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Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Schedule of New Accounting Pronouncements
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
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. The guidance is required to be adopted using the modified retrospective approach. Early adoption is permitted.
 
January 1, 2019
 
We have begun to prepare a full inventory of our portfolio of leases and once complete, we will begin to assess and quantify the likely impact on our Consolidated Financial Statements. In addition, we are in the design phase of our lease integration tool.
Derivatives and Hedging
 
This update was issued to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. In addition, the amendments simplify the application of hedge accounting in certain situations. Under the new rule, the entity’s ability to hedge non-financial and financial risk components is expanded. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and also eases certain documentation and assessment requirements. Early adoption is permitted.
 
January 1, 2019
 
We are currently evaluating the implications of adoption on our Consolidated Financial Statements.

Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
 
This guidance permits tax effects stranded in accumulated other comprehensive income as a result of tax reform to be reclassified to retained earnings. This reclassification is optional and will require additional disclosure regarding whether reclassification is elected or not.
 
January 1, 2019
 
We are currently evaluating the implications of adoption on our Consolidated Financial Statements.
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, and other financial instruments.
Intangibles - Goodwill and Other Simplifying the Test for Goodwill
 
The objective of this update is to reduce the cost and complexity of subsequent goodwill accounting by simplifying the impairment test by removing the Step 2 requirement to perform a hypothetical purchase price allocation when the carrying value of a reporting unit exceeds its fair value. If a reporting unit’s carrying value exceeds its fair value, an entity would record an impairment charge based on that difference, limited to the amount of goodwill attributed to that reporting unit. The proposal would not change the guidance on completing Step 1 of the goodwill impairment test. The proposed guidance would be applied prospectively. Early adoption is permitted.
 
January 1, 2020
 
Upon adoption, this guidance eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment. After adoption, a Step 1 failure will result in an immediate impairment charge based on the carrying value of the reporting unit. There is no immediate adoption impact on the Consolidated Financial Statements as the standard will be adopted prospectively.
Condensed Consolidated Statement of Comprehensive Income
 
Three Months Ended
 
March 31, 2018
(in millions, unaudited)
As reported
 
Adjustments
 
Before adoption of ASC 606
Net income
$
80.8

 
$
(2.5
)
 
$
78.3

Comprehensive income
$
153.0

 
$
(2.5
)
 
$
150.5

Condensed Consolidated Statement of Cash Flows
 
Three Months Ended
 
March 31, 2018
(in millions, unaudited)
As reported
 
Adjustments
 
Before adoption of ASC 606
Cash Flows From (For) Operating Activities
 
 
 
 
 
Net income
$
80.8

 
$
(2.5
)
 
$
78.3

Increase (decrease) in cash due to:
 
 
 
 
 
Inventories
(43.7
)
 
(3.1
)
 
(46.8
)
Other, net
(22.2
)
 
5.6

 
(16.6
)
Subtotal
(45.0
)
 
2.5

 
(42.5
)
Net cash from operating activities
$
172.4

 
$
—

 
$
172.4

Condensed Consolidated Statement of Operations

Net sales and Cost of sales were higher in the three months ended March 31, 2018 as a result of adopting ASC 606 due to net sales from contract manufacturing and certain OTC product sales being recognized on an over time basis as the performance obligation was satisfied, compared to the previous revenue recognition under ASC 605, which would have occurred when the product was shipped or delivered. This has resulted in the recognition of a contract asset.
 
Three Months Ended
 
March 31, 2018
(in millions, except per share amounts, unaudited)
As reported
 
Adjustments
 
Before adoption of ASC 606
Net sales
$
1,217.0

 
$
(5.6
)
 
$
1,211.4

Cost of sales
724.3

 
(3.1
)
 
721.2

Gross profit
492.7

 
(2.5
)
 
490.2

 
 
 
 
 
 
Operating income
156.3

 
(2.5
)
 
153.8

 
 
 
 
 
 
Net income
$
80.8

 
$
(2.5
)
 
$
78.3

 
 
 
 
 
 
Earnings per share
 
 
 
 
 
Basic
$
0.57

 
$
(0.02
)
 
$
0.55

Diluted
$
0.57

 
$
(0.02
)
 
$
0.55

Condensed Consolidated Balance Sheet
 
Three Months Ended
 
March 31, 2018
(in millions, unaudited)
As reported
 
Adjustments
 
Before adoption of ASC 606
Assets
 
 
 
 
 
Inventories
$
843.8

 
$
17.9

 
$
861.7

Prepaid expenses and other current assets
246.2

 
(26.1
)
 
220.1

Total current assets
2,900.7

 
(8.2
)
 
2,892.5

Total assets
$
11,639.6

 
$
(8.2
)
 
$
11,631.4

Liabilities and Shareholders’ Equity
 
 
 
 
 
Other non-current liabilities
$
428.9

 
$
(0.3
)
 
$
428.6

Total non-current liabilities
4,041.5

 
(0.3
)
 
4,041.2

Total liabilities
5,434.0

 
(0.3
)
 
5,433.7

Shareholders’ equity
 
 
 
 
 
Controlling interest:
 
 
 
 
 
Retained earnings (accumulated deficit)
(1,888.4
)
 
(7.9
)
 
(1,896.3
)
Total controlling interest
6,205.4

 
(7.9
)
 
6,197.5

Total shareholders’ equity
6,205.6

 
(7.9
)
 
6,197.7

Total liabilities and shareholders' equity
$
11,639.6

 
$
(8.2
)
 
$
11,631.4