XML 49 R25.htm IDEA: XBRL DOCUMENT v3.7.0.1
(Tables)
 9 Months Ended
Oct. 01, 2016
Accounting Policies [Abstract]  
Schedule of Error Corrections

Condensed Consolidated Statement of Operations
(in millions, except per share amounts)
(unaudited)
 
Three Months Ended
 
October 1, 2016
 
 
 
Adjustments
 
 
 
Previously Reported
 
Tysabri®
 
Other
 
Restated
Net sales
$
1,354.9

 
$
(92.4
)
 
$
(0.9
)
 
$
1,261.6

Cost of sales
848.6

 
(72.5
)
 
1.0

 
777.1

Gross profit
506.3

 
(19.9
)
 
(1.9
)
 
484.5

 
 
 
 
 
 
 
 
Operating expenses
 
 
 
 
 
 
 
Distribution
21.6

 
—

 
—

 
21.6

Research and development
50.2

 
—

 
—

 
50.2

Selling
154.6

 
—

 
—

 
154.6

Administration
108.6

 
—

 
(3.2
)
 
105.4

Impairment charges
1,679.9

 
—

 
(65.5
)
(a)
1,614.4

Restructuring
6.6

 
—

 
—

 
6.6

Total operating expenses
2,021.5

 
—

 
(68.7
)
 
1,952.8

 
 
 
 
 
 
 
 
Operating loss
(1,515.2
)
 
(19.9
)
 
66.8

 
(1,468.3
)
 
 
 
 
 
 
 
 
Tysabri® royalty stream - change in fair value
—

 
377.4

 
—

 
377.4

Interest expense, net
54.6

 
—

 
—

 
54.6

Other expense, net
1.0

 
0.2

 
(0.2
)
 
1.0

Loss on extinguishment of debt
0.7

 
—

 
—

 
0.7

Loss before income taxes
(1,571.5
)
 
(397.5
)
 
67.0

 
(1,902.0
)
Income tax (benefit)
(316.3
)
 
(49.7
)
 
54.2

(a)(c)
(311.8
)
Net loss
$
(1,255.2
)
 
$
(347.8
)
 
$
12.8

 
$
(1,590.2
)
 
 
 
 
 
 
 
 
Loss per share
 
 
 
 
 
 
 
Basic
$
(8.76
)
 
$
(2.43
)
 
$
0.09

 
$
(11.10
)
Diluted
$
(8.76
)
 
$
(2.43
)
 
$
0.09

 
$
(11.10
)
 
 
 
 
 
 
 
 
Weighted-average shares outstanding
 
 
 
 
 
 
 
Basic
143.3

 
 
 
 
 
143.3

Diluted
143.3

 
 
 
 
 
143.3


(a)
Adjustments primarily related to certain tax basis intangible assets that existed at the time of the acquisition of Omega on March 30, 2015, which reduced the deferred tax liabilities in acquired intangible assets and increased our valuation allowance resulting in a net change to our deferred taxes. The resulting balance sheet reclassification required a reduction of goodwill, offset by a corresponding reduction to net deferred taxes at the date of the Omega acquisition. The adjustment made at the date of the Omega acquisition also had an impact on previously reported goodwill impairment charges. ("BCH Deferred Tax Matters"). (Income tax expense (benefits): $39.8 million)
(c)
Adjustment related to income tax expense (benefit) for interim period tax accounting required under ASC 740, Accounting for Income Taxes. (Income tax expense (benefit): $14.2 million)


Condensed Consolidated Statement of Operations
(in millions, except per share amounts)
(unaudited)
 
Nine Months Ended
 
October 1, 2016
 
 
 
Adjustments
 
 
 
Previously Reported
 
Tysabri®
 
Other
 
Restated
Net sales
$
4,219.1

 
$
(267.0
)
 
$
(2.8
)
(b)
$
3,949.3

Cost of sales
2,622.7

 
(217.5
)
 
(20.0
)
(b)
2,385.2

Gross profit
1,596.4

 
(49.5
)
 
17.2

 
1,564.1

 
 
