Acquisitions, License Agreements and Other Investments (Tables)

9 Months Ended

Sep. 28, 2018

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following amounts represent the preliminary allocations of the fair value of the identifiable assets acquired and liabilities assumed for the Sucampo Acquisition, including preliminary goodwill, intangible assets and the related deferred tax balances. The Company expects to complete its valuation analysis and finalize deferred tax balances as of the acquisition date no later than twelve months from the date of the acquisition. The changes in the purchase price allocation and preliminary goodwill based on the final valuation may include, but are not limited to, finalization of working capital settlements, the impact of U.S. state tax rates in determining the deferred tax balances and changes in assumptions utilized in the preliminary valuation report.

Cash and cash equivalents	$	149.6
Accounts receivable	35.7
Inventory	153.2
Intangible assets	919.5
Goodwill	244.7
Other current and non-current assets	25.9
Total assets acquired	1,528.6
Current liabilities	108.3
Deferred tax liabilities, net (non-current)	170.2
Debt	366.3
Other noncurrent liabilities	36.2
Total liabilities assumed	681.0
Net assets acquired	$	847.6

Business Combination, Reconciliation of Total Consideration

The following is a reconciliation of the total consideration to net assets acquired:

Total consideration, net of cash	$	698.0
Plus: cash assumed in acquisition	149.6
Total consideration/net assets acquired	$	847.6

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

Intangible assets acquired consist of the following:

	Amount		Amortization Period	Discount Rate
Completed technology - Amitiza	$	634.0	9 years	14.0%
Completed technology - Rescula	11.0		8 years	14.0%
In-process research and development - VTS-270	274.5		Non-Amortizable	15.0%

Business Combination, Earnings by Acquiree Allocation

Financial results - The amount of net sales and loss included in the Company's results for the periods presented were as follows:

	Three Months Ended					Nine Months Ended
	September 28, 2018			September 29, 2017		September 28, 2018			September 29, 2017
Net sales	$	50.7		$	—	$	124.5		$	—
Operating loss	(32.2		)	—		(99.9		)	—

The following was included within cost of sales for the periods presented:

	Three Months Ended				Nine Months Ended
	September 28, 2018		September 29, 2017		September 28, 2018		September 29, 2017
Intangible asset amortization	$	18.0	$	—	$	45.0	$	—
Inventory fair value step-up expense	31.0		—		77.5		—