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Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2022
Segment Reporting [Abstract] |
Segment Information | Segment information The Company reports segment information based on the internal reporting used by management for making decisions and assessing performance. During the first quarter of 2022, the Company revised the reporting that the CODM reviews in order to assess Company performance. The CODM manages the business with a focus on two reportable segments: (1) Products segment consisting of the Government - MCM and Commercial product categories and (2) Services segment focused on CDMO services. The Company evaluates the performance of these reportable segments based on revenue and Adjusted Gross Margin, which is a non-GAAP financial measure. Segment revenue includes external customer sales, but it does not include inter-segment services. The Company defines Adjusted Gross Margin as segment revenue less segment cost of sales reduced for significant events, inventory step-up provisions and changes in fair value of contingent consideration. The Company does not allocate research and development, selling, general and administrative costs, amortization of intangibles assets, interest and other income (expense) or taxes to operating segments in the management reporting reviewed by the CODM. The accounting policies for segment reporting are the same as for the Company as a whole. The Company has recast the related historical information for consistency. The Company manages its assets on a total company basis, not by operating segment, as the Company's operating assets are shared or commingled. Therefore, the Company's CODM does not regularly review any asset information by operating segment and, accordingly, the Company does not report asset information by operating segment. The following table includes segment revenues and a reconciliation of the Company's segment adjusted gross margin to the consolidated statement of operations for each of the Company's reporting segments:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (As Restated) |  | (As Revised) |  | (As Revised)
Revenues: |  |  |  |  |
Products | $ | 966.2 |  |  | $ | 1,023.9 |  |  | $ | 989.8 |
Services (1) | 109.9 |  |  | 615.5 |  |  | 472.4 |
Total segment revenues | 1,076.1 |  |  | 1,639.4 |  |  | 1,462.2 |
Contracts and grants revenue | 41.4 |  |  | 134.2 |  |  | 115.1 |
Total revenues | $ | 1,117.5 |  |  | $ | 1,773.6 |  |  | $ | 1,577.3 |
Less: Cost of sales: |  |  |  |  |
Cost of Products | $ | 424.6 |  |  | $ | 382.6 |  |  | $ | 392.0 |
Cost of Services | 268.5 |  |  | 365.5 |  |  | 145.0 |
Total cost of sales | $ | 693.1 |  |  | $ | 748.1 |  |  | $ | 537.0 |
Products gross margin | $ | 541.6 |  |  | $ | 641.3 |  |  | $ | 597.8 |
Services gross margin (1) | $ | (158.6) |  |  | $ | 250.0 |  |  | $ | 327.4 |
Consolidated gross margin (2) | $ | 383.0 |  |  | $ | 891.3 |  |  | $ | 925.2 |
Adjustments to gross margin: |  |  |  |  |
Products: |  |  |  |  |
Changes in fair value of contingent consideration | $ | 2.6 |  |  | $ | 2.9 |  |  | $ | 31.7 |
Inventory step-up provision | 51.4 |  |  | — |  |  | — |
Products adjusted gross margin | $ | 595.6 |  |  | $ | 644.2 |  |  | $ | 629.5 |
Services adjusted gross margin (1) | $ | (158.6) |  |  | $ | 250.0 |  |  | $ | 327.4 |
Consolidated adjusted gross margin(3) | $ | 437.0 |  |  | $ | 894.2 |  |  | $ | 956.9 |
Other reconciling items: |  |  |  |  |
Contracts and grants revenue | $ | 41.4 |  |  | $ | 134.2 |  |  | $ | 115.1 |
Adjustments to gross margin | (54.0) |  |  | (2.9) |  |  | (31.7) |
Research and development | (188.3) |  |  | (235.2) |  |  | (237.9) |
Selling, general and administrative | (339.5) |  |  | (348.7) |  |  | (304.1) |
Goodwill impairment | (6.7) |  |  | (41.7) |  |  | — |
Amortization of intangible assets | (59.9) |  |  | (58.5) |  |  | (59.8) |
Interest expense | (37.3) |  |  | (34.5) |  |  | (31.3) |
Other, net | (11.7) |  |  | (3.7) |  |  | 4.7 |
Income (loss) before income taxes | $ | (219.0) |  |  | $ | 303.2 |  |  | $ | 411.9 |
(1) Services revenue, Services gross margin and Services Adjusted gross margin for the years ended December 31, 2021 and 2020 includes the impact of $243.1 million and $247.8 million, respectively of CDMO leases revenues related to the BARDA COVID-19 Development Public Private Partnership which ended in November 2021.
(2) Total segment revenues less total cost of sales.
(3) Consolidated gross margin plus adjustments to gross margin.
The following table includes depreciation expense for each segment:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Depreciation: |  |  |  |  |
Products | $ | 32.9 |  |  | $ | 27.8 |  |  | $ | 27.2 |
Services | 43.2 |  |  | 28.3 |  |  | 17.3 |
Other | 7.3 |  |  | 6.1 |  |  | 5.6 |
Total | $ | 83.4 |  |  | $ | 62.2 |  |  | $ | 50.1 |
The following table includes revenues by country. Revenues have been attributed based on the location of the customer:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (As Restated) |  | (As Revised) |  | (As Revised)
Revenue: |  |  |  |  |
United States | $ | 886.1 |  |  | $ | 1,623.4 |  |  | $ | 1,467.9 |
Canada | 148.6 |  |  | 66.7 |  |  | 46.0 |
Other | 82.8 |  |  | 83.5 |  |  | 63.4 |
Total revenues | $ | 1,117.5 |  |  | $ | 1,773.6 |  |  | $ | 1,577.3 |
The following table included long-lived assets, net by country. Long-lived assets, net includes right-of-use assets, net and property, plant & equipment, net, excluding software, net:
| December 31,
| 2022 |  | 2021
Long-lived assets, net: |  |  |
United States | $ | 696.1 |  |  | $ | 705.5 |
Switzerland | 88.1 |  |  | 73.1 |
Canada | 37.5 |  |  | 35.0 |
Other | 5.0 |  |  | 6.0 |
Total long-lived assets, net | $ | 826.7 |  |  | $ | 819.6 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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