 
 
 
 
 
 
Operating expenses
 
 
 
 
 
 
 
Distribution
65.9

 
—

 
—

 
65.9

Research and development
142.5

 
—

 
—

 
142.5

Selling
506.9

 
—

 
—

 
506.9

Administration
316.8

 
—

 
0.4

 
317.2

Impairment charges
2,127.1

 
—

 
(98.3
)
(a)
2,028.8

Restructuring
17.9

 
—

 
—

 
17.9

Total operating expenses
3,177.1

 
—

 
(97.9
)
 
3,079.2

 
 
 
 
 
 
 
 
Operating loss
(1,580.7
)
 
(49.5
)
 
115.1

 
(1,515.1
)
 
 
 
 
 
 
 
 
Tysabri® royalty stream - change in fair value
—

 
1,492.6

 
—

 
1,492.6

Interest expense, net
163.2

 
—

 
—

 
163.2

Other expense, net
34.1

 
0.4

 
(2.1
)
 
32.4

Loss on extinguishment of debt
1.1

 
—

 
—

 
1.1

Loss before income taxes
(1,779.1
)
 
(1,542.5
)
 
117.2

 
(3,204.4
)
Income tax (benefit)
(383.7
)
 
(192.8
)
 
25.8

(a)(b)(c)
(550.7
)
Net loss
$
(1,395.4
)
 
$
(1,349.7
)
 
$
91.4

 
$
(2,653.7
)
 
 
 
 
 
 
 
 
Loss per share
 
 
 
 
 
 
 
Basic
$
(9.74
)
 
$
(9.42
)
 
$
0.63

 
$
(18.53
)
Diluted
$
(9.74
)
 
$
(9.42
)
 
$
0.63

 
$
(18.53
)
 
 
 
 
 
 
 
 
Weighted-average shares outstanding
 
 
 
 
 
 
 
Basic
143.2

 
 
 
 
 
143.2

Diluted
143.2

 
 
 
 
 
143.2


(a)
Adjustments primarily related to the BCH Deferred Tax Matters as described above. (Income tax expense: $13.4 million)
(b)
Adjustments primarily related to certain contracts related to a specific Belgium distributor that were consignment in nature due to an option for the distributor to return the product if it was not sold timely. The characterization of the contracts as consignment impacted the timing of revenue recognition in the Condensed Consolidated Statement of Operations and, due to the impact on factoring arrangements, required a reclassification between accounts receivable and current liabilities for the amounts factored for these contracts.  (“BCH Belgium Distribution Contracts”) (Income tax expense (benefit): $3.5 million)
(c)
Adjustment related to income tax expense (benefit) for interim period tax accounting required under ASC 740, Accounting for Income Taxes. (Income tax expense (benefit): $6.2 million)


Condensed Consolidated Statement of Operations
(in millions, except per share amounts)
(unaudited)
 
Three Months Ended
 
September 26, 2015
 
 
 
Adjustments
 
 
 
Previously Reported
 
Tysabri®
 
Other
 
Restated
Net sales
$
1,344.7

 
$
(83.1
)
 
$
11.5

(b)
$
1,273.1

Cost of sales
795.9

 
(72.5
)
 
14.5

(b)
737.9

Gross profit
548.8

 
(10.6
)
 
(3.0
)
 
535.2

 
 
 
 
 
 
 
 
Operating expenses
 
 
 
 
 
 
 
Distribution
24.9

 
—

 
—

 
24.9

Research and development
41.6

 
—

 
—

 
41.6

Selling
167.9

 
—

 
—

 
167.9

Administration
123.6

 
—

 
(0.3
)
 
123.3

Restructuring
2.2

 
—

 
—

 
2.2

Total operating expenses
360.2

 
—

 
(0.3
)
 
359.9

 
 
 
 
 
 
 
 
Operating income
188.6

 
(10.6
)
 
(2.7
)
 
175.3

 
 
 
 
 
 
 
 
Tysabri® royalty stream - change in fair value
—

 
(173.8
)
 
