10-Q 1 agn-10q_20150930.htm 10-Q agn-10q_20150930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

OR

o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

 

 

Commission

File Number

 

 

Exact name of registrant as specified in its charter,

principal office and address and telephone number

 

 

State of incorporation

or organization

 

 

I.R.S. Employer

Identification No.

 

001-36867

 

Allergan plc

Clonshaugh Business and Technology Park

Coolock, Dublin, D17 E400, Ireland

(862) 261-7000

 

Ireland

 

98-1114402

 

 

 

 

 

 

 

001-36887

 

Warner Chilcott Limited

Cannon’s Court 22

 

Bermuda

 

98-0496358

 

 

Victoria Street

 

 

 

 

 

 

Hamilton HM 12

 

 

 

 

 

 

Bermuda

 

 

 

 

 

 

(441) 295-2244

 

 

 

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:

 

Allergan plc

 

YES    x

 

NO    ¨

Warner Chilcott Limited

 

YES    x

 

NO    ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

 

Allergan plc

 

YES    x

 

NO    ¨

Warner Chilcott Limited

 

YES    x

 

NO    ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Allergan plc

Large accelerated filer

x

Accelerated filer

¨

 

Non-accelerated filer (Do not check if a smaller reporting company)

¨

Smaller reporting company

¨

 

 

 

 

 

Warner Chilcott Limited

Large accelerated filer

¨

Accelerated filer

¨

 

Non-accelerated filer (Do not check if a smaller reporting company)

x

Smaller reporting company

¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

 

Allergan plc

 

YES    ¨

 

NO    x

Warner Chilcott Limited

 

YES    ¨

 

NO    x

Number of shares of Allergan plc’s Ordinary Shares outstanding on October 29, 2015: 394,124,530. There is no trading market for securities of Warner Chilcott Limited, all of which are indirectly wholly-owned by Allergan plc.

 

This Quarterly Report on Form 10-Q is a combined report being filed separately by two different registrants: Allergan plc and Warner Chilcott Limited. Warner Chilcott Limited is an indirect wholly-owned subsidiary of Allergan plc. The information in this Quarterly Report on Form 10-Q is equally applicable to Allergan plc and Warner Chilcott Limited, except where otherwise indicated. Warner Chilcott Limited meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and, to the extent applicable, is therefore filing this form with a reduced disclosure format.

 

 

 

 


 

TABLE OF CONTENTS

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2015

 

 

 

 

PAGE

PART I. FINANCIAL INFORMATION

 

Item 1.

 

Consolidated Financial Statements (unaudited)

3

 

 

Consolidated Balance Sheets of Allergan plc as of September 30, 2015 and December 31, 2014

3

 

 

Consolidated Statements of Operations of Allergan plc for the three and nine months ended September 30, 2015 and September 30, 2014

4

 

 

Consolidated Statements of Comprehensive Income / (Loss) of Allergan plc for the three and nine months ended September 30, 2015 and September 30, 2014

5

 

 

Consolidated Statements of Cash Flows of Allergan plc for the nine months ended September 30, 2015 and 2014

6

 

 

Consolidated Balance Sheets of Warner Chilcott Limited as of September 30, 2015 and December 31, 2014

7

 

 

Consolidated Statements of Operations of Warner Chilcott Limited for the three and nine months ended September 30, 2015 and September 30, 2014

8

 

 

Consolidated Statements of Comprehensive Income / (Loss) of Warner Chilcott Limited for the three and nine months ended September 30, 2015 and September 30, 2014

9

 

 

Consolidated Statements of Cash Flows of Warner Chilcott Limited for the nine months ended September 30, 2015 and 2014

10

 

 

Notes to Consolidated Financial Statements

11

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

83

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

114

Item 4.

 

Controls and Procedures

115

PART II. OTHER INFORMATION

 

Item 1.

 

Legal Proceedings

117

Item 1A.

 

Risk Factors

117

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

117

Item 6.

 

Exhibits

117

 

 

Signatures

118

2


 

PART I. FINANCIAL INFORMATION

 

ITEM 1.

