10-Q 1 agn-10q_20180930.htm 10-Q agn-10q_20180930.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, 2018

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

Canon’s Court

 

Bermuda

 

98-0496358

 

 

22 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 every Interactive Data File required to be submitted 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 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, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Allergan plc

Large accelerated filer

Accelerated filer

 

Non-accelerated filer

Smaller reporting company

 

Emerging growth company

 

 

 

 

 

 

 

Warner Chilcott Limited

Large accelerated filer

Accelerated filer

 

Non-accelerated filer

Smaller reporting company

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

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, 2018: 337,285,952. 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, 2018

 

 

 

 

PAGE

PART I. FINANCIAL INFORMATION

3

Item 1.

 

Consolidated Financial Statements (unaudited)

3

 

 

Consolidated Balance Sheets of Allergan plc as of September 30, 2018 and December 31, 2017

3

 

 

Consolidated Statements of Operations of Allergan plc for the three and nine months ended September 30, 2018 and September 30, 2017

4

 

 

Consolidated Statements of Comprehensive (Loss) of Allergan plc for the three and nine months ended September 30, 2018 and September 30, 2017 

5

 

 

Consolidated Statements of Cash Flows of Allergan plc for the nine months ended September 30, 2018 and September 30, 2017

6

 

 

Consolidated Balance Sheets of Warner Chilcott Limited as of September 30, 2018 and December 31, 2017

7

 

 

Consolidated Statements of Operations of Warner Chilcott Limited for the three and nine months ended September 30, 2018 and September 30, 2017

8

 

 

Consolidated Statements of Comprehensive (Loss) of Warner Chilcott Limited for the three and nine months ended September 30, 2018 and September 30, 2017

9

 

 

Consolidated Statements of Cash Flows of Warner Chilcott Limited for the nine months ended September 30, 2018 and September 30, 2017

10

 

 

Notes to the Consolidated Financial Statements

11

Item 2.

 

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

69

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

91

Item 4.

 

Controls and Procedures

93

PART II. OTHER INFORMATION

94

Item 1.

 

Legal Proceedings

94

Item 1A.

 

Risk Factors

94

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

94

Item 6.

 

Exhibits

94

 

 

Signatures

96

 

 

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,

 

 

 

2018

 

 

2017

 

ASSETS

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,187.9

 

 

$

1,817.2

 

Marketable securities

 

 

22.0

 

 

 

4,632.1

 

Accounts receivable, net

 

 

2,826.9

 

 

 

2,899.0

 

Inventories

 

 

894.6

 

 

 

904.5

 

Current assets held for sale

 

 

7.3

 

 

 

-

 

Prepaid expenses and other current assets

 

 

801.5

 

 

 

1,123.9

 

Total current assets

 

 

5,740.2

 

 

 

11,376.7

 

Property, plant and equipment, net

 

 

1,756.6

 

 

 

1,785.4

 

Investments and other assets

 

 

302.8

 

 

 

267.9

 

Non current assets held for sale

 

 

169.7

 

 

 

81.6

 

Deferred tax assets

 

 

989.4

 

 

 

319.1

 

Product rights and other intangibles

 

 

48,127.4

 

 

 

54,648.3

 

Goodwill

 

 

49,456.4

 

 

 

49,862.9

 

Total assets

 

$

106,542.5

 

 

$

118,341.9

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

4,695.6

 

 

$

5,541.4

 

Income taxes payable

 

 

184.7

 

 

 

74.9

 

Current portion of long-term debt and capital leases

 

 

1,351.6

 

 

 

4,231.8

 

Total current liabilities

 

 

6,231.9

 

 

 

9,848.1

 

Long-term debt and capital leases

 

 

22,231.8

 

 

 

25,843.5

 

Other long-term liabilities

 

 

752.1

 

 

 

886.9

 

Other taxes payable

 

 

1,580.5

 

 

 

1,573.9

 

Deferred tax liabilities

 

 

5,225.3

 

 

 

6,352.4

 

Total liabilities

 

 

36,021.6

 

 

 

44,504.8

 

Commitments and contingencies (Refer to Note 19)

