring
1.7

 
1.7

(c)
—

Total operating expenses
132.9

 
7.5

 
125.5

 
 
 
 
 
 
Operating income
160.9

 
20.9

 
181.8

 
 
 
 
 
 
Interest expense, net
15.9

 
—


15.9

Other expense, net
0.7

 
—


0.7

Income from continuing operations before income taxes
144.3

 
20.9

 
165.2

Income tax expense
37.3

 
7.0

(d)
44.3

Income from continuing operations
$
107.0

 
$
13.9

 
$
120.9

 
 
 
 
 
 
Diluted earnings per share from continuing operations
$
1.14

 
 
 
$
1.28

 
 
 
 
 
 
Diluted weighted average shares outstanding
94.3

 


94.3

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
         Gross profit
35.3
%
 
 
 
36.9
%
         Operating expenses
16.0
%
 
 
 
15.1
%
         Operating income
19.3
%
 
 
 
21.9
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
 
 
 
 
(b) Net charge related to acquired R&D and proceeds from sale of IPR&D projects
 
 
(c) Restructuring charges
 
 
 
 
 
(d) Tax effect of non-GAAP adjustments
 
 
 
 
 

27


Table I continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2012
(in millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consolidated
September 29, 2012
 
GAAP(1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
769.8

 
$
—

 
$
769.8

Cost of sales
484.5

 
13.3

(a)
471.2

Gross profit
285.3

 
13.3

 
298.6

 
 
 
 
 
 
Operating expenses
 
 
 
 
 
Distribution
10.8

 
—

 
10.8

Research and development
27.4

 
—


27.4

Selling
37.4

 
5.1

(a)
32.3

Administration
53.1

 
2.3

(a,b)
50.8

Total operating expenses
128.7

 
7.4

 
121.3

 
 
 
 
 
 
Operating income
156.6

 
20.7

 
177.3

 
 
 
 
 
 
Interest expense, net
15.9

 
—


15.9

Other expense, net
(0.1
)
 
—


(0.1
)
Income before income taxes
140.8

 
20.7

 
161.5

Income tax expense
35.2

 
6.8

(c)
42.0

Net income
$
105.6

 
$
13.9

 
$
119.5

 
 
 
 
 
 
Diluted earnings per share
$
1.12

 
 
 
$
1.27

 
 
 
 
 
 
Diluted weighted average shares outstanding
94.3

 


94.3

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
         Gross profit
37.1
%
 
 
 
38.8
%
         Operating expenses
16.7
%
 
 
 
15.8
%
         Operating income
20.3
%
 
 
 
23.0
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
 
 
 
 
(b) Acquisition costs of $1.9 million
 
 
 
 
 
(c) Tax effect of non-GAAP adjustments
 
 
 
 
 

28


Table I continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2012
(in millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consolidated
December 29, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
883.0

 
$
—

 
$
883.0

Cost of sales
575.8

 
23.3

(a,b)
552.5

Gross profit
307.2

 
23.3

 
330.5

 
 
 
 
 
 
Operating expenses
 
 
 
 
 
Distribution
11.7

 
—

 
11.7

Research and development
28.3

 
—


28.3

Selling
43.1

 
5.3

(a)
37.8

Administration
60.2

 
2.2

(a,c,d)
58.0

Total operating expenses
143.3

 
7.5

 
135.8

 
 
 
 
 
 
Operating income
163.9

 
30.8

 
194.7

 
 
 
 
 
 
Interest expense, net
15.3

 
—


15.3

Other expense, net
0.1

 
—


0.1

Loss on sale of investment
3.0

 
3.0

 
—

Income before income taxes
145.5

 
33.8

 
179.3

Income tax expense
39.5

 
11.7

(e)
51.2

Net income
$
106.0

 
$
22.1

 
$
128.1

 
 
 
 
 
 
Diluted earnings per share
$
1.12

 
 
 
$
1.36

 
 
 
 
 
 
Diluted weighted average shares outstanding
94.5

 


94.5

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
         Gross profit
34.8
%
 
 
 
37.4
%
         Operating expenses
16.2
%
 
 
 
15.4
%
         Operating income
18.6
%
 
 
 
22.0
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
 
 
 
 
(b) Inventory step-up of $7.7 million
 
 
 
 
 
(c) Severance costs of $1.5 million
 
 
 
 
 
(d) Acquisition costs of $0.4 million
 
 
 
 
 
(e) Tax effect of non-GAAP adjustments
 
 
 
 
 

29


Table I continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2012
(in millions, except per share amounts)
(unaudited)
 
 
 
 
 
 
 
Twelve Months Ended
Consolidated
December 29, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
3,262.6