CONSOLIDATED FINANCIAL STATEMENTS

ALLERGAN PLC

CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions, except par value)

 

 

 

September 30,

 

 

December 31,

 

 

 

2015

 

 

2014

 

ASSETS

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,063.9

 

 

$

250.0

 

Marketable securities

 

 

7.0

 

 

 

1.0

 

Accounts receivable, net

 

 

2,143.2

 

 

 

1,107.9

 

Inventories

 

 

1,285.4

 

 

 

976.7

 

Prepaid expenses and other current assets

 

 

748.6

 

 

 

478.8

 

Current assets held for sale

 

 

3,802.1

 

 

 

3,819.2

 

Deferred tax assets

 

 

6,608.5

 

 

 

477.0

 

Total current assets

 

 

16,658.7

 

 

 

7,110.6

 

Property, plant and equipment, net

 

 

1,569.9

 

 

 

283.4

 

Investments and other assets

 

 

498.3

 

 

 

153.3

 

Non current assets held for sale

 

 

10,573.7

 

 

 

8,213.8

 

Deferred tax assets

 

 

67.2

 

 

 

34.7

 

Product rights and other intangibles

 

 

67,133.4

 

 

 

16,096.6

 

Goodwill

 

 

46,315.1

 

 

 

20,865.6

 

Total assets

 

$

142,816.3

 

 

$

52,758.0

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

4,513.5

 

 

$

2,995.7

 

Income taxes payable

 

 

84.7

 

 

 

33.9

 

Current portion of long-term debt and capital leases

 

 

2,035.4

 

 

 

693.4

 

Deferred revenue

 

 

32.9

 

 

 

17.8

 

Current liabilities held for sale

 

 

1,449.5

 

 

 

1,465.7

 

Deferred tax liabilities

 

 

17.0

 

 

 

41.0

 

Total current liabilities

 

 

8,133.0

 

 

 

5,247.5

 

 

 

 

 

 

 

 

 

 

Long-term debt and capital leases

 

 

40,648.1

 

 

 

14,837.7

 

Deferred revenue

 

 

26.8

 

 

 

26.3

 

Other long-term liabilities

 

 

1,135.1

 

 

 

227.0

 

Long-term liabilities held for sale

 

 

639.9

 

 

 

540.7

 

Other taxes payable

 

 

760.8

 

 

 

789.5

 

Deferred tax liabilities

 

 

13,992.5

 

 

 

2,753.8

 

Total liabilities

 

 

65,336.2

 

 

 

24,422.5

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Preferred shares, $0.0001 par value per share, 5.1 million shares authorized,

 

 

 

 

 

 

 

 

5.1 million and zero shares issued and outstanding, respectively

 

 

4,929.7

 

 

 

-

 

Ordinary shares; $0.0001 par value per share; 1,000.0 million shares

   authorized, 394.0 million and 265.9 million shares issued and

   outstanding, respectively

 

 

-

 

 

 

-

 

Additional paid-in capital

 

 

68,241.4

 

 

 

28,994.7

 

Retained Earnings / (accumulated deficit)

 

 

4,347.9

 

 

 

(198.2

)

Accumulated other comprehensive (loss)

 

 

(45.3

)

 

 

(465.4

)

Total shareholders’ equity

 

 

77,473.7

 

 

 

28,331.1

 

Noncontrolling interest

 

 

6.4

 

 

 

4.4

 

Total equity

 

 

77,480.1

 

 

 

28,335.5

 

Total liabilities and equity

 

$

142,816.3

 

 

$

52,758.0

 

 

See accompanying Notes to Consolidated Financial Statements.

3


 

ALLERGAN PLC

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in millions, except per share amounts)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Net revenues

 

$

4,088.9

 

 

$

2,150.8

 

 

$

10,873.5

 

 

$

4,323.3

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales (excludes amortization and impairment of

   acquired intangibles including product rights)

 

 

1,242.9

 

 

 

1,183.1

 

 

 

3,699.9

 

 

 

2,371.4

 

Research and development

 

 

1,260.5

 

 

 

276.6

 

 

 

1,927.9

 

 

 

368.6

 

Selling and marketing

 

 

721.8

 

 

 

540.2

 

 

 

2,130.4

 

 

 

799.3

 

General and administrative

 

 

351.4

 

 

 

422.9

 

 

 

1,222.7

 

 

 

740.4

 

Amortization

 

 

1,560.2

 

 

 

705.0

 

 

 

3,866.1

 

 

 

1,192.2

 

In-process research and development impairments

 

 

300.0

 

 

 

305.0

 

 

 

497.6

 

 

 

320.0

 

Asset sales and impairments, net

 

 

(4.4

)

 

 

-

 

 

 

3.1

 

 

 

(5.3

)

Total operating expenses

 

 

5,432.4

 

 

 

3,432.8

 

 

 

13,347.7

 

 

 

5,786.6

 

Operating (loss)

 

 

(1,343.5

)

 

 

(1,282.0

)

 

 

(2,474.2

)

 

 

(1,463.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

3.8

 

