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) |
• | Amortization expense related primarily to acquired intangible assets |
• | Change in financial assets |
• | Operating results attributable to held-for-sale businesses |
• | Impairment charges |
• | Restructuring charges |
• | Gain/Loss on divestitures |
• | Unusual litigation |
• | Acquisition charges and contingent consideration adjustments |
• | Milestone revenue related to royalty rights |
• | Entocort® operating results |
• | Non-GAAP tax adjustments |
• | Amortization expense primarily related to acquired intangible assets |
• | Change in financial assets |
• | Acquisition and integration-related charges and contingent consideration adjustments |
• | Impairment charges |
• | Unusual litigation |
• | Gain/Loss on divestitures |
• | Operating results attributable to held-for-sale businesses |
• | Restructuring charges |
• | Entocort® operating results |
• | Belgium distribution sales |
• | API net sales |
• | Foreign currency translation movement |
• | Effect of dilution on weighted average shares outstanding |
• | Non-GAAP tax adjustments |
• | Amortization expense related primarily to acquired intangible assets |
• | Change in financial assets |
• | Operating results attributable to held-for-sale businesses |
• | Impairment charges |
• | Restructuring charges |
• | Gain/Loss on divestitures |
• | Unusual litigation |
• | Acquisition charges and contingent consideration adjustments |
• | Milestone revenue related to royalty rights |
• | Loss on early debt extinguishment |
• | Loss on hedges related to debt tender |
• | Entocort® operating results |
• | Belgium distribution sales |
• | API net sales |
• | Foreign currency translation movement |
• | Non-GAAP tax adjustments |
• | Amortization expense primarily related to acquired intangible assets |
• | Change in financial assets |
• | Acquisition and integration-related charges and contingent consideration adjustments |
• | Impairment charges |
• | Unusual litigation |
• | Gain/Loss on divestitures |
• | Operating results attributable to held-for-sale businesses |
• | Loss on equity method investments |
• | Restructuring charges |
• | Entocort® operating results |
• | Belgium distribution sales |
• | API net sales |
• | Foreign currency translation movement |
• | Effect of dilution on weighted average shares outstanding |
• | Non-GAAP tax adjustments |
• | Amortization expense related primarily to acquired intangible assets |
• | Tax effect of pretax Non-GAAP adjustments |
(d) | Exhibits |
(Registrant) | ||||
PERRIGO COMPANY PLC | ||||
By: | /s/ Ronald L. Winowiecki | |||
Dated: | March 1, 2018 | Ronald L. Winowiecki | ||
Chief Financial Officer | ||||
• | Realized fourth quarter 2017 GAAP ("reported") net sales of $1.3 billion, reported net income of $73 million and reported diluted earnings per share ("EPS") of $0.52 compared to a loss per share of $9.48 last year |
• | Delivered fourth quarter adjusted net income of $180 million and adjusted diluted EPS of $1.28 compared to $1.24 last year, an increase of 3.2% |
• | CHC Americas segment achieved fourth quarter reported net sales of $644 million or growth of 2.5% versus last year on a constant currency basis |
• | CHC International segment delivered fourth quarter reported net sales of $374 million, down 10.8% versus last year; excluding exited European distribution businesses, net sales grew 3.3% versus last year on a constant currency basis |
• | Realized calendar year 2017 reported net sales of $4.9 billion compared to reported net sales of $5.3 billion in the prior year, lower by 6.3%, reported net income of $120 million and reported EPS of $0.84 |
• | Achieved calendar year 2017 adjusted net sales growth of 1.3% compared to the prior year, excluding the year-over-year effect of exited European distribution businesses, the divestiture of the Israel API business and the impact of Entocort® |
• | Delivered calendar year 2017 adjusted net income of $703 million and adjusted diluted EPS of $4.93 |
• | CHC Americas segment achieved calendar year 2017 reported net sales of $2.4 billion compared to $2.5 billion last year, lower by 3.1%; adjusted net sales grew 1.4% on a constant currency basis |
• | CHC International segment delivered calendar year 2017 reported net sales of $1.5 billion, down 9.8% versus last year, with reported operating margin of 0.8%; excluding the year-over-year effect of the exited European distribution businesses, net sales grew 2.6% versus last year on a constant currency basis, with an adjusted operating margin of 15.0% |
• | RX segment realized calendar year 2017 reported operating margin of 31.7%; the segment's extended topical strategy delivered an adjusted operating margin of 41.9% |
• | Calendar year 2017 cash flow from operations was $699 million |
• | The Company expects calendar year 2018 reported diluted EPS to be in the range of $2.24 to $2.64. The Company expects calendar year 2018 adjusted diluted EPS guidance to be in the range of $5.05 to $5.45; see Guidance section below for detail. |