 
$
—

 
$
3,262.6

Cost of sales
2,096.9

 
63.5

(a,b)
2,033.4

Gross profit
1,165.7

 
63.5

 
1,229.2

 
 
 
 
 
 
Operating expenses
 
 
 
 
 
Distribution
42.3

 
—

 
42.3

Research and development
110.7

 
0.8

(c)
110.0

Selling
154.6

 
19.6

(a)
135.0

Administration
221.7

 
5.3

(a,d,e)
216.4

Restructuring
8.8

 
8.8

(f)
—

Total operating expenses
538.1

 
34.5

 
503.7

 

 

 

Operating income
627.5

 
98.0

 
725.5

 
 
 
 
 
 
Interest expense, net
63.8

 
—

 
63.8

Other expense, net
(4.5
)
 
—

 
(4.5
)
Loss on sale of investment
3.0

 
3.0


—

Income from continuing operations before income taxes
565.2

 
101.0

 
666.2

Income tax expense
130.9

 
34.1

(g)
165.0

Income from continuing operations
$
434.3

 
$
66.9

 
$
501.2

 
 
 
 
 
 
Diluted earnings per share from continuing operations
$
4.60

 

 
$
5.31

 
 
 
 
 
 
Diluted weighted average shares outstanding
94.4

 

 
94.4

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
         Gross profit
35.7
%
 
 
 
37.7
%
         Operating expenses
16.5
%
 
 
 
15.4
%
         Operating income
19.2
%
 
 
 
22.2
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
(a) Acquisition-related amortization expense
(b) Inventory step-up of $7.7 million
(c) Net charge related to acquired R&D and proceeds from sale of IPR&D projects
(d) Acquisition costs of $2.3 million
(e) Severance costs of $1.5 million
(f) Restructuring charges
(g) Tax effect of non-GAAP adjustments



30


Table II
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2014
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consumer Healthcare
March 29, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
695.3

 
$
—

 
$
695.3

Cost of sales
484.4

 
7.1

(a)
477.3

Gross profit
210.9

 
7.1

 
218.0

Operating expenses
118.4

 
9.6

(a,b,c)
108.8

Operating income
$
92.5

 
$
16.7

 
$
109.2

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
30.3
%
 
 
 
31.4
%
Operating expenses
17.0
%
 
 
 
15.6
%
Operating income
13.3
%
 
 
 
15.7
%
 
 
 
Three Months Ended
Consumer Healthcare
June 28, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
772.4

 
$
—

 
$
772.4

Cost of sales
527.1

 
7.3

(a)
519.8

Gross profit
245.3

 
7.3

 
252.6

Operating expenses
127.0

 
9.9

(a,d)
117.1

Operating income
$
118.3

 
$
17.2

 
$
135.5

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
31.8
%
 
 
 
32.7
%
Operating expenses
16.4
%
 
 
 
15.2
%
Operating income
15.3
%
 
 
 
17.5
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) Restructuring charges of $1.6 million
 
(c) Litigation settlement of $2.0 million
 
(d) Restructuring charges and other integrated-related expenses of $2.5 million


31


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2014
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consumer Healthcare
September 27, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
640.3

 
$
—

 
$
640.3

Cost of sales
447.3

 
10.6

(a)
436.7

Gross profit
193.0

 
10.6

 
203.6

Operating expenses
118.2

 
8.2

(a,b)
110.0

Operating income
$
74.8

 
$
18.8

 
$
93.6

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
30.1
%
 
 
 
31.8
%
Operating expenses
18.5
%
 
 
 
17.2
%
Operating income
11.7
%
 
 
 
14.6
%
 
 
 
Three Months Ended
Consumer Healthcare
December 27, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
678.5

 
$
—

 
$
678.5

Cost of sales
471.4

 
10.1

(a)
461.3

Gross profit
207.1

 
10.1

 
217.2

Operating expenses
123.9

 
18.3

(a,c,d)
105.6

Operating income
$
83.2

 
$
28.4

 
$
111.6

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
30.5
%
 
 
 
32.0
%
Operating expenses
18.3
%
 
 
 
15.6
%
Operating income
12.3
%
 
 
 
16.4
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) Restructuring and other integration-related charges of $1.7 million
 
(c) R&D payment of $10.0 million made in connection with a collaborative arrangement
 
(d) Restructuring and other integration-related charges of $2.1 million
 


32


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2014
(in millions)
(unaudited)
 
 
 
 
 
 
 
Twelve Months Ended
Consumer Healthcare
December 27, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
2,786.5

 
$
—

 
$
2,786.5

Cost of sales
1,930.2

 
35.1

(a)
1,895.1

Gross profit
856.3

 
35.1

 
891.4

Operating expenses
487.5

 
46.0

(a,b,c,d)
441.5

Operating income
$
368.8

 
$
81.1

 
$
449.9

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
30.7
%
 
 
 