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

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

   issued and outstanding, respectively

 

$

-

 

 

$

4,929.7

 

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

   337.2 million and 330.2 million shares issued and outstanding, respectively

 

 

-

 

 

 

-

 

Additional paid-in capital

 

 

57,203.0

 

 

 

54,013.5

 

Retained earnings

 

 

11,800.6

 

 

 

12,957.2

 

Accumulated other comprehensive income

 

 

1,504.2

 

 

 

1,920.7

 

Total shareholders’ equity

 

 

70,507.8

 

 

 

73,821.1

 

Noncontrolling interest

 

 

13.1

 

 

 

16.0

 

Total equity

 

 

70,520.9

 

 

 

73,837.1

 

Total liabilities and equity

 

$

106,542.5

 

 

$

118,341.9

 

 

See accompanying Notes to the 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,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net revenues

 

$

3,911.4

 

 

$

4,034.3

 

 

$

11,707.7

 

 

$

11,614.6

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales (excludes amortization and impairment

   of acquired intangibles including product rights)

 

 

596.8

 

 

 

586.5

 

 

 

1,601.4

 

 

 

1,587.1

 

Research and development

 

 

424.2

 

 

 

442.6

 

 

 

1,588.1

 

 

 

1,691.9

 

Selling and marketing

 

 

755.6

 

 

 

832.8

 

 

 

2,409.0

 

 

 

2,637.1

 

General and administrative

 

 

289.2

 

 

 

336.9

 

 

 

919.2

 

 

 

1,112.8

 

Amortization

 

 

1,588.5

 

 

 

1,781.0

 

 

 

4,983.2

 

 

 

5,274.9

 

In-process research and development impairments

 

 

-

 

 

 

202.0

 

 

 

798.0

 

 

 

1,245.3

 

Asset sales and impairments, net

 

 

(0.4

)

 

 

3,874.8

 

 

 

272.3

 

 

 

3,896.2

 

Total operating expenses

 

 

3,653.9

 

 

 

8,056.6

 

 

 

12,571.2

 

 

 

17,445.3

 

Operating income / (loss)

 

 

257.5

 

 

 

(4,022.3

)

 

 

(863.5

)

 

 

(5,830.7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

10.0

 

 

 

11.1

 

 

 

33.6

 

 

 

53.0

 

Interest (expense)

 

 

(220.4

)

 

 

(265.2

)

 

 

(701.0

)

 

 

(832.3

)

Other income / (expense), net

 

 

130.0

 

 

 

(1,310.3

)

 

 

266.6

 

 

 

(3,366.6

)

Total other (expense), net

 

 

(80.4

)

 

 

(1,564.4

)

 

 

(400.8

)

 

 

(4,145.9

)

Income / (loss) before income taxes and noncontrolling

   interest

 

 

177.1

 

 

 

(5,586.7

)

 

 

(1,264.3

)

 

 

(9,976.6

)

Provision / (benefit) for income taxes

 

 

213.4

 

 

 

(1,638.8

)

 

 

(474.0

)

 

 

(2,752.1

)

Net (loss) from continuing operations, net of tax

 

 

(36.3

)

 

 

(3,947.9

)

 

 

(790.3

)

 

 

(7,224.5

)

(Loss) from discontinued operations, net of tax

 

 

-

 

 

 

(6.1

)

 

 

-

 

 

 

(17.6

)

Net (loss)

 

 

(36.3

)

 

 

(3,954.0

)

 

 

(790.3

)

 

 

(7,242.1

)

(Income) attributable to noncontrolling interest

 

 

(1.6

)

 

 

(1.7

)

 

 

(6.2

)

 

 

(4.7

)

Net (loss) attributable to shareholders

 

 

(37.9

)

 

 

(3,955.7

)

 

 

(796.5

)

 

 

(7,246.8

)

Dividends on preferred shares

 

 

-

 

 

 

69.6

 

 

 

46.4

 

 

 

208.8

 

Net (loss) attributable to ordinary shareholders

 

$

(37.9

)

 

$

(4,025.3

)

 

$

(842.9

)

