0001585364-19-000053.txt : 20190508 0001585364-19-000053.hdr.sgml : 20190508 20190508171708 ACCESSION NUMBER: 0001585364-19-000053 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20190508 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190508 DATE AS OF CHANGE: 20190508 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: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-36353 FILM NUMBER: 19807711 BUSINESS ADDRESS: STREET 1: THE SHARP BUILDING STREET 2: HOGAN PLACE CITY: DUBLIN 2 STATE: L2 ZIP: D02 TY74 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 cy198-krecast.htm 8-K Document


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):
May 8, 2019
_______________________________________________
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.)
 
 
The Sharp Building, Hogan Place, Dublin 2, Ireland


 
-
(Address of principal executive offices)
 
(Zip Code)
+353 1 7094000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, 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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Securities Registered pursuant to section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Ordinary shares
PRGO
New York Stock Exchange





Item 2.02    Results of Operations and Financial Condition

All data provided in this deck is based on our new reporting segments. As disclosed in the Press Release dated May 8, 2019, Perrigo Company plc ("the Company") changed the composition of our operating and reporting segments. We moved our Israeli diagnostic business from the Consumer Self-Care International segment to the Prescription Pharmaceuticals segment and we made certain adjustments to our allocations between segments. These changes were made to reflect changes in the way in which management makes operating decisions, allocates resources, and manages the growth and profitability of the Company.

•
Consumer Self-Care Americas ("CSCA"), formerly Consumer Healthcare Americas, comprises our consumer self-care business (OTC, contract manufacturing, infant formula and animal health categories) in the U.S., Mexico and Canada.
•
Consumer Self-Care International ("CSCI"), formerly Consumer Healthcare International, comprises our branded consumer self-care business primarily in Europe, our consumer-focused business in the United Kingdom and Australia, and our liquid licensed products business in the United Kingdom.
•
Prescription Pharmaceuticals ("RX"), comprises our Prescription Pharmaceuticals business in the U.S. and our diagnostic business in Israel, which was previously in our CSCI segment.

The changes to the 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 reporting segments.

Exhibit 99.1 contains select segment financial metrics for the three months ended April 2, 2016, July 2, 2016, October 1, 2016, December 31, 2016, April 1, 2017, July 1, 2017, September 30, 2017, December 31, 2017, March 31, 2018, June 30, 2018, September 29, 2018, December 31, 2018, and March 30, 2019; and the years ended December 31, 2016, December 31, 2017, and December 31, 2018.

The recast financial information contained in Exhibit 99.1 does not represent a restatement of previously issued financial statements. The information in this Item 2.02, including Exhibit 99.1, should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and the Company’s Quarterly Reports on Form 10-Q for the quarters ended April 2, 2016, July 2, 2016, October 1, 2016, April 1, 2017, July 1, 2017, September 30, 2017, March 31, 2018, June 30, 2018, September 29, 2018, and March 30, 2019.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, 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 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 operation, balance sheets or statements of cash flows of the Company. Pursuant to the requirements of the U.S. Securities and Exchange Commission, the Company has provided reconciliations for net sales excluding sales attributable to held-for-sale businesses, adjusted gross profit, adjusted operating income, adjusted net income, adjusted diluted earnings per share, adjusted gross margin, and adjusted operating margin within this report to the most directly comparable U.S. GAAP measures for these non-GAAP measures. These non-GAAP financial measures should be considered as supplements to the GAAP reported measures, should not be considered replacements for, or superior to, the GAAP measures and may not be comparable to similarly named measures used by other companies.
The Company provides non-GAAP financial measures as additional information that it believes is useful to investors and analysts in evaluating the performance of the Company's ongoing operating trends, facilitating comparability between periods and companies in similar industries and assessing the Company's prospects for future performance. These non-GAAP financial measures exclude items, such as amortization expense, impairment charges, restructuring charges, and acquisition and integration-related charges, that by their nature affect comparability of operational performance or that we believe obscure underlying business operational trends. The non-GAAP measures the Company provides are consistent with how management analyzes and assesses the operating performance of the Company, and disclosing them provides investor insight into management’s view of the business. Management




uses these adjusted financial measures for planning and forecasting in future periods, and evaluating segment and overall operating performance. In addition, management uses certain of the profit measures as factors in determining compensation.

Non-GAAP measures related to profit measurements, which include adjusted gross profit, and adjusted operating income, are useful to investors as they provide them with supplemental information to enhance their understanding of the Company’s underlying business performance and trends and enhance the ability of investors and analysts to compare the Company’s period-to-period financial results. Management believes that adjusted gross margin and adjusted operating margin are useful to investors, in addition to the reasons discussed above, by allowing them to more easily compare and analyze trends in the Company’s peer business group and assisting them in comparing the Company’s overall performance to that of its competitors. The Company discloses adjusted net sales, which excludes operating results attributable to exited businesses in order to provide information about sales of the Company’s continuing business. In addition, the Company discloses net sales growth and adjusted net sales growth on a constant currency basis to provide information about sales of the Company’s continuing business excluding the exogenous impact of foreign exchange. The Company believes these supplemental financial measures provide investors with consistency in financial reporting, enabling meaningful comparisons of past, present and future underlying operating results, and also facilitate comparison of the Company’s operating performance to the operating performance of its competitors.

Reported results were adjusted for the following items:

•
Amortization expense primarily related to acquired intangible assets
•
Operating results attributable to held-for-sale business
•
Acquisition and integration-related charges and contingent consideration adjustments
•
Restructuring charges and other termination benefits
•
Unusual litigation
•
Impairment charges
•
Gain/loss on divestitures





ITEM 9.01.    Financial Statements and Exhibits

(d)
Exhibits








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/ Raymond P. Silcock
Dated:
May 8, 2019
 
 
Raymond P. Silcock
 
 
 
 
Chief Financial Officer


         
                        
     



 EX-99.1 2 ex9912019201820172016.htm EXHIBIT 99.1 Exhibit


EXHIBIT 99.1
PERRIGO COMPANY PLC
SELECTED SEGMENT INFORMATION
QUARTERS AND FISCAL YEAR 2016
(in millions)
(unaudited)
 
Three Months Ended
 
Year Ended
Consumer Self-Care Americas
April 2,
2016
 
July 2,
2016
 
October 1,
2016
 
December 31,
2016
 
December 31,
2016
Net sales
$
639.1

 
$
629.9

 
$
611.2

 
$
626.8

 
$
2,507.0

Gross profit
$
202.7

 
$
227.5

 
$
205.2

 
$
215.6

 
$
851.0

R&D expense
$
18.9

 
$
18.8

 
$
18.3

 
$
18.2

 
$
74.2

DSG&A expense
$
74.9

 
$
77.9

 
$
74.6

 
$
81.5

 
$
308.9

Operating income
$
107.3

 
$
124.4

 
$
105.0

 
$
88.9

 
$
425.6

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Gross profit
31.7
%
 
36.1
%
 
33.6
%
 
34.4
%
 
33.9
%
R&D expense
3.0
%
 
3.0
%
 
3.0
%
 
2.9
%
 
3.0
%
DSG&A expense
11.7
%
 
12.4
%
 
12.2
%
 
13.0
%
 
12.3
%
Operating income
16.8
%
 
19.7
%
 
17.2
%
 
14.2
%
 
17.0
%
 
Three Months Ended
Year Ended
Consumer Self-Care International
April 2,
2016
 
July 2,
2016
 
October 1,
2016
 
December 31,
2016
 
December 31,
2016
Net sales
$
420.1

 
$
399.5

 
$
358.3

 
$
401.9

 
$
1,579.8

Gross profit
$
192.7

 
$
182.1

 
$
148.2

 
$
145.1

 
$
668.1

R&D expense
$
10.5

 
$
10.0

 
$
10.5

 
$
9.6

 
$
40.6

DSG&A expense
$
173.2

 
$
167.2

 
$
148.2

 
$
160.0

 
$
648.6

Operating income (loss)
$
(398.1
)
 