32.0
%
Operating expenses
17.5
%
 
 
 
15.8
%
Operating income
13.2
%
 
 
 
16.1
%
 
 
 
Three Months Ended
Rx Pharmaceuticals
March 29, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
223.4

 
$
—

 
$
223.4

Cost of sales
110.5

 
17.3

(a)
93.2

Gross profit
112.9

 
17.3

 
130.2

Operating expenses
35.9

 
6.0

(a,e)
29.9

Operating income
$
77.0

 
$
23.3

 
$
100.3

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
50.5
%
 
 
 
58.3
%
Operating expenses
16.1
%
 
 
 
13.4
%
Operating income
34.5
%
 
 
 
44.9
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) Restructuring and other integration-related charges of $7.9 million
 
(c) Litigation settlement of $2.0 million
 
(d) R&D payment of $10.0 million made in connection with collaborative arrangements
 
(e) Write-up of contingent consideration of $5.8 million
 


33


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2014
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Rx Pharmaceuticals
June 28, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
253.4

 
$
—

 
$
253.4

Cost of sales
117.8

 
17.5

(a)
100.3

Gross profit
135.6

 
17.5

 
153.1

Operating expenses
46.3

 
15.5

(a,b)
30.8

Operating income
$
89.3

 
$
33.0

 
$
122.3

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
53.5
%
 
 
 
60.4
%
Operating expenses
18.3
%
 
 
 
12.2
%
Operating income
35.2
%
 
 
 
48.3
%
 
 
 
Three Months Ended
Rx Pharmaceuticals
September 27, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
194.5

 
$
—

 
$
194.5

Cost of sales
98.1

 
16.9

(a)
81.2

Gross profit
96.4

 
16.9

 
113.3

Operating expenses
31.7

 
0.2

(a)
31.5

Operating income
$
64.7

 
$
17.1

 
$
81.8

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
49.6
%
 
 
 
58.3
%
Operating expenses
16.3
%
 
 
 
16.2
%
Operating income
33.3
%
 
 
 
42.1
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) Loss contingency accrual of $15.0 million
 


34


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2014
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Rx Pharmaceuticals
December 27, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
276.6

 
$
—

 
$
276.6

Cost of sales
127.1

 
17.8

(a)
109.3

Gross profit
149.5

 
17.8

 
167.3

Operating expenses
39.8

 
0.2

(a)
39.6

Operating income
$
109.7

 
$
18.0

 
$
127.7

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
54.0
%
 
 
 
60.5
%
Operating expenses
14.4
%
 
 
 
14.3
%
Operating income
39.6
%
 
 
 
46.2
%
 
 
 
Twelve Months Ended
Rx Pharmaceuticals
December 27, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
947.9

 
$
—

 
$
947.9

Cost of sales
453.5

 
69.5

(a)
384.0

Gross profit
494.4

 
69.5

 
563.9

Operating expenses
153.7

 
21.9

(a,b,c)
131.8

Operating income
$
340.7

 
$
91.4

 
$
432.1

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
52.2
%
 
 
 
59.5
%
Operating expenses
16.2
%
 
 
 
13.9
%
Operating income
35.9
%
 
 
 
45.6
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) Write-up of contingent consideration of $5.8 million
 
(c) Loss contingency accrual of $15.0 million
 

35


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2014
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Specialty Sciences
March 29, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
53.4

 
$
—

 
$
53.4

Cost of sales
76.3

 
76.3

(a)
—

Gross profit
(22.9
)
 
76.3

 
53.4

Operating expenses
31.6

 
16.9

(b)
14.7

Operating income
$
(54.5
)
 
$
93.2

 
$
38.7

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
(42.9
)%
 
 
 
100.0
%
Operating expenses
59.1
 %
 
 
 
27.5
%
Operating income
(102.1
)%
 
 
 
72.5
%
 
 
 
Three Months Ended
Specialty Sciences
June 28, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
85.9

 
$
—

 
$
85.9

Cost of sales
67.8

 
67.8

(a)
—

Gross profit
18.1

 
67.8

 
85.9

Operating expenses
13.2

 
5.8

(b)
7.4

Operating income
$
4.9

 
$
73.6

 
$
78.5

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
21.1
 %
 
 
 
100.0
%
Operating expenses
15.3
 %
 
 
 
8.6
%
Operating income
5.8
 %
 
 
 
91.4
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) Elan restructuring and integration-related charges
 

36


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2014
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Specialty Sciences
September 27, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
91.9