 

 

1.6

 

 

 

8.2

 

 

 

3.8

 

Interest expense

 

 

(340.2

)

 

 

(132.1

)

 

 

(852.0

)

 

 

(284.0

)

Other (expense) income, net

 

 

0.2

 

 

 

29.4

 

 

 

(238.1

)

 

 

15.3

 

Total other income (expense), net

 

 

(336.2

)

 

 

(101.1

)

 

 

(1,081.9

)

 

 

(264.9

)

(Loss) before income taxes and

   noncontrolling interest

 

 

(1,679.7

)

 

 

(1,383.1

)

 

 

(3,556.1

)

 

 

(1,728.2

)

(Benefit) for income taxes

 

 

(824.9

)

 

 

(221.0

)

 

 

(1,456.9

)

 

 

(306.6

)

Net (loss) from continuing operations, net of tax

 

 

(854.8

)

 

 

(1,162.1

)

 

 

(2,099.2

)

 

 

(1,421.6

)

Income from discontinued operations, net of tax

 

 

6,157.4

 

 

 

119.3

 

 

 

6,647.9

 

 

 

524.3

 

Net income / (loss)

 

 

5,302.6

 

 

 

(1,042.8

)

 

 

4,548.7

 

 

 

(897.3

)

(Income) attributable to noncontrolling interest

 

 

(1.4

)

 

 

-

 

 

 

(2.6

)

 

 

(0.3

)

Net income / (loss) attributable to shareholders

 

 

5,301.2

 

 

 

(1,042.8

)

 

 

4,546.1

 

 

 

(897.6

)

Dividends on preferred shares

 

 

69.6

 

 

 

-

 

 

 

162.4

 

 

 

-

 

Net income / (loss) attributable to ordinary shareholders

 

$

5,231.6

 

 

$

(1,042.8

)

 

$

4,383.7

 

 

$

(897.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income / (loss) per share attributable to ordinary shareholders - basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(2.35

)

 

$

(4.40

)

 

$

(6.31

)

 

$

(6.96

)

Discontinued operations

 

 

15.64

 

 

 

0.45

 

 

 

18.52

 

 

 

2.57

 

Net income / (loss) per share - basic

 

$

13.29

 

 

$

(3.95

)

 

$

12.21

 

 

$

(4.39

)

Income / (loss)  per share attributable to ordinary shareholders - diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(2.35

)

 

$

(4.40

)

 

$

(6.31

)

 

$

(6.96

)

Discontinued operations

 

 

15.64

 

 

 

0.45

 

 

 

18.52

 

 

 

2.57

 

Net income / (loss) per share - diluted

 

$

13.29

 

 

$

(3.95

)

 

$

12.21

 

 

$

(4.39

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

393.6

 

 

 

264.3

 

 

 

358.9

 

 

 

204.4

 

Diluted

 

 

393.6

 

 

 

264.3

 

 

 

358.9

 

 

 

204.4

 

 

See accompanying Notes to Consolidated Financial Statements.

 

4


 

ALLERGAN PLC

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS)

(Unaudited; in millions)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income / (loss)

 

$

5,302.6

 

 

$

(1,042.8

)

 

$

4,548.7

 

 

$

(897.3

)

Other comprehensive (loss) / income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation (losses) / gains

 

 

(42.4

)

 

 

(308.3

)

 

 

409.0

 

 

 

(309.2

)

Unrealized gains / (losses), net of tax

 

 

7.5

 

 

 

(2.3

)

 

 

11.1

 

 

 

(1.6

)

Reclassification for gains included in

   net income, net of tax

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total other comprehensive (loss) / income, net of tax

 

 

(34.9

)

 

 

(310.6

)

 

 

420.1

 

 

 

(310.8

)

Comprehensive income / (loss)

 

 

5,267.7

 

 

 

(1,353.4

)

 

 

4,968.8

 

 

 

(1,208.1

)

Comprehensive (income) attributable

   to noncontrolling interest

 

 

(1.4

)

 

 

-

 

 

 

(2.6

)

 

 

(0.3

)

Comprehensive income / (loss) attributable to ordinary shareholders

 

$

5,266.3

 

 

$

(1,353.4

)

 

$

4,966.2

 

 

$

(1,208.4

)

 

See accompanying Notes to Consolidated Financial Statements.