$
0.1

 
$
(1,617.5
)
 
$
(68.9
)
 
$
(2,084.4
)
 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Gross profit
45.9
 %
 
45.6
%
 
41.4
 %
 
36.1
 %
 
42.3
 %
R&D expense
2.5
 %
 
2.5
%
 
2.9
 %
 
2.4
 %
 
2.6
 %
DSG&A expense
41.2
 %
 
41.9
%
 
41.4
 %
 
39.8
 %
 
41.1
 %
Operating income (loss)
(94.8
)%
 
—
%
 
(451.5
)%
 
(17.1
)%
 
(131.9
)%
 
Three Months Ended
 
Year Ended
Prescription Pharmaceuticals
April 2,
2016
 
July 2,
2016
 
October 1,
2016
 
December 31,
2016
 
December 31,
2016
Net sales
$
267.5

 
$
293.3

 
$
271.0

 
$
283.4

 
$
1,115.2

Gross profit
$
127.9

 
$
129.4

 
$
121.8

 
$
121.5

 
$
500.6

R&D expense
$
14.1

 
$
16.6

 
$
19.7

 
$
12.0

 
$
62.4

DSG&A expense
$
25.2

 
$
24.9

 
$
29.5

 
$
34.1

 
$
113.7

Operating income (loss)
$
88.6

 
$
87.9

 
$
72.6

 
$
(269.0
)
 
$
(19.9
)
 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Gross profit
47.8
%
 
44.1
%
 
44.9
%
 
42.9
 %
 
44.9
 %
R&D expense
5.3
%
 
5.7
%
 
7.3
%
 
4.2
 %
 
5.6
 %
DSG&A expense
9.4
%
 
8.5
%
 
10.9
%
 
12.0
 %
 
10.2
 %
Operating income (loss)
33.1
%
 
30.0
%
 
26.8
%
 
(94.9
)%
 
(1.8
)%

1


PERRIGO COMPANY PLC
SELECTED SEGMENT INFORMATION
QUARTERS AND FISCAL YEAR 2017
(in millions)
(unaudited)
 
Three Months Ended
 
Year Ended
Consumer Self-Care Americas
April 1,
2017
 
July 1,
2017
 
September 30,
2017
 
December 31,
2017
 
December 31,
2017
Net sales
$
582.8

 
$
604.8

 
$
598.8

 
$
643.5

 
$
2,429.9

Gross profit
$
196.6

 
$
210.0

 
$
211.4

 
$
225.7

 
$
843.7

R&D expense
$
16.6

 
$
18.0

 
$
13.8

 
$
17.5

 
$
65.9

DSG&A expense
$
71.4

 
$
75.7

 
$
70.4

 
$
61.6

 
$
279.1

Operating income
$
83.2

 
$
110.5

 
$
129.6

 
$
147.6

 
$
470.9

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Gross profit
33.7
%
 
34.7
%
 
35.3
%
 
35.1
%
 
34.7
%
R&D expense
2.8
%
 
3.0
%
 
2.3
%
 
2.7
%
 
2.7
%
DSG&A expense
12.3
%
 
12.5
%
 
11.8
%
 
9.6
%
 
11.5
%
Operating income
14.3
%
 
18.3
%
 
21.6
%
 
22.9
%
 
19.4
%
 
Three Months Ended
 
Year Ended
Consumer Self-Care International
April 1,
2017
 
July 1,
2017
 
September 30,
2017
 
December 31,
2017
 
December 31,
2017
Net sales
$
354.7

 
$
356.9

 
$
343.0

 
$
351.6

 
$
1,406.2

Gross profit
$
162.1

 
$
167.3

 
$
157.4

 
$
164.4

 
$
651.2

R&D expense
$
10.4

 
$
9.9

 
$
10.3

 
$
10.2

 
$
40.8

DSG&A expense
$
149.3

 
$
152.2

 
$
141.5

 
$
147.9

 
$
590.9

Operating income (loss)
$
(1.6
)
 
$
(5.5
)
 
$
2.0

 
$
2.4

 
$
(2.7
)
 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Gross profit
45.7
 %
 
46.9
 %
 
45.9
%
 
46.8
%
 
46.3
 %
R&D expense
2.9
 %
 
2.8
 %
 
3.0
%
 
2.9
%
 
2.9
 %
DSG&A expense
42.1
 %
 
42.6
 %
 
41.3
%
 
42.1
%
 
42.0
 %
Operating income (loss)
(0.5
)%
 
(1.5
)%
 
0.6
%
 
0.7
%
 
(0.2
)%
 
Three Months Ended
 
Year Ended
Prescription Pharmaceuticals
April 1,
2017
 
July 1,
2017
 
September 30,
2017
 
December 31,
2017
 
December 31,
2017
Net sales
$
237.6

 
$
260.0

 
$
273.0

 
$
283.8

 
$
1,054.4

Gross profit
$
95.5

 
$
119.6

 
$
120.0

 
$
119.5

 
$
454.6

R&D expense
$
11.1

 
$
12.7

 
$
12.4

 
$
17.9

 
$
54.1

DSG&A expense
$
21.5

 
$
11.8

 
$
22.5

 
$
35.4

 
$
91.2

Operating income
$
84.0

 
$
74.8

 
$
81.7

 
$
65.6

 
$
306.1

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Gross profit
40.2
%
 
46.0
%
 
44.0
%
 
42.1
%
 
43.1
%
R&D expense
4.7
%
 
4.9
%
 
4.6
%
 
6.3
%
 
5.1
%
DSG&A expense
9.0
%
 
4.5
%
 
8.3
%
 
12.5
%
 
8.6
%
Operating income
35.4
%
 
28.8
%
 
29.9
%
 
23.1
%
 
29.0
%



2


PERRIGO COMPANY PLC
SELECTED SEGMENT INFORMATION
QUARTERS AND FISCAL YEAR 2018
(in millions)
(unaudited)
 
Three Months Ended
 
Year Ended
Consumer Self-Care Americas
March 31,
2018
 
June 30,
2018
 
September 29,
2018
 
December 31,
2018
 
December 31,
2018
Net sales
$
601.6

 
$
596.9

 
$
596.2

 
$
616.9

 
$
2,411.6

Gross profit
$
205.9

 
$
202.5

 
$
189.5

 
$
191.1

 
$
789.0

R&D expense
$
15.2

 
$
66.4

 
$
13.8

 
$
15.3

 
$
110.7

DSG&A expense
$
71.5

 
$
72.4

 
$
73.0

 
$
65.4

 
$
282.3

Operating income (loss)
$
118.6

 
$
64.6

 
$
(119.0
)
 
$
110.2

 
$
174.4

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Gross profit
34.2
%
 
33.9
%
 
31.8
 %
 
31.0
%
 
32.7
%
R&D expense
2.5
%
 
11.1
%
 
2.3
 %
 
2.5
%
 
4.6
%
DSG&A expense
11.9
%
 
12.1
%
 
12.2
 %
 
10.6
%
 
11.7
%
Operating income (loss)
19.7
%
 
10.8
%
 
(20.0
)%
 
17.9
%
 
7.2
%
 
Three Months Ended
 
Year Ended
Consumer Self-Care International
March 31,
2018
 
June 30,
2018
 
September 29,
2018
 
December 31,
2018
 
December 31,
2018
Net sales
$
377.8

 
$
357.9

 
$
334.2

 
$
329.4

 
$
1,399.3

Gross profit
$
185.9

 
$
173.2

 
$
158.6

 
$
151.0

 
$
668.7

R&D expense
$
10.6

 
$
11.2

 
$
10.3

 
$
11.8

 
$
43.9

DSG&A expense
$
162.4

 
$
156.5

 
$
134.9

 
$
145.0

 
$
598.8

Operating income (loss)
$
12.3

 
$
4.0

 
$
(4.7
)
 
$
(4.8
)
 