Calendar 2017 | Calendar 2016 | YoY | Constant Currency | |||||||
12/31/2017 | 12/31/2016 | % change | % Change | |||||||
Reported Net Sales | $4,946 | $5,281 | (6.3 | )% | ||||||
Reported Net Income (Loss) | $120 | $(4,013) | NM | |||||||
Reported Diluted Earnings (Loss) per Share | $0.84 | $(28.01) | NM | |||||||
Reported Diluted Shares | 142.6 | 143.3 | (0.5 | )% | ||||||
Adjusted Net Sales(1) | $4,926 | $5,168 | (4.7 | )% | (4.7 | )% | ||||
Adjusted Net Income | $703 | $728 | (3.5 | )% | ||||||
Adjusted Diluted Earnings per Share | $4.93 | $5.07 | (2.8 | )% | ||||||
Adjusted Diluted Shares | N/A | 143.6 | N/A |
(1) | Calendar year 2017 net sales have been adjusted to exclude $21 million of sales attributable primarily to the divested Israel API business. Calendar year 2016 net sales have been adjusted to exclude $113 million of sales attributable primarily to the divested U.S. Vitamins, Minerals, and Supplements ("VMS") business. |
Fourth Quarter Ended | Fourth Quarter Ended | YoY | Constant Currency | |||||||
12/31/2017 | 12/31/2016 | % change | % Change | |||||||
Reported Net Sales | $1,283 | $1,331 | (3.6 | )% | ||||||
Reported Net Income (Loss) | $73 | $(1,359) | NM | |||||||
Reported Diluted Earnings (Loss) per Share | $0.52 | $(9.48) | NM | |||||||
Reported Diluted Shares | 141.2 | 143.4 | (1.5 | )% | ||||||
Adjusted Net Sales(1) | $1,279 | N/A | (3.9 | )% | (5.9 | )% | ||||
Adjusted Net Income | $180 | $178 | 1.5 | % | ||||||
Adjusted Diluted Earnings per Share | $1.28 | $1.24 | 3.2 | % | ||||||
Adjusted Diluted Shares | N/A | 143.6 | N/A |
(1) | Fourth quarter 2017 net sales have been adjusted to exclude $4 million of sales attributable to the divested Israel API business. |
Fourth Quarter Ended | Fourth Quarter Ended | YoY | Constant Currency | ||||||||
12/31/2017 | 12/31/2016 | % change | % Change | ||||||||
Reported Net Sales | $644 | $627 | 2.7 | % | 2.5 | % | |||||
Reported Gross Profit | $220 | $210 | 4.5 | % | |||||||
Reported Gross Margin | 34.1 | % | 33.5 | % | 60 bps | ||||||
Reported Operating Income | $141 | $83 | 69.7 | % | |||||||
Reported Operating Margin | 22.0 | % | 13.3 | % | 870 bps | ||||||
Adjusted Gross Profit | $232 | $223 | 4.1 | % | |||||||
Adjusted Gross Margin | 36.0 | % | 35.5 | % | 50 bps | ||||||
Adjusted Operating Income | $149 | $139 | 6.7 | % | |||||||
Adjusted Operating Margin | 23.1 | % | 22.2 | % | 90 bps |
Fourth Quarter Ended | Fourth Quarter Ended | YoY | Constant Currency | ||||||||
12/31/2017 | 12/31/2016 | % change | % Change | ||||||||
Reported Net Sales | $374 | $420 | (10.8)% | (16.9 | )% | ||||||
Reported Gross Profit | $173 | $151 | 14.0% | ||||||||
Reported Gross Margin | 46.1 | % | 36.1 | % | 1,000 bps | ||||||
Reported Operating Income (Loss) | $4 | $(76) | NM | ||||||||
Reported Operating Margin | 1.0 | % | (18.1 | )% | NM | ||||||
Adjusted Gross Profit | $195 | $176 | 10.7% | ||||||||
Adjusted Gross Margin | 52.0 | % | 41.9 | % | 1,010 | bps | |||||
Adjusted Operating Income | $57 | $36 | 57.5% | ||||||||
Adjusted Operating Margin | 15.3 | % | 8.7 | % | 660 | bps |
Fourth Quarter Ended | Fourth Quarter Ended | YoY | Constant Currency | ||||||||
12/31/2017 | 12/31/2016 | % change | % Change | ||||||||
Reported Net Sales | $261 | $266 | (1.7 | )% | (1.8 | )% | |||||
Reported Gross Profit | $118 | $121 | (2.7 | )% | |||||||
Reported Gross Margin | 45.0 | % | 45.5 | % | (50) bps | ||||||
Reported Operating Income | $68 | $(259) | NM | ||||||||
Reported Operating Margin | 26.1 | % | (97.3 | )% | NM | ||||||
Adjusted Gross Profit | $139 | $149 | (6.7 | )% | |||||||
Adjusted Gross Margin | 53.2 | % | 56.1 | % | (290) bps | ||||||
Adjusted Operating Income | $100 | $115 | (13.4 | )% | |||||||
Adjusted Operating Margin | 38.1 | % | 43.2 | % | (510) bps |
Year Ended | Six Months Ended | Year Ended | |||||||||||||
December 31, 2017 | December 31, 2016 | December 31, 2015 | June 27, 2015 | ||||||||||||
Net sales | $ | 4,946.2 | $ | 5,280.6 | $ | 2,632.2 | $ | 4,227.1 | |||||||
Cost of sales | 2,966.7 | 3,228.8 | 1,553.3 | 2,582.9 | |||||||||||
Gross profit | 1,979.5 | 2,051.8 | 1,078.9 | 1,644.2 | |||||||||||
Operating expenses | |||||||||||||||
Distribution | 87.0 | 88.3 | 47.9 | 67.7 | |||||||||||
Research and development | 167.7 | 184.0 | 88.2 | 187.8 | |||||||||||
Selling | 598.4 | 665.0 | 325.9 | 319.0 | |||||||||||
Administration | 461.1 | 452.2 | 306.8 | 385.3 | |||||||||||
Impairment charges | 47.5 | 2,631.0 | 215.6 | 6.8 | |||||||||||
Restructuring | 61.0 | 31.0 | 26.9 | 5.1 | |||||||||||
Other operating income | (41.4 | ) | — | — | — | ||||||||||
Total operating expenses | 1,381.3 | 4,051.5 | 1,011.3 | 971.7 | |||||||||||
Operating income (loss) | 598.2 | (1,999.7 | ) | 67.6 | 672.5 | ||||||||||
Change in financial assets | 24.9 | 2,608.2 | (57.3 | ) | (78.5 | ) | |||||||||
Interest expense, net | 168.1 | 216.6 | 89.9 | 146.0 | |||||||||||
Other expense (Income), net | (10.1 | ) | 22.7 | 25.2 | 334.2 | ||||||||||
Loss on extinguishment of debt | 135.2 | 1.1 | 0.9 | 10.5 | |||||||||||