—

 
(173.8
)
Interest expense, net
43.4

 
—

 
—

 
43.4

Other expense, net
13.0

 
0.7

 
(2.8
)
 
10.9

Loss on extinguishment of debt
—

 
—

 
—

 
—

Income before income taxes
132.2

 
162.5

 
0.1

 
294.8

Income tax expense
19.6

 
20.3

 
(6.0
)
(a)(c)
33.9

Net income
$
112.6

 
$
142.2

 
$
6.1

 
$
260.9

 
 
 
 
 
 
 
 
Income per share
 
 
 
 
 
 
 
Basic
$
0.77

 
$
0.97

 
$
0.04

 
$
1.78

Diluted
$
0.77

 
$
0.97

 
$
0.04

 
$
1.78

 
 
 
 
 
 
 
 
Weighted-average shares outstanding
 
 
 
 
 
 
 
Basic
146.3

 
 
 
 
 
146.3

Diluted
146.9

 
 
 
 
 
146.9


(a)
Adjustments primarily related to the BCH Deferred Tax Matters as described above. (Income tax expense (benefit): ($19.5) million)
(b)
Adjustments primarily related to BCH Belgium Distribution Contracts as described above.
(c)
Adjustment related to income tax expense (benefit) for interim period tax accounting required under ASC 740, Accounting for Income Taxes. (Income tax expense (benefit)): $13.6 million)

Condensed Consolidated Statement of Operations
(in millions, except per share amounts)
(unaudited)
 
Nine Months Ended
 
September 26, 2015
 
 
 
Adjustments
 
 
 
Previously Reported
 
Tysabri®
 
Other
 
Restated
Net sales
$
3,925.4

 
$
(244.6
)
 
$
(25.2
)
(b)
$
3,655.6

Cost of sales
2,369.7

 
(217.5
)
 
(2.2
)
(b)
2,150.0

Gross profit
1,555.7

 
(27.1
)
 
(23.0
)
 
1,505.6

 
 
 
 
 
 
 
 
Operating expenses
 
 
 
 
 
 
 
Distribution
63.3

 
—

 
—

 
63.3

Research and development
139.7

 
—

 
—

 
139.7

Selling
391.6

 
—

 
—

 
391.6

Administration
343.3

 
—

 
(0.2
)
 
343.1

Impairment charges
—

 
—

 
6.8

 
6.8

Restructuring
3.1

 
—

 
—

 
3.1

Total operating expenses
941.0

 
—

 
6.6

 
947.6

 
 
 
 
 
 
 
 
Operating income
614.7

 
(27.1
)
 
(29.6
)
 
558.0

 
 
 
 
 
 
 
 
Tysabri® royalty stream - change in fair value
—

 
(205.4
)
 
—

 
(205.4
)
Interest expense, net
132.7

 
—

 
—

 
132.7

Other expense, net
294.2

 
0.8

 
(10.2
)
 
284.8

Loss on extinguishment of debt
0.9

 
—

 
—

 
0.9

Income before income taxes
186.9

 
177.5

 
(19.4
)
 
345.0

Income tax expense
112.7

 
22.2

 
(6.3
)
(a)(b)(c)
128.6

Net income
$
74.2

 
$
155.3

 
$
(13.1
)
 
$
216.4

 
 
 
 
 
 
 
 
Income per share
 
 
 
 
 
 
 
Basic
$
0.51

 
$
1.08

 
$
(0.09
)
 
$
1.50

Diluted
$
0.51

 
$
1.08

 
$
(0.09
)
 
$
1.50

 
 
 
 
 
 
 
 
Weighted-average shares outstanding
 
 
 
 
 
 
 
Basic
144.4

 
 
 
 
 
144.4

Diluted
145.0

 
 
 
 
 
145.0


(a)
Adjustments primarily related to the BCH Deferred Tax Matters as described above. (Income tax expense (benefit): ($13.0) million)
(b)
Adjustments primarily related to BCH Belgium Distribution Contracts as described above. (Income tax expense (benefit): ($3.3) million)
(c)
Adjustment related to income tax expense (benefit) for interim period tax accounting required under ASC 740, Accounting for Income Taxes. (Income tax expense (benefit): $13.4 million)


