Perrigo Company plc - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K, dated November 10, 2016, announces the release of earnings results for Perrigo Company plc for the third quarter ended October 1, 2016. The detailed financial results are contained in the press release attached as Exhibit 99.1.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. It serves as a notification of the earnings release and defines the methodology for non-GAAP financial measures used by the company.
Material Changes and Adjustments
The Company utilizes non-GAAP measures to exclude items affecting comparability. Reported results for the three months ended October 1, 2016, were adjusted for the following items:
- Amortization of acquired assets related to business combinations and asset acquisitions.
- Goodwill, intangible assets, and assets held-for-sale impairment charges.
- Restructuring charges related to organizational improvements.
- Operating results attributable to held-for-sale businesses.
- Acquisition and integration-related charges.
- Contingent consideration fair value adjustment.
- Loss on early debt extinguishment.
- Non-GAAP tax adjustments.
For the comparable prior period (three months ended September 26, 2015), adjustments included amortization of inventory fair value adjustments, losses on derivatives associated with hedging acquisition purchase prices, legal and consulting fees related to hostile takeover defense, and equity method investment losses.
Guidance, Outlook, and Management Commentary
Management provided a list of items excluded from 2016 Full Year Guidance, including impairment charges, acquisition and restructuring-related charges, and operating results from held-for-sale businesses. The filing emphasizes that adjusted gross margin and adjusted operating margin are used to facilitate peer comparisons and analyze underlying business trends. The Company also discloses net sales growth on a constant currency basis to exclude the impact of foreign exchange.
Investor Verification Checklist
- Review Exhibit 99.1 (Press Release) for specific numerical values regarding revenue, net income, and earnings per share.
- Verify the reconciliation between GAAP and non-GAAP financial measures provided in the press release.
- Assess the magnitude of impairment charges and restructuring costs excluded from adjusted results.
- Confirm the impact of foreign exchange on reported sales growth versus constant currency growth.
- Examine the details of the "hostile takeover defense" costs mentioned in the prior year's adjustments.