Segment and Geographic Information

12 Months Ended

Dec. 31, 2016

Segments and Geographic Information [Abstract]

Segment and geographic information

SEGMENT AND GEOGRAPHIC INFORMATION

As discussed in Note 1, we changed our reporting segments to better align with our new organizational structure. This structure is consistent with the way our chief operating decision maker makes operating decisions, allocates resources and manages the growth and profitability of the business. Operating segments with similar economic characteristics, including long-term profitability, nature of the products sold and production processes, distribution methods, and classes of customers, are aggregated as reportable segments.

We generated third-party net sales in the following geographic locations⁽¹⁾ during each of the periods presented below (in millions):

	Year Ended		Six Months Ended		Year Ended
	December 31, 2016		December 31, 2015		June 27, 2015		June 28, 2014
			Restated		Restated		Restated
Ireland	$	89.1	$	11.4	$	7.2	$	—
U.S.	3,353.0		1,686.2		3,303.2		3,352.0
Europe	1,493.0		758.2		576.4		219.7
All other countries(2)	345.5		176.4		340.3		342.4
	$	5,280.6	$	2,632.2	$	4,227.1	$	3,914.1

⁽¹⁾We attribute net sales to countries based on sales location.

⁽²⁾Includes net sales generated primarily in Israel, Mexico, Australia, and Canada.

The net book value of property, plant and equipment by location was as follows (in millions):

	December 31, 2016		December 31, 2015		June 27, 2015
Ireland	$	2.7	$	1.3	$	1.4
U.S.	556.6		555.0		558.6
Europe	144.6		157.2		153.8
Israel	114.3		115.7		119.8
All other countries	51.9		57.0		98.8
	$	870.1	$	886.2	$	932.4

Sales to Walmart accounted for 13%, 13%, 16%, and 19% of consolidated sales for the year endedDecember 31, 2016, the six months endedDecember 31, 2015, and for the years endedJune 27, 2015 and June 28, 2014, respectively. Sales to Walmart are reported primarily in our CHCA segment.

Below is a summary of our results by reporting segment (in millions):