Condensed Consolidated Balance Sheet
(in millions)
(unaudited)
 
October 1, 2016
 
 
 
Adjustments
 
 
 
 Previously Reported
 
Tysabri®
 
Other
 
Restated
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
362.7

 
$
—

 
$
—

 
$
362.7

Accounts receivable, net of allowance for doubtful accounts of $5.7 million
1,129.2

 
—

 
(5.1
)
 
1,124.1

Inventories
884.6

 
—

 
—

 
884.6

Prepaid expenses and other current assets
250.6

 
—

 
—

 
250.6

Total current assets
2,627.1

 
—

 
(5.1
)
 
2,622.0

Property, plant and equipment, net
881.3

 
—

 
—

 
881.3

Tysabri® royalty stream - at fair value
—

 
3,550.0

 
—

 
3,550.0

Goodwill and other indefinite-lived intangible assets
5,282.7

 
—

 
(137.1
)
(a)(b)
5,145.6

Other intangible assets, net
8,340.9

 
(4,994.7
)
 
(10.0
)
 
3,336.2

Non-current deferred income taxes
129.3

 
—

 
6.9

(a)(c)
136.2

Other non-current assets
206.3

 
—

 
10.5

 
216.8

Total non-current assets
14,840.5

 
(1,444.7
)
 
(129.7
)
 
13,266.1

Total assets
$
17,467.6

 
$
(1,444.7
)
 
$
(134.8
)
 
$
15,888.1

Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
Accounts payable
$
507.9

 
$
—

 
$
(5.0
)
 
$
502.9

Payroll and related taxes
106.8

 
—

 
—

 
106.8

Accrued customer programs
325.5

 
—

 
(1.2
)
 
324.3

Accrued liabilities
258.7

 
—

 
—

 
258.7

Accrued income taxes
76.2

 
—

 
(21.1
)
(a)(b)(c)
55.1

Current indebtedness
265.0

 
—

 
—

 
265.0

Total current liabilities
1,540.1

 
—

 
(27.3
)
 
1,512.8

Long-term debt, less current portion
5,638.0

 
—

 
—

 
5,638.0

Non-current deferred income taxes
1,169.3

 
(180.6
)
 
(190.7
)
(a)(b)(c)
798.0

Other non-current liabilities
448.9

 
—

 
7.8

 
456.7

Total non-current liabilities
7,256.2

 
(180.6
)
 
(182.9
)
 
6,892.7

Total liabilities
8,796.3

 
(180.6
)
 
(210.2
)
 
8,405.5

Commitments and contingencies - Note 14

 
 
 
 
 

Shareholders’ equity
 
 
 
 
 
 
 
Controlling interest:
 
 
 
 
 
 
 
Preferred shares, $0.0001 par value, 10 million shares authorized
—

 
—

 
—

 
—

Ordinary shares, €0.001 par value, 10 billion shares authorized
8,151.4

 
—

 
(2.8
)
 
8,148.6

Accumulated other comprehensive income
71.5

 
—

 
—

 
71.5

Retained earnings (accumulated deficit)
449.0

 
(1,264.1
)
 
78.2

 
(736.9
)
Total controlling interest
8,671.9

 
(1,264.1
)
 
75.4

 
7,483.2

Noncontrolling interest
(0.6
)
 
—

 
—

 
(0.6
)
Total shareholders’ equity
8,671.3

 
(1,264.1
)
 
75.4

 
7,482.6

Total liabilities and shareholders' equity
$
17,467.6

 
$
(1,444.7
)
 
$
(134.8
)
 
