Revenue from Contracts with Customers (Notes)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

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

On November 16, 2020, the Debtors received final approval from the Bankruptcy Court to continue customer programs during the pendency of the Chapter 11 Cases. 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	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
Provisions	2,065.9		28.9		59.5		2,154.3
Provision for Medicaid lawsuit (Note 19) (1)	536.0		—		—		536.0
Payments or credits	(2,701.2)		(30.7)		(60.4)		(2,792.3)
Balance as of December 25, 2020	196.5		26.6		12.3		235.4
Provisions	2,087.1		23.7		55.2		2,166.0
Payments or credits	(2,041.8)		(28.8)		(58.0)		(2,128.6)
Balance as of December 31, 2021	$	241.8	$	21.5	$	9.5	$	272.8

(1)Excludes the $105.1 million that is reflected as a component of operating expenses as it represents a pre-acquisition contingency related to the portion of the liability that arose from sales of Acthar Gel prior to the Company's acquisition of Questcor in August 2014. See Note 19 for further detail on the status of the Medicaid lawsuit.

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

	Fiscal Year
	2021		2020		2019
Product sales transferred at a point in time	79.4	%	78.9	%	81.8	%
Product sales transferred over time	20.6		21.1		18.2

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 31, 2021:

Fiscal 2022	$	112.1
Fiscal 2023	69.7
Thereafter	14.7

Costs to fulfill a contract

For both December 31, 2021 and December 25, 2020, 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 and reflected in property, plant and equipment, net, on the consolidated balance sheets was $25.8 million. The associated depreciation expense recognized during fiscal 2021 and 2020 was $6.1 million and $5.5 million, respectively.

Product Royalty Revenues

  The Company licenses certain rights to Amitiza to third parties in exchange for royalties on net sales of the product. The Company receives a double-digit royalty based on a percentage of the gross profits of the licensed products sold during the term of the agreements. The Company recognizes such royalty revenue as the related sales occur. The associated royalty revenue recognized during fiscal 2021, 2020 and 2019 was $102.4 million, $70.3 million and $81.3 million, respectively.