Income (loss) before income taxes | 280.1 | (4,848.3 | ) | 8.9 | 260.3 | ||||||||||
Income tax expense (benefit) | 160.5 | (835.5 | ) | (33.6 | ) | 124.2 | |||||||||
Net income (loss) | $ | 119.6 | $ | (4,012.8 | ) | $ | 42.5 | $ | 136.1 | ||||||
Earnings (loss) per share | |||||||||||||||
Basic | $ | 0.84 | $ | (28.01 | ) | $ | 0.29 | $ | 0.97 | ||||||
Diluted | $ | 0.84 | $ | (28.01 | ) | $ | 0.29 | $ | 0.97 | ||||||
Weighted-average shares outstanding | |||||||||||||||
Basic | 142.3 | 143.3 | 145.6 | 139.3 | |||||||||||
Diluted | 142.6 | 143.3 | 146.1 | 139.8 | |||||||||||
Dividends declared per share | $ | 0.64 | $ | 0.58 | $ | 0.25 | $ | 0.46 |
December 31, 2017 | December 31, 2016 | December 31, 2015 | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 678.7 | $ | 622.3 | $ | 417.8 | |||||
Accounts receivable, net of allowance for doubtful accounts of $6.2, $6.3 and $4.5, respectively | 1,130.8 | 1,176.0 | 1,189.0 | ||||||||
Inventories | 806.9 | 795.0 | 898.7 | ||||||||
Prepaid expenses and other current assets | 203.2 | 212.0 | 286.1 | ||||||||
Total current assets | 2,819.6 | 2,805.3 | 2,791.6 | ||||||||
Property, plant and equipment, net | 833.1 | 870.1 | 886.2 | ||||||||
Financial assets | — | 2,350.0 | 5,310.0 | ||||||||
Goodwill and other indefinite-lived intangible assets | 4,265.7 | 4,163.9 | 7,069.0 | ||||||||
Other intangible assets, net | 3,290.5 | 3,396.8 | 2,973.1 | ||||||||
Non-current deferred income taxes | 10.4 | 72.1 | 71.4 | ||||||||
Other non-current assets | 409.5 | 211.9 | 248.3 | ||||||||
Total non-current assets | 8,809.2 | 11,064.8 | 16,558.0 | ||||||||
Total assets | $ | 11,628.8 | $ | 13,870.1 | $ | 19,349.6 | |||||
Liabilities and Shareholders’ Equity | |||||||||||
Accounts payable | $ | 450.2 | $ | 471.7 | $ | 555.8 | |||||
Payroll and related taxes | 148.8 | 115.8 | 125.3 | ||||||||
Accrued customer programs | 419.7 | 380.3 | 396.0 | ||||||||
Accrued liabilities | 230.8 | 263.3 | 351.9 | ||||||||
Accrued income taxes | 116.1 | 32.4 | 62.7 | ||||||||
Current indebtedness | 70.4 | 572.8 | 1,060.5 | ||||||||
Total current liabilities | 1,436.0 | 1,836.3 | 2,552.2 | ||||||||
Long-term debt, less current portion | 3,270.8 | 5,224.5 | 4,971.6 | ||||||||
Non-current deferred income taxes | 321.9 | 389.9 | 1,372.7 | ||||||||
Other non-current liabilities | 429.5 | 461.8 | 346.3 | ||||||||
Total non-current liabilities | 4,022.2 | 6,076.2 | 6,690.6 | ||||||||
Total liabilities | 5,458.2 | 7,912.5 | 9,242.8 | ||||||||
Commitments and contingencies - Note 16 | |||||||||||
Shareholders’ equity | |||||||||||
Controlling interest: | |||||||||||
Preferred shares, $0.0001 par value per share, 10 shares authorized | — | — | — | ||||||||
Ordinary shares, €0.001 par value per share, 10,000 shares authorized | 7,892.9 | 8,135.0 | 8,142.6 | ||||||||
Accumulated other comprehensive income (loss) | 253.1 | (81.8 | ) | (15.3 | ) | ||||||
Retained earnings (accumulated deficit) | (1,975.5 | ) | (2,095.1 | ) | 1,980.1 | ||||||
Total controlling interest | 6,170.5 | 5,958.1 | 10,107.4 | ||||||||
Noncontrolling interest | 0.1 | (0.5 | ) | (0.6 | ) | ||||||
Total shareholders’ equity | 6,170.6 | 5,957.6 | 10,106.8 | ||||||||
Total liabilities and shareholders' equity | $ | 11,628.8 | $ | 13,870.1 | $ | 19,349.6 | |||||
Supplemental Disclosures of Balance Sheet Information | |||||||||||
Preferred shares, issued and outstanding | — | — | — | ||||||||
Ordinary shares, issued and outstanding | 140.8 | 143.4 | 143.1 |
Year Ended | Six Months Ended | Year Ended | |||||||||||||
December 31, 2017 | December 31, 2016 | December 31, 2015 | June 27, 2015 | ||||||||||||
Cash Flows From (For) Operating Activities | |||||||||||||||
Net income (loss) | $ | 119.6 | $ | (4,012.8 | ) | $ | 42.5 | $ | 136.1 | ||||||
Adjustments to derive cash flows | |||||||||||||||
Depreciation and amortization | 444.8 | 457.0 | 182.4 | 258.7 | |||||||||||
Loss on acquisition-related foreign currency derivatives | — | — | — | 326.4 | |||||||||||
Share-based compensation | 43.8 | 23.0 | 22.8 | 31.6 | |||||||||||
Impairment charges | 47.5 | 2,631.0 | 215.6 | 6.8 | |||||||||||
Change in financial assets | 24.9 | 2,608.2 | (57.3 | ) | (78.5 | ) | |||||||||
Loss on extinguishment of debt | 135.2 | 1.1 | 0.9 | 10.5 | |||||||||||
Restructuring charges | 61.0 | 31.0 | 26.9 | 5.1 | |||||||||||
Deferred income taxes | (48.9 | ) | (990.9 | ) | (120.0 | ) | (16.3 | ) | |||||||
Amortization of debt premium | (22.4 | ) | (24.7 | ) | (10.2 | ) | 0.2 | ||||||||
Other non-cash adjustments, net | (2.7 | ) | 33.5 | 18.1 | 10.2 | ||||||||||
Subtotal | 802.8 | 756.4 | 321.7 | 690.8 | |||||||||||
Increase (decrease) in cash due to: | |||||||||||||||
Accounts receivable | 3.2 | (0.6 | ) | 52.5 | (51.1 | ) | |||||||||
Inventories | (16.0 | ) | 100.7 | (29.6 | ) | (11.4 | ) | ||||||||
Accounts payable | (39.6 | ) | (75.7 | ) | (194.1 | ) | 120.5 | ||||||||
Payroll and related taxes | (27.4 | ) | (41.1 | ) | (38.2 | ) | (30.2 | ) | |||||||
Accrued customer programs | 34.6 | (13.9 | ) | 34.4 | 71.3 | ||||||||||