 

$

(7,455.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) per share attributable to ordinary shareholders - basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.11

)

 

$

(12.05

)

 

$

(2.50

)

 

$

(22.23

)

Discontinued operations

 

 

-

 

 

 

(0.02

)

 

 

-

 

 

 

(0.05

)

Net (loss) per share - basic

 

$

(0.11

)

 

$

(12.07

)

 

$

(2.50

)

 

$

(22.28

)

(Loss) per share attributable to ordinary shareholders -

   diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.11

)

 

$

(12.05

)

 

$

(2.50

)

 

$

(22.23

)

Discontinued operations

 

 

-

 

 

 

(0.02

)

 

 

-

 

 

 

(0.05

)

Net (loss) per share - diluted

 

$

(0.11

)

 

$

(12.07

)

 

$

(2.50

)

 

$

(22.28

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per ordinary share

 

$

0.72

 

 

$

0.70

 

 

$

2.16

 

 

$

2.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

339.0

 

 

 

333.5

 

 

 

337.6

 

 

 

334.6

 

Diluted

 

 

339.0

 

 

 

333.5

 

 

 

337.6

 

 

 

334.6

 

 

See accompanying Notes to the Consolidated Financial Statements.

 

4


 

ALLERGAN PLC

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)

(Unaudited; in millions)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net (loss)

 

$

(36.3

)

 

$

(3,954.0

)

 

$

(790.3

)

 

$

(7,242.1

)

Other comprehensive (loss) / income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation (losses) / gains

 

 

(87.3

)

 

 

280.8

 

 

 

(352.1

)

 

 

1,141.2

 

Net impact of other-than-temporary loss on investment

   in Teva securities

 

 

-

 

 

 

(207.7

)

 

 

-

 

 

 

1,599.4

 

Unrealized (losses) / gains, net of tax

 

 

(1.4

)

 

 

13.1

 

 

 

(1.4

)

 

 

9.0

 

Impact of ASU No. 2016-01, net of tax

 

 

-

 

 

 

-

 

 

 

(63.0

)

 

 

-

 

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

 

 

(88.7

)

 

 

86.2

 

 

 

(416.5

)

 

 

2,749.6

 

Comprehensive (loss)

 

 

(125.0

)

 

 

(3,867.8

)

 

 

(1,206.8

)

 

 

(4,492.5

)

Comprehensive (income) attributable to noncontrolling

   interest

 

 

(1.6

)

 

 

(1.7

)

 

 

(6.2

)

 

 

(4.7

)

Comprehensive (loss) attributable to ordinary

   shareholders

 

$

(126.6

)

 

$

(3,869.5

)

 

$

(1,213.0

)

 

$

(4,497.2

)

 

See accompanying Notes to the Consolidated Financial Statements.

 

 

5


 

ALLERGAN PLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in millions)

 

 

 

Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

 

 

Net (loss)

 

$

(790.3

)

 

$

(7,242.1

)

Reconciliation to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

149.7

 

 

 

123.2

 

Amortization

 

 

4,983.2

 

 

 

5,274.9

 

Provision for inventory reserve

 

 

74.9

 

 

 

77.3

 

Share-based compensation

 

 

185.2

 

 

 

220.8

 

Deferred income tax benefit

 

 

(1,362.8

)

 

 

(3,205.3

)

In-process research and development impairments

 

 

798.0

 

 

 

1,245.3

 

Loss on asset sales and impairments, net

 

 

272.3

 

 

 

3,896.2

 

Net income impact of other-than-temporary loss on investment in Teva securities

 

 

-

 

 

 

3,273.5

 

Gain on sale of Teva securities, net

 

 

(60.9

)

 

 

-

 

Amortization of inventory step-up

 

 

-

 

 

 

126.2

 

Gain on sale of business

 

 

(182.6

)

 

 

-

 

Non-cash extinguishment of debt

 

 

17.4

 

 

 

(8.2

)

Cash (discount) / charge related to extinguishment of debt

 

 

(18.2

)

 

 

170.5

 

Amortization of deferred financing costs

 

 

17.4

 

 

 