$
15,888.1


(a)
Adjustments primarily related to the BCH Deferred Tax Matters as described above. (Goodwill and other indefinite-lived intangible assets: $231.2 million, Non-current deferred income tax asset: $281.1 million, Non-current deferred income tax liability $83.7 million, and Accrued income taxes: ($20.9 million))
(b)
Adjustments primarily related to BCH Belgium Distribution Contracts as described above. (Goodwill and other indefinite-lived intangible assets: $5.4 million, Non-current deferred income tax liability: $0.1 million, and Accrued income taxes: $($5.5 million))
(c)
Adjustment related to income tax expense (benefit) for interim period tax accounting required under ASC 740, Accounting for Income Taxes. (Accrued income taxes: $6.1 million). The balance of the adjustment to deferred taxes relates to jurisdictional netting.
Condensed Consolidated Balance Sheet
(in millions)
 
December 31, 2015
 
 
 
Adjustments
 
 
 
Previously Reported
 
Tysabri®
 
Other
 
 Restated
Assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
417.8

 
$
—

 
$
—

 
$
417.8

Accounts receivable, net of allowance for doubtful accounts of $4.5 million
1,193.1

 
—

 
(4.1
)
(b)
1,189.0

Inventories
844.4

 
—

 
54.3

(b)
898.7

Prepaid expenses and other current assets
289.1

 
—

 
(3.0
)
 
286.1

Total current assets
2,744.4

 
—

 
47.2

 
2,791.6

Property, plant and equipment, net
886.2

 
—

 
—

 
886.2

Tysabri® royalty stream - at fair value
—

 
5,310.0

 
—

 
5,310.0

Goodwill and other indefinite-lived intangible assets
7,281.2

 
—

 
(212.2
)
(a)(b)
7,069.0

Other intangible assets, net
8,190.5

 
(5,212.2
)
 
(5.2
)
 
2,973.1

Non-current deferred income taxes
54.6

 
—

 
16.8

(a)(c)
71.4

Other non-current assets
237.0

 
—

 
11.3

 
248.3

Total non-current assets
16,649.5

 
97.8

 
(189.3
)
 
16,558.0

Total assets
$
19,393.9

 
$
97.8

 
$
(142.1
)
 
$
19,349.6

Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
Accounts payable
$
554.9

 
$
—

 
$
0.9

(b)
$
555.8

Payroll and related taxes
125.3

 
—

 
—

 
125.3

Accrued customer programs
398.0

 
—

 
(2.0
)
(b)
396.0

Accrued liabilities
308.4

 
—

 
43.5

(b)
351.9

Accrued income taxes
85.2

 
—

 
(22.5
)
(a)
62.7

Current indebtedness
1,018.3

 
—

 
42.2

(b)
1,060.5

Total current liabilities
2,490.1

 
—

 
62.1

 
2,552.2

Long-term debt, less current portion
4,971.6

 
—

 
—

 
4,971.6

Non-current deferred income taxes
1,563.7

 
12.2

 
(203.2
)
(a)(b)(c)
1,372.7

Other non-current liabilities
332.4

 
—

 
13.9

(a)
346.3

Total non-current liabilities
6,867.7

 
12.2

 
(189.3
)
 
6,690.6

Total liabilities
9,357.8

 
12.2

 
(127.2
)
 
9,242.8

Commitments and contingencies - Note 14


 
 
 
 
 


Shareholders’ equity
 
 
 
 
 
 
 
Controlling interest:
 
 
 
 
 
 
 
Preferred shares, $0.0001 par value, 10 million shares authorized
—

 
—

 
—

 
—

Ordinary shares, €0.001 par value, 10 billion shares authorized
8,144.6

 
—

 
(2.0
)
 
8,142.6

Accumulated other comprehensive (loss)
(15.5
)
 
—

 
0.2

(b)
(15.3
)
Retained earnings
1,907.6

 
85.6

 
(13.1
)
 
1,980.1

Total controlling interest
10,036.7

 
85.6

 
(14.9
)
 
10,107.4

Noncontrolling interest
(0.6
)
 
—

 
—

 
(0.6
)
Total shareholders’ equity
10,036.1

 
85.6

 
(14.9
)
 
10,106.8

Total liabilities and shareholders' equity
$
19,393.9

 
$
97.8

 
$
(142.1
)
 
