XML 46 R9.htm IDEA: XBRL DOCUMENT v3.20.1
Revenue from Contracts with Customers Revenue from Contracts with Customers (Notes)
 3 Months Ended
Mar. 27, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block]
2.
Revenue from Contracts with Customers
Product Sales Revenue

See Note 13 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 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

 
 
 
 
 
 
 
 
Balance as of December 27, 2019
$
295.8

 
$
28.4

 
$
13.2

 
$
337.4

Provisions
457.8

 
3.8

 
13.7

 
475.3

Payments or credits
(498.8
)
 
(6.1
)
 
(15.9
)
 
(520.8
)
Balance as of March 27, 2020
$
254.8

 
$
26.1

 
$
11.0

 
$
291.9



Product sales transferred to customers at a point in time and over time were as follows:
 
Three Months Ended
 
March 27,
2020
 
March 29,
2019
Product sales transferred at a point in time
78.5
%
 
80.7
%
Product sales transferred over time
21.5

 
19.3



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 March 27, 2020:
Remainder of Fiscal 2020
$
148.5

Fiscal 2021
102.7

Fiscal 2022
37.7

Fiscal 2023
8.1

Thereafter
0.3



Costs to fulfill a contract

As of March 27, 2020 and December 27, 2019, 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 $28.4 million and $26.5 million, respectively, and were classified in property, plant and equipment, net, on the unaudited condensed consolidated balance sheets. The associated depreciation expense recognized during both the three months ended March 27, 2020 and March 29, 2019 was $1.5 million.


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 18.0% to 26.0% with the royalty rate resetting every year. The associated royalty revenue recognized was as follows:
 
Three Months Ended
 
March 27,
2020
 
March 29,
2019
Royalty revenue
$
15.6

 
$
17.4




Contract Liabilities
The following table reflects the balance of the Company's contract liabilities at the end of each period:
 
March 27,
2020
 
December 27,
2019
Accrued and other current liabilities
$
4.7

 
$
5.6

Other liabilities
0.6

 
0.6

Contract liabilities
$
5.3

 
$
6.2


Revenue recognized during the three months ended March 27, 2020 and March 29, 2019 from amounts included in contract liabilities at the beginning of the period was $2.3 million and $4.5 million, respectively, inclusive of the Company's wholly owned subsidiary BioVectra Inc. ("BioVectra), prior to the completion of the sale of this business in November 2019.