$
6.8

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Gross profit
49.2
%
 
48.4
%
 
47.5
 %
 
45.8
 %
 
47.8
%
R&D expense
2.8
%
 
3.1
%
 
3.1
 %
 
3.6
 %
 
3.1
%
DSG&A expense
43.0
%
 
43.7
%
 
40.3
 %
 
44.0
 %
 
42.8
%
Operating income (loss)
3.3
%
 
1.1
%
 
(1.4
)%
 
(1.5
)%
 
0.5
%
 
Three Months Ended
 
Year Ended
Prescription Pharmaceuticals
March 31,
2018
 
June 30,
2018
 
September 29,
2018
 
December 31,
2018
 
December 31,
2018
Net sales
$
237.6

 
$
231.6

 
$
202.8

 
$
248.8

 
$
920.8

Gross profit
$
100.9

 
$
95.3

 
$
76.8

 
$
100.9

 
$
373.9

R&D expense
$
12.6

 
$
14.4

 
$
19.5

 
$
17.5

 
$
64.0

DSG&A expense
$
24.1

 
$
22.6

 
$
20.7

 
$
21.1

 
$
88.5

Operating income
$
61.2

 
$
53.6

 
$
36.1

 
$
63.7

 
$
214.6

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Gross profit
42.5
%
 
41.1
%
 
37.9
%
 
40.6
%
 
40.6
%
R&D expense
5.3
%
 
6.2
%
 
9.6
%
 
7.0
%
 
6.9
%
DSG&A expense
10.1
%
 
9.8
%
 
10.2
%
 
8.5
%
 
9.6
%
Operating income
25.8
%
 
23.1
%
 
17.8
%
 
25.6
%
 
23.3
%



3


PERRIGO COMPANY PLC
SELECTED SEGMENT INFORMATION
FIRST QUARTER 2019
(in millions)
(unaudited)
 
Three Months Ended
Consumer Self-Care Americas
March 30,
2019
Net sales
$
581.8

Gross profit
$
184.0

R&D expense
$
15.6

DSG&A expense
$
73.3

Operating income
$
94.2

 
 
Selected ratios as a percentage of reported net sales
Gross profit
31.6
%
R&D expense
2.7
%
DSG&A expense
12.6
%
Operating income
16.2
%
 
Three Months Ended
Consumer Self-Care International
March 30,
2019
Net sales
$
350.8

Gross profit
$
168.4

R&D expense
$
10.3

DSG&A expense
$
149.4

Operating income
$
8.1

 
 
Selected ratios as a percentage of reported net sales
Gross profit
48.0
%
R&D expense
2.9
%
DSG&A expense
42.6
%
Operating income
2.3
%
 
Three Months Ended
Prescription Pharmaceuticals
March 30,
2019
Net sales
$
241.9

Gross profit
$
96.4

R&D expense
$
14.3

DSG&A expense
$
21.6

Operating income
$
60.6

 
 
Selected ratios as a percentage of reported net sales
Gross profit
39.9
%
R&D expense
5.9
%
DSG&A expense
8.9
%
Operating income
25.1
%



4


PERRIGO COMPANY PLC
ADJUSTED SELECTED SEGMENT INFORMATION(1)
QUARTERS AND FISCAL YEAR 2016
(in millions)
(unaudited)
 
Three Months Ended
 
Year Ended
Consumer Self-Care Americas
April 2,
2016
 
July 2,
2016
 
October 1,
2016
 
December 31,
2016
 
December 31,
2016
Adjusted net sales
$
592.0

 
$
587.8

 
$
590.2

 
N/A

 
$
2,396.8

Adjusted gross profit
$
211.3

 
$
233.8

 
$
215.2

 
$
228.2

 
$
888.5

Adjusted R&D expense
$
18.3

 
$
18.3

 
$
18.1

 
N/A

 
$
72.9

Adjusted DSG&A expense
$
65.5

 
$
69.2

 
$
65.9

 
$
65.0

 
$
265.6

Adjusted operating income
$
127.4

 
$
146.3

 
$
131.3

 
$
145.0

 
$
550.0

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of adjusted net sales
 
 
 
 
 
 
Adjusted gross profit
35.7
%
 
39.8
%
 
36.5
%
 
36.4
%
 
37.1
%
Adjusted R&D expense
3.1
%
 
3.1
%
 
3.1
%
 
N/A

 
3.0
%
Adjusted DSG&A expense
11.1
%
 
11.8
%
 
11.2
%
 
10.4
%
 
11.1
%
Adjusted operating income
21.5
%
 
24.9
%
 
22.2
%
 
23.1
%
 
22.9
%
 
Three Months Ended
 
Year Ended
Consumer Self-Care International
April 2,
2016
 
July 2,
2016
 
October 1,
2016
 
December 31,
2016
 
December 31,
2016
Adjusted net sales
N/A

 
$
399.4

 
$
358.1

 
N/A

 
$
1,579.5

Adjusted gross profit
$
205.6

 
$
200.1

 
$
165.2

 
$
169.2

 
$
740.1

Adjusted R&D expense
$
10.3

 
$
9.8

 
$
10.1

 
$
9.5

 
$
39.7

Adjusted DSG&A expense
$
142.2

 
$
134.1

 
$
116.8

 
$
124.7

 
$
517.8

Adjusted operating income
$
53.0

 
$
56.2

 
$
38.3

 
$
35.1

 
$
182.6

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of adjusted net sales
 
 
 
 
 
 
Adjusted gross profit
48.9
%
 
50.1
%
 
46.1
%
 
42.1
%
 
46.9
%
Adjusted R&D expense
2.5
%
 
2.4
%
 
2.8
%
 
2.4
%
 
2.5
%
Adjusted DSG&A expense
33.9
%
 
33.6
%
 
32.6
%
 
31.0
%
 
32.8
%
Adjusted operating income
12.6
%
 
14.1
%
 
10.7
%
 
8.7
%
 
11.6
%
 
Three Months Ended
 
Year Ended
Prescription Pharmaceuticals
April 2,
2016
 
July 2,
2016
 
October 1,
2016
 
December 31,
2016
 
December 31,
2016
Adjusted gross profit
$
153.2

 
$
155.2

 
$
148.9

 
$
149.9

 
$
607.2

Adjusted DSG&A expense
$
24.9

 
N/A

 
$
24.3

 
$
24.9

 
$
99.0

Adjusted operating income
$
114.3

 
$
113.7

 
$
104.9

 
$
113.0

 
$
445.9

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Adjusted gross profit
57.3
%
 
52.9
%
 
55.0
%
 
52.9
%
 
54.5
%
Adjusted DSG&A expense
9.3
%
 
N/A

 
9.0
%
 
8.8
%
 
8.9
%
Adjusted operating income
42.7
%
 
38.8
%
 
38.7
%
 
39.8
%
 
40.0
%
 
 
 
 
 
 
 
 
 
 
(1) See Table I for reconciliation to GAAP numbers
 
 
 
 
 
 

5


PERRIGO COMPANY PLC
ADJUSTED SELECTED SEGMENT INFORMATION(1)
QUARTERS AND FISCAL YEAR 2017
(in millions)
(unaudited)
 
Three Months Ended
 
Year Ended
Consumer Self-Care Americas
April 1,
2017
 
July 1,
2017
 
September 30,
2017
 
December 31,
2017
 
December 31,
2017
Adjusted gross profit
$
209.0

 
$
222.1

 
$
223.5

 
$
237.8

 
$
892.4

Adjusted DSG&A expense
$
66.6

 
$
70.9

 
$
65.6

 
$
65.3

 
$
268.4

Adjusted operating income
$
125.7

 
$
133.3

 
$
144.1

 
$
155.0

 
$
558.1

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Adjusted gross profit
35.9
%
 