Accrued liabilities | (47.8 | ) | (79.5 | ) | 108.1 | 42.8 | |||||||||
Accrued income taxes | (6.1 | ) | 20.9 | (56.8 | ) | 21.9 | |||||||||
Other, net | (4.8 | ) | (12.3 | ) | 2.9 | 0.6 | |||||||||
Subtotal | (103.9 | ) | (101.5 | ) | (120.8 | ) | 164.4 | ||||||||
Net cash from operating activities | 698.9 | 654.9 | 200.9 | 855.2 | |||||||||||
Cash Flows From (For) Investing Activities | |||||||||||||||
Proceeds from royalty rights | 87.3 | 353.7 | 166.3 | 344.6 | |||||||||||
Acquisitions of businesses, net of cash acquired | (0.4 | ) | (427.4 | ) | (791.6 | ) | (2,177.8 | ) | |||||||
Asset acquisitions | — | (65.1 | ) | — | (4.0 | ) | |||||||||
Settlement of acquisition-related foreign currency derivatives | — | — | (1.3 | ) | (329.9 | ) | |||||||||
Proceeds from sale of securities | — | 4.5 | — | — | |||||||||||
Additions to property, plant and equipment | (88.6 | ) | (106.2 | ) | (77.8 | ) | (137.0 | ) | |||||||
Net proceeds from sale of business and other assets | 154.6 | 69.1 | — | — | |||||||||||
Proceeds from sale of the Tysabri® financial asset | 2,200.0 | — | — | — | |||||||||||
Other investing, net | (14.8 | ) | (3.6 | ) | (3.7 | ) | 1.8 | ||||||||
Net cash from (for) investing activities | 2,338.1 | (175.0 | ) | (708.1 | ) | (2,302.3 | ) | ||||||||
Cash Flows From (For) Financing Activities | |||||||||||||||
Borrowings (repayments) of revolving credit agreements and other financing, net | 6.8 | (802.5 | ) | 718.0 | (54.0 | ) | |||||||||
Issuances of long-term debt | — | 1,190.3 | — | 2,504.3 | |||||||||||
Payments on long-term debt | (2,611.0 | ) | (559.2 | ) | (28.3 | ) | (1,823.5 | ) | |||||||
Premium on early debt retirement | (116.1 | ) | (0.6 | ) | — | — | |||||||||
Deferred financing fees | (4.8 | ) | (2.8 | ) | (0.3 | ) | (28.1 | ) | |||||||
Issuance of ordinary shares | 0.7 | 8.3 | 4.9 | 1,043.5 | |||||||||||
Equity issuance costs | — | (10.3 | ) | — | (35.7 | ) | |||||||||
Repurchase of ordinary shares | (191.5 | ) | — | (500.0 | ) | — | |||||||||
Cash dividends | (91.1 | ) | (83.2 | ) | (36.3 | ) | (64.8 | ) | |||||||
Other financing, net | 2.3 | (8.7 | ) | (8.4 | ) | (19.3 | ) | ||||||||
Net cash from (for) financing activities | (3,004.7 | ) | (268.7 | ) | 149.6 | 1,522.4 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 24.1 | (6.7 | ) | (10.2 | ) | (89.2 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | 56.4 | 204.5 | (367.8 | ) | (13.9 | ) | |||||||||
Cash and cash equivalents, beginning of period | 622.3 | 417.8 | 785.6 | 799.5 | |||||||||||
Cash and cash equivalents, end of period | $ | 678.7 | $ | 622.3 | $ | 417.8 | $ | 785.6 |
TABLE I | |||||||||
PERRIGO COMPANY PLC | |||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||
SELECTED CONSOLIDATED INFORMATION | |||||||||
(in millions, except per share amounts) | |||||||||
(unaudited) | |||||||||
Three Months Ended December 31, 2017 | |||||||||
Consolidated | Net Sales | Net Income | Diluted Earnings per Share | ||||||
Reported | $ | 1,283.0 | $ | 73.1 | $ | 0.52 | |||
Adjustments: | |||||||||
Amortization expense related primarily to acquired intangible assets | $ | — | $ | 90.1 | $ | 0.64 | |||
Restructuring charges | — | 6.3 | 0.04 | ||||||
Change in financial assets | — | 0.7 | — | ||||||
Impairment charges | — | 0.1 | — | ||||||
Acquisition charges and contingent consideration adjustments | — | (0.8 | ) | (0.01 | ) | ||||
Gain/Loss on divestitures | — | (0.3 | ) | — | |||||
Unusual litigation | — | (0.2 | ) | — | |||||
Milestone revenue related to royalty rights | — | (10.0 | ) | (0.07 | ) | ||||
Operating results attributable to held-for-sale business* | (4.1 | ) | (0.7 | ) | — | ||||
Non-GAAP tax adjustments** | — | 21.9 | 0.16 | ||||||
Adjusted | $ | 1,278.9 | $ | 180.2 | $ | 1.28 | |||
Diluted weighted average shares outstanding | |||||||||
Reported | 141.2 | ||||||||
*Held-for-sale business includes the Israel API business. | |||||||||
**The non-GAAP tax adjustments include the following: (1) $15.7 million effect on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740; (2) $(10.0) million of tax effect related to audit settlements and other discrete items; (3) $12.5 million net impact related to valuation allowances on deferred tax assets commensurate with non-GAAP pre-tax measures; (4) $6.8 million of tax effects of pretax non-GAAP adjustments, including the sale of assets, that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; and (5) $(3.1) million of tax adjustments related to tax reform. |
TABLE I (CONTINUED) | |||||||||
PERRIGO COMPANY PLC | |||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||
SELECTED CONSOLIDATED INFORMATION | |||||||||
(in millions, except per share amounts) | |||||||||
(unaudited) | |||||||||
Three Months Ended December 31, 2016 | |||||||||
Consolidated | Net Sales | Net Income (Loss) | Diluted Earnings (Loss) per Share | ||||||
Reported | $ | 1,331.2 | $ | (1,359.1 | ) | $ | (9.48 | ) | |
Adjustments: | |||||||||
Impairment charges | $ | 600.5 | $ | 4.18 | |||||
Change in financial assets | 1,115.6 | 7.78 | |||||||
Amortization expense primarily related to acquired intangible assets | 94.9 | 0.67 | |||||||