19.6

 

Contingent consideration adjustments, including accretion

 

 

(113.1

)

 

 

(51.6

)

Other, net

 

 

0.5

 

 

 

(18.2

)

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

 

 

 

 

 

 

 

 

Decrease / (increase) in accounts receivable, net

 

 

17.0

 

 

 

(138.5

)

Decrease / (increase) in inventories

 

 

(136.2

)

 

 

(107.7

)

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

 

 

(5.4

)

 

 

45.8

 

Increase / (decrease) in accounts payable and accrued expenses

 

 

(46.1

)

 

 

(356.3

)

Increase / (decrease) in income and other taxes payable

 

 

415.5

 

 

 

646.1

 

Increase / (decrease) in other assets and liabilities

 

 

(74.0

)

 

 

4.0

 

Net cash provided by operating activities

 

 

4,141.5

 

 

 

3,995.5

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

 

 

Additions to property, plant and equipment

 

 

(165.1

)

 

 

(234.0

)

Additions to product rights and other intangibles

 

 

-

 

 

 

(604.3

)

Additions to investments

 

 

(1,456.4

)

 

 

(8,433.8

)

Proceeds from sale of investments and other assets

 

 

6,201.3

 

 

 

14,474.4

 

Payments to settle Teva related matters

 

 

(466.0

)

 

 

-

 

Proceeds from sales of property, plant and equipment

 

 

24.6

 

 

 

5.8

 

Acquisitions of businesses, net of cash acquired

 

 

-

 

 

 

(5,290.4

)

Net cash provided by / (used in) investing activities

 

 

4,138.4

 

 

 

(82.3

)

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

Proceeds from borrowings of long-term indebtedness, including credit facility

 

 

717.2

 

 

 

3,025.0

 

Proceeds from forward sale of Teva securities

 

 

465.5

 

 

 

-

 

Debt issuance and other financing costs

 

 

-

 

 

 

(17.5

)

Payments on debt, including capital lease obligations and credit facility

 

 

(7,115.9

)

 

 

(5,579.2

)

Cash charge related to extinguishment of debt

 

 

-

 

 

 

(170.5

)

Proceeds from stock plans

 

 

98.2

 

 

 

167.2

 

Payments of contingent consideration and other financing

 

 

(21.7

)

 

 

(515.2

)

Payments to settle Teva related matters

 

 

(234.0

)

 

 

-

 

Repurchase of ordinary shares

 

 

(2,023.5

)

 

 

(36.4

)

Dividends paid

 

 

(808.1

)

 

 

(917.0

)

Net cash (used in) financing activities

 

 

(8,922.3

)

 

 

(4,043.6

)

Effect of currency exchange rate changes on cash and cash equivalents

 

 

13.1

 

 

 

19.1

 

Net (decrease) in cash and cash equivalents

 

 

(629.3

)

 

 

(111.3

)

Cash and cash equivalents at beginning of period

 

 

1,817.2

 

 

 

1,724.0

 

Cash and cash equivalents at end of period

 

$

1,187.9

 

 

$

1,612.7

 

Supplemental Disclosures of Cash Flow Information

 

 

 

 

 

 

 

 

Cash paid during the year for:

 

 

 

 

 

 

 

 

Income taxes other, net of refunds

 

$

510.1

 

 

$

(173.6

)

Interest

 

$

817.6

 

 

$

988.8

 

Schedule of Non-Cash Investing and Financing Activities:

 

 

 

 

 

 

 

 

Conversion of mandatory convertible preferred shares

 

$

4,929.7

 

 

$

-

 

Settlement of Teva Shares

 

$

465.5

 

 

$

-

 

Settlement of secured financing

 

$

(465.5

)

 

$

-

 

Non-cash equity issuance for the acquisition of Zeltiq net assets

 

$

-

 

 

$

8.5

 

Deferred consideration for the acquisition of Zeltiq

 

$

-

 

 

$

13.5

 

Dividends accrued

 

$

1.4

 

 

$

24.6

 

 

See accompanying Notes to the Consolidated Financial Statements.