 
$
—

 
$
91.9

Cost of sales
72.5

 
72.5

(a)
—

Gross profit
19.4

 
72.5

 
91.9

Operating expenses
4.5

 
0.4

(a)
4.1

Operating income
$
14.9

 
$
72.9

 
$
87.8

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
21.1
%
 
 
 
100.0
%
Operating expenses
4.9
%
 
 
 
4.4
%
Operating income
16.2
%
 
 
 
95.6
%
 
 
 
Three Months Ended
Specialty Sciences
December 27, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
86.6

 
$
—

 
$
86.6

Cost of sales
72.5

 
72.5

(a)
—

Gross profit
14.1

 
72.5

 
86.6

Operating expenses
4.6

 
0.8

(a,b)
3.8

Operating income
$
9.5

 
$
73.3

 
$
82.8

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
16.3
%
 
 
 
100.0
%
Operating expenses
5.3
%
 
 
 
4.4
%
Operating income
11.0
%
 
 
 
95.6
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) Elan restructuring and integration-related charges
 

37


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2014
(in millions)
(unaudited)
 
 
 
 
 
 
 
Twelve Months Ended
Specialty Sciences
December 27, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
317.8

 
$
—

 
$
317.8

Cost of sales
289.1

 
289.1

(a)
—

Gross profit
28.7

 
289.1

 
317.8

Operating expenses
53.9

 
23.9

(a,b)
30.0

Operating income
$
(25.2
)
 
$
313.0

 
$
287.8

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
9.0
 %
 
 
 
100.0
%
Operating expenses
17.0
 %
 
 
 
9.4
%
Operating income
(7.9
)%
 
 
 
90.6
%
 
 
 
Three Months Ended
Other
March 29, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
32.0

 
$
—

 
$
32.0

Cost of sales
18.0

 
0.5

(a)
17.5

Gross profit
14.0

 
0.5

 
14.5

Operating expenses
7.2

 
—

 
7.2

Operating income
$
6.8

 
$
0.5

 
$
7.3

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
43.6
 %
 
 
 
45.3
%
Operating expenses
22.6
 %
 
 
 
22.6
%
Operating income
21.0
 %
 
 
 
22.7
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) Elan restructuring and integration-related charges
 

38


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2014
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Other
June 28, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
32.5

 
$
—

 
$
32.5

Cost of sales
15.7

 
0.5

(a)
15.2

Gross profit
16.8

 
0.5

 
17.3

Operating expenses
8.0

 
0.2

 
7.8

Operating income
$
8.8

 
$
0.7

 
$
9.5

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
51.7
%
 
 
 
53.4
%
Operating expenses
24.7
%
 
 
 
24.1
%
Operating income
27.0
%
 
 
 
29.3
%
 
 
 
Three Months Ended
Other
September 27, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
24.8

 
$
—

 
$
24.8

Cost of sales
11.8

 
0.5

(a)
11.3

Gross profit
13.0

 
0.5

 
13.5

Operating expenses
5.9

 
—

 
5.9

Operating income
$
7.1

 
$
0.5

 
$
7.6

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
52.3
%
 
 
 
54.4
%
Operating expenses
24.0
%
 
 
 
24.0
%
Operating income
28.3
%
 
 
 
30.5
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
(a) Acquisition-related amortization expense
 


39


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2014
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Other
December 27, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
30.0

 
$
—

 
$
30.0

Cost of sales
16.8

 
0.5

(a)
16.3

Gross profit
13.2

 
0.5

 
13.7

Operating expenses
5.8

 
—

 
5.8

Operating income
$
7.4

 
$
0.5

 
$
7.9

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
43.9
%
 
 
 
45.5
%
Operating expenses
19.2
%
 
 
 
19.2
%
Operating income
24.7
%
 
 
 
26.3
%
 
 
 
Twelve Months Ended
Other
December 27, 2014
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
119.3

 
$
—

 
$
119.3

Cost of sales
62.3

 
2.0

(a)
60.3

Gross profit
57.0

 
2.0

 
59.0

Operating expenses
26.9

 
0.2

 
26.7

Operating income
$
30.1

 
$
2.2

 
$
32.3

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
47.8
%
 
 
 
49.5
%
Operating expenses
22.5
%
 
 
 
22.4
%
Operating income
25.2
%
 
 
 
27.1
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
(a) Acquisition-related amortization expense
 


40


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2013
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consumer Healthcare
March 30, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
689.3

 
$
—

 
$
689.3

Cost of sales
475.4

 
6.9

(a)
468.5

Gross profit
213.9

 
6.9

 
220.8

Operating expenses
109.4

 
5.8

(a)
103.6

Operating income
$
104.5

 
$
12.7

 
$
117.2

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
31.0
%
 
 
 
32.0
%
Operating expenses
15.9
%
 
 
 
15.0
%
Operating income
15.2
%
 
 
 
