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