Unusual litigation | 18.4 | 0.13 | |||||||
Gain/Loss on divestitures | (7.8 | ) | (0.05 | ) | |||||
Restructuring charges | 13.1 | 0.09 | |||||||
Acquisition charges and contingent consideration adjustments | 3.3 | 0.02 | |||||||
Operating results attributable to held-for-sale businesses* | 11.5 | 0.08 | |||||||
Non-GAAP tax adjustments*** | (312.9 | ) | (2.18 | ) | |||||
Adjusted | $ | 177.5 | $ | 1.24 | |||||
Diluted weighted average shares outstanding | |||||||||
Reported | 143.4 | ||||||||
Effect of dilution as reported amount was a loss, while adjusted amount was income** | 0.2 | ||||||||
Adjusted | 143.6 | ||||||||
For Comparative Purposes**** | Net Sales | ||||||||
Reported | $ | 1,331.2 | |||||||
Operating results attributable to held-for-sale businesses | (19.0 | ) | |||||||
Adjusted | $ | 1,312.2 | |||||||
*Held-for-sale businesses include the European sports brand and India API business. | |||||||||
**In the period of a net loss, diluted shares outstanding equal basic shares outstanding. | |||||||||
***The non-GAAP tax adjustments include the following: (1) $(187.1) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; (2) a $20.6 million effect on non-GAAP income taxes related to the interim tax accounting requirements within ASC 740, Income Taxes; (3) discrete income tax adjustments of $(26.9) million related to jurisdictional tax rate changes in France & Italy; (4) $102.6 million net impact of valuation allowances on deferred tax assets commensurate with non-GAAP pre-tax measures; and (5) $(222.1) million valuation allowance release due to the divestiture of the Tysabri® financial asset. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income. | |||||||||
****2016 net sales adjustment made for 2017 adjusted net sales comparison purposes only and does not change any other prior year since the API business was not held-for-sale in 2016. |
TABLE I (CONTINUED) | |||||||||
PERRIGO COMPANY PLC | |||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||
SELECTED CONSOLIDATED INFORMATION | |||||||||
(in millions, except per share amounts) | |||||||||
(unaudited) | |||||||||
Twelve Months Ended December 31, 2017 | |||||||||
Consolidated | Net Sales | Net Income | Diluted Earnings per Share | ||||||
Reported | $ | 4,946.2 | $ | 119.6 | $ | 0.84 | |||
Adjustments: | |||||||||
Amortization expense related primarily to acquired intangible assets | $ | — | $ | 355.5 | $ | 2.49 | |||
Loss on early debt extinguishment | — | 135.2 | 0.95 | ||||||
Restructuring charges | — | 61.0 | 0.43 | ||||||
Impairment charges | — | 47.5 | 0.33 | ||||||
Change in financial assets | — | 24.9 | 0.17 | ||||||
Loss on hedges related to debt tender | — | 5.9 | 0.04 | ||||||
Operating results attributable to held-for-sale business* | (20.7 | ) | (3.1 | ) | (0.02 | ) | |||
Acquisition charges and contingent consideration adjustments | — | (18.9 | ) | (0.13 | ) | ||||
Unusual litigation | — | (9.0 | ) | (0.06 | ) | ||||
Gain/Loss on divestitures | — | (24.8 | ) | (0.17 | ) | ||||
Milestone revenue related to royalty rights | — | (10.0 | ) | (0.07 | ) | ||||
Non-GAAP tax adjustments** | — | 18.9 | 0.13 | ||||||
Adjusted | $ | 4,925.5 | $ | 702.7 | $ | 4.93 | |||
Diluted weighted average shares outstanding | |||||||||
Reported | 142.6 | ||||||||
For Comparative Purposes*** | Net Sales | ||||||||
Adjusted | $ | 4,925.5 | |||||||
Operating results attributable to held-for-sale businesses Q1 and Q2 | (34.9 | ) | |||||||
Adjusted | $ | 4,890.6 | |||||||
*Held-for-sale business includes the India and Israel API businesses. | |||||||||
**The non-GAAP tax adjustments include the following: (1) $2.8 million of tax effect related to audit settlements and other discrete items; (2) $97.2 million net impact related to valuation allowances on deferred tax assets commensurate with non-GAAP pre-tax measures; (3) $(78.0) million of tax effects of pretax non-GAAP adjustments, including the sale of assets, that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; and (4) $(3.1) million of tax adjustments related to tax reform. | |||||||||
***YTD 2017 adjusted net sales adjustment made for Q1 and Q2 2017 made for YTD 2017 adjusted net sales are for comparison purposes only and does not change any other prior year since the API business was not held-for-sale during Q1 and Q2 of 2017. |
TABLE I (CONTINUED) | |||||||||
PERRIGO COMPANY PLC | |||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||
SELECTED CONSOLIDATED INFORMATION | |||||||||
(in millions, except per share amounts) | |||||||||
(unaudited) | |||||||||
Twelve Months Ended December 31, 2016 | |||||||||
Consolidated | Net Sales | Net Income (Loss) | Diluted Earnings (Loss) per Share | ||||||
Reported | $ | 5,280.6 | $ | (4,012.8 | ) | $ | (28.01 | ) | |
Adjustments: | |||||||||
Amortization expense primarily related to acquired intangible assets | $ | — | $ | 363.9 | $ | 2.59 | |||
Acquisition charges and contingent consideration adjustments | — | 25.2 | 0.18 | ||||||
Operating results attributable to held-for-sale businesses* | (112.8 | ) | 15.4 | 0.11 | |||||