$
19,349.6


(a)
Adjustments primarily related to the BCH Deferred Tax Matters as described above. (Goodwill and other indefinite-lived intangible assets:$(223.3) million, Non-current deferred income tax asset: $272.2 million, and Non-current deferred income tax liability $65.4 million)
(b)
Adjustments primarily related to BCH Belgium Distribution Contracts as described above. (Goodwill and other indefinite-lived intangible assets: $10.2 million and Non-current deferred income taxes: $8.7 million)
(c)
Adjustment related to income tax expense (benefit) for interim period tax accounting required under ASC 740, Accounting for Income Taxes. The balance of the adjustment to deferred taxes relates to jurisdictional netting.




Condensed Consolidated Statement of Cash Flows
(in millions)
(unaudited)
 
Nine Months Ended
 
October 1, 2016
 
 
 
Adjustments
 
 
 
Previously Reported
 
Tysabri®
 
Other
 
Restated
Cash Flows From (For) Operating Activities
 
 
 
 
 
 
 
Net income (loss)
$
(1,395.4
)
 
$
(1,349.7
)
 
$
91.4

 
$
(2,653.7
)
Adjustments to derive cash flows
 
 
 
 
 
 
 
Loss on extinguishment of debt
1.1

 
—

 
—

 
1.1

Restructuring charges
17.9

 
—

 
—

 
17.9

Depreciation and amortization
556.3

 
(217.5
)
 
(0.4
)
 
338.4

Impairment charges
2,127.1

 
—

 
(98.3
)
(a)
2,028.8

Tysabri® royalty stream - change in fair value
—

 
1,492.6

 
—

 
1,492.6

Share-based compensation
16.1

 
—

 
(0.8
)
 
15.3

Amortization of financing fees and debt premium
—

 
—

 
(24.6
)
 
(24.6
)
Deferred income taxes
(507.2
)
 
(192.8
)
 
25.9

(a)(b)
(674.1
)
Other non-cash adjustments
34.5

 
—

 
—

 
34.5

Subtotal
850.4

 
(267.4
)
 
(6.8
)
 
576.2

Increase (decrease) in cash due to:
 
 
 
 
 
 
 
Accounts receivable
113.6

 
9.5

 
(10.1
)
 
113.0

Inventories
(29.9
)
 
—

 
55.0

(b)
25.1

Accounts payable
(51.8
)
 
—

 
(5.9
)
 
(57.7
)
Payroll and related taxes
(40.0
)
 
—

 
—

 
(40.0
)
Accrued customer programs
(74.7
)
 
—

 
1.0

(b)
(73.7
)
Accrued liabilities
(42.8
)
 
—

 
(47.2
)
(b)
(90.0
)
Accrued income taxes
9.7

 
—

 
(4.5
)
(a)(b)(c)
5.2

Other
(31.0
)
 
—

 
21.6

 
(9.4
)
Subtotal
(146.9
)
 
9.5

 
9.9

 
(127.5
)
Net cash from (for) operating activities
703.5

 
(257.9
)
 
3.1

 
448.7

Cash Flows From (For) Investing Activities
 
 
 
 
 
 
 
Proceeds from royalty rights
—

 
257.9

 
1.6

 
259.5

Acquisitions of businesses, net of cash acquired
(432.1
)
 
—

 
(4.7
)
 
(436.8
)
Asset acquisitions
(65.1
)
 
—

 
—

 
(65.1
)
Additions to property, plant and equipment
(84.6
)
 
—

 
—

 
(84.6
)
Proceeds from sale of business
58.5

 
—

 
—

 
58.5

Other investing
(1.0
)
 
—

 
—

 
(1.0
)
Net cash from (for) investing activities
(524.3
)
 
257.9

 
(3.1
)
 
(269.5
)
Cash Flows From (For) Financing Activities
 
 
 
 
 
 
 
Issuances of long-term debt
1,190.3

 
—

 
—

 
1,190.3

Payments on long-term debt
(545.8
)
 
—

 
—

 
(545.8
)
Borrowings (repayments) of revolving credit agreements and other financing, net
(803.6
)
 