36.7
%
 
37.3
%
 
37.0
%
 
36.7
%
Adjusted DSG&A expense
11.4
%
 
11.7
%
 
10.9
%
 
10.1
%
 
11.0
%
Adjusted operating income
21.6
%
 
22.0
%
 
24.1
%
 
24.1
%
 
23.0
%
 
Three Months Ended
 
Year Ended
Consumer Self-Care International
April 1,
2017
 
July 1,
2017
 
September 30,
2017
 
December 31,
2017
 
December 31,
2017
Adjusted gross profit
$
182.4

 
$
187.8

 
$
178.9

 
$
186.1

 
$
735.2

Adjusted R&D expense
$
10.2

 
$
9.5

 
$
10.0

 
$
9.9

 
$
39.6

Adjusted DSG&A expense
$
122.8

 
$
124.4

 
$
112.0

 
$
120.8

 
$
480.0

Adjusted operating income
$
49.5

 
$
53.8

 
$
57.0

 
$
55.4

 
$
215.7

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Adjusted gross profit
51.4
%
 
52.6
%
 
52.2
%
 
52.9
%
 
52.3
%
Adjusted R&D expense
2.9
%
 
2.7
%
 
2.9
%
 
2.8
%
 
2.8
%
Adjusted DSG&A expense
34.6
%
 
34.9
%
 
32.6
%
 
34.3
%
 
34.1
%
Adjusted operating income
13.9
%
 
15.1
%
 
16.6
%
 
15.8
%
 
15.3
%
 
Three Months Ended
 
Year Ended
Prescription Pharmaceuticals
April 1,
2017
 
July 1,
2017
 
September 30,
2017
 
December 31,
2017
 
December 31,
2017
Adjusted gross profit
$
117.8

 
$
142.1

 
$
141.2

 
$
141.2

 
$
542.3

Adjusted DSG&A expense
$
21.4

 
$
20.5

 
$
22.4

 
$
25.7

 
$
90.0

Adjusted operating income
$
85.3

 
$
108.9

 
$
106.3

 
$
97.6

 
$
398.1

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Adjusted gross profit
49.6
%
 
54.7
%
 
51.7
%
 
49.7
%
 
51.4
%
Adjusted DSG&A expense
9.0
%
 
7.9
%
 
8.2
%
 
9.1
%
 
8.5
%
Adjusted operating income
35.9
%
 
41.9
%
 
39.0
%
 
34.4
%
 
37.8
%
 
 
 
 
 
 
 
 
 
 
(1) See Table I for reconciliation to GAAP numbers
 
 
 
 
 
 

6


PERRIGO COMPANY PLC
ADJUSTED SELECTED SEGMENT INFORMATION(1)
QUARTERS AND FISCAL YEAR 2018
(in millions)
(unaudited)
 
Three Months Ended
 
Year Ended
Consumer Self-Care Americas
March 31,
2018
 
June 30,
2018
 
September 29,
2018
 
December 31,
2018
 
December 31,
2018
Adjusted gross profit
$
216.4

 
$
213.1

 
$
200.1

 
$
196.6

 
$
826.2

Adjusted R&D expense
N/A

 
$
16.4

 
N/A

 
N/A

 
$
60.7

Adjusted DSG&A expense
$
66.8

 
$
67.6

 
$
68.3

 
$
60.7

 
$
263.4

Adjusted operating income
$
134.3

 
$
129.0

 
$
118.0

 
$
120.7

 
$
502.0

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Adjusted gross profit
36.0
%
 
35.7
%
 
33.6
%
 
31.9
%
 
34.3
%
Adjusted R&D expense
N/A

 
2.7
%
 
N/A

 
N/A

 
2.5
%
Adjusted DSG&A expense
11.1
%
 
11.3
%
 
11.4
%
 
9.8
%
 
10.9
%
Adjusted operating income
22.3
%
 
21.6
%
 
19.8
%
 
19.6
%
 
20.8
%
 
Three Months Ended
 
Year Ended
Consumer Self-Care International
March 31,
2018
 
June 30,
2018
 
September 29,
2018
 
December 31,
2018
 
December 31,
2018
Adjusted gross profit
$
208.4

 
$
195.0

 
$
179.8

 
$
171.9

 
$
755.1

Adjusted R&D expense
$
10.3

 
$
10.9

 
$
10.1

 
$
11.6

 
$
42.9

Adjusted DSG&A expense
$
132.7

 
$
128.1

 
$
105.6

 
$
117.7

 
$
484.1

Adjusted operating income
$
65.4

 
$
55.9

 
$
64.2

 
$
42.6

 
$
228.1

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Adjusted gross profit
55.2
%
 
54.5
%
 
53.8
%
 
52.2
%
 
54.0
%
Adjusted R&D expense
2.7
%
 
3.0
%
 
3.0
%
 
3.5
%
 
3.1
%
Adjusted DSG&A expense
35.1
%
 
35.8
%
 
31.6
%
 
35.7
%
 
34.6
%
Adjusted operating income
17.3
%
 
15.6
%
 
19.2
%
 
12.9
%
 
16.3
%
 
Three Months Ended
 
Year Ended
Prescription Pharmaceuticals
March 31,
2018
 
June 30,
2018
 
September 29,
2018
 
December 31,
2018
 
December 31,
2018
Adjusted gross profit
$
121.8

 
$
115.9

 
$
97.4

 
$
121.9

 
$
457.0

Adjusted DSG&A expense
N/A

 
$
22.4

 
$
20.6

 
$
20.9

 
$
88.0

Adjusted operating income
$
85.1

 
$
79.1

 
$
57.4

 
$
83.4

 
$
305.0

 
 
 
 
 
 
 
 
 
 
Selected ratios as a percentage of reported net sales
 
 
 
 
 
 
Adjusted gross profit
51.2
%
 
50.0
%
 
48.1
%
 
49.0
%
 
49.6
%
Adjusted DSG&A expense
N/A

 
9.7
%
 
10.1
%
 
8.4
%
 
9.6
%
Adjusted operating income
35.8
%
 
34.1
%
 
28.3
%
 
33.5
%
 
33.1
%
 
 
 
 
 
 
 
 
 
 
(1) See Table I for reconciliation to GAAP numbers
 
 
 
 
 
 

7


PERRIGO COMPANY PLC
ADJUSTED SELECTED SEGMENT INFORMATION(1)
FIRST QUARTER 2019
(in millions)
(unaudited)
 
Three Months Ended
Consumer Self-Care Americas
March 30,
2019
Adjusted gross profit
$
189.4

Adjusted DSG&A expense
$
67.4

Adjusted operating income
$
106.3

 
 
Selected ratios as a percentage of reported net sales
Adjusted gross profit
32.5
%
Adjusted DSG&A expense
11.6
%
Adjusted operating income
18.3
%
 
Three Months Ended
Consumer Self-Care International
March 30,
2019
Adjusted gross profit
$
189.2

Adjusted R&D expense
$
10.2

Adjusted DSG&A expense
$
124.9

Adjusted operating income
$
54.1

 
 
Selected ratios as a percentage of reported net sales
Adjusted gross profit
53.9
%
Adjusted R&D expense
2.9
%
Adjusted DSG&A expense
35.6
%
Adjusted operating income
15.4
%
 
Three Months Ended
Prescription Pharmaceuticals
March 30,
2019
Adjusted gross profit
$
117.6

Adjusted DSG&A expense
$
21.5

Adjusted operating income
$
81.9

 
 
Selected ratios as a percentage of reported net sales
Adjusted gross profit
48.6
%
Adjusted DSG&A expense
8.9
%
Adjusted operating income
33.9
%
 
 
(1) See Table I for reconciliation to GAAP numbers


8


Table I
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2016
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
 
April 2, 2016
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
639.1

$
202.7

$
18.9

$
74.9

$
107.3

As a % of reported net sales
 
31.7
%
3.0
%
11.7
%
16.8
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
$
—

$
12.8

$
—

$
(5.3
)
$
18.1

Operating results attributable to held-for-sale business*
(47.1
)
(7.0
)
(0.6
)
(3.9
)
(2.5
)
Restructuring charges and other termination benefits
—

—

—

—

1.5

Acquisition and integration-related charges and contingent
consideration adjustments
—

2.8

—

(0.2
)
3.0

Adjusted
$
592.0

$
211.3

$
18.3

$
65.5

$
127.4

As a % of adjusted net sales
 
35.7
%
3.1
%
11.1
%
21.5
%
 
 
 
 
 
 
* Held-for-sale business includes U.S. VMS business.
 
