10-Q 1 agn-10q_20160930.htm 10-Q agn-10q_20160930.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

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

For the quarterly period ended September 30, 2016

OR

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    

 

NO    

Warner Chilcott Limited

 

YES    

 

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    

 

NO    

Warner Chilcott Limited

 

YES    

 

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

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)

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    

Warner Chilcott Limited

 

YES    

 

NO    

Number of shares of Allergan plc’s Ordinary Shares outstanding on October 26, 2016: 375,080,162. 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, 2016

 

 

 

 

PAGE

PART I. FINANCIAL INFORMATION

 

Item 1.

 

Consolidated Financial Statements (unaudited)

3

 

 

Consolidated Balance Sheets of Allergan plc as of September 30, 2016 and December 31, 2015

3

 

 

Consolidated Statements of Operations of Allergan plc for the three and nine months ended September 30, 2016 and September 30, 2015

4

 

 

Consolidated Statements of Comprehensive Income of Allergan plc for the three and nine months ended September 30, 2016 and September 30, 2015

5

 

 

Consolidated Statements of Cash Flows of Allergan plc for the nine months ended September 30, 2016 and 2015

6

 

 

Consolidated Balance Sheets of Warner Chilcott Limited as of September 30, 2016 and December 31, 2015

7

 

 

Consolidated Statements of Operations of Warner Chilcott Limited for the three and nine months ended September 30, 2016 and September 30, 2015

8

 

 

Consolidated Statements of Comprehensive Income of Warner Chilcott Limited for the three and nine months ended September 30, 2016 and September 30, 2015

9

 

 

Consolidated Statements of Cash Flows of Warner Chilcott Limited for the nine months ended September 30, 2016 and 2015

10

 

 

Notes to Consolidated Financial Statements

11

Item 2.

 

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

80

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

116

Item 4.

 

Controls and Procedures

118

PART II. OTHER INFORMATION

 

Item 1.

 

Legal Proceedings

119

Item 1A.

 

Risk Factors

119

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

119

Item 6.

 

Exhibits

119

 

 

Signatures

120

 

 

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,

 

 

 

2016

 

 

2015

 

ASSETS

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

7,554.7

 

 

$

1,096.0

 

Marketable securities

 

 

19,837.6

 

 

 

9.3

 

Accounts receivable, net

 

 

2,398.5

 

 

 

2,125.4

 

Inventories

 

 

705.5

 

 

 

757.5

 

Prepaid expenses and other current assets

 

 

771.7

 

 

 

495.3

 

Current assets held for sale

 

 

455.9

 

 

 

4,095.6

 

Total current assets

 

 

31,723.9

 

 

 

8,579.1

 

Property, plant and equipment, net

 

 

1,566.3

 

 

 

1,531.3

 

Investments and other assets

 

 

341.1

 

 

 

408.7

 

Non current assets held for sale

 

 

207.2

 

 

 

10,713.3

 

Deferred tax assets

 

 

120.7

 

 

 

49.5

 

Product rights and other intangibles

 

 

63,022.7

 

 

 

67,836.2

 

Goodwill

 

 

46,625.8

 

 

 

46,465.2

 

Total assets

 

$

143,607.7

 

 

$

135,583.3

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

5,425.4

 

 

$

4,148.6

 

Income taxes payable

 

 

784.6

 

 

 

53.7

 

Current portion of long-term debt and capital leases

 

 

1,591.8

 

 

 

2,396.5

 

Current liabilities held for sale

 

 

223.7

 

 

 

1,693.2

 

Total current liabilities

 

 

8,025.5

 

 

 

8,292.0

 

Long-term debt and capital leases

 

 

31,178.2

 

 

 

40,133.9

 

Other long-term liabilities

 

 

1,022.7

 

 

 

1,262.0

 

Long-term liabilities held for sale

 

 

23.8

 

 

 

535.4

 

Other taxes payable

 

 

815.6

 

 

 

801.9

 

Deferred tax liabilities

 

 

12,811.5

 

 

 

7,968.8

 

Total liabilities

 