5


 

ALLERGAN PLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in millions)

 

 

 

Nine Months Ended September 30,

 

 

 

2015

 

 

2014

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

 

Net income / (loss)

 

$

4,548.7

 

 

$

(897.3

)

Reconciliation to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

183.9

 

 

 

169.7

 

Amortization

 

 

4,192.8

 

 

 

1,720.7

 

Provision for inventory reserve

 

 

108.6

 

 

 

110.2

 

Share-based compensation

 

 

510.5

 

 

 

259.4

 

Deferred income tax benefit

 

 

(7,470.9

)

 

 

(412.5

)

In-process research and development impairments

 

 

497.6

 

 

 

321.3

 

Loss / (gain) on asset sales and impairments, net

 

 

57.2

 

 

 

34.2

 

Amortization of inventory step-up

 

 

1,019.8

 

 

 

703.3

 

Amortization of deferred financing costs

 

 

289.2

 

 

 

34.4

 

Accretion and contingent consideration

 

 

89.2

 

 

 

(24.2

)

Excess tax benefit from stock-based compensation

 

 

(54.0

)

 

 

(22.7

)

Non-cash impact of debt extinguishment

 

 

-

 

 

 

(91.7

)

Other, net

 

 

54.9

 

 

 

(19.1

)

Changes in assets and liabilities (net of effects of acquisitions):

 

 

 

 

 

 

 

 

Decrease / (increase) in accounts receivable, net

 

 

(364.0

)

 

 

(365.6

)

Decrease / (increase) in inventories

 

 

(270.1

)

 

 

(266.7

)

Decrease / (increase) in prepaid expenses and other current assets

 

 

(3.3

)

 

 

69.3

 

Increase / (decrease) in accounts payable and accrued expenses

 

 

(290.6

)

 

 

292.3

 

Increase / (decrease) in income and other taxes payable

 

 

(103.4

)

 

 

(152.1

)

Increase / (decrease) in other assets and liabilities

 

 

(21.6

)

 

 

(31.5

)

Net cash provided by operating activities

 

 

2,974.5

 

 

 

1,431.4

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

 

Additions to property, plant and equipment

 

 

(350.7

)

 

 

(174.1

)

Additions to product rights and other intangibles

 

 

(91.1

)

 

 

(0.1

)

Additions to investments

 

 

(27.0

)

 

 

-

 

Proceeds from sale of investments and other assets

 

 

855.8

 

 

 

452.7

 

Proceeds from sales of property, plant and equipment

 

 

133.6

 

 

 

12.0

 

Acquisitions of businesses, net of cash acquired

 

 

(35,242.7

)

 

 

(4,922.6

)

Net cash (used in) investing activities

 

 

(34,722.1

)

 

 

(4,632.1

)

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

Proceeds from borrowings of long-term indebtedness

 

 

26,456.4

 

 

 

8,076.2

 

Proceeds from borrowings on credit facility and other

 

 

2,882.0

 

 

 

80.0

 

Debt issuance and other financing costs

 

 

(310.8

)

 

 

(58.2

)

Payments on debt, including capital lease obligations

 

 

(4,326.7

)

 

 

(4,875.5

)

Proceeds from issuance of preferred shares

 

 

4,929.7

 

 

 

-

 

Proceeds from issuance of ordinary shares

 

 

4,071.1

 

 

 

-

 

Proceeds from stock plans

 

 

195.8

 

 

 

43.3

 

Payments of contingent consideration

 

 

(138.3

)

 

 

(12.6

)

Repurchase of ordinary shares

 

 

(108.2

)

 

 

(99.7

)

Dividends

 

 

(138.4

)

 

 

-

 

Excess tax benefit from stock-based compensation

 

 

54.0

 

 

 

22.7

 

Net cash provided by financing activities

 

 

33,566.6

 

 

 

3,176.2

 

Effect of currency exchange rate changes on cash and cash equivalents

 

 

(5.1

)

 

 

(2.1

)

Movement in cash held for sale

 

 

-

 

 

 

37.0

 

Net increase in cash and cash equivalents

 

 

1,813.9

 

 

 

10.4

 

Cash and cash equivalents at beginning of period

 

 

250.0

 

 

 

329.0

 

Cash and cash equivalents at end of period

 

$

2,063.9

 

 

$

339.4

 

Schedule of Non-Cash Investing and Financing Activities:

 

 

 

 

 

 

 

 

Non-cash equity issuance for the Acquisition of Allergan net assets

 

$

34,687.2

 

 

$

-

 

Non-cash equity issuance for the Acquisition of Forest net assets

 

$

-

 

 

$

20,590.5

 

  

See accompanying Notes to Consolidated Financial Statements.

