Revenue from Contracts with Customers (Notes)

12 Months Ended

Dec. 27, 2019

Revenue from Contract with Customer [Abstract]



4.	Revenue from Contracts with Customers

Product Sales Revenue

See Note 21 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	2,281.3			39.3			66.9			2,387.5
Payments or credits	(2,254.4		)	(39.8		)	(64.5		)	(2,358.7		)
Balance as of December 28, 2018	354.3			34.0			17.1			405.4
Provisions	2,347.3			22.2			68.2			2,437.7
Payments or credits	(2,405.8		)	(27.8		)	(72.1		)	(2,505.7		)
Balance as of December 27, 2019	$	295.8		$	28.4		$	13.2		$	337.4

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



	Fiscal Year
	2019		2018
Product sales transferred at a point in time	81.8	%	82.9	%
Product sales transferred over time	18.2		17.1

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 December 27, 2019:



Fiscal 2020	$	191.5
Fiscal 2021	95.5
Fiscal 2022	35.7
Thereafter	6.2

Costs to fulfill a contract

As of December 27, 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 $26.5 million and $28.4 million, respectively, and was classified in property, plant and equipment, net, on the consolidated balance sheets. The associated depreciation expense recognized during fiscal 2019 and 2018 was $6.7 million and $7.4 million, respectively.

Product Royalty Revenues

As part of the Company's acquisition of Sucampo Pharmaceuticals, Inc. ("Sucampo") in fiscal 2018, as discussed in further detail in Note 6, it acquired an arrangement under which 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 18.0% to 26.0% with the royalty rate resetting every year. The associated royalty revenue recognized during both fiscal 2019 and 2018 was $81.3 million.

Contract Liabilities

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



	December 27, 2019		December 28, 2018
Accrued and other current liabilities	$	5.6	$	20.4
Other liabilities	0.6		15.1
Contract liabilities	$	6.2	$	35.5

Revenue recognized during fiscal 2019 and 2018 from amounts included in contract liabilities at the beginning of the period was approximately $13.7 million and $12.5 million inclusive of the Company's wholly owned subsidiary BioVectra Inc. ("BioVectra), prior to the completion of the sale of this business in November 2019.