 

53,877.3

 

 

 

58,994.0

 

Commitments and contingencies (Refer to Note 20)

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

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

   5.1 million and 5.1 million shares issued and outstanding, respectively

 

$

4,929.7

 

 

$

4,929.7

 

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

   383.2 million and 394.5 million shares issued and outstanding, respectively

 

 

-

 

 

 

-

 

Treasury shares, at cost, 1.7 million shares pending and zero shares, respectively

 

 

(400.0

)

 

 

-

 

Additional paid-in capital

 

 

66,184.2

 

 

 

68,508.3

 

Retained earnings

 

 

18,412.7

 

 

 

3,647.5

 

Accumulated other comprehensive income / (loss)

 

 

599.3

 

 

 

(494.1

)

Total shareholders’ equity

 

 

89,725.9

 

 

 

76,591.4

 

Noncontrolling interest

 

 

4.5

 

 

 

(2.1

)

Total equity

 

 

89,730.4

 

 

 

76,589.3

 

Total liabilities and equity

 

$

143,607.7

 

 

$

135,583.3

 

 

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,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Net revenues

 

$

3,622.2

 

 

$

3,469.5

 

 

$

10,706.3

 

 

$

9,081.2

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales (excludes amortization and impairment

   of acquired intangibles including product rights)

 

 

462.2

 

 

 

710.3

 

 

 

1,381.1

 

 

 

2,150.0

 

Research and development

 

 

622.8

 

 

 

1,260.5

 

 

 

1,662.4

 

 

 

1,927.9

 

Selling and marketing

 

 

796.0

 

 

 

683.6

 

 

 

2,429.6

 

 

 

2,017.2

 

General and administrative

 

 

361.2

 

 

 

339.1

 

 

 

1,033.9

 

 

 

1,188.0

 

Amortization

 

 

1,609.1

 

 

 

1,557.8

 

 

 

4,831.9

 

 

 

3,858.9

 

In-process research and development impairments

 

 

42.0

 

 

 

300.0

 

 

 

316.9

 

 

 

497.6

 

Asset sales and impairments, net

 

 

(4.7

)

 

 

(4.4

)

 

 

(24.0

)

 

 

3.1

 

Total operating expenses

 

 

3,888.6

 

 

 

4,846.9

 

 

 

11,631.8

 

 

 

11,642.7

 

Operating (loss)

 

 

(266.4

)

 

 

(1,377.4

)

 

 

(925.5

)

 

 

(2,561.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

18.1

 

 

 

3.5

 

 

 

23.5

 

 

 

7.6

 

Interest (expense)

 

 

(324.3

)

 

 

(340.2

)

 

 

(1,002.9

)

 

 

(852.0

)

Other (expense) income, net

 

 

33.6

 

 

 

0.2

 

 

 

184.2

 

 

 

(238.1

)

Total other (expense), net

 

 

(272.6

)

 

 

(336.5

)

 

 

(795.2

)

 

 

(1,082.5

)

(Loss) before income taxes and noncontrolling interest

 

 

(539.0

)

 

 

(1,713.9

)

 

 

(1,720.7

)

 

 

(3,644.0

)

(Benefit) for income taxes

 

 

(158.9

)

 

 

(838.9

)

 

 

(825.8

)

 

 

(1,491.0

)

Net (loss) from continuing operations, net of tax

 

 

(380.1

)

 

 

(875.0

)

 

 

(894.9

)

 

 

(2,153.0

)

Income from discontinued operations, net of tax

 

 

15,601.9

 

 

 

6,177.6

 

 

 

15,873.2

 

 

 

6,701.7

 

Net income

 

 

15,221.8

 

 

 

5,302.6

 

 

 

14,978.3

 

 

 

4,548.7

 

(Income) attributable to noncontrolling interest

 

 

(1.8

)

 

 

(1.4

)

 

 

(4.3

)

 

 

(2.6

)

Net income attributable to shareholders

 

 

15,220.0

 

 

 

5,301.2

 

 

 

14,974.0

 

 

 

4,546.1

 