	CHCA			CHCI(1)			RX			Specialty Sciences (2)			Other			Unallocated			Total
Year Ended December 31, 2016
Net sales	$	2,507.1		$	1,652.2		$	1,042.8		$	—		$	78.5		$	—		$	5,280.6
Operating income (loss)	$	399.8		$	(2,087.4	)	$	(0.2	)	$	(201.2	)	$	6.1		$	(116.8	)	$	(1,999.7	)
Operating income (loss) %	15.9		%	(126.3		)%	—		%	—		%	7.8		%	—		%	(37.9		)%
Total assets	$	3,351.3		$	4,795.2		$	2,646.4		$	2,775.8		$	301.4		$	—		$	13,870.1
Capital expenditures	$	59.1		$	23.7		$	20.4		$	—		$	3.0		$	—		$	106.2
Property, plant and equip, net	$	528.3		$	167.2		$	129.7		$	0.4		$	44.5		$	—		$	870.1
Depreciation/amortization	$	119.1		$	210.0		$	120.1		$	—		$	7.8		$	—		$	457.0
Tysabri® royalty stream - change in fair value	$	—		$	—		$	—		$	2,608.2		$	—		$	—		$	2,608.2
Six Months Ended December 31, 2015 (restated)
Net sales	$	1,251.5		$	833.0		$	502.6		$	—		$	45.1		$	—		$	2,632.2
Operating income (loss)	$	209.2		$	(148.5	)	$	181.9		$	(6.5	)	$	(19.5	)	$	(149.0	)	$	67.6
Operating income (loss) %	16.7		%	(17.8		)%	36.2		%	—		%	(43.3		)%	—		%	2.6		%
Total assets	$	3,384.8		$	7,083.5		$	2,738.0		$	5,930.2		$	213.1		$	—		$	19,349.6
Capital expenditures	$	38.0		$	26.3		$	12.1		$	—		$	1.4		$	—		$	77.8
Property, plant and equip, net	$	540.9		$	179.5		$	118.5		$	—		$	47.3		$	—		$	886.2
Depreciation/amortization	$	60.9		$	81.9		$	34.3		$	—		$	5.3		$	—		$	182.4
Tysabri® royalty stream - change in fair value	$	—		$	—		$	—		$	(57.3	)	$	—		$	—		$	(57.3	)
Year Ended June 27, 2015 (restated)
Net sales	$	2,478.8		$	704.6		$	936.0		$	—		$	107.7		$	—		$	4,227.1
Operating income (loss)	$	381.9		$	38.2		$	364.7		$	(17.6	)	$	26.8		$	(121.5	)	$	672.5
Operating income (loss) %	15.4		%	5.4		%	39.0		%	—		%	24.9		%	—		%	15.9		%
Total assets	$	3,763.8		$	7,163.0		$	2,373.4		$	6,040.7		$	251.0		$	—		$	19,591.9
Capital expenditures	$	76.8		$	13.1		$	41.0		$	0.5		$	5.6		$	—		$	137.0
Property, plant and equip, net	$	556.8		$	176.8		$	113.0		$	—		$	85.8		$	—		$	932.4
Depreciation/amortization	$	108.4		$	72.5		$	65.7		$	1.5		$	10.6		$	—		$	258.7
Tysabri® royalty stream - change in fair value	$	—		$	—		$	—		$	(78.5	)	$	—		$	—		$	(78.5	)
Year Ended June 28, 2014 (restated)
Net sales	$	2,581.2		$	331.1		$	864.2		$	—		$	137.6		$	—		$	3,914.1
Operating income (loss)	$	402.8		$	17.0		$	341.5		$	(62.5	)	$	46.1		$	(173.5	)	$	571.4
Operating income (loss) %	15.6		%	5.1		%	39.5		%	—		%	33.5		%	—		%	14.6		%
Total assets	$	4,510.2		$	767.0		$	2,189.2		$	6,124.7		$	288.0		$	—		$	13,879.1
Capital expenditures	$	119.4		$	10.2		$	31.6		$	—		$	10.4		$	—		$	171.6
Property, plant and equip, net	$	530.4		$	59.3		$	92.5		$	2.0		$	95.7		$	—		$	779.9
Depreciation/amortization	$	93.2		$	33.4		$	66.5		$	1.6		$	11.4		$	—		$	206.1
Tysabri® royalty stream - change in fair value	$	—		$	—		$	—		$	(26.6	)	$	—		$	—		$	(26.6	)

⁽¹⁾     CHCI includes Omega activity subsequent to March 30, 2015.

⁽²⁾    Specialty Sciences includes activity subsequent to December 18, 2013.

The following is a summary of our net sales by category (in millions):

	Year Ended		Six Months Ended		Year Ended
	December 31, 2016		December 31, 2015		June 27, 2015		June 28, 2014
			Restated		Restated		Restated
CHCA
Cough/Cold/Allergy/Sinus(1)	$	454.6	$	234.6	$	455.6	$	477.6
Analgesics(1)	343.5		173.1		375.7		433.2
Gastrointestinal(1)	335.4		195.8		384.0		398.4
Infant nutritionals	427.0		200.2		383.8		374.8
Smoking cessation	308.5		147.5		284.5		236.8
Vitamins, minerals and dietary supplements(1)	160.4		105.8		183.5		176.9
Animal health	143.7		62.3		157.0		178.0
Other CHCA(1),(2)	334.0		132.2		254.7		305.5
Total CHCA	2,507.1		1,251.5		2,478.8		2,581.2
CHCI
Branded OTC	1,349.2		665.9		368.4		—
Other CHCI(3)	303.0		167.1		336.2		331.1
Total CHCI	1,652.2		833.0		704.6		331.1
Generic prescription drugs	1,042.8		502.6		936.0		864.2
Active pharmaceutical ingredients	78.5		45.1		107.7		137.6
Total net sales	$	5,280.6	$	2,632.2	$	4,227.1	$	3,914.1

⁽¹⁾Includes net sales from our OTC contract manufacturing business.

⁽²⁾  Consists primarily of feminine hygiene, diabetes care, dermatological care, branded OTC, and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the CHCA segment.

⁽³⁾  Consists primarily of liquids licensed product, cough/cold/allergy, analgesics and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the CHCI segment.