17.0
%
 
 
 
Three Months Ended
Consumer Healthcare
June 29, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
731.7

 
$
—

 
$
731.7

Cost of sales
486.3

 
6.7

(a)
479.7

Gross profit
245.3

 
6.7

 
252.0

Operating expenses
125.6

 
11.9

(a,b)
113.7

Operating income
$
119.8

 
$
18.5

 
$
138.3

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
33.5
%
 
 
 
34.4
%
Operating expenses
17.2
%
 
 
 
15.5
%
Operating income
16.4
%
 
 
 
18.9
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
 
 
 
 
(b) Restructuring and other integration-related charges of $5.6 million








41


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2013
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consumer Healthcare
September 28, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
686.6

 
$
—

 
$
686.6

Cost of sales
472.6

 
6.9

(a)
465.7

Gross profit
214.0

 
6.9

 
220.9

Operating expenses
115.2

 
7.0

(a,b)
108.1

Operating income
$
98.8

 
$
13.9

 
$
112.7

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
31.2
%
 
 
 
32.2
%
Operating expenses
16.8
%
 
 
 
15.7
%
Operating income
14.4
%
 
 
 
16.4
%
 
 
 
Three Months Ended
Consumer Healthcare
December 28, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
695.0

 
$
—

 
$
695.0

Cost of sales
478.5

 
6.9

(a)
471.5

Gross profit
216.6

 
6.9

 
223.5

Operating expenses
113.1

 
4.9

(a,c,d)
108.2

Operating income
$
103.5

 
$
11.7

 
$
115.3

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
31.2
%
 
 
 
32.2
%
Operating expenses
16.3
%
 
 
 
15.6
%
Operating income
14.9
%
 
 
 
16.6
%
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
 
 
 
 
(b) Restructuring charges of $0.7 million
 
(c) Escrow settlement of $2.5 million related to the Sergeant's acquisition
(d) Restructuring charges of $0.5 million


42


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2013
(in millions)
(unaudited)
 
 
 
 
 
 
 
Twelve Months Ended
Consumer Healthcare
December 28, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
2,802.6

 
$
—

 
$
2,802.6

Cost of sales
1,912.8

 
27.4

(a)
1,885.4

Gross profit
889.8

 
27.4

 
917.2

Operating expenses
463.3

 
29.6

(a,b,c)
433.6

Operating income
$
426.6

 
$
56.8

 
$
483.5

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
31.7
%
 
 
 
32.7
%
Operating expenses
16.5
%
 
 
 
15.5
%
Operating income
15.2
%
 
 
 
17.3
%
 
 
 
Three Months Ended
Rx Pharmaceuticals
March 30, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
189.4

 
$
—

 
$
189.4

Cost of sales
92.9

 
13.2

(a,d)
79.7

Gross profit
96.5

 
13.2

 
109.7

Operating expenses
23.1

 
0.1

(a)
23.0

Operating income
$
73.4

 
$
13.3

 
$
86.7

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
51.0
%
 
 
 
57.9
%
Operating expenses
12.2
%
 
 
 
12.2
%
Operating income
38.8
%
 
 
 
45.7
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
(b) Restructuring and other integration-related charges of $6.8 million
(c) Escrow settlement of $2.5 million related to the Sergeant's acquisition
(d) Inventory step-up of $1.9 million
 
 
 
 
 


43


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2013
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Rx Pharmaceuticals
June 29, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
194.7

 
$
—

 
$
194.7

Cost of sales
102.4

 
16.7

(a)
85.7

Gross profit
92.3

 
16.7

 
109.0

Operating expenses
35.1

 
9.1

(a,b)
25.9

Operating income
$
57.2

 
$
25.8

 
$
83.0

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
47.4
%
 
 
 
56.0
%
Operating expenses
18.0
%
 
 
 
13.3
%
Operating income
29.4
%
 
 
 
42.7
%
 
 
 
Three Months Ended
Rx Pharmaceuticals
September 28, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
203.6

 
$
—

 
$
203.6

Cost of sales
91.1

 
16.0

(a)
75.1

Gross profit
112.5

 
16.0

 
128.5

Operating expenses
29.4

 
4.0

(a,c,d)
25.4

Operating income
$
83.1

 
$
20.0

 
$
103.1

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
55.2
%
 
 
 
63.1
%
Operating expenses
14.4
%
 
 
 
12.5
%
Operating income
40.8
%
 
 
 
50.6
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) Write-off of IPR&D of $9.0 million related to the Paddock acquisition
 
(c) Restructuring charges of $1.4 million
 
(d) Litigation settlement of $2.5 million
 





44


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2013
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Rx Pharmaceuticals
December 28, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
246.6