Dividends on preferred shares

 

 

69.6

 

 

 

69.6

 

 

 

208.8

 

 

 

162.4

 

Net income attributable to ordinary shareholders

 

$

15,150.4

 

 

$

5,231.6

 

 

$

14,765.2

 

 

$

4,383.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) / income per share attributable to ordinary

   shareholders - basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(1.15

)

 

$

(2.40

)

 

$

(2.81

)

 

$

(6.46

)

Discontinued operations

 

 

39.73

 

 

 

15.69

 

 

 

40.25

 

 

 

18.67

 

Net income per share - basic

 

$

38.58

 

 

$

13.29

 

 

$

37.44

 

 

$

12.21

 

(Loss) / income  per share attributable to ordinary

   shareholders - diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(1.15

)

 

$

(2.40

)

 

$

(2.81

)

 

$

(6.46

)

Discontinued operations

 

 

39.73

 

 

 

15.69

 

 

 

40.25

 

 

 

18.67

 

Net income per share - diluted

 

$

38.58

 

 

$

13.29

 

 

$

37.44

 

 

$

12.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

392.7

 

 

 

393.6

 

 

 

394.4

 

 

 

358.9

 

Diluted

 

 

392.7

 

 

 

393.6

 

 

 

394.4

 

 

 

358.9

 

 

See accompanying Notes to Consolidated Financial Statements.

 

 

4


 

ALLERGAN PLC

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited; in millions)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Net income

 

$

15,221.8

 

 

$

5,302.6

 

 

$

14,978.3

 

 

$

4,548.7

 

Other comprehensive income / (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation (losses) / gains

 

 

(19.1

)

 

 

(42.4

)

 

 

173.8

 

 

 

409.0

 

Impact of Teva Transaction

 

 

1,544.8

 

 

 

-

 

 

 

1,544.8

 

 

 

-

 

Unrealized gains (losses) / gains, net of tax

 

 

(609.3

)

 

 

7.5

 

 

 

(625.2

)

 

 

11.1

 

Reclassification for gains included in net income, net of

   tax

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

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

 

 

916.4

 

 

 

(34.9

)

 

 

1,093.4

 

 

 

420.1

 

Comprehensive income

 

 

16,138.2

 

 

 

5,267.7

 

 

 

16,071.7

 

 

 

4,968.8

 

Comprehensive (income) attributable to noncontrolling

   interest

 

 

(1.8

)

 

 

(1.4

)

 

 

(4.3

)

 

 

(2.6

)

Comprehensive income attributable to ordinary shareholders

 

$

16,136.4

 

 

$

5,266.3

 

 

$

16,067.4

 

 

$

4,966.2

 

 

See accompanying Notes to Consolidated Financial Statements.

 

 

5


 

ALLERGAN PLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in millions)

 

 

 

Nine Months Ended September 30,

 

 

 

2016

 

 

2015

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

 

Net income

 

$

14,978.3

 

 

$

4,548.7

 

Reconciliation to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

117.6

 

 

 

183.9

 

Amortization

 

 

4,836.7

 

 

 

4,192.8

 

Provision for inventory reserve

 

 

162.7

 

 

 

108.6

 

Share-based compensation

 

 

269.9

 

 

 

510.5

 

Deferred income tax benefit

 

 

(517.1

)

 

 

(7,470.9

)

Pre-tax gain sale of generics business

 

 

(24,203.1

)

 

 

-

 

Non-cash tax effect of gain on sale of generics business

 

 

5,749.9

 

 

 

-

 

In-process research and development impairments

 

 

316.9

 

 

 

497.6

 

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

 

 

(24.0

)

 

 

57.2

 

Amortization of inventory step-up

 

 

42.4

 

 

 

1,019.8

 

Amortization of deferred financing costs

 

 

44.6

 

 

 

289.2

 

Contingent consideration adjustments, including accretion

 

 

76.7

 

 

 

89.2

 

Excess tax benefit from stock-based compensation

 

 

(26.6

)

 

 

(54.0

)

Other, net

 

 

(16.0

)

