XML 20 R10.htm IDEA: XBRL DOCUMENT v3.19.2
Revenue from Contracts with Customers Revenue from Contracts with Customers (Notes)
 6 Months Ended
Jun. 28, 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
1,029.0

 
23.2

 
29.5

 
1,081.7

Payments or credits
(999.2
)
 
(22.5
)
 
(31.1
)
 
(1,052.8
)
Balance as of June 29, 2018
$
357.2

 
$
35.2

 
$
13.1

 
$
405.5

 
 
 
 
 
 
 
 
Balance as of December 28, 2018
$
354.3

 
$
34.0

 
$
17.1

 
$
405.4

Provisions
1,214.3

 
11.7

 
34.7

 
1,260.7

Payments or credits
(1,240.2
)
 
(15.6
)
 
(35.9
)
 
(1,291.7
)
Balance as of June 28, 2019
$
328.4

 
$
30.1

 
$
15.9

 
$
374.4



Product sales transferred to customers at a point in time and over time were as follows:
 
Three Months Ended
 
Six Months Ended
 
June 28,
2019
 
June 29,
2018
 
June 28,
2019
 
June 29,
2018
Product sales transferred at a point in time
82.9
%
 
84.0
%
 
81.8
%
 
82.7
%
Product sales transferred over time
17.1
%
 
16.0
%
 
18.2
%
 
17.3
%


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 were unsatisfied or partially unsatisfied as of June 28, 2019:
Remainder of Fiscal 2019
$
81.5

Fiscal 2020
154.2

Fiscal 2021
60.3

Fiscal 2022
9.2

Thereafter
6.2



Costs to fulfill a contract

As of June 28, 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, were $27.5 million and $28.4 million, respectively, and are classified in property, plant and equipment, net, on the unaudited condensed consolidated balance sheets. The associated depreciation expense recognized during the six months ended June 28, 2019 and June 29, 2018 was $3.4 million and $6.8 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 was as follows:
 
Three Months Ended
 
Six Months Ended
 
June 28,
2019
 
June 29,
2018
 
June 28,
2019
 
June 29,
2018
Royalty revenue
$
19.4

 
$
21.6

 
$
36.8

 
$
29.6



Royalty revenue for the three and six months ended June 29, 2018 reflects royalty revenue for the period subsequent to the Company's February 2018 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:
 
June 28,
2019
 
December 28,
2018
Accrued and other current liabilities
$
20.3

 
$
20.4

Other liabilities
16.9

 
15.1

Contract liabilities
$
37.2

 
$
35.5


Revenue recognized during the six months ended June 28, 2019 from amounts included in contract liabilities at the beginning of the period was $9.2 million.