Revenue from Contracts with Customers Revenue from Contracts with Customers (Notes)

3 Months Ended

Mar. 29, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

3. Revenue from Contracts with Customers

Product Sales Revenue

See Note 16 for presentation of the Company's net sales by product family.

Reserves for variable consideration

The following table reflects activity in the Company's sales reserve accounts:

	Rebates and Chargebacks			Product Returns			Other Sales Deductions			Total
Balance as of December 29, 2017	$	327.4		$	34.5		$	14.7		$	376.6
Provisions	489.5			13.8			14.3			517.6
Payments or credits	(744.6		)	(13.3		)	(15.2		)	(773.1		)
Balance as of March 30, 2018	$	72.3		$	35.0		$	13.8		$	121.1
Balance as of December 28, 2018	$	354.3		$	34.0		$	17.1		$	405.4
Provisions	602.9			6.2			17.7			626.8
Payments or credits	(805.8		)	(8.2		)	(12.4		)	(826.4		)
Balance as of March 29, 2019	$	151.4		$	32.0		$	22.4		$	205.8

Product sales transferred to customers at a point in time and over time are as follows:

	Three Months Ended
	March 29, 2019		March 30, 2018
Product sales transferred at a point in time	80.7	%	81.3	%
Product sales transferred over time	19.3	%	18.7	%

Transaction price allocated to the remaining performance obligations

The following table includes estimated revenue from contracts extending greater than one year for certain of the Company's hospital products that are expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of March 29, 2019:

Remainder of Fiscal 2019	$	122.5
Fiscal 2020	148.8
Fiscal 2021	55.3
Fiscal 2022	9.2
Thereafter	6.2

Costs to fulfill a contract

As of March 29, 2019 and December 28, 2018, the total net book value of the devices used in the Company's portfolio of drug-device combination products, which are used in satisfying future performance obligations, was $28.4 million, as of both periods, and are classified in property, plant and equipment, net, on the unaudited condensed consolidated balance sheets. The associated depreciation expense recognized during the three months ended March 29, 2019 and March 30, 2018 was $1.5 million and $1.6 million, respectively.

Product Royalty Revenues

The Company licenses certain rights to Amitiza to a third party in exchange for royalties on net sales of the product. The Company recognizes such royalty revenue as the related sales occur. The royalty rates consist of several tiers ranging from 18% to 26% with the royalty rate resetting every year. The associated royalty revenue recognized during the three months ended March 29, 2019 was $17.4 million. The three months ended March 30, 2018 included royalty revenue of $8.0 million, for the period subsequent to the Company's acquisition of Sucampo Pharmaceuticals, Inc. ("Sucampo Acquisition").

Contract Liabilities

The following table reflects the balance of the Company's contract liabilities at the end of the respective periods:

	March 29, 2019		December 28, 2018
Accrued and other current liabilities	$	20.0	$	20.4
Other liabilities	15.7		15.1
Contract liabilities	$	35.7	$	35.5

Revenue recognized during the three months ended March 29, 2019 from amounts included in contract liabilities at the beginning of the period was approximately $4.5 million.