 

 

54.9

 

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

 

 

 

 

 

 

 

 

Decrease / (increase) in accounts receivable, net

 

 

(40.4

)

 

 

(364.0

)

Decrease / (increase) in inventories

 

 

(221.6

)

 

 

(270.1

)

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

 

 

158.9

 

 

 

(3.3

)

Increase / (decrease) in accounts payable and accrued expenses

 

 

331.9

 

 

 

(290.6

)

Increase / (decrease) in income and other taxes payable

 

 

(131.6

)

 

 

(103.4

)

Increase / (decrease) in other assets and liabilities

 

 

(397.5

)

 

 

(21.6

)

Net cash provided by operating activities

 

 

1,508.6

 

 

 

2,974.5

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

 

Additions to property, plant and equipment

 

 

(250.5

)

 

 

(350.7

)

Additions to product rights and other intangibles

 

 

-

 

 

 

(91.1

)

Sale of generics business

 

 

33,304.5

 

 

 

-

 

Additions to investments

 

 

(15,445.5

)

 

 

(27.0

)

Proceeds from sale of investments and other assets

 

 

40.0

 

 

 

855.8

 

Proceeds from sales of property, plant and equipment

 

 

33.3

 

 

 

133.6

 

Acquisitions of businesses, net of cash acquired

 

 

(74.5

)

 

 

(35,242.7

)

Net cash provided by / (used in) investing activities

 

 

17,607.3

 

 

 

(34,722.1

)

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

Proceeds from borrowings of long-term indebtedness

 

 

-

 

 

 

26,456.4

 

Proceeds from borrowings on credit facility and other

 

 

1,050.0

 

 

 

2,882.0

 

Debt issuance and other financing costs

 

 

-

 

 

 

(310.8

)

Payments on debt, including capital lease obligations and credit facility

 

 

(10,831.0

)

 

 

(4,326.7

)

Proceeds from issuance of preferred shares

 

 

-

 

 

 

4,929.7

 

Proceeds from issuance of ordinary shares

 

 

-

 

 

 

4,071.1

 

Proceeds from stock plans

 

 

138.0

 

 

 

195.8

 

Payments of contingent consideration

 

 

(77.7

)

 

 

(138.3

)

Repurchase of ordinary shares

 

 

(2,758.6

)

 

 

(108.2

)

Dividends

 

 

(208.8

)

 

 

(138.4

)

Excess tax benefit from stock-based compensation

 

 

26.6

 

 

 

54.0

 

Net cash (used in) / provided by financing activities

 

 

(12,661.5

)

 

 

33,566.6

 

Effect of currency exchange rate changes on cash and cash equivalents

 

 

4.3

 

 

 

(5.1

)

Net increase in cash and cash equivalents

 

 

6,458.7

 

 

 

1,813.9

 

Cash and cash equivalents at beginning of period

 

 

1,096.0

 

 

 

250.0

 

Cash and cash equivalents at end of period

 

$

7,554.7

 

 

$

2,063.9

 

Supplemental Disclosure of Cash Flow Information

 

 

 

 

 

 

 

 

Taxes paid in connection with the sale of the generics business

 

$

2,571.7

 

 

$

-

 

Schedule of Non-Cash Investing and Financing Activities:

 

 

 

 

 

 

 

 

Dividends accrued

 

$

24.2

 

 

$

24.0

 

Receipt of Teva Pharmaceutical Industries Ltd. ordinary shares in connection with the sale of the generics

   business

 

$

5,038.6

 

 

$

-

 

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

 

$

-

 

 

$

34,687.2

 

 

See accompanying Notes to Consolidated Financial Statements.