Impairment charges | — | 2,653.4 | 18.48 | ||||||
Unusual litigation | — | 18.4 | 0.13 | ||||||
Losses on equity method investments | — | 4.2 | 0.03 | ||||||
Restructuring charges | — | 31.0 | 0.22 | ||||||
Gain/Loss on divestitures | — | (7.7 | ) | (0.05 | ) | ||||
Change in financial assets | — | 2,608.2 | 18.16 | ||||||
Non-GAAP tax adjustments*** | — | (971.2 | ) | (6.77 | ) | ||||
Adjusted | $ | 5,167.8 | $ | 728.0 | $ | 5.07 | |||
Diluted weighted average shares outstanding | |||||||||
Reported | 143.3 | ||||||||
Effect of dilution as reported amount was a loss, while adjusted amount was income** | 0.3 | ||||||||
Adjusted | 143.6 | ||||||||
For Comparative Purposes**** | Net Sales | ||||||||
Adjusted | $ | 5,167.8 | |||||||
Operating results attributable to held-for-sale businesses | (76.1 | ) | |||||||
Adjusted | $ | 5,091.7 | |||||||
*Held-for-sale businesses include the U.S. VMS business, European sports brand, and India API business. | |||||||||
**In the period of a net loss, diluted shares outstanding equal basic shares outstanding. | |||||||||
*** The non-GAAP tax adjustment includes the following: (1) $(802.5) million of tax effects of pretax non-GAAP adjustments that are calculated based upon the specific rate of the applicable jurisdiction of the pretax item; (2) discrete income tax adjustments of $(49.3) million related to jurisdictional tax rate changes in Italy, UK, Germany & France; (3) $102.7 million net impact of valuation allowances on deferred tax assets commensurate with non-GAAP pre-tax measures; and (4) $(222.1) million valuation allowance release due to the divestiture of the Tysabri® financial asset. The GAAP tax benefit recorded in the current quarter related to these items has been excluded from non-GAAP net income. | |||||||||
****2016 net sales adjustment made for 2017 adjusted net sales comparison purposes only and does not change any other prior year since the API business was not held-for-sale in 2016. |
TABLE II | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||
Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income | Net Sales | Gross Profit | Operating Income | |||||||||||||
Reported | $ | 643.5 | $ | 219.5 | $ | 141.4 | $ | 626.8 | $ | 210.0 | $ | 83.3 | |||||||
As a % of reported net sales | 34.1 | % | 22.0 | % | 33.5 | % | 13.3 | % | |||||||||||
Adjustments: | |||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | 12.1 | $ | 16.9 | $ | 12.6 | $ | 17.7 | |||||||||||
Unusual litigation | — | (10.2 | ) | — | 10.2 | ||||||||||||||
Impairment charges | — | — | — | 27.1 | |||||||||||||||
Restructuring charges | — | 0.2 | — | (0.1 | ) | ||||||||||||||
Acquisition charges and contingent consideration adjustments | — | 0.5 | — | 1.2 | |||||||||||||||
Adjusted | $ | 231.6 | $ | 148.8 | $ | 222.6 | $ | 139.4 | |||||||||||
As a % of reported net sales | 36.0 | % | 23.1 | % | 35.5 | % | 22.2 | % | |||||||||||
TABLE II (CONTINUED) | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||
Consumer Healthcare International | Net Sales | Gross Profit | Operating Income | Net Sales | Gross Profit | Operating Income (Loss) | |||||||||||||
Reported | $ | 374.1 | $ | 172.5 | $ | 3.7 | $ | 419.5 | $ | 151.3 | $ | (76.1 | ) | ||||||
As a % of reported net sales | 46.1 | % | 1.0 | % | 36.1 | % | (18.1 | )% | |||||||||||
Adjustments: | |||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | 22.0 | $ | 51.8 | $ | 20.8 | $ | 48.4 | |||||||||||
Impairment charges | — | — | — | 34.1 | |||||||||||||||
Unusual litigation | — | — | — | 8.2 | |||||||||||||||
Operating results attributable to held-for-sale business* | — | — | 3.6 | 10.3 | |||||||||||||||
Restructuring charges | — | 3.8 | — | 10.5 | |||||||||||||||
Acquisition charges and contingent consideration adjustments | — | (2.0 | ) | — | 1.0 | ||||||||||||||
Adjusted | $ | 194.5 | $ | 57.3 | $ | 175.7 | $ | 36.4 | |||||||||||
As a % of reported net sales | 52.0 | % | 15.3 | % | 41.9 | % | 8.7 | % | |||||||||||
*Held-for-sale business includes the European sports brand. |
TABLE II (CONTINUED) | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||
Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income | Net Sales | Gross Profit | Operating Income (Loss) | |||||||||||||
Reported | $ | 261.3 | $ | 117.6 | $ | 68.1 | $ | 265.9 | $ | 121.0 | $ | (258.5 | ) | ||||||
As a % of reported net sales | 45.0 | % | 26.1 | % | 45.5 | % | (97.3 | )% | |||||||||||
Adjustments: | |||||||||||||||||||
Amortization expense related primarily to acquired intangible assets | $ | 21.4 | $ | 21.0 | $ | 28.0 | $ | 28.1 | |||||||||||
Unusual litigation | — | 10.0 | — | — | |||||||||||||||
Gain on divestitures | — | (0.3 | ) | — | — | ||||||||||||||
Restructuring charges | — | (0.1 | ) | — | 2.1 | ||||||||||||||
Impairment charges | — | 0.1 | — | 342.4 | |||||||||||||||
Acquisition charges and contingent consideration adjustments | — | 0.7 | — | 0.9 | |||||||||||||||
Adjusted | $ | 139.0 | $ | 99.5 | $ | 149.0 | $ | 115.0 | |||||||||||
As a % of reported net sales | 53.2 | % | 38.1 | % | 56.1 | % | 43.2 | % |
