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Revenue Recognition | 6 Months Ended
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Jul. 02, 2022
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | REVENUE RECOGNITION Revenue is recognized when or as a customer obtains control of promised products. The amount of revenue recognized reflects the consideration we expect to be entitled to receive in exchange for these products. Disaggregation of Revenue We generated net sales in the following geographic locations(1) (in millions):
| Three Months Ended |  | Six Months Ended
| July 2, 2022 |  | July 3, 2021 |  | July 2, 2022 |  | July 3, 2021
U.S. | $ | 717.6 |  |  | $ | 590.3 |  |  | $ | 1,400.6 |  |  | $ | 1,201.6 |
Europe(2) | 381.9 |  |  | 348.1 |  |  | 733.6 |  |  | 704.1 |
All other countries(3) | 22.2 |  |  | 42.7 |  |  | 62.0 |  |  | 85.4 |
Total net sales | $ | 1,121.7 |  |  | $ | 981.1 |  |  | $ | 2,196.2 |  |  | $ | 1,991.1 |
(1) The net sales by geographic locations is derived from the location of the entity that sells to a third party. (2) Includes Ireland net sales of $7.3 million and $13.9 million for the three and six months ended July 2, 2022, respectively, and $5.3 million and $9.8 million for the three and six months ended July 3, 2021, respectively. (3) Includes net sales generated primarily in Mexico, Australia and Canada. Product Category As a result of the completed acquisition of HRA Pharma, the Company has updated its global reporting product categories beginning in the second quarter of 2022. These product category updates have been adjusted retrospectively to reflect the changes. The following updates have no impact on the Company's historical consolidated financial position, results of operations, or cash flows: •The creation of a new "Women's Health" reporting category, comprised of the women's health portfolio of HRA Pharma, in addition to legacy Perrigo women's health products; •The creation of a new "Skin Care" reporting category, comprised of all of the products in the legacy Perrigo "Skincare and Personal Hygiene" category except for legacy Perrigo women's health products; and •The "Other" category in the CSCI segment now includes the HRA Pharma Rare Diseases business. The following is a summary of our net sales by category (in millions):
| Three Months Ended |  | Six Months Ended
| July 2, 2022 |  | July 3, 2021 |  | July 2, 2022 |  | July 3, 2021
CSCA(1) |  |  |  |  |  |  |
Upper Respiratory | $ | 145.9 |  |  | $ | 105.3 |  |  | $ | 298.7 |  |  | $ | 223.9 |
Nutrition | 125.1 |  |  | 95.8 |  |  | 252.3 |  |  | 188.0 |
Digestive Health | 125.1 |  |  | 115.0 |  |  | 243.7 |  |  | 233.4 |
Pain and Sleep-Aids | 102.6 |  |  | 89.4 |  |  | 205.5 |  |  | 184.5 |
Oral Care | 76.6 |  |  | 75.7 |  |  | 147.0 |  |  | 150.7 |
Healthy Lifestyle | 67.3 |  |  | 64.7 |  |  | 134.9 |  |  | 140.9 |
Skin Care | 48.6 |  |  | 47.1 |  |  | 89.5 |  |  | 92.7 |
Women's Health | 12.0 |  |  | 8.1 |  |  | 20.2 |  |  | 18.3 |
Vitamins, Minerals, and Supplements ("VMS") | 8.2 |  |  | 8.4 |  |  | 15.9 |  |  | 16.2 |
Other CSCA(2) | 16.6 |  |  | 12.8 |  |  | 30.3 |  |  | 14.2 |
Total CSCA | 728.0 |  |  | 622.3 |  |  | 1,438.0 |  |  | 1,262.8 |
CSCI |  |  |  |  |  |  |
Skin Care | 120.3 |  |  | 98.7 |  |  | 209.7 |  |  | 190.1 |
Upper Respiratory | 59.8 |  |  | 42.4 |  |  | 121.4 |  |  | 85.1 |
Pain and Sleep-Aids | 48.8 |  |  | 48.6 |  |  | 101.8 |  |  | 97.7 |
VMS | 47.5 |  |  | 53.9 |  |  | 100.2 |  |  | 116.6 |
Healthy Lifestyle | 38.5 |  |  | 46.7 |  |  | 80.4 |  |  | 97.4 |
Women's Health | 24.4 |  |  | 14.4 |  |  | 37.4 |  |  | 28.7 |
Oral Care | 20.6 |  |  | 22.5 |  |  | 44.9 |  |  | 47.5 |
Digestive Health | 4.8 |  |  | 4.9 |  |  | 9.2 |  |  | 9.8 |
Other CSCI(3) | 29.0 |  |  | 26.7 |  |  | 53.2 |  |  | 55.4 |
Total CSCI | 393.7 |  |  | 358.8 |  |  | 758.2 |  |  | 728.3 |
Total net sales | $ | 1,121.7 |  |  | $ | 981.1 |  |  | $ | 2,196.2 |  |  | $ | 1,991.1 |
(1) Includes net sales from our OTC contract manufacturing business. (2) Consists primarily of product sales and royalty income related to supply and distribution agreements, diagnostic products 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 liquid licensed products, our distribution business, rare disease products, and other miscellaneous or otherwise uncategorized product lines and markets, 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 $88.2 million and $168.4 million for the three and six months ended July 2, 2022, respectively, and $69.8 million and $132.9 million for the three and six months ended July 3, 2021, respectively. We also recognize a portion of the store brand OTC product revenues in the CSCA segment over time; 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. Contract Balances The following table provides information about contract assets from contracts with customers (in millions):
| Balance Sheet Location |  | July 2, 2022 |  | December 31, 2021
Short-term contract assets | Prepaid expenses and other current assets |  | $ | 26.8 |  |  | $ | 40.2 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
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