PERRIGO Co plc
For the period ended Mar 30, 2024. Filed May 7, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 30, 2024 · Filed May 7, 2024
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Revenue Recognition
Note 2
NOTE 2 -REVENUE RECOGNITION
The following is a summary of our net sales by category (in millions):
| Three Months Ended | ||
|---|---|---|
| March 30, 2024 | April 1, 2023 | |
| CSCA(1) | ||
| Upper Respiratory | $130.3 | $153.7 |
| Digestive Health | 122.2 | 124.0 |
| Nutrition | 90.6 | 138.5 |
| Pain and Sleep-Aids | 82.6 | 103.4 |
| Healthy Lifestyle | 71.3 | 73.4 |
| Oral Care | 64.7 | 83.3 |
| Skin Care | 49.6 | 69.8 |
| Women's Health | 27.2 | 12.3 |
| Vitamins, Minerals, and Supplements ("VMS") | 4.2 | 4.5 |
| Other CSCA(2) | 1.4 | 0.8 |
| Total CSCA | $644.1 | $763.7 |
| CSCI | ||
| Skin Care | $114.7 | $83.4 |
| Upper Respiratory | 69.1 | 84.8 |
| Healthy Lifestyle | 64.6 | 66.4 |
| Pain and Sleep-Aids | 51.4 | 49.9 |
| VMS | 44.6 | 47.8 |
| Women's Health | 32.0 | 29.1 |
| Oral Care | 28.7 | 29.1 |
| Digestive Health | 9.5 | 8.8 |
| Other CSCI(3) | 23.3 | 18.8 |
| Total CSCI | 437.9 | 418.1 |
| Total net sales | $1,082.1 | $1,181.7 |
(1) We updated our global reporting product categories as a result of legacy Rx sales being moved out of Other CSCA and into respective categories. These product categories have been adjusted retroactively to reflect the changes and have no impact on historical financial position, results of operations, or cash flows.
(2) Consists primarily of product sales and royalty income related to supply and distribution agreements and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales.
(3) Consists primarily of our Rare Diseases business and other miscellaneous or otherwise uncategorized product lines and other adjustments, none of which is greater than 10% of the segment net sales.
While the majority of revenue is recognized at a point in time, certain of our product revenue is recognized over time. Customer contracts recognized over time exist predominately in contract manufacturing arrangements, which occur in both the CSCA and CSCI segments. Contract manufacturing revenue was $72.2 million for the three months ended March 30, 2024, and $90.0 million for the three months ended April 1, 2023.
We also recognize a portion of the store brand OTC product revenues in the CSCA segment on an over time basis; however, the timing difference between over time and point in time revenue recognition for store brand contracts is not significant due to the short time period between the customization of the product and shipment or delivery.
The following table provides information about contract assets from contracts with customers (in millions):
| Balance Sheet Location | March 30, 2024 | December 31, 2023 | |
|---|---|---|---|
| Short-term contract assets | Prepaid expenses and other current assets | $25.7 | $28.5 |
Note 2
We generated net sales in the following geographic locations(1) (in millions):
| Three Months Ended | ||
|---|---|---|
| March 30, 2024 | April 1, 2023 | |
| U.S. | $632.3 | $750.0 |
| Europe(2) | 419.7 | 407.3 |
| All other countries(3) | 30.1 | 24.4 |
| Total net sales | $1,082.1 | $1,181.7 |
(1) The net sales by geography are derived from the location of the entity that sells to a third party.
(2) Includes Ireland net sales of $4.3 million for the three months ended March 30, 2024, and $7.3 million for the three months ended April 1, 2023.
(3) Includes net sales generated primarily in Australia and Canada.
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