6


 

WARNER CHILCOTT LIMITED

CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions)

 

 

 

September 30,

 

 

December 31,

 

 

 

2015

 

 

2014

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,045.7

 

 

$

244.3

 

Marketable securities

 

 

7.0

 

 

 

1.0

 

Accounts receivable, net

 

 

2,143.2

 

 

 

1,107.2

 

Receivable from Parents

 

 

323.9

 

 

 

269.8

 

Inventories

 

 

1,285.4

 

 

 

976.7

 

Prepaid expenses and other current assets

 

 

745.8

 

 

 

475.9

 

Current assets held for sale

 

 

3,802.1

 

 

 

3,819.2

 

Deferred tax assets

 

 

6,608.5

 

 

 

477.0

 

Total current assets

 

 

16,961.6

 

 

 

7,371.1

 

Property, plant and equipment, net

 

 

1,569.9

 

 

 

282.5

 

Investments and other assets

 

 

498.3

 

 

 

153.3

 

Non current assets held for sale

 

 

10,573.7

 

 

 

8,213.8

 

Deferred tax assets

 

 

67.2

 

 

 

34.7

 

Product rights and other intangibles

 

 

67,133.4

 

 

 

16,096.6

 

Goodwill

 

 

46,315.1

 

 

 

20,865.6

 

Total assets

 

$

143,119.2

 

 

$

53,017.6

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

4,477.3

 

 

$

2,992.6

 

Payables to Parents

 

 

1,212.0

 

 

 

521.1

 

Income taxes payable

 

 

84.7

 

 

 

33.9

 

Current portion of long-term debt and capital leases

 

 

2,035.4

 

 

 

693.4

 

Deferred revenue

 

 

32.9

 

 

 

17.8

 

Current liabilities held for sale

 

 

1,449.5

 

 

 

1,465.7

 

Deferred tax liabilities

 

 

17.0

 

 

 

41.0

 

Total current liabilities

 

 

9,308.8

 

 

 

5,765.5

 

Long-term debt and capital leases

 

 

40,648.1

 

 

 

14,837.7

 

Deferred revenue

 

 

26.8

 

 

 

26.3

 

Other long-term liabilities

 

 

1,135.1

 

 

 

227.1

 

Long-term liabilities held for sale

 

 

639.9

 

 

 

540.7

 

Other taxes payable

 

 

760.8

 

 

 

789.5

 

Deferred tax liabilities

 

 

13,992.5

 

 

 

2,753.8

 

Total liabilities

 

 

66,512.0

 

 

 

24,940.6

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Member's capital

 

 

73,004.8

 

 

 

29,455.9

 

Retained Earnings / (accumulated deficit)

 

 

3,641.3

 

 

 

(917.9

)

Accumulated other comprehensive (loss)

 

 

(45.3

)

 

 

(465.4

)

Total members’ equity

 

 

76,600.8

 

 

 

28,072.6

 

Noncontrolling interest

 

 

6.4

 

 

 

4.4

 

Total equity

 

 

76,607.2

 

 

 

28,077.0

 

Total liabilities and equity

 

$

143,119.2

 

 

$

53,017.6

 

 

See accompanying Notes to Consolidated Financial Statements.

 

7


 

WARNER CHILCOTT LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in millions)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Net revenues

 

$

4,088.9

 

 

$

2,150.8

 

 

$

10,873.5

 

 

$

4,323.3

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales (excludes amortization and impairment of

   acquired intangibles including product rights)

 

 

1,242.9

 

 

 

1,183.1

 

 

 

3,699.9

 

 

 

2,371.4

 

Research and development

 

 

1,260.5

 

 

 

276.6

 

 

 

1,927.9

 

 

 

368.6

 

Selling and marketing

 

 

721.8

 

 

 

540.2

 

 

 

2,130.4

 

 

 

799.3

 

General and administrative

 

 

346.1

 

 

 

420.4

 

 

 

1,209.6

 

 

 

731.0

 

Amortization

 

 

1,560.2

 

 

 

705.0

 

 

 

3,866.1

 

 

 

1,192.2

 

In-process research and development impairments

 

 

300.0

 

 

 

305.0

 

 

 

497.6

 

 

 

320.0

 

Asset sales and impairments, net

 

 

(4.4

)

 

 

-

 

 

 

3.1

 

 

 

(5.3

)

Total operating expenses

 

 

5,427.1

 

 

 

3,430.3

 

 

 

13,334.6

 

 

 

5,777.2

 

Operating (loss)

 

 

(1,338.2

)

 

 

(1,279.5

)

 

 

(2,461.1

)

 

 

(1,453.9

)

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income