—

 
—

 
(803.6
)
Deferred financing fees
(2.8
)
 
—

 
—

 
(2.8
)
Premium on early debt retirement
(0.6
)
 
—

 
—

 
(0.6
)
Issuance of ordinary shares
8.2

 
—

 
—

 
8.2

Cash dividends
(62.4
)
 
—

 
—

 
(62.4
)
Other financing
(17.4
)
 
—

 
—

 
(17.4
)
Net cash from (for) financing activities
(234.1
)
 
—

 
—

 
(234.1
)
Effect of exchange rate changes on cash and cash receipts
(0.2
)
 
—

 
—

 
(0.2
)
Net increase (decrease) in cash and cash equivalents
(55.1
)
 
—

 
—

 
(55.1
)
Cash and cash equivalents, beginning of period
417.8

 
—

 
—

 
417.8

Cash and cash equivalents, end of period
$
362.7

 
$
—

 
$
—

 
$
362.7

(a)
Adjustments primarily related to the BCH Deferred Tax Matters as described above.
(b)
Adjustments primarily related to BCH Belgium Distribution Contracts as described above.
(c)
Adjustment related to income tax expense (benefit) for interim period tax accounting required under ASC 740, Accounting for Income Taxes.
Condensed Consolidated Statement of Cash Flows
(in millions)
(unaudited)
 
Nine Months Ended
 
September 26, 2015
 
 
 
Adjustments
 
 
 
Previously Reported
 
Tysabri®
 
Other
 
Restated
Cash Flows From (For) Operating Activities
 
 
 
 
 
 
 
Net income (loss)
$
74.2

 
$
155.3

 
$
(13.1
)
 
$
216.4

Adjustments to derive cash flows
 
 
 
 
 
 
 
Loss on extinguishment of debt
0.9

 
—

 
—

 
0.9

Restructuring charges
3.1

 
—

 
—

 
3.1

Depreciation and amortization
470.4

 
(217.5
)
 
—

 
252.9

Impairment charges
—

 
—

 
6.8

 
6.8

Tysabri® royalty stream - change in fair value
—

 
(205.4
)
 
—

 
(205.4
)
Share-based compensation
29.7

 
—

 
—

 
29.7

Loss on acquisition-related foreign currency derivatives
300.0

 
—

 
—

 
300.0

Amortization of financing fees and debt premium
—

 
—

 
(8.5
)
 
(8.5
)
Deferred income taxes
7.7

 
22.2

 
(16.8
)
(a)(b)
13.1

Other non-cash adjustments
15.3

 

 
(6.9
)
 
8.4

Subtotal
901.3

 
(245.4
)
 
(38.5
)
 
617.4

Increase (decrease) in cash due to:
 
 
 
 
 
 
 
Accounts receivable
(30.9
)
 
(3.1
)
 
25.6

(b)
(8.4
)
Inventories
(28.6
)
 
—

 
(0.3
)
(b)
(28.9
)
Accounts payable
(6.5
)
 
—

 
(21.6
)
(b)
(28.1
)
Payroll and related taxes
(26.6
)
 
—

 
—

 
(26.6
)
Accrued customer programs
17.7

 
—

 
8.2

(b)
25.9

Accrued liabilities
46.7

 
—

 
(5.6
)
 
41.1

Accrued income taxes
0.3

 
—

 
11.0

(a)
11.3

Other
(6.7
)
 
—

 
20.4

 
13.7

Subtotal
(34.6
)
 
(3.1
)
 
37.7

 
—

Net cash from (for) operating activities
866.7

 
(248.5
)
 
(0.8
)
 
617.4

Cash Flows From (For) Investing Activities
 
 
 
 
 
 
 
Proceeds from royalty rights
—

 
248.5

 
1.8

 
250.3

Acquisitions of businesses, net of cash acquired
(2,499.9
)
 
—

 
—

 
(2,499.9
)
Asset acquisitions
(4.0
)
 
—

 
—

 
(4.0
)
Settlement of acquisition-related foreign currency derivatives
(304.8
)
 