 

 

6


 

WARNER CHILCOTT LIMITED

CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions)

 

 

 

September 30,

 

 

December 31,

 

 

 

2016

 

 

2015

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

7,522.8

 

 

$

1,036.2

 

Marketable securities

 

 

19,837.6

 

 

 

9.3

 

Accounts receivable, net

 

 

2,398.5

 

 

 

2,125.4

 

Receivables from Parents

 

 

2,828.7

 

 

 

457.3

 

Inventories

 

 

705.5

 

 

 

757.5

 

Prepaid expenses and other current assets

 

 

769.6

 

 

 

492.8

 

Current assets held for sale

 

 

455.9

 

 

 

4,095.6

 

Total current assets

 

 

34,518.6

 

 

 

8,974.1

 

Property, plant and equipment, net

 

 

1,566.3

 

 

 

1,531.3

 

Investments and other assets

 

 

341.1

 

 

 

408.7

 

Non current receivables from Parents

 

 

3,985.0

 

 

 

-

 

Non current assets held for sale

 

 

207.2

 

 

 

10,713.3

 

Deferred tax assets

 

 

120.7

 

 

 

49.5

 

Product rights and other intangibles

 

 

63,022.7

 

 

 

67,836.2

 

Goodwill

 

 

46,625.8

 

 

 

46,465.2

 

Total assets

 

$

150,387.4

 

 

$

135,978.3

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

4,995.8

 

 

$

4,094.5

 

Payables to Parents

 

 

6,202.2

 

 

 

1,466.8

 

Income taxes payable

 

 

784.6

 

 

 

53.7

 

Current portion of long-term debt and capital leases

 

 

1,591.8

 

 

 

2,396.5

 

Current liabilities held for sale

 

 

223.7

 

 

 

1,693.2

 

Total current liabilities

 

 

13,798.1

 

 

 

9,704.7

 

Long-term debt and capital leases

 

 

31,178.2

 

 

 

40,133.9

 

Other long-term liabilities

 

 

1,022.7

 

 

 

1,262.0

 

Long-term payables to Parents

 

 

419.0

 

 

 

-

 

Long-term liabilities held for sale

 

 

23.8

 

 

 

535.4

 

Other taxes payable

 

 

815.6

 

 

 

801.9

 

Deferred tax liabilities

 

 

12,811.5

 

 

 

7,968.8

 

Total liabilities

 

 

60,068.9

 

 

 

60,406.7

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Members' capital

 

 

72,935.1

 

 

 

72,935.1

 

Retained earnings

 

 

16,779.6

 

 

 

3,132.7

 

Accumulated other comprehensive income / (loss)

 

 

599.3

 

 

 

(494.1

)

Total members’ equity

 

 

90,314.0

 

 

 

75,573.7

 

Noncontrolling interest

 

 

4.5

 

 

 

(2.1

)

Total equity

 

 

90,318.5

 

 

 

75,571.6

 

Total liabilities and equity

 

$

150,387.4

 

 

$

135,978.3

 

 

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,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Net revenues

 

$

3,622.2

 

 

$

3,469.5

 

 

$

10,706.3

 

 

$

9,081.2

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales (excludes amortization and impairment of

   acquired intangibles including product rights)

 

 

462.2

 

 

 

710.3

 

 

 

1,381.1

 

 

 

2,150.0

 

Research and development

 

 

622.8

 

 

 

1,260.5

 

 

 

1,662.4

 

 

 

1,927.9

 

Selling and marketing

 

 

796.0

 

 

 

683.6

 

 

 

2,429.6

 

 

 

2,017.2

 

General and administrative

 

 

312.2

 

 

 

333.8

 

 

 

966.2

 

 

 

1,174.9

 

Amortization

 

 

1,609.1

 

 

 

1,557.8

 

 

 

4,831.9

 

 

 

3,858.9

 

In-process research and development impairments

 

 

42.0

 

 

 

300.0

 

 

 

316.9

 

 

 

497.6

 

Asset sales and impairments, net

 

 

(4.7

)

 

 

(4.4

)

 

 

(24.0

)

 

 

3.1

 

Total operating expenses

 

 

3,839.6

 

 

 

4,841.6

 

 

 

11,564.1

 

 

 

11,629.6

 

Operating (loss)

 

 

(217.4

)

 

 

(1,372.1

)

 

 

(857.8

)

 

 

(2,548.4

)

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

18.1

 

 

 

3.5

 

 

 

23.5