6


 

WARNER CHILCOTT LIMITED

CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions)

 

 

 

September 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,185.9

 

 

$

1,816.3

 

Marketable securities

 

 

22.0

 

 

 

4,632.1

 

Accounts receivable, net

 

 

2,826.7

 

 

 

2,899.0

 

Receivables from Parents

 

 

795.7

 

 

 

5,797.4

 

Inventories

 

 

894.6

 

 

 

904.5

 

Current assets held for sale

 

 

7.3

 

 

 

 

 

Prepaid expenses and other current assets

 

 

800.6

 

 

 

1,123.0

 

Total current assets

 

 

6,532.8

 

 

 

17,172.3

 

Property, plant and equipment, net

 

 

1,756.6

 

 

 

1,785.4

 

Investments and other assets

 

 

302.8

 

 

 

267.9

 

Non current receivables from Parents

 

 

9,046.8

 

 

 

3,964.0

 

Non current assets held for sale

 

 

169.7

 

 

 

81.6

 

Deferred tax assets

 

 

989.4

 

 

 

316.0

 

Product rights and other intangibles

 

 

48,127.4

 

 

 

54,648.3

 

Goodwill

 

 

49,456.4

 

 

 

49,862.9

 

Total assets

 

$

116,381.9

 

 

$

128,098.4

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

4,693.2

 

 

$

5,515.6

 

Payables to Parents

 

 

2,430.2

 

 

 

2,340.6

 

Income taxes payable

 

 

185.6

 

 

 

74.9

 

Current portion of long-term debt and capital leases

 

 

1,351.6

 

 

 

4,231.8

 

Total current liabilities

 

 

8,660.6

 

 

 

12,162.9

 

Long-term debt and capital leases

 

 

22,231.8

 

 

 

25,843.5

 

Other long-term liabilities

 

 

752.1

 

 

 

886.9

 

Other taxes payable

 

 

1,575.1

 

 

 

1,573.5

 

Deferred tax liabilities

 

 

5,225.4

 

 

 

6,349.4

 

Total liabilities

 

 

38,445.0

 

 

 

46,816.2

 

Commitments and contingencies (Refer to Note 19)

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Members' capital

 

 

72,935.1

 

 

 

72,935.1

 

Retained earnings

 

 

3,484.5

 

 

 

6,410.4

 

Accumulated other comprehensive income

 

 

1,504.2

 

 

 

1,920.7

 

Total members’ equity

 

 

77,923.8

 

 

 

81,266.2

 

Noncontrolling interest

 

 

13.1

 

 

 

16.0

 

Total equity

 

 

77,936.9

 

 

 

81,282.2

 

Total liabilities and equity

 

$

116,381.9

 

 

$

128,098.4

 

 

See accompanying Notes to the Consolidated Financial Statements.

 

 

7


 

WARNER CHILCOTT LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in millions)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net revenues

 

$

3,911.4

 

 

$

4,034.3

 

 

$

11,707.7

 

 

$

11,614.6

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales (excludes amortization and impairment

   of acquired intangibles including product rights)

 

 

596.8

 

 

 

586.5

 

 

 

1,601.4

 

 

 

1,587.1

 

Research and development

 

 

424.2

 

 

 

442.6

 

 

 

1,588.1

 

 

 

1,691.9

 

Selling and marketing

 

 

755.6

 

 

 

832.8

 

 

 

2,409.0

 

 

 

2,637.1

 

General and administrative

 

 

272.4

 

 

 

277.2

 

 

 

866.0

 

 

 

1,039.2

 

Amortization

 

 

1,588.5

 

 

 

1,781.0

 

 

 

4,983.2

 

 

 

5,274.9

 

In-process research and development impairments

 

 

-

 

 

 

202.0

 

 

 

798.0

 

 

 

1,245.3

 

Asset sales and impairments, net

 

 

(0.4

)

 

 

3,874.8

 

 

 

272.3

 

 

 

3,896.2

 

Total operating expenses

 

 

3,637.1

 

 

 

7,996.9

 

 

 

12,518.0

 

 

 

17,371.7

 

Operating income / (loss)

 

 

274.3