Three Months Ended
 
July 2, 2016
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
629.9

$
227.5

$
18.8

$
77.9

$
124.4

As a % of reported net sales
 
36.1
%
3.0
%
12.4
%
19.7
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
$
—

$
12.4

$
—

$
(5.1
)
$
17.5

Impairment charges
—

—

—

—

6.2

Operating results attributable to held-for-sale business*
(42.1
)
(7.2
)
(0.5
)
(3.7
)
(3.1
)
Restructuring charges and other termination benefits
—

—

—

—

0.3

Acquisition and integration-related charges and contingent
consideration adjustments
—

1.1

—

0.1

1.0

Adjusted
$
587.8

$
233.8

$
18.3

$
69.2

$
146.3

As a % of adjusted net sales
 
39.8
%
3.1
%
11.8
%
24.9
%
 
 
 
 
 
 
* Held-for-sale business includes U.S. VMS business.
 
 
 
 
 
 
Three Months Ended
 
October 1, 2016
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
611.2

$
205.2

$
18.3

$
74.6

$
105.0

As a % of reported net sales
 
33.6
%
3.0
%
12.2
%
17.2
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
$
—

$
12.6

$
—

$
(5.1
)
$
17.7

Impairment charges
—

—

—

—

3.4

Operating results attributable to held-for-sale business*
(21.0
)
(3.4
)
(0.2
)
(3.1
)
(0.1
)
Restructuring charges and other termination benefits
—

—

—

—

4.0

Unusual litigation
—

—

—

—

—

Acquisition and integration-related charges and contingent
consideration adjustments
—

0.8

—

(0.5
)
1.3

Adjusted
$
590.2

$
215.2

$
18.1

$
65.9

$
131.3

As a % of adjusted net sales
 
36.5
%
3.1
%
11.2
%
22.2
%
 
 
 
 
 
 
* Held-for-sale business includes U.S. VMS business.
 
 
 
 
 

9


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2016
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
 
December 31, 2016
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
626.8

$
215.6

$
18.2

$
81.5

$
88.9

As a % of reported net sales
 
34.4
%
2.9
%
13.0
%
14.2
 %
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
12.6

 
$
(5.1
)
$
17.7

Impairment charges
 
—

 
—

(0.1
)
Restructuring charges and other termination benefits
 
—

 
—

27.1

Unusual litigation
 
—

 
(10.2
)
10.2

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
(1.2
)
1.2

Adjusted
 
$
228.2

 
$
65.0

$
145.0

As a % of reported net sales
 
36.4
%
 
10.4
%
23.1
 %
 
 
 
 
 
 
 
Year Ended
 
December 31, 2016
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
2,507.0

$
851.0

$
74.2

$
308.9

$
425.6

As a % of reported net sales
 
33.9
%
3.0
%
12.3
%
17.0
 %
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
$
—

$
50.4

$
—

$
(20.6
)
$
71.0

Impairment charges
—

—

—

—

9.5

Operating results attributable to held-for-sale business*
(110.2
)
(17.6
)
(1.3
)
(10.7
)
(5.7
)
Restructuring charges and other termination benefits
—

—

—

—

32.9

Unusual litigation
—

—

—

(10.2
)
10.2

Acquisition and integration-related charges and contingent
consideration adjustments
—

4.7

—

(1.8
)
6.5

Adjusted
$
2,396.8

$
888.5

$
72.9

$
265.6

$
550.0

As a % of adjusted net sales
 
37.1
%
3.0
%
11.1
%
22.9
 %
 
 
 
 
 
 
* Held-for-sale business includes U.S. VMS business.
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
April 2, 2016
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income (Loss)
Reported
$
420.1

$
192.7

$
10.5

$
173.2

$
(398.1
)
As a % of reported net sales
 
45.9
%
2.5
%
41.2
%
(94.8
)%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
12.9

$
(0.2
)
$
(29.7
)
$
42.8

Impairment charges
 
—

—

—

403.9

Restructuring charges and other termination benefits
 
—

—

—

3.1

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

—

(1.3
)
1.3

Adjusted
 
$
205.6

$
10.3

$
142.2

$
53.0

As a % of reported net sales
 
48.9
%
2.5
%
33.9
%
12.6
 %

10


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2016
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
 
July 2, 2016
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
399.5

$
182.1

$
10.0

$
167.2

$
0.1

As a % of reported net sales
 
45.6
%
2.5
%
41.9
%
—
 %
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
$
—

$
17.3

$
(0.2
)
$
(29.3
)
$
46.8

Operating results attributable to held-for-sale business*
(0.1
)
0.7

—

(4.0
)
4.7

Restructuring charges and other termination benefits
—

—

—

—

4.8

Acquisition and integration-related charges and contingent
consideration adjustments
—

—

—

0.2

(0.2
)
Adjusted
$
399.4

$
200.1

$
9.8

$
134.1

$
56.2

As a % of adjusted net sales
 
50.1
%
2.4
%
33.6
%
14.1
 %

 
 
 
 
 
* Held-for-sale business includes the European Sports Brand.
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
October 1, 2016
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income (Loss)
Reported
$
358.3

$
148.2

$
10.5

$
148.2

$
(1,617.5
)
As a % of reported net sales
 
41.4
%
2.9
%
41.4
%
(451.5
)%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
$
—

$
16.9

$
(0.4
)
$
(28.8
)
$
46.1

Impairment charges
—

—

—

—

1,604.5

Operating results attributable to held-for-sale business*
(0.2
)
0.1

—

(2.8
)
2.9

Restructuring charges and other termination benefits
—

—

—

—

2.5

Acquisition and integration-related charges and contingent
consideration adjustments
—

—

—

0.2

(0.2
)
Adjusted
$
358.1

$
165.2

$
10.1

$
116.8

$
38.3

As a % of adjusted net sales
 
46.1
%
2.8
%
32.6
%
10.7
 %
 
 
 
 
 
 
* Held-for-sale business includes the European Sports Brand.
 
 
 
 
 
















11


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2016
(in millions)
(unaudited)
 
 
 
Three Months Ended
 
December 31, 2016
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income (Loss)
Reported
$
401.9

$
145.1

$
9.6

$
160.0

$
(68.9
)
As a % of reported net sales
 
36.1
%
2.4
%
39.8
%
(17.1
)%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
20.6

$
(0.1
)
$
(27.5
)
$
48.2

Impairment charges
 
—

—

—

34.0

Operating results attributable to held-for-sale business*
 
3.5

—

(6.8
)
10.3

Restructuring charges and other termination benefits
 
—

—

—

10.5

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

—

(1.0
)
1.0

Adjusted
 
$
169.2

$
9.5

$
124.7

$
35.1

As a % of reported net sales
 
42.1
%
2.4
%
31.0
%
8.7
 %
 
 
 
 
 
 
* Held-for-sale business includes the European Sports Brand.
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
 
December 31, 2016
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income (Loss)
Reported
$
1,579.8

$
668.1

$
40.6

$
648.6

$
(2,084.4
)
As a % of reported net sales
 
42.3
%
2.6
%
41.1
%
(131.9
)%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
$
—

$
67.7

$
(0.9
)
$
(115.3
)
$
183.9

Impairment charges
—

—

—

—

2,042.4

Operating results attributable to held-for-sale business*
(0.3
)
4.3

—

(13.6
)
17.9

Restructuring charges and other termination benefits
—

—

—

—

20.9

Acquisition and integration-related charges and contingent
consideration adjustments
—

—

—

(1.9
)
1.9

Adjusted
$
1,579.5

$
740.1

$
39.7

$
517.8

$
182.6

As a % of adjusted net sales
 
46.9
%
2.5
%
32.8
%
11.6
 %
 
 
 
 
 
 
* Held-for-sale business includes the European Sports Brand.
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
April 2, 2016
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
267.5

$
127.9

$
14.1

$
25.2

$
88.6

As a % of reported net sales
 
47.8
%
5.3
%
9.4
%
33.1
 %
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
25.3