 
$
—

 
$
246.6

Cost of sales
117.8

 
21.4

(a)
96.4

Gross profit
128.8

 
21.4

 
150.2

Operating expenses
28.4

 
1.3

(a,b,c,d)
27.1

Operating income
$
100.4

 
$
22.7

 
$
123.1

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
52.2
%
 
 
 
60.9
%
Operating expenses
11.5
%
 
 
 
11.0
%
Operating income
40.7
%
 
 
 
49.9
%
 
 
 
Twelve Months Ended
Rx Pharmaceuticals
December 28, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
834.3

 
$
—

 
$
834.3

Cost of sales
404.2

 
67.3

(a,e)
336.9

Gross profit
430.1

 
67.3

 
497.4

Operating expenses
116.0

 
14.5

(a,c,f,g,h)
101.4

Operating income
$
314.1

 
$
81.8

 
$
395.9

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
51.6
%
 
 
 
59.6
%
Operating expenses
13.9
%
 
 
 
12.2
%
Operating income
37.6
%
 
 
 
47.5
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) Write-offs of IPR&D of $4.0 million and $2.0 million related to the Paddock and Rosemont acquisitions, respectively
(c) Write-off of contingent consideration of $4.9 million related to the Fera acquisition
(d) Restructuring charges of $0.2 million
(e) Inventory step-up $1.9 million
 
(f) Write-off of R&D of $13.0 million and $2.0 million related to the Paddock and Rosemont acquisitions, respectively
(g) Restructuring charges of $1.6 million
(h) Litigation settlement of $2.5 million


45


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2013
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended (3)
Specialty Sciences
December 28, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
7.4

 
$
—

 
$
7.4

Cost of sales
8.7

 
8.7

(a)
—

Gross profit
(1.3
)
 
8.7

 
7.4

Operating expenses
17.7

 
14.6

(b)
3.1

Operating income
$
(19.0
)
 
$
23.2

 
$
4.3

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
(17.1
)%
 
 
 
100.0
%
Operating expenses
239.1
 %
 
 
 
42.4
%
Operating income
(256.2
)%
 
 
 
57.6
%
 
 
 
Three Months Ended
Other
March 30, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
41.1

 
$
—

 
$
41.1

Cost of sales
20.2

 
0.5

(a)
19.7

Gross profit
20.9

 
0.5

 
21.4

Operating expenses
9.2

 
—

 
9.2

Operating income
$
11.7

 
$
0.5

 
$
12.2

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
50.9
 %
 
 
 
52.1
%
Operating expenses
22.3
 %
 
 
 
22.3
%
Operating income
28.5
 %
 
 
 
29.7
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
(3) Only includes activity from December 18, 2013 to December 28, 2013.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) Restructuring and other integration-related charges related to Elan


46


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2013
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Other
June 29, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
40.9

 
$
—

 
$
40.9

Cost of sales
22.2

 
0.5

(a)
21.7

Gross profit
18.7

 
0.5

 
19.2

Operating expenses
8.7

 
—

 
8.7

Operating income
$
10.0

 
$
0.5

 
$
10.5

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
45.7
%
 
 
 
46.9
%
Operating expenses
21.2
%
 
 
 
21.2
%
Operating income
24.5
%
 
 
 
25.7
%
 
 
 
Three Months Ended
Other
September 28, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
43.2

 
$
—

 
$
43.2

Cost of sales
13.3

 
0.5

(a)
12.8

Gross profit
29.8

 
0.5

 
30.3

Operating expenses
7.4

 
—

 
7.4

Operating income
$
22.4

 
$
0.5

 
$
22.9

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
69.1
%
 
 
 
70.3
%
Operating expenses
17.1
%
 
 
 
17.1
%
Operating income
52.0
%
 
 
 
53.1
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
(a) Acquisition-related amortization expense
 


47


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2013
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Other
December 28, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
30.0

 
$
—

 
$
30.0

Cost of sales
13.5

 
0.5

(a)
12.9

Gross profit
16.5

 
0.5

 
17.1

Operating expenses
8.3

 
—

 
8.3

Operating income
$
8.2

 
$
0.5

 
$
8.7

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
55.2
%
 
 
 
56.9
%
Operating expenses
27.8
%
 
 
 
27.8
%
Operating income
27.4
%
 
 
 
29.1
%
 
 
 
Twelve Months Ended
Other
December 28, 2013
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
155.2

 
$
—

 
$
155.2

Cost of sales
69.2

 
2.0

(a)
67.1

Gross profit
85.9

 
2.0

 
88.0

Operating expenses
33.6

 
—

 
33.6

Operating income
$
52.3

 
$
2.0

 
$
54.3

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
55.3
%
 
 
 
56.7
%
Operating expenses
21.6
%
 
 
 