TABLE II (CONTINUED) | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||
Consumer Healthcare Americas | Net Sales | Gross Profit | Operating Income | Net Sales | Gross Profit | Operating Income | |||||||||||||
Reported | $ | 2,429.9 | $ | 817.8 | $ | 445.0 | $ | 2,507.1 | $ | 825.2 | $ | 399.8 | |||||||
As a % of reported net sales | 33.7 | % | 18.3 | % | 32.9 | % | 15.9 | % | |||||||||||
Adjustments: | |||||||||||||||||||
Amortization expense primarily related to acquired intangible assets | $ | 48.8 | $ | 68.0 | $ | — | $ | 50.3 | $ | 71.0 | |||||||||
Unusual litigation | — | (10.2 | ) | — | — | 10.2 | |||||||||||||
Impairment charges | — | 4.5 | — | — | 37.0 | ||||||||||||||
Operating results attributable to held-for-sale business* | — | — | (110.2 | ) | (17.6 | ) | (5.7 | ) | |||||||||||
Restructuring charges | — | 27.4 | — | — | 5.6 | ||||||||||||||
Acquisition charges and contingent consideration adjustments | — | (2.4 | ) | — | 4.7 | 6.3 | |||||||||||||
Adjusted | $ | 866.6 | $ | 532.3 | $ | 2,396.9 | $ | 862.6 | $ | 524.2 | |||||||||
As a % of reported net sales (2017) / As a % of adjusted net sales (2016) | 35.7 | % | 21.9 | % | 36.0 | % | 21.9 | % | |||||||||||
*Held-for-sale business includes the U.S. VMS business. |
TABLE II (CONTINUED) | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||
Consumer Healthcare International | Net Sales | Gross Profit | Operating Income | Net Sales | Gross Profit | Operating Income (Loss) | |||||||||||||
Reported | $ | 1,491.0 | $ | 682.0 | $ | 12.5 | $ | 1,652.2 | $ | 693.4 | $ | (2,087.4 | ) | ||||||
As a % of reported net sales | 45.7 | % | 0.8 | % | 42.0 | % | (126.3 | )% | |||||||||||
Adjustments: | |||||||||||||||||||
Amortization expense primarily related to acquired intangible assets | $ | 84.7 | $ | 199.2 | $ | — | $ | 68.1 | $ | 184.2 | |||||||||
Unusual litigation | — | (8.8 | ) | — | — | 8.2 | |||||||||||||
Impairment charges | — | 4.8 | — | — | 2,042.4 | ||||||||||||||
Restructuring charges | — | 17.1 | — | — | 20.9 | ||||||||||||||
Operating results attributable to held-for-sale business* | 0.5 | 0.5 | (0.2 | ) | 4.3 | 18.0 | |||||||||||||
Acquisition charges and contingent consideration adjustments | — | (1.5 | ) | — | — | 1.9 | |||||||||||||
Adjusted | $ | 767.2 | $ | 223.8 | $ | 1,652.0 | $ | 765.8 | $ | 188.2 | |||||||||
As a % of reported net sales (2017) / As a % of adjusted net sales (2016) | 51.5 | % | 15.0 | % | 46.4 | % | 11.4 | % | |||||||||||
* Held-for-sale business includes European Sports Brand. |
TABLE II (CONTINUED) | |||||||||||||||||||
PERRIGO COMPANY PLC | |||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
SELECTED SEGMENT INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
Twelve Months Ended | Twelve Months Ended | ||||||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||
Prescription Pharmaceuticals | Net Sales | Gross Profit | Operating Income | Net Sales | Gross Profit | Operating Income (Loss) | |||||||||||||
Reported | $ | 969.7 | $ | 449.7 | $ | 307.6 | $ | 1,042.8 | $ | 501.1 | $ | (0.2 | ) | ||||||
As a % of reported net sales | 46.4 | % | 31.7 | % | 48.1 | % | — | % | |||||||||||
Adjustments: | |||||||||||||||||||
Amortization expense primarily related to acquired intangible assets | $ | 86.7 | $ | 86.7 | $ | 106.4 | $ | 106.7 | |||||||||||
Unusual litigation | — | 10.0 | — | — | |||||||||||||||
Gain on divestitures | — | (23.3 | ) | — | — | ||||||||||||||
Restructuring charges | — | 5.8 | — | 2.1 | |||||||||||||||
Impairment charges | — | 34.9 | — | 342.4 | |||||||||||||||
Acquisition charges and contingent consideration adjustments | (0.1 | ) | (15.0 | ) | — | 5.9 | |||||||||||||
Adjusted | $ | 536.3 | $ | 406.7 | $ | 607.5 | $ | 456.9 | |||||||||||
As a % of reported net sales | 55.3 | % | 41.9 | % | 58.3 | % | 43.8 | % | |||||||||||
TABLE III | |||||||||||||
PERRIGO COMPANY PLC | |||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||
CONSTANT CURRENCY | |||||||||||||
(in millions) | |||||||||||||
(unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
December 31, 2017 | December 31, 2016 | Total Change | FX Change | Constant Currency Change | |||||||||
Net sales | |||||||||||||
Consolidated* | $ | 1,278.9 | $ | 1,331.2 | (3.9)% | (2.0)% | (5.9)% | ||||||
CHCA | 643.5 | 626.8 | 2.7% | (0.2)% | 2.5% | ||||||||
CHCI | 374.1 | 419.5 | (10.8)% | (6.1)% | (16.9)% | ||||||||
RX | 261.3 | 265.9 | (1.7)% | (0.1)% | (1.8)% | ||||||||
CHCI | $ | 374.1 | $ | 419.5 | |||||||||
Less: Belgium distribution net sales | — | (81.8 | ) | ||||||||||
$ | 374.1 | $ | 337.7 | 10.8% | (7.5)% | 3.3% | |||||||
Twelve Months Ended | |||||||||||||
December 31, 2017 | December 31, 2016 | Total Change | FX Change | Constant Currency Change | |||||||||
Consolidated** | $ | 4,925.5 | $ | 5,167.7 | (4.7)% | —% | (4.7)% | ||||||
CHCI*** | $ | 1,491.0 | $ | 1,652.0 | |||||||||
Less: Belgium distribution net sales | (10.6 | ) | (210.9 | ) | |||||||||
$ | 1,480.4 | $ | 1,441.1 | 2.7% | (0.1)% | 2.6% | |||||||
CHCA*** | $ | 2,429.9 | $ | 2,396.9 | 1.4% | —% | 1.4% | ||||||