 
$
(0.2
)
$
25.6

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
(0.1
)
0.1

Adjusted
 
$
153.2

 
$
24.9

$
114.3

As a % of reported net sales
 
57.3
%
 
9.3
%
42.7
 %
 

12


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2016
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
 
July 2, 2016
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
293.3

$
129.4

$
16.6

$
24.9

$
87.9

As a % of reported net sales
 
44.1
%
5.7
%
8.5
%
30.0
 %
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
25.8

 
 
$
25.8

Adjusted
 
$
155.2

 
 
$
113.7

As a % of reported net sales
 
52.9
%
 
 
38.8
 %
 
 
 
 
 
 
 
Three Months Ended
 
October 1, 2016
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
271.0

$
121.8

$
19.7

$
29.5

$
72.6

As a % of reported net sales
 
44.9
%
7.3
%
10.9
%
26.8
 %
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
27.1

 
$
(0.2
)
$
27.3

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
(5.0
)
5.0

Adjusted
 
$
148.9

 
$
24.3

$
104.9

As a % of reported net sales
 
55.0
%
 
9.0
%
38.7
 %
 
 
 
 
 
 
 
Three Months Ended
 
December 31, 2016
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income (Loss)
Reported
$
283.4

$
121.5

$
12.0

$
34.1

$
(269.0
)
As a % of reported net sales
 
42.9
%
4.2
%
12.0
%
(94.9
)%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
28.4

 
$
(0.1
)
$
28.5

Impairment charges
 
—

 
—

342.4

Restructuring charges and other termination benefits
 
—

 
—

2.0

Unusual litigation
 
—

 
(8.2
)
8.2

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
(0.9
)
0.9

Adjusted
 
$
149.9

 
$
24.9

$
113.0

As a % of reported net sales
 
52.9
%
 
8.8
%
39.8
 %
 











13


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2016
(in millions)
(unaudited)
 
 
 
 
 
 
 
Year Ended
 
December 31, 2016
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income (Loss)
Reported
$
1,115.2

$
500.6

$
62.4

$
113.7

$
(19.9
)
As a % of reported net sales
 
44.9
%
5.6
%
10.2
%
(1.8
)%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
106.6

 
$
(0.5
)
$
107.2

Impairment charges
 
—

 
—

342.4

Restructuring charges and other termination benefits
 
—

 
—

2.0

Unusual litigation
 
—

 
(8.2
)
8.2

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
(6.0
)
6.0

Adjusted
 
$
607.2

 
$
99.0

$
445.9

As a % of reported net sales
 
54.5
%
 
8.9
%
40.0
 %

14


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2017
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
 
April 1, 2017
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
582.8

$
196.6

$
16.6

$
71.4

$
83.2

As a % of reported net sales
 
33.7
%
2.8
%
12.3
%
14.3
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
12.4

 
$
(4.8
)
$
17.2

Restructuring charges and other termination benefits
 
—

 
—

23.7

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
—

1.6

Adjusted
 
$
209.0

 
$
66.6

$
125.7

As a % of reported net sales
 
35.9
%
 
11.4
%
21.6
%
 
 
Three Months Ended
 
July 1, 2017
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
604.8

$
210.0

$
18.0

$
75.7

$
110.5

As a % of reported net sales
 
34.7
%
3.0
%
12.5
%
18.3
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
12.1

 
$
(4.8
)
$
16.9

Impairment charges
 
—

 
—

4.1

Restructuring charges and other termination benefits
 
—

 
—

4.3

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
—

(2.5
)
Adjusted
 
$
222.1

 
$
70.9

$
133.3

As a % of reported net sales
 
36.7
%
 
11.7
%
22.0
%
 
 
 
 
 
 
 
Three Months Ended
 
September 30, 2017
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
598.8

$
211.4

$
13.8

$
70.4

$
129.6

As a % of reported net sales
 
35.3
%
2.3
%
11.8
%
21.6
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
12.1

 
$
(4.8
)
$
16.9

Impairment charges
 
—

 
—

0.4

Restructuring charges and other termination benefits
 
—

 
—

(0.8
)
Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
—

(2.0
)
Adjusted
 
$
223.5

 
$
65.6

$
144.1

As a % of reported net sales
 
37.3
%
 
10.9
%
24.1
%
 
 
 
 
 
 







15


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2017
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
 
December 31, 2017
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
643.5

$
225.7

$
17.5

$
61.6

$
147.6

As a % of reported net sales
 
35.1
%
2.7
%
9.6
%
22.9
 %
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
12.1

 
$
(4.8
)
$
16.9

Unusual litigation
 
—

 
10.2

(10.2
)
Restructuring charges and other termination benefits
 
—

 
—

0.2

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
(1.7
)
0.5

Adjusted
 
$
237.8

 
$
65.3

$
155.0

As a % of reported net sales
 
37.0
%
 
10.1
%
24.1
 %
 
 
 
 
 
 
 
Year Ended
 
December 31, 2017
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
2,429.9

$
843.7

$
65.9

$
279.1

$
470.9

As a % of reported net sales
 
34.7
%
2.7
%
11.5
%
19.4
 %
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
48.7

 
$
(19.2
)
$
67.9

Impairment charges
 
—

 
—

4.5

Unusual litigation
 
—

 
10.2

(10.2
)
Restructuring charges and other termination benefits
 
—

 
—

27.4

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
(1.7
)
(2.4
)
Adjusted
 
$
892.4

 
$
268.4

$
558.1

As a % of reported net sales
 
36.7
%
 
11.0
%
23.0
 %
 
 
 
 
 
 
 
Three Months Ended
 
April 1, 2017
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income (Loss)
Reported
$
354.7

$
162.1

$
10.4

$
149.3

$
(1.6
)
As a % of reported net sales
 
45.7
%
2.9
%
42.1
%
(0.5
)%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
19.8

$
(0.2
)
$
(26.5
)
$
46.6

Impairment charges
 
—

—

—

1.1

Operating results attributable to held-for-sale business*
 
0.5

—

—

0.5

Restructuring charges and other termination benefits
 
—

—

—

2.9

Adjusted
 
$
182.4

$
10.2

$
122.8

$
49.5

As a % of reported net sales
 
51.4
%
2.9
%
34.6
%
13.9
 %
 
 
 
 
 
 
* Held-for-sale business includes the European Sports Brand.
 
 
 
 
 




16


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2017
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
 
July 1, 2017
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income (Loss)
Reported
$
356.9

$
167.3

$
9.9

$
152.2

$
(5.5
)
As a % of reported net sales
 
46.9
%
2.8
%
42.6
%
(1.5
)%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
20.5

$
(0.4
)
$
(27.8
)
$
48.6

Impairment charges
 
—

—

—

3.7

Restructuring charges and other termination benefits
 
—

—

—

6.4

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

—

—

0.6

Adjusted
 
$
187.8

$
9.5

$
124.4

$
53.8

As a % of reported net sales
 
52.6
%
2.7
%
34.9
%
15.1
 %
 
 
Three Months Ended
 
September 30, 2017
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
343.0

$
157.4

$
10.3

$
141.5

$
2.0

As a % of reported net sales
 
45.9
%
3.0
%
41.3
%
0.6
 %
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
21.5

$
(0.3
)
$
(29.5
)
$
51.5

Restructuring charges and other termination benefits
 
—

—

—

3.5

Adjusted
 
$
178.9

$
10.0

$
112.0

$
57.0

As a % of reported net sales
 
52.2
%
2.9
%
32.6
%
16.6
 %
 
 
 
 
 
 
 
Three Months Ended
 
December 31, 2017
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
351.6

$
164.4

$
10.2

$
147.9

$
2.4

As a % of reported net sales
 
46.8
%
2.9
%
42.1
%
0.7
 %
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
21.7

$
(0.3
)
$
(29.5
)
$
51.4

Restructuring charges and other termination benefits
 
—

—

—

3.6

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

—

2.4

(2.0
)
Adjusted
 
$
186.1

$
9.9

$
120.8

$
55.4

As a % of reported net sales
 
52.9
%
2.8
%
34.3
%
15.8
 %
 
 
 
 
 
 

17


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2017
(in millions)
(unaudited)
 
 
 
 
 
 
 
Year Ended
 
December 31, 2017
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income (Loss)
Reported
$
1,406.2

$
651.2

$
40.8

$
590.9

$
(2.7
)
As a % of reported net sales
 
46.3
%
2.9
%
42.0
%
(0.2
)%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
83.5

$
(1.2
)
$
(113.3
)
$
198.1

Impairment charges
 
—

—

—

4.8

Operating results attributable to held-for-sale business*
 
0.5

—

—

0.5

Restructuring charges and other termination benefits
 
—

—

—

16.4

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

—

2.4

(1.4
)
Adjusted
 
$
735.2

$
39.6

$
480.0

$
215.7

As a % of reported net sales
 
52.3
%
2.8
%
34.1
%
15.3
 %
 
 
 
 
 
 
* Held-for-sale business includes the European Sports Brand.
 