—

 
—

 
(304.8
)
Additions to property, plant and equipment
(127.6
)
 
—

 
—

 
(127.6
)
Other investing
(2.7
)
 
—

 
—

 
(2.7
)
Net cash from (for) investing activities
(2,939.0
)
 
248.5

 
1.8

 
(2,688.7
)
Cash Flows From (For) Financing Activities
 
 
 
 
 
 
 
Payments on long-term debt
(903.3
)
 
—

 
—

 
(903.3
)
Borrowings (repayments) of revolving credit agreements and other financing, net
28.6

 
—

 
(1.0
)
 
27.6

Deferred financing fees
(3.3
)
 
—

 
—

 
(3.3
)
Issuance of ordinary shares
6.2

 
—

 
—

 
6.2

Cash dividends
(54.2
)
 
—

 
—

 
(54.2
)
Other financing
(15.5
)
 
—

 
—

 
(15.5
)
Net cash from (for) financing activities
(941.5
)
 
—

 
(1.0
)
 
(942.5
)
Effect of exchange rate changes on cash and cash receipts
(75.8
)
 
—

 
—

 
(75.8
)
Net increase (decrease) in cash and cash equivalents
(3,089.6
)
 
—

 
—

 
(3,089.6
)
Cash and cash equivalents, beginning of period
3,596.1

 
—

 
—

 
3,596.1

Cash and cash equivalents, end of period
$
506.5

 
$
—

 
$
—

 
$
506.5


(a)
Adjustments primarily related to the BCH Deferred Tax Matters as described above.
(b)
Adjustments primarily related to BCH Belgium Distribution Contracts as described above.
Schedule of New Accounting Pronouncements
Below are recent accounting standard updates that we are still assessing to determine the effect on our consolidated financial statements. We do not believe that any other recently issued accounting standards could have a material effect on our consolidated financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.
Recently Issued Accounting Standards Not Yet Adopted
Standard
 
Description
 
Effective Date
 
Effect on the Financial Statements or Other Significant Matters
Improvements to Employee Share-Based Payment Accounting

 
This guidance is intended to simplify several aspects of the accounting for share-based payment award transactions. It will require all income tax effects of awards to be recorded through the income statement when they vest or settle as opposed to certain amounts being recorded in additional paid-in capital. An entity will also have to elect whether to account for forfeitures as they occur or by estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change (as currently required). The guidance will also increase the amount an employer can withhold to cover income taxes on awards. Early adoption is permitted.
 
January 1, 2017
 
We are currently evaluating the implications of adoption on our consolidated financial statements.
Revenue from Contracts with Customers
 
The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the entity satisfies a performance obligation. This guidance allows for two adoption methods, full retrospective approach or modified retrospective approach. Early adoption is not permitted.
 
January 1, 2018
 
We are currently evaluating the possible adoption methodologies and the implications of adoption on our consolidated financial statements.
Leases
 
This guidance was issued to increase transparency and comparability among organizations by requiring recognition of lease assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. For leases with a term of 12 months or less, lessees are permitted to make an election to not recognize right-of-use assets and lease liabilities. Upon adoption, lessees will apply the new standard as of the beginning of the earliest comparative period presented in the financial statements, however lessees will be able to exclude leases that expire as of the implementation date. Early adoption is permitted.


 
January 1, 2019
 
We are currently evaluating the implications of adoption on our consolidated financial statements and considering whether to early adopt the standard.


Recently Issued Accounting Standards Not Yet Adopted (continued)
Standard
 
Description
 
Effective Date
 
Effect on the Financial Statements or Other Significant Matters
Measurement of Credit Losses on Financial Instruments
 
This guidance changes the impairment model for most financial assets and certain other instruments, replacing the current "incurred loss" approach with an "expected loss" credit impairment model, which will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, and off-balance sheet credit exposures such as letters of credit. Early adoption is permitted.


 
January 1, 2020
 
We are currently evaluating the new standard for potential impacts on our receivables, debt, and other financial instruments and considering whether to early adopt the standard.