Revenue Recognition

3 Months Ended

Apr. 02, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

Revenue is recognized when or as a customer obtains control of promised products. The amount of revenue recognized reflects the consideration we expect to be entitled to receive in exchange for these products.

Disaggregation of Revenue

We generated net sales in the following geographic locations(1) (in millions):

	Three Months Ended
	April 2, 2022		April 3, 2021
U.S.	$	683.1	$	611.3
Europe(2)	351.7		355.3
All other countries(3)	39.7		43.4
Total net sales	$	1,074.5	$	1,010.0

(1) The net sales by geographic locations is derived from the location of the entity that sells to a third party.

(2) Includes Ireland net sales of $6.6 million for the three months ended April 2, 2022, and $4.5 million for the three months ended April 3, 2021.

(3) Includes net sales generated primarily in Mexico, Australia and Canada.

Product Category

The following is a summary of our net sales by category (in millions):

	Three Months Ended
	April 2, 2022		April 3, 2021
CSCA(1)
Upper respiratory	$	152.8	$	118.6
Nutrition	127.2		92.2
Digestive health	118.6		118.4
Pain and sleep-aids	102.9		95.1
Oral care	70.4		75.0
Healthy lifestyle	68.2		76.7
Skincare and personal hygiene	48.5		55.3
Vitamins, minerals, and supplements	7.7		7.8
Other CSCA(2)	13.7		1.4
Total CSCA	710.0		640.5
CSCI
Skincare and personal hygiene	101.9		107.0
Upper respiratory	61.4		42.9
Pain and sleep-aids	51.7		49.0
Vitamins, minerals, and supplements	47.9		59.0
Healthy lifestyle	42.7		50.3
Oral care	24.4		25.5
Digestive health	9.2		8.5
Other CSCI(3)	25.3		27.3
Total CSCI	364.5		369.5
Total net sales	$	1,074.5	$	1,010.0

(1) Includes net sales from our OTC contract manufacturing business.

(2) Consists primarily of product sales and royalty income related to supply and distribution agreements, diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales.

(3) Consists primarily of liquid licensed products, our distribution business and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales.

While the majority of revenue is recognized at a point in time, certain of our product revenue is recognized over time. Customer contracts recognized over time exist predominately in contract manufacturing arrangements, which occur in both the CSCA and CSCI segments. Contract manufacturing revenue was $70.8 million for the three months ended April 2, 2022, and $63.1 million for the three months ended April 3, 2021.

We also recognize a portion of the store brand OTC product revenues in the CSCA segment over time; however, the timing difference between over time and point in time revenue recognition for store brand contracts is not significant due to the short time period between the customization of the product and shipment or delivery.

Contract Balances

The following table provides information about contract assets from contracts with customers (in millions):

	Balance Sheet Location	April 2, 2022		December 31, 2021
Short-term contract assets	Prepaid expenses and other current assets	$	32.5	$	40.2