 
 
 
 
 
Three Months Ended
 
April 1, 2017
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
237.6

$
95.5

$
11.1

$
21.5

$
84.0

As a % of reported net sales
 
40.2
%
4.7
%
9.0
%
35.4
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
22.4

 
$
(0.1
)
$
22.6

Impairment charges
 
—

 
—

11.1

Gain/loss on divestitures
 
—

 
—

(21.8
)
Restructuring charges and other termination benefits
 
—

 
—

5.6

Operating results attributable to held-for-sale business
 
(0.1
)
 
—

(0.1
)
Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
—

(16.1
)
Adjusted
 
$
117.8

 
$
21.4

$
85.3

As a % of reported net sales
 
49.6
%
 
9.0
%
35.9
%
 
 
 
 
 
 
 
Three Months Ended
 
July 1, 2017
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
260.0

$
119.6

$
12.7

$
11.8

$
74.8

As a % of reported net sales
 
46.0
%
4.9
%
4.5
%
28.8
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
22.5

 
$
(0.1
)
$
22.6

Unusual litigation
 
—

 
8.8

(8.8
)
Impairment charges
 
—

 
—

19.6

Gain/loss on divestitures
 
—

 
—

(1.1
)
Restructuring charges and other termination benefits
 
—

 
—

0.4

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
—

1.4

Adjusted
 
$
142.1

 
$
20.5

$
108.9

As a % of reported net sales
 
54.7
%
 
7.9
%
41.9
%

18


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2017
(in millions)
(unaudited)
 
 
 
Three Months Ended
 
September 30, 2017
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
273.0

$
120.0

$
12.4

$
22.5

$
81.7

As a % of reported net sales
 
44.0
%
4.6
%
8.3
%
29.9
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
21.2

 
$
(0.1
)
$
21.3

Impairment charges
 
—

 
—

4.0

Restructuring charges and other termination benefits
 
—

 
—

0.2

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
—

(0.9
)
Adjusted
 
$
141.2

 
$
22.4

$
106.3

As a % of reported net sales
 
51.7
%
 
8.2
%
39.0
%
 
 
Three Months Ended
 
December 31, 2017
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
283.8

$
119.5

$
17.9

$
35.4

$
65.6

As a % of reported net sales
 
42.1
%
6.3
%
12.5
%
23.1
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
21.7

 
$
0.3

$
21.3

Unusual litigation
 
—

 
(10.0
)
10.0

Impairment charges
 
—

 
—

0.1

Gain/loss on divestitures
 
—

 
—

(0.3
)
Restructuring charges and other termination benefits
 
—

 
—

0.2

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
—

0.7

Adjusted
 
$
141.2

 
$
25.7

$
97.6

As a % of reported net sales
 
49.7
%
 
9.1
%
34.4
%
 
 
 
 
 
 
 
Year Ended
 
December 31, 2017
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
1,054.4

$
454.6

$
54.1

$
91.2

$
306.1

As a % of reported net sales
 
43.1
%
5.1
%
8.6
%
29.0
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
87.8

 
$
—

$
87.8

Unusual litigation
 
—

 
(1.2
)
1.2

Impairment charges
 
—

 
—

34.8

Gain/loss on divestitures
 
—

 
—

(23.2
)
Restructuring charges and other termination benefits
 
—

 
—

6.4

Operating results attributable to held-for-sale business
 
(0.1
)
 
—

(0.1
)
Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
—

(14.9
)
Adjusted
 
$
542.3

 
$
90.0

$
398.1

As a % of reported net sales
 
51.4
%
 
8.5
%
37.8
%


19


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2018
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
 
March 31, 2018
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
601.6

$
205.9

$
15.2

$
71.5

$
118.6

As a % of reported net sales
 
34.2
%
2.5
%
11.9
%
19.7
 %
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
10.5

 
$
(4.7
)
$
15.2

Restructuring charges and other termination benefits
 
—

 
—

0.4

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
—

0.1

Adjusted
 
$
216.4

 
$
66.8

$
134.3

As a % of reported net sales
 
36.0
%
 
11.1
%
22.3
 %
 
 
Three Months Ended
 
June 30, 2018
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
596.9

$
202.5

$
66.4

$
72.4

$
64.6

As a % of reported net sales
 
33.9
%
11.1
%
12.1
%
10.8
 %
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
10.6

$
—

$
(4.8
)
$
15.3

Impairment charges
 
—

—

—

0.6

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

(50.0
)
—

48.5

Adjusted
 
$
213.1

$
16.4

$
67.6

$
129.0

As a % of reported net sales
 
35.7
%
2.7
%
11.3
%
21.6
 %
 
 
 
 
 
 
 
Three Months Ended
 
September 29, 2018
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income (Loss)
Reported
$
596.2

$
189.5

$
13.8

$
73.0

$
(119.0
)
As a % of reported net sales
 
31.8
%
2.3
%
12.2
%
(20.0
)%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
10.6

 
$
(4.7
)
$
15.3

Impairment charges
 
—

 
—

221.7

Adjusted
 
$
200.1

 
$
68.3

$
118.0

As a % of reported net sales
 
33.6
%
 
11.4
%
19.8
 %

20


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2018
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
 
December 31, 2018
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
616.9

$
191.1

$
15.3

$
65.4

$
110.2

As a % of reported net sales
 
31.0
%
2.5
%
10.6
%
17.9
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
5.5

 
$
(4.7
)
$
10.2

Impairment charges
 
—

 
—

0.3

Adjusted
 
$
196.6

 
$
60.7

$
120.7

As a % of adjusted net sales
 
31.9
%
 
9.8
%
19.6
%
 
 
 
 
 
 
 
Year Ended
 
December 31, 2018
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
2,411.6

$
789.0

$
110.7

$
282.3

$
174.4

As a % of reported net sales
 
32.7
%
4.6
%
11.7
%
7.2
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
37.2

$
—

$
(18.9
)
$
56.0

Impairment charges
 
—

—

—

222.6

Restructuring charges and other termination benefits
 
—

—

—

0.4

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

(50.0
)
—

48.6

Adjusted
 
$
826.2

$
60.7

$
263.4

$
502.0

As a % of reported net sales
 
34.3
%
2.5
%
10.9
%
20.8
%
 
 
 
 
 
 
 
Three Months Ended
 
March 31, 2018
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
377.8

$
185.9

$
10.6

$
162.4

$
12.3

As a % of reported net sales
 
49.2
%
2.8
%
43.0
%
3.3
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
22.5

$
(0.3
)
$
(29.7
)
$
52.5

Restructuring charges and other termination benefits
 
—

—

—

0.6

Adjusted
 
$
208.4

$
10.3

$
132.7

$
65.4

As a % of reported net sales
 
55.2
%
2.7
%
35.1
%
17.3
%


21


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2018
(in millions)
(unaudited)
 
 
 
Three Months Ended
 
June 30, 2018
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
357.9

$
173.2

$
11.2

$
156.5

$
4.0

As a % of reported net sales
 
48.4
%
3.1
%
43.7
%
1.1
 %
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
21.8