21.6
%
Operating income
33.7
%
 
 
 
35.0
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 


48


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2012
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consumer Healthcare
March 31, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
585.4

 
$
—

 
$
585.4

Cost of sales
408.1

 
4.4

(a)
403.7

Gross profit
177.3

 
4.4

 
181.7

Operating expenses
95.2

 
12.1

(a,b)
83.1

Operating income
$
82.0

 
$
16.5

 
$
98.7

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
30.3
%
 
 
 
31.0
%
Operating expenses
16.3
%
 
 
 
14.2
%
Operating income
14.0
%
 
 
 
16.9
%
 
 
 
Three Months Ended
Consumer Healthcare
June 30, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
636.4

 
$
—

 
$
636.4

Cost of sales
440.6

 
4.4

(a)
436.2

Gross profit
195.7

 
4.4

 
200.2

Operating expenses
99.5

 
6.7

(a,c)
92.8

Operating income
$
96.3

 
$
11.1

 
$
107.4

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
30.8
%
 
 
 
31.5
%
Operating expenses
15.6
%
 
 
 
14.6
%
Operating income
15.1
%
 
 
 
16.9
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
 
 
 
 
(b) Restructuring charges of $7.1 million
 
 
 
 
(c) Restructuring charges of $1.7 million
 
 
 
 



49


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2012
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Consumer Healthcare
September 29, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
570.4

 
$
—

 
$
570.4

Cost of sales
393.3

 
4.5

(a)
388.8

Gross profit
177.2

 
4.5

 
181.7

Operating expenses
93.6

 
5.5

(a)
88.1

Operating income
$
83.5

 
$
10.0

 
$
93.5

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
31.1
%
 
 
 
31.9
%
Operating expenses
16.4
%
 
 
 
15.4
%
Operating income
14.6
%
 
 
 
16.4
%
 
 
 
Three Months Ended
Consumer Healthcare
December 29, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
679.6

 
$
—

 
$
679.6

Cost of sales
481.3

 
14.3

(a,b)
467.0

Gross profit
198.3

 
14.3

 
212.6

Operating expenses
104.4

 
6.0

(a)
98.4

Operating income
$
93.9

 
$
20.3

 
$
114.2

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
29.2
%
 
 
 
31.3
%
Operating expenses
15.4
%
 
 
 
14.5
%
Operating income
13.8
%
 
 
 
16.8
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
 
 
 
 
(b) Inventory step-up of $7.7 million
 
 
 
 
 


50


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2012
(in millions)
(unaudited)
 
 
 
 
 
 
 
Twelve Months Ended
Consumer Healthcare
December 29, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
2,471.8

 
$
—

 
$
2,471.8

Cost of sales
1,723.3

 
27.6

(a,b)
1,695.7

Gross profit
748.5

 
27.6

 
776.2

Operating expenses
392.7

 
30.3

(a,c)
362.4

Operating income
$
355.7

 
$
57.9

 
$
413.8

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
30.3
%
 
 
 
31.4
%
Operating expenses
15.9
%
 
 
 
14.7
%
Operating income
14.4
%
 
 
 
16.7
%
 
 
 
Three Months Ended
Rx Pharmaceuticals
March 31, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
155.6

 
$
—

 
$
155.6

Cost of sales
72.3

 
8.6

(a)
63.7

Gross profit
83.3

 
8.6

 
91.9

Operating expenses
16.1

 
—

 
16.1

Operating income
$
67.3

 
$
8.6

 
$
75.8

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
53.6
%
 
 
 
59.1
%
Operating expenses
10.3
%
 
 
 
10.3
%
Operating income
43.2
%
 
 
 
48.7
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
 
 
 
 
(a) Acquisition-related amortization expense
 
 
 
 
 
(b) Inventory step-up of $7.7 million
 
 
 
 
 
(c) Restructuring charges of $8.8 million
 
 
 
 


51


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2012
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Rx Pharmaceuticals
June 30, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
157.0

 
$
—

 
$
157.0

Cost of sales
84.5

 
8.5

(a)
76.0

Gross profit
72.5

 
8.5

 
81.0

Operating expenses
20.7

 
0.8

(b)
19.9

Operating income
$
51.8

 
$
9.3

 
$
61.1

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
46.2
%
 
 
 
51.6
%
Operating expenses
13.2
%
 
 
 
12.7
%
Operating income
33.0
%
 
 
 
38.9
%
 
 
 
Three Months Ended
Rx Pharmaceuticals
September 29, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
162.9

 
$
—

 
$
162.9

Cost of sales
76.2

 
8.4

(a)
67.8

Gross profit
86.7

 
8.4

 
95.1

Operating expenses
18.2

 
—

 
18.2

Operating income
$
68.5

 
$
8.4

 
$
76.9

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
53.2
%
 
 
 