*2017 net sales are adjusted to exclude sales attributable to divested businesses. See Tables I and II for non-GAAP reconciliations. | |||||||||||||
**2017 and 2016 net sales are adjusted to exclude sales attributable to divested businesses. See Tables I and II for non-GAAP reconciliations. | |||||||||||||
***2016 net sales are adjusted to exclude sales attributable to divested businesses. See Tables I and II for non-GAAP reconciliations. |
TABLE IV | ||||||||
PERRIGO COMPANY PLC | ||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||
2018 CONSOLIDATED GUIDANCE | ||||||||
(unaudited) | ||||||||
Full Year | ||||||||
2018 EPS Guidance(1) | ||||||||
Reported | $2.24 - $2.64 | |||||||
Amortization expense related primarily to acquired intangible assets | 2.45 | |||||||
Tax effect of non-GAAP adjustments | 0.36 | |||||||
Adjusted | $5.05 - $5.45 | |||||||
(1) Guidance excludes any impact related to Tysabri® | ||||||||
Consolidated Operating Income | ||||||||
Reported | Approx. $682 - $742 million | |||||||
Amortization expense related primarily to acquired intangible assets | 348 | |||||||
Adjusted | Approx. $1,030 - $1,090 million | |||||||
Effective Tax Rate | Tax expense | Pre-tax income | Effective Tax Rate | |||||
Reported | $ | 145 | $ | 605 | Approx. 24.0% | |||
Non-GAAP adjustments | 50 | 348 | ||||||
Adjusted | $ | 195 | $ | 953 | Approx. 20.5% | |||
TABLE V | |||
PERRIGO COMPANY PLC | |||
RECONCILIATION OF NON-GAAP MEASURES | |||
(in millions) | |||
(unaudited) | |||
QTD Consolidated adjusted net sales excluding Belgium distribution net sales, Entocort® net sales, API net sales, and Fx | |||
Q4 2017 consolidated adjusted net sales | $ | 1,278.9 | |
Q4 2016 consolidated reported net sales | $ | 1,331.2 | |
Less: Fx | 27.2 | ||
Less: Belgium distribution net sales | (81.8 | ) | |
Less: Entocort® net sales | (5.2 | ) | |
Less: API net sales | (19.0 | ) | |
Q3 2016 consolidated adjusted net sales excluding Belgium distribution net sales, Entocort® net sales, API net sales and Fx | $ | 1,252.4 | |
Total change | 2.1 | % | |
YTD Consolidated adjusted net sales excluding Belgium distribution net sales, Entocort® net sales, and API net sales | |||
YTD 2017 consolidated adjusted net sales | $ | 4,925.5 | |
YTD 2016 consolidated adjusted net sales | $ | 5,167.8 | |
Less: Belgium distribution net sales | (200.3 | ) | |
Less: Entocort® net sales | (67.2 | ) | |
Less: API net sales | (41.2 | ) | |
YTD 2016 consolidated adjusted net sales excluding Belgium distribution net sales, Entocort® net sales and API net sales | $ | 4,859.1 | |
Total change | 1.3 | % | |
TABLE V (CONTINUED) | |||||||
PERRIGO COMPANY PLC | |||||||
RECONCILIATION OF NON-GAAP MEASURES | |||||||
(in millions) | |||||||
(unaudited) | |||||||
Three Months Ended | |||||||
December 31, 2017 | December 31, 2016 | ||||||
RX reported net sales | $ | 261.3 | $ | 265.9 | |||
Less: Entocort® net sales | (6.9 | ) | (12.1 | ) | |||
RX reported net sales excluding Entocort® net sales | $ | 254.4 | $ | 253.8 | |||
RX net sales growth excluding Entocort® net sales | 0.2 | % | |||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, 2017 | December 31, 2017 | ||||||
Operating cash flow | $ | 216.9 | $ | 698.9 | |||
Less: Tax payment | — | 74.2 | |||||
Less: Restructuring payments | 11.2 | 59.6 | |||||
$ | 228.1 | $ | 832.7 | ||||
Adjusted net income | $ | 180.2 | $ | 702.7 | |||
Cash conversion ratio | 127 | % | 119 | % |
TABLE VI | ||||||||||
PERRIGO COMPANY PLC | ||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||
SELECTED CONSOLIDATED AND SEGMENT INFORMATION | ||||||||||
(in millions, except per share amounts) | ||||||||||
(unaudited) | ||||||||||
Three Months Ended | ||||||||||
December 31, 2017 | December 31, 2016 | Total Change | ||||||||
Consolidated adjusted net sales | $ | 1,278.9 | $ | 1,331.2 | (3.9)% | |||||
Consolidated adjusted net income | 180.2 | 177.5 | 1.5% | |||||||
Consolidated adjusted EPS | 1.28 | 1.24 | 3.2% | |||||||
Consolidated adjusted diluted shares | N/A | 143.6 | N/A | |||||||
Adjusted operating income | ||||||||||
CHCA | $ | 148.8 | $ | 139.4 | 6.7% | |||||
CHCI | 57.3 | 36.4 | 57.5% | |||||||
RX | 99.5 | 115.0 | (13.4)% | |||||||
Adjusted operating margin | ||||||||||
CHCA | 23.1 | % | 22.2 | % | 90 bps | |||||
CHCI | 15.3 | % | 8.7 | % | 660 bps | |||||
RX | 38.1 | % | 43.2 | % | (510) bps | |||||
Adjusted gross profit | ||||||||||
CHCA | $ | 231.6 | $ | 222.6 | 4.1% | |||||
CHCI | 194.5 | 175.7 | 10.7% | |||||||
RX | 139.0 | 149.0 | (6.7)% | |||||||
Adjusted gross margin | ||||||||||
CHCA | 36.0 | % | 35.5 | % | 50 bps | |||||
CHCI | 52.0 | % | 41.9 | % | 1,010 bps | |||||
RX | 53.2 | % | 56.1 | % | (290) bps | |||||
Twelve Months Ended | ||||||||||
December 31, 2017 | December 31, 2016 | Total Change | ||||||||
Consolidated adjusted net sales | $ | 4,925.5 | $ | 5,167.8 | (4.7)% | |||||
Consolidated adjusted net income | 702.7 | 728.0 | (3.5)% | |||||||
Consolidated adjusted EPS | 4.93 | 5.07 | (2.8)% | |||||||
Consolidated adjusted diluted shares | N/A | 143.6 | N/A | |||||||