$
(0.3
)
$
(28.4
)
$
50.4

Impairment charges
 
—

—

—

1.0

Restructuring charges and other termination benefits
 
—

—

—

0.5

Adjusted
 
$
195.0

$
10.9

$
128.1

$
55.9

As a % of reported net sales
 
54.5
%
3.0
%
35.8
%
15.6
 %
 
 
 
 
 
 
 
Three Months Ended
 
September 29, 2018
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income (Loss)
Reported
$
334.2

$
158.6

$
10.3

$
134.9

$
(4.7
)
As a % of reported net sales
 
47.5
%
3.1
%
40.3
%
(1.4
)%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
21.2

$
(0.2
)
$
(27.9
)
$
49.4

Impairment charges
 
—

—

—

0.1

Unusual litigation
 
—

—

(1.4
)
1.4

Restructuring charges and other termination benefits
 
—

—

—

18.0

Adjusted
 
$
179.8

$
10.1

$
105.6

$
64.2

As a % of reported net sales
 
53.8
%
3.0
%
31.6
%
19.2
 %
 
 
 
 
 
 
 
Three Months Ended
 
December 31, 2018
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income (Loss)
Reported
$
329.4

$
151.0

$
11.8

$
145.0

$
(4.8
)
As a % of reported net sales
 
45.8
%
3.6
%
44.0
%
(1.5
)%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
20.9

$
(0.2
)
$
(25.5
)
$
46.6

Impairment charges
 
—

—

—

0.7

Unusual litigation
 
—

—

(1.8
)
1.8

Restructuring charges and other termination benefits
 
—

—

—

(1.7
)
Adjusted
 
$
171.9

$
11.6

$
117.7

$
42.6

As a % of reported net sales
 
52.2
%
3.5
%
35.7
%
12.9
 %
 
 
 
 
 
 
 
 
 
 
 
 



22


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2018
(in millions)
(unaudited)
 
 
 
 
 
 
 
Year Ended
 
December 31, 2018
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
1,399.3

$
668.7

$
43.9

$
598.8

$
6.8

As a % of reported net sales
 
47.8
%
3.1
%
42.8
%
0.5
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
86.4

$
(1.0
)
$
(111.5
)
$
198.9

Impairment charges
 
—

—

—

1.8

Unusual litigation
 
—

—

(3.2
)
3.2

Restructuring charges and other termination benefits
 
—

—

—

17.4

Adjusted
 
$
755.1

$
42.9

$
484.1

$
228.1

As a % of reported net sales
 
54.0
%
3.1
%
34.6
%
16.3
%
 
 
 
 
 
 
 
Three Months Ended
 
March 31, 2018
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
237.6

$
100.9

$
12.6

$
24.1

$
61.2

As a % of reported net sales
 
42.5
%
5.3
%
10.1
%
25.8
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
20.9

 
 
$
20.9

Gain/loss on divestitures
 
—

 
 
(1.2
)
Restructuring charges and other termination benefits
 
—

 
 
0.2

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
 
4.0

Adjusted
 
$
121.8

 
 
$
85.1

As a % of reported net sales
 
51.2
%
 
 
35.8
%
 
 
Three Months Ended
 
June 30, 2018
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
231.6

$
95.3

$
14.4

$
22.6

$
53.6

As a % of reported net sales
 
41.1
%
6.2
%
9.8
%
23.1
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
20.6

 
$
(0.2
)
$
20.8

Acquisition and integration-related charges and contingent
consideration adjustments
 
$
—

 
$
—

$
4.7

Adjusted
 
$
115.9

 
$
22.4

$
79.1

As a % of reported net sales
 
50.0
%
 
9.7
%
34.1
%

23


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
QUARTERS AND FISCAL YEAR 2018
(in millions)
(unaudited)
 
 
 
Three Months Ended
 
September 29, 2018
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
202.8

$
76.8

$
19.5

$
20.7

$
36.1

As a % of reported net sales
 
37.9
%
9.6
%
10.2
%
17.8
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
20.6

 
$
(0.1
)
$
20.8

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
—

0.5

Adjusted
 
$
97.4

 
$
20.6

$
57.4

As a % of reported net sales
 
48.1
%
 
10.1
%
28.3
%
 
 
Three Months Ended
 
December 31, 2018
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
248.8

$
100.9

$
17.5

$
21.1

$
63.7

As a % of reported net sales
 
40.6
%
7.0
%
8.5
%
25.6
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
21.0

 
$
(0.2
)
$
21.1

Gain/loss on divestitures
 
—

 
—

(0.2
)
Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
—

(1.2
)
Adjusted
 
$
121.9

 
$
20.9

$
83.4

As a % of reported net sales
 
49.0
%
 
8.4
%
33.5
%
 
 
 
 
 
 
 
Year Ended
 
December 31, 2018
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
920.8

$
373.9

$
64.0

$
88.5

$
214.6

As a % of reported net sales
 
40.6
%
6.9
%
9.6
%
23.3
%
Adjustments:
 
 
 
 
 
Amortization expense primarily related to acquired intangible assets
 
$
83.1

 
$
(0.5
)
$
83.6

Gain/loss on divestitures
 
—

 
—

(1.4
)
Restructuring charges and other termination benefits
 
—

 
—

0.2

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
—

8.0

Adjusted
 
$
457.0

 
$
88.0

$
305.0

As a % of reported net sales
 
49.6
%
 
9.6
%
33.1
%



24


Table I (continued)
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
FIRST QUARTER 2019
(in millions)
(unaudited)
 
 
 
 
 
 
 
Three Months Ended
 
March 30, 2019
Consumer Self-Care Americas
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating
Income
Reported
$
581.8

$
184.0

$
15.6

$
73.3

$
94.2

As a % of reported net sales
 
31.6
%
2.7
%
12.6
%
16.2
%
Adjustments:
 
 
 
 
 
Amortization expense related primarily to acquired intangible assets
 
$
5.4

 
$
(4.7
)
$
10.1

Unusual litigation
 
—

 
(1.2
)
1.2

Impairment charges
 
—

 
—

4.1

Restructuring charges and other termination benefits
 
—

 
—

0.8

Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
—

(4.1
)
Adjusted
 
$
189.4

 
$
67.4

$
106.3

As a % of reported net sales
 
32.5
%
 
11.6
%
18.3
%
 
 
 
 
 
 
 

 
 
Three Months Ended
 
March 30, 2019
Consumer Self-Care International
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
350.8

$
168.4

$
10.3

$
149.4

$
8.1

As a % of reported net sales
 
48.0
%
2.9
%
42.6
%
2.3
%
Adjustments:
 
 
 
 
 
Amortization expense related primarily to acquired intangible assets
 
$
20.8

$
(0.1
)
$
(24.2
)
$
45.1

Restructuring charges and other termination benefits
 
—

—

—

0.6

Unusual litigation
 
—

—

(0.3
)
0.3

Adjusted
 
$
189.2

$
10.2

$
124.9

$
54.1

As a % of reported net sales
 
53.9
%
2.9
%
35.6
%
15.4
%
 
 
 
 
 
 
 
 
Three Months Ended
 
March 30, 2019
Prescription Pharmaceuticals
Net
Sales
Gross
Profit
R&D Expense
DSG&A Expense
Operating Income
Reported
$
241.9

$
96.4

$
14.3

$
21.6

$
60.6

As a % of reported net sales
 
39.9
%
5.9
%
8.9
%
25.1
%
Adjustments:
 
 
 
 
 
Amortization expense related primarily to acquired intangible assets
 
$
21.2

 
$
(0.1
)
$
21.3

Gain/loss on divestitures
 
—

 
—

(1.3
)
Acquisition and integration-related charges and contingent
consideration adjustments
 
—

 
—

1.3

Adjusted
 
$
117.6

 
$
21.5

$
81.9

As a % of reported net sales
 
48.6
%
 
8.9
%
33.9
%
 
 
 

25