58.4
%
Operating expenses
11.2
%
 
 
 
11.2
%
Operating income
42.0
%
 
 
 
47.2
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) Net charges related to acquired R&D and proceeds from sale of IPR&D projects
 


52


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2012
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Rx Pharmaceuticals
December 29, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
162.5

 
$
—

 
$
162.5

Cost of sales
76.5

 
8.5

(a)
68.0

Gross profit
86.0

 
8.5

 
94.5

Operating expenses
22.0

 
1.5

(c)
20.5

Operating income
$
64.0

 
$
10.0

 
$
74.0

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
52.9
%
 
 
 
58.1
%
Operating expenses
13.5
%
 
 
 
12.6
%
Operating income
39.4
%
 
 
 
45.6
%
 
 
 
Twelve Months Ended
Rx Pharmaceuticals
December 29, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
638.0

 
$
—

 
$
638.0

Cost of sales
309.5

 
34.0

(a)
275.5

Gross profit
328.5

 
34.0

 
362.5

Operating expenses
77.0

 
2.3

(b,c)
74.7

Operating income
$
251.6

 
$
36.3

 
$
287.8

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
51.5
%
 
 
 
56.8
%
Operating expenses
12.1
%
 
 
 
11.7
%
Operating income
39.4
%
 
 
 
45.1
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
(a) Acquisition-related amortization expense
 
(b) Net charges related to acquired R&D and proceeds from sale of IPR&D projects
 
(c) Severance costs
 


53


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2012
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Other
March 31, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
37.0

 
$
—

 
$
37.0

Cost of sales
18.3

 
0.5

(a)
17.8

Gross profit
18.7

 
0.5

 
19.2

Operating expenses
8.2

 
—

 
8.2

Operating income
$
10.5

 
$
0.5

 
$
11.0

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
50.5
%
 
 
 
51.9
%
Operating expenses
22.2
%
 
 
 
22.2
%
Operating income
28.3
%
 
 
 
29.6
%
 
 
 
Three Months Ended
Other
June 30, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
38.4

 
$
—

 
$
38.4

Cost of sales
12.8

 
0.5

(a)
12.3

Gross profit
25.7

 
0.5

 
26.2

Operating expenses
8.2

 
—

 
8.2

Operating income
$
17.5

 
$
0.5

 
$
18.0

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
66.8
%
 
 
 
68.1
%
Operating expenses
21.2
%
 
 
 
21.2
%
Operating income
45.6
%
 
 
 
46.8
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
(a) Acquisition-related amortization expense
 


54


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2012
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
Other
September 29, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
36.4

 
$
—

 
$
36.4

Cost of sales
15.1

 
0.5

(a)
14.6

Gross profit
21.3

 
0.5

 
21.8

Operating expenses
8.0

 
—

 
8.0

Operating income
$
13.3

 
$
0.5

 
$
13.8

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
58.7
%
 
 
 
59.9
%
Operating expenses
22.1
%
 
 
 
22.1
%
Operating income
36.6
%
 
 
 
37.8
%
 
 
 
Three Months Ended
Other
December 29, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
40.9

 
$
—

 
$
40.9

Cost of sales
18.0

 
0.5

(a)
17.5

Gross profit
22.9

 
0.5

 
23.4

Operating expenses
9.1

 
—

 
9.1

Operating income
$
13.8

 
$
0.5

 
$
14.3

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
56.0
%
 
 
 
57.2
%
Operating expenses
22.2
%
 
 
 
22.2
%
Operating income
33.8
%
 
 
 
35.0
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
(a) Acquisition-related amortization expense
 


55


Table II continued
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
CALENDAR YEAR 2012
(in millions)
(unaudited)
 
 
 
 
 
 
 
Twelve Months Ended
Other
December 29, 2012
 
GAAP (1)
 
Non-GAAP Adjustments (1)
 
As Adjusted (1)
Net sales
$
152.6

 
$
—

 
$
152.7

Cost of sales
64.2

 
2.0

(a)
62.2

Gross profit
88.6

 
2.0

 
90.6

Operating expenses
33.5

 
—

 
33.5

Operating income
$
55.1

 
$
2.0

 
$
57.0

 
 
 
 
 
 
Selected ratios as a percentage of net sales (2)
 
 
 
 
Gross profit
58.1
%
 
 
 
59.3
%
Operating expenses
22.0
%
 
 
 
21.9
%
Operating income
36.1
%
 
 
 
37.4
%
 
 
 
 
 
 
(1) Amounts may not sum or cross-foot due to rounding.
 
 
(2) Ratios calculated using exact numbers.
 
 
 
 
(a) Acquisition-related amortization expense
 


56